A Guide to Hydrocarbon Licences in Denmark, Exploration and ...

Licence (cf. section 35 of the Subsoil Act) in order to cover the general third party
liability.
According to section 30, subsection (2), of the Licence, the DEA may require that
additional insurance coverage must be taken out in case the DEA does not
consider the insurance coverage to be sufficiently extensive.
The insurance coverage must provide a reasonable coverage, based on the risks
involved in the operation of the enterprise and the premiums to be paid.
2.3.3 Insurance Declaration
Pursuant to section 30 of the Model Licence the DEA has introduced an Operators
Insurance Declaration form. With this form the operator declares to have received
insurance certificates or declaration of self insurance from all co-licensees
(including the operators own certificate) and that the insurances satisfy a number
of conditions.
The form must be submitted to the DEA not later than 1 March of the covered
year. If it is not possible to submit the form by this date, the DEA must be informed
in due time, and a new arrangement made.
The Operators Insurance Declaration form is attached to this guide and is
available also as an Excel-file.
2.4 Reimbursement of Public Expenditure
2.4.1 Introduction
Licensees must reimburse the DEA for the incurred expenses in connection with
the administration of the hydrocarbon activities of the licensees, according to the
Subsoil Act, section 25. Similar provisions are included in the Offshore Safety Act,
ref. section 65 of the act.
The specific rules are listed in Order No. 1032 of 23 August 2007 on
Reimbursement of Expenses related to the Authorities’ Administration in
connection with Hydrocarbon Activities, etc.
2.4.2 Procedure
Reimbursement of the DEA expenditure for administration is based on the
following procedure:
The licensees encompassed by the Subsoil Act shall reimburse public authority
expenditure for administrative case handling, including supervision.
Public authority expenditure for administrative case handling are calculated on the
basis of records enumerating the number of hours on performing each individual
task.
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