Energy Bill [HL]

Revised
Marshalled
List of Amendments
to be moved
in committee

The amendments have been marshalled in accordance with the Instruction of 22nd July 2015, as follows—

Clauses 1 and 2
Schedule Title
Clauses 3 to 63

[Amendments marked * are new or have been altered]

Clause 2

BARONESS WORTHINGTON

1

Page 2, line 5, at end insert—

“( )     The Secretary of State shall, within one year from the date of coming into
force of this section, undertake an assessment of the fitness for purpose of
the OGA’s powers in relation to relevant activities, and shall lay before
each House of Parliament a report of the findings.”

The Schedule

LORD BOURNE OF ABERYSTWYTH

[Amendments 37 to 42 are re-printed as Amendments 1A to 1F]

1A*

Page 38, line 37, at end insert—

“( )     Omit paragraph 1(2).”

1B*

Page 40, line 7, at end insert—

“Energy Act 2004

  (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)     In 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”.”

1C*

Page 40, line 12, at end insert—

“( )     In that subsection, omit paragraph (e).”

1D*

Page 41, line 15, at end insert—

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

1E*

Page 43, line 9, at end insert—

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

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

1F*

Page 43, line 9, at end insert—

“Infrastructure Act 2015

The Infrastructure Act 2015 is amended as follows.

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

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

Omit Schedule 7 (the licensing levy).”

After Clause 3

BARONESS WORTHINGTON

2

Insert the following new Clause—

“Report to Parliament on decommissioning costs

Within one year of this Act coming into force, and annually thereafter, the
Secretary of State shall report to each House of Parliament on estimated
decommissioning costs for North Sea oil and gas infrastructure.”

BARONESS WORTHINGTON

LORD TEVERSON

LORD OXBURGH

3

Insert the following new Clause—

“Transportation and storage of greenhouse gases

(1)     The Petroleum Act 1998, as amended by the Infrastructure Act 2015, is
amended as follows.

(2)     In Section 9A(1) (the principal objective and the strategy) after “petroleum”
insert “and development of the transportation and storage of greenhouse
gases”.”

Clause 4

BARONESS BYFORD

3A*

Page 3, line 12, after “from,” insert “its existence and”

LORD WHITTY

LORD GRANTCHESTER

4*

Page 3, line 13, at end insert—

Decarbonisation of energy system

The need to meet the objectives of the Climate Change Act 2008 and the
carbon budgets promulgated under that Act; together with obligations on
greenhouse gases or decarbonisation agreed at European Union or
international levels.”

BARONESS WORTHINGTON

5

Page 3, line 15, at end insert—

Facilitating the development of carbon storage

The need for the UK to develop commercial geological carbon storage in
order to support the achievement of the UK carbon budgets.”

6

Page 3, line 15, at end insert—

Environmental considerations and climate change

The need for the OGA to address environmental considerations and to
facilitate the pursuance of section 1 of the Climate Change Act 2008 in
relation to relevant activities.”

LORD OXBURGH

7

Page 3, line 15, at end insert—

Environmental security

The need for the United Kingdom to make safe and cost effective provision
for the storage of carbon dioxide.”

BARONESS WORTHINGTON

LORD TEVERSON

8

Page 3, line 22, at end insert “, with particular emphasis on the development and
promotion of carbon transport and storage”

BARONESS WORTHINGTON

9

Page 3, line 22, at end insert—

Hierarchy of matters relating to decommissioning

The need for the re-use of viable North Sea infrastructure for carbon
capture and storage projects to be considered prior to the decommissioning
of such sites.”

LORD WHITTY

LORD GRANTCHESTER

10

Page 3, line 22, at end insert—

Energy efficiency

The need to increase levels of energy efficiency within the energy supply
system.”

11

Page 3, line 25, at end insert—

Carbon capture and storage policy

The need for the OGA to ensure the delivery of cost effective carbon
dioxide transport and storage infrastructure.”

Clause 5

BARONESS WORTHINGTON

LORD TEVERSON

LORD OXBURGH

12

Page 3, line 35, at end insert—

“( )   
are necessary in order to inform the OGA’s role in developing and
promoting carbon storage,”

LORD WHITTY

LORD GRANTCHESTER

13

Page 3, line 35, at end insert—

“( )   are necessary to meet the terms of the Climate Change Act 2008 or
European or international obligations on climate change,”

BARONESS WORTHINGTON

14

Page 3, line 35, at end insert—

“( )   are necessary in order to facilitate, and comply with, the UK
Government strategy on decarbonisation of the industrial sector,”

LORD WHITTY

LORD GRANTCHESTER

15

Page 4, line 5, at end insert—

“( )     Such directions may include requirements on the development of storage
facilities of gas or oil; or storage of carbon dioxide as part of a carbon
capture and storage scheme.”

After Clause 7

LORD BOURNE OF ABERYSTWYTH

16

Insert the following new Clause—

“Powers of the OGA to charge fees

(1)     
The OGA may charge fees—

(a)   for making a determination under Schedule 1 to the Oil Taxation
Act 1975;

(b)   on an application made to it under section 3, 15, 16 or 17 of the
Petroleum Act 1998;

(c)   on an application of a prescribed description made to it by the
holder of a licence granted under—

(i)   section 3 of that Act (searching for, boring and getting
petroleum), or

(ii)   section 2 of the Petroleum (Production) Act 1934 (licences to
search for and get petroleum);

(d)   on an application of a prescribed description made to it by the
holder of an authorisation issued under section 15 of the Petroleum
Act 1998;

(e)   for carrying out or attending any test, examination or inspection of
a prescribed description;

(f)   on an application made to it under section 4 or 18 of the Energy Act
2008;

(g)   on an application of a prescribed description made to it by the
holder of a licence granted under section 4 or 18 of that Act;

(h)   for the storage by it of samples or information in accordance with
an information and samples plan (see section (Information and
samples plans: supplementary
)(2) of this Act).

(2)     
The fees—

(a)   are to be determined by or in accordance with regulations made by
the Secretary of State, and

(b)   are to be payable by such persons as the regulations may provide.

(3)     The OGA must pay into the Consolidated Fund any amount which it
receives in respect of fees charged by it under this section.

(4)     Subsection (3) does not apply where the Secretary of State, with the consent
of the Treasury, otherwise directs.

(5)     Where in relation to any matter the OGA has a function mentioned in
subsection (6), that function is treated for the purposes of this section as
carried out pursuant to an application made to the OGA (whether or not
there is any requirement to make such an application).

(6)     
The functions are—

(a)   extending the term of a licence;

(b)   giving its consent or approval in relation to any matter;

(c)   objecting in relation to any matter.

(7)     The Secretary of State must consult the OGA before making regulations
under this section.

(8)     
In this section “prescribed” means prescribed by regulations made by the
Secretary of State.”

17

Insert the following new Clause—

“Levy on licence holders

(1)     The 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 (other than excluded licences) granted
under section 3 of the Petroleum Act 1998 (searching for, boring and
getting petroleum);

(b)   persons who hold licences (other than excluded licences) granted
under section 2 of the Petroleum (Production) Act 1934 (licences to
search for and get petroleum);

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

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

(2)     The 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 OGA
in exercising its functions in respect of that period, and

(b)   that no levy is payable in respect of costs incurred in the exercise of
functions—

(i)   for which fees are charged under section (Powers of the OGA
to charge fees
), or

(ii)   which the OGA is authorised to exercise by virtue of an
order under section 69 of the Deregulation and Contracting
Out Act 1994.

(3)     In determining for the purposes of subsection (2)(a) the total amount of
licensing 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)   having not been paid, the requirement to pay it is cancelled.

(4)     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.

(5)     The licensing levy is payable to the OGA.

(6)     The OGA must pay into the Consolidated Fund any amount which it
receives in respect of the licensing levy.

(7)     Subsection (6) does not apply where the Secretary of State, with the consent
of the Treasury, otherwise directs.

(8)     The Secretary of State must consult the OGA before making regulations
under this section.

(9)     Section (The licensing levy: regulations) does not limit the provision that may
be made by regulations under this section.

(10)     In this section and section (The licensing levy: regulations
)—

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


“excluded licence”, in relation to a charging period, means a licence
that, if granted at the beginning of the period, would fall to be
granted by the Scottish Ministers or the Welsh Ministers (and for
these purposes a licence within subsection (1)(b) is to be treated as
granted under section 3 of the Petroleum Act 1998);


“licensing levy” means the levy provided for in regulations under this
section.”

18

Insert the following new Clause—

“The licensing levy: regulations

(1)     Regulations may provide for the licensing levy payable in respect of a
charging period to increase or decrease over that period.

(2)     Regulations may provide for an amount of licensing levy payable by a
licence holder to be calculated by reference to the size of an area to which a
licence held by that person relates.

(3)     Regulations may provide for different categories of licence holders to
pay—

(a)   different amounts of licensing levy, or

(b)   amounts of licensing levy calculated, set or determined in different
ways.

(4)     Regulations may provide for a category of licence holder to be exempt from
payment of the licensing levy.

(5)     Regulations may provide for interest (at a rate specified in, or determined
under, the regulations) to be charged in respect of unpaid amounts of
licensing levy.

(6)     Regulations may provide for unpaid amounts of licensing levy (together
with any interest charged) to be recoverable as a civil debt.

(7)     Regulations may confer a function (including a function involving the
exercise of a discretion) on—

(a)   the Secretary of State,

(b)   the OGA, or

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

(8)     Regulations (including regulations of the kinds mentioned in subsections
(3) and (4)) may provide for a category of licence holder to consist of
persons who hold a kind of licence that is specified in the regulations.

(9)     The regulations may (in particular) specify any of the following kinds of
licence—

(a)   licences granted under a particular enactment;

(b)   licences of a particular description granted under a particular
enactment;

(c)   licences, or licences of a particular description (including a
description falling within paragraph (a) or (b)), granted—

(i)   before a particular time,

(ii)   after a particular time, or

(iii)   during a particular period.

(10)     
In this section—

“licence” means a licence falling within section (Levy on licence
holders
)(1);


“licence holder” means a person who holds a licence (whether the
person was granted it or has, after its grant, acquired it by
assignment or other means);

“regulations” means regulations under section (Levy on licence
holders
).”

19

Insert the following new Clause—

“Payments and financial assistance

(1)     The Secretary of State may make payments or provide financial assistance
to the OGA.

(2)     The payments or financial assistance may be made or provided subject to
such conditions as may be determined by the Secretary of State.

(3)     In the case of a grant such conditions may, in particular, include conditions
requiring repayment in specified circumstances.

(4)     
In this section “financial assistance” means grants, loans, guarantees or
indemnities, or any other kind of financial assistance.”

Clause 9

BARONESS WORTHINGTON

LORD TEVERSON

20

Page 6, line 11, at end insert “or carbon capture licence”

21*

Page 6, line 13, at end insert “or a carbon capture licence”

LORD OXBURGH

22

Page 6, line 13, at end insert “and in this context “petroleum licence” includes a
licence granted for the purpose of storage of carbon dioxide”

23

Page 6, line 26, at end insert “and the objective of meeting the requirements for sub-
surface storage of carbon dioxide in so far as these requirements are not met under
the Petroleum Act 1998”

Clause 19

LORD WHITTY

LORD GRANTCHESTER

24

Page 11, line 25, after “which” insert “were or”

25

Page 11, line 26, leave out “and” and insert “and/or”

BARONESS WORTHINGTON

LORD TEVERSON

LORD OXBURGH

26

Page 11, line 33, at end insert—

“(2)     For the avoidance of doubt, the provisions within this Chapter shall also
apply for the purpose of data sharing with carbon capture and storage
operators.”

Clause 21

BARONESS BYFORD

26A*

Page 12, line 15, after “licence” insert “where the licensee continues in business”

Clause 25

LORD WHITTY

LORD GRANTCHESTER

27

Page 14, line 9, leave out “a new licensee” and insert “either a new licensee or a new
carbon dioxide storage licence holder”

BARONESS WORTHINGTON

LORD TEVERSON

28

Page 14, line 13, at end insert—

“( )     For the avoidance of doubt, an information and samples plan shall also
provide for the sharing of such data with carbon capture and storage
operators.”

Clause 26

LORD WHITTY

LORD GRANTCHESTER

29

Page 14, line 24, leave out “functions of the OGA which are relevant to the
fulfilment of the principal objective” and insert “relevant functions of the OGA”

BARONESS WORTHINGTON

LORD TEVERSON

30

Page 14, line 25, after “objective” insert “or to the promotion and development of
carbon capture transport and storage”

Clause 27

BARONESS BYFORD

30A*

Page 15, line 26, after “disclosed” insert “in defined circumstances”

Clause 28

LORD BOURNE OF ABERYSTWYTH

31

Page 16, line 19, at end insert—

“(4)     In determining the time to be specified in respect of protected material in
regulations under section 27(8), the Secretary of State must have regard to
the following factors—

(a)   whether the specified time will allow owners of protected material
a reasonable period of time to satisfy the main purpose for which
they acquired or created the material;

(b)   any potential benefits to the petroleum industry of protected
material being published or made available at the specified time;

(c)   any potential risk that the specified time may discourage persons
from acquiring or creating petroleum-related information or
petroleum-related samples;

(d)   any other factors the Secretary of State considers relevant.

(5)     In balancing the factors mentioned in subsection (4)(a) to (d), the Secretary
of State must take into account the principal objective.

(6)     For the purposes of subsection (4)(a), the owner of protected material is the
person by whom, or on whose behalf, the protected material was provided
to the OGA under this Chapter.”

Clause 40

LORD BOURNE OF ABERYSTWYTH

32

Page 22, line 6, at end insert—

“( )     The OGA must lay any guidance issued under this section, and any
revision of it, before each House of Parliament.”

After Clause 56

LORD BOURNE OF ABERYSTWYTH

33


Insert the following new Part—

““PART 2A

INFRASTRUCTURE

Requirements to provide information

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

(2)     
In section 87 (powers to require information), after subsection (5) insert—

“(5A)    A notice under subsection (1), (2) or (3) that imposes a requirement
on a person must specify when the requirement is to be complied
with.”

(3)     
After that section insert—

“87A          Appeals against requirements to provide information

(1)     Any person on whom a requirement is imposed by a notice under
section 87(1), (2) or (3) may appeal against the notice to the Tribunal
on the grounds that—

(a)   the information required by the notice is not relevant to the
exercise by the OGA of its functions under this Chapter, or

(b)   the length of time given to comply with the notice is
unreasonable.

(2)     
On an appeal under this section the Tribunal may—

(a)   confirm, vary or cancel the notice, or

(b)   remit the matter under appeal to the OGA for
reconsideration with such directions (if any) as the Tribunal
considers appropriate.

(3)     In this section “the Tribunal” means the First-tier Tribunal.

87B          Sanctions for failure to provide information

(1)     A requirement imposed by a notice under section 87(1), (2) or (3) is
to be treated for the purposes of Chapter 5 of Part 2 of the Energy
Act 2016 (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.””

34

Insert the following new Clause—

“Applications 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)    omit 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)      This 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 the 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)     For 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)     Any 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)     Subsection (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
before the assignment or assignation from any person who at the
time was the applicant may be disclosed to B.

(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)     This 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)   anything 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
imposed 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)     Any 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)     Subsection (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
before 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
obtained.””

After Clause 58

LORD OXBURGH

BARONESS WORTHINGTON

34A*

Insert the following new Clause—

“Carbon capture and storage

Within one year of the coming into force of this Act, the Government shall
undertake a consultation on measures requiring extractors and importers
of petroleum to contribute to the development of carbon capture and
storage.”

Clause 59

LORD WHITTY

 


Lord Whitty gives notice of his intention to oppose the Question that Clause 59 stand part
of the Bill.

Clause 60

LORD WALLACE OF TANKERNESS

BARONESS MADDOCK

LORD WHITTY

 

The above-named Lords give notice of their intention to oppose the Question that Clause 60
stand part of the Bill
.

After Clause 60

LORD WHITTY

LORD GRANTCHESTER

35*

Insert the following new Clause—

“Renewable and other technologies

Within six months of the passing of this Act, the Secretary of State shall
publish an assessment of the progress towards decarbonisation of energy
supply, including a strategy for the development of renewables and a
strategy for energy efficiency within the supply system.”

Clause 61

LORD BOURNE OF ABERYSTWYTH

BARONESS WORTHINGTON

36

Page 33, line 14, leave out “or” and insert—

“(aa)   regulations under section 27(8), or”

[Amendments 37 to 42 are re-printed as Amendments 1A to 1F]

In the Title

LORD BOURNE OF ABERYSTWYTH

43

Line 1, after “functions;” insert “to make provision about rights to use upstream
petroleum infrastructure;”

Prepared 7th September 2015