In exercise of the powers conferred by section 61 of the Petroleum and Natural Gas Regulatory Board Act,

EXTRAORDINARY PART III—Section 4 PUBLISHED BY AUTHORITY No. 840] NEW DELHI, TUES DAY , DECEMBER 1 9, 2023/ AGRAHAYANA 28, 1945 CG-DL-E-19122023-250757 PETROLEUM AND NATURAL GAS REGULATORY BOARD NOTIFICATION New Delhi, the 18th Decemb er, 2023 F.No. PNGRB/Auth/3 -PPPL(06)/2022 .—In exercise of the powers conferred by section 61 of the Petroleum and Natural Gas Regulatory Board Act, 2006 (19 of 2006), th e Petroleum and Natural Gas Regulatory Board hereby makes the following regulations, namely: - 1. Short title and commencement, - (1) These regulations may be called the Petroleum and Natural Gas Regulatory Board (Authorizing Entities to Lay, Build, Opera te or Expand Petroleum and Petroleum Products Pipelines) Amendment Regulations, 2023. (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 (Authorizing Entities to Lay, Build, Operate or Expand Petroleum and Petroleum Products Pipelines) Regulations, 2010, - (a) in sub -regulation (1) of regulation 2, - (A) in Clause (f), - (i) after, the words ―from an existing‖, the word ―trunk‖ shall be inserted; (ii) after, the words, ―branch line‖, the words ―or spur line‖ shall be inserted; (iii) after the words ―without increase‖ the words ―authorized‖ shall be inserted; (B) in clause (j), - (i) for the word, ―tonnes‖, at both places, the word ―ton‖ shall respe ctively be substituted; (ii) for the portion beginning with the words ―and for the‖ and ending with the words, ―of the Act‖, the following shall be substituted, namely: - ―including the impact of storage facilities essential for operating a petroleum and pe troleum products pipeline system as common or contract carrier‖ (C) after clause (p), the following shall be added, namely: - ―(q) ―spur -line‖ means a pipeline necessarily originating or branching out from the trunk or another spur line with diameter and c apacity not greater than the trunk pipeline but having no pumping facility for supply of petroleum and petroleum products to one or more consumers. Any pipeline having a separate petroleum and petroleum products source or a pump shall not be treated as a s pur- line. The length of spur -line may not depend upon the length of the trunk pipeline. A spur -line must use the capacity of trunk pipeline in order to transport the petroleum products. Spur line includes branch line also;‖ ―(r) ―tie -in connectivity‖ means the petroleum and petroleum products pipeline connectivity for transport of petroleum and petroleum products between a common carrier or contract carrier petroleum and petroleum products pipeline and any one of the following, namely: - (i) a petroleum and petroleum products source; or (ii) a new injection point from another common carrier or contract carrier petroleum and petroleum products pipeline.‖ (b) in regulation 5, - (A) in sub - regulation (1), for the portion beginning with the words ―issue an ope n‖ and ending with the brackets and words ―(including webhosting) publishing‖, the following shall be substituted, namely: - ―webhost the same at PNGRB’s website giving wide publicity regarding;‖ (B) in sub -regulation (5), - (i) for the portion beginning with the words, ―publish through an‖ and ending with the brackets and words ―newspaper (including webhosting)‖, the word ―webhost‖ shall be substituted; (ii) after the words ―petroleum products pipeline‖, the words and letter ―on PNGRB’s website‖, shall be inserted; (iii) sub-regulation (9) shall be omitted. (c) in regulation 7, - (A) in sub - regulation (1), - (I) in clause (a), - (i) for the words, ―a period of ten years‖, the words, following shall be substituted, namely: - ―each year of the economic l ife of the pipeline starting from its operation‖; (ii) for the words ―The tariff shall be bid for each of the ten years‖ , the words ―The tariff shall be bid for each of the twenty -five years.‖ shall be substituted; (iii) for the word "fifty" the word "f orty" shall be substituted; (II) in Clause (b), - (i) for the words ―a period of ten years‖, the words, ―each year of the economic life of the pipeline starting from its operation‖ shall be substituted; (ii) for the words, ―The tariff shall be bid for each of the ten years‖ the words ―The tariff shall be bid for each of the twenty -five years‖ shall be substituted; (iii) for the word ―twenty‖, the word ―forty‖ shall be substituted; (III) in clause (c), for the word ―thirty‖, the word ―twenty‖ shall be substi tuted; (B) in sub -regulation (3), - (i) for the words ―sub -regulation‖, the words, brackets and figure (1) shall be substituted; (ii) for the word ―volume‖, the words, brackets and letters ―capacity (MMTPA) proposed to be created‖, shall be substituted; (iii) after the letters and words ―DFR of the project‖, the words, brackets and figures, ―like, pipeline length, diameters, spur lines, pumps and other associated facility for petroleum and petroleum products pipeline as defined under clause (i) of sub - regulation (1) of regulation 2‖, shall be inserted; (C) after sub -regulation (4), the following shall be added, namely: - ―(5) Year 1 tariff bids for the petroleum and petroleum products pipeline tariff under clauses (a) to (b) of sub-regulation (1) shall be applicable from 1st year of operation of the pipeline. The pipeline shall be considered operational when its trunk pipeline is fully commissioned. For partially commissioned trunk pipeline, only 1st year tariff shall be applicable till its trunk pipeline is fully commissioned. (6) The Board shall extend the quoted tariff after the economic life of the pipeline for a period equivalent to the time period between the date of grant of authorization and the starting date of operation of the pipeline.‖ ; (d) in regulation 12, - (i) sub-regulation (1) shall be omitted; (ii) for sub -regulation (2), the following shall be substituted, namely: - ―(2) In case it is proposed to expand the capacity of the petroleum and petroleum products pipeline, the entity shall submit a proposal for consideration of the Board and the Board may allow for expansion of the capacity in the petroleum and petroleum products pipeline.‖; (iii) after sub -regulation (2), the following shall be added, namely - ―(3) The provisions regarding expansion of capacity in petroleum and petroleum products pipeline under sub -regulation (2) shall be applicable to all petroleum and petroleum products pipeline either authorized by the Board under regulation 4, 18, 19 or accepted under regulation 17 as au thorized by the Central Government: Provided that the Board may alternatively invite bids in place of such proposed expansion, if it is opined by the Board that invitation of bids shall serve one or more of the following objectives, namely: - (i) promoting competition among entities; (ii) avoiding infructuous investment; (iii) maintaining or increasing supplies or for securing equitable distribution or ensure adequate availability of petroleum and petroleum products throughout the country; (iv) protection o f customers’ interest in terms of availability of petroleum and petroleum products at reasonable petroleum and petroleum products pipeline tariff; (v) incentivizing rapid development of petroleum and petroleum products pipeline infrastructure.”; (e) in regulation 21, - (i) in heading, after the words ―expansion or extension‖, the words, ―or tie -in connectivity or laying of spur-lines‖ shall be inserted; (ii) in sub -regulation (1), - (A) for the words, ―the dispatch terminal -‖, the following shall be inser ted, namely: - ―dispatch terminal, or (v) add a new source by laying Tie -in connectivity, or (vi) lay a spur line – ‖; (B) the first proviso shall be omitted; (C) in the second proviso, for the words ―there shall be no change in pipeline tariff post -extension of pipeline‖ the words, ―that there shall be no change in the tariff due to such effect‖ shall be substituted; (iii) sub-regulation (2), shall be omitted; (iv) for sub -regulation (3), the following shall be substituted, namely: - ―(3) In case i t is proposed to expand the capacity of the pipeline, the entity shall submit a proposal for consideration of the Board in consonance with the provisions of regulation 12 and the Board may, after considering the proposal, allow for expansion of the capacit y in the pipeline without adversely affecting the customers served by the pipeline.‖; (v) after sub -regulation (5), the following shall be added, namely: - ―(6) Extension of a petroleum and petroleum products pipeline: (i) The entity may extend the author ized length of the petroleum and petroleum products pipeline up to ten per cent. or 50 kilometer, whichever is lower, from the point of origin or the end point in the demand centres and shall submit to the Board the full particulars, map of all facilities including justification for the proposal and seek prior authorization from the Board: Provided that in case of any technical constraints, the allowed variation in the originating point of such extension of the petroleum and petroleum products pipeline from the point of origin or the end point shall not exceed beyond the nearest sectionalizing valve (SV) station, but the entity shall be required to provide the detailed justifications for the technical constraints. (ii) The Board, after public consultation, s hall give a decision to the entity within sixty days of the receipt of the request. (iii) There shall be no change in the petroleum and petroleum products pipeline tariff post extension. (7) Tie -in Connectivity: (a) In case of the upstream connectivity re quirement near a common carrier or contract carrier petroleum and petroleum products pipeline, a detailed proposal for the connectivity shall be submitted by the concerned entity to the Board indicating the details of the sources or injection points facili ties, existing petroleum and petroleum products pipeline infrastructure in vicinity and demand -supply projections along with the length and capacity of the proposed tie -in connectivity. (b) The Board shall webhost the proposal for a period of thirty days for initiating the public consultation process seeking views and comments from the stakeholders. (c) Based upon the views and comments received during the public consultation process, the Board may conduct an open house discussion with the stakeholders wh o have provided their views. (d) The Board may authorize such tie -in connectivity as per the following methodology, namely: - (i) Tie-in connectivity shall be preferably constructed by the entity owning the common carrier or contract carrier petroleum and petroleum products pipeline existing near the product source or injection point provided that the length of such tie -in connectivity is twenty per cent. of the authorized length of the common carrier or contract carrier petroleum and petroleum products pi peline subject to a maximum of 200 kilometer: Provided that in case of more than one petroleum and petroleum products pipeline existing near the product source or injection point, the entity owning and operating the common carrier or contract carrier petro leum and petroleum products pipeline nearest to the source shall have first right of refusal for laying tie -in connectivity subsequently in the order of physical proximity; Provided further that in case the entities owning and operating the common carrier or contract carrier petroleum and petroleum products pipeline refuse to lay the said tie -in connectivity, the Board may authorize the interested entity who initiated the proposal with the terms and conditions to lay the said tie -in connectivity and in such a case, the interested entity shall be considered as ―shipper‖ in terms of the Petroleum and Natural Gas Regulatory Board (Access Code of Conduct for Common Carrier or Contract Carrier Petroleum and Petroleum Products Pipelines) Regulations, 2016; (ii) The Board may also consider inviting bids for the subject tie -in connectivity as per the provisions of sub -regulation (5) of regulation 5; (iii) Any proposal to construct tie -in pipeline connectivity exceeding the length as provided in sub -clause (i) shall b e dealt in line with the relevant provisions of the regulations for competitive bidding route; (8) Laying of spur -lines: The entity initiating the request for a spur line shall inform the Board of its intentions along with the full details on the spur -line length, route, capacity and details of the customers to be served and the Board after public consultation shall give its decision to the entity within sixty days of the receipt of the request. (9) The Board may alternatively invite bids in place of such proposal submitted under this regulations, if it is opined by the Board that invitation of bids shall serve one or more of the following objectives, namely: - (i) promoting competition among entities; (ii) avoiding infructuous investment; (iii) maintaining or increasing supplies or for securing equitable distribution or ensure adequate availability of petroleum and petroleum products throughout the country; (iv) protection of customers’ interest in terms of availability of petroleum and petroleum products a t reasonable petroleum and petroleum products pipeline tariff; (v) incentivizing rapid development of petroleum and petroleum products pipeline infrastructure.‖; (f) in Part – II of Schedule B, - (i) for the words ―ten years‖, the words ―twenty five years ‖, shall be substituted; (ii) for the word and figures ―Year 10‖ the word and figures ―Year 25‖ shall be substituted; (iii) The portion beginning with the words ―The Board shall‖ and ending with the words ―on prospective basis.‖ shall be omitted : (g) in Schedule C, - (i) for the words ―ten years‖ the words, ―twenty five years‖ shall be substituted; (ii) for the figures, marks and letters, ―0.50 x LFT1 + 0.20 x LVT1 + 0.30 x HC1‖, the figures, marks and letters ―0.40 x LFT1 + 0.40 x LVT1 + 0.20 x HC1‖ shal l be substituted ; (iii) for the figures, marks and letters, ―0.50 x LFT2 + 0.20 x LVT2 + 0.30 x HC2‖ the figures, marks and letters ―0.40 x LFT2 + 0.40 x LVT2 + 0.20 x HC2‖ shall be substituted ; (iv) for the figures, marks and letters, ―0.50 x LFT3 + 0 .20 x LVT3 + 0.30 x HC3‖ the figures, marks and letters ―0.40 x LFT3 + 0.40 x LVT3 + 0.20 x HC3‖ shall be substituted. VANDANA SHARMA, Secy. [ADVT. -III/4/Exty./623/2023 -24] Footnote: The Principal regulations were notified vide G .S.R. 722 (E), dated 01/09/2 010 and subsequently amended vide F. No. L -MISC/VI/I/2007, dated 01/01/2015 and F. No. VKS/DB/03/PPL, dated 29.03.2016 . Uploaded by Dte. of Printing at Government of India Press, Ring Road, Mayapuri, New Delhi -110064 and Published by the Controll er of Publications, Delhi -110054.