Hydrocarbons Licensing Directive Regulations 1995

JurisdictionUK Non-devolved

1995 No. 1434

PETROLEUM

The Hydrocarbons Licensing Directive Regulations 1995

Made 25th May 1995

Laid before Parliament 6th June 1995

Coming into force 30th June 1995

The Secretary of State, being a Minister designated1for the purpose of section 2(2) of the European Communities Act 19722in relation to matters relating to the conditions for granting and using authorisations for the prospection, exploration and production of hydrocarbons, hereby makes the following Regulations.

S-1 Commencement and citation

Commencement and citation

1.—(1) These Regulations may be cited as the Hydrocarbons Licensing Directive Regulations and shall come into force on 30th June 1995.

(2) These Regulations do not extend to Northern Ireland.

S-2 Interpretation

Interpretation

2. In these Regulations—

“1934 Act Regulations” means any regulations made under section 6 of the Petroleum (Production) Act 19343currently in force;

“applicant” means an entity which has lodged an application for a licence;

“application for a licence” means an application made under 1934 Act Regulations;

“E.C. Treaty” means the Treaty establishing the European Community, signed at Rome on the 25th March 1957;

“entity” means any natural or legal person or any group of such persons;

“licence” means a licence granted following an application for a licence.

S-3 Determination of applications

Determination of applications

3.—(1) Subject to paragraphs (2) to (4) below, every application for a licence shall be determined on the basis of criteria concerning—

(a)

(a) the technical and financial capability of the applicant;

(b)

(b) the way in which the applicant proposes to carry out the activities that would be permitted by the licence;

(c)

(c) in a case where tenders are invited, the price the applicant is prepared to pay in order to obtain the licence; and

(d)

(d) where the applicant holds, or has held a licence of any description under the Petroleum (Production) Act 1934, any lack of efficiency and responsibility displayed by the applicant in operations under that licence,

and the Secretary of State may refuse an application for a licence.

(2) In a case where two or more applications for a licence have equal merit when assessed according to the criteria provided for in paragraph (1) above, other relevant criteria may be applied in order to determine which application should be granted.

(3) Subject to paragraph (4) below, the Secretary of State shall not apply any of the criteria in paragraphs (1) and (2) above in a discriminatory manner.

(4) An application for a licence may be refused on grounds of national security where the applicant is effectively controlled by, or by nationals of, a State other than a member State.

(5) Where an application for a licence is refused, the reasons for the decision shall be notified to the applicant on request.

S-4 Scope and application of terms and conditions

Scope and application of terms and conditions

4.—(1) No licence shall be granted upon terms and conditions other than such terms and conditions as are justified exclusively for the purpose of—

(a)

(a) ensuring the proper performance of the activities permitted by the licence;

(b)

(b) providing for the payment of consideration for the grant of the licence;

(c)

(c) any of the considerations specified in paragraph (2) below.

(2) The considerations referred to in paragraph (1)(c) above are—

(a)

(a) national security;

(b)

(b) public safety;

(c)

(c) public health;

(d)

(d) security of transport;

(e)

(e) protection of the environment;

(f)

(f) protection of biological resources and of national treasures possessing artistic, historic or archaeological value;

(g)

(g) safety of installations and of workers;

(h)

(h) planned management of hydrocarbon resources, including in particular the rate at which hydrocarbons are depleted and the optimisation of their recovery;

(i)

(i) the need to secure tax revenues.

(3) The terms and conditions provided for in paragraphs (1) and (2) above shall be...

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