PETROLEUMANDNATURALGASREGULATORYBOARD NOTIFICATION
NewDelhi,the29thApril,2016
F.No.PNGRB/M(C)/48.—In exerciseof thepowersconferredby section61 ofthePetroleumand NaturalGas RegulatoryBoard Act, 2006 (19 of 2006), the Petroleum and Natural GasRegulatory Boardherebymakesthefollowingregulations,namely:—
1.Shorttitleandcommencement
(1)Theseregulations maybecalled thePetroleum andNatural GasRegulatory Board (Imbalance
ManagementServices)Regulations,2016.
(2) Theseregulationsshallremainapplicabletill31stMarch,2018.
(3) TheyshallcomeintoforceonthedateoftheirpublicationintheOfficialGazette.
2.Definitions
(1)Intheseregulations,unlessthecontextotherwiserequires,—
(a)“Act”meansthePetroleumandNaturalGasRegulatoryBoard Act,2006;
(b)“Board” means the Petroleum and Natural Gas Regulatory Boardestablishedundersub- section(1)ofsection3oftheAct;
(c) “GTA”meansGasTransportationAgreementbetweentransporterandshipper;
(d)“Imbalance Management Services” means such services that enablecustomersorshippers tomanagetheirimbalancesinanorderlyfashion;
(e)“shipper” means aconsumer, amarketer oranyentitywhich utilizes thecapacity inthe naturalgaspipeline;
(f)“transporter” means an entity authorized by the Board or authorized by the Central
Governmentforlaying,building,operatingorexpandinganaturalgaspipeline.
(2)Wordsandexpressionsusedandnotdefinedintheseregulations,butdefinedintheActorinthe rulesorregulationsmadethereunder,shallhavethemeaningsrespectivelyassignedtotheminthe Actorintherulesorregulations,asthecasemaybe.
3.Application
These regulations shall apply to a natural gas pipeline covered under theprovisions of regulations4,17and18ofthePetroleumandNaturalGasRegulatoryBoard(AuthorizingEntitiesto Lay,Build,OperateorExpandNaturalGasPipelines)Regulations,2008.
4.Termsandconditionsforprovidingimbalancemanagementservices
(1)Atransporter shall provide, totheextent itistechnically andoperationally feasible, imbalance management services being deferred delivery services to facilitate shippers to manage transportation imbalances. For this purpose, adeferred delivery service isone under which a transporterandashipper,underaseparateagreement,agreeona day-wiseplanforreceiptofthe shipper’snaturalgasquantitiesintothepipelineandforitsdeliverybythetransportertoshipper onadeferredbasisaftera fewdayssubjecttopipelinecapacityavailability.
(2)The transporter shall provide the facility of the imbalance managementservicesreferredtoin sub-regulation(1)onanon-discriminatory basisbutwithoutaffectingitsabilitytomeettherights andobligationsunderitsgastransportationagreementswithothershippers.
(3)Thetransportermaychargeafeeforprovidingtheimbalancemanagementservices referred to in sub-regulation(1) from the shipper utilising suchservicewherethechargefortheserviceshall bebasedonthenumberofdayssuchserviceisutilised.
(4) Thetransporter initsagreement with theshipper shall mention thecharges for theimbalance managementservicesreferredtoinsub-regulation(1)butsuchchargeshallnotexceedtwentyfive percent. oftheapplicabletransportationtarifffortherelevantnaturalgaspipeline.
(5)Theamountreceivedbythetransporterfromtheimbalancemanagementservicesreferredto in sub- regulation(1)shallbeallowedto be retainedbyitoverandabovethetransportationtariffforthe pipelineinaccordancewiththeprovisionsoftherelevantregulationsoftheBoard.
(6)Incaseatransporter denies arequest fromtheshipper fortheimbalance management services referredto in sub-regulation(1),thereasonsfordenialshallbeprovidedbythe transportertothe shipper.
(7)A transporter shall provide information on the details of the imbalancemanagement services referred to in sub-regulation (1) and the amountreceivedfromsuchservicesforthefinancial yeartotheBoardthroughastatementcertifiedbyaCharteredAccountanttobefiledwithinsixty daysfromtheendoftherelevantfinancialyear.
(8)TheBoardmaypermita transporterto undertakeprojectsforotherimbalancemanagementservices (besidesdeferreddeliveryservices)fromtimeto timeona pilotbasiswithaviewto includesuch imbalance management services in the regulations on such terms and conditions as may be decidedbytheBoard.
5.Interpretationofregulations
Ifanyquestionarisesastotheinterpretation oftheseregulations, thesameshallbedecidedbythe
Board.
K.RAJESWARARAO,OSD(R) [ADVT.-III/4/Exty./51]
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