Part 3

Decommissioning of energy installations
Chapter 4

Wells

Information about decommissioning of wells
75
1
In Part 5 of the Petroleum Act 1998 (c. 17), before section 46 (Northern Ireland and Isle of Man shares of petroleum revenue) insert—

Abandoned wells
45A
1
This section applies in relation to a person who has drilled, or commenced drilling, a well in pursuance of a petroleum licence or a licence under section 4 of the Energy Act 2008 (gas storage and unloading licences).
2
The Secretary of State may give a notice requiring the person—
a
to provide specified information relating to the person's financial affairs, or
b
to supply copies of specified documents, or documents of a specified description, relating to those affairs.
3
A notice under subsection (2) must specify the time within which the information or documents must be provided.
4
Subsection (5) applies if—
a
the person fails to provide information or documents required by such a notice within the period specified in the notice, or
b
on receiving information or documents required by a notice under subsection (2) the Secretary of State is not satisfied that the person will be capable of plugging and abandoning the well.
5
Where this subsection applies the Secretary of State may give the person a notice, after consulting the Treasury, requiring the person to take the action specified in the notice within the time so specified.
6
The Secretary of State may not give a notice to a person under subsection (5) without first giving the person an opportunity to make written representations as to whether the notice should be given.
7
It is an offence for a person to fail to comply with a notice under subsection (2) or (5) unless it is proved that the person exercised due diligence to avoid the failure.
8
A person guilty of an offence under this section is liable—
a
on summary conviction, to a fine not exceeding the statutory maximum, or
b
on conviction on indictment, to imprisonment for a term not exceeding 2 years or to a fine, or both.
9
Section 41 (other than subsection (5)) applies in relation to prosecutions for offences under this section as it applies in relation to prosecutions for offences under Part 4.
10
In this section—
- “petroleum licence” means a licence under section 2 of the Petroleum (Production) Act 1934 or section 3 above;
- “well” includes a borehole.
2
This section applies in relation to any well the drilling of which commences on or after the date on which this section comes into force.
S. 75 in force at 26.1.2009 by S.I. 2009/45, art. 2(b)(ii)