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The Petroleum (Transfer of Functions) Regulations 2016

Sections21
2016 No. 898

Petroleum

The Petroleum (Transfer of Functions) Regulations 2016

Made10th September 2016
Coming into force in accordance with regulation 1

The Secretary of State for Energy and Climate Change makes the following Regulations in exercise of the powers conferred by sections 2(2), (3)(b) and (4)(a) and 82(3) of the Energy Act 20161.

In accordance with section 82(4) of the Energy Act 2016 a draft of this instrument was laid before Parliament and approved by a resolution of each House of Parliament.

PART 1 Introductory

1 Citation, commencement and extent

1 These Regulations may be cited as the Petroleum (Transfer of Functions) Regulations 2016.
2 Parts 1, 2 and 4 come into force on the twenty-first day after the day on which these Regulations are made.
3 Part 3 comes into force immediately after the commencement of section 48 of the Scotland Act 20162.
4 An amendment made by these Regulations has the same extent as the provision to which it relates.

PART 2 Provisions transferring the Secretary of State’s licensing functions under the Petroleum Act 1998 to the OGA until the transfer of certain functions to the Scottish Ministers

2 Petroleum Act 1998

1 Until the commencement of section 48 of the Scotland Act 2016, Part 1 of the Petroleum Act 19983 has effect as if it were amended as follows.
2 Section 3 (licences to search and bore for and get petroleum) has effect as if—
a in subsection (1)—
i for “Secretary of State” there were substituted “OGA”, and
ii for “he” there were substituted “it”,
b in subsection (3), for “Secretary of State” (in both places) there were substituted “OGA”.
3 Section 4(1)(e) (licences: further provisions) has effect as if for “he” there were substituted “the OGA”.
4 Section 5(9)4 (existing licences) has effect as if for “Secretary of State” (in both places) there were substituted “OGA”.
5 Section 5A5 (rights transferred without consent) has effect as if for “Secretary of State” (in each place) there were substituted “OGA”.
6 Section 5B(1)6 (information) has effect as if for “Secretary of State” (in both places) there were substituted “OGA”.
7 Section 7(2) (ancillary rights) has effect as if—
a at the end of paragraph (b) “and” were omitted, and
b at the end of paragraph (c) there were inserted—
.

PART 3 Consequential amendments to the Petroleum Act 1998 having effect on the transfer of certain functions to the Scottish Ministers

3 Petroleum Act 1998

1 Part 1 of the Petroleum Act 1998 is amended as follows.
2 In section 3 (licences to search and bore for and get petroleum)—
a in subsection (1)7, for “Minister” (in both places) substitute “authority”, and
b in subsection (3)8—
i for “Secretary of State” substitute “OGA”, and
ii for “Minister” substitute “authority”.
3 In section 4 (licences: further provisions)—
a in subsection (1)(e)9, for “he” substitute “the appropriate authority”, and
b after subsection (3)10 insert—
.
4 In section 5(9)11 (existing licences), for “Minister” (in both places) substitute “authority”.
5 In section 5A12 (rights transferred without consent), for “Minister” (in each place) substitute “authority”.
6 In section 5B(1)13 (information), for “Minister” (in both places) substitute “authority”.
7 In section 7(2)(d)14 (ancillary rights), for the words following “included references to” substitute—
.
8 In section 8(1)15 (power to inspect plans of mines), for “Minister” (in both places) substitute “authority”.
9 In section 8A16 (interpretation), after subsection (1) insert—
.

PART 4 Transfer to the OGA of the Secretary of State’s functions under oil taxation legislation, and other consequential amendments

4 Oil Taxation Act 1975

1 The Oil Taxation Act 197517 is amended as follows.
2 In section 2(7)(c) (assessable profits and allowable losses), for “Secretary of State” substitute “OGA”.
3 In section 3 (allowance of general expenditure), for “Secretary of State” (in each place) substitute “OGA”.
4 In section 5A18 (allowance of exploration and appraisal expenditure), for “Secretary of State” (in each place) substitute “OGA”.
5 In section 10(3B)19 (modification of Part 1)—
a for “Secretary of State” substitute “OGA”, and
b for “him” substitute “it”.
6 In section 12 (interpretation of Part 1)—
a in subsection (1)—
i in paragraph (b) of the definition of “licensee”, for “Secretary of State” substitute “OGA”, and
ii at the appropriate place insert—
,
b in subsection (1A)(a)(ii)20, for “Secretary of State” substitute “OGA”, and
c in subsection (4), after “Secretary of State” insert “or the OGA”.
7 In Schedule 1 (determination of oil fields), in paragraph 1(2), for “Secretary of State” (in each place) substitute “OGA”.
8 In Schedule 2 (management and collection of petroleum revenue tax), in paragraph 2(2)(c) and (3)(d) for “Secretary of State” substitute “OGA”.
9 In Schedule 3 (petroleum revenue tax: miscellaneous provisions), in paragraph 4, for “Secretary of State” substitute “OGA”.

5 Finance Act 1981

1 Section 118 of the Finance Act 198121 (licence payments other than royalties) is amended as follows.
2 In subsection (1)—
a in paragraph (a), after “Secretary of State” insert “or the OGA”, and
b in paragraph (b), for “Secretary of State” substitute “OGA”.
3 In subsection (2)—
a after “Secretary of State” (in the first place) insert “or the OGA”,
b for “Secretary of State” (in the second place) substitute “OGA”, and
c in paragraph (b), for “Secretary of State” substitute “OGA”.

6 Finance Act 1982

1 The Finance Act 198222 is amended as follows.
2 In section 140 (increase of gross profit by reference to royalties in kind), for “Secretary of State” (in each place) substitute “OGA”.
3 In Schedule 19 (supplementary provisions relating to APRT), in paragraph 3(1)(a)23, for “Secretary of State” substitute “OGA”.

7 Finance Act 1983

In section 36(3)(b) of the Finance Act 198324 (increased oil allowance for certain new fields), for “Secretary of State” substitute “OGA”.

8 Finance Act 1984

In section 113(5)(b) of the Finance Act 198425 (restriction on PRT reliefs), for “Secretary of State” substitute “OGA”.

9 Finance Act 1987

1 The Finance Act 198726 is amended as follows.
2 In Schedule 10 (nomination scheme for disposals and appropriations), in paragraph 1(3)27—
a for “Secretary of State” substitute “OGA”, and
b for “him” substitute “it”.
3 In Part 3 of Schedule 14 (relevant new fields and associated companies), in paragraph 8(2)(b), for “Secretary of State” substitute “OGA”.

10 Finance Act 1988

In section 138(3)(b) of the Finance Act 198828 (reduced oil allowance for certain Southern Basin and onshore fields), for “Secretary of State” substitute “OGA”.

11 Taxation of Chargeable Gains Act 1992

In section 196 of the Taxation of Chargeable Gains Act 199229 (definitions relating to UK licences), for “Secretary of State” (in each place) substitute “Oil and Gas Authority”.

12 Finance Act 1993

In section 185 of the Finance Act 199330 (abolition of petroleum revenue tax for oil fields with development consent on or after 16th March 1993), in subsections (1C)(a) and (b) and (2)(b)31, for “Secretary of State” substitute “OGA”.

13 Petroleum Act 1998

1 Part 1 of the Petroleum Act 1998 is amended as follows.
2 In section 4(4) (licences: notice of grant)—
a for “Secretary of State” substitute “OGA”,
b for “the London Gazette” substitute “such manner as it thinks appropriate”, and
c omit the words from “and, if that area” to the end.
3 In section 4A(1)32 (onshore hydraulic fracturing: safeguards), for “Secretary of State” in the first place substitute “OGA”.
4 In section 4B(8)33 (section 4A: supplementary provisions), in the definition of “well consent”, for “Secretary of State” substitute “OGA”.

14 Capital Allowances Act 2001

In section 556(2)(a) of the Capital Allowances Act 200134 (disposals of oil licences: definitions), for “Secretary of State” substitute “Oil and Gas Authority”.

15 Corporation Tax Act 2010

1 The Corporation Tax Act 201035 is amended as follows.
2 In section 278 (general definitions for Part 8), at the appropriate place insert—
.
3 In section 332DA(5)36 (restriction where field qualified for field allowances as new field), for “Secretary of State” substitute “OGA”.
4 In section 332DB(5) (restriction where project in additionally-developed field qualified for field allowance), for “Secretary of State” substitute “OGA”.
5 In section 356IB(2)37 (authorisation of development: oil fields), in paragraph (a) of the definition of “national authority”, for “Secretary of State” substitute “OGA”.
6 In section 356J(4)38, (authorisation of development: drilling and extraction sites), in paragraph (a) of the definition of “national authority”, for “Secretary of State” substitute “OGA”.
7 In section 356JD39 (meaning of “cluster area”), for “Secretary of State” (in each place) substitute “OGA”.
8 In Schedule 4 (index of defined expressions), at the appropriate place, insert—

16 Scotland Act 2016

1 Section 48 of the Scotland Act 201640 (onshore petroleum: consequential amendments) is amended as follows.
2 In subsection (19), for ““Secretary of State”” substitute ““OGA””.
3 In subsection (20), for “Secretary of State” (in each place) substitute “OGA”.

Footnotes

  1. 1
    2016 c. 20.
  2. 2
    2016 c. 11.
  3. 3
    1998 c. 17.
  4. 4
    Section 5(9) was amended by the Energy Act 2008 (c. 32), Schedule 5, paragraph 8 and the Land Registration etc. (Scotland) Act 2012 (2012 asp 5), Schedule 5, paragraph 36.
  5. 5
    Section 5A was inserted by the Energy Act 2008, section 76.
  6. 6
    Section 5B was inserted by the Energy Act 2008, section 76.
  7. 7
    On the commencement of section 48 of the Scotland Act 2016, section 3(1) is amended by section 48(3) of that Act.
  8. 8
    On the commencement of section 48 of the Scotland Act 2016, section 3(3) is amended by section 48(4) of that Act.
  9. 9
    On the commencement of section 48 of the Scotland Act 2016, section 4(1) is amended by section 48(6) of that Act.
  10. 10
    On the commencement of section 48 of the Scotland Act 2016, section 4(3) is amended by section 48(8) of that Act.
  11. 11
    Section 5(9) was amended by the Energy Act 2008, Schedule 5, paragraph 8, the Land Registration etc. (Scotland) Act 2012, Schedule 5, paragraph 36 and on the commencement of section 48 of the Scotland Act 2016, it is amended by section 48(11) of that Act.
  12. 12
    Section 5A was inserted by the Energy Act 2008, section 76 and on the commencement of section 48 of the Scotland Act 2016, it is amended by section 48(12) of that Act.
  13. 13
    Section 5B was inserted by the Energy Act 2008, section 76 and on the commencement of section 48 of the Scotland Act 2016, it is amended by section 48(13) of that Act.
  14. 14
    On the commencement of section 48 of the Scotland Act 2016, section 7 is amended by section 48(14) of that Act.
  15. 15
    On the commencement of section 48 of the Scotland Act 2016, section 8 is amended by section 48(15) of that Act.
  16. 16
    On the commencement of section 48 of the Scotland Act 2016, section 8A is inserted by section 48(16) of that Act.
  17. 17
    1975 c. 22. Section 12 and Schedules 1, 2 and 3 were amended by the Petroleum Act 1998, Schedule 4, paragraph 7.
  18. 18
    Section 5A was inserted by the Finance Act 1983 (c. 28), section 37(1) and Schedule 8, Part 1.
  19. 19
    Section 10(3B) was inserted by the Finance Act 2001 (c. 9), section 103(1).
  20. 20
    Subsection (1A) was inserted by the Finance Act 2009 (c. 10), Schedule 42(1), paragraph 2(3).
  21. 21
    1981 c. 35.
  22. 22
    1982 c. 39.
  23. 23
    Paragraph 3 was amended by the Finance Act 1999 (c. 16), section 99.
  24. 24
    1983 c. 28.
  25. 25
    1984 c. 43.
  26. 26
    1987 c. 16.
  27. 27
    Paragraph 1(3) was inserted by the Finance (No. 2) Act 1987 (c. 51), section 101(1) and Schedule 8, paragraph 1.
  28. 28
    1988 c. 39.
  29. 29
    1992 c. 12. Amendments have been made to section 196 which are not relevant to the amendments made by this regulation.
  30. 30
    1993 c. 34.
  31. 31
    Subsection (1C) was inserted by the Finance Act 2007 (c. 11), section 102.
  32. 32
    Section 4A was inserted by the Infrastructure Act 2015 (c. 7), section 50.
  33. 33
    Section 4B was inserted by the Infrastructure Act 2015, section 50.
  34. 34
    2001 c. 2.
  35. 35
    2010 c. 4.
  36. 36
    Sections 332DA and 332DB were inserted by the Finance Act 2015 (c. 11), Schedule 12, paragraphs 1 and 2.
  37. 37
    Section 356IB was inserted by the Finance Act 2015, Schedule 14, paragraphs 1 and 7.
  38. 38
    Section 356J was inserted by the Finance Act 2014 (c. 26), Schedule 15, paragraphs 1 and 3.
  39. 39
    Section 356JD was inserted by the Finance Act 2015, Schedule 13, paragraphs 1 and 2.
  40. 40
    2016 c. 11.