Energy Bill (HC Bill 128)

Energy BillPage 40

(power of the OGA to impose sanctions) as a petroleum-related
requirement.

(2) But the OGA may not give a revocation notice or an operator removal
notice under that Chapter by virtue of this section.”

71 5Applications to use infrastructure: changes of applicant and owner

(1) The Energy Act 2011 is amended as follows.

(2) In section 82(13) (contents of notice securing rights to use infrastructure), omit
paragraph (b).

(3) In section 87(6) (circumstances in which information may be disclosed)—

(a) 10omit the “or” at the end of paragraph (a), and

(b) after paragraph (b) insert or

(c) the disclosure is made under section 89A or 89B.”

(4) After section 89 insert—

89A Assignments and assignations of applications

(1) 15This section applies where—

(a) there is an assignment or assignation of an application made
under section 82 from one person (“A”) to another (“B”), and

(b) the following are notified of the assignment or assignation—

(i) the owner of the pipeline or facility that is the subject of
20the application, and

(ii) the OGA.

(2) A notice under subsection (1)(b) must—

(a) be in writing, and

(b) specify the date of the assignment or assignation.

(3) 25For the purposes of this Chapter, anything done (or treated as done) by
or in relation to A in connection with the application is treated after the
assignment or assignation as having been done by or in relation to B.

This subsection is subject to subsections (4) and (5) and does not apply
for the purposes of subsections (6) and (7).

(4) 30Any provision of this Chapter that requires the OGA to give the
applicant an opportunity to be heard has effect after the assignment or
assignation as requiring the OGA to give B an opportunity to be heard
(whether or not the applicant was heard under that provision before
the assignment or assignation).

(5) 35Subsection (3) does not apply in relation to any notice given under
section 87 before the assignment or assignation (and, accordingly, the
person to whom the notice was given remains under an obligation to
comply with it).

(6) Any information relating to the application obtained by the OGA
40before the assignment or assignation from any person who at the time
was the applicant may be disclosed to B.

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(7) Before disclosing any such information to B, the OGA must remove any
information which the OGA considers may prejudice the commercial
interests of the person from whom the information was obtained.

89B Transfers of ownership

(1) 5This section applies where the ownership of a pipeline or facility that is
the subject of an application under section 82, or to which a notice
under subsection (11) of that section relates, is transferred from one
person (“C”) to another (“D”).

(2) For the purposes of this Chapter—

(a) 10anything done (or treated as done) by or in relation to C in
connection with C’s ownership of the pipeline or facility is
treated after the transfer as having been done by or in relation
to D, and

(b) any obligations imposed or rights conferred (or treated as
15imposed or conferred) by or under this Chapter on C in
connection with C’s ownership of the pipeline or facility are
treated after the transfer as imposed or conferred on D.

This subsection is subject to subsections (3) and (4) and does not apply
for the purposes of subsections (5) and (6).

(3) 20Any provision of this Chapter that requires the OGA to give the owner
of the pipeline or facility an opportunity to be heard has effect after the
transfer as requiring the OGA to give D an opportunity to be heard
(whether or not the owner was heard under that provision before the
transfer).

(4) 25Subsection (2) does not affect the obligation to comply with any notice
given under section 87 before the transfer (and, accordingly, the person
to whom the notice was given remains under an obligation to comply
with it).

(5) Any information relating to the application obtained by the OGA
30before the transfer from any person who at the time was the owner may
be disclosed to D.

(6) Before disclosing any such information to D, the OGA must remove
any information which the OGA considers may prejudice the
commercial interests of the person from whom the information was
35obtained.”

Decommissioning

72 Abandonment of offshore installations

Schedule 2 makes provision about the abandonment of offshore installations.

73 Duty to act in accordance with strategy: decommissioning and alternatives

(1) 40Part 1A of the Petroleum Act 1998 (maximising economic recovery of UK
petroleum) is amended as follows.

(2) In section 9A (the principal objective and the strategy), in subsection (1)(b),

Energy BillPage 42

after sub-paragraph (iv) insert—

(v) owners of relevant offshore installations.”

(3) In section 9C (carrying out of certain petroleum industry activities)—

(a) omit subsection (3), and

(b) 5after subsection (4) insert—

(5) A person who is the owner of—

(a) a relevant offshore installation, or

(b) upstream petroleum infrastructure,

must act in accordance with the current strategy or strategies
10when planning and carrying out the activities mentioned in
subsection (6).

(6) Those activities are—

(a) the person’s activities as the owner of the installation or
infrastructure (including the development,
15construction, deployment and use of the infrastructure
or installation);

(b) the abandonment or decommissioning of the
installation or infrastructure.

(7) For the purposes of subsection (5), planning the activities
20mentioned in subsection (6)(b) includes the preliminary stage
of—

(a) deciding whether or when to proceed with the proposed
abandonment or decommissioning, and

(b) considering alternative measures to abandonment or
25decommissioning such as re-use or preservation.”

(4) After section 9H insert—

9HA “Relevant offshore installations” and their owners

(1) For the purposes of this Part an offshore installation is a relevant
offshore installation if and in so far as it is used in relation to petroleum
30within subsection (2) (including such petroleum after it has been got).

(2) Petroleum is within this subsection if it is petroleum which for the time
being exists in its natural condition in strata beneath—

(a) the territorial sea adjacent to Great Britain, or

(b) the sea in any area designated under section 1(7) of the
35Continental Shelf Act 1964.

(3) In this Part “owner”, in relation to a relevant offshore installation,
means—

(a) a person in whom the installation is vested, and

(b) a lessee and any person occupying or controlling the
40installation.”

(5) In section 9I (other definitions), at the appropriate place insert—

  • ““offshore installation” has the same meaning as in Part 4 (see section
    44);”;

  • ““owner”, in relation to a relevant offshore installation, has the meaning
    45given in section 9HA;”;

  • ““relevant offshore installation” has the meaning given in section 9HA;”;

  • Energy BillPage 43

  • ““submarine pipeline” has the meaning given in section 45;”.

Northern Ireland

74 Part 1A of the Petroleum Act 1998: Northern Ireland

(1) Part 1A of the Petroleum Act 1998 (maximising economic recovery of UK
5petroleum), as amended by this Act, extends to Northern Ireland (as well as to
England and Wales and Scotland).

(2) In that Act, for section 9H substitute—

9H “Upstream petroleum infrastructure” and its owners

(1) In this Part “upstream petroleum infrastructure” means anything that
10for the purposes of section 82(1) of the Energy Act 2011 is—

(a) a relevant upstream petroleum pipeline,

(b) a relevant oil processing facility, or

(c) a relevant gas processing facility,

if and in so far as it is used in relation to petroleum within subsection
15(2) (including such petroleum after it has been got).

(2) Petroleum is within this subsection if it is petroleum which for the time
being exists in its natural condition in strata beneath—

(a) the territorial sea adjacent to Great Britain, or

(b) the sea in any area designated under section 1(7) of the
20Continental Shelf Act 1964.

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

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

(b) a lessee and any person occupying or controlling the pipeline or
25facility; and

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

International agreements

75 International oil and gas agreements: information exchange

(1) 30This section applies where—

(a) there is a treaty or agreement in force between the government of the
United Kingdom and the government of a territory outside the United
Kingdom (“the overseas territory”) concerning cooperation in relation
to oil and gas activities, and

(b) 35the treaty or agreement includes arrangements for the exchange of
information between the two governments (“information exchange
arrangements”).

(2) If it appears to the Secretary of State that adequate safeguards are in place,
information held by the Secretary of State may be disclosed so far as the
40Secretary of State considers necessary for the purpose of giving effect to the
treaty or agreement in question.

Energy BillPage 44

(3) If it appears to the OGA that adequate safeguards are in place, information
held by the OGA may be disclosed so far as the OGA considers necessary for
the purpose of giving effect to the treaty or agreement in question.

(4) For the purposes of this section adequate safeguards are in place if the
5information exchange arrangements and the law in force in the overseas
territory are such as to ensure that information disclosed to the government of
the overseas territory under this section may be disclosed by that government
only—

(a) with the consent of the government of the United Kingdom, or

(b) 10so far as necessary for the purpose of preparing and publishing reports
of a general nature.

(5) References in this section to the OGA are to the OGA acting as a representative
of the government of the United Kingdom for the purposes of the agreement
with the overseas territory.

15Part 4 Fees

76 Powers to charge fees

(1) In Part 4A of the Energy Act 2008 (works detrimental to navigation: oil, gas,
carbon dioxide and pipelines), before section 82P insert—

82OA 20Fees

(1) The Secretary of State may charge fees in connection with carrying out
functions under this Part.

(2) The fees are to be determined by or in accordance with regulations
made by the Secretary of State.

(3) 25The regulations may authorise the fees to be determined by or in
accordance with a scheme made by the Secretary of State.”

(2) In Part 4 of the Marine and Coastal Access Act 2009 (marine licences), after
section 110 insert—

“Fees

110A 30Fees: oil and gas activities for which marine licence needed

(1) The Secretary of State may charge fees in connection with carrying out
functions under this Part, so far as relating to oil and gas activities for
which a marine licence is needed.

(2) The fees are to be determined by or in accordance with regulations
35made by the Secretary of State.

(3) The regulations may authorise the fees to be determined by or in
accordance with a scheme made by the Secretary of State.

(4) If the regulations provide for determining fees in connection with
functions of the Secretary of State under section 67, the fees are to be
40those provided for by the regulations, and not those (if any) provided

Energy BillPage 45

for by regulations under section 67(2) or determined under section
67(5).

(5) “Oil and gas activities” are activities which relate to operations
regulated under any of the provisions listed in subsection (6).

(6) 5The provisions are—

(a) section 2 of the Petroleum (Production) Act 1934 (searching and
boring for, and getting, petroleum);

(b) Part 1 of the Petroleum Act 1998 (searching and boring for, and
getting, petroleum);

(c) 10Part 3 of the Petroleum Act 1998 (submarine pipelines);

(d) Part 4 of the Petroleum Act 1998 (abandonment of offshore
installations);

(e) Part 1 of the Energy Act 2008 (gas importation and storage);

(f) Part 4 of the Energy Act 2008 (oil and gas).

(7) 15See Chapter 1 for when a marine licence is needed for activities.”

77 Validation of fees charged

(1) A fee charged by the Secretary of State at any time before the date on which this
Act is passed (“the relevant time”) is taken to have been lawfully charged if the
condition in subsection (2) is met.

(2) 20The condition is that the fee was charged in connection with carrying out
functions under any of the provisions listed in subsection (3), as the provision
in question had effect at the relevant time.

(3) The provisions are—

(a) Part 4A of the Energy Act 2008 (works detrimental to navigation: oil,
25gas, carbon dioxide and pipelines);

(b) Part 4 of the Marine and Coastal Access Act 2009 (marine licences), so
far as relating to oil and gas activities for which a marine licence under
that Part is needed;

(c) the Merchant Shipping (Oil Pollution Preparedness, Response and Co-
30operation Convention) Regulations 1998 (S.I. 1998/1056S.I. 1998/1056);

(d) the Offshore Petroleum Production and Pipe-lines (Assessment of
Environmental Effects) Regulations 1999 (S.I. 1999/360S.I. 1999/360);

(e) the Offshore Petroleum Activities (Conservation of Habitats)
Regulations 2001 (S.I. 2001/1754S.I. 2001/1754).

(4) 35“Oil and gas activities” are activities which relate to operations regulated
under any of the provisions listed in subsection (5).

(5) The provisions are—

(a) section 2 of the Petroleum (Production) Act 1934 (searching and boring
for, and getting, petroleum);

(b) 40Part 1 of the Petroleum Act 1998 (searching and boring for, and getting,
petroleum);

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

(d) Part 4 of the Petroleum Act 1998 (abandonment of offshore
installations);

(e) 45Part 1 of the Energy Act 2008 (gas importation and storage);

Energy BillPage 46

(f) Part 4 of the Energy Act 2008 (oil and gas).

(6) See Chapter 1 of Part 4 of the Marine and Coastal Access Act 2009 for when a
marine licence under that Part is needed for activities.

Part 5 5Wind power

Consent under Electricity Act 1989

78 Onshore wind generating stations in England and Wales

In section 36 of the Electricity Act 1989 (consent of Secretary of State required
for construction or extension of generating stations), after subsection (1C)
10insert—

(1D) Subsection (1) does not apply to an English or Welsh onshore wind
generating station.

(1E) “English or Welsh onshore wind generating station” means a
generating station that—

(a) 15generates electricity from wind, and

(b) is situated in England or Wales, but not in waters in or adjacent
to England or Wales up to the seaward limits of the territorial
sea.”

Renewables obligation

79 20Onshore wind power: closure of renewables obligation on 31 March 2016

(1) In Part 1 of the Electricity Act 1989 (electricity supply), after section 32LB
insert—

32LC Onshore wind generating stations: closure of renewables obligation

(1) No renewables obligation certificates are to be issued under a
25renewables obligation order in respect of electricity generated after 31
March 2016 by an onshore wind generating station.

(2) Subsection (1) does not apply to electricity generated in the
circumstances set out in any one or more of sections 32LD to 32LL.

(3) In this section and sections 32LD to 32LL “onshore wind generating
30station” means a generating station that—

(a) generates electricity from wind, and

(b) is situated in England, Wales or Scotland, but not in waters in or
adjacent to England, Wales or Scotland up to the seaward limits
of the territorial sea.

(4) 35The reference in subsection (1) to a renewables obligation order is to
any renewables obligation order made under section 32 (whenever
made, and whether or not made by the Secretary of State).

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(5) Power to make provision in a renewables obligation order or a
renewables obligation closure order (and any provision contained in
such an order) is subject to subsection (1) and sections 32LD to 32LL.

(6) This section is not otherwise to be taken as affecting power to make
5provision in a renewables obligation order or renewables obligation
closure order.”

(2) The Renewables Obligation Closure Order 2014 (S.I. 2014/2388S.I. 2014/2388) is amended as
follows.

(3) In article 2(1) (interpretation), after the definition of “network operator”
10insert—

  • ““onshore wind generating station” means a generating station
    that—

    (a)

    generates electricity from wind, and

    (b)

    is situated in England, Wales or Scotland, but not in
    15waters in or adjacent to England, Wales or Scotland up
    to the seaward limits of the territorial sea;”.

(4) In article 3 (closure of renewables obligation on 31st March 2017)—

(a) in the heading, after “solar pv stations” insert “or onshore wind
generating stations”;

(b) 20in paragraph (1), after “solar pv station” insert “or an onshore wind
generating station”.

80 Onshore wind power: circumstances in which certificates may be issued after
31 March 2016

(1) Part 1 of the Electricity Act 1989 (electricity supply) is amended as follows.

(2) 25After section 32LC (inserted by section 79 of this Act) insert—

32LD Onshore wind generating stations accredited, or additional capacity
added, on or before 31 March 2016

The circumstances set out in this section are where the electricity is—

(a) generated by an onshore wind generating station which was
30accredited on or before 31 March 2016, and

(b) generated using—

(i) the original capacity of the station, or

(ii) additional capacity which in the Authority’s view first
formed part of the station on or before 31 March 2016.

32LE 35Onshore wind generating stations accredited, or additional capacity
added, between 1 April 2016 and 31 March 2017: grid or radar delay
condition met

The circumstances set out in this section are where the electricity is—

(a) generated using the original capacity of an onshore wind
40generating station—

(i) which was accredited during the period beginning with
1 April 2016 and ending with 31 March 2017, and

(ii) in respect of which the grid or radar delay condition is
met, or

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(b) generated using additional capacity of an onshore wind
generating station, where—

(i) the station was accredited on or before 31 March 2016,

(ii) in the Authority’s view, the additional capacity first
5formed part of the station during the period beginning
with 1 April 2016 and ending with 31 March 2017, and

(iii) the grid or radar delay condition is met in respect of the
additional capacity.

32LF Onshore wind generating stations accredited, or additional capacity
10added, on or before 31 March 2017: approved development condition
met

The circumstances set out in this section are where the electricity is—

(a) generated using the original capacity of an onshore wind
generating station—

(i) 15which was accredited on or before 31 March 2017, and

(ii) in respect of which the approved development
condition is met, or

(b) generated using additional capacity of an onshore wind
generating station, where—

(i) 20the station was accredited on or before 31 March 2016,

(ii) in the Authority’s view, the additional capacity first
formed part of the station on or before 31 March 2017,
and

(iii) the approved development condition is met in respect of
25the additional capacity.

32LG Onshore wind generating stations accredited, or additional capacity
added, between 1 April 2017 and 31 March 2018: grid or radar delay
condition met

The circumstances set out in this section are where the electricity is—

(a) 30generated using the original capacity of an onshore wind
generating station—

(i) which was accredited during the period beginning with
1 April 2017 and ending with 31 March 2018,

(ii) in respect of which the approved development
35condition is met, and

(iii) in respect of which the grid or radar delay condition is
met, or

(b) generated using additional capacity of an onshore wind
generating station, where—

(i) 40the station was accredited on or before 31 March 2016,

(ii) in the Authority’s view, the additional capacity first
formed part of the station during the period beginning
with 1 April 2017 and ending with 31 March 2018,

(iii) the approved development condition is met in respect of
45the additional capacity, and

(iv) the grid or radar delay condition is met in respect of the
additional capacity.

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32LH Onshore wind generating stations accredited, or additional capacity
added, between 1 April 2017 and 31 December 2017: investment
freezing condition met

The circumstances set out in this section are where the electricity is—

(a) 5generated using the original capacity of an onshore wind
generating station—

(i) which was accredited during the period beginning with
1 April 2017 and ending with 31 December 2017, and

(ii) in respect of which both the approved development
10condition and the investment freezing condition are
met, or

(b) generated using additional capacity of an onshore wind
generating station, where—

(i) the station was accredited on or before 31 March 2016,

(ii) 15in the Authority’s view, the additional capacity first
formed part of the station during the period beginning
with 1 April 2017 and ending with 31 December 2017,
and

(iii) both the approved development condition and the
20investment freezing condition are met in respect of the
additional capacity.

32LI Onshore wind generating stations accredited, or additional capacity
added, between 1 January 2018 and 31 December 2018: grid or radar
delay condition met

25The circumstances set out in this section are where the electricity is—

(a) generated using the original capacity of an onshore wind
generating station—

(i) which was accredited during the period beginning with
1 January 2018 and ending with 31 December 2018,

(ii) 30in respect of which both the approved development
condition and the investment freezing condition are
met, and

(iii) in respect of which the grid or radar delay condition is
met, or

(b) 35generated using additional capacity of an onshore wind
generating station, where—

(i) the station was accredited on or before 31 March 2016,

(ii) in the Authority’s view, the additional capacity first
formed part of the station during the period beginning
40with 1 January 2018 and ending with 31 December 2018,

(iii) both the approved development condition and the
investment freezing condition are met in respect of the
additional capacity, and

(iv) the grid or radar delay condition is met in respect of the
45additional capacity.

32LJ The approved development condition

(1) This section applies for the purposes of sections 32LF to 32LI.