Dear Oil and Gas Authority,
The required licence payments for PEDL147 granted from 1/10 2004 are difficult to understand and appear to be incorrect when the payments due under its licence and legislation are checked out.
The licence was granted effective 1/10/04.
In 2017/18 this licence was on its 13/14th anniversary so paying £500/600 per square kilometre for of a licence area of at least 85 square kilometres.
I submitted an foir in 2017 answered in 2018 that a retention area plan was agreed with the operator which included all the PEDL147 land.
So none of the of the PEDL147 area has been surrendered.
Please will the OGA explain why the PEDL147 licence fee has changed so remarkably: From £26,700 in 2015 to £35,600 in 2016 and £8,900 in 2017 and 2018.
Please advise to which regulation or statute you are relying on to undertake the variation of licence fees charged to PEDL147.-
Dear Mr Dean,
Thank you for your query, which was originally submitted as a Freedom of
Information request on 26 March 2020.
As your query did not ask for information actually held by the OGA, rather
it asked for an explanation of the Licence Rental Fees for a specific PEDL
(in this case PEDL147), we have dealt with this request as ordinary
The OGA can confirm that the Licence Rental fees for PEDL147 for the
period of 2015 to 2018 as quoted in your recent correspondence are
Since 2011, the licence area for PEDL147 has been 89 km^2.
Licence rental fees can escalate as set out in the licence – you may find
the original terms in the licence document:
o 1^st October 2015 rental was £300/km^2 or £26,700
o 1^st October 2016 rental was £400/km^2 or £35,600
On 28^th June 2016, PEDL147 was converted to 2014 Model Clauses, and a new
Schedule 2 was agreed with the provision for Retention Areas.
On 15^th November 2016 a Retention Area was agreed for PEDL147, and the
rentals as reflected by Schedule 2 in the Deed of Variation (extract below
for reference) -
(2) During the Licence’s Production Period, for that part of the
Licensed Area that is comprised either within a Retention Area or a
Development Area at the date when an Annual Rental falls due, the Annual
Rental shall be calculated at a rate either (a) of £100 or (b) the rate
specified at paragraph (1) above, whichever is the lower; multiplied by
the area factor.
o 1^st October 2017 rental was £100/km^2 or £8,900
o 1^st October 2018 rental was £100/km^2 or £8,900
I hope that this is helpful,
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