Citation, commencement and effect

1. —(1) These Regulations may be cited as the Petroleum Revenue Tax (Nomination Scheme for Disposals and Appropriations) (Amendment) Regulations 2006 and shall come into force on 12th December 2006.

(2) These Regulations shall have effect—

(a) from 1 ^st July 2006,

(b) in relation to proposed sales whose transaction base time (see regulation 9) is a time on or after that date; and

(c) not in relation to proposed transactions with a transaction base date (within the meaning in regulation 7 of the Petroleum Revenue Tax (Nomination Scheme for Disposals and Appropriations) Regulations 1987( 4 ), as that regulation stood prior to the making of these Regulations) before that date.

Amendment of the Petroleum Revenue Tax (Nomination Scheme for Disposals and Appropriations) Regulations 1987

2.The Petroleum Revenue Tax (Nomination Scheme for Disposals and Appropriations) Regulations 1987 are amended as follows.

3. In the title and citation of those Regulations—

(a) for “Petroleum Revenue Tax” substitute “Oil Taxation”;

(b) omit “and Appropriations”.

4. In regulation 2 (interpretation)—

(a) omit the definition of “composite nomination”; and

(b) for the definition of “the Board” substitute—

“ “the Commissioners” means the Commissioners for Her Majesty’s Revenue and Customs; ” .

5. For regulation 2A substitute—

“ Excluded oil

2A. —(1) Oil which forms part of a participator’s equity production from an oil field (within the meaning in paragraph 1(2) of Schedule 10, immediately before the coming into force of section 150 of the Finance Act 2006, but omitting references to a month) shall be excluded from section 61 of the Finance Act 1987 if it is sold otherwise than under a Brent-Forties-Oseberg forward contract.

(2) In paragraph (1) “a Brent-Forties Oseberg forward contract” means a contract which provides for settlement, at least 21days after the date on which it is made, by the delivery of a volume of oil comprising, at the seller’s election, Brent blend, Forties blend or oil of Oseberg grade ( 5 ) , or a cash payment. ” .

6. For regulation 3(2) and (3) (manner of making nominations) substitute—

“ (2) A nomination shall—

(a) be made in writing—

(i) in the case of a nomination made during business hours, by or on behalf of the participator who is proposing to carry out the sale in respect of which the nomination is made; and

(ii) in the case of a nomination made outside business hours, by or on behalf of the participator, where the participator (or group of which the participator is a member) is proposing to carry out the sale in respect of which the nomination is made; and

(b) be transmitted to the Commissioners—

(i) at the e-mail address published by the Commissioners for the receipt of such nominations, from time to time, by e-mail electronic communications; or

(ii) in the case of disruption of e-mail communications, by telephonic facsimile transmission to the number published by the Commissioners for the receipt of such nominations, from time to time.

(3) For the purpose of determining whether the nomination is made within the period of two hours mentioned in paragraph 4(1)(a) or (1A)(a) of Schedule 10, the time of sending the transmission is to be used.

(3A) But transmission shall not be regarded as having been effected for the purposes of paragraph (2) until the nomination is received by the Commissioners at that address or number. ” .

7. In regulation 3(4) omit “(c)(v) above”.

8. Omit regulations 4 to 6.

9. For regulations 7 and 8 substitute—

“ Transaction base time

7. —(1) This regulation prescribes the transaction base time for a proposed sale for the purposes of paragraph 4 of Schedule 10.

(2) The transaction base time is the time (and date) at which there is an agreed price (in the form of a unit price or formula for determination of the price) at which oil is to be delivered pursuant to the contract of sale (irrespective of whether or not a legally binding agreement has come into being). ” .

10. In regulation 9 (nominal volume)—

(a) in paragraph (1) omit “, or to supply or relevantly appropriate,”;

(b) in paragraph (2) omit sub-paragraphs (b) to (d) and the immediately preceding word “or”; and

(c) omit paragraph (3).

11. In regulation 10 (maximum tolerance) for “5” substitute “1”.

12. Omit regulations 11 to 18.

13. In regulation 19 (nominations of proposed transactions in blended oil having effect with respect to more than one field)—

(a) in paragraph (1)—

(i) for “Subject to paragraph (2) below, a” substitute “A”;

(ii) omit “, supply or appropriation”;

(iii) omit from “; and in this and the next following” to the end; and

(b) omit paragraph (2).

14. Omit regulation 20.