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Petroleum Act 1998

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F117C Application of section 17D to certain offshore gas storage facilities.U.K.

[F2(1)Section 17D applies to [F3an offshore gas storage facility unless, or except to the extent that, its capacity is exempt under this section] .

(2)[F4A person who is or expects to be an owner] of an offshore gas storage facility may apply in writing to the Director for an exemption [F5with respect to the facility] .

(3)An exemption shall be given in writing and may be given—

(a)so as to have effect for an indefinite period or for a period specified in, or determined under, the exemption;

(b)unconditionally or subject to such conditions as the Director considers appropriate.

[F6(c)so as to have effect—

(i)in the case of a facility other than a new facility, in relation to the whole of the capacity of the facility; or

(ii)in the case of a new facility, in relation to the whole of the capacity of the facility or any significant increase in the capacity of the facility.]

[F7(4) An exemption may contain provision for its revocation.]

[F8(5)The Authority shall give an exemption with respect to a facility (other than a new facility) where it is satisfied that use of the facility by other persons is not necessary for the operation of an economically efficient gas market.

(5A)The Authority shall give an exemption with respect to a new facility where it is satisfied that either—

(a)use of the facility by other persons is not necessary for the operation of an economically efficient gas market; or

(b)the requirements of subsection (5C) are met.

(5B)In respect of a facility which is or is to be modified to provide for a significant increase in its capacity, an exemption by virtue of subsection (5A)(b) may only be given in relation to that increase in its capacity.

(5C)The requirements of this subsection are that—

(a)the facility or (as the case may be) the significant increase in its capacity will promote security of supply;

(b)the level of risk is such that the investment to construct the facility or (as the case may be) to modify the facility to provide for a significant increase in its capacity would not be or would not have been made without the exemption;

(c)the facility is or is to be owned by a person other than the gas transporter who operates or will operate the pipeline system connected or to be connected to the facility;

(d)charges will be levied on users of the facility or (as the case may be) the increase in its capacity;

(e)the exemption will not be detrimental to competition, the operation of an economically efficient gas market or the efficient functioning of the pipeline system connected or to be connected to the facility; and

(f)the Commission of the European Communities is or will be content with the exemption.

(5D)Subject to subsection (5E), an exemption may not be given by virtue of subsection (5A)(b) more than once in respect of the same facility.

(5E)Subsection (5D) does not prevent a further exemption being given by virtue of subsection (5A)(b) in respect of a facility if—

(a)the facility is or is to be modified to provide for a significant increase in its capacity

(b)the exemption has effect only in relation to that increase in its capacity; and

(c)no previous exemption has been given by virtue of subsection (5A)(b) in relation to that increase in its capacity.

(5F)The Authority shall publish its decision to give or refuse to give an exemption together with the reasons for its decision in such manner as it considers appropriate.]

[F9(7)In this section and sections 17D and 17E—

(a)“the Authority” means the Gas and Electricity Markets Authority;

(b)“owner”, in relation to an offshore gas storage facility, includes any person occupying or having control of the facility.]]

Textual Amendments

F1Ss. 17A-17H inserted (10.8.2000) by S.I. 2000/1937, reg. 2(4), Sch. 4 para. 4

F8Ss. 17C(5)-(5F) substituted for s. 17C(5) (26.8.2004) by Gas (Third Party Access) Regulations 2004 (S.I. 2004/2043), reg. 1, Sch. 3 para. 1(e)

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