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Union of India - Section

Section 13 in The Petroleum and Natural Gas Regulatory Board (Access Code for Common Carrier or Contract Carrier Natural Gas Pipelines) Regulations, 2008

13. System indiscipline and charges.

(1)If the pipeline capacity has been utilized by the shipper without permission of the transporter over 110% of the capacity allocated, then, the shipper shall be charged for such unauthorized overrun by the transporter in a transparent manner on non-discriminatory basis.
(2)If the shipper off-takes less quantity of gas from the pipeline system than injected into it, then, the shipper is creating positive imbalance and it shall be allowed a cumulative positive imbalance of ten per cent of allocated capacity as tolerance limit.
(3)Positive imbalance up to ten per cent of the booked capacity shall not attract any positive imbalance charges and the shipper shall be charged by the transporter for positive imbalance charges in a transparent manner on non-discriminatory basis if it exceeds ten per cent.
(4)If shipper off-takes more quantity of gas from the pipeline system than injected into it, then, the shipper is creating negative imbalance and the shipper shall be allowed a cumulative negative imbalance of five per cent of allocated capacity as a tolerance limit.
(5)Negative imbalance of five per cent of the allocated capacity shall not attract any negative imbalance charges and the shipper shall be charged by the transporter for negative imbalance charges in a transparent manner on non discriminatory basis if it exceeds five percent.
(6)Charges for the system indiscipline, that is, for unauthorized overrun positive imbalance and negative imbalance shall be on daily basis in terms of maximum daily quantity.
(7)Subject to sub-regulation (8), the transporter shall maintain the pipeline system in such a way that the allowed positive imbalance of 10% or negative imbalance of 5% does not interfere with the operations of the pipeline and shall ensure that the shippers get their allocated quantities within acceptable contractual variations, at specified gas parameters at exit points.
(8)It shall be the responsibility of the defaulting shipper to cure imbalances beyond the permissible limit caused by it in transporter's pipeline and in case, the defaulting shipper is unable to cure such imbalances within a period of fifteen days, then, the transporter shall have the right to adjust daily-nominated quantity of such shipper to mitigate such imbalances to ensure safety and integrity of pipeline system.
(9)In case the transporter and the shipper have entered into an agreement which recognizes an aggregated volume of natural gas on periodic basis and the shipper makes commitment to avail the capacity intermittently within a period less than one year, the imbalances and overrun charges shall be calculated on maximum daily quantity basis as scheduled by the shipper and the transporter.
(10)[ (i) There shall be established an escrow account to be maintained by the Board from the date of the commencement of Petroleum and Natural Gas Regulatory Board (Access Code for Common Carrier or Contract Carrier Natural Gas Pipelines) Amendment Regulations, 2019, in which there shall be credited all charges received by the transporter on account of imbalances and overruns. The imbalance and overrun charges shall be as follows:
S.No. Item Particulars Charges
1. Unauthorised Overrun Beyond 110% of the allocated capacity ½ time Tariff of natural gas pipeline
2. Positive Imbalance Cumulative Imbalance beyond 10% of bookedcapacity ½ time Tariff of natural gas pipeline
3. Negative Imbalance Cumulative Imbalance beyond 5% of bookedcapacity ½ time Tariff of natural gas pipeline
(ii)The transporter shall raise a separate invoice towards imbalance and overrun charges, including applicable taxes and levies. The transporter shall deposit the taxes and levies with the concerned authorities.
(iii)The transporter shall make all reasonable efforts for recovering the imbalance and overruns charges referred to in clause (ii) from the shipper within the period it allows shipper to pay its transportation charges.
(iv)The transporter shall deposit the amounts received by it from the shipper on account of the charges referred to in clause (ii) (excluding taxes and levies) into the escrow account maintained by the Board within a period of fifteen days from the end of the calendar quarter during which such amounts were received by it along with such details thereof as the Board may require from time to time. Transporter is not allowed to retain or deduct any amount (except for taxes and levies) received by it except the claim approved by the Board under clause (viii).
(v)The transporter shall submit to the Board month-wise, pipeline-wise and shipper-wise details of such charges as are recoverable from each shipper, amounts received from the shippers and the amounts due from shippers and its reconciliation with the amount deposited in accordance with as specified in clause (iv), quarterly within a period of sixty days from the end of each quarter along with a certificate from a Chartered Accountant certifying such details and further, at the end of each financial year, an annual certificate containing the said details shall be submitted by the transporter to the Board along with the certificate for the fourth quarter. Format for providing such details is as specified in Schedule III to these regulations.
(vi)The transporter may claim from the escrow account maintained by the Board the amounts incurred by it towards its contractual obligations with reference to supply or pay and extra efforts to compress gas in case of negative imbalances and system management of the pipeline system due to such imbalances created by the shippers:
Provided that such claim shall not exceed the amount deposited by him in the escrow account.
(vii)The claim under clause (vi) may be submitted annually by the transporter to the Board within 60 days of the end of each financial year with details such as details of amounts incurred by it, its bank account details, Permanent Account Number and detailed rationale of such claim, along with a certificate from a Chartered Accountant certifying such details.
(viii)The Board shall consider such claims on merits and may seek such further information as it may deem fit and the Board shall communicate the amount of claim approved to the transporter within 60 days from receipt of complete information, which may be deducted by the transporter from the subsequent deposits to be made by it into the escrow account.
(ix)The accumulated amounts lying in the escrow account established by the transporter along with interest and any other earnings thereon shall be deposited by the transporter into the escrow account established by Board within thirty days from the commencement of the Petroleum and Natural Gas Regulatory Board (Access Code for Common Carrier or Contract Carrier Natural Gas Pipelines) Amendment Regulations, 2019. The transporter shall submit year-wise, pipeline-wise and shipperwise details of total imbalance and overrun charges received by it from all the shippers, details of deposit of such charges in its escrow account, details of withdrawal from such escrow account and details of interest or any other earnings from such escrow account up to the date of transfer of whole amount to the escrow account operated by the Board along with a certificate from a Chartered Accountant certifying these details within ninety days from the commencement of the Petroleum and Natural Gas Regulatory Board (Access Code for Common Carrier or Contract Carrier Natural Gas Pipelines) Amendment Regulations, 2019, and further, if transporter deducts or retains any amount from the imbalance and overrun charges received from shippers before depositing it in the escrow account maintained by it in any of the past period, the transporter is required to submit the year wise details thereof along with certificate from chartered accountant to the Board.
(x)The Board may issue such interim order as it thinks fit, either on the application of the transporter or on its own, to remove any difficulty in implementing the provisions of clause (ix) where the accumulations are invested by the transporter in deposits maturing beyond thirty days from the commencement of the Petroleum and Natural Gas Regulatory Board (Access Code for Common Carrier or Contract Carrier Natural Gas Pipelines) Amendment Regulations, 2019.]
[***] [Omitted '(11)' by Notification No. F. No. PNGRB/M(C)/31 (Vol. III), dated 13.8.2019.]
(12)The balance amount available in the escrow account, after the eligible withdrawal by the transporter, under sub clause (10) may be utilized in such a manner and for such purposes as may be specified by the Board.