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61 | Amendment of Nuclear Installations Act 1965 |
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After section 1(3) of the Nuclear Installations Act 1965 (c. 57) (nuclear site |
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“(4) | Subsection (1) is subject to section 43 of the Energy Act 2008 |
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(prohibition on use of site in absence of approved funded |
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decommissioning programme).” |
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62 | Meaning of “associated” |
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(1) | For the purposes of this Chapter, one body corporate is associated with another |
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if one of them has a significant interest in the other or a third body corporate |
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has a significant interest in both of them; and subsections (2) to (5) set out the |
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circumstances in which one body corporate (“A”) has a significant interest in |
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(2) | Where B is a company, A has a significant interest in B if A possesses or is |
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(a) | 20% or more of the issued share capital of B, |
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(b) | such rights as would entitle A to exercise 20% or more of the votes |
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exercisable in general meetings of B, |
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(c) | such part of the issued share capital of B as would entitle A to 20% or |
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more of the amount distributed if the whole of the income of B were in |
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fact distributed among the shareholders, or |
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(d) | such rights as would, in the event of the winding up of B or in any other |
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circumstances, entitle it to receive 20% or more of the assets of B which |
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would then be available for distribution among the shareholders. |
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(3) | Where B is a limited liability partnership, A has a significant interest in B if A— |
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(a) | holds 20% or more of the voting rights in B, |
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(b) | is a member of B and has a right to appoint or remove 20% or more of |
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(c) | is a member of B and controls alone, or pursuant to an agreement with |
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other members, 20% or more of the voting rights in B. |
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(4) | In subsection (3)(a) and (c) the references to “voting rights” are to the rights |
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conferred on members in respect of their interest in a limited liability |
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partnership to vote on those matters which are to be decided on by a vote of |
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the members of the limited liability partnership. |
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(5) | In any case, A has a significant interest in B if A has the power, directly or |
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indirectly, to secure that the affairs of B are conducted in accordance with A’s |
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(6) | In determining whether, by virtue of this section, A has a significant interest in |
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B, A shall be taken to possess— |
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(a) | any rights and powers possessed by a person as nominee for A, and |
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(b) | any rights and powers possessed by a body corporate which A controls |
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(including rights and powers which such a body corporate would be |
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taken to possess by virtue of this paragraph). |
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(7) | In order to determine whether one body corporate controls another for the |
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purposes of subsection (6)(b), subsections (2) to (5) and (6)(a) are to be applied, |
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(a) | for “has a significant interest in” in each place there were substituted |
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(b) | for “20%” in each place there were substituted “50%”. |
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“approved funded decommissioning programme” means a funded |
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decommissioning programme approved under section 42; |
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“cleaning-up” and “decommissioning”, in relation to a site or installation, |
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includes the treatment, storage, transportation and disposal of |
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hazardous material (within the meaning of section 37 of the Energy Act |
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2004) and of other matter and substances that need to be dealt with or |
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removed in or towards making the site or installation suitable to be |
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“the designated technical matters” has the meaning given by section 41; |
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“document” includes anything in which information is recorded in any |
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“enactment” includes an enactment comprised in, or in an instrument |
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made under, an Act of the Scottish Parliament or Northern Ireland |
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“funded decommissioning programme” is to be construed in accordance |
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“nuclear installation” has the meaning given by section 26 of the Nuclear |
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Installations Act 1965 (c. 57); |
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“nuclear site licence” has the meaning given by that section; |
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“relevant nuclear installation”, in relation to a site, means a nuclear |
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installation which is or is intended to be established on the site; |
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“site operator” means a person who holds a nuclear site licence in respect |
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“the technical matters” has the meaning given by section 41. |
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Offshore renewables installations |
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64 | Decommissioning notices relating to offshore renewable energy installations |
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(1) | The Energy Act 2004 (c. 20) is amended as follows. |
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(2) | In section 105(2) (notices), for “that person” substitute “— |
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(a) | a person falling within subsection (1)(a), (b) or (c), or |
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(b) | if a person to whom paragraph (a) applies is a body corporate, a body |
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corporate associated with that person (subject to section 105A),”. |
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(3) | In section 105(3) (consents) for the words from the beginning to “proposals—” |
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“(3) | Before requiring a person to submit a decommissioning programme in |
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respect of proposals made by a person within paragraph (a) or (b) of |
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subsection (1), the Secretary of State must be satisfied that at least one |
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of the statutory consents required for giving effect to those proposals— |
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(4) | After section 105 (requirement to prepare decommissioning programme) |
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“105A | Section 105 notices: supplemental |
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(1) | The Secretary of State may not give a notice under section 105(2)(b) to |
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a body corporate associated with a person (“the responsible person”) |
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within section 105(1)(a), (b) or (c) unless the Secretary of State— |
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(a) | has given a notice to the responsible person under section |
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(b) | is not satisfied that adequate arrangements (including financial |
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arrangements) have been made by the responsible person to |
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ensure that a satisfactory decommissioning programme will be |
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(2) | Subsection (1) does not apply if— |
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(a) | there has been a failure to comply with a notice under section |
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(b) | the Secretary of State has rejected a programme submitted in |
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compliance with such a notice. |
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(3) | For the purposes of this section and section 105, one body corporate is |
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associated with another if one of them controls the other or a third body |
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corporate controls both of them, and subsections (4) to (8) set out the |
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circumstances in which one body corporate (“A”) controls another |
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(4) | Where B is a company, A controls B if A possesses or is entitled to |
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(a) | one half or more of the issued share capital of B, |
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(b) | such rights as would entitle A to exercise one half or more of the |
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votes exercisable in general meetings of B, |
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(c) | such part of the issued share capital of B as would entitle A to |
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one half or more of the amount distributed if the whole of the |
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income of B were in fact distributed among the shareholders, or |
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(d) | such rights as would, in the event of the winding up of B or in |
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any other circumstances, entitle it to receive one half or more of |
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the assets of B which would then be available for distribution |
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(5) | Where B is a limited liability partnership, A controls B if A— |
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(a) | holds a majority of the voting rights in B, |
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(b) | is a member of B and has a right to appoint or remove a majority |
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(c) | is a member of B and controls alone, or pursuant to an |
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agreement with other members, a majority of the voting rights |
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(6) | In subsection (5)(a) and (c) the references to “voting rights” are to the |
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rights conferred on members in respect of their interest in a limited |
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liability partnership to vote on those matters which are to be decided |
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on by a vote of the members of the limited liability partnership. |
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(7) | In any case, A controls B if A has the power, directly or indirectly, to |
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secure that the affairs of B are conducted in accordance with A’s |
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(8) | In determining whether, by virtue of subsections (4) to (7), A controls |
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B, A is to be taken to possess— |
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(a) | any rights and powers possessed by a person as nominee for it, |
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(b) | any rights and powers possessed by a body corporate which it |
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controls (including rights and powers which such a body |
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corporate would be taken to possess by virtue of this |
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(5) | In section 108 (reviews of decommissioning programmes), after subsection (3) |
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“(3A) | A proposal under subsection (3)(b) may, in particular, be made in |
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relation to a body corporate associated with a person who has a duty |
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under section 109(1) (and for this purpose “associated” is to be |
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construed in accordance with section 105A(3) to (8)).” |
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65 | Security for decommissioning obligations |
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After section 110 of the Energy Act 2004 (c. 20) (failure to carry out |
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decommissioning programme) insert— |
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“110A | Protection of funds held for purposes of decommissioning |
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(1) | This section applies where any security in relation to the carrying out |
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of an approved decommissioning programme, or for compliance with |
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the conditions of its approval, has been provided by a person (“the |
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security provider”) by way of a trust or other arrangements. |
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(2) | In this section a reference to “the protected assets” is a reference to the |
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security and any property or rights in which it consists. |
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(3) | The manner in which, and purposes for which, the protected assets are |
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to be applied and enforceable (whether in the event of the security |
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provider’s insolvency or otherwise) is to be determined in accordance |
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with the trust or other arrangements. |
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(4) | For the purposes of subsection (3), no regard is to be had to so much of |
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the Insolvency Act 1986, the Insolvency (Northern Ireland) Order 1989 |
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or any other enactment or rule of law as, in its operation in relation to |
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the security provider or any conduct of the security provider, would— |
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(a) | prevent or restrict the protected assets from being applied in |
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accordance with the trust or other arrangement, or |
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(b) | prevent or restrict their enforcement for the purposes of being |
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(5) | In subsection (4) “enactment” includes an instrument made under an |
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110B | Section 110A: supplemental |
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(1) | The Secretary of State may direct a security provider to publish |
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specified information about the protected assets. |
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(2) | A direction under this section may specify— |
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(a) | the time when the information must be published, and |
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(b) | the manner of publication. |
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(3) | If a security provider fails to comply with a direction, the Secretary of |
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State or a creditor of the security provider may make an application to |
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the court under this section. |
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(4) | If, on an application under this section, the court decides that the |
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security provider has failed to comply with the direction, it may order |
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the security provider to take such steps as the court directs for securing |
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that the direction is complied with. |
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“the protected assets” has the same meaning as in section 110A; |
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“security provider” means a person who has provided security in |
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relation to which that section applies. |
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(6) | In subsections (3) and (4) references to “the court” are references— |
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(a) | to the High Court, in relation to an application in England and |
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Wales or Northern Ireland, or |
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(b) | to the Court of Session, in relation to an application in |
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66 | Provision of information to Secretary of State |
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After section 112 of the Energy Act 2004 (c. 20) (duty to inform Secretary of |
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“112A | Power of Secretary of State to require information and documents |
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(1) | The Secretary of State may by notice require a person within subsection |
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(2) to provide the Secretary of State with such relevant information or |
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documents as the Secretary of State may require in connection with the |
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exercise of functions under this Chapter. |
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(a) | a person who has been, or may be, given a notice under section |
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105(2)(a) in relation to a relevant object, |
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(b) | where a person falling within paragraph (a) is a body corporate, |
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a body corporate associated with that person, |
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(c) | a person not within paragraph (a) or (b) who by virtue of |
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provision made under section 108(3)(b) is subject to the duty |
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under section 109(1) in relation to a decommissioning |
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programme relating to a relevant object. |
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(3) | Information or a document is “relevant” if it relates to— |
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(a) | the place where the relevant object is or is to be situated, |
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(c) | where the recipient of the notice is a body corporate falling |
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within subsection (2)(c) or section 105(2)(a), details of an |
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associated body corporate, |
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(d) | the financial affairs of the recipient of the notice or, where the |
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recipient is a body corporate falling within subsection (2)(c) or |
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section 105(1)(a), (b) or (c), an associated body corporate, |
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(e) | the security that the recipient proposes to provide in relation to |
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the carrying out of a decommissioning programme relating to |
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the relevant object or for the recipient’s compliance with any |
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conditions of the programme’s approval, or |
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(f) | where the recipient of the notice (“R”) is a body corporate falling |
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within subsection (2)(c) or section 105(1)(a), (b) or (c), the name |
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or address of any person whom R believes to be an associated |
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(4) | But if a notice under subsection (1) requires information in connection |
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with a function of the Secretary of State under section 107(1) or (4), the |
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notice may require the provision of information or documents which |
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the Secretary of State considers are necessary or expedient for the |
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purpose of exercising those functions (whether or not they are of a kind |
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specified in subsection (3)). |
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(5) | A notice under subsection (1) must specify the documents or |
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information, or the description of documents or information, to which |
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(6) | Information or documents required to be provided under this section |
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must be provided within such period as is specified in the notice under |
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(7) | In this section, “associated”, in relation to a body corporate, is to be |
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construed in accordance with section 105A(3) to (8). |
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(8) | A person who fails, without reasonable excuse, to comply with a notice |
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under subsection (1) is guilty of an offence. |
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(9) | A person who discloses information obtained by virtue of a notice |
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under this section is guilty of an offence unless the disclosure— |
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(a) | is made with the consent of the person by or on behalf of whom |
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the information was provided, |
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(b) | is for the purpose of the exercise of the Secretary of State’s |
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functions under this Chapter, the Electricity Act 1989 or Part 4 |
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of the Petroleum Act 1998, or |
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(c) | is required by or under an enactment.” |
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Oil and gas installations |
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67 | Persons who may be required to submit abandonment programmes |
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(1) | Section 30 of the Petroleum Act 1998 (c. 17) (persons who may be required to |
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submit programmes) is amended as follows. |
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(a) | after paragraph (b) insert— |
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“(ba) | a person to whom subsection (5)(a) and (b) applied in |
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relation to the installation, but who— |
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(i) | transferred the right mentioned in that |
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subsection to another person, and |
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(ii) | has not obtained a consent required under the |
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licence in relation to the transfer;”, and |
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(b) | in paragraph (e) for “company” in each place substitute “body |
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(3) | In subsection (2)(c) for “company” in each place substitute “body corporate”. |
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(4) | For subsection (5)(b) substitute— |
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(i) | any activity mentioned in subsection (6) is carried on |
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from, by means of or on the installation, or |
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(ii) | the person intends to carry on an activity mentioned in |
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that subsection from, by means of or on the |
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(5) | For subsection (8) substitute— |
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“(8) | For the purposes of this section, one body corporate is associated with |
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another if one of them controls the other or a third body corporate |
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controls both of them; and subsections (8A) to (8D) set out the |
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circumstances in which one body corporate (“A”) controls another |
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(8A) | Where B is a company, A controls B if A possesses or is entitled to |
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(a) | one half or more of the issued share capital of B, |
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(b) | such rights as would entitle A to exercise one half or more of the |
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votes exercisable in general meetings of B, |
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(c) | such part of the issued share capital of B as would entitle A to |
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one half or more of the amount distributed if the whole of the |
| 25 |
income of B were in fact distributed among the shareholders, or |
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(d) | such rights as would, in the event of the winding up of B or in |
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any other circumstances, entitle it to receive one half or more of |
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the assets of B which would then be available for distribution |
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(8B) | Where B is a limited liability partnership, A controls B if A— |
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(a) | holds a majority of the voting rights in B, |
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(b) | is a member of B and has a right to appoint or remove a majority |
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(c) | is a member of B and controls alone, or pursuant to an |
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agreement with other members, a majority of the voting rights |
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(8C) | In subsection (8B)(a) and (c) the references to “voting rights” are to the |
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rights conferred on members in respect of their interest in a limited |
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liability partnership to vote on those matters which are to be decided |
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on by a vote of the members of the limited liability partnership. |
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(8D) | In any case, A controls B if A has the power, directly or indirectly, to |
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secure that the affairs of B are conducted in accordance with A’s |
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(a) | for “subsection (8)” substitute “subsections (8) to (8D)”, and |
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(b) | for “company” in each place substitute “body corporate”. |
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