Statutory Instrument 1997 No. 2427

The Gas Act 1986 (Exemption) Order 1997

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© Crown Copyright 1997

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"the UK-Ireland pipe-line" means the pipe-line between Moffat in Scotland and Loughshinny in the Republic of Ireland referred to in the Agreement of 30th April 1993 between the Government of the United Kingdom of Great Britain and Northern Ireland and the Government of the Republic of Ireland relating to the transmission of natural gas by pipeline between the United Kingdom of Great Britain and Northern Ireland and the Republic of Ireland[2].

Scope of exemption
     3.  - (1) Subject to paragraph (2) below, Premier Transco is hereby granted exemption from section 5(1)(a) of the Gas Act 1986 in respect of the conveyance of gas, in pursuance of arrangements made by the relevant transporter, from a relevant offtake point to the Stranraer pipe-line system.

    (2) The exemption provided for in paragraph (1) above ("the exemption") is subject to the conditions set out in articles 4 to 6 below.

Conditions of exemption
     4. Premier Transco shall comply with any direction given by the Director General of Gas Supply ("the Director") to furnish him, in such manner and in such form as he may reasonably require, with such information relating to the conveyance of gas in pursuance of the exemption as he may reasonably require or as may be necessary for the purpose of enabling him to perform the functions assigned to him by or under the Gas Act 1986:

Provided that this condition shall not require Premier Transco to produce any documents or give any information which it could not be compelled to produce or give in evidence in civil proceedings before the court.

     5.  - (1) Premier Transco shall - 

(a) notify the Secretary of State and the Director as soon as reasonably practicable of any proposal of which it is aware which is likely to affect - 


(i) the amount of gas that it is capable of conveying in pursuance of the exemption; or

(ii) its ability to meet the relevant gas security standard;



(b) furnish the Secretary of State and the Director, by 1st December 1997, with a statement of its ability or otherwise to meet the relevant gas security standard in respect of the period beginning on 3rd November 1997 and ending on 30th September 1998; and

(c) furnish the Secretary of State and the Director, by 30th June in each year after 1997, with a statement of its ability or otherwise to meet the relevant gas security standard in respect of the period of 12 months beginning on 1st October in each such year.

    (2) In paragraph (1) above, "the relevant gas security standard" means the gas security standard that would, at the time the proposal is notified (or, as the case may be, the statement is furnished), be applicable in relation to the conveyance of gas in pursuance of the exemption by virtue of paragraph (2) of condition 13 of the Standard Conditions of Public Gas Transporters' Licences (as modified to March 1997)[3] if - 

(a) Premier Transco were the licensee;

(b) the licensee's pipe-line system referred to in that condition constituted the pipes through which Premier Transco conveyed gas in pursuance of the exemption;

(c) in paragraph (1) of that condition, the words "subject to section 9(1) and (2) of the Act" were omitted; and

(d) in paragraph (4) of that condition, for the words "the operator of a pipe-line or pipe-line system to which it conveys gas" there were substituted the words "the relevant transporter".

     6. Premier Transco shall comply with the provisions of condition 2 of the Standard Conditions of Public Gas Transporters' Licences (as modified to March 1997) as if it were the licensee and as if - 

(a) the transportation business referred to in that condition were Premier Transco's activities connected with the conveyance of gas in pursuance of the exemption;

(b) paragraphs (2)(a)(iv), (7) and (8) of that condition were omitted; and

(c) the initial period referred to in that condition commenced on 3rd November 1997.

John Battle,
Minister for Science, Energy and Industry, Department of Trade and Industry

8th October 1997

[2] Treaty Series No. 73 (1993), Cm 2377.back

[3] The Standard Conditions of Public Gas Transporters' Licences (as modified to March 1997) are published by the Stationery Office (ISBN 0-11-515432-9).back