The Petroleum and Natural Gas Regulatory Board Act, 2006
20. Declaring,
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.
2. For
the purposes of sub-section (1), the Board shall provide the entity owning, the
pipeline or network an opportunity of being heard and fix the terms and
conditions subject to which the pipeline or network may be declared as a common
carrier or contract carrier and pass such orders as it deems fit having regard
to the public interest, competitive transportation rates and right of first
use.
3. The
Board may, after following the procedure as specified by regulations under
section 19 and sub-sections (1) and (2), by notification,-
a. declare a pipeline or
city or local natural gas distribution network as a common carrier or contract
carrier; or
b. authorise an entity
to lay, build, operate or expand a pipeline as a common carrier or contract
carrier; or
c. allow access to
common carrier or contract carrier or city or local natural gas distribution
network; or
d. authorise an entity
to lay, build, operate or expand a city or local natural gas distribution
network.
1.
2.
3.
4. The
Board may decide on the period of exclusivity to lay, build, operate or expand
a city or local natural gas distribution network for such number of years as it
may by order, determine in accordance with the principles laid down by the
regulations made by it, in a transparent manner while fully protecting the
consumer interests.
5. For
the purposes of this section, the Board shall be guided by the objectives of
promoting competition among entities, avoiding infructuous investment,
maintaining or increasing supplies or for securing equitable distribution or
ensuring adequate availability of petroleum, petroleum products and natural gas
throughout the country and follow such principles as the Board may, by
regulations, determine in carrying out its functions under this section.