Chapter VIII CONTROL OVER PETROLEUM

No one shall Import, export, transport store, reline or blend petroleum in the State save under, and in accordance with a licence granted or renewed under the rules made under section 39.

The State Government may make rules (a) providing for the manner in which, an application for a licence under section 38 shall be made, and conditions under which such licence shall be granted, renewed or held; (b) providing for the period for which a licence granted or renewed under this section shall be in force; (c) providing the condition on the breach of non-observance of which a licence granted or renewed under section 38 may be cancelled or withdrawn. Provided that no licence granted or renewed under section 38 shall be cancelled or the holder of the licence a reasonable opportunity of being heard, (d) providing for the places where petroleum may he imported, and prohibiting its import elsewhere, (e) regulating the import, export or transport of petroleum, (f) providing for the disposal, by confiscation or otherwise, of any petroleum in respect of which a licence has not been applied for within the prescribed period or has been refused, cancelled or withdrawn, and which has not been exported: (g) specifying the nature and condition of all receptacles and pipe-lines in which, or by which, petroleum may be transported; (h) regulating the places at which, and the conditions subject to which, petroleum may be stored; (i) specifying the nature and condition of all receptacles in which petroleum may be stored; (j) determining the cases or class of cases in which a licence for the transport of petroleum shall be obtained by the consignee, consignor or carrier, (k) specifying the proportion in which any specified poisonous substance may be added to petroleum and prohibiting the import, export, transport or storage of petroleum in which the proportion of each such poisonous substance exceeds the prescribed proportion; (l) generally providing for any matter which is in its opinion expedient for proper control over the import, export, transport or storage of petroleum.

(1) No one shall produce, refine or blend petroleum save under, and in accordance with the rules made under sub-section (2). (2) The State Government may make rules (a) providing the conditions subject to which petroleum may be produced, refined or blended; and (b) regulating the removal of petroleum from places where it is produced. refined or blended and preventing the storage therein and removal there-from of any petroleum which has not satisfied the prescribed tests.

All receptacles, containing petroleum shall have a stamped, embossed, painted or printed warning either on the receptacle itself or, when that is impracticable, displayed near the receptacle exhibiting in conspicuous character the words, “PETROL” or “MOTOR SPIRIT”, or an equivalent warning of the dangerous nature of petroleum; Provided that this section shall not apply to (a) any securely stoppered glass, stone-ware or metal receptacle of less than ten litres capacity containing petroleum which is not for sale; or (b) tank incorporated in a motor conveyance, or attached to an internal combustion engine, and containing petroleum intended to be used to generate motive power for the motor conveyance or engine, or (c) a pipe-line for the transport of petroleum, or (d) any tank which is wholly underground, or (e) any class of receptacles which the State Government may, by notification, exempt from the operation of this section.

Notwithstanding anything contained in this Chapter, a person need not obtain in licence for the transport or storage of; (i) Petroleum having a flashpoint to twenty three degrees Celsius if the total quantity in his pm session at any one place does not exceed two thousand five hundred litres and none of it is contained in a receptacle exceeding one thousand litres in capacity, or (ii) petroleum having a flashpoint of sixty-five degrees Celsius and above but below ninety-three celsius, Explanation: In this Act “flashpoint” of any petroleum means the lowest temperature at which it yields a vapour which will give a momentary flash when ignited, determined in accordance with the provisions of Chapter VII and the rules made thereunder.

(1) The owner of a motor conveyance who complies with the requirements of law for the time being in force relating to the registration and licensing of such conveyance and its driver or pilot and the owner of any stationary internal combustion engine, shall not require a licence. (a) for the import or storage of any petroleum contained in any fuel tank incorporated in the conveyance or attached to the internal combustion engine

Notwithstanding anything contained in this chapter, a railway administration as defined in the Indian Railway Act, 1890, or any other carrier need not obtain any licence for the import or transport if any petroleum in its capacity as a carrier.

Nothing in this chapter shall apply to any petroleum which has its flashpoint not below ninety-three degree Celsius.

The State Government may, by notification exempt any petroleum specified in the notification from all or any of the provisions of this chapter.

(1) The Government may authorize any officer by name or by virtue of office to enter any place where petroleum is being imported , stored, produced, refined or blended or ids under transport and inspect all receptacles, plant and appliances used in connection with petroleum in order to ascertain if they are in accordance with the provisions of this chapter and the rules made thereunder. (2) The State Government may make rules regarding the procedure of authorizing officers under this section.