SCHEDULE 2 PRODUCTION LICENCES FOR SEAWARD AREAS
PART I FURTHER AMENDMENTS OF SCHEDULE 4 TO THE PETROLEUM (PRODUCTION) REGULATIONS 1966 AS AMENDED
7
(1)
“(2A)
Notwithstanding anything in the preceding provisions of this clause, the Licensee shall not—
(a)
flare any gas from the licensed area ; or
(b)
use gas for the purpose of creating or increasing the pressure by means of which petroleum is obtained from that area,
except with the consent in writing of the Minister and in accordance with the conditions, if any, of the consent.
(2B)
An application for consent in pursuance of paragraph (2A) of this clause must be made in writing to the Minister and must specify the date on which the Licensee proposes to begin the flaring or use in question ; and subject to paragraph (2C) of this clause that date must not be before the expiration of the period of two years beginning with the date when the Minister receives the application.
(2C)
If the Minister gives notice in writing to the Licensee stating that, in consequence of plans made by the Licensee which the Minister considers are reasonable, the Minister will entertain an application for consent in pursuance of paragraph (2A) of this clause which specifies a date after the expiration of a period mentioned in the notice which is shorter than the period mentioned in paragraph (2B) of this clause, an application made in consequence of the notice may specify, as the date on which the applicant proposes to begin the flaring or use in question, a date after the expiration of that shorter period.
(2D)
Before deciding to withhold consent or to grant it subject to conditions in pursuance, of paragraph (2A) of this clause, the Minister shall give the Licensee an opportunity of making representations in writing to the Minister about the technical and financial factors which the Licensee considers are relevant in connection with the case and shall consider any such representations then made to him by the Licensee.
(2E)
Consent in pursuance of paragraph (2A) of this clause shall not be required for any flaring which, in consequence of an event which the Licensee did not foresee in time to deal with it otherwise than by flaring, is necessary in order—
(a)
to remove or reduce the risk of injury to persons in the vicinity of the well in question ; or
(b)
to maintain a flow of petroleum from that or any other well ;
but when the Licensee does any flaring which is necessary as aforesaid he shall forthwith inform the Minister that he has done it and shall, in the case of flaring to maintain a flow of petroleum, stop the flaring upon being directed by the Minister to stop it.”
(2)
In paragraph (3) of the said clause 16, for the words “within three days of” there shall be substituted the words “forthwith after” and after the words “that event” there shall be inserted the words “and shall, forthwith after the occurrence of any event causing escape of petroleum into the sea, give notice of the event to the Chief Inspector of Her Majesty’s Coastguard”.
(3)
“(4)
The Licensee shall comply with any reasonable instructions from time to time given by the Minister with a view to ensuring that funds are available to discharge any liability for damage attributable to the release or escape of petroleum in the course of activities connected with the exercise of rights granted by this licence ; but where the Minister proposes to give such instructions he shall before giving them—
(a)
give the Licensee particulars of the proposal and an opportunity of making representations to the Minister about the proposal; and
(b)
consider any representations then made to him by the Licensee about the proposal.”