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PETROLEUM AND NATURAL GAS REGULATORY BOARD (ACCESS CODE FOR COMMON CARRIER OR CONTRACT CARRIER NATURAL GAS PIPELINES) REGULATIONS, 2008

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Reg.1 Short title and commencement.--

       (1) These regulations may be called the Petroleum and Natural Gas Regulatory Board (Access Code for Common Carrier or Contract Carrier Natural Gas Pipelines) Regulations, 2008.
       (2) They shall come into force on the date of their publication in the Official Gazette.


Reg.2 Definitions.--

       (1) In these regulations, unless the context otherwise require,
       (a) "access arrangement" means a document of the transporter specifically defining terms and conditions for the access to the gas pipeline and placed on the web site of the transporter;
       (b) "Act" means the Petroleum and Natural Gas Regulatory Board Act, 2006";
       (c) "a homogeneous area" (AHA) means a part of the pipeline within which the gas of similar specifications including calorific value is received or delivered over a specified time period;
       (d) "allocated capacity" means the scheduled maximum daily quantity agreed between the shipper and the transporter;
       (e) "appointed day" means the date of October 1, 2007 when the Central Government not

Reg.3 Application.--

       (1) These regulations shall apply to an entity operating or proposing to operate natural gas pipeline.
       (2) Any entity authorized by the Board to lay, build, operate or expand a natural gas pipeline under the Petroleum and Natural Gas Regulatory Board (Authorizing Entities to Lay, Build, Operate or Expand Natural Gas Pipeline)Regulations, 2008 or authorized to do so by the Central Government before the appointed day, can add new or abandon any existing entry and exit point on the pipeline on techno-economic considerations provided that the existing customers on the pipeline are not adversely affected by the decision of the entity.


Reg.4 Declaration of capacity.--

       (1) The capacity of a natural gas pipeline shall be as authorized by the Board for new pipelines under The Petroleum and Natural Gas Regulatory Board (Authorizing Entities to Lay, Build, Operate or Expand Natural Gas Pipelines) Regulations, 2008 or as determined by the Board under relevant regulations for declaring natural gas pipelines as common carrier or contract carrier or under the Petroleum and Natural Gas Regulatory Board (Determination of Natural Gas Pipeline Tariff) Regulations, 2008 or as determined by the Board under the relevant Regulations.
       (2) The transporter shall declare for each natural gas pipeline section, entry and exit point-wise design and available capacity of the pipeline and host the same on its web site on the 1st of every month in the prescribed manner and format specified at Schedule I and shall send this information to the Board and the same shall also

Reg.5 Gas parameters.--

       (1) The authorized entity as referred to in sub-regulation (2) of regulation 3 shall formulate the calorific value (CV) band for the natural gas to be transported through natural gas pipeline keeping in view the following parameters, namely:-
       (a) CV of its own natural gas proposed to be transported;
       (b) CV of tinned up contracted capacity of natural gas;
       (c) requirements of downstream consumers of natural gas on the pipeline;
       (d) technical requirement of the pipe line system; and
       (e) CV band of the inter-state pipelines either supplying natural gas into the pipeline system or receiving natural gas from this pipeline system.
       (2) The transporter shall publish CV

Reg.6 System Use Gas (SUG), Line Pack (LP) and Transmission Losses (TL).--

       A shipper shall sell or provide the gas, if required by the transporter, for SUG, LP and TL at the prevailing market price in proportion to its capacity booking in the pipeline:
       Provided that, the transporter shall be free to arrange this gas from any other source.


Reg.7 Measurement of gas.--

       (1) The transporter shall ensure the provision of the entry and exit point equipments to measure gas composition, calorific value, pressure and temperature on continuous basis as specified in regulation 9.
       (2) The transporter shall divide the natural gas pipeline into a number of "a homogenous area" (AHA) and shall continuously measure the quality parameters by Gas Chromatograph (GC) in each AHA.
       (3) Measurement of CV and gas quality as provided in sub-regulations (1) and sub-regulation (2) shall be sufficient for billing and other contractual purposes for all exit points served by the AHA.
       (4) Total error limit and accuracy of the measuring equipment shall be as agreed to between the entities subject to any mandatory specifications, if any, laid down by the Board through regulations.
 

Reg.8 Obligations at entry point and exit point.--

       (1) At the entry point when the shipper delivers natural gas that does not meet the quality requirements as specified in sub-regulation (1), (4) to (6) of regulation 5, in respect of CV band and threshold level of other elements of gas, the transporter may-
       (a) refuse to accept it; or
       (b) accept any gas that does not meet the requirements of gas in terms of gas parameters-
       (i) as specified at Schedule II:
       Provided that transporter may charge reasonable cost of service from the shipper, as may be mutually agreed, for any additional facilities or treatment for cleaning up or integrity requirements of the pipeline and to upgrade gas to pipeline specifications;
       Provided further that such off-spec natural gas

Reg.9 Facilities at entry point and exit point.--

       (1) Shipper shall arrange to deliver gas at entry point on the pipeline system and shall provide all facilities, including measuring equipments, required for transfer of custody and delivery of gas to the transporter unless otherwise agreed to between shipper and transporter.
       (2) Transporter shall execute hooking up facility of shipper to the entry point at the cost of shipper.
       (3) Shipper or his authorized nominee shall own, operate and maintain facilities upstream of entry points at his own cost and risk unless the facilities are provided by the transporter under a separate contract.
       (4) The transporter shall own and operate facilities including measuring equipments at exit point for transfer of custody and delivery of gas to the shipper unless otherwise agreed to between shipper and transpo

Reg.10 Pipeline capacity booking.--

       (1) More than one shipper can hold capacity at any entry or exit point.
       (2) The booked capacity shall be through a contract between shipper and transporter under "Access Arrangements" in the form of MDQ.
       (3) When a transporter receives a request for access from a shipper it shall respond within three days after receiving the request from the shipper-
       (a) confirming that spare capacity exists to satisfy the request and specifying the charges and terms and conditions upon which it will make the service available;
       (b) advising that spare capacity does not exist to satisfy the request;
       (c) advising that the data provided by the shipper require technical study to accommodate his request and such study shall be

Reg.11 Interconnection of two common carrier or contract carrier natural gas pipeline

       (1) The interconnection of two common carrier or contract carrier pipeline systems may be necessitated by either a transporter or a shipper and such interconnection shall be allowed subject to capacity available in the receiving common carrier pipeline and when it is operationally and technically feasible.
       (2) The gas quality specifications for interconnecting pipelines should be compatible.
       (3) The cost of such interconnection point shall be borne by the entity that has triggered such requirement for interconnection and the cost of interconnection may include the cost of compression equipments for meeting the operational requirements for receiving natural gas in the common carrier system.
       (4) The execution of the interconnection facilities shall be carried out by the transporter who owns the

Reg.12 Methodology for providing access.--

       (1) The contracted capacity between a shipper and a transporter shall be for a gas quantity not exceeding the own firmed up capacity and aggregated volume contracted by the transporter for a period of more than a year.
       (2) The excess 33% capacity shall be allocated on common carrier principle on first come first serve basis:
       1["Provided that in case any capacity out of the 33% excess capacity under sub-regulation (2) is available at anytime due to non-existence of demand from any shipper, then, the same may be contracted for a period of one year or more subject to the stipulation that in case another entity seeks booking of the same for a period of less than one year, the request shall be accommodated after pro-rating the same from the common carrier capacity already contracted to other entities for a period of one year or more :
&nbs

Reg.13 System indiscipline and charges.--

       (1) If the pipeline capacity has been utilized by the shipper without permission of the transporter over 110% of the capacity allocated, then, the shipper shall be charged for such unauthorized overrun by the transporter in a transparent manner on non-discriminatory basis.
       (2) If the shipper off-takes less quantity of gas from the pipeline system than injected into it, then, the shipper is creating positive imbalance and it shall be allowed a cumulative positive imbalance of ten per cent of allocated capacity as tolerance limit.
       (3) Positive imbalance up to ten per cent of the booked capacity shall not attract any positive imbalance charges and the shipper shall be charged by the transporter for positive imbalance charges in a transparent manner on non discriminatory basis if it exceeds ten per cent.
     &nbs

Reg.14 Planned maintenance.--

       (1) The transporter is required to draw up and publish a maintenance plan well ahead of time for a defined period identifying those entry and exit points where gas flows may be restricted by maintenance works, the extent of the restrictions and the time of occurrence and the transporter shall plan such maintenance so as to minimize disruption to affected parties and can request information from shippers on their survival flows at entry and exit points to assist the transporter for such maintenance schedule.
       (2) Dates for scheduled maintenance shall be informed well in advance which can be adjusted on thirty days advance notice to and from affected shippers.
       (3) The planned maintenance period shall not exceed ten days in a year.


Reg.15 Information about force majeure.--

       (1) The affected party shall on occurrence of any force majeure-
       (a) as soon as reasonably practicable notify each of the other parties of the occurrence and nature of the force majeure, the expected duration thereof insofar as the same can reasonably be assessed and the obligations of the affected party performance of which is affected thereby; and
       (b) from time to time thereafter provide to each other party reasonable details of the following, namely-
       (i) developments in the matters notified under clause (a);
       (ii) the steps being taken by the affected party to overcome the force majeure occurrence or its effects and to resume performance of its relevant obligations.
       (2) The entities shall be relieved of

Reg.16 Operational planning.--

       (1) Shipper shall make daily, weekly or monthly nominations to the transporter for the quantities that it wishes to deliver to at a particular entry point and off-take at a particular exit point from the pipeline system on a daily basis in line with the provisions under these regulations.
       (2) (a) Transporter shall schedule the quantities of gas for transportation based on the nominations received and capacity available in the pipeline system.
       (b) Transporter may schedule the nomination for quantities over and above the booked capacity subject to a maximum of ten per cent of the declared pipeline capacity.
       (3) (a) Transporter shall allocate quantity of gas to various shippers as determined under clause (b) of sub-regulation (2) and as per the scheduling exercise.
    &nbs

Reg.17 Emergencies.--

       The procedures to be followed by shipper and the transporter in the event of an emergency shall be included in the access arrangements by shipper and transporter on mutually agreed terms.


Reg.18 Confidentiality of information.--

       All documentation, information, data, submissions and comments disclosed or delivered whether in writing or otherwise by any entity to the transporter, shipper or to any other party either in connection with or in consequence of the requirements of these regulations shall be regarded and treated as confidential and shall not be disclosed either in full or part of any or all of the documentation, information, data, submissions and comments including the contents and copies thereof in any form except in connection with any proceedings in any court.


Reg.19 Miscellaneous.--

       If any dispute arises with regards to the interpretation of any of the provisions of these regulations, the decision of the Board shall be final.


Sch.1 SCHEDULE -I

       SCHEDULE -I
       Format for declaring capacity of Pipeline
       (see regulation 4(2))
       1. Name of entity:
       2. Name of pipeline:
       3. Sectionwise capacity on the pipeline(to be furnished for each section separately):
       (a) Number of sections:
       (b) Name of section with start and end point:
       (c) Capacity -
       (i) Volume terms
       (ii) Energy terms
       4. Number of AHAs:
       5. Number of entry points on the pipeline route:
&nbs

Sch.2 SCHEDULE-II

       SCHEDULE-II
       (see regulations 5(5), 8(1)(b)(i))
       Gas quality specifications
       Parameters Limit
       Hydrocarbons dew pt (Degree Celsius, max.)*
       0
       Water dew pt (Degree Celsius, max)*
       0
       Hydrogen Sulphide (ppm by wt. max.) 5
       Total Sulphur (ppm by wt. max.) 10
       Carbon dioxide (mole % max.) 6
       Total inerts (mole %) 8
       Temperature (Degree Celsius, max.) 55
       Oxygen (% mol

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