Infrastructure Bill [HL]

Insert the following new Clause—

“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)     Land 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 being 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 of that energy is to be, or is, the generation of electricity.”

Insert the following new Clause—

“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)   keeping, 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 into 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)   preparing 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.

(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)   does 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 legally entitled to grant it.

(5)     Section (Petroleum and geothermal energy: right to use deep-level land) and this
section bind the Crown.”

Insert the following new Clause—

“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)     The 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)   specify 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)   the 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.”

Insert the following new Clause—

“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)     The 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 elsewhere;

(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)   the 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 given, 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
Secretary 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
consult such persons as the Secretary of State considers appropriate.

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

Insert the following new Clause—

“Payment and notice schemes: supplementary provision

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

(2)     Regulations under section (Payment scheme) or (Notice scheme) may confer a
function on—

(a)   the Secretary of State, or

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

(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.

(4)     The provisions of sections (Payment scheme) and (Notice scheme) and this
section which specify particular kinds of provision that may be made in
regulations under section (Payment scheme) or (Notice scheme) 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 (Payment scheme)
and (Notice scheme) and the preceding 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 (Payment scheme), and make any consequential
amendments (including repeals) 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 (Payment
scheme);

(b)   repeal section (Notice scheme), and make any consequential
amendments (including repeals) 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 (Notice
scheme).

(7)     The relevant conditions are met in relation to the power under section (Payment scheme) or the power under section (Notice scheme) if—

(a)   that power is not exercised within the period of 7 years beginning
with the 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.”

Insert the following new Clause—

“Interpretation

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

(a)   the 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)     In sections (Petroleum and geothermal energy: right to use deep-level land) to (Payment and notice schemes: supplementary provision) and this section—

“deep geothermal energy” means geothermal energy in deep-level
land (including in water or any other fluid in deep-level land);

“deep-level land” has the meaning given in section (Petroleum and
geothermal energy: right to use deep-level land)(4);

“landward area” has the same meaning as in the Petroleum Licensing
(Exploration and Production) (Landward Areas) Regulations 2014
(see regulation 1(2) of those Regulations);

“petroleum” has the same meaning as in Part 1 of the Petroleum Act
1998 (see section 1 of that Act);

“relevant energy undertaking” means a person who proposes to
exercise, or exercises, the right of use;

“relevant land” means land in respect of which the right of use is
proposed to be, or is, exercised;

“relevant requirement” means a requirement imposed by regulations
under section (Payment scheme) or (Notice scheme);

“right of use” means the right conferred by section (Petroleum and
geothermal energy: right to use deep-level land);

“Scottish deep-level land” means deep-level land in Scotland or
beneath waters adjacent to Scotland;

“specified” means specified in regulations under section (Payment
scheme) or (Notice scheme);

“substance” includes electricity and any other intangible thing.

(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 (3) above as the Secretary of
State considers appropriate in consequence of any other exercise of the
power under section 4 of the 1998 Act.”

Page 28, line 23, leave out “this Part” and insert “any of the following provisions of
this Part—

(a)   section 26 or 27 or Schedule 5;

(b)   section (Maximising economic recovery of UK petroleum) or (Levy on
holders of certain energy industry licences) or Schedule (The Licensing
Levy);

(c)   any of sections (Petroleum and geothermal energy: right to use deep-level
land) to (Interpretation).”

Page 28, line 35, at end insert—

“(ba)   regulations under section (Payment scheme) or (Notice scheme), or”

Page 29, line 29, leave out subsection (4) and insert—

“(4)     In Part 4 (energy)—

(a)   sections 26 and 27, sections (Maximising economic recovery of UK
petroleum) and (Levy on holders of certain energy industry licences),
sections (Petroleum and geothermal energy: right to use deep-level land)
to (Interpretation), and 28 and Schedules 5 and (The Licensing Levy)
extend to England and Wales and Scotland, and

(b)   section (The Extractive Industries Transparency Initiative) extends to
England and Wales, Scotland and Northern Ireland.”

Page 30, line 14, leave out subsection (5) and insert—

“(5)     In Part 4 (energy)—

(a)   sections 26 and 27, section (The Extractive Industries Transparency
Initiative), sections (Petroleum and geothermal energy: right to use deep-
level land) to (Interpretation), and Schedule 5 come into force at the
end of the period of two months beginning with the day on which
this Act is passed,

(b)   sections (Maximising economic recovery of UK petroleum) and (Levy on
holders of certain energy industry licences) and Schedule (The licensing
levy) come into force on such day as the Secretary of State appoints
by regulations, and

(c)   section 28 comes into force on the day on which this Act is passed.”