Energy Act 2016

• Citation: 2016 c. 20
• Sections: 179

Section 1 The OGA

(1) The company originally incorporated under the Companies Act 2006 as the Oil and Gas Authority Limited is renamed as the Oil and Gas Authority.

(2) In relation to any of its functions—

(a) the Oil and Gas Authority is not to be regarded as acting on behalf of the Crown, and

(b) its members, officers and staff are not to be regarded as Crown servants.

(3) The Oil and Gas Authority is exempt from the requirements of the Companies Act 2006 relating to the use of “limited” as part of its name.

(4) In this Act “ the OGA ” means the Oil and Gas Authority.

Section 2 Transfer of functions to the OGA

(1) Schedule 1 transfers certain functions of the Secretary of State to the OGA.

(2) The Secretary of State may by regulations provide—

(a) for the transfer to the OGA of any relevant functions exercisable by a Minister of the Crown, or

(b) for any such functions that are to be transferred to the Scottish Ministers or the Welsh Ministers to be exercisable by the OGA until the transfer to those Ministers takes effect.

(3) The Secretary of State may by regulations make such provision as the Secretary of State considers appropriate in consequence of, or in connection with, any provision contained in—

(a) Schedule 1, or

(b) regulations under subsection (2).

(4) The provision that may be made under subsection (3) includes provision—

(a) amending, repealing or revoking any enactment,

(b) amending any relevant authorisation (including any model clause incorporated, or having effect as if incorporated, in it) granted or given before the date when the regulations take effect,

(c) for anything done by or in relation to a Minister of the Crown in connection with any functions transferred to be treated as done, or to be continued, by or in relation to the OGA, and

(d) about the continuation of legal proceedings.

(5) Regulations under this section may not provide for the transfer to, or exercise by, the OGA of any power to legislate by means of orders, rules, regulations or other subordinate instrument.

(6) In this section and section 3—

“ enactment ” includes an enactment comprised in subordinate legislation, within the meaning of the Interpretation Act 1978;

“ Minister of the Crown ” has the same meaning as in the Ministers of the Crown Act 1975, and includes such Ministers acting jointly;

“ relevant authorisation ” means—

a licence, authorisation or notice granted or given by a Minister of the Crown in the exercise of a relevant function, or

a licence granted under section 2 of the Petroleum (Production) Act 1934 (searching for and getting petroleum);

“ relevant function ” means a function conferred by or under—

Schedule 1 to the Oil Taxation Act 1975,

the Petroleum Act 1998 (except Part 4),

Chapter 2 or 3 of Part 1 of the Energy Act 2008,

Part 8 of the Corporation Tax Act 2010,

Chapter 3 of Part 2 of the Energy Act 2011,

the Hydrocarbons Licensing Directive Regulations 1995 ( S.I. 1995/1434),

any regulations amended or modified by the Energy Act 2008 (Consequential Modifications) (Offshore Environmental Protection) Order 2010 (S.I. 2010/1513),

the Storage of Carbon Dioxide (Licensing etc ) Regulations 2010 (S.I. 2010/2221),

the Storage of Carbon Dioxide (Termination of Licences) Regulations 2011 (S.I. 2011/1483),

the Storage of Carbon Dioxide (Access to Infrastructure) Regulations 2011 (S.I. 2011/2305), or

any other enactment that relates to matters similar to those to which an enactment mentioned in any of the preceding paragraphs relates.

Section 3 Transfer of property, rights and liabilities to the OGA

(1) The Secretary of State may make one or more transfer schemes transferring qualifying property, rights and liabilities of a Minister of the Crown to the OGA.

(2) A scheme made under this section may, in particular, make provision—

(a) for anything done by or in relation to a Minister of the Crown in connection with any property, rights or liabilities transferred by the scheme to be treated as done, or to be continued, by or in relation to the OGA;

(b) for references to a Minister of the Crown in any agreement (whether written or not), instrument or other document relating to property, rights or liabilities transferred by the scheme to be treated as references to the OGA;

(c) about the continuation of legal proceedings;

(d) for transferring property, rights or liabilities which could not otherwise be transferred or assigned;

(e) for transferring property, rights or liabilities irrespective of any requirement for consent which would otherwise apply;

(f) for preventing a right of pre-emption, right of reverter, right of forfeiture, right to compensation or other similar right from arising or becoming exercisable as a result of the transfer of property, rights or liabilities;

(g) for dispensing with any formality in relation to the transfer of property, rights or liabilities by the scheme;

(h) for transferring property acquired, or rights or liabilities arising, after the scheme is made but before it takes effect;

(i) for apportioning property, rights or liabilities;

(j) for creating rights, or imposing liabilities, in connection with property, rights or liabilities transferred by the scheme;

(k) for requiring the OGA to enter into any agreement of any kind, or for a purpose, specified in or determined in accordance with the scheme.

(3) Subsection (2)(b) does not apply to references in an enactment or a relevant authorisation.

(4) In this section—

“ property ” includes interests of any description, and

“ qualifying property, rights and liabilities ” means property held, and rights and liabilities arising, in connection with functions which were functions of a Minister of the Crown and as a result of this Act have or are to become functions of the OGA, but does not include rights and liabilities relating to an individual's employment in the civil service of the State.

Section 4 Transfer of staff to the OGA

(1) The Secretary of State may make one or more transfer schemes under which persons who hold employment in the civil service of the State become employees of the OGA (but this is subject to any provision contained in the scheme that allows a person to object to becoming an employee of the OGA).

(2) A scheme made under this section—

(a) may make provision for giving full effect for a person's transfer into the employment of the OGA as a result of the scheme, and

(b) may (in particular) include provision that is the same as, or similar to, the provision made by the Transfer of Undertakings (Protection of Employment) Regulations 2006 (S.I. 2006/246) (whether or not those regulations would otherwise apply in relation to the transfer).

Section 5 Transfer schemes: supplementary

(1) A scheme made under section 3 or 4 may—

(a) contain incidental, supplementary and consequential provision;

(b) make transitory or transitional provision or savings;

(c) make different provision for different purposes;

(d) make provision subject to exceptions.

(2) Subject to subsection (3), the Secretary of State may modify a scheme made under section 3 or 4.

(3) If a transfer under the scheme has taken effect, any modification under subsection (2) that relates to the transfer may be made only with the agreement of the person (or persons) affected by the modification.

(4) A modification takes effect from such date as the Secretary of State may specify; and that date may be the date when the original scheme came into effect.

Section 6 Pensions

(1) The persons to whom section 1 of the Superannuation Act 1972 (persons to or in respect of whom benefits may be provided by schemes under that section) applies are to include the employees of the OGA.

(2) Accordingly, in Schedule 1 to that Act (employment to which superannuation schemes may extend), in the list of other bodies, at the appropriate place insert— “ The Oil and Gas Authority. ”

(3) The employees of the OGA are to be treated for the purposes of paragraph (1)(b) of regulation 3 of the Public Service (Civil Servants and Others) Pensions Regulations 2014 (S.I. 2014/1964) as persons—

(a) to whom the scheme established under that regulation may potentially relate by virtue of paragraph (2) of that regulation, and

(b) in respect of whom the Minister for the Civil Service has made a determination under section 25(5) of the Public Service Pensions Act 2013.

(4) The OGA must pay to the Minister for the Civil Service, at such times as the Minister may direct, such sums as the Minister may determine in respect of any increase attributable to this section in the sums payable out of money provided by Parliament under the Superannuation Act 1972 and the Public Service Pensions Act 2013.

Section 7 Contracting out of functions to the OGA

(1) Subsection (2) applies if, under section 69 of the Deregulation and Contracting Out Act 1994, the OGA is, or employees of the OGA are, authorised to exercise a function to which that section applies.

(2) Subsection (5)(a) of that section applies in relation to the authorisation as if the words “, not exceeding 10 years,” were omitted.

(3) The Welsh Ministers may enter into an agreement with the OGA authorising the OGA to exercise any functions of the Welsh Ministers.

(4) The reference in subsection (3) to functions does not include functions of making, confirming or approving subordinate legislation contained in a statutory instrument.

(5) An agreement under subsection (3) does not affect the responsibility of the Welsh Ministers.

(6) An agreement under subsection (3) does not prevent the Welsh Ministers from exercising a function to which the agreement relates.

(7) The Welsh Ministers must arrange for a copy of any agreement under subsection (3) to be published in such manner as the Welsh Ministers consider appropriate for bringing it to the attention of the persons who, in the Welsh Ministers' opinion, are likely to be affected by it.

Section 8 Matters to which the OGA must have regard

(1) The matters to which the OGA must have regard when exercising its functions include the following, so far as relevant—

Minimising future public expenditure The need to minimise public expenditure relating to, or arising from, relevant activities.

Security of supply The need for the United Kingdom to have a secure supply of energy.

Storage of carbon dioxide The development and use of facilities for the storage of carbon dioxide, and of anything else (including, in particular, pipelines) needed in connection with the development and use of such facilities, and how that may assist the Secretary of State to meet the target in section 1 of the Climate Change Act 2008.

Collaboration The need for the OGA to work collaboratively with the government of the United Kingdom , with the Gas and Electricity Markets Authority, and with persons who carry on, or wish to carry on, relevant activities.

Innovation The need to encourage innovation in technology and working practices in relation to relevant activities.

System of regulation The need to maintain a stable and predictable system of regulation which encourages investment in relevant activities.

(2) In this section and section 9—

“ function ” means any function of the OGA, including any function under Chapter 3 of Part 1 of the Energy Act 2008 (storage of carbon dioxide), other than a function which the OGA is authorised to exercise by virtue of—

an order under section 69 of the Deregulation and Contracting Out Act 1994, or

an agreement under section 7(3);

“ relevant activity ” means any activity in relation to which the OGA has functions.

Section 9 Directions: national security and public interest

(1) The Secretary of State may give directions to the OGA as to the exercise by it of any of its functions if the Secretary of State considers that the directions—

(a) are necessary in the interests of national security, or

(b) are otherwise in the public interest.

(2) Directions may be given under subsection (1)(b) in relation to the exercise of a regulatory function in a particular case only if the Secretary of State considers that the circumstances are exceptional.

(3) Directions given under this section may be varied or revoked by further directions given under this section.

(4) The Secretary of State must lay before Parliament a copy of any directions given under this section.

(5) The Secretary of State may exclude from any directions laid before Parliament under subsection (4) any material the publication of which the Secretary of State considers would—

(a) be contrary to the interests of national security, or

(b) otherwise not be in the public interest.

(6) If the Secretary of State considers that publication of the directions (whether with or without the exclusion of material under subsection (5)) would fall within paragraph (a) or (b) of that subsection, the Secretary of State may, instead of laying the directions, lay before Parliament a memorandum stating—

(a) that the directions have been given, and

(b) the date on which they were given.

(7) The OGA must notify the Secretary of State of any cases, matters or circumstances which have arisen, or which the OGA considers are likely to arise, in respect of which the OGA considers that the power to give directions under this section should be exercised by the Secretary of State.

(8) In this section “ regulatory function ” means—

(a) a function of granting or revoking a licence or other authorisation in relation to any relevant activity;

(b) a function of imposing conditions or requirements in relation to any relevant activity;

(c) a function that relates to securing, monitoring or investigating compliance with conditions or requirements in relation to any relevant activity.

Section 10 Directions: requirements to notify Secretary of State

(1) The Secretary of State may give directions to the OGA specifying cases, matters or circumstances of which the OGA must notify the Secretary of State—

(a) when they arise, or

(b) if the OGA considers that they are likely to arise.

(2) Directions given under this section may be varied or revoked by further directions given under this section.

Section 11 Power of Secretary of State to require information and samples

(1) The Secretary of State may require the OGA to provide the Secretary of State with such information or samples held by or on behalf of the OGA as the Secretary of State may require for the purpose of—

(a) carrying out any function conferred by or under any Act,

(b) monitoring the OGA's performance of its functions, or

(c) any Parliamentary proceedings.

(2) In this section—

(a) references to “ protected material ” are references to information or samples acquired by the Secretary of State under subsection (1), and

(b) references to disclosing protected material include references to making the protected material available to other persons (in a case where the protected material includes samples).

(3) The Secretary of State may use protected material only for the purpose for which it is provided.

(4) Protected material must not be disclosed—

(a) by the Secretary of State, or

(b) by a subsequent holder,

except in accordance with this section.

(5) For the purposes of subsection (4)(b), “ subsequent holder ”, in relation to protected material, means a person who receives protected material directly or indirectly from the Secretary of State by virtue of a disclosure, or disclosures, in accordance with this section.

(6) Subsection (4) does not prohibit the Secretary of State from disclosing protected material so far as necessary for the purpose for which it was provided.

(7) Subsection (4) does not prohibit a disclosure of protected material if—

(a) the disclosure is required by virtue of an obligation imposed by or under any Act, or

(b) the OGA consents to the disclosure and, in a case where the protected material in question was provided to the OGA by or on behalf of another person, confirms that that person also consents to the disclosure.

Section 12 Powers of the OGA to charge fees

(1) The OGA may charge fees—

(a) for making a determination under Schedule 1 to the Oil Taxation Act 1975;

(b) on an application made to it under section 12A of the Energy Act 1976;

(c) on an application made to it under section 3, 15, 16 or 17 of the Petroleum Act 1998;

(d) on an application of a prescribed description made to it by the holder of a licence granted under—

(i) section 3 of that Act (searching for, boring and getting petroleum), or

(ii) section 2 of the Petroleum (Production) Act 1934 (licences to search for and get petroleum);

(e) on an application of a prescribed description made to it by the holder of an authorisation issued under section 15 of the Petroleum Act 1998;

(f) for carrying out or attending any test, examination or inspection of a prescribed description;

(g) on an application made to it under section 4 or 18 of the Energy Act 2008;

(h) on an application of a prescribed description made to it by the holder of a licence granted under section 4 or 18 of that Act;

(i) for the storage by it of samples or information in accordance with an information and samples plan (see section 33(4) of this Act).

(2) The fees—

(a) are to be determined by or in accordance with regulations made by the Secretary of State, and

(b) are to be payable by such persons as the regulations may provide.

(3) The OGA must pay into the Consolidated Fund any amount which it receives in respect of fees charged by it under this section.

(4) Subsection (3) does not apply where the Secretary of State, with the consent of the Treasury, otherwise directs.

(5) Where in relation to any matter the OGA has a function mentioned in subsection (6), that function is treated for the purposes of this section as carried out pursuant to an application made to the OGA (whether or not there is any requirement to make such an application).

(6) The functions are—

(a) extending the term of a licence;

(b) giving its consent or approval in relation to any matter;

(c) objecting in relation to any matter.

(7) The OGA may not charge fees under this section for the exercise of any function which it is authorised to exercise by virtue of—

(a) an order under section 69 of the Deregulation and Contracting Out Act 1994, or

(b) an agreement under section 7(3).

(8) The Secretary of State must consult the OGA before making regulations under this section.

(9) In this section “ prescribed ” means prescribed by regulations made by the Secretary of State.

Section 13 Levy on licence holders

(1) The Secretary of State may, by regulations, provide for a levy to be imposed on, and be payable by, one or more of the following kinds of persons—

(a) persons who hold licences (other than excluded licences) granted under section 3 of the Petroleum Act 1998 (searching for, boring and getting petroleum);

(b) persons who hold licences (other than excluded licences) granted under section 2 of the Petroleum (Production) Act 1934 (licences to search for and get petroleum);

(c) persons who hold licences granted under section 4 of the Energy Act 2008 (unloading and storing gas);

(d) persons who hold licences granted under section 18 of the Energy Act 2008 by the Secretary of State or the OGA (storage of carbon dioxide).

(2) The Secretary of State must exercise the power conferred by subsection (1) so as to secure—

(a) that the total amount of licensing levy which is payable in respect of a charging period does not exceed the sum of—

(i) the costs incurred by the OGA in exercising its functions in respect of that period, and

(ii) the costs incurred in respect of that period by the Lord Chancellor in connection with the provision of Tribunals to consider appeals against decisions of the OGA, and

(b) that no levy is payable in respect of costs incurred in the exercise of functions—

(i) for which fees are charged under section 12, or

(ii) which the OGA is authorised to exercise by virtue of an order under section 69 of the Deregulation and Contracting Out Act 1994 or an agreement under section 7(3) of this Act.

(3) In determining for the purposes of subsection (2)(a) the total amount of licensing levy payable in respect of a charging period, an amount of levy payable in respect of that period may be ignored if (during that period or subsequently)—

(a) having been paid, it is repaid or credit for it is given against other licensing levy that is payable, or

(b) having not been paid, the requirement to pay it is cancelled.

(4) The amount or amounts of licensing levy payable by licence holders must be—

(a) set out in the regulations, or

(b) calculated in accordance with a method set out in the regulations.

(5) The licensing levy is payable to the OGA.

(6) The OGA must pay into the Consolidated Fund any amount which it receives in respect of the licensing levy.

(7) Subsection (6) does not apply where the Secretary of State, with the consent of the Treasury, otherwise directs.

(8) The Secretary of State must consult the OGA before making regulations under this section.

(9) Section 14 does not limit the provision that may be made by regulations under this section.

(10) In this section and section 14—

“ charging period ” means a period in respect of which licensing levy is payable;

“ excluded licence ”, in relation to a charging period, means a licence that, if granted at the beginning of the period, would fall to be granted by the Scottish Ministers or the Welsh Ministers (and for these purposes a licence within subsection (1)(b) is to be treated as granted under section 3 of the Petroleum Act 1998);

“ licensing levy ” means the levy provided for in regulations under this section.

Section 14 The licensing levy: regulations

(1) Regulations may provide for the licensing levy payable in respect of a charging period to increase or decrease over that period.

(2) Regulations may provide for an amount of licensing levy payable by a licence holder to be calculated by reference to the size of an area to which a licence held by that person relates.

(3) Regulations may provide for different categories of licence holders to pay—

(a) different amounts of licensing levy, or

(b) amounts of licensing levy calculated, set or determined in different ways.

(4) Regulations may provide for a category of licence holder to be exempt from payment of the licensing levy.

(5) Regulations may provide for interest (at a rate specified in, or determined under, the regulations) to be charged in respect of unpaid amounts of licensing levy.

(6) Regulations may provide for unpaid amounts of licensing levy (together with any interest charged) to be recoverable as a civil debt.

(7) Regulations may confer a function (including a function involving the exercise of a discretion) on—

(a) the Secretary of State,

(b) the OGA, or

(c) any other person, apart from the Scottish Ministers or the Welsh Ministers.

(8) Regulations (including regulations of the kinds mentioned in subsections (3) and (4)) may provide for a category of licence holder to consist of persons who hold a kind of licence that is specified in the regulations.

(9) The regulations may (in particular) specify any of the following kinds of licence—

(a) licences granted under a particular enactment;

(b) licences of a particular description granted under a particular enactment;

(c) licences, or licences of a particular description (including a description falling within paragraph (a) or (b)), granted—

(i) before a particular time,

(ii) after a particular time, or

(iii) during a particular period.

(10) In this section—

“ licence ” means a licence falling within section 13(1);

“ licence holder ” means a person who holds a licence (whether the person was granted it or has, after its grant, acquired it by assignment or other means);

“ regulations ” means regulations under section 13.

Section 15 Payments and financial assistance

(1) The Secretary of State may make payments or provide financial assistance to the OGA.

(2) The payments or financial assistance may be made or provided subject to such conditions as may be determined by the Secretary of State.

(3) In the case of a grant such conditions may, in particular, include conditions requiring repayment in specified circumstances.

(4) In this section “ financial assistance ” means grants, loans, guarantees or indemnities, or any other kind of financial assistance.

Section 16 Review of OGA and guidance from Secretary of State

(1) The Secretary of State must review the OGA's performance for each review period.

(2) The first review period—

(a) begins with the day on which section 1 comes into force, and

(b) ends at the end of the period of three years beginning with that day, or on such earlier day as the Secretary of State may determine.

(3) Subsequent review periods—

(a) begin with the day (“the first day”) after the last day of the preceding review period,

(b) end at the end of the period of three years beginning with the first day, or on such earlier day as the Secretary of State may determine.

(4) A review must, in particular—

(a) assess how effective the OGA has been in exercising its functions, and

(b) consider the OGA's functions under—

(i) Part 2, and

(ii) Chapter 3 of Part 1 of the Energy Act 2008 (storage of carbon dioxide),

with regard to their fitness for purpose and scope.

(5) As soon as practicable after a review period, the Secretary of State must—

(a) publish a report of the findings of the review for that period, and

(b) lay a copy of the report before Parliament.

(6) As a result of the findings of a review, the Secretary of State may give guidance to the OGA about any matter relating to the OGA's functions.

(7) The OGA must take account of any such guidance in carrying out its functions.

(8) For the purposes of this section “ function ” does not include any function which the OGA is authorised to exercise by virtue of—

(a) an order under section 69 of the Deregulation and Contracting Out Act 1994, or

(b) an agreement under section 7(3).

Section 17 Overview of Part 2

(1) This Part contains provision about functions of the OGA relating to offshore petroleum.

(2) Chapter 2 makes provision for the OGA to consider disputes and make recommendations for resolving them.

(3) Chapter 3 makes provision about—

(a) the retention of information and samples by relevant persons,

(b) the preparation of plans for dealing with information and samples held by an offshore licensee when rights under a licence are terminated, and

(c) powers of the OGA to require information and samples.

(4) Chapter 4 makes provision—

(a) for the OGA to be informed of meetings,

(b) for persons authorised by the OGA to be entitled to participate in meetings, and

(c) for the OGA to be provided with information relating to meetings in which such persons do not participate.

(5) Chapter 5 makes provision about sanctions which may be imposed on persons for failures to comply with requirements.

(6) Chapter 6 makes provision about the disclosure of information and samples which have been obtained by the OGA under this Part.

Section 18 Interpretation of Part 2

(1) In this Part—

“items subject to legal privilege”—

in England and Wales, has the same meaning as in the Police and Criminal Evidence Act 1984 (see section 10 of that Act);

in Scotland, has the meaning given by section 412 of the Proceeds of Crime Act 2002;

in Northern Ireland, has the same meaning as in the Police and Criminal Evidence (Northern Ireland) Order 1989 (S.I. 1989/1341 ( NI 12));

“ licensee ” means a person holding a petroleum licence;

“ offshore licence ” means a petroleum licence which confers on the holder of that licence rights in respect of offshore waters;

“ offshore licensee ” means a person holding an offshore licence;

“ offshore waters ” means—

the waters comprising the territorial sea of the United Kingdom, and

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

“ petroleum licence ” means a licence granted under—

section 3 of the Petroleum Act 1998 (searching for, boring for and getting petroleum), or

section 2 of the Petroleum (Production) Act 1934 (licences to search for and get petroleum);

“ the principal objective ” means the objective set out in section 9A(1) of the Petroleum Act 1998;

“ relevant person ” means a person listed in section 9A(1)(b) of the Petroleum Act 1998;

“ statutory function ” means a function conferred or imposed by or under any Act;

“ Tribunal ” means the First-tier tribunal.

(2) In this Part a reference to a term or condition of a petroleum licence includes a reference to a condition imposed under a petroleum licence.

Section 19 Qualifying disputes and relevant parties

(1) For the purposes of this Chapter, a dispute is a qualifying dispute if—

(a) the dispute relates to qualifying issues, and

(b) the parties to the dispute include at least one relevant party.

(2) In this Chapter, “ qualifying issues ” means issues which—

(a) are relevant to the fulfilment of the principal objective, or

(b) relate to activities carried out under an offshore licence,

and are not the subject of a section 82 application.

(3) If a dispute relates in part to qualifying issues and in part to other issues, the dispute is a qualifying dispute only to the extent that it relates to the qualifying issues.

(4) For the purposes of subsection (2), an issue is the subject of a section 82 application if—

(a) an application has been made under section 82(4) of the Energy Act 2011 (acquisition of rights to use upstream petroleum infrastructure) in connection with the issue, and

(b) the OGA has made a decision under section 82(6)(a)(iii) of that Act to consider the application further.

(5) In this Chapter “relevant party” to a dispute means a party to the dispute who is a relevant person.

Section 20 Reference of disputes to the OGA

(1) A relevant party to a qualifying dispute may refer it to the OGA.

(2) A reference under this section is to be made in such manner as the OGA may require.

(3) Requirements under subsection (2) as to the manner in which a reference is to be made—

(a) may make different provision for different cases;

(b) are to be imposed, withdrawn or modified by notice published in such manner as the OGA considers appropriate for bringing the requirement, withdrawal or modification to the attention of the persons who, in the OGA's opinion, are likely to be affected by it.

Section 21 Action by the OGA on a dispute reference

(1) On a reference of a dispute made under section 20, the OGA must decide whether the reference is to be—

(a) rejected,

(b) adjourned to enable further negotiation between the parties to the dispute, or

(c) accepted (see section 23).

(2) The OGA must issue guidance about the matters to which it will have regard when making a decision under subsection (1).

(3) As soon as reasonably practicable after the OGA has made a decision under subsection (1), it must give notice in writing stating—

(a) its decision,

(b) the reasons for the decision, and

(c) the date of the decision,

to each relevant party to the dispute, and to any other parties to the dispute who have contributed (whether by providing information or attending meetings) to the OGA's decision-making process.

(4) The grounds on which the OGA may reject a reference include, but are not limited to, grounds that—

(a) the dispute is not a qualifying dispute;

(b) the party that referred the dispute is not a relevant party;

(c) the reference is frivolous or vexatious;

(d) there are more appropriate means available for resolving the dispute;

(e) the dispute is not sufficiently material to the fulfilment of the principal objective to warrant, in the circumstances, its consideration by the OGA;

(f) the OGA considers it unlikely that, in the circumstances, it would be able to make a satisfactory recommendation in respect of the dispute.

(5) Where the OGA adjourns a reference of a dispute—

(a) it must set a timetable in accordance with which relevant parties to the dispute are to conduct further negotiations and revert to the OGA,

(b) it may give directions with which relevant parties to the dispute are to comply during the adjournment, and

(c) it must, when the relevant parties revert to it following the adjournment, make a further decision under subsection (1) in respect of the reference.

(6) Requirements imposed by the OGA on relevant parties—

(a) under subsection (5)(a), or

(b) by directions under subsection (5)(b),

are sanctionable in accordance with Chapter 5.

Section 22 Power of the OGA to consider disputes on its own initiative

(1) The OGA may decide, on its own initiative, to consider a qualifying dispute (see section 23).

(2) If the OGA decides to consider a qualifying dispute under this section, it must notify all parties to the dispute.

Section 23 Procedure for consideration of disputes

(1) This section applies where the OGA—

(a) accepts a reference of a dispute under section 21(1), or

(b) decides to consider a dispute under section 22(1).

(2) The OGA must—

(a) consider the dispute, and

(b) make a recommendation for resolving it.

(3) The OGA—

(a) must draw up a timetable for performing its duties under subsection (2), and

(b) may give directions with which the relevant parties to the dispute are to comply in order to enable the OGA to carry out those duties.

(4) The OGA's recommendation must be one which it considers will enable the dispute to be resolved in a way which best contributes to the fulfilment of the principal objective whilst having regard to the need to achieve an economically viable position for the parties to the dispute.

(5) The procedure for considering the dispute and making a recommendation is the procedure that the OGA considers most appropriate.

(6) Where the OGA makes a recommendation under this section, the OGA may publish—

(a) the recommendation or any part of it;

(b) a summary of the recommendation or of any part of it.

(7) Before publishing anything under subsection (6), the OGA must give an opportunity to be heard to each relevant party to the dispute.

(8) The OGA must issue guidance about the matters to which it will have regard when performing its duties under this section.

(9) Requirements imposed by directions under subsection (3)(b) are sanctionable in accordance with Chapter 5.

Section 24 Power of the OGA to acquire information

(1) The OGA may require a relevant party to a dispute to provide it with such information as may be required by the OGA for the purposes of—

(a) deciding whether to reject, adjourn or accept a reference of the dispute under section 21(1),

(b) setting a timetable in respect of an adjournment of a reference of the dispute under section 21(5),

(c) assessing progress of further negotiations during such an adjournment,

(d) making a decision under section 22(1) to consider the dispute on its own initiative, or

(e) considering the dispute and making a recommendation under section 23(2),

subject to subsection (3).

(2) A person required to provide information under subsection (1) must provide it in such manner and within such reasonable period as may be specified by the OGA in the request for information.

(3) Information requested under subsection (1) may not include items subject to legal privilege.

(4) Requirements imposed under this section are sanctionable in accordance with Chapter 5.

Section 25 Power of the OGA to require attendance at meetings

(1) The OGA may require a relevant party to a dispute to send an individual to act as its representative at a meeting with the OGA for the purpose of participating in proceedings relating to—

(a) whether a reference of the dispute is to be rejected, adjourned or accepted under section 21(1),

(b) whether the OGA is to make a decision to consider the dispute under section 22(1), or

(c) the consideration of the dispute and the making of a recommendation under section 23(2).

(2) The OGA may require that the individual sent to attend the meeting has the necessary knowledge and expertise for the purpose of participating in the proceedings in question.

(3) The OGA must give reasonable notice of any meeting at which attendance is required under this section.

(4) Requirements imposed by the OGA on relevant parties under this section are sanctionable in accordance with Chapter 5.

Section 26 Appeals against decisions of the OGA: disputes

(1) This section applies to any decision of the OGA to which effect is given by one of the actions set out in an entry in column 1 of the table below.

(2) A person affected by any such decision may appeal against it to the Tribunal—

(a) on the grounds that the decision was not within the powers of the OGA, or

(b) on the grounds set out in the corresponding entry in column 2 of the table.

Either—

the information requested is not relevant to the dispute in question, or

the period specified under section 24(2) is unreasonable.

Either—

the requirement to attend the meeting is unreasonable,

reasonable notice of the meeting was not given, or

the requirement as to the knowledge and expertise of the person attending the meeting is unreasonable.

(3) On an appeal under this section the Tribunal may—

(a) affirm, vary or quash the decision under appeal,

(b) remit the decision under appeal to the OGA for reconsideration with such directions (if any) as the Tribunal considers appropriate, or

(c) substitute its own decision for the decision under appeal.

Section 27 Petroleum-related information and samples

(1) In this Chapter—

“ petroleum-related information ” means—

in relation to any relevant person, information acquired or created by or on behalf of the person in the course of carrying out activities which are relevant to the fulfilment of the principal objective, and

in relation to a relevant person who is an offshore licensee, information acquired or created by or on behalf of the person in the course of carrying out activities under the licensee's licence, which is not information falling within paragraph (a);

“ petroleum-related samples ” means samples of substances acquired by or on behalf of an offshore licensee in the course of carrying out activities under the licensee's licence.

(2) In this Chapter, “petroleum-related information” and “petroleum-related samples” include information or samples acquired or created as mentioned in subsection (1) which are relevant to activities carried out under a carbon dioxide storage licence.

(3) In subsection (2) “ carbon dioxide storage licence ” means a licence granted under section 18 of the Energy Act 2008.

Section 28 Retention of information and samples

(1) Regulations made by the Secretary of State may require—

(a) specified relevant persons to retain specified petroleum-related information;

(b) specified offshore licensees to retain specified petroleum-related samples.

(2) Regulations under this section may include provision about—

(a) the form or manner in which information or samples are to be retained;

(b) the period for which information or samples are to be retained;

(c) the event that triggers the commencement of that period.

(3) In this section, “ specified ” means specified, or of a description specified, in regulations under this section.

(4) Requirements imposed by regulations under this section are sanctionable in accordance with Chapter 5.

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

Section 29 Retention: supplementary

(1) Subsection (2) applies in relation to regulations under section 28 imposing requirements on an offshore licensee to retain information or samples.

(2) The regulations may provide for those requirements to continue following a termination of rights under the licensee's licence (whether by transfer, surrender, expiry or revocation and whether in relation to all or only part of the licence).

(3) Regulations under section 28 may not impose requirements which have effect in relation to particular petroleum-related information or particular petroleum-related samples at any time when an information and samples plan dealing with the information or samples has effect (see sections 30 to 33).

Section 30 Information and samples plans: termination of rights under offshore licences

(1) This section and sections 31 to 33 make provision in relation to the preparation of information and samples plans in connection with licence events.

(2) The following definitions apply for the purposes of this section and those sections.

(3) “ Licence event ” means—

(a) a transfer of rights under an offshore licence, whether in relation to all or part of the area in respect of which the licence was granted,

(b) a surrender of rights under an offshore licence in relation to all of the area in respect of which the licence was granted, or in relation to so much of that area in respect of which the licence continues to have effect,

(c) the expiry of an offshore licence, or

(d) the revocation of an offshore licence by the OGA.

(4) “ Relevant licence ”, in relation to a licence event, means the licence in respect of which the licence event occurs.

(5) “ Responsible person ” in relation to a licence event, means the person who is or was, or the persons who are or were, the licensee in respect of the relevant licence immediately before the licence event.

(6) “ Information and samples plan ”, in relation to a licence event, means a plan dealing with what is to happen, following the event, to—

(a) petroleum-related information held by the responsible person before the event, and

(b) petroleum-related samples held by that person before the event.

Section 31 Preparation and agreement of information and samples plans

(1) The responsible person must prepare an information and samples plan in connection with a licence event.

(2) The responsible person must agree the information and samples plan with the OGA—

(a) in the case of a licence event mentioned in section 30(3)(a), (b) or (c) (transfer, surrender or expiry), before the licence event takes place, or

(b) in the case of a licence event mentioned in section 30(3)(d) (revocation), within a reasonable period after the revocation of the relevant licence.

(3) An information and samples plan has effect once it is agreed with the OGA.

(4) If an information and samples plan is not agreed with the OGA as mentioned in subsection (2)(a) or (b), the OGA—

(a) may itself prepare an information and samples plan in connection with the licence event, and

(b) may require the responsible person to provide it with such information as the OGA may require to enable it to do so.

(5) The OGA must inform the responsible person of the terms of any information and samples plan it prepares in connection with a licence event.

(6) Where the OGA—

(a) prepares an information and samples plan in connection with a licence event, and

(b) informs the responsible person of the terms of the plan,

the plan has effect as if it had been prepared by the responsible person and agreed with the OGA.

(7) Where an information and samples plan has effect in connection with a licence event, the responsible person must comply with the plan.

(8) The requirements imposed by subsections (2) and (7), or under subsection (4)(b), are sanctionable in accordance with Chapter 5.

Section 32 Changes to information and samples plans

(1) Where an information and samples plan has effect in relation to a licence event, the OGA and the responsible person may agree changes to the plan.

(2) Once changes are agreed, the plan has effect subject to those changes.

(3) Where—

(a) two or more persons are the responsible person in relation to a licence event, and

(b) those persons include a company that has, since the licence event, been dissolved,

the reference to the responsible person in subsection (1) does not include that company.

Section 33 Information and samples plans: supplementary

(1) An information and samples plan, in relation to a licence event, may provide as appropriate for—

(a) the retention, by the responsible person, of any petroleum-related information or petroleum-related samples held by or on behalf of that person before the licence event,

(b) the transfer of any such information or samples to a new licensee or to a person holding a carbon dioxide storage licence, or

(c) appropriate storage of such information or samples.

(2) An information and samples plan prepared by the OGA under section 31(4) may not include provision under subsection (1)(b) for the transfer of information or samples to another person without the consent of the responsible person.

(3) Where an information and samples plan makes provision under subsection (1) for a person, other than the responsible person, to hold information or samples in accordance with the plan—

(a) the plan may, with the consent of that other person, impose requirements on that person in connection with the information and samples, and

(b) any such requirements are sanctionable in accordance with Chapter 5.

(4) An information and samples plan may provide for the storage of information or samples as mentioned in subsection (1)(c) to be the responsibility of the OGA.

(5) Subsection (6) applies where a transfer of rights under an offshore licence relates to only part of the area in relation to which the licence was granted.

(6) In those circumstances, the information and samples plan prepared in connection with the transfer is to relate to all petroleum-related information and petroleum-related samples held by the responsible person before the licence event, and not only petroleum-related information and petroleum-related samples in respect of that part of the area.

(7) In subsection (1)(b) “ carbon dioxide storage licence ” means a licence granted under section 18 of the Energy Act 2008.

Section 34 Power of the OGA to require information and samples

(1) The OGA may by notice in writing, for the purpose of carrying out any functions of the OGA which are relevant to the fulfilment of the principal objective or which relate to activities carried out under a carbon dioxide storage licence, require—

(a) a relevant person to provide it with any petroleum-related information, or a portion of any petroleum-related sample, held by or on behalf of the person;

(b) a person who holds information or samples in accordance with an information and samples plan (see sections 30 to 33) to provide it with any such information or a portion of any such sample,

subject to subsection (3).

(2) The notice must specify—

(a) the form or manner in which the information or the portion of a sample must be provided;

(b) the time at which, or period within which, the information or the portion of a sample must be provided.

(3) Information requested under subsection (1) may not include items subject to legal privilege.

(4) Requirements imposed by a notice under this section are sanctionable in accordance with Chapter 5.

(5) Where a person provides information or a portion of a sample to the OGA in accordance with a notice under this section, any requirements imposed on the person in respect of that information or sample by regulations under section 28 are unaffected.

(6) In subsection (1) “ carbon dioxide storage licence ” means a licence granted under section 18 of the Energy Act 2008.

Section 35 Information and samples coordinators

(1) A relevant person must—

(a) appoint an individual to act as an information and samples coordinator, and

(b) notify the OGA of that individual's name and contact details.

(2) The information and samples coordinator is to be responsible for monitoring the relevant person's compliance with its obligations under this Chapter.

(3) A relevant person must comply with subsection (1) within a reasonable period after—

(a) the date on which this section comes into force, if the person is a relevant person on that date, or

(b) becoming a relevant person, in any other case.

(4) The relevant person must notify the OGA of any change in the identity or contact details of the information and samples coordinator within a reasonable period of the change taking place.

(5) The requirements imposed by this section are sanctionable in accordance with Chapter 5.

Section 36 Appeals against decisions of the OGA: information and samples plans

(1) This section applies to any decision of the OGA to which effect is given by one of the actions set out in an entry in column 1 of the table below.

(2) A person affected by any such decision may appeal against it to the Tribunal—

(a) on the grounds that the decision was not within the powers of the OGA, or

(b) on the grounds set out in the corresponding entry in column 2 of the table.

(3) On an appeal under this section the Tribunal may—

(a) affirm, vary or quash the decision under appeal,

(b) remit the decision under appeal to the OGA for reconsideration with such directions (if any) as the Tribunal considers appropriate, or

(c) substitute its own decision for the decision under appeal.

Section 37 Meetings: interpretation

(1) A meeting is a relevant meeting for the purposes of this Chapter if—

(a) two or more relevant persons are represented at the meeting, and

(b) the meeting involves discussion of relevant issues.

(2) A relevant person is represented at a meeting if an employee of, or a person acting on behalf of, the relevant person participates in the meeting.

(3) In this Chapter “ meeting ” includes a meeting which is conducted in such a way that those who are not present together at the same place may by electronic means participate in it.

(4) In this Chapter “ relevant issues ” means issues which—

(a) are relevant to the fulfilment of the principal objective, or

(b) relate to activities carried out under an offshore licence,

but does not include anything in respect of which a claim to legal professional privilege (or, in Scotland, to confidentiality of communications) could be maintained in any legal proceedings.

(5) A notice given by the OGA may provide that—

(a) a meeting specified, or of a description specified, in the notice is not a relevant meeting for the purposes of this Chapter;

(b) an issue specified, or of a description specified, in the notice is not a relevant issue for those purposes.

Section 38 Duty to inform the OGA of meetings

(1) This section applies where a relevant person, or an employee of or person acting on behalf of the relevant person, knows or should know that a meeting arranged by, or on behalf of, the relevant person will be or is likely to be a relevant meeting.

(2) The relevant person must, in writing—

(a) inform the OGA of the fact that the meeting is to take place, and

(b) provide such details of the meeting as are necessary for a person authorised by the OGA to be able to participate in it.

(3) The relevant person must comply with subsection (2)—

(a) at least 14 days before the day on which the meeting is to take place, or

(b) if that is not reasonably practicable, so as to give as much notice of the meeting as is reasonably practicable.

(4) In a case within subsection (3)(b) the relevant person must, when complying with subsection (2), explain in writing to the OGA why it was not reasonably practicable to comply with subsection (2) at least 14 days before the day on which the meeting is to take place.

(5) The relevant person must inform the OGA in writing as soon as is reasonably practicable of any changes to the information provided under subsection (2)(b).

(6) The relevant person must also provide the OGA with any information that is provided (whether by the relevant person or any other person) to other persons attending the meeting, including (in particular)—

(a) the agenda, and

(b) any other documents relevant to the meeting.

(7) That information must be provided to the OGA—

(a) at the same time as it is provided to other persons attending the meeting, or

(b) if it not possible for the relevant person to provide it to the OGA at that time, as soon after that time as is reasonably practicable.

(8) Subsection (6) does not require the relevant person to provide the OGA with information that does not relate to relevant issues.

(9) The information required under subsections (2), (5) and (6), and any explanation provided under subsection (4), must be provided to the OGA in such manner as may be required by a notice given by the OGA.

(10) The requirements imposed by this section are sanctionable in accordance with Chapter 5.

Section 39 Participation by the OGA in meetings

(1) A person authorised by the OGA under this section is entitled to participate in any relevant meeting.

(2) But such a person is not entitled—

(a) to participate in any part of the meeting that does not relate to relevant issues, or

(b) if any matter is decided on by a vote, to take part in the voting.

(3) The relevant person who arranged the meeting, or on whose behalf the meeting was arranged, must secure that the right conferred by subsection (1) may be exercised.

(4) The requirement imposed by subsection (3) is sanctionable in accordance with Chapter 5.

Section 40 Provision of information to the OGA after meetings

(1) This section applies where the right conferred by section 39(1) (right of person authorised by the OGA to participate) is not exercised in relation to a relevant meeting.

(2) The relevant person by, or on behalf of whom, the meeting was arranged must provide the OGA with a written summary of—

(a) the meeting, and

(b) any decisions reached at the meeting.

(3) The written summary must be provided to the OGA within a reasonable period after the end of the meeting.

(4) Subsection (2) does not require the relevant person to provide the OGA with any information that does not relate to relevant issues.

(5) The requirement imposed by this section is sanctionable in accordance with Chapter 5.

Section 41 Notices

(1) This section applies to a notice given by the OGA under this Chapter.

(2) The notice—

(a) may make different provision for different cases, and

(b) may be varied or revoked by a further notice given by the OGA.

(3) The notice, and any variation or revocation, must be published in such manner as the OGA considers appropriate for bringing it to the attention of the persons who, in its opinion, are likely to be affected by it.

Section 42 Power of OGA to give sanction notices

(1) If the OGA considers that a person has failed to comply with a petroleum-related requirement imposed on the person, it may give the person a sanction notice in respect of that failure.

(2) If the OGA considers that there has a been a failure to comply with a petroleum-related requirement imposed jointly on two or more persons, it may give a sanction notice in respect of that failure—

(a) to one only of those persons,

(b) jointly to two or more of them, or

(c) jointly to all of them,

but it may not give separate sanction notices to each of them in respect of the failure.

(3) In this Chapter “ petroleum-related requirement ” means—

(a) a duty imposed under section 9C of the Petroleum Act 1998 to act in accordance with the current strategy or strategies produced under section 9A(2) of that Act for enabling the principal objective to be met,

(b) a term or condition of an offshore licence, or

(c) a requirement imposed on a person by or under a provision of this Act which, by virtue of the provision, is sanctionable in accordance with this Chapter.

(4) In this Chapter “ sanction notice ” means—

(a) an enforcement notice (see section 43),

(b) a financial penalty notice (see sections 44 to 46),

(c) a revocation notice (see section 47), or

(d) an operator removal notice (see section 48).

(5) Sanction notices, other than enforcement notices, may be given in respect of a failure to comply with a petroleum-related requirement even if, at the time the notice is given, the failure to comply has already been remedied.

(6) Where the OGA gives a sanction notice to a person in respect of a particular failure to comply with a petroleum-related requirement—

(a) it may, at the same time, give another type of sanction notice to the person in respect of that failure to comply;

(b) it may give subsequent sanction notices in respect of that failure only in accordance with section 54 (subsequent sanction notices).

(7) The OGA's power to give sanction notices under this section is subject to section 49 (duty of OGA to give sanction warning notices).

Section 43 Enforcement notices

(1) This section contains provision about enforcement notices which may be given under section 42 (failure to comply with a petroleum-related requirement).

(2) An enforcement notice is a notice which—

(a) specifies the petroleum-related requirement in question,

(b) gives details of the failure to comply with the requirement,

(c) informs the person or persons to whom the notice is given that the person or persons must comply with—

(i) the petroleum-related requirement, and

(ii) any directions included in the notice as mentioned in subsection (3),

before the end of the period specified in the notice.

(3) The notice may include directions as to the measures to be taken for the purposes of compliance with the petroleum-related requirement.

(4) Requirements imposed by directions included in an enforcement notice as mentioned in subsection (3) are sanctionable in accordance with this Chapter.

Section 44 Financial penalty notices

(1) This section and sections 45 and 46 contain provision about financial penalty notices which may be given under section 42 (failure to comply with a petroleum-related requirement).

(2) A financial penalty notice is notice which—

(a) specifies the petroleum-related requirement in question,

(b) gives details of the failure to comply with the requirement,

(c) informs the person or persons to whom the notice is given that the person or persons must—

(i) comply with the petroleum-related requirement before the end of a period specified in the notice, in a case where it is appropriate to require such compliance and the failure to comply with the requirement has not already been remedied at the time the notice is given, and

(ii) pay the OGA a financial penalty of the amount specified in the notice before the end of a period specified in the notice.

(3) The period specified under subsection (2)(c)(ii) must not end earlier than the end of the period of 28 days beginning with the day on which the financial penalty notice was given.

Section 45 Amount of financial penalty

(1) The financial penalty payable under a financial penalty notice in respect of a failure to comply with a petroleum-related requirement (whether payable by one person, or jointly by two or more persons) must not exceed £1 million.

(2) The OGA must—

(a) issue guidance as to the matters to which it will have regard when determining the amount of the financial penalty to be imposed by a financial penalty notice, and

(b) have regard to the guidance when determining the amount of the penalty in any particular case.

(3) The OGA may from time to time review the guidance and, if it considers appropriate, revise it.

(4) Before issuing or revising guidance under this section, the OGA must consult such persons as it considers appropriate.

(5) The OGA must lay any guidance issued under this section, and any revision of it, before each House of Parliament.

(6) The OGA must publish any guidance issued under this section, and any revision of it, in such manner as the OGA considers appropriate.

(7) The Secretary of State may by regulations amend subsection (1) to change the amount specified to an amount not exceeding £5 million.

Section 46 Payment of financial penalty

(1) If a financial penalty notice is given jointly to two or more persons, those persons are jointly and severally liable to pay the financial penalty under it.

(2) A financial penalty payable under a financial penalty notice is to be recoverable as a civil debt if it is not paid before the end of the period specified under section 44(2)(c)(ii).

(3) Money received by the OGA under a financial penalty notice must be paid into the Consolidated Fund.

Section 47 Revocation notices

(1) This section contains provision about revocation notices which may be given under section 42 (failure to comply with a petroleum-related requirement).

(2) A revocation notice may be given only in respect of a failure to comply with a petroleum-related requirement imposed on a licensee in that capacity.

(3) Where two or more persons are the licensee in respect of a petroleum licence, the revocation notice may be given jointly to some or all of those persons.

(4) A revocation notice is a notice which—

(a) specifies the petroleum-related requirement in question,

(b) gives details of the failure to comply with the requirement,

(c) informs the person or persons to whom the notice is given that the petroleum licence held by that person or those persons is to be revoked in relation to that person, or those persons, on the date specified in the notice (“the revocation date”).

(5) The revocation date must not be earlier than the end of the period of 28 days beginning with the day on which the revocation notice was given.

(6) A revocation notice may not be given in circumstances where the licence to be revoked in accordance with the notice is one which, on the date the notice is given, the OGA would not have the power to grant.

(7) Where a licence is revoked in relation to a person in accordance with a revocation notice—

(a) the rights granted to the person by the licence cease on the revocation date;

(b) the revocation does not affect any obligation or liability imposed on or incurred by the person under the terms and conditions of the licence;

(c) the terms and conditions of the licence apply as if the licence had been revoked in accordance with those terms and conditions, subject to section 56(2).

(8) Where two or more persons are the licensee in respect of a petroleum licence and a revocation notice is given in relation to some of those persons, but not in relation to others (the “continuing licence holders”), the OGA must inform the continuing licence holders that—

(a) the revocation notice has been given, and

(b) the licence will continue to have effect in relation to them following the revocation date.

Section 48 Operator removal notices

(1) This section contains provision about operator removal notices which may be given under section 42 (failure to comply with a petroleum-related requirement).

(2) An operator removal notice may be given only in respect of a failure to comply with a petroleum-related requirement imposed on an operator under a petroleum licence in that capacity.

(3) An operator removal notice is a notice which—

(a) specifies the petroleum-related requirement;

(b) gives details of the failure to comply with the requirement;

(c) informs the operator to whom it is given that, with effect from a date specified in the notice (“the removal date”), the licensee under whose licence the operator operates (“the relevant licensee”) is to be required to remove the operator (see subsection (5)).

(4) The OGA must—

(a) give a copy of the operator removal notice to the relevant licensee, and

(b) require the relevant licensee to remove the operator with effect from the removal date.

(5) Where a licensee is required to remove an operator from a specified date, the licensee must ensure that, with effect from that date, the operator does not exercise any function of organising or supervising any of the operations of searching for, boring for, or getting petroleum in pursuance of the licensee's petroleum licence.

(6) The removal date must not be earlier than the end of the period of 28 days beginning with the day on which the operator removal notice was given.

(7) An operator removal notice may not be given in circumstances where the licence under which the operator operates is one which, on the date the notice is given, the OGA would not have the power to grant.

(8) A requirement imposed on a licensee under subsection (4)(b) is sanctionable in accordance with this Chapter.

(9) In this Chapter, “ operator under a petroleum licence ” has the same meaning as in Part 1A of the Petroleum Act 1998 (see section 9I of that Act).

Section 49 Duty of OGA to give sanction warning notices

(1) This section applies where the OGA proposes to give a sanction notice in respect of a failure to comply with a petroleum-related requirement.

(2) The OGA must give a sanction warning notice in respect of the petroleum-related requirement to—

(a) the person or persons to whom it proposes to give a sanction notice, and

(b) where it proposes to give an operator removal notice, the relevant licensee (see section 48(3)(c)).

(3) A sanction warning notice, in respect of a petroleum-related requirement, is a notice which—

(a) specifies the petroleum-related requirement,

(b) informs the person or persons to whom it is given that the OGA proposes to give a sanction notice in respect of a failure to comply with the requirement,

(c) gives details of the failure to comply with the petroleum-related requirement,

(d) informs the person or persons to whom it is given that the person or persons may, within the period specified in the notice (“the representations period”), make representations to the OGA in relation to the matters dealt with in the notice.

(4) The representations period is to be such period as the OGA considers appropriate in the circumstances.

(5) Subsections (6) and (7) apply where the OGA gives a sanction warning notice to a person or persons in respect of a petroleum-related requirement.

(6) The OGA must not give a sanction notice to the person or persons in respect of a failure to comply with the requirement until after the end of the representations period specified in the sanction warning notice.

(7) Having regard to representations made during the representations period specified in the sanction warning notice, the OGA may decide—

(a) to give the person or persons a sanction notice in respect of the failure to comply with the requirement detailed in the sanction warning notice under subsection (3)(c),

(b) to give the person or persons a sanction notice in respect of a failure to comply with the requirement which differs from the failure detailed in the sanction warning notice under subsection (3)(c), or

(c) not to give the person or persons a sanction notice in respect of a failure to comply with the requirement.

Section 50 Appeals in relation to sanction notices

(1) Where a sanction notice is given under this Chapter in respect of a failure to comply with a petroleum-related requirement, an appeal may be made—

(a) under section 51 (on the grounds that there was no such failure to comply);

(b) under section 52 (against the sanction imposed by the notice).

(2) Where an appeal is made in relation to a sanction notice, the notice ceases to have effect until a decision is made by the Tribunal to confirm, vary or cancel the notice.

(3) Where, on an appeal made in relation to a sanction notice—

(a) the Tribunal makes a decision to confirm or vary the notice, and

(b) an appeal is or may be made in relation to that decision,

the Tribunal, or the Upper Tribunal, may further suspend the effect of the notice pending a decision which disposes of proceedings on such an appeal.