Common use of Partial Decommissioning or Alternative Use Clause in Contracts

Partial Decommissioning or Alternative Use. (a) Notwithstanding the above, where the Contractor wishes to undertake early Decommissioning activities in advance of producing a final Decommissioning Plan, the Contractor must obtain approval to undertake Decommissioning activities before commencing with any work and as such should consult with the Minister for approval of a partial Decommissioning Plan. (b) The Minister may grant a departure from the requirement to remove a platform or other facility by approving partial structure removal or toppling in place for conversion to an artificial reef if the Contractor meets the following conditions: i. The structure becomes an artificial reef and the relevant Governmental agency accepts title and liability for the structure; and ii. Proposed Decommissioning satisfies any other Government agency’s requirement of navigational requirements for the structure. (c) The Contractor may apply to reuse or relocate the facility for conducting oil or gas development at another location, or for additional energy or marine-related purposes. The Contractor seeking alternative use or reuse of the facility must submit an application to the Minister for approval of the Alternative Use Plan. The Contractor may also need additional approvals from the Environmental Protection Agency and other government agencies with authority over navigation and other uses of the continental shelf or regulatory authority over the proposed energy or marine related purpose. Any application to reuse a platform must be subject to verification by an independent internationally recognized certified verification body, acceptable to the Government.

Appears in 2 contracts

Sources: Production Sharing Agreement, Production Sharing Agreement