The Scotland Act 2016, Wales Act 2017 and Onshore Petroleum (Consequential, Transitional and Saving Provisions and Model Clauses) Regulations 2018

EXPLANATORY NOTE

(This note is not part of the Regulations)

These Regulations make amendments and modifications to the existing regime for the licensing of petroleum consequent on sections 3 and 23 of, and Schedules 1 and 6 to, the Wales Act 2017 (c. 4) (“the 2017 Act”), which devolve legislative competence to the Welsh Assembly and transfer certain functions and powers to the Welsh Ministers for the granting and regulation of licences to search and bore for and get petroleum within the “Welsh onshore area” (as defined in section 23 of that Act), and related matters.

The Regulations also amend the Scotland Act 2016 and Onshore Petroleum (Consequential, Transitional and Saving Provisions and Model Clauses) Regulations 2018 (S.I. 2018/56) (“the Scottish Regulations”) which made similar provision in respect of petroleum licensing within the Scottish onshore area (as defined in section 47 of the Scotland Act 2016 (c.11)).

The Regulations come into force on 1st October 2018, which is the date of commencement of section 23 of, and Part 2 of Schedule 6 to, the 2017 Act. These Regulations also amend existing licences in the Welsh onshore area as provided for in section 24 of the 2017 Act and prescribe the model clauses relating to reserved matters which must be included in any licence granted by the Welsh Ministers (pursuant to section 4(1B) of the Petroleum Act 1998, as amended by paragraph 15 of Schedule 6 to the 2017 Act).

Part 2 amends secondary legislation relevant to the licensing of petroleum. Regulation 4(4) to (6) prescribes new model clauses relating to reserved matters for incorporation in licences granted by the Welsh Ministers. Regulations 2, 3, 4(2) and (3), 5 and 6 make consequential amendments to secondary legislation to reflect the transfer of functions to the Welsh Ministers. Regulation 7 amends the Scottish Regulations to reinstate clauses relating to the measurement of petroleum and keeping of accounts in existing licences and the model clauses for new licences.

Part 3 of these Regulations amends existing licences in the Welsh onshore area consequent on the division of competence between the Welsh Ministers and the Secretary of State and transfer of functions to the former (regulations 8 to 12).

Part 4 modifies the secondary legislation relevant to petroleum licensing in the Welsh onshore area until such time as the Welsh Ministers make their own legislation (regulations 13 to 15) and makes provision for savings (regulation 16).

A full regulatory impact assessment has not been produced for these Regulations as no impact on the private or voluntary sectors is foreseen.