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[AS AMENDED IN PUBLIC BILL COMMITTEE] |
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Make provision relating to gas importation and storage; to make provision in |
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relation to electricity generated from renewable sources; to make provision |
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about the decommissioning of energy installations and wells; to make |
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provision about the management and disposal of waste produced during the |
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operation of nuclear installations; to make provision relating to petroleum |
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licences; to make provision about third party access to oil and gas |
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infrastructure and modifications of pipelines; to make provision about reports |
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relating to energy matters; to make provision relating to gas meters and |
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electricity meters and provision relating to electricity safety; to make provision |
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about the security of equipment, software and information relating to nuclear |
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matters; and for connected purposes. |
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Be it enacted by the Queen’s most Excellent Majesty, by and with the advice and |
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consent of the Lords Spiritual and Temporal, and Commons, in this present |
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Parliament assembled, and by the authority of the same, as follows:— |
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Gas Importation and Storage |
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Gas Importation and Storage Zones |
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1 | Exploitation of areas outside the territorial sea for gas importation and storage |
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(1) | The rights to which this section applies have effect, by virtue of this section, as |
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rights belonging to Her Majesty. |
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(2) | This section applies to the rights under Part V of the Convention that are |
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exercisable by the United Kingdom in areas outside the territorial sea— |
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(a) | with respect to any of the matters mentioned in subsection (3), or |
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(b) | for any other purposes connected with any of those matters. |
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(a) | the exploitation of those areas for the unloading of gas to installations |
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(b) | the exploitation of those areas for the storing of gas (whether or not |
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with a view to its being recovered), or the recovery of gas so stored; |
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(c) | the exploration of those areas with a view to their exploitation as |
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mentioned in paragraph (a) or (b). |
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(4) | For the purposes of subsection (3), references to gas include any substance |
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which consists wholly or mainly of gas. |
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(5) | Her Majesty may by Order in Council designate an area as an area within |
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which the rights to which this section applies are exercisable (a “Gas |
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Importation and Storage Zone”). |
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“the Convention” means the United Nations Convention on the Law of |
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the Sea 1982 (Cmnd 8941) and any modifications of that Convention |
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agreed after the passing of this Act that have entered into force in |
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relation to the United Kingdom; |
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“gas” means any substance which is gaseous at a temperature of 15![equation: char[degree]](missing.gif) |
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a pressure of 101.325 kPa (1013.25 mb); |
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“installation” includes any floating structure or device maintained on a |
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station by whatever means. |
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Importation and storage of combustible gas |
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Activities requiring a licence |
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2 | Prohibition on unlicensed activities |
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(1) | No person may carry on an activity within subsection (2) except in accordance |
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(a) | the use of a controlled place for the unloading of gas to an installation |
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(b) | the use of a controlled place for the storage of gas; |
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(c) | the conversion of any natural feature in a controlled place for the |
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(d) | the recovery of gas stored in a controlled place; |
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(e) | the exploration of a controlled place with a view to, or in connection |
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with, the carrying on of activities within paragraphs (a) to (d); |
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(f) | the establishment or maintenance in a controlled place of an installation |
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for the purposes of activities within this subsection. |
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“controlled place” means a place in, under or over— |
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(a) | the territorial sea, or |
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(b) | waters in a Gas Importation and Storage Zone (within the |
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meaning of section 1(5)); |
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“gas” means any combustible substance which is gaseous at a |
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temperature of 15 |
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which consists wholly or mainly of— |
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(e) | a substance designated for the purposes of this section by an |
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order made by the Secretary of State, or |
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(f) | a mixture of two or more of the substances mentioned in |
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(1) | The Secretary of State may grant a person a licence in respect of one or more |
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activities within section 2(2). |
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(2) | The controlled place in respect of which a licence is granted may be determined |
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by reference to the provisions of a Crown lease which has been or may be |
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(3) | For this purpose “Crown lease” means a lease of property forming part of the |
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Crown Estate, or an authorisation to exercise rights forming part of that Estate |
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(whether by virtue of section 1 or otherwise). |
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The Secretary of State may by regulations— |
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(a) | prescribe the persons, or classes of persons, by whom an application for |
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(b) | prescribe requirements which must be met by, or in relation to, a person |
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who makes an application; |
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(c) | prescribe the manner in which an application must be made; |
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(d) | prescribe the information which an application must contain and any |
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documents which must accompany it; |
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(e) | require an application to be accompanied by a fee of an amount |
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prescribed by, or determined in accordance with, the regulations. |
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(1) | A licence may be granted on such terms and subject to such conditions as the |
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Secretary of State considers appropriate. |
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(2) | The provisions of a licence may be expressed by reference to provision made |
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in a Crown lease, and, in particular, may provide— |
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(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 |
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respect of the controlled place to which the licence relates or any part of |
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(b) | for the period of the licence to be determined by reference to the period |
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(3) | A licence may authorise, in such circumstances and subject to such conditions |
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as are specified, the transfer of the licence to another person (or the inclusion |
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of another person as a joint licence holder). |
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(4) | The provisions of a licence may include— |
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(a) | provision requiring the licence holder to obtain the prior written |
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consent of the Secretary of State or another person for specified acts or |
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(b) | provisions providing that any such consent may be given subject to |
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(5) | The conditions imposed on a consent by virtue of subsection (4)(b) may include |
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conditions requiring, or otherwise providing for, the modification of the |
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licence in such manner as the Secretary of State considers appropriate. |
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“Crown lease” has the same meaning as in section 3; |
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“specified”, in relation to a licence, means specified in, or determined in |
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accordance with, the licence. |
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(1) | The Secretary of State may make regulations prescribing model clauses for |
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(2) | Subject to subsection (3), the model clauses, as they have effect at the time a |
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licence is granted, are deemed to be incorporated into the licence. |
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(3) | The Secretary of State may decide to exclude or modify one or more of those |
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model clauses in the case of a particular licence. |
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7 | Offence to carry on unlicensed activities |
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(1) | It is an offence for a person to carry on an activity within section 2(2) at a |
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controlled place unless, at the time the activity is carried on, that person— |
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(a) | has a licence for the carrying on of that activity at that place, or |
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(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 an |
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offence under subsection (1). |
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(3) | A person guilty of an offence under this section is liable— |
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(a) | on summary conviction, to a fine not exceeding the statutory |
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(b) | on conviction on indictment, to a fine. |
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8 | Offences relating to licences |
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(1) | An offence is committed by a licence holder if— |
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(a) | a thing is done for which the licence specifies that the prior consent of |
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the Secretary of State or any other person is required, without that |
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consent first having been obtained; |
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(b) | such a thing is done in circumstances where that consent was obtained |
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subject to conditions and those conditions have not been satisfied; |
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(c) | the licence holder fails to keep records, give a notice or make a return |
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or report, in accordance with the provisions of the licence; |
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(d) | the licence holder breaches any other provision of the licence which is |
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specified, or of a description specified, in an order made by the |
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(2) | In proceedings against a person for an offence under subsection (1), it is a |
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defence for the person to prove that due diligence was exercised to avoid |
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(3) | It is an offence for a person to make a statement which the person knows to be |
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false, or recklessly to make a statement which is false, in order to obtain— |
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(b) | the consent of the Secretary of State or any other person for the |
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purposes of any requirement imposed by virtue of section 5(4). |
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(4) | It is an offence for a person to fail to disclose information which the person |
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knows, or ought to know, to be relevant to an application for— |
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(b) | the consent of the Secretary of State or any other person for the |
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purposes of any requirement imposed by virtue of section 5(4). |
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(5) | A person guilty of an offence under this section is liable— |
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(a) | on summary conviction, to a fine not exceeding the statutory |
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(b) | on conviction on indictment, to a fine. |
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9 | Secretary of State’s power of direction |
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(1) | This section applies if a licence holder fails to comply with any provision of the |
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(2) | The Secretary of State may direct the licence holder to take steps which the |
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Secretary of State considers necessary or appropriate to comply with the |
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provision within a period specified in the direction. |
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(3) | The Secretary of State must consult the licence holder before giving a direction |
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(4) | If the licence holder fails to comply with a direction under subsection (2), the |
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(a) | comply with the direction on behalf of the licence holder, or |
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(b) | make arrangements for another person to do so. |
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(5) | A person taking action by virtue of subsection (4) may— |
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(a) | do anything which the licence holder could have done, and |
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(b) | recover from the licence holder any reasonable costs incurred in taking |
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(6) | A person (“P”) liable to pay any sum by virtue of subsection (5)(b) must also |
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pay interest on that sum for the period beginning with the day on which the |
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person taking action by virtue of subsection (4) notified P of the sum payable |
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and ending with the date of payment. |
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(7) | The rate of interest payable in accordance with subsection (6) is a rate |
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determined by the Secretary of State as comparable with commercial rates. |
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(8) | The licence holder must provide a person taking action by virtue of subsection |
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(4) with such assistance as the Secretary of State may direct. |
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(9) | The power to give a direction under this section is without prejudice to any |
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provision made in the licence with regard to the enforcement of any of its |
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10 | Failure to comply with a direction under section 9 |
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(1) | It is an offence for a person to fail to comply with a direction under section 9, |
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unless the person proves that due diligence was exercised in order to avoid the |
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(2) | A person guilty of an offence under subsection (1) is liable— |
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(a) | on summary conviction, to a fine not exceeding the statutory |
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(b) | on conviction on indictment, to a fine. |
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11 | Injunctions restraining breaches of section 2(1) |
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(1) | Where the Secretary of State considers it necessary or expedient to restrain any |
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actual or apprehended breach of section 2(1), the Secretary of State may apply |
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to the court for an injunction or, in Scotland, an interdict. |
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(2) | An application may be made whether or not the Secretary of State has |
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exercised or is proposing to exercise any of the other powers under this |
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(3) | On an application under subsection (1), the court may grant such an injunction |
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or interdict as the court thinks appropriate for the purpose of restraining the |
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(4) | Rules of court may provide for an injunction or interdict to be issued against a |
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person whose identity is unknown. |
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(5) | In this section “the court” means— |
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(b) | in Scotland, the Court of Session. |
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(1) | The Secretary of State may appoint persons to act as inspectors to assist in |
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carrying out the functions of the Secretary of State under this Chapter. |
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(2) | The Secretary of State may make payments, by way of remuneration or |
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otherwise, to inspectors appointed under this section. |
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(3) | The Secretary of State may make regulations about— |
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(a) | the powers and duties of inspectors appointed under this section; |
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(b) | the powers and duties of any other person acting on the directions of |
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the Secretary of State in connection with a function under this Chapter; |
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(c) | the facilities and assistance to be accorded to persons mentioned in |
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(4) | The powers conferred by virtue of subsection (3) may include powers of a kind |
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specified in section 108(4) of the Environment Act 1995 (c. 25) (powers of entry, |
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(5) | Any regulations under this section may provide for the creation of offences |
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(a) | on summary conviction by a fine not exceeding the statutory maximum |
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or such lesser amount as is specified in the regulations, and |
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(b) | on conviction on indictment by a fine. |
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(1) | Proceedings for a relevant offence may be taken, and the offence may for all |
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incidental purposes be treated as having been committed, in any place in the |
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(2) | Section 3 of the Territorial Waters Jurisdiction Act 1878 (restriction on |
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prosecutions) does not apply to any proceedings for a relevant offence. |
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(3) | Proceedings for a relevant offence alleged to have been committed in a |
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controlled place may not be instituted in England and Wales except— |
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(a) | by the Secretary of State or a person authorised by the Secretary of |
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(b) | by or with the consent of the Director of Public Prosecutions. |
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(4) | Proceedings for a relevant offence alleged to have been committed in a |
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controlled place may not be instituted in Northern Ireland except— |
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(a) | by the Secretary of State or a person authorised by the Secretary of |
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(b) | by or with the consent of the Director of Public Prosecutions for |
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(5) | In the application of subsection (3) or (4) to an offence created by regulations |
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(a) | the words “alleged to have been committed in a controlled place” are to |
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(b) | the references to a person authorised by the Secretary of State are to be |
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read as references to an inspector appointed under that section. |
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(6) | In this section “relevant offence” means an offence under this Chapter or |
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created by regulations under section 12. |
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14 | Interaction with the petroleum licensing requirements |
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(1) | This section applies where there is a licence for the recovery of gas stored in a |
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(2) | The Secretary of State may give a direction in respect of the place or any part |
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of it (“the relevant stratum”). |
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