Energy Bill (HC Bill 128)

Energy BillPage 60

9 After section 9B insert—

9BA Exercise of certain functions of the Secretary of State

(1) The Secretary of State must act in accordance with the current
strategy or strategies when exercising the functions mentioned in
5subsection (2).

(2) Those functions are functions under Part 4 to the extent that they
concern reduction of the costs of abandonment of offshore
installations and submarine pipelines (including the reduction of
such costs by means of the timing of measures proposed in
10abandonment programmes and by the inclusion in such
programmes of provision for collaboration with other persons).”

10 Omit section 9D.

11 (1) Section 9E (security and resilience functions) is amended as follows.

(2) In subsection (1), for “Secretary of State’s” substitute “OGA’s”.

(3) 15In subsection (2), for “Secretary of State” substitute “OGA”.

(4) In the heading, for “Secretary of State’s” substitute “OGA’s”.

12 (1) Section 9F (producing and revising a strategy) is amended as follows.

(2) Omit subsection (1).

(3) For subsection (2) substitute—

(2) 20After the first strategy has been produced, the OGA may—

(a) produce a new strategy, or

(b) revise a current strategy,

whenever the OGA thinks appropriate.”

(4) In subsection (3), for “Secretary of State” substitute “OGA”.

(5) 25Omit subsection (4).

13 (1) Section 9G (procedure for producing and revising a strategy) is amended as
follows.

(2) In subsection (1)—

(a) omit paragraph (a), and

(b) 30for “Secretary of State” substitute “OGA”.

(3) In subsection (2), for “Secretary of State” (in both places) substitute “OGA”.

(4) For subsection (3) substitute—

(3) If, after complying with that duty, the OGA decides to proceed with
the draft (in its original form or with modifications), the OGA must
35send the draft to the Secretary of State.

(3A) The Secretary of State must either—

(a) lay a copy of the draft before each House of Parliament, or

(b) return the draft to the OGA and publish the Secretary of
State’s reasons for doing so.

Energy BillPage 61

(3B) The Secretary of State may return the draft to the OGA only if the
Secretary of State thinks that—

(a) the OGA has failed to comply with subsection (2), or

(b) the strategy will not enable the principal objective to be met.”

(5) 5In subsection (4), for “The Secretary of State” substitute “Where a copy of the
draft has been laid in accordance with subsection (3A)(a), the OGA”.

(6) In subsection (5), for “Secretary of State” substitute “OGA”.

(7) In subsection (6), for “Secretary of State” substitute “OGA”.

14 In section 14(1) (construction and use of pipelines), for “Secretary of State”
10substitute “OGA”.

15 In section 15 (authorisations), for “Secretary of State” (in each place)
substitute “OGA”.

16 In section 16 (compulsory modifications of pipelines), for “Secretary of
State” (in each place) substitute “OGA”.

17 (1) 15Section 17 (acquisition of rights to use pipelines) is amended as follows.

(2) In subsection (1), for “Secretary of State” substitute “OGA”.

(3) In subsection (2)—

(a) for “Secretary of State” substitute “OGA”, and

(b) for “he” substitute “it”.

(4) 20In subsection (3)—

(a) for “Secretary of State” (in both places) substitute “OGA”, and

(b) for “he” substitute “it”.

(5) In subsection (5), for “Secretary of State” substitute “OGA”.

(6) In subsection (7), for “Secretary of State” substitute “OGA”.

(7) 25In subsection (8)—

(a) for “Secretary of State” substitute “OGA”, and

(b) for “he” substitute “it”.

18 (1) Section 17F (acquisition of rights to use controlled petroleum pipelines) is
amended as follows.

(2) 30In subsection (2), for “Secretary of State” substitute “OGA”.

(3) In subsection (5), for “Secretary of State” substitute “OGA”.

(4) In subsection (6)—

(a) for “Secretary of State” substitute “OGA”, and

(b) for “he” substitute “it”.

(5) 35In subsection (7)—

(a) for “Secretary of State” (in each place) substitute “OGA”, and

(b) for “he” substitute “it”.

(6) In subsection (8), for “Secretary of State” substitute “OGA”.

(7) In subsection (9)—

(a) 40for “Secretary of State” (in both places) substitute “OGA”, and

Energy BillPage 62

(b) for “he” substitute “it”.

(8) In subsection (10), for “Secretary of State” substitute “OGA”.

19 (1) Section 17G (section 17F: supplemental) is amended as follows.

(2) In subsection (1)—

(a) 5for “Secretary of State” (in both places) substitute “OGA”, and

(b) for “himself” substitute “itself”.

(3) In subsection (2)—

(a) for “Secretary of State” substitute “OGA”, and

(b) for “him” substitute “it”.

(4) 10In subsection (4)—

(a) for “Secretary of State” substitute “OGA”,

(b) for “he” substitute “it”, and

(c) for “him” substitute “it”.

(5) In subsection (6), for “Secretary of State” substitute “OGA”.

(6) 15In subsection (7)—

(a) for “Secretary of State” substitute “OGA”, and

(b) for “he” substitute “it”.

(7) In subsection (8), for “Secretary of State” substitute “OGA”.

20 (1) Section 17GA (controlled petroleum pipeline subject to Norwegian access
20system) is amended as follows.

(2) In subsection (2), for “Secretary of State” substitute “OGA”.

(3) In subsection (5)—

(a) for “Secretary of State” (in both places) substitute “OGA”, and

(b) in paragraph (a), for “he” substitute “it”.

(4) 25In subsection (6), for “Secretary of State” substitute “OGA”.

(5) In subsection (7), for “Secretary of State” substitute “OGA”.

(6) In subsection (8), for “he is obliged to do so under the Framework
Agreement, the Secretary of State shall make his” substitute “the Framework
Agreement so requires, the OGA shall make its”.

21 (1) 30Section 17GB (section 17GA: supplemental) is amended as follows.

(2) In subsection (1)—

(a) for “Secretary of State” substitute “OGA”, and

(b) for “him” substitute “it”.

(3) In subsection (2)—

(a) 35for “Secretary of State” substitute “OGA”,

(b) for “he is required to do so” substitute “the disclosure is required”,
and

(c) omit “on him”.

22 (1) Section 18 (termination of authorisations) is amended as follows.

(2) 40In subsection (1)(b), for “Secretary of State” substitute “OGA”.

Energy BillPage 63

(3) In subsection (2)—

(a) for “Secretary of State” substitute “OGA”, and

(b) for “he” substitute “it”.

(4) In subsection (3)(b), for “Secretary of State” substitute “OGA”.

(5) 5In subsection (4)—

(a) for “Secretary of State” substitute “OGA”, and

(b) for “he” substitute “it”.

(6) In subsection (5)—

(a) for “Secretary of State” (in both places) substitute “OGA”, and

(b) 10for “he” (in each place) substitute “it”.

(7) In subsection (6), for “Secretary of State” (in both places) substitute “OGA”.

(8) In subsection (7)—

(a) for “Secretary of State” substitute “OGA”, and

(b) for “him” substitute “it”.

(9) 15In subsection (8), for “Secretary of State” (in both places) substitute “OGA”.

(10) In subsection (9)—

(a) for “Secretary of State” substitute “OGA”, and

(b) for “he” substitute “it”.

23 (1) Section 19 (vesting of pipelines on termination or subsequent issue of
20authorisations) is amended as follows.

(2) In subsection (1), for “Secretary of State” substitute “OGA”.

(3) In subsection (2)—

(a) for “Secretary of State” (in each place) substitute “OGA”, and

(b) for “he” substitute “the OGA”.

24 (1) 25Section 20 (inspectors etc) is amended as follows.

(2) For subsection (1) substitute—

(1) The OGA may appoint, as inspectors to assist it in the execution of
this Part of this Act, such number of persons appearing to it to be
qualified for the purpose as it considers appropriate from time to
30time.”

(3) In subsection (2)(a)(ii), for “Secretary of State” substitute “OGA”.

25 (1) Section 21 (enforcement) is amended as follows.

(2) In subsection (1)(c), for “Secretary of State” substitute “OGA”.

(3) In subsection (2), for “Secretary of State” substitute “OGA”.

(4) 35In subsection (3), for “Secretary of State” substitute “OGA”.

(5) In subsection (4)—

(a) for “Secretary of State” (in both places) substitute “OGA”, and

(b) for “he” substitute “it”.

(6) In subsection (5), for “Secretary of State” (in each place) substitute “OGA”.

Energy BillPage 64

26 In section 25 (orders and regulations), for subsection (1) substitute—

(1) Before making any order or regulations under this Part of this Act,
the Secretary of State must consult—

(a) the OGA, and

(b) 5in the case of regulations, such organisations in the United
Kingdom as the Secretary of State considers are
representative of persons who will be affected by the
regulations.”

27 In section 28(1) (interpretation of Part 3), for the definition of “heard”
10substitute—

  • ““heard” means—

    (a)

    in relation to section 27, heard on behalf of the Secretary of
    State by a person appointed by the Secretary of State for the
    purpose, and

    (b)

    15otherwise, heard on behalf of the OGA by a person appointed
    by the OGA for the purpose.”

28 In section 45A (abandoned wells), for “Secretary of State” (in each place)
substitute “OGA”.

29 In section 46(1) (Northern Ireland and Isle of Man shares of petroleum
20revenue), for “Secretary of State” (in each place) substitute “OGA”.

30 (1) Section 47A (factors to take into account) is amended as follows.

(2) In subsection (1)—

(a) for “Secretary of State” (in both places) substitute “OGA”, and

(b) for “him” substitute “it”.

(3) 25In subsection (2A), for “Secretary of State” substitute “OGA”.

(4) In the heading, for “Secretary of State” substitute “OGA”.

31 In section 48 (interpretation), after subsection (1) insert—

(1A) In this Act “the OGA” means the Oil and Gas Authority.”

32 (1) Schedule 2 (authorisations) is amended as follows.

(2) 30Omit paragraph 1(2).

(3) In paragraph 2—

(a) for “Secretary of State” (in each place) substitute “OGA”, and

(b) in paragraph (b), for “his” substitute “its”.

(4) In paragraph 3—

(a) 35for “Secretary of State” (in each place) substitute “OGA”,

(b) for “his” substitute “its”, and

(c) for “he” substitute “it”.

33 (1) Paragraph 4 is amended as follows.

(2) In sub-paragraph (1)—

(a) 40for “Secretary of State” substitute “OGA”,

(b) for “his” substitute “its”, and

(c) for “him” substitute “it”.

Energy BillPage 65

(3) In sub-paragraph (2)—

(a) for “Secretary of State” (in each place) substitute “OGA”, and

(b) for “his” substitute “its”.

(4) In sub-paragraph (3)—

(a) 5for “Secretary of State” substitute “OGA”,

(b) for “his” substitute “its”, and

(c) for “he” substitute “it”.

34 (1) Paragraph 5 is amended as follows.

(2) In sub-paragraph (1)—

(a) 10for “Secretary of State” (in both places) substitute “OGA”,

(b) for “his opinion he” substitute “its opinion it”, and

(c) for “he thinks” substitute “it thinks”.

(3) In sub-paragraph (2)—

(a) for “Secretary of State” (in both places) substitute “OGA”, and

(b) 15for “his opinion, he” substitute “its opinion, it”.

35 In paragraph 6, for “Secretary of State” (in both places) substitute “OGA”.

36 In paragraph 7—

(a) for “Secretary of State” (in each place) substitute “OGA”, and

(b) for “he” substitute “it”.

37 (1) 20Paragraph 8 is amended as follows.

(2) In sub-paragraph (1)—

(a) for “Secretary of State” (in both places) substitute “OGA”, and

(b) for “he” substitute “it”.

(3) In sub-paragraph (2)—

(a) 25for “Secretary of State” substitute “OGA”,

(b) for “he” (in the first place) substitute “it”, and

(c) in paragraph (b), for the words following “notice in” substitute “such
manner as it considers appropriate”.

38 (1) Paragraph 9 is amended as follows.

(2) 30In sub-paragraph (1), for “Secretary of State” substitute “OGA”.

(3) In sub-paragraph (2), for “Secretary of State” (in each place) substitute
“OGA”.

(4) For sub-paragraph (3) substitute—

(3) The OGA shall publish a copy of the notice in such manner as it
35considers appropriate.”

39 In paragraph 10—

(a) for “Secretary of State” (in each place) substitute “OGA”, and

(b) for the words from “he shall” to “which he” substitute “it shall
publish, in such manner as it”.

Energy BillPage 66

Energy Act 2004

40 (1) Section 188 of the Energy Act 2004 (power to impose charges to fund energy
functions) is amended as follows.

(2) In subsection (7), omit paragraphs (b), (h), (m) and (n).

(3) 5In subsection (8), omit paragraphs (da), (db) and (f).

(4) In subsection (12), in the substituted subsection (7A)(b), for “mentioned in
subsection (8)(db)” (in both places) substitute “for which a licence under
Chapter 3 of Part 1 of the Energy Act 2008 is required”.

Energy Act 2008

41 10The Energy Act 2008 is amended as follows.

42 In section 4(1) (licences), for “Secretary of State” substitute “OGA”.

43 (1) Section 5 (applications) is amended as follows.

(2) The existing provision becomes subsection (1).

(3) In that subsection, omit paragraph (e).

(4) 15After that subsection insert—

(2) Before making any regulations under this section, the Secretary of
State must consult the OGA.”

44 In section 6 (terms and conditions), for “Secretary of State” (in each place)
substitute “OGA”.

45 (1) 20Section 7 (model clauses) is amended as follows.

(2) In subsection (3), for “Secretary of State” substitute “OGA”.

(3) After that subsection insert—

(4) Before making any regulations under this section, the Secretary of
State must consult the OGA.”

46 (1) 25Section 9 (offences relating to licences) is amended as follows.

(2) In subsection (1)(a), for “Secretary of State” substitute “OGA”.

(3) In subsection (3)(b), for “Secretary of State” substitute “OGA”.

(4) In subsection (4)(b), for “Secretary of State” substitute “OGA”.

47 In section 10 (power of direction), for “Secretary of State” (in each place,
30including in the heading) substitute “OGA”.

48 In section 12 (injunctions restraining breaches of section 2(1)), for “Secretary
of State” (in each place) substitute “OGA”.

49 (1) Section 13 (inspectors) is amended as follows.

(2) In subsection (1), for “Secretary of State” (in both places) substitute “OGA”.

(3) 35Omit subsection (2).

(4) In subsection (3)(b), for “Secretary of State” substitute “OGA”.

Energy BillPage 67

(5) After subsection (5) insert—

(6) Before making any regulations under this section, the Secretary of
State must consult the OGA.”

50 In section 14(5) (proceedings for offence created by regulations under
5section 13), omit paragraph (b) and the word “and” immediately before it.

51 In section 15 (interaction with petroleum licensing requirements), for
“Secretary of State” (in each place) substitute “OGA”.

52 In section 16 (interpretation), at the end insert—

  • ““the OGA” means the Oil and Gas Authority.”

53 10In section 18(2) (licences: the licensing authority), for “Secretary of State” (in
each place) substitute “OGA”.

54 In section 19 (requirements relating to grant of licences), after subsection (2)
insert—

(2A) Where the licensing authority is the OGA—

(a) 15regulations under subsection (1) are to be made by the
Secretary of State (and not by the OGA),

(b) the Secretary of State must consult the OGA before making
the regulations, and

(c) subsection (2)(d) does not apply.”

55 20In section 21 (content of licences: regulations), after subsection (2) insert—

(2A) Where the licensing authority is the OGA—

(a) regulations under subsection (1) are to be made by the
Secretary of State (and not by the OGA), and

(b) the Secretary of State must consult the OGA before making
25the regulations.”

56 In section 26 (injunctions restraining breaches of section 17(1)), for
“Secretary of State” (in each place) substitute “OGA”.

57 (1) Section 27 (inspectors) is amended as follows.

(2) For subsections (1) and (2) substitute—

(1) 30The following may appoint persons to act as inspectors to assist in
carrying out their respective functions under this Chapter—

(a) the OGA,

(b) the Scottish Ministers,

(c) the Welsh Ministers, and

(d) 35the Department of Enterprise, Trade and Investment in
Northern Ireland.

(2) The following may make payments, by way of remuneration or
otherwise, to inspectors appointed by them under this section—

(a) the Scottish Ministers,

(b) 40the Welsh Ministers, and

(c) the Department of Enterprise, Trade and Investment in
Northern Ireland.”

(3) In subsection (3)(b), for “Secretary of State” substitute “OGA”.

Energy BillPage 68

(4) In subsection (6)—

(a) for “This section applies” substitute “Subsections (3) to (5) apply”,

(b) for “it applies” substitute “they apply”, and

(c) at the end insert “(reading the reference to the OGA in subsection
5(3)(b) as a reference to the Secretary of State)”.

(5) Omit subsection (7).

58 In section 28(5) (proceedings for offence created by regulations under
section 27), at the beginning of paragraph (b) insert “except in the case of an
offence that relates to functions of the OGA under this Chapter,”.

59 10In section 29 (requirement for public register) at the end insert—

(8) The OGA must provide to the Secretary of State any information
held by it that is required by the Secretary of State in order to comply
with the requirements imposed by this section.”

60 In section 31 (termination of licences: regulations), after subsection (3)
15insert—

(3A) Where the licensing authority is the OGA—

(a) regulations under this section are to be made by the Secretary
of State (and not by the OGA), and

(b) the Secretary of State must consult the OGA before making
20the regulations.”

61 In section 33 (enhanced petroleum recovery: power to make orders), after
subsection (1) insert—

(1A) Before making an order under subsection (1), the Secretary of State
must consult the OGA.”

62 25In section 35(1) (interpretation), after the definition of “offshore UK-
controlled place” insert—

  • ““the OGA” means the Oil and Gas Authority.”

Energy Act 2011

63 The Energy Act 2011 is amended as follows.

64 30In section 82 (acquisition of rights to use upstream petroleum
infrastructure), for “Secretary of State” (in each place) substitute “OGA”.

65 (1) Section 83 (power to give notice under section 82(11) on own initiative) is
amended as follows.

(2) In subsection (2), for “Secretary of State may on his or her” substitute “OGA
35may on its”.

(3) In subsection (3), for “Secretary of State” (in both places) substitute “OGA”.

(4) In subsection (4), for “Secretary of State” substitute “OGA”.

(5) In subsection (5)(d), for “Secretary of State” substitute “OGA”.

(6) In the heading, for “Secretary of State” substitute “OGA”.

66 40In section 84 (compulsory modification of upstream petroleum
infrastructure), for “Secretary of State” (in each place) substitute “OGA”.

Energy BillPage 69

67 In section 85 (variation of notices under sections 82 and 84), for “Secretary of
State” (in each place) substitute “OGA”.

68 In section 86 (publication of notices and variations), for “Secretary of State”
(in each place) substitute “OGA”.

69 5In section 87 (powers to require information), for “Secretary of State” (in each
place, including in the heading) substitute “OGA”.

70 (1) Section 88 (enforcement) is amended as follows.

(2) In subsection (1), for “Secretary of State” (in each place) substitute “OGA”.

(3) In subsection (9), for “Secretary of State” substitute “OGA”.

71 10In section 89 (minor, consequential and supplemental provision), for
“Secretary of State” (in both places) substitute “OGA”.

72 In section 90(1) (interpretation), after the definition of “gas processing
facility” insert—

  • ““the OGA” means the Oil and Gas Authority;”.

15Infrastructure Act 2015

73 The Infrastructure Act 2015 is amended as follows.

74 Omit section 42 (levy on holders of certain energy industry licences).

75 In section 55(4)(b) (statutory instruments subject to affirmative procedure),
omit “or 42(11)”.

76 20Omit Schedule 7 (the licensing levy).

Part 2 Secondary legislation

Storage of Carbon Dioxide (Licensing etc.) Regulations 2010

77 The Storage of Carbon Dioxide (Licensing etc.) Regulations 2010 (S.I. 2010/
252221) are amended as follows.

78 In regulation 1(3) (interpretation), in the definition of “the authority”, for
“Secretary of State” substitute “Oil and Gas Authority”.

79 In regulation 3(1)(a) (applications for a licence), for “Department of Energy
and Climate Change” substitute “Oil and Gas Authority”.

80 30In paragraph 2(3)(a) of Schedule 1 (application for consent to close storage
site), for “Department of Energy and Climate Change” substitute “Oil and
Gas Authority”.

Offshore Petroleum Licensing (Offshore Safety Directive) Regulations 2015

81 In regulation 2(1) (interpretation) of the Offshore Petroleum Licensing
35(Offshore Safety Directive) Regulations 2015 (S.I. 2015/385S.I. 2015/385), in the definition
of “licensing authority”, for “Secretary of State for Energy and Climate
Change” substitute “Oil and Gas Authority”.

Energy BillPage 70

Section 72

SCHEDULE 2 Abandonment of offshore installations

Petroleum Act 1998

1 Part 4 of the Petroleum Act 1998 (abandonment of offshore installations) is
5amended as follows.

2 Before section 29 insert—

28A Restriction on abandonment

(1) A person to whom a notice may be given under section 29(1) in
relation to an offshore installation or submarine pipeline may not
10abandon, or begin or continue the decommissioning of, the
installation or pipeline unless an abandonment programme
approved by the Secretary of State has effect in relation to the
installation or pipeline.

(2) A person who without reasonable excuse contravenes subsection (1)
15is guilty of an offence.”

3 (1) Section 29 (preparation of programmes) is amended as follows.

(2) After subsection (1) insert—

(1A) The power to give a notice under subsection (1) is exercisable—

(a) on the Secretary of State’s own motion, or

(b) 20at the request of any person to whom the notice may be given
(whether or not the notice is given to that person).”

(3) After subsection (2) insert—

(2A) A person to whom a notice under subsection (1) is given—

(a) must consult the OGA before submitting the abandonment
25programme to the Secretary of State, and

(b) must frame the programme so as to ensure (whether by
means of the timing of the measures proposed, the inclusion
of provision for collaboration with other persons, or
otherwise) that the cost of carrying it out is kept to the
30minimum that is reasonably practicable in the circumstances.

(2B) When consulted under paragraph (a) of subsection (2A) the OGA
must (in particular) consider and advise on—