Regulation 3 When a temporary scheme may be applied

(1)

The Secretary of State may apply a temporary scheme to the hydrocarbons interests of a person (“P”) if P is a listed person and—

(a)

P holds a licence, solely or jointly with another person, and that licence was issued before P became a listed person (“a relevant licence”); and

(b)

the Secretary of State is satisfied that to apply a temporary scheme to any of the hydrocarbons interests of P is necessary—

(i)

to avoid or remediate environmental damage; or

(ii)

to prevent permanent destruction of the value of the relevant licence.

(2)

Regulation 4 applies where—

(a)

the Secretary of State is entitled to apply a temporary scheme to any of the hydrocarbons interests of P under paragraph (1); or

(b)

P is not a listed person but—

(i)

the Secretary of State is satisfied that P is likely to become a listed person within 60 days of giving a preliminary notice; and

(ii)

were P a listed person, the Secretary of State would be entitled to apply a temporary scheme to any of the hydrocarbons interests of P under paragraph (1).

(3)

For the purposes of paragraph (2)(b)(i), where—

(a)

P is a body corporate; and

(b)

the person who owns or controls P is a listed person,

the Secretary of State is entitled to be satisfied that P is likely to become a listed person unless the Secretary of State has evidence to the contrary.