The Petroleum (Production) (Seaward Areas) (Amendment) Regulations 1995

Explanatory Note

(This note is not part of the Regulations)

These Regulations partially implement Council Directive 94/22/EEC on the conditions for granting and using authorisations for the prospection, exploration and production of hydrocarbons (O.J. L164 30.6.1994, p.3) ( “the Directive”) by amending the Petroleum (Production) (Seaward Areas) Regulations 1988 ( “the Principal Regulations”). Other provisions of the Directive implemented by the Hydrocarbons Licensing Regulations 1995 (S.I. 1995/1434) and the Petroleum (Production) (Landward Areas) Regulations 1995 (S.I. 1995/1436).

Regulation 6 of these Regulations implements paragraphs 1 to 5 inclusive of Article 3 and partially implements paragraph 1 of Article 5 of the Directive by introducing a new procedure for applications for production licences. Details of the blocks tobe licensed, the latest date upon which applications are to be made and the period within which licences are to be granted are to be published in the Official Journal of the European Communities. The Regulation also introduces a procedure whereby a licensee may apply for a licence for an area contiguous to the area or areas covered by its existing licence if the Secretary of State decides that geological or production considerations justify the grant of such a licence.

Regulation 5 revokes regulation 6 of the Principal Regulations which provided for non-invited applications.

Schedule 4 to the Principal Regulations contains model clauses for incorporation into petroleum production licences. These Regulations revise these model clauses by—

(a) omitting model clause 13, which provides for the payment of royalties by delivery of petroleum;

(b) making amendments consequential upon the omission of clause 13;

(c) omitting clause 30, which requires petroleum won and saved under the licence to be delivered on shore in the United Kingdom;

(d) specifying the date for compliance with requests for information from the Secretary of State and modifying the length of time for which information supplied pursuant to such requests remains confidential; and

(e) amending the Secretary of State’s power to revoke a licence where a licensee ceases to be resident in the United Kingdom.

Schedule 5 to the Principal Regulations contains model clauses for incorporation into exploration licences. These Regulations revise these model clauses by—

(a) specifying the date for compliance with requests for information from the Secretary of State and modifying the length of time from which information supplied pursuant to such requests remains confidential; and

(b) amending the Secretary of State’s power to revoke a licence where a licensee ceases to be resident in the United Kingdom.