PETITION OF GREENPEACE LTD FOR JUDICIAL REVIEW [2020] ScotCS CSOH_88 (01 October 2020)
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OUTER HOUSE, COURT OF SESSION
[2020] CSOH 88
P363/20
NOTE BY LORD BOYD OF DUNCANSBY
In the petition of
GREENPEACE LTD
for Judicial review of the lawfulness of the grant of consent given by the Secretary of State
for Business Energy and Industrial Strategy under regulation 5A of the Offshore Petroleum
Production and Pipelines (Assessment of Environmental Effects) Regulations 1999 and the
grant of consent by the Oil and Gas Authority to BP Exploration Operating Company
Limited for the development of and production from the Vorlich field.
Petitioner: Crawford QC, Welsh, advocate; Harper Macleod
First Respondent: Deanof Faculty, MacGregor QC; Office of the Advocate General
Second Respondent: Campbell, advocate; MBS Solicitors
Interested Parties: Cormack QC; Pinsent Masons LLP
1 October 2020
[1] This is an application by Greenpeace under section 27A of the Court of Session
Act 1988 for permission to bring a petition for judicial review. Having considered the
papers I put this out for an oral hearing. The petitioner and the Secretary of State (the first
respondent) lodged short written submissions. I am grateful to them and to counsel for all
the parties for both the written and succinct oral submissions.
[2] I have decided to refuse permission to proceed. This short opinion sets out in brief
terms my reasons.
[3] The petition seeks the following orders:
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a) Declarator that the Offshore Petroleum Production and Pipe-lines
(Assessment of Environmental Effects) Regulations 1999 fail fully to
transpose the Environmental Impact Assessment Directive (as amended).
b) Reduction of the Secretary of State for Business, Energy and Industrial
Strategy’s decision to agree to the grant of consent for t he field development
Vorlich project on 7 August 2018.
c) Reduction of the Oil and Gas Authority’s grant of consent to BP Exploration
Operating Company for the field development Vorlich project (licence P1588
and P363).
d) Such further orders (including an order for expenses) as may seem to the
court to be just and reasonable in all the circumstances of the case.
[4] By letter dated 23 September 2020 the petitioner’s agents intimated that they no
longer sought the order at c) above.
[5] The petitioner raised judicial review proceedings in the High Court in England
following on the grant of consent by the Oil and Gas Authority (OGA) on the application to
drill in the Vorlich field. The history of those proceedings is set out in the pleadings. The
action was settled on a consent order. There was some discussion before me on the terms of
the order and its scope. At this point however it should be recorded that the Secretary of
State accepts that the Offshore Petroleum Production and Pipe-lines (Assessment of
Environmental Effects) Regulations 1999 (the Regulations) failed to fully transpose the
Environmental Impact Assessment Directive (the Directive). The Secretary of State is
presently conducting a comprehensive review of the Regulations. I understand that a
consultation paper has been published and Ms Crawford referred to it in the course of her
submissions.
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[6] The Interested parties, BP and Ithaca, hold a licence to search and bore for and get
petroleum from the Vorlich field. The licence is subject to a model clause that requires
consent for the drilling for oil. This consent is granted by the second respondent, the OGA,
but subject to the agreement of the Secretary of State. The process is set out in the
Regulations.
[7] An application for consent for this type of operation must be accompanied by an
environmental impact assessment (EIA). This is then considered by the Secretary of State
who must consult with various bodies and consider representations. He may ask for
additional information. It is clear from section 5A of the Regulations that environmental
considerations play a major, if not decisive, part in the decision of the Secretary of State as to
whether he should agree to the grant of consent. It is then for the OGA to decide whether or
not to grant consent. The OGA explain that in deciding whether consent should be granted
it is concerned only with technical, financial and competency issues. It is not concerned with
environmental issues. Put another way, the only consideration of the environmental aspects
of an application for drilling consent is by the Secretary of State.
[8] There is a procedure under Regulation 16 where an aggrieved party may bring an
application to the Court for an order quashing the grant of consent. Such applications are
dealt with under chapter 41 of the Rules of Court.
[9] Regulation 16 is in the following terms:
“(1) On the application of any person aggrieved by the grant of consent in respect of a
relevant project in relation to which an en vironmental statement was required to be
submitted by virtue of regulation 5(1) above (agreement of the Secretary of State in
respect of relevant projects), the court may grant an order quashing the grant of consent
where it is satisfied that the consent was granted in contravention of regulation 5(4) or
regulation 5A(1)(a) above (consideration of environmental statement etc.) or that the
interests of the applicant have been substantially prejudiced by any failure to comply
with any other requirement of these Regulations.”
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[10] Paragraph 1 of the petition includes the following statement, “The petitioner brings
this petition for judicial review in accordance with regulation 16 of the …..Regulations 1999….
as a person aggrieved by the grant of consent.” In paragraph 37 the petitioner states that as a
result of the failure to transpose the EIA Directive it was denied t he opportunity under
Regulation 16 to challenge the decision by the OGA to grant the consent.
[11] Despite these averments the petitioner has in fact brought a challenge under
Regulation 16. The respondents and interested parties accordingly challenge the
competency of this process on the basis that there is a statutory appeal mechanism, which
the petitioner is in fact using.
[12] Two issues arise from this. First the petitioner says that the Regulations fail to
properly transpose the EIA Directive. As there is no mention of the Directive in
Regulation 16 the court would be confined to considering the petitioner’s application in
terms of the Regulations, to the prejudice of the petitioner, which wishes to rely on the
Directive.
[13] I do not accept this proposition. Insofar as the Regulations fail to implement the
Directive the Directive has direct effect. There is nothing to prevent the petitioner
submitting in the course of the Regulation 16 proceedings that the court should apply the
terms of the Directive where these conflict with the Regulations. As I noted above the
Secretary of State accepts that the Regulations do not fully transpose the Directive.
[14] The second issue is whether an appeal under Regulation 16 is confined to the grant
of consent by the OGA and does not encompass the agreement of the S ecretary of State. In
the Regulation 16 appeal the petitioner seeks to challenge both the grant of consent and the
Secretary of State’s agreement to the OGA’s consent. I understand however that the position
of the respondents in that process is that the court is confined to looking at the consent itself
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and cannot look at the agreement. Ms Crawford took me to the interpretation of “consent”
in Regulation 3 and pointed out that it does not include the agreement of the Secretary of
State. That might support the position of the respondents in the Regulation 16 appeal.
[15] If that is right it seems to me to be a serious lacuna. It means that environmental
issues which are of fundamental importance to the granting of a consent for the drilling of
oil could not be the subject of an appeal under Regulation 16. The only issues that could be
addressed are those for which the OGA has responsibility. The environmental issues could
only be addressed in a judicial review. Moreover according to the Secretary of State the
petition for judicial review must be brought within three months of the Secretary of State’s
agreement, which may well expire before consent has been granted. In my opinion, if that
were correct it is a most unsatisfactory state of affairs. I also question whether such an
interpretation would be consistent with the state’s obligations under article 9 (Access to
Justice) of the Aarhus Convention.
[16] In any event I do not think such an interpretation is correct. Although Ms Crawford
described the process of granting consent as a two stage process it is I think more
appropriate to see the Secretary of State’s agreement as an integral part of the consenting
process. It is a condition precedent to the OGA granting consent.
[17] Regulation 16 applies to a “grant of consent in respect of a relevant project in relation
to which an environmental statement was required to be su bmitted by virtue of
regulation 5(1)”. The court may quash the consent where it is satisfied that the consent was
granted in contravention of Regulation 5(4) or Regulation 5A(1)(a). Regulation 5(4)
provides:
“(4) Where an application for consent in respect of a relevant project is accompanied
by an environmental statement, the Secretary of State shall not make the decision
referred to in regulation 5A(1)(c) in respect of that project unless the Secretary of
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State is satisfied that the requirements of regulations 9 and 10 have been substantially
met, and that, where necessary, advice has been obtained from persons with
appropriate expert knowledge who have examined the statement.”
[18] The headnote to Regulation 9 states, “Procedure on receipt of application for consent
in respect of which environmental statement prepared; publicity requirements; provision of
environmental statements to public”. Regulation 10 is concerned with “Provision to
Secretary of State of further information and evidence respecting environmental
statements.”
[19] Regulation 5A(1) is in the following terms:
“(1) When making a decision as to whether to agree to the grant of a consent in
respect of a relevant project for which an environmental statement has been
submitted, the Secretary of State shall—
(a) examine the environmental statement, including any information provided
under regulation 10, any representations made by any person required by these
Regulations to be invited to make representations, and any representations duly
made by any other person about the environmental effects of the project;
(b) reach a reasoned conclusion on the significant effects of the relevant project
on the environment, taking into account the examination referred to in
sub-paragraph (a); and
(c) integrate that conclusion into the decision as to whether agreement to the grant of
consent is to be given.”
[20] Accordingly what the Secretary of State is required to do is to reach a reasoned
conclusion on the significant effects of the project on the environment and integrate that
conclusion into his decision on whether he agrees to the grant of consent.
[21] The reference in Regulation 16 to the aforementioned Regulations, which concern the
Secretary of State’s consideration of the environmental aspects of the application , puts it
beyond doubt that the Secretary of State’s agreement as a condition precedent to the grant of
consent can be examined in a Regulation 16 challenge. Any argument to the contrary is in
my opinion bound to fail.
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[22] In passing I note that in the English proceedings the Secretary of State accepted that
publication in the Gazette would trigger the right of appeal against the “environmental
decision”.
[23] For these reasons I hold that the petition is incompetent insofar as it seeks to
challenge both the grant of consent and the agreement of the Secretary of State to the
consent. There is another process in which the challenge can and is being made. There is no
requirement to invoke the supervisory jurisdiction of this court (R.C 58.3(1)).
[24] For the avoidance of doubt had I held that the petitioner would be unable to review
the Secretary of State’s agreement I would not have found the challenge in the petition to his
agreement to be incompetent. To have done so would have denied the petitioner a remedy,
though the issue of time bar and whether there was a reasonable prospect of success would
still require to be addressed.
[25] So far as the remedy sought at paragraph 4(a) is concerned there was some
discussion as to whether or not this was res judicata given the terms of the consent order and
statement of reasons at 6/12 of process. It was suggested by Ms Crawford that the judicial
determination only related to the requirement to publish the OGA’s consent in the Gazette,
which publication would “trigger the 6 week right of appeal against the (Secretary of State’s)
environmental decision.” That being the case the petitioner submitted that the issue of
whether the Regulations properly or fully transposed the Directive had not been judicially
decided.
[26] It matters not whether the issue is res judicata. The Secretary of State has publically
accepted that the Regulations are defective and is consulting on a comprehensive review. I
do not consider that it is an appropriate use of the supervisory jurisdiction of this court to
pronounce on matters which are in effect moot, given the Secretary of State’s acceptance of
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the non-compliance of the Regulations with the Directive. Ms Crawford suggested that the
proposed changes may not be to the petitioner’s liking. That may be so but the resolution of
that issue is for the democratic process, subject to any requirement to comply with EU law, if
still relevant.
[27] For these reasons I shall refuse permission to proceed. I have not examined whether
the substantive arguments contained in the petition would have met the test in
section 27B(1)(b) of having real prospects of success. It may be that some, if not all, of these
matters will be considered in the Regulation 16 proceedings and it would be better for me to
make no comment at this stage. Nor have I considered the issue of time bar raised by the
respondents in respect of the challenge to the Secretary of State’s agreement.
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