Office of Public Sector Information
Statutory Instruments
petroleum
Made
5th February 2008
Laid before Parliament
6th February 2008
Coming into force
6th April 2008
The Secretary of State, in exercise of the powers conferred on him by section 4 of the Petroleum Act 1998(1), makes the following Regulations:
1.—(1) These Regulations may be cited as the Petroleum Licensing (Production) (Seaward Areas) Regulations 2008 and shall come into force on 6th April 2008.
(2) In these Regulations—
“production licence” means a licence to search and bore for, and get, petroleum in strata in the sea bed and in the subsoil in a seaward area;
“seaward area” means an area on the seaward side of the baselines as set out in the Territorial Waters Order in Council 1964(2).
2.—(1) For the purposes of section 4(1)(e) of the Petroleum Act 1998, the model clauses prescribed for production licences in seaward areas are those set out in the Schedule.
(2) The model clauses prescribed for such licences by regulation 3(3) to (6) of, and Schedules 2 to 5 to, the Petroleum Licensing (Exploration and Production) (Seaward and Landward Areas) Regulations 2004(3) shall not apply in relation to any licence granted after the commencement of these Regulations.
Malcolm Wicks
Minister of State for Energy
Department for Business, Enterprise and Regulatory Reform
5th February 2008
Regulation 2(1)
1.—(1) In this licence, the following expressions have the following meanings—
“the Act” means the Petroleum Act 1998;
“Block” means an area comprised in this licence which is delineated on the reference map deposited at the principal office of the Department for Business, Enterprise and Regulatory Reform and to which a reference number was assigned at the date of this licence;
“Development Scheme” has the meaning given by clause 27;
“Drill-or-Drop Period” means the period (if any) specified as such in Schedule 5 to this licence;
“Early Surrender Area” means the area (if any) specified as such in Schedule 5 to this licence;
“Early Surrender Period” means the period (if any) specified as such in Schedule 5 to this licence;
“Fragmented Licensed Area” means a Licensed Area consisting in two or more areas any one or more of which is separated from the others;
“Half Year” means the period from 1st January to 30th June in any year and the period from 1st July to 31st December in any year;
“Initial Licensed Area” means the area described in Schedule 1 to this licence on the date it was granted;
“Initial Term” means the period specified as such in Schedule 5 to this licence;
“Licensed Area” means the area for the time being in which the Licensee may exercise the rights granted by this licence;
“the Licensee” means the person or persons to whom this licence is granted, his personal representatives and any person or persons to whom the rights conferred by this licence may lawfully have been assigned;
“Mandatory Surrender Area” means the area specified as such in Schedule 5 to this licence;
“the Minister” means the Secretary of State for Business, Enterprise and Regulatory Reform;
“Oil Field” has the meaning given in clause 27;
“Petroleum” includes any mineral oil or relative hydrocarbon and natural gas existing in its natural condition in strata but does not include coal or bituminous shales or other stratified deposits from which oil can be extracted by destructive distillation;
“Promote Period” means the period (if any) specified as such in Schedule 5 to this licence;
“Second Term” means the period specified as such in Schedule 5 to this licence;
“Section” means a part of a Block comprising an area bounded by minute lines of latitude and longitude one minute apart respectively;
“Start Date” means the date specified as such in Schedule 5 to this licence;
“Third Term” means the period specified as such in Schedule 5 to this licence;
“Well” includes borehole;
“Work Programme” means the programme set out in Schedule 3 to this licence.
(2) Any obligations which are to be observed and performed by the Licensee shall at any time at which the Licensee is more than one person be joint and several obligations.
2. In consideration of the payments hereinafter provided for and the performance and observance by the Licensee of all the terms and conditions hereof, the Minister, in exercise of the powers conferred upon him by the Act hereby grants to the Licensee exclusive licence and liberty during the continuance of this licence and subject to the provisions hereof to search and bore for, and get, Petroleum in the sea bed and subsoil under the seaward area more particularly described in Schedule 1 to this licence provided that nothing in this licence shall affect the right of the Minister to grant a methane drainage licence in respect of the whole or any part of the Licensed Area or affect the exercise of any rights granted under any such methane drainage licence.
3.—(1) This licence shall commence with the later of—
(a) the Start Date; and
(b) the date on which this licence was granted.
(2) Unless sooner determined under any of its provisions, and provided always that its terms and conditions continue to be performed and observed, this licence shall continue—
(i) for the Initial Term, subject to clause 4 and (where applicable) clauses 5 and 10;
(ii) for the Second Term, subject to clauses 6, 7 and 10;
(iii) for the Third Term, subject to clauses 8 and 10.
(3) On expiry of the Third Term, this licence shall determine unless extended in accordance with clause 9.
4.—(1) Where a Drill-or-Drop Period is specified, this licence shall, unless the Minister in his discretion decides otherwise, automatically cease and determine on the expiry of that period in the event of failure by the Licensee before the expiry of that period to—
(a) take the actions that are described in Part I of the Work Programme; and
(b) undertake to complete on or before expiry of the Initial Term the work described in Part II of the Work Programme.
(2) Where a Promote Period is specified, this licence shall, unless the Minister in his discretion decides otherwise, automatically cease and determine on the expiry of that period in the event of failure by the Licensee before the expiry of that period to—
(a) take the actions that are described in Part I of the Work Programme;
(b) undertake to complete, before the expiry of the Initial Term, the work described in Part II of the Work Programme; and
(c) demonstrate to the satisfaction of the Minister (whose decision shall be final)—
(i) the financial capacity of the Licensee to meet the obligations undertaken under sub-paragraph (b) above 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) The relevant persons referred to in paragraph (2)(c)(ii) of this clause are—
(a) any person nominated by the Licensee for approval under clause 24 of this licence; or
(b) the Licensee, where the Licensee is one person and he has not nominated anybody for such approval.
5.—(1) This clause shall apply where an Early Surrender Area and an Early Surrender Period are specified.
(2) No later than one month before the expiry of the Early Surrender Period, the Licensee shall give notice in writing to the Minister indicating—
(a) that he will determine this licence in relation to a part of the Licensed Area which, when taken together with any one or more areas previously surrendered in accordance with clause 10, is no less than the Early Surrender Area; and
(b) the date no later than the expiry of the Early Surrender Period on which the surrender of that part of the Licensed Area shall take effect.
(3) If the Licensee fails to comply with his obligations under paragraph (2) of this clause, and unless the Minister directs otherwise, this licence shall expire at the end of the Early Surrender Period.
6.—(1) At any time not later than one month before the expiry of the Initial Term the Licensee may—
(a) subject to payment of the sums specified in Schedule 2 and to performance of the terms and conditions contained in this licence including, without limitation, those conditions set out in paragraph (3) of this clause; and
(b) conditional upon due performance by the Licensee of the Work Programme before the expiry of the Initial Term,
give notice in writing to the Minister in the manner hereinafter provided that he desires this licence to continue in force in relation to part of the Licensed Area (“the Continuing Part”).
(2) Where the Licensee gives notice to the Minister in accordance with paragraph (1) of this clause such notice must indicate that he will determine this licence in relation to such part of the Licensed Area as shall be described by the Licensee in the notice (“the Surrendered Part”) in accordance with the requirements of paragraph (3) of this clause.
(3) Subject to paragraph (4) of this clause, the Surrendered Part must consist in an area which, when taken together with any one or more areas previously surrendered, is no less than the Mandatory Surrender Area.
(4) The Licensee shall not be obliged to surrender so much of the Licensed Area that following such surrender the Licensed Area comprises less than thirty Sections.
(5) Any notice served in accordance with paragraph (1) of this clause shall specify a date not later than the expiry of the Initial Term on which the Surrendered Part is to be surrendered.
(6) This licence shall upon the option conferred by this clause being duly exercised but subject to the provisions of clause 3 of this licence continue in respect of the Continuing Part for the Second Term.
7.—(1) This clause enables an extension to be made to the Initial Term or as the case may be to the Second Term (“the relevant term”).
(2) At any time not later than three months before the expiry of the relevant term the Licensee may, subject to payment of the sums specified in Schedule 2 and to performance of the terms and conditions herein contained, give notice in writing to the Minister that he desires that term to be extended for a further period.
(3) Where notice is given in pursuance of paragraph (1) of this clause, the Minister may in his discretion direct in writing that the relevant term be extended; and paragraph (2) of this clause shall apply to that term as so extended.
(4) An extension given by a direction in pursuance of this clause shall be for a period, and subject to such conditions, as the Minister may determine.
(5) Where a relevant term is extended in pursuance of this clause, clause 3 shall apply in respect of that term as so extended.
(6) Where the Initial Term is extended by a period in pursuance of this clause, the Second Term shall (without prejudice to paragraph (2)) be reduced by the same amount; and where the Second Term is extended by a period in pursuance of this clause, the Third Term shall be reduced by the same amount.
8.—(1) At any time not later than three months before the expiry of the Second Term the Licensee may, subject to payment of those sums specified in Schedule 2 and to performance of the terms and conditions herein contained, give notice in writing to the Minister that he desires this licence to continue as to a part of the Licensed Area (“the Producing Part”).
(2) Such notice shall describe the Producing Part, which shall be an area that comprises no Section that is not wholly or in part the subject of a consent, approval or programme described in paragraph (3) of this clause.
(3) If such notice is given this licence shall continue in force after the expiry of the Second Term as provided by the following paragraphs of this clause in the event that before such expiry—
(a) the Minister has given a consent in pursuance of clause 17(1) of this licence and such consent is still in force upon expiry of the Second Term; or
(b) the Minister has in pursuance of clause 17(4) of this licence approved a programme submitted to him in pursuance of clause 17(2) and such approval is still in force upon expiry of the Second Term; or
(c) the Minister has served a programme on the Licensee in pursuance of clause 17(6) of this licence and such programme is still in force upon expiry of the Second Term.
(4) Where this licence continues in force by virtue of this clause it shall, subject to the provisions of clause 3 of this licence, so continue during the Third Term.
9. Where this Licence is continued in force by virtue of clause 8 of this Licence to the end of the Third Term, the Minister, on application being made to him in writing not later than three months before the expiry of such period, may in his discretion agree with the Licensee that this Licence shall continue in force thereafter for such further period as the Minister and the Licensee may agree and subject to such modification of the terms and conditions of this licence (which modification may include making provision for any further extension of the term of this licence) as the Minister and the Licensee may then agree is appropriate.
10. Without prejudice to any obligation or liability imposed by or incurred under the terms hereof the Licensee may at any time by giving to the Minister not less than one month’s notice in writing to that effect determine this licence or surrender any part of the Licensed Area being a part which complies with clause 11 hereof.
11.—(1) Any area surrendered by the Licensee pursuant to clause 5, 6 or 10 of this licence and any area accordingly retained by him shall, unless the Minister has otherwise agreed in writing before the date on which the appropriate notice is given by the Licensee to the Minister—
(a) be bounded by minute lines of latitude extending not less than two minutes of longitude and minute lines of longitude extending not less than two minutes of latitude;
(b) consist of not less than thirty Sections; and
(c) subject always to paragraph (2) of this clause have boundaries which, whether they run north and south or east and west, either coincide with the corresponding boundaries of the Block or are not less than two Sections distant from those boundaries.
(2) The surrender by the Licensee of any area pursuant to clause 5, 6 or 10 of this licence shall not, unless the Minister has otherwise agreed in writing before the date on which the appropriate notice is given by the Licensee to the Minister, result in the creation of a Fragmented Licensed Area.
(3) Upon the date on which any determination of this licence or any surrender of part of the Licensed Area in the manner provided for by any clause of this licence is to take effect the rights granted by this licence shall cease in respect of the Licensed Area or of the part so surrendered as the case may be but without prejudice to any obligation or liability imposed upon the Licensee or incurred by him under the terms of this licence prior to that date.
12.—(1) The Licensee shall make to the Minister as consideration for the grant of this Licence payments in accordance with Schedule 2 to this Licence.
(2) The Licensee shall not by reason of determination of this Licence or surrender of any part of the Licensed Area be entitled to be repaid or allowed any sum payable to the Minister pursuant to this licence before the date of determination or surrender.
13.—(1) A notice, direction or other document authorised or required (in whatever terms) to be given to the Licensee by virtue of this licence is treated as given to the Licensee if it is given to the person specified by the Licensee under paragraph (2) at the address so specified.
(2) The Licensee must supply the Minister with the name and address of a person to whom notices, directions and other documents are to be given.
(3) The Licensee must ensure that, where there is a change in the person to whom, or the address to which, information should be sent in accordance with paragraph (2), the Minister is notified of the change as soon as is reasonably practicable.
(4) If the Licensee fails to comply with paragraph (2) the Minister may give the Licensee a notice which—
(a) requires the Licensee to comply with paragraph (2) within the period of 30 days beginning with the date of the notice; and
(b) states that, if the Licensee fails to do so, the Licensee will be treated as having supplied under paragraph (2) the name and address specified by the Minister in the notice.
14.—(1) The Licensee shall measure or weigh by a method or methods customarily used in good oilfield practice and from time to time approved by the Minister all Petroleum won and saved from the Licensed Area.
(2) If and to the extent that the Minister so directs, the duty imposed by paragraph (1) of this clause shall be discharged separately in relation to Petroleum won and saved—
(a) from each part of the Licensed Area which is an Oil Field for the purposes of the Oil Taxation Act 1975;
(b) from each part of the Licensed Area which forms part of such an Oil Field extending beyond the Licensed Area; and
(c) from each Well producing Petroleum from a part of the Licensed Area which is not within such an Oil Field.
(3) If and to the extent that the Minister so directs, the preceding provisions of this clause shall apply as if the duty to measure or weigh Petroleum included a duty to ascertain its quality or composition or both; and where a direction under this paragraph is in force, the following provisions of this clause shall have effect as if references to measuring or weighing included references to ascertaining quality or composition.
(4) The Licensee shall not make any alteration in the method or methods of measuring or weighing used by him or in any appliances used for that purpose without the consent in writing of the Minister and the Minister may in any case require that no alteration shall be made save in the presence of a person authorised by the Minister.
(5) The Minister may from time to time direct that any weighing or measuring appliance shall be tested or examined in such manner, upon such occasions or at such intervals and by such persons as may be specified by the Minister’s direction and the Licensee shall pay to any such person or to the Minister such fees and expenses for test or examination as the Minister may specify.
(6) If any measuring or weighing appliance shall upon any such test or examination as is mentioned in paragraph (5) of this clause be found to be false or unjust the same shall if the Minister so determines after considering any representations in writing made by the Licensee be deemed to have existed in that condition during the period since the last occasion upon which the same was tested or examined pursuant to paragraph (5) of this clause.
15.—(1) The Licensee shall keep within the United Kingdom full and correct accounts in a form from time to time approved by the Minister of—
(a) the quantity of Petroleum in the form of gas won and saved;
(b) the quantity of Petroleum in any other form won and saved;
(c) the name and address of any person to whom any Petroleum has been supplied by the Licensee, the quantity so supplied, the price thereof or other consideration therefor and the place to which the Petroleum was conveyed pursuant to the agreement for such supply; and
(d) such other particulars as the Minister may from time to time direct.
(2) The quantities of Petroleum stated in such accounts may exclude any water separated from the Petroleum and shall be expressed as volumes in cubic metres measured at, or calculated as if measured at, a temperature of 15° Celsius and a pressure of 1.0132 bar but if the Minister serves notice in writing on the Licensee determining any other manner in which any quantity of Petroleum or any quantity of any form of Petroleum is to be expressed that quantity shall be so expressed.
(3) Such accounts shall state separately the quantities of petroleum used for the purposes of carrying on drilling and production operations and pumping to field storage, and quantities not so used, and in the case of Petroleum not in the form of gas shall state the specific gravity of the Petroleum and, if Petroleum of different specific gravities has been won and saved, the respective quantities of Petroleum of each specific gravity.
(4) The Licensee shall within two months after the end of each Half Year in which this licence is in force and within two months after the expiration or determination of this licence deliver to the Minister an abstract in a form from time to time approved by the Minister of the accounts for that Half Year or for the period prior to such expiration or determination as the case may be.
16.—(1) The Licensee shall before the expiry of the Initial Term carry out the Work Programme.
(2) If at any time the Minister serves a notice in writing on the Licensee requiring him to submit to the Minister, before a date specified in the notice, an appropriate programme for exploring for Petroleum in the Licensed Area during a period so specified, the Licensee shall comply with the notice; and for the purposes of this paragraph an appropriate programme is one which any person who, if he—
(a) were entitled to exploit the rights granted by this licence; and
(b) had the competence and resources needed to exploit those rights to the best commercial advantage; and
(c) were seeking to exploit those rights to the best commercial advantage,
could reasonably be expected to carry out during the period specified in the notice, and that period must be within the term of this licence.
(3) If a programme is submitted to the Minister in consequence of a notice served by him in pursuance of paragraph (2) of this clause, then—
(a) he shall not be entitled to revoke this licence on the ground that the programme does not satisfy the requirements of that paragraph (“the Relevant Requirements”); but
(b) if he is of the opinion that the programme does not satisfy the Relevant Requirements he may serve a notice in writing on the Licensee stating his opinion and the reasons for it.
(4) Where notice in respect of a programme is served on the Licensee in pursuance of paragraph (3) of this clause the Licensee shall either—
(a) within 28 days beginning with the date of service of the notice refer to arbitration, in the manner provided by clause 43 of this licence, the question whether the programme satisfies the Relevant Requirements; or
(b) within a reasonable period beginning with the date of service of such notice submit to the Minister a further programme which satisfies the Relevant Requirements,
and where it is determined in consequence of any reference to arbitration in pursuance of sub-paragraph (a) of this paragraph that the programme in question does not satisfy the Relevant Requirements the Licensee shall submit to the Minister, as soon as possible after the date of the determination, a further programme which satisfies the Relevant Requirements.
(5) The Licensee shall carry out any programme submitted by him in pursuance of this clause as to which either—
(a) the Minister serves notice in writing on the Licensee stating that the Minister approves the programme; or
(b) it is determined in consequence of any reference to arbitration in the manner provided by clause 43 of this licence that the programme satisfies the Relevant Requirements,
and any programme approved by the Minister in pursuance of this paragraph shall be deemed for the purposes of this licence to satisfy the Relevant Requirements.
(6) Where, in consequence of any breach or non-observance by the Licensee of any provision of paragraph (2), (4) or (5) of this clause, the Minister has power by virtue of paragraph (1) of clause 41 of this licence to revoke this licence, he may if he thinks fit exercise that power in relation to such part only of the Licensed Area as he may specify; and where he does so the rights granted by this licence shall cease in respect of the specified part of that area without prejudice to any obligation or liability imposed upon the Licensee or incurred by him under the terms of this licence.
(7) Where the Licensee has a duty by virtue of this clause to carry out a programme during a part of the term of this licence, the Minister may serve notice in pursuance of paragraph (2) of this clause in respect of another part of that term.
17.—(1) The Licensee shall not—
(a) erect or carry out any Relevant Works, either in the Licensed Area or elsewhere, for the purpose of getting Petroleum from that area or for the purpose of conveying to a place on land Petroleum got from that area; or
(b) get Petroleum from that area otherwise than in the course of searching for Petroleum or drilling Wells,
except with the consent in writing of the Minister or in accordance with a programme which the Minister has approved or served on the Licensee in pursuance of the following provisions of this clause.
(2) The Licensee shall prepare and submit to the Minister, in such form and by such time and in respect of such period during the term of this licence as the Minister may direct, a programme specifying—
(a) the Relevant Works which the Licensee proposes to erect or carry out during that period for either of the purposes mentioned in paragraph (1)(a) of this clause;
(b) the proposed locations of the works, the purposes for which it is proposed to use the works and the times at which it is proposed to begin and to complete the erection or carrying out of the works;
(c) the maximum and minimum quantities of Petroleum in the form of gas and the maximum and minimum quantities of Petroleum in other forms which—
(i) in each calendar year; or
(ii) in each such period of more or less than one calendar year as may be specified by the Minister,
the Licensee proposes to get as mentioned in paragraph (1)(b) of this clause.
(3) If the Minister directs the Licensee—
(a) to prepare different programmes in pursuance of paragraph (2) of this clause in respect of Petroleum from such different parts of the Licensed Area as are specified in the direction; or
(b) where a programme approved or served in pursuance of this clause relates to a particular period during the term of this licence, to prepare a programme or programmes in pursuance of paragraph (2) of this clause in respect of a further period or further periods during that term,
the Licensee shall comply with the direction.
(4) It shall be the duty of the Minister expeditiously to consider any programme submitted to him in pursuance of paragraph (2) of this clause and when he has done so to give notice in writing to the Licensee stating—
(a) that the Minister approves the programme; or
(b) that the Minister approves the programme subject to the condition that such of the Relevant Works as are specified in the notice shall not be used before the expiration of the period so specified in relation to the works or shall not be used without the consent in writing of the Minister; or
(c) that the Minister rejects the programme on one or both of the following grounds, namely—
(i) that the carrying out of any proposals included in the programme in pursuance of paragraph (2) of this clause would be contrary to good oilfield practice;
(ii) that the proposals included in the programme in pursuance of the sub-paragraph (c) of the said paragraph (2) are, in the opinion of the Minister, not in the national interest,
and a notice in pursuance of sub-paragraph (b) of this paragraph may contain different conditions in respect of different works but shall not be given unless the Minister is satisfied that the condition mentioned in the notice is required in the national interest.
(5) Where the Minister gives notice of rejection of a programme in pursuance of sub-paragraph (c) of paragraph (4) of this clause, then—
(a) if the grounds of the rejection consist of or include the ground mentioned in paragraph (i) of that sub-paragraph he shall include in the notice a statement of the matters in consequence of which he rejected the programme on that ground; and
(b) if the grounds of the rejection consist of or include the ground mentioned in paragraph (ii) of that sub-paragraph he shall include in the notice a statement of the rates at which he considers that, in the national interest, Petroleum should be got from the area to which the programme relates; and
(c) the Licensee shall prepare and submit to the Minister, before the time specified in the notice—
(i) where the notice contains such a statement as is mentioned in sub-paragraph (a) above, modifications of the programme which ensure that the carrying out of the programme with those modifications would not be contrary to good oilfield practice;
(ii) where the notice contains such a statement as is mentioned in sub-paragraph (b) above, modifications of the programme which ensure the getting of Petroleum from the area to which the programme relates at the rates specified in the statement and which (except so far as may be necessary in order to get Petroleum at those rates) are not such that the carrying out of the programme with those modifications would be contrary to good oilfield practice,
but the Licensee shall not be required by virtue of paragraph (i) of this sub-paragraph to submit modifications if it is determined in consequence of any reference to arbitration in the manner provided by clause 43 of this licence that the carrying out of the programme without modifications would not be contrary to good oilfield practice.
(6) If the Minister gives notice in writing to the Licensee that the Minister approves the modifications of a programme which have been submitted to him in pursuance of sub-paragraph (c) of paragraph (5) of this clause, the programme with those modifications shall be deemed to be approved by the Minister; but if the Licensee fails to perform the duty imposed on him by that sub-paragraph the Minister may, if he thinks fit, instead of revoking this licence in consequence of the failure, serve on the Licensee such a programme as the Minister considers that the Licensee should have submitted to him in respect of the area and period to which the rejected programme related.
(7) Where the Minister proposes to approve a programme subject to a condition in pursuance of paragraph (4)(b) of this clause or to reject a programme in pursuance of paragraph (4)(c) of this clause or to serve a programme on the Licensee in pursuance of paragraph (6) of this clause he shall before doing so—
(a) give the Licensee particulars of the proposal and an opportunity to make representations to the Minister about the technical and financial factors which the Licensee considers are relevant in connection with the proposal; and
(b) consider any such representations then made to him by the Licensee.
(8) The Licensee shall carry out any programme approved or served on him by the Minister in pursuance of this clause or, if such a programme is varied in pursuance of clause 18 of this licence, the programme as so varied except in so far as the Licensee is authorised in writing by the Minister to do otherwise or is required to do otherwise by such a condition as is mentioned in paragraph (4)(b) of this clause; but if it is necessary to carry out certain works in order to comply with provisions included in a programme by virtue of paragraph (5)(c) of this clause or provisions of a programme served on the Licensee in pursuance of paragraph (6) of this clause or provisions of a programme as varied in pursuance of clause 18 of this licence, then, notwithstanding anything in the programme as to the time when those provisions are to be complied with, the Licensee shall not be treated as having failed to comply with those provisions before the expiration of the period reasonably required for carrying out the works.
(9) In this clause “Relevant Works” means any structures and any other works whatsoever which are intended by the Licensee to be permanent and are neither designed to be moved from place to place without major dismantling nor intended by the Licensee to be used only for searching for Petroleum.
18.—(1) A consent given by the Minister in pursuance of clause 17(1) of this licence may be given subject to such conditions as are specified in the document signifying the consent and may in particular, without prejudice to the generality of the preceding provisions of this paragraph, be limited to a period so specified.
(2) Where—
(a) the Minister gives notice in respect of a programme in pursuance of paragraph (4)(a) or (b) or paragraph (6) of clause 17 of this licence or serves a programme in pursuance of the said paragraph (6); or
(b) it is determined in consequence of any reference to arbitration in the manner provided by clause 43 of this licence that the Licensee is not required by virtue of paragraph (i) of clause 17(5)(c) of this licence to submit modifications of a programme in respect of which notice of rejection containing such a statement as is mentioned in the said paragraph (i) was given by the Minister in pursuance of clause 17(4)(c) of this licence,
the Minister may give to the Licensee, with the notice given or the programme served as mentioned in sub-paragraph (a) of this paragraph or, in a case falling within sub-paragraph (b) of this paragraph, within the period of three months beginning with the date of the arbitrator’s or arbiter’s determination, a notice (hereafter in this clause referred to as a “Limitation Notice”) authorising the Minister, by a further notice given to the Licensee from time to time after the expiration of the period specified in the Limitation Notice, to provide that the programme to which the Limitation Notice relates shall have effect while the further notice is in force with the substitution for any quantity of Petroleum or any period specified in the programme in pursuance of clause 17(2)(c) of this licence of a different quantity of Petroleum or a different period specified in the further notice.
(3) A quantity or period specified in such a further notice as that to be substituted for a quantity or period which is specified in the programme in question shall be such as to secure that the expenditure to be incurred by the Licensee in complying with the further notice, in a case where an effect of the notice is to increase the quantity of Petroleum which the Licensee is required to get from the Licensed Area in any period, is less than the cost of drilling a new Well in the Licensed Area at the time when the further notice is given.
(4) Where the Minister proposes to give a Limitation Notice or any such further notice as aforesaid he shall before doing so—
(a) give the Licensee particulars of the proposal and an opportunity to make representations to the Minister about the technical and financial factors which the Licensee considers are relevant in connection with the proposal; and
(b) consider any such representations then made to him by the Licensee,
and the Minister shall not give such a further notice of which an effect is to increase the quantity of Petroleum which the Licensee is required to get from the Licensed Area during any period unless the Minister is satisfied that the notice is required by reason of a national emergency and shall not give any other such further notice as aforesaid unless he is satisfied that the notice is required in the national interest.
(5) A Limitation Notice or any such further notice as aforesaid may—
(a) specify any quantity or period by reference to such factors as the Minister thinks fit; and
(b) in the case of such a further notice, contain provisions as to—
(i) the date when the notice is to come into force;
(ii) the date when the notice is to cease to be in force,
and specify different dates in pursuance of this sub-paragraph for different provisions of the notice,
and the Minister may revoke such a further notice at a particular time by serving on the Licensee a notice in writing stating that the further notice is revoked at that time.
(6) Any question arising under clause 17 of this licence or this clause as to what is, is not or is required in the national interest or as to what is, is not or is required by reason of, a national emergency shall be determined by the Minister.
(7) The Licensee shall ensure that any conditions to which an approval is subject in pursuance of clause 17(4)(b) of this licence or to which a consent is subject in pursuance of paragraph (1) of this clause are complied with.
(8) If in respect of part of the Licensed Area—
(a) a consent has been given in pursuance of paragraph (1) of clause 17 of this licence; or
(b) the Licensee has submitted to the Minister, in accordance with a direction given by virtue of paragraph (3)(a) of that clause, a programme in pursuance of paragraph (2) of that clause—
(i) as respects which the Minister has served notice in pursuance of paragraph (4)(a) or (b) or paragraph (6) of that clause; or
(ii) in consequence of which the Minister has served a programme on the Licensee in pursuance of the said paragraph (6); or
(iii) in respect of which it has been determined in consequence of any reference to arbitration in the manner provided by clause 43 of this licence that the Licensee is not required by virtue of paragraph (5)(c)(i) of that clause to submit modifications,
paragraph (1) of clause 41 of this licence shall not authorise the Minister to revoke this licence in relation to that part of the Licensed Area in consequence of any breach or non-observance, while the consent is in force or during the period to which the programme relates, of any provision of the said clause 17 in connection with a different part of the Licensed Area.
(9) Where in consequence of any breach or non-observance by the Licensee of any provision of clause 17 of this licence the Minister has power by virtue of paragraph (1) of clause 41 of this licence to revoke this licence or, in consequence of paragraph (8) of this clause, to revoke it in respect of part only of the Licensed Area, he may if he thinks fit—
(a) in a case where he has power to revoke this licence, exercise the power in relation to such part only of the Licensed Area as he may specify; and
(b) in a case where by virtue of the said paragraph (8) he has power to revoke it in respect of part only of the Licensed Area, exercise the power in relation to such portion only of that part as he may specify,
and where in consequence of the said paragraph (8) or by virtue of the preceding provisions of this paragraph the Minister revokes this licence in respect of a part or portion of the Licensed Area, the rights granted by this licence shall cease in respect of that part or portion without prejudice to any obligation or liability imposed upon the Licensee or incurred by him under the terms of this licence.
The Petroleum Licensing (Production) (Seaward Areas) Regulations 2008