40 Variation of decisions on claims for allowable expenditure.U.K.
(1)At the end of Schedule 5 to the principal Act (allowance of expenditure under section 3 or 4 of that Act) there shall be inserted the following paragraph—
“9(1)If, within the period of three years commencing with the date on which notice of a decision of the Board under paragraph 3 above was given to the responsible person for an oil field, it appears to the Board that the relevant amount was incorrectly stated in the notice, the Board may before the expiry of that period serve on the responsible person a notice stating what appears to the Board to be the correct amount (referred to below as “the notice of variation”).
(2)In this paragraph “the relevant amount”, in relation to a notice of a decision on a claim under paragraph 3 above, means any one or more of the following—
(a)the amount of expenditure allowed on the claim;
(b)the amount of that expenditure allowed as qualifying for supplement under section 2(9)(b)(ii) of this Act;
(c)where different percentages were stated in that notice to apply to different parts of that expenditure for the purpose of calculating the supplement, each of those parts of that expenditure.
(3)The responsible person may, by notice in writing given to the Board not more than thirty days after the notice of variation was served on him, appeal to the Special Commissioners against the notice of the variation.
(4)A notice of appeal under sub-paragraph (3) shall state the grounds on which the appeal is brought.
(5)An appeal under this paragraph may at any time be abandoned by notice in writing given to the Board by the responsible person.
(6)A notice of variation may be withdrawn at any time before it becomes effective.
(7)In any case where—
(a)the responsible person gives notice of appeal against a notice of variation, and
(b)before the appeal is determined by the Special Commissioners, the Board and the responsible person agree as to what the relevant amount ought to be,
the notice of variation shall have effect subject to such modifications as may be necessary to give effect to that agreement; and thereupon the appeal shall be treated as having been abandoned.
(8)On an appeal against a notice of variation the Special Commissioners may vary the notice, quash the notice or dismiss the appeal; and the notice may be varied whether or not the variation is to the advantage of all or any of the participators in the oil field in question.
(9)Where a notice of variation relating to a decision on a claim becomes effective, the relevant amount shall be taken for the purposes of this Part of this Act as having been reduced or increased, as the case may require, on the date on which notice of the decision was given, by such amount as may be necessary to give effect to that notice, and the Board may make such computations under section 2 of this Act and such assessments or determinations or such amendments of assessments or determinations as may be necessary in consequence of that reduction or increase.
(10)A notice of variation becomes effective for the purposes of this paragraph either—
(a)on the expiry of the period during which notice of appeal against the notice of variation may be given to the Special Commissioners under sub-paragraph (3) above without such notice of appeal being given; or
(b)where such notice of appeal is given, when the notice of variation can no longer be varied or quashed by the Special Commissioners or by the order of any court.
(11)This paragraph has effect in relation to notices of decisions of the Board under paragraph 3 above given after 15th March 1983.”
(2)In Schedule 6 to the principal Act (allowance of expenditure on claim by participator) at the end of the first column of the Table set out in paragraph 2 (application of provisions of Schedule 5) there shall be added “ 9 ”.
Modifications etc. (not altering text)
C1Part of the text of s. 40(1) is in the form in which it was originally enacted: it was not reproduced in Statutes in Force and does not reflect any amendments or repeals which may have been made prior to 1.2.1991