My Lords, I will now speak to government Amendments 31 and 32, 44 and 45, 47, 49 to 52, 54, 58 to 60 and 79 to 82. The majority of these make minor and technical changes to Chapters 2 and 5 of Part 2 of the Bill. Amendments 49 and 52 also provide for the effect of devolution. These amendments are either drafting improvements or are clarificatory in nature and do not alter the policy intent of the relevant clauses. Other amendments in this group make provision regarding the powers in the Bill to make regulations.
Amendments 31, 32 and 44 are intended to achieve the same aim. They make minor changes to Clauses 16 and 18 of Chapter 2 and Clause 42 of Chapter 5. They provide clarification so that there is no doubt that when the OGA gives a direction that imposes a requirement on a person, that requirement is a “petroleum-related requirement” within the meaning of Clause 41(3)(c). This makes clearer the policy intention that the OGA may give a sanction notice in respect of a breach of a requirement imposed by such a direction.
Amendments 47 and 52 are intended to achieve the same aim. They make minor changes to Clauses 46 and 47 of Chapter 5 to clarify the policy intention that the OGA should be able to give revocation notices and operator removal notices to a licence holder and an operator only in respect of a breach of a “petroleum-related requirement” imposed on the licence holder or operator in that capacity.
The Petroleum Act 1998 imposes a duty to act in accordance with the strategy to maximise economic recovery of United Kingdom petroleum. This acts upon various categories of persons, including licensees and owners of upstream petroleum infrastructure. Where a person acts in more than one such capacity, the amendment makes it clear that the OGA cannot, for example, give a licence revocation notice to an owner of upstream petroleum infrastructure in respect of a breach of the duty to act in accordance with the strategy imposed on the person as an owner of upstream petroleum infrastructure if that person also happens to be a licence holder.
Amendments 49 and 54 are intended to achieve the same aim. They amend Clauses 46 and 47 of the Bill to prevent the OGA giving an operator removal notice or revocation notice in relation to licences which, on the date the notice is given, the OGA would not have the power to grant. This amendment removes the possibility for the OGA to revoke a licence or remove the operator of a licence in circumstances where the OGA does not have the power to grant the licence. This reflects the proposed devolution through the Scotland Bill and the forthcoming Wales Bill—to be published in draft form tomorrow—of the licence-granting functions in respect of onshore licences under the Petroleum Act 1998.
Amendment 50 makes minor changes to Clause 46 to ensure that existing obligations binding a licensee remain in cases where the OGA issues a revocation notice under Clause 46. The amendment provides clarification and ensures certainty that the provisions of licences will apply following revocation of the licence under Clause 46 in the same way as they would apply if the licence were revoked under the terms of the licence. It does not alter the policy intention.
Amendment 51 makes a minor drafting change to the wording of Clause 46(8) for consistency with the wording of Clause 46(4). There is no change of policy. Amendment 58 makes a minor change to Clause 51 to place it beyond doubt that on an appeal against a revocation notice or an operator removal notice which is given by the OGA, the tribunal’s powers to vary the notice are limited to varying the date on which revocation of the licence or removal of the operator takes effect.
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Amendments 45, 59 and 60 are intended to clarify that if the OGA gives a financial penalty notice which does not require compliance with a “petroleum-related requirement” within a specified period—for example, because the requirement has already been remedied at the time the notice is given—no further sanction notice may be given in respect of the breach. This merely clarifies the existing policy intention.
After speaking to Amendments 79, 80 and 81, which deal with information disclosure, I will speak to Amendment 82. These first amendments modify Clause 67, which makes provision regarding the powers in the Bill to make regulations. Amendments 79 and 80 are consequential changes that are required to deal with the fact that the power to make regulations permitting publication of information obtained under Chapter 3—which deals with “information and samples” —have now been consolidated within the new Chapter 6.
Amendment 81 reflects Her Majesty’s Government’s intention that any changes to the list of bodies to which the Oil and Gas Authority may disclose information or to the categories of information that may be disclosed under Amendment 64 must be made by regulation approved by each House of Parliament.
On Amendment 82, currently the Bill contains provisions which require the Secretary of State to consult the OGA before exercising her power to make certain regulations. This is an important requirement, which ensures that the views of the OGA as an independent regulator are taken into account. However, this requirement would initially be problematic and impractical, because the Secretary of State would be under an obligation to consult the OGA in circumstances where it does not have any functions or staff, and it would also cause delay.
This amendment seeks to disapply the consultation requirement to any first exercise of each of the Secretary of State’s powers to make regulations that occurs within one year, beginning with the date on which the provision establishing the OGA comes into force. We do not think that disapplying this requirement would be a problem, because the OGA would initially be an executive agency of the department—that is, it is legally indistinct from the department. Officials in the OGA would therefore still have a key role in developing the policy which will be given effect by the regulations. I beg to move.