Petroleum Act 1998

Petroleum Act 1998[a]
Act of Parliament
coat of arms
Long titleAn Act to consolidate certain enactments about petroleum, offshore installations and submarine pipelines.
Citation1998 c. 17
Introduced byThe Lord Chancellor, Lord Irvine of Lairg (Second Reading) 12 January 1998 (Lords)
Territorial extent [b]
Dates
Royal assent16 June 1998
Commencementvarious[c]
Other legislation
Amends
Repeals/revokesSee § Repealed enactments
Amended by
Status: Amended
Text of statute as originally enacted
Revised text of statute as amended
Text of the Petroleum Act 1998 as in force today (including any amendments) within the United Kingdom, from legislation.gov.uk.

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 As a consolidation Act, it did not change the substantive law, although certain acts were amended and repealed.

Background

This 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 The act repealed in their entirety the Petroleum Production Act 1934 (24 & 25 Geo. 5.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.

Provisions

Part 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 activities

Section 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 pipelines

Section 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 installations

Section 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 General

Section 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

Repealed enactments

Section 51(1) of the act repealed 20 enactments, listed in part I of schedule 5 to the act, and section 51(2) revoked 6 instruments, listed in part II of that schedule.[4]

Part I — Repeals
Citation Short title Extent of repeal
1934 c. 36 Petroleum (Production) Act 1934 The whole act.
1954 c. 70 Mines and Quarries Act 1954 In Schedule 4, the paragraph relating to the Petroleum (Production) Act 1934.
1964 c. 29 Continental Shelf Act 1964 In section 1, subsection (3) and, in subsection (8), the words from "and "petroleum"" to the end.
1966 c. 4 Mines (Working Facilities and Support) Act 1966 Section 15(5).
Schedule 2.
1975 c. 22 Oil Taxation Act 1975 Section 21(5).
1975 c. 74 Petroleum and Submarine Pipe-lines Act 1975 The whole act.
1976 c. 30 Fatal Accidents Act 1976 In Schedule 1, in paragraph 2(2), the reference to section 30(1) of the Petroleum and Submarine Pipe-lines Act 1975.
1978 c. 46 Employment (Continental Shelf) Act 1978 The whole act.
1982 c. 23 Oil and Gas (Enterprise) Act 1982 The whole act except sections 24, 26, 31, 37 and 38 and, in Schedule 3, paragraphs 1, 3, 4, 8 (so far as relating to sections 3 and 9 of the Mineral Workings (Offshore Installations) Act 1971), 11, 34, 37 and 39.
1984 c. 12 Telecommunications Act 1984 Section 107(3).
1985 c. 48 Food and Environment Protection Act 1985 Section 15(4)(b).
1987 c. 12 Petroleum Act 1987 Parts I and II.
Section 24(4) to (6).
Section 28.
Section 31(2)(a).
Schedules 1 and 2.
1987 c. 21 Pilotage Act 1987 In Schedule 2, paragraph 5.
1987 c. 49 Territorial Sea Act 1987 In Schedule 1, paragraph 7(1) and (2).
1992 c. 15 Offshore Safety Act 1992 In section 1, in subsection (3)(c), the words from "section" to "requirements and" and, in subsection (5), paragraph (b) and, in paragraph (c), the words "16(1) or".
Section 3(1)(c) and (d).
1992 c. 52 Trade Union and Labour Relations (Consolidation) Act 1992 Section 287(5).
In Schedule 2, paragraph 29.
1995 c. 7 Requirements of Writing (Scotland) Act 1995 In Schedule 4, paragraphs 48 and 50.
1995 c. 21 Merchant Shipping Act 1995 In Schedule 13, paragraph 65.
1995 c. 40 Criminal Procedure (Consequential Provisions) (Scotland) Act 1995 In Schedule 4, paragraph 40.
1996 c. 18 Employment Rights Act 1996 Section 201(5).
In Schedule 1, paragraph 18.
Part II — Revocations
Citation Title Extent of revocation
SI 1977/1251 (N.I. 18) Fatal Accidents (Northern Ireland) Order 1977 In Schedule 1, paragraph 8.
SI 1992/1972 (N.I. 17) Offshore, and Pipelines, Safety (Northern Ireland) Order 1992 In Article 3, in paragraph (3)(c), the words from "section" to "requirements and" and, in paragraph (5), sub-paragraph (b) and, in sub-paragraph (c), the words "16(1) or".
Article 5(1)(b).
SI 1993/1823 Offshore Safety (Repeals and Modifications) Regulations 1993 Regulation 4(3).
S.R. (N.I.) 1993 No. 384 Offshore Safety (Repeals and Modifications) Regulations (Northern Ireland) 1993 Regulation 4(2).
SI 1997/2703 Section 7 of the Petroleum (Production) Act 1934 and Section 2(1)(a) of the Petroleum Act 1987 (Modification) Regulations 1997 The whole instrument.
S.R. (N.I.) 1997 No. 528 Section 2(1)(a) of the Petroleum Act 1987 (Modification) Regulations (Northern Ireland) 1997 The whole instrument.

Subsequent legislation

The 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 also

Notes

  1. ↑ Section 53(1).
  2. ↑ Section 53(2).
  3. ↑ Section 52.

References

  1. ↑ "Licences: further provisions". UK Govt. Retrieved 2 May 2015.
  2. ↑ "Onshore hydraulic fracturing: safeguards". UK Govt. Retrieved 2 May 2015.
  3. ↑ Brown, Adam. "UK fracking: the pursuit of safety". Dentons. Retrieved 2 May 2015.
  4. ↑ "Petroleum Act 1998", legislation.gov.uk, The National Archives, 1998 c. 17