The
Compressed Natural Gas (CNG) (Production and Marketing) Rules, 1992
Government
of Pakistan Ministry of Petroleum & Natural Resources
NOTIFICATION
S.R.O.714
(1)/92.― In exercise of the powers conferred
by section 2 of the Regulation of Mines and Oilfields and Mineral Development
(Government Control) Act, 1948, (XXIV of 1948), the Federal Government is
pleased to make the following rules, namely:---
PART
I
1.
Short title and Commencement.— (1) these rules may be called the Compressed
Natural Gas (CNG) (Production and Marketing) Rules, 1992.
(2) They shall
come into force at once.
2.
Definitions.― In these rules, unless there is
anything repugnant in the subject or context,---
(a)
“area of operation” means the area within which a licensee is authorized to
compress natural gas distribution of CNG in automotive(s);
(b)
“Authority” means the Oil and Gas Regulatory Authority established pursuant to
the Oil and Gas Regulatory Authority Ordinance, 2002;
(c)
“consumer” means any person or corporation who is
supplied with compressed natural gas in his automotive(s) by a licensee for his
own use but not for storage, processing, filling, sale or distribution;
(d)
“container” means any cylinder or vessel installed in an automobile or at CNG
refueling station and used for storing, transporting and distributing CNG;
(e)
“corporation” includes any corporation, joint stock company, partnership
association, business trust, organized group of persons, whether incorporated
or not and receiver or trustee of any of them;
(f)
“licensee “ means a person or a corporation who holds a license under Part II
of these rules;
(g)
“compressed natural gas” or “CNG” means compressed gaseous fuel composed
predominantly of methane (CH4);
(h)
“meter” means all equipment used for the purpose of measuring the quantity of
CNG supplied, and includes all kinds of apparatus upon whose reading or
indication for the supply or sale of specified or unspecified time;
(i)
“sale price” means the price of CNG to be charged by a licensee under an
agreement from the consumer(s);
(j)
“supply mains” means a pipeline used for the transportation of natural gas for
the purpose of sale to a licensee; and
(k)
“works” includes pipeline, machinery or equipment including civil works
established or installed, owned, controlled, operated or managed in connection
with the compression of natural gas for the purpose of storage, filling or
distribution of CNG.
PART
II
1
License compulsory. No person or
corporation shall, without first obtaining a license from the Authority,
undertake, or cause to be undertaken under any agreement, the operation or
construction of works connected with compression of natural gas for the purpose
of storing, filling or distribution of CNG.
2
Application for license. (1) A person or
corporation may submit an application to the Authority for a licence of a
refueling station at the existing petrol pump or at separate site.
(2)
An application for license shall be in triplicate in the form annexed to these
rules and shall be accompanied by a fee of Rs. 25,000/- Provided that where the
grant of the license is refused, half of such fee shall be refunded to the
applicant.
5.
Consideration of application. (1) The Authority shall consider
the application having regard to all the circumstances which appear to it to be
relevant, and in particular, but not so as to limit the generality of the foregoing,
to:
(a)
The public and national interest; and
(b)
The financial and technical competence of the applicant.
(2)
The Authority may require such changes and alternation in the plants and in the
details to be made, as it may deem expedient.
(3)
A licensee shall be bound \by the provisions contained in these rules and such
other terms and conditions as may be specified in the license.
6.
Authority may grant or refuse license. (1) The Authority may grant a
licence for the compression of natural gas for the purpose of storing, filling
or distribution of CNG in accordance with these rules and may specify in the
licence such terms and conditions as it may think fit to impose on the licensee
or it may refuse to grant the license:---
Provided
that any person or corporation who or which was engaged, immediately before the
commencement of these rules and with the approval of the Federal Government, in
the compression of natural gas for the purpose of storing, filling or
distribution of CNG or, in whose favor sanction for compression of natural gas
for the purpose of storage, filling or distribution of CNG was issued by the
Federal Government before such commencement shall be granted a licence, if such
person or corporation makes an application in the form annexed to these rules
for the purpose within three months from the commencement of these rules.
(2)
In case of refusal to grant a licence, an appeal shall lie from the decision of
the Authority to the Federal Government.
7.
Period of Licence-
(1) A licence granted under these Rules shall be initially valid for a period
of up to two years during which period the licensee shall execute the works in
pursuance of rule 10. On completion of works, satisfactory to the Authority,
the period of licence shall be extended up to a maximum period of fifteen
years.
(2)
On the expiry of the licence granted under these rules, a licence, unless
earlier revoked under rule 8, may be renewed from time to time for a period of
5 years each time on payment of a fee of twenty five thousand rupees.
(3)
Every licensee desiring to have his licence renewed shall make an application
in that behalf to the Authority not less than three months before the expiry of
the period for which the licence is valid.
(4)
No application for a renewal of a licence shall be refused unless the licensee
has been given an opportunity of being heard.
(5)
In case of refusal to renew a licence an appeal shall lie from the decision of
the Authority to the Federal Government.
8.
Revocation or amendment of licences. -(1) The Authority may, if in its
opinion the public interest so requires, revoke a license in any of the
following cases, namely:
(a)
Where the licensee,
in
the opinion of the Authority makes willful and unreasonably prolonged default
in doing any thing required of him under the
licence
granted to him or by these rules and has been informed in writing to that
effect by the Authority.
(b)
Where the licensee violates any of the terms and conditions of his license and
is so informed in writing and does not rectify the violation within the time
specified,
(c)
Where the licensee is, in the opinion of the authority, unable by reason of his
insolvency fully and efficiently to discharge the duties and obligations
imposed on him by his licence.
(2)
Where, in the opinion of the Authority, the public and national interest so
require the Authority may, instead of revoking a licence under sub-rule (1),
permit it to remain in force in relation to the whole or any part of the area
of operation with such alteration or amendments in the terms and conditions of
the licence as it thinks fit to make or upon such new terms and conditions as
it may impose upon the licensee.
(3)
In case of revocation of a license or any alternation or amendment in the term
and conditions thereof, an appeal shall lie from the decision of the Authority
to the Federal Government.
9. Licensee not to sell, assign,
transfer, convey or lease his license or works.- No licensee shall,
without the previous approval in writing of the Authority,
(a)
Sell, assign, transfer, convey or lease his license or his works or any
interest therein in whole or in part;
(b)
Enter into any agreement or contract for,---
(i)
the amalgamation of his works with those of any other person or corporation; or
(ii)
the operation of his works by any other person or corporation;
(c)
Mortgage or otherwise create a charge upon the works or any interest therein.
10.
Execution of works after commencement of licence.―
(1) The licensee, after the commencement of the licence, shall execute to the
satisfaction of the Authority his works in accordance with the code of
practice, appended to these rules, within a period of two years or; such
further period as the Authority may allow under special circumstances proved by
the licensee to be beyond his control.
(2)
The Authority shall appoint third party inspector or inspectors for the purpose
of verification of works of the licensee in pursuance of sub rule (1) of rule
10 hereof and the licensee shall pay to such third party inspector or
inspectors a reasonable fee, as determined by the Authority from time to time,
for the purpose of such inspection or inspections.
1
Addition
to or extension of the works.― A licensee shall not make any alternation in,
addition to, or extension of, his works as given in his plan and approved by
the Authority, unless such alteration, addition or extension is authorized by
the Authority.
2
Right to
discontinue supply.― A licensee may temporarily
discontinue supply of CNG when such discontinuance becomes necessary for the
maintenance of works.
PART-III
CHARGES
AND ACCOUNTS
1
Price of
CNG to be sold.― The price for CNG sold by a
licensee to consumer(s) shall be charged in accordance with an agreement to be
concluded between the licensee and the consumer(s).
2
Measurement― (1) The
amount of natural gas supplied to a licensee and CNG supplied to a consumer
shall be ascertained by means of a correct meter. A meter shall be deemed to be
correct if it registers the amount natural gas or CNG supplied within the
limits of error approved by the Authority and complies with such conditions as
may be prescribed by the Authority.
(2)
A licensee may require a consumer to give him security deposits for the price
of CNG kit and ancillary equipment for the conversion of petrol or diesel
vehicles into CNG vehicle or to enter into an agreement for the hire and
maintenance thereof, and where the licensee or the consuming as the case may
be, enters into such as agreement the latter shall keep CNG kit and ancillary
equipment for such conversion in correct and good conditions.
15.
Willful hindrance in submitting records, etc, unlawful.―
No licensee or consumer shall willfully hinder, delay or obstruct the making,
submitting or keeping of any information, document, report, memorandum or
record or account required to be made, submitted or kept under these rules.
PART-IV
GENERAL
1
Entry, inspection and enforcement of the rules.―
The Authority or any person duly authorized by the Authority in this behalf may
enter, inspect and examine any place in which he has reason to believe that
there is any work(s) for compressing natural gas for the purpose of storing,
measuring or distribution of CNG and take other necessary steps for the due
observance of the provisions of these rules by licensees, consumers or any
other person connected with the storage, filling, distribution and use of CNG.
2
Protection
for acts done in good faith.— No suit, prosecution, or other proceeding
shall be instituted against the Authority for anything done, or purporting to
be done, in public interest under the provision of these Rules.
3
Protection
to public.― (1)
A licensee shall locate, construct and operate his pipeline and all works connected
with CNG Refueling station, and installation of CNG equipment in automobiles in
accordance with the licence granted by the Chief Inspector of Explosives under
the Mineral Gas Safety Rules, 1960, and strictly comply with the provisions of
the Petroleum Rules 1937 and the Gas Cylinder Rules, 1940, so as to avoid any
danger to the public health or safety” and
(2)
In the application form, in the preamble, for the commas, letters and words,
"XLVI- Miscellaneous Receipts arising out of the figure and words
"-1391008-Other Receipts- Receipts under the "shall be substituted.
1
Marking of
works.― A licensee shall mark with
conspicuous signs the place of his works.
2
Penalty
for breach of rules.―
Whosoever
commits a breach of these rules shall without prejudice to any other action
that may be taken against him, be punishable for every such breach with fine
which may extend to fifty thousand rupees.
Sd/-
KUNWAR
IDRIS
Secretary
APPLICATION
FORM FOR THE GRANT OF LICENCE UNDER
THE COMPRESSED NATURAL GAS (PRODUCTION AND
MARKETING) RULES, 1992
THE COMPRESSED NATURAL GAS (PRODUCTION AND
MARKETING) RULES, 1992
COMPRESSION OF NATURAL GAS FOR THE
PURPOSE OF STORAGE, FILLING AND DISTRIBUTION OF GAS.
1
Name
(s) of applicant (s) in full._________________________________________
�
2.
If application is by an individual
or individuals. ____________________________
�
(a)
Address_______________________________________________________
�
(b)
Nationality. ___________________________________________________
�
(c)
Present occupation and duration___________________________________
�
3.
If application is by a
corporation.
�
(i)
(a) Present business (s) __________________________________________
�
(b)
Location(s)
_________________________________________________
�
(ii)
If principal place of business is outside Pakistan ,
name and address of duly authorized Agent in Pakistan
�
(4)
Previous experience/knowledge of
handling high pressure fuels. ___________________________________________________________________
�
(5)
Location and area of operation for
the activity/activities applied for
(Existing/proposed), and number of CNG refueling stations.
�
___________________________________________________________________
�
(6)
Project details (attach a report
giving the following): -
�
A:
Compression/storage/filling units.
�
(i)
Nature and capacity of fixed
assets.
�
(ii)
Details of utilities and services.
�
(iii) Details of technical and operation
personnel with an or monogram, if new project,
�
(iv)
The period of completion and time of
commissioning.
�
(iv)
Capital cost, existing or estimated
under following heads (give break-down) of foreign exchange and rupee cost
separately):
�
(a)
Plant cost (separately for the
activities applied for)
�
(b)
Land
�
(c)
Building
�
(d)
Electrical equipment.
�
(e)
Fire fighting equipment.
�
(f)
Furniture and Fixture.
�
(g)
Vehicles and transport.
�
(h)
Construction and engineering (for
new projects and other miscellaneous
aspects)
�
(7)
For distribution licence, indicate
the details on which CNG requirement in the area
�
of
operation (applied area) are based indicating market surveys, if any, carried
out ___________________________________________________________________
�
(8)
Any other relevant information that
may be helpful in the evaluation of the Project.
�
(9) Remarks.
I/We hereby
solemnly declare that all the particulars given above are correct.
I/We solemnly
undertake not to sell, mortgage, etc, either directly or indirectly or through
association, the rights privileges and obligation granted under this license
without prior approval of the Authority.
In the event of
any violation of this undertaking by me/us the Authority shall have the right
to cancel the license, provided that any dispute between the Authority and the
applicant as to whether any of my/our activities can be considered as a
violation of this undertaking shall be subject to decision in accordance with
the provision of sub-rule (3) of rules 8 of the Compressed Natural Gas (Production
& Marketing) Rules, 1992, and the appropriate clause in the license.
Signature(s)
Applicant (s)______________________
Date and place of
applicant……………………………………………………………… (If the applicant is a corporation, capacity
in which form is signed)
In case the applicant is an alien or a
corporation incorporated outside Pakistan
No comments:
Post a Comment