Reg.1 Short title and commencement.--

       (1) These regulations may be called the Petroleum and Natural Gas Regulatory Board (Determination of Network Tariff for City or Local Natural Gas Distribution Networks and Compression Charge for CNG) 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 requires,-
       (a) "Act" means the Petroleum and Natural Gas Regulatory Board Act, 2006;
       (b) "appointed day" means the date of October 1, 2007 when the Central Government notified the establishment of the Petroleum and Natural Gas Regulatory Board;
       (c) "Board" means the Petroleum and Natural Gas Regulatory Board established under sub-section (1) of section 3 of the Act;
       (d) "City Gate Station" means the point where custody transfer of natural gas from natural gas pipeline to the city or local natural gas distribution network (hereinafter referred as CGD Network) takes place;
       (e) "compression charge for CNG" means a charge (excluding statutory taxes and le

Reg.3 Application.--

       (1) These regulations shall apply to an entity -
       (a) authorized by the Central Government for laying, building, operating or expanding CGD network before the appointed day;
       (b) laying, building, operating or expanding CGD network before the appointed day and authorized by the Board for such activities under the Petroleum and Natural Gas Regulatory Board (Authorizing Entities to Lay, Build, Operate or Expand City or Local Natural Gas Distribution Networks) Regulations, 2008.

Reg.4 Determination of network tariff and compression charge for CNG.--

       The network tariff and compression charge for CNG in respect of an entity covered clause (a) or clause (b) of sub-regulation (1) of regulation 3 shall be determined as per the procedure at Schedule A.

Reg.5 Form for data submission for determination of network tariff and compression charge for CNG.--

       (1) An entity is obligated to submit to the Board the financial, cost and other data in the form at Attachment 1 of Schedule A:
       (a) The information referred to in sub-regulation (1) shall be submitted by an entity referred to in clause (a) of sub-regulation (1) of regulation 3 within thirty days of the notification of these regulations;
       (b) The information referred to in sub-regulation (1) shall be submitted by an entity referred to in clause (b) of sub- regulation (1) of regulation 3 alongwith the application seeking grant of authorization under the Petroleum and Natural Gas Regulatory Board (Authorizing Entities to Lay, Build, Operate or Expand City or Local Natural Gas Distribution Networks) Regulations, 2008.

Reg.6 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.A Schedule A

       Schedule A
       [see regulations 3 and 4]
       Procedure for determination of network tariff and compression charge for CNG
       The network tariff and compression charge for CNG in a CGD network shall be determined by considering a reasonable rate of return on normative level of capital employed plus a normative level of operating expenses in the CGD network.
       1. Financial feasibility.
       The entity to which these regulations apply shall submit all technical, operating, financial and cost data of the CGD network or CGD network project that may be required by the Board for determination of the network tariff and compression charge for CNG.
       2. Methodology for determination of netw