(1) This Act may be called the Petroleumand Natural Gas Regulatory Board Act, 2006.

(2) It extends to the whole of India.

(3) It shall come into force on such date ¹as the Central Government may, by notification in theOfficial Gazette, appoint:

Provided that different dates may be appointed for different provisions of this Act and any referencein any such provision to the commencement of this Act shall be construed as a reference to the cominginto force of that provision.

(4) It applies to refining, processing, storage, transportation, distribution, marketing and sale ofpetroleum, petroleum products and natural gas excluding production of crude oil and natural gas.

1 1st October, 2007 (except s. 16), vide notification No. G.S.R. 637(E) dated 1st October, 2007, see Gazette of India,Extraordinary, Part II, sec. 3(ii).

In this Act, unless the context otherwise requires,--

(a) "affiliate code of conduct" means the code of conduct governing entities engaged in storage,transmission, distribution, marketing and sale of natural gas under sub-section (1) of section 21;

(b) "Appellate Tribunal" means the Appellate Tribunal referred to in section 30;

(c) "appointed day" means the date on which the Board is established under sub-section (1) ofsection 3;

(d) "authorised entity" means an entity--

(A) registered by the Board under section 15--

(i) to market any notified petroleum, petroleum products or natural gas, or

(ii) to establish and operate liquefied natural gas terminals, or

(B) authorised by the Board under section 16--

(i) to lay, build, operate or expand a common carrier or contract carrier, or

(ii) to lay, build, operate or expand a city or local natural gas distribution network;

(e) 'auto liquefied petroleum gas" means a mixture of certain light hydrocarbons derived frompetroleum, which are gaseous at normal ambient temperature and atmospheric pressure but may be condensed to the liquid state at normal ambient temperature by the application of moderate pressure,and which conform to such specifications for use as fuel in vehicles, as the Central Government may,in consultation with the Bureau of Indian Standards, notify from time to time;

(f) "Board" means the Petroleum and Natural Gas Regulatory Board established under subsection(1) of section 3;

(g) 'Bureau of Indian Standards" means the Bureau of Indian Standards established under section3 of the Bureau of Indian Standards Act, 1986 (63 of 1986);

(h) "Chairperson" means the Chairperson of the Board appointed under sub-section (1) ofsection 4;

(i) "city or local natural gas distribution network" means an inter-connected network of gaspipelines and the associated equipment used for transporting natural gas from a bulk supply highpressure transmission main to the medium pressure distribution grid and subsequently to the servicepipes supplying natural gas to domestic, industrial or commercial premises and CNG stations situatedin a specified geographical area.

Explanation.-- For the purposes of this clause, the expressions "high pressure" and "mediumpressure" shall mean such pressure as the Central Government may, by notification, specify to behigh pressure or, as the case may be, medium pressure;

(j) "common carrier" means such pipelines for transportation of petroleum, petroleum productsand natural gas by more than one entity as the Board may declare or authorise from time to time on anon-discriminatory open access basis under sub-section (3) of section 20, but does not includepipelines laid to supply--

(i) petroleum products or natural gas to a specific consumer; or

(ii) crude oil;

Explanation.--For the purposes of this clause, a contract carrier shall be treated as a commoncarrier, if-

(i) such contract carrier has surplus capacity over and above the firm contracts enteredinto; or

(ii) the firm contract period has expired.

(k) "CNG station" means filling station where one or more dispensing units are provided for saleof compressed natural gas;

(l) "compressed natural gas or CNG" means natural gas used as fuel for vehicles, typicallycompressed to the pressure ranging from 200 to 250 bars in the gaseous state;

(m) "contract carrier" means such pipelines for transportation of petroleum, petroleum productsand natural gas by more than one entity pursuant to firm contracts for at least one year as may bedeclared or authorised by the Board from time to time under sub-section (3) of section 20;

(n) "dealer" means a person, association of persons, firm, company or co-operative society, bywhatsoever name called or referred to, and appointed by an oil company to purchase, receive, storeand sell motor spirit, high speed diesel, superior kerosene oil, auto liquefied petroleum gas or naturalgas;

(o) 'distributor" means a person, association of persons, firm, company or co-operative society,by whatsoever name called or referred to, and appointed by an oil company to purchase, receive, storeand sell to consumers liquefied petroleum gas in cylinders;

(p) "entity" means a person, association of persons, firm, company or co-operative society, bywhatsoever name called or referred to, other than a dealer or distributor, and engaged or intending tobe engaged in refining, processing, storage, transportation, distribution, marketing, import and exportof petroleum, petroleum products and natural gas including laying of pipelines for transportation of petroleum, petroleum products and natural gas, or laying, building, operating or expanding city orlocal natural gas distribution network or establishing and operating a liquefied natural gas terminal;

(q) 'exchange of products shall" mean giving and receiving of a petroleum product in accordancewith an agreement entered into by the concerned entities;

(r) "high speed diesel" means any hydrocarbon oil (excluding mineral colza oil and turpentinesubstitute), which conforms to such specifications for use as fuel in compression ignition engines, asthe Central Government may, in consultation with the Bureau of Indian Standards, notify from time totime;

(s) "kerosene or superior kerosene oil" means a middle distillate mixture of hydrocarbons whichconforms to such specifications, as the Central Government may, in consultation with the Bureau ofIndian Standards, notify from time to time;

(t) "liquefied natural gas terminal" means the facilities and infrastructure required to--

(i) receive liquefied natural gas;

(ii) store liquefied natural gas;

(iii) enable regasification of liquefied natural gas; and

(iv) transport regasified liquefied natural gas till the outside boundaries of the facility;

(u) "liquefied petroleum gas" means a mixture of light hydrocarbons containing propane,isobutene, normal butane, butylenes, or such other substance which is gaseous at normal ambienttemperature and atmospheric pressure but may be condensed to liquid state at normal ambienttemperature by the application of pressure and conforms to such specifications, as the CentralGovernment may, in consultation with the Bureau of Indian Standards, notify from time to time;

(v) "local distribution entity" means an entity authorised by the Board under section 20 to lay,build, operate or expand a city or local natural gas distribution network;

(w) "marketing service obligations" means obligations--

(i) to set up marketing infrastructure and retail outlets in remote areas in respect of notifiedpetroleum and petroleum products;

(ii) to maintain minimum stock of notified petroleum and petroleum products;

(iii) of a local distribution entity to supply natural gas to consumers; and

(iv) such other obligations as may be specified by regulations;

(x) "maximum retail price" means the maximum price fixed by an entity at which the petroleum,petroleum products and natural gas may be sold to the retail consumers and includes all taxes, cessand levies, local or otherwise and freight or commission payable to the dealers;

(y) "member" means a member of the Board appointed under sub-section (1) of section 4 andincludes the Member (Legal) and the Chairperson;

(z) "motor spirit" means any hydrocarbon oil (excluding crude mineral oil) used as fuel in sparkignition engines which conforms to such specifications, as the Central Government may, inconsultation with the Bureau of Indian Standards, notify from time to time;

(za) "natural gas" means gas obtained from bore-holes and consisting primarily of hydrocarbonsand includes--

(i) gas in liquid state, namely, liquefied natural gas and regasified liquefied natural gas,

(ii) compressed natural gas,

(iii) gas imported through transnational pipelines, including CNG or liquefied natural gas,

(iv) gas recovered from gas hydrates as natural gas,

(v) methane obtained from coal seams, namely, coal bed methane,

but does not include helium occurring in association with such hydrocarbons;

(zb) "notification" means a notification published in the Official Gazette and the expressionnotified with its cognate meanings and grammatical variations, shall be construed accordingly;

(zc) "notified petroleum, petroleum products and natural gas" means such petroleum, petroleumproducts and natural gas as the Central Government may notify from time to time, after beingsatisfied that it is necessary or expedient so to do for maintaining or increasing their supplies or forsecuring their equitable distribution or ensuring adequate availability;

(zd) 'oil company" means a company registered under the Companies Act, 1956 (1 of 1956) andincludes an association of persons, society or firm, by whatsoever name called or referred to, forcarrying out an activity relating to petroleum, petroleum products and natural gas;

(ze) "petroleum" means any liquid hydrocarbon or mixture of hydrocarbons, and any inflammablemixture (liquid, viscous or solid) containing any liquid hydrocarbon, including crude oil and liquefiedpetroleum gas, and the expression 'petroleum product' shall mean any product manufactured frompetroleum;

(zf) "pipeline access code" means the code to establish a framework for third party access topipelines under sub-clause (i) of clause (e) of section 11;

(zg) "prescribed" means prescribed by rules made by the Central Government under this Act;

(zh) "regulations" means regulations made by the Board under this Act;

(zi) "restrictive trade practice" means a trade practice which has, or may have, the effect ofpreventing, distorting or restricting competition in any manner and in particular,--

(i) which tends to obstruct the flow of capital or resources into the stream of production, or

(ii) which tends to bring about manipulation of prices, or conditions of delivery or to affectthe flow of supplies in the market relating to petroleum, petroleum products or natural gas orservices in such manner as to impose on the consumers unjustified costs or restrictions;

(zj) "retail outlet" means filling station where one or more dispensing pumps have been providedfor sale of motor spirit, high speed diesel, auto-liquefied petroleum gas or natural gas and includesdistributorship for liquefied petroleum gas or dealership for superior kerosene oil or CNG stations;

(zk) "retail" service obligations means obligations of dealers and distributors for maintainingsupplies to consumers throughout the specified working hours and of specified quality, quantity anddisplay of maximum retail price of notified petroleum, petroleum products and natural gas includingCNG and such other obligations, as may be specified by regulations;

(zl) "rules" means rules made by the Central Government under this Act;

(zm) "Secretary" means the Secretary of the Board;

(zn) "transportation rate", in relation to common carrier or contract carrier or a city or localnatural gas distribution network, means such rate for moving each unit of petroleum, petroleumproducts or natural gas as may be fixed by regulations.

(1) With effect from such date as the CentralGovernment may, by notification, appoint, there shall be established, for the purposes of this Act, a Boardto be called the Petroleum and Natural Gas Regulatory Board.

(2) The Board shall be a body corporate by the name aforesaid, having perpetual succession and acommon seal, with power, subject to the provisions of this Act, to acquire, hold and dispose of property,both movable and immovable, and to contract, and shall, by the said name, sue or be sued.

(3) The Board shall consist of a Chairperson, a Member (Legal) and three other members to beappointed by the Central Government.

(4) The head office of the Board shall be at New Delhi and regional offices at such places as theBoard may deem necessary having regard to public interest and magnitude of the work.

(1) The CentralGovernment shall appoint the Chairperson and other members of the Board from amongst persons ofeminence in the fields of petroleum and natural gas industry, management, finance, law, administration orconsumer affairs:

Provided that no person shall be appointed as Member (Legal) unless he--

(a) is qualified to be a Judge of a High Court; or

(b) has been a member of the Indian Legal Service and has held a post in Grade I of that Servicefor at least three years.

(2) The Central Government shall, for the purposes of selecting the Chairperson and other membersof the Board and for preparing a panel of persons to be considered for appointment as the TechnicalMember (Petroleum and Natural Gas) of the Appellate Tribunal, constitute a Search Committeeconsisting of--

(i) Member, Planning Commission in charge of the energy sector-Chairperson;

(ii) Secretary to the Government of India, Ministry of Petroleum and Natural Gas-Member;

(iii) Secretary to the Government of India, Ministry of Finance, Department of Economic AffairsMember;

(iv) Secretary to the Government of India in charge of Commerce, Ministry of Commerce andIndustry-Member; and

(v) Secretary to the Government of India, Department of Legal Affairs, Ministry of Law andJustice-Member.

(1) Beforeappointing any person as the Chairperson or other member, the Central Government shall satisfy itselfthat such person does not have any financial or other interest which is likely to affect prejudicially hisfunctions as Chairperson or such other member.

(2) The Chairperson and other members shall hold office for a term of five years from the date onwhich they enter upon their offices or until they attain the age of sixty-five years, whichever is earlier:

Provided that the Chairperson and other members shall not be eligible for re-appointment.

Explanation.-- For the purposes of this section, appointment of a member as Chairperson shall not bedeemed to be re-appointment.

(3) A person in the service of the Central Government, a State Government or an undertaking,corporation or company owned or controlled by the Central Government or a State Government or fromany other non-Governmental or corporate body shall resign or retire from such service before joining asthe Chairperson or other member, as the case may be.

(4) The salaries and allowances payable to and the other terms and conditions of service of theChairperson and the other members shall be such as may be prescribed:

Provided that neither the salary and allowances nor the other terms and conditions of service of theChairperson or any other member shall be varied to his disadvantage after appointment.

(5) The Chairperson or other member may resign his office by giving notice thereof in writing to theCentral Government and on such resignation being accepted, the Chairperson or such other member shallbe deemed to have vacated his office.

(6) The Chairperson or any other member, upon ceasing to hold office as such, shall--

(a) be ineligible for further employment under the Central Government or any State Government;and

(b) not accept any commercial employment for a period of two years from the date he ceases tohold such office.

Explanation.-- For the purposes of this section, "commercial employment" means employment inany capacity under, or agency of, a person engaged in trading, commercial, industrial or financialbusiness in any field and includes also a director of a company or partner of a firm or setting up practiceeither independently or as partner of a firm or as an advisor or a consultant.

The Chairperson shall have the powers of general superintendence anddirections in the conduct of the affairs of the Board and shall, in addition to presiding over the meetings ofthe Board, exercise and discharge such other powers and functions of the Board, as may be assigned tohim by the Board.

The Central Government mayremove from office the Chairperson or any other member, who--

(a) has been adjudged as insolvent; or

(b) has been convicted of an offence which, in the opinion of the Central Government, involvesmoral turpitude; or

(c) has become physically or mentally incapable of acting as a member; or

(d) has acquired such financial or other interest as is likely to affect prejudicially his functions asa member; or

(e) has so abused his position as to render his continuance in office prejudicial to the publicinterest:

Provided that no Chairperson or other member shall be removed from office under clause (d) orclause (e) unless the Central Government, after holding an inquiry by any person appointed or authorityconstituted for the purpose and in accordance with such procedure as may be prescribed in this behalf, issatisfied that such person ought on such ground or grounds to be removed.

(1) The Board shall meet at such times and places, and shall observesuch procedure in regard to the transaction of business at its meetings (including the quorum at suchmeetings) as may be provided by regulations.

(2) The Chairperson or, if he is unable to attend a meeting of the Board, the senior-most memberpresent, reckoned from the date of appointment to the Board, shall preside at the meeting:

Provided that in case of common date of appointment of members, the member senior in age shall beconsidered as senior to the other members.

(3) All questions which come up before any meeting of the Board shall be decided by a majority ofthe members present and voting, and in the event of an equality of votes, the Chairperson or in hisabsence, the person presiding shall have a second or casting vote.

(4) All orders and decisions of the Board shall be authenticated by the Secretary or any other officerof the Board duly authorised by the Chairperson in this behalf.

No act or proceeding of the Boardshall be invalid merely by reason of--

(a) any vacancy in, or any defect in the constitution of, the Board; or

(b) any defect in the appointment of a person acting as a member of the Board; or

(c) any irregularity in the procedure of the Board not affecting the merits of the case.

(1) The Central Government may, in consultationwith the Board, appoint a Secretary to exercise and perform such powers and duties, under the control of the Chairperson as may be specified by regulations:

Provided that no such consultation shall be necessary for appointment of the first Secretary of theBoard.

(2) The Board may, with the approval of the Central Government, determine the number, nature andcategories of other officers and employees required to assist the Board in the efficient discharge of itsfunctions.

(3) The salaries and allowances payable to and the other terms and conditions of service of theSecretary, the other officers and employees of the Board shall be such as may be prescribed.

(4) The Board may appoint consultants required to assist in the discharge of its functions on suchterms and conditions as may be determined by regulations.

The Board shall--

(a) protect the interest of consumers by fostering fair trade and competition amongst the entities;

(b) register entities to--

(i) market notified petroleum and petroleum products and, subject to the contractualobligations of the Central Government, natural gas;

(ii) establish and operate liquefied natural gas terminals;

(iii) establish storage facilities for petroleum, petroleum products or natural gas exceedingsuch capacity as may be specified by regulations;

(c) authorise entities to--

(i) lay, build, operate or expand a common carrier or contract carrier;

(ii) lay, build, operate or expand city or local natural gas distribution network;

(d) declare pipelines as common carrier or contract carrier;

(e) regulate, by regulations,--

(i) access to common carrier or contract carrier so as to ensure fair trade and competitionamongst entities and for that purpose specify pipeline access code;

(ii) transportation rates for common carrier or contract carrier;

(iii) access to city or local natural gas distribution network so as to ensure fair trade andcompetition amongst entities as per pipeline access code;

(f) in respect of notified petroleum, petroleum products and natural gas--

(i) ensure adequate availability;

(ii) ensure display of information about the maximum retail prices fixed by the entity forconsumers at retail outlets;

(iii) monitor prices and take corrective measures to prevent restrictive trade practice by theentities;

(iv) secure equitable distribution for petroleum and petroleum products;

(v) provide, by regulations, and enforce, retail service obligations for retail outlets andmarketing service obligations for entities;

(vi) monitor transportation rates and take corrective action to prevent restrictive trade practiceby the entities;

(g) levy fees and other charges as determined by regulations;

(h) maintain a data bank of information on activities relating to petroleum, petroleum productsand natural gas;

(i) lay down, by regulations, the technical standards and specifications including safety standardsin activities relating to petroleum, petroleum products and natural gas, including the construction andoperation of pipeline and infrastructure projects related to downstream petroleum and natural gassector;

(j) perform such other functions as may be entrusted to it by the Central Government to carry outthe provisions of this Act.

(1) The Board shallhave jurisdiction to--

(a) adjudicate upon and decide any dispute or matter arising amongst entities or between an entityand any other person on issues relating to refining, processing, storage, transportation, distribution,marketing and sale of petroleum, petroleum products and natural gas according to the provisions ofChapter V, unless the parties have agreed for arbitration;

(b) receive any complaint from any person and conduct any inquiry and investigation connectedwith the activities relating to petroleum, petroleum products and natural gas on contravention of--

(i) retail service obligations;

(ii) marketing service obligations;

(iii) display of retail price at retail outlets;

(iv) terms and conditions subject to which a pipeline has been declared as common carrier orcontract carrier or access for other entities was allowed to a city or local natural gas distributionnetwork, or authorisation has been granted to an entity for laying, building, expanding oroperating a pipeline as common carrier or contract carrier or authorisation has been granted to anentity for laying, building, expanding or operating a city or local natural gas distribution network;

(v) any other provision of this Act or the rules or the regulations or orders made thereunder.

(2) While deciding a complaint under sub-section (1), the Board may pass such orders and issue suchdirections as it deems fit or refer the matter for investigation according to the provisions of Chapter V.

(1) The Board shall have, for the purposes of discharging itsfunctions under this Act, the same powers as are vested in a civil court under the Code of Civil Procedure,1908 (5 of 1908), while trying a suit, in respect of the following matters, namely:--

(a) summoning and enforcing the attendance of any person and examining him on oath;

(b) subject to the provisions of sections 123 and 124 of the Indian Evidence Act, 1872 (1 of1872), requisitioning any public record or document or a copy of such record or document, from anyoffice and production of such documents;

(c) receiving evidence on affidavits;

(d) issuing commissions for the examination of witnesses or documents;

(e) dismissing an application for default or deciding it, ex parte;

(f) setting aside any order of dismissal of any application for default or any order passed by it, exparte;

(g) granting interim relief;

(h) reviewing its decision; and

(i) any other matter which may be prescribed.

(2) Every proceeding before the Board shall be deemed to be a judicial proceeding within themeaning of sections 193 and 228, and for the purposes of section 196, of the Indian Penal Code (45 of1860) and the Board shall be deemed to be a civil court for the purposes of section 195 and ChapterXXVI of the Code of Criminal Procedure, 1973 (2 of 1974).

(3) The Board shall be guided by the principles of natural justice and subject to other provisions ofthis Act and of any rules made thereunder, shall have powers to regulate its own procedure including theplaces at which it shall conduct its business.

(1) For the purposes of this Act, a register to be called the Petroleum and Natural GasRegister shall be kept at the head office of the Board containing such details of entities--

(a) registered for--

(i) marketing notified petroleum, petroleum products or natural gas, or

(ii) establishing and operating liquefied natural gas terminals, or

(iii) establishing storage facilities for petroleum, petroleum products or natural gas exceedingsuch capacity as may be specified by regulations, or

(b) authorised for--

(i) laying, building, operating or expanding a common carrier, or

(ii) laying, building, operating or expanding a city or local natural gas distribution network, asmay be provided by the Board by regulations.

(2) A copy of any entry in the register purporting to be maintained by the Board and certified as suchby an officer authorised by the Board, shall be admitted in evidence in all courts and in all proceedingswithout further proof or production of the original.

(3) The register shall be open to public inspection at the head office of the Board.

(4) Any person may, on application to the Board, and on payment of such fee as may be determinedby the Board, by regulations, obtain a certified copy of any entry in the register.

(1) Every entity desirous of--

(a) marketing any notified petroleum or petroleum products or natural gas; or

(b) establishing or operating a liquefied natural gas terminal; or

(c) establishing storage facilities for petroleum, petroleum products or natural gas exceeding suchcapacity as may be specified by regulations,

and fulfilling the eligibility conditions as may be prescribed shall make an application to the Board for itsregistration under this Act:

Provided that no registration under this Act shall be required for any entity carrying on any activityreferred to in clause (a) or clause (b) or clause (c) immediately before the appointed day but shall informthe Board about such activity within six months from the appointed day.

(2) Every application for registration under sub-section (1) shall be made in such form and in suchmanner and shall be accompanied by such fee as may be determined by the Board by regulations.

(3) The Board may, after making such enquiry and subject to such terms and conditions as it mayspecify, grant a certificate of registration to the entity allowing to commence and carry on the activityreferred to in clause (a) or clause (b) or clause (c), as the case may be, of sub-section (1).

(4) The Board may, by order, suspend or cancel a certificate of registration granted under sub-section(3) in such manner as may be determined by regulations:

Provided that no order under this sub-section shall be made unless the entity concerned has beengiven a reasonable opportunity of being heard.

No entity shall--

(a) lay, build, operate or expand any pipeline as a common carrier or contract carrier,

(b) lay, build, operate or expand any city or local natural gas distribution network, withoutobtaining authorisation under this Act:

Provided that an entity,--

(i) laying, building, operating or expanding any pipeline as common carrier or contract carrier; or

(ii) laying, building, operating or expanding any city or local natural gas distribution network,

immediately before the appointed day shall be deemed to have such authorisation subject to theprovisions of this Chapter, but any change in the purpose or usage shall require separate authorisationgranted by the Board.

(1) An entity which is laying, building, operating or expanding,or which proposes to lay, build, operate or expand, a pipeline as a common carrier or contract carrier shallapply in writing to the Board for obtaining an authorisation under this Act:

Provided that an entity laying, building, operating or expanding any pipeline as common carrier orcontract carrier authorised by the Central Government at any time before the appointed day shall furnishthe particulars of such activities to the Board within six months from the appointed day.

(2) An entity which is laying, building, operating or expanding, or which proposes to lay, build,operate or expand, a city or local natural gas distribution network shall apply in writing for obtaining anauthorisation under this Act:

Provided that an entity laying, building, operating or expanding any city or local natural gasdistribution network authorised by the Central Government at any time before the appointed day shallfurnish the particulars of such activities to the Board within six months from the appointed day.

(3) Every application under sub-section (1) or sub-section (2) shall be made in such form and in suchmanner and shall be accompanied with such fee as the Board may, by regulations, specify.

(4) Subject to the provisions of this Act and consistent with the norms and policy guidelines laiddown by the Central Government, the Board may either reject or accept an application made to it, subjectto such amendments or conditions, if any, as it may think fit.

(5) In the case of refusal or conditional acceptance of an application, the Board shall record inwriting the grounds for such rejection or conditional acceptance, as the case may be.

When an application for registration for marketing notifiedpetroleum, petroleum products and natural gas, or for establishing and operating a liquefied natural gasterminal, or for establishing storage facilities for petroleum, petroleum products or natural gas exceedingsuch capacity as may be specified by regulations, is accepted whether absolutely or subject to conditionsor limitations, the Board shall, as soon as may be, cause such acceptance to be known to the public insuch form and manner as may be provided by regulations.

(1) When, either on the basis of an application for authorisation forlaying, building, operating or expanding a common carrier or contract carrier or for laying, building,operating or expanding a city or local natural gas distribution network is received or on suo motu basis,the Board forms an opinion that it is necessary or expedient to lay, build, operate or expand a commoncarrier or contract carrier between two specified points, or to lay, build, operate or expand a city or localnatural gas distribution network in a specified geographic area, the Board may give wide publicity of itsintention to do so and may invite applications from interested parties to lay, build, operate or expand suchpipelines or city or local natural gas distribution network.

(2) The Board may select an entity in an objective and transparent manner as specified by regulationsfor such activities.

(1) If the Board is of the opinion that it is necessary or expedient, todeclare an existing pipeline for transportation of petroleum, petroleum products and natural gas or anexisting city or local natural gas distribution network, as a common carrier or contract carrier or toregulate or allow access to such pipeline or network, it may give wide publicity of its intention to do soand invite objections and suggestions within a specified time from all persons and entities likely to beaffected by such decision.

(2) For the purposes of sub-section (1), the Board shall provide the entity owning, the pipeline ornetwork an opportunity of being heard and fix the terms and conditions subject to which the pipeline ornetwork may be declared as a common carrier or contract carrier and pass such orders as it deems fithaving regard to the public interest, competitive transportation rates and right of first use.

(3) The Board may, after following the procedure as specified by regulations under section 19 andsub-sections (1) and (2), by notification,--

(a) declare a pipeline or city or local natural gas distribution network as a common carrier orcontract carrier; or

(b) authorise an entity to lay, build, operate or expand a pipeline as a common carrier or contractcarrier; or

(c) allow access to common carrier or contract carrier or city or local natural gas distributionnetwork; or

(d) authorise an entity to lay, build, operate or expand a city or local natural gas distributionnetwork.

(4) The Board may decide on the period of exclusivity to lay, build, operate or expand a city or localnatural gas distribution network for such number of years as it may by order, determine in accordancewith the principles laid down by the regulations made by it, in a transparent manner while fully protectingthe consumer interests.

(5) For the purposes of this section, the Board shall be guided by the objectives of promotingcompetition among entities, avoiding infructuous investment, maintaining or increasing supplies or forsecuring equitable distribution or ensuring adequate availability of petroleum, petroleum products andnatural gas throughout the country and follow such principles as the Board may, by regulations, determinein carrying out its functions under this section.

(1) The entity laying, building, operating or expanding a pipeline fortransportation of petroleum and petroleum products or laying, building, operating or expanding a city orlocal natural gas distribution network shall have right of first use for its own requirement and theremaining capacity shall be used amongst entities as the Board may, after issuing a declaration undersection 20, determine having regard to the needs of fair competition in marketing and availability ofpetroleum and petroleum products throughout the country:

Provided that in case of an entity engaged in both marketing of natural gas and laying, building,operating or expanding a pipeline for transportation of natural gas on common carrier or contract carrierbasis, the Board shall require such entities to comply with the affiliate code of conduct as may bespecified by regulations and may require such entity to separate the activities of marketing of natural gasand the transportation including ownership of the pipeline within such period as may be allowed by theBoard and only within the said period, such entity shall have right of first use.

(2) An entity other than an entity authorised to operate shall pay transportation rate for use ofcommon carrier or contract carrier to the entity operating it as an authorised entity.

(3) An entity authorised to lay, build, operate or expand a pipeline as common carrier or contractcarrier or to lay, build, operate or expand a city or local natural gas distribution network shall be entitledto institute proceedings before the Board to prevent, or to recover damages for, the infringement of anyright relating to authorisation.

Explanation.--For the purposes of this sub-section, "infringement of any right" means doing of anyact by any person which interferes with common carrier or contract carrier or causes prejudice to theauthorised entity.

(1) Subject to the provisions of this Act, the Board shall lay down, byregulations, the transportation tariffs for common carriers or contract carriers or city or local natural gasdistribution network and the manner of determining such tariffs.

(2) For the purposes of sub-section (1), the Board shall be guided by the following, namely:--

(a) the factors which may encourage competition, efficiency, economic use of the resources,good performance and optimum investments;

(b) safeguard the consumer interest and at the same time recovery of cost of transportation in areasonable manner;

(c) the principles rewarding efficiency in performance;

(d) the connected infrastructure such as compressors, pumps, metering units, storage and the likeconnected to the common carriers or contract carriers;

(e) benchmarking against a reference tariff calculated based on cost of service, internal rate ofreturn, net present value or alternate mode of transport;

(f) policy of the Central Government applicable to common carrier, contract carrier and city orlocal distribution natural gas network.

If the Board, on an application of an affectedparty or on its own motion, is satisfied that the entity in favour of which authorisation has been grantedunder section 19 has failed to comply with any conditions of authorisation, it may, after giving anopportunity to such entity of being heard, either suspend the authorisation for such period as the Boardmay think fit or cancel the authorisation:

Provided that where the Board is of the opinion that an authorised entity persistently acts in a mannerprejudicial to the interests of consumers, it may take action for the suspension of the authorisationimmediately subject to the opportunity of hearing being given subsequently, after which action so takenmay be confirmed or revoked.

(1) Save as otherwise provided for arbitration in the relevantagreements between entities or between an entity or any other person, as the case may be, if any disputearises, in respect of matters referred to in sub-section (2) among entities or between an entity and anyother person, such dispute shall be decided by a Bench consisting of the Member (Legal) and one or moremembers nominated by the Chairperson:

Provided that if the members of the Bench differ on any point or points, they shall state the point orpoints on which they differ and refer the same to a member other than a member of the Bench for hearingon such point or points and such point or points shall be decided according to the opinion of that member.

(2) The Bench constituted under sub-section (1) shall exercise, on and from the appointed day, allsuch jurisdiction, powers and authority as were exercisable by a civil court on any matter relating to--

(a) refining, processing, storage, transportation and distribution of petroleum, petroleum productsand natural gas by the entities;

(b) marketing and sale of petroleum, petroleum products and natural gas including the quality ofservice and security of supply to the consumers by the entities; and

(c) registration or authorisation issued by the Board under section 15 or section 19.

(3) Notwithstanding anything contained in the Code of Civil Procedure, 1908 (5 of 1908), the Boardshall have the power to decide matters referred to in sub-section (2) on or after the appointed day.

(1) A complaint may be filed before the Board by any person in respectof matters relating to entities or between entities on any matter arising out of the provisions of this Act:

Provided that the complaints of individual consumers maintainable before a consumer disputesredressal forum under the Consumer Protection Act, 1986 (68 of 1986) shall not be taken up by the Boardbut shall be heard and disposed of by such forum.

Explanation. -- For the purposes of this sub-section, the expression "consumer disputes redressalforum" shall mean the district forum, State Commission or, the National Commission, as the case may be,constituted under the provisions of the Consumer Protection Act, 1986 (68 of 1986).

(2) Every complaint made under sub-section (1) shall be filed within sixty days from the date onwhich any act or conduct constituting a contravention took place and shall be in such form and shall beaccompanied by such fee as may be provided by regulations:

Provided that the Board may entertain a complaint after the expiry of the said period if it is satisfiedthat there was sufficient cause for not filing the complaint within that period.

(3) On receipt of a complaint under sub-section (1), the Board shall decide within thirty days whetherthere is a prima facie case against the entity or entities concerned and may either conduct enquiry on itsown or refer the matter for investigation under this Chapter, to an Investigating Officer havingjurisdiction; and, where the matter is referred to such Investigating Officer, on receipt of a report fromsuch Investigating Officer, the Board may, hear and dispose of the complaint as a dispute if it falls undersub-section (2) of section 27 and in any other case, it may pass such orders and issue such directions as itdeems fit.

(4) Where the Central Government considers that a matter arising out of the provisions of this Act isrequired to be investigated, it shall make a reference to the Board and the provisions of this Act shallapply as if such reference were a complaint made to the Board.

(1) For the purposes of provisions of section 25, the Board shall, subjectto the provisions of sub-section (3), appoint by general or special order, an officer of the Board as anInvestigating Officer for holding an investigation in the manner provided by regulations:

Provided that where the Board considers it necessary that the matter should be investigated by anyinvestigating agency of the State or Central Government including the special police force constitutedunder section 2 of the Delhi Special Police Establishment Act, 1946 (25 of 1946), the Board may requestthe concerned Government for directing or authorising such agency to investigate and the agency sodirected or authorised shall, then, be competent to exercise the powers and to discharge the duties of anInvestigating Officer under this Act.

(2) No person shall be appointed as an Investigating Officer unless he possesses such qualificationsand experience as may be determined by the Board by regulations.

(3) Where more than one Investigating Officer is appointed, the Board shall specify, by order, thematters and the local limits of jurisdiction with respect to which each such officer shall exercise hisjurisdiction.

The Board shall, while deciding a disputeunder this Chapter, have due regard to the provisions of this Act and to the following factors, namely:--

(a) the amount of disproportionate gain made or unfair advantage derived, wherever quantifiable,as a result of the default;

(b) the amount of loss caused to an entity as a result of the default;

(c) the repetitive nature of the default.

In case any complaint isfiled before the Board by any person or if the Board is satisfied that any person has contravened adirection issued by the Board under this Act to provide access to, or to adhere to the transportation rate inrespect of a common carrier, or to display maximum retail price at retail outlets, or violates the terms and conditions subject to which registration or authorisation has been granted under section 15 or section 19or the retail service obligations or marketing service obligations, or does not furnish information,document, return of report required by the Board, it may, after giving such person an opportunity of beingheard in the matter, by order in writing, direct that, without prejudice to any other penalty to which hemay be liable under this Act, such person shall pay, by way of civil penalty an amount which shall notexceed one crore rupees for each contravention and in case of a continuing failure with additional penaltywhich may extend to ten lakh rupees for every day during which the failure continues after contraventionof the first such direction:

Provided that in the case of a complaint on restrictive trade practice, the amount of civil penalty mayextend to five times the unfair gains made by the entity or ten crore rupees, whichever is higher.

Every order made by the Board under thisAct shall, on a certificate issued by an officer of the Board, shall be executable in the same manner as if itwere a decree of a civil court:

Provided that where an appeal lies against an order of the Board and no appeal is preferred then theorder of the Board shall be deemed to be a final decree under this section on the expiry of the periodallowed for preferring an appeal against such order before the Appellate Tribunal.

(1) Subject to the provisions of this Act, the Appellate Tribunalestablished under section 110 of the Electricity Act, 2003 (36 of 2003) shall be the Appellate Tribunal forthe purposes of this Act and the said Appellate Tribunal shall exercise the jurisdiction, powers andauthority conferred on it by or under this Act:

Provided that the Technical Member of the Appellate Tribunal for the purposes of this Act shall becalled the Technical Member (Petroleum and Natural Gas) and shall have the qualifications specified insub-section (2) of section 31.

(2) Notwithstanding anything contained in the Electricity Act, 2003 (36 of 2003), the CentralGovernment may, for the purposes of this Act, appoint one or more Technical Members (Petroleum andNatural Gas) on the Appellate Tribunal for Electricity or designate a Technical Member of the saidTribunal having the qualifications specified in sub-section (2) of section 31 and when a TechnicalMember (Petroleum and Natural Gas) is appointed, he shall be in addition to the three other membersappointed under the said Act.

(1) The Technical Member (Petroleum andNatural Gas) shall be appointed from the panel prepared by the Search Committee constituted under subsection(2) of section 4.

(2) A person shall not be qualified for appointment as a Technical Member (Petroleum and NaturalGas) of the Appellate Tribunal unless he--

(i) is, or has been, a Secretary for at least one year in the Ministry or Department of the CentralGovernment having adequate experience in energy sector, especially in matters relating to Petroleumand Natural Gas sector; or

(ii) is, or has been, a person of ability and standing, having adequate knowledge or experience indealing with matters relating to exploration, production, transmission pipelines, marketing orregulation of petroleum, petroleum products or natural gas, economics, commerce, law ormanagement.

Theterm of office, the salaries and allowances payable to and the other terms and conditions of service of theTechnical Member (Petroleum and Natural Gas) shall be the same as applicable to the other members ofthe Appellate Tribunal.

(1) Any person aggrieved by an order or decision made by theBoard under this Act may prefer an appeal to the Appellate Tribunal:

Provided that any person preferring an appeal against an order or decision of the Board levying anypenalty shall, while filing the appeal, deposit the amount of such penalty:

Provided further that where in any particular case, the Appellate Tribunal is of the opinion thatdeposit of such penalty would cause undue hardship to such person, it may dispense with such depositsubject to such conditions as it may deem fit to impose so as to safeguard the realisation of penalty.

(2) Every appeal under sub-section (1) shall be filed within a period of thirty days from the date onwhich a copy of the direction or order of decision made by the Board is received by the aggrieved personand it shall be in such form, verified in such manner and be accompanied by such fee as may beprescribed:

Provided that the Appellate Tribunal may entertain an appeal after the expiry of the said period ofthirty days if it is satisfied that there was sufficient cause for not filing it within that period.

(3) On receipt of an appeal under sub-section (1), the Appellate Tribunal may, after giving the partiesan opportunity of being heard, pass such orders thereon as it thinks fit.

(4) The Appellate Tribunal shall send a copy of every order made by it to the parties to the appeal andto the Board.

(5) The appeal filed under sub-section (1) shall be dealt with by the Appellate Tribunal asexpeditiously as possible and endeavor shall be made by it to dispose of the appeal finally within ninetydays from the date of receipt of appeal:

Provided that where any such appeal could not be disposed of within the said period of ninety days,the Appellate Tribunal shall record its reasons in writing for not disposing of the appeal within the saidperiod.

(6) The Appellate Tribunal may, for the purpose of examining the legality or propriety or correctnessof any order or decision of the Board referred to in the appeal filed under sub-section (1), either on itsown motion or otherwise, call for the records relevant to disposing of such appeal and make such ordersas it thinks fit.

The provisions of sections 120 to 124(both inclusive) of the Electricity Act, 2003 (36 of 2003) shall mutatis mutandis apply to the AppellateTribunal in the discharge of its functions under this Act as they apply to it in the discharge of its functionsunder the Electricity Act, 2003.

The Appellate Tribunal may, by notification,make rules consistent with the provisions of this Act as to the conduct and procedure in respect of allproceedings before it under this Act.

(1) Every order made bythe Appellate Tribunal under this Act shall be executable by the Appellate Tribunal as a decree of a civilcourt, and for this purpose, the Appellate Tribunal shall have all the powers of a civil court.

(2) Notwithstanding anything contained in sub-section (1), the Appellate Tribunal may transmit anyorder made by it to a civil court having jurisdiction and such civil court shall execute the order as if itwere a decree made by that court.

(1) Notwithstanding anything contained in the Code of CivilProcedure, 1908 (5 of 1908) or in any other law, an appeal shall lie against any order, not being aninterlocutory order, of the Appellate Tribunal to the Supreme Court on one or more of the groundsspecified in section 100 of that Code.

(2) No appeal shall lie against any decision or order made by the Appellate Tribunal with the consentof the parties.

(3) Every appeal under this section shall be preferred within a period of ninety days from the date ofthe decision or order appealed against:

Provided that the Supreme Court may entertain the appeal after the expiry of the said period of ninetydays, if it is satisfied that the appellant was prevented by sufficient cause from preferring the appeal intime.

The Central Government may, after due appropriation madeby Parliament by law in this behalf, make to the Board grants of such sums of money as are required topay salaries and allowances payable to the Chairperson and the other members and the administrativeexpenses including the salaries, allowances and pensions payable to the officers and employees of theBoard.

(1) There shall be constituted a Fund to be called the Petroleum and Natural GasRegulatory Board Fund and there shall be credited thereto--

(i) all grants, fees, penalties and charges received by the Board under this Act;

(ii) all sums received by the Board from such other sources as may be approved by the CentralGovernment.

(2) The Fund shall be applied for making payments towards--

(i) the salaries and allowances payable to the Chairperson and other members and theadministrative expenses including the salaries, allowances and pensions payable to the officers andemployees of the Board;

(ii) the expenses incurred or to be incurred in carrying out the provisions of this Act.

(3) The Central Government shall--

(i) constitute a committee consisting of such persons as it thinks fit to recommend to thatGovernment the budgetary requirements of the Board for salaries, allowances and all other expenses;and

(ii) fix the budgetary ceiling of the Board on the basis of the recommendations of the committee.

(1) The Board shall maintain proper accounts and other relevant recordsand prepare an annual statement of accounts in such form as may be prescribed by the CentralGovernment in consultation with the Comptroller and Auditor-General of India.

(2) The accounts of the Board shall be audited by the Comptroller and Auditor-General of India atsuch intervals as may be specified by him and any expenditure incurred in connection with such auditshall be payable by the Board to the Comptroller and Auditor-General of India.

Explanation.--For the removal of doubts, it is hereby declared that the decisions of the Board takenin the discharge of its functions under this Act, being matters appealable to the Appellate Tribunal, shallnot be subject to audit under this section.

(3) The Comptroller and Auditor-General of India or any other person appointed by him inconnection with the audit of the accounts of the Board shall have the same rights and privileges andauthority in connection with the audit of the Government accounts and, in particular, shall have the rightto demand the production of books, accounts, connected vouchers and other documents and papers andinspection of offices of the Board.

(4) The accounts of the Board as certified by the Comptroller and Auditor-General of India or anyother person appointed by him in this behalf together with the audit report thereon shall be forwardedannually to the Central Government and that Government shall cause the same to be laid before eachHouse of Parliament.

(1) The Board shall prepare once every yearin such form and at such time as may be prescribed, an annual report giving a summary of its activitiesincluding information relating to the proceedings and policies during the previous years and such reportshall also contain statements of annual accounts of the Board.

(2) A copy of the report shall be forwarded to the Central Government and the Central Governmentshall cause such report to be laid, as soon as may be after it is received, before each House of Parliament.

(1) The Central Government may, fromtime to time, by writing issue to the Board such directions as it may think necessary in the interest of thesovereignty and integrity of India, the security of the State, friendly relations with foreign States or publicorder.

(2) Without prejudice to the foregoing provision, the Central Government may, if it finds necessary orexpedient so to do in public interest or for maintaining or increasing supplies of petroleum, petroleumproducts or natural gas or all or any of them or for securing their equitable distribution and ensuringadequate availability, issue policy directives to the Board in writing and such policy directives shall bebinding upon the Board:

Provided that no such directive shall relate to any day-to-day affairs of the Board:

Provided further that the Board shall, as far as practicable, be given an opportunity of expressing itsviews before any directive is issued under this sub-section.

(3) The decision of the Central Government whether a question is one of policy or not shall be final.

(1) In the event of war or natural calamity or such other similarcircumstances leading to disruption of supply of petroleum, petroleum products or natural gas, the CentralGovernment may, for ensuring the continuous supply of petroleum, petroleum products or natural gas, bynotification, either take over the control and management of any storage site, facilities and businesspremises of any entity and retail outlets or suspend its operations or entrust, to any agency of the Centralor State Government for such time and manage it in such manner, as may be specified in that notification:

Provided that the affected entities shall be given an opportunity of being heard before issuing ordersto take over the control and management of retail outlets and other business premises:

Provided further that in case of any urgency or in cases where the circumstances do not permitserving of notice for want of sufficient time or otherwise upon the entity against whom the order isdirected, the opportunity of hearing may be dispensed with in public interest in order to maintain theuninterrupted supply of petroleum, petroleum products or natural gas for a specified period.

(2) The collector of the revenue district in which the property referred to in the notification issuedunder sub-section (1) is situated shall determine the amount of compensation payable for taking over ofthe property.

(3) The form and manner in which an application for claiming compensation under this section shallbe made, the procedure for determining the compensation and the time within which such compensationshall be payable, shall be such as may be prescribed.

If a person contravenes thedirections of the Board, such person shall be punishable with fine which may extend to twenty-five crorerupees and in case of continuing contravention with additional fine which may extend to ten lakh rupeesfor every day during which the contravention continues.

If any personwillfully fails to comply with the order of the Appellate Tribunal, he shall be punishable with fine whichmay extend to one crore rupees and in case of a second or subsequent offence with fine which may extendto two crore rupees and in the case of continuing contravention with additional fine which may extend totwenty lakh rupees for every day during which such default continues.

If any person, being an entity, markets any notifiedpetroleum, petroleum products or natural gas without a valid registration, or authorisation such personshall be punishable with imprisonment which may extend to three years or with fine which may extend totwenty-five crore rupees or with both, and in case of continuing contravention with additional fine whichmay extend to ten lakh rupees for every day during which the contravention continues.

If a person establishes or operates a liquefied natural gas terminal without registration asrequired under section 15, such person shall be liable for punishment with an imprisonment for a termwhich may extend to three years or penalty of twenty-five crore rupees or with both, and in case ofcontinuing contravention with additional fine which may extend to ten lakh rupees for every day duringwhich the contravention continues.

If a person lays, builds, operates or expands a common carrier orcontract carrier or a city or local natural gas distribution network without obtaining authorisation requiredunder section 19, such person shall be liable for punishment with an imprisonment for a term which mayextend to three years or penalty of twenty-five crore rupees or with both, and in case of continuingcontravention with additional fine which may extend to ten lakh rupees for every day during which thecontravention continues.

Every person whowillfully removes, destroys or damages any pipeline or city or local natural gas distribution network orother work of the common carrier or contract carrier for supplying petroleum, petroleum products ornatural gas shall for each such offence be punishable with imprisonment which may extend to three yearsor with fine which may extend to twenty-five crore rupees or with both, and, in case of continuingcontravention with additional fine which may extend to ten lakh rupees for every day during which suchcontravention continues.

(1) Where an offence under this Act has been committed by acompany, every person who at the time the offence was committed was in charge of, and was responsibleto, the company for the conduct of the business of the company, as well as the company, shall be deemedto be guilty of the offence and shall be liable to be proceeded against and punished accordingly:

Provided that nothing contained in this sub-section shall render any such person liable to anypunishment provided in this Act, if he proves that the offence was committed without his knowledge orthat he has exercised all due diligence to prevent the commission of such offence.

(2) Notwithstanding anything contained in sub-section (1), where an offence under this Act has beencommitted by a company and it is proved `that the offence has been committed with the consent orconnivance of, or is attributable to, any neglect on the part of any director, manager, secretary or otherofficer of the company, such director, manager, secretary or other officer shall also be deemed to be guiltyof the offence and shall be liable to be proceeded against and punished accordingly.

Explanation.--For the purpose of this section,--

(a) "company" means any body corporate and includes a firm or other association of individuals;and

(b) "director", in relation to a firm, means a partner in the firm.

(1) The Board shall maintain a data bank andinformation system relating to activities of entities dealing with petroleum, petroleum products andnatural gas in such form and manner as may be provided by regulations.

(2) The Board shall have power to verify the data supplied by the entities and appoint any person orpersons for the purpose and take such measures as it may consider necessary.

(1) Every entity shall--

(a) maintain such documentary records as may be specified by the Board by regulations;

(b) allow inspection of such facilities and documentary records, as may be specified by the Board,by any person authorised by the Board;

(c) commence operation of activities for which authorisation has been granted within such periodas may be specified by the Board in the document of authorisation;

(d) register--

(i) agreements with the Board relating to use of pipelines for supply of petroleum, petroleumproducts and natural gas; or

(ii) any other document which the Board may determine by regulations;

(e) comply with marketing service obligations and retail service obligations.

(2) The Board may call for any information from any entity including information which isconsidered necessary for ensuring transparency or ascertaining true ownership of the entity.

(3) The Board or any officer authorised by the Board shall have the power to inspect and obtaininformation, wherever necessary, from the entities.

(4) For the effective enforcement of the terms and conditions of authorisation, the Board or anyofficer authorised by it for that purpose, shall have all the powers of an inspecting officer as providedunder section 209A of the Companies Act, 1956 (1 of 1956).

(5) It shall be the duty of every entity to carry out the directions of the Board given under this section.

(6) The Board shall maintain confidentiality in respect of any information and record received by itfrom the entities and shall not disclose information contained therein to any person or authority except onthe grounds of public interest.

The Board shall furnish to the CentralGovernment at such time and in such form and manner as may be prescribed or as the CentralGovernment may direct, such returns and statements and such particulars in regard to any matter inconnection with proposed or existing activities under this Act, as the Central Government may, from timeto time, require.

The Chairperson, Members, Officers andother employees of the Board and Technical Member (Petroleum and Natural Gas) of the AppellateTribunal shall be deemed, when acting or purporting to act in pursuance of any of the provisions of thisAct, to be public servants within the meaning of section 21 of the Indian Penal Code (45 of 1860).

No suit, prosecution or other legal proceeding shalllie against the Central Government, Board, Technical Authority or Appellate Tribunal or any officer ofthe Central Government or any Chairperson, Member, officer or other employee of the Board orTechnical Member (Petroleum and Natural Gas) of the Appellate Tribunal for anything which is in goodfaith done or intended to be done under this Act or the rules or regulations made thereunder.

No civil court shall have jurisdiction to entertain any suitor proceeding in respect of any matter which the Board or the Appellate Tribunal is empowered by orunder this Act to determine, and no injunction shall be granted by any court or other authority in respectof any action taken or to be taken in pursuance of any power conferred by or under this Act.

(1) No court shall take cognizance of any offence punishableunder Chapter IX save on a complaint made by the Board or by any investigating agency directed by theCentral Government.

(2) No court inferior to that of a Chief Metropolitan Magistrate or of a Chief Judicial Magistrate shalltry any offence punishable under Chapter IX.

(3) Every offence punishable under sections 44, 45, 46 and 47 shall be cognizable.

The Board may, by general or special order in writing, delegate to any member orofficer of the Board subject to such conditions, if any, as may be specified in the order, such of its powersand functions under this Act (except the power to settle a dispute under Chapter VI and to makeregulations under section 61), as it may deem necessary.

(1) If any difficulty arises in giving effect to the provisions ofthis Act, the Central Government may, by order, published in the Official Gazette, make such provisionsnot inconsistent with the provisions of this Act as it may deem necessary for removing the difficulty:

Provided that no order shall be made under this section after the expiry of two years from the date ofcommencement of this Act.

(2) Every order made under this section shall be laid, as soon as may be after it is made, before eachHouse of Parliament.

(1) The Central Government may, bynotification, make rules for carrying out the provisions of this Act.

(2) In particular, and without prejudice to the generality of the foregoing power, such rules mayprovide for all or any of the following matters, namely:--

(a) the salaries and allowances payable to and the other conditions of service of the Chairpersonand the other members under sub-section (4) of section 5;

(b) the procedure for appointment of any person or constitution of any authority and conductinginquiry under section 7;

(c) the salaries and allowances payable to and the other terms and conditions of service of theSecretary, officers and other employees of the Board, under sub-section (3) of section 10;

(d) any other matter in respect of which the Board may exercise the powers of a civil court underclause (i) of sub-section (1) of section 13;

(e) the eligibility conditions which an entity shall fulfill for registration under sub-section (1) ofsection 15;

(f) the form of appeal and the manner of verifying such form, and the fee which shall accompanysuch form, under sub-section (2) of section 33;

(g) the manner in which the accounts of the Board shall be maintained under sub-section (1) ofsection 40;

(h) the time and manner in which the annual report of the Board shall be prepared undersub-section (1) of section 41;

(i) the form and manner in which applications for claiming compensation shall be made, theprocedure for determining the compensation and the time within which such compensation shall bepayable, under sub-section (3) of section 43;

(j) the time and manner in which returns and statements are to be furnished by the Board to theCentral Government under section 53;

(k) any other matter which is to be, or may be, prescribed, or in respect of which provision is tobe made, by rules.

(1) The Board may, by notification, make regulationsconsistent with this Act and the rules made thereunder to carry out the provisions of this Act.

(2) In particular, and without prejudice to the generality of the foregoing power, such regulations mayprovide for all or any of the following matters, namely:--

(a) the time and places of meetings of the Board and the procedure (including quorum necessaryfor the transaction of business) to be followed at such meetings under sub-section (1) of section 8;

(b) the powers and duties of the Secretary under sub-section (1) of section 10;

(c) the terms and conditions of the consultants appointed under sub-section (4) of section 10;

(d) the capacity of storage facilities for petroleum, petroleum products or natural gas requiringregistration under sub-clause (iii) of clause (b) of section 11;

(e) regulating open access to and transportation rate for the common carrier or contract carrier orcity or local natural gas distribution network and other matters referred to in clause (e) of section 11;

(f) marketing service obligations for entities and retail service obligations for retail outlets undersub-clause (v) of clause (f) of section 11;

(g) levy of fees and other charges under clause (g) of section 11;

(h) the technical standards and specifications including safety standards in activities relating topetroleum, petroleum products and natural gas under clause (i) of section 11;

(i) the procedure to be followed by the Board including the places at which it shall conduct itsbusiness under sub-section (3) of section 13;

(j) the manner of maintaining the Petroleum and Natural Gas Register under sub-section (1) ofsection 14;

(k) the form and manner of making application for obtaining certified copy of any entry in theregister and the fee which shall accompany such application, under sub-section (4) of section 14;

(l) the form and manner in which an application under sub-section (1) of section 15 shall be madeand the fee which shall accompany such application under sub-section (2) of section 15;

(m) the manner by which a certificate of registration granted under sub-section (3) of section 15may be suspended or cancelled under sub-section (4) of section 15;

(n) the form and manner in which an application under sub-section (1) or sub-section (2) ofsection 17 shall be made and the fee which shall accompany such application under sub-section (3) ofsection 17;

(o) the form and manner in which publicity of acceptance of applications for registration shall bemade under section 18;

(p) the manner of selection of an entity under sub-section (2) of section 19;

(q) the principles for determining the number of years for which a city or local natural gasdistribution network shall be excluded from the purview of a common carrier or contract carrier undersub-section (4) of section 20;

(r) the guiding principles to be followed by the Board and the objectives for declaring, orauthorising to lay, build, operate or expand a common carrier or contract carrier for declaring, orauthorising to lay, build, operate or expand a city or local natural gas distribution network, undersub-section (5) of section 20;

(s) the affiliate code of conduct under which the entities are required to comply with under theproviso to sub-section (1) of section 21;

(t) the transportation tariffs for common carriers or contract carriers or city or local natural gasdistribution network and the manner of determining such tariffs under sub-section (1) of section 22;

(u) the form in which a complaint may be made and the fee which shall accompany suchcomplaint, under sub-section (2) of section 25;

(v) the manner of holding an investigation by an Investigating Officer under sub-section (1) ofsection 26;

(w) the qualifications and experience which any person for appointment as an InvestigatingOfficer shall possess, under sub-section (2) of section 26;

(x) the form and manner of maintaining data bank and information system by the Board undersub-section (1) of section 51;

(y) maintenance of documentary records by an entity, under clause (a) of sub-section (1) ofsection 52;

(z) any other type of documents which are to be registered with the Board under sub-clause (ii) ofclause (d) of sub-section (1) of section 52;

(za) any other matter which is required to be, or may be, specified by regulations or in respect ofwhich provision is to be or may be made by regulations.

Every rule made by the CentralGovernment and every regulation made by the Board under this Act shall be laid, as soon as may be afterit is made, before each House of Parliament, while it is in session, for a total period of thirty days whichmay be comprised in one session or in two or more successive sessions, and if, before the expiry of thesession immediately following the session or the successive sessions aforesaid, both Houses agree inmaking any modification in the rule or regulation or both Houses agree that the rule or regulation shouldnot be made, the rule or regulation shall thereafter have effect only in such modified form or be of noeffect, as the case may be; so, however, that any such modification or annulment shall be withoutprejudice to the validity of anything previously done under that rule or regulation.

(1) Where, before the commencement of this Act, an agreementor agreements have been entered into between one oil company and another for the purpose of sharing ofpetroleum products or sharing of infrastructure facilities among the oil companies and such agreementshave been approved by the Central Government, the Board may monitor the implementation of suchagreements for the transition period.

(2) The Board shall monitor setting up of dealerships and distributorships of motor spirit, high speeddiesel, superior kerosene oil, liquefied petroleum gas and CNG stations for natural gas during transitionperiod by the entities without encroaching on the retail network of the existing entities.

Explanation I.--For the purposes of this section, the expression "transition period" shall mean aperiod of three years from the date of commencement of this Act.

Explanation II.--For the purposes of this section, "infrastructure facilities" shall mean facilities atports, refineries, terminals, depots and aviation fuelling stations including hydrant lines and shall includeloading and unloading facilities.

Explanation III.--For the purposes of this section "encroaching" includes taking over of retail outletof one entity by another.