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Petroleum Act 1998
The Petroleum Act 1998 (c. 17) is an act of the Parliament of the United Kingdom which consolidated arrangements for the licensing, operation and abandonment of offshore installations and pipelines. As a consolidation Act, it did not change the substantive law, although certain Acts were amended and repealed. BackgroundThis was a consolidation act which brought together a number of enactments on petroleum. It dealt with rights and licences to search for and get petroleum; the application of criminal and civil law to offshore activities; authorisations for submarine pipelines; and the decommissioning of offshore installations and pipelines. The main acts which were to be consolidated were the Petroleum (Production) Act 1934 (24 & 25 Geo. 5. c. 36); the Petroleum and Submarine Pipe-lines Act 1975 (c. 74); the Oil and Gas (Enterprise) Act 1982; and the Petroleum Act 1987 (c. 12), parts I and II. The Act vested all rights to the UK’s petroleum resources in the Crown; a right first established by the Petroleum Production Act 1934 (24 & 25 Geo. 5. c. 36). It also established the right to grant licenses to ‘search and bore for and get’ petroleum, to the Oil and Gas Authority; this was through the retrospective application of the Energy Act 2016. The act also made provision for the abandonment of offshore installations and pipelines. The Act also puts into statute the objective of maximising the economic recovery of the UK’s offshore oil and gas resources (by means of the Infrastructure Act 2015). The Act repealed in their entirety the Petroleum Production Act 1934 (24 & 25 Geo. 5. c. 36) and the Petroleum and Submarine Pipe-lines Act 1975 (c. 74). It also amended parts I and II of the Petroleum Act 1987 (c. 12), concerning the abandonment of Offshore Installations and the licensing of petroleum production. ProvisionsPart I Petroleum (sections 1 to 9)Section 4 has further clauses on licence provisions.[1] Section 50 of the Infrastructure Act 2015 appended this section. It defines 'associated hydraulic fracturing' as more than 1,000 cubic metres of fluid per stage, or more than 10,000 cubic metres of fluid in total. In addition, conditions were attached that mean no fracking can take place at a depth shallower than 1,000 meters, and that soil and air monitoring must be put in place. The regulations state that "The associated hydraulic fracturing will not take place within protected groundwater source areas".[2] 'Protected groundwater source area' does not appear to be defined.[3] Part II Offshore activitiesSection 10 applied UK criminal law to acts or omissions which takes place on, under or above an offshore installation which would constitute an offences under UK criminal law. Section 11 applied UK civil law to acts or omissions which takes place on, under or above an offshore installation which would constitute an offences under UK civil law. Section 12 requires in England and Wales the consent of the Director of Public Prosecutions to instigate proceedings for an offence. Section 13 interpretation of Part II Part III Submarine pipelinesSection 14 prohibits the construction or use of any controlled pipeline without the written authorisation by the Secretary of State. Section 15 authorisations may contain limitations or specified conditions Section 16 modifications to increase capacity or installation of a junction may be specified by the Secretary of State Section 17 a person may apply to have material conveyed by a pipeline Section 18 authorisations may be terminated Section 19 a pipeline which ceases to have an authorisation shall be transferred to and vested in the Secretary of State Section 20 the Secretary of State may appoint inspectors Section 21 specifies offences and enforcement Section 22 criminal proceedings Section 23 civil liability for breach of statutory duty Section 24 application of Part III Section 25 making of orders and regulations Sections 26, 27 meanings of pipeline and owner Section 28 interpretation of Part III Part IV Abandonment of offshore installationsSection 29 Preparation of programmes Section 30 Persons who may be required to submit programmes Section 31 Section 29 notices: supplementary provisions Section 32 Approval of programmes Section 33 Failure to submit programmes Section 34 Revision of programmes Section 35 Withdrawal of approval Section 36 Duty to carry out programmes Section 37 Default in carrying out programmes Section 38 Financial resources Section 39 Regulations Section 40 Offences: penalties Section 41 Offences: general Section 42 Validity of Secretary of State’s acts Section 43 Notices Section 44 Meaning of “offshore installation” Section 45 Interpretation of Part IV Part V Miscellaneous and GeneralSection 46 Northern Ireland and Isle of Man shares of petroleum revenue Section 47 Loans for development Section 48 Interpretation Section 49 Transitional provisions and savings Section 50 Consequential amendments Section 51 Repeals and revocations Section 52 Commencement Section 53 Short title and extent Subsequent legislationThe Infrastructure Act 2015 inserted part 1A into the Petroleum Act 1998. The Energy Act 2016 extended part 1A. PART 1A Maximising economic recovery of UK petroleum Section 9A The principal objective and the strategy Section 9B Exercise of certain functions of the OGA Section 9BA Exercise of certain functions of the Secretary of State Section 9C Carrying out of certain petroleum industry activities Section 9D Reports by the Secretary of State Section 9E OGA's security and resilience functions Section 9F Producing and revising a strategy Section 9G Procedure for producing and revising a strategy Section 9H “Upstream petroleum infrastructure” and its owners Section 9HA “Relevant offshore installations” and their owners Section 9I Other interpretation See alsoReferences
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