Energy Bill [HL]

House of Commons

Session 2003 - 04
Internet Publications
Other Bills before Parliament

Energy Bill [HL]

Energy Bill [HL]
Part 2 — Sustainability and Renewable Energy Sources
Chapter 3 — Decommissioning of offshore installations
85

(b)
it is not connected with dry land by a permanent structure providing
access at all times for all purposes.
(5)
The purposes referred to in subsection (3)(a) include, in particular—
(a)
the transmission, distribution and supply of electricity generated using
water or winds; and
5
(b)
the doing of anything (whether by way of investigations, trials or
feasibility studies or otherwise) with a view to ascertaining whether the
generation of electricity in that manner is, in a particular case,
practicable or commercially viable, or both.
(6)
Provision made by or under this Chapter in relation to places outside the
10
United Kingdom—
(a)
so far as it applies to individuals, applies to them whether or not they
are British citizens; and
(b)
so far as it applies to bodies corporate, applies to them whether or not
they are incorporated under the law of a part of the United Kingdom.
15
Chapter 3
Decommissioning of offshore installations
Decommissioning programmes
106
Requirement to prepare decommissioning programmes
(1)
This section applies where—
20
(a)
there is a proposal by a person to construct a relevant object in waters
regulated under this Chapter, or to extend a relevant object in such
waters;
(b)
there is a proposal by a person to operate or to use a relevant object in
such waters on the completion of its construction, or of any extension
25
of it in such waters; or
(c)
a person is constructing, extending, operating or using a relevant object
in such waters or has begun in such waters to decommission such an
object.
(2)
The Secretary of State may by notice require that person to submit to him a
30
programme for decommissioning the relevant object (a “decommissioning
programme”).
(3)
The Secretary of State may require a person to submit a decommissioning
programme in respect of proposals made by that person only if the Secretary
of State is satisfied that at least one of the statutory consents required for
35
enabling that person to give effect to those proposals—
(a)
has been given; or
(b)
has been applied for and is likely to be given;

but for this purpose it is immaterial that a statutory consent that has been or
may be given will have no effect before a particular time or unless particular
40
conditions are satisfied.
(4)
Where there is more than one person to whom a notice under this section may
be given—
(a)
it may be given to any one or more of them; and

Energy Bill [HL]
Part 2 — Sustainability and Renewable Energy Sources
Chapter 3 — Decommissioning of offshore installations
86

(b)
where it is given to more than one of them, the requirement to submit
a programme must be satisfied by all those persons acting jointly.
(5)
Before giving a notice under this section in relation to a relevant object which
is to be or is, wholly or partly—
(a)
in an area of Scottish waters; or
5
(b)
in an area of waters in a Scottish part of a Renewable Energy Zone,

the Secretary of State must consult the Scottish Ministers.
(6)
A notice under this section must either—
(a)
specify the date by which the decommissioning programme is to be
submitted; or
10
(b)
require it to be submitted on or before such date as the Secretary of State
may direct.
(7)
A notice under this section may require the recipient of the notice to carry out
the consultations specified in the notice before submitting the programme
required of him.
15
(8)
A decommissioning programme—
(a)
must set out measures to be taken for decommissioning the relevant
object;
(b)
must contain an estimate of the expenditure likely to be incurred in
carrying out those measures;
20
(c)
must make provision for the determination of the times at which, or the
periods within which, those measures will have to be taken;
(d)
if it proposes that the relevant object will be wholly or partly removed
from a place in waters regulated under this Chapter, must include
provision about restoring that place to the condition that it was in prior
25
to the construction of the object; and
(e)
if it proposes that the relevant object will be left in position at a place in
waters regulated under this Chapter or will not be wholly removed
from a place in such waters, must include provision about whatever
continuing monitoring and maintenance of the object will be necessary.
30
(9)
A notice under this section may require the recipient of the notice to submit any
of the following with the decommissioning programme—
(a)
such information and documents relating to the place where the
relevant object is or is to be situated as may be specified in the notice;
(b)
such specifications relating to the relevant object as may be specified in
35
the notice;
(c)
such information and documents relating to the financial affairs of the
recipient as may be specified in the notice; and
(d)
details of the security (if any) that the recipient proposes to provide in
relation to the carrying out of the decommissioning programme and for
40
his compliance with any conditions of its approval.
(10)
In this Chapter—

“relevant object” means the whole or any part of—
(a)
a renewable energy installation; or
(b)
an electric line that is or has been a related line;
45

“waters regulated under this Chapter” means—

Energy Bill [HL]
Part 2 — Sustainability and Renewable Energy Sources
Chapter 3 — Decommissioning of offshore installations
87

(a)
waters in or adjacent to Great Britain which are between the
mean low water mark and the seaward limits of the territorial
sea; and
(b)
waters in a Renewable Energy Zone.
(11)
In this section—
5

“related line” means an electric line which is a line for the conveyance of
electricity to or from a renewable energy installation but is not an
electricity interconnector (within the meaning of Part 1 of the 1989 Act);
and

“statutory consent” means a consent, licence or approval required by or
10
under any enactment.
107
Approval of decommissioning programmes
(1)
The Secretary of State may either approve or reject a programme submitted to
him under section 106.
(2)
Before approving or rejecting a decommissioning programme relating to a
15
relevant object which is to be or is, wholly or partly—
(a)
in an area of Scottish waters, or
(b)
in an area of waters in a Scottish part of a Renewable Energy Zone,

the Secretary of State must consult the Scottish Ministers.
(3)
If the Secretary of State approves a programme, he may do so—
20
(a)
with or without modifications; and
(b)
either subject to conditions or unconditionally.
(4)
His power to approve it subject to conditions includes, in particular, power to
approve it subject to a condition that the person who submitted the
programme—
25
(a)
provides such security in relation to the carrying out of the programme,
and for his compliance with the conditions (if any) of its approval, as
may be specified by the Secretary of State; and
(b)
provides that security at such time, and in accordance with such
requirements, as may be specified by the Secretary of State.
30
(5)
Before approving a programme with modifications or subject to conditions, the
Secretary of State must give the person who submitted it an opportunity of
making representations about the proposed modifications or conditions.
(6)
The power of the Secretary of State to approve a programme subject to
conditions includes power, where more than one person submitted it, to
35
impose different conditions in relation to different persons.
(7)
If he rejects a programme, the Secretary of State—
(a)
must inform the person who submitted it of his reasons for doing so;
and
(b)
may exercise his power under section 106 to require the submission of
40
a new one.
(8)
The Secretary of State must act without unreasonable delay in reaching a
decision as to whether to approve or reject a programme.

Energy Bill [HL]
Part 2 — Sustainability and Renewable Energy Sources
Chapter 3 — Decommissioning of offshore installations
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108
Failure to submit or rejection of decommissioning programmes
(1)
Where—
(a)
a notice given under section 106 is not complied with, or
(b)
the Secretary of State rejects a programme submitted to him,

the Secretary of State may himself prepare a decommissioning programme in
5
relation to the relevant object in question.
(2)
Before himself preparing a decommissioning programme relating to a relevant
object which is to be or is, wholly or partly—
(a)
in an area of Scottish waters, or
(b)
in an area of waters in a Scottish part of a Renewable Energy Zone,
10

the Secretary of State must consult the Scottish Ministers.
(3)
Where the Secretary of State prepares a decommissioning programme under
this section—
(a)
he must give notice informing the recipient of the notice given under
section 106 that he has done so; and
15
(b)
this Chapter shall have effect subsequently as if the Secretary of State’s
programme were a programme submitted to him by the person
informed and had been approved by the Secretary of State subject to the
conditions specified by the Secretary of State.
(4)
Where the Secretary of State informs a person under subsection (3) that he has
20
prepared his own decommissioning programme, he may by notice to that
person require him—
(a)
to provide such security in relation to the carrying out of the
programme, and for his compliance with its conditions (if any), as may
be specified by the Secretary of State; and
25
(b)
to provide it at such time, and in accordance with such requirements,
as may be specified by the Secretary of State;

and a requirement under this subsection has effect as if it were a condition of
the deemed approval of the programme.
(5)
The Secretary of State may by notice require the recipient of a notice under
30
section 106 to provide him with such information and documents as he may
require for the purpose of exercising his powers under subsections (1) and (4).
(6)
Information and documents required to be provided under subsection (5) must
be provided within such period as may be specified in the notice under that
subsection.
35
(7)
A person who fails, without reasonable excuse, to comply with a notice under
subsection (5) is guilty of an offence.
(8)
The power of the Secretary of State to impose requirements under this section
includes power, where there is more than one person on whom he may impose
them, to impose different requirements in relation to different persons.
40
(9)
Where, having given a notice under section 106, the Secretary of State prepares
his own decommissioning programme, he may recover expenditure incurred
by him in, or in connection with, the exercise of his powers under this section
from the recipient of the notice.
(10)
A person liable to pay a sum to the Secretary of State by virtue of subsection (9)
45
must also pay interest on that sum for the period which—

Energy Bill [HL]
Part 2 — Sustainability and Renewable Energy Sources
Chapter 3 — Decommissioning of offshore installations
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(a)
begins with the day on which the Secretary of State notified him of the
sum payable; and
(b)
ends with the date of payment.
(11)
The rate of interest shall be a rate determined by the Secretary of State to be
comparable with commercial rates.
5
109
Reviews and revisions of decommissioning programmes
(1)
The Secretary of State must, from time to time, conduct such reviews of a
decommissioning programme approved by him as he considers appropriate.
(2)
A proposal—
(a)
to modify a decommissioning programme approved by the Secretary of
10
State, or
(b)
to modify a condition to which such a programme is subject,

may be made by the Secretary of State, or by the person who submitted the
programme or (if there is more than one of them) by all of them acting jointly.
(3)
A proposal—
15
(a)
to relieve a person of his duty under section 110(1) in relation to a
decommissioning programme approved by the Secretary of State, or
(b)
as respects such a programme, to impose that duty upon a person not
previously subject to it (whether in addition to or in substitution for
another person),
20

may be made by the Secretary of State or by the person for the time being
subject to that duty or (if there is more than one person subject to that duty) by
any one or more of them.
(4)
A proposal under subsection (2) or (3) may be made only by way of notice
given—
25
(a)
if the proposal is the Secretary of State’s, to every person whose duty
under section 110(1) in relation to the programme would be affected or
relieved under the proposal or who would become subject to such a
duty; and
(b)
in any other case, to the Secretary of State.
30
(5)
An opportunity of making representations to the Secretary of State about a
proposal of his under this section must be given by him to every person to
whom notice of the proposal is required to have been given.
(6)
It is to be for the Secretary of State, after considering any representations made
to him, to determine whether or not effect should be given to a proposal of his,
35
or of any other person, under this section.
(7)
Before making a determination under subsection (6) with respect to a proposal
in relation to a decommissioning programme relating to a relevant object
which is to be or is, wholly or partly—
(a)
in an area of Scottish waters, or
40
(b)
in an area of waters in a Scottish part of a Renewable Energy Zone,

the Secretary of State must consult the Scottish Ministers.
(8)
Where the Secretary of State makes a determination under subsection (6), he
must give notice of his determination, and of his reasons for it, to—

Energy Bill [HL]
Part 2 — Sustainability and Renewable Energy Sources
Chapter 3 — Decommissioning of offshore installations
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(a)
every person who, before the determination, had a duty under section
110(1) in relation to the programme; and
(b)
every person who will become subject to such a duty as a result of the
determination.
(9)
Where the Secretary of State gives notice under subsection (8) in respect of a
5
proposal, this Chapter shall have effect after the giving of that notice—
(a)
in the case of a proposal under subsection (2), as if the programme in
question had been approved subject to the modifications specified in
the determination; and
(b)
in the case of a proposal under subsection (3), as if that programme had
10
been submitted to the Secretary of State by the person or persons so
specified.
(10)
Where the Secretary of State gives notice under subsection (8) to a person that
he is to become subject to a duty under section 110(1) in relation to a
programme, the Secretary of State may by notice to that person require him—
15
(a)
to provide such security in relation to the carrying out of the
programme, and for his compliance with any conditions of its
approval, as may be specified by the Secretary of State; and
(b)
to provide it at such time, and in accordance with such requirements,
as may be specified by the Secretary of State;
20

and a requirement under this subsection has effect as if it were a condition of
the approval of the programme.
Implementation of decommissioning programmes
110
Carrying out of decommissioning programmes
(1)
Where a decommissioning programme is approved by the Secretary of State, it
25
shall be the duty of the person who submitted the programme to secure—
(a)
that it is carried out in every respect; and
(b)
that all the conditions to which the approval is subject are complied
with.
(2)
Where a relevant object is subject to a decommissioning programme approved
30
by the Secretary of State, it is an offence for a person to take any measures for
decommissioning that object unless he does so—
(a)
in accordance with the programme; or
(b)
with the agreement of the Secretary of State.
111
Default in carrying out decommissioning programmes
35
(1)
Where—
(a)
a decommissioning programme approved by the Secretary of State is
not carried out in a particular respect, or
(b)
a condition to which the approval is subject is contravened,

the Secretary of State may, by notice, require a person subject to the duty under
40
section 110(1) in relation to the programme to take such remedial action as may
be specified in the notice.
(2)
Remedial action required by a notice under this section must be taken within
such period as may be specified in the notice.

Energy Bill [HL]
Part 2 — Sustainability and Renewable Energy Sources
Chapter 3 — Decommissioning of offshore installations
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(3)
A person who fails to comply with a notice given to him under this section is
guilty of an offence.
(4)
In proceedings against a person for an offence under this section it is a defence
for him to show that he exercised due diligence to avoid the contravention in
question.
5
(5)
If a notice under this section is not complied with, the Secretary of State may—
(a)
himself secure the carrying out of the remedial action required by the
notice; and
(b)
recover any expenditure incurred by him in doing so from the person
to whom the notice was given.
10
(6)
A person liable to pay a sum to the Secretary of State by virtue of subsection (5)
must also pay interest on that sum for the period which—
(a)
begins with the day on which the Secretary of State notified him of the
sum payable; and
(b)
ends with the date of payment.
15
(7)
The rate of interest shall be a rate determined by the Secretary of State to be
comparable with commercial rates.
Decommissioning regulations
112
Regulations about decommissioning
(1)
The Secretary of State may make regulations relating to the decommissioning
20
of relevant objects in waters regulated under this Chapter.
(2)
The provision that may be contained in regulations under this section includes,
in particular—
(a)
provision prescribing standards in respect of decommissioning;
(b)
provision prescribing standards and safety requirements in respect of
25
anything left in place where a relevant object is not wholly removed;
(c)
provision about the security that a person may be required to provide
under this Chapter;
(d)
provision for the prevention of pollution;
(e)
provision for inspections, including provision as to the payment of the
30
costs of inspections.
(3)
Regulations under this section may include provision making it an offence to
contravene provisions of the regulations.
(4)
Where the regulations under this section create an offence, they must make
provision as to the mode of trial and punishment of offenders; but there is no
35
power for regulations under this section—
(a)
to impose a penalty of imprisonment on summary conviction, or to
impose a maximum fine, on summary conviction, of more than the
statutory maximum; or
(b)
to impose a maximum term of imprisonment, on conviction on
40
indictment, of more than two years.
(5)
Before making regulations under this section, the Secretary of State must
consult—