Article 3 Cessation of DesignationI1

Northern Ireland

(1)

So much of this Order as designates any particular pipeline for the purposes of Article 60 of the Energy Order shall cease to have effect where –

(a)

a licence granted under Article 8(1)(a) of the Gas Order authorising a person (“a relevant licensee”) to convey gas through that pipeline is revoked or assigned; or

(b)

there is an insolvency event in relation to the relevant licensee.

(2)

For the purpose of paragraph (1)(b) an “insolvency event” occurs in relation to a relevant licensee if it:

(a)

is deemed unable to pay its debts (within the meaning of Article 103(1) or (2) of the Insolvency Order or section 123(1) or (2) of the Insolvency Act) or if any voluntary arrangement is proposed in relation to it under Article 14 of the Insolvency Order or section 1 of the Insolvency Act;

(b)

has a receiver (which expression shall include an administrative receiver within the meaning of Article 5(1) of the Insolvency Order) of the whole or any material part of its assets or undertaking appointed;

(c)

has an administration order under Article 21 of the Insolvency Order or Schedule B1 to the Insolvency Act^f1 made in relation to it;

(d)

has any resolution for winding up passed in relation to it; or

(e)

becomes subject to an order for winding up by a court of competent jurisdiction.

(3)

In paragraph (2)(a) the reference to Article 103(1) of the Insolvency Order and to section 123(1) of the Insolvency Act shall be construed as, in each case, a reference to that provision as if in sub-paragraph (a) for “£750” there was substituted “£250,000”.

(4)

For the purposes of paragraph (2)(a), a licensee shall not be deemed to be unable to pay its debts if any such demand as is mentioned in Article 103(1)(a) of the Insolvency Order, or section 123(1)(a) of the Insolvency Act is being contested in good faith by that licensee with recourse to all appropriate measures and procedures.

Annotations

Commencement

I1: Art. 3 in operation at 1.10.2004, see art. 1(1)

Footnotes

f1: Schedule B1 was substituted for sections 8 to 27 of the Insolvency Act by section 248(1) of the Enterprise Act 2002