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C 16/2 EN Official Journal of the European Communities 18.1.

2001

United Kingdom Government notice concerning European Parliament and Council Directive
94/22/EC of 30 May 1994 on the conditions for granting and using authorisations for the pros-
pection, exploration and production of hydrocarbons

(2001/C 16/02)
(Text with EEA relevance)

DEPARTMENT OF TRADE AND INDUSTRY

THE PETROLEUM (PRODUCTION) (SEAWARD AREAS) REGULATIONS 1988

1. The Secretary of State for Trade and Industry invites (d) applicants are required to provide details of the work
interested persons, in accordance with the Petroleum programme for the initial term which they intend to
(Production) (Seaward Areas) Regulations 1988 (SI 1988 carry out if awarded a licence (see paragraph 9 below);
No 1213), as amended (‘the 1988 Regulations’), and the
Hydrocarbons Licensing Directive Regulations 1995 (SI
1995 No 1434), to apply for petroleum production (e) applicants who are also proposed operators are
licences in respect of blocks 113/28 and 113/29. A map required to submit a statement of their general
which shows the blocks available for applications has been environmental policy for the conduct of licensed
deposited at the Library at the Department of Trade and activities in seaward areas;
Industry, 1 Victoria Street, London, SW1H 0ET. This map
may be inspected by prior appointment (tel. (44-207)
215 50 06 or (44-207) 215 50 07, fax (44-207) (f) further guidance on the material with which applicants
215 56 65) between 9.15 and 16.45 hours Monday to may support their applications is given in notes for
Friday until 18 April 2001. The map is also available on applicants, available from the Department of Trade
the DTI’s oil and gas website, http://www.og.dti.gov.uk. and Industry;

2. Any licence awarded in respect of blocks 113/28 and (g) unless otherwise stated in the notes for applicants,
113/29 will incorporate in substance, subject to certain material supplied in support of applications will be
modifications and additional provisions to deal with treated in confidence; such material will not be
matters referred to below, the model clauses set out in disclosed to third parties without the agreement of
Schedule 4 to the Petroleum (Production) (Seaward the applicant, unless it is already in the public
Areas) Regulations 1988 (as amended) except that the domain or disclosure is required by law.
amendments to model clauses set out in paragraphs
(a)(ii) and (c) to (h) of Regulation 8 of the Petroleum
(Production) (Seaward Areas) (Amendment) Regulations 4. Applications will be judged against the background of the
1996 will not apply. continuing need for expeditious, thorough, efficient and
safe exploration to identify oil and gas resources of the
United Kingdom continental shelf, with due regard to
APPLICATIONS FOR LICENCES
environmental considerations. Applications will be judged
3. In respect of the blocks referred to in paragraph 1: on the basis of the following criteria:

(a) applications should be made on the standard (a) the financial capability of the applicant to carry out the
application form available from the Department of activities that would be permitted during the initial
Trade and Industry; copies of the application form term of any licences or licences awarded including
and all other documents referred to in the text of the work programme submitted for evaluating the
this notice as being available from the Department of full potential of the area within the relevant block or
Trade and Industry may be obtained from the Licensing blocks;
Branch, Oil and Gas Directorate, Department of Trade
and Industry, 1 Victoria Street, London SW1H 0ET (tel
(44-207) 215 51 11 or (44-207) 215 50 32, fax (b) the technical capability of the applicant to carry out
(44-027) 215 51 42). This documentation is also the activities that would be permitted during the initial
available on the DTI’s oil and gas website; term including the identification of hydrocarbon
prospects within the relevant block or blocks.
(b) applications should be delivered to the oil and gas Technical capability will be assessed in part upon the
Directorate of the Department of Trade and Industry quality of geological analysis related to the block or
at 1 Victoria Street, London SW1H 0ET, together with blocks (taking into account whether work done was
a fee of GBP 2 820 per application. Applications will innovative);
be received between 9.30 and 13.00 hours on 18 April
2001. No applications will be accepted after 13.00 (c) the way in which the applicant proposes to carry out
hours on that date; the activities that would be permitted during the initial
term including the quality of the work programme
(c) applicants are requested to indicate if they have any submitted for evaluating the full potential of the area
preferences between the blocks they have applied for; applied for;
18.1.2001 EN Official Journal of the European Communities C 16/3

(d) where the applicant holds or has held a licence of any to this effect not less than three months before the
description under the Petroleum Act 1998 or previous expiration of the initial term. The licensee will in exer-
legislation having similar effect, any lack of efficiency cising this option be required to surrender part of the
and responsibility displayed by the applicant in licensed area except where the area consists of less than
operations under that licence. 30 sections (a ‘section’ being defined as a part of a block
comprising an area bounded by minute lines of longitude
5. Applicants should note that while authorities representing and latitude one minute apart respectively). Where a part
conservation interests and the interests of other sea users is required to be surrendered, it should be calculated as
have confirmed that there are no factors for which they follows:
have responsibility which preclude the offer for licensing
of blocks 113/28 and 113/29, licence awards may be (i) if the area originally comprised in the licence consisted
subject to acceptance by the applicant of terms or of 60 or more sections, the part to be surrendered
conditions designed to protect such interests. Information should be not less than half the number of such
about indicative conditions which may be attached to sections; or
specific blocks to protect particular interests may be
obtained from the Department of Trade and Industry. (ii) if the area originally comprised in the licence consisted
Details of conditions to be attached to licences additional of more than 30 but fewer than 60 sections, the part
to those imposed by the Model Clauses set out in the 1988 to be surrendered should be such number as will leave
Regulations will accompany the letter offering the award a continuing part consisting of 30 sections.
of a licence. Such conditions will also be incorporated into
the main body of the licence.
Any area to be surrendered must comply with Model
Clause 8 in Schedule 4 to the 1988 Regulations as it
6. Following examination of all applications in respect of the stood prior to the amendments made to it by the
blocks referred to in paragraph 1, the Secretary of State Petroleum (Production) (Seaward Areas) (Amendment)
will select the applicants to whom he is prepared to award Regulations 1996 and must be described in the said notice.
licences. Applicants to whom the Secretary of State is
prepared to award a licence will be notified no later
11. The consideration required in respect of production
than one year after the receipt of applications.
licences granted as a result of this invitation will in
summary be:
7. Unsuccessful applicants will be notified in writing. An
applicant will be notified of the reasons for the Secretary
(a) an initial payment, at the time the offer of a licence is
of State’s decision if he submits a written request for this
accepted, of GBP 410 for each square kilometre
information to be provided.
comprised in the licensed area;
8. In all cases where the Secretary of State is prepared to
award a licence, it will be offered on the condition that, (b) subsequent annual payments commencing on the sixth
within 28 days of the date on which the Secretary of State anniversary of the date of commencement of the
makes the offer, the applicant: licence term (following exercise of the option to hold
the licence for a second term) when the sum of
GBP 470 will be payable for each square kilometre
(a) confirms in writing his acceptance of a work in the area to which the licence then relates and
programme proposed by the Secretary of State rising by annual increments of GBP 470 until an
following discussion with the applicant; annual sum of GBP 7 050 is payable for each square
kilometre comprised in the licence area, subject to
(b) remits to the Secretary of State the appropriate biennial review in line with movements in the ‘Index
consideration referred to in paragraph 11(a) below of the price of crude oil acquired by refineries’
for the licence; and (published in the Digest of UK Energy Statistics) if
the Secretary of State so determines. The Secretary of
(c) confirms in writing his acceptance of any special State will not make a biennial determination increasing
conditions with which he has been asked to comply. or decreasing the annual payments due unless the
determination will result in the payment set being
LICENCE TERM AND CONSIDERATION PAYABLE over 5 % higher or lower than that set by the
previous determination, or in the case of the first
9. Subject as below, licences issued in respect of the blocks biennial determination, over 5 % higher than
referred to in paragraph 1 will have an initial term of six GBP 7 050 for each square kilometre. Further details
years with an option to extend for a second term of 12 concerning the payments due are available from the
years. This second term may be extended beyond 12 years Department of Trade and Industry;
for a further period of 18 years.
(c) a royalty at the rate of 12,5 % payable in respect of
10. The option to continue the licence into the second term petroleum won and saved from any field part of which
may be exercised by the licensee giving notice in writing received development consent prior to 1 April 1982.