Advice to Lyle & Partners

Enquiry

• From: Lyle & Partners
• Date advice given: 21 June 2011
• Enquiry type: Email

As discussed this morning via telephone, we represent Hydromine Inc. http://hydromine.net/ a natural resource, power generation and sustainable energy technology development company. We have been advised to address you by Ed Stafford and Jeremy Allen from the DECC.

Hydromine is currently interesting in building an LNG facility in Britain and would consider Northern Ireland or Wales depending on the preference of the IPC. At the moment we understand Hydromine has the Irish government as an off-taker to supply energy.

Some of the initial questions we would like to address are:

How and where to obtain a license for this facility? And what is the procedural requirements including proposals to apply for this.

What is the limit on imports for this kind of facility?

What are the limitations on the export of energy?

Also any further information necessary for the initial stages of such project that you may advise us with will be of great use.

And do you have an initial proposal form set out in a way that applies to the regulatory process if so can we have in an email copy.

Thank you very much.

If you need further information do not hesitate in contacting me at any point.

Advice given

Dear Ana Carolina,

Firstly I should inform you that the IPC cannot advise on the merits of applications for development consent orders (DCOs) or proposed such applications, give legal advice nor interpret legislation as the latter is a matter for the courts.

Specifically we cannot advise on whether a proposal constitutes a Nationally Significant Infrastructure Project (NSIP) requiring development consent. It is for developers to take their own legal advice upon which they can rely. The IPC operates a policy of openness and transparency and all advice given is published on our website. For further information on the IPC's policy on giving Section 51 advice please visit our website at http://infrastructure.independent.gov.uk/wp-content/uploads/2010/03/Policy-on-s.51-advice-giving.pdf

Whether something is or forms part of an NSIP depends on whether the development concerned falls within the definitions in s.14-30 of the Planning Act 2008 (PA 2008) and this will depend on the facts. In this case s. 18 will also need to be considered and whether the thresholds and conditions in it for LNG facilities are met if the scheme is to fall within s.14.

If the proposed development does fall within s.14 of the PA 2008 then s.31 of PA 2008 applies, i.e. development which is or forms part of an NSIP requires development consent.

The thresholds set out in s.18 of the PA 2008 are as follows:

s.18(1) the construction of an LNG facility is within section 14(1)(d) only if (when constructed) the facility will be in England and –

(a) the storage capacity of the facility is expected to be at least 43 million standard cubic metres or, (b) the maximum flow rate of the facility is expected to be at least 4.5 million cubic metres per day.

An LNG facility is defined under s.18(3) as a facility for:

(a) the reception of liquid natural gas from outside England, (b) the storage of liquid natural gas and (c) the regasification of liquid natural gas.

S.18(5) states "The storage capacity is to be measured as if the gas were stored in regasified form."

It is our understanding that applications for LNG facilities relating to Wales are decided upon by the Welsh Government, I would strongly advise you to speak with the Welsh Government to clarify this position and the consents and permissions you may need to obtain.

In the circumstance that a project does not meet the thresholds set out in Part 2 of the PA 2008, the relevant Secretary of State (SoS) may direct the application to be treated as nationally significant under s.35 of the PA 2008. This may occur if the proposal meets the requirements of s.35(1)-(3). It is for the Secretary of State to decide whether to exercise this power in any given case.

In general, a DCO can include provisions for some licences and consents which may otherwise be obtained from other bodies (for example the Environment Agency). Part 4 s.33 of the PA 2008 sets out the effect of the requirement for development consent on other consent regimes. Schedules of the consents and licences which can be included in a DCO are set out in the Infrastructure Planning (Miscellaneous Prescribed Provisions) Regulations 2010.

Guidance and advice on the process can be found on our website at http://infrastructure.independent.gov.uk/legislation-and-advice/

If you have any further questions please do not hesitate to get in touch.