The Petroleum (Production) (Seaward Areas) Regulations 1988

Arbitration

43.—(1) If at any time any dispute, difference or question shall arise between the Minister and the Licensee as to any matter arising under or by virtue of this licence or as to their respective rights and liabilities in respect thereof then the same shall, except where it is expressly provided by this licence that the matter or thing to which the same relates is to be determined, decided, directed, approved or consented to by the Minister, be referred to arbitration as provided by the following paragraph.

(2) The arbitration referred to in the foregoing paragraph shall be in accordance with the Arbitration Act 1950 by a single arbitrator who, in default of agreement between the Minister and the Licensee and, in the case of arbitration in relation to a development scheme, other Licensees affected by that scheme, as to his appointment, shall be appointed by the Lord Chief Justice of England for the time being.

Note:Where the licensed area is situate in the Scottish area, as defined in the Civil Jurisdiction (Offshore Activities) Order 1987, paragraph(2A)following will be substituted for the foregoing paragraph(2).

Where the licensed area is situate in the Northern Irish area, as defined in the Civil Jurisdiction (Offshore Activities) Order 1987, paragraph(2B)following will be substituted for the foregoing paragraph(2).

(2A) The arbitration referred to in the foregoing paragraph shall be by a single arbiter who, in default of agreement between the Minister and the Licensee and, in the case of arbitration relating to a development scheme, other Licensees affected by that scheme, as to his appointment, shall be appointed by the Lord President of the Court of Session.

(2B) The arbitration referred to in the foregoing paragraph shall be in accordance with the Arbitration Act (Northern Ireland) 1937 by a single arbitrator who, in default of agreement between the Minister and the Licensee and, in the case of arbitration in relation to a development scheme, other Licensees affect by that scheme, as to his appointment, shall be appointed by the Lord Chief Justice of Northern Ireland for the time being.

(3) In the case of any such arbitration which relates to a development scheme the Licensee shall unless the arbitrator otherwise determines perform and observe the terms and conditions of the development scheme pending the decision of the arbitrator.

Note:In any licence incorporating paragraph(2A)in substitution for paragraph(2)of this clause, the paragraph(3A)following will be substituted for the foregoing paragraph(3).

(3A) In the case of any such arbitration which relates to a development scheme the Licensee shall unless the arbiter otherwise determines perform and observed the terms and conditions of the development scheme pending the decision of the arbiter.

Note:Schedules to each Licence will(1)identify the blocks to which the licence relates,(2)provide for the payment by the Licensee of sums which may include initial payments on the grant of the Licence and annual payments payable in advance,(3)specify the rate at which royalty is to be assessed and(4)set out working obligations.

Licences will be executed as deeds in duplicate by all parties thereto.