The Offshore Gas Storage and Unloading (Licensing) Regulations 2009

Working obligations U.K.

7.—(1) If a Work Programme is set out in Schedule 4, the Licensee shall before the expiry of the Exploration Period carry out the Work Programme.

(2) If at any time the Minister serves a notice in writing on the Licensee requiring the Licensee to submit to the Minister, before a date specified in the notice, an appropriate programme for exploring for places for gas storage in the Licensed Area during a period so specified, the Licensee shall comply with the notice.

(3) For the purposes of paragraph (2)—

(a) an appropriate programme is one which any person who, if that person—

(i) were entitled to carry on the activities authorised by this licence; and

(ii) had the competence and resources needed to carry on those activities to the best commercial advantage; and

(iii) were seeking to carry on those activities to the best commercial advantage,

could reasonably be expected to carry out during the period specified in the notice; and

(b) the period so specified must be within the Licence Period.

(4) If a programme is submitted to the Minister in consequence of a notice served under paragraph (2), then—

(a) the Minister shall not be entitled to revoke this licence on the ground that the programme does not satisfy the requirements of that paragraph (“the Relevant Requirements”); but

(b) if the Minister is of the opinion that the programme does not satisfy the Relevant Requirements the Minister may serve a notice in writing on the Licensee stating that opinion and the reasons for it.

(5) Where notice in respect of a programme is served on the Licensee under paragraph (4) the Licensee shall either—

(a) within 28 days beginning with the date of service of the notice refer to arbitration the question whether the programme satisfies the Relevant Requirements; or

(b) within a reasonable period beginning with the date of service of such notice submit to the Minister a further programme which satisfies the Relevant Requirements,

and where it is determined in consequence of any reference to arbitration under sub-paragraph (a) of this paragraph that the programme in question does not satisfy the Relevant Requirements the Licensee shall submit to the Minister, as soon as possible after the date of the determination, a further programme which satisfies the Relevant Requirements.

(6) The Licensee shall carry out any programme submitted by him under this clause as to which either—

(a) the Minister serves notice in writing on the Licensee stating that the Minister approves the programme; or

(b) it is determined in consequence of any reference to arbitration that the programme satisfies the Relevant Requirements,

and any programme approved by the Minister under this paragraph shall be deemed for the purposes of this licence to satisfy the Relevant Requirements.

(7) Where, in consequence of any breach or non-observance by the Licensee of any provision of paragraph (2), (5) or (6), the Minister has power by virtue of clause 24(1) to revoke this licence, he may if he thinks fit exercise that power in relation to such part only of the Licensed Area as he may specify; and where he does so the authorisation granted by this licence shall cease in respect of the specified part of that area (but that does not affect any obligation imposed upon, or liability incurred by, the Licensee under the terms of this licence).

(8) Where the Licensee has a duty by virtue of this clause to carry out a programme during a part of the Licence Period, the Minister may serve notice under paragraph (2) in respect of another part of that period.

Commencement Information

I1 Sch. para. 7 in force at 13.11.2009, see reg. 1(1)