The Decommissioning Relief Deed (DRD) is a contract between the UK government and a 'Qualifying Company' which operates in oil and gas exploration and production on the UK Continental Shelf (UKCS) or is associated with such a company. It aims to provide certainty on the tax relief a Qualifying Company will receive at the time offshore oil and gas decommissioning is undertaken and, in certain circumstances, may render a payment due from the UK government to the Qualifying Company. The DRD is in a prescribed format published by the UK government and cannot be amended. For more information on decommissioning in the oil and gas sector, see Practice Notes: • Decommissioning—legislative background • Decommissioning—International Law and UK Government Policy • Decommissioning—planning for decommissioning Why is a DRD required in relation to UKCS assets? The special tax regime specific to oil and gas has been subject to frequent changes to both the basis and rate of taxation. Currently, the industry pays special rates of corporation tax on profits derived from

Decommissioning security agreements Oil and gas companies are expected to return the seabed to its original state (subject to certain exceptions) by permanently removing installations and/or infrastructure from the seabed and securing wells. As decommissioning occurs when the asset no longer produces revenue, the companies primarily responsible for decommissioning provide funds in a trust in advance so that those funds are available when decommissioning occurs, whether or not the company providing those funds still exists at the time. Such trusts are created by a decommissioning security agreement (DSA), a contract between two or more parties that obliges a party to create a trust in favour of another party or parties for the future cost of decommissioning. The trust will either hold cash or security and, usually, will be administered by an independent trustee. For more information on decommissioning, see Practice Notes: • Decommissioning—International Law and UK Government Policy • Decommissioning—legislative background • Decommissioning—planning for decommissioning • Decommissioning—types of decommissioning contracts Types of DSA Bilaterial or field-wide? A bilaterial DSA is usually put in place when a company

The Petroleum Act 1998 (PA 1998) provides the Secretary of State (SoS) with the power to grant licences to companies to search and bore for and get petroleum (through the auspices of the North Sea Transition Authority (NSTA) (formerly known as the Oil & Gas Authority) (see Practice Notes: Oil & Gas—UKCS licensing regime and North Sea Transition Authority (NSTA)). Decommissioning, however, is managed by the Offshore Petroleum Regulator for Environment and Decommissioning (OPRED) which is part of the Department for Energy Security and Net Zero (DESNZ), in consultation with the NSTA. Until 14 July 2016, the government department responsible for energy policy was known as the Department of Energy and Climate Change (DECC). From 14 July 2016, DECC was subsumed within the Department for Business, Energy and Industrial Strategy (BEIS). On 7 February 2023, the Department for Energy Security and Net Zero (DESNZ) was established and has taken over the energy portfolio of the former BEIS, which no longer exists. References to ‘BEIS’ and ‘DECC’ within this practice note are references to historical functions

Offshore oil and gas decommissioning programmes are, by their very nature, complex documents. Not only do they require the co-operation of all the departments within the parties submitting the decommissioning programme, they also require a close working relationship with the Department for Energy Security and Net Zero (DESNZ), the North Sea Transition Authority (NSTA) (formerly known as the Oil & Gas Authority) and the buy-in of various stakeholders. DESNZ was established on 7 February 2023 and has taken over the energy portfolio of the former Department for Business, Energy and Industrial Strategy (BEIS), which no longer exists. Any references to ‘BEIS’ within this practice note are references to historical functions of BEIS. The rights and obligations relating to decommissioning programmes are contained in Part IV of the Petroleum Act 1998 (PA 1998). However, PA 1998 provides only the structure and mechanics and most of the practical information relating to decommissioning programmes is actually contained in the Guidance Notes on Decommissioning of Offshore Oil and Gas Installations and Pipelines under the Petroleum Act 1998 (the Guidance

Oil and gas decommissioning is usually undertaken by the designated operator of the licence (for an on behalf of its coventurers), therefore it is important to make sure that all agreements are in place for all relationships. Relevant licensee contracts Agreement type Parties Purpose When to be in place Joint Operating Agreement (JOA) Licensees Used to agree the process for decommissioning and the accounting of expenditure When the licence is entered into Decommissioning Security Agreement (DSA) Licensees To provide for future decommissioning costs Ideally should be agreed prior to field development but, in practice, this usually happens later Trust Deed Each licensee, the Operator and the Law Debenture Trust Company Regulates the funds that have been put in place for the cost of decommissioning Determined by the DSA For more information on JOAs and DSAs, see Practice Notes: • The purpose and the principles of the joint operating agreement • Joint operating agreements—operator and non-operating party perspectives • Decommissioning—decommissioning security agreement Operator and government arrangements—decommissioning relief deed The Decommissioning

The reduction or removal of (radioactive) material from any structure, area, object, or person. Decontamination may be accomplished by treating the surface to remove or decrease the contamination.

Life assurance for a fixed period of time or specified age but where the sum assured decreases each year. At the end of the term the sum assured has decreased to zero and the policy comes to an end without value.

The final order in divorce proceedings that formally dissolves a valid marriage,

The Divorce, Dissolution and Separation Act 2020 (DDSA 2020) came into force on 6 April 2022. Proceedings issued by the court on or after 6 April 2022 are subject to the provisions of DDSA 2020 and the changes to procedure under the amended Family Procedure Rules 2010 (FPR 2010), SI 2010/2955. For further information, see Practice Note: Introduction to the Divorce, Dissolution and Separation Act 2020. Proceedings issued by the court on or before 5 April 2022 continue to progress under the pre-DDSA 2020 law, whether submitted on the digital system or via paper forms. Such applications are not impacted by the coming into force of DDSA 2020, nor the consequential changes to procedure. This document covers the position for proceedings issued prior to 6 April 2022. Legislative changes have been made as a consequence of DDSA 2020, including to FPR 2010, Pt 7. To view a historic version of FPR 2010, Pt 7, and FPR 2010, Practice Direction 7A as applicable to proceedings issued prior to 6 April 2022, see below: Online divorce Where

On 6 April 2022 the provisions of the Divorce, Dissolution and Separation Act 2020 (DDSA 2020), came into effect. Although DDSA 2020 dId not make substantive changes to the law regarding nullity proceedings, there were some consequential changes to the procedure under the amended Family Procedure Rules 2010 (FPR 2010), SI 2010/2955 affecting applications for nullity and nullity of marriage orders issued on or after 6 April 2022. The changes relate primarily to changes to terminology, updated forms and changes to provisions regarding service. For details of the procedure for proceedings issued on or after 6 April 2022, see Practice Notes: • Commencing and filing nullity proceedings (post-DDSA 2020) • Standard cases—nullity proceedings (post-DDSA 2020) • Disputed nullity proceedings (post-DDSA 2020) • Service of applications for matrimonial and civil partnership orders within the jurisdiction in proceedings issued on or after 6 April 2022 (post-DDSA 2020) Proceedings issued by the court on or before 5 April 2022 continue to progress under the pre-DDSA 2020 procedure and such applications have not been impacted by the consequential changes to procedure.

An order of the court finding a debtor liable to pay a sum of money to a creditor. Note that many company research tools, such as Experian, Company Watch, Red Flag, will pick up on decrees but still refer to them as County Court Judgments (CCJs)

The first (or preliminary) decree in divorce proceedings, specifying that unless sufficient cause or good reason is shown to the court why the divorce should not be made final, an application can be made for the decree absolute (the final decree).