GUIDANCE NOTES FOR ONSHORE OIL

AND GAS FIELD DEVELOPMENT PLANS

December 2014

Toni Harvey
Sr Geoscientist
email: toni.harvey@decc.gsi.gov.uk
phone: +44 (0) 300 068 6037
fax: +44 (0) 300 068 5003

CONTENTS
INTRODUCTION
THE REGULATORY FRAMEWORK AND DEPARTMENTAL POLICY
THE DEVELOPMENT PLAN: PROCESS AND CONTENT
DEVELOPMENT PLAN AUTHORISATION AND PRODUCTION CONSENTS
ANNUAL FIELD REPORTS
CESSATION OF PRODUCTION
OPERATORSHIP AND LICENSEE RESIDENCE REQUIREMENTS

INTRODUCTION
These notes outline DECCs requirements for onshore oil and conventional gas field
development plans. There are also guidance notes for coalbed methane and mines gas fields
and gas storage into depleted fields here.
These notes cover only those field developments that are wholly onshore. Offshore fields that
are to be developed from an onshore location are covered by these guidance notes.
These notes also explain the arrangements for dealing with fields that cross licence
boundaries and where operations are undertaken by a contractor on behalf of Licensees. They
also cover licensee residence requirements, field operatorship requirements, the preparation of
Field Reports for onshore oil and gas fields and for cessation of production. The notes are
intended as a working guide and not as a definitive explanation of the requirements of the
model clauses or of the Secretary of States powers under them.
If you have any questions or comments on these notes please contact Toni Harvey
(toni.harvey@decc.gsi.gov.uk).

THE REGULATORY FRAMEWORK AND DEPARTMENTAL POLICY

The powers of the Secretary of State in relation to the development of and production from
oil and gas fields were first set out in full in model clauses scheduled to the Petroleum and
Submarine Pipe-lines Act 1975 and similar clauses are incorporated into every onshore
licence. The Petroleum (Current Model Clauses) Order 1999 (S.I. 1999/160) includes the full
text of all current model clauses and is available here. The licences prevent licence holders
from installing facilities or producing hydrocarbons without the authorisation of the Secretary
of State. When considering whether to authorise a proposal, the Secretary of State will take
into account whether the proposed project accords with the Government's policy objectives
and whether the methods proposed comply with good oilfield practice. When considering
what constitutes good practice, the Licensees proposals will be compared with the practice
adopted in similar, successful developments.
In reviewing Field Development Plans, the Department's overall aim is to maximise the
economic recovery of UK oil and gas resources and to ensure security of gas supplies. The
Department fully recognises the difficult operating environment faced by the onshore oil and
gas industry and is always willing to be as flexible as possible in its requirements whilst
ensuring that oil and gas developments meet its objectives.
The Department recognises that during the appraisal, commissioning and production phases
of a development, the flaring and/or venting of some gas may be unavoidable. However, this
flaring or venting must be kept to the minimum that is technically and economically justified.
The Department controls gas emissions by requiring Licensees to apply for consent to flare or
vent gas emitted by their fields. The main purpose of this requirement is to ensure that gas is
conserved where possible by avoiding unnecessary wastage.
Where a Development Plan is proposed for a field which extends into the area covered by a
neighbouring licence operated by different company the Department needs to be satisfied that
the ultimate economic recovery of petroleum is maximised and that unnecessary competitive
drilling is avoided. The most efficient way to satisfy these requirements and therefore avoid
any possible delay in the authorisation process is for Licensees to discuss their plans with
their neighbours at an early stage and propose an agreed Field Development Plan.
In cases where the Licensees have not reached an agreement the Secretary of State has powers
to require a unitisation between Licensees. However, Licensees should be aware that the
Secretary of State will not necessarily refuse to authorise development to a particular group of
Licensees who have not concluded an agreement with the Licensees of an adjacent block on
the basis that they have not concluded a unitisation agreement. The Department does not
consider that powers to require unitisation extend to issues of fairness and equity between
groups of Licensees. The Department's position is that proprietary rights do not exist in
unextracted hydrocarbons and ownership of hydrocarbons arises only once they have been
extracted under appropriate regulatory consent. The Department's acceptance or rejection of
any Field Development Plan will, therefore, be on the basis of whether or not it is the
optimum development in terms of maximising the economic recovery of oil and gas. If, in any
intended development, there is a likelihood of claims or disagreement between adjacent
licence groups related to the field's extent, the Department should be consulted at an early
stage.

In order for the Licensees to understand what constitutes a Field for both Unit Development
and tax purposes, the Department will issue a proposed Field Determination at an early stage
in the Field Development Plan authorisation process, utilising the geological information that
is available to it at that time.
The Department may authorise extended periods of test production (Extended Well Tests)
from exploration or appraisal wells prior to development approval if it can be demonstrated
that the Licensees will thereby gain the technical understanding or confidence in the
performance of the field needed to progress towards a development. The EWT should have
realistic and definable appraisal objectives essential to the success of a development and not
be prejudicial to ultimate recovery. There are no strict criteria governing the maximum
volume to be produced or the duration of an EWT, although the duration of an EWT normally
is not expected to extend beyond 90 days. The duration may be extended if there is a technical
justification, but it should be noted that EWTs are not an alternative to production under an
approved Development Plan. There is no obligation to proceed with a development following
an EWT. An EWT consent requires a formal letter of application setting out the timetable and
objectives of the test and the quantities of oil and gas to be produced and saved or
flared/vented. Operators should note that if oil and gas is to be saved during the EWT, a Field
Determination may be required for the field in question. Throughout the duration of the test
the operator should submit monthly oil, gas and water production figures to DECC. These
should be e-mailed at the end of each month to david.roberts@decc.gsi.gov.uk.
With the exception of certain pipelines environmental management of onshore hydrocarbon
developments does not come within the jurisdiction of the Department. Environmental
legislation is implemented by DEFRA, the Environment Agency in England and Wales,
Scottish Environment Protection Agency (SEPA) and the relevant local authorities. The key
planning and environmental legislation affecting the onshore hydrocarbon industry is
summarised here. Any oil and gas development must have the relevant consent(s) from
these authorities for both construction and operations. The Department will require
proof that such consents have been obtained before consenting to any development.

THE DEVELOPMENT PLAN: PROCESS AND CONTENT

The Development Plan (formerly known as the Annex B) is the support document for
development and production authorisations and should provide a brief description of the
technical information on which the development is based. Normally the document should be
no longer than 10-15 pages of text plus associated figures and tables although more details
may be required for fields with reserves of more than 15mmboe. The document should
provide a summary of the operators understanding of the field although any background
information should be available should the Department require more detail. Operators are
encouraged to contact the Department before submitting a Development Plan in order to
expedite the process. The current contact is Toni Harvey (toni.harvey@decc.gsi.gov.uk)
Licensees are jointly and severally responsible for the Development Plan, which must
represent a single view of all the Licensees. An operator is usually appointed to be
responsible for the production of the Development Plan and to ensure that all necessary
consents and authorisations are obtained. It is usual for the Department to conduct discussions
with the operator as the representative of all the Licensees.
A digital copy of the Development Plan is required. A CD or USB should be in a format
compatible with Microsoft Office 2010, and sent to Toni Harvey, Licensing and Consents
Unit, Area 3B, 3 Whitehall Place London SW1A AW or by email.
In addition, a copy of the relevant planning permission(s) should be supplied together with a
letter from each licensee confirming that that they support the development plan and have the
necessary funds available. This letter should also include a statement confirming that the
Departments licensee residence requirements have been met.
The Department is committed to releasing as much data as possible and would intend to
publish Development Plans six years after submission. However, any representations against
the release of a Development Plan would be considered.
The following are suggested section headings together with the topics that should be
addressed.
1. EXECUTIVE SUMMARY
The Executive Summary should state the essential features of the development including:

A brief description of the hydrocarbon reservoirs, reserves, development

strategy, facilities and pipelines.

An outline map showing the field limits, Field Determination boundary,

Development Area (that part of the field to which the development proposals refer)
boundary, contours of fluid contacts, existing and proposed wells and licence
boundaries.

A project schedule, total capital cost and a statement of licence interests.

A central estimate of ultimate recovery, and the minimum, central and

maximum hydrocarbon production profiles of:
gas, in thousand metric tonnes and billion cubic feet per year;
oil, in thousand metric tonnes and in million US barrels per year.


A statement of intent towards any parts of the field not addressed by the Plan
including any commitment to later development of that area, or to the later stages of a
phased development. Any provision for the development of other hydrocarbons in the
area should also be identified.

The essential elements of the Field Management Plan.

A copy of the relevant planning consent(s).

A statement undertaking that the field will be decommissioned in accordance

with the requirements of the applicable planning approval.
2. FIELD DESCRIPTION
The description should be in summary form and only a brief statement, table or map of the
results provided with references to more detailed company-held data where appropriate.
Licensees are encouraged to submit only those maps, sections and tables necessary to define
the field adequately but should include at minimum a table of in-place hydrocarbon volumes,
a representative cross-section and top structure maps for each reservoir. Maps should be in
subsea depth at appropriate scales and include co-ordinates in the United Kingdom National
Grid.
2.1 Seismic Interpretation and Structural Configuration
A brief summary of the extent and quality of the seismic survey and the structural
configuration of the field should be presented using appropriate figures and maps.
2.2 Geological Interpretation and Reservoir Description
The stratigraphy of the reservoirs, facies variations, the geological correlation within the
reservoir and any other relevant geological factors that may affect the reservoir parameters
(both vertically and horizontally) and thereby influence reservoir continuity within the field
should be described in summary form. Figures and maps should be provided where
appropriate. The geological data provided should reflect the basis of reservoir subdivision,
and correlations within the reservoir, and should include the relevant reservoir maps on which
the development is based.
2.3 Petrophysics and Reservoir Fluids
A brief summary of the key field petrophysical parameters should be presented incorporating
log, core and well test data. A summary of the field PVT description should be included.
2.4 Hydrocarbons-In-Place
The volumetric and any material balance estimates of hydrocarbons-in-place for each
reservoir unit should be stated together with a description of the cause and degree of
uncertainty in these estimates. The basis of these estimates should be available and
referenced.
2.5 Well Performance
The assumptions used in the Field Development Plan for the productivity and injectivity of
development wells should be briefly stated. Where Drill Stem or Extended Well Tests have
been performed the implications of these on production performance should be given. The
potential for scaling, waxing, corrosion, sand production or other production problems should
be noted and suitable provision made in the Field Management Plan.

2.6 Reservoir Units and Modelling Approach

Where the reservoir has been subdivided for reservoir analysis into flow units and
compartments the basis for division should be stated. A description of the extent and strength
of any aquifer(s) should be given. The means of representing the field, either by an analytical
method, some form(s) of numerical simulation, or by a combination of these should be briefly
described.
2.7 Improved Recovery Techniques
A summary of the alternative recovery techniques considered and the reasons for the final
choice is required.
2.8 Reservoir Development and Production Technology
The chosen recovery process should be described and the optimisation method summarised,
including reference to the potential for artificial lift and stimulation. Any limitations on
recovery imposed by production technology or by the choice of production facility or location
should be indicated. Remaining uncertainties in the physical description of the field that may
have material impact on the recovery process should be described and a programme to resolve
these should appear in the Field Management Plan (Section 3.7).
3. DEVELOPMENT AND MANAGEMENT PLAN
The purpose of this section is to briefly set out the form of the development, describe the
facilities and infrastructure, and establish the basis for field management during production.
Where a particular topic is not relevant to a development it should be omitted.
3.1 Preferred Development Plan, Reserves and Production Profiles
This section should describe the proposed reservoir development indicate the drilling
programme, well locations, expected reservoir sweep and any provision for a better than
expected geological outcome. An estimate of the range of reserves for each reservoir should
be given (excluding fuel and flare) with a brief explanation of how the uncertainty was
determined and explicit statements of probability where appropriate. The assumed economic
cut-off should be stated. Expected production profiles, for total liquids, oil, gas, gas usage and
flare, associated gas liquids and produced water for the life of the field are required. Where
fluids are to be injected, annual and cumulative injection profiles should be provided.
Quantities can be provided in either metric units or in standard oil field units (but with
conversions to metric equivalents provided). Information to allow calculation of sales
quantities should be provided. The anticipated date for Cessation-of-Production, together with
the underlying assumptions, should be provided.
3.2 Drilling and Production Facilities
The drilling section should briefly describe the drilling package and well workover capability,
and should include a description of the proposed well completion.
3.3 Process Facilities
A brief description of the operating envelope and limitations of the process plant should be
provided. The use and disposal of separator gas should be described.

The section should also include:

A summary of the main and standby capacities of major utility and service systems,
together with the limitations and restrictions on operation.
A summary of the method of metering hydrocarbons produced and utilised.
A brief description of systems for collecting and treating oil, water and other discharges.
A brief description of any fluid treatment and injection facilities.
A brief description of the main control systems and their interconnections with other
facilities.
3.4 Costs
Cost information is not required at present.
3.5 Field Management Plan
A brief review is required that sets out clearly the principles and objectives that the Licensees
will hold to when making field management decisions and conducting field operations and, in
particular, how economic recovery of oil and gas will be maximised over field life. The
rationale behind the data gathering and analysis proposed in order to resolve the existing
uncertainties set out in Section 2 and understand dynamic performance of the field during
both the development drilling and production phases should be outlined.
The potential for workover, re-completion, re-perforation and further drilling should be
described. Where options remain for improvement to the development or for further phases of
appraisal or development, the criteria and timetable for implementing these should be given.

DEVELOPMENT PLAN AUTHORISATION AND PRODUCTION CONSENTS

The development will be authorised once the Secretary of State is satisfied that the
Development Plan meets the Governments policy objectives as set out above.
The Secretary of State's consent will cover both the construction of the facilities and other
infrastructure, and the production of hydrocarbons from the field. Subject to the terms of the
licence, agreement will usually be given for production over the forecast lifetime of the
development with wide tolerances in the levels to be produced. Conditions may be attached to
give the Department powers to require a review if performance falls outside these tolerances
or if the field is found to differ from the initial perception to such an extent that there is a risk
of a loss of significant economic reserves. The Secretary of State's consent will be given in a
formal document sent to the field operator and any co-venturers.
If a production consent is issued for a duration that is less than the anticipated life of the field
it is the responsibility of the operator to apply for renewed consent to allow production to
continue. This application must be made before the expiry of the existing consent and should
include only sufficient information, including projected production profiles, to allow the
Department a full understanding of what is proposed.
Departmental consent is also required for flaring or venting operations. For onshore fields, as
amounts tend to be small, we are willing to consider longer term applications for flare and
vent consents.
The Public Participation Directive came into force in June 2005, and is now being
implemented in the UK. Implementing this directive will have a significant effect on the way
DECC deals with requests for the revision and renewal of existing production consents for oil
or gas fields.
The Department has therefore introduced an electronic consents system - the UK Oil Portal
Field Consents system. Online applications can only be applied for using the Portal so all
applicants should ensure they have access rights. Separate applications for production, flare
and vent consents will need to be completed as appropriate.
Users who do not have UK Oil Portal accounts should send an email to
ukop@decc.gsi.gov.uk requesting an account and including the reason: 'to gain access to the
UK Oil Portal Field Consents system'. The following information should be supplied:
Forename, Surname, Organisation Name (Employer), Job Title, Work Telephone Number &
Email Address.
Users who already have UK Oil Portal accounts should check that they know their login
details and password and that details held about them on the Portal are correct - by logging in
to the Portal at http://www.og.decc.gov.uk/portal.htm . Users will need to request access to
the UK Oil Portal Field Consents system.
If, either at the time of the authorisation of a Development Plan or during the period of
production, it appears that production is likely to continue beyond the term of the licence(s)
involved, the Department will indicate formally that an extension to the licence will be
granted subject to the continuing satisfactory performance of obligations under the licence.

The extension itself will be granted nearer the time of expiry if it continues to be the case that
production will continue beyond the original licence term. The extension will cover the area
of production and the time needed to complete production from it.

FIELD DEVELOPMENT PLAN ADDENDUM

The focus of the Department, once a development has been authorised, will be to ensure that
the Development Plan is being followed or modified appropriately as the understanding of the
field develops. The operator will be required to prepare Field Development Plan Addendums
upon request which inform the Department to proposed deviations from, or alterations to, the
agreed Management Plan within the Field Development Plan.
A Field Development Plan Addendum (FDPA) will be requested when extension of long term
production consent is requested, and should be uploaded to the PORTAL consent application
and a copy emailed to Toni Harvey. The Department is committed to releasing as much data
as possible and would intend to publish FDPA six years after submission. However, any
representations against the release of a FDPA would be considered.
Suggested headings and content of the report are as follows:
1.

INTRODUCTION

A brief review of the field operations and export route with any divergence from the
Development Plan should be summarised. Any changes in licence equity should be given. A
map showing the field extent and licence boundaries should be provided.
2.

FIELD DESCRIPTION

2.1
Hydrocarbons Initially In Place and Recoverable Reserves
Changes in estimates of hydrocarbons initially in place and reserves should be identified by
reference to the Development Plan base case and to the case in any previous FDPA.
2.2
Well Status and Operations
A table summarising changes in well status (e.g. producer/injector, suspended/abandoned,
perforated intervals, reservoir identifier, lift provision) should be included and should note
any well operations carried out during the reporting period (e.g. drilling, workovers, data
gathering, perforating, stimulation).
2.3
Geology and geophysics
A detailed depth structure map for key productive horizon with annotation of the max extent
(e.g. GDT or OWC) and well paths from the surface to top horizon is required along with an
interpreted seismic line across the field, or if none exists a schematic cross section is
acceptable. Where drilling, seismic re-processing or other work has had a significant impact
on the reservoir model a summary of the results should be provided.
2.4
Field Facilities and Infrastructure
An OS plat which shows the location of all field facilities is required. A brief report on the
performance of the field production facilities highlighting features that have impeded
operations and also valuable improvements should be added.
3.

DEVELOPMENT AND MANAGEMENT PLAN

3.1
Field Management
Any changes in development strategy should be reviewed. Important reservoir monitoring
results, reservoir monitoring limitations and specific production difficulties should be
summarised. Where appropriate, plots of reservoir pressure and voidage replacement should
be provided. Plans for reservoir monitoring in the coming year should be briefly discussed.
3.2
Studies
The results and relevance of any geoscience, reservoir or facilities/pipeline engineering
studies completed during the reporting period should be summarised. Plans and timescale for
ongoing and future studies should be briefly discussed.
3.3
Improved Oil Recovery (IOR)
Where appropriate the potential for IOR should be reviewed and the results of any studies or
operations discussed.
3.4
Forecasting
A table of the current forecast and the Development Plan production, vent and flare volumes
and injection profiles should be provided, together with the current estimate of the Cessationof-Production date.
3.5
Proposed Changes to the Development Plan
Proposed changes to commitments or to conditions in the development consent should be set
out clearly as should plans to extend the development beyond the Development Area. The
need to include other deviations should be discussed with the DECC. Where appropriate a
summary of longer term development opportunities within or around the field should be
provided.
3.6
Field Operating Costs
CAPEX and OPEX profiles should be provided for the previous two year period, together
with a three year projection of predicted expenditure; categorised as follows: new wells,
workovers, side-tracks, facilities upgrades. Any large variations from the previous Field
Report should be explained.
3.7 Other Regulatory issues
A summary of the status of other regulatory consents and permissions should be provided,
including the term of the planning consent and environmental permiting (e.g. W Sussex
Council planning permission for field operations is in place until 2017, status of EA permits
if re-starting production is proposed).

CESSATION OF PRODUCTION
Departmental consent is required before production ceases and the field is decommissioned.
In order that consent can be granted a Cessation of Production (COP) report is required. The
amount of detail to be included in the COP will depend on whether options to extend field life
have been appropriately covered in previous field reports.
The report should cover:
Definition of economic limit.
Determination of cut-off rates and timing.
Cash flow over the period up to this economic limit and approximately 2 years beyond.
The costs and any revenues associated with COP itself (capital and operating
expenditures and any residual value of field assets).
The form and costs of abandonment if these affect the timing of the economic limit.
Possible options for extending field life.
Production and injection profiles together with projections through to economic limit
and approximately 2 years beyond.
Details of any remaining licence obligations.
Appropriate reservoir maps indicating the estimated location and distribution of
remaining technically recoverable oil/gas that will be undrained at the time of Cessation of
Production. In addition some conception of likely changes in such distributions over time
should be given for completeness of the record.
Confirmation that all abandonment requirements in the relevant planning consents will
be met and details of what is involved
It is important that sufficient information is retained after COP to enable other interested
potential operators to take a reasonably informed view about the potential for field
redevelopment. Redevelopment may become feasible if, for example, new technology allows
a significantly improved recovery factor. For this reason COP documents will be released
once the licence(s) involved are relinquished.

OPERATORSHIP AND LICENSEE RESIDENCE REQUIREMENTS

The revised requirements for onshore exploration and production operatorship approval may
be found here.
Details of licensee residence requirements may be found here.