Petroleum and Submarine Pipe-lines Act 1975 Facts for Kids

The Petroleum and Submarine Pipe-lines Act 1975 (1975 chapter 74) was a law made by the Parliament of the United Kingdom. It was all about how petroleum (oil) and its products were found, owned, used, moved, and processed in the UK. This law came out in 1975, right when the UK started getting its first oil from the North Sea. Its main goal was to give the public more control over the oil industry. The Act created a new group called the British National Oil Corporation and a special "National Oil Account." It also changed the rules for oil permits, controlled how underground pipelines were built and used, and managed the building of oil refineries.

Quick facts for kids
Petroleum and Submarine Pipe-lines Act 1975
Dates
Act of Parliament
Parliament of the United Kingdom
Long title	An Act to establish the British National Oil Corporation and make provision with respect to the functions of the Corporation; to make further provision about licences to search for and get petroleum and about submarine pipe-lines and refineries; to authorise loans and guarantees in connection with the development of the petroleum resources of the United Kingdom and payments in respect of certain guarantees and loans by the Bank of England; and for purposes connected with the matters aforesaid.
Citation	1975 chapter 74
Introduced by	Eric Varley (second reading) (Commons)
Territorial extent	UK and offshore
Royal assent	12 November 1975
Commencement	At Royal Assent
Other legislation
Repealed by	Petroleum Act 1998
Status: Repealed

Why the Act Was Needed
What the Act Did
What Happened After the Act
Later Changes to the Act
See also

Why the Act Was Needed

When a new government took power in October 1974, they saw some big problems with how the UK oil industry was run. They had promised to make sure the government had a bigger share in all new oil permits. They also wanted to negotiate for a bigger share in existing permits.

They planned to set up the British National Oil Corporation (BNOC). This new group would help the government control how much oil was taken out of the ground. It would also manage pipelines, exploration (looking for oil), and development (setting up oil fields).

The BNOC was meant to do several things:

Work with private companies on oil production permits.
Buy and sell oil products.
Explore to find out how much oil was available.
Give expert advice to the government.
Help private companies develop offshore oil.

The government also wanted the power to lend money or guarantee loans for oil companies. This would help them develop new oil discoveries in the North Sea.

There were also concerns about pipelines. There wasn't much control over where they were built, which could lead to too many of them. There were also worries about damage, pollution, and the safety of workers building them.

Finally, decisions about building oil refineries didn't always consider the country's overall oil policy. To make the best use of North Sea oil, the UK needed the right kinds of refineries. The Petroleum and Submarine Pipe-lines Act 1975 was created to fix these issues.

What the Act Did

The Petroleum and Submarine Pipe-lines Act 1975 became law on 12 November 1975. This is called receiving Royal Assent. It meant the Queen had officially approved it.

The Act had 49 sections, divided into 5 main parts, plus 4 extra lists called Schedules.

The British National Oil Corporation

This part of the Act created the British National Oil Corporation (BNOC).

It explained how the BNOC would be set up.
It gave the BNOC general powers and duties, and said the government could give it directions.
It set out how the BNOC would manage its money, including borrowing and getting loans from the government.
It also covered how the BNOC would share information and work with other groups like the British Gas Corporation.

Oil Production Permits

This part changed the rules for permits that allowed companies to search for and get petroleum. It even applied some new rules to permits that already existed.

Submarine Pipelines

This section focused on pipelines that run under the sea.

It gave the government control over building and using these pipelines. Companies needed special permission to build them.
It set rules for how pipelines could be used and how their capacity (how much they could carry) could be increased.
It also gave other companies the right to use existing pipelines.
The Act included rules for safety and allowed inspectors to check pipelines.
It also covered what would happen if rules were broken, including legal consequences.

Oil Refineries

This part of the Act gave the government control over building new oil refineries or making existing ones bigger. Companies needed special permission to do this.

Other Important Parts

This section covered various other things:

It created the National Oil Account, a special government bank account for oil money.
It allowed the government to give loans to help develop the UK's oil resources.
It also made some changes to other existing laws.

What Happened After the Act

The British National Oil Corporation (BNOC) officially started on 13 November 1975. It took over the oil and gas businesses that belonged to the National Coal Board. The BNOC had a lot of money to spend on developing oil fields.

The BNOC could negotiate to buy up to 51 percent of the oil produced from an oil field. In reality, they often sold this oil back to the companies that would refine it. In 1976, the BNOC gained control of most of Burmah Oil Company's interests in the Ninian and Thistle oil fields. This meant BNOC became an actual oil operating company.

The government had planned to buy a 51 percent share in oil finds as a full permit holder. However, they decided instead to make agreements where they had the right to buy up to 51 percent of the crude oil and natural gas liquids at market price. They also bought any natural gas not already purchased by the British Gas Corporation.

New rules were made in 1977 for submarine pipelines, and inspectors were appointed to check them.

Later Changes to the Act

Over the years, parts of the Petroleum and Submarine Pipe-lines Act 1975 were changed or removed by newer laws:

The Oil and Gas (Enterprise) Act 1982 split the British National Oil Corporation. One part became Britoil, which was sold to private investors. The other part remained a trading arm.
The Oil and Pipelines Act 1985 officially got rid of the British National Oil Corporation. It also transferred all its property and responsibilities to a new group called the Oil and Pipelines Agency.
The Petroleum Act 1987 made rules for getting rid of offshore oil platforms and submarine pipelines when they were no longer needed. It also removed the sections of the 1975 Act that dealt with oil refineries.
Finally, the entire Petroleum and Submarine Pipe-lines Act 1975 was replaced and removed from law on 15 February 1999 by the Petroleum Act 1998.

Petroleum and Submarine Pipe-lines Act 1975 facts for kids

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