Charging regime for offshore oil and gas activities
Proposed changes to the rates of fees in respect of offshore environmental functions and decommissioning functions
In 2021, the Government proposed changing the method for calculating the charges to industry for work undertaken by OPRED in connection to the Secretary of State’s functions under Part IV of the Petroleum Act 1998 (PA 1998). These changes were enabled by amendments to the PA 1998 made by the Energy Act 2023, and require further, secondary legislation (regulations) to bring the changes into force.
As part of the process for making the new legislation, OPRED consulted on draft regulations, and draft guidance explaining how the new charging regime will work in practice. This consultation is now closed and responses are being considered. A copy of the consultation document can be found here.
The rates for fees included in the consultation document are no longer accurate. In connection with the fees for environmental functions and the new decommissioning charging regime, OPRED is now consulting on the revised hourly rates for specialist and non-specialist staff, which will be used to calculate the costs recovered in connection with the Secretary of State’s statutory environmental and decommissioning functions.
This consultation sets out the details of the revised rates, the specific questions we are seeking feedback on, and how to respond to the consultation.
When responding, please state whether you are responding as an individual or representing the views of an organisation. Your response will be most useful if it is framed in direct response to the questions posed in the consultation document, though further comments and evidence are also welcome.