Regulation 5

SCHEDULE 1U.K.PROVISIONS TO BE INCLUDED IN A LICENCE

Grant of a storage permitU.K.

1.  If a storage permit is granted under a licence then, subject to regulation 12, paragraphs 2, 3 and 4 of this Schedule apply in respect of the storage site authorised under that storage permit.

Closure of storage site by the operatorU.K.

2.—(1) The operator must close the storage site where the conditions mentioned in regulation 8(1)(k) are met.

(2) The operator may close the storage site if—

(a)the consent of the authority has been given following an application under sub-paragraph (3), and

(b)any conditions attached to that consent have been met.

(3) An application for the authority's consent to the closure of the storage site must—

(a)be made in writing and sent to the [F1Oil and Gas Authority], and

(b)contain the reasons why the operator proposes to close the storage site.

(4) However, a storage site may not be closed under sub-paragraph (1) or (2) until the terms of the post-closure plan have been determined under regulation 13(3).

Textual Amendments

Post-closure planU.K.

3.—(1) Prior to the closure of the storage site in accordance with paragraph 1(1) or (2) of this Schedule, the operator must submit a proposed post-closure plan to the authority for approval.

(2) That proposal must be based on the provisional post-closure plan, subject to any modifications proposed by the operator.

(3) In deciding whether to propose any such modifications, the operator must take into account—

(a)an analysis of the relevant risks;

(b)current best practice; and

(c)any improvements in the available technology.

Post-closure obligationsU.K.

4.—(1) After the storage site has been closed and until the licence is terminated, the operator must continue to—

(a)monitor the storage site in accordance with paragraph 2 of Schedule 2,

(b)comply with its reporting and notification obligations in accordance with paragraph 3 of Schedule 2 (with the exception of sub-paragraph (5)(b)), and

(c)comply with its obligations to take corrective measures in accordance with paragraph 6 of Schedule 2.

(2) However, for those purposes any reference to the monitoring plan or the corrective measures plan is to be read as a reference to the post-closure plan.

(3) The operator must seal the storage site and remove the injection facilities in accordance with its obligations under Part 4 of the Petroleum Act 1998.

Extraction of stored CO2U.K.

5.  The operator must not (and must not permit any other person to) extract stored CO2 from the storage site except with the prior written consent of the authority and in accordance with any conditions subject to which any such consent is given.

[F2Change in control of licence holderU.K.

6.—(1) This paragraph applies if—

(a)the licence holder is a company, or

(b)where two or more persons are joint licence holders, any of those persons is a company,

and references in this paragraph to a company are to such a company.

(2) A change in control of a company is not permitted without the consent of the authority.

(3) There is a “change in control” of a company if a person takes control of the company, not having previously been a person who controlled the company.

(4) If a change in control of a company is contemplated, the company must apply in writing to the authority for consent at least three months before the date on which it is proposed that the change would occur (if consent were given).

(5) The authority may—

(a)consent to the change in control unconditionally,

(b)consent to the change in control subject to conditions, or

(c)refuse consent to the change in control.

(6) If the authority proposes to grant consent subject to any condition or to refuse consent, the authority must, before making a final decision—

(a)give the company an opportunity to make representations, and

(b)consider any representations that are made.

(7) The general rule is that the authority must decide an application within three months of receiving it, but the authority may delay its decision by notifying the interested parties in writing.

(8) Conditions as mentioned in sub-paragraph (5)(b) may be imposed on the person taking control of the company (as well as on the company), and may include—

(a)conditions relating to the arrangements for the change in control, including the date by which it must occur,

(b)conditions relating to the performance of activities permitted by the licence, and

(c)financial conditions.

(9) The authority’s decision on the application, and any conditions as mentioned in sub-paragraph (5)(b), must be notified in writing to the interested parties.

(10) In this paragraph “the interested parties” means—

(a)the company,

(b)the person who (if consent were granted) would take control of the company, and

(c)if the company is a joint licence holder with another person or other persons, that other person or those other persons.

(11) For the purposes of this paragraph, “control” of a company is to be construed in accordance with sections 450(2) to (4) and 451(1) to (5) of the Corporation Tax Act 2010, but read as if—

(a)for the words “the greater part” wherever they occur in section 450(3), there were substituted “one-third or more”,

(b)in section 451(4) and (5), for “may” there were substituted “must”, and

(c)in section 451(4) and (5), any reference to an associate of a person included only—

(i)a relative (as defined in section 448(2) of that Act) of the person,

(ii)a partner of the person, and

(iii)a trustee of a settlement (as defined in section 620 of the Income Tax (Trading and Other Income) Act 2005) of which the person is a beneficiary.

Textual Amendments

Revocation of licence re change in controlU.K.

7.—(1) This paragraph applies in connection with a change in control of a licence holder which is a company (see paragraph 6).

(2) In the event of—

(a)any breach or non-observance by the company of any of the terms of paragraph 6,

(b)any breach of a condition (imposed in accordance with paragraph 6) subject to which the authority gave its consent to a change in control of the company, or

(c)any failure to provide full and accurate information in response to a notice given by the authority to the company under section 29A,

the authority may, by giving the company and any joint licence holders notice in writing, revoke the licence with effect from the date specified in the notice.

Textual Amendments

Partial revocation of licence re change in controlU.K.

8.—(1) This paragraph applies if two or more persons are joint licence holders and any of them is a company.

(2) If an event mentioned in paragraph 7(2)(a), (b) or (c) occurs in connection with a change in control of the company, the authority may exercise the power in paragraph 7 to revoke the licence in so far as it applies to that company (without revoking it in so far as it applies to the other person or persons who are joint licence holders).]

Textual Amendments