No C 325/6 Official Journal of the European Communities 6.12. 84
COMMISSION
Proposal for a Council Regulation on a programme of support for technological
development in the hydrocarbons sector
COM(84) 658 final
(Submitted by the Commission to the Council on 26 November 1984)
(84/C 325/06)
THE COUNCIL OF THE EUROPEAN
COMMUNITIES,
Having regard to the Treaty establishing the
European Economic Community, and in particular
Article 235 thereof,
Having regard to the proposal from the Commission,
Having regard to the opinion of the European
Parliament,
Having regard to the opinion of the Economic and
Social Committee,
Whereas the setting up of a common energy policy is
one of the objectives which the Communities have set
themselves; whereas it is for the Commission to
propose the measures to be taken to that end;
whereas the Council accordingly adopted Regulation
(EEC) No 3056/73 of 9 November 1973 on the
support of Community projects in the hydrocarbons
sector (');
Whereas, in view of the importance of hydrocarbons
in the Community's energy supplies and the
Community's dependence on imports, it is a
fundamental objective of such a policy to secure
conditions ensuring long-term security of supply;
Whereas encouragement for technological
development activities directly connected with hydro-
carbons exploration, production, storage or transpor-
tation activities is such as to improve the security of
supply and could therefore be a means of achieving
such a policy;
Whereas the primary responsibility for financing such
activities lies with the petroleum industry; whereas,
however, in view of the considerable risks and
investments which such activities entail, provision
should be made for the Community to grant them
support, especially to the extent that it makes it
possible to carry out certain projects more quickly;
0) OJ No L 312, 13. 11. 1973, p. 1.
Whereas technological development activities can be
differentiated from research activities, although some
phases of technological development projects may
include a certain degree of research;
Whereas Community support may encourage the
pooling of efforts by undertakings in two or more
Member States;
Whereas service undertakings and equipment-
construction undertakings play an important role in
these technological development acitivities;
Whereas projects which are of fundamental
importance for the security of the Community's
hydrocarbons supplies and which relate to
technological development activities directly
connected with exploration, production, storage or
transportation activities could qualify for such
support; whereas this support should be financial in
character;
Whereas the specifically international character of the
structure and activities of the undertakings operating
in the hydrocarbons sector justifies direct transmission
of the project dossiers to the Commission;
Whereas an advisory committee made up of rep-
resentatives from the Member States can assist the
Commission in the selection of the projects to which
support is to be granted;
Whereas the granting by the Community of the
advantages envisaged must not affect the conditions
of competition in a manner incompatible with the
relevant provisions of the Treaty;
Whereas the Community must have at its disposal
every appropriate means of assessing, case by case,
the likely benefits of such projects and their
compatibility with the objectives of Community
energy policy;
Whereas, to this end, those benefiting should take on
obligations towards the Community in return for the
advantages which they are to be granted;
Whereas the Commission has evaluated the
programme which was set up and has been
6.12.84 Official Journal of the European Communities No C 325/7
implemented since 1974 under Regulation (EEC) No
3056/73 in reports which it has submitted to the
Council and the European Parliament on the
application of that Regulation; whereas this
evaluation has shown that the programme should be
continued and adapted in the light of the experience
gained; whereas this adaptation concerns essentially
the duration of the programme, the decision-making
process, the definition of priority objectives and the
procedure for implementing the programme;
Whereas the Treaty does not provide the powers
necessary for this purpose,
HAS ADOPTED THIS REGULATION:
Article 1
The Community may grant financial support for the
carrying out of projects in the areas defined in Article
2 which are of fundamental importance for the
security of its hydrocarbons supplies.
Article 2
1. For the purposes of this Regulation,
'technological development projects in the hydro-
carbons sector' (hereinafter referred to as 'projects')
means projects relating to exploration, production,
storage or transportation activities in the hydro-
carbons sector which satisfy the following conditions:
— they develop innovatory techniques, processes or
products or exploit a new application of
techniques, processes or products whose research
stage is completed,
— they offer prospects of industrial and commercial
viability,
— they present difficulties with regard to finance
because of the considerable technical and
economic risks involved, to the extent that they
would very probably not be carried out without
Community financial support.
2. The prospects may be carried out within or
outside the territory of the Community.
3. Financial support may be granted for a project
as a whole or for the various stages of a project.
Article 3
All projects shall be the responsibility of a natural
person or a legal person constituted in accordance
with the laws of the Member States.
If the creation of a legal entity with the legal capacity
to carry out a project involves additional costs for the
participating undertakings, the project may be carried
out simply on the basis of cooperation between
natural or legal persons. In that case, such persons
shall be jointly and severally liable for the obligations
resulting from Community support.
Article 4
1. Support for a project shall take the form of a
Community financial contribution, granted under the
conditions laid down in Articles 4 (2) and (3), 5, 6
and 7.
2. Support shall not exceed 49 % of the eligible
cost of the project. When determining the amount of
support to be granted, the Commission shall take into
account other financial aid for the project received or
expected from Community, national or other sources
and the share of the risk borne directly by those
responsible for the project.
3. The level of support shall be determined for
each project individually, in accordance with the
procedure laid down in Article 5.
Article 5
1. Every project submitted by individuals or under-
takings in the Community following an invitation to
submit projects published in the Official Journal of the
European Communities shall be examined by the
Commission on the basis of the following information
to be provided by the applicants:
— a detailed description of the project, including the
organization of its management,
— the importance of the project for the security of
the Community's hydrocarbons supplies,
— the nature and extent of the technical and
economic risks inherent in the project,
— the cost of the project, its expected profitability
and the financing arrangements proposed,
— the time-scale for carrying out the project,
— the financial situation and technical capabilities of
the person or persons responsible for the project,
— details of any form of cooperation envisaged with
other undertakings in the Community or non-
member countries,
— details of any financial aid which the project has
received at an earlier stage of research and
development from the Community or the Member
States,
No C 325/8 Official Journal of the European Communities 6.12.84
— details of any other measure of financial support,
adopted or expected from the Member States or
the Community,
— an assessment of any possible impact on the safety
of persons and on the environment,
— any other factor which may justify the
Community support requested.
2. The Commission shall decide whether to grant
support for projects after consulting an advisory
committee made up of representatives from the
Member States.
The committee, chaired by a representative of the
Commission, shall draw up its rules of procedure.
3. As a general rule, preference shall be given to
those projects involving the association of at least two
independent companies which are not established in
the same Member State.
Article 6
The support granted by the Community must not
affect the conditions of competition in a manner
incompatible with the relevant provisions of the
Treaty.
Article 7
1. The Commission shall negotiate and conclude
the contracts necessary for the execution of projects
selected in accordance with the procedure laid down
in Article 5 (2). To that end, it shall draw up a model
contract setting forth the rights and obligations of
each party and in particular the procedures for any
repayment of financial support granted and for access
to and dissemination, as well as utilization, of
knowledge.
2. The person or persons responsible for executing
a project in receipt of Community support shall send
the Commission every six months or at its request a
report on the fulfilment of contractual obligations
towards the Commission and in particular on the
progress of work on the project and the expenditure
incurred in carrying it out.
3. The Commission may have checks carried out
on the spot and on the basis of documents enabling it
to monitor the performance of the contract and in
particular the progress and execution of the project.
Throughout the duration of the work and during the
five years following its completion, the Commission
and the Court of Auditors, or their representatives,
shall have access to the accounts relating to the
project for which support has been granted.
Documents relating to the projects must be preserved
during the same period.
4. Where the extent of Community financial
support and the size of the project so warrant, the
Commission may participate as an observer in
meetings of the bodies responsible for the
management of projects, if the contract so provides.
Article 8
The information gathered pursuant to this Regulation
shall be confidential.
Article 9
A regular report shall be made by the Commission to
the Council and to the European Parliament on the
application of this Regulation.
Article 10
The appropriations allocated as financial support
pursuant to this Regulation shall be entered in the
general budget of the European Communities.
The total amount of appropriations which is regarded
as necessary for the period 1 January 1985 to 31
December 1989 pursuant to this Regulation is 200
million ECU.
Article 11
Regulation (EEC) No 3056/73 is hereby repealed.
However, Regulation (EEC) No 3056/73 shall
continue to apply in respect of projects submitted in
response to invitations to submit projects published
pursuant to that Regulation.
Article 12
This Regulation shall enter into force on the day
following its publication in the Official Journal of the
European Communities.
It shall apply until 31 December 1989.
This Regulation shall be binding in its entirety and
directly applicable in all Member States.
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