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Coal industry Act 1994 (c. 21)

(The document as of February, 2008)

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Coal industry Act 1994

1994 CHAPTER 21

ARRANGEMENT OF SECTIONS

Content
  1. Part I

    Re-organisation of Coal Industry

    1. The Coal Authority

      1. 1. Establishment of the Coal Authority.

      2. 2. Duties of the Authority with respect to licensing.

      3. 3. Duties of the Authority with respect to property.

      4. 4. Duty of the Authority with respect to safety.

      5. 5. General powers of the Authority.

      6. 6. Directions to the Authority by the Secretary of State.

    2. The Corporation's exploitation rights

      1. 7. Exploitation rights: general.

      2. 8. Exploitation rights: territorial waters and continental shelf.

      3. 9. Exploitation rights: oil and gas.

      4. 10. Protection for certain interests in coal and coal mines.

    3. Restructuring of the Corporation's undertaking

      1. 11. Restructuring of the Corporation's functions.

      2. 12. Restructuring schemes in relation to property etc.

      3. 13. Agreements with respect to restructuring schemes.

      4. 14. Duty to assist in preparation of restructuring schemes.

    4. The Corporation's successors

      1. 15. Financial structure of successor companies.

      2. 16. Target investment limit for Government holding in successor companies.

    5. Financial arrangements in connection with restructuring

      1. 17. Grant-making powers.

      2. 18. Residual payments grant.

      3. 19. Concessionary coal.

      4. 20. Extinguishment of loans to the Corporation.

      5. 21. Taxation effects of restructuring.

      6. 22. Pensions and miners' welfare organisations.

    6. Reduction in membership and dissolution of the Corporation

      1. 23. Reduction in membership and dissolution of the Corporation.

    7. Abolition of the Domestic Coal Consumers' Council

      1. 24. Abolition of the Domestic Coal Consumers' Council.

  2. Part II

    Licensing of Coal-mining Operations

    1. Coal-mining operations to be licensed

      1. 25. Coal-mining operations to be licensed.

    2. Licences under Part II

      1. 26. Grant of licences.

      2. 27. Authorisation contained in licence.

      3. 28. Conditions of licence: general.

      4. 29. Conditions for the provision of security.

      5. 30. Publication of licensing arrangements.

    3. Enforcement

      1. 31. Enforcement orders.

      2. 32. Procedural requirements for enforcement orders.

      3. 33. Validity and effect of enforcement orders.

      4. 34. Power to require information for the purposes of enforcement.

    4. Supplemental

      1. 35. Register of licences and orders.

      2. 36. Insolvency of licensed operators etc.

  3. Part III

    Rights and Obligations in connection with Coal Mining

    1. Areas of responsibility

      1. 37. Areas of responsibility.

    2. Withdrawal of support from land

      1. 38. Rights to withdraw support.

      2. 39. Notices under section 38.

      3. 40. Savings for special cases.

      4. 41. Revocation of right to withdraw support.

    3. Subsidence

      1. 42. Subsidence damage to which 1991 Act applies.

      2. 43. Persons responsible for subsidence.

      3. 44. Cases where there is more than one responsible person.

      4. 45. Information to be provided by responsible persons.

      5. 46. The subsidence adviser.

      6. 47. Disputes etc. as to subsidence matters.

      7. 48. Offences with respect to subsidence information.

    4. Rights in relation to former copyhold land

      1. 49. Rights to work coal in former copyhold land.

      2. 50. Notices under section 49.

    5. Additional rights in relation to underground land

      1. 51. Additional rights in relation to underground land.

    6. Opencast operations

      1. 52. Opencast operations.

    7. Protection of the environment

      1. 53. Environmental duties in connection with planning.

      2. 54. Obligations to restore land affected by coal-mining operations.

    8. Health and safety regulations as to rescue service

      1. 55. Health and safety regulations as to rescue service.

    9. Registration of rights

      1. 56. Registration of rights.

  4. Part IV

    General and Supplemental

    1. Information provisions

      1. 57. Public access to information held by the Authority.

      2. 58. Liability for inaccurate information furnished to the Authority.

      3. 59. Information to be kept confidential by the Authority.

      4. 60. Annual report of the Authority.

      5. 61. Report on financial assistance for coal-mining museums.

    2. Supplemental

      1. 62. Financial provisions.

      2. 63. Provisions relating to the service of documents.

      3. 64. Offences by bodies corporate etc.

      4. 65. Interpretation.

      5. 66. Crown application.

      6. 67. Amendments, transitional provisions, savings and repeals.

      7. 68. Short title, commencement and extent.

    1. Schedule 1

      The Coal Authority.

      1. Part I

        Organisation and proceedings.

      2. Part II

        Financial provisions.

    2. Schedule 2

      Restructuring schemes.

    3. Schedule 3

      Financial structure of successor companies.

    4. Schedule 4

      Taxation Provisions.

      1. Part I

        Corporation tax.

      2. Part II

        Stamp duty and stamp duty reserve tax.

    5. Schedule 5

      Pensions Provision in connection with Restructuring.

    6. Schedule 6

      Further modifications of the 1991 Act.

    7. Schedule 7

      Retained interests in copyhold land.

      1. Part I

        Claims in respect of retained interests.

      2. Part II

        Other provisions.

    8. Schedule 8

      Amendments of the Opencast Coal Act 1958.

    9. Schedule 9

      Minor and Consequential Amendments.

    10. Schedule 10

      Transitional Provisions and Savings.

    11. Schedule 11

      Repeals.

      1. Part I

        Repeals coming into force on the passing of this Act.

      2. Part II

        Repeals coming into force on the restructuring date.

      3. Part III

        Repeals coming into force on an appointed day.

      4. Part IV

        Repeals coming into force on the dissolution date.

An Act to provide for the establishment and functions of a body to be known as the Coal Authority; to provide for the restructuring of the coal industry, for transfers of the property, rights and liabilities of the British Coal Corporation and its wholly-owned subsidiaries to other persons and for the dissolution of that Corporation; to abolish the Domestic Coal Consumers' Council; to make provision for the licensing of coal-mining operations and provision otherwise in relation to the carrying on of such operations; to amend the Coal Mining Subsidence Act 1991 and the Opencast Coal Act 1958; and for connected purposes.

[5th July 1994]

Be it enacted by the Queen's most Excellent Majesty, by and with the advice and consent of the Lords Spiritual and Temporal, and Commons, in this present Parliament assembled, and by the authority of the same, as follows:--



Part I Re-organisation of Coal Industry

The Coal Authority

1 Establishment of the Coal Authority

(1) There shall be a body corporate to be known as the Coal Authority (in this Act referred to as "the Authority") for the purpose of--

(a) holding, managing and disposing of interests and rights in or in relation to the unworked coal and other property which is transferred to or otherwise acquired by it by or under this Act;

(b) carrying out functions with respect to the licensing of coal-mining operations;

(c) carrying out functions with respect to coal-mining subsidence and in connection with other matters incidental to the carrying on of any opencast or other coal-mining operations;

(d) facilitating the establishment and maintenance of arrangements for the information to which persons are to be entitled under this Act to be made available to them; and

(e) carrying out the other functions conferred on it by virtue of this Act.

(2) The Authority shall consist of not less than two nor more than eight members appointed by the Secretary of State.

(3) The Secretary of State shall designate one of the members appointed under this section as the chairman of the Authority and may, if he thinks fit, designate another such member as its deputy chairman.

(4) In appointing a person to be a member of the Authority, the Secretary of State shall have regard to the desirability of appointing a person who has experience of, and has shown capacity in, some matter relevant to its functions.

(5) The Authority shall not be regarded--

(a) as the servant or agent of the Crown, or as enjoying any status, immunity or privilege of the Crown; or

(b) by virtue of any connection with the Crown, as exempt from any tax, duty, rate, levy or other charge whatsoever, whether general or local;

and the Authority's property shall not be regarded as property of, or property held on behalf of, the Crown.

(6) The provisions of Schedule 1 to this Act shall have effect with respect to the Authority and its finances.

2 Duties of the Authority with respect to licensing

(1) It shall be the duty of the Authority to carry out its functions under Part II of this Act in the manner that it considers is best calculated to secure, so far as practicable--

(a) that an economically viable coal-mining industry in Great Britain is maintained and developed by the persons authorised by virtue of that Part to carry on coal-mining operations;

(b) that such persons are able to finance both the proper carrying on of the coal-mining operations that they are authorised to carry on and the discharge of liabilities arising from the carrying on of those operations; and

(c) that persons to whom obligations are owed in respect of subsidence damage caused at any time (whether before or after the passing of this Act) do not sustain loss in consequence of any failure by a person who is or has been a licensed operator to make such financial provision for meeting present and future liabilities as might reasonably have been required of that person.

(2) Subject to section 4 below, it shall be the duty of the Authority, in carrying out its functions under Part II of this Act, to have regard to the desirability of securing--

(a) that persons authorised by virtue of that Part to carry on coal-mining operations are persons who have at their disposal such experience and expertise in the carrying on of such operations as are appropriate for ensuring that any authorised operations are properly carried on; and

(b) that competition is promoted between the different persons carrying on, or seeking to carry on, coal-mining operations.

(3) It shall also be the duty of the Authority, in carrying out its functions under Part II of this Act in cases where it appears that subsidence damage may be caused to any land or other property that does not consist in unworked coal or in a coal mine, to have regard--

(a) to the extent of the damage which is likely to be caused; and

(b) to the character of the land or other property in question and to the uses to which it is or is likely to be put.

3 Duties of the Authority with respect to property

(1) It shall be the duty of the Authority, in carrying out the functions mentioned in section 1(1)(a) above, to have regard to--

(a) the need to co-ordinate its practice in relation to relevant property dealings with the carrying out of its functions under Part II of this Act; and

(b) the need to secure the safety of members of the public.

(2) Subject to subsection (4) below, it shall be the duty of the Authority, so far as practicable, to make available for acquisition by others such of its land and other property as--

(a) does not consist in an interest in any unworked coal or coal mine;

(b) is not being put to a use which justifies its retention by the Authority; and

(c) in the opinion of the Authority, is unlikely to be required for any such use.

(3) For the purposes of subsection (2) above the only uses for land and other property which justify its retention by the Authority are--

(a) use by any person for or in connection with the carrying on of any coal-mining operations; and

(b) use by the Authority in connection with the administration of its own activities or with the management of the land and other property which it is entitled to retain or is unable to dispose of;

and for this purpose the management of land and other property shall include the performance of every obligation to which the Authority is subject in relation to any of that land or other property.

(4) Subject to subsection (6) below, it shall be the duty of the Authority, where it disposes of any interests or rights in or in relation to any land or other property, to secure the best terms reasonably available for the disposal.

(5) Subject to subsection (6) below, it shall be the duty of the Authority, in the exercise and performance of its powers and duties with respect to its land and other property, to have regard to the desirability of the exploitation, so far as that is economically viable, of coal-bed methane in Great Britain.

(6) It shall be the duty of the Authority, in determining the terms on which it may dispose of any interest or right in or in relation to any unworked coal or coal mine to a person who requires the interest or right for purposes connected with activities to be carried on under the authority of a licence under section 2 of the [1934 c. 36.] Petroleum (Production) Act 1934, to act in accordance with such arrangements and principles as it may, with the approval of the Secretary of State, have determined for the purposes of subsection (5) above.

(7) It shall be the duty of the Authority, in formulating any proposals for works on or in relation to any of its land or other property which has been used for the carrying on of any coal-mining operations but is no longer to be put to such use--

(a) to have regard to the desirability of preserving natural beauty, of conserving flora and fauna and geological or physiographical features of special interest and of protecting sites, buildings, structures and objects of architectural, historic or archaeological interest; and

(b) to take into account the effect of the proposals on the natural beauty of any area or on any such flora, fauna, features, sites, buildings, structures or objects.

(8) In this section "relevant property dealings", in relation to the Authority, means the grant of such interests and rights in or in relation to its land or other property as appear to it to be appropriate for the purpose of enabling or facilitating its use for, or in connection with, the carrying on of any coal-mining operations.

4 Duty of the Authority with respect to safety

(1) It shall be the duty of the Authority--

(a) in conjunction with the Health and Safety Executive, to prepare and from time to time revise a document setting out such means as may, with the approval of the Health and Safety Commission, be agreed between the Authority and that Executive for securing co-operation and the exchange of information between them; and

(b) without prejudice to the effect or operation of any relevant statutory provisions (within the meaning of Part I of the [1974 c. 37.] Health and Safety at Work etc. Act 1974), to conduct itself in the carrying out of its functions in accordance with any agreement contained in that document.

(2) As soon as practicable after agreement is reached for the purposes of--

(a) the preparation of a document in accordance with subsection (1) above, or

(b) any revision of a document prepared in accordance with that subsection,

the Authority shall send a copy of the document or, as the case may be, of the revised version of it to the Secretary of State, and the Secretary of State shall lay the copy before each House of Parliament.

5 General powers of the Authority

(1) Subject to subsections (6) and (7) below, the Authority shall have power to do anything which, in the opinion of the Authority, is calculated to facilitate, or is conducive or incidental to, the carrying out of its functions.

(2) Subject to subsections (6) and (7) below, the powers of the Authority shall include power, for the purposes of or in connection with the carrying out of its functions--

(a) to acquire land by agreement and to hold and dispose of land; and

(b) in exercise of rights attached to its interests in land, or of any such rights in relation to other land as are granted to it by the owner or occupier, to carry out any works on or with respect to land.

(3) Subject to subsection (7) below, where the Authority has land which it is required under this Act to make available for acquisition by others, its powers shall include--

(a) power, in exercise of any rights attached to its interest in the land, to develop or improve the land, or to join with others in developing or improving the land, with a view to its disposal for use or enjoyment by another; and

(b) power by agreement to acquire other land with a view (with or without developing or improving it) to disposing of the other land together with the land in question.

(4) The powers of the Authority shall include power to enter into arrangements with a person who is or has been a licensed operator to act on that person's behalf in relation to any of the following matters, that is to say--

(a) the giving and publication of notices under or for the purposes of section 38 or 49 below or any provisions of the 1991 Act; or

(b) the handling of any matter arising under the 1991 Act and the performance of that person's obligations in relation to any subsidence damage.

(5) The powers of the Authority shall include power, where it--

(a) provides a service to anyone in the course of the exercise or performance of its powers or duties, or

(b) receives any application for the grant of, or any offer for, any such interest or right in or in relation to any of its land or other property as may be required by any person for the purpose of exploring for coal or of carrying on coal-mining operations,

to make a charge for the provision of that service or, as the case may be, for considering that application or offer.

(6) The Authority shall not have power--

(a) for commercial purposes or with a view to itself using any coal or product of coal, to carry on any coal-mining operations consisting in--

(i) the winning, working or getting (with or without other minerals) of any coal,

(ii) the treatment of coal in the strata for the purpose of winning any product of coal, or

(iii) the winning, working or getting of any product of coal resulting from such treatment;

or

(b) with a view to any such operations being so carried on by the Authority or any other person, to explore for coal or, subject to subsection (4) above, to take any steps for the benefit of another for obtaining planning permission or any other authorisation required for carrying on coal-mining operations.

(7) The Authority shall not--

(a) acquire any land or acquire or hold shares in or other securities of any body corporate or otherwise become a member of a body corporate, or

(b) lend money to any person or guarantee or otherwise provide security for a loan made to any person,

except with the agreement of the Secretary of State.

(8) The consent of the Treasury shall be required for the giving of the Secretary of State's agreement under subsection (7) above.

(9) Subsections (2) to (5) above shall be without prejudice to the generality of subsection (1) above.

6 Directions to the Authority by the Secretary of State

(1) It shall be the duty of the Authority to comply with such directions of a general character as may be given to it by the Secretary of State with respect to the carrying out of any of its functions, or to its activities generally.

(2) It shall be the duty of the Authority to comply with such specific directions as may be given to it by the Secretary of State with respect to--

(a) whether or not it exercises any of its powers and the manner in which any of its powers is to be exercised;

(b) the manner in which any of its duties is to be performed; or

(c) any other conduct by the Authority in connection with the carrying out of any of its functions or with its activities generally.

(3) Without prejudice to the generality of the preceding provisions of this section, directions under this section may be given, in relation to any information which is in the possession of or available to the Authority, requiring the Authority to do one or both of the following, that is to say--

(a) publish it in such manner as may be described in the direction;

(b) furnish it, together with such explanations as he may reasonably require, to the Secretary of State.

(4) A direction under this section shall not authorise the publication of any information if, apart from the direction, the publication of that information would be in contravention of arrangements for the time being in force for the purposes of section 59 below.

(5) The power to give a direction under this section shall be exercisable, except in an emergency, only after consultation with the Authority.



The Corporation's exploitation rights

7 Exploitation rights: general

(1) From the passing of this Act until such date as the Secretary of State may by order made by statutory instrument appoint for the purposes of this section ("the restructuring date"), section 36 of the 1946 Act (power of the Corporation, subject to limits contained in subsection (2)(a) and (c), to grant licences by way of exception to its exclusive rights) shall have effect with the omission--

(a) in subsection (2)(a), of the words from "with respect to which" to "150"; and

(b) in subsection (2)(c), of the words from "where" to "250,000 tonnes".

(2) On the restructuring date the Corporation shall cease to have the exclusive right, under section 1 of the 1946 Act, of searching for, boring for, working and getting coal in Great Britain.

(3) On the restructuring date the Corporation's interests in unworked coal and coal mines, including its interests in any coal that, notwithstanding having been worked at some time, is so attached to or incorporated in any coal mine or other land as to be, in law, a part of it, shall vest without further assurance in the Authority.

(4) Subsection (3) above shall have effect subject to sections 8 and 9 below and to the powers conferred by virtue of section 12(1) below and, in its application to Scotland, shall have effect with the omission of the words "without further assurance".

(5) The Secretary of State shall not under this section appoint a date as the restructuring date unless he is satisfied that such schemes have been or are to be made under section 12 below as will ensure that the Authority is entitled or subject, from that date, to all such property, rights and liabilities as it requires for carrying out the functions which become its functions on that date.

8 Exploitation rights: territorial waters and continental shelf

(1) Subject to section 9 below, the interests in unworked coal and coal mines which are vested in the Corporation immediately before the restructuring date shall be deemed to include--

(a) the interests and rights of a freehold owner in and in relation to any such coal under the territorial sea adjacent to the United Kingdom as is coal with respect to which the Corporation has rights immediately before that date by virtue of section 1 of the [1964 c. 29.] Continental Shelf Act 1964, as read with section 2(3) of the [1987 c. 49.] Territorial Sea Act 1987; and

(b) the exclusive right, for the purposes of the rights of the United Kingdom mentioned in section 1(1) of that Act of 1964 and without the consent of the Secretary of State, of authorising the carrying on, in relation to the coal in any designated area, of any of the coal-mining operations to which section 25 below applies or of any operation carried on for the purpose of searching or boring for coal.

(2) Section 7(3) above shall not vest in the Authority any interest or rights in or in relation to any coal or coal mines outside Great Britain and the territorial sea adjacent to Great Britain except those mentioned in subsection (1)(b) above.

(3) Where on the coming into force on or after the restructuring date of any Order in Council under section 1 of the [1987 c. 49.] Territorial Sea Act 1987 any area outside the United Kingdom and the territorial sea adjacent to the United Kingdom is brought within that territorial sea, that Order in Council shall have the effect of vesting the interests and rights of a freehold owner in and in relation to coal under the seabed in that area in such person as may be specified in the Order in Council or, if no person is so specified, in the Authority.

(4) Nothing shall be vested in any person by virtue of subsection (3) above which would by virtue of section 9 below have been excluded, had the Order in Council come into force before the restructuring date, from the interests and rights which are deemed to be vested in the Corporation immediately before that date.

(5) In this section "designated area" means any area which is for the time being both outside the territorial sea adjacent to the United Kingdom and comprised in an area designated (whether before or after the beginning of the restructuring date) under section 1(7) of the [1964 c. 29.] Continental Shelf Act 1964.

(6) References in this section to the interests and rights of a freehold owner shall be construed, in relation to any coal the interests or rights in or in relation to which fall to be determined according to the law of Scotland, as references to the interests and rights of a proprietor of the dominium utile.

9 Exploitation rights: oil and gas

(1) It is hereby declared, without prejudice to section 10(2) of the [1934 c. 36.] Petroleum (Production) Act 1934 (petroleum set free in the course of mining and other lawful operations), that the interests and rights which are vested or deemed to be vested in the Corporation immediately before the restructuring date do not include--

(a) any interest in, or any entitlement to an interest in, any oil or gas which, in its natural condition in strata, is or becomes absorbed in or adsorbed to any coal; or

(b) any right, without a licence under section 2 of that Act of 1934, to search for, bore for or get any oil or gas which is or becomes so absorbed or adsorbed.

(2) Accordingly, nothing in any enactment or subordinate legislation relating to interests or rights in or in relation to any coal, or in or in relation to any oil or gas, shall be taken to have prevented any such interest or entitlement as is mentioned in subsection (1)(a) above from having become by virtue of any enactment or subordinate legislation, or from continuing to be, an interest or entitlement of the Crown.

(3) The exclusions confirmed by virtue of the preceding provisions of this section from the interests and rights which are vested or deemed to be vested in the Corporation immediately before the restructuring date shall not, in the case of any coal won, worked, treated or got in pursuance of any of those interests or rights, be taken to have, or at any time to have had, the effect of giving rise to any liability in respect of the winning, working, treatment, getting or disposal of--

(a) any of that coal having oil or gas occluded in it at the time of its being brought from the strata to the surface or, as the case may be, of its treatment in the strata; or

(b) any product of that coal resulting from any such treatment.

(4) So long as the Authority retains--

(a) the interest of a freehold owner in any coal or coal mine vested in it by virtue of section 7(3) above, or

(b) in Scotland, the interest of proprietor of the dominium utile as respects any such coal or coal mine,

the ownership of the coal or coal mine or, as the case may be, the possession of the interest of such a proprietor shall entitle the Authority to grant such rights in relation to that coal or coal mine as are required by any person for the purpose, under the authority of any licence which has been or may be granted to that person under section 2 of the [1934 c. 36.] Petroleum (Production) Act 1934, of searching for, boring for or getting any oil or gas in that coal or coal mine.

(5) The grant under subsection (4) above to any person of any rights--

(a) shall, in favour of that person, bind any other person who has or acquires an interest or right in or in relation to the coal or coal mine in question; but

(b) shall be without prejudice, in a case where there is a person other than the Authority with an interest or right in that coal or coal mine at the time of the grant, to any such person's rights as against the Authority in respect of--

(i) any interference by virtue of the grant with the enjoyment of his interest or right; or

(ii) any contravention of an undertaking given in relation to that interest or right.

(6) In this section "oil or gas" means--

(a) any mineral oil or any relative hydrocarbon which, in its natural state, is not a solid; or

(b) methane or any other natural gas.

10 Protection for certain interests in coal and coal mines

(1) This section applies to any coal or coal mine the ownership of which--

(a) is vested in the Corporation immediately before the restructuring date; and

(b) has not, at any time on or after that date, become vested in a person other than the Corporation or the Authority by virtue of being conveyed or transferred to that person either--

(i) by the Authority or the Corporation; or

(ii) in accordance with a scheme under section 12 below.

(2) No interest or right adverse to the title of the Authority or the Corporation in any coal or coal mine to which this section applies shall be capable of being acquired--

(a) under section 15 or 17 of the [1980 c. 58.] Limitation Act 1980 (time limits on actions to recover land and extinction of titles); or

(b) under section 1 or 2 of the [1973 c. 52.] Prescription and Limitation (Scotland) Act 1973 (prescriptive possession on ex facie valid deed).

(3) Subject to section 13(8) of the [1965 c. 36.] Gas Act 1965 (compulsory purchase for purposes of underground gas storage), where any power to acquire land compulsorily is conferred by or under any enactment (including, unless it otherwise provides, an enactment passed after this Act), that power shall not be exercisable on or after the restructuring date in respect of any coal or coal mine to which this section applies except in so far as--

(a) the coal is coal that it is necessary to dig or carry away in the course of operations for the purposes of which the power is conferred; or

(b) the coal mine is one that it is necessary to use in the course of any such operations.

(4) Subsections (2) and (3) above, in their application to England and Wales, shall not restrict the acquisition as mentioned in either of those subsections of any such liberty, privilege, easement, advantage or other right as adversely affects any coal or coal mine to which this section applies and is either annexed to any land or, without being so annexed, is acquired under any enactment.

(5) Subsection (3) above, in its application to Scotland, shall not restrict the acquisition, as mentioned in that subsection--

(a) of any such servitude as adversely affects any coal or coal mine to which this section applies; or

(b) of any other right so affecting (but not adverse to the title in) such coal or coal mine.

(6) For the purposes of subsection (4) above the reference to a liberty, privilege, easement, advantage or other right being annexed to any land is a reference to its appertaining to that land or any part of it, to its being demised, occupied or enjoyed with that land or any part of it or to its being reputed or known as part or parcel of the land or as appurtenant to the land or to any part of it.

(7) The reference in subsection (1) above to the ownership of any coal or coal mine is a reference--

(a) in relation to England and Wales, to the interest of the freehold owner of that coal or coal mine; and

(b) in relation to Scotland, to the interest as respects that coal or coal mine of proprietor of the dominium utile.



Restructuring of the Corporation's undertaking

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11 Restructuring of the Corporation's functions

(1) On and after the restructuring date the Corporation shall continue to exist until dissolved under section 23 below but with its functions confined to--

(a) carrying on its undertaking for the time being, and

(b) managing and otherwise dealing with the interests and rights in or in relation to property which are for the time being vested in it,

in such manner as, having regard to what is economically viable, it considers is best calculated for the purposes specified in subsection (2) below.

(2) The purposes mentioned in subsection (1) are those of securing--

(a) that all of the Corporation's undertaking and property is in due course transferred out of the ownership and control of the Corporation;

(b) that any transfers for the removal of any of that undertaking or property from the ownership or control of the public sector are on the best available terms; and

(c) that the Corporation's undertaking and property are put to the best available use for so long as they remain in its ownership or under its control.

(3) Where the Secretary of State notifies his opinion to the Corporation as to--

(a) what is economically viable in any case,

(b) the activities most likely to secure that any transfer for the removal of any of the Corporation's undertaking, or any property, from the ownership or control of the public sector will be on the best available terms, or

(c) the best available use to which any of the Corporation's undertaking or property may be put while owned by or under the control of the Corporation,

the Corporation shall be required for the purposes of this section to accept that opinion.

(4) Subject to subsection (6) below, on and after the restructuring date the following powers, that is to say--

(a) the powers conferred on the Corporation by subsection (2) of section 1 of the 1946 Act (incidental activities) and described in that subsection as functions,

(b) those conferred on the Corporation by subsection (3) of that section (power to enter into certain transactions), and

(c) a power, so far as not comprised in the powers conferred by subsection (2) or (3) of that section, to carry on any activities consisting in or connected with the working or getting of coal,

shall be exercisable by the Corporation for the purposes of, and in connection with, the carrying out of the Corporation's functions under subsection (1) above as they were exercisable, before the restructuring date, for or in connection with the discharge of its duties under subsection (1) of that section.

(5) The requirement for the matters secured under subsection (4) of section 1 of the 1946 Act (which specifies policy objectives for the Corporation) to be secured consistently with the proper discharge of the Corporation's duties under subsection (1) of that section shall have effect on and after the restructuring date as a requirement for those matters to be secured consistently with the carrying out of the Corporation's functions under subsection (1) above.

(6) On and after the restructuring date the Corporation--

(a) shall not be entitled to carry on any coal-mining operations in respect of which a licence under Part II of this Act is required except under and in accordance with such a licence;

(b) shall no longer have the powers conferred on it by the [1966 c. 47.] National Coal Board (Additional Powers) Act 1966 and section 9 of the [1977 c. 39.] Coal Industry Act 1977 (powers with respect to petroleum); and

(c) shall have no power, by virtue of the preceding provisions of this section, to carry on any business which it would not have had power to carry on apart from this Act.

(7) It shall be the duty of the Corporation to comply with such general or specific directions with respect to the exercise of any of its powers, or otherwise with respect to the carrying on of any of its activities, as may be given to it at any time by the Secretary of State.

(8) The consent of the Treasury shall be required for the giving of any notification for the purposes of subsection (3) above; and the power of the Secretary of State to give such a notification and his power to give directions under subsection (7) above shall each be exercisable, except in an emergency, only after consultation with the Corporation.

(9) Subsection (1) above shall be without prejudice to any powers conferred on the Corporation by the [1993 c. 2.] British Coal and British Rail (Transfer Proposals) Act 1993.

12 Restructuring schemes in relation to property etc

(1) The Secretary of State may, at any time before the restructuring date, make a scheme providing for the creation, as from that date, in favour of--

(a) the Corporation, or

(b) any person to whom any part of the Corporation's undertaking is to be transferred on that date in accordance with a scheme under this section,

of such interests and rights in or in relation to any of the property transferred to the Authority by section 7(3) above as he thinks appropriate for the purposes of the Corporation's functions on and after that date or, as the case may be, for the purposes of the carrying on by that person of the part of the Corporation's undertaking which is to be transferred to him.

(2) The Secretary of State may from time to time make a scheme for the transfer of property, rights and liabilities from the Corporation or any of its wholly-owned subsidiaries to the Authority or to any one or more other persons who--

(a) have entered into an agreement under section 13 below to accept the transfers; or

(b) otherwise appear to him to be persons in whom it is appropriate to vest the property, rights and liabilities in question;

and the persons to whom a transfer may be made by virtue of paragraph (b) above shall include the Secretary of State himself.

(3) The consent of the Treasury shall be required for the making of any scheme under this section ("a restructuring scheme").

(4) Subject to subsection (5) below, a restructuring scheme shall not, by virtue of subsection (2)(b) above, contain any provision in accordance with which any person other than--

(a) the Secretary of State,

(b) the Authority,

(c) the Corporation or any of its wholly-owned subsidiaries, or

(d) a company wholly owned by the Crown,

becomes entitled or subject to any property, rights or liabilities unless it appears to the Secretary of State that that person has consented to the provisions of the scheme so far as they relate to him.

(5) Subsection (4) above shall not require the consent of any person to so much of any restructuring scheme as--

(a) relates to property, rights or liabilities to which that person is already entitled or subject; and

(b) appears to the Secretary of State to be made for purposes that are no more than supplemental or incidental to the other provisions of the scheme.

(6) It shall be the duty of the Secretary of State, in exercising his powers under this section to make a restructuring scheme in accordance with which any person other than--

(a) a person mentioned in subsection (4)(a) to (d) above, or

(b) a body of whom all the members are appointed by a Minister of the Crown,

is to become subject to any liabilities, to have regard to the fact that it would not be appropriate for the scheme to provide for the transfer of any of those liabilities to any person except where it is reasonable to believe that that person is a person who will be able to finance their discharge.

(7) The Secretary of State--

Pages: P.1 | P.2 | P.3 | P.4 | P.5 | P.6 | P.7 | P.8 | P.9 | P.10 | P.11 | P.12 | P.13 | P.14

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