S.L. 156.2 Art. 4Considerations of the Licensing Authority when granting a licence.

(1) The Licensing Authority shall ensure that decisions on granting or transferring licences to carry out offshore oil and gas operations take into account the capability of an applicant for such a licence to meet the requirements for operations within the framework of the licence as required by the provisions of the Act, the relevant provisions of Directive 94/22/EC and, in particular, these regulations.

(2) In particular, when assessing the technical and financial capability of the applicant for a licence, the Licensing Authority shall take due account of the following:

(a) the risk, the hazards and any other relevant information relating to the licensed area concerned, including, where appropriate, the cost of degradation of the marine environment referred to in Article 8(1)(c) of Directive 2008/56/EC;

(b) the particular stage of offshore oil and gas operations;

(c) the applicant’s financial capabilities, including any financial security, to cover liabilities potentially deriving from the offshore oil and gas operations in question including liability for potential economic damages where such liability is provided for by law; and

(d) the available information relating to the safety and environmental performance of the applicant, including in relation to major accidents, as may be appropriate to the operations for which the licence was requested.

(3) Before granting or transferring a licence for offshore oil and gas operations, the Licensing Authority shall consult, where appropriate, the competent authority.