The Petroleum and Natural Gas Regulatory Board Act, 2006
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.