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Part VOil Taxation

63Blends of oil from two or more fields

(1)If, at any time prior to its disposal or relevant appropriation, oil won from an oil field is mixed with oil won from another oil field, the provisions of this section shall have effect to determine what is the share of a participator in one of those fields of the oil won from that field in any chargeable period ending after 1st January 1987; and in the following provisions of this section—

(a)"blended oil" means oil which has been so mixed; and

(b)"the originating fields" means the oil fields from which the blended oil is derived.

(2)If, for the purposes of commerce, blended oil is allocated to the participators in the originating fields in accordance with an agreed method, then, subject to the following provisions of this section, for the purposes of the oil taxation legislation, the blended oil which, in accordance with that method, is allocated to a participator in one of the originating fields in respect of any chargeable period shall be taken to be that participator's share of the oil won from that field in that period.

(3)With respect to any blended oil, each of the participators in the originating fields (either jointly or individually) shall, not later than 1st August 1987 or, if it is later, not later than thirty days after the date on which the first allocation is made in accordance with a particular method falling within subsection (2) above, furnish to the Board for the purposes of this section such details as may be prescribed with respect to that method and to the blended oil concerned; and if any participator fails to comply with this subsection he shall be liable—

(a)to a penalty not exceeding £500; and

(b)if the failure continues after it has been declared by the court or the Commissioners before whom proceedings for the penalty have been commenced, to a further penalty not exceeding £100 for each day on which the failure so continues;

except that a participator shall not be liable to a penalty under this subsection if the failure is remedied before proceedings for the recovery of the penalty are commenced.

(4)Where a participator in an oil field fraudulently or negligently furnishes any incorrect details for the purposes of this section, he shall be liable to a penalty not exceeding £2,500 or, in the case of fraud, £5,000.

(5)If, at any time after details with respect to a method of allocation have been furnished to the Board in accordance with subsection (3) above,—

(a)that method is in any respect changed, or

(b)there is a material change of any kind in the quantity or quality of any of the oil which makes up the blended oil,

any allocation made after that change shall be taken to be made in accordance with a new method of allocation.

(6)The provisions of Schedule 12 to this Act shall have effect for supplementing this section.

(7)In this section—

(a)"the oil taxation legislation" means Part I of the principal Act and any enactment construed as one with that Part; and

(b)"prescribed" means prescribed by the Board, whether before or after the passing of this Act.