Vidhi Codex

The Petroleum and Natural Gas Regulatory Board Act, 2006

The Petroleum and Natural Gas Regulatory Board Act, 2006

Infrastructure200663 sections10 chapters

This law establishes a regulatory board to oversee the downstream oil and gas sector in India. It regulates the refining, processing, storage, transportation, distribution, and marketing of petroleum, petroleum products, and natural gas, excluding raw extraction activities. It applies to all corporate entities that run pipelines, storage units, and regional distribution networks. This legislation matters because it protects consumer interests by preventing unfair monopolies, regulating usage tariffs, and enforcing strict safety codes. Ultimately, it ensures the safe, steady, and equitable supply of essential fuel resources like cooking gas and vehicle petrol to everyday citizens who reside across the entire country.

Start reading →Read full ActSections

Chapter I PRELIMINARY →

  1. 1Short title, extent, commencement and application
  2. 2Definitions

Chapter II PETROLEUM AND NATURAL GAS REGULATORY BOARD →

  1. 3Establishment and incorporation of the Board
  2. 4Qualifications for appointment of Chairperson and other members
  3. 5Term of office, conditions of service, etc. of Chairperson and other members
  4. 6Powers of Chairperson
  5. 7Removal of Chairperson or any other member from office
  6. 8Meetings of the Board
  7. 9Vacancies, etc., not to invalidate proceedings of the Board
  8. 10Officers and other employees of the Board

Chapter III FUNCTIONS AND POWERS OF THE BOARD →

  1. 11Functions of the Board
  2. 12Powers regarding complaints and resolution of disputes by the Board
  3. 13Procedure of the Board

Chapter IV REGISTRATION AND AUTHORISATION →

  1. 14Register
  2. 15Registration of entities
  3. 16Authorisation
  4. 17Application for authorisation
  5. 18Publicity of applications
  6. 19Grant of authorisation
  7. 20Declaring, laying, building, etc., of common carrier or contract carrier and city or local natural gas distribution network
  8. 21Right of first use, etc
  9. 22Transportation tariff
  10. 23Suspension or cancellation of authorisation

Chapter V SETTLEMENT OF DISPUTES →

  1. 24Board to settle disputes
  2. 25Filing of complaints
  3. 26Power to investigate
  4. 27Factors to be taken into account by the Board
  5. 28Civil penalty for contravention of directions given by the Board
  6. 29Orders passed by Board deemed to be decrees

Chapter VI APPEALS TO APPELLATE TRIBUNAL →

  1. 30Appellate Tribunal
  2. 31Technical Member (Petroleum and Natural Gas)
  3. 32Terms and conditions of service of Technical Member (Petroleum and Natural Gas)
  4. 33Appeals to Appellate Tribunal
  5. 34Procedure and powers of the Appellate Tribunal
  6. 35Power of Appellate Tribunal to make rules
  7. 36Orders passed by Appellate Tribunal to be executable as a decree
  8. 37Appeal to Supreme Court

Chapter VII FINANCE, ACCOUNTS AND AUDIT →

  1. 38Grants by Central Government
  2. 39Fund
  3. 40Accounts and audit
  4. 41Annual report and its laying before Parliament

Chapter VIII POWER OF CENTRAL GOVERNMENT →

  1. 42Power of Central Government to issue directions
  2. 43Taking over control and management of facilities and business premises of any entity and retail outlets in public interest

Chapter IX OFFENCES AND PUNISHMENT →

  1. 45Penalty for wilful failure to comply with orders of Appellate Tribunal
  2. 46Punishment for unauthorised activities
  3. 47Punishment for establishing or operating a liquefied natural gas terminal without registration
  4. 48Punishment for laying, building, operating or expanding a common carrier or contract carrier without authorisation
  5. 49Punishment for wilful damages to common carrier or contract carrier
  6. 50Offences by companies

Chapter X MISCELLANEOUS →

  1. 51Maintenance of data bank and information
  2. 52Obligations of entities
  3. 53Furnishing of returns, etc., to Central Government
  4. 54Chairperson, members, etc., to be public servants
  5. 55Protection of action taken in good faith
  6. 56Civil courts not to have jurisdiction
  7. 57Cognizance of certain offences
  8. 58Delegation
  9. 59Power to remove difficulties
  10. 60Power of Central Government to make rules
  11. 61Power of Board to make regulations
  12. 62Rules and regulations to be laid before Parliament
  13. 63Transitional arrangements

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