Coal Authority standard requirements for extending the term of conditional licenses
Updated 18 November 2016
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This publication is available at https://www.gov.uk/government/publications/underground-coal-gasification-licences/coal-authority-standard-requirements-for-extending-the-term-of-conditional-licenses
In the provisions of Coal Authority (“the Authority”) conditional coal mining licences an extension of the conditional term can be permitted, subject to:
such reasonable and proper further fees, consideration and conditions as the Authority reasonably thinks fit including ….. the provision of appropriate information so that the Authority can discharge its duties under Section 2(1)(b) and 2(2)(a) of the Coal Industry Act 1994
We cannot automatically extend the term of conditional licences on request as we need to be satisfied that licensed projects have been worked on, are being progressed and will be moved, if possible, to a point of de-conditionalisation rather than be held as assets.
As such we will need to be supplied with comprehensive written evidence when an application is made to extend a conditional term to enable it to make a reasoned decision whether to consent to the term extension. This evidence should include:
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substantive details of all the work and expenditure that has been undertaken on the project to date in support of the request for an extension of term;
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a detailed and fully costed plan to progress the project in a second phase to licence de-conditionalisation;
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evidence of the finance available to carry on and develop the project to de-conditionalisation. The Authority’s financial requirements are set out in the application form;
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any site specific conditions set out in the Licence (e.g. Working Obligations).
The term of the associated lease option will need to be extended as well and any extension of term will attract our standard option payments.
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We have a duty to promote competition so if we consider that the conditions have not fully been met and we are aware of alternative interests in an area then we may decide that any project where a proposed extension of term has been applied for will need to be re-advertised in an Authority newsletter.
If we take the decision not to extend the conditional term of a licence then this will not prevent the licensee re-applying for a new licence over the same or a modified area.