(This note is not part of the Regulations)
These Regulations make provision for partial implementation of Directive 2009/31/EC of the European Parliament and of the Council on the geological storage of carbon dioxide (“the Directive”). They implement the requirements of the Directive with regard to the licensing regime.
Part 1, Chapter 3, of the Energy Act 2008 (“the Act”) establishes a licensing regime for the storage of carbon dioxide in areas within UK territorial waters, and in areas beyond those waters which have been designated as a Gas Importation and Storage Zone within the meaning of section 1(5) of the Act (“the offshore area”). Section 17 of the Act prohibits the storage of carbon dioxide (with a view to its permanent disposal) except in accordance with a licence granted under section 18. Under section 18 the Scottish Ministers are the licensing authority for the territorial sea adjacent to Scotland, and the Secretary of State is the licensing authority for all other areas of that sea. These Regulations relate to licences granted by the Scottish Ministers.
Regulation 2 prevents the licensing of carbon dioxide storage in the water column.
Regulation 3 sets out the requirements for applying for a licence. The application must specify length of time required for exploration (“the appraisal term”) or the reason why exploration is not required.
Regulation 4(1) to (3) imposes on the licence authority an obligation to specify the length of the appraisal term or, where there will be no exploration, to specify the length of time within which an application for a storage permit must be made (“the initial term”). These terms can be extended. Under regulation 4(4) the licence expires when the appraisal term or initial term expires if no application for a storage permit has been made by the or when an application for a storage permit is refused.
Regulation 5 provides that the provisions in Schedule 1 apply to a licence under which a storage permit is granted.
Regulation 6 deals with the making of an application for a storage permit, and specifies the information required.
Regulation 7 sets out the criteria on which the licensing authority must be satisfied before granting a storage permit.
Regulation 8 sets out what must be contained in a storage permit, which includes the provisions in Schedule 2.
Regulation 9 provides that, in the event of a significant irregularity or leakage, the licensing authority may direct the operator to take corrective measures or it may undertake those measures itself. In the event that the operator fails to comply with the direction the licensing authority must take corrective measures.
Regulation 10 provides that the licensing authority may review, modify or revoke a permit where an operator notifies an intention to make a change in the operation of a storage site or where the authority becomes aware of irregularities, a breach of the terms and conditions of the permit or technical or scientific development which has a bearing on the operation of the site.
Regulation 11 deals with the consequences of a storage permit being revoked. The licensing authority may close the storage site immediately or consider applications for a new licence and storage permit. The authority is deemed to be the operator of the site for certain purposes until the site is closed or a new storage permit is granted, and is entitled to be reimbursed for costs incurred.
Regulation 12 deals with the submission and approval of post-closure plans, which are drawn up in accordance with Annex II of the Directive.
Regulation 13 deals with liabilities of the operator after the site has been closed. The operator must continue to monitor the site, and to comply with its reporting and notification obligations and its obligations to take corrective measures. The operator must seal the site and remove the injection facilities.
Schedule 1 contains provisions which apply to any licence which has a storage permit granted under it. They deal with the circumstances in which the storage site must be closed by the operator, the submission of the post-closure plan and the liabilities of the operator after the site has been closed.
Schedule 2 contains provisions which must be included in any storage permit. Paragraph 1 deals with the acceptance and injection of carbon dioxide and identify the conditions the carbon dioxide stream must meet before injection can take place. Paragraph 2 deals with a mandatory programme of monitoring for specified purposes. Paragraph 3 contains obligations to make regular reports and to notify irregularities.
A regulatory impact assessment of the effect that these Regulations will have on the costs of business and the voluntary sector is available from the Scottish Government Energy Markets Unit, Department of Enterprise, Energy and Tourism, 5 Atlantic Quay, 150 Broomielaw, Glasgow, G2 8LU.