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    Public Notice No: PNGRB/CGD/2013/NG Mktg-A: 23 August 2013

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    bhupender
    The document outlines guidelines established by the Petroleum and Natural Gas Regulatory Board of India for granting permits for the supply and distribution of natural gas through cascades and for setting up CNG daughter booster stations in areas not yet authorized for city gas distribution networks. Key details include: 1) Entities must apply for permits, providing gas source details and customer information. 2) Permits will be examined on a case-by-case basis and granted subject to submitting a bank guarantee of 500,000 Indian rupees. 3) Permits allow the supply of gas to customers under 50,000 cubic meters per day and restrict infrastructure to specified CNG stations only. Future authorization of the area

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    Public Notice No: PNGRB/CGD/2013/NG Mktg-A: 23 August 2013

    Uploaded by

    bhupender
    30 views6 pages
    The document outlines guidelines established by the Petroleum and Natural Gas Regulatory Board of India for granting permits for the supply and distribution of natural gas through cascades and for setting up CNG daughter booster stations in areas not yet authorized for city gas distribution networks. Key details include: 1) Entities must apply for permits, providing gas source details and customer information. 2) Permits will be examined on a case-by-case basis and granted subject to submitting a bank guarantee of 500,000 Indian rupees. 3) Permits allow the supply of gas to customers under 50,000 cubic meters per day and restrict infrastructure to specified CNG stations only. Future authorization of the area

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    Guidlines_final

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    The document outlines guidelines established by the Petroleum and Natural Gas Regulatory Board of India for granting permits for the supply and distribution of natural gas through cascades and for setting up CNG daughter booster stations in areas not yet authorized for city gas distribution networks. Key details include: 1) Entities must apply for permits, providing gas source details and customer information. 2) Permits will be examined on a case-by-case basis and granted subject to submitting a bank guarantee of 500,000 Indian rupees. 3) Permits allow the supply of gas to customers under 50,000 cubic meters per day and restrict infrastructure to specified CNG stations only. Future authorization of the area

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    30 views6 pages

    Public Notice No: PNGRB/CGD/2013/NG Mktg-A: 23 August 2013

    Uploaded by

    bhupender
    The document outlines guidelines established by the Petroleum and Natural Gas Regulatory Board of India for granting permits for the supply and distribution of natural gas through cascades and for setting up CNG daughter booster stations in areas not yet authorized for city gas distribution networks. Key details include: 1) Entities must apply for permits, providing gas source details and customer information. 2) Permits will be examined on a case-by-case basis and granted subject to submitting a bank guarantee of 500,000 Indian rupees. 3) Permits allow the supply of gas to customers under 50,000 cubic meters per day and restrict infrastructure to specified CNG stations only. Future authorization of the area

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
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    of 6

    Petroleum and Natural Gas Regulatory Board

    1st Floor, World Trade Centre, Babar Road, New Delhi - 110 001
    Tel No: 011-23457700, Fax No: 011-23709151
    23rd August 2013
    Public Notice No: PNGRB/CGD/2013/NG Mktg-A

    Internal Guidelines for grant of NOC/Permission for (i) supply/distribution


    of CBM/natural gas through cascades; and (ii) setting up of CNG Daughter
    Booster Stations (DBS), in the areas where Board has not yet authorised
    any entity for developing or operating CGD networks

    1. PNGRB has been receiving various requests for grant of No Objection


    Certificate (NOC)/Permission for supply/distribution of CBM/natural gas
    through cascades; and (ii) setting up of CNG Daughter Booster Stations
    (DBS), in the areas where Board has not yet authorised any entity for
    developing or operating CGD networks.

    2. As per the provisions of the Petroleum and Natural Gas Regulatory Board
    Act, 2006 and the Regulations notified there under, the Board grants
    authorisation for development of CGD networks in the specified
    Geographical Areas (GAs) through bidding process. As per extant
    provisions of the Petroleum and Natural Gas Regulatory Board (Authorising
    Entities to Lay, Build, Operate or Expand City or Local Natural Gas
    Distribution Networks) Regulations, 2008,-

    i. Customers having requirement of natural gas upto 50,000 SCMD


    shall be supplied through the City or Local Natural Gas Distribution
    (CGD) network;
    ii. Customers having requirement of natural gas more than 50,000
    SCMD and upto 1,00,000 SCMD shall be supplied through the CGD
    network or through a pipeline not forming part of the CGD network;
    and
    iii. Customers having requirement of natural gas more than 1,00,000
    SCMD shall be supplied through a pipeline not forming part of the
    CGD network.

    3. Further, vide Public Notice dated 27th July 2010, PNGRB has inter alia
    advised the entities not to set up any CNG stations without specific consent
    of the Board. Subsequently the Board proposed to issue Guidelines for
    natural gas marketing in the areas yet to be authorised by PNGRB/outside
    authorised GA.

    4. Depending on the natural gas pipeline connectivity/natural gas availability,


    PNGRB plans to include the identified GAs in a phased manner in the CGD
    bidding rounds for grant of authorisation. It would take considerable time to
    cover all the GAs in the bidding rounds and to grant authorisations by the
    Board for development of CGD networks. Hence, in order to ensure
    availability/supply of natural gas to the customers whose requirement has to
    be met by the CGD network as mentioned above and to encourage
    development of natural gas market, PNGRB has been granting
    NOC/Permission on a case to case basis for (i) supply/distribution of
    CBM/natural gas through cascades; and (ii) setting up of CNG Daughter
    Booster Stations (DBS), in the areas where Board has not yet authorised any
    entity for developing or operating CGD networks.

    5. In order to facilitate all the entities that are desirous of undertaking these
    activities, PNGRB has finalised these Guidelines under which
    NOC/Permission will be granted.

    6. Entities desirous of supplying/distributing natural gas through cascades to


    specific customers having requirement of less than 50,000 SCMD and/or
    setting up of CNG Daughter Booster Stations (DBS), in an area yet to be
    covered under any GA authorized by PNGRB may apply to PNGRB for
    NOC/permission giving details such as gas source, supply methodology,
    volumes proposed to be supplied, details of customers, proximity of gas
    source to the customers, number and location of the CNG DB Stations duly
    earmarked on a map, etc. and such other details that may be required by the
    Board while processing the request/application.

    7. PNGRB will examine all such applications on case to case basis and may
    grant NOC/permission subject to the entity submitting the Bank Guarantee
    of Rs.5,00,000/- (Rupess Five Lakh) as per the enclosed Proforma and
    subject to the following terms & conditions:
    (i) The Entity shall abide by the provisions of the Petroleum and Natural
    Gas Regulatory Board Act, 2006 and all the relevant Regulations
    notified there under from time to time.

    (ii) The Entity shall undertake supply/distribution of CBM/natural gas only


    through cascades and/or set up only the CNG DBS at the location (s)
    specified and shall not either create any infrastructure other than the
    specified CNG DB Station (s) or lay any natural gas pipelines (Steel or
    MDPE) outside the premises of these DB Stations (s) in the area.

    (iii) In case the area in which supply/distribution of CBM/natural gas


    through cascades and/or setting up of CNG DBS are allowed is covered
    under any authorized GA in future, then the Entity shall obtain a prior
    approval from the authorized entity for continuation of such activities
    or shall cease its activities immediately.

    (iv) The Board shall not in any way be held responsible for any legal
    action/ cases arising out of the NOC/Permission given by it, nor shall it
    be made a party in any legal case between the Entity and any other
    entity.

    (v) The Entity alone shall be responsible for any obligation arising out of
    grant of the NOC/Permission given by the Board.

    (vi) That the Entity shall not stand discharged for any claim in respect to
    payment/time period/ performance or any obligation arising out of the
    NOC/Permission granted by the Board.

    (vii) The grant of such NOC/Permission shall in no way be construed as


    amounting to grant of authorization in any form whatsoever for the
    area to the Entity under the Petroleum and Natural Gas Regulatory
    Board (Authorizing Entities to Lay, Build, Operate or Expand City or
    Local Natural Gas Distribution Networks) Regulations, 2008. Further,
    in case the Board does not approve authorization in favour of the Entity
    subsequently, for operating CGD network in the said area, the Entity
    shall be responsible for any consequential losses arising out of grant of
    such permission/NOC
    (viii) Even if the authorized entity grants an approval to the incumbent Entity
    for continuing the activity in the authorized area, the incumbent Entity
    shall continue to be responsible for all liabilities arising out of its
    activities.

    (ix) The Entity shall obtain all other approvals that may be required and
    abide by the statutory requirements as may be applicable.

    (x) PNGRB reserves the right to amend/cancel the NOC/Permission at any


    time.
    *****
    PROFORMA FOR BANK GUARANTEE
    (TO BE STAMPED IN ACCORDANCE WITH STAMP ACT)

    To
    Secretary,
    Petroleum and Natural Gas Regulatory Board,
    1st Floor, World Trade Centre,
    Babar Road,
    New Delhi – 110 001
    In consideration of the Petroleum and Natural Gas Regulatory Board (hereinafter
    referred to as ‘PNGRB) having agreed to Request of
    M/s___________________________________(the Entity) for grant of
    NOC/Permission vide letter No.___________for supply/distribution of CBM/ natural
    gas through cascades / setting up of CNG Daughter Booster Stations (DBS), in the
    areas where Board has not yet authorised any entity for developing or operating
    CGD networks on the terms and conditions contained in the said NOC/Permission,
    which inter-alia provides for production of a Bank Guarantee to the extent of
    Rs.__________________ (in words _________________________) for the service
    by way of security for the due observance and performance of the terms and
    conditions of the said NOC/Permission We _______________ (indicate the name
    and address and other particulars of the Bank) (hereinafter referred to as ‘the Bank’)
    at the request of the Entity hereby irrevocably and unconditionally guarantee to
    PNGRB that the Entity shall render all necessary and efficient services which may be
    required to be rendered by the Entity in connection with and / or for the performance
    of the said Entity and further guarantees that the service which shall be provided by
    the Entity under the said NOC/Permission, shall be actually performed in accordance
    with the terms & conditions of the NOC/Permission to the satisfaction of PNGRB.
    2. We, the Bank, hereby undertake to pay PNGRB an amount not exceeding
    Rs……(Rupees…………………only) against any breach with respect to the Terms &
    Conditions stipulated in the NOC/Permission.

    3. We, the Bank hereby, in pursuance of the terms of the said NOC/Permission,
    absolutely, irrevocably and unconditionally guarantee as primary obligor and not
    merely as surety the payment of an amount of Rs._________________________
    (Rupees _____________________ only) to PNGRB to secure due and faithful
    performance by the Entity of all his/their obligations under the said NOC/Permission.

    4. We, the Bank, hereby agree that the decision of PNGRB as to whether the Entity has
    failed to or neglected to perform or discharge his duties and obligations under the
    said NOC/Permission and / or whether the service is free from deficiencies and
    defects and is in accordance with or not of the terms & conditions of the said
    NOC/Permission and as to the amount payable to PNGRB by the Bank hereunder
    shall be final and binding on the Bank.

    5. WE, THE BANK, DO HEREBY DECLARE AND AGREE that:


    (a) the Guarantee herein contained shall remain in full force for five years from
    date of issue and will be extendable in a block of minimum five years until the
    NOC/Permission expires/is withdrawn by PNGRB.
    (b) the PNGRB shall have the fullest liberty without our consent and without
    affecting in any manner our obligations hereunder to vary any of the terms
    and conditions of the said NOC/Permission or to extend time of performance
    of any obligations by the said NOC/Permission from time to time or to
    postpone for any time or from time to time any of the powers exercisable by
    the PNGRB against the said Entity and to forbear or to enforce any of the
    terms and conditions relating to the said NOC/Permission and we shall not be
    relieved from our liability by reason of any variation or extension being
    granted to the said Entity or forbearance act or omission on the part of
    PNGRB or any indulgence by the Board to the said Entity or to give such
    matter or thing whatsoever which under the law relating to sureties would but
    for this provision, have effect of so relieving us.
    (c) any claim which we have against the Entity shall be subject and subordinate
    to the prior payment and performance in full of all the obligations of us
    hereunder and we will not without prior written consent of PNGRB exercise
    any legal right or remedy of any kind in respect of any such payment or
    performance so long as the obligations of us hereunder remains owing and
    outstanding.
    (d) This Guarantee shall be irrevocable and the obligations of us herein shall not
    be conditional of any prior notice by us or by the Entity.

    6. We the BANK undertake not to revoke this Guarantee during its currency except with
    the previous consent of PNGRB in writing and all claims under this guarantee shall
    be payable at New Delhi.

    7. Notwithstanding anything contained above, our liability, under the Guarantee shall be
    restricted to Rs…… and our Guarantee shall remain in force until….year from the
    date hereof. Unless a demand or claim under this Guarantee is made on us in
    writing within this date i.e. …. all your rights under the Guarantee shall be forfeited
    and we shall be released and discharged from all liabilities there under.

    Dated_______________ day ________________ for _____________________


    (Name of the Bank)
    Witness:
    1…………………………..
    ……………………………
    ……………………………
    2…………………………..
    ……………………………
    ……………………………
    ……………………………

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