The Petroleum (Transfer of Functions) Regulations 2016
2016 No. 898
Petroleum
The Petroleum (Transfer of Functions) Regulations 2016
Made 10th September 2016
Coming into force in accordance with regulation 1
The Secretary of State for Energy and Climate Change makes the following Regulations in exercise of the powers conferred by sections 2(2), (3)(b) and (4)(a) and 82(3) of the Energy Act 20161.
In accordance with section 82(4) of the Energy Act 2016 a draft of this instrument was laid before Parliament and approved by a resolution of each House of Parliament.
PART 1
Introductory
Citation, commencement and extent
1.—(1) These Regulations may be cited as the Petroleum (Transfer of Functions) Regulations 2016.
(2) Parts 1, 2 and 4 come into force on the twenty-first day after the day on which these Regulations are made.
(3) Part 3 comes into force immediately after the commencement of section 48 of the Scotland Act 20162.
(4) An amendment made by these Regulations has the same extent as the provision to which it relates.
PART 2
Provisions transferring the Secretary of State’s licensing functions under the Petroleum Act 1998 to the OGA until the transfer of certain functions to the Scottish Ministers
2.—(1) Until the commencement of section 48 of the Scotland Act 2016, Part 1 of the Petroleum Act 19983has effect as if it were amended as follows.
(2) Section 3 (licences to search and bore for and get petroleum) has effect as if—
(a)
(a) in subsection (1)—
(i) for “Secretary of State” there were substituted “OGA”, and
(ii) for “he” there were substituted “it”,
(b)
(b) in subsection (3), for “Secretary of State” (in both places) there were substituted “OGA”.
(3) Section 4(1)(e) (licences: further provisions) has effect as if for “he” there were substituted “the OGA”.
(4) Section 5(9)4(existing licences) has effect as if for “Secretary of State” (in both places) there were substituted “OGA”.
(5) Section 5A5(rights transferred without consent) has effect as if for “Secretary of State” (in each place) there were substituted “OGA”.
(6) Section 5B(1)6(information) has effect as if for “Secretary of State” (in both places) there were substituted “OGA”.
(7) Section 7(2) (ancillary rights) has effect as if—
(a)
(a) at the end of paragraph (b) “and” were omitted, and
(b)
(b) at the end of paragraph (c) there were inserted—
“; and
(d)
(d) references to the Secretary of State (or the Minister) in sections 4 and 9 of that Act included references to the OGA”.
PART 3
Consequential amendments to the Petroleum Act 1998 having effect on the transfer of certain functions to the Scottish Ministers
3.—(1) Part 1 of the Petroleum Act 1998 is amended as follows.
(2) In section 3 (licences to search and bore for and get petroleum)—
(a)
(a) in subsection (1)7, for “Minister” (in both places) substitute “authority”, and
(b)
(b) in subsection (3)8—
(i) for “Secretary of State” substitute “OGA”, and
(ii) for “Minister” substitute “authority”.
(3) In section 4 (licences: further provisions)—
(a)
(a) in subsection (1)(e)9, for “he” substitute “the appropriate authority”, and
(b)
(b) after subsection (3)10insert—
“3ZA Before making regulations under this section the Secretary of State must consult the OGA.”.
(4) In section 5(9)11(existing licences), for “Minister” (in both places) substitute “authority”.
(5) In section 5A12(rights transferred without consent), for “Minister” (in each place) substitute “authority”.
(6) In section 5B(1)13(information), for “Minister” (in both places) substitute “authority”.
(7) In section 7(2)(d)14(ancillary rights), for the words following “included references to” substitute—
“(i)
“(i) the Scottish Ministers, in relation to licences granted in relation to the Scottish onshore area, and
(ii)
(ii) the OGA, in relation to other licences”.
(8) In section 8(1)15(power to inspect plans of mines), for “Minister” (in both places) substitute “authority”.
(9) In section 8A16(interpretation), after subsection (1) insert—
“1A The “appropriate authority” means—
(a) in relation to the Scottish onshore area, the Scottish Ministers;
(b) otherwise, the OGA.”.
PART 4
Transfer to the OGA of the Secretary of State’s functions under oil taxation legislation, and other consequential amendments
4.—(1) The Oil Taxation Act 197517is amended as follows.
(2) In section 2(7)(c) (assessable profits and allowable losses), for “Secretary of State” substitute “OGA”.
(3) In section 3 (allowance of general expenditure), for “Secretary of State” (in each place) substitute “OGA”.
(4) In section 5A18(allowance of exploration and appraisal expenditure), for “Secretary of State” (in each place) substitute “OGA”.
(5) In section 10(3B)19(modification of Part 1)—
(a)
(a) for “Secretary of State” substitute “OGA”, and
(b)
(b) for “him” substitute “it”.
(6) In section 12 (interpretation of Part 1)—
(a)
(a) in subsection (1)—
(i) in paragraph (b) of the definition of “licensee”, for “Secretary of State” substitute “OGA”, and
(ii) at the appropriate place insert—
““the OGA” means the Oil and Gas Authority;”,
(b)
(b) in subsection (1A)(a)(ii)20, for “Secretary of State” substitute “OGA”, and
(c)
(c) in subsection (4), after “Secretary of State” insert “or the OGA”.
(7) In Schedule 1 (determination of oil fields), in paragraph 1(2), for “Secretary of State” (in each place) substitute “OGA”.
(8) In Schedule 2 (management and collection of petroleum revenue tax), in paragraph 2(2)(c) and (3)(d) for “Secretary of State” substitute “OGA”.
(9) In Schedule 3 (petroleum revenue tax: miscellaneous provisions), in paragraph 4, for “Secretary of State” substitute “OGA”.
5.—(1) Section 118 of the Finance Act 198121(licence payments other than royalties) is amended as follows.
(2) In subsection (1)—
(a)
(a) in paragraph (a), after “Secretary of State” insert “or the OGA”, and
(b)
(b) in paragraph (b), for “Secretary of State” substitute “OGA”.
(3) In subsection (2)—
(a)
(a) after “Secretary of State” (in the first place) insert “or the OGA”,
(b)
(b) for “Secretary of State” (in the second place) substitute “OGA”, and
(c)
(c) in paragraph (b), for “Secretary of State” substitute “OGA”.
6.—(1) The Finance Act 198222is amended as follows.
(2) In section 140 (increase of gross profit by reference to royalties in kind), for “Secretary of State” (in each place) substitute “OGA”.
(3) In Schedule 19 (supplementary provisions relating to APRT), in paragraph 3(1)(a)23, for “Secretary of State” substitute “OGA”.
7. In section 36(3)(b) of the Finance Act 198324(increased oil allowance for certain new fields), for “Secretary of State” substitute “OGA”.
8. In section 113(5)(b) of the Finance Act 198425(restriction on PRT reliefs), for “Secretary of State” substitute “OGA”.
9.—(1) The Finance Act 198726is amended as follows.
(2) In Schedule 10 (nomination scheme for disposals and appropriations), in paragraph 1(3)27—
(a)
(a) for “Secretary of State” substitute “OGA”, and
(b)
(b) for “him” substitute “it”.
(3) In Part 3 of Schedule 14 (relevant new fields and associated companies), in paragraph 8(2)(b), for “Secretary of State” substitute “OGA”.
10. In section 138(3)(b) of the Finance Act 198828(reduced oil allowance for certain Southern Basin and onshore fields), for “Secretary of State” substitute “OGA”.
Taxation of Chargeable Gains Act 1992
11. In section 196 of the Taxation of Chargeable Gains Act 199229(definitions relating to UK licences), for “Secretary of State” (in each place) substitute “Oil and Gas Authority”.
12. In section 185 of the Finance Act 199330(abolition of petroleum revenue tax for oil fields with development consent on or after 16th March 1993), in subsections (1C)(a) and (b) and (2)(b)31, for “Secretary of State” substitute “OGA”.
13.—(1) Part 1 of the Petroleum Act 1998 is amended as follows.
(2) In section 4(4) (licences: notice of grant)—
(a)
(a) for “Secretary of State” substitute “OGA”,
(b)
(b) for “the London Gazette” substitute “such manner as it thinks appropriate”, and
(c)
(c) omit the words from “and, if that area” to the end.
(3) In section 4A(1)32(onshore hydraulic fracturing: safeguards), for “Secretary of State” in the first place substitute “OGA”.
(4) In section 4B(8)33(section 4A: supplementary provisions), in the definition of “well consent”, for “Secretary of State” substitute “OGA”.
14. In section 556(2)(a) of the Capital Allowances Act 200134(disposals of oil licences: definitions), for “Secretary of State” substitute “Oil and Gas Authority”.
15.—(1) The Corporation Tax Act 201035is amended as follows.
(2) In section 278 (general definitions for Part 8), at the appropriate place insert—
““the OGA” means the Oil and Gas Authority,”.
(3) In section 332DA(5)36(restriction where field qualified for field allowances as new field), for “Secretary of State” substitute “OGA”.
(4) In section 332DB(5) (restriction where project in additionally-developed field qualified for field allowance), for “Secretary of State” substitute “OGA”.
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