(d) a requirement to take account of guidance.

(3) The provisions of section 27, Schedule 5 and this section which specify
particular kinds of provision that may be made in community electricity right
regulations do not limit the powers conferred by section 27 to make such
5regulations.

(4) The duties under Schedule 5 to make particular provision in community
electricity right regulations do not apply unless the Secretary of State decides
to exercise the power conferred by section 27 to make such regulations.

(5) Provision which commences community electricity right regulations may be
10framed so as to secure that the regulations do not apply to a renewable
electricity generation facility if development of the facility has reached a stage
of advancement specified in the commencement provision.

(6) A reference in section 27 or Schedule 5 to buying a stake in a renewable
electricity generation facility includes a reference to making a loan in relation
15to a renewable electricity generation facility.

(7) The Secretary of State must carry out a review of section 27, Schedule 5 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.

20The Extractive Industries Transparency Initiative

29 The Extractive Industries Transparency Initiative

After section 8 of the Commissioners for Revenue and Customs Act 2005
insert—

“8A The Extractive Industries Transparency Initiative

(1) 25The Commissioners may do anything which they think necessary or
expedient in connection with the Extractive Industries Transparency
Initiative in so far as it relates to taxes the collection and management
of which is the responsibility of the Commissioners.

(2) In this section “the Extractive Industries Transparency Initiative”
30means the international initiative of that name which has the aim of
promoting openness in the management of revenues from natural
resources.”

Recovery of UK petroleum

30 Maximising economic recovery of UK petroleum

After section 9 of the Petroleum Act 1998 insert—

“Part 1A

Maximising economic recovery of UK petroleum

9A The principal objective and the strategy

(1) 5In this Part the “principal objective” is the objective of maximising the
economic recovery of UK petroleum, in particular through—

(a) development, construction, deployment and use of equipment
used in the petroleum industry (including upstream petroleum
infrastructure), and

(b) 10collaboration among the following persons—

(i) holders of petroleum licences;

(ii) operators under petroleum licences;

(iii) owners of upstream petroleum infrastructure;

(iv) persons planning and carrying out the commissioning
15of upstream petroleum infrastructure.

(2) The Secretary of State must produce one or more strategies for enabling
the principal objective to be met.

(3) A strategy may relate to matters other than those mentioned in
subsection (1)(a) and (b).

(4) 20A strategy may not impose an obligation which relates to the powers of
a person to make commercial arrangements unless—

(a) the strategy imposes the obligation on relevant participants in
the petroleum industry, and

(b) the Secretary of State considers that the obligation will—

(i) 25stop commercial arrangements made by those relevant
participants, or associates of those relevant participants,
from having a significant adverse effect on the principal
objective, or

(ii) reduce the extent to which such arrangements have such
30an effect.

(5) In this section—

• “associate” has the meaning given in section 91 of the Energy Act
  2011;

• “relevant participant in the petroleum industry” means—

  (a)

  35the holder of a petroleum licence,

  (b)

  an operator under a petroleum licence, or

  (c)

  an owner of upstream petroleum infrastructure.

(6) For provision about producing and revising a strategy, see sections 9F
and 9G.

9B Exercise of certain functions of the Secretary of State

The Secretary of State must act in accordance with the current strategy
or strategies when—

(a) exercising functions under the other Parts of this Act (except
5Part 4),

(b) exercising functions under Part 4 to the extent that they concern
reduction of the costs of abandonment of offshore installations
and submarine pipelines,

(c) exercising functions under Chapter 3 of Part 2 of the Energy Act
102011 (upstream petroleum infrastructure),

(d) exercising any function or using any power under a petroleum
licence, and

(e) exercising any other function or using any power—

(i) to provide advice or assistance to another person, or

(ii) 15to acquire, use or supply information,

for the purpose of enabling the principal objective to be met.

9C Carrying out of certain petroleum industry activities

(1) A person who is the holder of a petroleum licence must act in
accordance with the current strategy or strategies when—

(a) 20planning and carrying out activities as the licence holder, and

(b) making commercial arrangements which relate to the person’s
activities as the licence holder (in so far as this does not fall
within paragraph (a)).

(2) A person who is an operator under a petroleum licence must act in
25accordance with the current strategy or strategies when—

(a) planning and carrying out activities as the operator under the
licence, and

(b) making commercial arrangements which relate to the person’s
activities as the operator under the licence (in so far as this does
30not fall within paragraph (a)).

(3) A person who is the owner of upstream petroleum infrastructure must
act in accordance with the current strategy or strategies when—

(a) planning and carrying out the person’s activities as the owner
of upstream petroleum infrastructure (including the
35development, construction, deployment and use of the
infrastructure), and

(b) making commercial arrangements which relate to the person’s
activities as the owner of upstream petroleum infrastructure (in
so far as this does not fall within paragraph (a)).

(4) 40A person must act in accordance with the current strategy or strategies
when planning and carrying out the commissioning of upstream
petroleum infrastructure.

9D Reports by the Secretary of State

(1) As soon as practicable after the end of each reporting period, the
45Secretary of State must—

(a) consider the extent to which, during that period, these persons
have followed section 9C by acting in accordance with the
current strategy or strategies—

(i) licence holders,

(ii) 5operators under petroleum licences,

(iii) owners of upstream petroleum infrastructure, and

(iv) persons planning and carrying out the commissioning
of upstream petroleum infrastructure; and

(b) produce a report on the results of the consideration of that
10question.

(2) The report may contain other material, including a statement of action
which the Secretary of State has taken, or is proposing to take, in
response to any matter included in the report (including changes to a
strategy).

(3) 15The Secretary of State must publish, and lay before each House of
Parliament, a copy of each report produced under this section.

(4) In this section “reporting period” means—

(a) the period of two years beginning with the day when this
section comes into force, and

(b) 20each subsequent period of one year beginning with the day after
the end of a previous reporting period.

9E Secretary of State’s security and resilience functions

(1) This Part does not limit the exercise of the Secretary of State’s security
and resilience functions.

(2) 25This Part is subject to the exercise of the security and resilience
functions by the Secretary of State.

(3) In this section “security and resilience function” means any function
which relates to—

(a) the security of petroleum supplies, or

(b) 30the resilience of the petroleum industry.

9F Producing and revising a strategy

(1) The Secretary of State must produce the first strategy before the end of
the period of one year beginning with the day on which this section
comes into force.

(2) 35The Secretary of State may subsequently—

(a) produce a new strategy, or

(b) revise a current strategy,

whenever the Secretary of State thinks appropriate.

(3) The Secretary of State must review each current strategy before the end
40of each relevant four year period.

(4) In reviewing a current strategy, the Secretary of State must (in
particular) take account of the results of any consideration undertaken
under section 9D in respect of reporting periods falling within the
relevant four year period.

(5) In this section “relevant four year period”, in relation to a current
strategy, means a period of four years beginning with—

(a) the date on which the strategy was issued, or

(b) if later, the date on which the last review under subsection (3)
5was concluded.

9G Procedure for producing and revising a strategy

(1) Before—

(a) producing the first strategy,

(b) producing a new strategy, or

(c) 10revising a current strategy,

the Secretary of State must prepare a draft of the strategy or revised
strategy.

(2) The Secretary of State must—

(a) consult such persons as the Secretary of State thinks appropriate
15about the draft, and

(b) consider any representations made by them.

(3) If, after complying with that duty, the Secretary of State decides to
proceed with the draft (in its original form or with modifications), the
Secretary of State must lay a copy of the draft before each House of
20Parliament.

(4) The Secretary of State may not take any further steps in relation to the
draft if, within the 40 day period, either House resolves not to approve
the draft (a “negative resolution”).

(5) If neither House passes a negative resolution, the Secretary of State may
25issue the strategy or revised strategy in the form laid before Parliament.

(6) The strategy or revised strategy comes into force on the date specified
by the Secretary of State (which must not be before the date when it is
issued).

(7) Subsection (4) does not prevent a new draft of a strategy or revised
30strategy from being laid before Parliament.

(8) In this section “40 day period”, in relation to the draft of a strategy or
revised strategy, means the period of 40 days beginning with the day
on which the draft is laid before Parliament (or if the draft is not laid
before each House on the same day, the later of the 2 days on which it
35is laid).

(9) For the purposes of calculating the 40 day period, no account is to be
taken of any period during which Parliament is dissolved or prorogued
or during which both Houses are adjourned for more than four days.

9H “Upstream petroleum infrastructure” and its owners

(1) 40In this Part “upstream petroleum infrastructure” means—

(a) a gas processing facility,

(b) an oil processing facility, or

(c) an upstream petroleum pipeline,

if and in so far as it meets conditions A and B.

(2) A facility or pipeline meets condition A if and in so far as it is situated
in Great Britain or relevant UK waters.

(3) A facility or pipeline meets condition B if and in so far as it is used in
relation to UK petroleum (including such petroleum after it has been
5got).

(4) But an upstream petroleum pipeline is not “upstream petroleum
infrastructure” if it is a pipeline to which section 17GA applies
(petroleum pipelines subject to Norwegian access system).

(5) In this section, the following expressions have the same meanings as in
10Chapter 3 of Part 2 of the Energy Act 2011 (see section 90 of that Act)—

(a) “gas processing facility”;

(b) “oil processing facility”;

(c) “upstream petroleum pipeline”.

(6) In this Part, “owner”, in relation to upstream petroleum infrastructure,
15means—

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

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

(c) a person who has the right to have things conveyed by the
20pipeline or processed by the facility.

9I Other interpretation

In this Part—

• “current strategy”, in relation to any particular time, means a
  strategy under section 9A(2) in force at that time;

• 25“operator under a petroleum licence” means a person who is
  responsible for organising or supervising any of the operations
  of searching for, boring for, or getting UK petroleum in
  pursuance of the petroleum licence;

• “owner”, in relation to upstream petroleum infrastructure, has the
  30meaning given in section 9H;

• “petroleum” has meaning given in section 1;

• “petroleum licence” means a licence granted under—

  (a)

  section 3 of this Act, or

  (b)

  section 2 of the Petroleum (Production) Act 1934;

• 35“principal objective” has the meaning given in section 9A;

• “relevant UK waters” means—

  (a)

  the territorial sea adjacent to the United Kingdom, and

  (b)

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

• 40“UK petroleum” means petroleum which for the time being exists
  in its natural condition in strata beneath relevant UK waters;

• “upstream petroleum infrastructure” has the meaning given in
  section 9H.”

31 Levy on holders of certain energy industry licences

(1) 45The Secretary of State may, by regulations, provide for a levy to be imposed on,
and be payable by, one or more of the following kinds of persons—

(a) persons who hold licences under section 2 of the Petroleum
(Production) Act 1934 or licences under section 3 of the Petroleum Act
1998 (exploitation of petroleum);

(b) persons who hold licences under section 4 of the Energy Act 2008
5(unloading and storing gas);

(c) persons who hold licences under section 18 of the Energy Act 2008
granted by the Secretary of State (storage of carbon dioxide).

(2) No licensing levy is to be imposed in respect of a time which falls after the end
of the period of 3 years beginning with the first day of the first charging period.

(3) 10The Secretary of State must exercise the power conferred by subsection (1) so
as to secure—

(a) that the total amount of licensing levy which is payable in respect of a
charging period does not exceed the costs incurred by the Secretary of
State in exercising the relevant functions in respect of that period; and

(b) 15that no levy is payable in respect of costs incurred in any exercise of
relevant functions for which a charge is payable under the Gas and
Petroleum (Consents) Charges Regulations 2013 (as those Regulations
stand when this section comes into force).

(4) In determining for the purposes of subsection (3)(a) the total amount of
20licensing levy payable in respect of a charging period, an amount of levy
payable in respect of that period may be ignored if (during that period or
subsequently)—

(a) having been paid, it is repaid or credit for it is given against other
licensing levy that is payable; or

(b) 25having not been paid, the requirement to pay it is cancelled.

(5) The “relevant functions” referred to in subsection (3) are—

(a) functions under the following enactments—

(i) the Pipe-lines Act 1962 (cross-country pipe-lines);

(ii) section 3 and the other provisions of Part 1 of the Petroleum Act
301998 (exploitation of petroleum);

(iii) Part 1A of the Petroleum Act 1998 (maximising economic
recovery of UK petroleum);

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

(v) Part 4 of the Petroleum Act 1998, in so far as the functions
35concern reduction of the costs of abandonment of offshore
installations and submarine pipelines;

(vi) section 4 and the other provisions of Chapter 2 of Part 1 of the
Energy Act 2008 (importation and storage of combustible gas);

(vii) section 18 and the other provisions of Chapter 3 of Part 1 of the
40Energy Act 2008 (storage of carbon dioxide);

(viii) Chapter 3 of Part 2 of the Energy Act 2011 (upstream petroleum
infrastructure);

(b) carrying out policy work on matters relating to UK petroleum and its
recovery;

(c) 45providing advice and assistance to the petroleum industry on matters
relating to UK petroleum and its recovery;

(d) collaborating with the petroleum industry on matters relating to UK
petroleum and its recovery;

(e) acquiring, using and supplying information on matters relating to UK
petroleum and its recovery;

(f) encouraging development of the petroleum industry in relation to the
recovery of UK petroleum;

(g) 5carrying out, or providing advice and assistance to those carrying out,
research and development in relation to technology and products
relevant to the recovery of UK petroleum;

(h) functions which relate to—

(i) the security of petroleum supplies, or

(ii) 10the resilience of the petroleum industry;

(i) international co-operation on matters relating to UK petroleum and its
recovery, including—

(i) resolution of disputes relating to the entitlements of different
countries in relation to petroleum fields, and

(ii) 15openness and accountability in the management of natural
resources.

(6) The matters relating to UK petroleum and its recovery which fall within
paragraphs (b), (c), (d) and (e) of subsection (5) include—

(a) maximising the economic recovery of UK petroleum, and

(b) 20improving the supply chain of UK petroleum.

(7) 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.

(8) The licensing levy is payable to the Secretary of State.

(9) 25Schedule 6 (the licensing levy) has effect.

(10) Schedule 6 does not limit the provision that may be made by regulations under
this section.

(11) The Secretary of State may, by regulations, amend subsection (3)(b) by adding,
removing or amending a reference to any regulations made under section 188
30of the Energy Act 2004.

(12) In this section and Schedule 6—

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

• “licensing levy” means the levy provided for in regulations under this
  35section;

• “UK petroleum” means petroleum (within the meaning given in section 1
  of the Petroleum Act 1998) which for the time being exists in its natural
  condition in strata beneath—

  (a)

  the territorial sea adjacent to the United Kingdom, and

  (b)

  40the sea in any area designated under section 1(7) of the
  Continental Shelf Act 1964.

Petroleum and geothermal energy in deep-level land

32 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) 5Land 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
10being 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
15of that energy is to be, or is, the generation of electricity.

33 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) 20keeping, 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
25into 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) 30preparing 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
35condition 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
40granted 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 32 and this section bind the Crown.

34 Payment scheme

(1) The Secretary of State may, by regulations, require relevant energy
undertakings to make payments in respect of the proposed exercise, or
5exercise, 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) 10The 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
15about—

(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
20consult such persons as the Secretary of State considers appropriate.

35 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) 25The 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
30elsewhere;

(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) 35the 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
40given, 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.