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Energy Bill


Energy Bill
Part 1 — Gas Importation and Storage
Chapter 3 — Storage of carbon dioxide

8

 

(4)   

A direction may be given only if the Secretary of State is satisfied that the

amount of petroleum which exists in its natural condition in the relevant

stratum is so small that it ought to be disregarded for the purposes of that Part.

(5)   

Where a direction has effect, if the Secretary of State ceases to be satisfied as

mentioned in subsection (4) the Secretary of State must give the licence holder

5

a notice revoking the direction and specifying a time for the purposes of

subsection (6).

(6)   

Where a notice is given under subsection (5), the revocation of the direction

takes effect—

(a)   

if an application for a petroleum licence in respect of the relevant

10

stratum is made by the licence holder before the specified time,

immediately before the time the application is determined or

withdrawn, and

(b)   

in any other case, at the specified time.

(7)   

Before giving or revoking a direction, the Secretary of State must consult the

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licence holder.

(8)   

In this section—

“petroleum” means petroleum to which section 3 of the Petroleum Act

1998 applies;

“petroleum licence” means a licence under that section authorising a

20

person to bore for and get petroleum.

Interpretation

15      

Chapter 2: interpretation

In this Chapter—

“controlled place” has the meaning given by section 2(3);

25

“gas” has the meaning given by section 2(3);

“installation” includes any floating structure or device maintained on a

station by whatever means;

“licence”, except where the context otherwise requires, means a licence

under section 3, and “licence holder” is to be construed accordingly.

30

Chapter 3

Storage of carbon dioxide

Activities requiring a licence

16      

Prohibition on unlicensed activities

(1)   

No person may carry on an activity within subsection (2) other than in

35

accordance with a licence.

(2)   

The activities are—

(a)   

the use of a controlled place for the storage of carbon dioxide (with a

view to its permanent disposal, or as an interim measure prior to its

permanent disposal);

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Energy Bill
Part 1 — Gas Importation and Storage
Chapter 3 — Storage of carbon dioxide

9

 

(b)   

the conversion of any natural feature in a controlled place for the

purpose of storing carbon dioxide (with a view to its permanent

disposal, or as an interim measure prior to its permanent disposal);

(c)   

the exploration of a controlled place with a view to, or in connection

with, the carrying on of activities within paragraph (a) or (b);

5

(d)   

the establishment or maintenance in a controlled place of an installation

for the purposes of activities within this subsection.

(3)   

In this section, “controlled place” means a place in, under or over—

(a)   

the territorial sea other than the territorial sea adjacent to Scotland, or

(b)   

waters in a Gas Importation and Storage Zone.

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Licensing

17      

Licences

(1)   

The Secretary of State may grant a licence to a person in respect of one or more

activities within section 16(2).

(2)   

The controlled place in respect of which a licence is granted may be determined

15

by reference to the provisions of a Crown lease which has been or may be

granted.

(3)   

For this purpose a “Crown lease” means a lease of property forming part of the

Crown Estate, or an authorisation to exercise rights forming part of that Estate

(whether by virtue of section 1 or otherwise).

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18      

Requirements relating to grant of licences

(1)   

The Secretary of State may by regulations make provision about the

circumstances in which licences may be granted, including—

(a)   

provision about the requirements to be met by or in relation to an

applicant, and

25

(b)   

provision about any other requirements which must be met for a

licence to be granted.

(2)   

Regulations under subsection (1)(a) may, in particular—

(a)   

prescribe the persons, or classes of persons, by whom an application for

a licence may be made;

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(b)   

prescribe the manner in which an application must be made;

(c)   

prescribe the information which an application must contain and any

documents which must accompany it;

(d)   

require an application to be accompanied by a fee of an amount

prescribed by, or determined in accordance with, the regulations;

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(e)   

require an applicant, before a licence is granted, to make arrangements

(whether by way of trust or otherwise) to provide financial security in

respect of the applicant’s future obligations relating to the activities

under the licence (whether those obligations will or may arise under

the licence or otherwise).

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Energy Bill
Part 1 — Gas Importation and Storage
Chapter 3 — Storage of carbon dioxide

10

 

19      

Terms and conditions

(1)   

A licence may be granted on such terms and subject to such conditions as the

Secretary of State considers appropriate, subject to regulations under section

20.

(2)   

Subject to such regulations, a licence may, in particular, include provision of a

5

kind mentioned in subsections (3) to (7).

(3)   

A licence may include—

(a)   

provision about the circumstances in which financial security (which

may be provided by way of a trust or other arrangements) may be

required in respect of the obligations mentioned in section 18(2)(e) (in

10

addition to any security required by virtue of that section), and the

form of any such security;

(b)   

provision about the circumstances in which financial security may be

released (in whole or in part);

(c)   

provision enabling the Secretary of State to review the licence in

15

specified circumstances or at specified intervals;

(d)   

provision enabling the Secretary of State to modify the licence in

specified circumstances (with or without the consent of the licence

holder);

(e)   

provision preventing or enabling the Secretary of State to prevent a

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licence holder, in specified circumstances, from carrying on an activity

in respect of which the licence was granted;

(f)   

provision about closure of a carbon storage facility;

(g)   

provision about obligations of a licence holder between closure of a

carbon storage facility and termination of the licence;

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(h)   

provision about termination of the licence (which may include

provision about financial arrangements).

(4)   

The provisions of a licence may be expressed by reference to provision made

in a Crown lease and, in particular, may provide—

(a)   

for the commencement of the licence to be conditional upon the

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commencement of a Crown lease which has been or may be granted in

respect of the controlled place to which the licence relates or any part of

that place;

(b)   

for the period of the licence to be determined by reference to the period

of such a Crown lease.

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(5)   

A licence may authorise, in such circumstances and subject to such conditions

as are specified, the transfer of the licence to another person (or the inclusion

of another person as a joint licence holder).

(6)   

The provisions of a licence may include—

(a)   

provision requiring the licence holder to obtain the prior written

40

consent of the Secretary of State or another person for specified acts or

omissions;

(b)   

provision providing that any such consent may be given subject to

conditions.

(7)   

The conditions imposed on a consent by virtue of subsection (6)(b) may include

45

conditions requiring, or otherwise providing for, the modification of the

licence in such manner as the Secretary of State considers appropriate.

(8)   

In this section—

 
 

Energy Bill
Part 1 — Gas Importation and Storage
Chapter 3 — Storage of carbon dioxide

11

 

“carbon storage facility” means a controlled place, or part of a controlled

place, in which carbon dioxide has been stored pursuant to a licence;

“closure”, in relation to a carbon storage facility, means the point at which

carbon dioxide has ceased to be added to the facility and the licence

holder intends, or the Secretary of State directs in accordance with the

5

licence, that the cessation should be permanent;

“Crown lease” has the same meaning as in section 17;

“specified”, in relation to a licence, means specified in, or determined in

accordance with, the licence.

20      

Content of licences: regulations

10

(1)   

The Secretary of State may make regulations about the terms and conditions of

licences.

(2)   

Regulations under subsection (1) may specify that a licence must contain

specified provisions or provisions of a specified description.

Enforcement

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21      

Offence to carry on unlicensed activities

(1)   

It is an offence for a person to carry on an activity within section 16(2) at a

controlled place unless, at the time the activity is carried on, that person—

(a)   

has a licence for the carrying on of the activity at that place, or

(b)   

is carrying on the activity on behalf of a person who has such a licence.

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(2)   

It is an offence for a person to cause or permit another person to commit the

offence in subsection (1).

(3)   

A person guilty of an offence under this section is liable—

(a)   

on summary conviction, to a fine not exceeding £50,000, or

(b)   

on conviction on indictment, to imprisonment for a term not exceeding

25

2 years or to a fine, or both.

(4)   

If the activity constituting the offence falls within section 16(2)(c), or relates to

the establishment or maintenance of an installation for the purpose of an

activity mentioned in that provision, subsection (3) has effect as if—

(a)   

the reference to £50,000 were a reference to the statutory maximum,

30

and

(b)   

the reference to imprisonment were omitted.

22      

Offences relating to licences

(1)   

An offence is committed by a licence holder if—

(a)   

a thing is done for which the licence specifies that the prior consent of

35

the Secretary of State or any other person is required, without that

consent first having been obtained;

(b)   

such a thing is done in circumstances where that consent was obtained

subject to conditions and those conditions have not been satisfied;

(c)   

the licence holder fails to keep records, give a notice or make a return

40

or report, in accordance with the provisions of the licence;

 
 

Energy Bill
Part 1 — Gas Importation and Storage
Chapter 3 — Storage of carbon dioxide

12

 

(d)   

the licence holder breaches any other provision of the licence which is

specified, or of a description specified, in an order made by the

Secretary of State.

(2)   

In proceedings against a person for an offence under subsection (1), it is a

defence for the person to prove that due diligence was exercised to avoid

5

committing the offence.

(3)   

A person guilty of an offence under subsection (1) is liable—

(a)   

on summary conviction, to a fine not exceeding £50,000, or

(b)   

on conviction on indictment, to imprisonment for a term not exceeding

2 years or to a fine, or both.

10

(4)   

If an offence under subsection (1) relates to an activity within section 16(2)(c),

or relates to the establishment or maintenance of an installation for the purpose

of an activity mentioned in that provision, subsection (3) has effect as if—

(a)   

the reference to £50,000 were a reference to the statutory maximum,

and

15

(b)   

the reference to imprisonment were omitted.

(5)   

It is an offence for a person to make a statement which the person knows to be

false, or recklessly to make a statement which is false, in order to obtain—

(a)   

a licence, or

(b)   

the consent of the Secretary of State or any other person for the

20

purposes of any requirement imposed by virtue of section 19(6).

(6)   

It is an offence for a person to fail to disclose information which the person

knows, or ought to know, to be relevant to an application for—

(a)   

a licence, or

(b)   

the consent of the Secretary of State or any other person for the

25

purposes of any requirement imposed by virtue of section 19(6).

(7)   

A person guilty of an offence under subsection (5) or (6) is liable—

(a)   

on summary conviction, to a fine not exceeding the statutory

maximum, or

(b)   

on conviction on indictment, to a fine.

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23      

Secretary of State’s power of direction

(1)   

This section applies if a licence holder fails to comply with any provision of the

licence.

(2)   

The Secretary of State may direct the licence holder to take steps which the

Secretary of State considers necessary or appropriate to comply with the

35

provision within a period specified in the direction.

(3)   

The Secretary of State must consult the licence holder before giving a direction

under subsection (2).

(4)   

If the licence holder fails to comply with a direction under subsection (2), the

Secretary of State may—

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(a)   

comply with the direction on behalf of the licence holder, or

(b)   

make arrangements for another person to do so.

(5)   

A person taking action by virtue of subsection (4) may—

(a)   

do anything which the licence holder could have done, and

 
 

Energy Bill
Part 1 — Gas Importation and Storage
Chapter 3 — Storage of carbon dioxide

13

 

(b)   

recover from the licence holder any reasonable costs incurred in taking

the action.

(6)   

A person (“P”) liable to pay any sum by virtue of subsection (5)(b) must also

pay interest on that sum for the period beginning with the day on which the

person taking action by virtue of subsection (4) notified P of the sum payable

5

and ending with the date of payment.

(7)   

The rate of interest payable in accordance with subsection (6) is a rate

determined by the Secretary of State as comparable with commercial rates.

(8)   

The licence holder must provide a person taking action by virtue of subsection

(4) with such assistance as the Secretary of State may direct.

10

(9)   

The power to give a direction under this section is without prejudice to any

provision made in the licence with regard to the enforcement of any of its

provisions.

24      

Failure to comply with a direction under section 23

(1)   

It is an offence for a person to fail to comply with a direction under section 23,

15

unless the person proves that due diligence was exercised in order to avoid the

failure.

(2)   

A person guilty of an offence under subsection (1) is liable—

(a)   

on summary conviction, to a fine not exceeding £50,000, or

(b)   

on conviction on indictment, to imprisonment for a term not exceeding

20

2 years or to a fine, or both.

25      

Injunctions restraining breaches of section 16(1)

(1)   

Where the Secretary of State considers it necessary or expedient to restrain any

actual or apprehended breach of section 16(1), the Secretary of State may apply

to the court for an injunction or, in Scotland, an interdict.

25

(2)   

An application may be made whether or not the Secretary of State has

exercised or is proposing to exercise any of the other powers under this

Chapter.

(3)   

On an application under subsection (1), the court may grant such an injunction

or interdict as the court thinks appropriate for the purpose of restraining the

30

breach.

(4)   

Rules of court may provide for an injunction or interdict to be issued against a

person whose identity is unknown.

(5)   

In this section “the court” means—

(a)   

the High Court, or

35

(b)   

in Scotland, the Court of Session.

26      

Inspectors

(1)   

The Secretary of State may appoint persons to act as inspectors to assist in

carrying out the functions of the Secretary of State under this Chapter.

(2)   

The Secretary of State may make payments, by way of remuneration or otherwise, to

40

inspectors appointed under this section.

 
 

Energy Bill
Part 1 — Gas Importation and Storage
Chapter 3 — Storage of carbon dioxide

14

 

(3)   

The Secretary of State may make regulations about—

(a)   

the powers and duties of inspectors appointed under this section;

(b)   

the powers and duties of any other person acting on the directions of

the Secretary of State in connection with a function under this Chapter;

(c)   

the facilities and assistance to be accorded to persons mentioned in

5

paragraph (a) or (b).

(4)   

The powers conferred by virtue of subsection (3) may include powers of a kind

specified in section 108(4) of the Environment Act 1995 (c. 25) (powers of entry,

investigation, etc).

(5)   

Any regulations under this section may provide for the creation of offences

10

which are punishable—

(a)   

on summary conviction by a fine not exceeding the statutory maximum

or such lesser amount as is specified in the regulations, and

(b)   

on conviction on indictment by a fine.

27      

Criminal proceedings

15

(1)   

Proceedings for a relevant offence may be taken, and the offence may for all

incidental purposes be treated as having been committed, in any place in the

United Kingdom.

(2)   

Section 3 of the Territorial Waters Jurisdiction Act 1878 (c. 73) (restriction on

prosecutions) does not apply to any proceedings for a relevant offence.

20

(3)   

Proceedings for a relevant offence alleged to have been committed in a

controlled place may not be instituted in England and Wales except—

(a)   

by the Secretary of State or a person authorised by the Secretary of

State, or

(b)   

by or with the consent of the Director of Public Prosecutions.

25

(4)   

Proceedings for a relevant offence alleged to have been committed in a

controlled place may not be instituted in Northern Ireland except—

(a)   

by the Secretary of State or a person authorised by the Secretary of

State, or

(b)   

by or with the consent of the Director of Public Prosecutions for

30

Northern Ireland.

(5)   

In the application of subsection (3) or (4) to an offence created by regulations

under section 26

(a)   

the words “alleged to have been committed in a controlled place” are to

be omitted, and

35

(b)   

the references to a person authorised by the Secretary of State are to be

read as references to an inspector appointed under that section.

(6)   

In this section “relevant offence” means an offence under this Chapter or

created by regulations under section 26.

Registration

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28      

Requirement for public register

(1)   

The Secretary of State must maintain a register containing prescribed

information relating to licences.

 
 

 
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