Pipe-Lines Act 1962

Avoidance of Construction of superfluous Pipe-linesE+W+S

9 Provisions for securing that a pipe-line is so constructed as to reduce necessity for construction of others.E+W+S

(1)Where—

(a)application is made to the Minister for the grant of a pipe-line construction authorisation for the construction of a pipe-line to be designed for the conveyance of a particular kind of thing or of things of a particular class, and

(b)the Minister is satisfied that there is evidence of demand existing or likely to arise for the grant of such authorisations for the construction of further pipe-lines to be designed for the conveyance of that kind of thing or, as the case may be, things of that class, and

(c)the Minister is also satisfied that the routes to be taken by the further lines will severally be, as to the whole or any part thereof, the same or substantially the same as the route or any part of the route to be taken by the line to which the application relates,

he may, if he grants the application, grant it subject to the condition that the line to be constructed pursuant to the application or any length of that line specified in the authorisation shall be so constructed as to be capable of conveying, during such period as may be so specified, not less than such quantity as may be so specified of the kind of thing in question or, as the case may be, things of the class in question.

[F1(1A)Subsections (2), (3) and (5) of this section apply only to pipe-lines constructed pursuant to a pipe-line construction authorisation which are neither upstream petroleum pipe-lines nor gas pipe-lines, and references in those subsections to “pipe-line” and “line” shall be construed accordingly.]

(2)The Minister may at any time, by notice served on the owner of a pipe-line constructed pursuant to a pipe-line construction authorisation to which a condition is attached by virtue of [F2subsection (1)], impose such requirements as he thinks it necessary or expedient to impose for all or any of the following purposes, namely,—

(a)securing to persons other than the owner of the line the right to have conveyed by the line or, as the case may be, by any length of it specified in the authorisation by virtue of that subsection, the kind of thing specified in the authorisation or, as the case may be, things of the class so specified;

(b)regulating the charges to be made for the conveyance by the line or, as the case may be, by that length thereof, on behalf of persons other than the owner of the line of that kind of thing or, as the case may be, things of that class;

(c)securing that the exercise of a right secured by virtue of paragraph (a) of this subsection is not prevented or impeded;

but requirements imposed for the purpose specified in paragraph (a) of this subsection shall be so framed as, in the Minister’s opinion, to secure that compliance therewith will not prejudice the proper and efficient operation of the line for the purpose of the conveyance on behalf of the owner thereof, in the quantity required by him, of the kind of thing, or things of the class, which it is designed to convey.

(3)A notice served under the last foregoing subsection with reference to a pipe-line may authorise the owner thereof to recover, from persons to whom a right is secured by the notice by virtue of paragraph (a) of that subsection, payments of such amounts as may be determined in accordance with provisions in that behalf contained in the notice, being payments in consideration of that right’s being secured to them.

(4)Where a pipe-line constructed pursuant to a pipe-line construction authorisation to which a condition is attached by virtue of subsection (1) of this section is constructed without conformity to that condition, the works for the construction of the line shall be deemed, for the purposes of the foregoing provisions of this Act, to have been executed in contravention of subsection (1) of section one of this Act.

(5)If the owner of a pipe-line fails to comply with a requirement imposed by a notice served under subsection (2) of this section with reference to the line he shall be guilty of an offence and liable, on summary conviction, to a fine not exceeding [F3level 5 on the standard scale]; and, if the failure continues after his conviction, he shall be guilty of a further offence and liable, in respect thereof, to a fine not exceeding twenty-five pounds for each day on which the failure continues.

F4[(6)This section does not apply where the application for the grant of a pipe-line construction authorisation relates to the construction of a diversion.]

[F5(7)Where a gas pipe-line is proposed to be constructed pursuant to a pipe-line construction authorisation to which a condition is attached by virtue of subsection (1), any person other than the applicant for the pipe-line construction authorisation may make applications under section 10 and, if applicable, section 10C in respect of the proposed pipe-line, and those sections and section 10B shall have effect as if references to a pipe-line were references to the pipe-line as it would be once constructed in accordance with the condition, and as if references to the owner of the pipe-line were references to the proposed owner of it.

F5(8)Where an upstream petroleum pipe-line is proposed to be constructed pursuant to a pipe-line construction authorisation to which a condition is attached by virtue of subsection (1), any person other than the applicant for the pipe-line construction authorisation may make applications under section 10E in respect of the proposed pipe-line, and sections 10E and 10F shall have effect as if references to a pipe-line were references to the pipe-line as it would be once constructed in accordance with the condition, and as if references to the owner of the pipe-line were references to the proposed owner of it.]

[9AF6 Provisions for securing that an additional pipe-line is so constructed as to reduce necessity for construction of other pipe-lines—.E+W+S

(1)Where—

(a)application is made for the grant of planning permission for the construction of an additional pipe-line to be designed for the conveyance of a particular kind of thing or of things of a particular class, and

(b)the Secretary of State is satisfied that there is evidence of demand existing or likely to arise for the grant of planning permission or pipe-line construction authorisations for the construction of further pipe-lines to be designed for the conveyance of that kind of thing or, as the case may be, things of that class, and

(c)the Secretary of State is also satisfied that the routes to be taken by the further lines will severally be, as to the whole or any part thereof, the same or substantially the same as the route or any part of the route to be taken by the line to which the application relates,

he may, at any time before planning permission for the construction of the additional pipe-line is granted, by notice served on the person who made the application for planning permission, direct that the line to be constructed pursuant to the application or any length of that line specified in the notice shall be so constructed as to be capable of conveying, during such period as may be so specified, not less than such quantity as may be so specified of the kind of thing in question or, as the case may be, things of the class in question.

[F7(1A)Subsections (2), (3) and (5) apply only to additional pipe-lines which are neither upstream petroleum pipe-lines nor gas pipe-lines, and references in those subsections to “pipe-line” and “line” shall be construed accordingly.]]

(2)The Secretary of State may at any time, by notice served on the owner of an additional pipe-line in respect of which a notice under subsection (1) of this section was served, impose such requirements as he thinks it necessary or expedient to impose for all or any of the following purposes, namely,–

(a)securing to persons other than the owner of the line the right to have conveyed by the line or, as the case may be, by any length of it specified in the notice by virtue of that subsection, the kind of thing specified in the notice or, as the case may be, things of the class so specified;

(b)regulating the charges to be made for the conveyance by the line or, as the case may be, by that length thereof, on behalf of persons other than the owner of the line of that kind of thing or, as the case may be, things of that class;

(c)securing that the exercise of a right secured by virtue of paragraph (a) of this subsection is not prevented or impeded; but requirements imposed for the purpose specified in paragraph (a) of this subsection shall be so framed as, in the Secretary of State’s opinion, to secure that compliance therewith will not prejudice the proper and efficient operation of the line for the purpose of the conveyance on behalf of the owner thereof, in the quantity required by him, of the kind of thing, or things of the class, which it is designed to convey.

(3)A notice served under subsection (2) of this section with reference to an additional pipe-line may authorise the owner thereof to recover, from persons to whom a right is secured by the notice by virtue of paragraph (a) of that subsection, payments of such amounts as may be determined in accordance with provisions in that behalf contained in the notice, being payments in consideration of that right’s being secured to them.

(4)Where an additional pipe-line in respect of which a notice is served under subsection (1) of this section is constructed without conformity to that notice, the works for the construction of the line shall be deemed, for the purposes of the foregoing provisions of this Act, to have been executed in contravention of subsection (1) of section one of this Act.

(5)If the owner of a pipe-line fails to comply with a requirement imposed by a notice served under subsection (2) of this section with reference to the line he shall be guilty of an offence and liable, on summary conviction, to a fine not exceeding level 5 on the standard scale; and, if the failure continues after his conviction, he shall be guilty of a further offence and liable, in respect thereof, to a fine not exceeding twenty-five pounds for each day on which the failure continues.

(6)In this section “planning permission” means permission under Part III of the Town and Country Planning Act 1990 or under Part III of the Town and Country Planning (Scotland) Act 1997.

[F8(7)Where a gas pipe-line which is an additional pipe-line is proposed to be constructed, and the Secretary of State has served a notice in respect of the pipe-line under subsection (1) on the person who made the application for planning permission, any other person may make applications under section 10 and, if applicable, section 10C in respect of the proposed pipe-line, and those sections and section 10B shall have effect as if references to a pipe-line were references to the pipe-line as it would be once constructed in accordance with the condition, and as if references to the owner of the pipe-line were references to the proposed owner of it.

F8(8)Where an upstream petroleum pipe-line which is an additional pipe-line is proposed to be constructed, and the Secretary of State has served a notice in respect of the pipe-line under subsection (1) on the person who made the application for planning permission, any other person may make applications under section 10E in respect of the pipe-line; and sections 10E and 10F shall have effect as if references to a pipe-line were references to the pipe-line as it would be once constructed in accordance with the notice, and as if references to the owner of the pipe-line were references to the proposed owner of it.]

10 Provisions for securing that a pipe-line is so used as to reduce necessity for construction of others.E+W+S

(1)An application with respect to

[F9(a)a gas pipe-line; or

(b)any pipe-line other than a gas pipe-line which—

(i)is constructed pursuant to a pipe-line construction authorisation; and

(ii)is not an upstream petroleum pipe-line;

may, subject in the case of a gas pipe-line to which section 10C applies to the provisions of that section,] be made to the Minister by any person other than the owner of the line who seeks the right to have conveyed by the line on his behalf a particular kind of thing or things of a particular class, being, as the case may be, the kind of thing or things of the class which the line is designed to convey.

(2)Where an application with respect to a pipe-line is made under the foregoing subsection to the Minister he shall serve on the owner of the line and the applicant notice of the time (being some time not less than twenty-one days from the date of the service of the notice) at which the question of conferring on the applicant the right sought by him will be considered by the Minister, and the owner and the applicant shall be entitled to be heard when that question is so considered.

(3)If after taking the question aforesaid into consideration the Minister is satisfied that the line could, without prejudice to the proper and efficient operation thereof for the purpose of the conveyance on behalf of the owner thereof, in the quantity required by him, of the kind of thing, or things of the class, which it is designed to convey, be so operated as to permit of the conveyance thereby on behalf of the applicant of the kind of thing, or things of the class, the right to the conveyance of which is sought by the applicant, he shall declare that he is so satisfied.

(4)Where the Minister makes under the last foregoing subsection a declaration with respect to a pipe-line he may by notice served on the owner of the line impose such requirements as he thinks it necessary or expedient to impose for all or any of the following purposes, namely,—

(a)securing to the person whose application resulted in the making of the declaration the right to have conveyed by the line the kind of thing to which the application related or, as the case may be, things of the class to which it related;

(b)regulating the charges to be made for the conveyance by the line on behalf of that person of that kind of thing or, as the case may be, things of that class;

(c)securing that the exercise of a right secured by virtue of paragraph (a) of this subsection is not prevented or impeded;

but requirements imposed for the purpose specified in paragraph (a) of this subsection shall be so framed as, in the Minister’s opinion, to secure that compliance therewith will not prejudice the proper and efficient operation of the line for the purpose mentioned in subsection (3) of this section.

(5)A notice served under the last foregoing subsection with reference to a pipe-line may authorise the owner thereof to recover, from the person to whom a right is secured by the notice by virtue of paragraph (a) of that subsection, payments of such amounts as may be determined in accordance with provisions in that behalf contained in the notice, being payments in consideration of the right’s being secured to him.

(6)If the owner of a pipe-line fails to comply with a requirement imposed by a notice served under subsection (4) of this section with reference to the line he shall be guilty of an offence and liable, on summary conviction, to a fine not exceeding [F10level 5 on the standard scale]; and, if the failure continues after his conviction, he shall be guilty of a further offence and liable, in respect thereof, to a fine not exceeding twenty-five pounds for each day on which the failure continues.

F11[(7)An additional pipe-line [F12other than a gas pipe-line]]shall be treated as a pipe-line constructed pursuant to a pipe-line construction authorisation for the purposes of this section.

(8)Any diversion to a pipe-line constructed pursuant to a pipe-line construction authorisation (or treated as so constructed) shall be treated as part of that pipe-line for the purposes of this section.

[10AF13 Diversions of pipe-lines subject to requirements under section 9 or 10E+W+S

(1)A length of pipe-line–

(a)in respect of which any condition has been imposed under section 9(1) or a notice has been served under section 9A(1); and

(b)which is to be diverted,

shall continue for the purposes of and after the diversion to be subject to any condition or any direction contained in any such notice.

(2)A pipe-line in respect of which any requirements have been imposed by virtue of a [F14notice served under section 9(2), 9A(2) or 10(4) or 10E(9)]] which is subsequently diverted, shall continue to be subject to such requirements after the diversion.

(3)This section applies to a diversion which exceeds 16.093 kilometres as well as to a diversion which does not exceed that length.

[F1510B Application of section 10C to certain gas pipe-lines.E+W+S

(1)Section 10C applies to gas pipe-lines other than exempt interconnectors.

(2)An owner of an interconnector may apply in writing to the Secretary of State for an exemption for the interconnector.

(3)An exemption shall be given in writing and may be given—

(a)so as to have effect for an indefinite period or for a period specified in, or determined under, the exemption;

(b)unconditionally or subject to such conditions as the Secretary of State considers appropriate.

(4)An exemption may be revoked in accordance with its provisions and, in any event, may be revoked by giving a notice of revocation to the owner of the interconnector concerned not less than four months before the coming into force of the revocation.

(5)The Secretary of State shall give an exemption with respect to an interconnector where he is satisfied that the requirements of section 10C(1), (3) and (6) are already met with respect to the interconnector concerned by existing market arrangements which promote competition.]

F1610C Additional provisions relating to certain gas pipe-lines.E+W+S

(1)The owner of a gas pipe-line to which this section applies (a “relevant gas pipe-line”)—

(a)shall publish at least once in every year the main commercial conditions relating to the grant to another person of a right to have gas conveyed in the pipe-line on that person’s behalf; and

(b)shall publish any changes to the published conditions as soon as they become effective.

(2)In subsection (1) “year” means any year ending with 9 August.

(3)The owner of a relevant gas pipe-line shall ensure that the conditions which he is required to publish under subsection (1) do not discriminate against any applicants or descriptions of applicants, or any potential applicants or descriptions of potential applicants, for a right to have gas conveyed in the pipe-line.

(4)Any person who seeks a right to have gas conveyed on his behalf in a relevant gas pipe-line (“the applicant”) shall, before making an application to the Secretary of State under section 10, apply to the owner of the pipe-line by giving him notice of what is being sought.

(5)Such a notice shall, in particular, specify—

(a)the kind of gas to be conveyed (which must be of the kind the pipe-line is designed to convey); and

(b)the quantities of gas to be conveyed.

(6)Where an applicant gives notice under subsection (4), he and the owner of the pipe-line shall negotiate in good faith and endeavour to reach agreement on the application.

(7)If the owner and the applicant do not reach any such agreement, the applicant may make an application to the Secretary of State under section 10 with respect to the pipe-line.

(8)The Secretary of State shall not entertain such an application under section 10 unless he is satisfied that the parties have had a reasonable time in which to fulfil their duties under subsection (6).

(9)For the purpose of considering an application under section 10 with respect to a relevant gas pipe-line, the Secretary of State may by notice require the owner or the applicant to provide him with such financial information relating to the owner’s or applicant’s activities with respect to relevant gas pipe-lines as he may specify or describe in the notice.

(10)The Secretary of State shall not disclose to any person information obtained under subsection (9) without the consent of the person by or on behalf of whom it was provided, unless he is required to do so by virtue of any obligation imposed on him by or under any enactment.

(11)In this section “main commercial conditions” means—

(a)such information as would enable a potential applicant for a right to have gas conveyed in a relevant gas pipe-line to make a reasonable assessment of the cost of, or the method of calculating the cost of, acquiring that right;

(b)the other significant terms on which such a right would be granted; and

(c)such other information as the Secretary of State may from time to time specify by notice.

F1710D Enforcement of certain duties in section 10C.E+W+S

(1)The duty in section 10C(6) shall be a duty owed to any person who may be affected by a failure to comply with it.

(2)Where a duty is owned by virtue of subsection (1) to any person, any breach of the duty which causes that person to sustain loss or damage shall be actionable at the suit or instance of that person.

(3)In any proceedings brought against a person in pursuance of subsection (2), it shall be a defence for him to prove that he took all reasonable steps and exercised all due diligence to avoid contravening the duty.

(4)Compliance with the duties in section 10C(1) and (3) shall be enforceable by civil proceedings by the Secretary of State for an injunction or interdict or other appropriate relief or remedy.

F1810E Provisions for securing that upstream petroleum pipe-lines are so used as to reduce necessity for construction of others.E+W+S

(1)This section applies to upstream petroleum pipe-lines.

(2)Any person who seeks a right to have things conveyed by an upstream petroleum pipe-line of which he is not the owner (“the applicant”) shall, before making an application to the Secretary of State under subsection (5), apply to the owner of the pipe-line for the right.

(3)An application under subsection (2) shall be made by giving notice to the owner specifying what is being sought.

(4)Such a notice shall, in particular, specify—

(a)the kind of things to be conveyed (which must be of a kind the pipe-line is designed to convey); and

(b)the quantities to be conveyed.

(5)If the owner and the applicant do not reach agreement on the application, the applicant may apply to the Secretary of State for a notice under subsection (9) securing to the applicant the right to have conveyed by the pipe-line in respect of which he has made an application to the owner under subsection (2) the quantities specified in the notice under subsection (3) of things of a kind so specified.

(6)The Secretary of State shall not entertain an application under subsection (5) unless he is satisfied that the parties have had a reasonable time in which to reach agreement between themselves on the application under subsection (2).

(7)Where a person applies to the Secretary of State under subsection (5) and the Secretary of State is satisfied as mentioned in subsection (6), the Secretary of State shall serve on the owner of the pipe-line and the applicant notice of the time (being some time not less than twenty-one days from the date of the service of the notice) at which the question of conferring on the applicant the right sought by him will be considered by the Secretary of State, and the owner and the applicant shall be entitled to be heard when that question is so considered.

(8)When considering the application, the Secretary of State shall (so far as relevant) take into account—

(a)capacity which is or can reasonably be made available in the pipe-line in question;

(b)any incompatibilities of technical specification which cannot reasonably be overcome;

(c)difficulties which cannot reasonably be overcome and which could prejudice the efficient, current and planned future production of petroleum;

(d)the owner’s reasonable needs for the transport and processing of petroleum;

(e)the interests of all users and operators of the pipe-line;

(f)the need to maintain security and regularity of supplies of petroleum; and

(g)the number of parties involved in the dispute.

(9)Where the Secretary of State is satisfied that, if he served a notice under this subsection, the pipe-line in question could be operated in accordance with the notice without prejudicing its efficient operation for the purpose of conveying, on behalf of its owner, the quantities of things which the owner requires or may reasonably be expected to require, the Secretary of State may serve such a notice on the owner and the applicant.

(10)A notice under subsection (9) may contain such provisions as the Secretary of State considers appropriate for any of the following purposes—

(a)to secure to the applicant the right to have conveyed by the pipe-line the quantities specified in the notice under subsection (3) of the things of a kind so specified;

(b)to secure that the exercise of the right is not prevented or impeded;

(c)to regulate the charges which may be made for the conveyance of things by virtue of the right; and

(d)to secure to the applicant the right to have a pipe-line of his connected to the pipe-line by the applicant or owner.

(11)A notice under subsection (9) may also authorise the owner to recover from the applicant payments by way of consideration for any right mentioned in subsection (10)(a) or (d) of amounts specified in the notice or determined in accordance with the notice.

F1910F Section 10E: supplemental.E+W+S

(1)For the purpose of considering an application under section 10E(5), the Secretary of State may by notice require the owner or the applicant to provide him with such information relevant to the application as may be specified or described in the notice.

(2)The information mentioned in subsection (1) may, in particular, include financial information relevant to the owner’s or the applicant’s activities with respect to petroleum production projects and upstream petroleum pipe-lines.

(3)The Secretary of State shall not disclose to any person any information obtained under subsection (1) without the consent of the person by or on behalf of whom it was provided, unless he is required to do so by virtue of any obligation imposed on him by or under any enactment.

(4)If the owner of a pipe-line fails to comply with a requirement imposed by a notice served under section 10E(9) with reference to the pipe-line he shall be guilty of an offence and liable, on summary conviction, to a fine not exceeding level 5 on the standard scale; and, if the failure continues after his conviction, he shall be guilty of a further offence and liable, in respect thereof, to a fine not exceeding twenty-five pounds for each day on which the failure continues.