The Petroleum Revenue Tax (Nomination Scheme for Disposals and Appropriations) Regulations 1987

Nominations of proposed transactions in blended oil having effect with respect to more than one field

20.—(1) This regulation prescribes the modifications subject to which Schedule 10 is to have effect in relation to a nomination of a proposed transaction in blended oil.

(2) In Schedule 10—

(a) “participator” shall include a person who is a participator in two or more fields;

(b) a participator’s share of oil won from an oil field shall be construed as meaning his share of blended oil won from the originating fields in which he is a participator; and

(c) a participator’s nominated transactions shall be construed as meaning transactions by him in blended oil which have been the subject of a nomination of a proposed transaction in blended oil.

(3) If a nomination of a proposed transaction in blended oil has been made by a person who is a participator in two or more fields, he may not make a nomination, having effect with respect to one of the originating fields, of a proposed sale, supply or appropriation of blended oil which is to have effect for any month in the chargeable period in which the proposed delivery month falls.

(4) A nomination of a proposed transaction in blended oil shall not be effective unless it specifies the originating fields in which the person making the nomination is a participator.

(5) Paragraph 5(1)(c) of Schedule 10 shall not be applicable in the case of a nomination of a proposed transaction in blended oil.

(6) For paragraph 8(2B)(c) of Schedule 10 there shall be substituted—

“(c) in any case where the nomination is of a proposed supply or a proposed appropriation of blended oil, having effect for all the originating fields in which the person making the nomination is a participator, and that person is the field operator for any of those fields or the operator of a relevant system, if he is of the opinion that the failure referred to in sub-paragraph (2A) above was caused by action necessarily taken by him in the interests of safety or the prevention of pollution or in accordance with good oil field practice.”

(7) For paragraph 8(2C)(a), (b) and (c)(1) of Schedule 10 there shall be substituted—

“(a) a person is the field operator for an originating field if, in relation to that field, he is the person having the function of organising or supervising operations for searching or boring for or getting oil in pursuance of a licence; and

(b) the expression “relevant system” is a reference to any system by which the blended oil in respect of which the nomination is made is transported, treated or stored prior to its disposal or relevant appropriation; and

(c) a person is an operator of a relevant system, as defined above, if he is the person charged, or principally charged, with the operation of the system;”.

(8) In order to determine a participator’s aggregate nominated proceeds for the purposes of section 61 of the Finance Act 1987—

(a) the amount resulting from the sum of the amounts referred to in sub-paragraphs (a) and (b) of paragraph 11(1)(2) of Schedule 10 shall be apportioned to the originating fields in which a person who has nominated transactions in blended oil is a participator in shares proportionate to the volumes of blended oil allocated in accordance with the agreed method referred to in section 63(3) of the Finance Act 1987 to the shares which he has in those fields; and

(b) the amount so apportioned shall be added to the amount (if any) of the aggregate nominated proceeds for that field computed in accordance with Schedule 10.

(1)

Paragraph 8(2C) was inserted by paragraph 3(1) of Schedule 8 to the Finance (No. 2) Act 1987 (c. 51).

(2)

Paragraph 11(1) was amended by paragraph 5(1) of Schedule 8 to the Finance (No. 2) Act 1987, but the amendment will only have effect with respect to chargeable periods ending after such date as the Treasury may by Order appoint.

(3)

Section 63 was amended by section 101(3) of the Finance (No. 2) Act 1987.