Energy Bill (HC Bill 128)

Energy BillPage 10

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

(4) 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.

(5) 5The licensing levy is payable to the OGA.

(6) The OGA must pay into the Consolidated Fund any amount which it receives
in respect of the licensing levy.

(7) Subsection (6) does not apply where the Secretary of State, with the consent of
the Treasury, otherwise directs.

(8) 10The Secretary of State must consult the OGA before making regulations under
this section.

(9) Section 14 does not limit the provision that may be made by regulations under
this section.

(10) In this section and section 14—

  • 15“charging period” means a period in respect of which licensing levy is
    payable;

  • “excluded licence”, in relation to a charging period, means a licence that,
    if granted at the beginning of the period, would fall to be granted by the
    Scottish Ministers or the Welsh Ministers (and for these purposes a
    20licence within subsection (1)(b) is to be treated as granted under section
    3 of the Petroleum Act 1998);

  • “licensing levy” means the levy provided for in regulations under this
    section.

14 The licensing levy: regulations

(1) 25Regulations may provide for the licensing levy payable in respect of a charging
period to increase or decrease over that period.

(2) Regulations may provide for an amount of licensing levy payable by a licence
holder to be calculated by reference to the size of an area to which a licence held
by that person relates.

(3) 30Regulations may provide for different categories of licence holders to pay—

(a) different amounts of licensing levy, or

(b) amounts of licensing levy calculated, set or determined in different
ways.

(4) Regulations may provide for a category of licence holder to be exempt from
35payment of the licensing levy.

(5) Regulations may provide for interest (at a rate specified in, or determined
under, the regulations) to be charged in respect of unpaid amounts of licensing
levy.

(6) Regulations may provide for unpaid amounts of licensing levy (together with
40any interest charged) to be recoverable as a civil debt.

(7) Regulations may confer a function (including a function involving the exercise
of a discretion) on—

(a) the Secretary of State,

Energy BillPage 11

(b) the OGA, or

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

(8) Regulations (including regulations of the kinds mentioned in subsections (3)
5and (4)) may provide for a category of licence holder to consist of persons who
hold a kind of licence that is specified in the regulations.

(9) The regulations may (in particular) specify any of the following kinds of
licence—

(a) licences granted under a particular enactment;

(b) 10licences of a particular description granted under a particular
enactment;

(c) licences, or licences of a particular description (including a description
falling within paragraph (a) or (b)), granted—

(i) before a particular time,

(ii) 15after a particular time, or

(iii) during a particular period.

(10) In this section—

  • “licence” means a licence falling within section 13(1);

  • “licence holder” means a person who holds a licence (whether the person
    20was granted it or has, after its grant, acquired it by assignment or other
    means);

  • “regulations” means regulations under section 13.

15 Payments and financial assistance

(1) The Secretary of State may make payments or provide financial assistance to
25the OGA.

(2) The payments or financial assistance may be made or provided subject to such
conditions as may be determined by the Secretary of State.

(3) In the case of a grant such conditions may, in particular, include conditions
requiring repayment in specified circumstances.

(4) 30In this section “financial assistance” means grants, loans, guarantees or
indemnities, or any other kind of financial assistance.

Review

16 Review of OGA and guidance from Secretary of State

(1) The Secretary of State must review the OGA’s performance for each review
35period.

(2) The first review period—

(a) begins with the day on which section 1 comes into force, and

(b) ends at the end of the period of three years beginning with that day, or
on such earlier day as the Secretary of State may determine.

(3) 40Subsequent review periods—

(a) begin with the day (“the first day”) after the last day of the preceding
review period,

Energy BillPage 12

(b) end at the end of the period of three years beginning with the first day,
or on such earlier day as the Secretary of State may determine.

(4) A review must, in particular—

(a) assess how effective the OGA has been in exercising its functions, and

(b) 5consider the OGA’s functions under—

(i) Part 2, and

(ii) Chapter 3 of Part 1 of the Energy Act 2008 (storage of carbon
dioxide),

with regard to their fitness for purpose and scope.

(5) 10As soon as practicable after a review period, the Secretary of State must—

(a) publish a report of the findings of the review for that period, and

(b) lay a copy of the report before Parliament.

(6) As a result of the findings of a review, the Secretary of State may give guidance
to the OGA about any matter relating to the OGA’s functions.

(7) 15The OGA must take account of any such guidance in carrying out its functions.

(8) For the purposes of this section “function” does not include any function which
the OGA is authorised to exercise by virtue of—

(a) an order under section 69 of the Deregulation and Contracting Out Act
1994, or

(b) 20an agreement under section 7(3).

Part 2 Further functions of the OGA relating to offshore petroleum

CHAPTER 1 Introduction

17 Overview of Part 2

(1) 25This Part contains provision about functions of the OGA relating to offshore
petroleum.

(2) Chapter

2

makes provision for the OGA to consider disputes and make
30recommendations for resolving them.

(3) Chapter

3

makes provision about—

(a) the retention of information and samples by relevant persons,

(b) 35the preparation of plans for dealing with information and samples held
by an offshore licensee when rights under a licence are terminated, and

(c) powers of the OGA to require information and samples.

(4) Chapter

4

40 makes provision—

(a) for the OGA to be informed of meetings,

(b) for persons authorised by the OGA to be entitled to participate in
meetings, and

(c) for the OGA to be provided with information relating to meetings in
45which such persons do not participate.

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(5) Chapter

5

makes provision about sanctions which may be imposed on persons
for failures to comply with requirements.

(6) 5Chapter 6 makes provision about the disclosure of information and samples
which have been obtained by the OGA under this Part.

18 Interpretation of Part 2

(1) In this Part—

  • “items subject to legal privilege”—

    (a)

    10in England and Wales, has the same meaning as in the Police
    and Criminal Evidence Act 1984 (see section 10 of that Act);

    (b)

    in Scotland, has the meaning given by section 412 of the
    Proceeds of Crime Act 2002;

    (c)

    in Northern Ireland, has the same meaning as in the Police and
    15Criminal Evidence (Northern Ireland) Order 1989 (S.I. 1989/
    1341 (NI 12));

  • “licensee” means a person holding a petroleum licence;

  • “offshore licence” means a petroleum licence which confers on the holder
    of that licence rights in respect of offshore waters;

  • 20“offshore licensee” means a person holding an offshore licence;

  • “offshore waters” means—

    (a)

    the waters comprising the territorial sea of the United Kingdom,
    and

    (b)

    the sea in any area for the time being designated under section
    251(7) of the Continental Shelf Act 1964;

  • “petroleum licence” means a licence granted under—

    (a)

    section 3 of the Petroleum Act 1998 (searching for, boring for
    and getting petroleum), or

    (b)

    section 2 of the Petroleum (Production) Act 1934 (licences to
    30search for and get petroleum);

  • “the principal objective” means the objective set out in section 9A(1) of the
    Petroleum Act 1998;

  • “relevant person” means a person listed in section 9A(1)(b) of the
    Petroleum Act 1998;

  • 35“statutory function” means a function conferred or imposed by or under
    any Act;

  • “Tribunal” means the First-tier tribunal.

(2) In this Part a reference to a term or condition of a petroleum licence includes a
reference to a condition imposed under a petroleum licence.

CHAPTER 2 40Disputes

19 Qualifying disputes and relevant parties

(1) For the purposes of this Chapter, a dispute is a qualifying dispute if—

(a) the dispute relates to qualifying issues, and

(b) the parties to the dispute include at least one relevant party.

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(2) In this Chapter, “qualifying issues” means issues which—

(a) are relevant to the fulfilment of the principal objective, or

(b) relate to activities carried out under an offshore licence,

and are not the subject of a section 82 application.

(3) 5If a dispute relates in part to qualifying issues and in part to other issues, the
dispute is a qualifying dispute only to the extent that it relates to the qualifying
issues.

(4) For the purposes of subsection (2), an issue is the subject of a section 82
application if—

(a) 10an application has been made under section 82(4) of the Energy Act
2011 (acquisition of rights to use upstream petroleum infrastructure) in
connection with the issue, and

(b) the OGA has made a decision under section 82(6)(a)(iii) of that Act to
consider the application further.

(5) 15In this Chapter “relevant party” to a dispute means a party to the dispute who
is a relevant person.

20 Reference of disputes to the OGA

(1) A relevant party to a qualifying dispute may refer it to the OGA.

(2) A reference under this section is to be made in such manner as the OGA may
20require.

(3) Requirements under subsection (2) as to the manner in which a reference is to
be made—

(a) may make different provision for different cases;

(b) are to be imposed, withdrawn or modified by notice published in such
25manner as the OGA considers appropriate for bringing the
requirement, withdrawal or modification to the attention of the persons
who, in the OGA’s opinion, are likely to be affected by it.

21 Action by the OGA on a dispute reference

(1) On a reference of a dispute made under section 20, the OGA must decide
30whether the reference is to be—

(a) rejected,

(b) adjourned to enable further negotiation between the parties to the
dispute, or

(c) accepted (see section 23).

(2) 35The OGA must issue guidance about the matters to which it will have regard
when making a decision under subsection (1).

(3) As soon as reasonably practicable after the OGA has made a decision under
subsection (1), it must give notice in writing stating—

(a) its decision,

(b) 40the reasons for the decision, and

(c) the date of the decision,

to each relevant party to the dispute, and to any other parties to the dispute
who have contributed (whether by providing information or attending
meetings) to the OGA’s decision-making process.

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(4) The grounds on which the OGA may reject a reference include, but are not
limited to, grounds that—

(a) the dispute is not a qualifying dispute;

(b) the party that referred the dispute is not a relevant party;

(c) 5the reference is frivolous or vexatious;

(d) there are more appropriate means available for resolving the dispute;

(e) the dispute is not sufficiently material to the fulfilment of the principal
objective to warrant, in the circumstances, its consideration by the
OGA;

(f) 10the OGA considers it unlikely that, in the circumstances, it would be
able to make a satisfactory recommendation in respect of the dispute.

(5) Where the OGA adjourns a reference of a dispute—

(a) it must set a timetable in accordance with which relevant parties to the
dispute are to conduct further negotiations and revert to the OGA,

(b) 15it may give directions with which relevant parties to the dispute are to
comply during the adjournment, and

(c) it must, when the relevant parties revert to it following the
adjournment, make a further decision under subsection (1) in respect of
the reference.

(6) 20Requirements imposed by the OGA on relevant parties—

(a) under subsection (5)(a), or

(b) by directions under subsection (5)(b),

are sanctionable in accordance with Chapter

5

25.

22 Power of the OGA to consider disputes on its own initiative

(1) The OGA may decide, on its own initiative, to consider a qualifying dispute
(see section 23).

(2) If the OGA decides to consider a qualifying dispute under this section, it must
30notify all parties to the dispute.

23 Procedure for consideration of disputes

(1) This section applies where the OGA—

(a) accepts a reference of a dispute under section 21(1), or

(b) decides to consider a dispute under section 22(1).

(2) 35The OGA must—

(a) consider the dispute, and

(b) make a recommendation for resolving it.

(3) The OGA—

(a) must draw up a timetable for performing its duties under subsection
40(2), and

(b) may give directions with which the relevant parties to the dispute are
to comply in order to enable the OGA to carry out those duties.

(4) The OGA’s recommendation must be one which it considers will enable the
dispute to be resolved in a way which best contributes to the fulfilment of the
45principal objective whilst having regard to the need to achieve an economically
viable position for the parties to the dispute.

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(5) The procedure for considering the dispute and making a recommendation is
the procedure that the OGA considers most appropriate.

(6) Where the OGA makes a recommendation under this section, the OGA may
publish—

(a) 5the recommendation or any part of it;

(b) a summary of the recommendation or of any part of it.

(7) Before publishing anything under subsection (6), the OGA must give an
opportunity to be heard to each relevant party to the dispute.

(8) The OGA must issue guidance about the matters to which it will have regard
10when performing its duties under this section.

(9) Requirements imposed by directions under subsection (3)(b) are sanctionable
in accordance with Chapter

5

.

24 15Power of the OGA to acquire information

(1) The OGA may require a relevant party to a dispute to provide it with such
information as may be required by the OGA for the purposes of—

(a) deciding whether to reject, adjourn or accept a reference of the dispute
under section 21(1),

(b) 20setting a timetable in respect of an adjournment of a reference of the
dispute under section 21(5),

(c) assessing progress of further negotiations during such an adjournment,

(d) making a decision under section 22(1) to consider the dispute on its
own initiative, or

(e) 25considering the dispute and making a recommendation under section
23(2),

subject to subsection (3).

(2) A person required to provide information under subsection (1) must provide
it in such manner and within such reasonable period as may be specified by the
30OGA in the request for information.

(3) Information requested under subsection (1) may not include items subject to
legal privilege.

(4) Requirements imposed under this section are sanctionable in accordance with
Chapter

355

.

25 Power of the OGA to require attendance at meetings

(1) The OGA may require a relevant party to a dispute to send an individual to act
as its representative at a meeting with the OGA for the purpose of participating
40in proceedings relating to—

(a) whether a reference of the dispute is to be rejected, adjourned or
accepted under section 21(1),

(b) whether the OGA is to make a decision to consider the dispute under
section 22(1), or

(c) 45the consideration of the dispute and the making of a recommendation
under section 23(2).

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(2) The OGA may require that the individual sent to attend the meeting has the
necessary knowledge and expertise for the purpose of participating in the
proceedings in question.

(3) The OGA must give reasonable notice of any meeting at which attendance is
5required under this section.

(4) Requirements imposed by the OGA on relevant parties under this section are
sanctionable in accordance with Chapter

5

.

26 10Appeals against decisions of the OGA: disputes

(1) This section applies to any decision of the OGA to which effect is given by one
of the actions set out in an entry in column 1 of the table below.

(2) A person affected by any such decision may appeal against it to the Tribunal—

(a) on the grounds that the decision was not within the powers of the OGA,
15or

(b) on the grounds set out in the corresponding entry in column 2 of the
table.

(1) Action by the OGA (2) Grounds for appeal
The setting of a timetable under
section 21(5)(a).
The timetable is unreasonable.
20
The giving of directions under
section 21(5)(b).
A direction, or a number of
directions taken together, are
unreasonable.
The giving of directions under
section 23(3)(b).
A direction, or a number of
25directions taken together, are
unreasonable.
The imposition of a requirement
to provide information under
section 24(1).

Either—

(a)

the information requested
30is not relevant to the
dispute in question, or

(b)

the period specified under
section 24(2) is
unreasonable.


35

The imposition of a requirement
under section 25(1) or (2) in
relation to attendance at a
meeting.

Either—

(a)

40the requirement to attend
the meeting is
unreasonable,

(b)

reasonable notice of the
meeting was not given, or

(c)

45the requirement as to the
knowledge and expertise
of the person attending the
meeting is unreasonable.



50

(3) On an appeal under this section the Tribunal may—

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(a) affirm, vary or quash the decision under appeal,

(b) remit the decision under appeal to the OGA for reconsideration with
such directions (if any) as the Tribunal considers appropriate, or

(c) substitute its own decision for the decision under appeal.

CHAPTER 3 5Information and samples

Interpretation

27 Petroleum-related information and samples

(1) In this Chapter—

  • “petroleum-related information” means—

    (a)

    10in relation to any relevant person, information acquired or
    created by or on behalf of the person in the course of carrying
    out activities which are relevant to the fulfilment of the
    principal objective, and

    (b)

    in relation to a relevant person who is an offshore licensee,
    15information acquired or created by or on behalf of the person in
    the course of carrying out activities under the licensee’s licence,
    which is not information falling within paragraph (a);

  • “petroleum-related samples” means samples of substances acquired by or
    on behalf of an offshore licensee in the course of carrying out activities
    20under the licensee’s licence.

(2) In this Chapter, “petroleum-related information” and “petroleum-related
samples” include information or samples acquired or created as mentioned in
subsection (1) which are relevant to activities carried out under a carbon
dioxide storage licence.

(3) 25In subsection (2) “carbon dioxide storage licence” means a licence granted
under section 18 of the Energy Act 2008.

Retention

28 Retention of information and samples

(1) Regulations made by the Secretary of State may require—

(a) 30specified relevant persons to retain specified petroleum-related
information;

(b) specified offshore licensees to retain specified petroleum-related
samples.

(2) Regulations under this section may include provision about—

(a) 35the form or manner in which information or samples are to be retained;

(b) the period for which information or samples are to be retained;

(c) the event that triggers the commencement of that period.

(3) In this section, “specified” means specified, or of a description specified, in
regulations under this section.

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(4) Requirements imposed by regulations under this section are sanctionable in
accordance with Chapter

5

.

(5) 5Before making regulations under this section the Secretary of State must
consult the OGA.

29 Retention: supplementary

(1) Subsection (2) applies in relation to regulations under section 28 imposing
requirements on an offshore licensee to retain information or samples.

(2) 10The regulations may provide for those requirements to continue following a
termination of rights under the licensee’s licence (whether by transfer,
surrender, expiry or revocation and whether in relation to all or only part of the
licence).

(3) Regulations under section 28 may not impose requirements which have effect
15in relation to particular petroleum-related information or particular
petroleum-related samples at any time when an information and samples plan
dealing with the information or samples has effect (see sections 30 to 33).

Information and samples plans

30 Information and samples plans: termination of rights under offshore licences

(1) 20This section and sections 31 to 33 make provision in relation to the preparation
of information and samples plans in connection with licence events.

(2) The following definitions apply for the purposes of this section and those
sections.

(3) “Licence event” means—

(a) 25a transfer of rights under an offshore licence, whether in relation to all
or part of the area in respect of which the licence was granted,

(b) a surrender of rights under an offshore licence in relation to all of the
area in respect of which the licence was granted, or in relation to so
much of that area in respect of which the licence continues to have
30effect,

(c) the expiry of an offshore licence, or

(d) the revocation of an offshore licence by the OGA.

(4) “Relevant licence”, in relation to a licence event, means the licence in respect of
which the licence event occurs.

(5) 35“Responsible person” in relation to a licence event, means the person who is or
was, or the persons who are or were, the licensee in respect of the relevant
licence immediately before the licence event.

(6) “Information and samples plan”, in relation to a licence event, means a plan
dealing with what is to happen, following the event, to—

(a) 40petroleum-related information held by the responsible person before
the event, and

(b) petroleum-related samples held by that person before the event.