The Petroleum (Production) (Landward Areas) Regulations 1995

Regulation 9(2)(c)

SCHEDULE 5 MODEL CLAUSES FOR METHANE DRAINAGE LICENCES

Interpretation

1.—(1) In the following clauses the following expressions have the meanings hereby respectively assigned to them, that is to say—

“the Act” means the Petroleum (Production) Act 1934;

“the licensed area” means the area in which the Licensee may exercise the rights granted by this licence;

“the Licensee” means the person or persons to whom this licence is granted, his personal representatives and any person or persons to whom the rights conferred by this licence may lawfully have been assigned;

“mine” has the same meaning as in the Mines and Quarries Act 1954;

“the Minister” means the Secretary of State for Trade and Industry.

(2) Any obligations which are to be observed and performed by the Licensee shall at any time at which the Licensee is more than one person be joint and several obligations.

2.  In consideration of the payments hereinafter provided and the performance and observance by the Licensee of all the terms and conditions hereof, the Minister in exercise of the powers conferred by the Act, hereby grants to the Licensee LICENCE AND LIBERTY during the continuance of this licence and subject to the provisions hereof to get natural gas in the course of operations for making and keeping safe mines whether or not disused within ALL THOSE lands having a superficial area of or thereabouts, situate in the County (Counties) of and more particularly delineated and described on the Ordnance Survey map annexed hereto and thereon edged red.

Term of licence

3.  This licence unless sooner determined under any of the provisions hereof shall be and continue in force for the term of next after .

Right of Licensee to determine licence

4.  Without prejudice to any obligation or liability imposed by or incurred under the terms and conditions hereof the Licensee may at any time during the term hereby granted determine this licence by giving to the Minister not less than one month’s previous notice in writing to that effect.

Payment of consideration for licence

5.—(1) The Licensee shall pay to the Minister during the term of this licence the consideration for the grant of this licence specified in the Schedule to this licence at the times and in the manner so specified.

(2) The Licensee shall not by reason of the determination of this licence be entitled to be repaid or allowed any part of any sum payable to the Minister pursuant to this licence.

Records

6.  The Licensee shall keep and furnish to the Minister such records relating to the operations conducted in the licensed area under this licence, the results thereof and the disposal of any natural gas won and saved as the Minister may from time to time determine.

Power to inspect accounts, etc.

7.  Any person authorised by the Minister may at all reasonable times enter into and upon any land for the time being possessed or occupied by the Licensee in the licensed area and inspect and make abstracts or copies of any records or accounts which the Licensee is required to keep or make in accordance with the provisions of this licence.

Records to be treated as confidential

8.  All records, accounts and information which the Licensee is or may be from time to time required to furnish under the provisions of this licence shall be supplied at the expense of the Licensee and shall not (except with the consent in writing of the Licensee which shall not be unreasonably withheld) be disclosed to any person not in the service or employment of the Crown. The Minister shall nevertheless be entitled at any time to make use of any information received from the Licensee for the purpose of preparing and publishing such returns and reports as may be required of the Minister by law.

Notice of commencement and termination of operations

9.  As soon as the licensee has decided to get natural gas at any place he shall notify the Minister in writing of the situation thereof stating—

(a) the name of the mine for the safety of which the operations are to be undertaken;

(b) whether such mine is a disused mine or not.

The Licensee shall also give to the Minister notice in writing of the termination of any such operations within one month of the date of termination.

Indemnity against third party claims

10.  The Licensee shall at all times keep the Minister effectually indemnified against all actions, proceedings, costs, charges, claims and demands whatsoever which may be made or brought against the Minister by any third party in relation to or in connection with this licence or any matter or thing done or purported to be done in pursuance thereof.

Agreement not to assign

11.  The Licensee shall not without the consent of the Minister in writing assign or part with any of the rights granted by this licence in relation to the whole or any part of the licensed area or grant any sub-licence in respect of any of such rights.

Power of revocation

12.  If there shall be any breach or non-observance by the Licensee of any of the terms and conditions herein contained the Minister may revoke this licence and thereupon the same and all the rights hereby granted shall cease and determine but subject nevertheless and without prejudice to any obligation or liability imposed by or incurred under the terms and conditions hereof.

Arbitration

13.—(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 or consented to by the Minister, be referred to arbitration as provided by the following paragraph.

(2) The arbitration referred to in the foregoing paragraph shall be in accordance with the Arbitration Act 1950 by a single arbitrator who, in default of agreement between the Minister and the licensee as to his appointment, shall be appointed by the Lord Chief Justice of England for the time being.

Note: Where the licensed area is situate in Scotland the following paragraph will be substituted for the last foregoing paragraph.

(2A) The arbitration referred to in the foregoing paragraph shall be by a single arbiter who, in default of agreement between the Minister and the Licensee as to his appointment, shall be appointed by the Lord President of the Court of Session.

Note:A schedule to each Licence will provide for the payment by the Licensee of sums agreed between the Minister and the Treasury which may include annual payments payable in advance.

Licences will be executed as deeds in duplicate by all parties thereto.