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PETROLEUM AND NATURAL GAS REGULATORY BOARD ACT 2006

THE PETROLEUM AND NATURAL GAS REGULATORY BOARD ACT, 2006
NO. 19 OF 2006
[31st March, 2006.]
An Act to provide for the establishment of Petroleum and Natural Gas
Regulatory Board to regulate
the refining, processing, storage,
transportation, distribution, marketing and sale of petroleum,
petroleum products and natural
gas excluding production of crude oil
and natural gas so as to protect the interests of consumers and
entities engaged in specified
activities relating to petroleum,
petroleum products and natural gas and to ensure uninterrupted and
adequate supply of petroleum,
petroleum products and natural gas in
all parts of the country and to promote competitive markets and for
matters connected therewith
or incidental thereto.
BE it enacted by Parliament in the Fifty-seventh Year of the Republic
of India as follows:-
CHAPTER I
PRELIMINARY
1.
Short title, extent, commencement and application.
1. Short title, extent, commencement and application.-(1) This Act
may be called
the Petroleum and Natural Gas Regulatory Board Act,
2006.
(2) It extends to the whole of India.
(3) It shall come into force on such date as the Central Government
may, by notification in
the Official Gazette, appoint:
Provided that different dates may be appointed for different
provisions of this Act and any reference
in any such provision to the
commencement of this Act shall be construed as a reference to the
coming into force of that provision.
(4) It applies to refining, processing, storage, transportation,
distribution, marketing and sale of petroleum, petroleum products
and
natural gas excluding production of crude oil and natural gas.
2.
Definitions.
2. Definitions.-In this Act, unless the context
otherwise requires,-
(a) "affiliate code of conduct" means the code of conduct governing
entities engaged in storage, transmission,
distribution, marketing
and sale of natural gas under sub-section (1) of section 21;
(b) "Appellate Tribunal" means the Appellate
Tribunal referred to in
section 30;
(c) "appointed day" means the date on which the Board is established
under sub-section (1) of
section 3;
(d) "authorised entity" means an entity-
(A) registrered by the Board under section 15 -
(i) to market any notified petroleum,
petroleum products or natural
gas, or
(ii) to establish and operate liquefied natural gas terminals, or
(B) authorised by the Board
under section 16 -
(i) to lay, build, operate or expand a common carrier or contract
carrier, or
(ii) to lay, build, operate or expand
a city or local natural gas
distribution network;
(e) "auto liquefied petroleum gas" means a mixture of certain light
hydrocarbons
derived from petroleum, which are gaseous at normal
ambient temperature and atmospheric pressure but may be condensed to
the liquid
state at normal ambient temperature by the application of
moderate pressure, and which conform to such specifications for use
as
fuel in vehicles, as the Central Government may, in consultation
with the Bureau of Indian Standards, notify from time to time;
(f)
''Board" means the Petroleum and Natural Gas Regulatory Board
established under sub-section (1) of section 3;
(g) "Bureau of Indian
Standards" means the Bureau of Indian Standards
established under section 3 of the Bureau of Indian Standards Act,
1986 (63 of 1986);
(h) "Chairperson" means the Chairperson of the Board appointed under
sub-section (1) of section 4;
(i) "city or local natural gas
distribution network" means an inter-
connected network of gas pipelines and the associated equipment used
for transporting natural
gas from a bulk supply high pressure
transmission main to the medium pressure distribution grid and
subsequently to the service pipes
supplying natural gas to domestic,
industrial or commercial premises and CNG stations situated in a
specified geographical area.
Explanation.-For the purposes of this clause, the expressions "high
pressure" and "medium pressure" shall mean such pressure as the
Central Government may, by notification, specify to be high pressure
or, as the case may be, medium pressure;
(j) "common carrier"
means such pipelines for transportation of
petroleum, petroleum products and natural gas by more than one entity
as the Board may
declare or authorise from time to time on a non-
discriminatory open access basis under sub-section (3) of section 20,
but does not
include pipelines laid to supply-
(i) petroleum products or natural gas to a specific consumer; or
(ii) crude oil;
Explanation.-
For the purposes of this clause, a contract carrier
shall be treated as a common carrier, if -
(i) such contract carrier has surplus
capacity over and above the
firm contracts entered into; or
(ii) the firm contract period has expired.
(k) "CNG station" means filling
station where one or more dispensing
units are provided for sale of compressed natural gas;
(l) "compressed natural gas or CNG" means
natural gas used as fuel
for vehicles, typically compressed to the pressure ranging from 200
to 250 bars in the gaseous state;
(m)
"contract carrier" means such pipelines for transportation of
petroleum, petroleum products and natural gas by more than one entity
pursuant to firm contracts for at least
one year as may be declared
or authorised by the Board from time to time under sub-section (3) of
section 20;
(n) "dealer" means
a person, association of persons, firm, company or
co-operative society, by whatsoever name called or referred to, and
appointed
by an oil company to purchase, receive, store and sell
motor spirit, high speed diesel, superior kerosene oil, auto
liquefied petroleum
gas or natural gas;
(o) "distributor" means a person, association of persons, firm,
company or co-operative society, by whatsoever
name called or
referred to, and appointed by an oil company to purchase, receive,
store and sell to consumers liquefied petroleum
gas in cylinders;
(p) "entity" means a person, association of persons, firm, company or
co-operative society, by whatsoever name
called or referred to, other
than a dealer or distributor, and engaged or intending to be engaged
in refining, processing, storage,
transportation, distribution,
marketing, import and export of petroleum, petroleum products and
natural gas including laying of pipelines
for transportation of
petroleum, petroleum products and natural gas, or laying, building,
operating or expanding city or local natural
gas distribution network
or establishing and operating a liquefied natural gas terminal;
(q) "exchange of products" shall mean giving
and receiving of a
petroleum product in accordance with an agreement entered into by the
concerned entities;
(r) "high speed diesel"
means any hydrocarbon oil (excluding mineral
colza oil and turpentine substitute), which conforms to such
specifications for use
as fuel in compression ignition engines, as
the Central Government may, in consultation with the Bureau of Indian
Standards, notify
from time to time;
(s) "kerosene or superior kerosene oil" means a middle distillate
mixture of hydrocarbons which conforms to such
specifications, as the
Central Government may, in consultation with the Bureau of Indian
Standards, notify from time to time;
(t)
"liquefied natural gas terminal" means the facilities and
infrastructure
required to-
(i) receive liquefied natural gas;
(ii) store
liquefied natural gas;
(iii) enable regasification of liquefied natural gas; and
(iv) transport regasified liquefied natural gas
till the outside
boundaries of the facility;
(u) "liquefied petroleum gas" means a mixture of light hydrocarbons
containing propane,
isobutane, normal butane, butylenes, or such
other substance which is gaseous at normal ambient temperature and
atmospheric pressure
but may be condensed to liquid state at normal
ambient temperature by the application of pressure and conforms to
such specifications,
as the Central Government may, in consultation
with the Bureau of Indian Standards, notify from time to time;
(v) "local distribution
entity" means an entity authorised by the
Board under section 20 to lay, build, operate or expand a city or
local natural gas distribution
network;
(w) "marketing service obligations" means obligations-
(i) to set up marketing infrastructure and retail outlets in remote
areas in respect of notified petroleum and petroleum products;
(ii) to maintain minimum stock of notified petroleum and petroleum
products;
(iii) of a local distribution entity to supply natural gas to
consumers; and
(iv) such other obligations as may be specified
by regulations;
(x) "maximum retail price" means the maximum price fixed by an entity
at which the petroleum, petroleum products
and natural gas may be
sold to the retail consumers and includes all taxes, cess and levies,
local or otherwise and freight or commission
payable to the dealers;
(y) "member" means a member of the Board appointed under sub-section
(1) of section 4 and includes the Member
(Legal) and the Chairperson;
(z) "motor spirit" means any hydrocarbon oil (excluding crude mineral
oil) used as fuel in spark ignition
engines which conforms to such
specifications, as the Central Government may, in consultation with
the Bureau of Indian Standards, notify from time
to time;
(za) "natural gas" means gas obtained from bore-holes and consisting
primarily of hydrocarbons and includes-
(i) gas in
liquid state, namely, liquefied natural gas and
regasified liquefied natural gas,
(ii) compressed natural gas,
(iii) gas imported
through transnational pipe lines, including CNG or
liquefied natural gas,
(iv) gas recovered from gas hydrates as natural gas,
(v)
methane obtained from coal seams, namely, coal bed methane,
but does not include helium occurring in association with such
hydrocarbons;
(zb) "notification" means a notification published in the Official
Gazette and the expression "notified" with its cognate meanings
and
grammatical variations, shall be construed accordingly;
(zc) "notified petroleum, petroleum products and natural gas" means
such
petroleum, petroleum products and natural gas as the Central
Government may notify from time to time, after being satisfied that
it is necessary or expedient so to do for maintaining or increasing
their supplies or for securing their equitable distribution or
ensuring adequate availability;
(zd) "oil company" means a company registered under the Companies
Act, 1956 and includes an association of persons, society or firm, by
whatsoever name called or referred to, for carrying out an activity
relating
to petroleum, petroleum products and natural gas;
(ze) "petroleum" means any liquid hydrocarbon or mixture of
hydrocarbons, and any
inflammable mixture (liquid, viscous or solid)
containing any liquid hydrocarbon, including crude oil and liquefied
petroleum gas,
and the expression 'petroleum product' shall mean any
product manufactured from petroleum;
(zf) "pipeline access code" means the
code to establish a framework
for third party access to pipelines under sub-clause (i) of clause
(e) of section 11;
(zg) "prescribed"
means prescribed by rules made by the Central
Government under this Act;
(zh) "regulations" means regulations made by the Board under
this
Act;
(zi) "restrictive trade practice" means a trade practice which has,
or may have, the effect of preventing, distorting or
restricting
competition in any manner and in particular,-
(i) which tends to obstruct the flow of capital or resources into the
stream
of production, or
(ii) which tends to bring about manipulation of prices, or conditions
of delivery or to affect the flow of supplies
in the market relating
to petroleum, petroleum products or natural gas or services in such
manner as to impose on the consumers unjustified
costs or
restrictions;
(zj) "retail outlet" means filling station where one or more
dispensing pumps have been provided for sale
of motor spirit, high
speed diesel, auto-liquefied petroleum gas or natural gas and
includes distributorship for liquefied petroleum
gas or dealership
for superior kerosene oil or CNG stations;
(zk) "retail service obligations" means obligations of dealers and
distributors
for maintaining supplies to consumers throughout the
specified working hours and of specified quality, quantity and
display of maximum
retail price of notified petroleum, petroleum
products and natural gas including CNG and such other obligations, as
may be specified
by regulations;
(zl) "rules" means rules made by the Central Government under this
Act;
(zm) "Secretary" means the Secretary of the
Board;
(zn) "transportation rate", in relation to common carrier or contract
carrier or a city or local natural gas distribution
network, means
such rate for moving each unit of petroleum, petroleum products or
natural gas as may be fixed by regulations.
CHAPTER
II
PETROLEUM AND NATURAL GAS REGULATORY BOARD
CHAPTER II
PETROLEUM AND NATURAL GAS REGULATORY BOARD
.
.
3. Establishment and incorporation
of the Board.-(1) With effect from
such date as the Central Government may, by notification, appoint,
there shall be established,
for the purposes of this Act, a Board to
be called the Petroleum and Natural Gas Regulatory Board.
(2) The Board shall be a body
corporate by the name aforesaid, having
perpetual succession and a common seal, with power, subject to the
provisions of this Act,
to acquire, hold and dispose of property,
both movable and immovable, and to contract, and shall, by the said
name, sue or be sued.
(3) The Board shall consist of a Chairperson, a Member (Legal) and
three other members to be appointed by the Central Government.
(4) The head office of the Board shall be at New Delhi and regional
offices at such places as the Board may deem necessary having
regard
to public interest and magnitude of the work.
4.
Qualifications for appointment of Chairperson and other members.
4. Qualifications
for appointment of Chairperson and other members.-
(1) The Central Government shall appoint the Chairperson and other
members of
the Board from amongst persons of eminence in the fields
of petroleum and natural gas industry, management, finance, law,
administration
or consumer affairs:
Provided that no person shall be appointed as Member (Legal) unless
he-
(a) is qualified to be a Judge of a
High Court; or
(b) has been a member of the Indian Legal Service and has held a post
in
Grade I of that Service for at least three
years.
(2) The Central Government shall, for the purposes of selecting the
Chairperson and after members of the Board and for preparing a
panel
of persons to be considered for appointment as the Technical Member
(Petroleum and Natural Gas) of the Appellate Tribunal,
constitute a
Search Committee consisting of-
(i) Member, Planning Commission in charge of the energy sector -
Chairperson;
(ii) Secretary
to the Government of India, Ministry of Petroleum and
Natural
Gas - Member;
(iii) Secretary to the Government of India, Ministry
of Finance,
Department of Economic Affairs - Member;
(iv) Secretary to the Government of India in charge of Commerce,
Ministry of
Commerce and Industry - Member; and
(v) Secretary to the Government of India, Department of Legal
Affairs, Ministry of Law and Justice
- Member.
5.
Term of office, conditions of service, etc. of Chairperson and other
members.
5. Term of office, conditions of service,
etc. of Chairperson and
other members.-(1) Before appointing any person as the Chairperson or
other member, the Central Government
shall satisfy itself that such
person does not have any financial or other interest which is likely
to affect prejudicially his functions
as Chairperson or such other
member.
(2) The Chairperson and other members shall hold office for a term of
five years from the date
on which they enter upon their offices or
until they attain the age of sixty-five years, whichever is earlier:
Provided that the
Chairperson and other members shall not be eligible
for re-appointment.
Explanation.-For the purposes of this section, appointment
of a
member as Chairperson shall not be deemed to be re-appointment.
(3) A person in the service of the Central Government, a State
Government or an undertaking, corporation or company owned or
controlled by the Central Government or a State Government or from
any other non-Governmental or corporate body shall resign or retire
from such service before joining as the Chairperson or other
member,
as the case may be.
(4) The salaries and allowances payable to and the other terms and
conditions of service of the Chairperson
and the other members shall
be such as may be prescribed:
Provided that neither the salary and allowances nor the other terms
and
conditions of service of the Chairperson or any other member
shall be varied to his disadvantage after appointment.
(5) The Chairperson
or other member may resign his office by giving
notice thereof in writing to the Central Government and on such
resignation being
accepted, the Chairperson or such other member
shall be deemed to have vacated his office.
(6) The Chairperson or any other member,
upon ceasing to hold office
as such, shall-
(a) be ineligible for further employment under the Central Government
or any State Government;
and
(b) not accept any commercial employment for a period of two years
from the date he ceases to hold such office.
Explanation.-For
the purposes of this section, "commercial
employment" means employment in any capacity under, or agency of, a
person engaged in trading,
commercial, industrial or financial
business in any field and includes also a director of a company or
partner of a firm or setting
up practice either independently or as
partner of a firm or as an advisor or a consultant.
6.
Powers of Chairperson.
6. Powers of
Chairperson.-The Chairperson shall have the powers of
general superintendence and directions in the conduct of the affairs
of the
Board and shall, in addition to presiding over the meetings of
the Board, exercise and discharge such other powers and functions
of
the Board, as may be assigned to him by the Board.
7.
Removal of Chairperson or any other member from office.
7. Removal of Chairperson
or any other member from office.-The
Central Government may remove from office the Chairperson or any
other member, who-
(a) has
been adjudged as insolvent; or
(b) has been convicted of an offence which, in the opinion of the
Central Government, involves moral
turpitude; or
(c) has become physically or mentally incapable of acting as a
member; or
(d) has acquired such financial or other interest as is likely to
affect
prejudicially his functions as a member; or
(e) has so abused his position as to render his continuance in office
prejudicial to
the public interest:
Provided that no Chairperson or other member shall be removed from
office under clause (d) or clause (e) unless
the Central Government,
after holding an inquiry by any person appointed or authority
constituted for the purpose and in accordance
with such procedure as
may be prescribed in this behalf, is satisfied that such person ought
on such ground or grounds to be removed.
8.
Meetings of the Board.
8. Meetings of the Board.-(1) The Board shall meet at such times and
places, and shall observe such procedure
in regard to the transaction
of business at its meetings (including the quorum at such meetings)
as may be provided by regulations.
(2) The Chairperson or, if he is unable to attend a meeting of the
Board, the senior-most member present, reckoned from the date
of
appointment to the Board, shall preside at the meeting:
Provided that in case of common date of appointment of members, the
member
senior in age shall be considered as senior to the other
members.
(3) All questions which come up before any meeting of the Board
shall
be decided by a majority of the members present and voting, and in
the event of an equality of votes, the Chairperson or in
his absence,
the person presiding shall have a second or casting vote.
(4) All orders and decisions of the Board shall be authenticated
by
the Secretary or any other officer of the Board duly authorised by
the Chairperson in this behalf.
9.
Vacancies, etc., not to
invalidate proceedings of the Board.
9. Vacancies, etc., not to invalidate proceedings of the Board.-No
act or proceeding of the
Board shall be invalid merely by reason of-
(a) any vacancy in, or any defect in the constitution of, the Board;
or
(b) any defect
in the appointment of a person acting as a member of
the Board; or
(c) any irregularity in the procedure of the Board not affecting
the
merits of the case.
10.
Officers and other employees of the Board.
10. Officers and other employees of the Board.-(1) The Central
Government may, in consultation with the Board, appoint a Secretary
to exercise and perform such powers and duties, under the control
of
the Chairperson as may be specified by regulations:
Provided that no such consultation shall be necessary for appointment
of the
first Secretary of the Board.
(2) The Board may, with the approval of the Central Government,
determine the number, nature and categories
of other officers and
employees required to assist the Board in the efficient discharge of
its functions.
(3) The salaries and allowances
payable to and the other terms and
conditions of service of the Secretary, the other officers and
employees of the Board shall be
such as may be prescribed.
(4) The Board may appoint consultants required to assist in the
discharge of its functions on such terms
and conditions as may be
determined by regulations.
CHAPTER III
FUNCTIONS AND POWERS OF THE BOARD
CHAPTER III
FUNCTIONS AND POWERS
OF THE BOARD
11.
Functions of the Board.
11. Functions of the Board.-The Board shall-
(a) protect the interest of consumers by fostering
fair trade and
competition amongst the entities;
(b) register entities to-
(i) market notified petroleum and petroleum products and,
subject to
the contractual obligations of the Central Government, natural gas;
(ii) establish and operate liquefied natural gas terminals;
(iii) establish storage facilities for petroleum, petroleum products
or natural gas exceeding such capacity as may be specified by
regulations;
(c) authorise entities to-
(i) lay, build, operate or expand a common carrier or contract
carrier;
(ii) lay, build,
operate or expand city or local natural gas
distribution network;
(d) declare pipelines as common carrier or contract carrier;
(e)
regulate, by regulations,-
(i) access to common carrier or contract carrier so as to ensure fair
trade and competition amongst entities and for that
purpose specify
pipeline access code;
(ii) transportation rates for common carrier or contract carrier;
(iii) access to city or local
natural gas distribution network so as
to ensure fair trade and competition amongst entities as per pipeline
access code;
(f) in
respect of notified petroleum, petroleum products and natural
gas-
(i) ensure adequate availability;
(ii) ensure display of information
about the maximum retail prices
fixed by the entity for consumers at retail outlets;
(iii) monitor prices and take corrective measures
to prevent
restrictive trade practice by the entities;
(iv) secure equitable distribution for petroleum and petroleum
products;
(v)
provide, by regulations, and enforce, retail service obligations
for retail outlets and marketing service obligations for entities;
(vi) monitor transportation rates and take corrective action to
prevent restrictive trade practice by the entities;
(g) levy fees
and other charges as determined by regulations;
(h) maintain a data bank of information on activities relating to
petroleum, petroleum
products and natural gas;
(i) lay down, by regulations, the technical standards and
specifications including safety standards in
activities relating to
petroleum, petroleum products and natural gas, including the
construction and operation of pipeline and infrastructure
projects
related to downstream petroleum and natural gas sector;
(j) perform such other functions as may be entrusted to it by the
Central Government to carry out the provisions of this Act.
12.
Powers regarding complaints and resolutions of disputes by the Board.
12. Powers regarding complaints and resolutions of disputes by the
Board.-(1) The Board shall have jurisdiction to-
(a) adjudicate
upon and decide any dispute or matter arising amongst
entities or between an entity and any other person on issues relating
to refining,
processing, storage, transportation, distribution,
marketing and sale of petroleum, petroleum products and natural gas
according
to the provisions of Chapter V, unless the parties have
agreed for arbitration;
(b) receive any complaint from any person and conduct
any inquiry and
investigation connected with the activities relating to petroleum,
petroleum products and natural gas on contravention
of-
(i) retail service obligations;
(ii) marketing service obligations;
(iii) display of retail price at retail outlets;
(iv) terms
and conditions subject to which a pipeline has been
declared as common carrier or contract carrier or access for other
entities was
allowed to a city or local natural gas distribution
network, or authorisation has been granted to an entity for laying,
building,
expanding or operating a pipeline as common carrier or
contract carrier or authorisation has been granted to an entity for
laying,
building, expanding or operating a city or local natural gas
distribution network;
(v) any other provision of this Act or the rules
or the regulations
or orders made thereunder.
(2) While deciding a complaint under sub-section (1), the Board may
pass such orders
and issue such directions as it deems fit or refer
the matter for investigation according to the provisions of Chapter
V.
13.
Procedure
of the Board.
13. Procedure of the Board.-(1) The Board shall have, for the
purposes of discharging its functions under this Act,
the same powers
as are vested in a civil court under the Code of Civil Procedure,
1908 (5 of 1908), while trying a suit, in respect
of the following
matters, namely:-
(a) summoning and enforcing the attendance of any person and
examining him on oath;
(b) subject
to the provisions of sections 123 and 124 of the Indian
Evidence Act, 1872 (1 of 1872), requisitioning any public record or
document or a copy of such record or document, from any office and
production of
such documents;
(c) receiving evidence on affidavits;
(d) issuing commissions for the examination of witnesses or
documents;
(e)
dismissing an application for default or deciding it, ex parte;
(f) setting aside any order of dismissal of any application for
default
or any order passed by it, ex parte;
(g) granting interim relief;
(h) reviewing its decision; and
(i) any other matter which may
be prescribed.
(2) Every proceeding before the Board shall be deemed to be a
judicial proceeding within the meaning of sections 193
and 228, and
for the purposes of section 196, of the Indian Penal Code (45 of
1860) and the Board shall be deemed to be a civil court
for the
purposes of section 195 and Chapter XXVI of the Code of Criminal
Procedure, 1973 (2 of 1974).
(3) The Board shall be guided
by the principles of natural justice
and subject to other provisions of this Act and of any rules made
thereunder, shall have powers
to regulate its own procedure including
the places at which it shall conduct its business.
CHAPTER IV
REGISTRATION AND AUTHORISATION
CHAPTER IV
REGISTRATION AND AUTHORISATION
14.
Register.
14. Register.-(1) For the purposes of this Act, a register to be
called the
Petroleum and Natural Gas Register shall be kept at the
head office of the Board containing such details of entities-
(a) registered
for-
(i) marketing notified petroleum, petroleum products or natural gas,
or
(ii) establishing and operating liquefied natural gas
terminals, or
(iii) establishing storage facilities for petroleum, petroleum
products or natural gas exceeding such capacity as may
be specified
by regulations, or
(b) authorised for -
(i) laying, building, operating or expanding a common carrier, or
(ii) laying,
building, operating or expanding a city or local natural
gas distribution network, as may be provided by the Board by
regulations.
(2) A copy of any entry in the register purporting to be maintained
by the Board and certified as such by an officer authorised by
the
Board, shall be admitted in evidence in all courts and in all
proceedings without further proof or production of the original.
(3) The register shall be open to public inspection at the head
office of the Board.
(4) Any person may, on application to the Board,
and on payment of
such fee as may be determined by the Board, by regulations, obtain a
certified copy of any entry in the register.
15.
Registration of entities.
15. Registration of entities.-(1) Every entity desirous of-
(a) marketing any notified petroleum or
petroleum products or natural
gas; or
(b) establishing or operating a liquefied natural gas terminal; or
(c) establishing storage
facilities for petroleum, petroleum products
or natural gas exceeding such capacity as may be specified by
regulations,
and fulfilling
the eligibility conditions as may be prescribed shall
make an application to the Board for its registration under this Act:
Provided
that no registration under this Act shall be required for
any entity carrying on any activity referred to in clause (a) or
clause
(b) or clause (c) immediately before the appointed day but
shall inform the Board about such activity within six months from the
appointed day.
(2) Every application for registration under sub-section (1) shall be
made in such form and in such manner and shall
be accompanied by such
fee as may be determined by the Board by regulations.
(3) The Board may, after making such enquiry and subject
to such
terms and conditions as it may specify, grant a certificate of
registration to the entity allowing to commence and carry
on the
activity referred to in clause (a) or clause (b) or clause (c), as
the case may be, of sub-section (1).
(4) The Board may,
by order, suspend or cancel a certificate of
registration granted under sub-section (3) in such manner as may be
determined by regulations:
Provided that no order under this sub-section shall be made unless
the entity concerned has been given a reasonable opportunity of being
heard.
16.
Authorisation.
16.
Authorisation.-No entity shall-
(a) lay, build, operate or expand any pipeline as a common carrier or
contract carrier,
(b) lay,
build, operate or expand any city or local natural gas
distribution network,
without obtaining authorisation under this Act:
Provided
that an entity,-
(i) laying, building, operating or expanding any pipeline as common
carrier or contract carrier; or
(ii) laying,
building, operating or expanding any city or local
natural gas distribution network,
immediately before the appointed day shall be
deemed to have such
authorisation subject to the provisions of this Chapter, but any
change in the purpose or usage shall require
separate authorisation
granted by the Board.
17.
Application for authorisation.
17. Application for authorisation.-(1) An entity
which is laying,
building, operating or expanding, or which proposes to lay, build,
operate or expand, a pipeline as a common carrier
or contract carrier
shall apply in writing to the Board for obtaining an authorisation
under this Act:
Provided that an entity laying,
building, operating or expanding any
pipeline as common carrier or contract carrier authorised by the
Central Government at any time
before the appointed day shall furnish
the particulars of such activities to the Board within six months
from the appointed day.
(2) An entity which is laying, building, operating or expanding, or
which proposes to lay, build, operate or expand, a city or local
natural gas distribution network shall apply in writing for obtaining
an authorisation under this Act:
Provided that an entity laying,
building, operating or expanding any
city or local natural gas distribution network authorised by the
Central Government at any time
before the appointed day shall furnish
the particulars of such activities to the Board within six months
from the appointed day.
(3) Every application under sub-section (1) or sub-section (2) shall
be made in such form and in such manner and shall be accompanied
with
such fee as the Board may, by regulations, specify.
(4) Subject to the provisions of this Act and consistent with the
norms
and policy guidelines laid down by the Central Government, the
Board may either reject or accept an application made to it, subject
to such amendments or conditions, if any, as it may think fit.
(5) In the case of refusal or conditional acceptance of an
application,
the Board shall record in writing the grounds for such
rejection or conditional acceptance, as the case may be.
18.
Publicity of
applications.
18. Publicity of applications.-When an application for registration
for marketing notified petroleum, petroleum products
and natural gas,
or for establishing and operating a liquefied natural gas terminal,
or for establishing storage facilities for petroleum,
petroleum
products or natural gas exceeding such capacity as may be specified
by regulations, is accepted whether absolutely or subject
to
conditions or limitations, the Board shall, as soon as may be, cause
such acceptance to be known to the public in such form and
manner as
may be provided by regulations.
19.
Grant of authorisation.
19. Grant of authorisation.-(1) When, either on the basis of
an
application for authorisation for laying, building, operating or
expanding a common carrier or contract carrier or for laying,
building, operating or expanding a city or local natural gas
distribution network is received or on suo motu basis, the Board
forms
an opinion that it is necessary or expedient to lay, build,
operate or expand a common carrier or contract carrier between two
specified
points, or to lay, build, operate or expand a city or local
natural gas distribution network in a specified geographic area, the
Board may give wide publicity of its intention to do so and may
invite applications from interested parties to lay, build, operate
or
expand such pipelines or city or local natural gas distribution
network.
(2) The Board may select an entity in an objective and transparent
manner as specified
by regulations for such activities.
20.
Declaring, laying, building, etc., of common carrier or contract
carrier and city or local
natural gas distribution network.
20. Declaring, laying, building, etc., of common carrier or contract
carrier and city or local
natural gas distribution network.-(1) If
the Board is of the opinion that it is necessary or expedient, to
declare an existing pipeline
for transportation of petroleum,
petroleum products and natural gas or an existing city or local
natural gas distribution network,
as a common carrier or contract
carrier or to regulate or allow access to such pipeline or network,
it may give wide publicity of
its intention to do so and invite
objections and suggestions within a specified time from all persons
and entities likely to be affected
by such decision.
(2) For the purposes of sub-section (1), the Board shall provide the
entity owning, the pipeline or network an
opportunity of being heard
and fix the terms and conditions subject to which the pipeline or
network may be declared as a common
carrier or contract carrier and
pass such orders as it deems fit having regard to the public
interest, competitive transportation
rates and right of first use.
(3) The Board may, after following the procedure as specified by
regulations under section 19 and sub-sections
(1) and (2), by
notification,-
(a) declare a pipeline or city or local natural gas distribution
network as a common carrier or contract
carrier; or
(b) authorise an entity to lay, build, operate or expand a pipeline
as a common carrier or contract carrier; or
(c) allow
access to common carrier or contract carrier or city or
local natural gas distribution network; or
(d) authorise an entity to lay,
build, operate or expand a city or
local natural gas distribution network.
(4) The Board may decide on the period of exclusivity
to lay, build,
operate or expand a city or local natural gas distribution network
for such number of years as it may by order, determine
in accordance
with the principles laid down by the regulations made by it, in a
transparent manner while fully protecting the consumer
interests.
(5) For the purposes of this section, the Board shall be guided by
the objectives of promoting competition among entities,
avoiding
infructuous investment, maintaining or increasing supplies or for
securing equitable distribution or ensuring adequate availability
of
petroleum, petroleum products and natural gas throughout the country
and follow such principles as the Board may, by regulations,
determine in carrying out its functions under this section.
21.
Right of first use, etc.
21. Right of first use, etc.-(1) The entity
laying, building,
operating or expanding a pipeline for transportation of petroleum and
petroleum products or laying, building, operating
or expanding a city
or local natural gas distribution network shall have right of first
use for its own requirement and the remaining
capacity shall be used
amongst entities as the Board may, after issuing a declaration under
section 20, determine having regard to
the needs of fair competition
in marketing and availability of petroleum and petroleum products
throughout the country:
Provided
that in case of an entity engaged in both marketing of
natural gas and laying, building, operating or expanding a pipeline
for transportation
of natural gas on common carrier or contract
carrier basis, the Board shall require such entities to comply with
the affiliate code
of conduct as may be specified by regulations and
may require such entity to separate the activities of marketing of
natural gas
and the transportation including ownership of the
pipeline within such period as may be allowed by the Board and only
within the
said period, such entity shall have right of first use.
(2) An entity other than an entity authorised to operate shall pay
transportation rate for use of common carrier or contract carrier to
the entity operating it as an authorised entity.
(3) An entity authorised to
lay, build, operate or expand a pipeline
as common carrier or contract carrier or to lay, build, operate or
expand a city or local
natural gas distribution network shall be
entitled to institute proceedings before the Board to prevent, or to
recover damages for,
the infringement of any right relating to
authorisation.
Explanation.-For the purposes of this sub-section, "infringement of
any
right" means doing of any act by any person which interferes with
common carrier or contract carrier or causes prejudice to the
authorised
entity.
22.
Transportation tariff.
22. Transportation tariff.-(1) Subject to the provisions of this Act,
the Board shall lay down,
by regulations, the transportation tariffs
for common carriers or contract carriers or city or local natural gas
distribution network
and the manner of determining such tariffs.
(2) For the purposes of sub-section (1), the Board shall be guided by
the following,
namely:-
(a) the factors which may encourage competition, efficiency, economic
use of the resources, good performance and optimum
investments;
(b) safeguard the consumer interest and at the same time recovery of
cost of transportation in a reasonable manner;
(c) the principles rewarding efficiency in performance;
(d) the connected infrastructure such as compressors, pumps, metering
units,
storage and the like connected to the common carriers or
contract carriers;
(e) benchmarking against a reference tariff calculated
based on cost
of service, internal rate of return, net present value or alternate
mode of transport;
(f) policy of the Central Government
applicable to common carrier,
contract carrier and city or local distribution natural gas network.
23.
Suspension or cancellation
of authorisation.
23. Suspension or cancellation of authorisation.-If the Board, on an
application of an affected party or on its
own motion, is satisfied
that the entity in favour of which authorisation has been granted
under section 19 has failed to comply
with any conditions of
authorisation, it may, after giving an opportunity to such entity of
being heard, either suspend the authorisation
for such period as the
Board may think fit or cancel the authorisation:
Provided that where the Board is of the opinion that an authorised
entity persistently acts in a manner prejudicial to the interests of
consumers, it may take action for the suspension of the authorisation
immediately subject to the opportunity of hearing being given
subsequently, after which action so taken may be confirmed or
revoked.
CHAPTER V
SETTLEMENT OF DISPUTES
CHAPTER V
SETTLEMENT OF DISPUTES
24.
Board to settle disputes.
24. Board to settle disputes.-(1)
Save as otherwise provided for
arbitration in the relevant agreements between entities or between an
entity or any other person,
as the case may be, if any dispute
arises, in respect of matters referred to in sub-section (2) among
entities or between an entity
and any other person, such dispute
shall be decided by a Bench consisting of the Member (Legal) and one
or more members nominated
by the Chairperson:
Provided that if the members of the Bench differ on any point or
points, they shall state the point or points
on which they differ and
refer the same to a member other than a member of the Bench for
hearing on such point or points and such
point or points shall be
decided according to the opinion of that member.
(2) The Bench constituted under sub-section (1) shall exercise,
on
and from the appointed day, all such jurisdiction, powers and
authority as were exercisable by a civil court on any matter relating
to -
(a) refining, processing, storage, transportation and distribution of
petroleum, petroleum products and natural gas by the entities;
(b) marketing and sale of petroleum, petroleum products and natural
gas including the quality of service and security of supply to
the
consumers by the entities; and
(c) registration or authorisation issued by the Board under section
15 or section 19.
(3) Notwithstanding anything
contained in the Code of Civil
Procedure, 1908 (5 of 1908), the Board shall have the power to decide
matters referred to in sub-section
(2) on or after the appointed day.
25.
Filing of complaints.
25. Filing of complaints.-(1) A complaint may be filed before the
Board
by any person in respect of matters relating to entities or
between entities on any matter arising out of the provisions of this
Act:
Provided that the complaints of individual consumers maintainable
before a consumer disputes redressal forum under the Consumer
Protection Act, 1986 (68 of 1986) shall not be taken up by the Board
but shall be heard and disposed of by such forum.
Explanation.-For the purposes of
this sub-section, the expression
"consumer disputes redressal forum" shall mean the district forum,
State Commission or, the National
Commission, as the case may be,
constituted under the provisions of the Consumer Protection Act, 1986
(68 of 1986).
(2) Every complaint made under sub-section (1) shall be filed within
sixty days from the date on which any act or conduct
constituting a
contravention took place and shall be in such form and shall be
accompanied by such fee as may be provided by regulations:
Provided that the Board may entertain a complaint after the expiry of
the said period if it is satisfied that there was sufficient
cause
for not filing the complaint within that period.
(3) On receipt of a complaint under sub-section (1), the Board shall
decide
within thirty days whether there is a prima facie case against
the entity or entities concerned and may either conduct enquiry on
its own or refer the matter for investigation under this Chapter, to
an Investigating Officer having jurisdiction; and, where the
matter
is referred to such Investigating Officer, on receipt of a report
from such Investigating Officer, the Board may, hear and
dispose of
the complaint as a dispute if it falls under sub-section (2) of
section 27 and in any other case, it may pass such orders
and issue
such directions as it deems fit.
(4) Where the Central Government considers that a matter arising out
of the provisions
of this Act is required to be investigated, it
shall make a reference to the Board and the provisions of this Act
shall apply as
if such reference were a complaint made to the Board.
26.
Power to investigate.
26. Power to investigate.-(1) For the purposes of
provisions of
section 25, the Board shall, subject to the provisions of sub-section
(3), appoint by general or special order, an
officer of the Board as
an Investigating Officer for holding an investigation in the manner
provided by regulations:
Provided that
where the Board considers it necessary that the matter
should be investigated by any investigating agency of the State or
Central
Government including the special police force constituted
under section 2 of the Delhi Special Police Establishment Act, 1946,
the Board may request the concerned Government for directing or
authorising such agency to investigate and the agency so directed
or
authorised shall, then, be competent to exercise the powers and to
discharge the duties of an Investigating Officer under this
Act.
(2) No person shall be appointed as an Investigating Officer unless
he possesses such qualifications and experience as may be
determined
by the Board by regulations.
(3) Where more than one Investigating Officer is appointed, the Board
shall specify, by order,
the matters and the local limits of
jurisdiction with respect to which each such officer shall exercise
his jurisdiction.
27.
Factors
to be taken into account by the Board.
27. Factors to be taken into account by the Board.-The Board shall,
while deciding a dispute
under this Chapter, have due regard to the
provisions of this Act and to the following factors, namely:-
(a) the amount of disproportionate
gain made or unfair advantage
derived, wherever quantifiable, as a result of the default;
(b) the amount of loss caused to an entity
as a result of the
default;
(c) the repetitive nature of the default.
28.
Civil penalty for contravention of directions given by
the Board.
28. Civil penalty for contravention of directions given by the
Board.-In case any complaint is filed before the Board
by any person
or if the Board is satisfied that any person has contravened a
direction issued by the Board under this Act to provide
access to, or
to adhere to the transportation rate in respect of a common carrier,
or to display maximum retail price at retail outlets,
or violates the
terms and conditions subject to which registration or authorisation
has been granted under section 15 or section
19 or the retail service
obligations or marketing service obligations, or does not furnish
information, document, return of report
required by the Board, it
may, after giving such person an opportunity of being heard in the
matter, by order in writing, direct
that, without prejudice to any
other penalty to which he may be liable under this Act, such person
shall pay, by way of civil penalty
an amount which shall not exceed
one crore rupees for each contravention and in case of a continuing
failure with additional penalty
which may extend to ten lakh rupees
for every day during which the failure continues after contravention
of the first such direction:
Provided that in the case of a complaint on restrictive trade
practice, the amount of civil penalty may extend to five times the
unfair gains made by the entity or ten crore rupees, whichever is
higher.
29.
Orders passed by Board deemed to be decrees.
29. Orders
passed by Board deemed to be decrees.-Every order made by
the Board under this Act shall, on a certificate issued by an officer
of
the Board, shall be executable in the same manner as if it were a
decree of a civil court:
Provided that where an appeal lies against
an order of the Board and
no appeal is preferred then the order of the Board shall be deemed to
be a final decree under this section
on the expiry of the period
allowed for preferring an appeal against such order before the
Appellate Tribunal.
CHAPTER VI
APPEALS
TO APPELLATE TRIBUNAL
CHAPTER VI
APPEALS TO APPELLATE TRIBUNAL
30.
Appellate Tribunal.
30. Appellate Tribunal.-(1) Subject to the
provisions of this Act,
the Appellate Tribunal established under section 110 of the
Electricity Act, 2003 (36 of 2003) shall be the
Appellate Tribunal
for the purposes of this Act and the said Appellate Tribunal shall
exercise the jurisdiction, powers and authority
conferred on it by or
under this Act:
Provided that the Technical Member of the Appellate Tribunal for the
purposes of this Act shall
be called the Technical Member (Petroleum
and Natural Gas) and shall have the qualifications specified in sub-
section (2) of section
31.
(2) Notwithstanding anything contained in the Electricity Act, 2003
(36 of 2003), the Central Government may, for the purposes
of this
Act, appoint one or more Technical Members (Petroleum and Natural
Gas) on the Appellate Tribunal for Electricity or designate a
Technical Member of
the said Tribunal having the qualifications
specified in sub-section (2) of section 31 and when a Technical
Member (Petroleum and
Natural Gas) is appointed, he shall be in
addition to the three other members appointed under the said Act.
31.
Technical Member
(Petroleum and Natural Gas).
31. Technical Member (Petroleum and Natural Gas).-(1) The Technical
Member (Petroleum and Natural Gas)
shall be appointed from the panel
prepared by the Search Committee constituted under sub-section (2) of
section 4.
(2) A person shall
not be qualified for appointment as a Technical
Member (Petroleum and Natural Gas) of the Appellate Tribunal unless
he-
(i) is, or
has been, a Secretary for at least one year in the
Ministry or Department of the Central Government having adequate
experience in
energy sector, especially in matters relating to
Petroleum and Natural Gas sector; or
(ii) is, or has been, a person of ability and
standing, having
adequate knowledge or experience in dealing with matters relating to
exploration, production, transmission pipelines,
marketing or
regulation of petroleum, petroleum products or natural gas,
economics, commerce, law or management.
32.
Terms and conditions
of service of Technical Member (Petroleum and
Natural Gas).
32. Terms and conditions of service of Technical Member (Petroleum
and
Natural Gas).-The term of office, the salaries and allowances
payable to and the other terms and conditions of service of the
Technical
Member (Petroleum and Natural Gas) shall be the same as
applicable to the other members of the Appellate Tribunal.
33.
Appeals to
Appellate Tribunal.
33. Appeals to Appellate Tribunal.-(1) Any person aggrieved by an
order or decision made by the Board under this
Act may prefer an
appeal to the Appellate Tribunal:
Provided that any person preferring an appeal against an order or
decision of
the Board levying any penalty shall, while filing the
appeal, deposit the amount of such penalty:
Provided further that where in
any particular case, the Appellate
Tribunal is of the opinion that deposit of such penalty would cause
undue hardship to such person,
it may dispense with such deposit
subject to such conditions as it may deem fit to impose so as to
safeguard the realisation of penalty.
(2) Every appeal under sub-section (1) shall be filed within a period
of thirty days from the date on which a copy of the direction
or
order of decision made by the Board is received by the aggrieved
person and it shall be in such form, verified in such manner
and be
accompanied by such fee as may be prescribed:
Provided that the Appellate Tribunal may entertain an appeal after
the expiry
of the said period of thirty days if it is satisfied that
there was sufficient cause for not filing it within that period.
(3) On
receipt of an appeal under sub-section (1), the Appellate
Tribunal may, after giving the parties an opportunity of being heard,
pass
such orders thereon as it thinks fit.
(4) The Appellate Tribunal shall send a copy of every order made by
it to the parties to the
appeal and to the Board.
(5) The appeal filed under sub-section (1) shall be dealt with by the
Appellate Tribunal as expeditiously
as possible and endeavour shall
be made by it to dispose of the appeal finally within ninety days
from the date of receipt of appeal:
Provided that where any such appeal could not be disposed of within
the said period of ninety days, the Appellate Tribunal shall
record
its reasons in writing for not disposing of the appeal within the
said period.
(6) The Appellate Tribunal may, for the purpose
of examining the
legality or propriety or correctness of any order or decision of the
Board referred to in the appeal filed under
sub-section (1), either
on its own motion or otherwise, call for the records relevant to
disposing of such appeal and make such orders
as it thinks fit.
34.
Procedure and powers of the Appellate Tribunal.
34. Procedure and powers of the Appellate Tribunal.-The provisions of
sections 120 to 124 (both inclusive)
of the Electricity Act, 2003 (36
of 2003) shall mutatis mutandis apply to the Appellate Tribunal in
the discharge of its functions
under this Act as they apply to it in
the discharge of its functions under the Electricity Act, 2003.
35.
Power of Appellate Tribunal
to make rules.
35. Power of Appellate Tribunal to make rules.-The Appellate Tribunal
may, by notification, make rules consistent
with the provisions of
this Act as to the conduct and procedure in respect of all
proceedings before it under this Act.
36.
Orders
passed by Appellate Tribunal to be executable as a decree.
36. Orders passed by Appellate Tribunal to be executable as a
decree.-(1)
Every order made by the Appellate Tribunal under this Act
shall be executable by the Appellate Tribunal as a decree of a civil
court,
and for this purpose, the Appellate Tribunal shall have all
the powers of a civil court.
(2) Notwithstanding anything contained in
sub-section (1), the
Appellate Tribunal may transmit any order made by it to a civil court
having jurisdiction and such civil court
shall execute the order as
if it were a decree made by that court.
37.
Appeal to Supreme Court.
37. Appeal to Supreme Court.-(1)
Notwithstanding anything contained
in the Code of Civil Procedure, 1908 (5 of 1908) or in any other law,
an appeal shall lie against
any order, not being an interlocutory
order, of the Appellate Tribunal to the Supreme Court on one or more
of the grounds specified
in section 100 of that Code.
(2) No appeal shall lie against any decision or order made by the
Appellate Tribunal with the consent
of the parties.
(3) Every appeal under this section shall be preferred within a
period of ninety days from the date of the decision
or order appealed
against:
Provided that the Supreme Court may entertain the appeal after the
expiry of the said period of ninety
days, if it is satisfied that the
appellant was prevented by sufficient cause from preferring the
appeal in time.
CHAPTER VII
FINANCE,
ACCOUNTS AND AUDIT
CHAPTER VII
FINANCE, ACCOUNTS AND AUDIT
38.
Grants by Central Government.
38. Grants by Central Government.-The
Central Government may, after
due appropriation made by Parliament by law in this behalf, make to
the Board grants of such sums of
money as are required to pay
salaries and allowances payable to the Chairperson and the other
members and the administrative expenses
including the salaries,
allowances and pensions payable to the officers and employees of the
Board.
39.
Fund.
39. Fund.-(1) There
shall be constituted a Fund to be called the
Petroleum and Natural Gas Regulatory Board Fund and there shall be
credited thereto-
(i) all grants, fees, penalties and charges received by the Board
under this Act; and
(ii) all sums received by the Board from such
other sources as may be
approved by the Central Government.
(2) The Fund shall be applied for making payments towards-
(i) the salaries
and allowances payable to the Chairperson and other
members and the administrative expenses including the salaries,
allowances and
pensions payable to the officers and employees of the
Board;
(ii) the expenses incurred or to be incurred in carrying out the
provisions
of this Act.
(3) The Central Government shall-
(i) constitute a committee consisting of such persons as it thinks
fit to recommend
to that Government the budgetary requirements of the
Board for salaries, allowances and all other expenses; and
(ii) fix the budgetary
ceiling of the Board on the basis of the
recommendations of the committee.
40.
Accounts and audit.
40. Accounts and audit.-(1) The
Board shall maintain proper accounts
and other relevant records and prepare an annual statement of
accounts in such form as may be
prescribed by the Central Government
in consultation with the Comptroller and Auditor-General of India.
(2) The accounts of the Board
shall be audited by the Comptroller and
Auditor-General of India at such intervals as may be specified by him
and any expenditure incurred in connection with
such audit shall be
payable by the Board to the Comptroller and Auditor-General of India.
Explanation.-For the removal of doubts,
it is hereby declared that
the decisions of the Board taken in the discharge of its functions
under this Act, being matters appealable
to the Appellate Tribunal,
shall not be subject to audit under this section.
(3) The Comptroller and Auditor-General of India or
any other person
appointed by him in connection with the audit of the accounts of the
Board shall have the same rights and privileges
and authority in
connection with the audit of the Government accounts and, in
particular, shall have the right to demand the production
of books,
accounts, connected vouchers and other documents and papers and
inspection of offices of the Board.
(4) The accounts of
the Board as certified by the Comptroller and
Auditor-General of India or any other person appointed by him in this
behalf together
with the audit report thereon shall be forwarded
annually to the Central Government and that Government shall cause
the same to be
laid before each House of Parliament.
41.
Annual report and its laying before Parliament.
41. Annual report and its laying before
Parliament.-(1) The Board
shall prepare once every year in such form and at such time as may be
prescribed, an annual report giving
a summary of its activities
including information relating to the proceedings and policies during
the previous years and such report
shall also contain statements of
annual accounts of the Board.
(2) A copy of the report shall be forwarded to the Central Government
and the Central Government shall cause such report to be laid, as
soon as may be after it is received, before each House of Parliament.
CHAPTER VIII
POWER OF CENTRAL GOVERNMENT
CHAPTER VIII
POWER OF CENTRAL GOVERNMENT
42.
Power of Central Government to issue directions.
42. Power of Central Government to issue directions.-(1) The Central
Government may, from time to time, by writing issue to the Board
such
directions as it may think necessary in the interest of the
sovereignty and integrity of India, the security of the State,
friendly
relations with foreign States or public order.
(2) Without prejudice to the foregoing provision, the Central
Government may, if it
finds necessary or expedient so to do in public
interest or for maintaining or increasing supplies of petroleum,
petroleum products
or natural gas or all or any of them or for
securing their equitable distribution and ensuring adequate
availability, issue policy
directives to the Board in writing and
such policy directives shall be binding upon the Board:
Provided that no such directive shall
relate to any day-to-day
affairs of the Board:
Provided further that the Board shall, as far as practicable, be
given an opportunity
of expressing its views before any directive is
issued under this sub-section.
(3) The decision of the Central Government whether
a question is one
of policy or not shall be final.
43.
Taking over control and management of facilities and business
premises of
any entity and retail outlets in public interest.
43. Taking over control and management of facilities and business
premises of any
entity and retail outlets in public interest.-(1) In
the event of war or natural calamity or such other similar
circumstances leading
to disruption of supply of petroleum, petroleum
products or natural gas, the Central Government may, for ensuring the
continuous
supply of petroleum, petroleum products or natural gas, by
notification, either take over the control and management of any
storage
site, facilities and business premises of any entity and
retail outlets or suspend its operations or entrust, to any agency of
the
Central or State Government for such time and manage it in such
manner, as may be specified in that notification:
Provided that the
affected entities shall be given an opportunity of
being heard before issuing orders to take over the control and
management of retail outlets and other business
premises:
Provided further that in case of any urgency or in cases where the
circumstances do not permit serving of notice for want
of sufficient
time or otherwise upon the entity against whom the order is directed,
the opportunity of hearing may be dispensed with
in public interest
in order to maintain the uninterrupted supply of petroleum, petroleum
products or natural gas for a specified
period.
(2) The collector of the revenue district in which the property
referred to in the notification issued under sub-section
(1) is
situated shall determine the amount of compensation payable for
taking over of the property.
(3) The form and manner in which
an application for claiming
compensation under this section shall be made, the procedure for
determining the compensation and the
time within which such
compensation shall be payable, shall be such as may be prescribed.
CHAPTER IX
OFFENCES AND PUNISHMENT
CHAPTER
IX
OFFENCES AND PUNISHMENT
44.
Punishment for contravention of directions of the Board.
44. Punishment for contravention of directions
of the Board.-If a
person contravenes the directions of the Board, such person shall be
punishable with fine which may extend to
twenty-five crore rupees and
in case of continuing contravention with additional fine which may
extend to ten lakh rupees for every
day during which the
contravention continues.
45.
Penalty for willful failure to comply with orders of Appellate
Tribunal.
45. Penalty
for willful failure to comply with orders of Appellate
Tribunal.-If any person wilfully fails to comply with the order of
the Appellate
Tribunal, he shall be punishable with fine which may
extend to one crore rupees and in case of a second or subsequent
offence with
fine which may extend to two crore rupees and in the
case of continuing contravention with additional fine which may
extend to twenty
lakh rupees for every day during which such default
continues.
46.
Punishment for unauthorized activities.
46. Punishment for unauthorized
activities.-If any person, being an
entity, markets any notified petroleum, petroleum products or natural
gas without a valid registration,
or authorisation such person shall
be punishable with imprisonment which may extend to three years or
with fine which may extend
to twenty-five crore rupees or with both,
and in case of continuing contravention with additional fine which
may extend to ten lakh
rupees for every day during which the
contravention continues.
47.
Punishment for establishing or operating a liquefied natural gas
terminal without registration.
47. Punishment for establishing or operating a liquefied natural gas
terminal without registration.-If
a person establishes or operates a
liquefied natural gas terminal without registration as required under
section 15, such person
shall be liable for punishment with an
imprisonment for a term which may extend to three years or penalty of
twenty-five crore rupees
or with both, and in case of continuing
contravention with additional fine which may extend to ten lakh
rupees for every day during
which the contravention continues.
48.
Punishment for laying, building, operating or expanding a common
carrier or contract carrier
without authorisation.
48. Punishment for laying, building, operating or expanding a common
carrier or contract carrier without authorisation.-If
a person lays,
builds, operates or expands a common carrier or contract carrier or a
city or local natural gas distribution network
without obtaining
authorisation required under section 19, such person shall be liable
for punishment with an imprisonment for a
term which may extend to
three years or penalty of twenty-five crore rupees or with both, and
in case of continuing contravention
with additional fine which may
extend to ten lakh rupees for every day during which the
contravention continues.
49.
Punishment for
willful damages to common carrier or contract carrier.
49. Punishment for willful damages to common carrier or contract
carrier.-Every person
who wilfully removes, destroys or damages any
pipeline or city or local natural gas distribution network or other
work of the common
carrier or contract carrier for supplying
petroleum, petroleum products or natural gas shall for each such
offence be punishable
with imprisonment which may extend to three
years or with fine which may extend to twenty-five crore rupees or
with both, and, in
case of continuing contravention with additional
fine which may extend to ten lakh rupees for every day during which
such contravention
continues.
50.
Offences by companies.
50. Offences by companies.-(1) Where an offence under this Act has
been committed by a company,
every person who at the time the offence
was committed was in charge of, and was responsible to, the company
for the conduct of the
business of the company, as well as the
company, shall be deemed to be guilty of the offence and shall be
liable to be proceeded
against and punished accordingly:
Provided that nothing contained in this sub-section shall render any
such person liable to any
punishment provided in this Act, if he
proves that the offence was committed without his knowledge or that
he has exercised all due
diligence to prevent the commission of such
offence.
(2) Notwithstanding anything contained in sub-section (1), where an
offence
under this Act has been committed by a company and it is
proved that the offence has been committed with the consent or
connivance
of, or is attributable to, any neglect on the part of any
director, manager, secretary or other officer of the company, such
director,
manager, secretary or other officer shall also be deemed to
be guilty of the offence and shall be liable to be proceeded against
and punished accordingly.
Explanation.-For the purpose of this section,-
(a) "company" means any body corporate and includes a firm
or other
association of individuals; and
(b) "director", in relation to a firm, means a partner in the firm.
CHAPTER X
MISCELLANEOUS
CHAPTER X
MISCELLANEOUS
51.
Maintenance of data bank and information.
51. Maintenance of data bank and information.-(1) The Board
shall
maintain a data bank and information system relating to activities of
entities dealing with petroleum, petroleum products and
natural gas
in such form and manner as may be provided by regulations.
(2) The Board shall have power to verify the data supplied
by the
entities and appoint any person or persons for the purpose and take
such measures as it may consider necessary.
52.
Obligations
of entities.
52. Obligations of entities.-(1) Every entity shall-
(a) maintain such documentary records as may be specified by the
Board by regulations;
(b) allow inspection of such facilities and documentary records, as
may be specified by the Board, by any person
authorised by the
Board;
(c) commence operation of activities for which authorisation has been
granted within such period as may
be specified by the Board in the
document of authorisation;
(d) register-
(i) agreements with the Board relating to use of pipelines
for supply
of petroleum, petroleum products and natural gas; or
(ii) any other document which the Board may determine by regulations;
(e) comply with marketing service obligations and retail service
obligations.
(2) The Board may call for any information from any
entity including
information which is considered necessary for ensuring transparency
or ascertaining true ownership of the entity.
(3) The Board or any officer authorised by the Board shall have the
power to inspect and obtain information, wherever necessary,
from the
entities.
(4) For the effective enforcement of the terms and conditions of
authorisation, the Board or any officer authorised
by it for that
purpose, shall have all the powers of an inspecting officer as
provided under section 209A of the Companies Act, 1956 (1 of 1956).
(5) It shall be the duty of every entity to carry out the directions
of the Board given under this section.
(6) The
Board shall maintain confidentiality in respect of any
information and record received by it from the entities and shall not
disclose
information contained therein to any person or authority
except on the grounds of public interest.
53.
Furnishing of returns, etc.,
to Central Government.
53. Furnishing of returns, etc., to Central Government.-The Board
shall furnish to the Central Government
at such time and in such form
and manner as may be prescribed or as the Central Government may
direct, such returns and statements
and such particulars in regard to
any matter in connection with proposed or existing activities under
this Act, as the Central Government
may, from time to time, require.
54.
Chairperson, members, etc., to be public servants.
54. Chairperson, members, etc., to be public
servants.-The
Chairperson, Members, Officers and other employees of the Board and
Technical Member (Petroleum and Natural Gas) of
the Appellate
Tribunal shall be deemed, when acting or purporting to act in
pursuance of any of the provisions of this Act, to be
public servants
within the meaning of section 21 of the Indian Penal Code (45 of
1860).
55.
Protection of action taken in good faith.
55. Protection of action taken in good faith.-No suit, prosecution or
other legal proceeding shall lie against the Central Government,
Board, Technical Authority or Appellate Tribunal or any officer of
the Central Government or any Chairperson, Member, officer or
other
employee of the Board or Technical Member (Petroleum and Natural Gas)
of the Appellate Tribunal for anything which is in good
faith done or
intended to be done under this Act or the rules or regulations made
thereunder.
56.
Civil courts not to have jurisdiction.
56. Civil courts not to have jurisdiction.-No civil court shall have
jurisdiction to entertain any suit or proceeding in respect
of any
matter which the Board or the Appellate Tribunal is empowered by or
under this Act to determine, and no injunction shall be
granted by
any court or other authority in respect of any action taken or to be
taken in pursuance of any power conferred by or under
this Act.
57.
Cognizance of certain offences.
57. Cognizance of certain offences.-(1) No court shall take
cognizance of any offence
punishable under Chapter IX save on a
complaint made by the Board or by any investigating agency directed
by the Central Government.
(2) No court inferior to that of a Chief Metropolitan Magistrate or
of a Chief Judicial Magistrate shall try any offence punishable
under
Chapter IX.
(3) Every offence punishable under sections 44, 45, 46 and 47 shall
be cognizable.
58.
Delegation.
58. Delegation.-The
Board may, by general or special order in
writing, delegate to any member or officer of the Board subject to
such conditions, if
any, as may be specified in the order, such of
its powers and functions under this Act (except the power to settle a
dispute under
Chapter VI and to make regulations under section 61),
as it may deem necessary.
59.
Power to remove difficulties.
59. Power to remove
difficulties.-(1) If any difficulty arises in
giving effect to the provisions of this Act, the Central Government
may, by order,
published in the Official Gazette, make such
provisions not inconsistent with the provisions of this Act as it may
deem necessary
for removing the difficulty:
Provided that no order shall be made under this section after the
expiry of two years from the date
of commencement of this Act.
(2) Every order made under this section shall be laid, as soon as may
be after it is made, before each
House of Parliament.
60.
Power of Central Government to make rules.
60. Power of Central Government to make rules.-(1) The Central
Government may, by notification, make rules for carrying out the
provisions of this Act.
(2) In particular, and without prejudice
to the generality of the
foregoing power, such rules may provide for all or any of the
following matters, namely:-
(a) the salaries and allowances payable to and the other
conditions
of service of the Chairperson and the other members under sub-
section (4) of section 5;
(b) the procedure for appointment
of any person or constitution of
any authority and conducting inquiry under section 7;
(c) the salaries and allowances payable to
and the other terms and
conditions of service of the Secretary, officers and other employees
of the Board, under sub-section (3)
of section 10;
(d) any other matter in respect of which the Board may exercise the
powers of a civil court under clause (i) of sub-section
(1) of
section 13;
(e) the eligibility conditions which an entity shall fulfil for
registration under sub-section (1) of section
15;
(f) the form of appeal and the manner of verifying such form, and the
fee which shall accompany such form, under sub-section
(2) of section
33;
(g) the manner in which the accounts of the Board shall be maintained
under sub-section (1) of section 40;
(h)
the time and manner in which the annual report of the Board
shall be prepared under sub-section (1) of section 41;
(i) the form and
manner in which applications for claiming
compensation shall be made, the procedure for determining the
compensation and the time
within which such compensation shall be
payable, under sub-section (3) of section 43;
(j) the time and manner in which returns and
statements are to be
furnished by the Board to the Central Government under section 53;
(k) any other matter which is to be, or may
be, prescribed, or in
respect of which provision is to be made, by rules.
61.
Power of Board to make regulations.
61. Power of Board
to make regulations.-(1) The Board may, by
notification, make regulations consistent with this Act and the rules
made thereunder
to carry out the provisions of this Act.
(2) In particular, and without prejudice to the generality of the
foregoing power, such
regulations may provide for all or any of the
following matters, namely:-
(a) the time and places of meetings of the Board and the
procedure
(including quorum necessary for the transaction of business) to be
followed at such meetings under sub-section (1) of section
8;
(b) the powers and duties of the Secretary under sub-section (1) of
section 10;
(c) the terms and conditions of the consultants
appointed under sub-
section (4) of section 10;
(d) the capacity of storage facilities for petroleum, petroleum
products or natural
gas requiring registration under sub-clause (iii)
of clause (b) of section 11;
(e) regulating open access to and transportation rate
for the common
carrier or contract carrier or city or local natural gas
distribution network and other matters referred to in clause
(e) of
section 11;
(f) marketing service obligations for entities and retail service
obligations for retail outlets under sub-clause
(v) of clause (f) of
section 11;
(g) levy of fees and other charges under clause (g) of section 11;
(h) the technical standards and
specifications including safety
standards in activities relating to petroleum, petroleum products and
natural gas under clause (i)
of section 11;
(i) the procedure to be followed by the Board including the places at
which it shall conduct its business under sub-section
(3) of section
13;
(j) the manner of maintaining the Petroleum and Natural Gas Register
under
sub-section (1) of section 14;
(k)
the form and manner of making application for obtaining certified
copy of any entry in the register and the fee which shall accompany
such application, under sub-section (4) of section 14;
(l) the form and manner in which an application under sub-section (1)
of section
15 shall be made and the fee which shall accompany such
application under sub-section (2) of section 15;
(m) the manner by which
a certificate of registration granted under
sub-section (3) of section 15 may be suspended or cancelled under
sub-section (4) of
section 15;
(n) the form and manner in which an application under sub-section (1)
or sub-section (2) of section 17 shall be made and the fee which
shall accompany such application
under sub-section (3) of section 17;
(o) the form and manner in which publicity of acceptance of
applications for registration shall
be made under section 18;
(p) the manner of selection of an entity under sub-section (2) of
section 19;
(q) the principles for determining
the number of years for which a
city or local natural gas distribution network shall be excluded from
the purview of a common carrier
or contract carrier under sub-section
(4) of section 20;
(r) the guiding principles to be followed by the Board and the
objectives
for declaring, or authorising to lay, build, operate or
expand a common carrier or contract carrier for declaring, or
authorising
to lay, build, operate or expand a city or local natural
gas distribution network, under sub-section (5) of section 20;
(s) the affiliate
code of conduct under which the entities are
required to comply with under the proviso to sub-section (1) of
section 21;
(t) the
transportation tariffs for common carriers or contract
carriers or city or local natural gas distribution network and the
manner
of determining such tariffs under sub-section (1) of section
22;
(u) the form in which a complaint may be made and the fee which
shall
accompany such complaint, under sub-section (2) of section 25;
(v) the manner of holding an investigation by an Investigating
Officer under sub-section (1) of section 26;
(w) the qualifications and experience which any person for
appointment as an Investigating
Officer shall possess, under sub-
section (2) of section 26;
(x) the form and manner of maintaining data bank and information
system
by the Board under sub-section (1) of section 51;
(y) maintenance of documentary records by an entity, under clause (a)
of sub-section
(1) of section 52;
(z) any other type of documents which are to be registered with the
Board under sub-clause (ii) of clause (d)
of sub-section (1) of
section 52;
(za) any other matter which is required to be, or may be, specified
by regulations or in respect
of which provision is to be or may be
made by regulations.
62.
Rules and regulations to be laid before Parliament.
62. Rules and
regulations to be laid before Parliament.-Every rule
made by the Central Government and every regulation made by the Board
under
this Act shall be laid, as soon as may be after it is made,
before each House of Parliament, while it is in session, for a total
period of thirty days which may be comprised in one session or in two
or more successive sessions, and if, before the expiry of the
session
immediately following the session or the successive sessions
aforesaid, both Houses agree in making any modification in the
rule
or regulation or both Houses agree that the rule or regulation should
not be made, the rule or regulation shall thereafter have
effect only
in such modified form or be of no effect, as the case may be; so,
however, that any such modification or annulment shall
be without
prejudice to the validity of anything previously done under that rule
or regulation.
63.
Transitional arrangements.
63.
Transitional arrangements.-(1) Where, before the commencement of
this Act, an agreement or agreements have been entered into between
one oil company and another for the purpose of sharing of petroleum
products or sharing of infrastructure facilities among the oil
companies and such agreements have been approved by the Central
Government, the Board may monitor the implementation of such
agreements
for the transition period.
(2) The Board shall monitor setting up of dealerships and
distributorships of motor spirit, high speed
diesel, superior
kerosene oil, liquefied petroleum gas and CNG stations for natural
gas during transition period by the entities
without encroaching on
the retail network of the existing entities.
Explanation I.-For the purposes of this section, the expression
"transition period" shall mean a period of three years from the date
of commencement of this Act.
Explanation II.-For the purposes of this section, "infrastructure
facilities" shall mean facilities at ports, refineries, terminals,
depots and aviation fuelling stations including hydrant lines
and
shall include loading and unloading facilities.
Explanation III.-For the purposes of this section "encroaching"
includes taking
over of retail outlet of one entity by another.
----
K. N. CHATURVEDI,
Secy. to the Govt. of India.
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