Ministry of Petroleum and Natural Gas
The Petroleum and Natural Gas Regulatory Board Act, 2006, was enacted to provide for the establishment of the Petroleum and Natural Gas Regulatory Board (PNGRB) to regulate the refining, processing, storage, transportation, distribution, marketing, and sale of petroleum, petroleum products, and natural gas. This act aims to protect the interests of consumers and entities engaged in these activities and to promote competitive markets. The Act does not specify a particular ministry; however, it falls under the purview of the Ministry of Petroleum and Natural Gas in India.
Enactment Date, Number of Chapters, Number of Sections:
The Petroleum and Natural Gas Regulatory Board Act, 2006, was enacted on March 31, 2006. The Act is structured into 10 chapters and 63 sections, along with a schedule. These sections cover various aspects of the PNGRB, including its establishment, composition, functions, powers, procedures, and miscellaneous provisions.
Act Governed By:
The Act is primarily governed by the provisions outlined within its sections. It establishes the Petroleum and Natural Gas Regulatory Board, defines its composition, functions, and powers, and outlines the procedures for registration, authorization, and dispute resolution. The Act also addresses financial matters, appeals, and the powers of the Central Government.
On Whom It Is Applicable:
The Petroleum and Natural Gas Regulatory Board Act, 2006, is applicable to the Petroleum and Natural Gas Regulatory Board (PNGRB), its members, officers, and employees, and to all entities engaged in the refining, processing, storage, transportation, distribution, marketing, and sale of petroleum, petroleum products, and natural gas. This includes oil companies, gas distributors, and other related entities.
Penalties/Punishments:
The Act prescribes penalties for non-compliance with its provisions and the directions of the Board. These include:
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Fine up to one crore rupees for contravening directions of the Board.
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Additional fine which may extend to ten lakh rupees for every day during which the contravention continues.
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Fine which may extend to two crore rupees for wilful failure to comply with the orders of the Appellate Tribunal.
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Imprisonment for a term which may extend to three years or with fine which may extend to twenty-five crore rupees or with both, and in case of continuing contravention, with additional fine which may extend to ten lakh rupees for every day during which the contravention continues for unauthorized activities.
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Other penalties as may be prescribed by rules made under the Act.
Important Pointers:
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The Act establishes the Petroleum and Natural Gas Regulatory Board (PNGRB) to regulate the petroleum and natural gas sector.
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It defines key terms related to the oil and gas industry, including “petroleum,” “natural gas,” “common carrier,” and “contract carrier.”
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The Act outlines the functions of the Board, including protecting consumer interests, promoting competition, and ensuring adequate supply.
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It provides for the registration of entities engaged in marketing, establishing LNG terminals, and storage facilities.
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The Act authorizes entities to lay, build, operate, or expand pipelines and distribution networks.
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It specifies the procedures for filing complaints and resolving disputes.
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The Act empowers the Board to set transportation tariffs and regulate access to pipelines and networks.
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It establishes an Appellate Tribunal to hear appeals against the decisions of the Board.
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The Central Government is empowered to issue directions to the Board and make rules for carrying out the provisions of the Act.
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The Act aims to create a transparent and competitive market for petroleum and natural gas in India.
Act Copy: