The Petroleum Act 1998 is amended as follows.
A
bill
to
Prohibit licensing to search and bore for petroleum and onshore hydraulic fracturing activities; to amend the principal objective for the Oil and Gas Authority to be to meet the carbon reduction target for 2050 under the Climate Change Act 2008; and to provide for the Oil and Gas Authority to produce strategies which include the phasing out of the extraction and use of petroleum and transitional planning towards renewable energies.
B e it enacted by the Queen’s most Excellent Majesty, by and with the advice and consent of the Lords Spiritual and Temporal, and Commons, in this present Parliament assembled, and by the authority of the same, as follows:—
The Petroleum Act 1998 is amended as follows.
“3 Prohibition of licences to search and bore for and get petroleum
The granting of licences to search and bore for and get petroleum is
prohibited.”
Omit section 4 (licences: further provision).
“4B Prohibition of onshore hydraulic fracturing
(1)The granting of licences for onshore hydraulic fracturing and associated
hydraulic fracturing is prohibited from the day on which this section
comes into force.
(2)“Associated hydraulic fracturing” means hydraulic fracturing of shale
or strata encased in shale which—
(a)is carried out in connection with the use of the relevant well
to search or bore for or get petroleum, and
(b)involves, or is expected to involve, the injection of—
(i)more than 1,000 cubic metres of fluid at each stage, or
expected stage, of the hydraulic fracturing, or
(ii)more than 10,000 cubic metres of fluid in total.”
Omit section 4B (section 4A: supplementary provision).
“5ZA Existing licences: conditions for extension
(1)Any existing licence granted before the commencement of this section
under this Act or section 2 of the Petroleum (Production) Act 1934 is
valid for five years from the day on which the section comes into
force, upon which the Secretary of State must review that licence.
(2)In reviewing a licence under subsection (1), the Secretary of State must
assess whether granting an extension of the licence is compatible with
achieving the principal objective under section 9A and the most recent
strategy produced under Part 1A of this Act.
(3)If, after reviewing the licence, the Secretary of State considers that an
extension of a licence is not compatible with the principal objective
and the most recent strategy produced under Part 1A, the Secretary
of State must not extend the licence.
(4)If, after reviewing the licence, the Secretary of State is satisfied that
the licence is compatible with the principal objective and the most
recent strategy produced under Part 1A, the Secretary of State may
extend the licence for up to five years from the day on which it is due
to expire under subsection (1), upon which the licence must be
reviewed again in accordance with this section.”
Sections 43 to 48 of the Infrastructure Act 2015 (petroleum and geothermal
energy in
deep-level land) cease to apply to petroleum from the day on which
this Act is passed, save
in respect of decommissioning.
The Petroleum Act 1998 (as amended by the Infrastructure Act 2015) is
amended as
follows.
In the heading of Part 1A, omit “Maximising economic recovery of UK
petroleum” and insert
“Sustainable principal objective and strategy”.
“9A The principal objective and the strategy
(1)In this Part the “principal objective” is to ensure that the net UK carbon
account for the year 2050 is 100% lower than the 1990 baseline, as set
out in section 1 of the Climate Change Act 2008.
(2)The OGA must produce one or more strategies for enabling the
principal objective to be met within one year of this section coming
into force.
(3)A strategy produced under subsection (2) must include—
(a)the phasing out of the extraction and use of petroleum and
other fossil fuels by 2050;
(b)a transition plan for regions of the United Kingdom which are
economically reliant on the petroleum industry which
includes—
(i)a long-term investment programme for these regions,
including how revenue from all energy sources can
contribute towards this investment,
(ii)a transition to renewable energy industries in these
areas, including the provision and funding of training,
paid-for voluntary relocation, salary and pension
protection, and other appropriate support for existing
petroleum industry workers to transition into renewable
energy industries; and
(c)recommendations regarding the elimination of investment in
foreign fossil fuel extraction by Her Majesty’s Government and
UK businesses.
(4)A strategy may relate to matters other than those mentioned in
subsection (3)(a) to (c).
(5)For provision about producing and revising a strategy, see sections
9F and 9G.”
In section 9G (procedure for producing and revising a strategy), omit The OGA must consult— the Scottish Government, the Welsh Government, the Northern Ireland Executive, relevant trade union and worker representatives, relevant environmental organisations and representatives, relevant industry representatives of petroleum and renewable any other such persons as the OGA considers appropriate,
subsection (2) and
insert—
“(2)
(a)
(b)
(c)
(d)
(e)
(f)
energy businesses,
and
(g)
and must consider any representations made by them.”
In section 9G (procedure for producing and revising a strategy), after Where a copy of the draft has been sent in accordance with subsection
subsection (3)
insert—
“(3ZA)
(3), the OGA may
not take any further steps in relation to the draft
unless it has been approved by
resolution of each House of
Parliament.”
In section 9G (procedure for producing and revising a strategy) omit A Minister of the Crown must table a resolution to approve the draft If either House of Parliament does not pass a resolution to approve
subsections (4) and
(5) and insert—
“(4)
strategy in each
House of Parliament within one month of the copy
of the draft being laid under
subsection (3A).
(5)
under subsection
(4) within three months of laying under section (3A),
the OGA must revise the strategy
in accordance with section 9A and
lay the revised copy before each House of Parliament
within a further
three months for approval in accordance with this section.”
In section 9G (procedure for producing and revising a strategy), omit
subsections (7) to
(9).
In section 9I (other interpretation), in the definition of “petroleum licence”,
leave out
from “under” to “1934” and insert “under any licence previously
granted under this Act or the
Petroleum (Production) Act 1934;”.
This Act extends to England and Wales, Scotland and Northern Ireland.
This Act comes into force on the day on which it is passed.
This Act may be cited as the Petroleum (Amendment) Act 2022.
A
bill
to
Prohibit licensing to search and bore for petroleum and onshore hydraulic fracturing activities; to amend the principal objective for the Oil and Gas Authority to be to meet the carbon reduction target for 2050 under the Climate Change Act 2008; and to provide for the Oil and Gas Authority to produce strategies which include the phasing out of the extraction and use of petroleum and transitional planning towards renewable energies.
Ordered to be Printed, .
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