# Petroleum Act 1998

The Petroleum Act 1998 (c. 17) is an act of the Parliament of the United Kingdom which consolidated arrangements for the licensing, operation and abandonment of offshore installations and pipelines. As a consolidation Act, it did not change the substantive law, although certain Acts were amended and repealed.

## Background

This was a consolidation act which brought together a number of enactments on petroleum. It dealt with rights and licences to search for and get petroleum; the application of criminal and civil law to offshore activities; authorisations for submarine pipelines; and the decommissioning of offshore installations and pipelines. The main acts which were to be consolidated were the Petroleum (Production) Act 1934 (24 & 25 Geo. 5. c. 36); the Petroleum and Submarine Pipe-lines Act 1975 (c. 74); the Oil and Gas (Enterprise) Act 1982; and the Petroleum Act 1987 (c. 12), parts I and II.
The Act vested all rights to the UK’s petroleum resources in the Crown; a right first established by the Petroleum Production Act 1934 (24 & 25 Geo. 5. c. 36). It also established the right to grant licenses to ‘search and bore for and get’ petroleum, to the Oil and Gas Authority; this was through the retrospective application of the Energy Act 2016. The act also made provision for the abandonment of offshore installations and pipelines. The Act also puts into statute the objective of maximising the economic recovery of the UK’s offshore oil and gas resources (by means of the Infrastructure Act 2015). The Act repealed in their entirety the Petroleum Production Act 1934 (24 & 25 Geo. 5. c. 36) and the Petroleum and Submarine Pipe-lines Act 1975 (c. 74). It also amended parts I and II of the Petroleum Act 1987 (c. 12), concerning the abandonment of Offshore Installations and the licensing of petroleum production.

## Provisions
### Part I Petroleum (sections 1 to 9)

Section 4 has further clauses on licence provisions. Section 50 of the Infrastructure Act 2015 appended this section. It defines 'associated hydraulic fracturing' as more than 1,000 cubic metres of fluid per stage, or more than 10,000 cubic metres of fluid in total. In addition, conditions were attached that mean no fracking can take place at a depth shallower than 1,000 meters, and that soil and air monitoring must be put in place. The regulations state that "The associated hydraulic fracturing will not take place within protected groundwater source areas". 'Protected groundwater source area' does not appear to be defined.

### Part II Offshore activities

Section 10 applied UK criminal law to acts or omissions which takes place on, under or above an offshore installation which would constitute an offences under UK criminal law.
Section 11 applied UK civil law to acts or omissions which takes place on, under or above an offshore installation which would constitute an offences under UK civil law.
Section 12 requires in England and Wales the consent of the Director of Public Prosecutions to instigate proceedings for an offence.
Section 13 interpretation of Part II

### Part III Submarine pipelines

Section 14 prohibits the construction or use of any controlled pipeline without the written authorisation by the Secretary of State.
Section 15 authorisations may contain limitations or specified conditions
Section 16 modifications to increase capacity or installation of a junction may be specified by the Secretary of State
Section 17 a person may apply to have material conveyed by a pipeline
Section 18 authorisations may be terminated
Section 19 a pipeline which ceases to have an authorisation shall be transferred to and vested in the Secretary of State
Section 20 the Secretary of State may appoint inspectors
Section 21 specifies offences and enforcement
Section 22 criminal proceedings
Section 23 civil liability for breach of statutory duty
Section 24 application of Part III
Section 25 making of orders and regulations
Sections 26, 27 meanings of pipeline and owner
Section 28 interpretation of Part III

### Part IV Abandonment of offshore installations

Section 29 Preparation of programmes
Section 30 Persons who may be required to submit programmes
Section 31 Section 29 notices: supplementary provisions
Section 32 Approval of programmes
Section 33 Failure to submit programmes
Section 34 Revision of programmes
Section 35 Withdrawal of approval
Section 36 Duty to carry out programmes
Section 37 Default in carrying out programmes
Section 38 Financial resources
Section 39 Regulations
Section 40 Offences: penalties
Section 41 Offences: general
Section 42 Validity of Secretary of State’s acts
Section 43 Notices
Section 44 Meaning of “offshore installation”
Section 45 Interpretation of Part IV

### Part V Miscellaneous and General

Section 46 Northern Ireland and Isle of Man shares of petroleum revenue
Section 47 Loans for development
Section 48 Interpretation
Section 49 Transitional provisions and savings
Section 50 Consequential amendments
Section 51 Repeals and revocations
Section 52 Commencement
Section 53 Short title and extent

## Subsequent legislation

The Infrastructure Act 2015 inserted part 1A into the Petroleum Act 1998. The Energy Act 2016 extended part 1A.
PART 1A Maximising economic recovery of UK petroleum
Section 9A The principal objective and the strategy
Section 9B Exercise of certain functions of the OGA
Section 9BA Exercise of certain functions of the Secretary of State
Section 9C Carrying out of certain petroleum industry activities
Section 9D Reports by the Secretary of State
Section 9E OGA's security and resilience functions
Section 9F Producing and revising a strategy
Section 9G Procedure for producing and revising a strategy
Section 9H “Upstream petroleum infrastructure” and its owners
Section 9HA “Relevant offshore installations” and their owners
Section 9I Other interpretation