# The Petroleum Licensing (Production) (Seaward Areas) Regulations 2008, Paragraph 4: Initial Term

Extent: E+W+S+N.I.

(1) Where a Phase A is specified but no Phase B is specified, this licence shall, unless the OGA in its discretion decides otherwise, automatically cease and determine on the expiry of Phase A in the event of failure by the Licensee before expiry of that phase to—
(a) take the actions that are described in the section of the Work Programme applicable to Phase A;
(b) undertake to complete before expiry of Phase C the work described in the section of the Work Programme applicable to Phase C; and
(c) demonstrate to the satisfaction of the OGA (whose decision shall be final)—
(i) the financial capacity of the Licensee to meet the obligations undertaken under sub-paragraph (b) in addition to all of the obligations imposed by this licence; and
(ii) the competence of the relevant persons to organise and supervise any of the operations of searching or boring for Petroleum.
(2) Where no Phase A is specified but a Phase B is specified, this licence shall, unless the OGA in its discretion decides otherwise, automatically cease and determine on the expiry of Phase B in the event of failure by the Licensee before expiry of that phase to—
(a) take the actions that are described in the section of the Work Programme applicable to Phase B;
(b) undertake to complete before expiry of Phase C the work described in the section of the Work Programme applicable to Phase C; and
(c) demonstrate to the satisfaction of the OGA (whose decision shall be final)—
(i) the financial capacity of the Licensee to meet the obligations undertaken under sub-paragraph (b) in addition to all of the obligations imposed by this licence; and
(ii) the competence of the relevant persons to organise and supervise any of the operations of searching or boring for Petroleum.
(3) Where both a Phase A and a Phase B are specified—
(a) this licence shall, unless the OGA in its discretion decides otherwise, automatically cease and determine on the expiry of Phase A in the event of failure by the Licensee before expiry of that phase to—
(i) take the actions that are described in the section of the Work Programme applicable to Phase A; and
(ii) undertake to complete before expiry of Phase B the work described in the section of the Work Programme applicable to Phase B; and
(b) if this licence continues to Phase B, this licence shall, unless the OGA in its discretion decides otherwise, automatically cease and determine on the expiry of Phase B in the event of failure by the Licensee before expiry of that phase to—
(i) take the actions that are described in the section of the Work Programme applicable to Phase B;
(ii) undertake to complete before expiry of Phase C the work described in the section of the Work Programme applicable to Phase C; and
(iii) demonstrate to the satisfaction of the OGA (whose decision shall be final)—
(aa) the financial capacity of the Licensee to meet the obligations undertaken under paragraph (ii) in addition to all of the obligations imposed by this licence; and
(bb) the competence of the relevant persons to organise and supervise any of the operations of searching or boring for Petroleum.
(4) Where a deadline specified in the Work Programme for any action to be taken does not coincide with the date of expiry of any of Phases A, B and C, this licence shall, unless the OGA in its discretion decides otherwise, automatically cease and determine on the expiry of that deadline in the event of failure by the Licensee to take the action required by that deadline.
(5) The OGA may decide that this licence shall not automatically cease and determine in accordance with paragraphs (1) to (4) of this clause only if the Licensee consents.
(6) The relevant persons referred to in paragraphs (1)(c)(ii), (2)(c)(ii) and (3)(b)(iii)(bb) of this clause are—
(a) any persons nominated by the Licensee for approval under clause 24 of this licence; or
(b) the Licensee, where the Licensee is one person and the Licensee has not nominated anybody for such approval.

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Source: https://www.legislation.gov.uk/uksi/2008/225/schedule/paragraph/4 (the official version)
Page: https://openlegislation.uk/petroleum-licensing-production-seaward-areas-regulations-2008/schedule/paragraph-4
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.