The Petroleum Licensing (Production) (Seaward Areas) Regulations 2008

• (g) any breach or non-observance by the Licensee of the terms and conditions of a Development Scheme;

• (h) if the Licensee is a company, the Licensee’s ceasing to direct and control either—

• (i) its operations under the licence; or

• (ii) any commercial activities in connection with those operations,

from a fixed place within the United Kingdom;

• (i) any breach of a condition subject to which the Minister gave his approval in pursuance of clause 40(3) of this licence;

• (j) any breach of clause 40(5) of this licence,

and where two or more persons are the Licensee any reference to the Licensee in sub-paragraphs (c) to (h) of this paragraph is a reference to any of those persons.

• (3) The Minister may revoke this licence, with the like consequences as are mentioned in paragraph (1) of this clause, if—

• (a) the Licensee is a company; and

• (b) there is a change in the control of the Licensee; and

• (c) the Minister serves notice in writing on the Licensee stating that the Minister proposes to revoke this licence in pursuance of this paragraph unless such a further change in the control of the Licensee as is specified in the notice takes place within the period of three months beginning with the date of service of the notice; and

• (d) that further change does not take place within that period.

• (4) There is a change in the control of the Licensee for the purposes of paragraph (3)(b) of this clause whenever a person has control of the Licensee who did not have control of the Licensee when this licence was granted (or, if there has been an assignment or assignation of rights conferred by this licence, when those rights were assigned to the Licensee); and subsections (2) and (4) to (6) of section 416 of the Income and Corporation Taxes Act 1988 shall apply, for the purpose of determining whether for the purposes of this paragraph a person has or had control of the Licensee, with the modifications specified in clause 40(4) of this licence.

• (5) Where two or more persons are the Licensee and any of them is a company, paragraphs (3) and (4) of this clause shall have effect as if—

• (a) sub-paragraph (a) of paragraph (3) were omitted;

• (b) in sub-paragraph (b) of that paragraph, after the word “of” there were inserted the words “any company included among the persons who together constitute”; and

• (c) for the word “Licensee” in any other provision of those paragraphs there were substituted the word “company”.

Power of partial revocation

42

• (1) This clause applies in a case where two or more persons are the Licensee and—

• (a) an event mentioned in clause 41(2)(c), (d), (e), (f) or (h) occurs in relation to one of those persons; or

• (b) the conditions specified in clause 41(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 41 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 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.

Arbitration

43

• (1) If at any time any dispute, difference or question shall arise between the Minister and the Licensee as to any matter arising under or by virtue of this licence or as to their respective rights and liabilities in respect thereof then the same shall, except where it is expressly provided by this licence that the matter or thing to which the same relates is to be determined, decided, directed, approved or consented to by the Minister, be referred to arbitration as provided by the following paragraphs.

• (2) The arbitration referred to in the foregoing paragraph shall be by a single arbitrator who, in default of agreement between the Minister and the Licensee and, in the case of arbitration in relation to a Development Scheme, other Licensees affected by that scheme, as to his appointment, shall be appointed by the Lord Chief Justice of England for the time being.

• (3) To the extent that this clause applies to any part of the Licensed Area situated within the Scottish area, as defined in article 1(2) of the Civil Jurisdiction (Offshore Activities) Order 1987, this clause shall have effect as if—

• (a) for the word “arbitrator”, wherever it occurs in paragraphs (2) and (5) of this clause there were substituted the word “arbiter”; and

• (b) for the words “the Lord Chief Justice of England”, in paragraph (2) there were substituted the words “the Lord President of the Court of Session”.

• (4) To the extent that this clause applies to any part of the Licensed Area situated within the Northern Irish area, as defined in article 1(2) of the Civil Jurisdiction (Offshore Activities) Order 1987, this clause shall have effect as if for the words “the Lord Chief Justice of England”, in paragraph (2), there were substituted the words “the Lord Chief Justice of Northern Ireland”.

• (5) In the case of any such arbitration which relates to a Development Scheme the Licensee shall unless the arbitrator otherwise determines perform and observe the terms and conditions of the Development Scheme pending the decision of the arbitrator.

Ministry of Defence

44

• (1) The Licensee shall give the Ministry of Defence six months’ prior notice of any installation movements within a Block.

• (2) The Licensee shall give the Ministry of Defence six weeks’ prior notice of any seismic survey within a Block.

• (3) The Licensee shall at his own expense, install and maintain underwater sonar beacons to Ministry of Defence specifications on any structures that may be temporarily within a Block provided that there shall be no requirement to fit such beacons to fixed and charted installations.

Relationship with fishing industry

45

• (1) The Licensee shall appoint a fisheries liaison officer who shall agree suitable arrangements with the seismic survey and supply vessel owners employed by the Licensee, their masters and the organisations which represent the local fishing industry in order to promote good working relationships between the various parties. The setting up of the arrangements shall be the responsibility of the Licensee. In particular the Licensee shall—

• (a) consult the organisations which represent the local fishing industry about the sea routes to be used by supply vessels;

• (b) after informing the Minister of the result of such consultations, agree with him which routes shall be used to minimise interference with fishing activities without thereby unreasonably increasing transit times;

• (c) ensure that the agreed routes are used unless safety of navigation or security of cargo considerations dictate otherwise; and

• (d) take all reasonable steps to ensure that a responsible person who is fluent in English is a member of the crew of the supply vessel.

• (2) The Licensee shall make every effort to locate and remove, without unreasonable delay, any debris resulting from the licensed activities. The Licensee shall consult the relevant fishing organisations on the method of clearance and inform the Minister of the result of such consultation. If as a result of such consultation the Minister determines that the method of clearance of debris should be modified, such modifications shall be observed by the Licensee.

• (3) Claims for damage to or loss of gear or loss of fishing time arising from reported debris shall be dealt with promptly by the Licensee.

Signed

Malcolm Wicks — Minister of State for Energy — Department for Business, Enterprise and Regulatory Reform — 5th February 2008

Explanatory note

(This note is not part of the Regulations)

EXPLANATORY NOTE

These Regulations prescribe the model clauses which, unless the Secretary of State thinks fit to modify or exclude them in any particular case, will be incorporated in petroleum production licences for seaward areas. The model clauses prescribed will apply for the purposes of the 25th and subsequent rounds of licensing for those areas.

As regards previous rounds of licensing, and as regards other kinds of petroleum licence, the model clauses previously prescribed, most recently by the Petroleum Licensing (Exploration and Production) (Seaward and Landward Areas) Regulations 2004 (S.I. 2004/352) (“the 2004 Regulations”) (as amended), will still apply.

In contrast to the three distinct sets of model clauses prescribed for production licences in seaward areas by the 2004 Regulations (for the different types of licence known as “Traditional”, “Frontier” and “Promote”), these Regulations prescribe a single set of model clauses which will apply in the case of all three types of licence. For the most part, the changes made are limited to clarifying and simplifying the existing provisions. In addition, however, clauses are added which (1) require certain contact details to be provided to the Minister; (2) give the Minister a power to require the plugging and abandonment of a suspended well; (3) amend the definition of a change of control in clause 41; and (4) enable the Minister to revoke the interests of one or more, rather than all, of the joint licensees of a licence. Those additional clauses are identical to clauses proposed to be inserted into all existing petroleum licences by provisions currently in Schedule 3 to the Energy Bill (Bill 53 of 2007-08).

An Impact Assessment has not been prepared for these Regulations. The Regulations have no impact on existing licences, applying only for the purpose of future licensing rounds; and for the most part the changes represent only a simplification of the existing model clauses, rather than a substantive change. However, in the case of the additional clauses referred to above, corresponding to those proposed by the Energy Bill, an assessment is contained at pp. 115-123 of the Impact Assessment for that Bill, which is available from the website of the Department for Business, Enterprise and Regulatory Reform at:

http://www.berr.gov.uk/energy/bill/page40931.html.

Footnotes

[^f00001]: 1998 c.17.

[^f00003]: SI 2004/352, amended by SI 2006/784 and 2007/3224.

Editorial notes

[^key-5685e150c8c90db1599df4062279daca]: Reg. 2 in force at 6.4.2008, see reg. 1(1)

[^key-df33241a2e1cf5c6e16ad6cefa1f78a6]: Reg. 1 in force at 6.4.2008, see reg. 1(1)

[^key-419ddd0d1a983917f79c114a4b7896dc]: Sch. clause 1 in force at 6.4.2008, see reg. 1(1)

[^key-d22889f2c1e5ac1c13c7e9de6c0cc931]: Sch. clause 2 in force at 6.4.2008, see reg. 1(1)

[^key-e045b9dc1fe8b917b3fc82e6d0824759]: Sch. clause 3 in force at 6.4.2008, see reg. 1(1)

[^key-3ab342a818fec472cf418a19bc0d4bcc]: Sch. clause 4 in force at 6.4.2008, see reg. 1(1)

[^key-8294ae45a44db3ed6a7593c2352b95b7]: Sch. clause 5 in force at 6.4.2008, see reg. 1(1)

[^key-26147cf3b4a5adeac63b4a7598d8af6d]: Sch. clause 6 in force at 6.4.2008, see reg. 1(1)

[^key-21d0123c0625b74a3824a4977331980e]: Sch. clause 7 in force at 6.4.2008, see reg. 1(1)

[^key-852352920e2855f2a253dab1c3f52dd2]: Sch. clause 8 in force at 6.4.2008, see reg. 1(1)

[^key-35ce0db6345f4f94120f3033a0b7f5fb]: Sch. clause 9 in force at 6.4.2008, see reg. 1(1)

[^key-60208445196b5d7da6ec5b4e3a7e2690]: Sch. clause 10 in force at 6.4.2008, see reg. 1(1)

[^key-f6b4b2971a6968a783896585b0f015c4]: Sch. clause 11 in force at 6.4.2008, see reg. 1(1)

[^key-d594eba07173de5f62ae7cbd1746822c]: Sch. clause 12 in force at 6.4.2008, see reg. 1(1)

[^key-2c4bcf652ec341474272146b2a82907b]: Sch. clause 13 in force at 6.4.2008, see reg. 1(1)

[^key-7edb2bc5e91a94fa0a2976b19145a2ea]: Sch. clause 14 in force at 6.4.2008, see reg. 1(1)

[^key-6b8f73037a1363e62589d3a0ad995e16]: Sch. clause 15 in force at 6.4.2008, see reg. 1(1)

[^key-be677a313ff68b2948ac3fb42ddf81d3]: Sch. clause 16 in force at 6.4.2008, see reg. 1(1)

[^key-6b93fcf30fa1ff9877ba42f1669f2462]: Sch. clause 17 in force at 6.4.2008, see reg. 1(1)

[^key-e64146f9ede70392b47b5d653bd26dc9]: Sch. clause 18 in force at 6.4.2008, see reg. 1(1)

[^key-7e51aefb0532f25c78aec51fb9287993]: Sch. clause 19 in force at 6.4.2008, see reg. 1(1)

[^key-200e585cde5506d17b763edb42dc4be6]: Sch. clause 20 in force at 6.4.2008, see reg. 1(1)

[^key-58ee936141ee67adce7fb58825aefd8d]: Sch. clause 21 in force at 6.4.2008, see reg. 1(1)

[^key-a4c79245ea163cb7d30471c046a0805d]: Sch. clause 22 in force at 6.4.2008, see reg. 1(1)

[^key-249d4f5a73ba38eedb47fa0dfb0e588c]: Sch. clause 23 in force at 6.4.2008, see reg. 1(1)

[^key-7e4d97a272b34e5a8ffac3cbdd66d93f]: Sch. clause 24 in force at 6.4.2008, see reg. 1(1)

[^key-01d420dabffb219f06a3c28382135ae6]: Sch. clause 25 in force at 6.4.2008, see reg. 1(1)

[^key-b6e8a7104a2464f74092fc40365192b2]: Sch. clause 26 in force at 6.4.2008, see reg. 1(1)

[^key-0ff3c8ecc0b42fba4feb742468e192c1]: Sch. clause 27 in force at 6.4.2008, see reg. 1(1)

[^key-499f3a5ceefeca97a018982055abd5a9]: Sch. clause 28 in force at 6.4.2008, see reg. 1(1)

[^key-94b58ceb6c581190d9bbffc3fee5c4a2]: Sch. clause 29 in force at 6.4.2008, see reg. 1(1)

[^key-327fe5fd09e07ae15fbd9ca41dbdde05]: Sch. clause 30 in force at 6.4.2008, see reg. 1(1)

[^key-c619c1751ac1dcec49af8652c1eb122b]: Sch. clause 31 in force at 6.4.2008, see reg. 1(1)

[^key-24a717eaab4e3525e204dc5dbca7acab]: Sch. clause 32 in force at 6.4.2008, see reg. 1(1)

[^key-c8e7efc81e27d39680ce84e2904c7ff8]: Sch. clause 33 in force at 6.4.2008, see reg. 1(1)

[^key-05e1ef1d0d1bdc70cd0212d13213915e]: Sch. clause 34 in force at 6.4.2008, see reg. 1(1)

[^key-4207f5185dd17b944f7b0ddfe52fb674]: Sch. clause 35 in force at 6.4.2008, see reg. 1(1)

[^key-c8c5c2c4153036d59236e4eef6a92543]: Sch. clause 36 in force at 6.4.2008, see reg. 1(1)

[^key-63b20749c38bc1d769e2e7cfec570307]: Sch. clause 37 in force at 6.4.2008, see reg. 1(1)

[^key-47c07b667ee4e7ba45cd189af0e5bfc9]: Sch. clause 38 in force at 6.4.2008, see reg. 1(1)

[^key-c7520cd1813022a61a0dca533f9b596a]: Sch. clause 39 in force at 6.4.2008, see reg. 1(1)

[^key-ae4c9b173b4749fcae60fd439687518e]: Sch. clause 40 in force at 6.4.2008, see reg. 1(1)

[^key-391e0a357096a7317d80817514dc9664]: Sch. clause 41 in force at 6.4.2008, see reg. 1(1)

[^key-520a074d67f93f0c5b8e58d175d7413b]: Sch. clause 42 in force at 6.4.2008, see reg. 1(1)

[^key-577e8441b22e0f3eb7ebbf8b299d5fe1]: Sch. clause 43 in force at 6.4.2008, see reg. 1(1)

[^key-001967d226c89697e1901d16a0d8bb75]: Sch. clause 44 in force at 6.4.2008, see reg. 1(1)

[^key-796579521c7a9676b9193272e6fcec9e]: Sch. clause 45 in force at 6.4.2008, see reg. 1(1)

[^key-e350fd015fd5f847894efd8838410ab2]: Words in Sch. clause 1(1) substituted (5.3.2009) by The Secretary of State for Energy and Climate Change Order 2009 (S.I. 2009/229), art. 1(2), Sch. 2 para. 20(1)

[^key-bfea4c6ff00ee47e68693438d7a75ba7]: Words in Sch. clause 1(1) substituted (5.3.2009) by The Secretary of State for Energy and Climate Change Order 2009 (S.I. 2009/229), art. 1(2), Sch. 2 para. 20(2)

[^key-6c8a3b97aec2bfd041fe7d30338dc2c4]: Word in Sch. clause 2 substituted (20.1.2010) by The Petroleum Licensing (Amendment) Regulations 2009 (S.I. 2009/3283), regs. 1, 4(3)

[^key-a38ddd91f16cc9f5963fc1e39e13a04e]: Sch. clause 3(2) substituted (20.1.2010) by The Petroleum Licensing (Amendment) Regulations 2009 (S.I. 2009/3283), regs. 1, 4(4)

[^key-726e368d7f5fddd9bccb4daefde59884]: Words in Sch. clause 5(2) substituted (20.1.2010) by The Petroleum Licensing (Amendment) Regulations 2009 (S.I. 2009/3283), regs. 1, 4(5)(a)

[^key-da9a06bf93402fcd6511bf545564540b]: Sch. clause 5(3) substituted (20.1.2010) by The Petroleum Licensing (Amendment) Regulations 2009 (S.I. 2009/3283), regs. 1, 4(5)(b)

[^key-f6e9a14860394fcdd6d847735b050709]: Sch. clause 30(3A) inserted (20.1.2010) by The Petroleum Licensing (Amendment) Regulations 2009 (S.I. 2009/3283), regs. 1, 4(6)

[^key-d68a4ecf2a2197a8255bab416d8d2607]: Words in reg. 1(2) substituted (20.1.2010) by The Petroleum Licensing (Amendment) Regulations 2009 (S.I. 2009/3283), regs. 1, 4(1)