{
  "url": "https://openlegislation.uk/oil-and-gas-authority-levy-and-fees-regulations-2021/regulation-4",
  "json_url": "https://openlegislation.uk/oil-and-gas-authority-levy-and-fees-regulations-2021/regulation-4.json",
  "legislation": "uksi/2021/206",
  "legislation_title": "The Oil and Gas Authority (Levy and Fees) Regulations 2021",
  "legislation_url": "https://openlegislation.uk/oil-and-gas-authority-levy-and-fees-regulations-2021",
  "path": "regulation/4",
  "kind": "regulation",
  "number": "4",
  "heading": "Liability to pay non-production levy",
  "text": "(1) Subject to paragraphs (2) and (3), a licensee is liable to pay the non-production levy in respect of each of the following kinds of licence held by the licensee at the relevant time—\n(a) an offshore exploration licence;\n(b) an offshore production licence in respect of which the criterion at regulation 3(2) is not satisfied.\n(2) A licensee which at the relevant time—\n(a) is a micro-enterprise; and\n(b) holds an innovate licence in phase B of its initial term,\nis liable to pay the non-production levy discounted by 80% in respect of that licence.\n(3) A licensee which at the relevant time—\n(a) is a micro-enterprise; and\n(b) holds either—\n(i) a promote licence in its promote period; or\n(ii) an innovate licence in phase A of its initial term,\nis liable to pay the non-production levy discounted by 90% in respect of that licence.\n(4) Where the licensee is more than one person—\n(a) the liability under this regulation is joint and several; and\n(b) the licensee is only a micro-enterprise for the purposes of paragraphs (2) and (3) if every person who is the licensee is a micro-enterprise.\n(5) In this regulation—\n“financial year” is determined in accordance with section 390 of the Companies Act 2006;\n“innovate licence” means an offshore production licence in which, in accordance with the model clauses, the initial term of the licence (within the meaning of the licence) is divided into phases;\n“micro-enterprise” means an undertaking which has fewer than 10 employees and meets one or both of the following requirements —\n(a) its turnover does not exceed £1,778,000;\n(b) the aggregate of the amounts shown as assets in its balance sheet does not exceed £1,778,000,\nin the financial year immediately preceding that in which the licensee is liable to pay the non-production levy;\n“model clauses” means model clauses prescribed by the Petroleum Licensing (Production) (Seawards Areas) Regulations 2008;\n“promote licence” means an offshore production licence in which, in accordance with the terms of the licence—\n(a) a “promote period” is specified, and\n(b) a clause is included concerning the effect of the expiry of the promote period in relation to the continuation of that licence beyond that period;\n“turnover” has the meaning given in section 474 of the Companies Act 2006.",
  "extent": null,
  "status": null,
  "version": "current",
  "annotations": [
    {
      "type": "footnote",
      "label": "f1",
      "text": "2006 c.46."
    },
    {
      "type": "footnote",
      "label": "f2",
      "text": "S.I. 2008/225, amended by S.I. 2009/3283, S.I. 2016/912, S.I. 2017/426 and S.I. 2017/855."
    }
  ],
  "outstanding_effects": [],
  "provenance": {
    "source": "legislation.gov.uk",
    "source_url": "https://www.legislation.gov.uk/uksi/2021/206/regulation/4",
    "retrieved_at": "2026-10-28T22:16:55.150457+00:00"
  },
  "licence": "Open Government Licence v3.0",
  "licence_url": "https://www.nationalarchives.gov.uk/doc/open-government-licence/version/3/",
  "attribution": "Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives."
}