Final Natural Gas Pipe Line - 1569

8/3/2019 Final Natural Gas Pipe Line - 1569

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An Act to provide for the establishment of Petroleum andNatural Gas Regulatory Board to regulate the refining,processing, storage, transportation, distribution, marketingand sale of petroleum, petroleum products and natural gas

excluding production of crude oil and natural gas so as toprotect the interests of consumers and entities engaged inspecified activities relating to petroleum, petroleumproducts and natural gas and to ensure uninterrupted andadequate supply of petroleum, petroleum products andnatural gas in all parts of the country and to promotecompetitive markets and for matters connected therewithor incidental thereto. BE it enacted by Parliament in theFifty-seventh Year of the Republic of India as follows


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PNGRB ACT 2006 CONTINUOUSy CHAPTER I - PRELIMINARY1. Short title, extent, commencement and application

It applies to refining, processing, storage, transportation,distribution, marketing and sale of petroleum, petroleumproducts and natural gas excluding production of crude oil andnatural gas.

2. Definitions:-

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) ofsection 21

"Appellate Tribunal" means the Appellate Tribunal referred to insection 30.


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CHAPTER II - PNGRB

3. Establishment and incorporation of the Boardy The Board shall be a body corporate by the name aforesaid, having

perpetual succession and a common seal, with power, subject to theprovisions of this Act, to acquire, hold and dispose of property, bothmovable and immovable, and to contract, and shall, by the said name,issue or be issued.

. Qualifications for appointment of Chairperson and othermembers

y The Central Government shall appoint the Chairperson and othermembers 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 beappointed 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.


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CHAPTER II - PNGRB

.Term of office, conditions of service, etc. ofChairperson and other members

6. Powers of Chairperson

7. Removal of Chairperson or any other memberfrom office

8. Meetings of the Board

9.Vacancies, etc., not to invalidate proceedings

of the Board10. Officers and other employees of the Board


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PNGRB ACT 2006 CONTINUOUSCHAPTER III - FUNCTIONS AND POWERS OF THE BOARD

11. Functions of the Boardy The Board shall protect the interest of consumers by fostering fair trade

and competition amongst the entities

12. Powers regarding complaints and resolutions of disputes bythe Board

y Receive any complaint from any person and conduct any inquiry andinvestigation connected with the activities relating to petroleum, petroleumproducts and natural gas on contravention of-

(i) retail service obligations;

(ii) marketing service obligations;(iii) display of retail price at retail outlets;

13. Procedure of the Board

The Board shall have, for the purposes of discharging its functions underthis Act, the same powers as are vested in a civil court under the Code of Civil

Procedure, 1908 (5 of 1908)


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PNGRB ACT 2006 CONTINUOUSCHAPTER IV- REGISTRATION AND AUTHORISATION

14. Register15. Registration of entities

16.Authorisation

17.Application for authorisation

18. Publicity of applications

19. Grant of authorisation

20. Declaring, laying, building, etc., of commoncarrier or contract carrier and city or local naturalgas distribution network

21. Right of first use, etc

22. Transportation tariff

23. Suspension or cancellation of authorisation


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PNGRB ACT 2006 CONTINUOUS

CHAPTER V -SETTLEMENT OF DISPUTES

24. Board to settle disputes

25. Filing of complaints

26. Power to investigate (Settle Dispute)

27. Factors to be taken into account by the Board

28. Civil penalty for contravention of directionsgiven by the Board

29. Orders passed by Board deemed to be decrees


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PNGRB ACT 2006 CONTINUOUSCHAPTER VI - APPEALS TO APPELLATE TRIBUNAL

30.Appellate Tribunal

31. Technical Member (Petroleum and Natural Gas)

32. Terms and conditions of service of TechnicalMember (Petroleum and Natural Gas)

33.Appeals to Appellate Tribunal

34. Procedure and powers of the Appellate Tribunal

35. Power of Appellate Tribunal to make rules

36. Orders passed by Appellate Tribunal to beexecutable as a decree

37.Appeal to Supreme Court


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PNGRB ACT 2006 CONTINUOUS

CHAPTER VII- FINANCE, ACCOUNTS AND AUDIT

38. Grants by Central Government

39. Fund

40.Accounts and audit41.Annual report and its laying before Parliament

A copy of the report shall be forwarded to the CentralGovernment and the Central Government shall cause

such report to be laid, as soon as may be after it isreceived, before each House of Parliament.


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PNGRB ACT 2006 CONTINUOUSCHAPTER VIII - POWER OF CENTRAL GOVERNMENT

42. Power of Central Government to issue directions

y The Central Government may, from time to time, by writingissue to the Board such directions as it may think necessary inthe interest of the sovereignty and integrity of India, the security

of the State, friendly relations with foreign States or publicorder.

43. Taking over control and management of facilities andbusiness premises of any entity and retail outlets in public

interest The collector of the revenue district in which the property

referred to in the notification issued under sub-section (1) issituated shall determine the amount of compensation payable

for taking over of the property.


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CHAPTER IX- OFFENCES AND PUNISHMENT

44. Punishment for contravention of directions of the

Board45. Penalty for willful failure to comply with orders of

Appellate Tribunal

46. Punishment for unauthorized activities

47. Punishment for establishing or operating aliquefied natural gas terminal without registration

48. Punishment for laying, building, operating orexpanding a common carrier or contract carrier

without authorisation49. Punishment for willful damages to common carrier

or contract carrier

50. Offences by companies


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REGULATION FOR ENTITY

LAYING,BUILDING,OPERATE OR EXPAND NG P/LDefinitions -

Economic Life- 25 Years

Natural Gas Pipe Line TariffNatural Pipe Line Means Pipe Line Including Spur

Lines


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Tariff & Tariff Zoney

NG pipeline tariff means the unit rate of tariff for a NGpipeline (excluding statutory taxes and levels) INR permillion British Thermal units (Rs/MMBTU) for transportof natural gas.

y Tariff zone :

y 1. Length of 300km along the pipe line.

y 2.width up to 10% of pipeline length or 50 km, which ever is

lower all customers in each zone to charged uniformly.

y 3.Length of the First Zone shall start from the First Point of

injection of NG and extends to 300 KM along the NG Pipe line.

y 4.Length of each of the Zone subsequent to the First Zone

shall be equal to 300 kms.


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APPLICABILITY OF REGULATIONy For entity laying,building,operating or expanding or

which proposes to do so.

yEntity proposes to convert dedicated pipe line to anatural gas pipe line.


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INITIATION OF PROPOSAL-UNDER

REGULATIONy Expression of Interest route orSuo-Motu by Board.

Criteria for selection of Entity.EOI fulfill s the criteria and the requirements based on board will

advertise and web host for public consultation with a period of 30 days.

During consultation other entity interested may submit in writing toboard.

Board will also seek capacity booking by different entities for

optimizing size.

Board based on the views received with in a period of 45 days after the

last day of the public consultation period may take view board may notconsider NG P/L on non- availability of NG.

If the requirement is met in cost effective manner by expansion of an

existing pipe line.


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MINIMUM TECHNICAL QUALIFICATION

CRITERIA FOR BIDDINGy 1.Entity has laid at least 300 km hydrocarbon steel pipeline.

or

y 2.Entity has Minimum 3 person with minimum 1 years

experience in the field of ROW,Design,pre- commissioning,safety

and O&M.

or

y 3.Entity has a tie-up with an entity with above eligibility (min.

11%).

or

y 4.Entity has a tie-up on PMC basis with above eligibility.


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MINIMUM FINANCIAL QUALIFICATION CRITERIA

FOR BIDDING

1.Entity should have net worth as under:-

2.Entity should be registered under company act 1956

3.Entity should have credible plan for capacityutilization

PIPE Line length Including

Spur Lines (KM)

Minimum combined net worth (in

million of INR Per km length)

1751 and above 7.5

1001-1750 7

251-1000 6

up to 250 5


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The Entity shall submit/ furnish a bid bond along

with the application cum-bid as per value given below

Entity submitting the bid should not have been imposed any penaltyunder section 28 or punished under chapter IX of the Act.

Entity agree to build extra capacity in the NG P/L as per Following-The capacity of P/L shall be sum of-

A. Capacity requirement of the entity.

B. Firmed up contracted capacity with other entities and

At least 33% of the sum of (A) and (B) as extra capacity.

PIPE Line lengthIncluding Spur Lines

(KM)

Amount of bid bond (inmillion of rupees)

Equal to 2501 or more 250

Between 1,751 and 2,500 200

Between 1,001 and 1,750 150Between 251 and 1,000 80

Less than or equal to 250 20


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BID BOND

y Proposal to be submitted along with Bid Bond

y Encashed if an entity submitting the bid walks out.

y Released in respect of the unsuccessful entitysubmitting the bid.

y Retained till performance bond is furnished at thetime of authorization.


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Procedure for submission of bidsy Envelope I : Application Fee and bid bond

y Envelope II : Technical bid

y Envelope III : Financial bid


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INVITATION BY BOARD FOR

LAYING,BUILDING,OPERATING OR EXPANSION OF NG

PIPE LINE

y The Board may suo-motu form a view regarding thedevelopment of a NG P/L in a specific area , region or

route and in such a case the procedure as specified inregulation 5.


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BIDDING CRITERIAa) Lowness of the PV of the Unit NG P/L Tariff For 1st Tariff

zone for each year of economic life of the project.Weightage- 40% (70% For not more than 300 km)

b) Lowness of % increase bid under this clause which whenmultiplied with the unit NG P/L tariff under clause (a)

shall determine incremental tariff for 2nd

tariff zone .Weight age- 20% (30% incase length not more than 600km)

c) Lowness of % increase bid under this clause which whenmultiplied with tariff bid under clause (a) & % bid under

clause (b) shall determine incremental tariff for 3rd tariffzone.Weight age- 10%

d) Highness of the PV of the NG gas volumes (in millionSCMD) proposed to be transported in the NG P/L over theeconomic life of the project.Weight age- 30 %


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AUTHORIZATION

yAUTHORIZATION IS SUBJECT TO:

Performance Bond submission within 30 days.The authorization shall be granted to the selected entity in

the form at Schedule D within a period of 30 days.

Gas Tie-up within 90 days of authorization.

Financial closure within 120 days.

Fixation and Recovery of NG gas P/L Tariff- as per bid

Expansion of capacity in NG Pipe line

Post authorization monitoring of Activities (Pre-commissioning)

Service obligations of authorized entity (Postcommissioning)


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AUTHORIZATIONQuality of Service Standards

Consequences of default and termination ofauthorization procedure.

Entities authorized by the Central govt. for laying,building, operating or expanding NG P/L before theappointed day.

Entity not authorized by the Central govt. for laying,building, operating or expanding NG P/L before theappointed day.

Provisions relating to dedicated P/L For Transport ofNG.

Access and inter connectivity to NG Pipe line.


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Final Natural Gas Pipe Line - 1569

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