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ARTICLE · 13 JUNE 2011

DECC Consults on Fee for Decommissioning Programmes

CMS Cameron McKenna Nabarro Olswang
Explore more from CMS Cameron McKenna Nabarro Olswang

On 30 March 2011, the Department of Energy and Climate Change ("DECC") issued its consultation on charging a fee in respect of decommissioning programmes for offshore oil and gas installations and pipelines.

United KingdomEnergy and Natural Resources

Edited by Judith Aldersey-Williams and Wai-Man Shek Robertson

On 30 March 2011, the Department of Energy and Climate Change ("DECC") issued its consultation on charging a fee in respect of decommissioning programmes for offshore oil and gas installations and pipelines.

The Petroleum Act 1998 gives the Secretary of State the power to charge a fee when a decommissioning programme is submitted or a request is made for the revision of a programme.  Currently, DECC does not charge the oil and gas industry such fees.  DECC now intends to charge a fee for providing this function rather than passing the costs onto the taxpayer, which it states would be consistent with the "polluter pays" principle of environmental law.  According to DECC, the objective of the proposed fee is to ensure that those who are responsible for offshore oil and gas installations and pipelines pay an appropriate fee, which will enable DECC to recover its costs which it believes would be fair

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