§ [Nos. 11 and 12]
§
Page 20, line 13, leave out from beginning to ("payments") in line 17 and insert ("so as to secure to the owner recovery of an
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equitable proportion of the relevant capital and operating costs of the pipe-line;
(d) for securing to the applicant the right to have a pipe and apparatus of his connected to the pipe-line by the applicant or the owner;
and such a notice may also authorise the owner to recover from the applicant reasonable commercial").
§ The Commons disagreed to this Amendment for the following Reason:
§ Because it is desirable for the terms on which pipe-lines are used by persons other titan the owners to take account of the different circumstances of each case.
§ Lord BALOGHMy Lords, I beg to move that this House doth not insist on their Amendment No. 11 to which the Commons have disagreed for the Reason numbered 12. We have discussed this question of charges for third party use extensively in this House, and the Under-Secretary has again explained our position in another place.
We regard the power to determine charges as a long-stop. We shall be only too pleased when the parties agree among themselves. Where it is necessary for the Secretary of State to intervene, there is a guarantee for the owner that he will at least be no worse off financially than if the third party was not admitted. Except where a field is marginal, or other sufficient arrangements have been made, the terms fixed for third party use will normally take account of the basic capital costs of the pipe-line. The third party will always pay a fair share of the running costs. Moreover, we must have regard to the owner's likely as well as present needs in deciding whether to admit a third party. Inasmuch as noble Lords opposite have been insisting, very rightly, on the need for exploiting marginal fields, it seems to me that it would be illogical if they insisted on this Amendment. I beg to move.
§ Moved, That this House doth not insist on their Amendment No. 11 to which the Commons have disagreed for the Reason numbered 12.—(Lord Balogh.)