1. UK-Norway Implementation Group 24 th January 2003 UK Consultation Group

2. R5) In parallel with the new Treaty, create a set of guidelines, which will set out in practice how the articles of both the new and existing Treaties will apply R9) Establish a mechanism to manage efficiently the UK and Norwegian environmental impact assessment and approval processes as they affect cross-border developments Treaty Recommendations

3. Support DTI and MPE on developing guidelines on existing Treaties and any new Framework Treaty (R5) within the context of best available commercial solution (R3) Report progress on Treaty and Guideline development to the Implementation Group Deliver recommendations on environmental assessment and approval processes (R9) Principal Objectives

4. Working Principles Recognise primacy of Governments on Treaty matters Inclusive of all relevant stakeholders UK & Norway Consultation Groups initially work independently, but work together as necessary on common issues Supportive of any timeframe mutually agreed by Governments Maintain close links with Gas Infrastructure Work Group and other Work Groups where Treaty issues arise Draw on existing Industry expertise (e.g. UKOOA Fiscal & Gas Groups)

5. Original UK T&I Theme Group met Sep and Nov 02 to progress recommendations UK Consultative Group formally convened and met Dec 02 Joint terms of reference agreed with Norway CG DTI identified key issues around the new Treaty, on which Industry views have been given DTI clarification received on issues raised by industry Assembling industry views on jurisdiction issues for the complete range of cross-border pipelines and field connections Progress to date

6. Next Steps Continue to work with DTI on Treaty jurisdiction and commercial issues building on the scenarios proposed by DTI and Industry (ongoing) Fourth meeting of UK CG - 7 th Feb 03 Joint meeting of UK & Norway CGs - 7 th Feb 03 Agree schedule of work consistent with timeframe for Government-to- Government negotiations Execute work plan (1H03)