Explanatory note

These Regulations introduce charges for or in connection with the carrying out by the Secretary of State of the Secretary of State’s functions under Part 4 of the Petroleum Act 1998 (c. 17) (“the 1998 Act”).

Part 4 of the 1998 Act provides for the abandonment of offshore installations and submarine pipelines. The Secretary of State may by written notice under section 29 of the 1998 Act (a “section 29 notice”) require a person to submit a programme setting out the measures proposed to be taken in connection with the abandonment of an offshore installation or submarine pipeline (an “abandonment programme”).

Regulation 2 includes a definition of an “abandonment programme function”, as a function relating to an offshore installation, or a submarine pipeline that is not a carbon dioxide submarine pipeline.

Regulation 3 determines the “commencement of work date”, being the date from which the carrying out of an abandonment programme function becomes chargeable under these Regulations.

Regulation 4 provides for abandonment programme charges to refer to a charging period set out in a notice that the Secretary of State must serve on a section 29 notice holder (as defined in regulation 2(2)) in order to recover charges. A charging period is defined in regulation 2(2) and is quarterly. The Secretary of State is not required to serve a notice for a charging period during which no charges are incurred.

Regulation 5 sets out that the charge is to be paid by a section 29 notice holder within the 30 day period following the service of a notice under regulation 4(1). In line with Part 4 of the 1998 Act, there is joint and several liability for all persons served with a section 29 notice.

Regulation 6 sets out the methodology for calculating the charge. It is an hourly rate for each official multiplied by the time spent by that official on the abandonment programme during the charging period. The charges also include expenses paid by the Secretary of State for work commissioned in relation to abandonment programme functions.

Regulation 7 makes provision for notices served under the Regulations. It enables the Secretary of State to serve a single notice requiring payment of abandonment charges, that will be effective against all persons served with a section 29 notice in relation to a specific offshore installation or submarine pipeline.

There are existing fees payable when an abandonment programme is submitted for approval and when a revision is requested. These fees are set out in the Offshore (Oil and Gas) Installation and Pipeline Abandonment Fees Regulations 2012 (S.I. 2012/949) (“the 2012 Regulations”). The 2012 Regulations are saved by the Energy Act 2023 (Commencement No. 5, Savings Provisions) Regulations 2026 (S.I. 2026/846 (C. 72)) (“the 2026 Commencement Regulations”) for certain transitional purposes. Regulation 8 is intended to make clear that the Secretary of State cannot recover through charges the costs of carrying out any work in respect of which a fee remains payable under section 29 or 34 of the 1998 Act in consequence of Regulation 3 of the 2026 Commencement Regulations.

The enabling powers for the 2012 Regulations are repealed by section 299(3) to (7) of the Energy Act 2023 which comes into force on 30th September 2026 pursuant to the 2026 Commencement Regulations, except to the extent they are saved for transitional purposes by those 2026 Commencement Regulations

Regulation 9 revokes the 2012 Regulations, except where they apply to the transitional situations in regulation 8.

A full impact assessment has not been produced for this instrument as no, or no significant, impact on the private, voluntary sector or community bodies is foreseen.