The Petroleum Licensing (Applications) Regulations 2015

Citation and commencement

1.  These Regulations may be cited as the Petroleum Licensing (Applications) Regulations 2015, and come into force on 30th June 2015.

Interpretation

2.  In these Regulations—

“application notice” means a notice published in the Official Journal of the European Union which—

(a)

indicates that the Secretary of State is prepared to accept applications for petroleum exploration and development licences or seaward area production licences in respect of blocks, and

(b)

specifies the web site on which details of the blocks are published;

“block” means an area to which a reference number has been assigned and published on a web site by the Department of Energy and Climate Change;

“landward area” means an area which lies on the landward side of the lines drawn in accordance with the provisions of Schedule 1, no part of which is part of Northern Ireland;

“landward petroleum exploration licence” means a licence to search for petroleum in a landward area;

“low water line” has the meaning given by paragraph 8 of Schedule 1;

“methane drainage licence” means a licence to get natural gas in the course of operations for making and keeping safe mines whether or not disused;

“model clauses” in relation to a licence means the model clauses prescribed under section 4(1)(e) of the Petroleum Act 1998 to be incorporated in licences of that type;

“petroleum exploration and development licence” means a licence to search and bore for, and get, petroleum in a landward area;

“promote licence” means a seaward area production licence in which, in accordance with the model clauses or clauses having a similar effect—

(a)

a “Promote Period” (within the meaning given by the model clauses) is specified, and

(b)

a clause is included concerning the effect of the expiry of the Promote Period in relation to the continuation of the licence beyond that period;

“seaward area” means—

(a)

islands on the seaward side of the lines drawn in accordance with the provisions of Schedule 1,

(b)

an area in the sea bed and subsoil beneath waters which lie on the seaward side of the said lines but within the outward limit of the territorial sea of the United Kingdom, and

(c)

an area in the sea bed and subsoil within any area designated under section 1(7) of the Continental Shelf Act 1964(1);

“seaward petroleum exploration licence” means a licence to search for petroleum in any seaward area or landward area below the low water line;

“seaward area production licence” means a licence to search and bore for, and get, petroleum in a seaward area;

“work programme” means a scheme of prospecting including any geological survey by any physical or chemical means and any test drilling.

Application of the Regulations

3.—(1) These Regulations apply to an application for—

(a) a landward petroleum exploration licence;

(b) a seaward petroleum exploration licence;

(c) a methane drainage licence;

(d) a petroleum exploration and development licence; and

(e) a seaward area production licence.

(2) The following Regulations cease to have effect, to the extent specified, in relation to an application for a licence mentioned in paragraph (1) made after the date of coming into force of these Regulations—

(a) the whole of the Petroleum (Production) (Seaward Areas) Regulations 1988(2);

(b) the Petroleum (Production) (Landward Areas) Regulations 1995(3) with the exception of—

(i) regulation 9(2)(c); and

(ii) Schedule 5 to the Regulations.

Applications for licences: general

4.—(1) Applications may be made by any person.

(2) Applications must—

(a) in the case of an application for—

(i) a petroleum exploration and development licence or

(ii) a seaward area production licence,

be made via the portal provided by the Department of Energy and Climate Change for the purpose of licence applications on a publicly accessible web site;

(b) in the case of an application for a licence other than those mentioned in sub-paragraph (a), be made in writing;

(c) be accompanied by such evidence and particulars or documents in support as are specified in these Regulations in respect of the licence being applied for, and are appropriate to that application;

(d) be accompanied by the appropriate fee, as set out in regulation 7.

(3) In respect of an application for a petroleum exploration and development licence, regulation 5(2)(b), (5) and Schedule 2 sets out the information and supporting documentation required.

(4) In respect of an application for a seaward area production licence, regulation 5(2)(b), (5) and Schedules 2 and 3 set out the information and supporting documentation required.

(5) An application for a licence other than a petroleum exploration and development licence or a seaward area production licence may be made at any time.

(6) If any of the matters stated in an application or any further information supplied by the applicant changes after the application is made or after the information is supplied but before a licence is granted or the Secretary of State informs the applicant that the application is refused, the applicant must immediately give notice in writing to the Secretary of State giving particulars of the change.

(7) Nothing in these Regulations prevents more than one application being made by the same applicant or more than one licence being granted to that applicant.

(8) In this regulation, “in writing” includes transmission by way of an email sent to an address provided by the Secretary of State for the purpose of receiving applications for licences and related information.

Applications for a petroleum exploration and development licence or a seaward area production licence

5.—(1) This regulation applies to an application for—

(a) a petroleum exploration and development licence; or

(b) a seaward area production licence.

(2) Subject to paragraph (6), every application for a licence must—

(a) be in response to an application notice, and

(b) specify the block or blocks to which it relates.

(3) Subject to paragraph (4), the application notice mentioned in paragraph (2) must provide for applications relating to any of the blocks to be made and determined in competition with others, specifying—

(a) a date on or before which any such applications are to be made, being a date at least 90 days after the date on which the application notice is published; and

(b) a date on which, or a period within which, it is proposed that licences will be granted to successful applicants.

(4) In the case of any block in respect of which—

(a) provision for competing applications was made on a previous occasion in an application notice, and

(b) that provision did not result in the grant of a licence,

the application notice may provide for applications to be made and determined at any time.

(5) If an application specifies more than one block it may indicate an order of preference for some or all of the blocks and it may indicate that blocks are applied for as alternatives.

(6) Where the Secretary of State decides that geological or production considerations justify the granting of a licence in respect of any area to the holder of a licence in respect of a contiguous area, and notifies the holders of licences in respect of areas contiguous to the area in question accordingly, any of them may apply for a licence in respect of the area in question within whatever period the Secretary of State considers sufficient for this purpose and specifies in the notification.

Applications for landward petroleum exploration licences, seaward petroleum exploration licences and methane drainage licences

6.  An application for—

(a) a landward petroleum exploration licence,

(b) a seaward petroleum exploration licence, or

(c) a methane drainage licence,

must include in respect of each applicant—

(i) the applicant’s name in full;

(ii) where the applicant is a body corporate—

(aa) its place of incorporation; and

(bb) its registration number at Companies House or other appropriate registration number or identifier, or if it is registered in another jurisdiction, its registration number or other identifier from that jurisdiction;

(iii) where the applicant is an individual, the applicant’s usual residential address, otherwise—

(aa) the address of the applicant’s registered office; or

(bb) if the applicant does not have a registered office the address of the applicant’s principal place of business in the United Kingdom, and if the applicant does not have a principal place of business in the United Kingdom, the address of the applicant’s principal place of business; and

(iv) the place or places from which—

(aa) the applicant’s operations under the licence; or

(bb) any commercial activities in connection with those operations,

will be directed and controlled.

Fees

7.  The appropriate fee for a licence application is—

(a) in respect of a landward petroleum exploration licence, £500;

(b) in respect of a seaward petroleum exploration licence, £500;

(c) in respect of a methane drainage licence, £50;

(d) in respect of a petroleum exploration and development licence, £1,400;

(e) in respect of a seaward area production licence, £2,100;

Form of licences

8.  Every licence must incorporate the model clauses prescribed for that type of licence at the time that the licence is issued, unless the Secretary of State thinks fit to modify or exclude them in any particular case.

Verma

Parliamentary Under Secretary of State

Department of Energy and Climate Change

18th March 2015