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Bar News Acts League

The Petroleum and Natural Gas Regulatory Board Act, 2006

Act ID: 2006

The Petroleum and Natural Gas Regulatory Board Act, 2006

"An Act to provide for the establishment of PNGRB to regulate the refining, processing, storage, transportation, distribution, marketing and sale of petroleum products and natural gas."

Table of Contents

63 Sections

Ch. IP

reliminary

S.1Short title, extent, commencement and application .-(1) This Act may be called The Petroleum and Natural Gas Regulatory Board Act, 2006 S.2Definitions .-In this Act, unless the context otherwise requires,S.6Composition of Board S.18Functions of Board S.32Fund S.34Accounts and audit S.35Annual report S.38Staff S.44Penalties S.45Offences by companies S.46Cognizance of offences S.47Power of Board to issue directions S.48Appeal S.49Power of Central Government to issue directions S.53Power to make regulations S.54Laying of rules and regulations S.55Power to remove difficulties S.56Repeal and savings S.58[Omitted]S.62Power to remove difficulties

Ch. IIP

etroleum And Natural Gas Regulatory Board

S.3Establishment 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 S.4Qualifications 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:S.5Term 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 S.7Removal of Chairperson or any other member from office .-The Central Government may remove from office the Chairperson or any other member, who S.8Meetings 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 S.9Vacancies, etc., not to invalidate proceedings of the Board .-No act or proceeding of the Board shall be invalid merely by reason of S.10Officers 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:

Ch. IIIF

unctions And Powers Of The Board

S.11Functions of the Board .-The Board shall S.12Powers regarding complaints and resolution of disputes by the Board .-(1) The Board shall have jurisdiction to S.13Procedure 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;

Ch. IVR

egistration And Authorisation

S.14Register .-(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 S.15Registration of entities .-(1) Every entity desirous of S.16Authorisation .-No entity shall S.17Application 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:S.19Grant 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 S.20Declaring, 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 S.21Right 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:S.22Transportation 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 S.23Suspension 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:

Ch. VS

ettlement Of Disputes

S.24Board 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:S.25Filing 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:S.26Power 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:S.27Factors 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:S.28Civil 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:S.29Orders passed by Board deemed to be decrees .-Every order made by

Ch. VIA

ppeals To Appellate Tribunal

S.30Appellate 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:S.31Technical 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 S.33Appeals 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:S.36Orders 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 S.37Appeal 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

Ch. VIIF

inance, Accounts And Audit

S.39Fund .-(1) There shall be constituted a Fund to be called the Petroleum and Natural Gas Regulatory Board Fund and there shall be credited thereto S.40Accounts 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 S.41Annual 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

Ch. VIIIP

ower Of Central Government

S.42Power 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 S.43Taking 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:

Ch. IXO

ffences And Punishment

S.50Offences 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:

Ch. XMis

cellaneous

S.51Maintenance 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 S.52Obligations of entities .-(1) Every entity shall S.57Cognizance 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 S.59Power 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:S.60Power of Central Government to make rules .-(1) The Central Government may, by notification, make rules for carrying out the provisions of this Act S.61Power 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 S.63Transitional 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