Part 2: Further functions of the OGA relating to offshore petroleum Sanction notices Section 45: Amount of financial penalty
Section 45 places restrictions upon the maximum amount of a financial penalty that can be imposed by the OGA. No financial penalty may exceed £1 million per breach of a petroleum-related requirement, including in cases where a penalty is imposed on more than one person.
	The OGA is required to publish guidance as to the matters to which it will have regard when determining the amount of a financial penalty. The OGA is required to have regard to this guidance when determining a financial penalty.
	The OGA can review and update its guidance periodically. Before giving or revising any guidance, the OGA is required to carry out consultation with such persons as it considers appropriate. This will include the UK petroleum industry.
	Subsection (7) gives the Secretary of State the power, by regulations to amend the maximum cap on a financial penalty to any amount up to a maximum of £5 million per breach. This is intended to allow a degree of flexibility if, in future, it is deemed that a £1 million cap is not sufficient to ensure compliance with the petroleum-related requirements. Regulations made under this subsection are subject to the affirmative resolution procedure (see section 82(4)(b)).