OT04720 - PRT: administration: negative claims

OTA75\SCH5-7

Negative Schedule 6 claims may be made in order to protect confidentiality (see OT04450).

Netting of “underclaims” and “overclaims”

When a PRT claim is made the claimant is required to declare that all statements made in the claim and supporting schedules are correct. Decisions are made on the basis of individual entries on schedules. If in any particular the detail in a schedule is overstated the claim itself is to that extent overstated. The position is the same whether the schedules are supplied with the claim or in response to enquiries.

If expenditure does not relate to the venture, well, or licence detailed, or if expenditure is mis- described the expenditure should be disallowed. If it has been allowed before the error is discovered a notice of variation under OTA75\SCH5\PARA9 (see OT04750) should be issued within three years from the date of the decision. Where, as in the case of the allocation of costs to the wrong cost centre, one claim is overstated, it is, of course, open to the participator to submit another claim giving the correct details, subject to the usual time limits.

Whether or not the expenditure would have been allowed if properly described and included in the claim is immaterial.

It follows that there will be no netting off of “underclaims” and “overclaims”.

Whether or not overstated expenditure is disallowed, if there has been an incorrect statement or declaration in connection with the claim by reason of fraud or negligence, the Board has the right to seek penalties under FA2007\SCH27 (see OT18750).