Oil and Pipelines Act 1985 facts for kids
| Act of Parliament | |
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| Long title | An Act to provide for the establishment and functions of a body corporate to be called the Oil and Pipelines Agency, for the vesting in that Agency of the property, rights and liabilities of the British National Oil Corporation and for the subsequent dissolution of that Corporation. |
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| Citation | 1985 c. 62 |
| Introduced by | The Minister of State, Department of Energy (Alick Buchanan-Smith) (Second reading) 14 May 1985 (Commons) |
| Territorial extent | United Kingdom |
| Dates | |
| Royal assent | 30 October 1985 |
| Commencement | 1 December 1985 |
| Other legislation | |
| Amends | |
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Status: Current legislation
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| Text of the Oil and Pipelines Act 1985 as in force today (including any amendments) within the United Kingdom, from legislation.gov.uk | |
The Oil and Pipelines Act 1985 was a special law passed in the United Kingdom. It created a new group called the Oil and Pipelines Agency. This agency was set up to handle oil and gas pipelines and storage for the government. It also took over from an older group, the British National Oil Corporation, which was then closed down.
Contents
Why Was This Act Needed?
The British National Oil Corporation
The British National Oil Corporation (BNOC) was created in 1975. Its job was to manage oil production and trading for the UK government. BNOC had two main parts: one for finding and producing oil, and another for buying and selling it.
Changes to Oil Business
In 1982, a new law, the Oil and Gas (Enterprise) Act 1982, changed things. The part of BNOC that found and produced oil became a separate company called Britoil. Britoil was then sold to private investors.
The other part of BNOC, which traded oil, stayed with the government. However, by 1983, oil prices were falling. It became difficult for BNOC to make money from trading oil. So, the government decided to close BNOC down.
Creating the Oil and Pipelines Agency
The Oil and Pipelines Act 1985 was passed to make these changes happen. It officially closed BNOC. It also transferred the government's oil pipelines and storage sites to a new group. This new group was the Oil and Pipelines Agency.
What the Oil and Pipelines Act Did
The Oil and Pipelines Act 1985 became law on October 30, 1985. Its main goal was to create the Oil and Pipelines Agency. It also moved all the property and responsibilities of the British National Oil Corporation to this new agency. After that, the old corporation was officially closed.
Key Parts of the Act
The Act had 8 main sections and 4 detailed schedules. Here are some of the most important parts:
- Section 1: This part created the Oil and Pipelines Agency. It said the agency would have a chairman and two to four other members. These members were chosen by the government minister in charge of energy.
- Section 2: This section explained what the agency would do. Its jobs included buying, selling, and dealing with oil. It also managed oil pipelines and storage facilities for the government.
- Section 3: This part moved all the property and rights from the old British National Oil Corporation to the new agency.
- Section 4: The agency was given the job of selling off any extra property or rights from the old corporation.
- Section 5: This section made sure the agency had to follow any instructions from the Secretary of State (the government minister).
- Section 7: This part made changes to older laws and removed some parts of them. For example, it removed the parts of the 1975 Act that created BNOC.
What Happened Next
The Oil and Pipelines Act 1985 officially started on December 1, 1985. On this day, all the assets from the British National Oil Corporation moved to the new Oil and Pipelines Agency. The British National Oil Corporation itself was officially closed down a few months later, on March 27, 1986.
See also
- Oil and gas industry in the United Kingdom
- North Sea Oil
- Oil and Pipelines Agency
- Oil and Pipelines Agency
