Form

Guidance Notes for Applicants for Deep Energy Borehole Access Agreements

Published 18 November 2016

Those wishing to gain access through unworked coal seams or abandoned coal mine workings to search for or exploit oil and gas, or to carry out deep geothermal operations, will require the permission of the owner of the coal or the coal mine workings. In virtually all circumstances in England, Scotland and Wales, but not Northern Ireland, the owner will be the Coal Authority (“the Authority”) and we will issue a Deep Energy Borehole Access Agreement (“Agreement”) for this purpose.

Where the application area for an Agreement overlaps an existing coal-mining licence and lease the applicant will also require the agreement of the holder of those rights. In such circumstances we will formally notify the applicant and the holder of the coal-mining licence at the application stage.

We will not grant an Agreement to facilitate oil and gas operations unless the applicant holds a petroleum licence from the Oil and Gas Authority covering the relevant area. There are no such restrictions if the purpose is to facilitate deep geothermal operations.

We charge fees in relation to the application, grant and holding of an Agreement.

View current fees for Coal Authority licences

1. Nature of agreement

We grant two types of new Agreement to pass through our unworked coal seams or abandoned coal mine workings, namely:

• an Agreement to search for or exploit oil and gas from a single surface site within a Petroleum Licence area; or

• an Agreement to explore the potential for, or to carry out, deep geothermal operations from a single surface site.

We also grant variations to an Agreement including change in Agreement area, extension of term and assignment to a new operator.

An Agreement relates to a single surface site but may include multiple boreholes drilled from that single surface site.

A copy of our model Licence is available on request.

2. Timing and Content of Applications

The application for an Agreement can be made to us at any time but must be in place before any works start. The information to be provided is set out in the application form.

Applicants should note the following when submitting an application.

The application must be in English.

The applicant is required to pay a non-refundable fee when submitting the application.

We will formally acknowledge receipt of the application. The acknowledged receipt does not constitute an undertaking by us that an agreement will be granted, nor does the grant of an agreement imply any confirmation by us that there is any potential for Deep Energy operations within the Agreement area.

We may ask for additional information or clarification from the applicant. It will greatly assist the Authority if applications are full and complete and applicants respond promptly to any request for further information or clarification.

If, following a request by us for further information, a period of 3 months (or other period agreed in writing) elapses without the applicant providing that information, we reserve the right to terminate the application by way of written notification.

If it emerges during the processing of the application that any information supplied by the applicant is false or misleading, or that any material information has been withheld, we may reject the application or, if the Agreement has already been granted, we may terminate it by written notice.

3. Determining Applications

We have a target that we will make a determination on whether or not to grant an Agreement within 5 weeks of an application being deemed complete.

We will determine an application in the light of our statutory duties, as outlined in the Coal Industry Act 1994. These include the duties:

• to secure, so far as practicable, that an economically viable coal-mining industry in Great Britain is maintained and developed by the persons authorised to carry on coal-mining operations;

• to have regard to the desirability of the exploitation, so far as that is economically viable, of coal bed methane in Great Britain.

In essence the duties outlined above require us to consider the implications of an application for an Agreement on existing and future coal-mining operations and the potential for coal bed methane exploitation.

If we decide to grant an Agreement then we will make an offer in writing to the applicant enclosing copies of the legal documents for signing. If the offer is accepted the applicant will be required to pay a grant fee.

It will greatly assist us if the applicant responds promptly to the offer of an Agreement. If, following an offer of an Agreement, a period of 2 months elapses without the applicant returning the signed legal documents and paying the required grant fee, we reserve the right to withdraw the offer by way of written notification.

4. Refusal of an Application

If an application for an Agreement is refused then we will state in writing our reasons for refusal. The applicant may, within 28 working days, request a review and state in writing to us the reasons why the refusal should be reviewed. The review will be conducted by a panel of members of the Authority and the applicant will be entitled to attend the review and present the written representations.

The applicant will normally be informed of the outcome of the Panel’s review within 28 working days of the review taking place.

5. Term of Agreement

The term of an Agreement is requested by the applicant but if the Agreement is to facilitate oil and gas operations then the term will mirror that of the associated petroleum licence unless a lesser period is requested.

Where an Agreement has a term of longer than 1 year then we will charge an annual fee.

6. Interaction Agreement

Interaction comprises, broadly, the effects of an operation on another operation. In terms of the Authority, those interaction effects include the flows of water and gas, and effects on the structural integrity of workings, coal seams and the surface.

The Interaction Agreement provides a framework to facilitate arrangements between parties holding licences and agreements from us to deal with possible interaction effects (other than those addressed by the Health and Safety Executive’s regulatory regime). We are a signatory to the Interaction Agreement so interaction effects can be with our operations.

An applicant who has not already done so will be required to become a party to the Interaction Agreement when being granted an Agreement.

We may disclose the existence of an Agreement and the name and address of the Agreement holder to any other party for the purpose of enabling such party to engage with the Agreement holder under the terms of the Interaction Agreement.

Copies of the Interaction Agreement are available for download on our website as shown above or directly from us at the contact details shown on the application form. A list of the parties to the Interaction Agreement is also available directly from us.