Section 8 in The Petroleum and Natural Gas Regulatory Board (Access Code for Common Carrier or Contract Carrier Natural Gas Pipelines) Regulations, 2008
8. Obligations at entry point and exit point.
(1)At the entry point when the shipper delivers natural gas that does not meet the quality requirements as specified in sub-regulation (1), (4) to (6) of regulation 5, in respect of CV band and threshold level of other elements of gas, the transporter may-(a)refuse to accept it; or(b)accept any gas that does not meet the requirements of gas in terms of gas parameters-(i)as specified at Schedule II:Provided that transporter may charge reasonable cost of service from the shipper, as may be mutually agreed, for any additional facilities or treatment for cleaning up or integrity requirements of the pipeline and to upgrade gas to pipeline specifications;Provided further that such off-spec natural gas does not adversely affect the existing customers' quality specifications committed by the transporter at the exit points;(ii)as specified in sub regulations (1) and (4) of regulation 5:Provided that the transporter may charge the reasonable cost of service for the capacity adjustment from the shipper for transportation of such gas and for capacity constraints in the system:Provided further that such off-spec natural gas does not adversely affect the existing customers' quality specifications committed by the transporter at the exit points.(2)At the exit point when the transporter delivers gas that does not meet the quality requirements as specified in sub regulation (7) of regulation 5, the shipper may-(a)refuse to accept delivery and in such a case the transporter shall be liable to pay liquidated damages to the shipper as per their terms of contract; or(b)accept the gas and in such case no charges shall be payable by transporter.
