Licences
Limitation on licensing powers
3. A licence shall not be granted for the purpose of storing CO2 in the water column.
Applications for a licence
4. An application for a licence shall be made in writing to the authority, and shall include either—
(a)a request that the licence specify a period (the “appraisal term”) during which the licence holder has the right to explore the licensed area before making an application for a storage permit; or
(b)if no such period is requested, a statement of the reasons why such exploration is not considered necessary.
Appraisal term
5.—(1) A licence shall include an appraisal term where the authority determines that exploration is required to generate the information necessary to select a storage site.
(2) The appraisal term shall not exceed the period necessary to—
(a)generate the information necessary to select a storage site; and
(b)prepare the documents required for an application under regulation 7.
(3) Subject to paragraph (2), the appraisal term may be extended by the authority at the written request of the licence holder, under the conditions laid down by the licence, provided that the authority is satisfied that any exploration so far carried out has been in accordance with the licence.
(4) Where a licence includes an appraisal term, the licence (unless sooner determined under any of its provisions) shall cease and determine—
(a)at the end of the appraisal term, if no application for a storage permit is made before that date; or
(b)if such an application is refused, when that refusal is notified to the licence holder.
Content of a licence
6. A licence shall include the provisions contained in Schedule 1.