Petroleum Act 1998

• Citation: 1998 c. 17
• Sections: 180

Section 1 Meaning of “petroleum”.

In this Part of this Act “ petroleum ”—

(a) includes any mineral oil or relative hydrocarbon and natural gas existing in its natural condition in strata; but

(b) does not include coal or bituminous shales or other stratified deposits from which oil can be extracted by destructive distillation.

Section 2 Rights to petroleum vested in Her Majesty.

(1) Her Majesty has the exclusive right of searching and boring for and getting petroleum to which this section applies.

(2) This section applies to petroleum (including petroleum in Crown land) which for the time being exists in its natural condition in strata in Great Britain or beneath the territorial sea adjacent to the United Kingdom.

(3) For the purposes of subsection (2), “ Crown land ” means land which—

(a) belongs to Her Majesty or the Duchy of Cornwall;

(b) belongs to a government department; or

(c) is held in trust for Her Majesty for the purposes of a government department.

(4) Subsection (1) is subject to paragraph 4 of Schedule 3 and subsection (2) is subject to paragraph 5(3) of that Schedule.

Section 3 Licences to search and bore for and get petroleum.

(1) The appropriate authority , on behalf of Her Majesty, may grant to such persons as the appropriate authority thinks fit licences to search and bore for and get petroleum to which this section applies.

(2) This section applies to—

(a) petroleum to which section 2 applies; and

(b) petroleum with respect to which rights vested in Her Majesty by section 1(1) of the Continental Shelf Act 1964 (exploration and exploitation of continental shelf) are exercisable.

(3) Any such licence shall be granted for such consideration (whether by way of royalty or otherwise) as the OGA with the consent of the Treasury may determine, and upon such other terms and conditions as the appropriate authority thinks fit.

(4) Subsection (1) is subject to paragraph 4 of Schedule 3.

Section 4 Licences: further provisions.

(1) The appropriate Minister shall make regulations prescribing—

(a) the manner in which and the persons by whom applications for licences under this Part of this Act may be made;

(b) the information to be included in or provided in connection with any such application;

(c) the fees to be paid on any such application;

(d) the conditions as to the size and shape of areas in respect of which licences may be granted;

(e) model clauses which shall, unless the appropriate authority thinks fit to modify or exclude them in any particular case, be incorporated in any such licence.

(1A) The Scottish Ministers or the Welsh Ministers may not make regulations under subsection (1)(e) prescribing model clauses that may be prescribed under subsection (1B).

(1B) The Secretary of State may make regulations prescribing model clauses on the consideration payable for a licence granted by the Scottish Ministers or the Welsh Ministers , and the following so far as they relate to such consideration—

(a) the measurement of petroleum obtained from the licenced area (including the facilitation of such measurement);

(b) the keeping of accounts;

(c) cancellation of a licence by the Secretary of State if there has been a failure to pay consideration or to comply with a clause on a matter falling within paragraph (a) or (b).

(1C) Model clauses prescribed under subsection (1B) shall, unless the Secretary of State thinks fit to modify or exclude them in any particular case, be incorporated in any licence granted by the Scottish Ministers or the Welsh Ministers .

(2) Different regulations may be made for different kinds of licence.

(3) Any regulations made by the Secretary of State shall be made by statutory instrument which shall be subject to annulment in pursuance of a resolution of either House of Parliament.

(3ZA) Before making regulations under this section the Secretary of State must consult the OGA.

(3A) Any regulations made by the Scottish Ministers shall be subject to the negative procedure (see section 28 of the Interpretation and Legislative Reform (Scotland) Act 2010).

(3B) Any regulations made by the Welsh Ministers shall be made by statutory instrument which shall be subject to annulment in pursuance of a resolution of the National Assembly for Wales.

(4) As soon as practicable after granting a licence under section 3, the OGA shall publish notice of the fact in such manner as it thinks appropriate stating—

(a) the name of the licensee; and

(b) the situation of the area in respect of which the licence has been granted,

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(4A) As soon as practicable after granting a licence under section 3, the Scottish Ministers shall publish notice of the fact in the Edinburgh Gazette stating—

(a) the name of the licensee; and

(b) the situation of the area in respect of which the licence has been granted.

(4B) As soon as practicable after granting a licence under section 3, the Welsh Ministers shall publish notice of the fact in such manner as they think appropriate stating—

(a) the name of the licensee; and

(b) the situation of the area in respect of which the licence has been granted.

(5) Any information which the Commissioners of Inland Revenue possess in connection with petroleum won by virtue of a licence granted under section 3—

(a) may be disclosed by the Commissioners to the Secretary of State, or to an officer of his who is authorised by him to receive such information, in connection with provisions of the licence relating to royalty payments; but

(b) shall not be disclosed by a person to whom it is disclosed under paragraph (a) except—

(i) as authorised by the licence;

(ii) to a person to whom it could have been disclosed under paragraph (a); or

(iii) for the purposes of proceedings (which may be arbitration proceedings) in connection with the licence.

Section 4A Onshore hydraulic fracturing: safeguards

(1) The OGA must not issue a well consent for a well situated in the English onshore area that is required by an onshore licence for England or Wales unless the well consent imposes—

(a) a condition which prohibits associated hydraulic fracturing from taking place in land at a depth of less than 1000 metres; and

(b) a condition which prohibits associated hydraulic fracturing from taking place in land at a depth of 1000 metres or more unless the licensee has the Secretary of State's consent for it to take place (a “hydraulic fracturing consent”).

(1A) The Welsh Ministers must not issue a well consent for a well situated in the Welsh onshore area that is required by an onshore licence for England or Wales unless the well consent imposes—

(a) a condition that prohibits associated hydraulic fracturing from taking place in land at a depth of less than 1000 metres; and

(b) a condition that prohibits associated hydraulic fracturing from taking place in land at a depth of 1000 metres or more unless the licensee has the Welsh Ministers' consent for it to take place (a “hydraulic fracturing consent”).

(2) A hydraulic fracturing consent is not to be issued unless an application for its issue is made by, or on behalf of, the licensee.

(3) Where an application is made to the Secretary of State , the Secretary of State may not issue a hydraulic fracturing consent unless the Secretary of State—

(a) is satisfied that—

(i) the conditions in column 1 of the following table are met, and

(ii) the conditions in subsection (6) are met, and

(b) is otherwise satisfied that it is appropriate to issue the consent.

(3A) Where an application is made to the Welsh Ministers, the Welsh Ministers may not issue a hydraulic fracturing consent unless—

(a) they are satisfied that—

(i) the conditions in column 1 of the following table are met, and

(ii) the conditions in subsection (6) are met, and

(b) they are otherwise satisfied that it is appropriate to issue the consent.

(4) The existence of a document of the kind mentioned in column 2 of the table in this section is sufficient for the Secretary of State or the Welsh Ministers to be satisfied that the condition to which that document relates is met.

(5) But the absence of such a document does not prevent the Secretary of State or the Welsh Ministers from being satisfied that that condition is met.

(6) The conditions mentioned in subsection (3)(a)(ii) are—

(a) that appropriate arrangements have been made for the publication of the results of the monitoring referred to in condition 4 in the table;

(b) that a scheme is in place to provide financial or other benefit for the local area.

(7) A hydraulic fracturing consent may be issued subject to any conditions thought to be appropriate by the Secretary of State or the Welsh Ministers .

(8) A breach of such a condition is to be treated as if it were a breach of a condition of a well consent.

Section 4B Section 4A: supplementary provision

(1) “ Associated hydraulic fracturing ” means hydraulic fracturing of shale or strata encased in shale which—

(a) is carried out in connection with the use of the relevant well to search or bore for or get petroleum, and

(b) involves, or is expected to involve, the injection of—

(i) more than 1,000 cubic metres of fluid at each stage, or expected stage, of the hydraulic fracturing, or

(ii) more than 10,000 cubic metres of fluid in total.

(2) For the purposes of deciding the depth at which associated hydraulic fracturing is taking place in land—

(a) the depth of a point in land below surface level is the distance between that point and the surface of the land vertically above that point; and

(b) in determining what is the surface of the land, any building or other structure on the land, and any water covering the land, must be ignored.

(3) Subsections (1) and (2) apply for the purposes of section 4A and this section.

(4) The Secretary of State must, by regulations made by statutory instrument, specify—

(a) the descriptions of areas in the English onshore area which are “protected groundwater source areas”, and

(b) the descriptions of areas in the English onshore area which are “other protected areas”,

for the purposes of section 4A.

(5) A statutory instrument which contains regulations under subsection (4) may not be made unless a draft of the instrument has been laid before and approved by a resolution of each House of Parliament.

(6) The Secretary of State must lay a draft of the first such regulations before each House of Parliament on or before 31 July 2015.

(7) The Secretary of State must consult—

(a) the Environment Agency before making any regulations under subsection (4)(a) ... ;

(b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(7A) The Welsh Ministers may, by regulations made by statutory instrument, specify—

(a) the descriptions of areas in the Welsh onshore area that are “protected groundwater source areas”, and

(b) the descriptions of areas in the Welsh onshore area that are “other protected areas”,

for the purposes of section 4A.

(7B) A statutory instrument that contains regulations under subsection (7A) may not be made unless a draft of the instrument has been laid before and approved by a resolution of the National Assembly for Wales.

(7C) Before making regulations under subsection (7A)(a), the Welsh Ministers must consult the Natural Resources Body for Wales.

(8) These expressions have the meanings given—

“ development order ” has the meaning given in section 59 of the Town and Country Planning Act 1990;

“ environmental permit ” means a permit granted under regulation 13 of the Environmental Permitting (England and Wales) Regulations 2016 (S.I. 2016/1154) ;

“ hydraulic fracturing consent ” has the meaning given in subsection (1)(b);

“ licensee ” means the holder of the onshore licence for England or Wales;

“ local planning authority ” means—

the planning authority to which the application for the relevant planning permission was made (unless the Secretary of State or Welsh Ministers are responsible for determining the application), or

the Secretary of State or Welsh Ministers (if responsible for determining the application);

“ onshore licence for England or Wales ” means a licence granted under section 3 which authorises a person to search or bore for or get petroleum in those parts of the landward area (within the meaning of the Petroleum Licensing (Exploration and Production) (Landward Areas) Regulations 2014) that are in England or Wales or are beneath waters (other than waters adjacent to Scotland);

“ relevant environmental regulator ” means—

the Environment Agency, if the relevant well is situated in the English onshore area , or

the Natural Resources Body for Wales, if the relevant well is situated in the Welsh onshore area ;

“ relevant planning permission ” means planning permission to be granted, or granted, in respect of development which includes the relevant well;

“ relevant undertaker ” means the water undertaker or sewerage undertaker in whose area of appointment the relevant well is located;

“ relevant well ” means the well to which a well consent relates;

“ well consent ” means a consent in writing of the OGA or the Welsh Ministers to the commencement of drilling of a well.

(9) The power of the Secretary of State to make regulations under section 4 includes power to make such amendments of the definition of “onshore licence for England or Wales” in this section (as it applies to the English onshore area) as the Secretary of State considers appropriate in consequence of any other exercise of the power by the Secretary of State under section 4.

(9A) The power of the Welsh Ministers to make regulations under section 4 includes power to make such amendments of the definition of ““onshore licence for England and Wales”” in this section (as it applies to the Welsh onshore area) as they consider appropriate in consequence of any exercise by them of the power under section 4.

(10) The Secretary of State may, by regulations made by statutory instrument—

(a) make such amendments of column 2 of the table in section 4A as the Secretary of State considers appropriate as regards an application for a hydraulic fracturing consent in relation to land in the English onshore area , and

(b) make such other amendments of section 4A or this section as the Secretary of State considers appropriate in consequence of provision made under paragraph (a).

(11) A statutory instrument which contains regulations under subsection (10) may not be made unless a draft of the instrument has been laid before and approved by a resolution of each House of Parliament.

(12) The Welsh Ministers may, by regulations made by statutory instrument—

(a) make such amendments of column 2 of the table in section 4A as the Welsh Ministers consider appropriate as regards an application for a hydraulic fracturing consent in relation to land in the Welsh onshore area, and

(b) make such other amendments of section 4A or this section as the Welsh Ministers consider appropriate in consequence of provision made under paragraph (a).

(13) A statutory instrument that contains regulations under subsection (12) may not be made unless a draft of the instrument has been laid before and approved by a resolution of the National Assembly for Wales.

Section 5 Existing licences.

(1) In this section, the “ current model clauses ” means, in relation to any paragraph of Schedule 1, the model clauses which, immediately before the commencement of this Act, would be incorporated in a licence granted under section 2 of the Petroleum (Production) Act 1934 if the licence, when granted, had incorporated the model clauses mentioned in that paragraph.

(2) The reference in subsection (1) to the model clauses which, immediately before the commencement of this Act, would be incorporated in a licence is a reference to those model clauses as they would then have effect but as if any reference (however expressed) in a model clause to an enactment repealed and re-enacted by this Act were, or (where the context requires) included, a reference to the corresponding provision of this Act.

(3) For the purposes of subsection (2), any provision of a model clause which would have effect (or would have a particular effect) only in relation to a licence of a description of which none is in force immediately before the commencement of this Act shall be treated as not then having effect (or as not then having that effect).

(4) The Secretary of State shall, in an order made before the commencement of this Act, reproduce the current model clauses in relation to each paragraph of Schedule 1.

(5) Subject to subsections (7) and (8), any licence granted under section 2 of the Petroleum (Production) Act 1934 which—

(a) is in force immediately before the commencement of this Act; and

(b) when granted, incorporated any of the model clauses mentioned in any paragraph of Schedule 1,

shall on the commencement of this Act have effect as if it incorporated, in place of the relevant model clauses, the current model clauses reproduced in relation to that paragraph in the order under subsection (4).

(6) For the purposes of subsection (5), the relevant model clauses, in relation to any licence, are the model clauses which the licence incorporates immediately before the commencement of this Act other than any model clause which—

(a) was incorporated into the licence when it was granted; and

(b) is not within any paragraph of Schedule 1.

(7) Where immediately before the commencement of this Act any such licence incorporates model clauses subject to any amendment or modification, or with the omission of any model clause, the current model clauses reproduced under subsection (4) shall have effect in relation to that licence—

(a) subject to the same amendment or modification; or

(b) as the case may be, with the omission of the model clause corresponding to the model clause omitted from the licence.

(8) Where before the commencement of this Act model clauses (the “ substitute model clauses ”) set out in any regulations made under section 6 of the Petroleum (Production) Act 1934 have been substituted for the model clauses originally incorporated in any licence granted under section 2 of that Act, the licence shall be treated for the purposes of this section as if, when granted, it had incorporated the substitute model clauses.

(9) It is hereby declared that any provision incorporated in a licence by virtue of subsection (5) may be altered or deleted by deed executed by the appropriate authority and the licensee or, as respects Scotland, by an instrument subscribed or authenticated by the appropriate authority and the licensee in accordance with the Requirements of Writing (Scotland) Act 1995.

(10) Where any provision is replaced by virtue of subsection (5)—

(a) a reference in any document to that provision (or which immediately before the commencement of this Act is to be construed as a reference to that provision) shall, except so far as the nature of the document or context otherwise requires, be construed as a reference to the replacement; and

(b) anything done under or for the purposes of that provision shall, except where the context otherwise requires, be treated as having been done under or for the purposes of the replacement.

(11) The order to be made under subsection (4) shall be made by statutory instrument, shall be laid before Parliament after being made and shall come into force on the commencement of this Act.

Section 5A Rights transferred without the consent of appropriate authority

(1) This section applies if—

(a) a person is (or two or more persons are) the licensee in respect of a licence under section 2 of the Petroleum (Production) Act 1934 or section 3 above (“ the transferor ”),

(b) the transferor transfers a right granted by the licence, or derived from a right so granted, to another person (“ the transferee ”) after commencement in circumstances where the consent of the appropriate authority is required for the transfer, and

(c) that consent is not obtained.

(2) The appropriate authority may, by notice given to the transferor and the transferee, direct that the right is to revert to the transferor from a date specified in the notice.

(3) The date specified must not be earlier than the date on which the notice is given.

(4) Before giving a notice to a person under subsection (2), the appropriate authority must—

(a) notify the person of the proposal to give the notice, and

(b) give the person a reasonable period within which to make written representations.

(5) The appropriate authority may not give a notice under subsection (2) after the end of the period of 3 months beginning with the date on which the appropriate authority learns of the transfer.

(6) In this section—

“ commencement ” means the time when this section comes into force;

“ transfer ” does not include a transfer by way of security for a loan.

Section 5B Information

(1) The Commissioners for Her Majesty's Revenue and Customs may disclose to the appropriate authority information relating to the transfer of a right granted by a licence under section 2 of the Petroleum (Production) Act 1934 or section 3 above, or derived from a right so granted, for the purpose of enabling the appropriate authority to determine whether a transfer to which section 5A applies has taken place.

(2) This section applies despite any statutory or other restriction on the disclosure of information.

(3) Information disclosed under this section must not be further disclosed except—

(a) for the purpose mentioned in subsection (1), with the consent (which may be general or specific) of the Commissioners,

(b) in pursuance of an order of a court, or

(c) with the consent of each person to whom the information relates.

(4) A person who discloses information contrary to subsection (3) commits an offence if the identity of the person to whom the information relates—

(a) is specified in the disclosure, or

(b) can be deduced from it.

(5) It is a defence for a person charged with an offence under this section to prove that the person reasonably believed that—

(a) the disclosure was lawful, or

(b) the information had already and lawfully been made available to the public.

(6) A person guilty of an offence under this section is liable—

(a) on summary conviction, to imprisonment for a term not exceeding the general limit in a magistrates’ court or to a fine not exceeding the statutory maximum, or both, and

(b) on conviction on indictment, to imprisonment for a term not exceeding 2 years or to a fine, or both.

Section 5C Offences under section 5B: supplemental

(1) No proceedings for an offence under section 5B may be instituted in England and Wales except by or with the consent of the Director of Public Prosecutions.

(2) No proceedings for an offence under section 5B may be instituted in Northern Ireland except—

(a) by the Commissioners for Her Majesty's Revenue and Customs, or

(b) with the consent of the Director of Public Prosecutions for Northern Ireland.

(3) In the application of section 5B to Northern Ireland the reference in section 5B(6)(a) to 12 months is to be read as a reference to 6 months.

(4) In the application of section 5B to England and Wales in relation to an offence committed before 2 May 2022 the reference in section 5B(6)(a) to the general limit in a magistrates’ court is to be read as a reference to 6 months.

Section 5D OGA’s power to require information about change in control of licensee

(1) This section applies in relation to a licence granted (or having effect as if granted) by the OGA under this Part which includes provisions prohibiting a change in control of a licensee which is a company without the OGA’s consent.

(2) The OGA may by notice in writing require a person within subsection (3) to provide the OGA with any information that it requires for the purpose of exercising its functions in relation to a change or potential change in control of a licensee which is a company.

(3) The persons within this subsection are—

(a) the company;

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

(c) if the company and another person or persons are the licensee, that other person or those other persons;

(d) any person not within any of paragraphs (a) to (c) who appears to the OGA to have information that it requires as mentioned in subsection (2).

(4) The power conferred by this section does not include power to require the provision of any information that would be protected from disclosure or production in legal proceedings on grounds of legal professional privilege or, in Scotland, confidentiality of communications.

(5) Nothing in this section limits any power of the OGA to require information under—

(a) regulations under this Part, or

(b) the terms of a licence under this Part.

Section 6 Repayments for development.

(1) Where any person has paid to the Secretary of State a sum by way of royalty under the terms of a licence granted under section 3, the Secretary of State may with the approval of the Treasury repay to him the whole or a part of that sum if the Secretary of State considers it expedient to do so for the purpose of facilitating or maintaining the development of the petroleum resources of the United Kingdom.

(2) Where for any chargeable period for the purpose of a licence granted under section 3 any person has been required to deliver petroleum to the Secretary of State under the terms of that licence, subsection (1) shall have effect as if for that period that person had paid to the Secretary of State by way of royalty such sum, or (where he has been required to deliver some but not all of the petroleum which he could have been required to deliver) such additional sum, as he would have been required to pay under the terms of the licence if he had not been required to deliver the petroleum.

(3) Any repayment and right to a repayment under this section shall be disregarded for the purposes of income tax, corporation tax and petroleum revenue tax.

Section 7 Ancillary rights.

(1) Subject to the provisions of this section, the Mines (Working Facilities and Support) Act 1966 shall apply (in England and Wales and Scotland) for the purpose of enabling a person holding a licence under this Part of this Act to acquire such ancillary rights as may be required for the exercise of the rights granted by the licence.

(2) In its application for the purposes of this section, the Mines (Working Facilities and Support) Act 1966 shall have effect as if—

(a) references to a person having a right to work minerals included references to a person holding a licence under this Part of this Act;

(b) references to minerals included references to petroleum; ...

(c) references to the working of minerals included references to the getting, carrying away, storing, treating and converting of petroleum ; and

(d) references to the Secretary of State (or the Minister) in sections 4 and 9 of that Act included references to

(i) the Scottish Ministers, in relation to licences granted in relation to the Scottish onshore area, ...

(ia) the Welsh Ministers, in relation to licences granted in relation to the Welsh onshore area, and

(ii) the OGA, in relation to other licences .

(3) Without prejudice to the generality of subsection (1) of section 2 of the Mines (Working Facilities and Support) Act 1966, that Act shall have effect for the purposes of this section as if the ancillary rights mentioned in that subsection included—

(a) a right to enter upon land and to sink boreholes in the land for the purpose of searching for and getting petroleum; and

(b) a right to use and occupy land for—

(i) the erection of such buildings;

(ii) the laying and maintenance of such pipes; and

(iii) the construction of such other works,

as may be required for the purpose of searching and boring for and getting, carrying away, storing, treating and converting petroleum.

(4) Where an application is made to the court under the Mines (Working Facilities and Support) Act 1966 by virtue of this section—

(a) in deciding—

(i) whether to grant any right applied for; or

(ii) what terms and conditions, if any, should be imposed upon the grant of such a right,

the court shall have regard, among other considerations, to the effect on the amenities of the locality of the proposed use and occupation of the land in respect of which the right is applied for;

(b) in determining the amount of any compensation to be paid in respect of the grant of any right, an additional allowance of not less than 10 per cent. shall be made on account of the acquisition of the right being compulsory;

(c) the costs in connection with the application incurred by the applicant shall not be ordered to be paid by any person from whom a right is sought to be obtained; and

(d) the costs in connection with the application incurred by each person from whom a right is sought to be obtained shall be ordered to be paid by the applicant unless the court is satisfied that an unconditional offer in writing was made by the applicant to that person of a sum as compensation equal to or greater than the amount of any compensation awarded to him by the court.

Section 8 Power to inspect plans of mines.

(1) For the purpose of ascertaining on behalf of the appropriate authority the position of the workings, actual and prospective, of any mines or abandoned mines through or near which it is proposed to sink any borehole for the purpose of searching for or getting petroleum, any officer appointed by the appropriate authority shall have the same powers with respect to the production and inspection and the taking of copies of relevant documents as may under section 20 of the Health and Safety at Work etc. Act 1974 be exercised by an inspector acting for the purpose mentioned in subsection (1) of that section.

(2) For the purposes of subsection (1)—

(a) “ relevant documents ” means plans, sections, drawings or other similar documents which, by virtue of paragraph 16 of Schedule 3 to that Act of 1974, are required to be kept;

(b) “ an inspector ” means an inspector appointed under section 19 of that Act; and

(c) subsections (2) and (3) of section 19 of that Act shall be disregarded.

Section 8A Interpretation of Part 1

(1) This section applies for the purposes of this Part.

(1A) The “appropriate authority” means—

(a) in relation to the Scottish onshore area, the Scottish Ministers;

(aa) in relation to the Welsh onshore area, the Welsh Ministers;

(b) otherwise, the OGA.

(2) The “ appropriate Minister ” means—

(a) in relation to the Scottish onshore area, the Scottish Ministers;

(aa) in relation to the Welsh onshore area, the Welsh Ministers;

(b) otherwise, the Secretary of State.

(3) The Scottish onshore area is the area of Scotland that is within the baselines established by any Order in Council under section 1(1)(b) of the Territorial Sea Act 1987 (extension of territorial sea).

(4) In subsection (3) “ Scotland ” has the same meaning as in the Scotland Act 1998.

(5) The Welsh onshore area is the area of Wales that is within the baselines established by any Order in Council under section 1(1)(b) of the Territorial Sea Act 1987 (extension of territorial sea).

(6) In subsection (5) “ Wales ” has the same meaning as in the Government of Wales Act 2006.

(7) The English onshore area is the area of England and the sea adjacent to England that is within the baselines established by any Order in Council under section 1(1)(b) of the Territorial Sea Act 1987 (extension of territorial sea).

Section 9 Supplementary.

(1) Nothing in this Part of this Act shall be construed as imposing any liability on any person where in the course of mining or other lawful operations petroleum is set free.

(2) Nothing in this Part of this Act shall be construed as conferring, or as enabling the Secretary of State to confer, on any person, whether acting on behalf of Her Majesty or not, any right which he does not enjoy apart from this Part of this Act to enter on or interfere with land.

(3) The issue of an authorisation within the meaning of Part III of this Act shall be deemed not to derogate from a licence granted under section 3 which is for the time being in force.

Section 9A The principal objective and the strategy

(1) In this Part the “principal objective” is the objective of maximising the economic recovery of UK petroleum, in particular through—

(a) development, construction, deployment and use of equipment used in the petroleum industry (including upstream petroleum infrastructure), and

(b) collaboration among the following persons—

(i) holders of petroleum licences;

(ii) operators under petroleum licences;

(iii) owners of upstream petroleum infrastructure;

(iv) persons planning and carrying out the commissioning of upstream petroleum infrastructure.

(v) owners of relevant offshore installations.

(2) The OGA must produce one or more strategies for enabling the principal objective to be met.

(3) A strategy may relate to matters other than those mentioned in subsection (1)(a) and (b).

(4) For provision about producing and revising a strategy, see sections 9F and 9G.

Section 9B Exercise of certain functions of the OGA

The OGA must act in accordance with the current strategy or strategies when—

(a) exercising functions under the other Parts of this Act (except Part 4),

(b) exercising functions under Part 4 ... ,

(c) exercising functions under Chapter 3 of Part 2 of the Energy Act 2011 (upstream petroleum infrastructure),

(ca) exercising functions under Part 2 of the Energy Act 2016,

(d) exercising any function or using any power under a petroleum licence, and

(e) exercising any other function or using any power—

(i) to provide advice or assistance to another person, or

(ii) to acquire, use or supply information,

for the purpose of enabling the principal objective to be met.

Section 9C Carrying out of certain petroleum industry activities

(1) A person who is the holder of a petroleum licence must act in accordance with the current strategy or strategies when planning and carrying out activities as the licence holder.

(2) A person who is an operator under a petroleum licence must act in accordance with the current strategy or strategies when planning and carrying out activities as the operator under the licence.

(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(4) A person must act in accordance with the current strategy or strategies when planning and carrying out the commissioning of upstream petroleum infrastructure.

(5) A person who is the owner of—

(a) a relevant offshore installation, or

(b) upstream petroleum infrastructure,

must act in accordance with the current strategy or strategies when planning and carrying out the activities mentioned in subsection (6).

(6) Those activities are—

(a) the person's activities as the owner of the installation or infrastructure (including the development, construction, deployment and use of the infrastructure or installation);

(b) the abandonment or decommissioning of the installation or infrastructure.

(7) For the purposes of subsection (5), planning the activities mentioned in subsection (6)(b) includes the preliminary stage of—

(a) deciding whether or when to proceed with the proposed abandonment or decommissioning, and

(b) considering alternative measures to abandonment or decommissioning such as re-use or preservation.

Section 9D Reports by the Secretary of State

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Section 9E OGA's security and resilience functions

(1) This Part does not limit the exercise of the OGA's security and resilience functions.

(2) This Part is subject to the exercise of the security and resilience functions by the OGA .

(3) In this section “ security and resilience function ” means any function which relates to—

(a) the security of petroleum supplies, or

(b) the resilience of the petroleum industry.

Section 9F Producing and revising a strategy

(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(2) After the first strategy has been produced, the OGA may—

(a) produce a new strategy, or

(b) revise a current strategy,

whenever the OGA thinks appropriate.

(3) The OGA must review each current strategy before the end of each relevant four year period.

(4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(5) In this section “ relevant four year period ”, in relation to a current strategy, means a period of four years beginning with—

(a) the date on which the strategy was issued, or

(b) if later, the date on which the last review under subsection (3) was concluded.

Section 9G Procedure for producing and revising a strategy

(1) Before—

(a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(b) producing a new strategy, or

(c) revising a current strategy,

the OGA must prepare a draft of the strategy or revised strategy.

(2) The OGA must—

(a) consult such persons as the OGA thinks appropriate about the draft, and

(b) consider any representations made by them.

(3) If, after complying with that duty, the OGA decides to proceed with the draft (in its original form or with modifications), the OGA must send the draft to the Secretary of State.

(3A) The Secretary of State must either—

(a) lay a copy of the draft before each House of Parliament, or

(b) return the draft to the OGA and publish the Secretary of State's reasons for doing so.

(3B) The Secretary of State may return the draft to the OGA only if the Secretary of State thinks that—

(a) the OGA has failed to comply with subsection (2), or

(b) the strategy will not enable the principal objective to be met.

(4) Where a copy of the draft has been laid in accordance with subsection (3A)(a), the OGA may not take any further steps in relation to the draft if, within the 40 day period, either House resolves not to approve the draft (a “negative resolution”).

(5) If neither House passes a negative resolution, the OGA may issue the strategy or revised strategy in the form laid before Parliament.

(6) The strategy or revised strategy comes into force on the date specified by the OGA (which must not be before the date when it is issued).

(7) Subsection (4) does not prevent a new draft of a strategy or revised strategy from being laid before Parliament.

(8) In this section “ 40 day period ”, in relation to the draft of a strategy or revised strategy, means the period of 40 days beginning with the day on which the draft is laid before Parliament (or if the draft is not laid before each House on the same day, the later of the 2 days on which it is laid).

(9) For the purposes of calculating the 40 day period, no account is to be taken of any period during which Parliament is dissolved or prorogued or during which both Houses are adjourned for more than four days.

Section 9H “Upstream petroleum infrastructure” and its owners

(1) In this Part “ upstream petroleum infrastructure ” means anything that for the purposes of section 82(1) of the Energy Act 2011 is—

(a) a relevant upstream petroleum pipeline,

(b) a relevant oil processing facility, or

(c) a relevant gas processing facility,

if and in so far as it is used in relation to petroleum within subsection (2) (including such petroleum after it has been got).

(2) Petroleum is within this subsection if it is petroleum which for the time being exists in its natural condition in strata beneath—

(a) the territorial sea adjacent to Great Britain, or

(b) the sea in any area designated under section 1(7) of the Continental Shelf Act 1964.

(3) In this Part “ owner ”, in relation to upstream petroleum infrastructure, means—

(a) a person in whom the pipeline or facility is vested;

(b) a lessee and any person occupying or controlling the pipeline or facility; and

(c) any person who has the right to have things conveyed by the pipeline or processed by the facility.

Section 9I Other interpretation

In this Part—

“ current strategy ”, in relation to any particular time, means a strategy under section 9A(2) in force at that time;

“ offshore installation ” has the same meaning as in Part 4 (see section 44);

“ operator under a petroleum licence ” means a person who is responsible for organising or supervising any of the operations of searching for, boring for, or getting UK petroleum in pursuance of the petroleum licence;

“ owner ”, in relation to a relevant offshore installation, has the meaning given in section 9HA;

“ owner ”, in relation to upstream petroleum infrastructure, has the meaning given in section 9H;

“petroleum” has meaning given in section 1;

“ petroleum licence ” means a licence granted under—

section 3 of this Act, or

section 2 of the Petroleum (Production) Act 1934;

“ principal objective ” has the meaning given in section 9A;

“ relevant offshore installation ” has the meaning given in section 9HA;

“ relevant UK waters ” means—

the territorial sea adjacent to the United Kingdom, and

the sea in any area designated under section 1(7) of the Continental Shelf Act 1964;

“ submarine pipeline ” has the meaning given in section 45;

“ UK petroleum ” means petroleum which for the time being exists in its natural condition in strata beneath relevant UK waters;

“ upstream petroleum infrastructure ” has the meaning given in section 9H.

Section 9BA Exercise of certain functions of the Secretary of State

(1) The Secretary of State must act in accordance with the current strategy or strategies when exercising the functions mentioned in subsection (2).

(2) Those functions are functions under Part 4 to the extent that they concern reduction of the costs of abandonment of offshore installations and submarine pipelines (including the reduction of such costs by means of the timing of measures proposed in abandonment programmes and by the inclusion in such programmes of provision for collaboration with other persons).

Section 9HA “Relevant offshore installations” and their owners

(1) For the purposes of this Part an offshore installation is a relevant offshore installation if and in so far as it is used in relation to petroleum within subsection (2) (including such petroleum after it has been got).

(2) Petroleum is within this subsection if it is petroleum which for the time being exists in its natural condition in strata beneath—

(a) the territorial sea adjacent to Great Britain, or

(b) the sea in any area designated under section 1(7) of the Continental Shelf Act 1964.

(3) In this Part “ owner ”, in relation to a relevant offshore installation, means—

(a) a person in whom the installation is vested, and

(b) a lessee and any person occupying or controlling the installation.

Section 10 Application of criminal law etc.

(1) Her Majesty may by Order in Council provide that, in such cases and subject to such exceptions as may be prescribed by the Order, any act or omission which—

(a) takes place on, under or above an installation in waters to which this section applies or any waters within 500 metres of any such installation; and

(b) would, if taking place in any part of the United Kingdom, constitute an offence under the law in force in that part,

shall be treated for the purposes of that law as taking place in that part.

(2) Her Majesty may by Order in Council provide that, in such cases and subject to such exceptions as may be prescribed by the Order, a constable shall on, under or above any installation in waters to which this section applies or any waters within 500 metres of such an installation have all the powers, protection and privileges which he has in the area for which he acts as constable.

(3) Subsection (2) is without prejudice to any other enactment or rule of law affording any power, protection or privilege to constables.

(4) Where a body corporate is guilty of an offence by virtue of an Order in Council under this section and that offence is proved to have been committed with the consent or connivance of, or to be attributable to any neglect on the part of, any director, manager, secretary or other similar officer of the body corporate or any person who was purporting to act in any such capacity, he as well as the body corporate shall be guilty of that offence and shall be liable to be proceeded against and punished accordingly.

(5) Where the affairs of a body corporate are managed by its members, subsection (4) shall apply in relation to acts and defaults of a member in connection with his functions of management as if he were a director of the body corporate.

(6) Proceedings for anything that is an offence by virtue of an Order in Council under this section may be taken, and the offence may for all incidental purposes be treated as having been committed, in any place in the United Kingdom.

(7) The waters to which this section applies are—

(a) the territorial sea adjacent to the United Kingdom;

(b) waters in an area designated under section 1(7) of the Continental Shelf Act 1964; or

(c) waters in an area specified under subsection (8).

(8) Her Majesty may from time to time by Order in Council specify any area which—

(a) is in a foreign sector of the continental shelf; and

(b) comprises any part of a cross-boundary field,

as an area as respects which the powers conferred by this section and section 11 are exercisable.

(9) In this section—

“ cross-boundary field ” means a field that extends across the boundary between waters falling within paragraph (a) or (b) of subsection (7) and a foreign sector of the continental shelf;

“ field ” means a geological structure identified as such by Order in Council under subsection (8).

(10) This section applies to installations notwithstanding that they are for the time being in transit but does not apply to an installation that is a renewable energy installation (within the meaning of Chapter 2 of Part 2 of the Energy Act 2004) .

(11) A statutory instrument containing an Order in Council under this section shall be subject to annulment in pursuance of a resolution of either House of Parliament.

Section 11 Application of civil law.

(1) Her Majesty may by Order in Council , subject to subsection (4A) —

(a) provide that, in such cases and subject to such exceptions as may be prescribed by the Order, questions arising out of acts or omissions taking place on, under or above waters to which this section applies in connection with any activity mentioned in subsection (2) shall be determined in accordance with the law in force in such part of the United Kingdom as may be specified in the Order; and

(b) make provision for conferring jurisdiction with respect to such questions on courts in any part of the United Kingdom so specified.

(2) The activities referred to in subsection (1) are—

(a) activities connected with the exploration of, or the exploitation of the natural resources of, the shore or bed of waters to which this section applies or the subsoil beneath it; and

(b) without prejudice to the generality of paragraph (a), activities carried on from, by means of or on, or for purposes connected with, installations to which subsection (3) applies.

(3) This subsection applies to any installation which is or has been maintained, or is intended to be established, for the carrying on of any of the following activities, namely—

(a) the exploitation or exploration of mineral resources in or under the shore or bed of waters to which this section applies;

(aa) the exploration of any place in, under or over such waters with a view to the storage of gas in such a place;

(ab) the conversion of any place in, under or over waters to which this section applies for the purpose of storing gas;

(b) the storage of gas in, under or over such waters or the recovery of gas so stored;

(ba) the unloading of gas at any place in, under or over such waters;

(c) the conveyance of things by means of a pipe, or system of pipes, constructed or placed on, in or under the shore or bed of such waters; and

(d) the provision of accommodation for persons who work on or from an installation which is or has been maintained, or is intended to be established, for the carrying on of an activity within any of paragraphs (a) to (c) or this paragraph.

(3A) In subsection (3) references (in whatever form) to storing gas include storing gas with a view to its permanent disposal.

(4) The fact that an installation has been maintained for the carrying on of an activity within subsection (3) shall be disregarded for the purposes of that subsection if, since it was so maintained, it has been outside waters to which this section applies or has been maintained for the carrying on of an activity not falling within that subsection.

(4A) An Order in Council may not make provision under subsection (1) in relation to questions arising out of acts or omissions taking place in connection with any activity carried on in, under or over relevant Scottish waters with a view to, or in connection with, the storage of carbon dioxide.

(4B) In subsection (4A)—

(a) “ relevant Scottish waters ” means tidal waters, and parts of the sea, in or adjacent to Scotland up to the seaward limits of the territorial sea, and

(b) references to the storage of carbon dioxide do not include the use of carbon dioxide for a purpose ancillary to getting petroleum (within the meaning of section 1).

(5) Any jurisdiction conferred on a court under this section shall be without prejudice to any jurisdiction exercisable apart from this section by that or any other court.

(6) This section applies to installations notwithstanding that they are for the time being in transit.

(7) A statutory instrument containing an Order in Council under this section shall be subject to annulment in pursuance of a resolution of either House of Parliament.

(8) The waters to which this section applies are—

(a) tidal waters and parts of the sea in or adjacent to the United Kingdom up to the seaward limits of the territorial sea;

(b) waters in an area designated under section 1(7) of the Continental Shelf Act 1964;

(c) waters in an area specified under section 10(8); and

(d) in relation to installations which are or have been maintained, or are intended to be established, in waters within paragraph (a), (b) or (c), waters in a foreign sector of the continental shelf which are adjacent to such waters.

(9) In this section “ gas ” means—

(a) gas within the meaning of section 2(4) of the Energy Act 2008, or

(b) carbon dioxide.

Section 12 Prosecutions.

(1) Subject to subsection (2), this subsection applies to—

(a) any offence alleged to have been committed on, under or above an installation in waters to which section 10 applies or any waters within 500 metres of such an installation; and

(b) any offence committed on or as respects an aircraft which is not registered in the United Kingdom which is an offence created by virtue of paragraph 6(5) of Part III of Schedule 13 to the Civil Aviation Act 1982.

(2) Subsection (1) does not apply to any offence to which subsection (5) applies nor to any offence under, or under any provision which has effect under—

(a) the Customs and Excise Acts 1979, or any enactment to be construed as one with those Acts or any of them;

(b) except where it is created by virtue of paragraph 6(5) of Part III of Schedule 13 to the Civil Aviation Act 1982, that Act or any enactment to be construed as one with that Act;

(c) the Pilotage Act 1987;

(d) the Value Added Tax Act 1994 or any enactment to be construed as one with that Act;

(e) the Merchant Shipping Act 1995; or

(f) Part III or IV of this Act.

(3) No proceedings for an offence to which subsection (1) applies shall be instituted—

(a) in England and Wales, except by or with the consent of the Director of Public Prosecutions unless prosecution of the offence there requires the consent of the Attorney General;

(b) in Northern Ireland, except by or with the consent of the Director of Public Prosecutions for Northern Ireland unless prosecution of the offence there requires the consent of the Attorney General for Northern Ireland.

(4) Section 3 of the Territorial Waters Jurisdiction Act 1878 (restriction on prosecutions) shall not apply to any proceedings for an offence to which subsection (1) or (5) applies.

(5) This subsection applies to—

(a) any offence under section 23 of the Petroleum Act 1987 (safety zones); and

(b) any offence under any provision made under the Mineral Workings (Offshore Installations) Act 1971 which has effect by virtue of—

(i) paragraph (1) of regulation 6 (savings) of the Offshore Safety (Repeals and Modifications) Regulations 1993; or

(ii) paragraph (1) of regulation 6 (savings) of the Offshore Safety (Repeals and Modifications) Regulations (Northern Ireland) 1993.

Section 13 Interpretation of Part II.

(1) In this Part of this Act—

“ foreign sector of the continental shelf ” has the meaning given by section 48(1); and

“ installation ” includes any floating structure or device maintained on a station by whatever means.

(2) An Order in Council under section 126(2) of the Scotland Act 1998 (apportionment of sea areas) has effect for the purposes of this Part if, or to the extent that, the Order is expressed to apply—

(a) by virtue of this subsection, for the purposes of this Part, or

(b) if no provision has been made by virtue of paragraph (a), for the general or residual purposes of that Act.

Section 14 Construction and use of pipelines.

(1) No person shall—

(a) execute in, under or over any controlled waters any works for the construction of a pipeline; or

(b) use a controlled pipeline of which the construction was begun on or after 1st January 1976,

except in accordance with an authorisation given in writing by the OGA .

(2) In this Part of this Act—

“ controlled pipeline ” means so much of any pipeline as is in, under or over controlled waters; and

“ controlled waters ” means the territorial sea adjacent to the United Kingdom and the sea in any area designated under section 1(7) of the Continental Shelf Act 1964.

Section 15 Authorisations.

(1) Schedule 2 (applications for and issue of authorisations) shall have effect.

(2) The OGA shall not issue an authorisation to a person other than a body corporate.

(3) Any authorisation in respect of a controlled pipeline may contain such terms as the OGA thinks appropriate including in particular terms as to—

(a) the duration of the authorisation, including the method of ascertaining its duration;

(b) the persons or kinds of persons who are authorised to execute the works in question or to use the pipeline or are so authorised if the OGA consents to the execution of the works or the use of the pipeline by them;

(c) in the case of a works authorisation—

(i) the route of the pipeline (subject to subsection (3A)) ;

(ii) the boundaries within which any works may be executed in pursuance of the authorisation;

(iii) the design and capacity of the pipeline or of part of it; and (subject to subsection (3A))

(iv) the steps to be taken to avoid or reduce interference by the pipeline with fishing or with other activities connected with the sea or the sea bed or subsoil;

(d) the things authorised to be conveyed by the pipeline;

(e) the steps to be taken to ensure that funds are available to discharge any liability for damage attributable to the release or escape of any thing from the pipeline;

(f) the transactions relating to the pipeline which are not to be entered into, and the other things relating to the pipeline which are not to be done, without the consent of the OGA ;

(g) the persons who may be permitted to acquire an interest in the pipeline and who may not be permitted to retain such an interest;

(h) the operation of the pipeline, including the methods by which it is to be operated and the persons by whom it may be operated;

(i) the information to be provided in respect of the pipeline; and

(j) the giving by the OGA , with respect to matters specified in the authorisation, of directions which shall have effect as terms of the authorisation.

(3A) The power conferred by virtue of paragraph (c)(i) or (iii) of subsection (3) is not exercisable to the extent that the powers conferred by regulation 7 of the Storage of Carbon Dioxide (Access to Infrastructure) Regulations 2011 are exercisable.

(4) Unless the OGA considers that there are special circumstances by reason of which the duration of an authorisation should be limited, an authorisation shall provide for its duration to be unlimited subject to the following provisions of this Part of this Act.

(5) Subject to subsection (5A), subsection (6) applies where a works authorisation contains a term (the “ variation term ”) requiring that—

(a) the capacity of the controlled pipeline to which it relates or of any part of the pipeline shall be greater than that proposed in the application for the authorisation; or

(b) any of the route of the pipeline shall be different from that so proposed.

(5A) Subsection (6) does not apply where the term is a variation condition imposed by virtue of regulation 7 of the Storage of Carbon Dioxide (Access to Infrastructure) Regulations 2011.

(6) Where this subsection applies, the OGA may, subject to section 17(7) or 17G(6) of this Act or section 89(4) and (5) of the Energy Act 2011 , serve a notice in accordance with subsection (7) on—

(a) the holder of the authorisation; and

(b) any other person who made representations to the OGA that the capacity should be greater than that proposed as mentioned in subsection (5) or that any of the route should be different from that so proposed.

(7) A notice under subsection (6) shall—

(a) specify the sums or the method of determining the sums which the OGA considers should be paid to the holder by the other person for the purpose of defraying so much of the cost of constructing the pipeline as is attributable to the variation term;

(b) require the other person to make, within a specified period, arrangements which the OGA considers are appropriate to ensure that those sums will be paid to the holder if he constructs the pipeline or a relevant part of it in accordance with the variation term or satisfies the OGA that he will so construct it;

(c) provide that the holder may, if those arrangements are not made by the other person within the specified period, elect in the specified manner that—

(i) the variation term shall have effect with such modifications as are specified with a view to eliminating the consequences of the representations of the other person; and

(ii) the provisions included in the notice by virtue of paragraph (d) shall cease to have effect; and

(d) authorise the holder, if he satisfies the OGA that the pipeline or a relevant part of it has been or will be constructed in accordance with the variation term, to recover those sums from the other person.

(8) In subsection (7), “ specified ” means specified in the notice.

Section 16 Compulsory modifications of pipelines.

(A1) This section applies to controlled pipelines, other than those which are excepted from the operation of this section.

(A2) Controlled carbon dioxide pipelines are excepted from the operation of this section.

(A3) Pipelines that are relevant upstream petroleum pipelines for the purposes of section 82(1) of the Energy Act 2011 are excepted from the operation of this section.

(1) If in the case of a controlled pipeline it appears to the OGA , on the application of a person other than the owner of the pipeline—

(a) that the capacity of the pipeline can and should be increased by modifying apparatus and works associated with the pipeline; or

(b) that the pipeline can and should be modified by installing in it a junction through which another pipeline may be connected to the pipeline,

then, subject to section 17(8) or 17G(7) , the OGA may, after giving the owner of the pipeline an opportunity of being heard about the matter, serve on the owner and the applicant a notice in accordance with subsection (2).

(2) A notice under subsection (1) shall—

(a) specify the modifications which the OGA considers should be made in consequence of the application;

(b) specify the sums or the method of determining the sums which the OGA considers should be paid to the owner by the applicant for the purpose of defraying the cost of the modifications;

(c) require the applicant to make, within the period specified for the purpose in the notice, arrangements which the OGA considers appropriate to secure that those sums will be paid to the owner if he carries out the modifications or satisfies the OGA that he will carry them out;

(d) require the owner, if the applicant makes those arrangements within that period, to carry out the modifications within a period specified for the purpose in the notice; and

(e) authorise the owner, if he satisfies the OGA that he has carried out or will carry out the modifications, to recover those sums from the applicant.

(3) References in subsections (1) and (2) to modifications include, in the case of modifications of any apparatus and works, references to changes in, substitutions for and additions to the apparatus and works.

(4) For the purposes of section 14(1) a notice under subsection (1) of this section requiring a person to carry out modifications authorises him to carry out the modifications; but nothing in Schedule 2 shall apply to such a notice.

Section 17 Acquisition of rights to use pipelines.

(1) Subsections (2) and (3) apply where a person applies to the OGA for a notice under this section securing to the applicant a right to have conveyed, by a controlled pipeline of which he is not the owner, quantities specified in the application of things which are of a kind so specified and which the pipeline is designed to convey.

(1A) This section does not apply to—

(a) controlled petroleum pipelines;

(b) pipelines in, under or over the territorial sea adjacent to Great Britain which are used to convey gas directly from a terminal to a pipeline system operated by a gas transporter or to any premises;

(c) gas interconnectors (within the meaning of Part 1 of the Gas Act 1986).

(1B) This section also does not apply to controlled carbon dioxide pipelines.

(2) The OGA shall—

(a) give notice to the owner of the pipeline and the applicant that it proposes to consider the application; and

(b) after the expiry of 21 days beginning with the date on which notice under paragraph (a) was served, but before considering the application, give them an opportunity of being heard with respect to the application.

or to a gas interconnector (within the meaning of Part 1 of the Gas Act 1986).

(3) Where the OGA is satisfied that, if it served a notice under this section the pipeline in question could be operated in accordance with the notice without prejudicing its efficient operation for the purpose of conveying, on behalf of its owner, the quantities of permitted substances which the owner requires or may reasonably be expected to require, the OGA may serve such a notice on the owner and the applicant.

(4) In subsection (3), “ permitted substances ” means the things which may be conveyed by the pipeline in accordance with an authorisation (or, if no authorisation for the use of the pipeline is required by section 14(1), means the things which the pipeline is designed to convey).

(5) A notice under this section may contain such provisions as the OGA considers appropriate for any of the following purposes—

(a) to secure to the applicant, without prejudicing the efficient operation of the pipeline for the purpose mentioned in subsection (3), the right to have conveyed by the pipeline the quantities specified in the application of the things so specified;

(b) to secure that the exercise of the right is not prevented or impeded;

(c) to regulate the charges which may be made for the conveyance of things by virtue of the right; and

(d) to secure to the applicant the right to have a pipeline of his connected to the pipeline by the applicant or owner.

(6) Such a notice may also authorise the owner to recover from the applicant payments by way of consideration for any right mentioned in subsection (5)(a) or (d) of amounts specified in the notice or determined in accordance with the notice.

(7) Before serving a notice under section 15(6) on a person other than the holder of the relevant authorisation, the OGA shall give that person an opportunity to make an application under subsection (1) in respect of the proposed pipeline to which the authorisation relates; and subsections (1) to (6) shall have effect for this purpose as if references to a pipeline and the owner of it were references to the proposed pipeline and the proposed owner of it.

(8) Before serving a notice under section 16(1) on a person other than the owner of the relevant pipeline, the OGA shall give that person particulars of the modifications which it proposes to specify in the notice and an opportunity to make an application under subsection (1) in respect of the pipeline; and subsections (1) to (6) shall have effect for this purpose as if references to a pipeline were references to the pipeline as it would be with those modifications.

(9) The use of a pipeline by any person in accordance with a right secured to him by virtue of this section is not a contravention of section 14(1); but a person to whom a right is so secured may not assign the right to any other person.

Section 17A Application of section 17B to certain downstream gas pipelines.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Section 17B Additional provisions relating to certain downstream gas pipelines.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Section 17C Application of section 17D to certain offshore gas storage facilities.

(1) Section 17D applies to an offshore gas storage facility unless, or except to the extent that, its capacity is exempt under this section .

(2) A person who is or expects to be an owner of an offshore gas storage facility may apply in writing to the Director for an exemption with respect to the facility .

(3) An exemption shall be given in writing and may be given—

(a) so as to have effect for an indefinite period or for a period specified in, or determined under, the exemption;

(b) unconditionally or subject to such conditions as the Director considers appropriate.

(c) so as to have effect—

(i) in the case of a facility other than a new facility, in relation to the whole of the capacity of the facility; or

(ii) in the case of a new facility, in relation to the whole of the capacity of the facility or any significant increase in the capacity of the facility.

(4) An exemption may contain provision for its revocation.

(5) The Authority shall give an exemption with respect to a facility (other than a new facility) where it is satisfied that use of the facility by other persons is not necessary for the operation of an economically efficient gas market.

(5A) The Authority shall give an exemption with respect to a new facility where it is satisfied that either—

(a) use of the facility by other persons is not necessary for the operation of an economically efficient gas market; or

(b) the requirements of subsection (5C) are met.

(5B) In respect of a facility which is or is to be modified to provide for a significant increase in its capacity, an exemption by virtue of subsection (5A)(b) may only be given in relation to that increase in its capacity.

(5C) The requirements of this subsection are that—

(a) the facility or (as the case may be) the significant increase in its capacity will promote security of supply;

(b) the level of risk is such that the investment to construct the facility or (as the case may be) to modify the facility to provide for a significant increase in its capacity would not be or would not have been made without the exemption;

(c) the facility is or is to be owned by a person other than the gas transporter who operates or will operate the pipeline system connected or to be connected to the facility;

(d) charges will be levied on users of the facility or (as the case may be) the increase in its capacity;

(e) the exemption will not be detrimental to competition, the operation of an economically efficient gas market or the efficient functioning of the pipeline system connected or to be connected to the facility; and

(f) the Commission of the European Communities is or will be content with the exemption.

(5D) Subject to subsection (5E), an exemption may not be given by virtue of subsection (5A)(b) more than once in respect of the same facility.

(5E) Subsection (5D) does not prevent a further exemption being given by virtue of subsection (5A)(b) in respect of a facility if—

(a) the facility is or is to be modified to provide for a significant increase in its capacity

(b) the exemption has effect only in relation to that increase in its capacity; and

(c) no previous exemption has been given by virtue of subsection (5A)(b) in relation to that increase in its capacity.

(5F) The Authority shall publish its decision to give or refuse to give an exemption together with the reasons for its decision in such manner as it considers appropriate.

(7) In this section and sections 17D and 17E—

(a) “the Authority” means the Gas and Electricity Markets Authority;

(b) “owner”, in relation to an offshore gas storage facility, includes any person occupying or having control of the facility.

Section 17D Provisions relating to certain offshore gas storage facilities.

(1) The owner of an offshore gas storage facility to which this section applies (a “relevant facility”)—

(a) shall publish at least once in every year the main commercial conditions relating to the grant to another person of a right to have gas stored in the facility on that person’s behalf; and

(b) shall publish any changes to the published conditions as soon as they become effective.

(2) In subsection (1) “year” means any year ending with 9th August.

(3) The owner of a relevant facility shall ensure that the conditions which he is required to publish under subsection (1) do not discriminate against any applicants or descriptions of applicants, or any potential applicants or descriptions of potential applicants, for a right to have gas stored in the facility.

(4) Any person who seeks a right to have gas stored on his behalf in a relevant facility (“the applicant”) shall, before making an application to the Director under subsection (8), apply to the owner of the facility for the right.

(5) An application under subsection (4) shall be made by giving notice to the owner specifying what is being sought.

(6) Such a notice shall, in particular, specify—

(a) the period during which the gas is to be stored in the facility;

(b) the kind of gas to be stored (which must be of, or similar to, the kind which the facility is designed to store); and

(c) the quantities of gas to be stored.

(7) Where an applicant gives a notice under subsection (5), he and the owner of the facility shall negotiate in good faith and endeavour to reach agreement on the application.

(8) If the owner and the applicant do not reach any such agreement, the applicant may apply to the Director for a notice under subsection (11) securing to the applicant the right specified in the notice given under subsection (5).

(9) The Director shall not entertain an application under subsection (8) unless he is satisfied that the parties have had a reasonable time in which to fulfil their duties under subsection (7).

(10) Where a person applies to the Director under subsection (8) and the Director is satisfied as mentioned in subsection (9), the Director shall—

(a) give notice to the owner of the facility and the applicant that he proposes to consider the application; and

(b) after the expiry of 21 days beginning with the date on which notice under paragraph (a) was served, but before considering the application, give them an opportunity of being heard with respect to the application.

(11) Where the Director is satisfied that, if he served a notice under this subsection, the relevant facility in question could be operated in accordance with the notice without prejudicing its efficient operation for the purpose of storing, on behalf of its owner, the quantities of gas which the owner requires or may reasonably be expected to require, the Director may serve such a notice on the owner and the applicant.

(12) A notice under subsection (11) may contain such provisions as the Director considers appropriate for any of the following purposes—

(a) for securing to the applicant the right to have stored in the facility, for the period specified in the notice and in the quantities so specified or determined by or under the notice, gas which is of a kind so specified;

(b) to secure that the exercise of the right is not prevented or impeded;

(c) to regulate the charges which may be made for the storage of gas by virtue of that right; and

(d) to secure to the applicant such ancillary or incidental rights as may be necessary or expedient (which may, in particular, include a right to have a pipeline of his connected to the facility by the owner).

(13) A notice under subsection (11) may also authorise the owner to recover from the applicant payments by way of consideration for any right mentioned in subsection (12)(a) or (d) of amounts specified in the notice or determined in accordance with the notice.

Section 17E Section 17D: supplemental.

(1) For the purpose of considering an application under section 17D(8), the Director may by notice require the owner to provide him with accounting information and details of the main commercial terms of any significant transactions with associated undertakings.

(2) Owners of relevant facilities shall keep their internal accounts in such manner as will enable them to provide accounting information if required to do so by notice under subsection (1).

(3) The Director shall not disclose to any person information obtained under subsection (1) without the consent of the person by or on behalf of whom it was provided, unless he is required to do so by virtue of any obligation imposed on him by or under any enactment.

(4) Any reference in this section to a right to have gas or gas of any kind stored in a relevant facility includes a reference to a right to introduce into, or take out of, such a facility gas or gas of that kind.

(5) In section 17D “main commercial conditions” means—

(a) such information as would enable a potential applicant for a right to have gas stored in a relevant facility to make a reasonable assessment of the cost of, or the method of calculating the cost of, acquiring that right;

(b) the other significant terms on which such a right would be granted; and

(c) such other information as the Director may from time to time specify by notice.

(6) In this section—

“accounting information” means such accounting records as would be required by section 386 of the Companies Act 2006 in respect of the storage activities undertaken by an owner of a relevant facility, if those activities were the only business undertaken by the owner and the owner were a person to whom that section applied; and

“significant transaction” means—

any transaction which relates to rights to have gas stored in a relevant facility; or

any other transaction which is of a description specified by the Director from time to time by notice.

(7) For the purposes of this section an undertaking is an associated undertaking of another undertaking if one of the undertakings has control of the other, or both undertakings are under the control of the same person or persons; and sections 450 and 451(1) to (3) of the Corporation Tax Act 2010 shall apply with any necessary modifications for the purposes of this subsection as they apply for the purposes of Part 10 of that Act.

Section 17F Acquisition of rights to use controlled petroleum pipelines.

(1) This section applies to controlled petroleum pipelines in, under or over the territorial sea adjacent to Northern Ireland .

(2) Any person who seeks a right to have things conveyed by a controlled petroleum pipeline of which he is not the owner (“the applicant”) shall, before making an application to the OGA under subsection (5), apply to the owner of the pipeline for the right.

(3) An application under subsection (2) shall be made by giving notice to the owner specifying what is being sought.

(4) Such a notice shall, in particular, specify—

(a) the kind of things to be conveyed (which must be of a kind the pipeline is designed to convey); and

(b) the quantities to be conveyed.

(5) If the owner and the applicant do not reach agreement on the application, the applicant may apply to the OGA for a notice under subsection (9) securing to the applicant the right to have conveyed by the pipeline in respect of which he has made an application to the owner under subsection (2) the quantities specified in the notice under subsection (3) of things of a kind so specified.

(6) The OGA shall not entertain an application under subsection (5) unless it is satisfied that the parties have had a reasonable time in which to reach agreement between themselves on the application under subsection (2).

(7) Where a person applies to the OGA under subsection (5) and the OGA is satisfied as mentioned in subsection (6), the OGA shall—

(a) give notice to the owner of the pipeline and the applicant that it proposes to consider the application; and

(b) after the expiry of 21 days beginning with the date on which notice under paragraph (a) was served, but before considering the application, give them an opportunity of being heard with respect to the application.

(8) When considering the application, the OGA shall (so far as relevant) take into account—

(a) capacity which is or can reasonably be made available in the pipeline in question;

(b) any incompatibilities of technical specification which cannot reasonably be overcome;

(c) difficulties which cannot reasonably be overcome and which could prejudice the efficient, current and planned future production of petroleum;

(d) the owner’s reasonable needs for the transport and processing of petroleum;

(e) the interests of all users and operators of the pipeline;

(f) the need to maintain security and regularity of supplies of petroleum; and

(g) the number of parties involved in the dispute.

(9) Where the OGA is satisfied that, if it served a notice under this subsection, the pipeline in question could be operated in accordance with the notice without prejudicing its efficient operation for the purpose of conveying, on behalf of its owner, the quantities of permitted substances which the owner requires or may reasonably be expected to require, the OGA may serve such a notice on the owner and the applicant.

(10) A notice under subsection (9) may contain such provisions as the OGA considers appropriate for any of the following purposes—

(a) to secure to the applicant the right to have conveyed by the pipeline the quantities specified in the notice under subsection (3) of the things of a kind so specified;

(b) to secure that the exercise of the right is not prevented or impeded;

(c) to regulate the charges which may be made for the conveyance of things by virtue of the right; and

(d) to secure to the applicant the right to have a pipeline of his connected to the pipeline by the applicant or owner.

(11) A notice under subsection (9) may also authorise the owner to recover from the applicant payments by way of consideration for any right mentioned in subsection (10)(a) or (d) of amounts specified in the notice or determined in accordance with the notice.

Section 17G Section 17F: supplemental.

(1) Where an application is made to the OGA under section 17F(5) in respect of a pipeline which is situated partly in, under or over the territorial sea adjacent to Northern Ireland and partly in a foreign sector of the continental shelf, the OGA shall consult the relevant authorities in the other country with respect to the application before considering it itself .

(2) For the purpose of considering an application under section 17F(5), the OGA may by notice require the owner or the applicant to provide it with such information relevant to the application as may be specified or described in the notice.

(3) The information mentioned in subsection (2) may, in particular, include financial information relevant to the owner’s or the applicant’s activities with respect to petroleum production projects and controlled petroleum pipelines.

(4) The OGA shall not disclose to any person any information obtained under subsection (2) without the consent of the person by or on behalf of whom it was provided, unless it is required to do so by virtue of any obligation imposed on it by or under any enactment.

(5) In section 17F(9), “permitted substances” means the things which may be conveyed by the pipeline in accordance with an authorisation (or, if no authorisation for the use of the pipeline is required by section 14(1), means the things which the pipeline is designed to convey).

(6) Before serving a notice under section 15(6) on a person other than the holder of the relevant authorisation, the OGA shall give that person an opportunity to make applications under section 17F in respect of the proposed pipeline to which the authorisation relates; and section 17F and subsections (1) to (5) above shall have effect for this purpose as if references to a pipeline and the owner of it were references to the proposed pipeline and the proposed owner of it.

(7) Before serving a notice under section 16(1) on a person other than the owner of the relevant pipeline, the OGA shall give that person particulars of the modifications which it proposes to specify in the notice and an opportunity to make applications under section 17F in respect of the pipeline; and section 17F and subsections (1) to (5) above shall have effect for this purpose as if references to a pipeline were references to the pipeline as it would be with those modifications.

(8) The use of a pipeline by any person in accordance with a right secured to him by the OGA by virtue of section 17F is not a contravention of section 14(1); but a person to whom a right is so secured may not assign the right to any other person.

Section 17H Enforcement of certain duties in sections 17B, 17D and 17E. Enforcement of duty in section 17GA

(1) The obligation to comply with any notice under section 17D(11) or with a notice given under subsection (6) of section 17GA in a case falling within subsection (7) of that section and the obligation to comply with any duty in section 17B(6) or section 17D(7) shall be duties a duty owed to any person who may be affected by a failure to comply with them it .

(2) Where a duty is owed by virtue of subsection (1) to any person, any breach of the duty which causes that person to sustain loss or damage shall be actionable at the suit or instance of that person.

(3) In any proceedings brought against a person in pursuance of subsection (2), it shall be a defence for him to prove that he took all reasonable steps and exercised all due diligence to avoid contravening the duty.

(4) Compliance with the duties in sections 17B(1) and (3), 17D(1) and (3) and 17E(2) shall be enforceable by civil proceedings by the Secretary of State for an injunction or interdict or other appropriate relief or remedy.

Section 17GA Controlled petroleum pipeline subject to Norwegian access system

(1) This section applies to any controlled petroleum pipeline which, under the terms of the Framework Agreement, is subject to a system whereby any terms or conditions on which persons who are not the owner of the pipeline are entitled to have things conveyed by it are determined according to the law of, or by the relevant authority of, the Kingdom of Norway.

(2) Where—

(a) under the terms of the Framework Agreement, any term or condition on which a person who is not the owner of a pipeline is entitled to have conveyed by the pipeline any petroleum originating wholly or partly from an area designated under section 1(7) of the Continental Shelf Act 1964 has been determined according to the law of, or by the relevant authority of, the Kingdom of Norway, and

(b) a dispute has arisen between the person mentioned in paragraph (a) and the owner as to whether the owner has complied with any term or condition so determined,

the person mentioned in paragraph (a) may apply to the OGA for a determination under subsection (6).

(3) An application under subsection (2) shall specify the terms and conditions in dispute and the applicant’s reasons for considering that the owner has failed to comply with them.

(4) The applicant shall give notice of the application to the owner of the pipeline.

(5) Where a person applies to the OGA under subsection (2), the OGA shall—

(a) give notice to the owner of the pipeline and the applicant that it proposes to consider the application; and

(b) after the expiry of 21 days beginning with the date on which notice under paragraph (a) was served, but before considering the application, give them an opportunity of being heard with respect to the application.

(6) The OGA shall determine whether or not the owner has complied with the terms and conditions in question, and shall give notice of that determination to the owner and the applicant.

(7) Where the OGA determines that the owner has not so complied, the notice shall state what the owner is required to do (or as the case may be, to refrain from doing) in order to comply with the terms and conditions in question.

(8) Where the Framework Agreement so requires, the OGA shall make its determination and issue the notice under subsection (6) jointly with the relevant authority of the Kingdom of Norway.

(9) In this section and section 17GB “the Framework Agreement” means the Framework Agreement concerning cross-boundary petroleum co-operation dated 4th April 2005 and made between the government of the United Kingdom and the government of the Kingdom of Norway.

Section 17GB Section 17GA: supplemental

(1) For the purpose of considering an application under section 17GA(2), the OGA may by notice require the owner or the applicant to provide it with such information relevant to the application as may be specified or described in the notice.

(2) The OGA shall not disclose to any person any information obtained under subsection (1) without the consent of the person by or on behalf of whom it was provided, unless the disclosure is required by virtue of any obligation imposed ... by or under the Framework Agreement or by or under any enactment.

Section 18 Termination of authorisations.

(1) An authorisation shall cease to be in force at the earliest of the following—

(a) where the duration of the authorisation is not expressed to be unlimited, the time at which that duration expires as specified by or ascertained under the terms of the authorisation;

(b) the time (if any) agreed in writing by the holder and the OGA as the time at which the authorisation is to cease to be in force; and

(c) the time specified in a notice under subsection (2) or (6).

(2) If it appears to the OGA that the execution of works authorised by a works authorisation has not been begun at the expiry of the period specified in subsection (3), it shall serve on the holder a notice stating that the authorisation is to cease to be in force at a time specified in the notice.

(3) The period referred to in subsection (2) is—

(a) the period of three years beginning with the date when the authorisation is expressed to come into force; or

(b) such longer period beginning with that date as the OGA has, on the application of the holder, specified in a notice served under this paragraph on the holder during the period mentioned in paragraph (a).

(4) For the purpose of subsection (2), the OGA shall disregard the execution of any of the works which it considers should be disregarded for that purpose.

(5) The OGA shall not serve a notice under subsection (3)(b) unless—

(a) it is satisfied that notice of the application under that provision has been served on—

(i) the persons on whom, in accordance with Schedule 2, notice of the application for the authorisation was served or such of them as the OGA considers appropriate in the circumstances; and

(ii) such other persons, if any, as it considers appropriate in the circumstances; and

(b) it has considered any written representations about the application under subsection (3)(b) made during such a period as it considers reasonable by any of the persons on whom notice of the application was served in accordance with paragraph (a).

(6) Subject to subsections (7) and (8), if the OGA considers that the holder of an authorisation—

(a) has contravened a term of the authorisation; or

(b) has contravened any provision of a notice which, under section 16, 17 or 17F(9) of this Act or section 82(11) of the Energy Act 2011 , was served on him in his capacity as the owner of the pipeline (or the proposed owner of the proposed pipeline) to which the authorisation relates,

the OGA may serve on the holder a notice stating that the authorisation is to cease to be in force at a time specified in the notice.

(7) The OGA shall not serve a notice under subsection (6) without first giving the holder of the authorisation an opportunity to make written representations to it .

(8) The OGA shall not serve a notice under subsection (6) in consequence of a contravention if the OGA considers that—

(a) having regard to the nature and consequences of the contravention and to any previous contravention, it would be unreasonable to terminate the authorisation in consequence of the contravention; and

(b) the holder has taken adequate steps to prevent similar contraventions in future.

(9) When an authorisation ceases to be in force the OGA shall publish in the London and Edinburgh and Belfast Gazettes, or in such of them as it considers appropriate, a notice stating that it has ceased to be in force.

Section 19 Vesting of pipelines on termination or subsequent issue of authorisations.

(1) When an authorisation ceases to be in force the controlled pipeline to which it relates shall, by virtue of this subsection, be transferred to and vest in the OGA free from encumbrances, except that nothing in this subsection prejudices—

(a) any interest belonging to the Crown Estate or to Her Majesty in right of the Duchy of Lancaster or to the Duchy of Cornwall; or

(b) any right conferred by a notice relating to the pipeline under section 17 or section 17F(9) of this Act or section 82(11) of the Energy Act 2011 .

(2) Where the OGA proposes to issue an authorisation to any person in respect of a pipeline vested in the OGA by virtue of subsection (1) the OGA may agree with that person, on terms which may include provision for that person to make payments to the OGA , that the authorisation is to include a statement that subsection (3) applies to the authorisation.

(3) Where an authorisation includes such a statement the pipeline to which the authorisation relates shall, by virtue of this subsection and at the time specified in the authorisation, be transferred to and vest in the holder of the authorisation subject to any interest or right then subsisting in respect of the pipeline by virtue of paragraph (a) or (b) of subsection (1).

Section 20 Inspectors etc.

(1) The OGA may appoint, as inspectors to assist it in the execution of this Part of this Act, such number of persons appearing to it to be qualified for the purpose as it considers appropriate from time to time.

(2) The Secretary of State may by regulations make provision with respect to—

(a) the powers and duties of—

(i) inspectors appointed under subsection (1); and

(ii) any other persons acting on the directions of the OGA in connection with the execution of this Part of this Act; and

(b) the facilities to be accorded to such inspectors and other persons.

(3) For the purpose of enforcing regulations made under subsection (2), an inspector appointed under subsection (1) shall have the same powers under section 38 of the Health and Safety at Work etc. Act 1974 (institution of proceedings in England and Wales) as he would have if he were an inspector appointed by the Health and Safety Executive under section 19 of that Act who is authorised to act for the purposes of the regulations.

(4) In the application of this section to Northern Ireland, subsection (3) shall have effect as if—

(a) the references to sections 19 and 38 of the Health and Safety at Work etc. Act 1974 were references to Articles 21 and 35, respectively, of the Health and Safety at Work (Northern Ireland) Order 1978; and

(b) the reference to the Health and Safety Executive were a reference to the Health and Safety Executive for Northern Ireland .

(5) A statutory instrument containing regulations under subsection (2) shall be subject to annulment in pursuance of a resolution of either House of Parliament.

Section 21 Enforcement.

(1) Any person who—

(a) contravenes any provision of section 14(1); or

(b) contravenes any provision of a notice under section 16, 17 or 17F(9) served on him in his capacity as the owner of the pipeline to which the notice relates in a case where no authorisation for the use of the pipeline is required by section 14(1); or

(c) makes a statement which he knows is false in a material particular, or recklessly makes a statement which is false in a material particular, for the purpose of inducing the OGA —

(i) to issue any authorisation; or

(ii) to agree under section 18(1)(b) that an authorisation is to cease to be in force; or

(iii) to specify a period under section 18(3)(b); or

(iv) not to serve a notice under section 18(6),

shall be guilty of an offence and liable on summary conviction to a fine not exceeding the statutory maximum or on conviction on indictment to a fine.

(2) If a person executes any works in contravention of section 14(1) the OGA may at any time serve on him a notice requiring him to remove such of the works as are specified in the notice as works to be removed.

(3) The recipient of a notice under subsection (2) shall comply with the notice within the period specified in the notice; and if he fails to do so the OGA may comply with the notice on his behalf and recover from him any expenses reasonably incurred in doing so.

(4) If a person executes any works in contravention of section 14(1) and the OGA considers that it is urgently necessary to do such things in relation to the works as it could have required that person to do by a notice under subsection (2), the OGA may do those things and recover from that person any expenses reasonably incurred in doing so.

(5) The fact that any thing is done or omitted—

(a) by the recipient of a notice under subsection (2) for the purpose of complying with the notice; or

(b) by the OGA under subsection (3) or (4),

shall not relieve him from liability for any damage which is attributable to the act or omission and for which he would have been liable had the act or omission not been authorised by this section; but the OGA shall be entitled to recover from the person who executed the works in question the amount of any damages which, in consequence of the works, are paid by the OGA by virtue of this subsection.

Section 22 Criminal proceedings.

(1) Proceedings for an offence under section 21(1) or created by regulations made under this Part of this Act (a “ relevant offence ”) may be taken, and the offence may for all incidental purposes be treated as having been committed, in any place in the United Kingdom.

(2) Proceedings for a relevant offence alleged to have been committed in, under or over controlled waters shall not be instituted in England and Wales except—

(a) by the Secretary of State or by a person authorised in that behalf by the Secretary of State; or

(b) by or with the consent of the Director of Public Prosecutions.

(3) Proceedings for a relevant offence alleged to have been committed in, under or over controlled waters shall not be instituted in Northern Ireland except—

(a) by the Secretary of State or by a person authorised in that behalf by the Secretary of State; or

(b) by or with the consent of the Director of Public Prosecutions for Northern Ireland.

(4) Subsections (2) and (3) do not apply to proceedings for an offence created by regulations made under section 20.

(5) In proceedings for a relevant offence an averment in the information, complaint or indictment that anything was done or situated in, under or over controlled waters shall, unless the contrary is proved, be sufficient evidence of the matter stated in the averment.

(6) Where a relevant offence committed by a body corporate is proved to have been committed with the consent or connivance of, or to be attributable to any neglect on the part of, any director, manager, secretary or other similar officer of the body corporate or any person who was purporting to act in any such capacity, he as well as the body corporate shall be guilty of that offence and shall be liable to be proceeded against and punished accordingly.

(7) In subsection (6), in relation to a body corporate which—

(a) is established by or under any enactment for the purpose of carrying on under public ownership any industry or part of an industry or undertaking; and

(b) is a body whose affairs are managed by its members,

“ director ” means a member of the body corporate.

(8) In any proceedings for—

(a) an offence under paragraph (a) of subsection (1) of section 21 of executing works or using a pipeline otherwise than in accordance with the terms of the relevant authorisation; or

(b) an offence under paragraph (b) of that subsection of contravening any provision of a notice,

it shall be a defence to prove that the accused used all due diligence to comply with those terms or, as the case may be, with that provision.

(9) Section 3 of the Territorial Waters Jurisdiction Act 1878 (restriction on prosecutions) shall not apply to any proceedings for a relevant offence.