11.—(1) This regulation applies where—
(a)a person makes an application to the owner of a relevant pipe-line for a right to have carbon dioxide of the composition specified in the application conveyed by the pipe-line during such period as is so specified and in such quantities as are so specified; or
(b)a person makes an application to the owner of a relevant storage site to have carbon dioxide of the composition specified in the application, injected into the storage site during such period and at such an injection rate as is so specified and stored in the storage site,
and references in these Regulations to the “access application” are to the application made to the owner of the relevant pipe-line or relevant storage site.
(2) Where an access application is made, the applicant and the owner of the relevant infrastructure shall negotiate in good faith and endeavour to reach agreement on the application.
(3) If an access application is refused on the grounds of lack of capacity, the owner shall give the applicant duly substantiated reasons for the refusal.
(4) If the applicant and the owner do not reach agreement on the access application, the applicant may apply to the Department for an access notice which would secure to the applicant the right sought in the access application.
(5) The Department shall not consider an application under paragraph (4) unless it is satisfied that the applicant and the owner have had a reasonable time in which to reach agreement.
(6) When considering an application under paragraph (4) the Department shall—
(a)decide whether the application is to be—
(i)rejected;
(ii)adjourned to enable further negotiations between the applicant and the owner; or
(iii)considered further;
(b)give notice of its decision to the applicant; and
(c)in the case of a decision to consider the application further, give an opportunity to be heard to—
(i)the applicant and the owner;
(ii)any person with a right to have carbon dioxide conveyed by the pipe-line or stored in the storage site;
(iii)the Health and Safety Executive for Northern Ireland; and
(iv)such other persons as the Department considers appropriate.
(7) When giving further consideration to an application under paragraph (4), the Department shall (so far as relevant) take into account—
(a)the capacity which is or can reasonably be made available in a relevant pipe-line;
(b)the authorised capacity which is or can reasonably be made available in a relevant storage site;
(c)whether the composition of the CO2 stream to be conveyed by, injected into or stored in, the relevant infrastructure is compatible with the use of the relevant infrastructure for the purpose for which it has been designed;
(d)any incompatibilities of technical specification which cannot be reasonably overcome;
(e)any other difficulties which cannot be reasonably overcome and which could prejudice the efficient, current and planned future transport or storage of carbon dioxide;
(f)the duly substantiated reasonable needs of the owner and any associate of the owner for the conveyance and storage of carbon dioxide;
(g)the interests of all users and operators of the relevant infrastructure;
(h)the proportion of the United Kingdom’s carbon dioxide reduction obligations pursuant to international legal instruments and to European Union legislation that will be met through the capture and geological storage of carbon dioxide; and
(i)the number of parties involved in the dispute.
(8) The Department may serve an access notice only if it is satisfied that—
(a)the notice will not prejudice—
(i)the efficient operation of the relevant infrastructure concerned; or
(ii)the safety or environmental security of the conveyance or storage of carbon dioxide by or in the relevant infrastructure concerned; and
(b)the condition in paragraph (9) is met.
(9) The condition is that the Department is satisfied that the notice will not prejudice—
(a)the conveying by or storage in the relevant infrastructure concerned of the quantities of carbon dioxide which the owner or an associate of the owner requires or may reasonably be expected to require; or
(b)the conveying by or storage in the relevant infrastructure concerned of the quantities of carbon dioxide which another person with a right to have carbon dioxide so conveyed or stored requires in the exercise of that right.
(10) The Department may serve a notice (an “access notice”) containing such provisions as the Department considers appropriate for any of the following purposes—
(a)to secure to the applicant the right sought in the access application;
(b)to secure that exercise of the right is not prevented or impeded;
(c)to secure to the applicant such ancillary or incidental rights as the Department considers necessary or expedient, which may include the right to have a pipe-line connected to the relevant pipe-line or relevant storage site by the applicant or the owner;
(d)to regulate the charges which may be made for the exercise of any right secured by the notice.
(11) An access notice may also—
(a)contain provision authorising one or more of the owners to recover from the applicant payments by way of consideration for any right secured by the notice of amounts specified in the notice or determined in accordance with the notice;
(b)contain provision permitting a right secured by the notice to be assigned.
(12) An access notice shall be served on the owner and the applicant.
(13) An access notice does not have effect unless and until the applicant has given notice to the Department and owner of acceptance of the terms of the access notice in such manner and within such period as is specified in that notice.