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Infrastructure BillPage 40

(2) A person who is an operator under a petroleum licence must act in
accordance with the current strategy or strategies when planning and
carrying out activities as the operator under the licence.

(3) A person who is the owner of upstream petroleum infrastructure must
5act in accordance with the current strategy or strategies when planning
and carrying out the person’s activities as the owner of upstream
petroleum infrastructure (including the development, construction,
deployment and use of the infrastructure).

(4) A person must act in accordance with the current strategy or strategies
10when planning and carrying out the commissioning of upstream
petroleum infrastructure.

9D Reports by the Secretary of State

(1) As soon as practicable after the end of each reporting period, the
Secretary of State must—

(a) 15consider the extent to which, during that period, these persons
have followed section 9C by acting in accordance with the
current strategy or strategies—

(i) licence holders,

(ii) operators under petroleum licences,

(iii) 20owners of upstream petroleum infrastructure, and

(iv) persons planning and carrying out the commissioning
of upstream petroleum infrastructure; and

(b) produce a report on the results of the consideration of that
question.

(2) 25The report may contain other material, including a statement of action
which the Secretary of State has taken, or is proposing to take, in
response to any matter included in the report (including changes to a
strategy).

(3) The Secretary of State must publish, and lay before each House of
30Parliament, a copy of each report produced under this section.

(4) In this section “reporting period” means—

(a) the period of two years beginning with the day when this
section comes into force, and

(b) each subsequent period of one year beginning with the day after
35the end of a previous reporting period.

9E Secretary of State’s security and resilience functions

(1) This Part does not limit the exercise of the Secretary of State’s security
and resilience functions.

(2) This Part is subject to the exercise of the security and resilience
40functions by the Secretary of State.

(3) In this section “security and resilience function” means any function
which relates to—

(a) the security of petroleum supplies, or

(b) the resilience of the petroleum industry.

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9F Producing and revising a strategy

(1) The Secretary of State must produce the first strategy before the end of
the period of one year beginning with the day on which this section
comes into force.

(2) 5The Secretary of State may subsequently—

(a) produce a new strategy, or

(b) revise a current strategy,

whenever the Secretary of State thinks appropriate.

(3) The Secretary of State must review each current strategy before the end
10of each relevant four year period.

(4) In reviewing a current strategy, the Secretary of State must (in
particular) take account of the results of any consideration undertaken
under section 9D in respect of reporting periods falling within the
relevant four year period.

(5) 15In this section “relevant four year period”, in relation to a current
strategy, means a period of four years beginning with—

(a) the date on which the strategy was issued, or

(b) if later, the date on which the last review under subsection (3)
was concluded.

9G 20Procedure for producing and revising a strategy

(1) Before—

(a) producing the first strategy,

(b) producing a new strategy, or

(c) revising a current strategy,

25the Secretary of State must prepare a draft of the strategy or revised
strategy.

(2) The Secretary of State must—

(a) consult such persons as the Secretary of State thinks appropriate
about the draft, and

(b) 30consider any representations made by them.

(3) If, after complying with that duty, the Secretary of State decides to
proceed with the draft (in its original form or with modifications), the
Secretary of State must lay a copy of the draft before each House of
Parliament.

(4) 35The Secretary of State may not take any further steps in relation to the
draft if, within the 40 day period, either House resolves not to approve
the draft (a “negative resolution”).

(5) If neither House passes a negative resolution, the Secretary of State may
issue the strategy or revised strategy in the form laid before Parliament.

(6) 40The strategy or revised strategy comes into force on the date specified
by the Secretary of State (which must not be before the date when it is
issued).

(7) Subsection (4) does not prevent a new draft of a strategy or revised
strategy from being laid before Parliament.

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(8) In this section “40 day period”, in relation to the draft of a strategy or
revised strategy, means the period of 40 days beginning with the day
on which the draft is laid before Parliament (or if the draft is not laid
before each House on the same day, the later of the 2 days on which it
5is laid).

(9) For the purposes of calculating the 40 day period, no account is to be
taken of any period during which Parliament is dissolved or prorogued
or during which both Houses are adjourned for more than four days.

9H “Upstream petroleum infrastructure” and its owners

(1) 10In this Part “upstream petroleum infrastructure” means—

(a) a gas processing facility,

(b) an oil processing facility, or

(c) an upstream petroleum pipeline,

if and in so far as it meets conditions A and B.

(2) 15A facility or pipeline meets condition A if and in so far as it is situated
in Great Britain or relevant UK waters.

(3) A facility or pipeline meets condition B if and in so far as it is used in
relation to UK petroleum (including such petroleum after it has been
got).

(4) 20But an upstream petroleum pipeline is not “upstream petroleum
infrastructure” if it is a pipeline to which section 17GA applies
(petroleum pipelines subject to Norwegian access system).

(5) In this section, the following expressions have the same meanings as in
Chapter 3 of Part 2 of the Energy Act 2011 (see section 90 of that Act)—

(a) 25“gas processing facility”;

(b) “oil processing facility”;

(c) “upstream petroleum pipeline”.

(6) In this Part, “owner”, in relation to upstream petroleum infrastructure,
means—

(a) 30a person in whom the pipeline or facility is vested;

(b) a lessee and any person occupying or controlling the pipeline or
facility; and

(c) a person who has the right to have things conveyed by the
pipeline or processed by the facility.

9I 35Other interpretation

In this Part—

37 Levy on holders of certain energy industry licences

(1) The Secretary of State may, by regulations, provide for a levy to be imposed on,
and be payable by, one or more of the following kinds of persons—

(a) 15persons who hold licences under section 2 of the Petroleum
(Production) Act 1934 or licences under section 3 of the Petroleum Act
1998 (exploitation of petroleum);

(b) persons who hold licences under section 4 of the Energy Act 2008
(unloading and storing gas);

(c) 20persons who hold licences under section 18 of the Energy Act 2008
granted by the Secretary of State (storage of carbon dioxide).

(2) No licensing levy is to be imposed in respect of a time which falls after the end
of the period of 3 years beginning with the first day of the first charging period.

(3) The Secretary of State must exercise the power conferred by subsection (1) so
25as to secure—

(a) that the total amount of licensing levy which is payable in respect of a
charging period does not exceed the costs incurred by the Secretary of
State in exercising the relevant functions in respect of that period; and

(b) that no levy is payable in respect of costs incurred in any exercise of
30relevant functions for which a charge is payable under the Gas and
Petroleum (Consents) Charges Regulations 2013 (as those Regulations
stand when this section comes into force).

(4) In determining for the purposes of subsection (3)(a) the total amount of
licensing levy payable in respect of a charging period, an amount of levy
35payable in respect of that period may be ignored if (during that period or
subsequently)—

(a) having been paid, it is repaid or credit for it is given against other
licensing levy that is payable; or

(b) having not been paid, the requirement to pay it is cancelled.

(5) 40The “relevant functions” referred to in subsection (3) are—

(a) functions under the following enactments—

(i) the Pipe-lines Act 1962 (cross-country pipe-lines);

(ii) section 3 and the other provisions of Part 1 of the Petroleum Act
1998 (exploitation of petroleum);

(iii) 45Part 1A of the Petroleum Act 1998 (maximising economic
recovery of UK petroleum);

(iv) Part 3 of the Petroleum Act 1998 (submarine pipelines);

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(v) Part 4 of the Petroleum Act 1998, in so far as the functions
concern reduction of the costs of abandonment of offshore
installations and submarine pipelines;

(vi) section 4 and the other provisions of Chapter 2 of Part 1 of the
5Energy Act 2008 (importation and storage of combustible gas);

(vii) section 18 and the other provisions of Chapter 3 of Part 1 of the
Energy Act 2008 (storage of carbon dioxide);

(viii) Chapter 3 of Part 2 of the Energy Act 2011 (upstream petroleum
infrastructure);

(b) 10carrying out policy work on matters relating to UK petroleum and its
recovery;

(c) providing advice and assistance to the petroleum industry on matters
relating to UK petroleum and its recovery;

(d) collaborating with the petroleum industry on matters relating to UK
15petroleum and its recovery;

(e) acquiring, using and supplying information on matters relating to UK
petroleum and its recovery;

(f) encouraging development of the petroleum industry in relation to the
recovery of UK petroleum;

(g) 20carrying out, or providing advice and assistance to those carrying out,
research and development in relation to technology and products
relevant to the recovery of UK petroleum;

(h) functions which relate to—

(i) the security of petroleum supplies, or

(ii) 25the resilience of the petroleum industry;

(i) international co-operation on matters relating to UK petroleum and its
recovery, including—

(i) resolution of disputes relating to the entitlements of different
countries in relation to petroleum fields, and

(ii) 30openness and accountability in the management of natural
resources.

(6) The matters relating to UK petroleum and its recovery which fall within
paragraphs (b), (c), (d) and (e) of subsection (5) include—

(a) maximising the economic recovery of UK petroleum, and

(b) 35improving the supply chain of UK petroleum.

(7) The amount or amounts of licensing levy payable by licence holders must be—

(a) set out in the regulations, or

(b) calculated in accordance with a method set out in the regulations.

(8) The licensing levy is payable to the Secretary of State.

(9) 40Schedule 6 (the licensing levy) has effect.

(10) Schedule 6 does not limit the provision that may be made by regulations under
this section.

(11) The Secretary of State may, by regulations, amend subsection (3)(b) by adding,
removing or amending a reference to any regulations made under section 188
45of the Energy Act 2004.

(12) In this section and Schedule 6—

Petroleum and geothermal energy in deep-level land

38 Petroleum and geothermal energy: right to use deep-level land

(1) A person has the right to use deep-level land in any way for the purposes of
exploiting petroleum or deep geothermal energy.

(2) 15Land is subject to the right of use (whether for the purposes of exploiting
petroleum or deep geothermal energy) only if it is—

(a) deep-level land, and

(b) within a landward area.

(3) But that does not prevent deep-level land that is within a landward area from
20being used for the purposes of exploiting petroleum or deep geothermal
energy outside a landward area.

(4) Deep-level land is any land at a depth of at least 300 metres below surface level.

(5) This section confers the right to use Scottish deep-level land for the purposes
of exploiting deep geothermal energy only in cases where the sole, or main, use
25of that energy is to be, or is, the generation of electricity.

39 Further provision about the right of use

(1) The ways in which the right of use may be exercised include—

(a) drilling, boring, fracturing or otherwise altering deep-level land;

(b) installing infrastructure in deep-level land;

(c) 30keeping, using or removing any infrastructure installed in deep-level
land;

(d) passing any substance through, or putting any substance into, deep-
level land or infrastructure installed in deep-level land;

(e) keeping, using or removing any substance put into deep-level land or
35into infrastructure installed in deep-level land.

(2) The purposes for which the right of use may be exercised include—

(a) searching for petroleum or deep geothermal energy;

(b) assessing the feasibility of exploiting petroleum or deep geothermal
energy;

(c) 40preparing for exploiting petroleum or deep geothermal energy;

(d) decommissioning, and other activity which falls to be continued or
undertaken, in consequence of activities undertaken for the purposes of
exploiting petroleum or deep geothermal energy.

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(3) The right of use includes the right to leave deep-level land in a different
condition from the condition it was in before an exercise of the right of use
(including by leaving any infrastructure or substance in the land).

(4) The right of use—

(a) 5does not give a person (“R”) any power which is greater than, or
different from, the power which R would have had if the right had been
granted by a person legally entitled to grant it; and

(b) does not relieve a person (“R”) from any obligation or liability to which
R would have been subject if the right had been granted by a person
10legally entitled to grant it.

(5) A person (“L”) who owns land (the “relevant land”) is not liable, as the owner
of that land, in tort or delict for any loss or damage which is attributable to the
exercise, or proposed exercise, of the right of use by another person (whether
in relation to the relevant land or any other land).

(6) 15For that purpose, loss or damage is not attributable to the exercise, or proposed
exercise, of the right of use (in particular) if, or to the extent that, the loss or
damage is attributable to a deliberate omission by L.

(7) There is a “deliberate omission by L” if L, as owner of the relevant land,
decides—

(a) 20not to do an act, or

(b) not to allow another person to do an act,

and the circumstances at the time of that decision were such that L would not
have had to bear any of the costs incurred (whether by L or any other person)
in doing or allowing the act.

(8) 25Section 38 and this section bind the Crown.

40 Payment scheme

(1) The Secretary of State may, by regulations, require relevant energy
undertakings to make payments in respect of the proposed exercise, or
exercise, of the right of use.

(2) 30The regulations may require payments to be made—

(a) to owners of relevant land or interests in relevant land;

(b) to other persons for the benefit of areas in which relevant land is
situated.

(3) The regulations may—

(a) 35specify the amount or amounts of payments;

(b) make provision for determining the amount or amounts of payments.

(4) The regulations may require relevant energy undertakings to provide the
Secretary of State, or any other specified person, with specified information
about—

(a) 40the proposed exercise, or exercise, of the right of use;

(b) the making of payments in accordance with regulations under this
section.

(5) Before making any regulations under this section, the Secretary of State must
consult such persons as the Secretary of State considers appropriate.

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41 Notice scheme

(1) The Secretary of State may, by regulations, require relevant energy
undertakings to give notice of the proposed exercise, or exercise, of the right of
use.

(2) 5The regulations may require relevant energy undertakings—

(a) to give notice—

(i) to owners of relevant land or interests in relevant land;

(ii) to persons of other specified descriptions;

(b) to display notice within the area in which relevant land is situated or
10elsewhere;

(c) to publish notice (otherwise than by displaying the notice).

(3) The regulations may make provision about the information which the notice is
to contain, including provision about information relating to—

(a) any payment scheme regulations which are in force;

(b) 15the application of any payment scheme regulations to the proposed
exercise, or exercise, of the right of use;

(c) the method for obtaining a payment under any payment scheme
regulations.

(4) The regulations may make provision about the manner in which notice is to be
20given, displayed or published, including provision requiring notice to be—

(a) displayed at specified places or places of specified descriptions;

(b) published in specified publications or publications of specified
descriptions.

(5) The regulations may require relevant energy undertakings to provide the
25Secretary of State, or any other specified person, with specified information
about—

(a) the proposed exercise, or exercise, of the right of use;

(b) the giving of notice in accordance with regulations under this section.

(6) Before making regulations under this section, the Secretary of State must
30consult such persons as the Secretary of State considers appropriate.

(7) In this section “payment scheme regulations” means regulations under section
40.

42 Payment and notice schemes: supplementary provision

(1) Regulations under section 40 or 41 may make provision about the enforcement
35of relevant requirements, including provision for the imposition of financial
penalties in respect of breach of relevant requirements.

(2) Regulations under section 40 or 41 may confer a function on—

(a) the Secretary of State, or

(b) any other person, apart from the Scottish Ministers or the Welsh
40Ministers.

(3) The functions that may be imposed include—

(a) a duty (including a restriction or prohibition);

(b) a function involving the exercise of a discretion;

(c) a requirement to consult.

Infrastructure BillPage 48

(4) The provisions of sections 40 and 41 and this section which specify particular
kinds of provision that may be made in regulations under section 40 or 41 do
not limit the powers conferred by that section to make such regulations.

(5) The Secretary of State must carry out a review of sections 40 and 41 and the
5preceding provisions of this section as soon as reasonably practicable after the
end of the period of 5 years beginning with the day on which they come into
force.

(6) The Secretary of State must by regulations—

(a) repeal section 40, and make any consequential amendments (including
10repeals) of the other provisions of this Act that the Secretary of State
considers appropriate, if the relevant conditions are met in relation to
the power under section 40;

(b) repeal section 41, and make any consequential amendments (including
repeals) of the other provisions of this Act that the Secretary of State
15considers appropriate, if the relevant conditions are met in relation to
the power under section 41.

(7) The relevant conditions are met in relation to the power under section 40 or the
power under section 41 if—

(a) that power is not exercised within the period of 7 years beginning with
20the day on which that section comes into force, and

(b) the Secretary of State is satisfied that there is no convincing case for
retaining that power.

43 Interpretation

(1) For the purposes of deciding whether land is deep-level land—

(a) 25the depth of a point in land below surface level is the distance between
that point and the surface of the land vertically above that point; and

(b) in determining what is the surface of the land, any building or other
structure on the land, and any water covering the land, must be
ignored.

(2) 30In sections 38 to 42 and this section—

(3) The power of the Secretary of State to make regulations under section 4 of the
Petroleum Act 1998 includes power to make such amendments of the
definition of “landward area” in subsection (2) above as the Secretary of State
5considers appropriate in consequence of any other exercise of the power under
section 4 of the 1998 Act.

Renewable heat incentives

44 Renewable heat incentives

(1) Section 100 of the Energy Act 2008 (renewable heat incentives) is amended in
10accordance with subsections (2) to (4).

(2) After subsection (1) insert—

(1A) Regulations under this section may confer any function on any person.

(1B) Regulations under this section may provide for a function conferred on
a person to be exercisable on behalf of another person.

(3) 15In subsection (2)—

(a) in paragraph (a), for the words before sub-paragraph (i) substitute—

(a) make provision giving any of the following persons
entitlements to payments (“RHI payments”) in specified
circumstances—;

(b) 20in paragraph (b), for “such payments” substitute “RHI payments”;

(c) after paragraph (b) insert—

(ba) make provision about the circumstances in which, and
descriptions of persons to whom, the whole or a part of
an entitlement to an RHI payment may be assigned
25(whether the person has the entitlement by virtue of
regulations under paragraph (a) or regulations under
this paragraph);

(bb) authorise or require the Secretary of State, the
Authority, designated fossil fuel suppliers, or any
30person with any other administration function, to make
an RHI payment—

(i) to the person who is entitled to the payment by
virtue of regulations under paragraph (a), or

(ii) where that entitlement has been wholly or partly
35assigned in accordance with regulations under
this section, to the person or persons for the time
being enjoying the entitlement or any part of it;;

(d) in paragraph (c), for “such payments” substitute “RHI payments”;

(e) for paragraph (d) substitute—

(d) 40authorise or require a person to provide specified
information;;

(f) in paragraph (e), omit “to the Secretary of State or the Authority”;

(g) in paragraph (h), omit “for the Secretary of State or the Authority”;

(h) omit paragraph (i);

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