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Energy Bill

I thank all noble Lords who have spoken in this short debate. Let me deal first with what Clause 20 attempts to do. I will then look at the amendment and do my best to answer my noble friend's questions. Clause 20 allows licences for carbon dioxide storage and related activities to be granted on such terms and conditions as the licensing authority—that is, the Secretary of State or Scottish Ministers, as appropriate—or an authority to which the licensing function is transferred, sees fit. The power will allow case-specific requirements to be included in licences in relation to each carbon dioxide store. The clause also provides an inexhaustible list of examples of the sorts of conditions that licences may contain, including financial security provisions, the right for the licensing authority to modify the licence and provisions about closure of the storage site and termination of the licence. In addition, we expect that all licences will include provisions relating to monitoring and remediation, reporting, record-keeping, notification obligations and the requirement to have a valid lease from the Crown Estate for the relevant site. This general power in Clause 20 is in turn subject to regulations that may be made under Clause 21, which may prescribe the terms and conditions that must be contained in licences. In circumstances in which the licensing authority is other than the Secretary of State or the Scottish Ministers, regulations made under Clause 21 will help to ensure that provisions that the Secretary of State or the Scottish Ministers consider to be essential will be included in all licences. Amendment No. 8 would insert a provision requiring the licensing authority to consult the licence holder prior to making any modifications. However, the licensing authority—the noble Baroness made this point—would retain the power to modify the licence without the operator's consent, provided that the operator had been duly consulted. The noble Baroness will not be surprised to hear me say that we believe that the clause already allows for such consultation to be carried out, as it gives the licensing authority power to modify a licence ““in specified circumstances””. Such circumstances, which would be specified in the licence, could include a requirement to consult the licence holder prior to introducing any modifications to the licence. Indeed, our intention is to consult the licence holders in any event, in keeping with the current practices in the oil and gas regulatory regime. So far, I have not disappointed the noble Baroness; now I am going to surprise her. In the interest of regulatory certainty and to reassure the future operators of carbon dioxide stores, we recognise the benefit of making the intention explicit in the Bill. I hope that finds favour with all sides of the Committee. If the noble Baroness would be good enough to withdraw the amendment, we will consider it further and respond at the next stage of the Bill. Before I sit down, I must do my best to answer the preliminary questions asked by my noble friend Lord Woolmer. He may not be entirely satisfied by what I have to say, but this is just a starting point. How long would a licence last? It is obvious to say that it would be decided on a case-by-case basis. While carbon is injected, which I am advised may be for 20 to 25 years, depending on the size of the store, the licence holder will be in charge of the store. That licence holder will also be in charge for a number of years after that, to ensure that the store is safe and secure, and the licence will then be terminated. On that basis, the licence would last for anything between 30 and 35 years in that instance, which certainly for all of us here is a long time; I agree with my noble friend. My noble friend asked what happens with ongoing monitoring and maintenance of the store after it is effectively closed. The licence would stay in force until the Secretary of State is satisfied that the store is both safe and secure. After the licence has been terminated—which is the expression that is used—the responsibility for the store will pass to the state, and monitoring will continue for as long as is necessary and at such frequency as is necessary to ensure that the store is safe. Those are the kind of parameters, by way of example, that I can give my noble friend at this stage.