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any licence assignment. The conditions of a licence (known as
„model clauses‟) are set out in secondary legislation, which for
current offshore production licences is the Petroleum Licensing
(Production) (Seaward Areas) Regulations 2008. The model
clauses set out in detail the conditions for the licence, including
term, licence surrender, record-keeping, working obligations,
appointment of operator, measurements and pollution. In awarding
licences, DECC must also comply with the Hydrocarbons
Licensing Directive Regulations 1995, which set out additional
rules EU member states have to follow when issuing petroleum
licences. In addition to the regulatory requirements, there are a
number of voluntary industry-based codes of practice to which
many UKCS licensees have signed up to. ICOP is intended to
facilitate access by a third party to oil infrastructure in the UKCS
such that the parties involved can agree fair and reasonable terms.
The fallow acreage initiative places pressure on licensees to
deliver activity on old licences where companies have not been
active for some time or relinquish licences in order for the acreage
to be offered to other companies. With respect to transfers of
licences, the Commercial Code of Practice establishes an agreed
framework to minimise resources spent on negotiations and
promote positive commercial behaviour. There are no current
legislative provisions that allow for expropriation of a licensee‟s
interest; however, as the terms of a licence may be unilaterally
altered by the government, any change in the law may allow for
expropriation of a licensee‟s interest.

Identify and describe the government regulatory and
oversight bodies principally responsible for regulating oil
activities.
DECC is the government authority primarily responsible
for the development and regulation of the oil and gas industry in
the UK. DECC was established in October 2008 following a
transfer of powers from the Department of Business Enterprise and

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