Regulation 20 Temporary management transactions

(1)

The Secretary of State may pay out of a temporary management account any sum—

(a)

required to discharge (in whole or part) a liability of a restricted person under—

(i)

a restricted licence;

(ii)

a managed contract, including a liability described in regulation 15(5)^f1;

(iii)

a new contract, including a decommissioning contract; or

(iv)

regulation 10(1)^f2;

(b)

which a prudent licensee would from time to time set aside in accordance with good oilfield practice towards the licensee’s liability under Part 4 of the Petroleum Act 1998^f3 to decommission a restricted petroleum facility;

(c)

which is then paid into another temporary management account; or

(d)

required or permitted by law to be paid in respect of a restricted interest.

(2)

A payment which may be received by the Secretary of State—

(a)

in respect of a restricted interest; or

(b)

under a managed contract or a new contract,

must be paid into a temporary management account.

(3)

A sum described in paragraph (1)(b) must be paid into a decommissioning account.

(4)

In paragraph (1), reference to “any sum required to discharge (in whole or part) a liability” means such sum as the Secretary of State reasonably believes is required to discharge the liability.

(5)

Funds in a temporary management account are funds to which the restricted person is beneficially entitled but, except for temporary management transactions, are frozen funds.

Annotations

Footnotes

f1: Under regulation 15(5), the Secretary of State may discharge a liability of a restricted person under a managed contract where the liability arose before the commencement of the rights period.
f2: Regulation 10(1) provides for the restricted person to indemnify the Secretary of State in respect of any liability which the Secretary of State incurs in exercising management powers.
f3: Part 4 has been amended by sections 36, 72 to 74, 107 and 108 of the Energy Act 2008 (c. 32) and by Schedules 1, 5 and 6 to that Act.