Petroleum Act 1998 facts for kids
| Act of Parliament | |
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| Long title | An Act to consolidate certain enactments about petroleum, offshore installations and submarine pipelines. |
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| Citation | 1998 c. 17 |
| Introduced by | The Lord Chancellor, Lord Irvine of Lairg (Second Reading) 12 January 1998 (Lords) |
| Territorial extent | Great Britain |
| Dates | |
| Royal assent | 16 June 1998 |
| Other legislation | |
| Amends | Petroleum Act 1987 (c. 12) Parts I and II |
| Repeals/revokes | Petroleum (Production) Act 1934 (24 & 25 Geo. 5 c. 36) and the Petroleum and Submarine Pipe-lines Act 1975. (c. 74) |
| Amended by |
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Status: Amended
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| Text of statute as originally enacted | |
| Revised text of statute as amended | |
| Text of the Petroleum Act 1998 as in force today (including any amendments) within the United Kingdom, from legislation.gov.uk | |
The Petroleum Act 1998 is a special law made by the Parliament of the United Kingdom. It brought together many older laws about how we find, use, and manage oil and gas (also called petroleum) from under the sea. This Act helps control things like getting licenses, running oil platforms, and taking apart old equipment and pipelines in the ocean.
What is the Petroleum Act 1998?
This Act is known as a "consolidation Act." This means it didn't create many new rules. Instead, it gathered several existing laws about petroleum into one easy-to-understand document. It helps make sure everyone knows the rules for working with oil and gas in the UK.
The Act covers important areas like:
- Who owns the rights to search for and get petroleum.
- How licenses are given out for these activities.
- How UK laws apply to offshore (out at sea) activities.
- Rules for building and using pipelines under the sea.
- How to safely remove or "decommission" old oil platforms and pipelines.
The Petroleum Act 1998 replaced older laws such as the Petroleum Production Act 1934 and the Petroleum and Submarine Pipelines Act 1975. It also updated parts of the Petroleum Act 1987.
Who owns the UK's oil and gas?
The Act confirms that all rights to the UK's oil and gas belong to the Crown (which means the government, acting for the country). This rule first came from a law in 1934. The Oil and Gas Authority is now in charge of giving out licenses to companies that want to search for and get petroleum. This was made clear by the Energy Act 2016.
The Act also includes a goal to get the most economic value from the UK's offshore oil and gas. This was added through the Infrastructure Act 2015.
Main Rules of the Act
The Petroleum Act 1998 is divided into different parts, each dealing with specific rules.
Part I: Petroleum Rules
This part talks about the general rules for petroleum. It includes details about licenses.
- One important rule, added by the Infrastructure Act 2015, talks about "associated hydraulic fracturing" (often called fracking). This is a way to get gas from rocks deep underground.
- The Act sets rules for fracking, like how much fluid can be used.
- It also says that fracking cannot happen closer than 1,000 meters (about 3,300 feet) to the surface.
- There must be monitoring of the soil and air to make sure everything is safe.
- Fracking is not allowed in areas that protect underground water sources.
Part II: Offshore Activities
This part explains how UK laws apply to activities happening on, under, or above oil platforms and other structures out at sea.
- Section 10 makes sure that if someone breaks a criminal law on an offshore platform, they can be charged under UK criminal law.
- Section 11 does the same for civil laws, meaning rules about disputes between people or companies.
- These rules help keep everyone safe and make sure there's a clear legal system for offshore work.
Part III: Submarine Pipelines
This section focuses on pipelines that run under the sea.
- You cannot build or use a submarine pipeline without special written permission from the government.
- This permission can come with specific conditions or limits.
- The government can also ask for changes to pipelines, like increasing their capacity.
- There are rules about who can use a pipeline to transport materials.
- If a pipeline no longer has permission, it can be taken over by the government.
- The government can send inspectors to check on pipelines.
- This part also explains what happens if someone breaks these pipeline rules, including penalties.
Part IV: Taking Apart Offshore Installations
This part deals with what happens when an oil platform or other offshore structure is no longer needed. This process is called "abandonment" or "decommissioning."
- Companies must create plans for how they will take apart or remove their offshore installations.
- These plans need to be approved by the government.
- Companies have a duty to carry out these approved plans.
- There are rules about who is responsible for paying for this work.
- This part also covers what happens if a company fails to follow these rules, including penalties.
Part V: Other Important Rules
This final part covers various general rules for the Act. It includes details about how the Act started and how it connects with other laws. It also mentions how petroleum revenue is shared with Northern Ireland and the Isle of Man.
Later Changes to the Act
Since 1998, other laws have added new parts to the Petroleum Act.
- The Infrastructure Act 2015 added a new section called Part 1A.
- The Energy Act 2016 then expanded this Part 1A.
Part 1A: Getting the Most from UK Petroleum
This new section focuses on making sure the UK gets the most economic benefit from its oil and gas resources. It sets out:
- A main goal and strategy for managing petroleum.
- How the Oil and Gas Authority should use its powers.
- How the government should use its powers.
- Rules for companies doing petroleum activities.
- How the government reports on these efforts.
- Rules for the security and strength of the oil and gas industry.
- How to create and update the strategy for getting the most petroleum.
See also
- Petroleum Act
- Oil and gas industry in the United Kingdom
