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Core Purpose

Regulations by the Petroleum and Natural Gas Regulatory Board further amending the Petroleum and Natural Gas Regulatory Board (Determination of Natural Gas Pipeline Tariff) Regulations, 2008.

Detailed Summary

Issued by the Petroleum and Natural Gas Regulatory Board (PNGRB) on 10th April 2024 (PNGRB/Com/13-Reg(1)/2023 (E-4676)), in exercise of powers under clause (t) of sub-section (2) of section 61 and clause (e) of section 11 of the Petroleum and Natural Gas Regulatory Board Act, 2006 (19 of 2006), the Board made the Petroleum and Natural Gas Regulatory Board (Determination of Natural Gas Pipeline Tariff) Amendment Regulations, 2024, effective from the date of publication. The amendments to the 2008 Regulations include: inserting a provision in regulation 2(1) clarifying that where a pipeline network is used more than once under a Unified Contractual Path, separate confirmation and capacity booking with the applicable zonal unified tariff is required for each use; inserting a new definition of "Unified Tariff Path" as clause (o) after clause (n) of regulation 2(1); clarifying in Schedule A that "applicable transmission charges" include natural gas pipeline tariff not recovered due to transmission loss; amending Schedule B to allow the Board to set alternative percentages for tariff zone allocation instead of the fixed 75% figure; and extensively revising Schedule D (the Settlement Mechanism), including removing the word "DRAFT" from its heading, renumbering multiple sub-paragraphs, extending several procedural timelines (e.g., data submission from 5 to 8 working days, industry committee response from 1 to 2 working days, payment completion from 2 to 4 working days), replacing the "four months" post-implementation transition period with "nine months or such period as may be mutually agreed by Settlement Committee", and adding a provision entitling deficit amounts to interest at the Reserve Bank of India Repo Rate plus 2% per annum until recouped. The principal regulations were published under G.S.R. 807(E) dated 20th November 2008 and had been amended by numerous prior notifications between 2010 and 2023. The notification is signed by Vandana Sharma, Secretary.

Full Text

REGD. No. D. L.-33004/99 The Gazette of India CG-DL-E-15042024-253720 EXTRAORDINARY PART III—Section 4 PUBLISHED BY AUTHORITY No. 254] NEW DELHI, MONDAY, APRIL 15, 2024/CHAITRA 26, 1946 PETROLEUM AND NATURAL GAS REGULATORY BOARD NOTIFICATION New Delhi, the 10th April, 2024 PNGRB/Com/13-Reg (1)/2023 (E-4676).—In exercise of the power conferred by clause (t) of sub-section (2) of section 61 and power conferred under clause (e) of section 11 of the Petroleum and Natural Gas Regulatory Board Act, 2006 (19 of 2006), the Petroleum and Natural Gas Regulatory Board hereby makes the following regulations further to amend the Petroleum and Natural Gas Regulatory Board (Determination of Natural Gas Pipeline Tariff) Regulations, 2008, namely: 1. Short title and commencement. (1) These regulations may be called the Petroleum and Natural Gas Regulatory Board (Determination of Natural Gas Pipeline Tariff) Amendment Regulations, 2024. (2) They shall come into force on the date of their publication in the Official Gazette. 2. In the Petroleum and Natural Gas Regulatory Board (Determination of Natural Gas Pipeline Tariff) Regulations, 2008, (1) In sub-regulation (1) of regulation 2; (a) after the proviso of clause (1), at the end the following shall be inserted, namely:— "Notwithstanding anything contained in these regulations, in case on a unified contractual path, the network of any pipeline is used more than once for transporting gas through NGGS, then for such cases, separate unified contractual path will need to be confirmed by the shipper for each usage of the same network. Accordingly, capacity booking shall be done, and applicable zonal unified tariff shall be applied for each case." (b) After clause (n), following clause shall be inserted, namely: - "(o) "Unified Tariff Path" means the path along the NGGS starting from Unified Entry Point and ending in the Unified Tariff Zone where in Unified Exit points falls for the underlying Unified Contractual Path for which capacity is booked. Unified Tariff Path identifies the following: i) pipeline networks which falls on the respective Unified Tariff Path; ii) the applicable tariff for tariff zones for unified tariff; and iii) share of each transporter on such Unified Tariff Path." (2) In clause (d) of sub-para (2) of para 5 of Schedule A, before the first proviso, the following clarification shall be inserted, namely: - "Clarification: The 'applicable transmission charges' referred above also includes the natural gas pipeline tariff not recovered due to transmission loss." (3) In clause (ii) under the head "Notes", of para (6) of Part A of Schedule B, after the words "....... second tariff zone shall be 75% of the tariff for third tariff zone for unified tariff" the following shall be inserted namely: "Notwithstanding anything contained in this clause, the Board may decide any other percentage or basis other than percentage as mentioned above." (4) In Schedule D: - (a) After the words, "{See Regulation 2(1)(ha)}" and before the words “SETTLEMENT MECHANISM", the word "DRAFT" shall be omitted. (b) In definition clause, the numbers "1.2", shall be renumbered as "2.1". (c) After the definition clause, the head "SETTLEMENT MECHANISM", shall be renumbered as "3.”, and sub-head "Settlement Committee" shall be also be renumbered as "3.1." and so on. (d) In clause (j) of sub-para 1.2 [renumbered as 2.1 by these amendment regulation] of para (2), after the words "NGGS from the source......" and before the words "......for further transportation.", the words "or interconnection point" shall be inserted. (e) In sub-clause (i) of clause (b) of sub-para 2.1 [renumbered as 3.1 by these amendment regulation] of para 2 [renumbered as (3) by these amendment regulation], the words "and not later than every 15 (fifteen) days." shall be replaced by the words "as may be required." (f) In clause 2.4 [renumbered as 3.4 by these amendment regulation] of para 2 [renumbered as (3) by these amendment regulation], after the words “Without prejudice to the above, the....." and before the word ".....entities shall provide the", the words “Settlement Committee after collecting the data from all", shall be inserted. Further, after the words "following financial year...." the words "with Board by the first" shall be replaced with the words “to the Board by the third”. (g) In clause 2.5 [renumbered as 3.5 by these amendment regulation] of para 2 [renumbered as (3) by these amendment regulation] ; i. At the beginning the words "The Board would share the required UFT working with" shall be omitted; ii. The words "forecasted data" shall be substituted by the words "data submitted by all entities"; iii. The numeric and words "3.3 for UFT Ratio working by 31st January of every year" shall be substituted with the words "3.4, submit the detailed working to the Board by third week of January every year."; iv. After the words "The Settlement Committee shall calculate the UFT......" and before the words "......along with details of" the word "ratio" shall be replaced with the word "ratios"; v. After the words "an improved IT tool shall be developed and used for arriving at the final UFT......." the words "The expenses on account of development/operations pertaining to IT system shall be equally shared by all the members of the industry committee." shall be inserted. (h) In clause 2.7 [renumbered as 3.7 by these amendment regulation] of para 2 [renumbered as (3) by these amendment regulation], after the words "data on or before T+......" and before the words "......Working Days to the Settlement” the numeric “5” shall be substituted by “8”. (i) In clause 2.8 [renumbered as 3.8 by these amendment regulation] of para 2 [renumbered as (3) by these amendment regulation]; i. After the words "Industry Committee within...." and before the words “Working Day i.e. by......", the word "one" shall be replaced by "two"; ii. After the words "Working Day i.e. by T+....." and before the words ".....Working Days, for" the numeric "6" shall be substituted by "10"; and iii. After the words "complete the payment within....." and before the words "......Working Days from" the word “two” shall be substituted by "four". iv. In sub-clause a), after the words "data submitted by individual entities....." and before the words ".....All the entities shall” the words "and in case of any delay in submission of data by any entity, the data submitted by such delaying entity in previous fortnight shall be considered on a provisional basis and necessary adjustment shall be made in the following fortnight" shall be omitted. v. In sub-clause d), after the words “In case there is a delay beyond...." and before the words ".....Working Days, as provided above" the numeric “2” shall be replaced with "4". Further, after the words “compensated for the same on... ." and before the words "....Working day, from the date of receipt" the numeric and words “3rd” shall be substituted with “5th”. vi. In sub-clause e), after the words "For the first....." and before the words ".....from the date of implementation of this" the words "four months" shall be substituted with "nine months or such period as may be mutually agreed by Settlement Committee". vii. In sub-clause Point f), after the words "Post the period of the first...." and before the words "....., any delays or defaults by the Shipper," the words "four months" shall be substituted by the words "nine months or such period as may be mutually agreed by Settlement Committee,". (j) In sub-clause (f) of clause 2.10 [renumbered as 3.10 by these amendment regulation] of para 2 [renumbered as (3) by these amendment regulation], at the end, the following proviso shall be inserted namely:- "Provided that the deficit amount shall be entitled to be compensated with interest @ Repo Rate of Reserve Bank of India + 2% per annum from the date of deficit amount determined by the settlement committee till the amount is recouped. Such interest on deficit amount can be included in the revenue entitlement of the respective entity of the Industry Committee." (k) In clause 2.12 [renumbered as 3.12 by these amendment regulation] of para 2 [renumbered as (3) by these amendment regulation]; i. In sub-clause (b), after the words “timelines except as provided in paragraph...." and before the word ".... above.", the numeric “3.7" shall be replaced with "3.8"; and ii. After sub-clause (b), the following sub-clause shall be inserted, namely: - "c) Expenses pertaining to working of Settlement/Industry Committee as may be approved by the settlement committee shall be equally shared by all the members of the industry committee." VANDANA SHARMA, Secy. [ADVT.-III/4/Exty./023/2024-25] Foot Note: Principal regulation were published in the Gazette of India (Extraordinary) under No. G.S.R.807(E), dated the 20th November, 2008 and amended vide G.S.R. 986(E), dated 20th December, 2010 and, F. No. PNGRB/M(C)/11/Final Tariff Filing, dated 30th May, 2012 and, PS/Secy./M(C)/2012, dated 13th September, 2012. and, F. No. PNGRB/M(C)/48, dated 17th February, 2014 and, F. No. PNGRB/M(C)/100, dated 27th February, 2014 and, F. No. L-MISC/VI/I/20017, dated 01st January, 2015 and, PNGRB/M(C)/110, dated 08th January, 2016, PNGRB/COM/2-NGPL Tariff (3)/2019, dated 27th May, 2019, and F. No. PNGRB/COM/2-NGPL/Tariff (3)/2019 Vol-II, dated 27th March, 2020 and F. No. PNGRB/COM/2-NGPL/Tariff (3)/2014 Vol-IV(Part-1) (P-1439) dated 23rd November, 2020 and F. No. PNGRB/COM/2-NGPL/Tariff (3)/2014 Vol-IV(Part-1) (P-1439) dated 23rd November, 2020, PNGRB/COM/2-NGPL/Tariff (3) /2019 Vol-IV (P-4121) dated 17th November, 2022, PNGRB/COM/2- NGPL/Tariff (3) /2019 Vol-IV (P-4121) dated 18th November, 2022 and PNGRB/Com/10-NGPL Tariff (11)/2022 (P-4142) dated 29th March, 2023. Uploaded by Dte. of Printing at Government of India Press, Ring Road, Mayapuri, New Delhi-110064 and Published by the Controller of Publications, Delhi-110054.

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