Explanatory note

This Order grants an exemption from the requirement under section 5(1)(a) of the Gas Act 1986 to hold a licence when transporting gas (conveying gas through pipes to pipeline systems operated by gas transporters) in respect of a person who conveys gas from an onshore gas processing facility to a pipeline system operated by a gas transporter.

The exemption applies in respect of gas conveyed from an onshore gas processing facility, being a facility that carries out gas processing operations on gas extracted from or produced in landward areas only. Landward areas are defined by reference to the geographical area described by the co-ordinates set out in Schedule 1 to the Petroleum (Production) (Landward Areas) Regulations 1995 (S.I. 1995/1436), and in most cases are the areas on the landward side of the low water line along the coast of Great Britain.

The exemption only applies if the length of pipeline through which the gas is conveyed does not exceed 16.043 kilometres; this distance is measured from the first facility at which gas processing operations are carried out on that gas for the purpose of introduction into the gas grid. Preliminary operations which are not for this purpose are not considered to be gas processing operations for the purposes of the exemption and are therefore not taken into account for the purpose of this length limit.

The exemption does not apply if the gas is conveyed to any premises.