Explanatory note

These Regulations make provision for imposing a levy on licensees of offshore licences. The levy is payable to meet the expenditure of the Oil and Gas Authority (the “OGA”) in carrying out certain functions as set out in section 42(5) of the Infrastructure Act 2015 (c. 7).

The provisions of these Regulations refer to the Secretary of State rather than the OGA since the OGA is an executive agency of the Department of Energy and Climate Change and has no separate legal identity.

Regulation 3 makes provision for the application of the levy to licensees of offshore exploration licences and offshore production licences. The higher levy rate is payable in circumstances where a licensee will be producing petroleum or the relevant consent or approval has been given such that there is nothing preventing a licensee from producing petroleum in respect of that licence.

Regulation 4 provides for the charging period.

Regulation 5 provides for the licensees to be notified of the amount of the levy, the time by which it must be paid and the method of payment.

Regulation 6 provides for the payment of interest where the levy is paid late.

Regulation 7 makes provision for any unpaid levy together with interest to be recovered as a civil debt and makes provision for joint and several liability where the licensee is more than one person.

A full regulatory impact assessment of the effect that these Regulations will have on the costs of business is annexed to the Explanatory Memorandum which is available alongside these Regulations on www.legislation.gov.uk.