The Oil and Gas
Authority (Levy and Fees) Regulations 2024
EXPLANATORY NOTE
(This note is not part of the Regulations)
These Regulations make provision in respect of a levy and fees
payable to the Oil and Gas Authority (“the OGA”).
Regulations 2 to 9 make provision for calculating and imposing a
levy on the holders of petroleum licences in respect of the
period beginning on 1st April 2024 and ending on 31st March 2025
(“the relevant charging period”). The levy is payable to meet
costs incurred by the OGA in carrying out its functions as well
as costs incurred by the Lord Chancellor in connection with the
provision of Tribunals to consider appeals against the decisions
of the OGA.
Regulation 3 sets out liability to pay the production levy for
the relevant charging period. This is the highest rate of levy.
Regulation 4 sets out liability to pay the non-production levy.
Paragraphs (2) and (3) provide that micro-enterprises holding
promote or innovate licences at the relevant time in certain
circumstances qualify to pay the non-production levy at
discounted rates in respect of those licences.
Regulation 5 provides the methodology for calculating the
production levy and the non-production levy.
Regulations 6 to 8 provide for the process by which licensees are
notified as to the amount of levy payable, for interest to be
payable on late payments, and for the OGA to be able to take
action to recover any unpaid levy as a civil debt.
Regulation 9 requires the amount of the levy to be paid by
licensees under regulations 3 and 4 to be adjusted if the total
amount of levy to be recovered under these Regulations exceeds
the leviable costs incurred by the OGA and the Lord Chancellor in
respect of the relevant charging period. The OGA will credit the
licensees appropriately should that be the case.
Regulation 10 amends the Oil and Gas Authority (Fees) Regulations
2016 (S.I. 2016/904) to
change certain fees charged by the OGA relating to the offshore
oil and gas industry including in relation to carbon dioxide
storage. The changes (some fees are increased and some decreased)
do not reflect changes in inflation and are explained in the
Explanatory Memorandum published alongside this instrument
on www.legislation.gov.uk.
