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The Network and Information Systems Regulations 2018

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The oil subsector

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2.—(1) This paragraph describes the threshold requirements which apply to specified kinds of essential services in the oil subsector.

(2) For the essential service of the conveyance of oil through relevant upstream petroleum pipelines, the threshold requirement, in the United Kingdom is the operator of a relevant upstream petroleum pipeline which has a throughput of more than 3,000,000 tonnes of oil equivalent per year excluding natural gas, if that operator does not fall within another threshold requirement in relation to this pipeline under this Schedule.

(3) For the essential service of oil transmission by pipeline, the threshold requirements are—

(a)in Great Britain, operators of any pipeline with throughput capacity of more than 500,000 tonnes of crude oil based fuel per year; and

(b)in Northern Ireland, operators of any pipeline with throughput capacity of more than 50,000 tonnes of crude oil based fuel per year.

(4) For the essential service of the operation of relevant oil processing facilities, the threshold requirement in the United Kingdom is in the case of—

(a)a relevant oil processing facility, or

(b)a relevant upstream petroleum pipeline which is connected to and operated from a relevant oil processing facility,

an operator of a facility or pipeline with a throughput of more than 3,000,000 tonnes of oil equivalent per year.

(5) For the essential service of oil production, refining, treatment, storage and transmission the threshold requirements are—

(a)in Great Britain, operators of any facility where that facility has a capacity greater than any of the following values—

(i)storage of 500,000 tonnes of crude oil based fuel;

(ii)production of 500,000 tonnes of crude oil based fuel per year; or

(iii)supply of 500,000 tonnes of crude oil based fuel per year;

(b)in Northern Ireland, the operator of a facility which has a storage capacity of greater than 50,000 tonnes of crude oil based fuel.

(6) For the essential service of the operation of petroleum production projects (other than projects which are primarily used for the storage of gas), the threshold requirement in the United Kingdom is, in the case of—

(i)a relevant offshore installation which is part of a petroleum production project (other than a project which is primarily used for the storage of gas), or

(ii)a relevant upstream petroleum pipeline which is connected to and operated from such an installation,

an operator of an installation or pipeline with a throughput of more than 3,000,000 tonnes of oil equivalent per year.

(7) In sub-paragraph (5), the following are included within the description of the essential service—

(a)storage of crude oil based fuel;

(b)production of crude oil based fuels through a range of refining or blending processes, but excluding processes for rendering the oil suitable for transportation; and

(c)supply of crude oil based fuels to retail sites, airports or other users within the United Kingdom.

(8) In this paragraph—

(a)“carbon dioxide pipeline” has the meaning given by section 90(2) of the Energy Act 2011(1);

(b)“crude oil” means any liquid hydrocarbon mixture occurring naturally in the earth whether or not treated to render it suitable for transportation, and includes—

(i)crude oils from which distillate fractions have been removed, and

(ii)crude oils to which distillate fractions have been added;

(c)“crude oil based fuel” means any fuel wholly or mainly comprised of crude oil or substances derived from crude oil;

(d)“foreign sector of the continental shelf” has the meaning given by section 90(1) of the Energy Act 2011(2);

(e)“gas processing facility” means any facility which—

(i)carries out gas processing operations in relation to piped gas;

(ii)is operated otherwise than by a gas transporter; and

(iii)is not an LNG import or export facility (within the meaning of section 12 of the Gas Act 1995(3));

(f)“gas processing operation” means any of the following operations—

(i)purifying, blending, odorising or compressing gas for the purpose of enabling it to be introduced into a pipeline system operated by a gas transporter or to be conveyed to an electricity generating station, a gas storage facility or any place outside the United Kingdom;

(ii)removing from gas for that purpose any of its constituent gases, or separating from gas for that purpose any oil or water;

(iii)determining the quantity or quality of gas which is or is to be so introduced, or so conveyed, whether generally or by, or on behalf of, a particular person;

(iv)separating, purifying, blending, odorising or compressing gas for the purpose of—

(aa)converting it into a form in which a purchaser is willing to accept delivery from a seller, or

(bb)enabling it to be loaded for conveyance to another place (whether inside or outside the United Kingdom); or

(v)loading gas—

(aa)at a facility which carries out operations of a kind mentioned in paragraph (iv), or

(bb)piped from such a facility

for the purpose of enabling the gas to be conveyed to another place (whether inside or outside the United Kingdom);

(g)“gas transporter” has the meaning given by section 7(1) of the Gas Act 1986(4);

(h)“oil equivalent” means petroleum and, for the purposes of assessments of throughput, where petroleum is in a gaseous state 1,100 cubic meters of this petroleum at a temperature of 15 degrees Celsius and pressure of one atmosphere is counted as equivalent to one tonne;

(i)“oil processing facility” means any facility which carries out oil processing operations;

(j)“oil processing operations” means any of the following operations—

(i)initial blending and such other treatment of petroleum as may be required to produce stabilised crude oil to the point at which a seller could reasonably make a delivery to a purchaser of such oil;

(ii)receiving stabilised crude oil piped from an oil processing facility carrying out operations of a kind mentioned in sub-paragraph (i), or storing oil so received, prior to their conveyance to another place (whether inside or outside the United Kingdom);

(iii)loading stabilised crude oil piped from a facility carrying out operations of a kind mentioned in sub-paragraph (i) or (ii) for conveyance to another place (whether inside or outside the United Kingdom);

(k)“petroleum” has the same meaning as in section 1 of the Petroleum Act 1998(5), and includes petroleum that has undergone any processing;

(l)“petroleum production project” means a project carried out by virtue of a licence granted under—

(i)section 3 of the Petroleum Act 1998(6),

(ii)section 2 of the Petroleum (Production) Act 1934(7), or

(iii)section 2 of the Petroleum (Production) Act (Northern Ireland) 1964(8),

and includes such a project which is used for the storage of gas;

(m)“piped gas” means gas which—

(i)originated from a petroleum production project (or an equivalent project in a foreign sector of the continental shelf), and

(ii)has been conveyed only by means of pipes;

(n)“pipeline” means a pipe or system of pipes for the conveyance of anything;

(o)“relevant offshore installation” means an offshore installation within the meaning of section 44 of the Petroleum Act 1998(9) which carries on the activities mentioned in subsection (3)(a) or (c) of that section and is a relevant offshore installation only to the extent it is used to carry on those activities;

(p)“terminal” includes—

(i)facilities for such initial blending and other treatment as may be required to produce stabilised crude oil to the point at which a seller could reasonably make a delivery to a purchaser of such oil;

(ii)oil processing facilities;

(iii)gas processing facilities; and

(iv)a facility for the reception of gas prior to its conveyance to a place outside the United Kingdom;

(q)“upstream petroleum pipeline” means a pipeline or one of a network of pipelines which is—

(i)operated or constructed as part of a petroleum production project (or an equivalent project in a foreign sector of the continental shelf) and is not a carbon dioxide pipeline;

(ii)used to convey petroleum from the site of one or more such projects—

(aa)directly to premises, in order for that petroleum to be used at those premises for power generation or for an industrial process;

(bb)directly to a place outside the United Kingdom;

(cc)directly to a terminal; or

(dd)indirectly to a terminal by way of one or more other terminals, whether or not such intermediate terminals are of the same kind as the final terminal; or

(iii)used to convey gas directly from a terminal to a pipeline system operated by a gas transporter or to any premises.

(9) In sub-paragraph (8)(f), (l), (m), (p) and (q) “gas” means any substance which is or, if it were in a gaseous state, would be gas within the meaning of Part 1 of the Gas Act 1986(10).

(10) In this paragraph an upstream petroleum pipeline, oil processing facility, or gas processing facility is “relevant” if and in so far as it is situated in—

(a)the United Kingdom;

(b)the territorial sea adjacent to the United Kingdom; or

(c)the sea in any area designated under section 1(7) of the Continental Shelf Act 1964(11).

(1)

2011 c. 16. There are no amendments relevant to this instrument.

(2)

2011 c. 16. There are no amendments relevant to this instrument.

(3)

1995 c. 45. Section 12 of the Gas Act 1995 was amended by the Energy Act 2011 (c. 16) and the Utilities Act 2000 (c. 27). There are other amendments not relevant to this instrument.

(4)

1986 c. 44. Section 7(1) was substituted by section 76 of the Utilities Act 2000 (c. 27). There are other amendments not relevant to this instrument.

(6)

Section 3 of the Petroleum Act 1998 (c. 17) was amended by the Scotland Act 2016 (c. 11) and S.I. 2016/898.

(7)

1934 c. 36. This Act was repealed by section 51 of and Schedule 5 to the Petroleum Act 1998 (c. 17), subject to the savings provisions set out in Schedule 3.

(8)

1964 c. 28 (N.I.).

(9)

There are amendments to section 44 of the Petroleum Act 1998 (c. 17) not relevant to this instrument.

(11)

1964 c. 29. Section 1(7) of the Continental Shelf Act 1964 was amended by section 37 of, and Schedule 3 to, the Oil and Gas (Enterprise) Act 1982 (c. 23), and section 103 of the Energy Act 2011 (c. 16).

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