Gas (Interim) (Regulation) Act, 2002
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Natural gas licences. |
16.—(1) Subject to subsection (4), the Commission may from the appointed day grant, on such terms and conditions as may be specified in the licence, or may refuse to grant, to any person a licence (a “natural gas licence”) in respect of any or all of the following activities— | |
(a) the supply of natural gas to persons of a type mentioned in subsection (1) of section 10A (inserted by section 14 ) of the Gas Act, 1976 , or to customers of a type mentioned in Article 19 of the Directive. | ||
(b) the operation of a distribution or transmission pipeline, or | ||
(c) the storage of natural gas. | ||
(2) Subject to subsection (4), a person who undertakes any of the activities mentioned in subsection (1) without a natural gas licence in respect of the activity is guilty of an offence and shall be liable on summary conviction to a fine not exceeding €3,000 or to imprisonment for a term not exceeding 3 months, or to both. | ||
(3) Summary proceedings for an offence under this section may be brought and prosecuted by the Commission. | ||
(4) The Commission may specify by regulations— | ||
(a) the classes of activities mentioned in subsection (1) to which subsection (2) or subsection (10) or both shall not apply, and | ||
(b) the classes of licence holder to which the requirements of section 13 shall not apply. | ||
(5) An application for a natural gas licence shall be— | ||
(a) in writing and be in such form and contain such information as the Commission may request, and | ||
(b) accompanied by such a fee, if any, as the Commission may determine to be appropriate, having regard to the application being made. | ||
(6) The Commission shall make information on such fees payable under subsection (5)(b) available on the request of an applicant for a natural gas licence. | ||
(7) The Commission shall monitor the activities of a holder of a natural gas licence to ensure that the holder complies with all the terms and conditions of the licence. | ||
(8) The Minister shall specify by regulations the criteria in accordance with which an application for a natural gas licence of any category referred to in paragraph (a), (b) or (c) of subsection (1) may be determined by the Commission. | ||
(9) The criteria specified by the Minister under subsection (8) may relate to, any or all of the following: | ||
(a) security of supply, | ||
(b) the safety and security of the natural gas system, | ||
(c) the qualifications of an applicant, including the technical and financial qualifications of the applicant, and | ||
(d) any other criteria specified under subsection (8). | ||
(10) A person undertaking any of the activities mentioned in subsection (1) on the appointed day shall apply for a natural gas licence as specified in subsection (1) (a), (b) or (c), as may be appropriate, within 3 months of the appointed day or such other period as may be agreed by the Commission, and the Commission shall not refuse such an application. | ||
(11) An application, made before the appointed day, to the Minister for a consent under section 8 (7) or 40 (1) of the Gas Act, 1976 , which has not been subject of a decision by the Minister before the appointed day, shall be deemed to be an application for a consent under section 39A(1) (inserted by section 12 ) of the Gas Act, 1976 , and, where appropriate, for a natural gas licence and shall be dealt with accordingly. | ||
(12) Where the Commission refuses to grant a natural gas licence or to give a consent under section 39A(1) of the Gas Act, 1976 , section 14(7) of the Act of 1999 shall apply to the refusal. | ||
(13) A holder of a natural gas licence shall— | ||
(a) operate, maintain and develop under economic conditions such facilities or systems as required for the purpose of carrying out the activity for which it is licensed with due regard to the environment and public safety, | ||
(b) not discriminate between system users or classes of system users particularly in favour of related undertakings, | ||
(c) provide any natural gas undertaking with sufficient information to ensure that transport or storage of natural gas may take place in a manner compatible with the safe, secure and efficient operation of the natural gas system, | ||
(d) without prejudice to any legal obligation to disclose information, preserve the confidentiality of commercially sensitive information obtained in the course of carrying out its business, and | ||
(e) provide all documents, records, accounts, estimates and other information, whether oral or written, requested from time to time by the Commission, in the form and at the times specified by the Commission, for the purpose of verifying that the holder of the licence is complying with the conditions of the licence, or as may be required by the Commission in the performance of its duties or functions imposed under this Act. | ||
(14) (a) Where the Commission is satisfied that all or any of the circumstances set out in paragraph (b) have arisen or are likely to arise it may direct the holder of a natural gas licence, the holder of a consent given by the Minister, before the appointed day, under section 8 (7) or 40 (1) of the Gas Act, 1976 , the holder of a consent given by the Commission under section 39A(1) of the Gas Act, 1976 , a person in respect of whom an order has been made under section 2 (1) of the Gas (Amendment) Act, 1987 , a person undertaking an activity mentioned in regulations made by the Commission under subsection (4), or the Board, to discontinue or to refrain from specified practices. | ||
(b) The circumstances referred to in paragraph (a) are where the Commission is of the opinion that: | ||
(i) immediate action is necessary to protect— | ||
(I) public health or safety or the environment, | ||
(II) the continuity of supplies of natural gas, or | ||
(III) the interests of other holders of natural gas licences or consents given under the Gas Act, 1976 , or of other persons in respect of whom an order has been made under section 2 (1) of the Gas (Amendment) Act, 1987 , or undertaking an activity mentioned in regulations made by the Commission under subsection (4), | ||
(ii) the holder of a natural gas licence or a consent aforesaid, or a person in respect of whom an order has been made under section 2 (1) of the Gas (Amendment) Act, 1987 , is contravening or is likely to contravene a term, condition or requirement and immediate action is necessary to cease or prevent such contravention, or | ||
(iii) immediate action is necessary to prevent dissipation of the assets of the holder of a natural gas licence or a consent aforesaid, or of a person in respect of whom an order has been made under section 2(1) of the Gas (Amendment) Act, 1987 . | ||
(c) Nothing in this subsection shall authorise the Commission to give directions relating to industrial disputes. | ||
(15) Where the Commission is of the opinion that the holder of a natural gas licence or a consent given by the Minister, before the appointed day, under section 8 (7) or 40 (1) of the Gas Act, 1976 , or a consent given by the Commission under section 39A(1) of the Gas Act, 1976 , or a person in respect of whom an order has been made under section 2 (1) of the Gas (Amendment) Act, 1987 , is contravening or is likely to contravene a term, condition or requirement, sections 24 to 26 of the Act of 1999 shall apply to any actions it may take. | ||
(16) (a) In this subsection and in subsections (14) and (15) “term, condition or requirement” means— | ||
(i) any term or condition of a natural gas licence, | ||
(ii) any requirement imposed by or under this Act, | ||
(iii) any conditions or requirements imposed by the Minister under subsection (8) or (9) of section 8 , or section 40 (3) of the Gas Act, 1976 , or by the Commission under section 39A(4) (inserted by section 12 ) of the Gas Act, 1976 , or | ||
(iv) any duties or obligations conferred on a person by an order made under section 2(1) of the Gas (Amendment) Act, 1987 . | ||
(b) Where— | ||
(i) the holder of a natural gas licence, a consent given by the Minister, before the appointed day, under section 8 (7) or 40 (1) of the Gas Act, 1976 , a consent given by the Commission under section 39A(1) of the Gas Act, 1976 , or a person in respect of whom an order has been made under section 2 (1) of the Gas (Amendment) Act, 1987 , requests the Commission to modify the terms, conditions or requirements of the licence, consent or order, or | ||
(ii) the Commission is of the opinion that: | ||
(I) a natural gas licence or consent aforesaid should be amended, | ||
(II) a modification of a term, condition or requirement of a natural gas licence, consent or order aforesaid is a modification of a class required by an order of the Minister made under section 21 , | ||
the Commission may modify the terms, conditions or requirements of the licence, consent or order concerned in accordance with sections 20 to 22 of the Act of 1999, and those sections shall, accordingly, be construed as including references to a natural gas licence, consent or order as aforesaid, where appropriate. | ||
(17) Any reference— | ||
(a) in sections 14(7), 29, 30 and 32 of the Act of 1999 to a licence shall be construed as including a reference to a natural gas licence and an order made under section 2 (1) of the Gas (Amendment) Act, 1987 , | ||
(b) in sections 17(4), 29, 30 and 32 of the Act of 1999 to an authorisation shall be construed as including a reference to a consent of a type mentioned in section 8 (7), 39A(1) or 40 (1) of the Gas Act, 1976 , other than a consent in regard to an upstream pipeline. |