Regulation 14 Power to exercise rights in restricted interests

(1)

The Secretary of State may exercise the rights of a restricted person comprised in a restricted interest but except as provided by paragraph (3) or (4), the Secretary of State must not dispose of the interest.

(2)

Paragraph (3) applies to petroleum produced, before or during the management period, from the licensed area of a restricted licence.

(3)

Where this paragraph applies, the Secretary of State may dispose of the petroleum—

(a)

for valuable consideration; or

(b)

other than for valuable consideration where that disposal is undertaken—

(i)

for the purposes of safety or as use as a fuel;

(ii)

to test or maintain a petroleum facility; or

(iii)

in accordance with good oilfield practice.

(4)

The Secretary of State may dispose of any property which is comprised in a restricted interest where the property is—

(a)

regarded in accordance with good oilfield practice as waste; or

(b)

no longer required for, or capable of carrying out, the function for which it was used or designed to be used.