General

Citation, commencement and interpretation

1. —(1) These Regulations may be cited as the Storage of Carbon Dioxide (Licensing etc.) Regulations 2010, and come into force on 1st October 2010.

(2) In these Regulations—

(a) any reference to a numbered section is to that section of the Energy Act 2008;

(b) any reference to a provision contained in a Schedule includes a reference to a provision having identical legal effect to such a provision; and

(c) any reference (except in paragraph (4)) to an EU instrument, or a provision of such an instrument, is to that instrument or provision as amended from time to time.

(3) In these Regulations—

“ appraisal term ” has the meaning given by regulation 3(2)(a);

“the authority” (except in regulation 9) means the Oil and Gas Authority as licensing authority under section 18(2);

“ climate change legislation ” means—

“ CO ₂ ” means carbon dioxide;

“ corrective measures plan ” has the meaning given by regulation 7(6);

“ the Directive ” means DirectiveDirectiveDirectives

“emissions” (except in the definitions of “the ETS Directive” and “Monitoring Regulation”) has the meaning given by section 97 of the Climate Change Act 2008;

“entering” in relation to premises includes, where applicable, boarding, and cognate expressions shall be construed accordingly;

“ the Environmental Liability Directive ” means Directive

“ the ETS Directive ” means Directivegreenhouse gasemission allowance trading within the Community and amending Council Directive

“ financial security ” includes—

“ general exploration licence ” means any licence granted by the authority under section 18(1) which authorises only activities within section 17(2)(c) and the establishment or maintenance of an installation in a controlled place for the purpose of such activities and which—

“greenhouse gas” (except in the definitions of “the ETS Directive” and “Monitoring Regulation”) has the meaning given by section 92 of the Climate Change Act 2008;

“ injection ” means injection of CO ₂ into a storage site;

“inspection” means an inspection of a storage complex for the purpose of discharging a function described in sub-paragraph (a) or (b) of regulation 17(2);

“inspection report” has the meaning given to it in regulation 18(1);

“inspector” means a person appointed by the authority under section 27(1);

“ legislation ” ... means legislation in force in the United Kingdom (whether passed, or made, before or after the commencement of these Regulations);

“licence” (except in regulation 9) means a licence (other than a general exploration licence) granted by the authority under section 18(1) in respect of—

(and “ licence holder ” is to be construed accordingly);

“ licensed area ” means the area within which activities are authorised under the licence;

“ monitoring plan ” has the meaning given by regulation 7(5);

“ Monitoring Regulation ” means Commission Regulation (EU) No 601/2012 of 21 June 2012 on the monitoring and reporting of greenhouse gasemissions pursuant to Directive 2003/87/EC of the European Parliament and of the Council;

“ operator ”, in relation to a storage permit, means the person who carries on or (where different) controls activities at the storage site;

“ post-closure plan ” has the meaning given by regulation 13(3) or (4);

“premises” includes—

“ provisional post-closure plan ” has the meaning given by regulation 13(2);

“routine inspection” has the meaning given to it in regulation 16(1);

“ storage permit ” means a consent granted under a licence, authorising the use of a place as a storage site;

“ target date ” has the meaning given by regulation 11(3)(a).

(4) The following expressions have the meanings given by Article 3 of the Directive (and cognate expressions are to be construed accordingly)—

• “closure” (in relation to a storage site);

• “corrective measures”;

• “CO ₂ plume”;

• “CO ₂ stream”;

• “exploration”;

• “hydraulic unit”;

• “leakage”;

• “migration”;

• “significant irregularity”;

• “significant risk”;

• “storage complex”;

• “storage site”;

• ...

• “waste”;

• “water column”.

(5) In these Regulations, for the purposes of any reference to Annex II to the Directive, Article 13(2) of the Directive shall be read as if for the words “guidelines established pursuant to Article 14 and Article 23(2) of Directive 2003/87/EC ” there were substituted “ Monitoring Regulation ” .

Review

1A.—(1) Before the end of each review period, the Secretary of State must—

(a) carry out a review of regulations 1(2) to 20;

(b) set out the conclusions of the review in a report; and

(c) publish the report.

(2) In carrying out the review the Secretary of State must, so far as is reasonable, have regard to how the Directive (which is implemented by means of regulations 1(2) to 20) is implemented in other member States.

(3) The report must in particular—

(a) set out the objectives intended to be achieved by the regulatory system established by regulations 1(2) to 20;

(b) assess the extent to which those objectives are achieved; and

(c) assess whether those objectives remain appropriate and, if so, the extent to which they could be achieved with a system that imposes less regulation.

(4) In this regulation, “review period” means—

(a) the period of five years beginning with the day on which this regulation comes into force; and

(b) subject to paragraph (5), each successive period of five years.

(5) If a report under this regulation is published before the last day of the review period to which it relates, the following review period is to begin with the day on which that report is published.

Licences

Limitation on licensing powers

2. A licence may not be granted for the purpose of storing CO ₂ in the water column.

Applications for a licence

3. —(1) An application for a licence must be—

(a) made in writing and sent to the Oil and Gas Authority , ...

(b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(2) The application must include—

(a) a request that the licence specify a period (the “appraisal term”) during which the licence holder has the right to explore the licensed area before making an application for a storage permit, or

(b) if no such period is requested, a statement of the reasons why such exploration is not considered necessary.

Appraisal term or initial term

4. —(1) The appraisal term may not exceed the period necessary to—

(a) generate the information necessary to select a storage site, and

(b) prepare the documents required for an application under regulation 6.

(2) Subject to paragraph (1), the appraisal term may be extended by the authority at the written request of the licence holder, under the conditions laid down by the licence, provided that the authority is satisfied that any exploration so far carried out has been in accordance with the licence.

(3) If the licence does not include an appraisal term—

(a) the licence must specify a period as the “initial term” for the purpose of paragraph (4)(a), but

(b) that initial term may be extended under the conditions laid down by the licence.

(4) The licence expires (unless sooner terminated in accordance with its provisions)—

(a) at the end of the appraisal term or the initial term, if no application for a storage permit is made before that date, or

(b) if such an application is refused, when that refusal is notified to the licence holder.

Content of a licence

5. A licence must include the provisions contained in Schedule 1.

Storage permits

Applications for a storage permit

6. —(1) The licence holder may, under the conditions laid down by the licence, apply to the authority for a storage permit in respect of a storage site within the licensed area.

(2) Where the licence includes an appraisal term, the application may not be made unless the exploration required by the licence has been completed, and all other terms and conditions of the licence have been complied with.

(3) An application must contain at least the following—

(a) the name and address of the proposed operator;

(b) evidence of the matters referred to in regulation 7(1)(a) to (d);

(c) in relation to the CO ₂ that is to be contained within the storage site—

(i) the total quantity that is to be injected and stored;

(ii) a proposed date on which injection is to commence;

(iii) the prospective sources and transport methods;

(iv) the composition of the CO ₂ streams that are to be injected;

(v) the proposed injection rates and pressures;

(vi) the proposed location of the injection facilities;

(d) a description of measures to prevent any significant irregularities;

(e) a proposed monitoring plan drawn up in accordance with Annex II to the Directive and that takes into account the obligations imposed on the operator under the Monitoring Regulation ;

(f) a proposed corrective measures plan;

(g) the proposed provisional post-closure plan drawn up in accordance with regulation 13(1);

(h) the information required to be provided in relation to the storage site under legislation which before IP completion day implemented Article 5 of Directive 2011/92/EU of the European Parliament and of the Council of 13 December 2011 on the assessment of the effects of certain public and private projects on the environment ;

(i) details of financial security that will satisfy the requirements in paragraph 7(1) of Schedule 2, including proof that (if the storage permit is granted) such a security will be in force before the proposed date on which injection is to commence.

(4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Grant of storage permits

7. —(1) Before granting a storage permit the authority must be satisfied that—

(a) the storage complex and surrounding area have been sufficiently characterised and assessed in accordance with the criteria set out in Annex I to the Directive,

(b) no part of the storage complex extends beyond the territory of the United Kingdom or another state which is party to an agreement with the United Kingdom concerning cross-boundary cooperation in relation to the complex ,

(c) under the proposed conditions of use of the storage site, there is no significant risk of leakage or of harm to the environment or human health, and

(d) the conditions in paragraph (3) are met.

(2) For the purposes of paragraph (1)(b), the territory of a state includes its exclusive economic zone and continental shelf within the meaning of Articles 55 and 76 of the United Nations Convention on the Law of the Sea .

(3) The conditions are that the proposed operator—

(a) is technically competent (including in the operation of environmental management systems), financially sound, and can be relied upon to carry out the functions of an operator, and

(b) has in place an appropriate programme of professional and technical development and training.

(4) Where more than one proposed storage site is contained within the same hydraulic unit, before granting a storage permit for either site the authority must be satisfied that the requirements for the grant of such a permit can be met simultaneously.

(5) In considering the application for the storage permit the authority may—

(a) approve the proposed monitoring plan, or

(b) require the applicant to make such modifications to it as the authority (after consulting the applicant) considers necessary,

and (if the permit is granted) the monitoring plan is the plan as so approved or modified.

(6) In considering the application for the storage permit the authority may—

(a) approve the proposed corrective measures plan, or

(b) require the applicant to make such modifications to it as the authority (after consulting the applicant) considers necessary,

and (if the permit is granted) the corrective measures plan is the plan as so approved or modified.

(7) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Content of storage permits

8. —(1) A storage permit must include at least the following—

(a) the name and address of a single person who is a holder of the licence and who is designated as the operator of the storage site;

(b) the precise location and delimitation of the storage site and the storage complex, and any relevant information concerning the hydraulic unit;

(c) the operational requirements for storage, including—

(i) the total quantity of CO ₂ authorised to be stored;

(ii) the reservoir pressure limits; and

(iii) the maximum injection rates and pressures;

(d) the provisions relating to acceptance and injection of CO ₂ ;

(e) any other requirements relating to injection and storage that the authority considers necessary, in particular to prevent significant irregularities;

(f) requirements designed to prevent any undue interference with other uses of the area surrounding the storage site;

(g) the provisions relating to monitoring, including the monitoring plan;

(h) the provisions relating to reporting, and notification of leakages and significant irregularities;

(i) the provisions relating to notification and implementation of changes, and to review and modification or revocation of the permit;

(j) the corrective measures plan, and the provisions relating to corrective measures;

(k) the conditions for closure of the storage site;

(l) the provisional post-closure plan; and

(m) the provisions relating to financial security.

(1A) If the operator is a company, a storage permit must also include the provisions contained in paragraph 6(2) to (11) of Schedule 1, read as if—

(a) any reference to a company were to the operator,

(b) the reference in paragraph 6(8)(b) to the licence were to the storage permit, and

(c) paragraph 6(10)(c) were omitted.

(2) In paragraph (1) of this regulation, “ provisions ” means provisions contained in Schedule 2.

Public register

Information to be published on the register

9. —(1) The information prescribed for the purposes of section 29 is the information to which paragraph (2) applies.

(2) This paragraph applies to the following information—

(a) the particulars of each licence and storage permit granted;

(b) the particulars of each storage site (including a storage site that has been closed).

(3) The particulars referred to in paragraph (2)(a) are—

(a) the terms and conditions of the licence;

(b) the names and addresses of all past and present licence holders, including the dates on which they became or ceased to be a licence holder;

(c) the names and addresses of all persons (past and present) organising or supervising activities under the licence before the storage permit is granted, including the dates on which they began or ceased to do so;

(d) the terms and conditions of the storage permit;

(e) the names and addresses of all past and present operators under the storage permit, including the dates on which they began or ceased to be the operator;

(f) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(g) any modifications of the terms and conditions of the licence or the storage permit (including the date on which the modification came into effect);

(h) where the licence has terminated or been surrendered, the date of such termination or surrender;

(i) where the storage permit has been revoked, the date of and reasons for such revocation.

(4) The particulars referred to in paragraph (2)(b) are—

(a) the reports, and any notifications, sent to the authority in accordance with the provisions of the storage permit;

(b) details of any directions given by the authority in respect of corrective measures or measures for the protection of human health, and of any such measures taken by the operator or by the authority;

(c) the current amount of the financial security maintained in accordance with the provisions of the storage permit;

(d) where the storage site has been closed—

(i) the date of closure;

(ii) maps and sections showing the spatial extent of the storage site and storage complex;

(iii) the post-closure plan.

(5) In addition, the Secretary of State may include on the register maintained under section 29(1)—

(a) any other information that the authority that granted the storage permit considers relevant for assessing whether the CO ₂ will be completely and permanently contained in the storage site (but this is subject to section 29(2)), and

(b) an estimate by that authority of the total storage capacity of the storage site.

(6) In this regulation—

(a) “ the authority ” means any licensing authority within the meaning of section 18(2);

(b) “ licence ” means a licence granted by the authority under section 18(1); and

(c) “licence holder”, “operator” and “storage permit” are to be construed accordingly.

Powers and duties of the authority

Corrective measures

10. —(1) This regulation applies where—

(a) a significant irregularity or a leakage has been detected, and

(b) the licence under which the storage permit is granted is still in force,

but does not apply where the storage permit has been revoked.

(2) Without prejudice to the obligations of the operator under paragraph 6 of Schedule 2, or to the powers of the authority under section 24—

(a) the authority may direct the operator to take any corrective measures (and any measures for the protection of human health) that the authority, after consulting the operator, considers necessary; and

(b) if the operator fails to take the measures so directed, the authority must exercise its powers under paragraph (4).

(3) The measures directed to be taken under paragraph (2)(a) may be additional to, or different from, those set out in the corrective measures plan.

(4) Whether or not a direction has been given under paragraph (2) or under section 24—

(a) the authority may at any time take such measures itself (or arrange for another person to take them on the authority's behalf); and

(b) the costs of doing so are to be paid by the operator.

(5) Section 24(5) to (8) applies to action taken under paragraph (4) as it applies to action taken under section 24(4).

Review, modification and revocation of storage permit

11. —(1) Where a notification is made under paragraph 4(1) of Schedule 2, the authority—

(a) may make such modifications to the storage permit as the authority considers appropriate, and

(b) must notify the operator of—

(i) the date on which any such modifications are to come into effect, and

(ii) the date on which the change in question may be implemented.

(2) However, where it appears to the authority that the matters so notified would amount to a substantial change, the authority must—

(a) make such modifications to the storage permit as the authority considers appropriate (and make a notification in accordance with paragraph (1)(b)), or

(b) notify the operator that the change may not be implemented.

(3) The authority must make a notification under paragraph (1)(b) or (2) on or before—

(a) the date (“the target date”) on which the operator proposes to implement a change notified under paragraph 4(1) of Schedule 2, or

(b) any later date the authority considers is required in order for it to make such a notification.

(4) The authority shall notify the operator of a later date pursuant to paragraph (3)(b)—

(a) no less than one week before the target date, or

(b) if one or more later dates have already been notified by the authority pursuant to this paragraph, no less than one week before the date last notified.

(5) This paragraph applies where the authority becomes aware of—

(a) any (or any risk of) leakages or significant irregularities;

(b) any breach of the terms or conditions of the storage permit; or

(c) any scientific finding or technological development which appears to have a bearing on the conduct of operations at the storage site.

(6) The authority must consider whether to modify or revoke the storage permit—

(a) where paragraph (5) applies, and

(b) in any event, on the date (“the review date”) falling on the fifth anniversary of the grant of the storage permit, and subsequently on every tenth anniversary of the review date.

(7) Following that consideration, the authority may—

(a) make such modifications to the storage permit as the authority considers appropriate, or

(b) if it decides that modification of the permit would be insufficient in the light of the matters referred to in paragraph (5), revoke the permit.

(8) Before making any revocation or modification under this regulation, the authority must consult the operator and any other holder of the licence.

(9) In this regulation “ substantial change ” means any change not provided for in the storage permit which may have a significant effect on the environment or human health.

Consequences of revocation of a storage permit

12. —(1) This regulation applies where the authority has revoked the storage permit under regulation 11(7).

(2) The authority must then either—

(a) close the storage site, or

(b) consider any application for a new licence (and, if such a licence is granted, for a new storage permit) in respect of the storage site.

(3) Following the procedure under paragraph (2)(b)—

(a) if no new storage permit is granted, the authority must close the storage site (but the existing licence continues in force);

(b) if a new storage permit is granted, the existing licence terminates on the date of that grant.

(4) Until the storage site is closed, or the new storage permit is granted, the authority is deemed to be the operator of the site for the purposes of the following obligations—

(a) in relation to the acceptance and injection of CO ₂ ;

(b) in relation to monitoring;

(c) in relation to corrective measures;

(d) in relation to the offset of emissions which are leakage under climate change legislation (if any); and

(e) under legislation which before IP completion day implemented Articles 5(1) and 6(1) of the Environmental Liability Directive.

(5) Where the storage site is closed under paragraph (2)(a) or (3)(a), the authority—

(a) is deemed to be the operator of the storage site for the purposes of the obligations referred to in paragraph (4)(b) to (e), and

(b) must ensure that the storage site is sealed and the injection facilities removed (but this is without prejudice to the obligations of any person under Part 4 of the Petroleum Act 1998).

(6) The holder of the existing licence must pay to the authority any costs incurred in meeting the authority's obligations under paragraph (4) or (5); and section 24(6) and (7) applies to the recovery of such costs as it applies to the recovery of costs under section 24(5).

(7) In this regulation, “ existing licence ” means the licence under which the revoked storage permit was granted.

Closure of storage site and post-closure period

Post-closure plan

13. —(1) Before applying for a storage permit, the licence-holder must draw up a proposed provisional post-closure plan that is—

(a) based on best practice, and

(b) in accordance with Annex II to the Directive.

(2) Before granting a storage permit, the authority must—

(a) approve that proposed plan, or

(b) require the operator to make such modifications to it as the authority (after consulting the operator) considers necessary,

and the provisional post-closure plan is the plan as so approved or modified.

(3) The authority may—

(a) approve a proposed post-closure plan submitted to it for approval in accordance with paragraph 3(1) of Schedule 1, or

(b) require the operator to make such modifications to it as the authority (after consulting the operator) considers necessary,

and the post-closure plan is the plan as so approved or modified.

(4) Where the authority is deemed to be the operator in accordance with regulation 12(5), the post-closure plan is the provisional post-closure plan with such modifications as the authority considers necessary.

Post-closure obligations

14. The closure of the storage site is without prejudice to the obligations of the operator—

(a) under legislation which before IP completion day implemented Articles 5 to 8 of the Environmental Liability Directive, or

(b) relating to the offset of emissions which are leakage under climate change legislation (if any).

Environmental Liability Directive

Environmental Damage (Prevention and Remediation) Regulations 2009

15. In Schedule 2 to the Environmental Damage (Prevention and Remediation) Regulations 2009 , after paragraph 10 insert—

“ 11. The operation of storage sites pursuant to Directive 2009/31/EC of the European Parliament and of the Council of 23 April 2009 on the geological storage of carbon dioxide. ” .

Inspections and enforcement

Inspections

16.—(1) The authority must carry out an inspection (a “routine inspection”) of a storage complex—

(a) during the initial period—

(i) no later than 1 year from the date that period commences; and

(ii) subsequently, no later than 1 year from the date of the immediately previous inspection; and

(b) during the post-closure period—

(i) no later than 5 years from the date that period commences; and

(ii) subsequently, no later than 5 years from the date of the immediately previous inspection.

(2) A routine inspection must include an examination of—

(a) the injection and monitoring facilities; and

(b) the effects on the environment and human health of the activities carried out under the relevant licence.

(3) The authority must carry out an inspection of a storage complex if—

(a) the authority becomes aware of—

(i) leakages or significant irregularities; or

(ii) a breach of the terms or conditions of the relevant storage permit; or

(b) a complaint is made to the authority about the effects of activities carried out under the relevant licence on the environment or to human health, unless the authority believes that complaint is frivolous or vexatious.

(4) The authority may carry out an inspection other than when required under paragraphs (1) or (3) as the authority considers appropriate.

(5) An inspection carried out pursuant to paragraph (3) or (4) —

(a) does not constitute a routine inspection for the purposes of paragraph (1); but

(b) may be carried out simultaneously with a routine inspection.

(6) In this regulation, in relation to any storage complex—

(a) “initial period” means the period commencing on the date on which injection commences at the storage site and ending on the third anniversary of the date of closure of the storage site;

(b) “monitoring facilities” means facilities used for the carrying out of a programme of monitoring pursuant to paragraph 2 of Schedule 2;

(c) “post-closure period” means the period commencing on the day after the third anniversary of the date of closure of the storage site and ending on the date on which the relevant licence is terminated; and

(d) “year” means a period of 12 months.

Appointment of inspectors

17.—(1) An inspector may exercise any of the powers described in Schedule 3 to assist the authority in carrying out its functions under Chapter 3 of the Energy Act 2008.

(2) The functions referred to in paragraph (1) include—

(a) investigating whether—

(i) the provisions of a licence or of any consent granted under a licence; or

(ii) any requirements, restrictions or prohibitions imposed by or under Chapter 3 of the Energy Act 2008,

have been, or are being, complied with; and

(b) monitoring the effects on the environment and on human health of activities authorised by or under a licence.

(2) An inspector must report to the authority in such manner as the authority may direct.

(3) An inspector must, before exercising any of the powers described in Schedule 3, produce evidence of appointment if requested to do so.

Inspection reports

18.—(1) The authority must prepare a written report (an “inspection report”) of the results of an inspection.

(2) An inspection report must include—

(a) the authority’s assessment of whether or not, in respect of the storage complex inspected—

(i) the provisions of a licence or of any consent granted under a licence; and

(ii) any requirements, restrictions or prohibitions imposed by or under Chapter 3 of the Energy Act 2008,

have been, or are being, complied with; and

(b) a statement as to what action (if any) the authority considers is required to ensure such compliance.

(3) A statement made in an inspection report pursuant to paragraph (2)(b) does not preclude the authority from requiring the licence holder or any other person to take any other action.

(4) The authority must within two months of the completion of an inspection—

(a) provide a copy of the inspection report to the operator of the relevant storage site; and

(b) include the inspection report on the register maintained under section 29(1).

Evidence

19.—(1) An answer given by a person in compliance with a requirement imposed under paragraph 1(i) of Schedule 3 is admissible in evidence in England and Wales or Northern Ireland against that person in any proceedings or, in Scotland, against that person in criminal proceedings.

(2) In criminal proceedings in which a person mentioned in paragraph (1) is charged with an offence to which this paragraph applies, no evidence relating to that person’s answer may be adduced and no question relating to it may be asked by or on behalf of the prosecution unless evidence relating to it is adduced by or on behalf of that person.

(3) Paragraph (2) applies to any offence other than one—

(a) under regulation 20(1)(c);

(b) under section 5 of the Perjury Act 1911 (false statements made otherwise than on oath);

(c) under section 44(2) of the Criminal Law (Consolidation) (Scotland) Act 1995 (false statements made otherwise than on oath); or

(d) under article 10 of the Perjury (Northern Ireland) Order 1979.

(4) Nothing in Schedule 3 compels the production by any person of a document of which that person would on ground of legal professional privilege be entitled to withhold production on an order for disclosure or discovery in an action in the High Court or the High Court in Northern Ireland or, in relation to Scotland, on an order for the production of documents in an action in the Court of Session.

Offences

20.—(1) It is an offence for a person—

(a) wilfully to obstruct an inspector in the exercise of the powers or duties conferred on the inspector by these Regulations;

(b) without reasonable excuse to fail to comply with a requirement imposed under Schedule 3 or to prevent another person from complying with such a requirement; or

(c) (i) to make a statement which that person knows to be false or misleading in a material particular; or

(ii) recklessly to make a statement which is false or misleading in a material particular,

where such a statement is made in purported compliance with any requirement imposed under Schedule 3 for the supply of information to an inspector.

(2) A person guilty of an offence under paragraph (1) is liable—

(a) on summary conviction—

(i) in England and Wales or Northern Ireland, to a fine not exceeding the statutory maximum;

(ii) in Scotland, to a fine not exceeding £5,000; or

(b) on conviction on indictment, to a fine.

(3) Where an offence under paragraph (1) is committed by a body corporate and is proved to have been committed with the consent or connivance of an officer of the body corporate, that officer (as well as the body corporate) is guilty of the offence and is liable to be proceeded against and dealt with accordingly.

(4) Where an offence under paragraph (1) is committed by a Scottish partnership and is proved to have been committed with the consent or connivance of a partner, that partner (as well as the partnership) is guilty of the offence and is liable to be proceeded against and punished accordingly.

(5) In this regulation—

(a) “officer”, in relation to a body corporate, means—

(i) any director, manager, secretary or other similar officer of the body corporate; or

(ii) any person who was purporting to act in any such capacity;

(b) “partner”, in relation to a Scottish partnership, includes any person who was purporting to act as a partner in the partnership.

(6) In paragraph (5) “director”, in relation to a body corporate whose affairs are managed by its members, means a member of the body corporate.

(7) Where the commission by any person of an offence under this regulation is due to the act or default of some other person, that other person may be charged with and convicted of the offence by virtue of this paragraph whether or not proceedings for the offence are taken against the first-mentioned person.

Regulation 5

SCHEDULE 1 PROVISIONS TO BE INCLUDED IN A LICENCE

Grant of a storage permit

1. If a storage permit is granted under a licence then, subject to regulation 12, paragraphs 2, 3 and 4 of this Schedule apply in respect of the storage site authorised under that storage permit.

Closure of storage site by the operator

2. —(1) The operator must close the storage site where the conditions mentioned in regulation 8(1)(k) are met.

(2) The operator may close the storage site if—

(a) the consent of the authority has been given following an application under sub-paragraph (3), and

(b) any conditions attached to that consent have been met.

(3) An application for the authority's consent to the closure of the storage site must—

(a) be made in writing and sent to the Oil and Gas Authority , and

(b) contain the reasons why the operator proposes to close the storage site.

(4) However, a storage site may not be closed under sub-paragraph (1) or (2) until the terms of the post-closure plan have been determined under regulation 13(3).

Post-closure plan

3. —(1) Prior to the closure of the storage site in accordance with paragraph 1(1) or (2) of this Schedule, the operator must submit a proposed post-closure plan to the authority for approval.

(2) That proposal must be based on the provisional post-closure plan, subject to any modifications proposed by the operator.

(3) In deciding whether to propose any such modifications, the operator must take into account—

(a) an analysis of the relevant risks;

(b) current best practice; and

(c) any improvements in the available technology.

Post-closure obligations

4. —(1) After the storage site has been closed and until the licence is terminated, the operator must continue to—

(a) monitor the storage site in accordance with paragraph 2 of Schedule 2,

(b) comply with its reporting and notification obligations in accordance with paragraph 3 of Schedule 2 (with the exception of sub-paragraph (5)(b)), and

(c) comply with its obligations to take corrective measures in accordance with paragraph 6 of Schedule 2.

(2) However, for those purposes any reference to the monitoring plan or the corrective measures plan is to be read as a reference to the post-closure plan.

(3) The operator must seal the storage site and remove the injection facilities in accordance with its obligations under Part 4 of the Petroleum Act 1998.

Extraction of stored CO ₂

5. The operator must not (and must not permit any other person to) extract stored CO ₂ from the storage site except with the prior written consent of the authority and in accordance with any conditions subject to which any such consent is given.

Change in control of licence holder

6. —(1) This paragraph applies if—

(a) the licence holder is a company, or

(b) where two or more persons are joint licence holders, any of those persons is a company,

and references in this paragraph to a company are to such a company.

(2) A change in control of a company is not permitted without the consent of the authority.

(3) There is a “change in control” of a company if a person takes control of the company, not having previously been a person who controlled the company.

(4) If a change in control of a company is contemplated, the company must apply in writing to the authority for consent at least three months before the date on which it is proposed that the change would occur (if consent were given).

(5) The authority may—

(a) consent to the change in control unconditionally,

(b) consent to the change in control subject to conditions, or

(c) refuse consent to the change in control.

(6) If the authority proposes to grant consent subject to any condition or to refuse consent, the authority must, before making a final decision—

(a) give the company an opportunity to make representations, and

(b) consider any representations that are made.

(7) The general rule is that the authority must decide an application within three months of receiving it, but the authority may delay its decision by notifying the interested parties in writing.

(8) Conditions as mentioned in sub-paragraph (5)(b) may be imposed on the person taking control of the company (as well as on the company), and may include—

(a) conditions relating to the arrangements for the change in control, including the date by which it must occur,

(b) conditions relating to the performance of activities permitted by the licence, and

(c) financial conditions.

(9) The authority’s decision on the application, and any conditions as mentioned in sub-paragraph (5)(b), must be notified in writing to the interested parties.

(10) In this paragraph “ the interested parties ” means—

(a) the company,

(b) the person who (if consent were granted) would take control of the company, and

(c) if the company is a joint licence holder with another person or other persons, that other person or those other persons.

(11) For the purposes of this paragraph, “control” of a company is to be construed in accordance with sections 450(2) to (4) and 451(1) to (5) of the Corporation Tax Act 2010, but read as if—

(a) for the words “the greater part” wherever they occur in section 450(3), there were substituted “one-third or more” ,

(b) in section 451(4) and (5), for “may” there were substituted “must” , and

(c) in section 451(4) and (5), any reference to an associate of a person included only—

(i) a relative (as defined in section 448(2) of that Act) of the person,

(ii) a partner of the person, and

(iii) a trustee of a settlement (as defined in section 620 of the Income Tax (Trading and Other Income) Act 2005) of which the person is a beneficiary.

Revocation of licence re change in control

7. —(1) This paragraph applies in connection with a change in control of a licence holder which is a company (see paragraph 6).

(2) In the event of—

(a) any breach or non-observance by the company of any of the terms of paragraph 6,

(b) any breach of a condition (imposed in accordance with paragraph 6) subject to which the authority gave its consent to a change in control of the company, or

(c) any failure to provide full and accurate information in response to a notice given by the authority to the company under section 29A,

the authority may, by giving the company and any joint licence holders notice in writing, revoke the licence with effect from the date specified in the notice.

Partial revocation of licence re change in control

8. —(1) This paragraph applies if two or more persons are joint licence holders and any of them is a company.

(2) If an event mentioned in paragraph 7(2)(a), (b) or (c) occurs in connection with a change in control of the company, the authority may exercise the power in paragraph 7 to revoke the licence in so far as it applies to that company (without revoking it in so far as it applies to the other person or persons who are joint licence holders).

Regulation 8(2)

SCHEDULE 2 PROVISIONS TO BE INCLUDED IN A STORAGE PERMIT

Acceptance and injection of CO ₂

1. —(1) In order to be injected into the storage site the CO ₂ stream must consist overwhelmingly of carbon dioxide, and must in particular satisfy the conditions in sub-paragraph (2).

(2) The stream—

(a) must contain no waste or other matter added for the purposes of disposal;

(b) may contain incidental or trace substances (to the extent permitted by any legislation applicable to those substances), but only if the concentrations of all such substances are below the levels that would—

(i) adversely affect the integrity of the storage site or the relevant transport infrastructure, or

(ii) pose a significant risk to the environment or human health.

(3) In sub-paragraph (2)—

(a) “ incidental substance ” means a substance which has become associated with the CO ₂ either at its original source or as a result of the process of capture or injection; and

(b) “ trace substance ” means a substance which has been added to the CO ₂ in order to assist in the monitoring and verifying of its migration after injection.

(4) Before accepting and injecting the stream the operator must ensure that the conditions in sub-paragraphs (1) and (2) can be met, by carrying out—

(a) an analysis of the composition of the stream, and in particular of any corrosive substances that may be present in it, and

(b) an assessment of the risk that the stream will fail to comply with those conditions.

(5) The operator must maintain a register, at a place and in a manner approved by the authority, of the quantities and properties of the CO ₂ streams that have been delivered to, and injected in, the storage site (including the composition of those streams).

Monitoring

2. —(1) The operator must carry out a programme of monitoring of the storage complex and injection facilities, for the purposes specified in sub-paragraph (3).

(2) Such monitoring must include (where possible) the monitoring of the CO ₂ plume, and (where appropriate) of the surrounding environment.

(3) The purposes are—

(a) the comparison of the actual and modelled behaviour of the CO ₂ (and the naturally-occurring formation water) in the storage site;

(b) the detection of any significant irregularities;

(c) the detection of any migration of CO ₂ ;

(d) the detection of any leakage of CO ₂ ;

(e) the detection of any significant adverse effects on the surrounding environment, and in particular on—

(i) drinking water,

(ii) human populations, and

(iii) users of the surrounding biosphere;

(f) the assessment of the effectiveness of any corrective measures taken;

(g) updating the assessment of the safety and integrity, both short- and long-term, of the storage complex (including the assessment of whether the stored CO ₂ will be completely and permanently contained).

(4) The monitoring must be based on the monitoring plan.

(5) The monitoring plan must be updated in accordance with Annex II to the Directive, and in any event within five years of the approval of the original plan, in order to take account of—

(a) changes to the assessed risk of leakage;

(b) changes to the assessed risks to the environment and human health;

(c) new scientific knowledge; and

(d) improvements in best available technology.

(6) The updated plan must be submitted for approval by the authority.

(7) The authority may—

(a) approve that plan, or

(b) require the operator to make such modifications to it as the authority (after consulting the operator) considers necessary,

and the updated monitoring plan is the plan as so approved or modified.

(8) Sub-paragraphs (5) to (7) apply to the further updating of an updated plan as they apply to the updating of the original plan.

Reporting, and notification of leakages and significant irregularities

3. —(1) The operator must send to the authority a report in respect of each reporting period, containing the information specified in sub-paragraph (5).

(2) The report must be sent to the authority no later than four weeks after the end of the relevant reporting period.

(3) Unless the authority determines otherwise under sub-paragraph (4), the reporting periods are the period of one year beginning with the commencement of injection, and each subsequent yearly period.

(4) At any time before the commencement of injection, or during a current reporting period, the authority may notify the operator that (beginning with the next reporting period) reporting periods are to be a period of less than one year that is specified in the notice.

(5) The information is—

(a) the results of the monitoring carried out under paragraph 2 of this Schedule (including details of the monitoring technology employed);

(b) the quantities, properties and composition of the CO ₂ streams registered by the operator under paragraph 1(5) of this Schedule;

(c) proof that the financial security required by paragraph 7 of this Schedule has come into effect and remains in force;

(d) any other information requested by the authority that the authority considers relevant for the purposes of assessing compliance with the conditions of the storage permit or for increasing knowledge of the behaviour of the CO ₂ stored at the storage site.

(6) If the operator becomes aware of any leakages or significant irregularities, the operator must immediately notify the authority.

(7) If the operator becomes aware of any leakages, or of any significant irregularities which imply the risk of leakage, the operator must immediately notify the person (if any) who is the regulator in relation to emissions from the storage site for the purposes of climate change legislation .

Notification and implementation of changes

4. —(1) The operator must notify the authority of any change planned in the operation of the storage site, including any change concerning the operator.

(2) A notification under sub-paragraph (1) must specify the target date.

(3) Except where sub-paragraph (4) applies, such a notification must be made at least three months before the target date.

(4) If the change solely concerns the operator, the notification must be made at least four weeks before the target date.

(5) The change may not be implemented before the later of—

(a) the target date, or any date notified under regulation 11(4)(b); and

(b) the date notified by the authority in accordance with regulation 11(1)(b)(ii).

(6) The change may not be implemented if the authority makes a notification to that effect under regulation 11(2)(b).

(7) However, notwithstanding sub-paragraphs (5) and (6), the change may be implemented on or after the later of the dates mentioned in sub-paragraph (5)(a) if the authority has not before then made a notification under regulation 11(1)(b)(ii) or (2)(b).

Review, and modification or revocation of the permit

5. The permit is to be reviewed, and where necessary modified or (as a last resort) revoked, by the authority in accordance with regulation 11.

Corrective measures

6. —(1) If the operator becomes aware of any leakages or significant irregularities, the operator must take the necessary corrective measures and measures for the protection of human health.

(2) The measures taken must include those set out in the corrective measures plan (but this is subject to regulation 10(3)).

Financial security

7. —(1) The operator must maintain financial security that—

(a) is of an amount (“the secured amount”) sufficient to ensure that the obligations specified in sub-paragraph (5) can be met,

(b) is in force before the commencement of injection, and

(c) remains in force until the licence is terminated.

(2) However, if the storage permit is revoked the security must remain in force—

(a) until a new storage permit is granted, or

(b) if the storage site is closed following such revocation, until the licence is terminated.

(3) Following each report made by the operator in accordance with paragraph 3(1) to (5) of this Schedule, the authority is to assess whether the secured amount is appropriate in the light of—

(a) the assessed risk of leakage, and

(b) the estimated costs of meeting the obligations specified in sub-paragraph (5).

(4) If, following that assessment, the authority decides that the secured amount is to be adjusted—

(a) the authority must notify the operator of the new amount that is required, and

(b) where the secured amount is less than that new amount, the operator must ensure that it is increased to the new amount within three months of receiving that notification.

(5) The obligations are—

(a) all obligations of the operator arising under the storage permit, including those arising in respect of the closure of the storage site and during the period between such closure and the termination of the licence;

(b) the obligation to pay the authority's costs under regulation 10(4)(b) or 12(6); ...

(c) any obligations of the operator arising in respect of the storage site under climate change legislation which relate to—

(i) monitoring, reporting or verification of greenhouse gasemissions; or

(ii) the offset of emissions which are leakage,

of which the authority has notified the operator under sub-paragraph (5A); and

(d) the obligation to provide the financial contribution to the authority in accordance with regulation 10(5) of the Storage of Carbon Dioxide (Termination of Licences) Regulations 2011.

(5A) The authority must notify the operator of any climate change legislation it considers gives rise to obligations which should be taken into account under sub-paragraph (5)(c).

(6) Where the storage permit is revoked—

(a) the obligations of the operator under this paragraph continue in effect until the licence is terminated, but

(b) the assessment by the authority under sub-paragraph (3) is to be made at such intervals as the authority may determine.

SCHEDULE 3 Powers of inspectors

1. The powers of an inspector are—

(a) to enter, at any reasonable time (or, in an emergency, at any time) any premises, which the inspector has reason to believe it is necessary to enter;

(b) on entering any premises by virtue of sub-paragraph (a), to—

(i) be accompanied by any other inspector and, if the inspector has reasonable cause to apprehend any serious obstruction in the execution of the inspector’s duty, a constable; and

(ii) take any equipment or materials that the inspector considers may be required for any purpose for which the power of entry is being exercised;

(c) to make such examination and investigation as the inspector considers necessary, and for this purpose to install or maintain monitoring or other apparatus on the premises;

(d) to direct that those premises or any part of them, or anything in or on them, shall be left undisturbed (whether generally or in particular respects) for so long as is reasonably necessary for the purposes of any examination or investigation under sub-paragraph (c);

(e) to take such measurements and photographs and make such recordings as the inspector considers necessary for the purpose of any examination or investigation under sub-paragraph (c);

(f) to take samples or cause samples to be taken of any thing found in or on the premises or in any air, water, land or seabed (including the subsoil of the seabed) in, on or in the vicinity of, the premises;

(g) in the case of any thing found in or on the premises, cause it to be dismantled or subjected to any process or test (but not so as to damage or destroy it unless that is necessary);

(h) in the case of any thing mentioned in sub-paragraph (g), take possession of it and detain it for so long as is necessary for all or any of the following purposes—

(i) to examine it, or cause it to be examined and do to it anything which the inspector has power to do under that sub-paragraph;

(ii) to ensure that it is not tampered with before the examination of it is completed; and

(iii) to ensure that it is available for use as evidence in any proceedings for an offence under these Regulations or under Chapter 3 of the Energy Act 2008;

(i) to require any person who the inspector has reasonable cause to believe is able to give any information relevant to any examination or investigation under sub-paragraph (c)—

(i) to attend at a place and time specified by the inspector;

(ii) to answer (in the absence of any person other than persons whom the inspector may allow to be present and a person nominated to be present by the person on whom the requirement is imposed) such questions as the inspector thinks fit to ask; and

(iii) to sign a declaration of truth of that person’s answers;

(j) to require the production of (or where the information is recorded in computerised form, the furnishing of extracts from), and inspect and take copies of or of any entry in—

(i) any records which are required to be kept by virtue of any provision of any licence or storage permit;

(ii) any records which the inspector considers it necessary to see for the purposes of any examination or investigation under sub-paragraph (c); and

(k) to require any person to afford the inspector such facilities and assistance with respect to any matters or things within that person’s control or in relation to which that person has responsibilities as the inspector considers are necessary to enable the inspector to exercise any of the powers conferred by these Regulations and this Schedule.

2. Where an inspector proposes to exercise the power conferred by paragraph 1(g) in the case of a thing found on any premises, the inspector must, if so requested by a person who at the time is present on and has responsibilities in relation to those premises, cause anything which is to be done by virtue of that power to be done in the presence of that person.

3. Before exercising the power conferred by paragraph 1(g), an inspector must consult—

(a) such persons having duties on the premises where the thing is to be dismantled or subjected to the process or test; and

(b) such other persons,

as appear to the inspector appropriate for the purpose of ascertaining what dangers, if any, there may be in doing anything which the inspector proposes to do or cause to be done under the power.