The Petroleum Licensing (Exploration and Production) (Landward Areas) Regulations 2014

• Citation: S.I. 2014/1686
• Sections: 103

Section 1 Citation, commencement and interpretation

(1) These Regulations may be cited as the Petroleum Licensing (Exploration and Production) (Landward Areas) Regulations 2014 and come into force on 17th July 2014.

(2) In these Regulations—

“ landward area ” means an area of Great Britain 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);

“landward petroleum exploration licence” means a licence to search for petroleum in a landward area; and

“petroleum exploration and development licence” means a licence to search and bore for, and get, petroleum in a landward area.

Section 1A Application

(1) Except for regulations 1(2) and 2(1A) and Schedules 2A and 3A, these Regulations do not apply in relation to a landward petroleum exploration licence or a petroleum exploration and development licence in respect of an area within the Scottish onshore area.

(1A) Except for regulations 1(2) and 2(1A) and Schedules 2B and 3B, these Regulations do not apply in relation to a landward petroleum exploration licence or a petroleum exploration and development licence in respect of an area within the Welsh onshore area.

(2) In this regulation, “ Scottish onshore area ” has the meaning given in section 8A(3) of the Petroleum Act 1998 and “Welsh onshore area” has the meaning given in section 8A(5) of that Act .

Section 2 Model Clauses

(1) For the purposes of section 4(1)(e) of the Petroleum Act 1998—

(a) the model clauses prescribed for petroleum exploration and development licences are those set out in Schedule 2; and

(b) the model clauses prescribed for landward petroleum exploration licences are those set out in Schedule 3.

(1A) For the purposes of section 4(1B) of the Petroleum Act 1998—

(a) the model clauses prescribed for petroleum exploration and development licences granted by the Scottish Ministers are those set out in Schedule 2A;

(b) the model clauses prescribed for petroleum exploration and development licences granted by the Welsh Ministers are those set out in Schedule 2B;

(c) the model clauses prescribed for landward petroleum exploration licences granted by the Scottish Ministers are those set out in Schedule 3A; and

(d) the model clauses prescribed for landward petroleum exploration licences granted by the Welsh Ministers are those set out in Schedule 3B.

(2) The model clauses prescribed for petroleum exploration and development licences by regulation 3(7) and (8) of, and Schedules 6 and 7 to, the Petroleum Licensing (Exploration and Production) (Seaward and Landward Areas) Regulations 2004 do not apply in relation to any licence granted on or after the date on which these Regulations come into force.

Section 3 Review

(1) The Secretary of State must from time to time—

(a) carry out a review of these Regulations;

(b) set out the conclusions of the review in a report; and

(c) publish the report.

(2) The report must in particular—

(a) set out the objectives intended to be achieved by these Regulations;

(b) assess the extent to which those objectives are achieved;

(c) assess whether those objectives remain appropriate and, if so, the extent to which they could be achieved in a less burdensome way.

(3) The first report under this regulation must be published before the end of the period of five years beginning with the day on which this regulation comes into force.

(4) Subsequent reports under this regulation must be published at intervals not exceeding five years.

Section 1

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Section 2

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Section 3

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Section 4

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Section 5

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Section 6

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Section 7

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Section 1 Interpretation

(1) In this Licence the following expressions have the following meanings—

“ the Act ” means the Petroleum Act 1998;

“Block” means an area comprised in this licence which is delineated on the reference map deposited at the office of the Oil and Gas Authority, Aberdeen, AB10 ;

“Development Area” means a Development Area described in an approval notice under clause 19(2)(a) of this licence or, where appropriate, a notice approving an amendment to a Development Area under clause 19(5) of this licence;

“Development Scheme” has the meaning given to it in clause 28;

“Half Year” means the period from 1st January to 30th June in any year and the period from 1st July to 31st December in any year;

“Initial Term” means the period specified as such in Schedule 5 to this licence;

“the Licensed Area” means the area for the time being in which the Licensee may exercise the rights granted by this licence;

“the Licensee” means the person or persons to whom this licence is granted (specified as such in Schedule 4 to this Licence), his personal representatives and any person or persons to whom the rights conferred by this licence may lawfully have been assigned;

...

“Methane Drainage Licence” means a licence to get natural gas in the course of operations for making and keeping safe mines whether or not disused;

“the OGA” means the Oil and Gas Authority;

“Oil Field” has the meaning given to it in clause 28;

“Petroleum” includes any mineral oil or relative hydrocarbon and natural gas existing in its natural condition in strata but does not include coal or bituminous shales or other stratified deposits from which oil can be extracted by destructive distillation;

“Production Period” means the period specified as such in Schedule 5 to this Licence;

“Retention Area” means a Retention Area described in an approval notice under clause 16(1) of this licence or, where appropriate, a notice approving an amendment to Retention Area under clause 16(6) of this licence;

“Second Term” means the period specified as such in Schedule 5 to this licence;

“source-rock production” has the meaning given to it in clause 19(7);

“Start Date” means the date specified as such in Schedule 5 to this licence;

“Well” includes borehole; and

“Work Programme” means the programme set out in Schedule 3 to this licence.

(2) Any obligations which are to be observed and performed by the Licensee shall at any time at which the Licensee is more than one person be joint and several obligations.

Section 2 Right to search and bore for and get Petroleum

In consideration of the payments hereinafter provided for and the performance and observance by the Licensee of the terms and conditions herein contained, the OGA , in exercise of the powers conferred upon it by the Act, hereby grants to the Licensee exclusive licence and liberty during the continuance of this licence and subject to the provisions hereof to search and bore for, and get, Petroleum in the area described in Schedule 1 to this licence provided that nothing in this licence shall affect the right of the OGA to grant a Methane Drainage Licence in respect of the whole or any part of the Licensed Area or affect the exercise of any rights granted under any such Methane Drainage Licence.

Section 3 Term of Licence

(1) This Licence shall commence with the later of—

(a) the Start Date; and

(b) the date on which this licence was granted.

(2) Unless sooner determined under any of its provisions, and provided always that its terms and conditions continue to be performed and observed, this licence shall continue—

(a) for the Initial Term, subject to clauses 4, 6 and 9;

(b) for the Second Term, subject to clauses 5, 6 and 9; and

(c) for the Production Period, subject to clauses 7, 8 and 9.

(3) On expiry of the Production Period, the licence shall determine unless extended in accordance with clause 8.

Section 4 Determination of Licence during Initial Term where a Drill-or-Drop Period is specified

(1) Where a Drill-or-Drop Period is specified, this licence shall, unless the OGA in its discretion decides otherwise, automatically cease and determine on the expiry of that period in the event of failure by the Licensee before the expiry of that period to—

(a) take the actions that are described in Part 1 of the Work Programme; and

(b) undertake to complete on or before the expiry of the Initial Term the work described in Part 2 of the Work Programme.

(2) In this clause, “Drill-or-Drop Period” means the period (if any) specified as such in Schedule 5 to this Licence.

Section 5 Option to continue Licence as to part of the Licensed Area

(1) At any time not later than 1 month before the expiry of the Initial Term the Licensee may—

(a) subject to payment of those sums hereinafter provided for and to performance of the terms and conditions herein contained including, without limitation, those set forth in paragraph (2) of this clause; and

(b) conditional upon due performance by the Licensee of the Work Programme on or before expiry of the Initial Term,

give notice in writing to the OGA in the manner hereinafter provided that he desires this licence to continue in force in relation to part of the Licensed Area (hereinafter called “the Continuing Part”).

(2) Where the Licensee gives notice to the OGA in accordance with paragraph (1) of this clause such notice must indicate that he will determine this licence in relation to such part of the Licensed Area as shall be described by the Licensee in the notice (hereinafter called “the Surrendered Part”) in accordance with the requirements of paragraph (3) of this clause.

(3) Subject to paragraphs (4), (5) and (6) of this clause the Surrendered Part, when taken together with any one or more areas previously surrendered in accordance with clause 7 hereof, must consist of—

(a) not less than half of the Initial Licenced Area; or

(b) so much of the Initial Licensed Area as is not—

(i) a Retention Area; or

(ii) a Development Area.

(4) The Licensee shall not be obliged to surrender so much of the Licensed Area that following such surrender the Licensed Area comprises less than 25 square kilometres.

(5) The Licensee shall not be obliged to surrender such part of the Licensed Area as the OGA considers, on an application being made to the OGA in that regard by the Licensee, necessary to secure the recovery of Petroleum from such area.

(6) Paragraph (2) of clause 9 of this licence applies to the Surrendered Part as it applies to parts of the Licenced Area surrendered under paragraph (1) of that clause.

(7) Any notice served in accordance with paragraph (1) of this clause shall specify a date not later than expiry of the Initial Term on which the Surrendered Part is to be surrendered.

(8) This licence shall, upon the option conferred by this clause being duly exercised but subject to the provisions of clause 3 of this licence, continue in respect of the Continuing Part for the Second Term.

Section 6 Extension of the Initial or Second Term

(1) This clause applies to an extension to be made to the Initial Term or as the case may be to the Second Term (“the relevant term”).

(2) At any time not later than one month before the expiry of the relevant term the Licensee may, subject to payment of the sums specified in Schedule 2 and to performance of the terms and conditions herein contained, give notice in writing to the OGA that he desires that term to be extended for a further period.

(3) Where notice is given in pursuance of paragraph (2) of this clause, the OGA may in its discretion direct in writing that the relevant term be extended; and paragraph (2) of this clause shall apply to that term as so extended.

(4) An extension given by a direction in pursuance of this clause shall be for a period, and subject to such conditions, as the OGA may determine.

(5) Where a relevant term is extended in pursuance of this clause, clause 3 shall apply in respect of that term as so extended.

(6) Where the Initial Term is extended by a period in pursuance of this clause, the Second Term shall (without prejudice to paragraph (2)) be reduced by the same amount; and where the Second Term is extended by a period in pursuance of this clause, the Production Period shall be reduced by the same amount.

Section 7 Continuance of Licence after the Second Term (5)

(1) At any time not later than three months before the expiry of the Second Term the Licensee may, subject to payment of those sums hereinafter provided for and to performance of the terms and conditions herein contained, give notice in writing to the OGA that he desires this licence to continue in force thereafter.

(2) If such notice is given this licence shall continue in force after the expiry of the Second Term as provided by the following paragraphs of this clause in the event that before such expiry—

(a) the OGA has in pursuance of clause 17(4) of this licence approved a programme submitted to it in pursuance of clause 17(2) and such approval is still in force upon expiry of the Second Term;

(b) the OGA has served a programme on the Licensee in pursuance of clause 17(6) of this licence and such programme is still in force upon expiry of the Second Term; or

(c) the OGA has with a view to securing the maximum economic recovery of Petroleum so directed in writing.

(3) Where this licence continues in force by virtue of this clause it shall, subject to the provisions of clause 3 of this licence, so continue during the Production Period.

(4) A direction given by the OGA in pursuance of sub-paragraph (2)(c) of this clause may be given subject to such conditions as it may specify.

Section 8 Power further to extend term of Licence

Where this licence has continued in force by virtue of clause 7 of this licence for the Production Period, the OGA , on application being made to it in writing not later than one month before the expiry of such period, may agree with the Licensee that the Production Period shall be extended for such further period as the OGA and the Licensee may agree in order to secure the maximum economic recovery of Petroleum from the Licensed Area and subject to such modification of the terms and conditions of this licence (which modification may include making provision for any further extension of the term of this licence) as the OGA and the Licensee may then agree is appropriate.

Section 9 Right of Licensee to determine Licence or surrender part of Licensed Area

(1) Without prejudice to any obligation or liability imposed by or incurred under the terms hereof, the Licensee may, at any time, determine this licence or surrender any part of the Licensed Area as is mentioned in paragraph (2) of this clause by giving to the OGA not less than one month’s notice in writing to that effect.

(2) Any area to be surrendered in accordance with paragraph (1) of this clause shall be a clearly defined two-dimensional area whose surrender will leave a retained area the boundaries of which—

(a) run north, south, east and west; and

(b) each extend for 100 metres or a multiple of 100 metres;

provided that the OGA may agree in writing prior to the date on which notice is given by the Licensee under paragraph (1) of this clause to accept a surrender of part of the Licensed Area which does not comply with the requirements of this paragraph, which may include agreement to accept the surrender of a clearly defined three-dimensional area.

Section 10 Consequences of determination or surrender by Licensee

Upon the date on which any determination of this licence or any surrender of part of the Licensed Area in the manner provided by either clause 5 or clause 9 of this licence is to take effect, the rights granted by this licence shall cease in respect of the Licensed Area or of the part so surrendered as the case may be but without prejudice to any obligation or liability imposed upon the Licensee or incurred by him under the terms of this licence prior to that date.

Section 11 Provision of contact details to OGA

(1) A notice, direction or other document authorised or required (in whatever terms) to be given to the Licensee by virtue of this licence is treated as given to the Licensee if it is given to the person specified by the Licensee under paragraph (2) at the address so specified.

(2) The Licensee must supply the OGA with the name and address of a person to whom notices, directions and other documents are to be given.

(3) The Licensee must ensure that, where there is a change in the person to whom, or the address to which, information should be sent in accordance with paragraph (2), the OGA is notified of the change as soon as is reasonably practicable.

(4) If the Licensee fails to comply with paragraph (2) the OGA may give the Licensee a notice which—

(a) requires the Licensee to comply with paragraph (2) within the period of one month beginning with the date of the notice, and

(b) states that, if the Licensee fails to do so, the Licensee will be treated as having supplied under paragraph (2) the name and address specified by the OGA in the notice.

Section 12 Payment of consideration for Licence

(1) The Licensee shall make to the OGA as consideration for the grant of this licence payments in accordance with Schedule 2 to this licence.

(2) The Licensee shall not by reason of determination of this licence or surrender of any part of the Licensed Area be entitled to be repaid or allowed any sum payable to the OGA pursuant to this licence before the date of determination or surrender.

Section 13 Measurement of Petroleum obtained from the Licensed Area

(1) The Licensee shall measure or weigh by a method or methods customarily used in good oilfield practice and from time to time approved by the OGA all Petroleum won and saved from the Licensed Area.

(2) If and to the extent that the OGA so directs, the duty imposed by paragraph (1) of this clause shall be discharged separately in relation to Petroleum won and saved—

(a) from each part of the Licensed Area which is an Oil Field for the purposes of the Oil Taxation Act 1975;

(b) from each part of the Licensed Area which forms part of such an Oil Field extending beyond the Licensed Area; and

(c) from each Well producing Petroleum from a part of the Licensed Area which is not within such an Oil Field.

(3) If and to the extent that the OGA so directs, the preceding provisions of this clause shall apply as if the duty to measure or weigh Petroleum included a duty to ascertain its quality or composition or both; and where a direction under this paragraph is in force, the following provisions of this clause shall have effect as if references to measuring or weighing included references to ascertaining quality or composition.

(4) The Licensee shall not make any alteration in the method or methods of measuring or weighing used by him or in any appliances used for that purpose without the consent in writing of the OGA and the OGA may in any case require that no alteration shall be made save in the presence of a person authorised by the OGA .

(5) The OGA may from time to time direct that any weighing or measuring appliance shall be tested or examined in such manner, upon such occasions or at such intervals and by such persons as may be specified by the OGA’s direction ...

(6) If any measuring or weighing appliance shall upon any such test or examination as is mentioned in paragraph (5) of this clause be found to be false or unjust the same shall, if the OGA so determines after considering any representations in writing made by the Licensee, be deemed to have existed in that condition during the period since the last occasion upon which the same was tested or examined pursuant to paragraph (5) of this clause.

Section 14 Keeping of accounts

(1) The Licensee shall keep in the United Kingdom full and correct accounts in a form from time to time approved by the OGA of—

(a) the quantity of Petroleum in the form of gas won and saved;

(b) the quantity of Petroleum in any other form won and saved;

(c) the name and address of any person to whom any Petroleum has been supplied by the Licensee, the quantity so supplied, the price or other consideration therefor and the place to which the Petroleum was conveyed pursuant to the agreement for such supply; and

(d) such other particulars as the OGA may from time to time direct.

(2) The quantities of Petroleum stated in such accounts may exclude any water separated from the Petroleum and shall be expressed as volumes in cubic metres measured at, or calculated as if measured at, a temperature of 15° Celsius and a pressure of 1.0132 bar but if the OGA serves notice in writing on the Licensee determining any other manner in which any quantity of Petroleum or any quantity of any form of Petroleum is to be expressed that quantity shall be so expressed.

(3) Such accounts shall state separately the quantities of Petroleum used for the purposes of carrying on drilling and production operations and pumping to field storage and the quantities not so used, and in the case of Petroleum not in the form of gas shall state the specific gravity of the Petroleum and, if Petroleum of different specific gravities has been won and saved, the respective quantities of Petroleum of each specific gravity.

(4) The Licensee shall within two months after the end of each Half Year in which this licence is in force and within two months after the expiration or determination of this licence deliver to the OGA an abstract in a form from time to time approved by the OGA of the accounts for that Half Year or for the period prior to such expiration or determination as the case may be.

Section 15 Working obligations

(1) Subject to paragraph (2) of this clause, the Licensee shall during the Initial Term of this licence carry out with due diligence the Work Programme.

(2) Paragraph (1) of this clause does not require the Licensee to carry out any part of the Work Programme described as a “Drill-or-Drop Provision” unless he has given an undertaking in accordance with clause 4(1)(b) of this Licence.

(3) The Licensee shall give the OGA at least 21 days’ written notice of any proposed seismic survey, during the term of this licence, of any area which is not wholly on the seaward side of the low water line in such a form as shall from time to time be approved by the OGA . Such notice shall include evidence that the planning authorities for the area to be surveyed have been consulted about the proposed survey and, in a case where any planning permission under the Town and Country Planning Act 1990 or the Town and Country Planning (Scotland) Act 1972 is required for the survey in question, evidence that such permission has been granted.

(4) The Licensee shall not carry out any seismic survey during the term of this licence of any such area as is mentioned in paragraph (3) of this clause if notice has not been given as required by that paragraph or if the OGA indicates to the Licensee within 14 days of the receipt of such notice that the survey is not to be carried out.

(5) If at any time during the term of this licence the OGA serves a notice in writing on the Licensee requiring him to submit to the OGA , before a date specified in the notice, an appropriate programme for exploring for, or carrying out appraisals of the amount of or the feasibility of getting, Petroleum in the Licensed Area during a period so specified, the Licensee shall comply with the notice; and for the purposes of this paragraph an appropriate programme is one which any person who, if he—

(a) were entitled to exploit the rights granted by this licence;

(b) had the competence and resources needed to exploit those rights to the best commercial advantage; and

(c) were seeking to exploit those rights to the best commercial advantage,

could reasonably be expected to carry out during the period specified in the notice, being a period within the term of this licence.

(6) If a programme is submitted to the OGA in consequence of a notice served by it in pursuance of paragraph (5) of this clause, then—

(a) it shall not be entitled to revoke this licence on the ground that the programme does not satisfy the requirements of that paragraph (hereafter in this clause referred to as “the Relevant Requirements”); but

(b) if it is of opinion that the programme does not satisfy the Relevant Requirements it may serve a notice in writing on the Licensee stating its opinion and the reasons for it.

(7) Where notice in respect of a programme is served on the Licensee in pursuance of paragraph (5) of this clause he shall either—

(a) within 28 days beginning with the date of service of the notice refer to arbitration, in the manner provided by clause 44 of this licence, the question whether the programme satisfies the Relevant Requirements; or

(b) within a reasonable period beginning with the date of service of such notice submit to the OGA a further programme which satisfies the Relevant Requirements;

and where it is determined in consequence of any reference to arbitration in pursuance of sub-paragraph (a) of this paragraph that the programme in question does not satisfy the Relevant Requirements the Licensee shall submit to the OGA , as soon as possible after the date of the determination, a further programme which satisfies the Relevant Requirements.

(8) The Licensee shall carry out any programme submitted by him in pursuance of this clause as to which either—

(a) the OGA serves notice in writing on the Licensee stating that the OGA approves the programme; or

(b) it is determined in consequence of any reference to arbitration in pursuance of clause 44 of this licence that the programme satisfies the relevant requirements;

and any programme approved by the OGA in pursuance of this paragraph shall be deemed for the purposes of this licence to satisfy the Relevant Requirements.

(9) Where, in consequence of any breach or non-observance by the Licensee of any provision of paragraph (5), (7) or (8) of this clause, the OGA has power by virtue of paragraph (1) of clause 41 of this licence to revoke this licence, it may if it thinks fit exercise that power in relation to such part only of the Licensed Area as it may specify; and where it does so the rights granted by this licence shall cease in respect of the specified part of that area without prejudice to any obligation or liability imposed upon the Licensee or incurred by him under the terms of this licence.

(10) Where the Licensee has a duty by virtue of this clause to carry out a programme during a part of the term of this licence, the OGA may serve notice in pursuance of paragraph (5) of this clause in respect of another part of that term.

Section 16 Retention Areas

(1) The Licensee may apply in writing to the OGA for part of the Licenced Area to be a Retention Area, and the OGA may approve the proposal by notice.

(2) An application to the OGA in respect of a Retention Area shall—

(a) define the geographical location of the Retention Area, which may be expressed as a three dimensional space within the Licenced Area, but the proposed Retention Area shall not include any area which is—

(i) within the geographical location of another Retention Area, unless the application is to replace that Retention Area with the proposed Retention Area; or

(ii) within the geographical location of a Development Area;

(b) propose a date for the expiry of the Retention Area; and

(c) include a Retention Area Plan describing the exploration and appraisal activities that the Licensee intends to carry out in the Retention Area and the timescales over which those activities are to be carried out.

(3) A notice approving a Retention Area shall—

(a) state the geographical location of the Retention Area;

(b) state the expiry date for the Retention Area;

(c) set out the Retention Area Plan; and

(d) state the approval date for the Retention Area.

(4) A Retention Area expires if—

(a) it, or any part of it, is replaced by another Retention Area;

(b) it, or any part of it, is replaced by a Development Area;

(c) the expiry date is passed; or

(d) subject to paragraph (5) of this clause, the OGA directs by notice in writing that the Retention Area is terminated on the grounds that the Licensee has failed to carry out the activities described in the Retention Area Plan over the timescales described in that Plan.

(5) The OGA may only give a notice in pursuance of sub-paragraph (4)(d) of this clause if the activities described in that sub-paragraph have not been carried out before the date on which the notice is given.

(6) The Licensee may, at any time after the approval of a Retention Area, apply in writing to the OGA to amend—

(a) the geographical location of a Retention Area;

(b) the expiry date for a Retention Area; or

(c) a Retention Area Plan;

and the OGA may approve the amendment by notice in writing.

(7) A notice approving an amendment as described in paragraph (6) of this clause shall—

(a) state the new geographical location or expiry date or set out the new Retention Area Plan (or any combination of them, as the case may be); and

(b) state the approval date for the amendment.

Section 17 Development and production programmes

(1) The Licensee shall not—

(a) erect or carry out any Relevant Works, either in the Licensed Area or elsewhere, for the purpose of getting Petroleum from that area or for the purpose of conveying to a place on land Petroleum got from that area; or

(b) get Petroleum from that area otherwise than in the course of searching for Petroleum or drilling Wells,

except in accordance with a programme which the OGA has approved or served on the Licensee in pursuance of the following provisions of this clause.

(2) The Licensee shall prepare and submit to the OGA , in such form and by such time and in respect of such period during the term of this licence as the OGA may direct, a development programme specifying—

(a) the Relevant Works which the Licensee proposes to erect or carry out during that period for either of the purposes mentioned in paragraph (1)(a) of this clause;

(b) the proposed locations of the works, the purposes for which it is proposed to use the works and the times at which it is proposed to begin and to complete the erection or carrying out of the works; and

(c) the maximum and minimum quantities of Petroleum in the form of gas and the maximum and minimum quantities of Petroleum in other forms which—

(i) in each calendar year; or

(ii) in each such period of more or less than one calendar year as may be specified by the OGA

the Licensee proposes to get as mentioned in paragraph (1)(b) of this clause.

(3) If the OGA directs the Licensee—

(a) to prepare different programmes in pursuance of paragraph (2) of this clause in respect of Petroleum from such different parts of the Licensed Area as are specified in the direction; or

(b) where a programme approved or served in pursuance of this clause relates to a particular period during the term of this licence, to prepare a programme or programmes in pursuance of paragraph (2) of this clause in respect of a further period or further periods during that term,

the Licensee shall comply with the direction.

(4) It shall be the duty of the OGA expeditiously to consider any programme submitted to it in pursuance of paragraph (2) of this clause and when it has done so to give notice in writing to the Licensee stating—

(a) that the OGA approves the programme subject to such conditions as may be specified in the notice as the OGA considers necessary to secure the maximum economic recovery of Petroleum from the Licensed Area;

(b) that the OGA approves the programme subject to one or more of the following conditions, namely—

(i) that such of the Relevant Works as are specified in the notice shall not be used before the expiration of the period so specified in relation to the works,

(ii) that such of the Relevant Works as are specified in the notice shall not be used without the consent in writing of the OGA , or

(iii) that such of the Relevant Works as are specified in the notice may only be used, or that their use must cease, in such circumstances as are specified in the notice; or

(c) that the OGA rejects the programme on one or more of the following grounds, namely—

(i) that the carrying out of any proposals included in the programme in pursuance of paragraph (2) of this clause would be contrary to good oilfield practice;

(ii) that the proposals included in the programme in pursuance of sub-paragraph (c) of the said paragraph (2) are, in the opinion of the OGA , not in the national interest;

(iii) that the proposals included in the programme do not, in the opinion of the OGA , secure the maximum economic recovery of Petroleum in the proposed locations of the works;

and a notice in pursuance of sub-paragraph (a) or (b) of this paragraph may contain different conditions in respect of different works but shall not be given unless the OGA is satisfied that the condition mentioned in the notice is required in the national interest.

(5) Where the OGA gives notice of rejection of a programme in pursuance of sub-paragraph (c) of paragraph (4) of this clause, then—

(a) if the grounds of the rejection consist of or include the ground mentioned in paragraph (i) or (iii) of that sub-paragraph it shall include in the notice a statement of the matters in consequence of which it rejected the programme on that ground;

(b) if the grounds of the rejection consist of or include the ground mentioned in paragraph (ii) of that sub-paragraph it shall include in the notice a statement of the rates at which it considers that, in the national interest, Petroleum should be got from the area to which the programme relates; and

(c) the Licensee shall prepare and submit to the OGA , before the time specified in that behalf in the notice,—

(i) where the notice contains such a statement as is mentioned in sub-paragraph (a) above, modifications of the programme which ensure that the carrying out of the programme with those modifications would not be contrary to good oilfield practice or would secure the maximum economic recovery of Petroleum in the proposed locations of the works;

(ii) where the notice contains such a statement as is mentioned in sub-paragraph (b) above, modifications of the programme which ensure the getting of Petroleum from the area to which the programme relates at the rates specified in the statement and which (except so far as may be necessary in order to get Petroleum at those rates) are not such that the carrying out of the programme with those modifications would be contrary to good oilfield practice;

but the Licensee shall not be required by virtue of paragraph (i) of this sub-paragraph to submit modifications if it is determined in consequence of any reference to arbitration in the manner provided by clause 44 of this licence that the carrying out of the programme without modifications would not be contrary to good oilfield practice.

(6) If the OGA gives notice in writing to the Licensee that the OGA approves the modifications of a programme which have been submitted to it in pursuance of sub-paragraph (c) of paragraph (5) of this clause, the programme with those modifications shall be deemed to be approved by the OGA ; but if the Licensee fails to perform the duty imposed on him by that sub-paragraph the OGA may, if it thinks fit, instead of revoking this licence in consequence of the failure, serve on the Licensee such a programme as the OGA considers that the Licensee should have submitted to it in respect of the area and period to which the rejected programme related.

(7) Where the OGA proposes to approve a programme subject to a condition in pursuance of paragraph (4)(a) or (b) of this clause or to reject a programme in pursuance of paragraph (4)(c) of this clause or to serve a programme on the Licensee in pursuance of paragraph (6) of this clause it shall before doing so—

(a) give the Licensee particulars of the proposal and an opportunity to make representations to the OGA about the technical and financial factors which the Licensee considers are relevant in connection with the proposal; and

(b) consider any such representations then made to it by the Licensee.

(8) The Licensee shall carry out any programme approved or served on him by the OGA in pursuance of this clause or, if such a programme is varied in pursuance of clause 18 of this licence, the programme as so varied, except in so far as the Licensee is authorised in writing by the OGA to do otherwise or is required to do otherwise by such a condition as is mentioned in paragraph (4)(a) or (b) of this clause; but if it is necessary to carry out certain works in order to comply with provisions included in a programme by virtue of paragraph (5)(c) of this clause or provisions of a programme served on the Licensee in pursuance of paragraph (6) of this clause or provisions of a programme as varied in pursuance of clause 18 of this licence, then, notwithstanding anything in the programme as to the time when those provisions are to be complied with, the Licensee shall not be treated as having failed to comply with those provisions before the expiration of the period reasonably required for carrying out the works.

(9) In this clause “Relevant Works” means any structures and any other works whatsoever which are intended by the Licensee to be permanent and are neither designed to be moved from place to place without major dismantling nor intended by the Licensee to be used only for searching for Petroleum.

Section 18 Provisions supplementary to clause 17

(1) Where—

(a) the OGA gives notice in respect of a programme in pursuance of sub-paragraphs (4)(a) or (b) or paragraph (6) of clause 17 of this licence or serves a programme in pursuance of the said paragraph (6); or

(b) it is determined in consequence of any reference to arbitration in the manner provided by clause 44 of this licence that the Licensee is not required by virtue of paragraph (i) of clause 17(5)(c) of this licence to submit modifications of a programme in respect of which notice of rejection containing such a statement as is mentioned in the said paragraph (i) was given by the OGA in pursuance of clause 17(4)(c) of this licence,

the OGA may give to the Licensee, with the notice given or the programme served as mentioned in sub-paragraph (a) of this paragraph or, in a case falling within sub-paragraph (b) of this paragraph, within the period of three months beginning with the date of the arbitrator’s or arbiter’s determination, a notice (hereafter in this clause referred to as a “Limitation Notice”) authorising the OGA , by a further notice given to the Licensee from time to time after the expiration of the period specified in that behalf in the Limitation Notice, to provide that the programme to which the Limitation Notice relates shall have effect while the further notice is in force with the substitution for any quantity of Petroleum or any period specified in the programme in pursuance of clause 17(2)(c) of this licence of a different quantity of Petroleum or a different period specified in the further notice.

(2) A quantity or period specified in such a further notice as that to be substituted for a quantity or period which is specified in the programme in question shall be such as to secure that the expenditure to be incurred by the Licensee in complying with the further notice, in a case where an effect of the notice is to increase the quantity of Petroleum which the Licensee is required to get from the Licensed Area in any period, is less than the cost of drilling a new Well in the Licensed Area at the time when the further notice is given.

(3) Where the OGA proposes to give a Limitation Notice or any such further notice as aforesaid it shall before doing so—

(a) give the Licensee particulars of the proposal and an opportunity to make representations to the OGA about the technical and financial factors which the Licensee considers are relevant in connection with the proposal; and

(b) consider any such representations then made to it by the Licensee;

and the OGA shall not give such a further notice of which an effect is to increase the quantity of Petroleum which the Licensee is required to get from the Licensed Area during any period unless the OGA is satisfied that the notice is required by reason of a national emergency and shall not give any other such further notice as aforesaid unless it is satisfied that the notice is required in the national interest.

(4) A Limitation Notice or any such further notice as aforesaid may—

(a) specify any quantity or period by reference to such factors as the OGA thinks fit; and

(b) in the case of such a further notice, contain provisions as to—

(i) the date when the notice is to come into force,

(ii) the date when the notice is to cease to be in force,

and specify different dates in pursuance of this sub-paragraph for different provisions of the notice;

and the OGA may revoke such a further notice at a particular time by serving on the Licensee a notice in writing stating that the further notice is revoked at that time.

(5) Any question arising under clause 17 of this licence or this clause as to what is, is not or is required in the national interest or as to what is, is not or is required by reason of, a national emergency shall be determined by the OGA .

(6) The Licensee shall ensure that any conditions to which an approval is subject in pursuance of clause 17(4)(a) or (b) of this licence are complied with.

(7) If in respect of part of the Licensed Area—

(a) an approval has been given in pursuance of paragraph (1) of clause 17 of this licence; or

(b) the Licensee has submitted to the OGA , in accordance with a direction given by virtue of sub-paragraph (3)(a) of that clause, a programme in pursuance of paragraph (2) of that clause—

(i) as respects which the OGA has served notice in pursuance of sub-paragraphs (4)(a) or (b) or paragraph (6) of that clause, or

(ii) in consequence of which the OGA has served a programme on the Licensee in pursuance of the said paragraph (6), or

(iii) in respect of which it has been determined in consequence of any reference to arbitration in the manner provided by clause 44 of this licence that the Licensee is not required by virtue of sub-paragraph (5)(c)(i) of that clause to submit modifications,

paragraph (1) of clause 41 of this licence shall not authorise the OGA to revoke this licence in relation to that part of the Licensed Area in consequence of any breach or non-observance, during the period to which the programme relates, of any provision of the said clause 17 in connection with a different part of the Licensed Area.

(8) Where in consequence of any breach or non-observance by the Licensee of any provision of clause 17 of this licence the OGA has power by virtue of paragraph (1) of clause 41 of this licence to revoke this licence or, in consequence of paragraph (7) of this clause, to revoke it in respect of part only of the Licensed Area, it may if it thinks fit—

(a) in a case where it has power to revoke this licence, exercise the power in relation to such part only of the Licensed Area as it may specify; and

(b) in a case where by virtue of the said paragraph (7) it has power to revoke it in respect of part only of the Licensed Area, exercise the power in relation to such portion only of that part as it may specify;

and where in consequence of the said paragraph (7) or by virtue of the preceding provisions of this paragraph the OGA revokes this licence in respect of a part or portion of the Licensed Area, the rights granted by this licence shall cease in respect of that part or portion without prejudice to any obligation or liability imposed upon the Licensee or incurred by him under the terms of this licence.

Section 19 Development areas

(1) At the same time as the Licensee submits to the OGA a development programme by virtue of paragraph (2) of clause 17, he must also—

(a) define one or more geographical locations, within which the Relevant Works are to take place, which are to be “Development Areas”;

(b) state the latest date by which the Licensee will get petroleum within each Development Area; and

(c) where the Licensee intends to carry out source-rock production, include a Development Area Plan in respect of each Development Area, setting out the activities that the Licensee intends to carry out in the Development Area in order to get Petroleum and the timescales over which those activities are to be carried out.

(2) It shall be the duty of the OGA expeditiously to consider any application in respect of a Development Area submitted to it in pursuance of paragraph (1) of this clause and when it has done so to direct by notice in writing to the Licensee—

(a) that it approves the Development Area, in which case it shall include in the notice—

(i) the geographical location of the Development Area;

(ii) the date by which the Licensee must get petroleum within the Development Area;

(iii) the approval date for the Development Area; and

(iv) where a Development Area Plan in respect of a Development Area has been included in the application, the Development Area Plan; or

(b) that it rejects the Development Area, with a statement of its reasons for rejecting it.

(3) A Development Area expires if—

(a) it, or any part of it, is replaced by another Development Area;

(b) subject to paragraph (4) of this clause, the OGA directs by notice in notice in writing that the Development Area is terminated on the grounds that—

(i) the Licensee has failed to get petroleum by the date specified in the notice approving the Development Area;

(ii) there is no Development Area Plan in respect of the Development Area and the Licensee has ceased getting petroleum within the Development Area; or

(iii) the Licensee has failed to carry out the activities described in any Development Area Plan out over the timescales described in that Plan.

(4) The OGA may only give a notice in pursuance of sub-paragraph (3)(b)(iii) of this clause if the activities described in the Development Area Plan have not been carried out before the date on which the notice is given.

(5) The Licensee may, at any time after the approval of a Development Area, apply in writing to the OGA to propose an amendment to—

(a) the geographical location of the Development Area;

(b) the date by which he must first get petroleum within the Development Area; or

(c) a Development Area Plan;

and the OGA may direct by notice in writing that the amendment is approved.

(6) A notice approving an amendment as described in paragraph (5) of this clause shall—

(a) state the new geographical location or date or set out the new Development Area Plan (or any combination of them, as the case may be); and

(b) state the approval date for the amendment.

(7) In this clause, “source-rock production” means the getting of Petroleum contained in—

(a) shale or other strata encased in shale; or

(b) coal seams;

by drilling Wells into the strata in which that Petroleum is contained.

Section 20 Commencement and abandonment and plugging of Wells

(1) The Licensee shall not commence or recommence the drilling of any Well without the consent in writing of the OGA .

(2) Subject to paragraph (7), the Licensee shall not abandon any Well without the consent in writing of the OGA .

(3) The Licensee shall ensure compliance with any conditions subject to which any consent under either of the foregoing paragraphs is given.

(4) If any such condition under paragraph (1) of this clause relates to the position, depth or direction of the Well, or to any casing of the Well or if any condition under either paragraph (1) or paragraph (2) of this clause relates to any plugging or sealing of the Well, the OGA may from time to time direct that the Well and all records relating thereto shall be examined in such manner, upon such occasions or at such intervals and by such person as may be specified by the OGA’s direction and the Licensee shall pay to any such person or to the OGA such fees and expenses for such examination as the OGA may specify.

(5) The plugging of any Well shall be done in accordance with a specification approved by the OGA applicable to that Well or to Wells generally or to a class of Wells to which that Well belongs and shall be carried out in an efficient and workmanlike manner.

(6) The OGA may at any time give the Licensee a notice requiring a well drilled pursuant to this licence to be plugged and abandoned in accordance with paragraph (5) within the period specified in the notice (but this paragraph is subject to paragraph (8)).

(7) The Licensee shall comply with any notice under paragraph (6).

(8) A notice under paragraph (6) may be given only in relation to a well from which the Licensee has not extracted any petroleum within the period of one month ending with the day on which the notice is given.

(9) Subject to paragraphs (6) to (8), (10) and (11) of this clause, any Well drilled by the Licensee pursuant to this licence shall be plugged and sealed in accordance with paragraphs (2), (3), (4) and (5) of this clause, not less than one month before the expiry or determination of the Licensee’s rights in respect of the area or part thereof in which that Well is drilled.

(10) A direction by the OGA may be given by notice in writing to the Licensee not less than one month before the Licensee’s rights in respect of the area or part thereof in which the Well is situate expire or determine, so as to relieve the Licensee of the obligation imposed by paragraph (9) of this clause to plug and seal the Well.

(11) Where the OGA revokes this licence, any Well drilled by the Licensee pursuant to this licence shall—

(a) be plugged and sealed in accordance with paragraphs (2), (3), (4) and (5) of this clause, as soon as reasonably practicable; or

(b) if the OGA so directs at the time of revocation, be left in good order and fit for further working together with all casings and any Well head fixtures the removal whereof would cause damage to such Wells.

(12) Any Well that, pursuant to a direction by the OGA under paragraph (10) of this clause, has not been plugged and sealed, shall be left in good order and fit for further working together with all casings and any Well head fixtures the removal whereof would cause damage to such Wells.

(13) All casings and fixtures forming part of a Well and left in position at the expiry or determination (whether by revocation or otherwise) of the Licensee’s rights in respect of the area or part thereof in which that Well is drilled, or at the completion of any works required of the Licensee under paragraph (11) of this clause (whichever is the later), shall be the property of the OGA .

Section 21 Distance of Wells from boundaries of Licensed Area

No Well shall except with the consent in writing of the OGA be drilled or made so that any part thereof is less than one hundred and twenty-five metres from any of the boundaries of the Licensed Area.

Section 22 Control of Development Wells

(1) The Licensee shall not suspend work on the drilling of a Development Well, or having suspended it in accordance with this paragraph shall not begin it again, except with the consent in writing of the OGA and in accordance with the conditions, if any, subject to which the consent is given.

(2) When work on the drilling of a Development Well is suspended in accordance with paragraph (1) of this clause, the Licensee shall forthwith furnish the OGA with such information relating to the Well as the OGA may specify.

(3) The Licensee—

(a) shall not do any Completion Work in respect of a Well in the Licensed Area except in accordance with a programme of Completion Work approved by the OGA in respect of the Well;

(b) shall furnish to the OGA , in accordance with the provisions of such a programme, particulars of any Completion Work done by him in respect of a Well in the Licensed Area; and

(c) shall not remove or alter any casing or equipment installed by way of Completion Work in respect of a Well except with the consent in writing of the OGA and in accordance with the conditions, if any, subject to which the consent is given.

(4) In this clause—

“Completion Work”, in relation to a Well, means work, by way of the installation of a casing or equipment or otherwise, after the Well has been drilled, for the purpose of bringing the Well into use as a Development Well; and

“Development Well” means a Well which the Licensee uses or intends to use in connection with the getting of Petroleum in the Licensed Area, other than a Well which for the time being he uses or intends to use only for searching for Petroleum.

Section 22A Prohibition on hydraulic fracturing in Protected Areas in England and Wales

(1) The Licensee shall not carry out Relevant Hydraulic Fracturing from a Well if any part of the well pad is in a Protected Area in England or Wales.

(2) In this clause—

(a) “Protected Area” means any area which is—

(i) a protected groundwater source area or other protected area as defined by regulations 2 and 3 of the Onshore Hydraulic Fracturing (Protected Areas) Regulations 2016;

(ii) a European site as defined by regulation 8(1) of the Conservation of Habitats and Species Regulations 2017 ;

(iii) a site of special scientific interest notified in accordance with section 28 of the Wildlife and Countryside Act 1981 unless the notification has ceased to have effect by virtue of subsection (6) of that section; or

(iv) designated under paragraph 1 of article 2 of the Ramsar Convention for inclusion in the list of wetlands of international importance referred to in that article;

(b) “Ramsar Convention” has the meaning given in section 37A(4) and (5) of the Wildlife and Countryside Act 1981;

(c) “Relevant Hydraulic Fracturing” means hydraulic fracturing of shale or strata encased in shale which is carried out in connection with the use of a Well to search or bore for or get petroleum, and involves, or is expected to involve, the injection of—

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

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

Section 23 Provision of storage tanks, pipes, pipelines or other receptacles

The Licensee shall use methods and practice customarily used in good oilfield practice for confining the Petroleum obtained from the Licensed Area in tanks, gasholders, pipes, pipe-lines or other receptacles constructed for that purpose.

Section 24 Avoidance of harmful methods of working

(1) The Licensee shall maintain all apparatus and appliances and all Wells in the Licensed Area which have not been abandoned and plugged as provided by clause 20 of this licence in good repair and condition and shall execute all operations in or in connection with the Licensed Area in a proper and workmanlike manner in accordance with methods and practice customarily used in good oilfield practice and without prejudice to the generality of the foregoing provision the Licensee shall take all steps practicable in order—

(a) to control the flow and to prevent the escape or waste of Petroleum discovered in or obtained from the Licensed Area;

(b) to conserve the Licensed Area for productive operations;

(c) to prevent damage to adjoining Petroleum-bearing strata;

(d) to prevent the entrance of water through Wells to Petroleum-bearing strata except for the purposes of secondary recovery; and

(e) to prevent the escape of Petroleum into any waters in or in the vicinity of the Licensed Area.

(2) The Licensee shall comply with any instructions from time to time given by the OGA in writing relating to any of the matters set out in the foregoing paragraph. If the Licensee objects to any such instruction on the ground that it is unreasonable he may, within fourteen days from the date upon which the same was given, refer the matter to arbitration in manner provided by clause 44 of this licence.

(3) Notwithstanding anything in the preceding provisions of this clause, the Licensee shall not—

(a) flare any gas from the Licensed Area; or

(b) use gas for the purpose of creating or increasing the pressure by means of which Petroleum is obtained from that area,

except with the consent in writing of the OGA and in accordance with the conditions, if any, of the consent.

(4) Before deciding to withhold consent or to grant it subject to conditions in pursuance of paragraph (3) of this clause, the OGA shall give the Licensee an opportunity to make representations in writing to the OGA about the technical and financial factors which the Licensee considers are relevant in connection with the case and shall consider any such representations then made to it by the Licensee.

(5) Consent in pursuance of paragraph (3) of this clause shall not be required for any flaring which, in consequence of an event which the Licensee did not foresee in time to deal with it otherwise than by flaring, is necessary in order—

(a) to remove or reduce the risk of injury to persons in the vicinity of the Well in question; or

(b) to maintain a flow of Petroleum from that or any other Well;

but when the Licensee does any flaring which is necessary as aforesaid he shall forthwith inform the OGA that he has done it and shall, in the case of flaring to maintain a flow of Petroleum, stop the flaring upon being directed by the OGA to do so.

(6) The Licensee shall give notice to the OGA of any event causing the escape or waste of Petroleum, damage to Petroleum-bearing strata or the entrance of water through Wells to Petroleum-bearing strata except for the purposes of secondary recovery forthwith after the occurrence of that event and shall, forthwith after the occurrence of any event causing the escape of Petroleum into the sea, give notice of the event to the Chief Inspector of Her Majesty’s Coastguard.

(7) The Licensee shall comply with any reasonable instructions from time to time given by the OGA with a view to ensuring that funds are available to discharge any liability for damage attributable to the release or escape of Petroleum in the course of activities connected with the exercise of rights granted by this licence; but where the OGA proposes to give such instructions it shall before giving them—

(a) give the Licensee particulars of the proposal and an opportunity to make representations to the OGA about the proposal; and

(b) consider any representations then made to it by the Licensee about the proposal.

Section 25 Appointment of operators

(1) The Licensee shall ensure that another person (including, in the case where the Licensee is two or more persons, any of those persons) does not exercise any function of organising or supervising all or any of the operations of searching or boring for or getting Petroleum in pursuance of this licence unless that other person is a person approved in writing by the OGA and the function in question is one to which that approval relates.

(2) The OGA shall not refuse to give its approval of a person in pursuance of paragraph (1) of this clause if that person is competent to exercise the function in question, but where an approved person is no longer competent to exercise that function the OGA may, by notice in writing given to the Licensee, revoke its approval.

Section 26 Fishing and navigation

The Licensee shall not carry out any operations authorised by this licence in or about the Licensed Area in such manner as to interfere unjustifiably with—

(a) navigation in any navigable waters; or

(b) fishing in, or conservation of the living resources of any waters in or in the vicinity of the Licensed Area.

Section 27 Training

(1) The OGA may from time to time give to the Licensee instructions in writing as to the training of persons employed or to be employed, whether by the Licensee or by any other person, in any activity which is related to the exercise of the rights granted by this licence and the Licensee shall ensure that any instructions so given are complied with.

(2) The OGA shall not give instructions in pursuance of paragraph (1) of this clause unless it has consulted as to the provisions proposed to be included in such instructions the Offshore Petroleum Industry Training Organisation Limited or such other body of a like nature as may from time to time be carrying on activities of a substantially similar kind to those performed by the said Organisation.

(3) The Licensee shall furnish the OGA with such information relating to the training of persons referred to in paragraph (1) of this clause as the OGA may from time to time request.

Section 28 Unit development

(1) If at any time at which this licence is in force the OGA shall be satisfied that the strata in the Licensed Area or any part thereof form part of a single geological Petroleum structure or Petroleum field (hereinafter referred to as “an Oil Field”) other parts whereof are formed by strata in areas in respect of which other licences granted in pursuance of the Act are then in force, and the OGA shall consider that it is in the national interest in order to secure the maximum ultimate recovery of Petroleum and in order to avoid unnecessary competitive drilling that the Oil Field should be worked and developed as a unit in co-operation by all persons including the Licensee whose licences extend to or include any part thereof, the following provisions of this clause shall apply.

(2) Upon being so required by notice in writing by the OGA the Licensee shall co-operate with such other persons, being persons holding licences under the Act in respect of any part or parts of the Oil Field (hereinafter referred to as “the other Licensees”) as may be specified in the said notice, in the preparation of a scheme (hereinafter referred to as “a Development Scheme”) for the working and development of the Oil Field as a unit by the Licensee and the other Licensees in co-operation, and shall, jointly with the other Licensees, submit such scheme for the approval of the OGA .

(3) The said notice shall also contain or refer to a description of the area or areas in respect of which the OGA requires a Development Scheme to be submitted and shall state the period within which such scheme is to be submitted for approval by the OGA .

(4) If a Development Scheme shall not be submitted to the OGA within the period so stated or if a Development Scheme so submitted shall not be approved by the OGA , the OGA may itself prepare a Development Scheme which shall be fair and equitable to the Licensee and the other Licensees, and the Licensee shall perform and observe all the terms and conditions thereof.

(5) If the Licensee shall object to any such Development Scheme prepared by the OGA he may within 28 days from the date on which notice in writing of the said scheme shall have been given to him by the OGA refer the matter to arbitration in the manner provided by clause 44 of this licence.

Section 29 Licensee to keep records

(1) The Licensee shall keep accurate records in a form from time to time approved by the OGA of the drilling, deepening, plugging or abandonment of all Wells and of any alterations in the casing thereof. Such records shall contain particulars of the following matters—

(a) the site of, number and name (if any) assigned to every Well;

(b) the subsoil and strata through which the Well was drilled;

(c) the casing inserted in any Well and any alteration to such casing;

(d) any Petroleum, water, mines or workable seams of coal encountered in the course of such activities; and

(e) such other matters as the OGA may from time to time direct.

(2) The Licensee shall keep in the United Kingdom accurate geological plans and maps relating to the Licensed Area and such other records in relation thereto as may be necessary to preserve all information which the Licensee has about the geology of the Licensed Area.

(3) The Licensee shall deliver copies of the said records, plans and maps referred to in the two foregoing paragraphs to the OGA or, subject to clause 32, to such other person as the OGA may provide, when requested to do so either—

(a) within any time limit specified in the request; or

(b) if there is no time limit specified, within four weeks of the request.

Section 30 Returns

(1) The Licensee shall furnish to the OGA not later than 6 weeks after the end of each calendar year which falls wholly or partly within the period during which this licence is in force a return in a form from time to time approved by the OGA of the progress of his operations in the Licensed Area. Such return shall contain—

(a) a statement of all geological work, including surveys and tests, which has been carried out and the areas in which and the persons by whom the work has been carried out and the results thereof;

(b) the number and name (if any) assigned to each Well, and in the case of any Well the drilling of which was begun or the number of which has been changed during the period to which the return relates, the site thereof;

(c) a statement of the depth drilled in each Well;

(d) a statement of any Petroleum, water, mines or workable seams of coal or other minerals encountered in the course of the said operations; and

(e) a statement of all Petroleum won and saved.

(2) Within two months after the end of each calendar year which falls wholly or partly within the period during which this licence is in force and within two months after the expiration or determination of this licence or any renewal thereof the Licensee shall furnish to the OGA an annual return in a form from time to time approved by the OGA of the operations conducted in the Licensed Area during that year or the period prior to such expiration or determination as the case may be together with a plan upon a scale approved by the OGA showing the situation of all Wells. The Licensee shall also indicate on the said plan all development and other works executed by him in connection with searching, boring for or getting Petroleum.

(3) The Licensee shall furnish the OGA , or such other person as the OGA may direct, with such information as the OGA may from time to time request about any aspect of the activities of the Licensee which are attributable directly or indirectly to the grant of this licence, except that the Licensee shall not by virtue of this paragraph be required to furnish information in respect of his activities in connection with any crude oil after he has appropriated it for refining by him.

(4) The Licensee shall comply with any request for information made in accordance with paragraph (3) above either—

(a) within any time limit specified in the request; or

(b) if there is no time limit specified, within four weeks of the request.

(5) For the purposes of paragraph (3) of this clause any reference to the OGA shall be construed as if it included a reference to the Chancellor of the Exchequer.

Section 31 Licensee to keep samples

(1) As far as reasonably practicable the Licensee shall correctly label and preserve for reference for a period of five years samples of the strata encountered in any Well (including, where the site of such Well is on land covered by water, the surface of such land) and samples of any Petroleum or water discovered in any Well in the Licensed Area.

(2) The Licensee shall not dispose of any sample unless—

(a) he has at least six months before the date of the disposal given notice in writing to the OGA of his intention to dispose of the sample; and

(b) the OGA has not within the said period of six months informed the Licensee in writing that it wishes the sample to be delivered to it .

(3) The OGA shall be entitled at any time—

(a) to inform the Licensee in writing that it wishes the whole or any part of any sample preserved by the Licensee to be delivered to it or, subject to clause 32, to such other person as it may direct; or

(b) to inspect and analyse any sample preserved by the Licensee.

(4) The Licensee shall forthwith comply with any request for the delivery of the whole or any part of any sample which is made in accordance with the preceding provisions of this clause.

Section 32 Reports to be treated as confidential

(1) All records, returns, plans, maps, samples, accounts and information (in this clause referred to as “the specified data”) which the Licensee is or may from time to time be required to furnish under the provisions of this licence shall be supplied at the expense of the Licensee and shall not (except with the consent in writing of the Licensee which shall not be unreasonably withheld) be disclosed to any person not in the service or employment of the OGA or the Crown, unless one of the exceptions in paragraph (2) of this clause applies.

(2) Disclosure is permitted as follows—

(a) the OGA shall be entitled at any time to make use of any of the specified data for the purpose of preparing and publishing such returns and reports as may be required of the OGA by law;

(b) the OGA shall be entitled at any time to furnish any of the specified data to the Natural Environment Research Council and to any other body of a like nature as may from time to time be carrying on activities of a substantially similar kind to the geological activities at present carried on by the said Council;

(c) the OGA , the said Council and any such other body shall be entitled at any time to prepare and publish reports and surveys of a general nature using information derived from any of the specified data;

(d) the OGA , the said Council and any such other body shall be entitled to publish any of the specified data of a geological, scientific or technical kind either—

(i) after the expiration of the period of four years beginning with the date when the data were due to be supplied to the OGA in accordance with clause 29 or 30 of this licence, or if earlier, the date when the OGA received those data; or

(ii) after the expiration of such longer period as the OGA may determine after considering any representations made to it by the Licensee about the publication of data in pursuance of this sub-paragraph;

(e) where the OGA has directed the Licensee to make a report containing data in respect of the geology, operations or results associated with hydraulic fracturing of shale or other strata encased in shale, the OGA shall be entitled to publish those data after the expiration of the period of six months beginning with the date when the report was due to be supplied to the OGA , or if earlier, the date when the OGA received the report.

Section 33 Inspection of records, etc

The Licensee shall—

(a) permit any person ... who is appointed by the OGA for the purpose to inspect, and to take copies of and make notes from, all books, papers, maps and other records of any kind kept by the Licensee in pursuance of this licence or in connection with activities about which the OGA is entitled to obtain information in pursuance of clauses 27(3) and 30(3) of this licence; and

(b) furnish that person at reasonable times with such information and provide him at reasonable times with such reasonable assistance as he may request in connection with or arising out of an inspection in pursuance of this clause.

Section 34 Rights of access

Any person or persons authorised by the OGA shall be entitled at all reasonable times to enter into and upon any land for the time being possessed or occupied by the Licensee in the Licensed Area or to enter into and upon any of the Licensee’s installations or equipment used or to be used in connection with searching, boring for or getting Petroleum in the Licensed Area for the purposes hereinafter mentioned—

(a) to examine the installations, Wells, plant, appliances and works made or executed by the Licensee in pursuance of the Licence and the state of repair and condition thereof, and

(b) to execute any works or to provide and install any equipment which the OGA may be entitled to execute or provide and install in accordance with the provisions hereof.

Section 35 Power to execute works

If the Licensee shall at any time fail to perform the obligations arising under the terms and conditions of any of clauses 13, 20, 23 or 24 of this licence, the OGA shall be entitled, after giving to the Licensee reasonable notice in writing of its intention to do so, to execute any works and to provide and install any equipment which in the opinion of the OGA may be necessary to secure the performance of the said obligations or any of them and to recover the costs and expenses of so doing from the Licensee.

Section 36 Right of distress

(1) This clause applies in respect of any part of the Licensed Area situated in England or Wales.

(2) If and whenever any of the payments mentioned in clause 12(1) of this licence or any part thereof shall be in arrear or unpaid for 28 days next after any of the days whereon the same ought to be paid (whether the same shall have been legally demanded or not) then and so often as the same may happen the OGA may (as an additional remedy and without prejudice to any other rights and remedies to which it would be entitled) enter into and upon any land which shall for the time being be possessed or occupied by the Licensee for the purposes of the licence or the exercise of any of the rights thereby granted or into and upon any of the Licensee’s installations and equipment used or to be used in connection with searching, boring for or getting Petroleum in the Licensed Area and may seize and distrain and sell as a landlord may do for rent all or any of the stocks of Petroleum, engines, machinery, tools, implements, chattels and effects belonging to the Licensee which shall be found in or upon or about the land installations and equipment so entered upon and out of the moneys arising from the sale of such distress may retain and pay all the arrears of the said payments and also the costs and expenses of and incident to any such distress and sale rendering the surplus (if any) to the Licensee.

Section 37 Diligence

(1) This clause applies in respect of any part of the Licensed Area situated in Scotland.

(2) If and whenever any of the payments mentioned in clause 12(1) of this licence or any part thereof shall be in arrear or unpaid for 28 days next after any of the days whereon the same ought to be paid (whether the same shall have been legally demanded or not), then and so often as the same may happen the OGA may (as an additional remedy and without prejudice to any other rights and remedies to which it would be entitled) do diligence in respect thereof in like manner as a landlord may do diligence in respect of unpaid arrear of rent and such diligence shall be effectual to attach all or any of the stocks of Petroleum, engines, machinery, tools, implements and other effects belonging to the Licensee which shall be found on or about any of the Licensee’s installations and equipment used or to be used in connection with searching, boring for or getting Petroleum in the Licensed Area, and where in pursuance of such a diligence a sale of such effects as shall have been attached thereby takes place the OGA may out of the proceeds thereof retain and pay all the arrears of the said payments and also the expenses of and incident to such diligence and sale and shall pay the surplus thereof (if any) to the Licensee.

Section 38 Indemnity against third party claims

The Licensee shall at all times keep the OGA effectually indemnified against all actions, proceedings, costs, charges, claims and demands whatsoever which may be made or brought against the OGA by any third party in relation to or in connection with this licence or any matter or thing done or purported to be done in pursuance thereof.