Energy Bill

House of Commons

Session 2007 - 08
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Energy Bill

Energy Bill
Schedule 3 — Petroleum licences: amendments to model clauses
Part 3 — Petroleum Licensing (Exploration and Production) (Seaward and Landward Areas) Regulations 2004
125

(b)
states that, if the Licensee fails to do so, the Licensee will be
treated as having supplied under paragraph (2) the name and
address specified by the Minister in the notice.”
      (3)
In clause 16 (abandonment and plugging of wells)—
(a)
in paragraph (2) for “The” substitute “Subject to paragraph (5B), the”,
5
(b)
after paragraph (5) insert—
“(5A)
The Minister may at any time give the Licensee a notice
requiring a well drilled pursuant to this licence to be plugged
and abandoned in accordance with paragraph (5) within the
period specified in the notice (but this paragraph is subject to
10
paragraphs (5C) and (5D)).
(5B)
The Licensee shall comply with any notice under paragraph
(5A).
(5C)
A notice under paragraph (5A) may not be given less than
one month before the expiry or determination of the
15
Licensee’s rights under this licence in relation to the area, or
the part of the area, in which the well is drilled.
(5D)
A notice under paragraph (5A) may be given only in relation
to a well from which the Licensee has not extracted any
petroleum within the period of one month ending with the
20
day on which the notice is given.”, and
(c)
in paragraph (6) after “Subject to paragraphs” insert “(5A) to (5D),”.
      (4)
In clause 38(4) (power of revocation: change of control) after “when this
licence was granted” insert “(or, if there has been an assignment or
assignation of rights conferred by this licence, when those rights were
25
assigned to the Licensee)”.
      (5)
After clause 38 (power of revocation) insert—
“38A
Power of partial revocation
(1)
This clause applies in a case where two or more persons are the
Licensee and—
30
(a)
an event mentioned in clause 38(2)(c), (d), (e), (ee) or (g)
occurs in relation to one of those persons, or
(b)
the conditions specified in clause 38(3) are satisfied in
relation to one of those persons.
(2)
Where this clause applies, the Minister may exercise the power of
35
revocation in clause 38 to revoke the licence in so far as it applies to
the person mentioned in paragraph (1)(a) or (b).
(3)
If the Minister exercises the power in paragraph (2), the rights
granted to the person under this licence cease, but without prejudice
to any obligation or liability incurred by the person or imposed
40
under the terms and conditions of this licence.
(4)
Where this licence is revoked in relation to one person under this
clause, it continues to have effect in respect of the other person who
constitutes, or persons who together constitute, the Licensee and in
relation to whom it is not revoked.”
45

Energy Bill
Schedule 3 — Petroleum licences: amendments to model clauses
Part 3 — Petroleum Licensing (Exploration and Production) (Seaward and Landward Areas) Regulations 2004
126

18    (1)
Schedule 3 (frontier areas: production licences with break clause) is
amended as follows.
      (2)
After clause 10 (areas surrendered) insert—
“10A
Provision of contact details to Minister
(1)
A notice, direction or other document authorised or required (in
5
whatever terms) to be given to the Licensee by virtue of this licence
is treated as given to the Licensee if it is given to the person specified
by the Licensee under paragraph (2) at the address so specified.
(2)
The Licensee must supply the Minister with the name and address of
a person to whom notices, directions and other documents are to be
10
given.
(3)
The Licensee must ensure that, where there is a change in the person
to whom, or the address to which, information should be sent in
accordance with paragraph (2), the Minister is notified of the change
as soon as is reasonably practicable.
15
(4)
If the Licensee fails to comply with paragraph (2) the Minister may
give the Licensee a notice which—
(a)
requires the Licensee to comply with paragraph (2) within
the period of one month beginning with the date of the
notice, and
20
(b)
states that, if the Licensee fails to do so, the Licensee will be
treated as having supplied under paragraph (2) the name and
address specified by the Minister in the notice.”
      (3)
In clause 17 (abandonment and plugging of wells)—
(a)
in paragraph (2) for “The” substitute “Subject to paragraph (5B), the”,
25
(b)
after paragraph (5) insert—
“(5A)
The Minister may at any time give the Licensee a notice
requiring a well drilled pursuant to this licence to be plugged
and abandoned in accordance with paragraph (5) within the
period specified in the notice (but this paragraph is subject to
30
paragraphs (5C) and (5D)).
(5B)
The Licensee shall comply with any notice under paragraph
(5A).
(5C)
A notice under paragraph (5A) may not be given less than
one month before the expiry or determination of the
35
Licensee’s rights under this licence in relation to the area, or
the part of the area, in which the well is drilled.
(5D)
A notice under paragraph (5A) may be given only in relation
to a well from which the Licensee has not extracted any
petroleum within the period of one month ending with the
40
day on which the notice is given.”, and
(c)
in paragraph (6) after “Subject to paragraphs” insert “(5A) to (5D),”.
      (4)
In clause 39(4) (power of revocation: change of control) after “when this
licence was granted” insert “(or, if there has been an assignment or
assignation of rights conferred by this licence, when those rights were
45
assigned to the Licensee)”.

Energy Bill
Schedule 3 — Petroleum licences: amendments to model clauses
Part 3 — Petroleum Licensing (Exploration and Production) (Seaward and Landward Areas) Regulations 2004
127

      (5)
After clause 39 (power of revocation) insert—
“39A
Power of partial revocation
(1)
This clause applies in a case where two or more persons are the
Licensee and—
(a)
an event mentioned in clause 39(2)(c), (d), (e), (ee) or (g)
5
occurs in relation to one of those persons, or
(b)
the conditions specified in clause 39(3) are satisfied in
relation to one of those persons.
(2)
Where this clause applies, the Minister may exercise the power of
revocation in clause 39 to revoke the licence in so far as it applies to
10
the person mentioned in paragraph (1)(a) or (b).
(3)
If the Minister exercises the power in paragraph (2), the rights
granted to the person under this licence cease, but without prejudice
to any obligation or liability incurred by the person or imposed
under the terms and conditions of this licence.
15
(4)
Where this licence is revoked in relation to one person under this
clause, it continues to have effect in respect of the other person who
constitutes, or persons who together constitute, the Licensee and in
relation to whom it is not revoked.”
19    (1)
Schedule 4 (production licences for areas other than frontier areas) is
20
amended as follows.
      (2)
After clause 8 (areas surrendered) insert—
“8A
Provision of contact details to Minister
(1)
A notice, direction or other document authorised or required (in
whatever terms) to be given to the Licensee by virtue of this licence
25
is treated as given to the Licensee if it is given to the person specified
by the Licensee under paragraph (2) at the address so specified.
(2)
The Licensee must supply the Minister with the name and address of
a person to whom notices, directions and other documents are to be
given.
30
(3)
The Licensee must ensure that, where there is a change in the person
to whom, or the address to which, information should be sent in
accordance with paragraph (2), the Minister is notified of the change
as soon as is reasonably practicable.
(4)
If the Licensee fails to comply with paragraph (2) the Minister may
35
give the Licensee a notice which—
(a)
requires the Licensee to comply with paragraph (2) within
the period of one month beginning with the date of the
notice, and
(b)
states that, if the Licensee fails to do so, the Licensee will be
40
treated as having supplied under paragraph (2) the name and
address specified by the Minister in the notice.”
      (3)
In clause 15 (abandonment and plugging of wells)—
(a)
in paragraph (2) for “The” substitute “Subject to paragraph (5B), the”,

Energy Bill
Schedule 3 — Petroleum licences: amendments to model clauses
Part 3 — Petroleum Licensing (Exploration and Production) (Seaward and Landward Areas) Regulations 2004
128

(b)
after paragraph (5) insert—
“(5A)
The Minister may at any time give the Licensee a notice
requiring a well drilled pursuant to this licence to be plugged
and abandoned in accordance with paragraph (5) within the
period specified in the notice (but this paragraph is subject to
5
paragraphs (5C) and (5D)).
(5B)
The Licensee shall comply with any notice under paragraph
(5A).
(5C)
A notice under paragraph (5A) may not be given less than
one month before the expiry or determination of the
10
Licensee’s rights under this licence in relation to the area or
the part of the area in which the well is drilled.
(5D)
A notice under paragraph (5A) may be given only in relation
to a well from which the Licensee has not extracted any
petroleum within the period of one month ending with the
15
day on which the notice is given.”, and
(c)
in paragraph (6) after “Subject to paragraphs” insert “(5A) to (5D),”.
      (4)
In clause 37(4) (power of revocation: change of control) after “when this
licence was granted” insert “(or, if there has been an assignment or
assignation of rights conferred by this licence, when those rights were
20
assigned to the Licensee)”.
      (5)
After clause 37 (power of revocation) insert—
“37A
Power of partial revocation
(1)
This clause applies in a case where two or more persons are the
Licensee and—
25
(a)
an event mentioned in clause 37(2)(c), (d), (e), (ee) or (g)
occurs in relation to one of those persons, or
(b)
the conditions specified in clause 37(3) are satisfied in
relation to one of those persons.
(2)
Where this clause applies, the Minister may exercise the power of
30
revocation in clause 37 to revoke the licence in so far as it applies to
the person mentioned in paragraph (1)(a) or (b).
(3)
If the Minister exercises the power in paragraph (2), the rights
granted to the person under this licence cease, but without prejudice
to any obligation or liability incurred by the person or imposed
35
under the terms and conditions of this licence.
(4)
Where this licence is revoked in relation to one person under this
clause, it continues to have effect in respect of the other person who
constitutes, or persons who together constitute, the Licensee and in
relation to whom it is not revoked.”
40
20    (1)
Schedule 6 (exploration and development licences) is amended as follows.
      (2)
After clause 8 (consequences of determination or surrender by licensee)

Energy Bill
Schedule 3 — Petroleum licences: amendments to model clauses
Part 3 — Petroleum Licensing (Exploration and Production) (Seaward and Landward Areas) Regulations 2004
129

insert—
“8A
Provision of contact details to Minister
(1)
A notice, direction or other document authorised or required (in
whatever terms) to be given to the Licensee by virtue of this licence
is treated as given to the Licensee if it is given to the person specified
5
by the Licensee under paragraph (2) at the address so specified.
(2)
The Licensee must supply the Minister with the name and address of
a person to whom notices, directions and other documents are to be
given.
(3)
The Licensee must ensure that, where there is a change in the person
10
to whom, or the address to which, information should be sent in
accordance with paragraph (2), the Minister is notified of the change
as soon as is reasonably practicable.
(4)
If the Licensee fails to comply with paragraph (2) the Minister may
give the Licensee a notice which—
15
(a)
requires the Licensee to comply with paragraph (2) within
the period of one month beginning with the date of the
notice, and
(b)
states that, if the Licensee fails to do so, the Licensee will be
treated as having supplied under paragraph (2) the name and
20
address specified by the Minister in the notice.”
      (3)
In clause 15 (abandonment and plugging of wells)—
(a)
in paragraph (2) for “The” substitute “Subject to paragraph (5B), the”,
(b)
after paragraph (5) insert—
“(5A)
The Minister may at any time give the Licensee a notice
25
requiring a well drilled pursuant to this licence to be plugged
and abandoned in accordance with paragraph (5) within the
period specified in the notice (but this paragraph is subject to
paragraphs (5C) and (5D)).
(5B)
The Licensee shall comply with any notice under paragraph
30
(5A).
(5C)
A notice under paragraph (5A) may not be given less than
one month before the expiry or determination of the
Licensee’s rights under this licence in relation to the area, or
the part of the area, in which the well is drilled.
35
(5D)
A notice under paragraph (5A) may be given only in relation
to a well from which the Licensee has not extracted any
petroleum within the period of one month ending with the
day on which the notice is given.”, and
(c)
in paragraph (6) after “Subject to paragraphs” insert “(5A) to (5D),”.
40
      (4)
In clause 36(4) (power of revocation: change of control) after “when this
licence was granted” insert “(or, if there has been an assignment or
assignation of rights conferred by this licence, when those rights were
assigned to the Licensee)”.

Energy Bill
Schedule 4 — Minor and consequential amendments
130

      (5)
After clause 36 (power of revocation) insert—
“36A
Power of partial revocation
(1)
This clause applies in a case where two or more persons are the
Licensee and—
(a)
an event mentioned in clause 36(2)(c), (d), (e), (ee) or
5
(g) occurs in relation to one of those persons, or
(b)
the conditions specified in clause 36(3) are satisfied in
relation to one of those persons.
(2)
Where this clause applies, the Minister may exercise the power of
revocation in clause 36 to revoke the licence in so far as it applies to
10
the person mentioned in paragraph (1)(a) or (b).
(3)
If the Minister exercises the power in paragraph (2), the rights
granted to the person under this licence cease, but without prejudice
to any obligation or liability incurred by the person or imposed
under the terms and conditions of this licence.
15
(4)
Where this licence is revoked in relation to one person under this
clause, it continues to have effect in respect of the other person who
constitutes, or persons who together constitute, the Licensee and in
relation to whom it is not revoked.”
Schedule 4
20
Section 91

Minor and consequential amendments
Pipe-lines Act 1962 (c. 58)
1
In section 54 of the Pipe-lines Act 1962 (offences by corporations), in
subsection (1) after “any of the provisions of this Act” insert “(other than
section 10H)”.
25
Electricity Act 1989 (c. 29)
2
In section 25 of the Electricity Act 1989 (orders for securing compliance), in
subsection (8), in the definition of “relevant requirement” for “sections 32 to
32C” substitute “sections 32 to 32M”.
Petroleum Act 1998 (c. 17)
30
3
The Petroleum Act 1998 is amended as follows.
4
In section 5(9) (alteration of licences) for “an instrument under seal”
substitute “deed”.
5
In section 31(1) (notices: supplementary provision) omit “(d) or”.
6
In section 45 (interpretation), in the definition of “submarine pipeline” after
35
“which is” insert “, or is intended to be established,”.

Energy Bill
Schedule 5 — Repeals
131

Utilities Act 2000 (c. 27)
7
The Utilities Act 2000 is amended as follows.
8
In section 33 (standard conditions of electricity licences), in subsection (1)—
(a)
after paragraph (b) omit “, or”, and
(b)
after paragraph (c) insert “, or
5
(d)
under section 84 of the Energy Act 2008 (power to
amend licence conditions).”
9
In section 81 (standard conditions of gas licences), in subsection (2) for “or
under the Energy Act 2004” substitute “, under the Energy Act 2004 or under
section 81 of the Energy Act 2008 (power to amend licence conditions)”.
10
10
In section 105 (general restrictions on disclosure of information), in
subsection (8)(a) after “section” (in the second place) insert “32J or”.
Energy Act 2004 (c. 20)
11
The Energy Act 2004 is amended as follows.
12
Omit section 105(9) (power to require provision of information in connection
15
with decommissioning programme).
13
Omit section 107(5) to (7) (power to require provision of information in
connection with decommissioning programme).
14
In section 132 (interpretation of Chapter 5 of Part 2), in subsection (4), in the
definition of “fossil fuel” for “section 32” substitute “section 32M”.
20
15
In section 185 (adjustment of transmission charges), in subsection (14), in the
definition of “renewable sources” for “evidence” to the end substitute
“renewables obligation certificates (within the meaning of section 32B of that
Act) in respect of electricity generated from those sources is capable of
satisfying a renewables obligation imposed by a renewables obligation
25
order (within the meaning of section 32 of that Act);”.
16
In Schedule 13 (directions given to the Civil Nuclear Police Authority), in
paragraph 2(1)(h) for “officers of the Secretary of State’s department”
substitute “persons authorised by the Secretary of State”.
Schedule 5
30
Section 92

Repeals

Short title and chapter
Extent of repeal

Pipe-lines Act 1962 (c. 58)
In section 66(1)—

(a)
in the definition of “gas processing

operation”, “and” after paragraph (b);

35

(b)
in the definition of “terminal”, “and”

after paragraph (b).

Gas Act 1986 (c. 44)
In section 17(9), “with the consent of the

Secretary of State”.