Section 20
Declaring, laying, building, etc., of common carrier or contract carrier and city or local natural gas distribution network.
The Petroleum and Natural Gas Regulatory Board Act, 2006
About this Act
An Act to provide for the establishment of Petroleum and Natural Gas Regulatory Board to regulate the refining, processing, storage, transportation, distribution, marketing and sale of petroleum, petroleum products and natural gas excluding production of crude oil and natural gas so as to protect the interests of consumers and entities engaged in specified activities relating to petroleum, petroleum products and natural gas and to ensure uninterrupted and adequate supply of petroleum, petroleum products and natural gas in all parts of the country and to promote competitive markets and for matters connected therewith or incidental thereto.
(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.
(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.
(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.
(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.