The Offshore Exploration (Petroleum, and Gas Storage and Unloading) (Model Clauses) Regulations 2009

JurisdictionUK Non-devolved
CitationSI 2009/2814

2009 No. 2814

Petroleum

Gas

The Offshore Exploration (Petroleum, and Gas Storage and Unloading) (Model Clauses) Regulations 2009

Made 20th October 2009

Laid before Parliament 22th October 2009

Coming into force 13th November 2009

The Secretary of State, in exercise of the powers conferred by section 4(1)(e) and (2) of the Petroleum Act 19981and by sections 7(1) and 104(2) of the Energy Act 20082, makes the following Regulations:

Citation and commencement
S-1 Citation and commencement

Citation and commencement

1. These Regulations may be cited as the Offshore Exploration (Petroleum, and Gas Storage and Unloading) (Model Clauses) Regulations 2009 and come into force on 13th November 2009.

Model clauses

Model clauses

S-2 Subject to paragraphs (3) and (4), the model clauses prescribed...

2.—(1) Subject to paragraphs (3) and (4), the model clauses prescribed for the licences mentioned in paragraph (2) are those set out in the Schedule.

(2) The licences are—

(a)

(a) licences under section 3 of the Petroleum Act 1998 to search for petroleum in any area below the low water line in respect of which the Secretary of State may grant a licence under that section; and

(b)

(b) licences under section 4 of the Energy Act 2008 to—

(i) explore any controlled place with a view to carrying on activities within section 2(3)(a) to (d) of the Energy Act 2008, and

(ii) establish or maintain an installation in a controlled place for the purposes of such exploration.

(3) The model clauses prescribed for the licences mentioned in paragraph (2)(a) do not include clauses 2(2) or 3(3).

(4) The model clauses prescribed for the licences mentioned in paragraph (2)(b) do not include clauses 2(1), 3(2), 7, 8(4)(b), 17(b), 18 or 20(2)(a).

S-3 The model clauses prescribed by regulation 3(2) of, and...

3. The model clauses prescribed by regulation 3(2) of, and Schedule 1 to, the Petroleum Licensing (Exploration and Production) (Seaward and Landward Areas) Regulations 20043do not apply in relation to any licence granted after the commencement of these Regulations.

Lord Hunt of Kings Heath OBE

Minister of State

Department of Energy and Climate Change

20th October 2009

SCHEDULE

Regulation 2(1)

MODEL CLAUSES FOR EXPLORATION LICENCES

SCH-1.1

1. Interpretation etc.

(1) In this licence the following expressions have the following meanings—

“consent” means consent in writing;

“controlled place” has the meaning given in section 2(4) or section 17(3) of the Energy Act 2008;

“the Exploration Area” means the area comprising all the areas in which the Licensee may for the time being exercise any of the rights granted by this licence;

“licensed activities” means the activities carried on pursuant to this licence;

“the Licensee” means the person (or all the persons) specified in Schedule 1 as licence holder (or joint licence holders);

“the Minister” means the Secretary of State for Energy and Climate Change;

“Petroleum” includes any mineral oil or relative hydrocarbon and natural gas existing in its natural condition in strata, but does not include coal or bituminous shales or other stratified deposits from which oil can be extracted by destructive distillation;

“right” includes authorisation;

“Start Date” means the date specified as such in Schedule 2;

“Well” includes borehole.

(2) Any reference in this licence to a clause or a Schedule is a reference to a clause of, or Schedule to, this licence; and any reference in a clause to a paragraph is to a paragraph of that clause.

(3) Any obligations which are to be observed and performed by the Licensee shall at any time at which the Licensee is more than one person be joint and several obligations.

SCH-1.2

2. Grant of Licence

(1) In consideration of the payments provided for in clause 7 and the performance and observance by the Licensee of all the terms and conditions contained in this licence, the Minister, in exercise of the powers conferred by section 3 of the Petroleum Act 1998, hereby grants to the Licensee licence and liberty in common with all other persons to whom the like right may have been granted or may hereafter be granted, during the continuance of this licence and subject to its provisions, to search for Petroleum in the strata in the islands and in the sea bed and subsoil in any area below the low water line in respect of which a licence may be granted under that section 3.

(2) The Minister, in exercise of the powers conferred by section 4 of the Energy Act 2008, and subject to the terms and conditions contained in this licence, authorises the Licensee to explore any controlled place with a view to carrying on activities within section 2(3)(a) to (d) of that Act, and to establish or maintain an installation in a controlled place for the purposes of such exploration.

(3) However, the rights conferred by this licence shall not be exercisable (except with the agreement of the relevant person) at any place in respect of which a petroleum licence or an Energy Act licence is for the time being in force.

(4) In this clause—

“Energy Act licence” means a licence under section 4 or 18 of the Energy Act 2008 (other than an exploration licence);

“exploration licence” means a licence to—

(a) explore any controlled place with a view to carrying on activities within section 2(3)(a) to (d) of that Act, and establish or maintain an installation in a controlled place for the purposes of such exploration; or

(b) explore any controlled place with a view to carrying on activities within section 17(2)(a) or (b) of that Act, and to establish or maintain an installation in a controlled place for the purposes of such exploration.

“petroleum licence” means a licence (not being a methane drainage licence) entitling the holder to search and bore for and get Petroleum, or to get Petroleum in the course of underground coal gasification;

“relevant person” means the holder of the petroleum licence or the Energy Act licence.

SCH-1.3

3. Prospecting methods

(1) The rights granted by this licence include prospecting and carrying out geological surveys by physical or chemical means and drilling for the purpose of obtaining geological information about strata in the Exploration Area, but do not include any right to drill Wells of a depth exceeding 350 metres below the surface of the sea bed or such greater depth as the Minister may from time to time approve either generally or in relation to a particular Well or in relation to a class of Wells to which that Well belongs.

(2) The rights granted by this licence do not include the right to get Petroleum or to drill Wells for the production of Petroleum.

(3) The rights granted by this licence do not include the right to drill Wells for the purpose of the injection of gas (including injection for the purposes of appraisal or testing).

SCH-1.4

4. Term of licence

This licence unless sooner determined under any of its provisions shall continue in force for the term of three years beginning with the Start Date, but may, if the Minister sees fit and the Licensee has at least three months before the expiry of that term made a written request for its extension, be continued for a further period of three years.

SCH-1.5

5. Right of Licensee to terminate licence

Without prejudice to any obligation or liability imposed by or incurred under the terms and conditions of this licence, the Licensee may at any time terminate this licence by giving to the Minister not less than one month’s notice in writing.

SCH-1.6

6. Provision of contact details to Minister

(1) A notice, direction or other document authorised or required (in whatever terms) to be given to the Licensee by virtue of this licence is treated as given to the Licensee if it is given to the person specified by the Licensee under paragraph (2) at the address so specified.

(2) The Licensee must supply the Minister with the name and address of a person to whom notices, directions and other documents are to be given.

(3) The Licensee must ensure that, where there is a change in the person to whom, or the address to which, information should be sent in accordance with paragraph (2), the Minister is notified of the change as soon as is reasonably practicable.

(4) If the Licensee fails to comply with paragraph (2) the Minister may give the Licensee a notice which—

(a)

(a) requires the Licensee to comply with paragraph (2) within the period of one month beginning with the date of the notice; and

(b)

(b) states that, if the Licensee fails to do so, the Licensee will be treated as having supplied under paragraph (2) the name and address specified by the Minister in the notice.

SCH-1.7

7. Payment of consideration for licence

(1) The Licensee shall pay to the Minister during the term of this licence, and in accordance with paragraph (2), consideration for the grant of the rights mentioned in clause 2(1).

(2) That consideration is to be paid—

(a)

(a) in the amounts specified in Schedule 3; and

(b)

(b) at the times and in the manner so specified.

(3) The Licensee shall not by reason of determination of this licence or of any reduction in the Exploration Area be entitled to be repaid or allowed any part of any sum payable to the Minister pursuant to this licence.

SCH-1.8

8. Commencement, abandonment and plugging of Wells

(1) The Licensee shall not commence, or recommence, the drilling of a Well without the consent of the Minister.

(2) The Licensee shall not abandon any Well without the consent of the Minister except as provided in paragraphs (5) to (10).

(3) The Licensee shall ensure compliance with any conditions subject to which any consent under either of the foregoing paragraphs is given.

(4) If any such condition under paragraph (1) relates to the position, depth or direction of the Well or to any casing of the Well or any condition under either paragraph (1) or paragraph (2) relates to any plugging or sealing of the Well—

(a)

(a) the Minister may from time to time direct that the Well and all records relating thereto shall be...

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