PETROLEUM RULES, 2002
(1) These rules may be called The Petroleum Rules, 2002.
(2) They shall come into force on the date of their publication in the Official gazette.
1. Vide G.S.R. 204(E), dated 13th March, 2002, published in the Gazette of India, Extra., Pt. II, Sec. 3(i), dated 13th March, 2002.
(1) In these rules, unless the context otherwise requires,—
(i) “Act” means the Petroleum Act, 1934 (30 of 1934);
(ii) “adequate”,—
(a) in relation to ventilation, means where the concentration of the inflammable gas in a gas-air mixture does not reach the lower inflammable limit, or
(b) where applied to provision of facilities for fire-fighting, means the facilities so provided are in accordance with the prevalent recognized standards or codes of safety;
(iii) “approved”,—
(a) where applied to specification, means that the specification authorised by the Chief Controller, including the following
(1) No person, shall deliver or dispatch any petroleum to anyone in India other than the holder of a storage licence issued under these rules or his authorized agent or a port authority or railway administration or a person who is authorized under the Act to store petroleum without a licence.
(2) The petroleum delivered or dispatched under sub-rule (1) shall be of the class, and shall not exceed the quantity, which the person to whom it is delivered or dispatched is authorised to store with or without a licence under the Act.
(3) Notwithstanding anything contained in sub-rule (2) petroleum Class B not exceeding 15,000 litres in quantity packed in sealed airtight approved containers may be dispatched to a person not holding a storage licence provided that the person dispatching the petroleum has satisfied himself that prior arrangements h
(1) Containers exceeding one litre in capacity for petroleum Class A and five litres in capacity for petroleum Class B or petroleum Class C, shall be of a type approved by the Chief Controller.
(2) Where the approval of the Chief Controller is sought to a type of container not previously approved, an application together with copies of drawings thereof to scale showing the design, materials to be used, the method of construction and capacity of the container together with two sample containers and a fee of rupees one thousand for scrutiny shall be submitted to the Chief Controller.
(3) Nothing in sub-rules (1) and (2) shall apply to containers in the possession of the Defence Forces of the Union.
(1) Containers for petroleum Class A shall be constructed of tinned, galvanized or externally rust proofed sheet iron or steel and be of a type approved by the Chief Controller:
Provided that glass bottles of a capacity not exceeding 2.5 litres and of a type approved by Chief Controller can be used as a container for laboratory chemicals classified as petroleum Class “A”.
(2) The containers shall be so constructed and secured as not to be liable except under circumstances of gross negligence or extraordinary accident to become defective, leaky or insecure in transit and they shall be kept in proper repair.
(3) The containers shall have well-made filling aperture which shall be fitted with well-fitting and secure air tight screw plugs or screw caps or other caps.
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(1) Containers for petroleum Class B or petroleum Class C shall be constructed of steel or iron and be of a type approved by the Chief Controller.
(2) An air space of not less than 5 per cent. of its capacity shall be kept in each container for petroleum Class B and not less than 3 per cent. of its capacity in each container for petroleum Class C.
(3) Nothing in this rule shall apply to containers in the possession of the Defence Forces of the Union.
Legal Comments
"Rule 154(2) Appealability" - Rule 154(2) of the Petroleum Rules, 2002 governs appeals; court quashed a Sessions Judge’s order for entertaining an appeal under Rule 154(2) where the order challenged (communication dated 13-6-2016) was not an appealable order. ["[DEEPAK SUNDARLAL MURARKA VS HARJIMAL ONKARMAL (M/S) - 2021 0 Supreme(Bom) 433] Jurisdictional Error - Petroleum Rules - 154 - The court quashed..."]
"NOC and site rights" - The Rules enable No Objection Certificate (NOC) for storage/licensing; lack of lawful possession or right to use the site can justify cancellation/suspension of NOC; but procedural fairness (notice/hearing) is required in such cancellations. [ "[National Company, Represented by its Managing Director, Arun A Raja VS Joint Chief Controller of Explosives Ministry of Commerce and Industry, Petroleum & Explosives Safety Organization (PESO), (Formerly Department of Explosives), Egmore, Chennai - 2020 0 Supreme(Mad) 121], [Kallu VS State of U. P. - 2023 0 Supreme(All) 1576], [Town Planner vs T.M.Biju - 2026 0 Supreme(Ker) 151] Kerala/ Tamil Nadu lineages; Rule 144 & 150]"
"Overriding municipal rules" - Petroleum Rules, 2002 may override local municipal regulations (e.g., Kerala/KMBR conflict; rulings hold Petroleum Rules govern location/construction of fuel tanks; municipal rules cannot supersede where conflict arises). [ "[Town Planner vs T.M.Biju - 2026 0 Supreme(Ker) 151] Kerala Municipality Building Rules override; [T. M. BIJU S/O MADHAVAN VS INDIAN OIL CORPORATION LTD. - 2022 0 Supreme(Ker) 738] Kerala/KMBR precedence over municipal rules"]
"Natural justice in NOC cancellations" - Cancellation of NOC without hearing violates natural justice; High Courts can quash such cancellations and remand for hearing, particularly when Rule 144/150 procedures are implicated. [ "[Kallu VS State of U. P. - 2023 0 Supreme(All) 1576], [Bharat Petroleum Corporation Ltd. VS State Of Punjab - 2005 0 Supreme(P&H) 888], [T. M. BIJU S/O MADHAVAN VS INDIAN OIL CORPORATION LTD. - 2022 0 Supreme(Ker) 738]"]
"Writs and Rule 154 remedy not exclusive" - Alternative remedies in Rule 154 do not bar writ petitions where natural justice or vires issues exist; High Courts can entertain writs despite availability of appellate remedies. [ "[Kallu VS State of U. P. - 2023 0 Supreme(All) 1576], [Territory Manager-Retail Bharat Petroleum Corporation Ltd. Tondiarpet, Chennai VS Designated Authority/Commissioner Of Police Greater, Chennai Police, Egmore - 2012 0 Supreme(Mad) 3429]"]
"Site possession vs. right to site" - The right to site under Rule 153/ Rule 144 discussions centers on the site on which petroleum is stored rather than mere possession; a lease expiration can terminate rights to store/petroleum licensing. [ "[National Company, Represented by its Managing Director, Arun A Raja VS Joint Chief Controller of Explosives Ministry of Commerce and Industry, Petroleum & Explosives Safety Organization (PESO), (Formerly Department of Explosives), Egmore, Chennai - 2020 0 Supreme(Mad) 121], [H. P. Auto Care, Dealer, Hindustan Petroleum Corporation Ltd. , operated by its Land Owner R. Ramkumar Coimbatore District & Others VS The Secretary, Ministry of Petroleum, Oil and Natural Gas, Government of India, New Delhi & Others - 2009 0 Supreme(Mad) 5561]"]
"Consent to Establish and CPCB/MoRTH norms" - Consents to Establish (from authorities like CPCB) and adherence to MoRTH/IRC guidelines are considered; noncompliance can justify denial, but guidelines lack statutory force if not embedded in Rules, and due process is required. [ "[Chemfab Alkalis Limited VS District Magistrate cum District Collector & Others - 2006 0 Supreme(Mad) 3259], [Prasad K vs Land Revenue Commissioner - 2025 0 Supreme(Ker) 3095]"]
"Rule 144 format and compliance" - NOC forms must conform to Rule 144; later amendments (proforma) do not invalidate earlier valid NOCs; but non-compliance with Rule 144(5) (time-bound processing) can render NOC invalid. [ "[Mirza Mohd. Iqbal Beg VS U. O. I & Ors. - 2011 0 Supreme(J&K) 503], [Universal Agencies VS State of Tamil Nadu - 1995 0 Supreme(Mad) 193], [Town Planner vs T.M.Biju - 2026 0 Supreme(Ker) 151]"]
"Rule 150 grounds for cancellation" - NOC cancellation under Rule 150 requires the licensee ceasing to have the right to use the site; mere public interest or safety concerns must be balanced with procedure and notice. [ "[LAXMI SERVICE STATION, INDORE VS UNION OF INDIA - 2022 0 Supreme(MP) 615], [T. M. BIJU S/O MADHAVAN VS INDIAN OIL CORPORATION LTD. - 2022 0 Supreme(Ker) 738], [Prasad K vs Land Revenue Commissioner - 2025 0 Supreme(Ker) 3095]"]
"Temporary or conditional NOCs" - Conditional NOC (e.g., with restrictions like RON; compliance with Rule 144(5) and CPCB/fire-safety norms) may be set aside if conditions are not properly stated or if due process is lacking. [ "[Bilkees Hamid VS State of J&K& Ors. - 2015 0 Supreme(J&K) 661], [Nun Kun Filling Station VS Union of India - 2018 0 Supreme(J&K) 1036], [A. Thiagarajan VS Indo Burmah Petroleum Corporation & Another - 2003 0 Supreme(Mad) 206]"]
"Keystone ruling on NOC vs. lease expiry" - When lease expiry ends possession rights (C. Albert Morris line), licensees may be treated as having ceased rights to store; licensing authority may suspend/cancel licences accordingly, subject to due process. [ "[National Company, Represented by its Managing Director, Arun A Raja VS Joint Chief Controller of Explosives Ministry of Commerce and Industry, Petroleum & Explosives Safety Organization (PESO), (Formerly Department of Explosives), Egmore, Chennai - 2020 0 Supreme(Mad) 121], [Vijay S/o. Harinarayan Choudhary VS Indian Oil Corporation Ltd. - 2023 0 Supreme(Bom) 645]"]
"Interplay of central regulation and local authorities" - Central Petroleum Rules (Rule 131/141 etc.) require licensing authorities to ensure compliance with site plans, safety, and 100m protected zones; local authorities cannot override these where rules apply. [ "[T. M. BIJU S/O MADHAVAN VS INDIAN OIL CORPORATION LTD. - 2022 0 Supreme(Ker) 738], [S. V. R. Saroja VS S. V. Matha Prasad - 2013 0 Supreme(Mad) 4114], [K. H. Rafia & Another VS Dr. M. Murugan & Others - 2009 0 Supreme(Mad) 4815]"]
"Locus standi of existing outlets" - Existing dealers may have standing to challenge new outlets near them; policy changes cannot undermine established allotments; courts may protect existing dealers against arbitrary openings. [ "[Reliance Industries Ltd, Represented by its State Commercial Manager VS The Commissioner of Land Revenue, Trivandrum - 2007 0 Supreme(Ker) 177], [Thommachan Jacob, S/o. Jacob Philip VS State Of Kerala, Rep. By the addl. Chief secretary - 2021 0 Supreme(Ker) 594]"]
"LPG/LNG context" - CentralOrders (LPG) and LNG transactions can involve separate regulatory considerations; essential compliance with Rule 144 and central licensing remains essential; parallel marketing considerations exist but do not negate statutory framework. [ "[Shri Shakthi LPG Limited VS Government Of A. P. , Dept. of Civil Supplies - 1998 0 Supreme(AP) 951], [Essar Steel Ltd. VS Union of India - 2016 3 Supreme 1]"]
"Testing and evidentiary standards (Rule 193)" - Testing of petroleum samples must follow Rule 193 (method of test) with multiple samples and corroborating IS standards; improper testing cannot ground charges or licensing actions. [ "[Narsai Highway Filling Station, Patancheru, Medak District VS Indian Oil Corporation Ltd. , Hyderabad - Andhra Pradesh (2005)], [ASIASOFT (INDIA) PVT LTD VS GLOBESYN TECHNOLOGIES LTD. - 2005 0 Supreme(Del) 480]"]
"Petroleum Rules as comprehensive code" - The Petroleum Rules, 2002 function as a complete code for storage/licensing, construction, safety, and permits; State laws like KMBR are expressly subordinate in this domain. [ "[Town Planner vs T.M.Biju - 2026 0 Supreme(Ker) 151], [S. V. R. Saroja VS S. V. Matha Prasad - 2013 0 Supreme(Mad) 4114], [T. M. BIJU S/O MADHAVAN VS INDIAN OIL CORPORATION LTD. - 2022 0 Supreme(Ker) 738]"]
"Remedies post-cacial cancellation" - When NOC is cancelled, directions often include to reconsider or issue fresh NOC after proper hearing and compliance; courts urge adherence to Rule 144/150 procedures. [ "[Mirza Mohd. Iqbal Beg VS U. O. I & Ors. - 2011 0 Supreme(J&K) 503], [Bharat Petroleum Corporation Ltd. VS State Of Punjab - 2005 0 Supreme(P&H) 888], [Town Planner vs T.M.Biju - 2026 0 Supreme(Ker) 151]"]
"Public safety as governing principle" - CPCB distance norms and fire/safety considerations are central to NOC issuance/revocation; however, adherence must be grounded in statutory provisions and due process. [ "[Prasad K vs Land Revenue Commissioner - 2025 0 Supreme(Ker) 3095], [Prasad K vs Land Revenue Commissioner - 2025 0 Supreme(Ker) 3095], [Chemfab Alkalis Limited VS District Magistrate cum District Collector & Others - 2006 0 Supreme(Mad) 3259]"]
"Arbitration vs. writs in disputes" - For certain commercial disputes (e.g., dealership terminations, testing/adulteration claims), arbitrators may be preferred; High Courts may reference arbitral processes but maintain jurisdiction for legal and statutory questions. [ "[ASIASOFT (INDIA) PVT LTD VS GLOBESYN TECHNOLOGIES LTD. - 2005 0 Supreme(Del) 480], [Liberty Footwear Company VS Liberty International - 2023 0 Supreme(Del) 2267]"]
"Judicial approach to conflicting rules" - When there is conflict between specific Petroleum Rules provisions and general municipal/building rules, the specific Petroleum Rules prevail. [ "[Town Planner vs T.M.Biju - 2026 0 Supreme(Ker) 151]"]
"Remedial costs and costs orders" - In many cases, writ petitions result in dismissal with costs or no costs awarded, depending on court discretion and merits. [ Examples cited across sources]
All empty tanks which had petroleum Class A or petroleum Class B and empty containers which had petroleum Class A shall, except when they are opened for the purpose of filling or cleaning and rendering them free from petroleum vapour, be kept securely closed until they have been thoroughly cleaned and freed from petroleum vapour.
(1) No person shall cause to be repaired or repair by the use of hot work any tank or container which had petroleum unless it has been thoroughly cleaned and freed from petroleum and petroleum vapour or otherwise prepared for safely carrying out such hot repair and certified, in writing, by a competent person to have been so repaired.
(2) The certificate required under sub-rule (1) shall be preserved by the repairer for a period of at least three months and produced to an inspector on demand.
All due precautions shall be taken at all times to prevent escape of petrolum into any drain, sewer, and harbour, river or watercourse or over any public road or railway line.
No child under the age of eighteen years and no person who is in a state of intoxication shall be employed on the loading, unloading or transport of petroleum or in any premises licensed under these rules.
Unless expressly provided in these rules, no person shall smoke and no matches, fires, lights or articles or substances capable of causing ignition of petroleum shall be allowed, at any time in proximity to a place where petroleum is refined, stored or handled or in a vehicle’s carriage or vessel in which petroleum is transported.
Section R.11 of the Petroleum Rules, 2002, emphasizes the prohibition of smoking, open flames, lights, and other sources of ignition in areas handling petroleum, aiming to prevent fire hazards and ensure safety in petroleum operations.
Section R.11 explicitly prohibits smoking, lighting fires, or using any articles that could ignite petroleum or its vapors unless expressly permitted by the rules. It mandates strict control over sources of ignition in petroleum handling zones.
The section applies to all persons involved in storage, transportation, handling, or processing of petroleum. It covers any area where petroleum is present, including loading/unloading zones, storage facilities, and transportation vehicles.
While the section itself primarily provides a safety regulation, violations related to non-compliance can attract penalties under the Petroleum Act, 1934, including fines and imprisonment. Specific penalties are detailed in related provisions and notifications.
Note: The analysis integrates the scope, safety importance, enforcement, and penalties associated with Section R.11, as derived from the provided sources, emphasizing its role in ensuring safety and legal compliance in petroleum operations.
(1) No person shall commit or attempt to commit any act, which may tend to cause a fire or explosion in or about any place where petroleum is refined, stored or handled, or any vehicle’s carriage or vessel in which petroleum is transported.
(2) Every person storing petroleum and every person in charge of or engaged in the storage, handling or transport of petroleum shall at all times—
(a) comply with the provisions of these rules and conditions of any licence relating thereto;
(b) observe all precautions for prevention of accident by fire or explosion; and
(c) prevent any person from committing any act referred to in sub-rule (1).
(1) All fees payable under these rules to the Chief Controller shall be paid by a crossed bank draft drawn in favour of the Chief Controller of Explosives, Nagpur. The bank draft shall be drawn on any nationalized bank, payable at Nagpur. Fees upto Rupees one hundred in each case may be paid in cash at the office of the Chief Controller.
(2) Fees payable to a Controller shall be paid by a crossed bank draft drawn in favour of the Controller of Explosives to whom the payment is made. The bank draft shall be drawn on any nationalized bank payable at the station where the office of the Controller to whom payment is to be made is located. Fees upto rupees one hundred in each case may also be paid in cash at the office of the Controller concerned.
(3) Fees payable to District Authority or any other authority under these rules shall be paid in
Petroleum, other than petroleum which may be stored without a licence under sections 7, 8 and 9 of the Act, shall not be imported into India except under a licence granted under these rules:
Provided that, such petroleum products may also be imported by a person not having a licence if adequate advance arrangements are made by such person to receive and store the imported petroleum product in licensed premises.
(1) Nothing in this chapter applies to petroleum Class B or petroleum Class C comprising in a ship’s stores and manifested as such.
(2) Nothing in rules 14, 19 and 26 shall apply to petroleum imported by the Defence Forces of the Union.
(1) Petroleum shall not be imported into India by sea except through the ports which are duly approved for this purpose by the Ministry of Shipping, Government of India, in consultation with the Chief Controller and declared as Custom’s ports by the Commissioner of Customs.
(2) Notwithstanding anything contained in sub-rule (1), the Commissioner of Customs may, on the recommendation of the Chief Controller, allow import of petroleum Class B or petroleum Class C, otherwise than in bulk, through any other port.
(3) Adequate fire fighting facilities as per OISD Standard-156 shall be provided at the ports handling petroleum.
(4) Person(s) desirous of seeking approval in respect of proposed facilities for unloading of petroleum for the purpose of import under sub-rule (1) or of making modifications
(1) The master of every ship carrying petroleum shall deliver to the pilot before entering any port approved under sub-rule (1) of rule 16, a written declaration in Form I under his signature:
Provided that no such declaration is necessary if the agent of the ship deliver such a declaration signed by him to the Conservator before the arrival of such ship.
(2) The pilot shall make over the said declaration to the Conservator without delay and the Conservator shall forward the declaration to the Commissioner of Customs of the port with all convenient despatch.
(1) Every ship having petroleum on board shall be anchored at such anchorage as the Conservator shall specify in this behalf and shall not leave such anchorage without the general or special order of the Conservator and subject to such conditions as may be specified in such order.
(2) The anchorage shall in no case be the same as that for vessel laden with explosives and shall be at such distance from the anchorage for vessels laden with explosives as to render it impossible for a fire originating at the former anchorage to affect vessels at the latter:
Provided that nothing in this rule shall apply to ships having on board petroleum Class C.
(1) Every person desiring to import petroleum shall furnish personally or through his agent to the Commissioner of Customs—
(a) certificate of storage accommodation in Form II signed by such person or his agent; and
(b) the licence or an authenticated copy of the licence for the import and storage of such petroleum:
Provided that nothing in this rule shall apply to the importation, otherwise than in bulk, of petroleum exempted under sections 7, 8, 9 and 10 of the Act:
Provided further that the furnishing of a licence under clause (b) shall not be necessary for the importation of petroleum Class C in bulk in quantity exempted under section 7 of the Act.
(2) Notwithstanding anything contain
(1) No imported petroleum shall be landed except with the permission of the Commissioner of Customs.
(2) If the Commissioner of Customs after receiving—
(a) of the testing officer’s reports on the petroleum;
(b) the certificate of storage accommodation in Form II if required under rule 19; and
(c) the licence or an authenticated copy of the licence if required under rule 19,
and after making such further inquiries, as he deems necessary, is satisfied that the petroleum can be lawfully imported and that there is suitable accommodation for it, he shall permit it to be landed.
(3) If the Commissioner of Customs is satisfied that any petrole
.—(1) Notwithstanding anything contained in rule 20 where the consignee furnishes a guarantee to re-ship the petroleum if the testing officer’s report proves unfavourable, the Commissioner of Customs may in anticipation of the testing officer’s report permit any petroleum which he believes to be petroleum Class B or petroleum Class C to be discharged into boats or to be landed.
(2) The permission granted under sub-rule (1) shall be subject to the conditions that the boats into which the petroleum is discharged shall remain at such place as the Conservator may specify or that the petroleum shall be landed at a landing place duly specified for the purpose by him and stored in an installation licensed under these rules.
Subject to the provisions of Part II of Chapter III, petroleum imported in bulk shall be discharged into storage tanks on shore either directly or by means of barges or lighters specially constructed for carrying petroleum in bulk and only at such places as the Conservator may by general or special order direct.
(1) Subject to the provision of Part II of Chapter III, petroleum imported otherwise than in bulk shall be landed either at jetties provided for the purpose, or in barges or lighters and only at such places as the Conservator shall direct.
(2) No petroleum contained in containers shall be landed unless such containers are free from leakage and are of such strength or construction as not to be liable to be broken or to leak except in cases of gross negligence or extraordinary accident:
Provided that petroleum contained in containers, which do not satisfy the requirements of this sub-rule, may subject to provisions of Part II of Chapter III and to such conditions as the Conservator may impose, be landed at separate landing place approved for the purpose.
Petroleum may be transhipped from one ship to another for conveyance to any other port, whether within or beyond the territory of India subject to the provisions of Part II of Chapter III.
No petroleum shall be imported into India by land except at places specially authorized for the purpose by the Central Government.
Every person desiring to import petroleum by land shall furnish to the Commissioner of Customs—
(a) a declaration in Form I signed by him or his agent;
(b) a certificate of storage accommodation in Form II signed by him or his agent; and
(c) the licence or an authenticated copy of the licence held for the importation and storage of such petroleum:
Provided that nothing in this rule shall apply to the importation of petroleum exempted under sections 7, 8 and 9 of the Act:
Provided further that the furnishing of licence under clause (c) shall not be necessary for the importation of petroleum Class C, in bulk, in quantity exempted under section 7 of the Act.
(1) No petroleum shall be unloaded except with the permission of the Commissioner of Customs.
(2) If the Commissioner of Customs, after receiving—
(a) the testing officer’s report on the petroleum;
(b) the certificate in Form II, if required by rule 26; and
(c) the licence, if required by rule 26,
and after making such further inquiries as he deems necessary, is satisfied that the petroleum can be lawfully imported and that there is suitable accommodation for it, he shall permit it to be unloaded.
(3) If the Commissioner of Customs is satisfied that any petroleum imported is not intended to be stored in India but is intended to be dispa
No leaky tank or container containing petroleum shall be tendered for transport.
Barrels, drums and other containers filled with petroleum shall be loaded with bung upwards.
Save as provided in rules 38, 39 and 52 and clause (b) of rule 60, no ship, vessel or vehicle shall carry petroleum Class A or petroleum Class B and Class C in bulk if it is carrying passengers or any combustible cargo other than petroleum:
Provided that nothing in this rule shall prohibit the use of dunnage for packing purposes in the case of coast wise transport of petroleum Class A otherwise than in bulk.
No person while engaged in loading or unloading or transporting shall smoke or carry matches, lighters or other appliances capable of producing ignition or explosion.
(1) Petroleum shall not be loaded into, or unloaded from, any ship, vessel or vehicle between the hours of sunset and sunrise, unless—
(a) adequate electric lighting is provided at the place of loading or unloading and the provisions of Chapter IV are complied with; and
(b) adequate fire-fighting facilities with personnel are kept ready at the place of loading for immediate use in the event of a fire.
(2) Nothing in this rule shall apply to the refuelling of an aircraft by vessels or vehicles licensed under these rules in accordance with the provisions of the Indian Aircraft Rules, 1937, or to the refueling of an aircraft by the Defence Forces of the Union.
Explanation.—For the purposes of this rule the Chief Controller shall determ
(1) Petroleum in bulk shall not be carried by water, except in a ship or other vessel licensed for the carriage of petroleum in bulk by an officer appointed by the Central Government in this behalf (hereinafter in this Part referred to as the licensing authority) and the petroleum shall be stored in such part of the ship or other vessel and in such manner as may be approved by general or special order by the licensing authority after consultation with the Chief Controller:
Provided that—
(a) nothing in this rule shall apply to vessels registered in a country other than India importing petroleum;
(b) petroleum in tank vehicles may, with the permission, in writing, of the Chief Controller and subject to such conditions as he may specify, be transported across a river by a ferry.<
Every ship or other vessel carrying petroleum in bulk, other than a ferry permitted to transport tank vehicles under clause (b) of the proviso of sub-rule (1) of rule 33, shall be made of iron or steel well and substantially constructed with scantlings of ample dimensions in proportion to the size of the vessel:
Provided that the licensing authority may, in special circumstances, allow use of such ships or other vessels constructed of materials other than iron or steel under such conditions as it may, in consultation with the Chief Controller, specify.
The following provisions shall apply for the transport of petroleum other than petroleum Class C in ships or other vessels, namely:—
(a) all tanks shall be fitted with independent approved filling and suction pipes and valves, or with stand pipes with blank flanges, all pipes being carried down nearly to the bottom of the tanks, and no petroleum in bulk shall be taken on board or discharged except through such pipes and valves, unless otherwise permitted by the Chief Controller in writing;
(b) all tanks shall be fitted with manholes having screw-down cover with petroleum-tight joints and, in the case of tanks intended for use with petroleum Class A, with ventilators or relief valves of approved pattern properly protected with wire gauge of a mesh not less than 11 meshes to linear centimetre; and
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The following conditions shall be observed in self propelled barges transporting petroleum other than petroleum Class C, namely:—
(a) the whole of the machinery shall be at the stern of the barge and shall be entirely separated from the cargo by a cofferdam consisting of two transverse petroleum-proof bulkheads separated by a space of at least 15 centimetres;
(b) each exhaust outlet from the machinery shall be fitted with an approved type of spark arrester;
(c) no petrol-driven engine shall be used either as main engine or for the purpose of driving any auxiliary machinery or pumps;
(d) a quick-action closing valve which can be operated from outside the machinery space, shall be fitted to each fuel feed pipe at its ju
Petroleum in bulk shall not be transported in a barge or flat unless the barge or flat is self-propelled or is in tow of or otherwise, attended by, a steamer or tug and carrier—
(a) at least four fire extinguishers suitable for extinguishing oil fires and a covered sand box, on deck, containing at least 0.20 cubic metres of dry sand;
(b) a suitable hammer of non-sparking metal; and
(c) a red flag.
(1) No ship or other vessel shall carry petroleum in bulk if it is carrying passengers, or any inflammable cargo other than petroleum or coal.
(2) This rule shall not apply to petroleum Class C used as fuel and carried in cellular double bottoms under engine and boiler compartment and under ordinary holds; such fuel oil tanks and installations connected therewith shall comply with the provisions of the Indian Merchant Shipping (Construction and Survey of Passenger Steamers) Rules, 1956.
Petroleum Class A shall not be transported as cargo by an unberthed passenger ship as defined in the Merchant Shipping Act, 1958 (44 of 1958):
Provided that the certifying officer referred to in section 243 of the Merchant Shipping Act, 1958 (44 of 1958), may in cases where he is satisfied that no other means of transporting the petroleum are available, permit petroleum Class A in quantity not exceeding 1,250 litres to be transported otherwise than in bulk by an unberthed passenger ship subject to—
(a) the condition that no more persons shall be carried in the ship than can with safety be accommodated in the ship’s life-boats in case of an accident; and
(b) such other conditions as the certifying officer may, after consultation with the Chief Controller, impose:
No country craft shall carry petroleum Class A if it is carrying passengers.
(1) No steamer or tug employed in towing or otherwise attending a barge, flat or lighter carrying petroleum, other than petroleum Class C in bulk, shall at the same time tow or otherwise attend any other vessel carrying on inflammable cargo other than petroleum or coal.
(2) No such steamer or tug shall carry any inflammable cargo other than petroleum or coal.
(3) All such steamer or tugs shall be fitted with efficient spark arrestors.
(1) Before any petroleum is discharged from a ship or vessel, the holds of such vessels shall be thoroughly ventilated:
Provided that nothing in this sub-rule shall apply to any vessel carrying petroleum Class A not exceeding 30 litres or petroleum Class B not exceeding 2,500 litres or petroleum Class C.
(2) After all petroleum has been discharged from any such vessel, the holds, tanks and bilge’s of the vessel shall be rendered free from inflammable vapour.
(3) Sub-rule (2) shall not apply to the tanks of a ship importing petroleum which leaves the port without delay after unloading of cargo or remains only for the purpose of taking on board bunkers, stores or ballast or for such other purpose as may be approved by the Conservator, if the tanks of every such ship are securely fastened down im
The master or other officer-in-charge of any vessel which had carried petroleum on board whether as a cargo or as a fuel, or any vessel licensed under rule 33 shall be responsible to see that—
(a) all due precautions are taken for the prevention of accidents due to ignition of petroleum or petroleum vapour;
(b) so long as there is petroleum or petroleum vapour in a tank, all openings from the tank to the atmosphere except the gas escape line are kept closed and locked or otherwise securely fastened; and when it is necessary to take dips or samples, the sludge plugs or sighting ports are closed immediately after such dips or samples are taken:
Provided that subject to the provisions of clause (c) the master or officer in-charge may cause the necessary openings t
The Agency, which owns vessels meant for breaking or breaching, before undertaking breaking of such vessels, called ship breaking, shall be responsible to see that—
(a) all due precautions are taken for the prevention of accidents due to ignition of petroleum or petroleum vapour;
(b) so long as there is petroleum vapour in a tank, all openings from the tank to the atmosphere except the gas escape line are kept closed and locked or otherwise securely fastened; and subject the provisions of clause (c), the agency undertaking the ship breaking activities may cause the necessary openings to be opened or unlocked for cleaning the tanks or for making the tank free from petroleum vapour or for other sufficient reason;
(c) no person enters a tank or an enclose
(1) Petroleum in bulk shall not be loaded or unloaded into or from any ship/barge at any place unless—
(a) the location is notified or permitted by the Central Government and the facilities are approved by Chief Controller under rule 16, in case of import, or
(b) the location and facilities for loading or unloading are approved by the Chief Controller, in cases other than import.
(2) Person(s) seeking approval under sub-rule (1)(b) of this rule shall submit to Chief Controller—
(a) specification and plans drawn to scale in quadruplicate, indicating—
(i) surroundings and all protected works within 500 metres of the loading or unloading facilities on all sides showing t
When the loading or unloading of petroleum has commenced, such loading or unloading shall proceed with due diligence and, if it is discontinued, the tanks, and holds of the ships or other vessels concerned and all loading or unloading valves shall be closed immediately.
No fire, naked light, fuses, matches or other appliances for producing ignition or explosion and no smoking shall be allowed on board any barge, flat or lighter carrying petroleum in bulk or on board any vessel used for the transport of petroleum Class A otherwise than in bulk or for the transhipment of petroleum to or from any vessel within the limits of any port:
Provided that nothing in this rule shall prevent the use on a self-propelled barge of the machinery or propulsion.
At all times during loading or unloading of a ship or other vessel and until such time as all petroleum shall have been loaded into or unloaded from the holds or tanks and the holds or tanks shall have been securely closed down and, in the case of unloading rendered free from inflammable vapour, there shall be no fire or artificial light or smoking on board such ship or other vessel or within 30 metres of the place where the petroleum is being loaded or unloaded:
Provided that nothing in this rule shall apply—
(i) to the use of lamps, cookers or similar apparatus, electric or otherwise so designed, constructed and maintained as to be incapable of igniting inflammable vapour or in the case of petroleum Class C the use of gally fires;
(ii) to the unloading or loading of a ship
Vessels unloading or loading petroleum shall have adequate fire-extinguishing appliances so disposed that they can be put into immediate use.
(1) Petroleum Class A shall not be conveyed to the shore from, or loaded into the same vessel simultaneously with petroleum Class B or petroleum Class C.
(2) The Chief Controller may, by written order exempt specially any particular operation from the provisions of sub-rule (1) if separate and distinct pipelines and pumps are provided for loading or unloading of petroleum Class A simultaneously with petroleum Class B or petroleum Class C.
Petroleum which has been imported into any port approved under sub-rules (1) and (2) of rule 16 and which has not been tested at such port in accordance with the rules contained in Chapter X, shall not be transported to any port other than a port at which importation is permitted under sub-rule (1) of rule 16 and in accordance with the provisions of all the rules in Chapter II.
(1) The rules in this Part apply only to the transport coastwise of Petroleum Class A otherwise than in bulk.
(2) Unless otherwise expressly provided in this Part, nothing contained in Part II of this Chapter shall apply to any petroleum transported in accordance with this Part.
Petroleum Class A may be transported otherwise than in bulk by an unberthed passenger ship as defined in the Merchant Shipping Act, 1958 (44 of 1958), in accordance with the provisions of rules 29, 30, 39 and 54 to 60 (both inclusive).
Petroleum Class A may be transported otherwise in bulk by a country craft or steam or motor vessel other than unberthed passenger ship as defined in the Merchant Shipping Act, 1958 (44 of 1958) subject to the provisions of rules 29, 30, 39 and 54 to 60 (both inclusive), if the quantity of petroleum does not exceed—
(a) in the case of country craft, the licensed carrying capacity of the vessel after taking into account the weight of barrels or tins in which the petroleum is carried; or
(b) in the case of steam or motor vessels, 15 tonnes.
(1) Petroleum Class A shall not be carried below deck in decked vessels unless there are efficient ventilators in the hold.
(2) Half of the ventilators referred to in sub-rule (1) shall be carried down nearly to the bottom of the holds and the other half of such ventilators terminated only a short distance below the deck, the short ventilators shall be labelled “Outlet or to Leeward” and the long ventilators shall be labelled “Inlet or to Windward”, such ventilators shall have large cowl heads, the openings being covered with double copper or non-corroding metal gauze not less than 11 meshes per linear centimeter.
In all vessels other than country craft, a solid gas-tight bulkhead without openings, and in country craft a solid bulkhead without openings, shall be between the hold and the afterdeck where the crew are accommodated, and in vessels fitted with a poop the bulkhead shall be placed immediately in front of the poop. In decked vessels the bulkhead shall reach up to the deck, in all other vessels it shall reach to within 15 centimetres of the gunwale.
(1) No fire, naked light of any description and no smoking shall be allowed on any part of the vessel transporting petroleum Class A except abaft the solid bulkhead.
(2) The navigational lights on any such vessel shall be carried abaft the bulkhead.
Fire extinguishers suitable for fighting oil fires shall be placed at convenient points on any vessel transporting petroleum Class A. Not less than two such fire-extinguishers shall be placed on the afterdeck.
Steam or motor-vessels not specially constructed for the carriage of petroleum shall not carry petroleum unless they are constructed of iron or steel or any other material approved by the Chief Controller.
On steam or motor vessels not specially constructed for the carriage of petroleum—
(a) any petroleum shall either be carried in separate compartments which shall be gas-tight and shall be effectively sealed, or in a hold in which there are efficient ventilators in accordance with sub-rule (2) of rule 54 or on deck in accordance with rule 60;
(b) petroleum Class A shall be packed in containers complying with the provisions of rules 4 and 5;
(c) special precautions shall be taken against smoking and the use of lights or fire of any kind while cargo is being loaded or unloaded or while the hatches are off, or any deck openings are uncovered, before any lights are used in compartment which contains petroleum. Precautions shall also be taken to ensure that the space is clear
Petroleum may be carried in deck in steamer or motor-vessels not specially built for the carriage of petroleum, subject to the following conditions, namely:—
(a) in cargo ships petroleum Class A shall not occupy more than 50 per cent. of the open deck area and shall be so stowed as not to interfere with the navigation of the ship or make it unseaworthy;
(b) in passenger ships a limited quantity of petroleum Class A may be carried provided that proper precautions are taken regarding stowage and keeping the packages away from passengers, promenade or deck space;
(c) the petroleum shall be protected from the direct rays of the sun by the use of canvas awnings or otherwise; and
(d) conspicuous notices shall be posted up,
No petroleum Class A shall be transported in a country craft unless the following conditions are satisfied, namely:—
(a) the petroleum shall be carried—
(i) in 200 litres capacity steel barrels, the screw bungs of such barrels being well fitting and sealed; or
(ii) in 200 litres capacity sealed steel drums, not more than three tiers of which may be carried on any single vessel; or
(iii) in 10 litres capacity sealed tins, not more than six tiers of which may be carried on any single vessel; or
(b) all barrels or tins shall be carefully examined and no leaky barrel or tin shall be taken on board the craft;
The provisions of this Part shall apply to the transport of petroleum on land by vehicles except transport of—
(a) petroleum Class A in quantity not exceeding 100 litres and petroleum of any other class, otherwise than in bulk, subject to the provisions of rule 67;
(b) petroleum of any class transported by the Defence Forces of the Union.
(1) Every tank vehicle used for the transport of petroleum, in bulk on land shall be built, tested and maintained in accordance with the requirements laid down in the Third Schedule and be of a type approved in writing by the Chief Controller:
Provided that the Chief Controller may under exceptional circumstances to be recorded in writing, waive any of the requirements of the third Schedule. This will, inter alia, include approvals for trials of better quality vehicles that will contribute to enhancement of safety of petroleum transportation by road under Indian conditions.
(2) The tank shall be fabricated and mounted on the vehicle chassis by a manufacturer approved by the Chief Controller. Such a manufacturer shall apply to the Chief Controller for approval with particulars of facilities and competent persons available with him and a s
(1) In this Part, “the tank forming part of a tank vehicle” shall be deemed to include any number of tanks on the same chassis and any limitation herein specified on the capacity of a tank shall be construed so as to permit the tank containing the quantity specified under varying degrees of temperature.
(2) The net carrying capacity of a tank shall be 97 per cent. of its gross carrying capacity in the case of petroleum Class A and petroleum Class B and 98 per cent. in the case of petroleum Class C.
(3) The net carrying capacity of a tank truck or a tank semi-trailer shall not exceed 25 kilolitres of petroleum except in case of air-craft refueller in which case it should not exceed 50 kilolitres and the net carrying capacity of any tank trailer should not exceed 5 kilolitres of petroleum.
(4) T
Tank vehicle meant for the carriage of petroleum in bulk shall not be used for any other purpose except when so authorized by the Chief Controller in writing.
(1) A tank trailer not exclusively used for transporting petroleum shall not be attached to any vehicle for transporting petroleum.
(2) A tank trailer transporting petroleum shall not be attached to any vehicle other than a vehicle used exclusively for transporting petroleum and not more than one trailer shall be so attached.
(3) A tank trailer shall not be attached to a tank semi-trailer or a trailer.
(4) A tank trailer or tank semi-trailer shall have reliable brakes on all wheels which shall be capable of efficient operation from driver’s seat of the vehicle towing the trailer.
(5) The width of the tank trailer or a tank semi-trailer shall be less than the overall width of the towing vehicle.
(6) A tan
(1) Every vehicle on which petroleum otherwise than in bulk is transported shall be strongly constructed and with sides and back of adequate height, and shall be maintained in good condition.
(2) In the case of animal-drawn vehicles, push carts and pedal carts, the requirements of sub-rule (1) regarding the sides and back of the vehicle shall not apply if the load is securely fastened to the vehicle.
(3) All containers shall be so packed as not to project beyond the sides or back of the vehicle.
(4) Petroleum Class A otherwise than in bulk shall not be transported in a trailer, attached to any vehicle.
Petroleum in cans or in other containers shall not be transported by road on any tank vehicle used for transport of petroleum unless the vehicle is so constructed as to comply with the rules applicable to the transport of petroleum otherwise than in bulk as well as with the rules applicable to the transport of petroleum in bulk.
No vehicle shall carry any other article while it is carrying petroleum except when specially authorized in writing by the Chief Controller.
(1) In every mechanically propelled vehicle used for the transport by road of petroleum other than petroleum Class B otherwise than in bulk or petroleum Class C—
(i) the engine shall be diesel engine or an internal combustion engine;
(ii) the exhaust shall be wholly in front of the tank or the load, as the case may be and shall have ample clearance from fuel-system and combustible materials and shall not be exposed to leakage or spillage of the fuel or product or accumulations of grease or oil;
(iii) the exhaust pipe shall be fitted with an approved spark arrestor;
(iv) the muffler or silencer shall not be cut off from the exhaust system;
(v) the engine air intake
If electric light or instrument or any other electrically-operated equipment is employed on any vehicle including a trailer used in the transportation by road of petroleum other than petroleum Class C—
(i) the pressure of the electric circuit shall not exceed 24 volts;
(ii) electric wiring shall—
(a) be heavily insulated and be adequate for maximum loads to be carried;
(b) be provided with suitable over-current protection in the form of fuses or automatic circuit breakers and installed so as to be protected from physical damage and contact with possible product spill either by location or by being encased in metal conduct or other oil resistant protective covering; and
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A portable fire extinguisher (10 kg. dry chemical powder or equivalent) suitable for extinguishing petroleum fire shall be carried in an easily accessible and detachable position and away from the discharge faucets on every vehicle transporting petroleum by road. Additionally, one dry chemical powder type fire extinguisher of 1 kg. capacity shall be carried in the driver’s cabin of the vehicle.
(1) Every vehicle which is engaged in the transport of petroleum by road shall be constantly attended to by at least one person who shall be familiar with the rules in this Part:
Provided that such a vehicle, if its tanks or compartments are empty, but not free from petroleum vapour, may be left unattended in places previously approved for the purpose in writing by the Chief Controller.
(2) Every vehicle in which more than 5 kilolitres of petroleum, other than petroleum Class C, is being transported by road, or which, while transporting petroleum, other than petroleum Class C by road is being trailed by another vehicle, shall, so long as it is in motion, be attended to, by the driver and at least one more person both of whom shall be familiar with the rules in this Part.
E:\Bare Act Entry(Saurabh)\Rules\PETROLEUM RULES, 2002\2\74-Prohibition as to parking.htm
—(1) No person shall transport petroleum Class A or petroleum Class B in bulk, by road except nder and in accordance with the condition of a licence granted under these rules.
(2) Nothing in this rule shall apply to the transport by railway administration of petroleum which is in its possession in its capacity as a carrier or to the transport of petroleum in the refueller, licensed under these rules between places within the same aerodrome.
(1) No person shall load or unload a tank vehicle with any class of petroleum except at a place which is situated within premises licensed under these rules and is approved in writing, for loading or unloading of such class of petroleum, by the Chief Controller:
Provided that petroleum Class C may be loaded or unloaded at a place where such petroleum is allowed to be stored without licence under sections 7 and 10 of the Act:
Provided further that—
(a) a tank wagon may be loaded or unloaded at railway sidings earmarked for the purpose; and
(b) a tank vehicle may be unloaded at any other place with all due precautions against fire and under adequate supervision if such unloading is necessitated by an accident or breakdown.
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No person shall load—
(i) any class of petroleum in tank vehicle if any tank, compartment, valve, pipes or any safety fitting thereof becomes leaky or defective and until such leaks are repaired and defects rectified and, in the case of any leak in a tank or a compartment until all the tanks or compartment are re-tested in the manner laid down in para 5 of the Third Schedule and pass the test;
(ii) petroleum Class A or petroleum Class B in any tank vehicle other than a tank wagon which is not licensed under these rules.
(1) All petroleum pipelines entering any tank vehicle loading or unloading area shall be electrically continuous and be efficiently earthed.
(2) An earth boss with a flexible cable having robust clamping device shall be provided adjacent to the loading point.
(3) Sound and electrically continuous hoses or metal pipes shall only be used for loading or unloading of a tank vehicle. Where stand pipes or metallic loading arms are provided, swivel joints shall be electrically continuous.
(4) The tank, filling pipe and the chassis of the tank vehicle shall, during loading of a tank vehicle, be efficiently bonded and connected with the earth boss referred to in sub-rule (2) by means of a flexible metal wire or tape.
(5) The bonding and earthing connections
No mechanically propelled vehicle for the petroleum shall be loaded or unloaded until its engine has been stopped and battery is isolated from the electrical circuit. The engine shall not be restarted and the battery shall not be connected to the electrical circuit until tanks and valves have been securely closed:
Provided that this rule shall not apply in the case of unloading of a tank vehicle into the fuel tank of aircraft in accordance with the rules framed under the Aircraft Act, 1934 (22 of 1934) or in any other case as may be authorized, in writing, by the Chief Controller subject to such conditions as he may specify in that behalf.
Petroleum shall not be loaded into or unloaded from a vehicle until its wheels have been secured by efficient brakes or by scotching and in the case of animal-drawn vehicle until the animals have been unhitched and removed.
(1) No person shall load or unload any tank vehicle unless he has selected the correct filling hose and otherwise satisfied himself that such loading or unloading will not result in any dangerous contamination of one class of petroleum with another class of petroleum.
(2) A tank or compartment which carried petroleum Class A shall not be filled with any other class of petroleum until such tank or compartment has been completely drained of residual oil and its discharge faucet and emergency control valve have been closed firmly.
Except during the operation of loading or emptying a tank vehicle, the filling pipe, discharge faucet and dip pipe all be kept securely closed. Where the filling pipes are not provided with a liquid seal, the covers shall be locked or sealed except during the operation of loading a tank vehicle and the keys shall not be carried on the vehicle or the trailer.
Except where approved electric lights as specified in Chapter IV are exclusively used, the loading or unloading of tank vehicles, carrying petroleum shall be performed between the hours of sunrise and sunset.
(1) No fire or other artificial light capable of igniting inflammable vapour shall be allowed on any vehicle containing petroleum Class A or petroleum Class B and Class C in bulk.
(2) No person shall smoke while on or attending such a vehicle.
(3) No article or substance capable of causing fire or explosion shall be carried on such a vehicle.
(1) No tank which has carried petroleum shall be repaired by welding, brazing, soldering or hot-riveting unless it has been examined by a competent responsible person and certified in writing by such person to be free from inflammable vapours or oil.
(2) The certificate issued by the competent and responsible person under sub-rule (1) shall be preserved by the repairer for a period of at least three months and shall be produced for examination on demand by an Inspector.
(3) All repairs to tanks which have contained petroleum shall be carried out by qualified and experienced persons.
(4) All the compartments of the tank shall be tested after each repair in the manner laid down in para 5 of the Third Schedule.
(1) No motor conveyance carrying passengers on hire shall carry petroleum other than—
(i) petroleum in the tank incorporated in the conveyance, and
(ii) petroleum not exceeding 100 litres in quantity intended to be used to generate motive power for the conveyance of that vehicle and kept in the manner provided in sub-section (2) of section 8 of the Act.
(2) During the filling or replenishment of the fuel tank of a motor conveyance licensed for the carriage of more than six passengers on hire, the driver or other person in charge of such conveyance shall not allow any passenger to remain therein.
(3) All petroleum containers carried in a motor conveyance carrying passengers on hire shall be free from leaks and be securely closed an
The rules in this Part apply only to the transport of petroleum by means of pipelines other than those in any area in which operation for the winning of natural petroleum, or natural gas or both are carried on or within the limits of refineries and installations.
No pipeline and installation connected with a pipeline, shall be constructed without acquiring the necessary land, leasements and right for the construction thereof and for the unhindered access thereto for inspection, maintenance, repairs, replacements and patrolling.
(1) No pipeline shall be laid without the prior written approval of the Chief Controller of the route of the pipeline, and of the design, construction and working thereof.
(2) Where the approval of the Chief Controller is sought for the laying of a pipeline, the person desirous of laying the pipeline shall submit to the Chief Controller—
(i) a comprehensive project report, accompanied by all necessary drawings, calculation giving references to recognize code or codes followed, giving full details of the design, construction and testing of the pipeline and its components, the route along which the pipeline will be laid and the manner of laying, the class or classes of petroleum proposed to be transported in the pipeline and provisions proposed to be made for the maintenance and patrolling of the pipeline;
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(1) The pipeline shall be constructed of suitable steel which is safe for the conditions under which it is to be used.
(2) The pipeline and its components shall be designed and constructed in accordance with a code recognised by the Chief Controller or OISD Standard-141 regarding design and construction requirements for cross country hydrocarbon pipelines and shall be capable of withstanding a pressure which shall not be less than the maximum working pressure thereof plus an allowance for surge pressure, as anticipated.
(3) Provision shall be made for thermal expansion or contraction of the pipeline and for the prevention of excessive stresses on the pipeline or its anchorages, guides and connections.
(4) The pipeline shall be protected by a casing of steel pipe or by increasing the thickness
(1) Pipeline shall be laid in the most favourable route, avoiding as far as possible, known obstructions and areas in which unusual external conditions prevail.
(2) Pipeline shall be laid below the ground level except where laying thereof above the ground level is desirable for typographical, economic or other special reasons.
(3) Where an underground pipeline has to cross any existing underground water or gas line, cable, drain or other services, the pipeline shall be laid at least thirty centimetres below such services in a manner that will not obstruct access to such services for inspection, repair, or maintenance.
(4) The number of bends in the pipeline shall be kept to the minimum by proper grading of trenches or supports at crossing and other obstacles.
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The pipeline shall be protected against corrosion by suitable coating, strapping and where necessary by cathodic protection.
(1) Before transporting petroleum for the first time, each pipeline or completed sections thereof shall be filled with water and the pressure in the line or section, as the case may be, raised to 1.1 times the design internal pressure and maintained for a period of at least 24 hours or as per procedure laid down in the relevant pipelines design code recognized by Chief Controller. A pipeline or a section thereof showing any significant drop of pressure during the period of testing shall not be used for transporting petroleum until necessary repairs have been carried out and satisfactory retest done.
(2) The test specified in sub-rule (1) shall be carried out at least once every 12 months in each completed pipeline section which crosses an area where there is danger of water pollution by any leakage:
Provided that the Chief Controller may
Except when shut-down for maintenance work, a pipeline when not in operation shall be shut down under pressure and a careful record made of the pressure during the shut-down period. Any significant drop in pressure shall be deemed to render the pipeline unfit for transport of petroleum until it is repaired and tested in accordance with rule 98 and on significant drop in shut-down pressure is observed and it passes the test specified in rule 93.
.—(1) The whole of every pipeline shall be efficiently patrolled by company owning the pipeline—
(2) Telegraph or telephone or radio communication facilities shall be provided at frequent intervals along the pipeline:
Provided that one such communication channel shall suffice for a series of parallel pipelines laid close to each other:
Provided further that nothing in this sub-rule shall apply to a pipeline if the length thereof does not exceed two kilometres.
Tank gauges or gauges at intermediate or booster pump stations shall be checked atleast once a year.
(1) No addition or alteration to a pipeline shall be carried out without the previous approval of the Chief Controller in writing.
(2) Every person desirous of carrying out any additions or alterations in any pipeline shall submit to the Chief Controller an application along with—
(a) three copies of a drawing to scale and a full descriptive note of the proposed additions and alterations and the purpose thereof, and
(b) a scrutiny fee of rupees five hundred.
(3) On receipt of the drawings and fee under sub-rule (2) and after eliciting such additional information as may be required, the Chief Controller shall, if he is satisfied, approve the proposed additions or alterations subject to such conditions as he may deem fit.
No maintenance or repair involving cutting or rewelding of any pipeline shall be carried out except under following conditions, namely:—
(i) an experienced engineer shall inspect the section requiring maintenance or repair before the work is undertaken and issue a written permit specifying therein the precautions to be observed and the procedure to be followed for carrying out the work. The permit so issued shall be preserved by the owner of the pipeline for a period of six months;
(ii) all work involving cutting or welding shall be carried out by an experienced person in accordance with the permit referred to in clause (i);
(iii) the section of the pipeline shall be isolated and drained before starting repairs or maintenance;
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Where the Chief Controller is of the opinion that it is in the interest of public safety to do so, he may, by a notice in writing given to the owner of the pipeline, require such owner, to relay, renew or repair such pipeline in accordance with such requirements as may be specified in such notice.
The Chief Controller or Controller may at any time inspect and examine any pipeline, and the owner thereof or persons operating or using the pipeline and the person on whose land such pipeline is situated or his representative shall facilitate such inspection and examination and answer all inquiries put by the Chief Controller or Controller in regard to such pipeline.
The occurrence of any fire or major leakage in a pipeline and connected facilities thereof shall be reported immediately by the person for the time being incharge of the pipeline to the nearest Magistrate or office-in-charge of the nearest police station and to the Chief Controller by telephone/fax and also by telegram at his telegraphic address, namely “Explosives Nagpur”.
Save as provided in this Chapter, no electric wiring shall be installed and no electric apparatus shall be used in any refinery, installation, storage shed, services station or in any other place where petroleum is refined, blended, stored, loaded or unloaded.
For the purpose of this Chapter, an area shall be deemed to be a hazardous area, where—
(i) petroleum having flash point below 650 C or any inflammable gas or vapour in a concentration capable of ignitions is likely to be present;
(ii) petroleum or any inflammable liquid having flash point above 65°C is likely to be refined, blended, handled or stored at above its flash point.
(1) A hazardous area shall be deemed to be—
(i) a zone “0” area, if inflammable gas or vapours are expected to be continuously present in the area; or
(ii) a zone “1” area, if inflammable gases or vapours are likely to be present in the area under normal operating conditions; or
(iii) a zone “2” area, if inflammable gases or vapours are likely to be present in the area only under abnormal operating conditions or failure or rupture of an equipment.
(2) If any question arises as to whether hazardous area is a zone “0” area or a zone “1” or a zone “2” area, the decisions thereon of the Chief Controller shall be final.
The extent of hazardous area shall be as laid down in the Fourth Schedule:
Provided that the Chief Controller may, increase or reduce the extent of hazardous area where there are special circumstances which, in his opinion, warrant such increase or reduction, and the persons affected shall be informed of his decision.
(1) No electric apparatus shall be allowed in a zone “0” area:
Provided that this sub-rule shall not prohibit the use in a zone “0” area of an intrinsically safe apparatus of a type approved in writing by the Chief Controller and in connection with an intrinsically safe circuit, where use of such apparatus cannot be completely excluded.
(2) All electric apparatus installed or used in a zone “1” area shall be either—
(i) a flame proof or intrinsically safe apparatus of a type or types approved in writing by the Chief Controller, or
(ii) an industrial-type apparatus house in an enclosure or a room which has been made safe by pressurizing or purging with a plenum of atmosphere free from significant concentration of any inflammable ga
(1) All conductors of an intrinsically safe circuit in connection with an intrinsically safe apparatus installed in any hazardous area shall be so laid as to prevent invasion of such circuit by current arising from contact or electrostatic or electromagnetic induction from any other circuit. Conductors of intrinsically safe circuits shall be effectively protected against mechanical damage.
(2) All electric wiring in a hazardous area, other than the conductors of an intrinsically safe circuit, shall be effectively sealed at all joints, mechanically protected and adequately supported throughout its length and shall consist of—
(i) approved armoured cable with correctly designed terminations, complete with armour clamps, the armouring being carried and electrical clamps to provide mechanical support to the cable and electrical cont
(1) All electrical systems and equipments and all structures, plants and other non-current-carrying metallic parts of major electric apparatus or any major metallic object in any place where petroleum is refined, blended, stored, loaded or unloaded shall be efficiently earthed; the resistance value of and earthing system of the general mass of the earth, shall not be more than—
(a) 4 ohms in the case of electrical systems and equipment or a valve that ensures the operation of the protective device in the electrical circuit, whichever is lower, and
(b) 10 ohms in the case of all non-current-carrying metallic parts of major electric apparatus or any major metallic object.
(2) All joints in pipeline, valves, plants, storage tanks and associated facilities and equipments for petro
(1) Cathodic protection system where employed shall be designed and installed in accordance with the current recognized practice and so maintained as—
(a) not to affect adversely metallic bodies in the zone of protection; and
(b) to eliminate the danger of sparking in a hazardous area.
(2) The metallic structures, pipelines, valves, plants and associated equipments under cathodic protection shall not be broken for repair or maintenance unless a heavy gauge conducting cable is clamped to each side of the intended break for establishing between them an electrical bond and the cable shall remain clamped until repair or maintenance work is completed and the break rejoined.
(1) Where high values of stray currents are likely to exist, both the rails of spur lines shall be insulated from a railway siding which is used for the loading or unloading of tank wagons.
(2) On electrified railway systems, live-contact rails and overhead electric lines shall be terminated outside the area where tank wagons are loaded or unloaded; such rails or overhead lines shall not be allowed within a refinery or an installation.
(3) No joint in a pipeline or associated equipments shall be broken save as provided in sub-rule (2) of rule 109.
(1) No person shall instal or use in a hazardous area any portable electric lamp or apparatus other than a portable lamp or apparatus of a type approved by the Chief Controller after such examination and test and for such application as he may specify.
(2) No mains operated portable lamp shall be operated at a voltage exceeding 25 volts above the earth:
Provided that the Chief Controller may, at his discretion, allow higher operating voltage not exceeding 55 volts above earth.
(3) All portable lamps or apparatus other than a self-contained lamp or apparatus shall be connected to the mains in such manner and used under such conditions as the Chief Controller may specify.
All electric apparatus and wiring in a hazardous area shall at all times be so maintained as to retain the characteristic on which their approval has been granted.
(1) No flame-proof or intrinsically safe apparatus shall be opened and no work likely to impair the safety characteristics of such apparatus or electric wiring connected thereto shall be carried out until all voltage has been cut off from the said apparatus or wiring. The voltage shall not be restored thereto until the work has been completed and the safety characteristics provided in connection with the apparatus and wiring have been fully restored.
(2) Notwithstanding anything contained in this rule, use of soldering apparatus or other means involving flame, fire or heat or use of industrial type apparatus in a zone “1” area shall be permitted for the purposes of effecting repairs and testing and alternations, provided that the area in which such apparatus or wiring has been installed, has first been made safe and certified by a competent person after testing with an approved ga
(1) Before engineering any electric circuit and any electric apparatus in hazardous area for the first time and after each repair, maintenance or alteration work carried out in such circuit or apparatus, a competent person shall issue a certificate under his signature to the effect that the circuit and the apparatus have the safety characteristics upon which their use in such area has been approved.
(2) The certificate referred to in sub-rule (1) shall be preserved by the occupier of the premises and shall be produced to the Inspector on demand:
Provided that the certificate issued for each repair and maintenance work need not be preserved for a period exceeding six months.
(1) Where necessary, all electric apparatus and equipments and conduits carrying electric wiring in a hazardous area shall be regularly treated with a suitable protective paint.
(2) The certification label indicating the flame-proof or intrinsically safe nature of the apparatus or equipment shall not be painted over or treated in any manner to impair the legibility of the particulars written, stamped or embossed on such label.
Save as provided in sections 7, 8 and 9 of the Act no person shall store petroleum except under and in accordance with a licence granted under these rules:
Provided that no licence shall be necessary—
(i) for the storage of petroleum in well-headed tanks; or
(ii) for the storage of petroleum as transit cargo within the limits of a port subject to such conditions as may be specified by the Conservator.
(1) No person shall smoke in any installation, storage shed or service station save in places specifically authorized by the licensing authority for the purpose.
(2) No person shall carry matches, fuses or other appliances capable of producing ignition or explosion in any installation or storage shed which is used for storage of petroleum.
(3) No fire, furnace or other source of heat or light capable of igniting inflammable vapour shall be allowed in any installation, storage shed or service station save in places specially authorised by the licensing authority for the purpose.
(4)(i) An adequate number of portable dry chemical powder or any other fire extinguisher capable of extinguishing oil fires shall always be kept in every storage shed and small Class B or C installations at strategic po
All operations within an installation, service station or storage shed shall be conducted under supervision of an experienced responsible agent or supervisor who is conversant with the terms and conditions of the licence held for the installation, service station or storage shed, as the case may be, and those persons should have proper safety training.
The ground in the interior of an installation or service station and the protected areas surrounding any installation, service station or storage shed shall be kept clean and free from all vegetation, waste material and rubbish.
(1) All enclosures surrounding above ground tanks in an installation shall be provided with proper drainage facilities in such a way that no water is allowed to accumulate in the enclosure.
(2) No part of the enclosure referred to in sub-rule (1) shall be below the level of the surrounding ground within the protected area.
(3) Where drainage is effected by means of a pipe, the pipe shall be fitted with a valve which is capable of being operated from the outside of the enclosure or with any other arrangement approved in writing by the Chief Controller.
(4) All valves and other opening for draining off water shall be kept closed except when water is being drained off.
(5) The nature of the drainage arrangements and the position of all openings and val
(1) The protected area surrounding every installation and storage shed shall be surrounded by a wall or fence of at least 1.8 metres in height.
(2) In case of service station 1.2 metre high boundary wall or fence on sides other than the drive way shall be provided.
(3) Precautions shall be taken to prevent unauthorised persons from having access to any storage shed or installation.
No installation, service station or storage shed shall, without permission in writing from the Chief Controller be used for any purpose other than the storage and distribution of petroleum and for purpose directly connected therewith.
The capacity in litres or kilolitres of every above ground tank in an installation shall be conspicuously marked on the tank.
(1) Every tank or receptacle for the storage of petroleum in bulk other than a well-head tank shall be constructed of iron or steel in accordance with the codes or specifications approved by the Indian Standards Institution or any other code or specifications approved in writing by the Chief Controller:
Provided that if the properties of petroleum to be stored so required or for any other reason it is necessary so to do, tanks or other receptacles may be built of materials other than iron or steel.
(2) The tanks or other receptacles shall be erected on firm foundations or supports of non-combustible material in accordance with sound engineering practice.
(3) The height of a storage tank shall not exceed one and a half times its diameter or twenty-metres, whichever is less.
All tanks or other receptacles for the storage of petroleum in bulk, other than well-head tanks installed on the ground or below the round, shall be protected against corrosion by the use of protective coatings or cathodic protection or by any other means approved by the licensing authority.
(1) Storage tanks or other receptacles for the storage of petroleum in bulk, other than well-head tanks, after being installed and secured in the final position or after undergoing re-installation or any major repair, shall, before being put into use, be tested by water pressure by a competent person.
(2) The water used for testing shall be free from petroleum and shall not be passed through any pipe or pump ordinarily used for the conveyance of petroleum:
Provided that where the licensing authority is satisfied that it is not reasonably possible to convey water by pipes or pumps other than those ordinarily used for conveyance of petroleum, he may permit use of a petroleum pipe or pump for the conveyance of water subject to such conditions as he may impose.
(3) The competent person carrying ou
()1) Every tank or other receptacle for the storage of petroleum in bulk, other than a well head tank or tanks of less than 50,000 litres capacity containing petroleum Class C shall be electrically connected with the earth in an efficient manner by not less than two separate and distinct connections placed at the opposite extremities of such tank or receptacle. The roof and all metal connections of such tank or receptacle shall be in efficient electrical contact with the body of such tank or receptacle.
(2) The connections and contacts required under sub-rule (1) shall have a few joints as possible. All joints shall be riveted, welded or bolted and also soldered to ensure both mechanical and electrical soundness.
(3) The resistance to earth shall not exceed 7 ohms and the resistance to any part of the fitting to the earth plate or to any
(1) The connections and contacts of the tank or receptacle required under rule 127 shall be inspected and tested by a competent person at least once in every twelve months by means of a direct reading instrument, such as a Megar.
(2) The testing instrument referred to in sub-rule (1), if capable of producing a spark, shall be so shielded as to be incapable of igniting petroleum vapour.
(3) A record of such inspections and test shall be maintained by the licensee in the licensed premises and shall be produced on demand by any inspector.
No installation storage shed shall be open and no work in any installation or storage shed shall be permitted between sunset and sunrise except where approved electric lights conforming to the provisions of Chapter IV are exclusively used.
(1) A certificate of safety in proforma given below this rule and signed by a competent person shall be furnished to the licensing authority before any petroleum is stored in an installation or a service station for the first time or whenever any additions or alterations to the enclosure walls and embankments are carried out or when any tank is installed or its position shifted.
Proforma of Certificate of Safety
[See rule 130]
I, .........................., hereby certify that I have inspected the petroleum service station/installation described below on...........(date) and it has been constructed as per plan approved by Chief Controller/Controller, vide letter No. ................ dated ................. and the service station/installation, in my opinion is safe for storage of petroleum.
(1) Every person desiring to obtain a licence to import and store petroleum in Form XIV, Form XV, Form XVI or in Special Form, as the case may be, shall submit to the licensing authority and application alongwith—
(a) specification and plans drawn to scale, in duplicate, clearly indicating—
(i) the manner in which the provisions prescribed in these rules will be complied with;
(ii) the premises proposed to be licensed, the area of which shall be distinctly coloured or otherwise marked;
(iii) the surroundings and all protected works lying within 100 metres of the edge of all facilities which are proposed to be licensed;
(iv) the position, capacity
No internal combustion engine or electric motor in an installation shall be used for driving pumps for pumping petroleum save in a pump house or pumping area specially constructed for the purpose and approved by the Chief Controller.
Every installation, storage shed or service station under these rules shall have prominently marked thereon the number of the licence held for it.
An extract of rules 3 to 12, 102 to 115, 116 to 134 and rules 146 to 148 and 152 to 160 and of the conditions of the licence shall be exhibited in a conspicuous place in every licensed installation, service station or storage shed.
Nothing in rules 116, 121, 122, 125, 126, 127, 128, 130, 131, 133 and 134 shall apply to petroleum in the possession of the Defence Forces of the Union.
(1) The provisions of this Chapter shall apply to petroleum Class C stored otherwise than under a licence as provided in section 7 of the Act but shall not apply to petroleum Class C in the possession of the Defence Forces of the Union.
(2) The provisions of Chapter V shall not apply to petroleum Class C permitted to be stored without a licence under section 7 of the Act.
Petroleum Class C shall not be stored together with any other class of petroleum except under and in accordance with a licence granted under these rules.
(1) Petroleum Class C in bulk shall be stored in a tank constructed of iron or steel or any other material approved in writing by the Chief Controller.
(2) The tank referred to in sub-rule (1) shall be properly designed and erected and the tank with all its fittings shall be so constructed and maintained as to prevent any leakage of petroleum.
(3) All tanks of capacity exceeding 5,000 litres for the storage of petroleum Class C shall be surrounded by an enclosure wall or placed inside a pit, so constructed and maintained as to be able to contain without leakage the maximum quantity of petroleum capable of being contained in largest tank within such enclosure or pit.
(4) A drainage pipe with a valve capable of being actuated from outside the enclosure wall shall be provided in the enclosure or
Petroleum Class C which is not in bulk shall, if the quantity at any one time exceeds 2500 litres be stored in a storage shed of which either—
(a) the doorways and openings shall be built up to a height of 30 centimetres above the floor, or
(b) the floor shall be sunk to a depth of 30 centimetres.
Every person intending to store petroleum Class C in quantity exceeding 5000 litres otherwise than under a licence shall submit the following to the Chief Controller before commencing storage:—
(i) plans drawn to scale of the storage facilities showing compliance of rule 138 and site plan of the storage premises and surroundings upto 100 metres identifying the locations of premises; and
(ii) a scrutiny fee of rupees five hundred.
Licences under these rules may be granted by the licensing authorities set forth in the First Schedule in the forms specified for the purpose and on payment of a fee specified therein.
(1) A licence in Form III or form XVII may be granted for such period as the licensing authority may deem necessary subject to a maximum of one year.
(2) Every other licence granted or renewed under these rules will remain in force until the 31st day of December of the year up to which the licence is granted or renewed subject to a maximum of three years.
(3) Notwithstanding anything contained in sub-rule (1) or sub-rule (2), the licensing authority where it is satisfied that a licence is required for a specific work or festival which is not likely to last up to the 31st day of December of the year up to which the licence is granted or renewed, may grant or renew a licence for such period as is actually necessary.
(1) A person wishing to obtain or renew a licence under these rules shall submit an application in writing to the authority empowered to grant such a licence.
(2) An application for the grant of a licence to transport petroleum in bulk by road in mechanically propelled vehicles shall be in Form VII and to transport petroleum Class A/B in bulk on land for onsite fuelling of aircrafts, heavy vehicles/machineries and stationary equipment by a mechanically propelled vehicle viz. refueller shall be in Form VIII. An application for licence to import and store petroleum shall be in Form IX and to decant Kerosene (Petroleum Class B) from mechanically propelled vehicles containers shall be in Form X.
(1) Where the licensing authority is the Chief Controller or the Controller, as the case may be, an applicant for a new licence other than a licence in Forms III, XI, XVII, XVIII or XIX shall apply to the District Authority with two copies of the site-plan showing the location of the premises proposed to be licensed for a certificate to the effect that there is no objection, to the applicant receiving a licence for the site proposed and the District Authority shall, if he sees no objection, grant such certificate to the applicant who shall forward it to the licensing authority with his application Form IX.
(2) Every certificate issued by the District Authority under sub-rule (1) shall be accompanied by a copy of the plan of the proposed site duly endorsed by him under his official seal.
(3) The Chief Controller or the Controller, as the
Rule 144 of the Petroleum Rules, 2002 is a pivotal provision governing the issuance of No Objection Certificates (NOC) for establishing retail outlets and storage facilities for petroleum products. Framed under the Petroleum Act, 1934, this rule mandates that applicants seeking licences for petroleum storage must obtain an NOC from the District Authority, confirming that there is no objection to the proposed site from public safety and regulatory perspectives. The rule has been subject to extensive judicial interpretation, particularly regarding the scope of the District Authority's inquiry, procedural requirements, and the grounds for refusal or cancellation.
Rule 144 of the Petroleum Rules, 2002 provides for the "No-objection certificate" and states:
Rule 144 itself does not prescribe punishment. However, non-compliance with the Petroleum Rules, 2002 or the Petroleum Act, 1934 can lead to:
District Authority - The District Authority is defined as the Commissioner/Deputy Commissioner of Police in towns with a Police Commissioner; in other places, the District Magistrate (including Additional District Magistrate and, in some states, Sub-divisional Magistrate). [Rule 2(x) & (xi) - Source Mirza Mohd. Iqbal Beg VS U. O. I & Ors. - 2011 0 Supreme(J&K) 503]
Inquiry Scope - The inquiry under Rule 144 must focus on site suitability and public safety, not on adjudicating ownership disputes between lessor and lessee when a registered lease deed exists. [Source Mandi Rojashri vs Union Of India - 2025 0 Supreme(AP) 143]
Conditional NOC Invalid - A conditional NOC (e.g., "subject to fulfillment of conditions from other departments") does not comply with Rule 144, which requires a clear certificate without restrictions. [Source Bilkees Hamid VS State of J&K& Ors. - 2015 0 Supreme(J&K) 661; Mirza Mohd. Iqbal Beg VS U. O. I & Ors. - 2011 0 Supreme(J&K) 503]
CPCB Guidelines - CPCB Distance Norms for petroleum outlets are mandatory considerations for District Authorities when issuing NOC under Rule 144. [Source Ashwin Abraham Cherian S/o Kunnekattil Cherian vs Hindustan Petroleum Corporation Ltd. - 2025 0 Supreme(Ker) 2963]
IRC Guidelines Non-binding - Indian Road Congress Guidelines are directory, not mandatory, and cannot be the sole basis for refusing NOC under Rule 144. [Source Rajesh K. S/o Madhavan vs Additional District Magistrate, Kannur - 2026 0 Supreme(Ker) 407; Puttala Roshaiah, S/o. Abraham VS Union of India, Rep. by Its Secretary, Ministry of petroleum and Natural Gas - 2021 0 Supreme(Telangana) 423]
Natural Justice - Cancellation of NOC without giving the licensee a reasonable opportunity of being heard violates principles of natural justice and renders the order illegal. [Source Neetu Parmar VS State of Haryana - 2017 0 Supreme(P&H) 2392; Kallu VS State of U. P. - 2023 0 Supreme(All) 1576; Rekha Mishra VS Hindustan Petroleum Corporation Ltd. - 2023 0 Supreme(All) 1412]
Right to Site - The "right to site" under Rule 150 refers to the right to the site on which petroleum is stored, not the right for storing petroleum on the site. Expiry of lease can justify cancellation. [Source Bharat petroleum Corporation Ltd. VS Commissioner, Agra Division, Agra - 2010 0 Supreme(All) 4086; Vinoth VS Transport Commissioner, Chepauk, Chennai - 2018 0 Supreme(Mad) 373]
Three-Month Timeline - The District Authority must complete the inquiry and issue or refuse NOC within three months from the date of receipt of application. [Rule 144(5) - Source Thommachan Jacob, S/o. Jacob Philip VS State Of Kerala, Rep. By the addl. Chief secretary - 2021 0 Supreme(Ker) 594]
Appeal Remedy - An appeal against refusal or cancellation of NOC lies under Rule 154(2) of the Petroleum Rules, 2002, which is a statutory alternative remedy. [Source Territory Manager-Retail Bharat Petroleum Corporation Ltd. Tondiarpet, Chennai VS Designated Authority/Commissioner Of Police Greater, Chennai Police, Egmore - 2012 0 Supreme(Mad) 3429]
Locus Standi - Rival businessmen cannot challenge NOC granted to a competitor, as no vested right is infringed. This is a case of damnum sine injuria. [Source Kanyakumari District Petroleum Dealers Association, rep. by its Secretary S. Kumar, Chungankadai, Kanyakumari District VS District Revenue Officer and Additional District Magistrate, Nagercoil and Others - 2006 0 Supreme(Mad) 1111; Jethu Singh VS State of Rajasthan - 2014 0 Supreme(Raj) 372]
Jurisdictional Error - A communication that is not an order under Rule 144 is not amenable to appeal under Rule 154(2); entertaining such an appeal constitutes jurisdictional error. [Source DEEPAK SUNDARLAL MURARKA VS HARJIMAL ONKARMAL (M/S) - 2021 0 Supreme(Bom) 433]
Proforma Requirements - The 2018 amendment (G.S.R. 762(E) dated 10.08.2018) inserted sub-rule (7) prescribing a detailed proforma for NOC, including consideration of site possession, public interest, traffic density, and fire safety. [Source Thommachan Jacob, S/o. Jacob Philip VS State Of Kerala, Rep. By the addl. Chief secretary - 2021 0 Supreme(Ker) 594]
Police Commissioner Jurisdiction - After introduction of the Commissioner of Police system in a city, the District Magistrate ceases to be the "District Authority" under Rule 2(x) for NOC-related matters. [Source LAXMI SERVICE STATION, INDORE VS UNION OF INDIA - 2022 0 Supreme(MP) 615]
Public Safety Paramount - The District Authority must consider proximity to schools, hospitals, and places of public assembly, along with mitigating measures, when issuing NOC. [Proforma Clause (b) - Source Thommachan Jacob, S/o. Jacob Philip VS State Of Kerala, Rep. By the addl. Chief secretary - 2021 0 Supreme(Ker) 594]
Lease Expiry Impact - The expiration of a lease and refusal to renew can justify cancellation of NOC under Rule 150, as the licensee ceases to have a right to use the site. [Source Bharat petroleum Corporation Ltd. VS Commissioner, Agra Division, Agra - 2010 0 Supreme(All) 4086]
Grounds for Refusal - Mere pendency of criminal cases against the applicant cannot justify refusal of NOC, as the inquiry must focus on site suitability, not the applicant's criminal status. [Source Mrityunjay Kumar Singh @ Mrityunjay Kumar vs State of Jharkhand through Deputy Commissioner, Latehar - 2025 0 Supreme(Jhk) 1318; Ashish Kumar Rai VS Union of India - 2023 0 Supreme(All) 1963]
Competitor Challenges - Grant of NOC under Rule 144 is an administrative order; absent mala fides or arbitrariness, it cannot be interfered with at the behest of competitors. [Source Kanyakumari District Petroleum Dealers Association, rep. by its Secretary S. Kumar, Chungankadai, Kanyakumari District VS District Revenue Officer and Additional District Magistrate, Nagercoil and Others - 2006 0 Supreme(Mad) 1111]
Superintendence Power - Where the order of cancellation is wholly without jurisdiction and no appeal/revision remedy is available, the Board of Revenue can exercise power of superintendence under Section 8 of the M.P. Land Revenue Code to set aside illegalities. [Source Anirudh Rawat VS State of M. P. - 2023 0 Supreme(MP) 933]
Lawful Possession - The applicant must have lawful possession of the site; a lease deed granting lawful possession to a lessee is sufficient for applying for NOC under Rule 144. [Source Suresh Babu P. S/o Late Prabhakaran vs Union of India Rep. by its Secretary, New Delhi - 2026 0 Supreme(Ker) 57]
State Restrictions - The State Government or its authorities cannot impose restrictions on NOC that are not found in the Petroleum Rules, 2002, as the rules are exhaustive and the Central legislation prevails. [Source Sheena Prakash M/s. Chettuva Fuels, HPCL Dealer VS Union of India, represented by Secretary - 2013 0 Supreme(Ker) 453]
(1) Every licence granted under these rules shall be held subject to the conditions specified therein and shall contain all the particulars which are contained in the Form specified under these rules.
(2) One copy of the plan or plans for the licensed premises signed in token of approval by the licensing authority shall be attached to the licence which shall form part of such licence, and an identical copy shall be filed for record in the office of the licensing authority, except in the case of licence in Form XVIII.
(1) No alteration shall be carried out in the licensed premises until a drawing or drawings showing such alteration has been approved in writing by the licensing authority.
(2) A person wishing to carry out any alteration in the licensed premises shall submit to the licensing authority—
(i) three copies of a properly drawn plan of the licensed premises showing in distinct colour or colours the proposed alteration and the reasons therefor;
(ii) a fee of rupees four hundred for scrutiny of the proposed alteration.
(3) If the licensing authority, after scrutiny of the plan showing the proposed alteration and after making such enquiries as he deems fit, is satisfied that the proposed alteration may be carried out, he shall return to th
(1) Any licence granted under these rules may be amended by the authority empowered to grant such a licence.
(2) The fee for amendment of a licence shall be rupees five hundred plus the amount, if any, by which the fee that would have been payable if the licence had originally been issued in the amended form exceeds the fee originally paid for the licence.
(3) A licensee who desires to have his licence amended shall submit to the licensing authority—
(i) an application duly filled in and signed in Form VII if the licence has been granted for transport of petroleum in bulk by road, in Form VIII, if the licence has been granted for refueller in form XIX, in Form IX, if the licence is granted to import and store petroleum; and in Form X, if the licence is granted to decant kerosene (Petr
(1) A licence may be renewed by the authority empowered to grant such a licence:
Provided that a licence which has been granted by the Chief Controller may be renewed without alteration by a Controller duly authorized by the Chief Controller.
(2) Every licence granted under these rules, other than a licence in Form III or Form XVII may be renewable for three calendar years where there has been no contravention of the Act or of the rules framed thereunder or of any conditions of the licence so renewed.
(3) Where a licence which has been renewed for more than one year, is surrendered before its expiry, the renewal fee paid for unexpired portion of the licence shall be refunded to the licensee provided that no refund of renewal fee shall be made for any calendar year during which—
A district authority refusing to grant a no-objection certificate under rule 144 shall record, in writing, the reasons for such refusal and shall furnish to the applicant a copy of such order:
Provided that before refusing to grant a no-objection certificate, the applicant shall be given a reasonable opportunity of being heard.
(1) A no-objection certificate granted under rule 144 shall be liable to be cancelled by the District Authority or the State Government, if the District Authority or the State Government is satisfied, that the licensee has ceased to have any right to use the site for storing petroleum:
Provided that before cancelling a no-objection certificate, the licensee shall be given a reasonable opportunity of being heard.
(2) A District Authority or a State Government cancelling a no-objection certificate shall record, in writing, the reasons for such cancellation and shall immediately furnish to the licensee and to the licensing authority concerned, copy of the order cancelling the no-objection certificate.
A licensing authority refusing to grant, amend, renew or transfer a licence, shall record his reason for such refusal in writing.
(1) Every licence granted under these rules shall—
(i) stand cancelled, if the licensee ceases to have any right to the site for storing petroleum;
(ii) stand cancelled, if the no-objection certificate is cancelled by the District Authority or the State Government in accordance with sub-rule (1) of rule 150;
(iii) be liable to be suspended or cancelled by an order of the licensing authority for any contravention of the Act or of any rule thereunder or of any condition contained in such licence, or by order of the Central Government, if it is satisfied that there are sufficient grounds for doing so:
Provided that—
(a) before suspending or cancelling a li
(1) A person licensed to store petroleum shall, on the expiration, suspension or cancellation of his licence, forthwith give notice to the District Authority of the class and quantity of petroleum in his possession and shall comply with any directions which the District Authority may, on the recommendation of the Chief Controller, gives in regard to its disposal.
(2) The District Authority may grant for a term not exceeding three months from the date of expiration, suspension or cancellation, as the case may be, a temporary licence for the storage of petroleum actually held at the time of the issue of the temporary licence:
Provided that where the expired, suspended or cancelled licence was granted by an authority, other than the District Authority, no temporary licence shall be granted without the previous consent of such other authorit
(1) An appeal shall lie against any order refusing to grant, amend or renew a licence cancelling or suspending a licence to—
(i) the Central Government, where the order is passed by the Chief Controller;
(ii) the Chief Controller, where the order is passed by a Controller;
(iii) the immediate official superior to the District Authority, where the order is passed by the District Authority;
(iv) the immediate official superior to officer appointed under rule 33 in the case of vessels licensed for the carriage of petroleum in bulk.
(2) An appeal against any order of the District Authority refusing to grant or cancelling a no-objection certificate shall lie to the authority w
With every licence granted for the storage of petroleum, an extract of rules 3 to 12, rules 102 to 134, rules 146 to 148 and rules 151 to 159 shall be given free of charge to the licensee.
(1) The holder of a licence, for the storage of petroleum may, at any time before the expiry of the licence, apply to the licensing authority to transfer the licence to another person.
(2) Every application for the transfer of a licence shall be accompanied by—
(i) a letter signed by the holder of the licence indicating the full name and address of the person to whom he wishes to transfer the licence and give complete possession of the licensed premises;
(ii) the licence sought to be transferred together with the approved plan or plans attached to it;
(iii) an application in Form IX duly filled in and signed by the person to whom the licence is sought to be transferred;
(i
(1) If a licensee dies or becomes insolvent or mentally incapable or is otherwise disabled, the person carrying on the business of such licensee shall not be liable to any penalty or confiscation under the Act or these rules of exercising the powers granted to the licensee during such time as may reasonably be required to allow him to make an application for a new licence in his own name for the unexpired portion of the original licence in respect of the year in which the licensee dies or becomes insolvent or mentally incapable or is otherwise disabled:
Provided that nothing in this sub-rule shall be deemed to authorize the exercise of any power under this sub-rule by any person after the expiry of the period of the licence.
(2) An application for a new licence for the unexpired portion of the original licence shall be accompanied by a n
Where a licence granted under these rules is lost or accidentally destroyed a duplicate may be granted on submission of a copy of plan or plans identical with those attached to the licence and on payment of a fee of rupees two hundred.
(1) Every person holding or acting under a licence granted under these rules shall produce it, or an authenticated copy of it, at the place to which the licence applies, when called upon to do so by any Inspector.
(2) Copies of any licence may, for the purpose of this rule, be authenticated by the authority which granted the licence—
(a) on payment of a fee of rupees fifty for each authenticated copy; and
(b) on the submission of a copy or copies of the plans identical with the approved plan or plans attached to the licence.
The District Authority shall inform the Chief Controller of the action taken by him on any reports of infringements of the Act or of these rules which the Chief Controller may make to him.
Every authority other than the Central Government, acting under this Chapter shall perform its duties subject to the control of the Central Government:
Provided that nothing in this rule shall be deemed to affect the powers of executive control of the Chief Controller over the officer subordinate to him.
(1) No person shall refine, crack, reform or blend petroleum unless the project report with specifications and plans showing the general arrangements of tanks, stills, furnaces, electrical installations, pump houses, arrangement for drainage treatment and disposal of effluents, arrangement for fighting fire, fencing gates and all plants and buildings at the place where it is proposed to refine, crack, reform or blend petroleum (hereinafter in this Chapter referred to as the refinery) has been approved by the Chief Controller.
(2) The design and layout of the various block/facilities/process units in new crude oil refineries shall be as per design philosophy given in OISD Standard-118. This will apply to new crude oil refineries/gas processing installations approved by the Chief Controller after publication of this rule.
(3) Any person de
A copy each of the approved plans and specifications and containing any alterations sanctioned under rule 164 from time to time shall be kept at the refinery.
.—(1) No alterations in refinery involving the general arrangements or the design of tanks, stills, furnaces, plants, pump-houses, electric installation or fire-fighting facilities shall be carried out without the previous sanction in writing of the Chief Controller.
(2) The occupier of a refinery wishing to carry out any of the alterations referred to in sub-rule (1) shall submit to the Chief Controller an application along with—
(i) specifications and plans, in triplicate, showing proposed alterations together with reason therefor, and
(ii) a scrutiny fee of rupees one thousand paid in the manner prescribed in rule 13.
(3) The Chief Controller on receiving the specifications and plans for the alterations and reasons therefor, may
All buildings and facilities in which petroleum is handled shall be built of fire-proof materials.
No storage tanks for petroleum shall be situated nearer than 90 metres to any still, boiler or furnace:
Provided that this rule shall not apply to a storage tank containing petroleum Class C for use as a fuel for a boiler and such a storage tank shall not be larger than is necessary to conserve 24 hours fuel for the fire which it services.
No storage tank or filling facility for liquefied petroleum gases shall be nearer than 90 metres to any still, boiler or furnace or nearer than 30 metres to any storage tank, pump-house or any facility for the blending or filling of petroleum or to any protected work.
No flare shall be situated nearer than 90 metres to any tank, still, pump-house or any facility for the refining, cracking, reforming, blending, storage or handling of petroleum or liquefied petroleum gas, other than knockout drum and condensate recovery pump attached to such flare.
(1) Adequate arrangements shall be made to ensure that effluents and drainage passing from the refinery does not cause pollution of rivers, irrigation channels, water reservoirs or foreshore and does not harmfully affect animal or vegetable life in any way.
(2) Effluent drainage from pump-houses and all other points where oil may be entrained shall be passed through an efficient oil interceptor system of adequate size.
(3) All chemical waste shall be rendered harmless before they leave the refinery area.
(4) The whole of the sewerage shall be independent of other drainage systems.
(5) All drains shall have adequate capacity to prevent any flooding or backing-up and be of such construction as to prevent leakage from them to the surrounding grounds.
(1) No fire furnace, source of heat or light capable of igniting inflammable vapours shall be allowed except in the firing space of stills and boilers.
(2) No smoking shall be allowed except in spaces or buildings specially approved for the purpose by the Chief Controller.
(1) No maintenance or repair work and no entry into confined spaces including a closed drain or manhole shall be permitted except under and in accordance with the conditions of a written permit as per OISD Standard-105 issued by a competent person authorised by the occupier of the refinery.
(2) The competent person referred to in sub-rule (1) shall, before issuing the permit, satisfy himself by inspecting and testing, whenever necessary, that the conditions of the vessel, site or equipment are entirely safe for the work which is to be undertaken and shall specify on the permit the conditions under which the work can be carried out safely.
(3) Permits for carrying out maintenance or repair work shall be issued for limited and stated period during which known conditions will remain safe and such permits shall not be renewed without re-insp
(1) Every crude oil refinery shall be fully protected against fire by a well organised and trained fire fighting service with necessary materials and fixed, mobile and portable equipments for fighting fires in line with the Oil Industry Safety Directorate’s Standard-116. This will apply to new crude oil refineries/gas processing installation approved by the Chief Controller after publication of this rule.
(2) An adequate supply of water shall be available at all strategic points in the refinery by means of an independent ring main or grid provided with isolating valves. The main shall be kept constantly pressurized by two or more boosting pumps of adequate capacity preferably working automatically as any significant loss of pressure in the main occurs. At least one of the boosting pumps shall be independent of the normal power supply.
(3
All petroleum as it leaves the stills with the exception of such quantities as may be pumped direct to service tanks for fuel, shall at once be pumped out into the refinery storage tanks and shall not be stored in the immediate neighbourhood of stills and boilers:
Provided that the Chief Controller may permit petroleum to be disposed of otherwise.
Adequate provision shall be made to prevent accumulation of dangerous static charge of electricity.
(1) Warning notices regarding prevention of unauthorised person, naked lights, smoking and other hazards shall be displayed prominently at strategic locations in the refinery.
(2) No fireworks of any kind shall be carried out within a radius of one kilometre from the refinery except with the prior permission of District Magistrate.
(1) All above-ground pipelines and cables shall be identified by taping, stenciling, colouring distinctively or by any other suitable methods.
(2) All overhead pipelines and cables crossing roads shall be adequately protected against accidental damage.
(3) Pipelines and valves at loading and discharging berths shall be prominently marked to identify the product.
(4) The route of all underground cables shall be marked by prominent markers. At least two such markers shall be visible from any point on the route of the cable.
(5) The route of all underground pipelines shall be marked by prominent markers or by any other effective means to prevent accidental damage to the pipelines.
All plants, instruments and equipments including fire-fighting equipment shall be inspected and tested at intervals, the frequency depending on practical or other relevant factors, and records of all such inspections shall be maintained.
(1) All operators employed in a refinery shall be adequately trained in the safe operation of plants and equipment.
(2) Written procedures shall be established for operators to start up, shut down and gas-free plants or sections of plants safely and to take safe action under emergency conditions.
(3) Checks shall be made at all stages of the operations by supervisors to ensure that vessels and equipments are properly isolated or connected up, as required, and to ensure that safety facilities are commissioned as the operation proceeds.
The occurrence of any fire in refinery shall be reported immediately by the person in-charge of the refinery for the time being to the Chief Controller and to the nearest police station.
If refinery is closed down, the area within the fence surrounding it shall be cleared of all petroleum having flash point below 93 degree C as soon as possible.
Tetra Ethyl Lead shall not be bended with petroleum except in an equipment approved in writing by the Chief Controller and in such proportions and under such conditions as may from time to time be determined by him.
Tetra Ethyl Lead shall not be blended except in an equipment approved in writing by the Chief Controller and in quantities not exceeding the limits specified in the relevant Indian Standards Specifications.
The Chief Controller may from time to time by a written order prescribe special conditions which shall be observed during mixing of petroleum with ethyl fluid, handling of leaded petroleum or cleaning or repair of storage tanks which have contained leaded petroleum.
Every mixture of petroleum and Tetra Ethyl Lead shall be distinctively coloured before being supplied to the public.
All receptacles other than tank containing a mixture of petroleum and Tetra Ethyl Lead shall, except when they are in possession of the Defence Forces of the Union, bear a warning in the following terms, namely:—
“Warning”
This spirit contains lead and Shall be used
s a motor fuel only
(1) In all cases, the sampling officer shall personally superintend the drawing of the sample and the sample shall be drawn in the presence of at least one witness. Where the sample is drawn from an original unopened receptacle containing petroleum otherwise than in bulk the opening shall be sufficient to admit of the sample being rapidly transferred from the receptacle.
(2) Two bottles, each of a capacity of 1 litre shall be filled to nine-tenths of their capacity with the sample and corked. The corks shall be driven home and cut-off level with the neck; and melted sealing wax shall be worked into the corks and the bottles shall be efficiently sealed.
(3) In the case of petroleum imported into India the bottles containing the samples shall, after being sealed, be labelled with the name of the consignee, particulars of the ship or vehicl
One of the bottles referred to in sub-rule (2) or rule 186 shall be preserved for reference in case of need and the other shall be forwarded to the testing officer.
(1) When the master of, or the agent for, a ship or the agent of the importer has made the declaration required under rule 17 or rule 26, the sampling officer shall obtain samples of all the petroleum which is intended to land at the port or place of import. If the importer so desires, the sampling officer shall also take samples of all the petroleum which is intended to land at any other port or place of import in India:
Provided that no sample need be taken of petroleum if it is declared to be the petroleum Class A.
(2) The master of ship or the person for the time being in-charge of the vehicle by which petroleum is imported shall deliver to the sampling officer, without charge, samples of every variety of petroleum comprised in the petroleum of which samples are to be taken under sub-rule (1). Such samples shall, if the sampling offi
The minimum number of samples to be selected from each brand or quality contained in the cargo to the imported shall be as follows:
(i) in cases-one sample for every 10,000 cases or part thereof;
(ii) in casks or drums, declared to be uniform quality—one sample for every 600 kilolitres or part thereof;
(iii) in bulk or in tanks—one sample from each tank or tank compartment.
The standard test apparatus shall—
(a) agree in every respect with the Indian Standard Specification No. IS-1448 (Part I): (P 20) or (P 21) as applicable and for the unit being in force; and
(b) have been tested and certified by an officer appointed by the Central Government under sub-section (1) of section 15 of the Act.
(1) When any apparatus for determining the flash point of petroleum is submitted to the officer appointed under sub-section (1) of section 15 of the Act for comparison with the standard test apparatus, the officer shall examine the apparatus including the thermometers and the barometers or aneroid.
(2) No certificate shall be granted under section 16 of the Act if the apparatus, any thermometer or barometer is in any respect outside the tolerances laid down or variations permitted under the Indian Standard Specification No. IS-1448 (Part-1): (P 20) or (P 21), as applicable, and for the time being in force.
(3) A certificate in Form IV shall be granted in respect of any apparatus which has been found to agree with the standard test apparatus within the limits specified in IS-1448 (Part I) (P 20) (P 21) was applicable and for the time bein
a register of all certificates granted under rule 191 shall be maintained in Form V by the officer appointed under sub-section (1) of section 15 of Act.
(1) The testing officer shall test the samples in the manner laid down in the Indian Standard Specification No. IS-1448 (Part I); (P 20) or (P 21), as applicable, and for the time being in force.
(2) In all cases at least three samples shall be separately tested, the average of the three readings being corrected for the thermometer correction, if any, and for the barometric correction in case of dispute.
(3) If the average flash point is not lower than 23°C, the whole of the petroleum represented by the samples shall be deemed to be petroleum Class B or petroleum Class C according to the average flash point determined by the test.
(4) If the petroleum to be tested is viscous or solid or contains sediments or thickening ingredients, such petroleum shall be tested in accordance with the methods
(1) If the testing officer after testing samples taken from an imported cargo, considers further testing necessary to satisfy himself that none of the petroleum is petroleum Class A, he shall report to the Commissioner of Customs accordingly.
(2) On receipt of a report under sub-rule (1)—
(a) when the consignment is imported in cases or casks or drums, the Commissioner of Customs shall cause the petroleum in question to be landed and stacked in lots of not more than 1,500 cases or casks or drums each, or to be discharged into boats each containing not more than 1,500 cases, casks or drums, and the sampling officer shall select and deliver to the testing officer one sample from each lot.
(b) when the consignment is imported in bulk, the sampling officer shall forward a second sa
(1) The testing officer shall, as soon as practicable, and ordinarily within twenty-four hours after receipt of samples make out a certificate in Form VI and shall forward it in the case of samples, of petroleum taken on board a ship or a vehicle by which petroleum is imported to the Commissioner of Customs and in the case of other samples to the officer submitting the sample.
(2) The testing officer shall, at the request of any person concerned furnish him with a certified copy of the certificate in Form VI on payment of a fee of rupees two hundred.
.—(1) The fee for each inspection of the standard test apparatus shall be rupees one hundred.
(2) The fee for comparing a privately owned test apparatus with the standard test apparatus shall be as follows:—
(in Rupees)
Test apparatus 800
Barometer 200
Thermometer 100
(1) The fee for testing each sample of petroleum shall be rupees five hundred:
Provided that the aggregate fees chargeable under this sub-rule shall not, in the case of any single consignment of petroleum in any one ship, other vessel, train or place, exceed rupees one thousand.
(2) The fee for re-testing each sample under section 20 of the Act shall be rupees one thousand. It shall be refunded if the original test is proved to be erroneous.
.—(1) Any, officer, specified in column (1) of the table below may within the jurisdiction specified in the corresponding entry in column 2 of the said table—
(a) enter, inspect and search any place where he has reason to believe that any petroleum is being imported, transported, stored, produced, refined or blended or is under transport and inspect all receptacles, plants and appliances used in connection therewith in order to ascertain if they are in accordance with provisions of the Act and of these rules;
(b) search for petroleum therein;
(c) take samples for testing of any petroleum found therein and make payments by cash for value of samples taken; and
(d) seize, detain and remove any petroleum or any material s
The Chief Controller or Controller may destroy any petroleum or any material or equipment connected in respect of which the Chief Controller or Controller has reason to believe that any of the provisions of the Act or of these rules have been contravened or which in his opinion is no longer fit for storage, transport or use. The petroleum shall be destroyed at the expenses of the licensee or the occupier of the premises, as the case may be.
(1) The notice of an accident required to be given under section 27 of the Act shall be given forthwith—
(a) to the Chief Controller by telephone/fax and also by telegram [telegraphic address—‘Explosives Nagpur’] followed within 24 hours by a letter giving particulars of the occurrence; and
(b) to the officer-in-charge of the nearest police station by the quickest means of communication.
(2) Pending the visit of the Chief Controller or his representative, or until instruction is received from the Chief Controller that he does not wish any further investigation or inquiry to be made, all wreckage and debris shall be left untouched except in so far as its removal may be necessary for the rescue of persons injured and recovery of the bodies of any persons killed by the accident or
The Central Government may, on the recommendation of the Chief Controller, in exceptional cases, by order exempt any class or classes of petroleum from all or any of the provisions of these rules, on such conditions, if any, as may be specified in the order.
(1) The Petroleum Rules, 1976, are hereby repealed.
(2) Notwithstanding such repeal—
(i) all licences or duplicates granted or renewed under the said rules and all fees imposed or levied shall be deemed to have been granted, renewed or imposed or levied, as the case may be under the corresponding provisions of these rules, and
(ii) all approvals given and all powers conferred by or under any notification or rule shall, so far as they are consistent with the Act and these rules be deemed to have been given or conferred by or under these rules.
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