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by 10km). Onshore does not use a grid system, because the blocks
are not regular and are much smaller than offshore. In addition to
the regulatory regime, onshore operations must also adhere to the
usual rules of Scots land law in Scotland and English land law in
England and Wales (as exemplified by Bocardo v Star Energy,
where, despite having obtained the licence to get petroleum,
nominal damages were awarded against an oil company for its
failure to obtain landowner consent to drill diagonally through
strata beneath the land). Each of crude oil, gas and shale gas fall
under the definition of „petroleum‟ in the Petroleum Act 1998 and
are therefore governed by the same regime.
Which entities may perform exploration and production
activities!
Describe any registration requirements. What criteria
and procedures apply in selecting such entities? Companies may
only perform exploration and production activities in the UK under
a licence. Applications for a licence are made (either individually
or through a joint venture) to DECC as part of a formal annual
licensing round. The licensing round is advertised online and in the
European Journal. All applications are made in a prescribed form
and companies applying for a licence must be registered in the
UK, either as a company or as a branch of a foreign company.
DECC considers each application on a case-by-case basis and will
require a company to demonstrate its financial worthiness (that it
is able to finance its share of the relevant work programme for the
licence in question). With regard to technical capability, non-
operators are not required to demonstrate a high level of technical
expertise. Companies wishing to be appointed as operator are
considered against additional criteria including previous
experience, technical expertise and environmental awareness.

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