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

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Preface The purpose of this guide is to give an overview of the most important regulations and procedures to be followed when carrying out hydrocarbon activities in Denmark. The guide has been compiled mainly with activities in the traditional exploration areas in the North Sea in mind. The guide does not include guidance on exploration projects onshore where regulations in many ways are different and other authorities are involved. The Danish Energy Agency hopes that the guide will provide a better understanding of the Danish oil and gas sector. It is our hope that the guide will be useful not only for present licensees, but also for companies interested in starting up oil and gas activities in Denmark. In case the contents of the guide should give rise to any questions, please do not hesitate to contact us for further information. The guide is only available in this pdf version and not as a printed publication. 3
1. Government Administration in the Oil and Gas Sector 1.1 The Danish Energy Agency (DEA) The Danish Energy Agency is a government body under the Ministry of Climate and Energy and was established by law in 1976. The DEA assists the Minister for Climate and Energy and other government authorities in energy matters. It is the responsibility of the DEA to follow and evaluate the Danish and international progress in the fields of energy production, supply and research. The DEA administers energy legislation for power and heating supply, renewable energy, and exploration for and production of oil and natural gas. Matters relating to exploration for and production of oil and gas are dealt with by the Energy Resources division. 1.1.1 The Functions of the DEA in the Oil and Gas Sector The DEA is authorised to exercise all the regulations and the administration of hydrocarbon activities on the Danish continental shelf. However, decisions made by the DEA can be referred to the Minister for Climate and Energy. The DEA administers and supervises exploration for and production of oil and gas, salt production, geothermal energy and storage according to the Subsoil Act. In addition, the DEA administers a number of other Acts: the Offshore Safety Act, the Pipelines Act and the Act on the Continental Shelf. These Acts deal with major hazards as well as occupational health and safety in connection with offshore oil and gas activities and the utilisation of onshore pipelines from the oil and gas fields in the North Sea. The DEA also draws up proposals for rules and regulations within this area. Health and safety in onshore activities are covered by the Working 4
Page 1 and 2: A Guide to Hydrocarbon Licences in
Page 3: Colophon Title: Guide to Hydrocarbo
Page 7 and 8: Contact Persons for Specific Activi
Page 9 and 10: Naturstyrelsen (Nature Agency) Webs
Page 11 and 12: 2. General Regulations, etc., for O
Page 13 and 14: • National Environmental Research
Page 15 and 16: 2.4.3 Collection of the Reimburseme
Page 17 and 18: 4. Drilling Operations 4.1 Explorat
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5. Measures taken pursuant to this
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Act on Safety, etc. for Offshore In
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Part II General Duties Distribution
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13. The employees shall participate
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i) Identification of the risks that
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Part IV Construction, Arrangement,
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combating measures, cf. section 59
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employees. The Minister for Transpo
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65. The licensee, operator, operati
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iv) the use of justifiable working
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i The Act contains provisions imple
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transport through the pipeline, DON
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amount for separation that is equal
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_______________________ Act No. 142
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Unofficial translation of Danish Ex
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Unofficial translation of Danish Ex
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Penalties, etc. 5.- (1) Any infring
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II. Geochemical surveys 1. Reports:
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6. For all production tests carried
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Executive Order No. 684 of 23 June
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5.- (1) After having consulted the
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Unofficial translation. In case of
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4 Financial statements when a compa
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submitted shall be identical to the
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Co-licensee disclosure form for dev
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UNOFFICIAL TRANSLATION L I C E N C
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Page Sect. 27 Connection to pipelin
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Section 1 (1) For the purpose of th
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Section 4 (1) The Licensee shall ca
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(2) The Danish Energy Authority may
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Section 18 (1) The Licence is grant
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c) Each year submit a summary of th
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Section 24 (1) Any equipment, proce
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(3) At the end of each calendar yea
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(4) If production has been initiate
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the submission of a winding-up plan
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Annex 1 to Licence No. x/xx for Exp
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UNOFFICIAL TRANSLATION L I C E N C
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Sect. 31 Liability for damages ....
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Section 1 (1) For the purpose of th
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(2) Where the Licensee discovers an
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(Not used) Section 8-12 Section 13
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year shall correspond to the calend
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employed by or performing duties fo
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(3) At the end of each calendar yea
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temporarily non-viable commercially
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equire the Licensee to remove all o
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Annex 1 to Licence No. x/xx for Exp
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• DRAFT MODEL Danish Energy Agenc
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ii 3.14 Rentals, Taxes, Fees and Ch
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iv 9. ASSIGNMENTS AND ENCUMBRANCES
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This Agreement is made as of the da
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2. INTERESTS OF THE PARTIES 2.1 Per
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(g) the direction and control of ac
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(f) promptly notify the Non-Operato
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(iv) copies of evaluations and repo
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insurance. The Operator shall, in r
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3.14 Rentals, Taxes, Fees and Charg
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3.17.3 Selection of a New Operator
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(ii) the net funds (to be defined i
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4.3.2 Special Meetings The Operatin
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4.7 Voting Procedure 4.7.1 Voting I
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Committee of the application and th
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ment, storage and processing, and o
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5.9 Authorisation to Proceed 5.10 A
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7. SOLE RISK OPERATIONS AND DEVELOP
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7.4.2 Use of Joint Risk Property So
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7.5 Consequences 7.5.1 Access to Da
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7.6.3 Development by Less than All
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Non-participating Parties shall be
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9. ASSIGNMENTS AND ENCUMBRANCES 9.1
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9.2 Option to Purchase 9.2.1 Bona F
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10. WITHDRAWAL 10.1 Rights 10.1.1 N
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therefor as is acceptable to all su
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11.2 Remedy of Default The Defaulti
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and the Defaulting Party shall prom
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12.2.5 Mutual Indemnification Witho
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12.5 Force Majeure The obligations
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13. DEFINITIONS AND INTERPRETATIONS
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(dd) "Subsoil Act" means the Consol
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DRAFT MODEL February 2009 LICENCE X
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Licence ……. - Accounting Proced
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Licence ….. - Accounting Procedur
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Unofficial translation. In case of
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ing a fisheries expert if the vesse
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Information sheet, offshore, amende
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Information sheet, offshore, amende
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Danish Energy Agency 2 Guidelines f
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Danish Energy Agency 10 Guidelines
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