SCHEDULES

Sections 2 and 10.

SCHEDULE 1Provisions as to Transfers of Property, Rights and Liabilities

Allocation of property, rights and liabilities

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.

(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 properly, rights and liabilities transferred to the transferee or retained by the transferor and as will—

(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 employment

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.

(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 title

4Where 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 [1925 c. 20.] 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 rights

5Where 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 certificate

6In 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 land

7If 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 or any other dealing 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 documents

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.

(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.

9Except 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.

10Without 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.

11The 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 provisions

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.

(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.

Sections 19 and 20.

SCHEDULE 2Petroleum Production Licences : Modification of Model Clauses

Part 11 of Schedule 2 to the 1975 Act

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 ".

(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 " 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 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—

“Cost of delivery and treatment of petroleum.

11A(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 forth with by the Minister to the Licensee ; and

(b)if it is smaller the difference shall be paid forth with 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 forth with 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 Act

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 ".

(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" on wards 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—

“Cost of delivery and treatment of petroleum.

11A(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 forth with 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 forth with by the Minister to the Licensee ; and

(b)if it is smaller the difference shall be paid forth with 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 Regulations

3(1)In paragraph (6) of clause 10 of the model clauses set out in Schedule 4 to the [S.I. 1976/1129.] Petroleum (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 ".

(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 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 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 Regulations

4(1)In paragraph (6) of clause 10 of the model clauses set out in Schedule 5 to the [S.I. 1976/1129.] Petroleum (Production) Regulations 1976 as originally made or as amended by the [S.I. 1978/929.] Petroleum (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 ".

(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" on wards 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 Regulations

5(1)In paragraph (4) of clause 10 of the model clauses set out in Schedule 5 to the [S.I. 1976/1129.] Petroleum (Production) Regulations 1976 as amended by the [S.I. 1978/929.] Petroleum (Production) (Amendment) Regulations 1978 and the [S.I. 1980/721.] Petroleum (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 ".

(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 3Minor and Consequential Amendments

The Continental Shelf Act 1964

1At the end of section 1(7) of the 1964 Act (designated areas) there shall be inserted the words " ; and the power to make Orders under this subsection shall include power to revoke Orders for the purpose of consolidating them. "

2In 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 ".

3In 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 applied by or under this Act ".

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

“11AInterpretation.

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

The General Rate Act 1967

5(1)In subsection (3) of section 33 of the [1967 c. 9.] General 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—

“(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 [1972 c. 60.] Gas Act 1972 ".

6After that section there shall be inserted the following section—

“33AOther suppliers of gas.

(1)The Secretary of State may by order provide that, in such cases and subject to such exceptions and 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 29 A 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 1971

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 ".

8In 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 ".

9In 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 ".

10In 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)—

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

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

(b)after the definition of " designated area" there shall be inserted the following definition—

• “' foreign sector of the continental shelf' has the meaning 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 carrying on 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.”

The Gas Act 1972

12In section 7(2) of the 1972 Act (general powers of Secretary of State to give directions to Gas Corporation)—

(a)the words "to dispose of any part of their undertaking or of any assets held by them" and the words "to dispose of any part of its undertaking or of any assets held by it" shall be omitted ; and

(b)for the words from " the Corporation shall" onwards there shall be substituted the words " it shall be the duty of the Corporation (notwithstanding any duty imposed on them by or under any enactment) to give effect to any such direction ".

13In section 24 of that Act (duty of Gas Corporation to avoid undue preference) the following subsection shall be inserted after subsection (2)—

“(3)In this section ' consumer' means any person who—

(a)is the owner or occupier of premises situated within 25 yards from any distribution main of the Corporation ; and

(b)is there supplied with gas by the Corporation at a rate not exceeding 25,000 therms a year.”

14(1)After section 31 of that Act there shall be inserted the following section—

“Supplementary

31ARelief to suppliers in emergency conditions.

(1)Without prejudice to any other provision of this Act or the provisions of any regulations thereunder, in any proceedings against any person supplying gas through pipes for or arising out of a failure by him to comply with any duty with respect to the supply of gas imposed on him by or under any enactment (including any duty with respect to pressure of supply), it shall be a defence for that person to prove that circumstances existed by reason of which compliance with the duty would or might have involved danger to the public, and that he took all such steps as it was reasonable for him to take both to prevent the circumstances from occurring and to prevent them from having that effect.”

(2)Section 28 of that Act (which is superseded by this paragraph) shall be omitted.

15Section 30(8) of that Act (provisions as to testing and stamping of meters not to apply in relation to the supply of gas under certain agreements made by the Gas Corporation) shall be omitted.

16In section 45(4) of that Act (provisions as to regulations and orders) after the words " an order appointing a day " there shall be inserted the words " , an order under section 29(3) above ".

17In section 48(1) of that Act (interpretation)—

(a)after the definition of " the Corporation " there shall be inserted the following definition—

• “' distribution main ', in relation to the Corporation, means any main of the Corporation through which the Corporation are for the time being distributing gas and which is not used only for the purpose of giving a separate supply of gas for industrial purposes, or of conveying gas in bulk ;”; and

(b)after the definition of " functions " there shall be inserted the following definition—

• “' gas' means—

  (a)

  any substance which consists wholly or mainly of—

  (i)

  methane, ethane, propane, butane, hydrogen or carbon monoxide ;

  (ii)

  a mixture of two or more of those gases ; or

  (iii)

  a combustible mixture of one or more of those gases and air ; and

  (b)

  any other substance which is gaseous at a temperature of 15°C and a pressure of 1013.25 milli bars and is specified in an order made by the Secretary of State,

  except that, in Part III of this Act, that expression does not include any substance which is not in a gaseous state.”

18At the end of paragraph 1 of Schedule 2 to that Act (powers of acquisition) there shall be added the words " (including any enactment passed or made after the passing of this Act) ".

19In paragraph 2(1) of Schedule 4 to that Act (obligation to supply gas) for the words "any main of the Corporation through which the Corporation are for the time being distributing gas " there shall be substituted the words " any distribution main of the Corporation " , and the proviso shall be omitted.

The Local Government Act 1974

20In Schedule 3 to the [1974 c. 7.] Local Government Act 1974 (hereditaments to which section 19(1) of that Act applies) after paragraph 3 there shall be inserted the following paragraphs—

“3A(1)Any hereditament which a private supplier is to be treated as occupying in a rating area by virtue of section 33(3) of the principal Act as applied by order under section 33A of that Act.

(2)In this paragraph and paragraph 3B below—

• ' gas' has the same meaning as in Part III of the [1972 c. 60.] 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.

3BAny hereditament occupied for or in connection with the conveyance of gas through pipes other than one which—

(a)is occupied by the British Gas Corporation ; or

(b)is occupied by a private supplier for or in connection with the supply of gas through pipes to consumers' premises.”

The Social Security Act 1975

21In section 132(2) of the [1975 c. 14.] Social 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 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) were omitted, would nevertheless fall within subsection (2) of that section. "

The Oil Taxation Act 1975

22In paragraph 2A(4) of Schedule 3 to the [1975 c. 22.] Oil 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 [1972 c. 60.] 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.

The Local Government (Scotland) Act 1975

23After paragraph 3 of Schedule 1 to the [1975 c. 30.] Local Government (Scotland) Act 1975 (certain lands and heritages of the Gas Corporation to be valued by formula for rating) there shall be inserted the following paragraphs—

“3A(1)Any lands and heritages occupied by a private supplier for or in connection with the supply of gas through pipes to consumers' premises, other than—

(a)lands and heritages occupied and used as a dwelling house ;

(b)a shop, room or other place occupied and used by a private supplier wholly or mainly for the sale, display or demonstration of apparatus or accessories for use by consumers of gas:

Provided that in determining whether any such shop, room or other place is wholly or mainly occupied and used as aforesaid, use for the receipt of payments for gas consumed shall be disregarded ;

(c)lands and heritages held by a private supplier under a lease for a period not exceeding 21 years ;

(d)premises which are—

(i)occupied by a private supplier ;

(ii)used wholly or mainly as an office or for office purposes (within the meaning of paragraph 2 of this Schedule); and

(iii)situated on land which, in respect of its nature and situation, is comparable rather with land in general than with land used for the purpose of supplying gas through pipes ; or

(e)lands and heritages occupied and used by a private supplier wholly or mainly for the manufacture of plant or gas fittings.

(2)In this paragraph and paragraph 3B below—

• ' 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.

3BAny lands and heritages occupied for or in connection with the conveyance of gas through pipes other than lands and heritages which—

(a)are occupied by the British Gas Corporation ;

(b)are occupied by a private supplier for or in connection with the supply of gas through pipes to consumers' premises; or

(c)are occupied and used as a dwelling house.”

The Sex Discrimination Act 1975

24In section 10(5) of the [1975 c. 65.] Sex Discrimination Act 1975 (employment at establishment in Great Britain)—

(a)for the words from " exploration " to " natural resources " there shall be substituted the words " any activity falling within section 23(2) of the Oil and Gas (Enterprise) Act 1982 "; and

(b)after " 1964 " there shall be inserted the words " or specified under section 22(5) of the Oil and Gas (Enterprise) Act 1982 ".

The Employment Protection Act 1975

25For subsection (2) of section 127 of the [1975 c. 71.] Employment Protection Act 1975 (power to extend employment legislation) there shall be substituted the following subsection—

“(2)This section applies to employment for the purposes of—

(a)any activities in the territorial waters of the United Kingdom ; or

(b)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) were omitted, would nevertheless fall within subsection (2) of that section.”

The Petroleum and Submarine Pipe-lines Act 1975

26In section 1 of the 1975 Act (constitution of the Oil Corporation)—

(a)in subsection (2) (number of members) for the words "not less than eight and not more than twenty " there shall be substituted the words " not less than five and not more than twelve "; and

(b)subsection (3)(c) (two members to be civil servants) shall be omitted.

27In section 2 of that Act (general powers of the Oil Corporation)—

(a)in subsection (1) for paragraph (e) there shall be substituted the following paragraph—

“(e)without prejudice to the generality of the preceding paragraphs, to enter into participation agreements (within the meaning of the [1978 c. 1.] Participation Agreements Act 1978) and to do anything required for the purpose of giving effect to such arrangements, including agreements entered into by persons other than the Corporation ;”; and

(b)in subsection (4)(d) the words " or lend " shall be omitted and for the word " guarantee " there shall be substituted the words " give any surety or guarantee for ".

28In section 3 of that Act (general duties of the Oil Corporation) subsection (3) (duty to tender advice to the Secretary of State) shall be omitted.

29At the beginning of subsection (2) of section 37 of that Act (inspectors) there shall be inserted the words " Subject to subsection (3) of this section " and after that subsection there shall be inserted the following subsection—

“(3)The powers conferred on an inspector by paragraph (a) or (b) of the preceding subsection shall not be exercisable as respects any refinery or land unless not less than 7 days' notice has been given to a person having control of that refinery or land.”

30In section 44 of that Act (extension of the 1971 Act) subsections (1) to (4) shall be omitted.

31In section 45(3) of that Act (exclusion of Dumping at Sea Act 1974) the words " or any such other installation as is mentioned in section 44(1) of this Act" shall be omitted.

32In section 46 of the 1975 Act (orders and regulations), in subsections (1) and (2), after the words "section 6(3)" there shall be inserted the words " or (10) ".

33In paragraph 14 of Schedule 1 to that Act (constitution etc. of the Oil Corporation) for the words from " appointed " onwards there shall be substituted the words " who is employed in the civil service of the State ".

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

34In section 9 of the [1976 c. 14.] Fatal 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 [1964 c. 29.] Continental Shelf Act 1964 " there shall be substituted the words " subsection (1) of that section ".

The Fair Employment (Northern Ireland) Act 1976

35In section 49(3) of the [1976 c. 25.] Fair Employment (Northern Ireland) Act 1976 (employment at establishment in Northern Ireland)—

(a)for the words from " the exploration " to " natural resources " there shall be substituted the words " any activity falling within section 23(2) of the Oil and Gas (Enterprise) Act 1982 "; and

(b)after " 1964 " there shall be inserted the words " or specified under section 22(5) of the Oil and Gas (Enterprise) Act 1982 ".

The Race Relations Act 1976

36In section 8(5) (employment at establishment in Great Britain) and section 9(3) (exception for seamen recruited abroad) of the [1976 c. 74.] Race Relations Act 1976—

(a)for the words from " exploration " to " natural resources " there shall be substituted the words " any activity falling within section 23(2) of the Oil and Gas (Enterprise) Act 1982 "; and

(b)after " 1964 " there shall be inserted the words " or specified under section 22(5) of the Oil and Gas (Enterprise) Act 1982 ".

The Energy Act 1976

37(1)For sections 9 to 11 of the [1976 c. 76.] Energy Act 1976 (which impose restrictions on the use and liquefaction of offshore natural gas) there shall be substituted the following section—

“9Liquefaction 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 except such small quantities of liquid methane or ethane as may be produced in the course of providing a supply with consent under section 29 of the [1972 c. 60.] Gas Act 1972 and in compliance with any conditions subject to which that consent was given, or providing a supply for which such 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 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 specified period or definitely.

(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 is covered 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 [1934 c. 36.] Petroleum (Production) Act 1934, as applied by section 1(3) of the [1964 c. 29.] 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 Sex Discrimination (Northern Ireland) Order 1976

38In section 13(5) of the [S.I. 1976/1042 (N.I. 15).] Sex Discrimination (Northern Ireland) Order 1976 (employment at establishment in Northern Ireland)—

(a)for the words from " exploration " to " natural resources " there shall be substituted the words " any activity falling within section 23(2) of the Oil and Gas (Enterprise) Act 1982 "; and

(b)after " 1964 " there shall be inserted the words " or specified under section 22(5) of the Oil and Gas (Enterprise) Act 1982 ".

The Patents Act 1977

39In section 132(4) of the [1977 c. 37.] Patents 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 1978

40(1)For subsection (2) of section 137 of the [1978 c. 44.] Employment Protection (Consolidation) Act 1978 (extension of employment protection legislation) there shall be substituted the following subsection—

“(2)This section applies to employment for the purposes of—

(a)any activities in the territorial waters of the United Kingdom ; or

(b)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) were omitted, would nevertheless fall within subsection (2) of that section.”

(2)Subsection (5) of that section shall be omitted.

The Wages Councils Act 1979

41(1)For subsection (2) of section 27 of the [1979 c. 12.] Wages Councils Act 1979 (extension of Act) there shall be substituted the following subsection—

“(2)This section applies to employment for the purposes of—

(a)any activities in the territorial waters of the United Kingdom ; or

(b)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) were omitted, would nevertheless fall within subsection (2) of that section”.

(2)Subsection (5) of that section shall be omitted.

The Civil Jurisdiction and Judgments Act 1982

42In paragraph 9 of Schedule 5 to the Civil Jurisdiction and Judgments Act 1982 (proceedings excluded from Schedule 4 to that Act) for the words " section 3 of the [1964 c. 29.] Continental Shelf Act 1964 " there shall be substituted the words " section 23 of the Oil and Gas (Enterprise) Act 1982 ".

43In 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 1982

44In section 22(3) of the [1982 c. 00.] Social 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) were omitted, would nevertheless fall within subsection (2) of that section ".

Section 37.

SCHEDULE 4Repeals