Part 9Associated activities

Part 9—Associated activities 56—Associated activities licence (1) An associated activities licence— (a) authorises the holder of the licence (the primary licence)— (i) to establish and operate associated facilities on land outside the area of the primary licence; (ii) without limiting subparagraph (i), to carry out any type of associated regulated activity on land outside the area of the primary licence; (b) for that purpose, confers rights of access to and use of land to which the licence relates on terms and conditions specified in the licence. (2) An associated facility or an associated regulated activity is anything that is reasonably necessary for, or incidental to, carrying on regulated activities in the area of the primary licence, or in the vicinity of the area of the primary licence. (3) For example— (a) an associated activities licence might be granted to the holder of an exploration licence, a retention licence or a production licence authorising the holder of the licence to drill a well from an area outside the area of the primary licence for obtaining access to geological structures within the area of the primary licence; (b) an associated activities licence might be granted authorising the holder of the licence to establish and operate facilities within the licence area such as— (i) a pipeline; (ii) a processing plant; (iii) a camp, airport, building or other infrastructure; (iv) commercial or recreational facilities for people involved in regulated activities. 57—Area of associated activities licence (1) An associated activities licence cannot be granted for an area exceeding— (a) in a case involving facilities or activities that, in the opinion of the Minister, are permanent (or effectively permanent)—5 km2; (b) in any other case—1 500 km2. (2) However, these restrictions on the area of a licence do not apply if the licence area is in the form of a corridor with a width of 50 m or less. 58—Term of associated activities licence (1) Subject to subsection (2), an associated activities licence is an adjunct to the primary licence and is, subject to its terms, granted for the same term, and renewable at the same time and in the same way as the primary licence. (2) An associated activities licence for activities that, in the opinion of the Minister, are temporary in nature will be granted for a term determined by the Minister (which may be a term that takes into account any decommissioning, rehabilitation or other action that may be required at the conclusion of the activities and which may be renewed from time to time as the Minister thinks fit). 59—Relationship with other licences (1) An associated activities licence may be granted in respect of an area comprised within the area of another licence. (2) Subject to any relevant licence conditions, the rights conferred by an associated activities licence prevail over rights conferred by another licence in respect of the same area. (3) Before the Minister grants an associated activities licence for an area covered by another licence— (a) the Minister must have regard to— (i) the reasons put forward by the applicant for the grant of the licence and, in particular, whether they justify the grant of the licence in derogation from the rights of the existing licensee; and (ii) the legitimate business interests of the existing licensee; and (iii) the effect of the operations to be carried out under the associated activities licence on the operations conducted under the existing licence; and (iv) the operational and technical requirements for the safe, efficient and reliable conduct of operations under both licences; and (v) any other matters the Minister considers relevant; and (b) the Minister must consult with the existing licensee about the matters referred to in paragraph (a) and about the conditions to be included in the licence (unless the existing licensee is the person applying for the associated activities licence). (4) If an associated activities licence is granted over the area of another licence, the holder of the other licence is to be entitled to compensation for diminution of the rights conferred by that licence— (a) to be agreed between the licensees; or (b) in default of agreement, to be determined by the relevant court. (5) If an associated activities licence is granted over the area of another licence, the Supreme Court may, on application by the holder of the other licence made within 2 months after the grant of the associated activities licence, review the terms and conditions of the associated activities licence and vary them as the Court considers just. (6) The Supreme Court may, in exercising its powers under subsection (5), relocate the area of the associated activities licence or vary the area in some other way.