Regulation 10 Amendments to the Oil and Gas Authority (Fees) Regulations 2016

after the definition of “carbon dioxide storage proposal” insert—

• ““category 1 pipeline works authorisation variation” means an application to vary an existing pipeline works authorisation where the variation relates to the installation of a new pipeline that is greater than 500 metres in length and situated entirely or partially outside a safety zone;

• “category 2 pipeline works authorisation variation” means an application to vary an existing pipeline works authorisation where the variation relates to—

  1. (i)

     the installation of a new pipeline that is 500 metres or less in length or entirely within a safety zone; or

  2. (ii)

     the partial or full removal from the seabed, or the taking out of use, of an existing pipeline prior to the OGA confirming that it has no objection to the permanent cessation of production from the relevant petroleum field or part of a petroleum field;”;

in the definition of “development and production programme”, after “programme” insert “or proposal”;

after the definition of “development plan” insert—

• ““drill stem test” means any well test that is not an extended well test;

• “extended well test” means any well test which—

  1. (a)

     has a cumulative duration of fluid production of 96 hours; or

  2. (b)

     produces a total of more than 2,000 tonnes of oil or when oil is in a gaseous state, 43,000 standard cubic feet is counted as equivalent to one tonne;”;

after the definition of “licensee” insert—

• ““offshore installation” has the meaning given in section 44 of the 1998 Act;”;

after the definition of “retention area proposal” insert—

• ““safety zone” means a safety zone established under section 21 or section 22 of the Petroleum Act 1987^f2;”;

after the definition of “wells suspension” insert—

• ““well test” means a test of the production from a well where the petroleum, water or any other fluid produced or used in such production is not conveyed to a permanent offshore installation;”.

in paragraph (2) after sub-paragraph (b) insert—

“(c)

or a variation to an existing pipeline works authorisation”;

for paragraph (3) substitute—

“(3)

Subject to paragraphs (7) and (10), the amount of the fee under paragraph (1), and for a complex application under paragraph (2), is determined by the formula—”

$$\pounds 715\times A\times B$$

for paragraph (5) substitute—

“(5)

The licensee or person must:

(a)

pay any fee payable under paragraph (1), or paragraph (2) for a complex application, within 30 days of the OGA notifying the licensee or person of the determination of the application unless paragraphs (7) or (10) apply;

(b)

where paragraphs (7) or (10) apply, pay any fee payable under paragraph (1) within 30 days of the OGA notifying the licensee or person of the amount due, unless the OGA notifies the licensee or person, as appropriate, in writing that the licensee or person may pay the fee at a later date;

(c)

pay any fee payable under paragraph (2), other than for a complex application, at the time of making the application; and

(d)

in relation to paragraph (16) pay any additional fee payable under paragraph (2) within 30 days of the OGA notifying the licensee or person of the determination of the application,

unless the OGA notifies the licensee or person, as appropriate, in writing that the licensee or person may pay the fee at a later date.”;

after regulation 4(6) insert—

“(7)

If a licensee who has applied for consent to a development and production programme notifies the OGA in writing, before the OGA has determined the application, that the licensee no longer intends to proceed with the application, the amount of the fee is to be determined in accordance with paragraph 8.

(8)

The amount of the fee under paragraph (7) is determined by the formula—

$$\pounds 715\times A\times B$$

(9)

In paragraph (8), reference to—

• A is the number of days; and

• B is the number of officers working to determine an application for consent to a development and production programme,

• up to and including the date notification is received by the OGA.

(10)

If the determination of an application for consent to a development and production programme by the OGA takes longer than 6 months, the OGA may charge the fee for such application in instalments every six months, determined in accordance with paragraph (11), following receipt by the OGA of the application until its determination, after which the OGA will charge any remaining fee.

(11)

The amount of the fee under paragraph (10) is determined by the formula—

$$\pounds 715\times A\times B$$

(12)

In paragraph (11), reference to—

• A is the number of days; and

• B is the number of officers working to determine an application for consent to a development and production programme,

• in the relevant period under paragraph (10).

(13)

Subject to paragraphs (14) and (16), the amount of the fee under paragraph (2) for an application for consent to, or an authorisation for, an activity or matter listed in the first column of the table below is the corresponding fee set out in the second column of the table.

Application for consent to or authorisation for activity or matter	Fee Payable
Pipeline works authorisation	£2,575
Category 1 pipeline works authorisation variation	£2,575
Category 2 pipeline works authorisation variation	£1,275
Variation of holder, user, owner or Operator of a pipeline under a pipeline works authorisation	£1,275
Consent to a pipeline deposit proposal	£975
Pipeline works authorisation and deposit consents granted following cessation of production from a petroleum field	£1,275

(14)

If the OGA agrees to determine an application for an activity or matter listed in the first column of the table in paragraph (13) on an expedited basis, the amount of the fee is double the corresponding fee set out in the second column of the table.

(15)

In this regulation, a “complex application” is an application of the type set out in paragraph (2) and that the OGA considers will require more than four days for an officer to determine.

(16)

The OGA will notify, in writing, the person making an application—

(a)

within seven days of receipt of the application if it determines the application to be a complex application; or

(b)

within seven days of the OGA making a determination that it is a complex application, if the OGA makes such a determination at a later date,

and credit the fee paid by the licensee or person at the time of making the application against the amount of the fee payable by the licensee or person for a complex application under paragraph (2).”

at the end of the table following paragraph (3) insert the following rows—

“

Flare or vent natural gas from a relevant oil processing facility or a relevant gas processing facility	£300
Drill stem test	£400
Extended well test	£990

”

after paragraph (3) insert—

“(4)

In this regulation, “relevant gas processing facility” and “relevant oil processing facility” have the meanings given in sections 82(3) and 90 of the Energy Act 2011.”