Energy Bill (HC Bill 128)

(a) alternatives to abandoning or decommissioning the
installation or pipeline, such as re-using or preserving it, and

(b) 35how to comply with paragraph (b) of that subsection.”

(4) In subsection (3), after “such” insert “other”.

4 (1) Section 32 (approval of programmes) is amended as follows.

(2) After subsection (2) insert—

(2A) The modifications or conditions may (in particular) include
40modifications or conditions—

(a) which are intended (whether by means of the timing of the
measures proposed, the inclusion of provision for

Energy BillPage 71

collaboration with other persons, or otherwise) to reduce the
total cost of carrying out the programme, provided that they
do not increase the total costs to be met by any person who is
to be subject to obligations under the programme or under
5any other abandonment programme;

(b) requiring the persons who submitted the programme to carry
out and publish or make available to the Secretary of State
and the OGA a review of the programme and its
implementation including, where relevant,
10recommendations as to the contents and implementation of
future abandonment programmes.”

(3) At the end insert—

(6) Before reaching a decision under this section the Secretary of State
must—

(a) 15consult the OGA, and

(b) take into account the cost of carrying out the programme that
has been submitted and whether it is possible to reduce that
cost by modifying the programme or making it subject to
conditions.

(7) 20When consulted under subsection (6)(a), the OGA must (in
particular) consider and advise on—

(a) alternatives to abandoning or decommissioning the
installation or pipeline, such as re-using or preserving it, and

(b) whether section 29(2A)(b) has been complied with and, if it
25has not been, modifications or conditions that would enable
it to be complied with.”

5 In section 33 (failure to submit programme), after subsection (3) insert—

(3A) When preparing an abandonment programme under this section the
Secretary of State must—

(a) 30consult the OGA, and

(b) 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 minimum that is
35reasonably practicable in the circumstances.

(3B) When consulted under paragraph (a) of subsection (3A), the OGA
must (in particular) consider and advise on—

(a) alternatives to abandoning or decommissioning the
installation or pipeline, such as re-using or preserving it, and

(b) 40how to comply with the requirement in paragraph (b) of that
subsection.”

6 (1) Section 34 (revision of programmes) is amended as follows.

(2) After subsection (4) insert—

(4A) A person who makes a proposal under subsection (1) that is likely to
45have an effect on the cost of carrying out the programme must frame
it 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 out the programme as

Energy BillPage 72

proposed to be altered is kept to the minimum that is reasonably
practicable in the circumstances.

(4B) Where the Secretary of State makes a proposal under subsection
(1)(a) the purpose of which is to reduce the total cost of carrying out
5a programme, the proposal may not increase the total costs to be met
by any person who is to be subject to obligations under the
programme or under any other abandonment programme.”

(3) After subsection (7) insert—

(7A) If it appears to the Secretary of State that what is proposed under
10subsection (1) is likely to have an effect on the cost of carrying out the
programme, the Secretary of State must, before making a
determination under subsection (7)—

(a) consult the OGA, and

(b) take that effect into account.

(7B) 15When consulted under subsection (7A)(a) the OGA must (in
particular) consider and advise on—

(a) alternatives to abandoning or decommissioning the
installation or pipeline, such as re-using or preserving it, and

(b) whether subsection (4A) applies and, if so, whether it has
20been complied with.”

7 After section 34 insert—

34A Amendment of programmes

(1) This section applies where an abandonment programme approved
by the Secretary of State includes provision by virtue of which the
25programme may be amended.

(2) A person who proposes to make an amendment under such a
provision that is likely to have an effect on the cost of carrying out the
programme must frame the amendment so as to ensure (whether by
means of the timing of the measures proposed, the inclusion of
30provision for collaboration with other persons, or otherwise) that the
cost of carrying out the programme as proposed to be amended is
kept to the minimum that is reasonably practicable in the
circumstances.

(3) If it appears to the person who proposes to make the amendment that
35subsection (2) applies, the person must consult the OGA before
making the amendment.

(4) When consulted under subsection (3) the OGA must (in particular)
consider and advise on—

(a) alternatives to abandoning or decommissioning the
40installation or pipeline, such as re-using or preserving it, and

(b) whether subsection (2) applies and, if so, whether it has been
complied with.

(5) Any person who has the function of approving amendments made
under a provision mentioned in subsection (1) must, when exercising
45the function, take into account the effect of the proposed amendment
on the cost of carrying out the programme.”

Energy BillPage 73

8 After section 36 insert—

36A Reduction of costs of carrying out programmes

(1) This section applies where an abandonment programme approved
by the Secretary of State has effect in relation to an installation or
5pipeline.

(2) The Secretary of State may, for the purpose of reducing the total cost
of carrying out the programme, by written notice require any person
who submitted the programme to take, or refrain from taking, action
of a description specified in the notice.

(3) 10The notice may, in particular, require—

(a) changes to the times at which the measures proposed in the
programme are to be carried out;

(b) the persons who are under a duty to secure that the
programme is carried out to collaborate with other persons.

(4) 15The programme, and any condition to which it is subject, has effect
subject to any notice given under this section.

(5) A notice given under this section may not increase the total costs to
be met by any person who is to be subject to obligations under the
programme or under any other abandonment programme.

(6) 20The Secretary of State may not give a notice to a person under this
section without first giving the person an opportunity to make
written representation as to whether the notice should be given.

(7) A person to whom a notice is given under this section who without
reasonable excuse fails to comply with the notice is guilty of an
25offence.

(8) If a notice under this section is not complied with, the Secretary of
State may—

(a) do anything necessary to give effect to the notice, and

(b) recover from the person to whom the notice was given any
30expenditure incurred under paragraph (a).

(9) A person liable to pay any sum to the Secretary of State by virtue of
subsection (8) must also pay interest on that sum for the period
beginning with the day on which the Secretary of State notified the
person of the sum payable and ending with the date of payment.

(10) 35The rate of interest payable in accordance with subsection (9) is a rate
determined by the Secretary of State as comparable with commercial
rates.”

9 In section 37 (default in carrying out programmes), after subsection (1)
insert—

(1A) 40If it appears to the Secretary of State that the proposed remedial
action is likely to have an effect on the cost of carrying out the
programme, the Secretary of State must—

(a) consult the OGA before giving a notice under subsection (1),
and

Energy BillPage 74

(b) take that effect into account when deciding whether to give
the notice.

(1B) When consulted under subsection (1A)(a), the OGA must consider
and advise on the likely effect of the proposed remedial action on the
5cost of carrying out the programme.”

10 In section 40 (offences: penalties)—

(a) after “section” insert “28A,”, and

(b) after “33,” insert “36A,”.

11 (1) Section 41 (offences: general) is amended as follows.

(2) 10In subsection (1)—

(a) after “section” insert “28A,”, and

(b) after “33,” insert “36A,”.

(3) In subsection (2)—

(a) after “section” insert “28A,”, and

(b) 15after “33,” insert “36A,”.

(4) In subsection (3)—

(a) after “section” insert “28A,”, and

(b) after “33,” insert “36A,”.

(5) In subsection (5), after “section” insert “28A, 36A or”.

12 (1) 20Section 42 (validity of Secretary of State’s acts) is amended as follows.

(2) In subsection (2), after paragraph (e) insert—

(ea) the giving of a notice under section 36A(2);”.

(3) In subsection (5), after paragraph (e) insert—

(ea) in relation to the giving of a notice under section 36A(2),
25means the requirements of section 36A(6);”.

Energy Act 2008

13 (1) Section 30 of the Energy Act 2008 (abandonment of carbon storage
installations) is amended as follows.

(2) In subsection (1), after “subsections” insert “(1A),”.

(3) 30After that subsection insert—

(1A) For the purposes of subsection (1), the amendments made to Part 4
of the 1998 Act by Schedule 2 to the Energy Act 2016 are to be
disregarded.”

(4) For subsection (4A) substitute—

(4A) 35The power in subsection (4)—

(a) may (in particular) be exercised to make modifications
corresponding to the amendments made by Schedule 2 to the
Energy Act 2016, and

(b) is subject to section 30A.”