Section 21 in The Petroleum and Natural Gas Regulatory Board (Authorizing Entities to Lay, Build, Operate or Expand Petroleum and Petroleum Products Pipelines) Regulations, 2010
21. Provisions regarding modifications or expansion or extension in a petroleum and petroleum products pipeline.
(1)An entity proposing toi) carry out any modification or expansion or extension in a petroleum and petroleum products pipeline orii) discontinue the operations in the petroleum and petroleum products pipeline or any segment thereof, oriii) add a new tap off point or discontinue an existing tap off point, oriv) provide a new connectivity or discontinue an existing connectivity with the receiving terminal or with the dispatch terminal-which is likely to affect the installed capacity of the petroleum and petroleum products pipeline, whether in part or in full, shall seek a prior approval from the Board in this regard and shall contain full particulars, map of all facilities and justification for the proposed modification in line with the requirements of the access code for such pipelines and relevant provisions of these regulations and any other regulations applicable in this respect:Provided that proposal for any increase in length beyond 10 percent of the authorized length of the trunk or transmission pipeline or 50 kilometer whichever is lower, shall be submitted to the Board for authorization in line with the provisions of the Act as well as regulations:Provided further that there shall be no change in the pipeline tariff post-extension of pipeline and it will not adversely affect the existing customers.(2)The entity may expand the authorized capacity in the petroleum and petroleum products pipeline upto ten per cent and immediately inform the Board of its decision:Provided that there shall be no change in the pipeline tariff post-expansion.(3)In case it is proposed to expand the capacity of the pipeline by more than ten per cent of that authorized by the Board, the entity shall submit a proposal for consideration of the Board and the Board may allow for expansion of the capacity in the pipeline without adversely affecting the customers served by the pipeline, The financial implications for the same shall be considered in the next review period for tariff in line with the provisions of the relevant regulations on tariff for pipelines.(4)in case of suo moto proposal for extension or expansion of the Pipeline the first right of refusal shall be with the owner of the pipeline.(5)The Board may examine that the proposal is not prejudicial to fair trad and competition between the entities, and shall give a decision on the proposal within a period of sixty days of receipt of such proposal.
