The Petroleum Licensing (Applications) Regulations 2015

Citation and commencement U.K.

1.  These Regulations may be cited as the Petroleum Licensing (Applications) Regulations 2015, and come into force on 30th June 2015.

Interpretation U.K.

2.  In these Regulations—

“application notice” means a notice published in the Official Journal of the European Union which—

(a)

indicates that the [F1 OGA] is prepared to accept applications for petroleum exploration and development licences or seaward area production licences in respect of blocks, and

(b)

specifies the web site on which details of the blocks are published;

“block” means an area to which a reference number has been assigned and published on a web site by the [F2 OGA];

[F3 “landward area” means an area of Great Britain that is within the baselines established by any Order in Council under section 1(1)(b) of the Territorial Sea Act 1987 (extension of territorial sea);]

“landward petroleum exploration licence” means a licence to search for petroleum in a landward area;

[F4 “low water line” means the line so marked on the Ordnance map on a scale of 1:25,000 in the case of maps relating to Great Britain, and 1:50,000 in the case of maps relating to Northern Ireland, in the edition for the areas to which they respectively relate last published prior to the date on which these Regulations are made;]

“methane drainage licence” means a licence to get natural gas in the course of operations for making and keeping safe mines whether or not disused;

“model clauses” in relation to a licence means the model clauses prescribed under section 4(1)(e) of the Petroleum Act 1998 to be incorporated in licences of that type;

[F5 “multiple phase licence” means a seaward area production licence in which, in accordance with the model clauses or clauses having a similar effect, at least one of Phase A or Phase B (within the meaning given by the model clauses) is specified;]

[F6 “the OGA” means the Oil and Gas Authority;]

“petroleum exploration and development licence” means a licence to search and bore for, and get, petroleum in a landward area;

F7 ...

“seaward area” means—

(a)

[F8 islands on the seaward side of the baselines around Great Britain established by any Order in Council under section 1(1)(b) of the Territorial Sea Act 1987,]

(b)

an area in the sea bed and subsoil beneath waters which lie on the seaward side of the said lines but within the outward limit of the territorial sea of the United Kingdom, and

(c)

an area in the sea bed and subsoil within any area designated under section 1(7) of the Continental Shelf Act 1964 M1 ;

“seaward petroleum exploration licence” means a licence to search for petroleum in any seaward area or landward area below the low water line;

“seaward area production licence” means a licence to search and bore for, and get, petroleum in a seaward area;

“work programme” means a scheme of prospecting including any geological survey by any physical or chemical means and any test drilling.

Textual Amendments

F1 Word in reg. 2 substituted (1.10.2016) by The Energy (Transfer of Functions, Consequential Amendments and Revocation) Regulations 2016 (S.I. 2016/912), regs. 1(1), 25(2)(a)

F2 Word in reg. 2 substituted (1.10.2016) by The Energy (Transfer of Functions, Consequential Amendments and Revocation) Regulations 2016 (S.I. 2016/912), regs. 1(1), 25(2)(b)

F3 Words in reg. 2 substituted (9.2.2018) by The Scotland Act 2016 and Onshore Petroleum (Consequential, Transitional and Saving Provisions and Model Clauses) Regulations 2018 (S.I. 2018/56), regs. 1(2), 4(2)(a) (with reg. 11)

F4 Words in reg. 2 substituted (9.2.2018) by The Scotland Act 2016 and Onshore Petroleum (Consequential, Transitional and Saving Provisions and Model Clauses) Regulations 2018 (S.I. 2018/56), regs. 1(2), 4(2)(b) (with reg. 11)

F5 Words in reg. 2 inserted (15.9.2017) by The Petroleum and Offshore Gas Storage and Unloading Licensing (Amendment) Regulations 2017 (S.I. 2017/855), regs. 1, 5(2)(b)

F6 Words in reg. 2 inserted (1.10.2016) by The Energy (Transfer of Functions, Consequential Amendments and Revocation) Regulations 2016 (S.I. 2016/912), regs. 1(1), 25(2)(c)

F7 Words in reg. 2 omitted (15.9.2017) by virtue of The Petroleum and Offshore Gas Storage and Unloading Licensing (Amendment) Regulations 2017 (S.I. 2017/855), regs. 1, 5(2)(a)

F8 Words in reg. 2 substituted (9.2.2018) by The Scotland Act 2016 and Onshore Petroleum (Consequential, Transitional and Saving Provisions and Model Clauses) Regulations 2018 (S.I. 2018/56), regs. 1(2), 4(2)(c) (with reg. 11)

Marginal Citations

M1 1964 c. 29, amended by section 37 of, and paragraph 1 of Schedule 3 to, the Oil and Gas (Enterprise) Act 1982 (c. 23) and section 103 of the Energy Act 2011 (c. 16).

Application of the Regulations U.K.

3.—(1)  [F9 Subject to paragraph (1A),] these Regulations apply to an application for—

(a) a landward petroleum exploration licence;

(b) a seaward petroleum exploration licence;

(c) a methane drainage licence;

(d) a petroleum exploration and development licence; and

(e) a seaward area production licence.

[F10 (1A) These Regulations do not apply in relation to a landward petroleum exploration licence or a petroleum exploration and development licence in respect of an area within the Scottish onshore area.

(1B) In this regulation, “Scottish onshore area” has the meaning given in section 8A(3) of the Petroleum Act 1998.]

(2) The following Regulations cease to have effect, to the extent specified, in relation to an application for a licence mentioned in paragraph (1) made after the date of coming into force of these Regulations—

(a) the whole of the Petroleum (Production) (Seaward Areas) Regulations 1988 M2 ;

(b) the Petroleum (Production) (Landward Areas) Regulations 1995 M3 with the exception of—

(i) regulation 9(2)(c); and

(ii) Schedule 5 to the Regulations.

Textual Amendments

F9 Words in reg. 3(1) inserted (9.2.2018) by The Scotland Act 2016 and Onshore Petroleum (Consequential, Transitional and Saving Provisions and Model Clauses) Regulations 2018 (S.I. 2018/56), regs. 1(2), 4(3) (with reg. 11)

F10 Reg. 3(1A)(1B) inserted (9.2.2018) by The Scotland Act 2016 and Onshore Petroleum (Consequential, Transitional and Saving Provisions and Model Clauses) Regulations 2018 (S.I. 2018/56), regs. 1(2), 4(4) (with reg. 11)

Marginal Citations

M2 S.I. 1988/1213, relevant amending instruments are S.I.s

1992/2378,

1995/1435,

1996/2946,

2009/229 and

2009/3283.

M3 S.I. 1995/1436, relevant amending instruments are S.I.s 2009/229 and 2009/3283.

Applications for licences: general U.K.

4.—(1) Applications may be made by any person.

(2) Applications must—

(a) in the case of an application for—

(i) a petroleum exploration and development licence or

(ii) a seaward area production licence,

be made via the portal provided F11 ... for the purpose of licence applications on a publicly accessible web site;

(b) in the case of an application for a licence other than those mentioned in sub-paragraph (a), be made in writing;

(c) be accompanied by such evidence and particulars or documents in support as are specified in these Regulations in respect of the licence being applied for, and are appropriate to that application;

(d) be accompanied by the appropriate fee, as set out in [F12 the Oil and Gas Authority (Fees) Regulations 2016].

(3) In respect of an application for a petroleum exploration and development licence, regulation 5(2)(b), (5) and Schedule 2 sets out the information and supporting documentation required.

(4) In respect of an application for a seaward area production licence, regulation 5(2)(b), (5) and Schedules 2 and 3 set out the information and supporting documentation required.

(5) An application for a licence other than a petroleum exploration and development licence or a seaward area production licence may be made at any time.

(6) If any of the matters stated in an application or any further information supplied by the applicant changes after the application is made or after the information is supplied but before a licence is granted or the [F13 OGA] informs the applicant that the application is refused, the applicant must immediately give notice in writing to the [F13 OGA] giving particulars of the change.

(7) Nothing in these Regulations prevents more than one application being made by the same applicant or more than one licence being granted to that applicant.

(8) In this regulation, “in writing” includes transmission by way of an email sent to an address provided by the [F14 OGA] for the purpose of receiving applications for licences and related information.

Textual Amendments

F11 Words in reg. 4(2)(a) omitted (1.10.2016) by virtue of The Energy (Transfer of Functions, Consequential Amendments and Revocation) Regulations 2016 (S.I. 2016/912), regs. 1(1), 25(3)(a)

F12 Words in reg. 4(2)(d) substituted (1.10.2016) by The Energy (Transfer of Functions, Consequential Amendments and Revocation) Regulations 2016 (S.I. 2016/912), regs. 1(1), 25(3)(b)

F13 Word in reg. 4(6) substituted (1.10.2016) by The Energy (Transfer of Functions, Consequential Amendments and Revocation) Regulations 2016 (S.I. 2016/912), regs. 1(1), 25(3)(c)

F14 Word in reg. 4(8) substituted (1.10.2016) by The Energy (Transfer of Functions, Consequential Amendments and Revocation) Regulations 2016 (S.I. 2016/912), regs. 1(1), 25(3)(d)

Applications for a petroleum exploration and development licence or a seaward area production licence U.K.

5.—(1) This regulation applies to an application for—

(a) a petroleum exploration and development licence; or

(b) a seaward area production licence.

(2) Subject to paragraph (6), every application for a licence must—

(a) be in response to an application notice, and

(b) specify the block or blocks to which it relates.

(3) Subject to paragraph (4), the application notice mentioned in paragraph (2) must provide for applications relating to any of the blocks to be made and determined in competition with others, specifying—

(a) a date on or before which any such applications are to be made, being a date at least 90 days after the date on which the application notice is published; and

(b) a date on which, or a period within which, it is proposed that licences will be granted to successful applicants.

(4) In the case of any block in respect of which—

(a) provision for competing applications was made on a previous occasion in an application notice, and

(b) that provision did not result in the grant of a licence,

the application notice may provide for applications to be made and determined at any time.

(5) If an application specifies more than one block it may indicate an order of preference for some or all of the blocks and it may indicate that blocks are applied for as alternatives.

(6) Where the [F15 OGA] decides that geological or production considerations justify the granting of a licence in respect of any area to the holder of a licence in respect of a contiguous area, and notifies the holders of licences in respect of areas contiguous to the area in question accordingly, any of them may apply for a licence in respect of the area in question within whatever period the [F15 OGA] considers sufficient for this purpose and specifies in the notification.

Textual Amendments

F15 Word in reg. 5(6) substituted (1.10.2016) by The Energy (Transfer of Functions, Consequential Amendments and Revocation) Regulations 2016 (S.I. 2016/912), regs. 1(1), 25(4)

Applications for landward petroleum exploration licences, seaward petroleum exploration licences and methane drainage licences U.K.

6.  An application for—

(a) a landward petroleum exploration licence,

(b) a seaward petroleum exploration licence, or

(c) a methane drainage licence,

must include in respect of each applicant—

(i) the applicant's name in full;

(ii) where the applicant is a body corporate—

(aa) its place of incorporation; and

(bb) its registration number at Companies House or other appropriate registration number or identifier, or if it is registered in another jurisdiction, its registration number or other identifier from that jurisdiction;

(iii) where the applicant is an individual, the applicant's usual residential address, otherwise—

(aa) the address of the applicant's registered office; or

(bb) if the applicant does not have a registered office the address of the applicant's principal place of business in the United Kingdom, and if the applicant does not have a principal place of business in the United Kingdom, the address of the applicant's principal place of business; and

(iv) the place or places from which—

(aa) the applicant's operations under the licence; or

(bb) any commercial activities in connection with those operations,

will be directed and controlled.

Fees U.K.

F16 7.  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F16 Reg. 7 omitted (1.10.2016) by virtue of The Energy (Transfer of Functions, Consequential Amendments and Revocation) Regulations 2016 (S.I. 2016/912), regs. 1(1), 25(5)

Form of licences U.K.

8.  Every licence must incorporate the model clauses prescribed for that type of licence at the time that the licence is issued, unless the [F17 OGA] thinks fit to modify or exclude them in any particular case.

Textual Amendments

F17 Word in reg. 8 substituted (1.10.2016) by The Energy (Transfer of Functions, Consequential Amendments and Revocation) Regulations 2016 (S.I. 2016/912), regs. 1(1), 25(6)

[F18 Review U.K.

9.— (1) The Secretary of State must from time to time—

(a) carry out a review of these Regulations;

(b) set out the conclusions of the review in a report; and

(c) publish the report.

(2) The report must in particular—

(a) set out the objectives intended to be achieved by these Regulations;

(b) assess the extent to which those objectives are achieved;

(c) assess whether those objectives remain appropriate and, if so, the extent to which they could be achieved in a less burdensome way.

(3) The first report under this regulation must be published before the end of the period of five years beginning with the day on which this regulation comes into force.

(4) Subsequent reports under this regulation must be published at intervals not exceeding five years.]

Textual Amendments

F18 Reg. 9 inserted (1.10.2016) by The Energy (Transfer of Functions, Consequential Amendments and Revocation) Regulations 2016 (S.I. 2016/912), regs. 1(1), 25(7)

Verma

Parliamentary Under Secretary of State

Department of Energy and Climate Change