Petroleum Act [The Act]

Original Language Title: Lov om petroleumsvirksomhet [petroleumsloven]

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Petroleum Act [the Act].


Date LOV-1996-11-29-72


Ministry MPE

Edited

LOV-2015-06-19-65 from 10/01/2015


Published Dept. In 1996 Ranked. 22


Commencement 01/07/1997

Changes


Promulgated


Short Title
Petroleum Act - petrl.

Chapter Overview:

Chapter 1. Introductory provisions (§§ 1-1 - 1-6)
Chapter 2. Exploration license (§§ 2-1 - 2-2)
Chapter 3. Production license etc. (§§ 3- 1 - 3-15)
Chapter 4. Production etc. of petroleum (§§ 4-1 - 4-13)
Chapter 5. Cessation of petroleum activities (§§ 5-1 - 5-6)
Chapter 6 Registration and mortgaging (§§ 6-1 - 6-4)
Chapter 7 Liability for pollution damage (§§ 7-1 - 7-8)
Chapter 8. Special rules on compensation to Norwegian fishermen (§§ 8-1 - 8-6)
Chapter 9. Special requirements for security (§§ 9-1 - 9-7)
Chapter 10. General provisions (§§ 10-1 - 10-18 )
Chapter 11 management of the state's direct financial interest (§§ 11-1 - 11-10)
Chapter 12. Commencement and amendment of laws (§§ 12.1 - 12.2)

See previous law March 22, 1985 no. 11 - Cf. Laws 21 June 1963 no. 12, 13 June 1975. 35 (petroleum taxation), 17 Dec 1976. 91, June 24, 1994 no. 39 || |
Chapter 1. Introductory provisions

§ 1-1. The right to subsea petroleum deposits and resource management The Norwegian State has the proprietary right to subsea petroleum deposits and the exclusive right to resource management.

§ 1-2. Resource management Resource management by the King in accordance with the provisions of this law and the decisions made by Parliament.
The resources will be managed in a long-term perspective for the benefit of the Norwegian society. This includes resource providing land revenues and help to ensure the welfare, employment and a better environment and to strengthen Norwegian business and industrial development while taking due regard to regional policy considerations and other activities.

§ 1-3. Requirements for authorization etc. None other than the State may conduct petroleum activities without the licenses, approvals and consents required pursuant to this Act. Provisions otherwise in the law and regulations issued pursuant thereto, apply to such activities as appropriate.

§ 1-4. Scope The Act applies to petroleum activities associated with subsea petroleum deposits under Norwegian jurisdiction. The law also applies to petroleum activities inside and outside the kingdom and the Norwegian continental shelf as required by international law or agreements with foreign states.
Act applies utilization of petroleum that takes place on Norwegian land territory or seabed subject to private property only when such use is necessary to or constitutes an integral part of production or transportation of petroleum.
When a pipeline in Norwegian internal waters, in Norwegian territorial waters or continental shelf starts outside Norwegian jurisdiction, the King, to the extent required by law, determine which provisions of this Act shall apply to such pipeline with accessories.
For liability for pollution damage under Chapter 7 and damage caused by pollution and waste pursuant to Chapter 8, applies the special rules applicable in that country.
Act does not apply to Svalbard, including its internal waters and territorial sea.
The King may issue further regulations to supplement or delimit the provisions of this section, including the utilization is considered necessary to or constitutes an integral part of production or transportation of petroleum as mentioned in the second paragraph. The King may in cases of doubt determine whether a facility or activity covered by the law or not.

§ 1-5. Other Norwegian law other Norwegian law than the law, including provisions for permits, consents or approvals required by law, is also applicable to petroleum activities. This applies unless otherwise provided by law, a decision by the King, international law or agreements with foreign states.
Other Norwegian law does not apply to other mobile units under foreign flags than those that are permanently located, unless otherwise provided by law or by determination by the King.

§ 1-6. Definitions For purposes of this Act:

A)
petroleum, all liquid and gaseous hydrocarbons existing in their natural state in the subsoil, as well as other substances produced in association with such hydrocarbons.

B)

Petroleum deposit, an accumulation of petroleum in a geological unit, limited by rock characteristics by structural or stratigraphic boundaries, contact surfaces between petroleum and water in the formation, or a combination thereof, so that the petroleum comprised everywhere is in pressure communication through liquid or gas. The Ministry decides in cases of doubt what should be considered to be a petroleum deposit.

C)
petroleum, all activities associated with subsea petroleum deposits, including exploration, drilling, production, transportation, utilization and decommissioning, including planning of such activities, but not the transport of petroleum in bulk by ship.

D)
device, installation, construction and other equipment for petroleum activities, however not supply and support vessels or ships that transport petroleum in bulk. Facility also comprises pipeline and cable unless otherwise provided.

E)
survey, geological, petrophysical, geophysical, geochemical and geotechnical activities, including shallow drilling, as well as the operation and use of the facility to the extent it is applied to the survey.

F)
exploration, drilling of exploration and appraisal wells, as well as operation and use of the facility to the extent it is used for exploration drilling.

G)
extraction, production of petroleum, including drilling of production wells, injection, extraction, processing and storage of petroleum for transportation and shipment of petroleum for transport by ship, and the construction, location, operation and use of device for recovery.

H)
transportation, shipment of petroleum pipeline and the construction, location, operation and use of the device for transport.

I)
exploitation, refrigeration to liquefy gas, refining and petrochemical activities, generation and transmission of electric power and other use of produced petroleum, storage of petroleum and the construction, location, operation and use of the device for utilization .

J)
licensee, person or entity, or more such persons under this Act or previous legislation holding a license for exploration, production, transportation or utilization. If a license has been granted to several such persons jointly, the term licensee may comprise the licenses collectively and the individual participant.

K)
operator, who, on behalf of the licensee the day to day management of the petroleum industry.

L)
continental shelf, the seabed and subsoil of the submarine areas that extend beyond the Norwegian territorial sea throughout the natural prolongation of its land territory to the outer edge of the continental margin, but not less than 200 nautical mil from the baselines from which the territorial sea width is measured from , not beyond the median line in relation to another state unless otherwise stipulated by the international law of continental shelf beyond 200 nautical mil from baselines or agreement with such State.

M)
upstream pipeline network, any pipeline or any pipeline network operated or constructed as part of an oil or gas production project, or used to convey natural gas from one or more production plants of this type, to a treatment, one terminal or a final landing terminal. The parts of such networks and facilities which are used for local production operations at an instance where the natural gas is produced are not as upstream pipeline networks.

N)
Natural gas undertakings, any natural or legal person carrying out at least one of the following functions: generation, transmission, distribution, supply, purchase or storage of natural gas, including liquefied natural gas (LNG), which is responsible for the commercial and technical tasks or maintenance related to these functions, with the exception of end customers

O)
eligible customers, all customers domiciled in a Member State, except household customers. From 1 July 2007 all customers.

Chapter 2. Exploration license

§ 2-1. Granting of exploration license etc. After opening an area according to § 3-1 Ministry may assign legal person license to explore for petroleum in limited areas of the seabed or in its subsoil. Exploration license may also be granted to natural persons domiciled in a Member State.
Exploration license to explore for petroleum. It does not give exclusive right to exploration in the areas mentioned in the permit nor rights by granting a production license. It may be awarded licenses to others, or be authorized pursuant to § 4-3 in areas covered by exploration permits, without any liability or tax paid may be recovered.

Exploration license is granted for three calendar years unless it is determined a different duration.
Ministry may authorize a licensee holding an exploration license to other investigations.
King may issue regulations on the content of an application for an exploration license, the scope of such license, the conditions for the license and the fee to be paid.

§ 2-2. The area for an exploration license exploration license shall indicate the area it covers. The exploration license does not entitle exploration in areas covered by the licenses, unless the Ministry decides otherwise pursuant to § 3-11.

Chapter 3. Production license etc.

§ 3-1. Opening new areas Prior to the opening of new areas for the award of licenses, it will take place a balancing of the various interests that prevail in the area concerned. Under this regard shall be assessed by the commercial and environmental consequences of petroleum operations and possible risks of pollution and the economic and social effects that petroleum activities can have.
The opening of new areas to be submitted to local authorities and key interest groups that are likely to have a particular interest in the case.
Shall also be made by public announcement made known which areas there are plans to open for petroleum activities and the nature and extent of the activity in question. Interested parties shall be given at least three months to comment.
Ministry decides on the procedure to be followed in each case.

§ 3-2. The division of the continental shelf maritime areas within the continental shelf are divided into blocks of 15 latitude minutes and 20 minutes of longitude, unless adjacent land areas bordering other states' continental shelves or other circumstances warrant otherwise.

§ 3-3. Production license King in Council may, on certain conditions, grant production permits. A production license may comprise one or more blocks or parts of blocks.
Production license may be granted legal person constituted in accordance with Norwegian law and is registered in the Company Register, unless otherwise provided by international agreements. Production license may also be granted to natural persons domiciled in a Member State.
A license grants exclusive rights to survey, exploration and extraction of petroleum in areas covered by the permit. The licensee becomes the owner of the petroleum produced.
King may make it a condition for granting a production license that the licensees shall enter into agreements with specified contents with one another.

§ 3-4. Agreements with a view to applying for a production license agreements on cooperation signed with a view to applying for a production license shall be submitted to the Ministry. The Ministry may require changes to such agreements.

§ 3-5. Announcement and awarding Before awarding a production license, the Ministry shall rule, announce the area that can be applied for a production license.
Announcement shall be published in the Norwegian Gazette and the Official Journal. The notice shall set a deadline which shall not be shorter than 90 days and shall contain the information prescribed by the ministry.
Award of production licenses will be based on factual and objective criteria and the requirements and conditions specified in the notice. King is not obliged to grant license on the basis of the applications received.
King may grant production licenses without announcement. Before such allocation, the licensees of production licenses in adjacent areas given the opportunity to apply for the allocation of the relevant area. It shall be announced in the Norwegian Gazette and the Official Journal which blocks concerned.
Further regulations about what an application for production license, and on payment of the processing fee.

§ 3-6. State participation The King may decide that the State will participate in the petroleum activities under this Act.

§ 3-7. Operator When granting a production license, the Ministry appoint or approve an operator.
Change of operator must be approved by the Ministry. When there are special reasons Ministry may undertake the change of operator.

If the Ministry appoints or approves an operator who is not a licensee under the license, the provisions on his obligations laid down in or pursuant to this Act shall apply mutatis mutandis to the operator unless otherwise expressly provided. An operator who is not a licensee under the license shall not be responsible under § 5-4 second paragraph.
This provision shall apply mutatis mutandis in relation to the special permit for construction and operation of facilities under § 4-3.

§ 3-8. Work obligation The King may order the licensee a specific work obligation for the area by the production license.

§ 3-9. Duration of a production license, etc. license is awarded for up to 10 years. If the production license is granted for a shorter period, the Ministry may subsequently extend the license within the 10 years.
Licensee who has fulfilled the work commitment under § 3-8 and the conditions otherwise applicable to the individual license, may require that the license be extended beyond the period stipulated under the first paragraph. The extension period shall be determined in the individual license and will generally be up to 30 years, but may in special cases be up to 50 years.
The King shall at allotment determine how much of the area of ​​the production license the licensee may demand an extension for pursuant to subsection. Ministry may on application consent to the licensee keeping more than the area determined by the allocation under this provision.
The King may issue regulations relating to the relinquished areas pursuant to subsection shall be delineated.
Ministry may on application from a licensee when there are special reasons extend the license beyond the extension of the second paragraph. Applications for extension must be received no later than five years before the license's expiry, unless the ministry agrees or decides otherwise. The Ministry determines the conditions for that particular extension.

§ 3-10. Dividing the area of ​​a production license Ministry may on application from a licensee approve that part of the area of ​​the production license is partitioned off and issue a separate production license for the area partitioned off.
The King may issue regulations relating to the split-off area must be demarcated.

§ 3-11. Right for others to exploration in special cases the Ministry may give to someone other than the licensee to undertake exploration in an area covered by a production license. Ministry determines which investigations can be undertaken and the duration of investigations.

§ 3-12. Right for others to place facilities etc. The licensee can not oppose the laying of pipelines, cables or wires of various kinds or placing of other facilities on, in or over the area covered by the license. Such devices must not cause unreasonable inconvenience to the licensee.
Provision in the first paragraph applies correspondingly to necessary track and ground surveys prior to such placement. For basis measurement applies law on real estate registration.

§ 3-13. Other natural resources other than petroleum resources etc. A production license does not preclude that other than the licensee of rights to undertake exploration and extraction of natural resources other than petroleum resources, it does not cause unreasonable inconvenience to the petroleum industry as a licensee pursuant to the production license. The same applies to scientific research.
If it is made findings of other natural resources in an area covered by a production license, and continued activity can not take place without causing unreasonable inconvenience to the petroleum industry as a licensee pursuant to the production license, the King decides which of the activities to be postponed , to what extent. It should be the decision taking into account the nature of the discovery is made, the investments, what stage the business has reached, the duration and extent and its economic and social impact etc. in relation to the activities conducted pursuant to the license.
Whoever gets postponed its activities may require the permit extended for a period corresponding to the delay. If the suspension only applies to a limited part of the activities that can be performed in accordance with the license, the Ministry may stipulate a shorter period of extension, decide that the extension should not be granted or that extension shall only be granted for part of the area covered by the permit.

If the suspension means that the work obligation in accordance with § 3-8, can not be accomplished within the stipulated deadline shall be extended to the extent necessary.
If petroleum activities are postponed, the area fee for the period shall be waived or reduced according to the ministry's discretion. Fee paid in advance shall not be refunded.
If deferral under subsection are expected to be particularly prolonged relevant license may instead be revoked.
King may decide that the party authorized to maintain his activities shall wholly or partly reimburse the costs incurred and a reasonable extent, cover other losses the like to postpone or curtail their activities.

§ 3-14. Returning areas licensee may during the period mentioned in § 3-9 first paragraph relinquish parts of the area by the production license with 3 months notice. Then the return of parts of the site happen at the end of each calendar year, provided notice of such relinquishment is given at least 3 months in advance. The Ministry may require the obligations stipulated by the license and the conditions to be fulfilled before redelivery.
The King may issue regulations relating to the relinquished areas should be delineated.

§ 3-15. Abandonment of a production license The licensee may during the period mentioned in § 3-9 first paragraph indicate the license in its entirety, with 3 months notice. Then abandonment happen at the end of each calendar year, provided notice of abandonment is at least 3 months in advance. The Ministry may require the obligations stipulated by the license and the conditions to be fulfilled prior to surrender.

Chapter 4. Production etc. of petroleum

§ 4-1. Prudent production Production of petroleum shall be conducted in such a way that most of the petroleum in place in each individual petroleum deposit, or several petroleum deposits together, are produced. Recovery can take place in accordance with prudent technical and sound economic principles and so that waste of petroleum or reservoir energy is avoided. To achieve this, the licensee shall continuously evaluate production strategy and technical solutions and take appropriate action.

§ 4-2. The plan for development and operation of petroleum deposits licensee decides to develop a petroleum deposit, the licensee shall submit to the Ministry for approval a plan for development and operation of the petroleum deposit.
Plan must include a description of the economic, resource related, technical, safety, commercial and environmental aspects as well as information about how a device will be disposed of when the petroleum industry. The plan shall also include information on facilities for transportation or utilization comprised of § 4-3. In case a device should be placed in the territory, the plan shall also provide information on which permits etc. have been submitted according to other applicable laws.
Ministry may, when there are special reasons, require the licensee to produce a detailed report on the environmental effects, possible risks of pollution and impacts on other affected activities of a larger area.
Development is planned in two or more stages, the plan shall include, wherever possible the overall development. Ministry may limit the approval to apply to individual stages.
Substantial contractual obligations must not be undertaken, nor construction work be started before the plan for development and operation is approved, unless consent from the Ministry.
Ministry may on application from a licensee waive the requirement to plan for development and operation.
Ministry shall be notified of and approve significant deviation or alteration of the conditions for submitted or approved plan and significant changes facilties. The Ministry may require a new or amended plan for approval.

§ 4-3. Special permit for construction and operation of facilities Ministry may on specified conditions grant special permission for construction and operation of the device when the right to install and operate not follow an approved plan for development and operation pursuant to § 4-2.
Shall be submitted an application with the plan of construction, location, operation and use of facilities as mentioned in the first paragraph, including shipment, pipelines, liquefaction facilities, facilities for generation and transmission of electric power and other facilities for transportation or utilization of petroleum .
Permit may be granted for a specified period and may on application from a licensee extended by the Ministry.
The provisions of § 4-2, except for the first and fifth paragraphs, applies correspondingly unless the Ministry decides otherwise.


§ 4-4. Stipulation of production schedule etc. The Ministry shall, prior to or concurrently with approval pursuant to § 4-2 or permission granted under § 4-3, approve the production schedule. It may be determined a production schedule than what follows from § 4-1 if warranted by resource or other significant social considerations.
Burning of petroleum beyond what is necessary for security reasons for normal operation is not permitted unless approved by the Ministry.
After application from the licensee establishes Ministry for specific periods, the quantity which may be produced, injected or cold vented. Applications must be submitted at such times and have such content as determined by the Ministry. The Ministry shall base this stipulation on the production schedule as the development plan is based, unless new information about deposit or other circumstances indicate otherwise.
When obese social considerations make it necessary, the King in Council for a single or several petroleum deposits stipulate other production schedules than those stipulated or approved pursuant to the first and third paragraphs, including order improved recovery. If the decision under this subsection for reducing its production in relation to the production schedule stipulated or approved, the Ministry shall make reasonable efforts to seek to allocate the reduction proportionately between the relevant petroleum deposits. Upon such distribution shall be taken particular care to long-term agreements for the supply of gas and petroleum deposits which in part lies on another state's continental shelf.
After application from the licensee Ministry may approve test production of a petroleum deposit. Duration, amount and other terms for such test production stipulated by the Ministry.
Ministry may require the licensee to produce a report on field related matters, including alternative production and possibly injection, and the total recovery factor for various production schedules.

§ 4-5. Postponement of exploration drilling and development Ministry may decide that exploration drilling or development of a deposit shall be postponed.
Provisions relating to extension of the permit, extension of the deadline for completion of the work commitment and payment of land tax in the grace period in § 3-13 third, fourth and fifth paragraphs, applies correspondingly.

§ 4-6. Preparation, commencement and continuation of recovery ministry may decide that recovery should be prepared, initiated or continued, including the ongoing production shall be continued or increased, if it is economically profitable, necessary to develop an efficient transportation system or to ensure efficient utilization of facilities covered by §§ 4-2 and 4-3. Such decisions may also be made if it is efficient for reservoir engineering reasons, or desirable that two or more petroleum deposits produced in conjunction with each other, or when other significant social considerations.
If the decision under subsection out that recovery be prepared or commenced, the licensee shall be given a period of two years to submit a plan in accordance with § 4-2 and a schedule. If the decision on continuation of production, the licensee shall be given at least 6 months to present a plan for implementation.
If the plan pursuant to subsection is not submitted by the deadline, or the licensee informs the Ministry that this will not prepare, commence or continue production of the deposit, or licensee without reasonable cause and despite orders not take the necessary steps to implement the plan, the Ministry take steps to initiate or continue production, including revoke the license or part of the production license to the extent deemed necessary for efficient recovery. The same applies if the licensee presents a plan that the Ministry does not satisfactory, however, that the licensee shall be given at least 6 months to submit an amended plan.
If the production license is revoked pursuant to the third paragraph, the licensee's costs for exploration and drilling in connection with the deposit in question is covered by the state.

§ 4-7. Joint petroleum activities Stretches a petroleum deposit over several blocks that do not have the same owner, or into another state's continental shelf shall be applied to reach agreement on the most rational coordination of petroleum activities in connection with the petroleum deposit and the distribution of petroleum deposit. The same applies when several petroleum deposits obviously be more efficient with joint petroleum activities.

Agreements on joint exploration shall be communicated to the Ministry. Agreements on joint production, transportation, utilization and cessation of petroleum activities shall be submitted to the Ministry for approval. Failure to achieve consensus on such agreements within a reasonable time, the Ministry may determine how such joint petroleum activities shall be conducted, including the apportionment of the deposit.

§ 4-8. Andres use of facilities Ministry may decide that facilities comprised of §§ 4-2 and 4-3 and owned or used by the licensee may be used by others if considerations of operational efficiency or social interest, and the Ministry considers such use not to unreasonable detriment of the licensee's own needs or for an already secured the right to use. Natural gas undertakings and eligible customers domiciled in a Member State shall nevertheless be entitled to access to upstream pipeline networks, including facilities supplying technical services in connection with such access. Ministry issues rules in regulations and may impose conditions and issue orders for such access in a particular case.
Agreement for use of facilities covered by § 4.2 and § 4.3, shall be submitted to the Ministry for approval unless the Ministry decides otherwise. The Ministry may on approving an agreement in the first sentence or if no agreement is reached about such an agreement within a reasonable time and by an order under subsection fix tariffs and other conditions or later change the terms that have been agreed, approved or determined, to ensure that projects are implemented in the interest of resource management and that the owner of the device with a reasonable profit, among other things, investments and risk.
Ministry may, on similar terms as described in the first paragraph, first sentence, decide that facilities can be used by others in connection with the handling, transport and storage of CO₂. The second paragraph applies correspondingly.

§ 4-9. Extended operator responsibility for the overall operation of the upstream pipeline network etc. The Ministry may appoint someone to have a particular operator responsible for the overall operation of the upstream pipeline network and associated facilities, including the make shift operator when there are special reasons.
The overall operation of the upstream pipeline network and associated facilities shall be in accordance with prudent technical and sound economic principles. Whoever has the special operator responsibilities as outlined in the first paragraph shall be neutral and non-discriminatory.
King may issue further rules on liability mentioned in subsections, including deciding that it should have this responsibility, also make decisions regarding access to upstream pipeline networks, and that this may give orders to the owners and users of upstream pipeline network and associated facilities and licensees of production licenses where petroleum is produced, to adapt their business. Such order shall be given to ensure sustainable resource management and efficient operation of the upstream pipeline network.
King may decide that the Act of 10 February 1967 relating to procedure in administrative cases shall not apply to the person who has a particular operator responsibilities under subsection.

§ 4-10. Area fee, production fee etc. For production licenses license, after expiry of the period stipulated pursuant to § 3-9 first paragraph, first sentence, pay a fee per km² (area fee).
The licensee shall also pay a fee calculated on the basis of the quantity and value of the produced petroleum at each production area's loading point (royalties). For petroleum injected, exchanged or stored before delivery to landing or consumption, calculated production fee on the basis of the quantity and value at the loading point for the original extraction area at the time the petroleum contractually delivered for landing or consumption. Production fees shall not be paid for petroleum produced from deposits where the development is approved or requirements to plan for development and operation terminate after 1 January 1986.
By Licence may require a one-time (cash bonus) and set a fee to be calculated on the basis of production volume (production bonus).
Ministry may with six months notice determining that royalty is wholly or partly be paid in the form of petroleum produced. The ministry may in such cases require the licensee shall ensure that such petroleum being transported, processed, stored and made available to savers, priority and other terms that are not less favorable than that which applies to the licensee petroleum from the production area. Ministry may with 6 months' notice decide that fee again be paid in cash.

Petroleum that the state is entitled to receive as production tax and the State the right to transport, processing and storage of such petroleum may be transferred to others. Such assignment shall relieve the State of future obligations.
The King may issue regulations on the size of the first, second and third paragraphs mentioned fees and bonuses and the manner of calculation, including provisions relating to the determination of the value that will form the basis for calculation, the measurement of petroleum including for tax purposes and the information shall be submitted on production. The King may determine that the fees referred to in subsections or portion thereof shall be paid or the obligation to pay such fees should be postponed.
Claims for fees with interest and costs is enforceable by execution.

§ 4-11. Landing of petroleum The King decides where and in what way landing of petroleum shall take place.

§ 4-12. Delivery to national requirements The King may decide that the licensee shall deliver its production to cover national needs and provide transportation to Norway. The King may further decide to whom such petroleum shall be delivered.
For the petroleum delivered shall be paid a price which is determined in the same way as the price used as a basis for calculating royalties, plus transportation costs. For the transportation, § 4-10, fourth paragraph accordingly. If there is no agreement on the further terms of delivery, they shall be determined by the Ministry.

§ 4-13. Delivery in case of war, threat of war etc. In case of war, threat of war or other extraordinary crisis, the King may decide that a licensee shall place petroleum at the disposal of Norwegian authorities.
The provisions of § 4-12 second paragraph shall apply mutatis mutandis unless the particular situation indicate otherwise. King determines in such a situation the price is binding.

Chapter 5. Cessation of petroleum activities

§ 5-1. Decommissioning plan The licensee shall submit a decommissioning plan to the Ministry before a permit under § 3-3 or § 4-3 expires or is provided or the use of an installation ceases. The plan should contain proposals for continued production or shutdown of production and disposal of facilities. Such disposal may include further use in the petroleum activities, other uses, complete or partial removal or abandonment. The plan must contain the information and assessments that are considered necessary to make decisions under § 5-3. The Ministry may require further information and evaluations, or require new or amended plan.
Unless the Ministry agrees or decides otherwise, the time to submit a decommissioning plan be less than five years but not later than two years before the use of the facility is expected to terminate. Similarly limit applies when a license issued pursuant to §§ 3-3 and 4-3, provided the license expires before the use of the facility is expected to terminate.
Ministry may waive the requirement to submit a decommissioning plan.
By revocation of a license, the provisions of this section apply correspondingly insofar as appropriate.

§ 5-2. Notification of cessation of use The licensee shall provide the Ministry notice of termination date if the use of a device expected to be terminated before the permit expires.

§ 5-3. Decisions on allocation Ministry shall decide on the disposal and set a deadline for implementation of the decision. In the assessment underlying the decision shall be emphasized to technical, safety, environmental and economic factors and concern for other users of the sea. The Ministry may stipulate specific conditions in connection with the decision.
Licensee and owner is obliged to ensure that decisions on disposal are implemented, unless the Ministry decides otherwise. The obligation to carry out the disposal decision applies even if the allocation decision is made or to be implemented after the expiry of the permit.

If a license or interest in a license is transferred, cf. § 10-12 subsection, the transferor licensee be secondarily liable to the other licensees for the costs of the implementation of decisions regarding disposal. The transferring licensee shall also be secondarily liable to the state if the expenses related to the Ministry's decision on measures cf., Sixth paragraph, are not covered by the licensee or other person responsible. The financial liability of the first and second periods is calculated based on the size of the transferred share and promoted the transferor licensee after tax value of costs incurred in the implementation of the disposal decision. The transferring his obligations consisting in subsequent transfers of share or part of this, however, that the claims should first be directed to the company that recently conferred proportion. The financial responsibility is limited to costs associated with facilities, including wells, which existed at the date of transfer.
If a facility has been transferred pursuant to § 10-12, the licensee and the owner are jointly committed to ensure that decisions on disposal are implemented, unless the Ministry decides otherwise.
If the decision is that the facility will later be used in the petroleum industry or other use, the licensee, owner and user jointly committed to ensure that future decisions on disposal are implemented, unless the Ministry decides otherwise.
If disposal decision is not made within the stipulated deadline, the Ministry may take appropriate action on behalf of the licensee or other person responsible for their risk. Expenditure for this measure is enforceable by execution.
Use of device other than petroleum, total or partial removal or abandonment can not be decided under this Act for a facility onshore or on seabed subject to private property.

§ 5-4. Responsibility Whoever is obliged to implement the allocation decision under § 3.5 is liable for any damage or inconvenience caused willfully or negligently in connection with the disposal of the facility or implementation of the decision otherwise.
If the decision is abandonment, the licensee or owner responsible for any damage or inconvenience caused willfully or negligently in connection with the abandoned facility, unless the Ministry decides otherwise.
If there are more liable under the first or second paragraph shall be jointly and severally liable for financial obligations, unless the Ministry decides otherwise.
By decisions for abandonment may be agreed between the licensees and the owners on the one hand and the state on the other side that future maintenance and responsibilities will be taken over by the state based on an agreed financial compensation.

§ 5-5. Encumbrances If the state requires removal of a facility, shall lapse encumbrances on it. The same applies if the state takes over the facility in accordance with § 5-6, however, so the rights of use established with the consent exists.

§ 5-6. State takeover state has the right to take over the licensee's fixed facility when a license expires, is surrendered or revoked, or when the use of such devices has been terminated permanently.
King decides binding if and to what extent it should be paid for the acquisition.
By takeover of a facility onshore or on seabed subject to private property, paid compensation to the extent required by other applicable rules.
If the state has announced that it will exercise its right to acquire the fixed facilities, the acquisition effect six months after the license has expired, lapsed or otherwise use of the facility has been terminated, unless otherwise agreed or decided by the Ministry other.
By state takeover, the facility and its equipment be in such condition as prudent maintenance of operational functionality dictates. Disputes about this and in the case regarding the compensation to be paid to the state for lack of maintenance, settled by judgment.

Chapter 6 Registration and mortgaging

§ 6-1. Registration permits Ministry shall keep a register of all licenses, Petroleum Register. The Ministry may by regulations provide that register shall also comprise licenses as mentioned in § 4-3.

In the register given every permission own magazine. The Ministry shall keep a journal of the documents to be registered. The Ministry may issue further regulations on how logs and registers shall be arranged and kept, concerning the duty of the licensee for assignment and other changes related to the license and other procedures when registering. This also includes provisions regarding fees that may be required.
Law 7. June 1935 no. 2 on probate Chapters 2 and 3 apply correspondingly in so far as applicable, unless otherwise provided by this Act or regulations issued pursuant thereto.

§ 6-2. Mortgaging of licenses The Ministry may consent to the licensee mortgages entire license or the individual licensee mortgages his share in this as part of the financing of the activities associated with the license. In special cases, the Ministry may allow financing to include activities pursuant to a license than the one pledged.
When consent is granted to mortgaging the first paragraph the Ministry may consent to allow forced sale and forced usage according to Act of 26 June 1992 no. 86 on enforcement could take place without the conditions for the permit change.
Mortgaging according to this section will gain legal protection by registration in the Petroleum Register.

§ 6-3. Pant Court scope etc. By pledging full authorization pursuant to § 6-2 comprises those rights at any time follow from the license as well as the mortgagor's other rights in connection with activities carried out in accordance with the license.
Mortgage does not comprise rights in facilities registered in another register or rights to facilities onshore or on seabed subject to private property.
The lien does not comprise rights in mobile construction machinery which may be pledged by the Mortgage Act § 3-8, or rights in moveable property which may be registered in another register. The rules of the Mortgage Act § 3-4 and § 3-7 apply correspondingly insofar as appropriate.
By pledging of an interest in a permit under § 6-2 comprises mortgage the mortgagor's share of the total assets at any time linked with the license as well as the mortgagor's other rights in connection with activities carried out in accordance with the license.

§ 6-4. Mortgagee's rights, etc. The Ministry shall provide the mortgagee's written notice of revocation or surrender of a license or of an interest in with the information that the mortgage will lapse if forced sale is not requested without undue delay. If forced sale is requested in time, can not be granted a new permit in violation of the mortgagee's rights.
Pant Straight as mentioned in the first paragraph may not be transferred or pledged without the consent of the Ministry. It can not without such consent be subject to distraint, arrest, debt negotiation or included in the mortgagee's estate in bankruptcy.

Chapter 7 Liability for pollution damage

§ 7-1. Definition Pollution damage means loss or damage caused by pollution resulting from the effluence or discharge of petroleum from a facility, including well and costs of reasonable measures to prevent or minimize such damage or such loss and damage or loss of such measures. As pollution damage are also considered damage or loss as a fishing have suffered due to reduced fishing opportunities.
Ships used for stationary drilling considered device. Ships used for the storage of petroleum in connection with the production plant, considered part of the facility. The same applies to ships for transport of petroleum during the time when loading from the facility takes place.

§ 7-2. Scope and Governing Law The provisions of this chapter shall apply to liability for pollution damage from a facility when such damage occurs in this country or within the Continental Shelf or frames Norwegian vessel Norwegian fishing gear or Norwegian facility in adjacent waters. As regards measures to prevent or minimize pollution damage is sufficient that damage may occur in such area.
Provisions of this Chapter applies also to pollution damage from facilities used in petroleum activities under this Act, when damage occurs on land or sea territory belonging State which has acceded Environment Convention of 19 February 1974.
King may, notwithstanding the provisions of this law by agreements with foreign states establish rules on liability for pollution damage caused by petroleum activities under this Act. Such rules however, not restrict the right to compensation under this Act in respect of the claimant under Norwegian jurisdiction.


§ 7-3. The responsible and extent of liability The licensee is liable for pollution damage without regard to fault. The provisions on the liability of licensees apply correspondingly to an operator who is not a licensee when the Ministry the approval of operator status has decreed it.
If several licensees under the license and one of them is the operator, or the Ministry has made a decision under subsection shall claims should first be made to the operator. In case any part of the compensation not covered by the operator at maturity, it shall be covered by the partners in proportion to their share in the permit. If someone fails to cover its share, distributed this proportionately to the other.
If it is proved that an inevitable natural disposal, act of war, public authority or a similar force majeure has significantly contributed to the damage or its scope in conditions that are outside the administrator's control, liability may be reduced as far as is reasonable, particularly under Due to the scale of business, the claimant's situation and insurance opportunities on both sides.
By pollution damage from a facility in an area outside the Norwegian continental shelf is regarded as a licensee who has approval from the competent authority to conduct the activities with which the device is attached.

§ 7-4. Channelling of liability The liability of a licensee for pollution damage can only be invoked under the provisions of this Act.
Liability for pollution damage may be made against:

A)
whoever carried out in agreement with the licensee or his contractors has performed tasks or work in connection with petroleum activities.

B)
anyone who has manufactured or supplied equipment for use in the petroleum industry.

C)
whoever takes steps to prevent or minimize pollution damage, or to save the life or preserve values ​​that have been endangered in connection with petroleum activities, unless the measure is in conflict with prohibitions imposed by public authorities or performed by someone other than a public authority despite the express prohibition by the operator or owner of the values ​​threatened.

D)
whoever is employed by a licensee or by someone mentioned under a, b or c.

If the licensee is ordered to pay compensation for pollution damage, but does not pay within the time judgment stipulates, the injured go tortfeasor to the same extent as the licensee can go tortfeasor recourse against, cf. § 7-5.
Licensee may claim compensation from the party causing pollution damage caused to the right holder to the same extent as the licensee can go tortfeasor recourse against, cf. § 7-5.

§ 7-5. Recourse licensee can not claim recourse for pollution damage against someone exempted from liability in accordance with § 7-4, unless he or someone in his service has acted with intent or gross negligence.
Recourse may be mitigated to the extent it is considered reasonable in view of manifested conduct, economic ability and circumstances.
Provisions on limitation of liability of the Act of 24 June 1994 no. 39 on maritime (Maritime Act) shall apply to the extent recourse be invoked against anyone who has the right to limitation of liability under the Maritime Policy.
Agreement on further recourse against those that liability can not be invoked against under § 7-4, second paragraph, is invalid.

§ 7-6. Petroleum activities without permission If pollution damage occurs petroleum and this is conducted without a license, is the one who has run petroleum industry liable for damage regardless of fault. The same liability rests on others who have taken part in the petroleum industry and who knew or should have known that the activity was conducted without permission.

§ 7-7. Public Announcement. Preclusive Unless the Ministry considers it obviously unnecessary, the operator shall, without undue delay, by public announcement giving information concerning compensation claims for pollution damage shall be directed and the period of limitation.
Announcement shall take with advertising twice with at least one week apart in the Norwegian Gazette and in newspapers and other publications that are widely read in those places where damage has been caused or is likely to occur.
With the consent of, any claimants summoned by preclusive notice with the effect that claims not reviewed within preclusive expiration lapses. The Ministry in case further rules regarding the notice and preclusive length and may issue rules regarding the method of settlement.

§ 7-8. Jurisdiction An action for compensation for pollution damage shall be brought in the judicial district where the effluence or discharge of petroleum has taken place or where damage is caused.
Ministry decides where the action shall be brought if:

A)

Effluence or discharge has taken place or damage has been caused outside the area of ​​any jurisdiction.

B)
it can not be demonstrated within which court district the effluence or discharge has taken place or damage has been caused.

C)
effluence or discharge has taken place in one court district and the damage is caused in another jurisdiction.

D)
damage has been caused in more than one jurisdiction.

Chapter 8. Special rules on compensation to Norwegian fishermen

§ 8-1. Substantive scope and definitions This chapter applies to compensation for financial losses petroleum activities incurred by Norwegian fishermen as a result of the activities occupying fishing fields or land contaminated by waste or by facility or an action in connection with the placing of causes damage.
Chapter does not apply to pollution damage as mentioned in § 7-1.
With pollution and waste in this Chapter pollution and waste as mentioned in the Act of 13 March 1981. 6 concerning protection against pollution and concerning waste, respectively § 6, first paragraph. 1 and 2 and § 27 first paragraph .
Norwegian fishermen are in this chapter people registered fishermen and owners of vessels in the Register of brand Norwegian fishing vessels subject.
Provisions of the other chapters of the Act are also applicable to this section to the extent applicable and not contrary to the provisions of this chapter.

§ 8-2. Seizure event of petroleum activities in an area entirely or partly occupying a fishing field, the State is obliged to the extent that fishing becomes impossible or significantly more difficult to provide compensation for the financial loss.
Compensation may be determined in whole or in part as a lump sum or as a fixed annual amount. Losses have occurred more than seven years after the occupation took place can not normally be claimed.
State may claim recovery from the licensee if the licensee ought to have averted the loss.

§ 8-3. Pollution and waste licensee is liable regardless of fault for economic loss due to pollution and waste from the petroleum industry, and the costs of reasonable measures to prevent or minimize such damage or such loss and damage or loss of such measures.
Liability of the licensee under subsection also includes damage and inconvenience from pollution and waste caused by traffic with the supply or auxiliary vessels and the relocation of the facility to or from the field. The licensee may be recourse against the direct tortfeasor or shipowner, providing the other prevailing conditions of liability are fulfilled.
For that compensation may be claimed for lost fishing time associated with locating, marking, recording or bringing ashore objects, the objects must be properly marked or brought ashore and presented to the police or port authority or other equivalent public authority, unless there are absolute obstacles. Location must in any case be reported to the police or port authority.
What is mentioned in the third paragraph also applies to compensation for other losses insofar as such marking, indication or bringing ashore can reasonably be required.
The liability also includes other vessels assisting a fishing vessel in bringing objects ashore.

§ 8-4. Joint liability If there is damage caused as mentioned in § 8-3 and it is not possible to identify, licensees shall be jointly and severally liable to the extent that the damage likely to be caused by petroleum activities in connection with the license.

§ 8-5. Facility etc. causing damage If a facility or an action in connection with the placing of hurtful and claimant is not entitled to compensation under the provisions of § 8.2, the licensee liable without regard to fault for the economic loss suffered by fishermen due of the damage.

§ 8-6. Board etc. Claims made pursuant to this chapter shall be considered by a committee. King issues regulations concerning composition of the commission and procedure and rules on appeals.
Appeal body's decision may, within two months after that Party has received notification of the decision by summons brought directly before the court.
Requirements laid down by the commission or by the appeal body is enforceable by execution after the appeal deadline or time limit specified in subsection has expired.
By the expiry of the deadline in the second paragraph may appeal body pursuant to the Public Administration Act § 31, decide that the district court shall hear the matter. Decisions to not met the deadlines can be appealed to the district court.

Chapter 9. Special requirements for security

§ 9-1. Safety The petroleum activities shall be conducted so that a high level of security can be maintained and developed in line with technological developments.


§ 9-2. Contingency licensee and other persons engaged in petroleum activities shall at all times maintain effective emergency preparedness with a view to dealing with accidents and emergencies which may lead loss of life or injury, pollution or major property damage. The licensee is obliged to ensure that necessary measures are taken to prevent or reduce harmful effects, including what is necessary as far as possible to return the environment to its state before the accident. The Ministry may issue rules about such emergency preparedness and such measures, impose emergency cooperation between several licensees.
By hazard and accident situations as mentioned in the first paragraph, the Ministry may decide that others should make necessary emergency response resources available to the licensee's expense. Ministry may licensee bill also take steps to obtain the necessary additional resources otherwise.
The provisions of the Act of 15 December 1950 No.. 7, on specific rådgjerder during war, threat of war or similar conditions, Chapter 5 on compulsory surrender to the public, apply correspondingly insofar as appropriate.

§ 9-3. Preparedness against deliberate attacks licensee shall implement and maintain safeguards to help prevent deliberate attacks against installations and at all times have contingency plans for such attacks.
The licensee shall provide facilities at the disposal of a public authority exercises and to the extent necessary to participate in such exercises.
Ministry may order implementation of measures referred to in subsections.

§ 9-4. Safety zones etc. Around and above facilities there should be a safety zone unless the Ministry decides otherwise. In accidents and emergencies Ministry may establish or extend safety zones. The extent of zones mentioned in the first and second sentences are determined by the King. This provision shall not apply to pipelines and cables.
King may decide that a safety zone will be going over the boundary of another State continental shelf. Moreover, the King may decide that there should be a safety zone on the Norwegian continental shelf even if the facility beyond that.
Ministry may decide that a zone corresponding security zone will be established in a timely manner prior to the placing of facilities as mentioned in the first paragraph.
The ministry may decide that it should be a safety zone around and above abandoned or dumped facilities, or parts of such installations.
Unauthorised vessels, hovercraft, aircraft, fishing gear or other objects must not be within the area referred to in the first, second, third and fourth paragraphs. If fishing can take place in the zone or part of zone without threatening safety or prevent the exercise of the petroleum industry, the Ministry nevertheless decide that such fishing may take place.
Ministry may issue regulations as are considered necessary to ensure access for facilities as mentioned in the first paragraph to zones as mentioned in the third paragraph.
Section is not applicable to facilities onshore or on seabed subject to private property.

§ 9-5. Shaping the petroleum industry etc. By hazard and accident situations as mentioned in § 9-2 shall licensee or other responsible for the operation and use of the facility to the extent necessary to stop the petroleum industry as long as the requirement for proper business dictate.

§ 9-6. Requirements to safety documentation licensee decides to prepare plans with a view to approval or permission pursuant to §§ 4-2 or 4-3, the plans and the licensee's documentation for implementation of this work to the Ministry as part of the safety supervision.

§ 9-7. Qualifications The licensee and other persons engaged in petroleum activities shall have the necessary qualifications to perform the work in a proper manner. Training will take place to the extent necessary.
The licensee is obliged in addition to ensure that anyone performing work for him complies with the provisions of the first paragraph.

Chapter 10. General provisions

§ 10-1. Requirements to prudent petroleum activities Petroleum activities under this Act shall be conducted in a responsible manner and in compliance with applicable regulations for such petroleum operations. The petroleum activities shall safeguard the safety of personnel, environmental and economic values ​​facilities and vessels represent, including operational availability.

Petroleum activities must not unnecessarily or unreasonably impede or obstruct shipping, fishing, aviation or other activities, or cause harm or risk of damage to pipelines, cables or other underwater installations. All reasonable measures must be taken to avoid damage to the flora and fauna of the sea, cultural sites on the seabed, and pollution and littering of the seabed, its subsoil, sea, air or land.
When there are special reasons, the Ministry may order the petroleum activities halted to the extent necessary or set special conditions for continuation.
When decisions mentioned in the third paragraph is justified by circumstances not caused by a licensee, the Ministry may on application extend the period for which the permit is valid and reasonable extent mitigate the obligations incumbent licensee.

§ 10-2. Management of petroleum, base etc. The licensee shall ensure that the operations can be exercised in a responsible manner in accordance with applicable law and the safeguarding of the need for sound resource management, health, safety and environment. Licensee organization in Norway must have a structure and size that allows the licensee at any time can make informed decisions about their petroleum activities under this Act.
To ensure compliance with the first paragraph, the Ministry may in individual cases, and to the extent deemed necessary, given the scale of the licensee's operations, array specific requirements for the licensee's organization in Norway. The Ministry may also, if the need for sound resource management and health, safety and warrant, require the licensee to use certain bases.
Licensee shall ensure that action is taken to remedy, so that trade union activity among employees and contractors and sub-contractors can be conducted in accordance with Norwegian practice.

§ 10-3. Supervision of petroleum operations Ministry supervises compliance with the provisions laid down in or pursuant to this Act are observed by all those who carry out petroleum activities covered by the law. The Ministry may issue such orders as are necessary for the implementation of the provisions contained in or pursuant to this Act.
Ministry may, when deemed necessary, order a vessel or a mobile device or part of the facility to be brought to a Norwegian port somewhere.
Costs related audit may be claimed by the licensee or the Authority in each case directed at or where it takes place. It also required a sector fee to cover expenses incurred by the second follow-up exercises that target all or part of the petroleum industry.

§ 10-4. Material and information concerning the petroleum activities Material and information which the licensee, operator, contractor etc. possesses or prepares concerning the planning and implementation of petroleum activities pursuant to this Act shall be available in Norway and may be requested free of charge handed the Ministry or its designate. The handover shall be in the format prescribed by the ministry to the extent deemed reasonable. The ministry may in this connection also require performed analyzes and studies. Upon surrender of license operator takes over responsibility for this provision for material and information relating to the surrendered production license.
King lays down further rules on what material should be available to the authorities and what can be required to be submitted and the information to be given to public authorities before the petroleum activities and after it has started.
Any information given to the authorities, in accordance with further provisions issued by the Ministry partly be used for the preparation of overview maps and for statistical purposes, eg Statistics Norway.

§ 10-5. Agreements between companies When special reasons, the Ministry may consent to the licensee enters into agreement to a parent company or a company that licensees are similar dependency to, undertake the activities on behalf of the licensee.
It should be stipulated for consent mentioned that the scheme does not involve less tax to Norway.

§ 10-6. Obligation to comply with the Act and to ensure that regulations are complied with The licensee and other persons engaged in petroleum activities comprised by this Act are required to comply with the law, regulations and decisions issued pursuant to the Act through the implementation of necessary systematic measures.
In addition the licensee to ensure that anyone performing work for him, either personally, through employees or through contractors or subcontractors comply with the provisions laid down in or pursuant to law.


§ 10-7. Collateral Ministry may by granting a license and later decide that the licensee shall provide such security as approved by the Ministry for the fulfillment of the obligations the licensee has undertaken, as well as for possible liability in connection with petroleum activities.
The same applies to other responsible under Chapter 5.

§ 10-8. Responsibility for commitments Licensees who jointly hold a license are jointly and severally liable to the state for financial obligations arising out of petroleum activities under the license.

§ 10-9. Liability for damage If someone who performs a mission licensee is liable to a third party, booklets licensee same extent as and solidarity with the perpetrator and, if applicable, his employer for the claim.
For liability for pollution damage, the provisions of Chapter 7.

§ 10-10. Commission of inquiry Has there been an accident in connection with petroleum activities comprised by this Act, the Ministry may appoint a special commission. The same applies to incidents in the activities that have resulted in serious danger of loss of life or major property damage or pollution of the marine environment. Commission members shall represent sufficient legal, nautical and technical expertise. The Chairman shall satisfy the criteria for a Supreme Court Justice.
Investigation Commission may require the licensee and others engaged in the accident or incident Commission provides information which may be relevant to the investigation and that they make available documents, facilities and other objects in a place where it is appropriate that the investigation undertaken.
Expenses in connection with the commission of inquiry work may be claimed from the licensee.
The provisions of the Maritime Code of investigation of marine casualties and regulations issued pursuant to the Maritime Act Chapter 18 II apply correspondingly insofar as appropriate.

§ 10-11. Training The King may issue rules regarding the licensee's obligation to undertake training of civil servants.

§ 10-12. Assignment etc. Transfer of a license or interest in a license for petroleum activities may not take place without the consent of the Ministry. The same applies to other direct or indirect interest transfer or participation in the permit, inter alia, assignment of shareholdings and other ownership shares which may provide decisive control of a licensee possessing a participating interest in a license.
Transfer of licensee group ownership to fixed facilities can not happen without the consent. The same applies to establishing a mortgage in a facility which under license under this Act has been placed onshore or on seabed subject to private property.
Ministry may in special cases decide that the fee shall be paid for the transfer.

§ 10-13. Recall the case of serious or repeated violations of this Act, regulations issued pursuant hereto, stipulated conditions or orders issued, the King may revoke a license granted under this Act.
If in an application for authorization is given incorrect information or information of significance is retained and it must be assumed that permission would not have been given the correct or complete information been available, the permit may be revoked relation to the licensee.
A permit may be revoked if the security licensee is obliged to make under § 10-7 is substantially impaired, or if the company or other entity holding the license is dissolved or enters into debt settlement proceedings or bankruptcy proceedings.

§ 10-14. Consequences of revocation, surrender of rights or lapse for other reasons Revocation of a license, surrender of rights or lapse of rights for other reasons does not exempt the financial obligations arising under this Act, regulations issued pursuant thereto or special conditions. If a work commitment or other obligation is not fulfilled, the Ministry may demand payment in whole or in part the amount that fulfillment of the obligation would have cost. The amount is determined with binding effect by the Ministry.

§ 10-15. Immunity etc. for another State officials King may, notwithstanding the Norwegian law admit another state officials immunity and special privileges in connection with measures to prevent and intervene against illegal acts involving a security threat to the petroleum industry.


§ 10-16. Coercive measures When an order is given by or pursuant to this Act, the authority which issued the order may fix a running penalty payment for each day that passes after expiry of a deadline set for the implementation of the order until this is fulfilled. Notification of fine shall be given by registered mail or by other equally satisfactory manner. Any fine imposed is enforceable by execution.
King may waive an imposed fine when this is reasonable.
Event of serious or repeated violations of the laws and regulations, stipulated conditions or orders issued, the Ministry may impose a temporary suspension of the activities.
Ministry may take appropriate measures for the account and risk if an order is not complied with. Expenditure for this measure is enforceable by execution.
Vessel or aircraft which violates provisions or orders issued in or pursuant to this Act may be instructed, expelled or seized and brought to a Norwegian port.

§ 10-17. Penal provisions Willful or negligent violation of provisions or decisions made by or pursuant to this Act shall be punishable with fines or imprisonment up to three months. Under aggravating circumstances, imprisonment for up to 2 years may be imposed. These provisions shall not apply if the affected severe penalty.

§ 10-18. Authority to issue regulations and stipulate conditions The King may issue regulations to supplement and implement this Act, including, inter alia provisions on employment, confidentiality, and the licensee's obligation to make available information on activities under this Act publicly available.
King may by regulations require the licensee and government agencies to provide information on payments. Administrative agencies may be required to provide such information notwithstanding the confidentiality. The information can be made public both by the provider and recipient of the information.
The King may issue regulations on information for the fulfillment of Norway's obligations under the EEA Agreement.
In connection with specific conditions may be conditions other than those mentioned in this law, when they have a natural connection to the action or the activities that the individual decision applies.
Ministry may issue an order that vessels engaged in exploration for petroleum shall have on board and using equipment that monitors and reports the activity of the vessel, such as satellite tracking equipment and tachograph.

Chapter 11 management of the State's Direct Financial Interest

§ 11-1. State participation in petroleum operations it participates in petroleum activities under this Act by the State retains a prescribed interest in a license issued pursuant to this Act and in the joint venture established by agreement in accordance with the license.
The King may decide that the State will participate in activities under this Act otherwise than as mentioned in the first paragraph, and the state to participate in other activities that are related to activities under this Act. In such case the provisions of this Chapter corresponding to the extent applicable, unless otherwise specifically provided by the King.

§ 11-2. Nominee Company The commercial relation to the participating interests which the state owns or reserves shall be managed by a corporation owned by the state alone.
Company shall be the licensee for the participatory interests it manages on behalf of the state. In each partnership company shall have rights and obligations as a participant in accordance with the agreement and otherwise have rights and obligations as a licensee in accordance with rules laid down in or pursuant to this Act and associated regulations.
The revenue management of participating interests, property of the state. The operating costs, investments and other expenses that are charged or relating to the management of participating interest covered by grants from the state. The Company shall keep separate accounts for income and expenses relating to the participating interests.
Funds for operations of the company granted by the state.

§ 11-3. State Liability Company State is directly responsible for the company's commitments under contract or otherwise. Claims against the State shall be made to the company.
Bankruptcy and Debt Negotiation for Law 8 June 1984 No.. 58 about debt negotiation and bankruptcy (Bankruptcy Act) can not be opened in the company.

§ 11-4. Borrowing etc. The Company can not obtain loans or provide security without Parliament's consent.

§ 11-5. Relationship to company law company is subject to the Act of 13 June 1997. 44 of Corporations (Companies Act), including the provisions relating to public corporations, unless otherwise provided by this Act.


§ 11-6. Board The Board shall ensure that the participating interests are subject to proper management in accordance with commercial principles and allocated funds and powers of the company and the business it manages. The Board will also consider the composition of the portfolio of participating interests and possibly submitting proposals to the AGM regarding possible changes.
Board may engage managers to perform management tasks of each partnership. The Board may also engage specific business drivers for limited business. The Board shall ensure adequate supervision of the execution of the tasks assigned to managers.

§ 11-7. Board submission obligation Board shall submit the following matters to the General Assembly:

A)
plans for the coming year, as well as perspectives in the medium term and significant changes in any of these,

B)
plans significant projects for the state's participation in activities under this Act,

C)
main features of the budget for the coming year,

D)
principles for involvement of business managers,

E)
annual report and accounts for SDFI as mentioned in § 11-8.

The Board shall also submit to the General Assembly all matters that must be assumed in principle or policy aspects of importance or which may have significant economic or social effects.
If the management committee in a partnership shall decide on a matter covered by the special voting rules with a right for the company to vote for resolutions in general meetings, the Board shall refer the matter to the General Assembly before the company voting on the matter. Has management committee issued a decision that would conflict with the terms and requirements of the license relating to the state's recovery policy or financial interests, the Board shall refer the matter to the General Assembly.
The Board shall inform the ministry about issues after the first three paragraphs must be submitted to the General Assembly, and require that it be convened. The General Assembly will decide whether it will take the board's submission under this section note or approve or modify it.
The Board may decide on the matters covered by this section if it has not been possible to submit the matter to the General Assembly in advance. The General Assembly shall immediately be informed of such decision.

§ 11-8. Annual Report The Board shall account for revenue and expenditure relating to SDFI. The Board shall also submit an annual report with an overview of the participatory interests managed by the resource accounting.

§ 11-9. Relations with the Public Administration Act etc. The Act of 10 February 1967 relating to Public (Public Administration) does not apply to the company.

§ 11-10. Instructions. Supplementary provisions The Ministry may establish regulations for the execution of the management task under this Act, including setting rules on representatives and secrecy.
King may by individual or regulations lay down provisions for the implementation, completion and appraisal of the provisions of this chapter.

Chapter 12. Commencement and amendment of laws

§ 12-1. Commencement etc. This Act shall come into force when the King bestemmer.1 King may decide that certain provisions of the Act shall come into force at different times.
§ 3-9, first, second and third paragraphs shall not apply to production licenses granted pursuant to Royal Decree. 9 April 1965 relating to exploration for and exploitation of subsea petroleum deposits (1965 resolution). Such production licenses are valid for up to 46 years from the time the permit was issued.
§ 4.5 does not apply to licenses granted before 1 July 1985.
Ministry may exempt from the provisions of § 4-92 second paragraph for a production area's loading point opposite the licenses granted pursuant to Royal Decree. 9 April 1965 relating to exploration for and exploitation of subsea petroleum deposits (1965 resolution).
Regulations issued pursuant to the previous Act of 21 June 1963. 12 for exploration and exploitation of subsea natural resources or the Act of 22 March 1985 No.. 11 relating to petroleum activities or pursuant to regulations issued pursuant to these laws apply to unless otherwise is or are determined.

§ 12-2. Repeal and amendment of Acts From the time the law comes into force, repealed the Act of 22 March 1985 No.. 11 relating to petroleum activities.
Same date changes below mentioned laws as follows: - - -