My Lords, these amendments seek to amend Chapter 3 of Part 2 of the Bill, relating to information and samples. This is another smorgasbord of amendments and I shall attempt to do justice to the contributions that have been made.
Amendment 24 seeks to broaden the definition of “petroleum-related information” that is used throughout Chapter 3 of Part 2. The broadening of this term is to include information acquired by relevant persons in the course of carrying out activities that were once, but are no longer, relevant to fulfilment of the principal objective. I confess that we are not certain what the gap is that the amendment seeks to fill, but I am very happy to engage with the noble Lord, Lord Whitty, to see specifically whether there is a gap and whether we need to fill it. We feel that, as drafted, the clause provides the Oil and Gas Authority with the power to acquire all the information that it is likely to require to fulfil its role.
Amendment 25 seeks to ensure that the two definitions of petroleum-related information are not interdependent. It is our view, having looked at this and having had lawyers look at it, the provisions, as drafted, are not interdependent. Any information that an offshore licensee acquires or creates that is relevant to the principal objective will fall within paragraph (a) and anything a licensee acquires in the course of carrying out activities under their licence which is not relevant to the principal objective would fall within the scope of paragraph (b). This is clarified in the final part of that paragraph, which specifies that in order to fall within paragraph (b) the information cannot also fall within paragraph (a). So I do not think that they can be interdependent, but I am happy to have another look to make sure that we are right. We feel that the clause allows the Oil and Gas Authority to access any information that licensees acquire under their licences, including information which is not relevant to the fulfilment of the principal objective.
I thank those noble Lords who spoke on Amendment 26, which seeks to insert a new subsection into Clause 19 for the purpose of confirming that the provisions within Chapter 3 of Part 2 of the Bill, relating to information and samples, apply for the purpose of data sharing with carbon capture and storage operators. The noble Baroness, Lady Worthington, made some telling points on samples in general. We will look at the points she made about access to the archive and so on—however, we believe that nothing
within Chapter 3 prevents the Oil and Gas Authority disclosing information and samples to carbon capture and storage operators, outside the general restrictions provided for in Clause 27. These general restrictions apply to the disclosure of all protected information acquired by the Oil and Gas Authority under its powers in Chapter 3, to any person. Similarly, carbon capture and storage operators are given no special treatment by the clauses, in so far as there is no provision allowing disclosure to them and not to others. Once restricted information is publishable it may be disclosed to any person, including any carbon capture and storage operator.
Amendment 26A relates to Clause 21, which provides a power for the Secretary of State to make regulations imposing obligations on offshore licensees to retain information and samples where there has been a termination of rights under the licensee’s licence. This information can be of significant importance to the Oil and Gas Authority and the rest of the UK continental shelf, and it is therefore important that the Oil and Gas Authority can continue to access this information and samples after a licence is terminated. Clause 21 states that regulations may provide for the requirements to retain information to continue following a termination of the licensee’s rights under the licence, but the amendment would nullify these obligations if the licensee whose licence rights had been terminated ceases to be in business.
The most frequent ground for termination of a licensee’s rights under a licence is where a licensee transfers interests in a licence to another party. In that case, the rights granted under the licence continue for the party to whom they have been transferred but are automatically terminated in respect to the transferring party. Where a licence is revoked, the obligations and liabilities in respect of that licence continue, even in cases where a licensee becomes insolvent. This is done to protect the regulator from acquiring onerous and costly liabilities which may result from that licence.
This amendment is particularly relevant to information and samples plans, as provided for by Clause 23. These plans are intended to safeguard petroleum-related information and samples during licence events, such as the revocation of a licence after a company becomes insolvent. In such a case it would be imperative for the rights and obligations requiring the retention of information and samples to continue past the termination of rights and until the information and samples plan can be put in place. The amendment would prevent this and allow those companies which cease to be in business legitimately to dispose of the petroleum-related information and samples which they hold. This would be a significant and severe loss for the Oil and Gas Authority and the UK continental shelf as a whole. That is something to which we cannot agree and I am sure that it is not the intention of the amendment. I hope, in those circumstances, that that point will be taken on board.
Amendment 27 seeks to specify that an information and samples plan, as provided for by Clause 23, may provide for the transfer of petroleum-related information or samples to a new licensee or a new carbon dioxide storage licence holder. The policy intent of the information and samples provisions is to ensure that petroleum-related
information is accounted for and safeguarded against loss during licence events, such as the surrender and expiry of licence rights. That said, nothing within the existing provisions would prevent a plan providing for the transfer of information to any other person, including a carbon dioxide storage licence holder, and for that person to take on the obligations that are imposed by that plan. The amendment makes presentational but non-material changes to the Bill and I therefore undertake to take it away for further consideration.
Amendment 28 seeks to insert a new subsection into Clause 25 for the purpose of confirming that information and samples plans shall also provide for the sharing of petroleum-related information with carbon capture and storage operators. As I have explained, the information and samples provisions are intended to ensure that petroleum-related information is accounted for and safeguarded against loss during licence events. They are not specifically intended to facilitate the sharing of information between parties. However, I confirm that nothing within the existing information and samples provisions prevents petroleum-related information being shared with carbon capture and storage operators.
Amendments 29 and 30 seek to broaden the scope of the Oil and Gas Authority’s power to acquire information and samples as set out at Clause 26 by either removing the requirement for the Oil and Gas Authority’s function for which the information is requested to be relevant to the fulfilment of the principal objective, or to add an alternative requirement that the function is relevant to the promotion and development of carbon capture transport and storage. Clause 26 is in response to recommendations made in the Wood review, which noble Lords will be aware focused virtually solely on oil and gas exploration and production offshore. The clauses are therefore drafted very specifically to cater for offshore oil and gas, and the focus on the principal objective and offshore licences reflects that. This is an important focus, and any expansion of these powers beyond it may have significant repercussions for other areas of the Oil and Gas Authority’s functions. Much of the information acquired under this power, although relevant to maximising economic recovery in the United Kingdom, will also be of interest and importance to other industries, such as carbon capture and storage. Nothing within the Bill restricts access to that information by any person once it has been published under the disclosure provisions.
The noble Baroness’s Amendment 30A requires that the cases in which protected information may be disclosed by the Oil and Gas Authority, which are detailed in Clause 27(5), must apply in defined circumstances. Clause 27(5) seeks to set out a clear set of circumstances in which protected material may be disclosed under Chapter 3 of Part 2 of the Bill. I feel that we do this, but I will be happy to write to my noble friend Lady Byford to seek further to clarify this issue.
Furthermore, Clause 27(8) provides that protected material may be published or made available to the public at such times as may be specified in regulations made by the Secretary of State. I therefore consider that there is sufficient detail within the clause to ensure that the circumstances under which protected material may be disclosed are understood.
On the point made by the noble Baroness on stifling innovation, we do not believe that that will happen. The obligations continue indefinitely or until an information and samples plan is put in place. If a company ceases in business, the plan can provide for the ongoing obligations to end, and the information is then handed to the Oil and Gas Authority.
I will look closely at the proceedings in Hansard to ensure that we have looked in detail at those points. As I say, with regard to the one point where the matter seemed to be largely presentational, I will have a look at that to consider whether an amendment is advisable. However, with that, I hope that the noble Lord will be able to withdraw his amendment.