These Regulations make provision in respect of a levy and fees payable to the Oil and Gas Authority (“the OGA”).

Part 1 covers general introductory provisions.

Part 2 covers the OGA levy. Regulations 2 to 9 make provision for calculating and imposing a levy on the holders of petroleum licences in respect of the period beginning on 1st April 2023 and ending on 31st March 2024 (“the relevant charging period”). The levy is payable to meet costs incurred by the OGA in carrying out its functions as well as costs incurred by the Lord Chancellor in connection with the provision of Tribunals to consider appeals against the decisions of the OGA.

Regulation 3 sets out liability to pay the production levy for the relevant charging period. This is the highest rate of levy.

Regulation 4 sets out liability to pay the non-production levy. Paragraphs (2) and (3) provide that micro-enterprises holding promote or innovate licences at the relevant time in certain circumstances qualify to pay the non-production levy at discounted rates in respect of those licences.

Regulation 5 provides the methodology for calculating the production levy and the non-production levy.

Regulations 6 to 8 provide for the process by which licensees are notified as to the amount of levy payable, for interest to be payable on late payments, and for the OGA to be able to take action to recover any unpaid levy as a civil debt.

Regulation 9 requires the amount of the levy to be paid by licensees under regulations 3 and 4 to be adjusted if the total amount of levy to be recovered under these Regulations exceeds the leviable costs incurred by the OGA and the Lord Chancellor in respect of the relevant charging period. The OGA will credit the licensees appropriately should the amount of levy recovered exceed the leviable costs incurred by the OGA and Lord Chancellor in respect of the relevant charging period.

Part 3 covers OGA fees. Regulations 11 to 15 amend the Oil and Gas Authority (Fees) Regulations 2016 (S.I. 2016/904) (“the 2016 Regulation”). The amendments relate to fees charged by the OGA in connection with petroleum and the storage of carbon dioxide.

Regulation 11 amends regulation 2 of the 2016 Regulations (interpretation), so as to insert definitions of new terms relating to the storage of carbon dioxide.

Regulation 12 amends regulation 3 of the 2016 Regulations (applications of a prescribed description), so as to prescribe additional applications for which the OGA may charge a fee.

Regulation 13 amends regulation 4 of the 2016 Regulations (fees payable for consents and pipeline works authorisations) in two main ways.

Firstly, provision is made for three new types of application concerning carbon dioxide storage to be added to the list of applications in regulation 4(1) of the 2016 Regulations. The effect of this amendment is that the fee for each of these applications will be calculated using a daily rate in all cases, in accordance with the formula contained in regulation 4(3) of the 2016 Regulations (“the daily rate formula”).

Secondly, provision is made for four types of application concerning petroleum, which were previously covered by regulation 6 of the 2016 Regulations (fixed fees payable for other consents), to be added to the list of applications in regulation 4(2) of the 2016 Regulations. The effect of this amendment is that the fee for these applications will be calculated using the daily rate formula if the OGA determines that the application in question is a complex application (as per the amended definition of “complex application” in regulation 4(15) of the 2016 Regulations), or else will be a fixed fee (as per the amended table in regulation 4(13) of the 2016 Regulations).

Regulation 14 amends regulation 6 of the 2016 Regulations (fixed fees payable for other consents), so as to omit reference to the four fixed fees concerning petroleum which are being covered instead by regulation 4 of the 2016 Regulations, and to make provision for five new fixed fees concerning carbon dioxide storage licences.

Regulation 15 amends regulation 6C of the 2016 Regulations (fees payable for metering examinations and tests), so as to make provision for a new fixed fee relating to measurement and metering of a carbon dioxide injection.

A full impact assessment has not been produced for this instrument as no, or no significant, impact on the private, voluntary or public sectors is foreseen. An impact assessment was produced for the original levy regulations, namely the Oil and Gas Authority (Levy) Regulations 2015 (S.I. 2015/1661), and is available from the Department for Energy Security and Net Zero at 1 Victoria Street, London SW1H 0ET and on www.legislation.gov.uk.