Energy Act 2008

Licensing

18Licences

(1)The licensing authority may grant a licence to a person in respect of one or more activities within section 17(2).

(2)The licensing authority is—

(a)in the case of a licence in respect of activities within section 17(2)(a) to (c) and a controlled place which is not in, under or over the territorial sea adjacent to Scotland, the Secretary of State,

(b)in the case of a licence in respect of such activities and a controlled place which is in, under or over that territorial sea, the Scottish Ministers,

(c)in the case of a licence in respect of such activities and a controlled place only part of which is in, under or over that territorial sea, either the Secretary of State or the Scottish Ministers, and

(d)in the case of a licence in respect of activities within section 17(2)(d), whichever of the Secretary of State or the Scottish Ministers licenses the activities for the purposes of which the installation is established or maintained;

and in this Chapter references to the licensing authority in relation to a licence falling within paragraph (c) are references to the person who grants the licence or, if the licence has not yet been granted, to whom the application for the licence was made.

(3)The controlled place in respect of which a licence is granted may be determined by reference to the provisions of a Crown lease which has been or may be granted.

(4)For this purpose a “Crown lease” means a lease of property forming part of the Crown Estate, or an authorisation to exercise rights forming part of that Estate (whether by virtue of section 1 or otherwise).

19Requirements relating to grant of licences

(1)Each licensing authority may by regulations make provision about the circumstances in which it may grant licences, including—

(a)provision about the requirements to be met by or in relation to an applicant, and

(b)provision about any other requirements which must be met for a licence to be granted.

(2)Regulations under subsection (1)(a) may, in particular—

(a)prescribe the persons, or classes of persons, by whom an application for a licence may be made;

(b)prescribe the manner in which an application must be made;

(c)prescribe the information which an application must contain and any documents which must accompany it;

(d)require an application to be accompanied by a fee of an amount prescribed by, or determined in accordance with, the regulations;

(e)require an applicant, before a licence is granted, to make arrangements (whether by way of trust or otherwise) to provide financial security in respect of the applicant’s future obligations relating to the activities under the licence (whether those obligations will or may arise under the licence or otherwise).

20Terms and conditions

(1)A licence may be granted on such terms and subject to such conditions as the licensing authority considers appropriate, subject to regulations under section 21.

(2)Subject to such regulations, a licence may, in particular, include provision of a kind mentioned in subsections (3) to (7).

(3)A licence may include—

(a)provision about the circumstances in which financial security (which may be provided by way of a trust or other arrangements) may be required in respect of the obligations mentioned in section 19(2)(e) (in addition to any security required by virtue of that section), and the form of any such security;

(b)provision about the circumstances in which financial security may be released (in whole or in part);

(c)provision enabling the licensing authority to review the licence in specified circumstances or at specified intervals;

(d)provision enabling the licensing authority, after consulting the licence holder, to modify the licence in specified circumstances (with or without the consent of the licence holder);

(e)provision preventing or enabling the licensing authority to prevent a licence holder, in specified circumstances, from carrying on an activity in respect of which the licence was granted;

(f)provision about closure of a carbon storage facility;

(g)provision about obligations of a licence holder between closure of a carbon storage facility and termination of the licence;

(h)provision about termination of the licence (which may include provision about financial arrangements).

(4)The provisions of a licence may be expressed by reference to provision made in a Crown lease and, in particular, may provide—

(a)for the commencement of the licence to be conditional upon the commencement of a Crown lease which has been or may be granted in respect of the controlled place to which the licence relates or any part of that place;

(b)for the period of the licence to be determined by reference to the period of such a Crown lease.

(5)A licence may authorise, in such circumstances and subject to such conditions as are specified, the transfer of the licence to another person (or the inclusion of another person as a joint licence holder).

(6)The provisions of a licence may include—

(a)provision requiring the licence holder to obtain the prior written consent of the licensing authority or another person for specified acts or omissions;

(b)provision providing that any such consent may be given subject to conditions.

(7)The conditions imposed on a consent by virtue of subsection (6)(b) may include conditions requiring, or otherwise providing for, the modification of the licence in such manner as the licensing authority considers appropriate.

(8)In this section—

• “carbon storage facility” means a controlled place, or part of a controlled place, in which carbon dioxide has been stored pursuant to a licence;

• “closure”, in relation to a carbon storage facility, means the point at which carbon dioxide has ceased to be added to the facility and the licence holder intends, or the licensing authority directs in accordance with the licence, that the cessation should be permanent;

• “Crown lease” has the same meaning as in section 18;

• “specified”, in relation to a licence, means specified in, or determined in accordance with, the licence.

21Content of licences: regulations

(1)Each licensing authority may make regulations about the terms and conditions of licences granted by it.

(2)Regulations under subsection (1) may specify that a licence must contain specified provisions or provisions of a specified description.