Pipeline licence (PPL) and

If petroleum is required to be transported outside the area of a petroleum lease (PL), an application must be made to Minister for the grant of a pipeline licence (PPL). However, any pipe, or system of pipes, that are within the area of a PL, may be constructed without the requirement for a PPL. Further, if the pipeline extends beyond the area of the lease, and the pipeline is completely within the area of 1 or more other PLs also held by the holder that are contiguous to the lease, a PPL is not required. None the less, a PPL may still be applied for, for pipelines within the area of a PL.

There are two types of PPLs that the Minister may grant to a person or company:

• An area PPL

• A point-to-point PPL.

When granting a PPL, the licence itself will describe the area of the licence. However, a pipeline can only be constructed on pipeline land within the area of the licence. Pipeline land includes land:

• that the licence holder owns

• over which the holder —

(i) holds an appropriate easement for the construction or operation of the pipeline

(ii) has obtained the owner's written permission to enter to construct or operate the pipeline

(iii) holds a part 5 permission to enter to construct or operate the pipeline. (Where reasonable consultation with the landowner, about acquiring the pipeline land from the landowner, has been conducted by the PPL holder and is unresolved, the Minister may grant a part 5 permission to assist the holder of a PPL to acquire the pipeline land).

Note that the granting of the PPL does not, of itself, create an easement for the construction or operation of the pipeline.

A point-to-point PPL holder must construct the pipeline, the subject of the licence, prior to the date for construction contained in the licence. An area PPL holder must construct the initial pipelines, detailed in the licence, prior to the date given in the licence for their construction.

More about area PPL and point-to-point PPL

An area PPL is granted by the Minister, over an area of the State, and allows its holder to construct and operate pipes, or systems of pipes within the area of the PPL, without having to have a licence for each single pipeline. Note that an area PPL cannot be granted for a transmission pipeline nor a distribution pipeline (as defined in the Petroleum and Gas (Production and Safety) Act 2004).

A point-to-point PPL is granted by the Minister over a pipeline, from one stated point or points to another stated point or points, and allows its holder to construct and operate the pipeline. Note that a point-to-point PPL cannot be granted for a distribution pipeline.