Limitations on licensing powers

2.  A licence may not be granted for the purpose of storing CO2 in the water column.

Applications for a licence

3.—(1) An application for a licence must be—

(a)made in writing and sent to the Scottish Ministers; and

(b)accompanied by a fee of £2,100.

(2) The application must include either—

(a)a request that the licence specify a period (the “appraisal term”) during which the licence holder has the right to carry out exploration in 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 or initial term

4.—(1) The appraisal term must 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 6.

(2) Subject to paragraph (1), 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.

(3) If the licence does not include an appraisal term—

(a)the licence must specify a period as the “initial term” for the purpose of paragraph (4)(a); but

(b)that initial term may be extended under the conditions laid down by the licence.

(4) The licence expires—

(a)at the end of the appraisal term or the initial term, if no application for a storage permit is made before that date; or

(b)if an application for a storage permit is refused, when that refusal is notified to the licence holder.

Content of a licence

5.  A licence must include the provisions in Schedule 1.