Part IU.K. Oil

1—7.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F1U.K.

The National Oil AccountU.K.

8 Abolition of the National Oil Account.U.K.

(1)The National Oil Account (in this section referred to as “the Account”) shall cease to exist and the amount standing to the credit of the Account shall be paid into the Consolidated Fund.

(2)In consequence of subsection (1) above, the 1975 Act shall be amended as follows—

(a)in sections 25(3) and 40(2)(b) (certain sums received by the Secretary of State to be paid into the Account) for references to the Account there shall be substituted references to the Consolidated Fund; and

(b)in sections 40(3)(b) and 41(4) (certain sums payable by the Secretary of State to be paid out of the Account) for references to the Account there shall be substituted references to money provided by Parliament.

(3)Also in consequence of subsection (1) above, section 40(1) and (4) of that Act and, in section 40(3), the words “and when” onwards (establishment of the Account, accounts and audit and payment of excess amount into the Consolidated Fund) shall cease to have effect.

(4)Nothing in this section shall affect the operation of the said section 40(4) (accounts and audit) in relation to the financial year ending 31st March next before the commencement date.

(5)If the commencement date is other than a 1st April, the said section 40(4) and subsection (4) above shall have effect in relation to the period beginning with the immediately preceding 1st April and ending with the date immediately preceding the commencement date as they apply with respect to the financial year mentioned in subsection (4) above subject, however, in the case of the said section 40(4), to the modification that a copy of the account mentioned in that subsection shall be sent to the Comptroller and Auditor General as soon as possible.

Part IIE+W+S Gas

The British Gas CorporationE+W+S

9—11.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F2E+W+S

12—17.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F3E+W+S

Part IIIE+W+S Petroleum Licences

18 Amendment of enabling powers etc. E+W+S

(1)The M1Petroleum (Production) Act 1934 (in this Act referred to as “the 1934 Act”) shall have effect, and be deemed always to have had effect, as if in subsection (2) of section 1 (vesting of property in petroleum) were renumbered as subsection (4) of that section and for subsection (1) of that section there were substituted the following subsections—

“(1)The property in petroleum to which subsection (2) of this section applies at the commencement of this Act, so far as it is not already so vested, is hereby vested in His Majesty ; and His Majesty shall at any time have the exclusive right of searching and boring for and getting petroleum to which that subsection applies at that time.

(2)Subject to subsection (3) of this section, this section applies at any time to petroleum which at that time exists in its natural condition in strata in Great Britain or beneath the territorial waters of the United Kingdom adjacent to Great Britain ; and it so applies notwithstanding that the land in which any such petroleum so exists belongs to His Majesty or the Duchy of Cornwall, belongs to a Government department or is held in trust for His Majesty for the purposes of a government department.

(3)Subsection (2) of this section does not apply to petroleum which at the commencement of this Act may be lawfully gotten under a licence in force under the Petroleum (Production) Act 1918, being a licence specified in the Schedule to this Act, so long as that licence remains in force.”

(2)The 1934 Act shall also have effect, and be deemed always to have had effect, as if in subsection (1) of section 2 (power to grant licences) after the word “shall” there were inserted the words “ at any time ” and at the end of that subsection there were added the words “ to which subsection (2) of section 1 of this Act applies at that time ”.

19 Modification of model clauses in existing licences.E+W+S

(1)Where a licence granted under section 2 of the 1934 Act before the coming into force of section 20 below incorporates—

(a)the model clauses set out in Part II of Schedule 2 to the 1975 Act (clauses relating to production licences for seaward areas);

(b)the model clauses set out in Part II of Schedule 3 to that Act (clauses relating to production licences for landward areas);

(c)the model clauses set out in Schedule 4 to the M2Petroleum (Production) Regulations 1976 (clauses relating to production licences for landward areas);

(d)the model clauses set out in Schedule 5 to the said Regulations of 1976 as originally made or as amended by the M3Petroleum (Production) (Amendment) Regulations 1978 (clauses relat9 ing to production licences for seaward areas); or

(e)the model clauses set out in Schedule 5 to the said Regulations of 1976 as amended by the said Regulations of 1978 and the M4Petroleum (Production) (Amendment) Regulations 1980,

those model clauses as so incorporated shall have effect with the amendments provided for by whichever is appropriate of paragraphs 1 to 5 of Schedule 2 to this Act.

(2)It is hereby declared that any provisions of a licence which are amended by subsection (1) above may be altered or deleted by an instrument under seal executed by the Secretary of State and the licensee.

(3)Any reference in any document to provisions of a licence which are amended by subsection (1) above shall, except so far as the nature of the document or the context otherwise requires, be construed as a reference to those provisions as so amended.

20 Modification of model clauses for incorporation in future licences.E+W+S

The following model clauses, namely—

(a)the model clauses set out in Schedule 4 to the said Regulations of 1976; and

(b)the model clauses set out in Schedule 5 to those regulations as amended by the said Regulations of 1978 and the said Regulations of 1980,

shall have effect with the amendments provided for by paragraphs 3 and 5 respectively of Schedule 2 to this Act.

Part IVU.K. Offshore Activities

21. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F4U.K.

22 Application of criminal law etc,U.K.

(1)Her Majesty may by Order in Council provide that, in such cases and subject to such exceptions as may be prescribed by the Order, any act or omission which—

(a)takes place on, under or above an installation in waters to which this section applies or any waters within five hundred metres of any such installation; and

(b)would, if taking place in any part of the United Kingdom, constitute an offence under the law in force in that part,

shall be treated for the purposes of that law as taking place in that part.

(2)Her Majesty may by Order in Council provide that, in such cases and subject to such exceptions as may be prescribed by the Order, a constable shall on, under or above any installation in waters to which this section applies or any waters within five hundred metres of such an installation have all the powers, protection and privileges which he has in the area for which he acts as constable.

This subsection is without prejudice to any other enactment or rule of law affording any power, protection or privilege to constables.

[F5(3)Where a body corporate is guilty of an offence by virtue of an Order in Council under this section and that offence is proved to have been committted with the consent or connivance of, or to be attributable to any neglect on the part of, any director, manager, secretary or other similar officer of the body corporate or any person who was purporting to act in any such capacity, he as well as the body corporate shall be guilty of that offence and shall be liable to be proceeded against and punished accordingly.

(3A)Where the affairs of a body corporate are managed by its members, subsection (3) shall apply in relation to acts and defaults of a member in connection with his functions of management as if he were a director of the body corporate.

(3B)Proceedings for anything that is an offence by virtue of an Order in Council under this section may be taken, and the offence may for all incidental purposes be treated as having been committed in any place in the United Kingdom.]

(4)The waters to which this section applies are—

(a)territorial waters of the United Kingdom;

(b)waters in any area designated under section 1(7) of the 1964 Act; and

(c)waters in any area specified under subsection (5) below.

(5)Her Majesty may from time to time by Order in Council specify any area which—

(a)is in a foreign sector of the continental shelf; and

(b)comprises any part of a cross-boundary field,

as an area as respects which the powers conferred by this section and section 23 below are exercisable.

(6)In this section—

• [F6 “cross-boundary field” means a field that extends across the boundary between waters falling within paragraph (a) or (b) of subsection (4) above and a foreign sector of the continental shelf;]

• “field” means a geological structure identified as such by Order in Council under subsection (5) above.

(7)This section and section 23 below shall apply to installations notwithstanding that they are for the time being in transit.

(8)Section 3 of the 1964 Act (which is superseded by this section and section 23 below) shall cease to have effect

23 Application of civil law. U.K.

(1)Her Majesty may by Order in Council—

(a)provide that, in such cases and subject to such exceptions as may be prescribed by the Order, questions arising out of acts or omissions taking place on, under or above waters to which this section applies in connection with any activity mentioned in subsection (2) below shall be determined in accordance with the law in force in such part of the United Kingdom as may be specified in the Order; and

(b)make provision for conferring jurisdiction with respect to such questions on courts in any part of the United Kingdom so specified.

(2)The activities referred to in subsection (1) above are—

(a)activities connected with the exploration of, or the exploitation of the natural resources of, the shore or bed of waters to which this section applies or the subsoil beneath it; and

(b)without prejudice to the generality of paragraph (a) above, activities carried on from, by means of or on, or for purposes connected with, installations to which subsection (3) below applies.

(3)This subsection applies to any installation which is or has been maintained, or is intended to be established, for the carrying on of any of the following activities, namely—

(a)the exploitation or exploration of mineral resources in or under the shore or bed of waters to which this section applies;

(b)the storage of gas in or under the shore or bed of such waters or the recovery of gas so stored;

(c)the conveyance of things by means of a pipe, or system of pipes, constructed or placed on, in or under the shore or bed of such waters; and

(d)the provision of accommodation for persons who work on or from an installation which is or has been maintained, or is intended to be established, for the carrying on of an activity falling within paragraph (a), (b) or (c) above or this paragraph.

(4)The fact that an installation has been maintained for the carrying on of an activity falling within subsection (3) above shall be disregarded for the purposes of that subsection if, since it was so maintained, it has been outside waters to which this section applies or has been maintained for the carrying on of an activity not falling within that subsection.

(5)Any jurisdiction conferred on any court under this section shall be without prejudice to any jurisdiction exercisable apart from this section by that or any other court.

(6)The waters to which this section applies are—

(a)tidal waters and parts of the sea in or adjacent to the United Kingdom up to the seaward limits of territorial waters;

(b)waters in any area designated under section 1(7) of the 1964 Act;

(c)waters in any area specified under section 22(5) above; and

(d)in relation to installations which are or have been maintained, or are intended to be established, in waters falling within paragraph (a), (b) or (c) above, waters in a foreign sector of the continental shelf which are adjacent to such waters.

24 Extended meaning of “offshore installation” in the 1971 Act. U.K.

For section 1 of the M5Mineral Workings (Offshore Installations) Act 1971 (in this Act referred to as “the 1971 Act”) there shall be substituted the following section—

“1 Application of Act.

(1)This Act shall apply to any activity mentioned in subsection (2) below which is carried on from, by means of or on an installation which is maintained in the water, or on the foreshore or other land intermittently covered with water, and is not connected with dry land by a permanent structure providing access at all times and for all purposes.

(2)The activities referred to in subsection (1) above are—

(a)the exploitation or exploration of mineral resources in or under the shore or bed of controlled waters ;

(b)the storage of gas in or under the shore or bed of controlled waters or the recovery of gas so stored ;

(c)the conveyance of things by means of a pipe, or system of pipes, constructed or placed on, in or under the shore or bed of controlled waters ; and

(d)the provision of accommodation for persons who work on or from an installation which is or has been maintained, or is intended to be established, for the carrying on of an activity falling within paragraph (a), (b) or (c) above or this paragraph.

(3)Her Majesty may by Order in Council provide that, in such cases and subject to such exceptions and modifications as may be prescribed by the Order, this Act shall have effect as if—

(a)any reference to controlled waters included a reference to waters in any area specified under section 22(5) of the Oil and Gas (Enterprise) Act 1982 ; and

(b)in relation to installations which are or have been maintained, or are intended to be established, in controlled waters, any reference in subsection (2) above to controlled waters included a reference to waters in a foreign sector of the continental shelf which are adjacent to such waters.

(4)In this Act—

• “controlled waters” means

  (a)

  tidal waters and parts of the sea in or adjacent to the United Kingdom up to the seaward limits of territorial waters ;

  (b)

  waters in any area designated under section 1(7) of the Continental Shelf Act 1964 ; and

  (c)

  such inland waters as may for the time being be specified for the purposes of this paragraph by Order in Council ;

• “foreign sector of the continental shelf” means an area which is outside the territorial waters of any state and within which rights are exercisable by a state other than the United Kingdom with respect to the sea bed and subsoil and their natural resources ;

• “offshore installation” means an installation which is or has been maintained, or is intended to be established, for the carrying on of any activity to which this Act applies.

(5)In this section—

• “exploration” means exploration with a view to exploitation ;

• “inland waters” means waters within the United Kingdom other than tidal waters and parts of the sea ;

• “installation” includes—

  (a)

  any floating structure or device maintained on a station by whatever means ; and

  (b)

  in such cases and subject to such exceptions as may be prescribed by Order in Council, any apparatus or works which are by virtue of section 33 of the Petroleum and Submarine Pipe-lines Act 1975 to be treated as associated with a pipe or system of pipes for the purposes of Part III of that Act,

  but, subject to paragraph (b) above, does not include any part of a pipe-line within the meaning of that section ;

• “modfications” includes additions, omissions and alterations.

(6)The fact that an installation has been maintained for the carrying on of an activity falling within subsection (2) above shall be disregarded for the purposes of this section if, since it was so maintained, the installation—

(a)has been outside controlled waters or, where it was so maintained in a part of a foreign sector of the continental shelf adjacent to those waters, the area consisting of those waters and that part ; or

(b)has been maintained for the carrying on of an activity not falling within that subsection.

(7)Orders in Council made under this section may be varied or revoked by a subsequent Order so made ; and any statutory instrument containing an Order under subsection (3) above shall be subject to annulment in pursuance of a resolution of either House of Parliament.”

25 Extended meaning of “pipe-line” etc. in the 1975 Act.U.K.

(1)In section 33(1) of the 1975 Act (meaning of pipeline etc.), after paragraph (a) there shall be inserted the following paragraph—

“(aa)any apparatus for treating or cooling any thing which is to flow through, or through part of, the pipe or system ;”

(2)In section 22(1) of that Act (compulsory increases in capacity etc.) of pipe-lines)—

(a)for the words “a pipe” in paragraph (b) there shall be substituted the words “ another pipe-line ”; and

(b)the words “connected with the pipe-line” in paragraph (i) shall be omitted.

(3)In section 23(3)(d) of that Act (acquisition by persons of right to use pipe-lines belonging to others) for the words “a pipe and apparatus” there shall be substituted the words “ a pipe-line ”.

(4)Any pipe-line in relation to which there is in force an authorisation which has been granted under Part III of that Act before the coming into force of subsection (1) above shall not be regarded for the purposes of—

(a)section 24(4) of that Act (termination of authorisations); or

(b)section 25(1) of that Act (vesting of pipe-lines on termination of authorisations),

as comprising any such associated apparatus as is mentioned in paragraph (aa) of section 33(1) of that Act.

(5)In subsection (3)(a) of section 26 of that Act (safety regulations) sub-paragraphs (i) and (ii) (exclusion of pipe-lines forming part of offshore installations etc.) shall cease to have effect.

26 Extended application of the Offshore Petroleum Development (Scotland) Act 1975.U.K.

(1)In section 1 of the M6Offshore Petroleum Development (Scotland) Act 1975 (acquisition of land in connection with offshore petroleum)—

(a)at the end of subsection (1) there shall be inserted the words “ or the storage of gas in or under the sea bed or the recovery of gas so stored ”;

(b)at the end of subsection (2)(a) there shall be inserted the words “ or the storage of gas in or under the sea bed or the recovery of gas so stored ” ;

(c)at the end of subsection (2)(b) there shall be inserted the words “ or conveying gas to or from the places in or under the sea bed where it is stored or to be stored ” ; and

(d)in subsection (2)(c) after the word “despatch” there shall be inserted the words “ or for the reception of gas and for its storage or onward despatch to or from the places in or under the sea bed where it is stored or to be stored and any treatment incidental thereto ”.

(2)In section 20(2) of that Act (interpretation)—

(a)after the definition of “harbour authority” there shall be inserted the following definition—

““installation” includes any floating structure or device maintained on a station by whatever means ;” ; and

(b)in the definition of “relevant operations” after the word “petroleum” there shall be inserted the words “ or the storage of gas in or under the sea bed or the recovery of gas so stored ”.

27 Prosecutions.U.K.

(1)Subject to subsection (2) below, this section has effect as respects—

(a)any offence alleged to have been committed on, under or above an installation in waters to which section 22 above applies, or any waters within five hundred metres of such an installation;

(b)any offence under the 1971 Act alleged to have been committed elsewhere than in the United Kingdom;

(c)any offence committed on or as respects an aircraft which is not registered in the United Kingdom, being an offence created by virtue of paragraph 6(5) of Part III of Schedule 13 to the M7Civil Aviation Act 1982; . . . F7

(d). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F8

(2)An offence shall not be one within subsection (1) above if it is an offence under, or under any provision having effect under—

(a)the M8Merchant Shipping Acts 1894 to 1979, [F9the Pilotage Act 1987] or any enactment to be construed as one with the Merchant Shipping Act 1894;

(b)the M9Prevention of Oil Pollution Act 1971, or any enactment to be construed as one with that Act;

(c)Part I of the M10Finance Act 1972, or any enactment to be construed as one with that Part;

(d)Part III of the 1975 Act;

(e)the Customs and Excise Acts 1979, or any enactment to be construed as one with those Acts or any of them; or

(f)except where it is created by virtue of paragraph 6(5) of Part III of Schedule 13 to the Civil Aviation Act 1982, that Act or any enactment to be construed as one with that Act.

[F10(g)Part I of the M11Petroleum Act 1987.]

(3)No proceedings shall be instituted in England and Wales for an offence within subsection (1) above except—

(a)in the case of an offence under the 1971 Act or under [F11section 23 of the Petroleum Act 1987] by the Secretary of State or by a person authorised in that behalf by the Secretary of State; or

(b)in the case of any offence, by or with the consent of the Director of Public Prosecutions;

but this subsection shall not apply to an offence if prosecution of that offence in England and Wales requires the consent of the Attorney General

(4)No proceedings shall be instituted in Northern Ireland for any offence within subsection (1) above except—

(a)in the case of an offence under the 1971 Act or under section 21 above, by the Secretary of State or by a person authorised in that behalf by the Secretary of State; or

(b)in the case of any offence, by or with the consent of the Director of Public Prosecutions for Northern Ireland;

but this subsection shall not apply to an offence if prosecution of that offence in Northern Ireland requires the consent of the Attorney General for Northern Ireland.

(5)Section 3 of the M12Territorial Waters Jurisdiction Act 1878 (consents required for prosecutions) shall not apply to any proceedings for an offence within subsection (1) above.

(6)Any reference in this section to an offence under the 1971 Act includes a reference to an offence under regulations made under that Act.

(7)Section 10 of the 1971 Act (which is superseded by this section) shall cease to have effect.

28 Interpretation of Part IV.U.K.

(1)In this Part—

• [F12“foreign sector of the continental shelf” means an area within which rights are exercisable with respect to the sea bed and subsoil and their natural resources by a country or territory outside the United Kingdom;]

• “installation” includes any floating structure or device maintained on a station by whatever means;

• “statutory maximum”, in relation to a fine on summary conviction, means—

(a)in England, [F13and Wales], the prescribed sum within the meaning of section 32 of the M13Magistrates’ Courts Act 1980 (at the passing of this Act £1,000); and

(b)in Scotland, the prescribed sum within the meaning of section 289B of the M14Criminal Procedure (Scotland) Act 1975 (at the passing of this Act £1,000); [F14and]

[F15(c)in Northern Ireland, the prescribed sum within the meaning of Article 4 of the M15 Fines and Penalties (Northern Ireland) Order 1984];

• “submersible apparatus” has the same meaning as in section 16(2) of the M16Merchant Shipping Act 1974;

• “vessel” includes a hovercraft, submersible apparatus and an installation which is in transit and “master”—

(a)in relation to a hovercraft, means the captain;

(b)in relation to submersible apparatus, means the person in charge of the apparatus; and

(c)in relation to an installation which is in transit, means the person in charge of the transit operation.

(2)It is hereby declared that, notwithstanding that this Part may affect individuals or bodies corporate outside the United Kingdom, it applies to any individual whether or not he is a British subject, and to any body corporate whether or not incorporated under the law of any part of the United Kingdom.

Part VU.K. Miscellaneous and General

29 Northern Ireland and Isle of Man shares of petroleum revenue.U.K.

(1)Where petroleum is delivered to the Secretary of State under the terms of a licence granted under section 2 of the 1934 Act as applied by section 1(3) of the 1964 Act, then, for the purposes of section 2 of the M17Miscellaneous Financial Provisions Act 1968 (Northern Ireland and Isle of Man shares of revenue from the continental shelf), the proceeds from the licence shall be taken to include the proceeds of the sale of the petroleum less—

(a)any sums paid by the Secretary of State in respect of the petroleum or the delivery or treatment of the petroleum; and

(b)any expenses incurred by the Secretary of State in connection with the sale.

(2)In this section and section 30 below “petroleum” has the same meaning as in the 1934 Act.

30 Payments to petroleum production licence holders etc.U.K.

(1)Where for any chargeable period for the purposes of a licence granted under section 2 of the 1934 Act any person has been required to deliver petroleum to the Secretary of State under the terms of that licence, subsection (3) of section 41 of the 1975 Act (repayment of royalty payments to facilitate or maintain the development of the petroleum resources of the United Kingdom) shall have effect as if for that period that person had paid to the Secretary of State by way of royalty such sum, or (where he has been required to deliver some but not all of the petroleum which he could have been required to deliver) such additional sum, as he would have been required to pay under the terms of the licence if he had not been required to deliver the petroleum.

(2)Subsections (1) and (2) of the said section 41 (payments in pursuance of participation agreements) and, in subsection (4) of that section, the words “or an order made by virtue of this section” shall cease to have effect.

31 Participation agreements as respects onshore petroleum. U.K.

In section 1(3) of the M18Participation Agreements Act 1978 (meaning of “participation agreement”) after the word “petroleum”, in the first place where it occurs, there shall be inserted the words “ existing in its natural condition in strata in the United Kingdom or ”.

32 Provisions as to regulations, orders, etc.U.K.

(1)Any power conferred by this Act to make [F16regulations or] orders [F17and the power conferred by section 11(1) above to give directions] shall be exercisable by statutory instrument.

(2)Any statutory instrument containing an Order in Council under this Act, [F17an order under section . . . F18 11(3) or (5) above or a direction under section 11(1) above] shall be subject to annulment in pursuance of a resolution of either House of Parliament.

[F19(3)Where the Secretary of State gives directions—

(a). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F20

(b)to the Gas Corporation under any provision of Part II of this Act.

it shall be the duty of that Corporation (notwithstanding any duty imposed on it by or under any enactment) to comply with the directions.]

[F2133 Stamp duty.U.K.

(1)Stamp duty shall not be chargeable on any instrument which is certified to the Commissioners of Inland Revenue by . . . F22 the Gas Corporation as having been made or executed for both of the following purposes, namely—

(a)to facilitate such an eventual disposal as is mentioned in . . . F22, section 10(1) above; and

(b)to comply with a direction given by the Secretary of State under . . . F22, section 11(1) above;

but no such instrument shall be deemed to be duly stamped unless it is stamped with the duty to which it would but for this subsection be liable or it has, in accordance with the provisions of section 12 of the M19Stamp Act 1891, been stamped with a particular stamp denoting that it is not chargeable with any duty or that it is duly stamped.

(2)Stamp duty shall not be chargeable under section 47 of the M20Finance Act 1973 in respect of—

(a)the formation of a subsidiary of [F23the Gas Corporation], or

(b)any increase in the capital of such a subsidiary,

if the transaction concerned is certified by the Treasury as satisfying the requirements of subsection (3) below.

(3)A transaction satisfies the requirements of this subsection if—

(a)it is effected for both of the purposes mentioned in subsection (1) above; and

(b)it is entered into in connection with one or more transfers to be effected under section . . . F22 10 above and does not give rise to an excess of capital.

(4)For the purposes of subsection (3) above a transaction gives rise to an excess of capital if—

(a)in a case falling within subsection (2)(a) above, the total issued capital of the subsidiary exceeds, in the date of the transaction, the total value of the assets less liabilities transferred; or

(b)in a case falling within subsection (2)(b) above, the aggregate amount of the increase of issued capital of the subsidiary exceeds, on that date, that total value;

and in this subsection “issued capital” means issued share capital or loan capital.]

[F2434 Application of Trustee Investments Act 1961.U.K.

(1)For the purpose of applying paragraph 3(b) of Part IV of Schedule 1 to the M21Trustee Investments Act 1961 (which provides that shares and debentures of a company shall not count as wider-range and narrower-range investments respectivey within the meaning of that Act unless the company has paid dividends in each of the five years immediately preceding that in which the investment is made) in relation to investment in shares or debentures of a company to which this section applies during the first investment year or during any year following that year, the company shall be deemed to have paid a dividend as there mentioned—

(a)in any year preceding the first investment year which is included in the relevant five years; and

(b)in the first investment year, if that year is included in the relevant five years and the company does not in fact pay such a dividend in that year.

(2)This section applies to any company of which shares have been transferred to the Secretary of State or a nominee of his by an order under section 3(4) or 11(5) above.

(3)In this section—

• “the first investment year”, in relation to a company to which this section applies, means the calendar year in which the relevant order or, as the case may be, the first such order was made; and

• “the relevant five years” means the five years immediately preceding the calendar year in which the investment in question is made or is proposed to be made.]

35 Financial provisions.U.K.

(1)There shall be paid out of money provided by Parliament—

(a)any administrative expenses of the Secretary of State; and

(b)any increase attributable to the provisions of this Act in the sums which under any other enactment are paid out of money so provided.

(2)There shall be paid into the Consolidated Fund any increase attributable to this Act in the sums which under any other enactment are payable into that Fund.

36 General interpretation.U.K.

In this Act—

• “the 1934 Act” means the M22Petroleum (Production) Act 1934;

• “the 1964 Act” means the M23Continental Shelf Act 1964;

• “the 1971 Act” means the M24Mineral Workings (Offshore Installations) Act 1971;

• [F25“the 1972 Act” means the M25Gas Act 1972;]

• “the 1975 Act” means the M26Petroleum and Submarine Pipelines Act 1975;

• “the commencement date”, in relation to any provision of this Act, means the date of the coming into force of that provision;

• “employees’ share scheme” means a scheme for encouraging or facilitating the holding of shares or debentures in a company by or for the benefit of—

(a)the bona fide employees or former employees of the company or of a subsidiary of the company; or

(b)the wives, husbands, widows, widowers or children or step-children under the age of 18 of such employees or former employees;

• [F25“the Gas Corporation” means the British Gas Corporation;]

• “modifications” includes additions, omissions and alterations;

• . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F26

• “securities” includes shares, debentures, debenture stock, bonds and other securities of the company concerned, whether or not constituting a charge on the assets of the company;

• “shares” include stock;

• “statutory provision”, except in relation to Northern Ireland, has the same meaning as in section 57(1) of the M27Harbours Act 1964 and, in relation to Northern Ireland, has the same meaning as in section 1(f) of the M28Interpretation Act (Northern Ireland) 1954.

37 Amendments and repealsU.K.

(1)The enactments specified in Schedule 3 to this Act shall have effect subject to the amendments specified in that Schedule (being minor amendments or amendments consequential upon the preceding provisions of this Act).

(2)The enactments specified in Schedule 4 to this Act are hereby repealed to the extent specified in the third column of that Schedule.

38 Short title, commencement and extent.U.K.

(1)This Act may be cited as the Oil and Gas (Enterprise) Act 1982.

(2)This Act shall come into force on such day as the Secretary of State may by order appoint, and different days may be so appointed for different provisions or different purposes.

(3)This Act, except Parts II and III and Schedule 2, extends to Northern Ireland.

SCHEDULES

Sections 2 and 10.

[F27SCHEDULE 1U.K. Provisions as to transfers of property rights and liabilities

Allocation of property, rights and liabilitiesU.K.

1(1)The provisions of this paragraph and paragraph 2 below shall have effect where a transfer to which this Schedule applies is a transfer of all property, rights and liabilities comprised in a prescribed part of the transferor’s undertaking, but shall not apply to any such rights or liabilities under a contract of employment.U.K.

(2)Any property, right or liability comprised partly in the part of the transferor’s undertaking which is transferred to the transferee and partly in the part of that undertaking which is retained by the transferor shall, where the nature of the property, right or liability permits, be divided or apportioned between the transferor and the transferee in such proportions as may be appropriate ; and, where any estate or interest in land falls to be so divided—

(a)any rent payable under a lease in respect of that estate or interest ; and

(b)any rent charged on that estate or interest,

shall be correspondingly apportioned or divided so that the one part is payable in respect of, or charged on, only one part of the estate or interest and the other part is payable in respect of, or charged on, only the other part of the estate or interest.

(3)Sub-paragraph (2) above shall apply, with any necessary modifications, in relation to any feuduty payable in respect of an estate or interest in land in Scotland as it applies in relation to any rents charged on an estate or interest in land.

(4)Any property, right or liability comprised as mentioned in sub-paragraph (2) above the nature of which does not permit its division or apportionment as so mentioned shall be transferred to the transferee or retained by the transferor according to—

(a)in the case of an estate or interest in land, whether on the transfer date the transferor or the transferee appears to be in greater need of the security afforded by that estate or interest or, where neither appears to be in greater need of that security, whether on that date the transferor or the transferee appears likely to make use of the land to the greater extent ;

(b)in the case of any other property or any right or liability, whether on the transfer date the transferor or the transferee appears likely to make use of the property, or as the case may be to be affected by the right or liability, to the greater extent,

subject (in either case) to such arrangements for the protection of the other of them as may be agreed between them.

2(1)It shall be the duty of the transferor and the transferee, whether before or after the transfer date, so far as practicable to arrive at such written agreements and to execute such other instruments as are necessary or expedient to identify or define the property, rights and liabilities transferred to the transferee or retained by the transferor and as will—U.K.

(a)afford to the transferor and the transferee as against one another such rights and safeguards as they may require for the proper discharge of their respective functions ; and

(b)make as from such date, not being earlier than the transfer date, as may be specified in the agreement or instrument such clarification and modifications of the division of the transferor’s undertaking as will best serve the proper discharge of the respective functions of the transferor and the transferee.

(2)Any such agreement shall provide so far as it is expedient—

(a)for the granting of leases and for the creation of other liabilities and rights over land whether amounting in law to interests in land or not, and whether involving the surrender of any existing interest or the creation of a new interest or not;

(b)for the granting of indemnities in connection with the severance of leases and other matters ; and

(c)for responsibility for registration of any matter in any statutory register.

(3)If the transferor or the transferee represents to the Secretary of State, or if it appears to the Secretary of State without such a representation, that it is unlikely in the case of any matter on which agreement is required under sub-paragraph (1) above that such agreement will be reached , the Secretary of State may, whether before or after the transfer date, give a direction determining that matter and may include in the direction any provision which might have been included in an agreement under sub-paragraph (1) above ; and any property, rights or liabilities required by the direction to be transferred to the transferee shall be regarded as having been transferred by the scheme to, and by virtue thereof vested in, the transferee accordingly.

Rights and liabilities under contracts of employmentU.K.

3(1)The provisions of this paragraph shall have effect where a transfer to which this Schedule applies is a transfer of all property, rights and liabilities comprised in a prescribed part of the transferor’s undertaking and it falls to be determined whether the rights and liabilities transferred include rights and liabilities under a particular contract of employment.U.K.

(2)Rights and liabilities under the contract of employment shall be transferred only if immediately before the transfer date the employee is employed wholly or mainly for the purposes of the part of the transferor’s undertaking which is transferred.

(3)The transferor, the transferee or the employee may apply to the Secretary of State to determine whether or not rights and liabilities in respect of the employee’s services under the contract of employment are transferred, and the Secretary of State’s decision on the application shall be final.

Right to production of documents of titleU.K.

4U.K.Where on any transfer to which this Schedule applies the transferor is entitled to retain possession of any documents relating in part to the title to, or to the management of, any land or other property transferred to the transferee, the transferor shall be deemed to have given to the transferee an acknowledgment in writing of the right of the transferee to production of that document and to delivery of copies thereof; and section 64 of the M29 Law of Property Act 1925 shall have effect accordingly, and on the basis that the acknowledgment did not contain any such expression of contrary intention as is mentioned in that section.

Perfection of vesting of certain property or rightsU.K.

5U.K.Where in the case of any transfer to which this Schedule applies any property, right or liability which falls to be transferred to the transferee cannot be properly vested in the transferee by virtue of the scheme because transfers thereof are governed otherwise than by the law of a part of the United Kingdom, the transferor and the transferee shall take all practicable steps for the purpose of securing that the transfer of the property, right or liability is effective under the relevant foreign law.

Proof of title by certificateU.K.

6U.K.In the case of any transfer to which this Schedule applies, a joint certificate by or on behalf of the transferor and the transferee that any property specified in the certificate, or any such interest in or right over any such property as may be so specified, or any right or liability so specified, is by virtue of the scheme for the time being vested in such one of them as may be so specified, shall be conclusive evidence for all purposes of that fact ; and if on the expiration of one month after a request from either of them for the preparation of such a joint certificate as respects any property, interest, right or liability they have failed to agree on the terms of the certificate, they shall refer the matter to the Secretary of State and issue the certificate in such terms as he may direct.

Restrictions on dealing with certain landU.K.

7U.K.If the Secretary of State is satisfied on the representation of the transferor or the transferee that, in consequence of a transfer to which this Schedule applies, different interests in land, whether the same or different land, are held by the transferor and by the transferee and that the circumstances are such that this paragraph should have effect, the Secretary of State may direct that this paragraph shall apply to such of that land as may be specified in the direction, and while that direction remains in force—

(a)neither the transferor nor the transferee shall dispose of any interest to which they may respectively be entitled in any of the specified land except with the consent of the Secretary of State ;

(b)if in connection with any proposal to dispose of any interest of either the transferor or the transferee in any of the specified land it appears to the Secretary of State to be necessary or expedient for the protection of either of them, he may—

(i)require either the transferor or the transferee to dispose of any interest to which it may be entitled in any of the specified land to such person and in such manner as may be specified in the requirement ;

(ii)require either the transferor or the transferee to acquire from the other any interest in any of the specified land to which that other is entitled ; or

(iii)consent to the proposed disposal subject to compliance with such conditions as the Secretary of State, may see fit to impose ;

but a person other than the transferor and the transferee dealing with, or with a person claiming under, either the transferor or the transferee shall not be concerned to see or enquire whether this paragraph applies or has applied in relation to any land to which the dealing relates or as to whether the provisions of this paragraph have been complied with in connection with that land, and no transaction between persons other than the transferor and the transferee shall be invalid by reason of any failure to comply with those provisions.

Construction of agreements, licences, statutory provisions and documentsU.K.

8(1)This paragraph applies where in the case of any transfer to which this Schedule applies any rights or liabilities transferred are rights or liabilities under an agreement or licence to which the transferor was a party immediately before the transfer date, whether in writing or not, and whether or not of such nature that rights and liabilities thereunder could be assigned by the transferor.U.K.

(2)So far as relating to property, rights or liabilities transferred to the transferee, the agreement or licence shall have effect on and after the transfer date as if—

(a)the transferee had been the party thereto ;

(b)for any reference (whether express or implied and, if express, however worded) to the transferor there were substituted, as respects anything falling to be done on or after the transfer date, a reference to the transferee;

(c)any reference (whether express or implied and, if express, however worded) to a person employed by, or engaged in the business of, the transferor and holding a specified office or serving in a specified capacity were, as respects anything falling to be done on or after the transfer date, a reference to such person as the transferee may appoint or, in default of appointment, to a person employed by, or engaged in the business of, the transferee who corresponds as nearly as may be to the first-mentioned person;

(d)any reference in general terms (however worded) to persons employed by, persons engaged in the business of, or agents of, the transferor were, as respects anything to be done on or after the transfer date, a reference to persons employed by, persons engaged in the business of, or agents of, the transferee.

9U.K.Except as otherwise provided in any provision of this Act (whether expressly or by necessary implication) paragraph 8 above shall, so far as applicable, apply in relation to any statutory provision, any provision of an agreement or licence to which the transferor was not a party and any provision of a document other than an agreement or licence, if and so far as the provision in question relates to any of the transferred rights and liabilities, as it applies in relation to an agreement or licence to which the transferor was a party, and, in relation to any such statutory or other provision as aforesaid, references in sub-paragraph (2)(b), (c) and (d) of that paragraph to the transferor and to any persons employed by, persons engaged in the business of, or agents of, the transferor include references made by means of a general reference to a class of persons of which the transferor is one, without the transferor itself being specifically referred to.

10U.K.Without prejudice to the generality of the provisions of paragraphs 8 and 9 above, the transferee under a transfer to which this Schedule applies and any other person shall, as from the transfer date, have the same rights powers and remedies (and in particular the same rights and powers as to the taking or resisting of legal proceedings or the making or resisting of applications to any authority) for ascertaining, perfecting or enforcing any right or liability vested in the transferee by virtue of the scheme as he would have had if that right or liability had at all times been a right or liability of the transferee, and any legal proceedings or applications to any authority pending on the transfer date by or against the transferor in so far as they relate to any property, right or liability vested in the transferee by virtue of the scheme, or to any agreement or enactment relating to any such property, right or liability, shall be continued by or against the transferee to the exclusion of the transferor.

11U.K.The provisions of paragraphs 8 to 10 above shall have effect for the interpretation of agreements, licences, statutory provisions and other instruments subject to the context, and shall not apply where the context otherwise requires.

Third parties affected by vesting provisionsU.K.

12(1)Without prejudice to the provisions of paragraphs 8 to 11 above, any transaction effected between the transferor and the transferee in pursuance of paragraph 2(1) above or of a direction under paragraph 2(3) above shall be binding on all other persons, and notwithstanding that it would, apart from this sub-paragraph, have required the consent or concurrence of any other person.U.K.

(2)It shall be the duty of the transferor and the transferee if they effect any transaction in pursuance of paragraph 2(1) above or a direction under paragraph 2(3) above to notify any person who has rights or liabilities which thereby become enforceable as to part by or against the transferor and as to part by or against the transferee, and if, within 28 days of being notified, such a person applies to the Secretary of State and satisfies him that the transaction operated unfairly against him the Secretary of State may give such directions to the transferor and the transferee as appear to him appropriate for varying the transaction.

(3)If in consequence of a transfer to which this Schedule applies or of anything done in pursuance of the provisions of this Schedule the rights or liabilities of any person other than the transferor and the transferee which were enforceable against or by the transferor become enforceable as to part against or by the transferor and as to part against or by the transferee, and the value of any property or interest of that person is thereby diminished, such compensation as may be just shall be paid to that person by the transferor, the transferee or both, and any dispute as to whether and if so how much compensation is so payable, or as to the person to or by whom it shall be paid, shall be referred to and determined by an arbitrator appointed by the Lord Chancellor or, where the proceedings are to be held in Scotland, by an arbiter appointed by the Lord President of the Court of Session.

(4)Where in the case of a transfer to which this Schedule applies the transferor or the transferee purports by any conveyance or transfer to transfer to some person other than the transferor or the transferee for consideration any land or any other property transferred which before the transfer date belonged to the transferor or which is an interest in property which before that date belonged to the transferor, the conveyance or transfer shall be as effective as if both the transferor and the transferee had been parties thereto and had thereby conveyed or transferred all their interests in the property conveyed or transferred.

(5)If in the case of any transfer to which this Schedule applies it appears to the court, at any stage in any court proceedings to which the transferor or the transferee and a person other than the transferor or the transferee are parties, that the issues in the proceedings depend on the identification or definition of any of the property, rights or liabilities transferred which the transferor and the transferee have not yet effected, or to raise a question of construction on the relevant provisions of this Act which would not arise if the transferor and the transferee constituted a single person, the court may, if it thinks fit on the application of a party to the proceedings other than the transferor and the transferee, hear and determine the proceedings on the footing that such one of the transferor and the transferee as is a party to the proceedings represents and is answerable for the other of them, and that the transferor and the transferee constitute a single person, and any judgment or order given by the court shall bind both the transferor and the transferee accordingly.

(6)In the case of any transfer to which this Schedule applies it shall be the duty of the transferor and the transferee to keep one another informed of any case where either of them may be prejudiced by sub-paragraph (4) or (5) above, and if either the transferor or the transferee claims that it has been so prejudiced and that the other of them ought to indemnify or make a repayment to it on that account and has unreasonably failed to meet that claim, it may refer the matter to the Secretary of State for determination by him.]

SCHEDULE 2E+W+S Petroleum Production Licences: Modification of Model Clauses

Part II of Schedule 2 to the 1975 ActE+W+S

1(1)In paragraph (1) of clause 9 of the model clauses set out in Part II of Schedule 2 to the 1975 Act for the words “clause 10” there shall be substituted the words “ clauses 10 and 11A ”.E+W+S

(2)In paragraph (6) of clause 10 of those clauses after the words “for tax purposes” there shall be inserted the words “ and a sum has been ascertained in pursuance of paragraph (7) of clause 9 of this licence in respect of the cost of conveying and treating the petroleum ” and for the words “clause 9 of this licence” there shall be substituted the words “ that clause ”.

(3)In paragraph (7) of that clause for the words “the amount specified in the previous notice” there shall be substituted the words “ the total amount already paid by the Licensee in pursuance of this clause in respect of that period ”.

(4)In paragraph (9) of that clause for the words “falls to be” there shall be substituted the word “ is ”.

(5)After paragraph (10) of that clause there shall be inserted the following paragraph—

“(11)For the purposes of this clause any amount paid by the Licensee or the Minister on account of a prospective liability under paragraph (5), (6) or (7) of this clause shall be treated as paid in pursuance of that paragraph.”

(6)In paragraph (3) of clause 11 of those clauses—

(a)in sub-paragraph (c) from “ crude oil ” onwards there shall be substituted the words

, condensate, natural gas and natural gas liquids, in each case of a quality or composition or of each quality or composition determined in the manner specified in the notice ”; and

(b)in sub-paragraph (d) for the word “specify” there shall be substituted the words “ contain provisions with respect to ”.

(7)In paragraphs (4) of that clause for sub-paragraph (c) there shall be substituted the following sub-paragraph—

“(c)shall not specify, or enable to be specified, as a place at which delivery is to be made in pursuance of the notice a place which is neither a point at sea at which the Licensee normally loads, nor a point on land at which the Licensee normally lands, petroleum of any kind from the licensed area.”

(8)Paragraph (5) of that clause shall be omitted.

(9)After that clause there shall be inserted the following clause—

“11A Cost of delivery and treatment of petroleum.

(1)Where petroleum or petroleum of any kind is delivered to the Minister in pursuance of a notice served by virtue of clause 11(1) of this licence, the Minister shall pay to the Licensee a sum in respect of the cost of the delivery and treatment of the petroleum; and clause 9(7) of this licence shall apply for the purpose of ascertaining that sum as if for the reference to paragraph (5)(b) of that clause there were substituted a reference to this paragraph.

(2)Where, in any chargeable period, petroleum or petroleum of any kind is delivered to the Minister as mentioned in paragraph (1) of this clause, the Licensee shall, within two months after the end of that period, deliver to the Minister, in such form as the Minister may specify, a statement of the amount which the Licensee estimates is payable by the Minister in pursuance of this clause in respect of that period; and where the amount specified in the statement is larger or smaller than the total amount (if any) already paid by the Minister in pursuance of this clause in respect of that period, then—

(a)if it is larger the difference shall be paid forthwith by the Minister to the Licensee; and

(b)if it is smaller the difference shall be paid forthwith by the Licensee to the Minister.

(3)The Minister may from time to time, after a statement in respect of any chargeable period has been delivered to him in pursuance of paragraph (2) of this clause and before he has given to the Licensee a notice in pursuance of paragraph (4) of this clause in respect of that period, give a notice in writing to the Licensee specifying the amount which the Minister estimates is payable by him in pursuance of this clause in respect of that period; and where the amount specified in the notice is larger or smaller than the total amount already paid by the Minister in pursuance of this clause in respect of that period, then—

(a)if it is larger the difference shall be paid forthwith by the Minister to the Licensee; and

(b)if it is smaller the difference shall be paid forthwith by the Licensee to the Minister.

(4)When it appears to the Minister that the amount payable by him in pursuance of this clause in respect of any chargeable period has been finally ascertained, he may give to the Licensee a notice in writing specifying the amount which the Minister considers is so payable; and where the amount specified in the notice is larger or smaller than the total amount already paid by the Minister in pursuance of this clause in respect of that period, then, subject to paragraph (5) of this clause—

(a)if it is larger the difference shall be paid forthwith by the Minister to the Licensee; and

(b)if it is smaller the difference shall be paid forthwith by the Licensee to the Minister.

(5)A decision made by the Minister for the purposes of paragraph (3) or (4) of this clause shall not be called in question by the Licensee except that any dispute between the Minister and the Licensee as to whether an amount specified in a notice given in pursuance of the said paragraph (4) is payable in pursuance of this clause may be referred to arbitration in the manner provided by clause 40 of this licence.

(6)Where any payment is made by the Minister or the Licensee in pursuance of paragraph (3) or (4) of this clause, an amount in respect of interest on the payment shall also be payable by him to the recipient of the payment and that amount shall be calculated in such manner as the Minister may specify from time to time in a notice in writing given by him to the Licensee; but—

(a)a notice in pursuance of this paragraph shall provide for amounts by way of interest to be calculated by applying a rate of interest which is for the time being a commercial rate of interest; and

(b)any such amount in respect of interest shall be disregarded in calculating for the purposes of the said paragraph (3) or (4) any amount already paid by the Minister in pursuance of this clause.

(7)For the purposes of this clause any amount paid by the Minister or the Licensee on account of a prospective liability under paragraph (3) or (4) of this clause shall be treated as paid in pursuance of that paragraph.”

Part II of Schedule 3 to the 1975 ActE+W+S

2(1)In paragraph (6) of clause 10 of the model clauses set out in Part II of Schedule 3 to the 1975 Act after the words “for tax purposes” there shall be inserted the words “ and a sum has been ascertained in pursuance of paragraph (7) of clause 9 of this licence in respect of the cost of conveying and treating the petroleum ” and for the words “clause 9 of this licence” there shall be substituted the words “ that clause ”.E+W+S

(2)In paragraph (7) of that clause for the words “the amount specified in the previous notice” there shall be substituted the words “ the total amount already paid by the Licensee in pursuance of this clause in respect of that period ”.

(3)In paragraph (9) of that clause for the words “falls to be” there shall be substituted the word “ is ”.

(4)After paragraph (10) of that clause there shall be inserted the following paragraph—

“(11)For the purposes of this clause any amount paid by the Licensee or the Minister on account of a prospective liability under paragraph (5), (6) or (7) of this clause shall be treated as paid in pursuance of that paragraph.”

(5)In paragraph (1) of clause 11 of those clauses the words “at the place where it was won” shall be omitted.

(6)In paragraph (3) of that clause—

(a)in sub-paragraph (c) for the words from “crude oil” onwards there shall be substituted the words “ crude oil, condensate, natural gas and natural gas liquids, in each case of a quality or composition or of each quality or composition determined in the manner specified in the notice ”; and

(b)in sub-paragraph (d) for the word “specify” there shall be substituted the words “ contain provisions with respect to ”.

(7)In paragraph (4) of that clause there shall be inserted at the end the following sub-paragraph—

“(c) shall not specify, or enable to be specified, as a place at which delivery is to be made in pursuance of the notice a place which is not a point at which the Licensee normally delivers petroleum of any kind from the licensed area.”

(8)Paragraph (5) of that clause shall be omitted.

(9)After that clause there shall be inserted the following clause—

“11A Cost of delivery and treatment of petroleum.

(1)Where petroleum or petroleum of any kind is delivered to the Minister in pursuance of a notice served by virtue of clause 11(1) of this licence, the Minister shall pay to the Licensee a sum in respect of the cost of the delivery and treatment of the petroleum; and clause 9(7) of this licence shall apply for the purpose of ascertaining that sum as if for the reference to paragraph (5)(b) of that clause there were substituted a reference to this paragraph.

(2)Where, in any chargeable period, petroleum or petroleum of any kind is delivered to the Minister as mentioned in paragraph (1) of this clause, the Licensee shall, within two months after the end of that period, deliver to the Minister, in such form as the Minister may specify, a statement of the amount which the Licensee estimates is payable by the Minister in pursuance of this clause in respect of that period; and where the amount specified in the statement is larger or smaller than the total amount (if any) already paid by the Minister in pursuance of this clause in respect of that period, then—

(a)if it is larger the difference shall be paid forthwith by the Minister to the Licensee; and

(b)if it is smaller the difference shall be paid forthwith by the Licensee to the Minister.

(3)The Minister may from time to time, after a statement in respect of any chargeable period has been delivered to him in pursuance of paragraph (2) of this clause and before he has given to the Licensee a notice in pursuance of paragraph (4) of this clause in respect of that period, give a notice in writing to the Licensee specifying the amount which the Minister estimates is payable by him in pursuance of this clause in respect of that period; and where the amount specified in the notice is larger or smaller than the total amount already paid by the Minister in pursuance of this clause in respect of that period, then—

(a)if it is larger the difference shall be paid forthwith by the Minister to the Licensee; and

(b)if it is smaller the difference shall be paid forthwith by the Licensee to the Minister.

(4)When it appears to the Minister that the amount payable by him in pursuance of this clause in respect of any chargeable period has been finally ascertained, he may give to the Licensee a notice in writing specifying the amount which the Minister considers is so payable; and where the amount specified in the notice is larger or smaller than the total amount already paid by the Minister in pursuance of this clause in respect of that period, then, subject to paragraph (5) of this clause—

(a)if it is larger the difference shall be paid forthwith by the Minister to the Licensee; and

(b)if it is smaller the difference shall be paid forthwith by the Licensee to the Minister.

(5)A decision made by the Minister for the purposes of paragraph (3) or (4) of this clause shall not be called in question by the Licensee except that any dispute between the Minister and the Licensee as to whether an amount specified in a notice given in pursuance of the said paragraph (4) is payable in pursuance of this clause may be referred to arbitration in the manner provided by clause 38 of this licence.

(6)Where any payment is made by the Minister or the Licensee in pursuance of paragraph (3) or (4) of this clause, an amount in respect of interest on the payment shall also be payable by him to the recipient of the payment and that amount shall be calculated in such manner as the Minister may specify from time to time in a notice in writing given by him to the Licensee; but—

(a)a notice in pursuance of this paragraph shall provide for amounts by way of interest to be calculated by applying a rate of interest which is for the time being a commercial rate of interest; and

(b)any such amount in respect of interest shall be disregarded in calculating for the purposes of the said paragraph (3) or (4) any amount already paid by the Minister in pursuance of this clause.

(7)For the purposes of this clause any amount paid by the Minister or the Licensee on account of a prospective liability under paragraph (3) or (4) of this clause shall be treated as paid in pursuance of that paragraph.

(8)In this clause “chargeable period” has the same meaning as in clause 9 of this licence.”

Schedule 4 to the 1976 RegulationsE+W+S

3(1)In paragraph (6) of clause 10 of the model clauses set out in Schedule 4 to the M30Petroleum (Production) Regulations 1976 for the words “the amount specified in the previous notice” there shall be substituted the words “ the total amount already paid by the Licensee in pursuance of this clause in respect of that period ”.E+W+S

(2)In paragraph (8) of that clause for the words “falls to be” there shall be substituted the word “ is ”.

(3)After paragraph (9) of that clause there shall be inserted the following paragraph—

“(10)For the purposes of this clause any amount paid by the Licensee or the Minister on account of a prospective liability under paragraph (4), (5) or (6) of this clause shall be treated as paid in pursuance of that paragraph.”

(4)In paragraph (1) of clause 11 of those clauses the words “at the place where it was won” shall be omitted.

(5)In paragraph (3) of that clause—

(a)in sub-paragraph (c) for the words from “crude oil” onwards there shall be substituted the words “ crude oil, condensate, natural gas and natural gas liquids, in each case of a quality or composition or f of each quality or composition determined in the manner specified in the notice ”; and

(b)in sub-paragraph (d) for the word “specify” there shall be substituted the words “ contain provisions with respect to ”.

(6)In paragraph (4) of that clause there shall be inserted at the end the l following sub-paragraph—

“(c) shall not specify, or enable to be specified, as a place at which delivery is to be made in pursuance of the notice a place which is not a point at which the Licensee normally delivers petroleum of any kind from the licensed area.”

Schedule 5 to the 1976 Regulations as originally made or as amended by the 1978 RegulationsE+W+S

4(1)In paragraph (6) of clause 10 of the model clauses set out in Schedule 5 to the M31Petroleum (Production) Regulations 1976 as originally made or as amended by the M32Petroleum (Production) (Amendment) Regulations 1978 for the words “the amount specified in the previous notice” there shall be substituted the words “ the total amount already paid by the Licensee in pursuance of this clause in respect of that period ”.E+W+S

(2)In paragraph (8) of that clause for the words “falls to be” there shall be substituted the word “ is ”.

(3)After paragraph (9) of that clause there shall be inserted the following paragraph—

“(10)For the purposes of this clause any amount paid by the Licensee or the Minister on account of a prospective liability under paragraph (4), (5) or (6) of this clause shall be treated as paid in pursuance of that paragraph.”

(4)In paragraph (3) of clause 11 of those clauses—

(a)in sub-paragraph (c) for the words from “crude oil” onwards there shall be substituted the words “ crude oil, condensate, natural gas and natural gas liquids, in each case of a quality or composition or of each quality or composition determined in the manner specified in the notice ”; and

(b)in sub-paragraph (d) for the word “specify” there shall be substituted the words “ contain provisions with respect to ”.

(5)In paragraph (4) of that clause for sub-paragraph (c) there shall be substituted the following sub-paragraph—

“(c) shall not specify, or enable to be specified, as a place at which delivery is to be made in pursuance of the notice a place which is neither a point at sea at which the Licensee normally loads, nor a point on land at which the Licensee normally lands, petroleum of any kind from the licensed area.”

Schedule 5 to the 1976 Regulations as amended by the 1978 and 1980 RegulationsE+W+S

5(1)In paragraph (4) of clause 10 of the model clauses set out in Schedule 5 to the M33Petroleum (Production) Regulations 1976 as amended by the M34Petroleum (Production) (Amendment) Regulations 1978 and the M35Petroleum (Production) (Amendment) Regulations 1980 after the words “of this clause” there shall be inserted the words “ and before he has given to the Licensee a notice in pursuance of paragraph (5) of this clause in respect of that period ”.E+W+S

(2)In paragraph (6) of that clause for the words “the amount specified in the previous notice” there shall be substituted the words “ the total amount already paid by the Licensee in pursuance of this clause in respect of that period ”.

(3)In paragraph (8) of that clause the words “or on account of a prospective liability under” shall be omitted.

(4)After paragraph (9) of that clause there shall be inserted the following paragraph—

“(10)For the purposes of this clause any amount paid by the Licensee or the Minister on account of a prospective liability under paragraph (4), (5) or (6) of this clause shall be treated as paid in pursuance of that paragraph.”

(5)In paragraph (3) of clause 11 of those clauses, in sub-paragraph (c) for the words from “crude oil” onwards there shall be substituted the words “ crude oil, condensate, natural gas and natural gas liquids, in each case of a quality or composition or of each quality or composition determined in the manner specified in the notice ”.

Section 37.

SCHEDULE 3U.K. Minor and Consequential Amendments

The Continental Shelf Act 1964U.K.

1U.K.At the end of section 1(7) of the 1964 Act (designated areas) there shall be inserted the words “ ; and the power to make Orders for the purpose of consolidating them. ”

2U.K.In section 6 (wireless telegraphy) and section 7 (radioactive substances) of that Act for the words “section 3 of this Act” there shall be substituted the words “ section 23 of the Oil and Gas (Enterprise) Act 1982 ”.

3U.K.In section 11(1) of that Act for the words from “under this Act (including” to “section 3(1) of this Act)” there shall be substituted the words “ under another Act as applies by or under this Act ”.

4U.K.After section 11 of that Act there shall be inserted the following section—

“11A Interpretation.

In this Act “installation” includes any floating structure or device maintained on a station by whatever means.”

[F28 The General Rate Act 1967U.K.

5(1)In subsection (3) of section 33 of the M36General Rate Act 1967 (British Gas Corporation) for the words from “the Corporation”, in the first place where they occur, to the end of paragraph (c) there shall be substituted the following paragraphs—U.K.

“(a)the Corporation—

(i)supplied gas to consumers in that area ; or

(ii)manufactured gas in that area ; or

(iii)produced gas in that area by the application to gas purchased by them of any process not consisting only of purification, or of blending with other gases, or of both purification and such blending ; or

(b)private suppliers (within the meaning of section 33A of this Act) supplied to consumers in that area gas which had been conveyed (whether within or outside that area) by pipe-lines belonging to the Corporation,”.

(2)In subsection (7) of that section for the words “includes gas in a liquid state” there shall be substituted the words “ has the same meaning as in Part I of the Gas Act 1972 ”.

6U.K.After that section there shall be inserted the following section—

33A“ Other suppliers of gas.

(1)The Secretary of State may by order provide that, in such cases and subject to such exceptions amd modifications as may be prescribed by the order, section 33 of and Part II of Schedule 6 to this Act shall apply to premises occupied by private suppliers for or in connection with the supply of gas through pipes to consumers’ premises.

(2)In this section—

• “gas” has the same meaning as in Part III of the Gas Act 1972 ;

• “private supplier” means a person authorised by a consent given under section 29 of that Act, or by section 29A of that Act, to supply gas through pipes to consumers’ premises.

(3)Any statutory instrument containing an order under this section shall be subject to annulment in pursuance of a resolution of either House of Parliament.”.]

The Mineral Workings (Offshore Installations) Act 1971U.K.

7(1)In section 3(4) of the 1971 Act (construction and survey regulations for offshore installations) for the words “the concession owner”, in both places where they occur, there shall be substituted the words “ every person who, in relation to the installation, is a concession owner ”.U.K.

8U.K.In sections 3(4), 4(1), 6(1) and 9(2) of that Act, for the words “waters to which this Act applies”, wherever they occur, there shall be substituted the words “ controlled waters ”.

9U.K.In section 5(2) of that Act (masters of offshore installations, further provisions) for the words “an installation” there shall be substituted the words “ an offshore installation ”.

10U.K.In section 6(2) of that Act (safety regulations) the word “and” immediately following paragraph (c) shall be omitted and after that paragraph there shall be inserted the following paragraph—

“(cc)vessels on which accommodation is provided for persons who work on or from installations, and”.

11(1)In subsection (1) of section 12 of that Act (interpretation)—U.K.

(a)for the definition of “concession owner” there shall be substituted the following definition—

““controlled waters” has the same meaning given by section 1(4) of this Act,” ;

(b)after the definition of “designated areas” there shall be inserted the following definition—

““foreign sector of the continental shelf” has the meaning as given by section 1(4) of this Act,” ;

(c)for the definition of “offshore installation” there shall be substituted the following definition–

““offshore installation” has the meaning given by section 1(4) of this Act,” ; and

(d)the definitions of “underwater exploitation” and “underwater exploration” shall be omitted.

(2)For subsections (2) and (3) of that section there shall be substituted the following subsections—

“(2)A person who has the right to exploit or explore mineral resources in any area, or to store gas in any area and to recover gas so stored, shall be a concession owner for the purposes of this Act in relation to any offshore installation at any time if, at that time, there is carried on from, by means of or on the installation any of the following activities, namely—

(a)the exploitation or exploration of mineral resources, or the storage or recovery of gas, in the exercise of that right ;

(b)the conveyance in that area by means of a pipe or system of pipes, of minerals gotten, or gas being stored or recovered, in the exercise of that right ; and

(c)the provision of accommodation for persons who work on or from an installation which is or has been maintained, or is intended to be established, for the carrying on of an activity falling within paragraph (a) or (b) above or this paragraph.

(3)The fact that an installation has been maintained for the carryingon of an activity falling within subsection (2) above shall be disregarded for the purposes of paragraph (c) of that subsection if, since it was so maintained, the installation—

(a)has been outside controlled waters or, where it was so maintained in a part of a foreign sector of the continental shelf adjacent to those waters, the area consisting of those waters and that part ; or

(b)has been maintained for the carrying on of an activity not falling within that subsection.”

12—20.U.K.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F29

The Social Security Act 1975U.K.

21In section 132(2) of the M37Social Security Act 1975 (meaning of “continental shelf operations”) for the words from “the exploitation” onwards there shall be substituted the words “ any activities which, if paragra[hs (a) and (d) of subsection (6) of section 23 of the Oil and Gas (Enterprise) Act 1982 (application of civil law to certain offshore activities) were omitted, would nevertheless fall within subsection (2) of that section. ”

Oil Taxation Act 1975U.K.

22U.K.In paragraph 2A(4) of Schedule 3 to the M38Oil Taxation Act 1975—

(a)in paragraph (a) for the words “section 8 or 9 of that Act” there shall be substituted the words “ section 29 of the Gas Act 1972 ” and the words “or use” and “and to the use of the gas supplied under it” shall be omitted ; and

(b)in paragraph (b) for the words “those sections” there shall be substituted the words “ that section ” and the words “or use” shall be omitted.

23U.K.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F30

The Fatal Accidents and Sudden Deaths Inquiry (Scotland) Act 1976U.K.

34U.K.In section 9 of the M40Fatal Accidents and Sudden Deaths Inquiry (Scotland) Act 1976 (application to continental shelf) for the words from “the exploration” to “resources” there shall be substituted the words “ any activity falling within subsection (2) of section 23 of the Oil and Gas (Enterprise) Act 1982 ” and for the words “section 3(2) of the Continental Shelf Act 1964” there shall be substituted the words “ subsection (1) of that section ”.

The Energy Act 1976U.K.

37(1)For sections 9 to 11 of the M43Energy Act 1976 (which impose restrictions on the use and liquefaction of offshore natural gas) there shall be substituted the following section—U.K.

“9 Liquefaction of offshore natural gas.

(1)The Secretary of State’s consent is required for offshore natural gas to be subjected in Great Britain to any process of liquefaction which results in the production of liquid methane or ethane as may be produced in the course of providing a supply with consent under under section 29 of the Gas Act 1972 and in compliance with any conditions subject to which that consent was given, or providing a supply for which consent is not required.

(2)The Secretary of State’s consent under subsection (1) above may be given either with reference to particular cases or by means of particular orders of general application.

(3)A specific consent given to any person under subsection (1) above (that is to say, a consent given to him otherwise than by an order of general application) is irrevocable and may be given for a specific period or indefinitely.

(4)Where consent under that subsection has been given by an order of general application, any person who proposes to undertake a process of liquefaction which isc overed by that general consent may notify the Secretary of State of his proposal (in the manner specified in the order), whereupon subsection (3) above applies as if specific consent either unlimited in duration or, if the order so provides, for the period there specified, had been given to him for that process of liquefaction.

(5)The consent of the Secretary of State under subsection (1) above may in any case be made subject to conditions which may, in particular, be framed by reference to the description or origin of the gas.

(6)In this section—

• “offshore natural gas” means natural gas won under the authority of licences under the Petroleum (Production) Act 1934, as applies by section 1(3) of the Continental Shelf Act 1964, but does not include gas derived from offshore crude otherwise than as a by-product of crude stabilisation ;

• “offshore crude” means crude liquid petroleum won under such authority ;

• “crude stabilisation” means the treating of offshore crude to enable it to be safely stored or transported.”.

(2)In section 17(1) of that Act for the words “10 or” there shall be substituted the words “ 9 or ”.

The Patents Act 1977U.K.

39U.K.In section 132(4) of the M45Patents Act 1977 (application of Act) for the words from “in connection” to “resources” there shall be substituted the words “ or specified by Order under section 22(5) of the Oil and Gas (Enterprise) Act 1982 in connection with any activity falling within section 23(2) of that Act ”.

The Employment Protection (Consolidation) Act 1978U.K.

The Civil Jurisdiction and Judgements Act 1982U.K.

42U.K.In paragraph 9 of Schedule 5 to the Civil Jurisdiction and Judgements Act 1982 (proceedings excluded from Schedule 4 to that Act) for the words “section 3 of the Continental Shelf Act 1964” there shall be substituted the words “ section 23 of the Oil and Gas (Enterprise) Act 1982 ”.

43U.K.In paragraph 10 of Schedule 9 to that Act (proceedings excluded from Schedule 8 to that Act) for the words “section 3 of the Continental Shelf Act 1964” there shall be substituted the words “ section 23 of the Oil and Gas (Enterprise) Act 1982 ”.

The Social Security and Housing Benefits Act 1982U.K.

44In section 22(3) of the M47Social Security and Housing Benefits Act 1982 (meaning of “continental shelf operations”) for the words from “the exploitation” onwards there shall be substituted the words “ any activities which, if paragraphs (a) and (d) of subsection (6) of section 23 of the Oil and Gas (Enterprise) Act 1982 (application of civil law to certain offshore activities) wre omitted, would nevertheless fall within subsection (2) of that section ”.

Section 37.

SCHEDULE 4U.K. REPEALS