Regulations to Act relating to petroleum activities

Laid down by Royal Decree 27 June 1997 pursuant to Act 29 November 1996 no 72 relating to petroleum activities, section 10-18 and Act 10 February 1967 relating to procedure in cases concerning the public administration, section 13 c third paragraph and section 19 third paragraph and section 3 of Act No. 12 of 21 June 1963 relating to scientific research and exploration for and exploitation of sub-sea natural resources other than petroleum resources. Last amended 23 December 2022 No 2503.

CHAPTER 2. SURVEY LICENCES

Section 3. Applications for survey licences
Section 4. Survey activities authorized by the licence
Section 5. Payment for the survey licence
Section 6. Submission of information in connection with surveys

CHAPTER 2a. IMPACT ASSESSMENTS RELATING TO OPENING OF NEW AREAS FOR PETROLEUM ACTIVITIES

Section 6a. The competent authority and the object of the impact assessment
Section 6b. Impact assessment programme
Section 6c. The impact assessment
Section 6d. Submission of the proposal

CHAPTER 1
INTRODUCTORY PROVISIONS

Section 1.
Scope of application

These regulations shall be applicable to the petroleum activities as mentioned in Act 29 November 1996 no 72 relating to petroleum activities, section 1-4.

Section 2.
Definitions

In these regulations the following definitions shall apply:

the Ministry, the Royal Ministry of Energy,
the Act, Act 29 November 1996 no 72 relating to petroleum activities,
public entity, any body corporate on which the public authorities, directly or indirectly, can exercise decisive influence by virtue of ownership, capital interests or rules governing the body corporate. The requirement to decisive influence shall be assumed to have been met when public authorities, in relation to a body corporate, either directly or indirectly:
owns the majority of the subscribed capital of the body corporate, or
controls the majority of the votes associated with shares issued by the body corporate, or
can appoint more than 50 per cent of the members of the administrative, executive or controlling body of the body corporate,
test production, production of petroleum for a limited period of time prior to ordinary production. Test production is production for the purpose of acquiring information about the commerciality of a petroleum deposit, its production properties or applicable production technology.

For fiscal purposes the following terms shall in these regulations be understood to mean:

e. shipment point:

– in the case of shipment by ship, the side of the ship,

– in the case of transportation by pipeline, the entry flange of the landing pipeline, or, if pumping units have been installed for the purpose of driving petroleum through the landing pipeline, the entry flange of such pumping units,

f. oil, petroleum which is liquid at the shipment point,

g. production area, the area which covers the petroleum deposits which are produced through the same production system, and which are located in blocks which have been granted to the same licensee. The same production system may consist of one or more production facilities which have either joint or separate processing or shipment installations.

h. CO₂ flows, the mass flow of CO₂ and any accidental accompanying substances from CO₂ capture processes,

i. storage complex, storage location and the geological surroundings that may be of significance for the security of the storage

j. storage location, a certain area within a geological formation that is used for geological storage of CO₂, and associated surface and injection facilities,

k. subsea reservoir, a geological unit, delimited by rock types through structural or stratigraphic boundaries, which has contained petroleum and/or water in the formation, or a combination thereof. In the event of doubt, the Ministry shall decide what is to be regarded as a subsea reservoir,

The definitions of the Act are applicable to these regulations.

CHAPTER 2
SURVEY LICENCES

Section 3.
Applications for survey licences

Application for survey licences according to the Act section 2-1 shall be submitted to the Norwegian Offshore Directorate and shall contain information regarding:

name, address and nationality of the applicant. If the application comprises more than one applicant, all the names, addresses and nationalities shall be stated,
who in Norway will be the representative in relation to the authorities,
the area which is comprised by the application,
the purpose and the nature of the survey.

The Norwegian Offshore Directorate may require additional information.

Attestation for payment of fee, cf. section 5, shall be enclosed with the application.

Application for a survey licence with enclosures shall be written in Norwegian or English.

Section 4.
Survey activities authorized by the licence

The survey licence authorises geological, petrophysical, geophysical, geochemical and geotechnical activities. Shallow drilling may be carried out to a depth stipulated by the Norwegian Offshore Directorate. The Norwegian Offshore Directorate may limit the individual survey licence to apply to particular types of survey.

The Norwegian Offshore Directorate may make it a condition for a survey licence that information shall be given about sale or exchange of survey results, and may stipulate conditions for the implementation of the survey activities.

Section 5.
Payment for the survey licence

In respect of a survey licence, a fee amounting to NOK 65 000 per calendar year shall be paid in advance to the State via the Norwegian Offshore Directorate.

If the licensee by 31 December fails to pay the fee for the subsequent year, the survey licence will be discontinued.

For every seismic or electromagnetic survey a fee of NOK 33.000 shall be paid to the State via the Norwegian Offshore Directorate. The fee shall be paid at the latest at the commencement of the survey. If payment of the fee is delayed, interest shall be paid in accordance with the Act of 17 December 1976 No 100 relating to interest on overdue payments etc.

The Ministry may adjust the fee in accordance with changes in the monetary value.

Section 6.
Submission of information in connection with surveys

The licensee shall no later than five weeks prior to the commencement of activities according to a survey licence, submit the following information to the Norwegian Offshore Directorate, the Directorate of Fisheries, the Institute of Marine Research and the Norwegian Armed Forces:

time, duration and accurate information about the area of the survey activities,
survey methods to be used,
what vessel is to be used,

The Norwegian Offshore Directorate stipulates provisions regarding submission of information in connection with surveys, i.a. exception from the time limit stated in the first paragraph.

Vessels that carry out geophysical surveys shall have a fishery expert on board when this is necessary for consideration of the fishery activity in the area. In case of doubt, the Norwegian Offshore Directorate, in consultation with the Directorate of Fisheries, is authorised to make such decisions. The Norwegian Offshore Directorate stipulates provisions regarding fishery experts.

The Norwegian Offshore Directorate shall ensure that a website is available with updated information regarding geophysical surveys.

After the specific activity in pursuance of a survey licence is complete, the licensee shall send data, registrations and results from the activity to the Norwegian Offshore Directorate. Licensees shall also state whether the results, etc. from the survey are to be marketable. The Norwegian Offshore Directorate stipulates provisions regarding submission of such data, registrations and results.

Vessels that carry out geophysical surveys shall have on board and make use of equipment that monitor and reports the position of the vessel and its movement during the survey activities. The Norwegian Offshore Directorate stipulates provisions regarding tracking equipment, including access to data.

This section applies similarly to surveys conducted pursuant to a production licence.

CHAPTER 2a
IMPACT ASSESSMENTS RELATING TO OPENING OF NEW AREAS FOR PETROLEUM ACTIVITIES

Section 6a.
The competent authority and the object of the impact assessment

Pursuant to the Act Section 3-1 the Ministry has the responsibility for impact assessments prior to opening of new areas for petroleum activities. The impact assessment shall contribute to elucidate the different interests that are relevant in the area concerned. The impact assessment shall elucidate the consequences the opening an area for petroleum activities may have on commercial activities and environmental aspects, including the possibility of pollution and expected economical and social effects. The impact assessment shall be carried out in accordance with the provisions of Sections 6b and 6c, and in accordance with any other supplementary provisions laid down by the Ministry.

The provisions of Section 22c are applicable, as appropriate. Decisions made pursuant to Sections 6b and 6c are not to be regarded as individual administrative decisions according to the Public Administration Act.

The provisions laid down in this Chapter shall, as appropriate, apply accordingly for other types of high level assessments.

Section 6b.
Impact assessment programme

A draft programme for the impact assessment shall be prepared. The draft programme shall describe the aspects to be addressed in the impact assessment, including the assessments needed to establish an appropriate decision base. The proposed programme shall describe the planned decision of the opening of the area for petroleum activities, the different possible development solutions in the area, and other issues presumed to be considered. The proposed programme shall include a map of the area.

The Ministry shall submit the proposed programme for consultation to the authorities concerned and industrial organisations, and shall also make the proposed programme available to the public on the Internet. A reasonable time limit shall be set for submitting comments to the proposed programme. The time limit should not be less than six weeks. The final impact assessment programme shall be stipulated by the Ministry on the basis of the proposed programme and the comments thereto. A report shall be made of the comments received and how these are assessed and reflected in the approved programme. A copy of the approved programme shall be sent those who have commented on the proposed programme.

Section 6c.
The impact assessment

The impact assessment shall be based on the approved programme, cf. Section 6b second paragraph, and shall be adapted to issue in question with regard to content, size and detail. Further, the impact assessment shall to the extent possible be based on existing knowledge and necessary updates of such knowledge. The impact assessment shall describe the presumed impacts of opening of the area for petroleum activities, the different possible development solutions and the impact of future petroleum activities in the area. To the extent necessary, the impact assessment shall include i.a.:

a description of the area(s) planned to be opened for petroleum activities;
a description of the relationship to national plans relevant for the area to be opened for petroleum activities, and of relevant environmental goals/standards laid down through national guidelines, national environmental goals, white papers i.a., and how these are reflected in the impact assessment;
a description of assumed impacts on employment and commercial activities, as well as expected economic and social effects of the petroleum activities;
a description of important environmental issues and natural resources, including an overview of the mapping that has been carried out;
a description of the impact of opening the area for petroleum activities in relation to, i.e.: living conditions for animals and plants, the sea bed, water, air, climate, landscape, emergency preparedness and risk, and the joint impact of these;
a short summary of the data and methods used to describe the impacts, and any professional and technical problems in relation to the collection and use of the data and methods;
a description pursuant to litera d) above of the possible transboundary effects of the opening;
an assessment of the need for, and any proposals in relation to further investigation before the execution of the opening;
an assessment of the need for, and any proposals in relation to investigations and measures to monitor and show the actual impacts of the opening and the potential measures to reduce and compensate any adverse effects of importance;
a description of measures available to prevent or compensate for any possible damage and disadvantage.

The impact assessment shall include any necessary illustrations and maps, and a summary.

The Ministry shall submit the impact assessment for consultation to the authorities concerned and to central industrial organisations, and shall also make the impact assessment available on the Internet. At the same time, an announcement shall be made of the consultation in the Norwegian Gazette. A reasonable time limit shall be set for submitting comments to the impact assessment. The time limit shall normally be set to 3 months, and shall not be shorter than 6 weeks. All relevant background documents and scientific reports shall be made available at the offices of the Ministry. To the extent possible, the Ministry shall make relevant scientific reports and other relevant documents available on the Internet.

The Ministry shall, on the basis of comments received, decide whether there is a need for additional assessments or documentation on certain aspects. Any additional assessments shall be submitted for consultation to those who have given statements in the previous consultation process. The time limit for additional comments should not be set shorter than 2 weeks.

Section 6d.
Submission of the proposal

Pursuant to the Act Section 3-1 the proposal to open a new area for petroleum activities shall be submitted to the Parliament. The proposal shall comprise an assessment of the impacts of opening a new area for petroleum activities and of the comments received during the consultation process, as well as an evaluation of the importance given to these comments. The proposal shall consider whether the opening should be made subject to requirements for further investigations to monitor and show the factual impacts of the petroleum activities. The proposal shall also consider whether conditions to reduce and compensate for significant adverse effects should be set.

CHAPTER 3
PRODUCTION LICENCES ETC

Section 7.
Public announcement

The public announcement shall, in addition to what follows from the Act section 3-5, state the expected time for the granting of the licence.

If applications from individual physical persons or bodies corporate are preferred, this shall be stated in the announcement.

The criteria for granting a licence mentioned in section 10 of these regulations shall be included in the announcement. The Ministry decides the format of the announcement. If conditions and requirements are altered after the public announcement, the Ministry shall notify the physical persons or bodies corporate having submitted, or who must be expected to submit, application for the granting of a production licence, within the time limit stipulated for such application.

Section 8.
Applications for production licences

Application for a production licence shall be submitted to the Ministry with a copy to the Norwegian Offshore Directorate. The application shall contain:

name, address and nationality of the applicant, and indication whether the applicant is a physical person or a body corporate,
indication of who in Norway will be the representative in relation to the authorities,
indication of the area or areas to which an application for a production licence applies,
indication of the priorities of the applicant in respect of the areas, in case the application applies to more than one area,
information concerning the activities of the licensee, including financial capacity,
a geological evaluation of the area or areas to which an application for a production licence applies, and how effective petroleum activities are planned for this area,
a financial evaluation of the area or areas to which an application for a production licence applies,
information concerning experience and technical competence of significance to the area or areas to which an application for a production licence applies,
description of the organization and expertise which the applicant will have available in Norway and elsewhere for activities in connection with the area or areas to which an application for a production licence applies,
attestation that the handling fee has been paid.

The Ministry may exempt from the requirement relating to the contents of the application according to the first paragraph, and also require further information.

Application for a production licence shall be written in Norwegian or English.

Section 9.
Handling fee

For the handling of an application for a production licence, a fee of NOK 109 000 shall be paid to the State via the Norwegian Offshore Directorate.

If the fee has not been paid, the application will not be regarded as received.

The Ministry may adjust the fee in accordance with changes in the monetary value.

Section 10.
Criteria for granting production licences and for conducting petroleum activities pursuant to a production licence

Production licences are granted on the basis of the applicant’s technical competence, financial capacity and plan for exploration and production in the area for which a production licence is sought, so that the best possible resource management is promoted.

In the considerations according to the first paragraph it may be taken into account that the applicant has shown any form of inadequate efficiency or inadequate responsibility as a licensee. It may also attach importance to the criteria mentioned in the Act section 3-5 third paragraph, provided these are used on non-discriminatory criteria, and on the considerations mentioned in section 11 second paragraph in these regulations. If two or more applications are regarded to be equal, other relevant objective and non-discriminatory criteria may be used as basis for granting the licence.

The composition of a group of licensees and the appointment of an operator shall be decided on objective and non-discriminatory criteria.

Due to national security considerations, the Ministry may deny access to and the right to conduct petroleum activity if the applicant is de facto under control of a State outside EEA or by citizens from such State.

Section 11.
Conditions and requirements

Conditions and requirements for granting a production licence and for conducting petroleum activities pursuant to a production licence shall be based solely on the need to ensure that the petroleum activities within the area comprised by the production licence are carried out in a proper manner, to ensure considerations as mentioned in the second paragraph.

Conditions for conducting activities pursuant to a production licence shall be based on consideration for national security, public order, public health, transport safety, environment protection, protection of biological resources and national treasures of artistic, historic or archaeological value, the safety of the facilities and the employees, systematic resource management (e g production rate or the optimization of the production activities) or the need to ensure fiscal revenues.

This section shall be applicable only to production licences granted after 1 September 1995.

Section 12.
State participation

The King may appoint a body corporate to manage the direct state participation as mentioned in the Act section 3-6.

The following principles shall be applicable to the decision-making process in a production licence:

the state participant or the manager of the direct state participation shall exercise his voting right on the basis of visible, objective and non-discriminatory criteria. The exercise of voting right shall not constitute an obstacle to decisions being made on the basis of ordinary business principles,
the state participant or the manager of the direct state participation may vote to the full extent for his share on all issues with the following exceptions: the state participant or the manager of the direct state participation shall not receive information about or have the right to vote in decisions relating to suppliers to the activities comprised by these regulations. The state participant or the manager of the direct state participation shall not in conjunction with one or several public entities constitute a majority vote in other decisions.

The provision in the second paragraph litera b) shall not impede the state participant or the manager of the direct state participation from opposing decisions made by the licensee which would not comply with the conditions and requirements that are stated in the production licence with regard to the production policy of the State or the financial interests of the State.

The King shall decide how the further specific rules relating to the decision making process in respect of each individual production licence shall be set out.

This section shall be applicable only to production licences granted after 1 September 1995.

Section 13.
Work obligation

The work obligation mentioned in the Act section 3-8 may consist of survey activity and exploration drilling of a certain number of wells down to specified depths or geological formations. The contents, extent of and the time limit for complying with the work obligation, shall be stipulated in the individual production licence. If a shorter period has not been stipulated, the work obligation shall be fulfilled within the period of time stipulated pursuant to the Act section 3-9 first paragraph.

The Ministry may, upon application, exempt from the work obligation.

Section 14.
Extension of production licences

Application for extension of a production licence pursuant to the Act section 3-9 first paragraph, shall be submitted to the Norwegian Offshore Directorate within four months prior to the expiry of the production licence, unless otherwise decided by the Norwegian Offshore Directorate.

Demand for extension pursuant to the Act section 3-9 second paragraph, shall be submitted to the Norwegian Offshore Directorate within two months prior to the expiry of the production licence, unless otherwise decided by the Norwegian Offshore Directorate. The licensee shall specify the area for which the extension is sought.

Section 15.
Shape and size of areas

The areas to be relinquished by the licensee pursuant to the Act sections 3-9 and 3-14, shall be contiguous and delimited by meridians and parallels of latitude expressed in whole minutes of a degree. This applies correspondingly to the areas retained by the licensee.

Areas to be partitioned off pursuant to section 3-10 of the Act shall be contiguous and delimited by meridians and parallels of latitude expressed in whole minutes of a degree. The Ministry may, when particular reasons so warrant, approve a horizontal division of the area of a production licence.

The Norwegian Offshore Directorate shall approve the shape and size of the areas and may exempt from the requirement that the areas are to be contiguous. Such exemption shall normally be given if the relinquishment is motivated by the need to adjust the size of the area in accordance with the provisions of Section 39, second and third paragraph related to exemptions from the obligation to pay the area fee. When particular reasons so warrant, the Norwegian Offshore Directorate may exempt from the requirement to delimit the area in whole minutes of a degree.

CHAPTER 4
PRODUCTION ETC OF PETROLEUM

Section 16.
Evaluation of a petroleum deposit

When a petroleum deposit has been proven by drilling, the licensee shall submit to the Norwegian Offshore Directorate

information on plans for further exploration as well as results from exploration of the deposit.
An evaluation of the petroleum deposit shall be submitted in writing to the Norwegian Offshore Directorate within six months of the deposit being proven.

If probabilities of the petroleum deposit having mobile petroleum has been established through tests, sampling or logging, the licensee shall in addition indicate the size of the petroleum deposit and submit plans for the continued activities.

The Norwegian Offshore Directorate may require further evaluations and information to be submitted.

Section 17.
Statement that production will not be commenced

No later than two years after the time when the last exploration well was drilled the licensee shall notify the Ministry in writing if the licensee decides not to commence production from a petroleum deposit. A copy of the notification shall be submitted to the Norwegian Offshore Directorate. A report shall be enclosed with the statement, accounting for the basis for the decision and a summary of reservoir related, technical and economic aspects as well as studies which have been carried out or which are planned to be carried out with a view to determine if the petroleum deposit is or can become commercial.

Section 18.
Test production

Application for test production, cf the Act section 4-4 fifth paragraph, shall as a rule contain:

description of the purpose of the test production,
description of geological and reservoir engineering aspects,
test production programme,
description of facilities that will be used,
description of equipment for metering petroleum, including fiscal measurement,
overview of expenses,
description of overall safety issues,
description of environmental impact.

The application shall be submitted to the Ministry with a copy to the Norwegian Offshore Directorate. If a facility is to be placed on land or seabed subject to private property rights, a copy shall also be submitted to the Norwegian Ocean Industry Authority.

For test production, permission pursuant to section 4-4, second and third paragraphs of the Act, shall also be obtained.

Petroleum produced during test production shall, as a general rule, be stored for subsequent utilisation or sale. Test production shall normally cease prior to submission of the plan for development and operation or an application for exemption from the requirement for such plan. If warranted for particular reasons, the licensee may submit to the Ministry for approval a plan for development and operation pursuant to section 4-2 of the Act before the test production has ceased.

Section 19.
Repealed

Section 20.
Plan for development and operation of a petroleum deposit

Plan for development and operation of one or more petroleum deposits, cf. the Act section 4-2, shall contain a description of the development and an impact assessment. Comments submitted in relation to the impact assessment shall be included in the evaluation process when the plan for development and operation is approved. The plan shall be submitted to the Ministry with a copy to the Norwegian Offshore Directorate and the Norwegian Ocean Industry Authority.

A plan for development and operation of a petroleum deposit which entails construction and building measures in conflict with the land-use part of a binding decision on planning pursuant to the Planning and Building Act, cannot be approved by the Ministry until the consent of the planning authority has been obtained.
The Ministry may require the individual licensee to supply information on how the licensee intends to finance his part of the development.

The Ministry shall, in a separate document that is to be made public, state the reason for the decision to approve or not to approve the plan for development and operation. The statement of reasons shall, inter alia, include a list of possible conditions of an environmental nature to the approval and measures which may be required in order to remedy significant negative effects on the environment. Information subject to statutory provisions relating to professional secrecy shall not be made public.

In the event of substantial alterations in or deviation from the plan, notification shall be submitted to the Ministry. The Ministry may require a new or amended plan to be submitted.

Section 21.
Description of the development in the plan for development and operation of a petroleum deposit

Description of the development in the plan for development and operation of a petroleum deposit
Description of the development with associated documentation shall be adapted to the extent of the development. The description shall give an account of economic, resource related, technical, environmental and safety related aspects of the development.

The description of the development shall to the extent necessary contain:

description of development strategy and development concept, as well as the criteria for the choices that have been made, description of subsequent development stages, if any, tie-ins with other fields, and if relevant co-ordination of petroleum activities,
description of geological and reservoir engineering aspects, and production schedule,
description of technical solutions, including solutions aimed at preventing and minimizing environmentally harmful discharges and emissions,
information on management systems, including information on the planning, organizing and implementation of the development,
information on operation and maintenance,
information on economic aspects,
information on what licence, approvals or consents have been applied for, or that are planned to be applied for, pursuant to other applicable legislation, if a facility is to be placed on the land territory or seabed subject to private property rights,
information as to how the facilities may be disposed of when the petroleum activities have ceased,
information on facilities for transportation or utilisation comprised by the Act section 4-3,
information on how the gas shall be marketed,
description of technical measures for emergency preparedness,
information on other factors of importance to the resource management,
other information required pursuant to the safety regulations in force at any time,
if the development includes capture, transport and storage of CO2:
- a characterisation of the storage location and storage complex, and an evaluation of the expected security of storage,
- proposed monitoring plan, cf. Appendix II to these Regulations
- proposed plan for corrective measures in the event of significant irregularities, cf. Section 30g first paragraph litera b),
- proposed preliminary plan for post-operation, cf. Section 30j and Appendix II to these Regulations.

The Ministry may require studies of alternative solutions.

Section 22.
Impact assessment programme for environmental impact assessment in plan for development and operation of a petroleum deposit

Well in advance of submission of a plan for development and operation of a petroleum deposit, the licensee shall present to the Ministry a proposed programme for environmental impact assessment. The proposal shall give a short description of the development, of relevant development solutions and, based on available knowledge, of envisaged effects in relation to other commercial activities and to the environment, including possible transboundary environmental impact. Furthermore the proposal shall define the need for documentation. If an impact assessment has been prepared for the area where the development is planned to be carried out, the proposal shall clarify the need for supplementary documentation or updating.

The proposed programme should to the extent necessary comprise a description of how the impact assessment will be carried out, in particular with regard to information and involvement of the groups likely to be especially affected. The proposed programme shall be based on the documentation requirements stipulated in Section 22a.

The licensee shall forward the proposed impact assessment programme to the authorities concerned and to industrial organisations for consultation. A reasonable time limit shall be set for submitting comments. The time limit should not be less than 6 weeks. The Ministry shall decide on the content of the final environmental impact assessment programme on the basis of the proposal and the comments thereto. An account shall be given of the comments received and how they are assessed and reflected in the decided programme. A copy of the decided programme shall be distributed to those who have submitted comments during the consultation process. A decision made pursuant to this Section is not to be regarded as an individual administrative decision according to the Public Administration Act. In exceptional cases, the Ministry may decide that the programme shall be submitted for public consultation by the Ministry.

Section 22a.
Impact assessment in plan for development and operation of a petroleum deposit

An impact assessment in a plan for development and operation of a petroleum deposit shall state the reasons for the effects that the development may have on commercial activities and environmental aspects, including measures to prevent and remedy such effects. The impact assessment shall, inter alia:

describe alternative development solutions which the licensee has examined and state the reasons for the choice of development solution and development strategy, state the reasons for the criteria on which the choice has been made, and describe any subsequent development stages, tie-ins to other fields and shore facilities, and, if relevant, co-ordination of petroleum activities,
describe the environment which may be significantly affected, consider and make a balanced judgment with regard to the environmental impact of the development, including:
- describe emissions to sea, air and soil,
- describe possible material assets and monuments of cultural heritage which may be affected as a result of the development,
- consider the consequences of the technical solutions chosen,
- clarify how environment criteria and impact on the environment have been taken into account in the technical solutions that have been chosen,
- describe possible and planned measures in order to prevent, reduce and if possible compensate for any significant adverse effects on the environment,
consider what licence, approvals or consents are to be applied for pursuant to other applicable legislation, if a facility is to be placed on the land territory, on sea bed subject to private property rights, in internal waters or the territorial sea,
consider how the facilities may be disposed of when the petroleum activities have ceased,
consider facilities for transportation or utilisation comprised by the Act section 4-3,
consider technical measures for emergency preparedness,
consider how monitoring of the environment in the area can be carried out,
provide a summary of the above items.

The impact assessment shall be prepared on the basis of an prescribed impact assessment programme established pursuant to section 22 and shall be adapted to the extent of the development and to the degree to which the development is considered comprised by an impact assessment for a larger defined area. The impact assessment shall be submitted to the Ministry at the latest concurrently with a description of the development. In areas where more than one field is to be developed, the licensee may in accordance with the Act section 4-2 third paragraph prepare an impact assessment in respect of a larger defined area. In respect of developments for which an impact assessment is also required pursuant to other legislation, a common impact assessment may be prepared.

If the licensee proves that the development is comprised by an existing relevant impact assessment for a field or a larger defined area, cf the Act section 4-2 third paragraph, an impact assessment will only be required if the Ministry considers this to be necessary.

The licensee shall forward the impact assessment to the authorities concerned and to industrial organisations for their comments. At the same time, an announcement of the consultation shall be made in the Norwegian Gazette. The impact assessment and, to the extent possible the relevant background material, shall be made available on the Internet. A reasonable time limit shall be set for submitting comments to the impact assessment. The time limit should not be shorter than 6 weeks. The Ministry may in exceptional cases decide that the assessment shall be submitted to consultation by the Ministry.

The Ministry shall, on the basis of comments received, decide whether additional assessments or further documentation on specific aspects are needed. Any additional assessments shall be submitted for comments to the relevant authorities and to those who have commented on the impact assessment before a final decision is made. The time limit for additional comments should not be less than 2 weeks.

The Ministry’s proposal shall comprise an assessment of the impacts of the development and the comments received, and how these comments have been weighted. The proposal shall consider whether conditions to reduce and compensate for significant adverse effects should be set. The Ministry may decide that an environmental monitoring programme shall be developed to monitor and compensate for adverse impacts of importance.

The Ministry’s decisions pursuant to this Section are not to be regarded as an individual administrative decision according to the Public Administration Act.

Section 22b.
Exemption from the requirement relating to impact assessment

The Ministry may, on application from the licensee, grant exemption from the requirement relating to impact assessment if the development concerned will not entail production of oil and natural gas for commercial purposes where the amount produced exceeds 4.000 barrels per day in respect of oil and 500.000 m3 natural gas per day in respect of gas, and it is otherwise not expected to have significant effects on commercial activities or the environment.

Provided the development cannot be expected to have significant transboundary environmental impact, the requirement relating to impact assessment may in exceptional cases be deviated from partly or entirely, even if the development exceeds the threshold values mentioned in the first paragraph. Prior to granting such exemption, the Ministry shall inform the EFTA Surveillance Authority of the reasons on which the exemption is based.

Section 22c.
Impact assessment in the case of significant transboundary environmental effects

If a development may have significant transboundary environmental effects, the Ministry shall forward the environmental impact assessment programme and information about the requirement in respect of approval of the plan for development and operation to States that may be affected, at the latest at the same time as the impact assessment programme is sent out on circulation for comments. Such information shall also be forwarded if a State which may be significantly affected so requests.

States that are affected may participate in the impact assessment process, and may in this connection submit to the Ministry a statement about the impact assessment programme and the impact assessment. The Ministry shall forward the impact assessment to the appropriate authority in the States that are affected at the same time as the impact assessment is sent out on circulation for comments in Norway. The Ministry may impose the licensee to prepare the impact assessment documents in the foreign languages necessary.

The Ministry shall on approval of the plan for development and operation forward the document mentioned in section 20 fourth paragraph to the appropriate authority in the States that are affected.

Section 23.
Stipulation of production schedule etc

The licensee shall submit an application to the Ministry for production permission, including also permission relating to burning and cold venting, within the time limits stipulated by the Ministry. A copy of the application shall be submitted to the Norwegian Offshore Directorate. The duration of the permission can be adapted to the size of the field as well as to other factors of importance.

The Ministry may, in cases as mentioned in the Act section 4-4, make a decision relating to production or injection from each individual well, deposit or field.

The Ministry may further decide on the contents and the format of the application to be submitted pursuant to the Act section 4-4 second and third paragraphs.

Section 24.
Field report

If the Ministry requires the licensee to produce a report on field related matters pursuant to the Act section 4-4 sixth paragraph, a time limit of no less than six months shall be given for the preparation of such report, unless particular circumstances warrant a shorter time limit.

Section 25.
Measures to obtain information

The Norwegian Offshore Directorate may require that special measures shall be taken to obtain information, if this is considered necessary to judge whether the operation of a petroleum deposit is conducted in a prudent manner, or to initiate joint operations between several licensees.

Particularly expensive measures, such as the drilling of a well, may not be required to be carried out unless the Ministry considers the measure to be obviously necessary.

Section 26.
Metering of petroleum produced

The licensee shall meter petroleum produced.

The Norwegian Offshore Directorate stipulates provisions regarding such metering, including equipment and procedures, and correction of metering results.

Section 27.
Monitoring of the deposit and process during production

The licensee shall continually monitor the deposit during production, including pressure and flow conditions, produced or injected volumes per well, zone and reservoir, the composition of components of petroleum etc. By zone is meant part of a petroleum deposit which can be regarded as being partly separated from the rest of the deposit by limitations in the pressure and permeability connections.

The total monthly production and injection volumes of the field shall be apportioned to each individual well on a monthly basis according to recognized norm.

The process facilities shall be monitored in such way as to achieve optimal operation.

Section 28.
Licence to install and to operate facilities

An application for a licence to install and to operate facilities, cf the Act section 4-3 first paragraph shall include a plan which is to contain a description of the project and an impact assessment. Any comments given to the impact assessment shall be included in the approval process in relation to the plan to install and operate facilities. The application shall be forwarded to the Ministry with a copy to the Norwegian Offshore Directorate and the Norwegian Ocean Industry Authority. If an application is submitted by anyone other than the licensee according to a production licence, the provisions of Section 8 shall apply, as appropriate.

The Ministry may decide that a licence to install and operate facilities as mentioned in the Act, Section 4-3, first paragraph shall be subject to conditions with regard to, inter alia:

the ownership of the facility;
the landing point of the pipeline;
the routing, dimension and capacity of the pipeline.

The Ministry may, when granting a licence to install and operate facilities, cf the Act section 4-3 first paragraph, and at any subsequent point in time:

stipulate tariffs for use of the facility, both in respect of the petroleum of the owner and other petroleum;
order the tie-in of the facility to other facilities, that its capacity shall be increased and that the facility shall be modified to enable it to be used for other types of petroleum than those for which it was originally built. Such orders must not raise the costs or unreasonably impede such use of the facility which has been assured by approval of the Ministry. As further decided by the Ministry, the costs of implementation of orders as mentioned shall be borne by the party or parties in whose favour the order was given or shall be taken into account when the tariff is stipulated;
decide which petroleum shall be transported in a pipeline, however, such decision may not be to the effect that petroleum shall be transported to the displacement of petroleum which has been assured transportation in a pipeline by approval of the Ministry.

Section 29.
Contents of a plan to install and operate facilities

A plan to install and operate facilities, cf the Act Section 4-3 first paragraph shall deal with economic, resource related, technical, environmental and safety aspects of the project. The documentation shall be adapted to the extent of the project.

A plan to install and operate facilities, cf the Act Section 4-3 first paragraph, shall to the necessary extent contain:

information on the destination of the pipeline, route, dimension and transportation capacity, as well as the criteria for the choices that have been made;
information on the ownership of the facility;
a description of technical solutions, including solutions to prevent and minimize environmentally harmful discharges and emissions,
information on management systems, including information on the planning, organizing and implementation of the development;
information on operation and maintenance;
information on economic aspects;
information as to what licences, approvals or consents have been applied for, or that are planned to be applied for, pursuant to other applicable legislation, if a facility is to be placed on the land territory or seabed subject to private property rights;
information as to how the facilities may be disposed of when the petroleum activities have ceased;
a description of technical measures for emergency preparedness;
information on other factors of importance to the resource management;
other information required pursuant to the safety regulations in force at any time.

The Ministry may exempt from the requirement to documentation according to the first paragraph, and in this connection also require studies of alternative solutions.

The Ministry may on application from the licensee grant exemption from the requirement relating to impact assessment if the project does not concern transport of petroleum in pipelines with a diameter of more than 800 mm and a length of more than 40 km, and it is otherwise not expected to have significant effects on commercial activities or the environment. The provisions of Sections 20, fourth paragraph, 22, 22b second paragraph and 22c shall apply correspondingly. The provisions of Section 22a shall apply, as appropriate.

The Act Section 4-2 third, fourth, sixth and seventh paragraph shall apply accordingly in relation to a plan to install and to operate facilities.

Section 30.
Surveys of pipeline routes and other subsurface surveys

The licensee shall, no later than five weeks prior to the commencement of surveys of pipeline routes and other subsurface surveys, submit the following information to the Norwegian Offshore Directorate, the Directorate of Fisheries, the Institute of Marine Research and the Norwegian Armed Forces:

the purpose of the surveys;
time, duration and place of the surveys;
survey methods;
what vessel is to be used;
the depth to which drilling will be carried out, if any.

The Norwegian Offshore Directorate stipulates provisions regarding submission of information in connection with surveys of pipeline routes and other subsurface surveys, i.a. exception from the time limit stated in the first paragraph.

Vessels that carry out pipeline routes and other subsurface surveys shall have a fishery expert on board when this is necessary for consideration of the fishery activity in the area. In case of doubt, the Norwegian Offshore Directorate, in consultation with the Directorate of Fisheries, is authorised to make such decisions. The Norwegian Offshore Directorate stipulates provision regarding fishery experts.

As regards pipeline routes surveys and other subsurface surveys, no drilling is allowed deeper than 200 metres below the seabed.

Section 30a.
Consent to commencement and continuation

Before a licensee may carry out petroleum activities as referred to in items a) to c) below, the consent of the Ministry of Energy or whomever it authorizes is required for the commencement or continuation of petroleum activities.

Consent as referred to in the first paragraph must be obtained:

before a facility or part of a facility is initially put to use;
before a facility or part of a facility is put to use after major reconstructions or modifications have been carried out, or before a change of the purpose for which the facility was originally approved in a Plan for development and operation or in a Plan to install and operate facilities, or in a decision relating to disposal; cf. the Act Sections 4-2 and 4-3;
before a facility is used beyond the time for which it was originally built and the conditions on which the approval of the facility were based in a Plan for development and operation or in a Plan to install and operate the facility, or in a decision relating to disposal; cf. the Act Sections 4-2, 4-3 and 5-3.

Section 30b.
Leasing of production facility

The licensee shall not lease a production facility from an affiliated company unless the Ministry grants its consent to do so. An application for such consent shall be submitted as copies to the Norwegian Offshore Directorate and the Norwegian Ocean Industry Authority.

The Ministry decides in individual cases whether the lessor is deemed to be an affiliated company.

In case of doubt, the Ministry may determine whether a facility is to be regarded as a production facility.

CHAPTER 4a
STORAGE OF CO2

Section 30c.
Storage of CO2

This chapter applies to capture, transport and storage of CO2 in the petroleum activities that are initiated according to plan for development and operation approved pursuant to the Act Section 4-2 first paragraph after these Regulations enter into force.

Section 30d.
Selecting a storage location

A subsea reservoir's suitability as a storage location shall be determined through a characterisation and assessment of a potential storage location and surrounding area according to the criteria listed in Appendix 1.

A subsea reservoir shall only be selected as a storage location if there, under the conditions proposed for such use, is not a significant risk of leakage, and there is also not considered to be any risk of health or environmental damage of significance.

Section 30e.
Consent for injection and storage of CO2

The licensee must have acquired consent for injection and storage of CO₂ before starting injection and storage of CO₂ in a subsea reservoir. Consent for injection and storage of CO₂ is granted by the Ministry or the entity it authorises and by the Norwegian Ocean Industry Authority, cf. Regulation No. 158 of 12 February 2010 relating to health, safety and the environment in the petroleum activities and at certain onshore facilities, with amendments.

The consent for injection and storage of CO₂ shall be compatible with a storage permit granted by the pollution authorities pursuant to Chapter 35 of Regulation No. 931 of 1 June 2004 to the Pollution Control Act (the Pollution Regulations). The same applies for any subsequent amendment of, exception from or addition to such consent.

Applications for consent for injection and storage of CO₂ shall contain:

the storage location's and storage complex' area and delineation, as well as information about the subsea geological reservoir, including the hydraulic unit for which the consent for injection and storage shall apply,
the injection operation, the volume of CO₂ that can be injected, limit values for reservoir pressure and limit values for injection rates and pressure,
volumes and limit values for pressure build-up,
the operator's monitoring plan, cf. Appendix II to these Regulations,
measurement of CO₂ injection rates,
plans for any corrective measures,
plan for shutdown and post-operation.

The Ministry of Energy or the entity it authorises shall be notified in the event of leaks or significant irregularities.

Section 30f.
Conditions for consent for injection and storage of CO2

A consent for injection and storage of CO₂ is contingent on fulfilment of the following conditions:

all relevant requirements in these Regulations have been met,
the licensee has the financial strength, technical competence and reliability deemed necessary to operate and control the storage location, and all quality requirements on the licensee and its organisation have been met,
any mutual pressure influences between storage locations in the same hydraulic unit are of such a nature that the requirements in these Regulations can be fulfilled for both locations at the same time.

Section 30g.
Monitoring

The operator shall monitor the injection facilities and the storage complex, including the dispersion of CO₂ in order to:

compare the actual and modelled behaviour of the CO₂ and the formation water in the storage location,
identify significant irregularities,
follow the migration of CO₂,
detect leaks of CO₂ from the storage complex,
update the assessment of the storage complex' safety and integrity over the short and long term, including whether the stored CO₂ will remain safely stored.

The monitoring shall be conducted on the basis of a monitoring plan prepared by the operator in accordance with the requirements in Appendix II to these Regulations, and to which the Ministry has granted consent pursuant to Section 30e.

The plan shall be updated in line with the requirements in Appendix II to these Regulations, and no less frequently than every five years. This in order to handle any changes in the risk assessment linked to leaks and for the environment, human health, new scientific knowledge or technological improvements. Updated plans are subject to the Ministry's consent pursuant to Section 30e.

Section 30h.
Regulatory supervision

The Ministry or the entity it authorises shall superintend the storage location at least once per year up to three years after shutdown, and then every five years until the responsibility has been transferred to the State, represented by the Ministry of Energy. During these regulatory supervisions, the Ministry or the entity it authorises shall inspect relevant injection and monitoring facilities, reservoir conditions, and any effects of the storage complex on the environment. The regulatory supervision shall, insofar as possible, be coordinated with regulatory supervisions by the pollution authorities pursuant to Section 35-11 of Regulation No. 931 of 1 June 2004 relating to pollution control (the Pollution Regulations).

Following each regulatory supervision, the Ministry or the entity it authorises shall prepare a report on the regulatory supervision results. The report shall assess whether the provisions in these Regulations have been adhered to, and whether additional measures are necessary. The report shall be submitted to the operator and made available to the public no later than two months after the regulatory supervision is complete.

Section 30i.
Regulatory supervision

If there is a risk of leaks or significant irregularities, the operator shall immediately inform the Ministry or the entity it authorises and implement the necessary corrective measures.

Corrective measures shall be implemented in accordance with the plan for corrective measures that has been prepared and approved pursuant to Section 21 second paragraph litera n). The Ministry or the entity it authorises may, at any time, instruct the operator to implement necessary corrective measures and measures to protect human health. Such measures may be in addition to, or differ from the measures described in the plan for corrective measures. The Ministry or the entity it authorises may also, at any time, implement corrective measures itself or demand that injection be stopped.

If the operator does not implement the necessary corrective measures, the Ministry or the entity it authorises shall implement them itself and recover the expenses from the operator.

Section 30j.
Shutdown and post-operation

A storage location shall be shut down if:

the conditions stipulated for shutdown in the storage licence issued by the pollution authorities pursuant to Chapter 35 of Regulation No. 931 of 1 June 2004 relating to pollution control (the Pollution Regulations) and in the consent for injection and storage have been fulfilled,
the King consents to the shutdown on the basis of an application from the operator.

From when a storage location is shut down pursuant to first paragraph litera a) or b) and until responsibility for the storage location is transferred to the State, represented by the Ministry of Energy, pursuant to Section 30k first and sixth paragraph, the operator is still responsible for monitoring, reporting and implementation of corrective measures in line with the provisions in these Regulations. The operator is also responsible for sealing the storage location and removing the injection facilities.

The obligations in the second paragraph shall be fulfilled on the basis of a post-operation plan that has been prepared by the operator based on best practices in the area, and in pursuance of Appendix II to these Regulations. A preliminary post-operation plan shall be submitted to the Ministry or the entity it authorises for approval pursuant to Section 21 second paragraph litera n).

Before shutdown of a storage location pursuant to first paragraph literas a) and (b), the preliminary post-operation plan shall, if necessary, be updated in accordance with the risk analysis, best practices and technological improvements and then submitted to the Ministry or the entity it authorises for approval as the final post-operation plan.

Section 30k.
Transfer of responsibility

Following shutdown of a storage location pursuant to Section 30j first paragraph litera a) or b), all obligations concerning monitoring and corrective measures pursuant to these Regulations shall be transferred to the State, represented by the Ministry of Energy or the entity it authorises, either on its own initiative or upon application from the operator, given that the following conditions have been fulfilled:

all available information indicates that the stored CO₂ will remain entirely and permanently enclosed. The operator must e.g. be able to document that the actual behaviour of the injected CO₂ matches the modelled behaviour, that leakage cannot be proven and that the storage location is developing toward a condition of permanent stability,
a minimum period stipulated by the Ministry or the entity it authorises has expired. This minimum period must be no less than 20 years, unless the Ministry or the entity it authorises, upon application from the operator before or at this time, is convinced that the requirement in litera a) has been met before the expiry of this period,
the financial requirements mentioned in Section 30m have been fulfilled,
the storage location has been prudently abandoned and the injection facilities removed.

The operator shall prepare a report which documents that the condition in the first paragraph litera a) has been fulfilled and submit this to the Ministry or the entity it authorises. As a minimum, this report must show

that the injected CO₂ actually behaves in accordance with the modelled behaviour,
that no leakage can be proved,
that the storage location is developing toward a condition of long-term stability.

No later than one month after the operator's report has been received, the Ministry or the entity it authorises shall submit the report to the EFTA Surveillance Authority.

If the Ministry or the entity it authorises finds that the conditions in the first paragraph have not been fulfilled, the application for transfer of responsibility shall be rejected. The rejection shall be substantiated.

If the Ministry or the entity it authorises finds that the conditions in the first paragraph have been fulfilled, a draft approval shall be prepared. The draft shall specify which method has been used to ensure that the conditions in the first paragraph litera d) have been fulfilled, as well as any updated requirements concerning sealing of the storage location and removal of the injection facilities. The Ministry shall submit the draft approval of transfer of responsibility to the EFTA Surveillance Authority, which may provide its opinion within four months.

If the EFTA Surveillance Authority decides not to provide an opinion, the Ministry shall, within one month after the draft approval is received, be informed about this and the reason for the decision to not provide an opinion. When the Ministry or the entity it authorises has ensured that the conditions in the first paragraph literas a) through (d) have been fulfilled, the transfer of responsibility shall be approved and the operator shall be informed of this. The approval shall also be reported to the EFTA Surveillance Authority, explaining why any remarks from the EFTA Surveillance Authority have not been taken into account.

Following the transfer of responsibility, the routine regulatory supervisions pursuant to Section 30h first paragraph shall be suspended, and the monitoring can be limited to a level which ensures that leakage or significant irregularities are proven. If leakage or significant irregularities are proven, the monitoring shall be intensified insofar as necessary in order to assess the scope of the problem and the effectiveness of the corrective measures.

If the operator has negligently or intentionally made errors, including delivering deficient data or withheld relevant information, the State, represented by the Ministry of Energy, shall recover the costs accrued after the transfer of responsibility from the previous operator. Unless the financial mechanism mentioned in Section 30m applies, additional costs shall not be recovered after the transfer of responsibility.

Section 30l.
Financial guarantee

In applications for permission for injection and storage of CO₂ pursuant to Chapter 35 of Regulation No. 931 of 1 June 2004 relating to pollution control (the Pollution Regulations), the potential operator shall, based on specific provisions stipulated by the Norwegian Environment Agency, document that appropriate decisions and transactions can be made in the form of a guarantee or equivalent to ensure that all obligations arising from the mentioned regulation can be fulfilled. The financial guarantee shall be valid and effective when injection starts. The Ministry of Climate and Environment and the Ministry of Energy shall address the financial guarantee jointly.

Section 30m.
Financial mechanism

Before a transfer of responsibility takes place pursuant to Section 30i, the operator shall make a financial contribution available to the State, represented by the Ministry of Energy, as specifically directed by the Ministry. The contribution shall take into account the criteria mentioned in Appendix I, as well as elements that relate to the historical storage of CO₂ of relevance for stipulation of the obligations after the transfer. The financial contribution shall, as a minimum, cover anticipated monitoring expenses for a period of 30 years. The contribution may be used to cover the State's expenses after the transfer of responsibility to ensure that the CO₂ is safely stored after the transfer of responsibility.

CHAPTER 5
PRODUCTION FEES AND AREA FEES

Section 31.
Rates applicable to production fees etc

The licensee shall not pay production fees for petroleum produced from deposits where plan for development and operation is approved or the requirement for such plan is waived after 1 January 1986.
With regard to petroleum produced from deposits where plan for development and operation is approved 1 January 1986 or earlier, the licensee shall pay a production fee of 8 % of the value of the quantity of oil produced. From the time when the quantity of oil produced from one production area reaches the following average quantities over a 30-day period, a production fee shall be paid on the value of the total quantity amounting to:

6 500 Sm³ per day 10 %
16 000 Sm³ per day 12 %
35 000 Sm³ per day 14 %
55 000 Sm³ per day 16 %

If the daily average for the first 30 days of production from a production area exceeds the level at which the fee is 8 %, the production fee shall be raised from the day when the production first exceeded the level in question.
If the daily average from a production area for which a production fee of more than 12 % has been paid should later fall under the relevant limit during a 30-day period, the production fee shall be reduced correspondingly in accordance with the table from and including this period, however not to less than 12 %.

On produced petroleum other than oil, the production fee is 0 %.

The Ministry may reduce the rate applicable to production fees or exempt from production fees if particular circumstances so warrant.

Production fees shall be paid on petroleum that escapes unless the licensee can prove that the escape was not due to negligence on his part or on the part of anyone acting on his behalf. If the quantity in question cannot be metered, the Ministry shall stipulate the quantity, which is deemed to have escaped.

The second to fourth paragraphs do not apply to production licence granted pursuant to the Royal Decree 9 April 1965 relating to exploration for and exploitation of submarine petroleum resources. In respect of such licence, the licensee shall pay a production fee of 10 % of the value of the produced quantity of oil.

Section 32.
Stipulation of value of petroleum etc

The value of petroleum which shall be used as a basis for the calculation of production fees shall be stipulated by the Ministry. The basis shall be the price stipulated in accordance with regulations of 25 June 1976 no 5 relating to the stipulation of norm price, with deduction for any transport costs in those cases where the price reference point is different from the point of calculating production fees. No deduction shall be made for CO2 tax accrued between the price reference point and the point of calculating production fees.

Costs of installation and operation of pipelines from the individual production facility to the production area shipment point shall upon application from the licensee be deducted when calculating the production fees, if the Ministry regards it reasonable in view of the distance of the transportation and other prevailing circumstances.

The production fee for petroleum for which no norm price is stipulated, shall be stipulated by the Ministry on the basis of prices obtained and other comparable estimations of the value.

Section 33.
Payment of production fees

Production fees for the half year 1 January to 30 June shall be paid by 1 October. Production fees for the half year 1 July to 31 December shall be paid by 1 April the following year. Production fees shall be paid to the State via the Norwegian Offshore Directorate.

If no final value upon which the calculation of production fees shall be based, cf. section 32, has been stipulated by the expiry of the time limit for payment, payment shall, as a provisional arrangement, be effected in accordance with the provisional stipulations of values carried out pursuant to section 3 of Regulations of 25 June 1976 no 5 relating to the stipulation of norm price, or corresponding provisions, with adjustments, if relevant, for transportation and terminal costs. On petroleum for which no norm price can be stipulated, the Ministry may stipulate such provisional value.

If production fees are not paid within the due date, interest shall be paid on the fees due in accordance with Act 17 December 1976 no 100 relating to interest on overdue payments etc.

If payment has taken place in accordance with the provisional stipulation of value, interest shall, at the time of the settlement when the final production fee has been determined, be calculated according to the rate of interest applicable at any time to overpayments or underpayments of instalment tax. The account shall be settled within 15 days of final computation of production fees. This also applies in cases when the stipulation of value has been the subject of appeal to a superior public body.

Section 34.
Collection of production fees in the form of petroleum

The licensee may demand reimbursement for the costs of transportation, processing and storage of royalty petroleum between the production area shipment point and the place where royalty petroleum is made available, cf. the Act section 4-9 fourth paragraph. Such costs shall be no higher than those incurred by the licensee for his own petroleum. If special tariffs for transportation, processing and storage of the licensee’s petroleum have not been agreed upon, the Ministry shall stipulate such tariffs for royalty petroleum after having received proposals from the licensee. When stipulating these tariffs, a reasonable commercial profit shall be provided for.

Section 35.
Documentation relating to settlement of fees

When submitting the settlement of fees for a given fiscal period, it shall be clearly indicated how the production fee has been calculated.

In the calculation of gross production value, the settlement of fees shall as a minimum contain the following data on a monthly basis: Price obtained, quantity and currency exchange rate, if relevant.

The calculation of deductible expenses must be specified.

All income and expenses shall be documented by copies of invoices or by making specified references to the accounts of the operator.

Section 36.
Use of currency exchange rates

When converting petroleum prices and deductible expenses invoiced in a foreign currency into NOK, the Bank of Norway’s monthly average of the banks’ daily currency exchange rates for sales and purchases between NOK and the relevant foreign currencies for the delivery month shall be used.

Four decimal places shall be used in conversion calculations. The final amount shall be rounded off to the nearest whole NOK.

Section 37.
Joint sale of petroleum

In the case of joint sale of petroleum, the operator shall on behalf of the licensee, calculate the gross production fees and the joint deductible expenses which are apportioned to the individual licensees.

Section 38.
Audit of the basis for the settlement fees

The Norwegian Offshore Directorate may at any time carry out an audit of the operator and the licensee in order to verify the settlement submitted to the Norwegian Offshore Directorate.

Section 39.
Rates applicable to area fees etc

After expiry of the period stipulated pursuant to the Act section 3-9 first paragraph first sentence, the area fee shall be as follows: For the first year, the fee shall be NOK 38 000 per km², for the second year, the fee shall be NOK 76 000 per km² and for the following years the fee shall be NOK 153 000 per km². When calculating the fee, the area shall be rounded off to the nearest km². Production licence which are divided stratigraphically shall pay the area fee on the basis of the area on the seabed covered by the licence.

In production licences for which a plan for development and operation (PDO) has been approved pursuant to the Act section 4-2, the Norwegian Offshore Directorate may exempt, pursuant to application, from the obligation to pay area fee for the area defining the deposits included in the PDO from the time of submission of the PDO and for as long as extraction from the deposits is taking place. This applies correspondingly if the Ministry waives demand of PDO pursuant to the Act section 4-2 sixth paragraph or grants approval pursuant to the Act section 4-2 seventh paragraph. The Norwegian Offshore Directorate determines the delimitation of the area to be exempted on the basis of a proposal from the licensee. After cessation of production from the defined area, the area fee will escalate over a period of three years as provided for in the first paragraph. This exemption does not apply to licences for which the area fee has been reduced in accordance with the sixth paragraph.

If the licensees drill an exploration well in the period as defined in section 3-9 first paragraph second sentence or second paragraph that neither is or has been comprised by the work obligation cf. the Act section 3-8, the Norwegian Offshore Directorate will, on application, exempt from the obligation to pay the area fee for the area defining the prospect which is being drilled. TheNorwegian Offshore Directorate may also give an exemption for areas within the licence area which define prospects which are geologically dependent on the prospect which is drilled. The duration of such exemption is two years. After completion of the well the licensee will be reimbursed the area fee that has been paid for this particular area in the exemption period. The Norwegian Offshore Directorate determines the delimitation of the area to be exempted on the basis of a proposal from the licensee. After the expiry of the two-year exemption period the area fee will escalate over a period of three years as provided for in the first paragraph. This exemption does not apply to licence for which the area fee has been reduced in accordance with the sixth paragraph.

In case of a geographic division of the area covered by a production licence in accordance with the Act section 3-10, the area fee shall, before the expiry of the current year, be paid in advance for the area partitioned off in accordance with the rate applicable to the original area at this point in time. Thereafter, the area fee rate shall be as if no partition had taken place.

The Ministry may adjust the area fee at intervals of at least five years in order to bring it in line with changes in the monetary value of the NOK. The basis for the adjustment shall be the consumer price index of the Central Bureau of Statistics.

In the case of production licence granted pursuant to Royal Decree of 9 April 1965 relating to exploration for and exploitation of submarine petroleum resources, the licensee shall pay an area fee of NOK 49 000 per km² per year. The Ministry may adjust the fee at intervals of at least 10 years. The licensees may on application choose to have the general provisions concerning area fee apply for the licence, with binding effect.
The Ministry may decide that area fees shall be exempted from wholly or partly, or that the duty to pay the fees shall be postponed.

Section 40.
Payment of area fees

Area fees shall be paid in advance for each calendar year after expiry of the period stipulated in the Act section 3-9 first paragraph first sentence. The area fee falls due on the last workday of the previous year. The operator is himself responsible for calculation and payment of the area fee.

Area fees shall be paid to the State via the Norwegian Offshore Directorate.

If the area fee is not paid when due, interest shall be payable on the amount due in accordance with Act 17 December 1976 no 100 relating to interest on overdue payments etc.

In the case of production licence granted pursuant to Royal Decree of 9 April 1965 relating to exploration for and exploitation of submarine petroleum resources, the area fee shall be paid in advance for one year at a time with the allocation date as the due date. The same rate of fee shall be applicable to the whole year.

Section 41.
Refund of area fees

If a production licence is surrendered, cf. the Act section 3-15, that part of the area fee which has been paid for the period after the surrender takes effect shall be refunded. This applies correspondingly if a production licence is lapsed or expires or if parts of an area comprised by the production licence are relinquished, cf. the Act section 3-14.

Section 42.
Deduction for area fee in the production fee

In the case of production licence issued pursuant to Royal Decree of 9 April 1965 relating to exploration for and exploitation of submarine petroleum resources and Royal Decree of 8 December 1972 relating to exploration for and exploitation of petroleum in the seabed and substrata, the following shall apply: In the payment of production fees, deduction shall be made for area fees which have been paid for the production licence in the same payment period. If the area fee is larger than the production fee for petroleum produced under the relevant production licence, the production fee shall not be payable.

If the same petroleum deposit is covered by more than one production licence, the Ministry shall decide what part of the production shall be regarded as produced under each individual production licence. If a production licence covers several blocks, deduction shall only be given for the block or blocks which cover the deposit.

If the State makes use of its right to require production fees in the form of produced petroleum, the provisions of the first and second paragraphs shall apply correspondingly, so that area fees paid for the production licence in question in such cases shall be wholly or partly refunded at the settlement of production fees for the relevant period. In the stipulation of value, section 32 shall apply correspondingly.

CHAPTER 6
CESSATION OF PETROLEUM ACTIVITIES

Section 43.
Decommissioning plan

The decommissioning plan which is to be prepared pursuant to the Act section 5-1, shall consist of one part dealing with disposal and an impact assessment.

The decommissioning plan may contain proposed disposal of several facilities.

The Ministry shall be notified of any changes in factual information after the decommissioning plan has been submitted.

The decommissioning plan shall be submitted to the Ministry with a copy to the Norwegian Offshore Directorate and the Norwegian Ocean Industry Authority.

Section 44.
Disposal part of the decommissioning plan

The disposal part of the decommissioning plan shall contain a description of:

the field history;
the facility, including location, depth, type of material etc.;
deposit and production;
the possibility for continued production;
relevant disposal alternatives;
other aspects of importance to the choice of disposal solution;
recommended disposal solution, including a time schedule for implementation of the disposal;
other information required pursuant to the safety regulations applicable at any time.

For each of the relevant disposal alternatives the following shall be dealt with:

technical, safety related, environmental and economic aspects;
relationship to other users of the sea, including information and evaluations on the impact on fisheries and shipping.

The Ministry may make an exemption from the requirement for contents in the disposal part, and in this connection also require further information and evaluations.

With regard to facilities placed on the land territory or on seabed subject to private property rights, the disposal part shall only deal with the disposal alternative further use in the petroleum activities.

Section 45.
Impact assessment

The impact assessment shall contain a description of the effect that each of the relevant disposal alternatives may have on commercial and the environmental aspects, and what can be done to reduce discharges and emissions in connection with disposal, and to remedy any damage or inconvenience.

The impact assessment shall be prepared on the basis of an approved impact assessment programme, cf. fourth paragraph, and shall be adapted to the extent of the disposal. The impact assessment shall be submitted to the Ministry at the latest concurrently with the disposal part of the decommissioning plan.
The Ministry may exempt from the requirement to impact assessment if the disposal is not expected to have significant effects on commercial and environmental aspects.

Well in advance of submission of a decommissioning plan the licensee shall forward to the Ministry a proposed programme for the impact assessment. The proposal shall give a short account of the relevant disposal alternatives and, based on available knowledge, of envisaged effects to the environment and to other commercial activities. Furthermore the proposal shall clarify the need for documentation. The Ministry shall decide the impact assessment programme.

In respect of disposals for which an impact assessment is also required pursuant to other legislation, a common impact assessment may be prepared.

Section 45a.
Alternative liability for disposal

«Facilities, including wells, that existed» as mentioned in Section 5-3, third paragraph of the Act, are defined as facilities, including wells, that existed physically at the time of transfer and that are located at their destination. The liability also comprises facilities commenced, including wells, in the process of being located within the area for the production licence.

«The time of the transfer» as mentioned in Section 5-3, third paragraph of the Act, is defined as the day the transfer is registered pursuant to the Regulations of 19 June 1997 No. 618 relating to the Petroleum Register, Section 4-2, second paragraph.

Alternative liability for financial obligations is defined in Section 5-3, third paragraph of the Act, as a liability incurred when a licensee, following a statutory demand for payment, has breached the payment obligation for the costs of implementing the decision relating to disposal and the agreement between the parties does not warrant covering of the claim. If an interest has been transferred several times, the other licensees must always direct their statutory demand for payment against the assignor companies in a successive sequence so that the claim is directed against the company that last transferred the interest, and then against the next company when the first breached its payment obligation. The licensee and assignor companies are deemed to have breached their payment obligation if they have not covered their liability within three months of having received the statutory demand for payment.

CHAPTER 7
INFORMATION AND DOCUMENTATION

Section 46.
Drilling and well activities

The Norwegian Offshore Directorate shall be notified of drilling and well activities. The Norwegian Offshore Directorate shall stipulate further provisions for drilling and well activities, including provisions relating to applications, documentation, data collection, reporting, time limits etc.

Section 47.
Annual status report for fields in production

An annual status report for fields in production shall be submitted to the Norwegian Offshore Directorate by 15 October each year. The report shall describe activities and measures to serve as basis for the authorities’ evaluation of production strategy, environmental issues etc.

The Norwegian Offshore Directorate may stipulate further provisions relating to the contents and format of the report.

Section 48.
Information on petroleum produced etc

The licensee shall submit to the Norwegian Offshore Directorate information on the volume of petroleum produced and on the composition of the petroleum etc, also including test production and the extraction of petroleum in connection with formation testing.

Information shall furthermore be given on use, injection, cold venting and burning of petroleum. The information shall, as far as possible, be based on metering.

Information on volumes and other results of monitoring as stated in section 27, as well as monitoring procedures, shall be submitted to the Norwegian Offshore Directorate.
The Norwegian Offshore Directorate may stipulate further provisions relating to reporting. The Norwegian Offshore Directorate may require additional information.

Section 49.
Information on sale of petroleum

Within 15 days after the expiry of each quarter, particulars of the quantities which have been sold during the quarter, to whom they have been sold, and the prices obtained shall, be submitted to the Ministry. Furthermore, information shall be given of the quantities which have been used for internal further production or refining or which have been disposed of to affiliated companies etc, and of the settlement prices which have been employed.

Licensees shall also give complete information about other special circumstances which may have affected prices or terms of payment.

It is not necessary to give information pursuant to this section to the extent corresponding information is given pursuant to Act 13 June 1975 no 35 relating to the taxation of submarine petroleum resources etc or Act 27 May 2016 no 14 relating to tax administration and regulations issued pursuant thereto.

Section 50.
Information on plans and budgets etc

As soon as plans and budgets for activities as mentioned in chapters 3 and 4 of the Act have been established for the following year, copies thereof shall be submitted to the Ministry and to the Norwegian Offshore Directorate for their information. Substantial changes in plans and budgets shall be forwarded. Supplementary information may be required.

The licensee is obliged to make available to the Ministry and the Norwegian Offshore Directorate annual reports and accounts relating to its activities. This applies correspondingly to the parent company of the licensee and any affiliates registered in Norway.

Section 50a.
Reporting to the National Budget process

Reporting to the National Budget process shall be submitted to the Ministry and to the Norwegian Offshore Directorate. The reporting shall include economical company data, projects, resource volumes and prognoses of production, costs and environmental emissions as specified by the recipient.

Section 50b.
Reporting of payments

The Norwegian Tax Administration and The Norwegian Offshore Directorate shall by 1 August each year report to the ministry all payments they have received from and payments made to the licensees the previous calendar year following the duties to pay in:

Act 13 June 1975 no 35 relating to the taxation of subsea petroleum deposits,

Act 21 December 1990 no 72 relating to CO2 tax in the petroleum activity on the continental shelf,

Regulations dated 11 December 2001 no 1451 relating to excise duty chapter 3-19 regarding tax on NOx,

The Act section 4-10.

The Ministry may stipulate a form for reporting of payment in accordance with this section.

Section 51.
Information on research and development projects

The licensee shall, upon request from the Ministry, provide information on planned, ongoing or concluded research and development projects with relevance for the petroleum activities on the Norwegian continental shelf.

Section 52.
Information from areas outside the Norwegian continental shelf

The licensee of a production licence is obliged to make available free of charge to the Norwegian Offshore Directorate geological and geophysical material from areas outside the Norwegian continental shelf, which have been purchased or traded in connection with the activities pursuant to the production licence, and which the Directorate considers to be of relevance for the understanding of the geology on or inside the Norwegian continental shelf.

Section 53.
Submission of material and information

The Norwegian Offshore Directorate may decide what standard format shall be used in submission of material and information, as well as routines for such submission to the extent this is considered reasonable. Format in this context means physical shape, including medium. By format is also meant the structure, including data structure and packaging etc.

Reformatting of old data may only be required to the extent that this is considered reasonable based on costs and the need of the authorities for such data.

Section 54.
Transfer of software

Materials and information which the Ministry and the Norwegian Offshore Directorate may require to be submitted pursuant to the Act section 10-4 and provisions contained in these regulations, also comprise software which is used to process the former, plus the necessary documentation in this connection. The licensee shall pay the transfer costs to the machines of the users to the extent this is considered reasonable.

Section 55.
Safekeeping duty

The licensee shall retain for safekeeping material and information necessary to ensure that the Ministry can verify whether the petroleum activities are carried out in accordance with the statutory framework of legislation, for as long as it provides necessary information about the petroleum activities.

If the operator wishes to destroy material or information which may be of importance to the management of resources, the Norwegian Offshore Directorate shall receive a list of material and information prior to it being destroyed, and may within a reasonable time after having received the list order handing over or further safekeeping free of charge. In the case of handing over, sufficient documentation in relation to such material and information shall be included.

CHAPTER 8
MANAGEMENT SYSTEMS FOR THE PETROLEUM ACTIVITIES

Section 56.
Management systems

The main objective of management systems established according to the Act section 10-6 in order to ensure compliance with statutory requirements, shall be to contribute to ensuring and furthering the quality of the work carried out in the petroleum activities.

The management system shall specify the applicable statutory requirements and shall to the extent necessary include internal requirements to and routines for compliance with statutory requirements. Furthermore the management system shall include internal requirements to and routines for organization, division of responsibility, division of authority in the individual case and between the licensee and other participants in the petroleum activities, competence, resources and work performance in relation to the party establishing the management system according to the first paragraph.

Section 57.
Documentation

The management system shall be documented in order to ensure compliance with the applicable statutory requirements.

Section 58.
Follow-up of the management system

The management system shall be subject to review on a regular basis and shall if necessary be updated in order to ensure conformity with the requirements of sections 56 and 57.

CHAPTER 9
ACCESS TO UPSTREAM PIPELINE NETWORKS

Section 59.
Principles for access to upstream pipeline networks

Natural gas undertakings and eligible customers who have a duly substantiated reasonable need of transportation and/or processing of natural gas shall, on objective and non-discriminatory conditions, have right of access to upstream pipeline networks, including facilities supplying technical services incidental to such access, in accordance with the rules of this chapter.

The operator, owner and the party entitled to use the upstream pipeline network shall ensure, on receiving inquiries from natural gas undertakings and eligible customers for access to use capacity in upstream pipeline networks, that such inquiries are handled within a reasonable period of time.

The right to use capacity in the upstream pipeline network is subject to the specifications of the natural gas to be transported and/or processed being reasonably compatible with the technical requirements for and efficient operation of the upstream pipeline network.

Further conditions and procedures for application of this provision shall be determined by the operator after consulting the owner and users of the upstream pipeline network. Access may be refused by the operator if the conditions for the right of use pursuant to this provision are not satisfied.

Section 60.
Definitions

For the purposes of this chapter “owner” means the joint venture and companies that own upstream pipeline networks, as well as the participants in such joint ventures and companies.

For the purposes of this chapter “spare capacity” means the capacity that is physically available at any time, with the exception of the capacity necessary to meet existing contracts concerning transportation of natural gas and the right to use capacity in the upstream pipeline network, and to ensure efficient operation of the upstream pipeline network.

For the purposes of this chapter an “agreement in the primary market” means an agreement for the right to use spare capacity in upstream pipeline networks, or an agreement on capacity as mentioned in section 61 seventh paragraph, entered into by a natural gas undertaking or eligible customer with the owner of the upstream pipeline network acting in his capacity as owner, or with the operator acting on behalf of the owner in his capacity as owner.

For the purposes of this chapter an “agreement in the secondary market” means an agreement for the transfer of rights to use capacity in upstream pipeline networks other than contracts in the primary market.

For the purposes of this chapter “tariff” means payment for the right to use capacity in upstream pipeline network.

Section 61.
Entering into agreements in the primary market

The owner shall make spare capacity in upstream pipeline network in the primary market available to the operator, who shall make it available collectively. Spare capacity may only be made available to natural gas undertakings and eligible customers. Agreements in the primary market are to be entered into with the operator on behalf of the owner.

The operator shall present a recommendation to the owner as to what shall be regarded as physically available capacity. The operator may not base determination of spare capacity on this recommendation until it has been approved by the owner. The physically available capacity determined for an upstream pipeline network shall be as high as possible, having regard to efficient operations.

At announced points in time the operator shall allow natural gas undertakings and eligible customers to reserve a right to use spare capacity in the upstream pipeline network for specified periods of time. The operator shall determine, on the basis of rules contained in or pursuant to this chapter, what is to be considered as spare capacity at any time. A time limit shall be imposed for making such reservations. Reservation of spare capacity may take place both on a short-term and a long-term basis.

If on expiry of the time limit the sum of the reservations applied for as mentioned in the third paragraph, does not exceed the capacity for which reservation was allowed, the natural gas undertakings and eligible customers shall be allocated the right to use spare capacity in accordance with their reservations. After such allocation has taken place, remaining spare capacity for which there is a demand and for which reservation is allowed according to the third paragraph, shall be allocated to natural gas undertakings and eligible customers consecutively.

Rights to use spare capacity on a long-term basis shall be allocated before rights to use spare capacity on a short-term basis. Before allocating rights to use spare capacity on a long-term basis, the operator may stipulate that a part of the spare capacity shall be retained for allocation on a short-term basis at a later date.

If the sum of reservations applied for exceeds the spare capacity for which reservation is allowed according to the third paragraph, rights to use the spare capacity shall be allocated to natural gas undertakings and eligible customers according to a distribution formula. The distribution formula shall be determined by the operator for a specific period of time, based on the production of the individual natural gas undertakings and eligible customers, and on their sales, loans or purchases of natural gas that give rise to a need for transport and/or processing in the upstream pipeline network, adjusted for their existing rights of use.

If there is no spare capacity in an upstream gas pipeline network and reserved capacity is not utilised, the operator can make available the spare reserved capacity to natural gas undertakings and eligible customers. The operator can discontinue the use of reserved capacity that is not utilised at any time, so that the capacity is made available for the part that has reserved it. If the sum of demanded use of reserved capacity not utilised exceeds the reserved capacity not utilised, the operator shall distribute the capacity according to a distribution formula stipulated by the operator.

Section 62.
Allocation of new capacity resulting from expansions

When allocating rights to use increased spare capacity in an upstream pipeline network, consideration shall first be given to the duly substantiated reasonable needs of the party who bore the cost of such capacity, limited upwards to that party’s share of the investment. The Ministry may decide that the upward limit to the individual party’s share of the investment according to the first sentence shall not apply, including determining a different limit.

Section 63.
Tariff for agreements in the primary market

Tariffs for agreements in the primary market shall be in accordance with the provisions laid down in and pursuant to this chapter.

A tariff shall be paid for the right the user has to capacity in the upstream pipeline network irrespective of whether that capacity is actually used.

The tariff consists of a capital element and an operating element.

The capital element is stipulated by the Ministry. When stipulating it, consideration shall be given to promoting the best possible management of resources. Furthermore, the capital element must be so stipulated that the owner can expect a reasonable return on the capital invested. Other special circumstances may also be taken into account.

The operating element must be such that neither the owner nor the operator has any loss or profit on management of the upstream pipeline network, other than the return stipulated pursuant to the fourth paragraph. The Ministry may stipulate which costs shall be taken into account when calculating the operating element. If consideration of efficient management so dictates, the Ministry may consent to exemption from the principle as mentioned in the first sentence of this paragraph.

The Ministry stipulates how costs relating to obligations concerning the future disposal of facilities for the transportation of natural gas shall be covered.

Section 64.
Transferring rights to use capacity in an upstream pipeline network – the secondary market

The right to use capacity in an upstream pipeline network may be transferred by agreement in the secondary market. Such agreements may only by entered into with natural gas undertakings and eligible customers who have a duly substantiated reasonable need for transport and/or processing of natural gas that accords with the requirements applying to the relevant upstream pipeline network, cf. section 59, third paragraph. Before such an agreement is entered into, or as soon as possible after such an agreement is entered into, the operator shall decide on whether the conditions for right to access are satisfied and thus whether right to access shall be granted in accordance with the agreement.

When a party who has a right to use capacity in an upstream pipeline network no longer has a duly substantiated reasonable need for all or part of that capacity, the natural gas undertakings and eligible customers who satisfy the condition in the first paragraph, shall have a right of access to this capacity.

The operator shall be informed of circumstances as mentioned in the second paragraph and shall be notified when an agreement is entered into in the secondary market.

The operator shall arrange and conduct a market place for transferring rights to use capacity in upstream pipeline networks. The operator shall draw up rules for the market place, which shall be subject to approval by the Ministry. None other than the operator may conduct a market place for transferring rights to use capacity in upstream pipeline networks, which are not under their management, without the consent of the Ministry. The Ministry may decide that all transfers of rights of use in the secondary market shall be made through the market place.

Section 65.
The Ministry's handling of agreements for use

The individual agreement for the use of capacity in an upstream pipeline network that is entered into with a natural gas undertaking or eligible customer shall not be forwarded to the Ministry for approval, unless otherwise decided by the Ministry.

Agreements in the primary market shall be entered into in accordance with a standard agreement drawn up by the operator and approved by the Ministry. When drawing up the standard agreement, the operator shall consult the owner and users of the relevant upstream pipeline network and give their interests reasonable consideration.

The Ministry may decide that agreements for use of capacity in an upstream pipeline network and the conditions for transferring rights of use in the secondary market as mentioned shall be reported to the Ministry or its appointed representative.

Section 66.
Responsibility for the system

The operator shall be responsible for the operation of the upstream pipeline network, including maintenance and maintenance planning, in a good and prudent manner. The operator shall act in an impartial and non-discriminatory manner. The operator shall co-ordinate maintenance planning for the connected fields.

Nominations of gas quality at inlets and outlets from the upstream pipeline network shall be co-ordinated by the operator.

In case of unforeseen events the operator may require that users, for short periods of time, adapt their supplies of natural gas at the inlet to the upstream pipeline network, to ensure that produced natural gas does not create significant operational disturbances or deterioration in the quality of the gas in such manner that specification requirements at the outlet from the upstream pipeline network are not met. In special circumstances the operator may require that a licensee of a production licence under which petroleum is being produced, adapt his operations under the production licence for a short period to comply with the concerns set out in the first sentence. The operator shall, after consulting the affected parties, draw up procedures for application of this provision.

Adaptations exceeding short periods may only be required upon consent from the Ministry in each particular case.
The operator shall make available information regarding spare capacity in the upstream pipeline network and such capacity as mentioned in section 64, third paragraph, to natural gas undertakings and eligible customers requesting such information.

Owner of upstream pipeline networks may not instruct the operator in his performance of tasks assigned to him in or pursuant to this chapter, unless otherwise is specifically stipulated in these regulations.

The Act of 10 February 1967 relating to Public Administration does not apply to the operator except for situations where the operator makes individual decisions pursuant to the following provisions: Section 59 fourth paragraph last sentence, Sections 61, 62, Section 64 first paragraph last sentence, and third paragraph. However, a decision made pursuant to the third paragraph is exempted from the provisions of Chapters IV-VI and VIII of the Public Administration Act. Administrative decisions made by the operator may be appealed to the Ministry.

Section 66a.
Further development of the upstream gas pipeline network

As part of its responsibility for the system pursuant to Section 66, the operator shall consider further development of the upstream gas pipeline system and associated facilities with a view towards achieving comprehensive transport and treatment solutions for the petroleum activities.

When it becomes likely that they will need capacity for transport or treatment of natural gas, natural gas undertakings and qualified customers shall inform the operator.

If the operator requests information regarding petroleum deposits, field development, transport and treatment solutions that is necessary in order to carry out assessments in accordance with this provision, the natural gas undertakings and qualified customers shall provide such information within a reasonable deadline set by the operator.

When it becomes likely that natural gas undertakings and qualified customers will need new capacity for transport or treatment of natural gas, the operator shall, to the extent necessary, provide such technical information regarding the existing upstream gas pipeline network as can reasonably be requested. Before releasing such information, the operator shall notify the owner of the facilities in question.

After consulting with natural gas undertakings and qualified customers that have informed the operator pursuant to the second paragraph, the operator shall determine which potential solutions shall be considered and ensure that such an evaluation is carried out.

The operator shall endeavour to identify specific natural gas undertakings and/or qualified customers that have an interest in evaluations pursuant to this provision. The operator can make inquiries of natural gas undertakings and qualified customers regarding participation in further development of the upstream gas pipeline network and associated facilities.

When the operator conducts assessments in accordance with this provision for one or more specific natural gas undertakings and/or qualified customers, the costs of such assessments shall be covered by such parties. Other costs associated with assessments the operator carries out in accordance with this provision shall be covered by the users of the upstream gas pipeline network pursuant to Section 4 of the Tariffs Regulations. Before a significant portion of such costs are incurred, the operator shall consult with these users.

The operator shall submit the assessments performed in accordance with this provision to the Ministry.

Section 67.
Orders

If natural gas undertakings and eligible customers are not given right of access to upstream pipeline networks in accordance with the provisions of this chapter, the Ministry, directly or through the operator, may order the owner or the party entitled to use the upstream pipeline facility to give them the right to use capacity.

The Ministry may issue orders concerning the distribution and redistribution of capacity if the Ministry finds that capacity has not been distributed or is not being distributed in a manner ensuring the best possible management of resources, including regularity of supplies and regularity of production. Further, the Ministry may issue orders concerning the distribution and redistribution of capacity to avoid difficulties in upstream pipeline networks which cannot be reasonably overcome, and that could impair the efficient, current and planned future production of

petroleum, including that from deposits of limited economic viability.
Natural gas undertakings and eligible customers from which capacity is taken pursuant to the first and second paragraphs, shall be given compensation that take account of the costs of acquiring such capacity.

Section 68.
Disputes

Disputes relating to access to an upstream pipeline network may be referred to the Ministry or the party authorised by the Ministry for final decision. Such decisions shall be made without undue delay after referral. The Ministry or the party authorised by the Ministry may, as the dispute settlement authority, require the owner of such facilities to render separate accounts for transportation in the upstream pipeline network, as well as any other information for resolving the dispute.

Disagreements regarding Section 66a relating to further development may be brought before the Ministry for resolution. The Ministry can demand that the parties submit the necessary information to resolve the dispute.

Section 68a.
Duty of confidentiality

The operator is obliged to prevent unauthorised parties from acquiring access to or knowledge of information that the operator receives in connection with its activities under the provisions of this Chapter 9, and which relate to technical devices or approaches, as well as operational or commercial factors which, for reasons related to competition, should be kept secret out of consideration for the party involved.

The duty of confidentiality according to the first paragraph does not apply in relation to the tax authorities when submitting information in accordance with act 27 May 2016 no 14 relating to tax administration section 10-2 first and second paragraph.

Section 69.
Scope of application of individual provisions in this chapter

The rules in Section 59, fourth paragraph, Section 61, Section 63, Section 64 third and fourth paragraphs, Section 65 and Section 66 second, third, fourth and fifth paragraphs shall only apply to the upstream gas pipeline network covered under the Tariffs Regulations.

The Ministry may decide that other facilities linked to upstream pipeline networks, such as processing plants, terminals and the final receiving terminal, as well as facilities for the transport and processing of condensate shall be encompassed by the rules concerning upstream pipeline networks that are laid down in or pursuant to these Regulations.

Section 70.
Final provisions

The Ministry stipulates supplementary provisions to the rules of this chapter through regulations or by individual administrative decisions.

The Ministry may decide that one or more of the provisions of this chapter, with the exception of section 59, shall not apply in regard to certain specific agreements regarding transportation of natural gas in upstream pipeline networks approved pursuant to section 4-8 of the Act, before these Regulations enter into force.

CHAPTER 10
GENERAL PROVISIONS

Section 71.
Organization of the activities on shore

After the granting of a licence as mentioned in the Act sections 3-3 and 4-3, the Ministry may require that the licensee shall submit to the Ministry a plan specifying the intended localisation and organization of the activities on the land territory or on seabed subject to private property rights.

Section 72.
Transfer of a licence

When applying for approval to transfer a licence pursuant to the Act section 10-12 first paragraph, the provisions of sections 8, 10, 11, 28 and 29 of these regulations shall apply to the extent that they are appropriate.

Section 73.
Insurance

The activities conducted by the licensee pursuant to the Act Chapters 3 and 4 shall be insured at all times. The insurance must at least cover:

damage to facilities,
pollution damage and other liability towards third parties,
wreck removal and clean-up as a result of accidents,
insurance of the licensee’s own employees who are engaged in the activities.

The licensee shall ensure that contractors and subcontractors engaged in the activities take out insurance for their employees to the same extent as the operator insures his own employees.

When taking out insurance as mentioned in the first paragraph literas a) to c), the licensee shall provide reasonable insurance cover, taking into consideration risk exposure and premium costs. Insurance as mentioned under litera d) shall be taken out as further agreed with the organizations of the employees.

The Ministry may consent to the licensee using another form of security arrangement.

At the end of each calendar year, the licensee shall inform the Norwegian Offshore Directorate with a copy to the Ministry about existing insurance agreements, with an indication of the main terms. The Ministry may require further insurance to be taken out.

At the end of each calendar year, the licensee shall inform the Ministry about existing insurance agreements, with an indication of the main terms. The Ministry may require further insurance to be taken out.

Section 74.
Audit

In licence with state participation where the annual costs associated with the state participation is NOK 20 million or more, the operator shall ensure that accounts for the licence, that are prepared in accordance with the licence, are audited by a state authorized public accountant. The audit report, in accordance with ISA 800, shall be available no later than four months after the end of the financial year.

The Ministry may adjust the limit in the first paragraph according to change in the value of money.

Section 75.
Use of labour

The licensee is responsible for seeing that all foreign employees who are required to have a work permit possess the necessary permit before work is commenced. The licensee shall not make use of labour that is hired out in violation of Norwegian legislation.

The licensee shall see to it that this provision is complied with by the contractors and subcontractors of the licensee.

Section 76.
Use of the Norwegian language

The Norwegian language should be used to the greatest extent possible in the petroleum activities. Other languages may be used when necessary or reasonable for the execution of the activities.

Section 77.
Publicly available information

The licensee is obliged, through the operator, to make information about petroleum activities publicly available to the greatest possible extent as and when such information becomes available to the licensee.

Section 78.
Trade union activities

Elected representatives of the employees in a trade union which has a wage agreement with the licensee, contractors or subcontractors performing work for him shall, to a reasonable extent, be allowed access to the work site in order to attend to duties relating to tariffs after having given notice to the local management.

Section 79.
Naming etc of petroleum deposits

Designations given to petroleum deposits, fixed facilities and wells shall be approved by the Norwegian Offshore Directorate.

The Norwegian Offshore Directorate may stipulate provisions supplementing this section.

The use of proper names in naming of fields shall be approved by the Ministry.

Section 79a.
Notification and reporting

The Norwegian Offshore Directorate shall immediately be notified of incidents and other circumstances which may result in the closing down of a facility or the reduction of production of petroleum, or have influence on the implementation of activities in accordance with administrative decisions made pursuant to the Act or these regulations. The obligation to notify does not apply in cases where the Norwegian Ocean Industry Authority already has been notified. The Norwegian Ocean Industry Authority will in such cases immediately notify the Norwegian Offshore Directorate. The Ministry may lay down detailed regulations on notification and reporting to the Norwegian Offshore Directorate.

Section 80.
Information relating to suppliers

The licensee cannot, pursuant to the Act, be ordered to provide information relating to future or present suppliers, unless the Ministry so requests on the basis of consideration for public morals, order and security, public health, protection of life and health for people and animals, plant life, national treasures of artistic, historical or archaeological value, or the industrial or commercial property right.

Section 81.
Regulatory supervision etc

Representatives from the Ministry, the Norwegian Offshore Directorate or other authorities as decided by the Norwegian Offshore Directorate, shall at all times have access to vessels and facilities for petroleum activities, as well as to existing data and materials which are necessary to perform regulatory supervision, and shall have the right to take part in survey activities. Representatives from the authorities have the right to stay on vessels and facilities for as long it is necessary. The licensee shall provide transportation of representatives from the authorities to and from vessels and facilities, as well as their stay on board.

Section 82.
Observers

Representatives from the Ministry and the Norwegian Offshore Directorate shall have the right to participate as observers in co-operative bodies established in accordance with agreements as mentioned in the Act section 3-3, with a view to joint activities as mentioned in the Act section 4-7, and if applicable, in co-operative bodies established in connection with the placing and operation of facilities as mentioned in the Act section 4-3.

Section 83.
Expert and laboratory services

To the extent that this is considered reasonable, the Norwegian Offshore Directorate may require the licensee to make expert and laboratory services available to the Norwegian Offshore Directorate for the purpose of solving particular problems in connection with the petroleum activities.

Section 84.
Training of civil servants

The licensee may be required to carry out training of personnel from the Ministry, the Norwegian Offshore Directorate or other Norwegian authorities. The training shall be carried out according to further agreement.

The Ministry may impose on the licensee to make provision for teachers teaching petroleum related subjects in Norwegian educational institutions to obtain practical on the job training at the offices, plants and facilities of the licensee.

Section 85.
Procedures and duty of secrecy

The rules of the Act 10 February 1967 relating to procedures in cases concerning the public administration (the public administration Act) section 18, first paragraph regarding the right of a party to acquaint himself with the documents of the case, are not applicable to applications for production licence.

Information of any kind communicated to the authorities in connection with an application for production licence shall be subject to duty of secrecy until the production licence for the areas in question have been granted. Thereafter, the information shall be subject to duty of secrecy to the extent this is in accordance with the public administration Act, for a period of 20 years, cf. the public administration Act section 13 c), third paragraph.

Anyone performing services or work for a public body shall have a duty to prevent unauthorized persons from gaining access to or knowledge of what they become acquainted with in their service or work about aspects of geology, reservoir engineering or production engineering from reports or other material submitted to public authorities. With regard to data subject to the duty of secrecy according to the first sentence, the duty of secrecy shall have the following duration calculated from the time when the data became available to the owner of the data:

5 years for interpreted data,
10 years for data, which have been commercially available from the time when they became available to the owner,
2 years for other data.

With regard to data as mentioned in the third paragraph literas b and c and for interpreted data in status reports, cf. the Resource Management Regulations section 27, which are owned as joint property by licensees holding a production licence, the duty of secrecy lapses as from the time when the licence is surrendered, lapsed or expires or the area where the data originate from is relinquished. For other interpreted data as mentioned in third paragraph litera a, which are owned as joint property by licensees holding a production licence, the duty of secrecy lapses one year after the time when the licence is surrendered, lapsed or expires or the area where the data originate from is relinquished Information as to whether the data shall be commercially available shall be submitted to the Norwegian Offshore Directorate according to section 6 fifth paragraph. The Norwegian Offshore Directorate may determine what shall be considered to be commercially available data. The Norwegian Offshore Directorate may on application prolong or shorten the period for duty of secrecy for data as mentioned in the third paragraph.

Otherwise the provisions relating to confidentiality in sections 13 to 13 f of the public administration Act shall apply to public bodies receiving or dealing with information or material relating to petroleum activities, notwithstanding that the duty of secrecy shall cease after 20 years, cf. section 13 c third paragraph of the public administration Act.

The provisions in this section shall not prevent the Ministry from making general statements about the activities and the possibilities of finding petroleum deposits, nor shall they prevent the exchange of information as assumed in the Act 3 June 1994 no55 relating to the Central Coordinating Register of Legal Entities (‘Enhetsregisteret’) and the Act 6 June 1997 no35 relating to “Oppgaveregisteret”

Further the provisions in this section shall not prevent the exchange of information with the Norwegian Ocean Industry Authority and the operator as mentioned in the Act section 4-9 and these regulations section 66.

Section 86.
Delegation and dispensation

The Ministry may issue such regulations and give such orders as may be necessary for the implementation of these regulations.

The Ministry may make its own decisions or delegate authority to others, regardless of whether authority has been delegated to the Norwegian Offshore Directorate pursuant to these regulations.

Authority in connection with regulatory supervision may in particular cases be delegated to others than public bodies.

In particular cases, the Ministry may grant dispensation from provisions contained in or issued pursuant to these regulations.

When authority in these regulations has been delegated to the Norwegian Offshore Directorate, this also comprises authority pursuant to the first and fourth paragraphs.

Section 87.
Penal provision

Violation of these regulations or of decisions made pursuant to these regulations shall be punishable as stated in the Act section 10-17.

Section 88.
Entry into force etc

These regulations enter into force 1 July 1997. As from the same time, the following shall be repealed:

Regulations 14 June 1985 no 1158 to Act relating to petroleum activities.
Regulations 1 April 1980 no 9464 relating to the collection of royalty on production of petroleum resources in Norwegian internal waters, in Norwegian sea territory and that part of the continental shelf which is under Norwegian sovereignty.

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English version is not necessarily updated according to recent changes at any time.

Updated: 15/03/2024

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Oljedirektoratet

Regulations to Act relating to petroleum activities

Contents

CHAPTER 1. INTRODUCTORY PROVISIONS

CHAPTER 2. SURVEY LICENCES

CHAPTER 2a. IMPACT ASSESSMENTS RELATING TO OPENING OF NEW AREAS FOR PETROLEUM ACTIVITIES

CHAPTER 3. PRODUCTION LICENCES ETC

CHAPTER 4. PRODUCTION ETC OF PETROLEUM

CHAPTER 4a. STORAGE OF CO2

CHAPTER 5. PRODUCTION FEES AND AREA FEES

CHAPTER 6. CESSATION OF PETROLEUM ACTIVITIES

CHAPTER 7. INFORMATION AND DOCUMENTATION

CHAPTER 8. MANAGEMENT SYSTEMS FOR THE PETROLEUM ACTIVITIES

CHAPTER 9. ACCESS TO UPSTREAM PIPELINE NETWORKS

CHAPTER 10. GENERAL PROVISIONS

CHAPTER 1INTRODUCTORY PROVISIONS

Section 1.Scope of application

Section 2.Definitions

CHAPTER 2SURVEY LICENCES

Section 3.Applications for survey licences

Section 4.Survey activities authorized by the licence

Section 5.Payment for the survey licence

Section 6.Submission of information in connection with surveys

CHAPTER 2aIMPACT ASSESSMENTS RELATING TO OPENING OF NEW AREAS FOR PETROLEUM ACTIVITIES

Section 6a.The competent authority and the object of the impact assessment

Section 6b.Impact assessment programme

Section 6c.The impact assessment

Section 6d.Submission of the proposal

CHAPTER 3PRODUCTION LICENCES ETC

Section 7.Public announcement

Section 8.Applications for production licences

Section 9.Handling fee

Section 10.Criteria for granting production licences and for conducting petroleum activities pursuant to a production licence

Section 11.Conditions and requirements

Section 12.State participation

Section 13.Work obligation

Section 14.Extension of production licences

Section 15.Shape and size of areas

CHAPTER 4PRODUCTION ETC OF PETROLEUM

Section 16.Evaluation of a petroleum deposit

Section 17.Statement that production will not be commenced

Section 18.Test production

Section 19.Repealed

Section 20.Plan for development and operation of a petroleum deposit

Section 21.Description of the development in the plan for development and operation of a petroleum deposit

Section 22.Impact assessment programme for environmental impact assessment in plan for development and operation of a petroleum deposit

Section 22a.Impact assessment in plan for development and operation of a petroleum deposit

Section 22b.Exemption from the requirement relating to impact assessment

Section 22c.Impact assessment in the case of significant transboundary environmental effects

Section 23.Stipulation of production schedule etc

Section 24.Field report

Section 25.Measures to obtain information

Section 26.Metering of petroleum produced

Section 27.Monitoring of the deposit and process during production

Section 28.Licence to install and to operate facilities

Section 29.Contents of a plan to install and operate facilities

Section 30.Surveys of pipeline routes and other subsurface surveys

Section 30a.Consent to commencement and continuation

Section 30b.Leasing of production facility

CHAPTER 4aSTORAGE OF CO2

Section 30c.Storage of CO2

Section 30d.Selecting a storage location

Section 30e.Consent for injection and storage of CO2

Section 30f.Conditions for consent for injection and storage of CO2

Section 30g.Monitoring

Section 30h.Regulatory supervision

Section 30i.Regulatory supervision

Section 30j.Shutdown and post-operation

Section 30k.Transfer of responsibility

Section 30l.Financial guarantee

Section 30m.Financial mechanism

CHAPTER 5PRODUCTION FEES AND AREA FEES

Section 31.Rates applicable to production fees etc

Section 32.Stipulation of value of petroleum etc

Section 33.Payment of production fees

Section 34.Collection of production fees in the form of petroleum

Section 35.Documentation relating to settlement of fees

Section 36.Use of currency exchange rates

Section 37.Joint sale of petroleum

Section 38.Audit of the basis for the settlement fees