
2016 No. 904
Energy
The Oil and Gas Authority (Fees) Regulations 2016
Made 7th September 2016
Laid before Parliament 12th September 2016
Coming into force 1st October 2016
The Secretary of State for Business, Energy and Industrial Strategy makes the following Regulations in exercise of the powers conferred by section 12(1), (2), (5) and (6) of the Energy Act 2016.
Citation and commencement
1 
These Regulations may be cited as the Oil and Gas Authority (Fees) Regulations 2016 and come into force on 1st October 2016.
Application
1A 

(1) These Regulations do not apply in relation to a petroleum licence in respect of an area within the Scottish onshore area or the Welsh onshore area.
(2) In this regulation,  “Scottish onshore area” has the meaning given in section 8A(3) of the Petroleum Act 1998 and “Welsh onshore area” has the meaning given in section 8A(5) of that Act.
Interpretation
2 
In these Regulations—
 “the 1998 Act” means the Petroleum Act 1998;
 “the 2008 Act” means the Energy Act 2008;
 “the Applications Regulations” means the Petroleum Licensing (Applications) Regulations 2015;
 “the Offshore Safety Directive Regulations” means the Offshore Petroleum Licensing (Offshore Safety Directive) Regulations 2015;
 “the 2016 Act” means the Energy Act 2016;
 “carbon dioxide appraisal and storage licence” means a licence granted under section 18 of the 2008 Act (licences) in respect of an activity within section 17(2) of that Act (prohibition on unlicensed activities);
 “carbon dioxide storage monitoring plan” means a monitoring plan within the meaning given by regulation 7(5) of the Storage of Carbon Dioxide (Licensing etc.) Regulations 2010;
 “carbon dioxide storage permit” means a storage permit within the meaning given by regulation 1(3) of the Storage of Carbon Dioxide (Licensing etc.) Regulations 2010;
 “carbon dioxide storage proposal” means a proposal for the storage of carbon dioxide and any associated works submitted pursuant to a carbon dioxide appraisal and storage licence;
 “carbon dioxide storage work programme” means the work programme set out in a schedule to a carbon dioxide appraisal and storage licence;
 “category 1 pipeline works authorisation variation” means an application to vary an existing pipeline works authorisation where the variation relates to the installation of a new pipeline that is greater than 500 metres in length and situated entirely or partially outside a safety zone;
 “category 2 pipeline works authorisation variation” means an application to vary an existing pipeline works authorisation where the variation relates to—
(i) the installation of a new pipeline that is 500 metres or less in length or entirely within a safety zone; or
(ii) the partial or full removal from the seabed, or the taking out of use, of an existing pipeline prior to the OGA  receiving confirmation in writing of the last day of production from a relevant petroleum field or part of a petroleum field;
 “change in control” means, in relation to a licensee, a change in control under—
(a) clause 37A of Schedule 3 to the Petroleum Production (Landward Areas) Regulations 1995;
(b) any of the following clauses in the Petroleum (Current Model Clauses) Order 1999—
(i) clause 38A of Part 2 of Schedule 2;
(ii) clause 36A of Part 2 of Schedule 3;
(iii) clause 37A of Part 2 of Schedule 4;
(iv) clause 39A of Part 2 of Schedule 5;
(v) clause 38A of Part 2 of Schedule 6;
(vi) clause 35A of Part 2 of Schedule 8;
(vii) clause 41A of Part 2 of Schedule 9;
(viii) clause 41A of Part 2 of Schedule 10;
(ix) clause 32A of Part 2 of Schedule 13;
(x) clause 34A of Part 2 of Schedule 14;
(c) any of the following clauses in the Petroleum Licensing (Exploration and Production) (Seaward and Landward Areas) Regulations 2004—
(i) clause 37A of Schedule 2;
(ii) clause 38A of Schedule 3;
(iii) clause 36A of Schedule 4;
(iv) clause 35A of Schedule 6;
(d) clause 40A of the Schedule to the Petroleum Licensing (Production) (Seaward Areas) Regulations 2008;
(e) clause 40A of Schedule 2 to the Petroleum Licensing (Exploration and Production) (Landward Areas) Regulations 2014; or
(f) paragraph 6 of Schedule 1 to the Storage of Carbon Dioxide (Licensing etc.) Regulations 2010;
 “development and production programme” means a programme or proposal  submitted pursuant to a petroleum licence setting out the measures proposed to be taken in connection with the development and production of a petroleum field;
 “development area proposal” means a proposal submitted pursuant to a petroleum exploration and development licence defining the geographic locations within a petroleum field where the licensee proposes to undertake development and production including, where relevant, a plan setting out the activities to be carried out;
 “development plan” means a plan submitted pursuant to a gas storage licence setting out the measures proposed to be taken in connection with the development of a gas storage field;
 “drill stem test” means any well test that is not an extended well test;
 “extended well test” means any well test which—
(a) has a cumulative duration of fluid production of 96 hours or more; or
(b) produces a total of more than 2,000 tonnes of oil and, for these purposes, when oil is in a gaseous state 43,000 standard cubic feet is counted as equivalent to one tonne;
 “gas storage licence” means a licence granted under section 4 of the 2008 Act (licences) in respect of any activity within section 2(3) of that Act (prohibition on unlicensed activities);
 “licensee” means the holder of a relevant licence;
 “offshore installation” has the meaning given in section 44 of the 1998 Act;
 “petroleum exploration and development licence” has the meaning given in regulation 2 of the Applications Regulations;
 “petroleum licence” means a licence granted under section 3 of the 1998 Act (searching for, boring and getting petroleum) or under section 2 of the Petroleum (Production) Act 1934 (licences to search for and get petroleum);
 “pipeline deposit proposal” means a proposal—
(a) to place any material on the seabed for the protection or support of a pipeline during its construction; or
(b) for the maintenance of a pipeline,where that proposal is submitted pursuant to a pipeline works authorisation;
 “pipeline works authorisation” means an authorisation given by the OGA in accordance with section 15 of the 1998 Act (submarine pipelines: authorisations);
 “relevant licence” means, as appropriate, a carbon dioxide appraisal and storage licence, a gas storage licence or a petroleum licence;
 “retention area proposal” means a proposal submitted pursuant to a petroleum exploration and development licence defining the geographic locations where the licensee proposes to undertake exploration and appraisal activities;
 “safety zone” means a safety zone established under section 21 or section 22 of the Petroleum Act 1987;
 “well” includes borehole;
 “well or installation operator” means a person appointed in accordance with regulation 5 of the Offshore Safety Directive Regulations (appointment of operators by offshore licensees) to conduct the planning or execution of well operations or offshore petroleum operations other than well operations;
 “well suspension” means the suspension of the use of a well such that it may be re-used for the purpose of drilling or other works;
 “well test” means a test of the production from a well where the petroleum, water or any other fluid produced or used in such production is not conveyed to a permanent offshore installation;
 “work programme” means a programme set out in a schedule to a petroleum licence which sets out the prospecting to be undertaken during the initial term, including any geological survey by any physical or chemical means and any test drilling.
Applications of a prescribed description
3 

(1) The following applications are prescribed for the purposes of section 12(1)(d) of the 2016 Act (powers of the OGA to charge fees)—
(a) an application for consent to a development and production programme;
(b) an application for consent to the methodology proposed for the measurement of petroleum;
(c) an application for consent to drill a primary well;
(d) an application for consent to drill a sidetrack well branching off from the principal well to a target location different from that of the principal well;
(e) an application for consent to fit or refit equipment in a well for the purpose of enabling hydrocarbon production or injection;
(f) an application for consent to get petroleum from a licensed area;
(g) an application for a variation of a consent to get petroleum from a licensed area;
(h) an application for consent to flare petroleum from a well;
(i) an application for a variation of a consent to flare petroleum from a well;
(j) an application for consent to a well suspension;
(k) an application for consent to put back into use any well subject to a well suspension;
(l) an application for consent to abandon a well permanently;
(m) an application for consent to a change of licensee of a petroleum licence;
(n) an application for consent to a change of the beneficiary of rights granted by a petroleum licence; and
(o) an application for approval of the appointment of an operator under a petroleum licence;
(p) an application for approval of the appointment of a well or installation operator under regulation 5 of the Offshore Safety Directive Regulations where approval is granted in accordance with paragraph (1)(a) of that regulation;
(q) an application for consent to a retention area proposal where consent is granted;
(r) an application for consent to a development area proposal where consent is granted;
(s) an application for consent to extend the initial, second or final term of a petroleum licence;
(t) an application for consent to extend the final phase of the initial term of a petroleum licence;
(u) an application for consent to amend a work programme;
(v) an application for consent to a drill stem test;
(w) an application for consent to an extended well test;
(x) an application for consent to a change in control.
(2) An application for consent to a pipeline deposit proposal is prescribed for the purposes of section 12(1)(e) of the 2016 Act.
(3) The following applications are prescribed for the purposes of section 12(1)(h) of the 2016 Act—
(a) an application for consent to a carbon dioxide storage proposal; and
(b) an application for consent to a development plan;
(c) an application for consent to a change of licensee of a carbon dioxide appraisal and storage licence;
(d) an application for consent to a change of the beneficiary of rights under a carbon dioxide appraisal and storage licence;
(e) an application for consent to appoint an exploration operator under a carbon dioxide appraisal and storage licence;
(f) an application for consent to appoint a storage operator under a carbon dioxide appraisal and storage licence;
(g) an application for consent to extend the initial or appraisal term of a carbon dioxide appraisal and storage licence;
(h) an application for consent to amend a carbon dioxide storage permit;
(i) an application for consent to review and amend a carbon dioxide storage monitoring plan;
(j) an application for consent to amend a carbon dioxide storage work programme;
(k) an application for consent to a change in control.
... Fees payable for consents and pipeline works authorisations
4 

(1) A licensee must pay a fee where the licensee applies to the OGA for consent to—
(a) a carbon dioxide storage proposal;
(b) a development and production programme; ...
(c) a development plan.
(d) amend a carbon dioxide storage permit;
(e) review and amend a carbon dioxide storage monitoring plan; ...
(f) amend a carbon dioxide storage work programme; or
(g) a change in control.
(2) A person must pay a fee where the person applies to the OGA for—
(a) a consent to a pipeline deposit proposal; ...
(b) a pipeline works authorisation;
(c) ... a variation to an existing pipeline works authorisation;
(d) a consent to get petroleum from a licensed area;
(e) a variation of a consent to get petroleum from a licensed area;
(f) a consent to flare or vent petroleum from a well; or
(g) a variation of a consent to flare or vent petroleum from a well.
(3) Subject to paragraphs (7) and (10), the amount of the fee under paragraph (1), and for a complex application under paragraph (2), is determined by the formula—££670×A×B
(4) In paragraph (3), reference to—
 A is the number of days; and
 B is the number of officers,... required to determine the application.
(5) The licensee or person must:
(a) pay any fee payable under paragraph (1), or paragraph (2) for a complex application, within 30 days of the OGA notifying the licensee or person of the determination of the application unless paragraphs (7) or (10) apply;
(b) where paragraphs (7) or (10) apply, pay any fee payable under paragraph (1) within 30 days of the OGA notifying the licensee or person of the amount due, unless the OGA notifies the licensee or person, as appropriate, in writing that the licensee or person may pay the fee at a later date;
(c) pay any fee payable under paragraph (2), other than for a complex application, at the time of making the application; and
(d) in relation to paragraph (16) pay any additional fee payable under paragraph (2) within 30 days of the OGA notifying the licensee or person of the determination of the application,
unless the OGA notifies the licensee or person, as appropriate, in writing that the licensee or person may pay the fee at a later date.
(6) In paragraph (4), “officer” means a person engaged by the OGA to carry out the function in respect of which the relevant fee is payable.
(7) If a licensee who has applied for consent to a development and production programme notifies the OGA in writing, before the OGA has determined the application, that the licensee no longer intends to proceed with the application, the amount of the fee is to be determined in accordance with paragraph 8.
(8) The amount of the fee under paragraph (7) is determined by the formula—££670×A×B
(9) In paragraph (8), reference to—
 A is the number of days; and
 B is the number of officers working to determine an application for consent to a development and production programme,
 up to and including the date notification is received by the OGA.
(10) If the determination of an application for consent to a development and production programme by the OGA takes longer than 6 months, the OGA may charge the fee for such application in instalments every six months, determined in accordance with paragraph (11), following receipt by the OGA of the application until its determination, after which the OGA will charge any remaining fee.
(11) The amount of the fee under paragraph (10) is determined by the formula—££670×A×B
(12) In paragraph (11), reference to—
 A is the number of days; and
 B is the number of officers working to determine an application for consent to a development and production programme,
 in the relevant period under paragraph (10).
(13) Subject to paragraphs (14) and (16), the amount of the fee under paragraph (2) for an application for consent to, or an authorisation for, an activity or matter listed in the first column of the table below is the corresponding fee set out in the second column of the table.

Application for consent to or authorisation for activity or matter Fee Payable
Pipeline works authorisation £3,330
Category 1 pipeline works authorisation variation £3,330
Category 2 pipeline works authorisation variation £2,030
Variation of holder, user, owner or Operator of a pipeline under a pipeline works authorisation £2,030
Consent to a pipeline deposit proposal £1,730
Pipeline works authorisation and deposit consents granted following  the OGA receiving confirmation in writing of the last day of production from the relevant petroleum field £2,030
Consent to get petroleum from a licensed area  £1,200
Variation of a consent to get petroleum from a licensed area £1,200
Consent to flare or vent petroleum from a well £940
Variation of a consent to flare or vent petroleum from a well £940
(14) If the OGA agrees to determine an application for an activity or matter listed in the first column of the table in paragraph (13) on an expedited basis, the amount of the fee is double the corresponding fee set out in the second column of the table.
(15) In this regulation, a “complex application” is an application of the type set out in paragraph (2) and that the OGA considers will require—
(a) in the case of sub-paragraphs (a) to (c) of paragraph (2), more than four days for an officer to determine;
(b) in the case of sub-paragraphs (d) to (g) of paragraph (2), more than two days for an officer to determine.
(16) The OGA will notify, in writing, the person making an application—
(a) within seven days of receipt of the application if it determines the application to be a complex application; or
(b) within seven days of the OGA making a determination that it is a complex application, if the OGA makes such a determination at a later date,
and credit the fee paid by the licensee or person at the time of making the application against the amount of the fee payable by the licensee or person for a complex application under paragraph (2).
Requests to determine fees under regulation 4
5 
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Fixed fees payable for other consents
6 

(1) A licensee who makes an application to the OGA for consent to an activity or matter listed in the first column of the table following paragraph  (3)  must pay the corresponding fee in the second column of that table.
(2) Subject to paragraph (3), the licensee must pay any fee payable under paragraph (1) at the time of making the application, unless the OGA notifies the licensee in writing that the fee may be paid at a later date.
(3) Where the fee payable under paragraph (1) is for one of the following applications, the licensee must pay the fee within 30 days of the OGA notifying the licensee of the determination of the application unless the OGA notifies the licensee in writing that the licensee may pay the fee at a later date—
(a) an application for consent to extend the initial, second or final term of a petroleum licence;
(b) an application for consent to extend the final phase of the initial term of a petroleum licence;
(c) an application for consent to amend a work programme.

Fees for other consentsActivity or matter requiring consent Fee Payable
Methodology proposed for the measurement of petroleum £1,330
Drill a primary well £930
Drill a sidetrack well branching off from the principal well to a target location different from that of the principal well £840
Fit or refit equipment in a well for the purpose of enabling hydrocarbon production or injection £370
. . . . . .
. . . . . .
. . . . . .
. . . . . .
Well suspension £780
Put back into use any well subject to a well suspension £350
Abandon a well permanently £1,080
Change of licensee of a petroleum licence £1,450
Change of the beneficiary of rights granted by a petroleum licence £1,450
Appointment of an operator under a petroleum licence £1,270
Extension of the initial, second or final term of a petroleum licence £5,660
Extension of the final phase of the initial term of a petroleum licence £5,660
Amendment of a work programme £5,660
Change of licensee of a carbon dioxide appraisal and storage licence  £1,400
Change of the beneficiary of rights granted by a carbon dioxide appraisal and storage licence £1,400
Appointment of an exploration operator under a carbon dioxide appraisal and storage licence £1,210
Appointment of a storage operator under a carbon dioxide appraisal and storage licence £1,210
Extension of the initial or appraisal term of a carbon dioxide appraisal and storage licence £5,670
Flare or vent natural gas from a relevant oil processing facility or a relevant gas processing facility  £350
Drill stem test £280
Extended well test £930
(4) In this regulation, “relevant gas processing facility” and “relevant oil processing facility” have the meanings given in sections 82(3) and 90 of the Energy Act 2011.
Fees payable for consent to retention or development area proposals
6A. 

(1) A licensee must pay a fee of £1,250 where the licensee applies to the OGA for consent to a retention area proposal or a development area proposal and the OGA grants consent.
(2) The licensee must pay any fee payable under paragraph (1) within 30 days of the OGA notifying the licensee of the grant of consent unless the OGA notifies the licensee in writing that the licensee may pay the fee at a later date.
Fees payable for determination of oil fields
6B. 

(1) A licensee must pay a fee of £5,340 for the determination of an oil field under Schedule 1 to the Oil Taxation Act 1975 (determination of oil fields).
(2) The licensee must pay any fee payable under paragraph (1) within 30 days of the OGA notifying the licensee of the determination unless the OGA notifies the licensee in writing that the licensee may pay the fee at a later date.
Fees payable for metering examinations and tests
6C. 

(1) For any examination or test of an appliance used to measure petroleum or carbon dioxide  listed in the first column of the table following paragraph (3) which is undertaken by or at the direction of the OGA, the licensee must pay the corresponding fee in the second column of that table.
(2) The licensee must pay any fee payable under paragraph (1) within 30 days of the OGA notifying the licensee of the amount due unless the OGA notifies the licensee in writing that the licensee may pay the fee at a later date.
(3) In the table, “seaward area production licence” has the meaning given in regulation 2 of the Applications Regulations.

Fees payable for metering examinations or testsType of metering examination or test Fee payable
Metering examination under a seaward area production licence £3,080

Metering examination under a petroleum
exploration and development licence
 £3,740
Meter flow calibration for measurement of petroleum £2,030
Measurement of carbon dioxide injection flow rate  £3,740
Fees payable for approval of well or installation operators
6D. 

(1) A licensee must pay a fee where—
(a) the licensee applies to the OGA for approval of the appointment of a well or installation operator;
(b) the OGA consults the competent authority under regulation 5(3) of the Offshore Safety Directive Regulations; and
(c) the OGA approves the application in accordance with regulation 5(1)(a) of those regulations.
(2) The amount of the fee under paragraph (1) is the sum of the fees charged by the competent authority under the following provisions when providing advice in accordance with the competent authority’s functions as a consultee—
(a) section 13(6) of the Health and Safety at Work Act 1974 (powers of the executive), and
(b) regulation 13A of the Offshore Safety Directive Regulations (fees).
(3) The licensee must pay any fee payable under paragraph (1) within 30 days of the OGA notifying the licensee of the determination of the application unless the OGA notifies the licensee in writing that the licensee may pay the fee at a later date.
(4) Any fee payable under paragraph (1) is in addition to the fee payable for appointment of an operator under a petroleum licence under regulation 6.
(5) In this regulation, “competent authority” means the Health and Safety Executive and the Secretary of State, acting jointly.
Fees payable for applications for petroleum licences
7 

(1) A person who makes an application for a petroleum licence listed in the first column of the table following paragraph (2) must pay the corresponding fee in the second column of that table.
(2) The terms referred to in the table have the meaning given in regulation 2 of the Petroleum Licensing (Applications) Regulations 2015 (interpretation).

Fees for petroleum licencesType of licence Fee payable
Landward petroleum exploration licence £2,460
Seaward petroleum exploration licence £2,460
Methane drainage licence £200
Petroleum exploration and development licence £6,570
Seaward area production licence £10,030
Fees payable for applications for gas storage licences
8 

(1) Subject to paragraph (2), a person who makes an application for a gas storage licence must pay a fee of £9,860.
(2) Paragraph (1) does not apply to an application for an exploration licence.
(3) The person must pay any fee payable under paragraph (1) at the time of making the application.
(4) In this regulation—
 “controlled place” has the meaning given in section 2(4) of the 2008 Act (prohibition on unlicensed activities);
 “exploration licence” means a licence to—
(a) explore any controlled place with a view to carrying on an activity within section 2(3)(a) to (d) of the 2008 Act, and
(b) establish or maintain an installation in a controlled place for the purpose of such exploration;
 “installation” has the meaning given in section 16 of the 2008 Act (interpretation).
Fees payable for applications for carbon dioxide appraisal and storage licences
9 

(1) Subject to paragraph (2), a person who makes an application for a carbon dioxide appraisal and storage licence in respect of—
(a) activities within section 17(2)(a) to (c) of the 2008 Act (prohibition on unlicensed activities) and a controlled place which is not in, under or over the territorial sea adjacent to Scotland; or
(b) the establishment or maintenance in a controlled place which is not in, under or over the territorial sea adjacent to Scotland of an installation for the purposes of activities within section 17(2) of the 2008 Act,
must pay a fee of £19,710.
(2) Paragraph (1) does not apply to an application for a general exploration licence.
(3) The person must pay any fee payable under paragraph (1) at the time of making the application.
(4) In this regulation—
 “controlled place” has the meaning given in section 17(3), (3A) and (4) of the 2008 Act;
 “general exploration licence” has the meaning given in regulation 1(3) of the Storage of Carbon Dioxide (Licensing etc.) Regulations 2010 (interpretation);
 “installation” has the meaning given in section 35 of the 2008 Act (interpretation).
Fees: general
10 

(1) A fee payable under these Regulations must be paid—
(a) to the OGA; and
(b) in such manner as the OGA from time to time determines.
(2) A fee is not paid under these Regulations until the OGA receives that fee in cleared funds.
Neville-Rolfe
Minister of State for Energy and Intellectual Property
Department for Business, Energy and Industrial Strategy
7th September 2016