Energy Bill (HL Bill 62)

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69 Short title and extent

(1) This Act may be cited as the Energy Act 2016.

(2) An amendment or repeal made by this Act has the same extent as the provision
to which it relates.

(3) 5Subject to subsection (2), this Act extends to the whole of the United Kingdom.

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Section 2

Schedule Transfer of functions to the OGA

Part 1 Primary legislation

5Petroleum Act 1998

1 The Petroleum Act 1998 is amended as follows.

2 In section 9A(2) (principal objective and the strategy), for “Secretary of State”
substitute “OGA”.

3 In section 9B (exercise of certain functions)—

(a) 10for “Secretary of State” (including in the heading) substitute “OGA”,
and

(b) after paragraph (c) insert—

(ca) exercising functions under Part 2 of the Energy Act
2016,”.

4 15Omit section 9D.

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

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

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

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

6 (1) 20Section 9F (producing and revising a strategy) is amended as follows.

(2) Omit subsection (1).

(3) For subsection (2) substitute—

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

(a) produce a new strategy, or

(b) 25revise a current strategy,

whenever the OGA thinks appropriate.”

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

(5) Omit subsection (4).

7 (1) Section 9G (procedure for producing and revising a strategy) is amended as
30follows.

(2) In subsection (1)—

(a) omit paragraph (a), and

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

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(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
5send 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.

(3B) 10The 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) In subsection (4), for “The Secretary of State” substitute “Where a copy of the
15draft 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”.

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

9 20In section 15 (authorisations), for “Secretary of State” (in each place)
substitute “OGA”.

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

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

(2) 25In 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) In subsection (3)—

(a) 30for “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) In subsection (8)—

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

(b) for “he” substitute “it”.

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

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

(3) 40In subsection (5), for “Secretary of State” substitute “OGA”.

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(4) In subsection (6)—

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

(b) for “he” substitute “it”.

(5) In subsection (7)—

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

(b) 10for “he” substitute “it”.

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

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

(2) In subsection (1)—

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

(b) 15for “himself” substitute “itself”.

(3) In subsection (2)—

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

(b) for “him” substitute “it”.

(4) In subsection (4)—

(a) 20for “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) In subsection (7)—

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

(b) for “he” substitute “it”.

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

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

(2) 30In 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) In subsection (6), for “Secretary of State” substitute “OGA”.

(5) 35In 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”.

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

(2) 40In subsection (1)—

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

(b) for “him” substitute “it”.

(3) In subsection (2)—

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

(b) 5for “he is required to do so” substitute “the disclosure is required”,
and

(c) omit “on him”.

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

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

(3) 10In 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) In subsection (4)—

(a) 15for “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) for “he” (in each place) substitute “it”.

(7) 20In 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) In subsection (8), for “Secretary of State” (in both places) substitute “OGA”.

(10) 25In subsection (9)—

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

(b) for “he” substitute “it”.

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

(2) 30In 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”.

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

(2) 35For 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
time.”

(3) 40In subsection (2)(a)(ii), for “Secretary of State” substitute “OGA”.

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

(5) 5In 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”.

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

(1) 10Before making any order or regulations under this Part of this Act,
the Secretary of State must consult—

(a) the OGA, and

(b) in the case of regulations, such organisations in the United
Kingdom as the Secretary of State considers are
15representative of persons who will be affected by the
regulations.”

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

  • ““heard” means—

    (a)

    20in 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)

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

22 25In section 45A (abandoned wells), for “Secretary of State” (in each place)
substitute “OGA”.

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

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

(2) 30In subsection (1)—

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

(b) for “him” substitute “it”.

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

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

25 35In section 48 (interpretation), after subsection (1) insert—

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

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

(2) Omit paragraph 1(2).

(3) In paragraph 2—

(a) 40for “Secretary of State” (in each place) substitute “OGA”, and

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

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(4) In paragraph 3—

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

(b) for “his” substitute “its”, and

(c) for “he” substitute “it”.

27 (1) 5Paragraph 4 is amended as follows.

(2) In sub-paragraph (1)—

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

(b) for “his” substitute “its”, and

(c) for “him” substitute “it”.

(3) 10In 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) for “Secretary of State” substitute “OGA”,

(b) 15for “his” substitute “its”, and

(c) for “he” substitute “it”.

28 (1) Paragraph 5 is amended as follows.

(2) In sub-paragraph (1)—

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

(b) 20for “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) for “his opinion, he” substitute “its opinion, it”.

29 25In paragraph 6, for “Secretary of State” (in both places) substitute “OGA”.

30 In paragraph 7—

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

(b) for “he” substitute “it”.

31 (1) Paragraph 8 is amended as follows.

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

(b) 35for “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”.

32 (1) Paragraph 9 is amended as follows.

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

(3) 40In sub-paragraph (2), for “Secretary of State” (in each place) substitute
“OGA”.

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(4) For sub-paragraph (3) substitute—

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

33 In paragraph 10—

(a) 5for “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 Act 2004

34 (1) Section 188 of the Energy Act 2004 (power to impose charges to fund energy
10functions) 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
15Chapter 3 of Part 1 of the Energy Act 2008 is required”.

Energy Act 2008

35 The Energy Act 2008 is amended as follows.

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

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

(2) 20The existing provision becomes subsection (1).

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

(4) After that subsection insert—

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

38 25In section 6 (terms and conditions), for “Secretary of State” (in each place)
substitute “OGA”.

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

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

(3) After that subsection insert—

(4) 30Before making any regulations under this section, the Secretary of
State must consult the OGA.”

40 (1) Section 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) 35In subsection (4)(b), for “Secretary of State” substitute “OGA”.

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

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

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

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

(3) 5Omit subsection (2).

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

(5) After subsection (5) insert—

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

44 10In section 14(5) (proceedings for offence created by regulations under
section 13), omit paragraph (b) and the word “and” immediately before it.

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

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

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

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

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

(2A) 20Where 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),

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

(c) 25subsection (2)(d) does not apply.”

49 In 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) 30the Secretary of State must consult the OGA before making
the regulations.”

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

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

(2) 35For subsections (1) and (2) substitute—

(1) The 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) 40the Welsh Ministers, and

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(d) the 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) 5the Scottish Ministers,

(b) the 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”.

(4) 10In 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
(3)(b) as a reference to the Secretary of State)”.

(5) 15Omit subsection (7).

52 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,”.

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

(8) 20The 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.”

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

(3A) 25Where 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
the regulations.”

55 30In 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.”

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

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

Energy Act 2011

57 The Energy Act 2011 is amended as follows.

58 In section 82 (acquisition of rights to use upstream petroleum
40infrastructure), for “Secretary of State” (in each place) substitute “OGA”.

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