Petroleum and Natural Gas Regulatory Board (Guiding Principles for Declaring City or Local Natural Gas Distribution Networks as Common Carrier or Contract Carrier) Regulations, 2020
Published vide Notification No. F. No. PNGRB/Auth/7-Misc(03)/2015 (P-143), dated 30.9.2020
Last Updated 7th October, 2020 [act3719]
(a) protecting the interests of consumers by fostering fair trade and competition amongst the entities;
(b) promoting competition among entities;
(c) avoiding infructuous investment; or
(d) maintaining or increasing supplies or for securing equitable distribution or ensuring adequate availability of natural gas to consumers.
3. Definitions. - (1) In these regulations, unless the context otherwise requires,-(a) "Act" means the Petroleum and Natural Gas Regulatory Board Act, 2006 (19 of 2006);
(b) "Associate", in relation to a person shall include another person or vice versa:-
(i) who, directly or indirectly, by himself, or in combination with some other persons, exercises control over the first said person; or
(ii) who holds control of at least twenty percent of the total voting right of the first person; or
(iii) who is a holding company or a subsidiary company of the first said person; or
(iv) in such other cases where the Board is of the view that a person shall be considered as an associate based on the facts and factors including the extent of control, independence, conflict of interest;
(c) "Authorized area" shall have the meaning as defined in clause (c) of sub-regulation (1) of regulation 2 of the Petroleum and Natural Gas Regulatory Board (Authorizing Entities to Lay, Build, Operate or Expand City or Local Natural Gas Distribution Networks) Regulations, 2008;
(d) "Authorized entity" shall have the meaning as defined in clause (d) of section 2 of the Act;
(e) "Board" shall mean the Petroleum and Natural Gas Regulatory Board;
(f) "CGD network" means a "city or local natural gas distribution network" as defined in clause (i) of section 2 of the Act;
(g) "common carrier or contract carrier capacity" means the capacity in a CGD network for open access, as declared by the authroised entity under the Petroleum and Natural Gas Regulatory Board (Access Code for City or Local Natural Gas Distribution Networks) Regulations, 2011, over and above the authorized entity's own requirement;
(h) "CGD network capacity" shall have the meaning as defined in clause (g) of sub-regulation (1) of regulation 2 of the Petroleum and Natural Gas Regulatory Board (Determining Capacity of City or Local Natural Gas Distribution Network) Regulations, 2015;
(i) "marketer" shall have the meaning as defined in clause (z) of regulation 2 of the Petroleum and Natural Gas Regulatory Board (Access Code for City or Local Natural Gas Distribution Networks) Regulations, 2011;
(j) "marketing exclusivity" shall mean the exclusivity from the purview of common carrier or contract carrier as specified in regulation 6 of the Petroleum and Natural Gas Regulatory Board (Exclusivity for City or Local Natural Gas Distribution Network) Regulations, 2008;
(k) "own requirement", in respect of an authorized entity, means that part of the CGD network capacity, which is utilized by the authorized entity or its associates, including the system use gas;
(l) "system use gas" shall have the meaning as defined in clause (zn) of sub-regulation (1) of regulation 2 of the Petroleum and Natural Gas Regulatory Board (Access Code for City or Local Natural Gas Distribution Networks) Regulations, 2011
(2) Words and expressions used and not defined in these regulations, but defined in the Act or in the rules or other regulations made thereunder, shall have the meanings respectively assigned to them in the Act or in such rules or other regulations, as the case may be. 4. Scope. - These Regulations shall apply to an authorised entity after expiry of marketing exclusivity period of an authorised area. 5. Guiding Principles for Declaring the City or Local Natural Gas Distribution Network of an authorised area as Common Carrier or Contract Carrier. - The Board shall, in seeking to declare CGD Network of an authorised entity as a common carrier or contract carrier, follow the provisions of these regulations which constitute the guiding principles to be followed by the Board for declaring the CGD network as a common carrier or contract carrier under section 20 of the Act. 6. Procedure for Declaring the CGD Network of an authorised area as a Common Carrier or Contract Carrier or Regulating or Allowing Access thereto under Section 20 of the Act. - (1) The Board shall issue (including webhosting), a public notice in one national and one vernacular daily newspaper (of the relevant authorized area) of its intention to declare the CGD network of an authorised entity as common carrier or contract carrier or regulate or allow access to such CGD network, giving brief details of the relevant CGD network that the Board is intending to regulate or allow access to or declare as a common carrier or contract carrier and invite objections and suggestions, if any, within thirty days from the issuance of such public notice from all persons and entities likely to be affected by such decision. (2) The relevant authorized entity whose CGD network is intended to be declared as common carrier or contract carrier may submit, within thirty days from the issuance of such public notice, a written submission to the Board providing reasons as to why its CGD network should not be declared a common carrier or contract carrier or why there should be no regulation of access or no third party should be provided access to its CGD network including addressing the grounds mentioned by the Board in the relevant public notice, and any of the objectives specified in the Act with supporting data and documents. In case, the authorised entity does not submit any written submissions, it shall be presumed that it has no objection to the Board's intention stated in the public notice. (3) The authorized entity, whose CGD network is subject matter of the public notice issued under sub-regulation (1), shall be provided with a separate hearing on the issue as to whether the Board should proceed further with the process notified under sub-regulation (1). In the event such authorized entity does not oppose the notice issued under sub-regulation (1), the separate hearing under this sub-regulation (3) shall not be held. (4) On expiry of the period allowed for submission of objections and suggestions, if any, under sub-regulation (1), the Board shall forward the objections and suggestions so received, to the authorised entity with the direction to submit its response within fifteen days. (5) The Board may invite all stakeholders including such persons and entities who have offered their objections and suggestions under sub-regulation (1) for an open house meeting. (6) The Board shall after completion of the process of holding an open house under sub-regulation (5) above, notify its decision as to whether it is declaring the CGD network as a common carrier or contract carrier network or regulating access or allowing access to the same, and the applicable terms and conditions and the date from which such decision shall come into effect. (7) The authorized entity may, on its own, apply to the Board seeking declaration of the CGD network in its authorised area as a common carrier or contract carrier network. The Board may after following the process specified in sub-regulations (1) to (7) as may be mutantis mutandis applicable, declare such CGD network as a common carrier or contract carrier network on such terms and conditions and from such date as the Board may deem fit. 7. Miscellaneous. - (1) The Board shall have the power to issue clarifications with regard to these regulations and in case of any dispute, the clarification given by the Board shall be final and binding. (2) If any question arises as to the interpretation of these regulations, the same shall be decided by the Board.