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RULES, 2016

PAKISTAN OIL (REFINING, BLENDING, TRANSPORTATION, STORAGE AND MARKETING) RULES, 2016

[Gazette of Pakistan, Extraordinary, Part-II, 25th January, 2016]

S.R.O. 44(I)/2016, dated 22.1.2016.–In exercise of the powers conferred by Section 41 of the Oil and Gas Regulatory Authority Ordinance, 2002 (XVII of 2002), the Oil and Gas Regulatory Authority, with the approval of the Federal Government, is pleased to make the following rules, namely:–

PART – I

GENERAL

1.  Short title and commencement.–(1) These rules may be called the Pakistan Oil (Refining, Blending, Transportation, Storage and Marketing) Rules, 2016.

(2)  They shall come into force at once.

2.  Definitions.–(1) In these rules, unless there is anything repugnant in the subject or context,–

(i)       “adulterate” means to produce, prepare, mix or blend any petroleum product with any other substance which reduces its quality below the required specifications and the terms ‘adulteration’ and ‘adulterated’ shall be construed accordingly:

(ii)      “agent” means a person so appointed, authorized, empowered, or franchised by another person or company engaged in any one or more of the regulated activities and shall include the activities of reclamation plant, grease plant, or incidental distribution or any other activity connected therewith or incidental thereto for the sale, distribution or marketing of superior kerosene oil, light diesel oil, fuel or furnace oil and lubricants at its approved sale points;

(iii)     “blending” includes the activity of blending of lubricating base oils, lubricating oils or greases of the same or different kinds or grades with additives, to produce lubricants or greases, as the case may be, provided that the blending of petroleum products other than lubricating base oils, lubricating oils or greases shall not constitute the activity of blending under the Ordinance or these rules, provided further that the mixing or blending or dosing or additizing of fuels shall not constitute blending;

(iv)     “blending plant” means an oil blending facility where oil blending is carried out and includes all other facilities and equipment used for the purpose;

(v)      “bulk consumer” means a consumer who for self consumption only receives or purchases petroleum products exceeding one thousand litres, contained in receptacle of appropriate capacity;

(vi)     “common carriage” includes an obligation to transport crude oil or petroleum products through the pipeline on a non-discriminatory basis for a fee or otherwise as approved by the Authority from time to time;

(vii)    “common facility”‘ means the storage of crude oil or petroleum products in an oil storage facility on a non-discriminatory basis for a fee or otherwise as approved by the Authority from time to time;

(viii)   ‘‘dealer” means a person appointed, authorized, empowered or franchised by a licensee engaged in marketing or distribution of motor gasoline, diesel, lubricants and greases, at its retail outlets;

(ix)     “District Government or Local Government” means the district government or the local government whichever is applicable, as defined in the respective Law of the Provinces;

(x)      “Environmental Protection Agency” means the Pakistan Environmental Protection Agency established under the Pakistan Environmental Protection Act, 1997 (XXXIV of 1997);

(xi)     “grease plant” means a petroleum grease manufacturing plant licensed under these rules for the purpose of production of various grades of grease;

(xii)    “gross sale” means the total revenue from sales;

(xiii)   “laboratory” means a laboratory, approved by the Authority, for testing of crude oil, petroleum products, lubricating oil and greases;

(xiv)   “lubricant” means finished lubricating oils or greases of laid down specifications produced locally or imported;

(xv)    “lubricant marketing company” means a person other than oil marketing company engaged only in purchase, sale and distribution of lubricant under a licence granted by the Authority;

(xvi)   “oil testing facility” means a laboratory, howsoever called, designated or designed, primarily and substantially engaged for or run on commercial basis for the testing of oil to determine its quality, contents and components;

(xvii)  ‘‘open access” means the non-discriminatory access to oil storage and pipeline facilities for a fee or otherwise as approved by the Authority from time to time;

(xviii) “Ordinance” means the Oil and Gas Regulatory Authority Ordinance, 2002 (XVII of 2002);

(xix)   “petroleum products” includes refined oil products, lubricating oils and greases excluding LPG under Schedule-III;

(xx)    “premises”, in addition to the places where regulated activities are carried on, includes a place in which any petroleum product is kept, stored or sold and includes a storage terminal or depot, retail outlet, distribution outlet, filling-station, godown, truck depot, railway terminal, shop or any other place used for the like purpose;

(xxi)   “reclamation plant” means a licensed facility engaged in the reclamation, refining or processing of used lubricating oils including transformer oil and turbine oil by any method whatsoever towards the completion of a lubricating oil base stock;

(xxii)  “refining” means a process for the purpose of refining of crude oil to produce refined oil products;

(xxiii) “retail outlet’’ means a premises for the distribution of petroleum products owned or operated by an oil marketing company or its dealer for the purpose of selling petroleum products;

(xxiv) “sample” includes specimen or a quantity of petroleum product, taken or obtained or collected by a person, authorized by the Authority, for inspection, testing or examination as evidence of the quality, quantity, composition or weight of the said product; provided that in the case of a refinery or blending plant, samples shall be taken only of petroleum products which are ready for sale and supply to customers and in respect of which a certificate of quality has been issued by such refinery or blending plant;

(xxv)  “Schedule” means a Schedule to these rules;

(xxvi) “specifications” means standards and the specifications for petroleum products which the Federal Government may issue as policy guidelines under the Ordinance;

(xxvii) “storage” includes any oil storage facility or undertaking for storage of oil exceeding five thousand litres; provided that such activity shall not include any retention happening during the ordinary course of transportation;

(xxviii) “substandard petroleum product” means a petroleum product which, in relation to its composition or quality, falls below the required specifications;

(xxix) “technical standards” means the standards prescribed by the Authority under the Ordinance in relation to any regulated activity;

(xxx)  “Technical Standard Compliance Report” means the technical audit report issued by third party inspector, as prescribed by the Authority, certifying that the refinery, blending plant, oil storage facility, pipeline, oil testing facility or retail outlets of an oil marketing company, as the case may be, are in compliance with the technical standards;

(xxxi) “third party inspector” means local or international company appointed by the Authority as third party inspector, having a minimum ten years experience in carrying out inspection of relevant regulated activity for the midstream and downstream oil sector for certification of technical standards specified by the Authority; and

(xxxii) “used lubricating oil” means lubricating oil drained from automotives, industrial machinery, transformer or turbine and includes all types of discarded or waste lubricating and other oils.

(2)  Al other words and expressions used but not defined in these rules shall have the same meanings as are assigned to them in the Ordinance.

PART II

REFINING

3.  Licence.–No person shall construct or operate a refinery without obtaining a licence from the Authority.

4.  Application for licence.–An application for the grant of a licence to construct or operate a refinery shall be made to the Authority before start of construction or operation thereof on the format set out in Part A of Schedule I.

5.  Criteria for grant of licence for new refinery.–(1) The Authority may grant a licence for the construction or operation of a new refinery, subject to such terms and conditions as may be specified therein, if it is satisfied that–

(a)      the location, configuration, infrastructure and any other parameters of the refinery meet the requirements of policy guidelines, if any, issued by the Federal Government under the Ordinance;

(b)      the applicant has the possession of site and has obtained the NOC from the concerned Environmental Protection Agency and District Government or the Local Government whichever is applicable;

(c)      the refinery work programme envisages storage capacity, sufficient to meet the designed capacity of the refinery, for a minimum period of fifteen days for crude oil and seven days for refined oil products;

(d)      the applicant has reached the understanding with the relevant agencies for–

(i)       port handling facility for import and storage of crude oil, if applicable, and export of surplus petroleum products;

(ii)      transportation and supply of petroleum products for local consumption; and

(iii)     availability of all relevant public utilities including electricity, gas and water:

(e)      the applicant has adequate financing capacity or has arranged adequate financing facility to construct or operate the refinery on the basis of due diligence certificate provided by a scheduled bank or financial institution; and

(f)       the applicant has submitted an affidavit from each and all of its Directors to the effect that–

(i)       he is not disqualified or in-eligible to become or remain a Director of the company under the provisions of the Companies Ordinance, 1984(XLVII of 1984);

(ii)      he has not failed to pay any bank advance or loan or any instalment thereof or interest and mark-up thereon;

(iii)     he is not directly or indirectly involved in any criminal case or default of bank advance or loan; and

(iv)     no case is pending against the applicant or its Directors in national or international Courts and tribunals or such other forums howsoever called or designated for recovery of bank loan or advance.

(2)  The Authority shall initially issue a licence for construction for a period of three years during which the infrastructure as given in the work programme shall be completed in accordance with the laid down technical standards. In case of failure to complete the infrastructure within the stipulated period of the licence, the Authority may refuse the extension of the licence or, depending on the nature of non-compliance and subject to penalties under the Ordinance and the rules, may grant extension on such terms and conditions and for such period as deemed appropriate.

(3)  Upon satisfactory completion of the work programme subject to certification by third party inspector, the Authority shall grant licence for operation of a refinery for a maximum period of thirty years, subject to renewal, from time to time, on making of fresh application at least two years prior to the expiry of the existing licence. A licence renewed shall be valid for a maximum period of fifteen years at a time.

6.  Criteria for grant of licence to refinery under construction or existing refinery in operation.–(1) Notwithstanding anything contained in Rule 5 regarding criteria for grant of licence for new refinery, all persons lawfully carrying on the construction or operation of a refinery immediately before the commencement of the Ordinance shall be deemed to be validly carrying on such regulated activity pursuant to the Ordinance and on such terms and conditions as were applicable to them on the date of the commencement of the Ordinance, provided that all such persons shall apply, on the format set out in Part B or B I, as the case may be, of Schedule I, for the grant of licences in accordance with these rules within ninety days of the commencement thereof.

(2)  Upon the making of applications to the Authority for the grant of licences, such persons shall be granted licences on the terms and conditions applicable to them on the date of the commencement of the Ordinance, provided that if the existing refinery fails to establish or maintain the terms and conditions of its construction or operation as applicable to it on the date of the commencement of the Ordinance, the Authority shall either specify such other terms and conditions and for such period as it deems appropriate or may take further action in accordance with these rules.

(3)  A licence granted by the Authority to an existing refinery shall be valid for a maximum period of thirty years subject to renewal, from time to time, on the making of fresh application at least two years prior to the expiry of the existing licence, accompanied by an inspection report from third party inspector confirming that the refinery complies with the technical standards prescribed therefor. A licence renewed shall be valid for a maximum period of fifteen years at a time.

7.  Production programme.–Every refinery shall, at least one month before the commencement of every quarter of a calendar year, submit to the Authority for its information the programme of production which it proposes to follow in that quarter. Any change in or departure from the said programme shall also be intimated to the Authority in writing forthwith.

8.  Specifications of petroleum products.–Every refinery shall produce petroleum products in accordance with the specifications laid down in the policy guidelines issued by the Federal Government under the Ordinance.

9.  Sale of petroleum products.–No refinery shall sell any of its petroleum products to a person other than an oil marketing company, oil blending plant, grease plant, reclamation plant or bulk consumer except through execution of a contract specifying the quantity, supply schedule, specifications and pricing terms.

PART-III

BLENDING

10.  Licence.–No person shall construct or operate a blending plant, reclamation plant or grease plant or produce or pack refined lubricating oils or greases for sale without obtaining a licence from the Authority.

11.  Application for licence.–An application for the grant of licence to construct or operate a blending plant, reclamation plant or grease plant shall be made on the format set out in Part ‘C’ of Schedule I before the start of construction or operation under these rules.

12.  Criteria for grant of licence to construct or operate new oil blending plant, reclamation plant or grease plant.–(1) The Authority may grant a licence for construction or operation of a new oil blending plant, reclamation plant or grease plant on such terms and conditions as may be specified therein if it is satisfied that–

(a)      the location, configuration, infrastructure and any other parameters of the oil blending plant, reclamation plant or grease plant meet the requirements of policy guidelines, if any, issued by the Federal Government under the Ordinance;

(b)      the applicant has the possession of the site and has obtained NOC from the concerned Environmental Protection Agency and District Government or the Local Government whichever is applicable;

(c)      the applicant has given an undertaking to the effect that for the construction or operation he meets the minimum requirements as set out in–

(i)       Part A of Schedule V for the oil blending plant; and

(ii)      Part B of Schedule V for reclamation plant or grease plant;

(d)      the applicant has adequate financing capacity or has arranged adequate financing facility to construct or operate the regulated activity on the basis of due diligence certificate provided by a scheduled bank or financial institution; and

(e)      the applicant has submitted an affidavit from each and all of its Directors to the effect that–

(i)       he is not disqualified or ineligible to become or remain a Director of the company under the provisions of the Companies Ordinance, 1984 (XLVII of 1984);

(ii)      he has not failed to pay any bank advance or loan or any instalment thereof or interest and mark-up thereon;

(iii)     he is not directly or indirectly involved in any criminal case or default of bank advance or loan; and

(iv)     no case is pending against the applicant company or its Directors in national or international Courts or tribunals or other such forums howsoever called or designated for recovery of bank loan or advance.

(2)  The Authority shall initially issue licence for construction for a period of one year during which the infrastructure as given in the work programme shall be completed in accordance with the laid down technical standards. In case of failure to complete the infrastructure within the stipulated period of the licence, the Authority may refuse the extension of the licence or, depending on the nature of non-compliance and subject to penalties under the Ordinance and the rules, may grant extension on such terms and conditions and for such period as deemed appropriate.

(3)  Upon satisfactory completion of the work programme subject to the certification of third party inspector, the Authority shall grant licence for operation of blending plant, reclamation plant or grease plant for a maximum period of twenty years subject to renewal, from time to time, on making of fresh applications at least one year prior to the expiry of the existing licence. A licence renewed shall be valid for a maximum period of ten years at a time.

13.  Criteria for grant of licence to existing blending plant, reclamation plant or grease plant.–(I) Notwithstanding anything contained in Rule 12 regarding criteria for grant of licence for blending plant, reclamation plant or grease plant, all persons lawfully carrying on the construction or operation of the aforesaid regulated activity immediately before the commencement of the Ordinance shall be deemed to be validly carrying on such regulated activity pursuant to the Ordinance and on such terms and conditions as were applicable to them on the date of the commencement of the Ordinance, provided that all such persons shall apply, on the format set out in Part D of Schedule I for the grant of licences in accordance with these rules, within ninety days of the commencement thereof.

(2)  Upon the making of applications to the Authority for the grant of licences, such persons shall be granted licences by the Authority on the terms and conditions applicable to them on the date of the commencement of the Ordinance, provided that if the existing oil blending plant, reclamation plant or grease plant fails to establish or maintain the terms and conditions of its construction or operation, as applicable to it on the date of the commencement of the Ordinance, the Authority shall either specify such other terms and conditions and for such period as it deems appropriate or may take further action in accordance with these rules.

(3)  A licence granted by the Authority to an existing oil blending plant, reclamation plant or grease plant shall be valid for a maximum period of twenty years subject to renewal, from time to time, on the making of fresh application, at least one year prior to the expiry of the existing licence subject to third party certification confirming the compliance of technical standards. A licence renewed shall be valid for a maximum period of ten years at a time.

14.  Production programme–Every blending plant, reclamation plant or grease plant shall submit biannually to the Authority for information, its production programme alongwith the information on the consumption of chemicals and additives. Thereafter it shall submit information for the same period on actual production and actual consumption of chemicals and additives.

15.  Sale of base oils.–No blending plant, reclamation plant or grease plant shall sell except with the prior permission of the Authority in writing or dispose of base oils purchased locally or imported for the purpose of blending or processing.

16.  Product specifications.–Every blending plant, reclamation plant or grease plant shall produce lubricating oil or greases in accordance with the specifications laid down in the policy guidelines issued by the Federal Government under the Ordinance.

17.  Minimum stocks of base oils and lubricating oils.–Every blending plant shall maintain such minimum stocks of base oils and lubricating oils as the Authority may, from time to time by order in writing, specify having due regard to its storage capacity .

18.  Supply of lubricating oils.–No person having licence for the operation of blending plant, reclamation plant or grease plant shall supply or sell refined lubricants to any person other than his authorized dealer or agent or consumer.

19.  Sale, purchase or storage of used lubricating oil.–No person shall sell, purchase or store used lubricating oil except for supply to a licenced reclamation plant or its authorized agent.

20.  Reclamation of lubricating oil prohibited.–No person other than a licensed reclamation plant shall reclaim lubricating oil.

21.  Appointment of collection agent for used lubricating oil.–No reclamation plant shall appoint any person as a collection agent for used lubricating oil unless the credentials of the agent are duly got verified by the licensee through the concerned police station of the area and its record be maintained by the licensee.

PART-IV

TRANSPORTATION

22.  Licence.–No person shall construct or operate a pipeline for oil transportation or any activity of transporting oil through pipelines and associated facilities except where the pipelines are an integral part of a refinery, facility or gathering pipelines situated wholly within the boundaries of an area where petroleum rights apply and are owned or operated by the holder of a petroleum right without obtaining a licence from the Authority.

23.  Application for licence to construct or operate a new pipeline for the transportation of oil for others.–An application for the grant of a licence to construct or operate a pipeline for oil shall be made on the format set out in Part E of Schedule I, before the start of construction or operation of the pipeline under these rules.

24.  Procedure for submission of application for new, pipeline for oil and its processing by the Authority.–The procedure for submission of application for new pipeline for oil and its processing by the Authority shall be followed as set out in Schedule IV.

25.  Criteria for grant of licence to construct and operate a new pipeline for the transportation of oil for others.–(1) The Authority may grant a licence for the construction or operation of a new pipeline subject to such terms and conditions as may be specified therein if it is satisfied that–

(a)      no pipeline exists in the area where the applicant proposes to construct the new pipeline or the existing pipeline does not have the spare capacity to transport the crude oil or petroleum products;

(b)      pipeline route and configuration meet the requirements of policy guidelines, if any, issued by the Federal Government under the Ordinance and the applicant has obtained the NOC from the concerned Environmental Protection Agency and District Government or the Local Government whichever is applicable;

(c)      project financing is based on a maximum debt equity ratio of 70:30;

(d)      the applicant has adequate financing capacity or has arranged adequate financing facility on the basis of due diligence certificate provided by a scheduled bank or financial institution;

(e)      the applicant has submitted an affidavit from each and all of its Directors to the effect that–

(i)       he is not disqualified or in-eligible to become or remain a Director of the company under the provisions of the Companies Ordinance, 1984 (XLVII of 1984);

(ii)      he has not failed to pay any bank advance or loan or any installment thereof or interest and mark-up thereon;

(iii)     he is not directly or indirectly involved in any criminal case or default of bank advance or loan; and

(iv)     no case for recovery of bank loan or advances is pending against the applicant or its Directors in national or international Courts or tribunals or such other forums howsoever called or designated; and

(f)       an undertaking has been obtained by the applicant from the user of the pipeline to the effect that the pipeline shall be operated on commercial basis and throughput guarantee.

(2)  The Authority shall initially issue a licence for construction for a period of three years during which the necessary infrastructure as given in the work programme shall be completed in accordance with the laid down technical standards. In case of failure to complete the necessary infrastructure within the stipulated period of the licence, the Authority may refuse the extension of the licence or depending on the nature of non-compliance and subject to penalties under the Ordinance and the rules, may grant extension on such terms and conditions and for such period as deemed appropriate.

(3)  Upon satisfactory completion of the work programme subject to certification by third party inspector confirming the compliance of technical standards, the Authority shall grant the licence for operation of a pipeline for a maximum period of thirty years subject to renewal, from time to time, on making of fresh application at least two years prior to the expiry of the existing licence. A licence renewed shall be valid for a maximum period of fifteen years at a time.

26.  Criteria for grant of licence to existing pipelines.–(1) Notwithstanding anything contained in Rule 25 regarding criteria for grant of licence for pipeline for oil, all persons lawfully carrying on the construction or operation of pipelines for oil immediately before the commencement of the Ordinance shall be deemed to be validly carrying on such regulated activity pursuant to the Ordinance and on such terms and conditions as were applicable to them on the date of the commencement of the Ordinance, provided that all such persons shall apply for the grant of licences, on the format set out in Part F of Schedule I, in accordance with these rules within ninety days of the commencement thereof.

(2)  Upon the making of applications to the Authority for the grant of licences, such persons shall be granted licences by the Authority on the terms and conditions applicable to them on the date of the commencement of the Ordinance, provided that if the existing pipeline fails to establish or maintain the terms and conditions of its construction or operation, as applicable to it on the date of the commencement of the Ordinance, the Authority shall either specify such other terms and conditions and for such period as it deems appropriate or may take further action in accordance with these rules.

(3)  A licence granted by the Authority to an existing pipeline shall be valid for a maximum period of thirty years subject to renewal, from time to time, on the making of fresh applications at least two years prior to the expiry of the existing licence subject to the certification by third party inspector confirming compliance of the technical standards. A licence renewed shall be valid for a maximum period of fifteen years at a time.

27.  Licence to construct and operate pipeline for the transportation of oil for others to include entire network.–Any additional pipeline that is a pipeline in addition to the pipeline proposed in the application for the grant of the licence shall be constructed for removing operational bottlenecks, if any, subject to compliance with the technical standards provided that if the additional pipeline is meant to cater for the requirement for new consumption centre, a separate licence will be required.

PART – V

STORAGE

28.  Licence.–(1) No person shall construct or operate any oil storage facility or undertake storage of oil for the purpose of commercial storage of crude oil or petroleum products without obtaining licence from the Authority.

(2)  In order to regulate smoothly the activities of construction or operation of oil storage facility and the undertaking of storage of oil in accordance with the laid down technical standards as mentioned in the Ordinance, the Authority may, in its discretion, grant one or two licences for both the regulated activities jointly and severally.

29.  Application for licence to construct or operate an oil storage facility or to store oil.–Application for the grant of licence to construct or operate an oil storage facility or undertake storage of oil in quantities exceeding in the aggregate five thousand litres shall be made on the format set out in Part G of Schedule I, before the start of the construction or the operation as the ease may be.

30.  Criteria for grant of licence to construct and operate a new oil storage facility or to store oil.–(1) The Authority may grant licence for the construction or operation of a new oil storage facility subject to such terms and conditions as may be specified therein if it is satisfied that–

(a)      the location, configuration, infrastructure and any other parameters of the oil storage facility meet the policy guidelines, if any, issued by the Federal Government under the Ordinance;

(b)      the applicant is in possession of the site and has obtained NOC of the concerned Environmental Protection Agency, District Government or the Local Government whichever is applicable, and Ministry of Defence;

(c)      the applicant has reached the understanding for supply of the crude oil or the petroleum products with a refinery, blending plant, oil marketing company or bulk consumer if so authorized;

(d)      the applicant has adequate financing capacity or has arranged adequate financing facility to construct or operate an oil storage facility on the basis of due diligence certificate provided by a scheduled bank or financial institution;

(e)      the applicant has, where required, reached the understanding with the relevant agencies for–

(i)       port handling facility, if applicable; and

(ii)      availability of all utilities, including electricity, gas and water; and

(f)       the applicant has submitted an affidavit from each and all of its Directors to the effect that

(i)       he is not disqualified or in-eligible to become or remain a Director of the company under the provisions of the Ordinance, 1984 (XLVII of 1984);

(ii)      he has not failed to pay any bank advance or loan or any installment thereof or interest and mark-up thereon;

(iii)     he is not directly or indirectly involved in any criminal case or default of bank advance or loan; and

(iv)     no case is pending against the applicant or its Directors in national or international Courts or tribunals or such other forums howsoever called or designated for recovery of bank loan or advance.

(2)  The Authority shall initially issue a licence for construction for a period of one year during which necessary infrastructure as given in the work programme shall be completed in accordance with the laid down technical standards. In case of failure to complete the necessary infrastructure within the stipulated period of the licence, the Authority may refuse the extension of the licence or, depending on the nature of non-compliance and subject to penalties under the Ordinance and the rules, may grant extension on such terms and conditions and for such period as deemed appropriate.

(3)  Upon satisfactory completion of the work programme subject to the certification of third party inspector confirming the compliance of technical standards, the Authority shall grant licence for operation of the oil storage facility for a maximum period of thirty years subject to renewal, from time to time, on making of fresh applications at least two years prior to the expiry of the existing licence. A licence renewed shall be valid for a maximum period of fifteen years at a time.

31.  Criteria for grant of licence for existing oil storage facility.–(1) Notwithstanding anything contained in Rule 30, all persons lawfully carrying on the construction or operation of an oil storage facility immediately before the commencement of the Ordinance shall be deemed to be validly carrying on such regulated activity pursuant to the Ordinance and on such terms and conditions as were applicable to them on the date of the commencement of the Ordinance, provided that all such persons shall apply on the format set out in Part II of Schedule I, for the grant of licences in accordance with these rules within ninety days of the commencement thereof.

(2)  Upon the making of applications to the Authority for the grant of licences such persons shall be granted licences by the Authority on the terms and conditions applicable to them on the date of the commencement of the Ordinance, provided that, if the existing oil storage facility fails to establish or maintain the terms and conditions of its construction or operation as applicable to it on the date of the commencement of the Ordinance, the Authority shall either specify such other terms and conditions and for such period as it deems appropriate or may take further action in accordance with these rules.

(3)  A licence granted by the Authority to an existing oil storage facility shall be valid for a maximum period of thirty years subject to renewal, from time to time, on the making of fresh applications subject to the certification of third party inspector confirming the compliance of technical standards, at least two years prior to the expiry of the existing licence. A licence renewed shall be valid for a maximum period of fifteen years at a time.

32.  Criteria for grant of licence for storage of oil in a non-oil storage.–(1) Upon the making application on the format set out in Part I of Schedule I, the Authority may grant licence for undertaking storage of oil in a non-oil storage subject to such terms and conditions as may be specified therein if it is satisfied that–

(a)      the location, configuration, infrastructure and any other parameters of the premises meet the policy guidelines, if any, issued by the Federal Government under the Ordinance;

(b)      the applicant has the possession of the site and has obtained NOC from the concerned Environmental Protection Agency and District Government or the Local Government whichever is applicable;

(c)      the location and the premises to undertake storage of oil in no way affects the safety of any other person or infrastructure;

(d)      the premises meet the applicable health safety and environment standards for undertaking storage of oil;

(e)      the applicant is in possession of the requisite explosive licence for undertaking the storage of oil; and

(f)       the applicant has submitted an affidavit from each and all of its Directors to the effect that–

(i)       he is not disqualified or in-eligible to become or remain a Director of the company under the provisions of the Companies Ordinance, 1984 (XLVII of 1984);

(ii)      he has not failed to pay any bank advance or loan or any installment thereof or interest and mark-up thereon;

(iii)     he is not directly or indirectly involved in any criminal case or default of bank advance or loan; and

(iv)     no case is pending against the applicant or its Directors in national or international Courts or tribunals or such other forums howsoever called or designated for recovery of bank loan or advance.

(2)  A licence granted by the Authority to undertake storage of oil in a non-oil storage shall be valid for a maximum period of ten years subject to renewal, from time to time, on making of fresh applications at least one year prior to the expiry of the existing licence. A licence renewed shall be valid for a maximum period of five years at a time.

PART-VI

MARKETING

33.  Licence. No person shall undertake the marketing of petroleum products without obtaining a licence from the Authority.

34.  Application for licence.–An application for licence to set up a new oil marketing company to undertake marketing of petroleum products shall be made, on the format set out in Part J of Schedule I, before the start of marketing of petroleum products under these rules.

35.  Criteria for the grant of licence to new oil marketing company.–(1) The Authority may grant a provisional licence for three years for setting up a new oil marketing company, if it is satisfied that,–

(a)      the applicant is a private or public limited company registered under the laws of Pakistan;

(b)      the company is not affiliated in any form with any existing oil marketing company operating in Pakistan;

(c)      the company has a total investment capacity of not less than six billion rupees over an initial period of three years, with minimum upfront equity of three billion rupees supported by a due diligence certificate from a scheduled bank or financial institution;

(d)      the company has submitted an affidavit from each and all of its Directors to the effect that,–

(i)       he is not disqualified or in-eligible to become or remain a Director of the company under the provisions of the Companies Ordinance, 1984 (XLVII of 1984);

(ii)      he has not failed to pay any bank advance or loan or any installment thereof or interest and mark-up thereon;

(iii)     he is not directly or indirectly involved in any criminal case or default of bank advance or loan; and

(iv)     no case is pending against the company or its Directors in national or international Courts or tribunals or such other forums, howsoever called or designated for recovery of bank loan or advance;

(e)      investment plan of the company envisages major investment on infrastructure development of depots, installations etc. and a specific work programme, covering a period of three years, to create minimum storage of twenty days of the proposed sales has been provided;

(f)       the marketing plan for a period of three years envisages adequate coverage in urban, rural and far-flung areas; and

(g)      an undertaking from the company has been obtained to the effect that it shall first uplift petroleum products produced by the local refineries before opting for import of the same.

(2)  The Authority after examining the application made under Rule 34 shall initially issue a licence for a period of three years during which the marketing infrastructure i.e. storages, retail outlets and filling stations etc., as given in the work programme, shall be completed in accordance with the laid down technical standards. In case of failure to complete the aforesaid marketing infrastructure within the stipulated period of provisional licence, the Authority may refuse the extension of the licence or, depending on the nature of non-compliance and subject to penalties under the Ordinance and the rules, may grant extension on such terms and conditions and for such period as deemed appropriate.

(3)  Upon satisfactory completion of the work programme subject to the certification by third party inspector confirming the compliance of technical standards the Authority shall grant licence to an oil marketing company for a maximum period of thirty years subject to renewal, from time to time, on making of fresh application at least two years prior to the expiry of the existing licence alongwith the certification by third party inspector confirming the compliance of the technical standards. A licence renewed shall be valid for a maximum period of fifteen years at a time.

36.  Criteria for grant of licence to existing oil marketing company.–(1) Notwithstanding anything contained in Rule 35, all oil marketing companies lawfully carrying on the marketing of petroleum products immediately before the commencement of the Ordinance shall be deemed to be validly carrying on such regulated activity pursuant to the Ordinance and on such terms and conditions as were applicable to them on the date of the commencement of the Ordinance, provided that all such companies shall apply for the grant of licences, on the formal set out in Part K of Schedule I, in accordance with these rules within ninety days of the commencement thereof.

(2)  Upon the making of application to the Authority, for the grant of licences such oil marketing companies shall be granted licences by the Authority on the terms and conditions applicable to them on the date of the commencement of the Ordinance, provided that if the existing oil marketing company fails to establish or maintain the terms and conditions of the marketing of petroleum products as applicable to it on the date of the commencement of the Ordinance, the Authority shall either specify such other terms and conditions and for such period as it deems appropriate or may take further action in accordance with these rules.

(3)  A licence granted by the Authority to an existing oil marketing company shall be valid for a maximum period of thirty years subject to renewal, from time to time, on the making of fresh application at least two years prior to the expiry of the existing licence. A licence renewed shall be valid for a maximum period of fifteen years at a time.

37.  Minimum stocks of petroleum products.–Every oil marketing company shall maintain such minimum stocks of petroleum products as the Federal Government may, from time to time, by order in writing specify.

38.  Supply of petroleum products.–Every oil marketing company shall supply the petroleum products to its retail outlets and its authorized agent, dealer or bulk consumer having licenced premises for storage of the petroleum products subject to the condition that the petroleum products supplied shall in no case, exceed the storage capacity of the agent, dealer or bulk consumer as the case may be.

39.  Quality and quantity measurement.–(1) Every oil marketing company shall be responsible to ensure correct measurement and supply of petroleum products of the laid down specifications at its retail outlets and shall maintain quarterly profile of such checks for the examination of the Authority as and when called for.

(2)  If the Authority is satisfied that a retail outlet of an oil marketing company is supplying substandard petroleum product or is failing to supply correct quantities of the petroleum products, the Authority may, by order in writing, direct the oil marketing company concerned to suspend supplies of the petroleum products to such retail outlet and thereupon such oil marketing company shall suspend supplies of the petroleum products to such retail outlet except as directed in such order or any subsequent order.

(3)  The Authority may also take action against oil marketing company if it is established that the company has delayed implementation of its order or failed to implement the decision of the Authority.

40.  Maintenance of complaint register.–Every oil marketing company shall maintain consumer complaint register and shall display prominently complaint redressal procedure at its retail outlets.

41.  Display of prices.–Every oil marketing company shall ensure that maximum sale prices of petroleum products are prominently displayed at its retail outlets for the information and convenience of consumers.

42.  Import of petroleum products.–No oil marketing company or authorized importer shall import petroleum products of a quality other than the laid down specifications. Each imported consignment of petroleum products shall be subject to quality clearance from the approved laboratory in accordance with the procedure and testing charges as prescribed by the Authority from time to time.

PART – VII

LUBRICANT MARKETING

43.  Licence.–No person shall undertake lubricant marketing without obtaining a licence from the Authority.

44.  Application for licence to undertake lubricant marketing.–An application for the grant of a licence to set up a new lubricant marketing company to undertake the lubricant marketing shall be made to the Authority before the start of marketing operations on the format set out in Part L of Schedule I.

45.  Criteria for the grant of licence to new lubricant marketing companies.–(1) The Authority may grant a licence for the setting up or operation of a new lubricant marketing company to undertake lubricant marketing, on such terms and conditions as may be specified therein if it is satisfied that–

(i)       the applicant company is a private or public limited company registered under the laws of Pakistan;

(ii)      the company is not affiliated in any form with any existing oil marketing company operating in Pakistan; and

(iii)     the applicant company has submitted a complete investment plan on construction of storages, warehouses, distribution outlets and sources of supply.

(2)  The Authority shall initially issue licence for lubricant marketing for a period of three years during which the investment plan as given by the company shall be completed. In case of failure to implement the investment plan within the stipulated period of the licence, the Authority may refuse the extension of the licence or, depending on the nature of the non-compliance and subject to the penalties under the Ordinance and the rules, may grant extension on such terms and conditions and for such period as deemed appropriate.

(3)  Upon satisfactory implementation of the investment plan, the Authority shall grant licence to operate as a lubricant marketing company for a maximum period of thirty years subject to renewal, from time to time and, at least one year prior to the expiry of the existing licence, on making a fresh application alongwith an inspection report from a third party inspector appointed by the Authority, confirming that the infrastructure of the company including any distribution outlets, depots and operations comply with the laid down technical standards. A licence renewed shall be valid for a maximum period of fifteen years at a time.

46.  Criteria for the grant of licence to existing lubricant marketing companies.–(1) Notwithstanding anything contained in Rule 45 regarding criteria for grant of licence to new lubricant marketing companies, all persons lawfully carrying on operation of the aforesaid regulated activity immediately before the commencement of the Ordinance shall be deemed to be validly carrying on such regulated activity pursuant to the Ordinance and on such terms and conditions as were applicable to them on the date of the commencement of the Ordinance provided that all such persons shall apply, on the format set out in Part–M of Schedule I for the grant of licences in accordance with these rules, within ninety days of the commencement thereof.

(2)  Upon making the applications to the Authority for the grant of licences, such persons may be granted licences by the Authority on the terms and conditions applicable to them on the date of the commencement of the Ordinance provided that if the existing lubricant marketing company fails to establish or maintain the terms and conditions of its operation, as applicable to it on the dale of the commencement of the Ordinance, the Authority shall either specify such other terms and conditions and for such period as it deems appropriate or may take further action in accordance with these rules.

(3)  A licence granted by the Authority to an existing lubricant marketing company shall be valid for a maximum period of thirty years subject to renewal, from time to time, on the making of a fresh application alongwith an inspection report from a third party inspector appointed by the Authority, confirming that the infrastructure of the company including any distribution outlets, depots and operations comply with the laid down technical standards, at least one year prior to the expiry of the existing licence. A licence renewed shall be valid for a maximum period of fifteen years.

47.  Import of lubricants and greases and restrictions on use of lubricating base oils and lubricating oils.–No person shall import for sale in Pakistan lubricant or greases which do not conform to the specifications prescribed therefor.

PART-VIII

OIL TESTING FACILITY

48.  Licence.–No person shall establish or operate an oil testing facility without obtaining a licence from the Authority.

49.  Application for licence to establish or operate an oil testing facility.–An application, for the grant of licence to establish or operate an oil testing facility shall be made on the format set out in Part-N of Schedule I before the start of the construction or operation.

50.  Criteria for grant of licence to establish or operate an oil testing facility.–The Authority may grant licence for the establishment or operation of an oil testing facility subject to such terms and conditions as may be specified therein and on the satisfaction of such criteria as the Authority may deem appropriate for ensuring quality control of petroleum products and according to the laid down specifications. A licence granted by the Authority for establishment or operation of an oil testing facility shall be valid for a maximum period of twenty years subject to renewal, from time to time, and at least two years prior to the expiry of the existing licence on the making of fresh application, accompanied with an inspection report from a third party inspector confirming that the oil testing facility complies with the standards prescribed therefor. A licence renewed shall be valid for a maximum period often years at a time.

51.  Criteria for grant of licence to existing oil testing facility.–(1) Notwithstanding anything contained in Rule 50, all persons lawfully carrying on the construction or operation of an oil testing facility or otherwise lawfully testing oil immediately before the commencement of the Ordinance, shall be deemed to be validly carrying on such construction or operation under the Ordinance and on such terms and conditions as were applicable to such persons on the date of commencement of the Ordinance, provided that such persons, for the grant of licences in accordance with these rules, shall within ninety days of the commencement thereof apply, on the format set out in Part-N of Scheduled-I.

(2)  Upon making of the application under sub-rule (1) to the Authority, such persons shall be granted licences on the terms and conditions applicable to them on the date of the commencement of the Ordinance, provided that if the existing oil testing facility fails to establish or maintain the terms and conditions of its construction or operation as applicable to it on the date of the commencement of the Ordinance, the Authority shall either specify such other terms and conditions and for such period as it deems appropriate or may take further action in accordance with these rules.

(3)  A licence granted by the Authority to existing oil testing facility shall the valid for a maximum period of twenty years subject to renewal, from time to time and at least two years prior to the expiry of the existing licence, on the making of fresh application accompanied with an inspection report from a third party inspector confirming that the oil testing facility complies with the standards prescribed therefor. A licence renewed shall be valid for maximum period of ten years at a time.

52.  Approved Laboratory.–(1) Upon the grant of licence, the Authority may declare the oil testing facility as an approved laboratory.

(2)  The Authority may declare as many laboratories, as it deems fit, to be approved laboratories and specify local limits within which each one of them shall operate or perform its functions.

PART-IX

LICENCE CONDITIONS

53.  Licence conditions.–All licensees, in relation to their regulated activity, shall–

(i)       comply with all laws, rules and regulations relevant to the undertaking of the regulated activity for which a licence is granted to it;

(ii)      supply petroleum products of the laid down specifications;

(iii)     refrain from exercising discrimination against or showing undue preference towards any licensee or any class of consumers;

(iv)     enter into proper commercial contract with other licensee or class of consumers to discharge its obligations;

(v)      supply petroleum products to such far-flung areas as may be specified by the Authority keeping in view the policy guidelines issued by the Federal Government under the Ordinance;

(vi)     provide to the Authority or an authorized officer such information in respect of its business activities, expansion programmes and any other matter relevant for the exercising of any of its powers by the Authority in such form, and within such time as the Authority may in writing, reasonably require in accordance with the provisions of its licences;

(vii)    enter into all contracts on an arm’s length basis and not to enter into any contract or other arrangement with any of its associated companies except with the prior written approval of the Authority;

(viii)   carry out regulated activity in accordance with the technical standards applicable to the midstream and downstream petroleum industry or prescribed by the Authority, from time to time, in consultation with all stakeholders;

(ix)     strictly follow the requirements of the Pakistan Environmental Protection Act, 1997 (XXXIV of 1997) and applicable laws;

(x)      not to abandon any regulated activity, as a part or whole, resulting into discontinuation of supply of petroleum products or its sale in any area without the prior written consent of the Authority;

(xi)     ensure prudence, cost effective and economic efficiency in operation of the regulated activity and cost effective supplies to the consumer;

(xii)    obtain and maintain insurance cover against any accident causing loss of life and property;

(xiii)   maintain planned programme for maintenance and obtain prior approval of the Authority for temporary closure of any operation of the regulated activity;

(xiv)   maintain minimum stocks of crude oil or petroleum products as directed by the Authority having due regard to the storage capacity of the licensee;

(xv)    comply with any other condition which the Authority may impose at the time of grant of the licence; and

(xvi)   be responsible to take all the measures for the benefit of the local labourers as well as welfare of the people and area of the concerned Provinces to give social boost to the region.

PART-X

MISCELLANEOUS

54.  Entry and inspection.–(1) Any person including any District Coordination Officer authorized in writing by the Authority (hereinafter called “Inspection Officer”) may at any reasonable time–

(a)      enter, inspect and examine any premises, facility or installations, owned or operated by an oil marketing company, refinery, blending plant, reclamation plant or grease plant;

(b)      take sample free of any charge or check specifications of oil, produced locally or imported, and for the time being in the possession, custody or control of a person engaged in any regulated activity; and

(c)      make such examination or inquiry, as he considers necessary, for ensuring that the provisions of these rules, or any order made thereunder, are being fully observed.

(2)  Notwithstanding the provisions of sub-rule (1), all members of the Authority shall be deemed to have the authorization and powers of Inspection Officer.

55.  Authorization of the Authority.–The Inspection Officer may further check and satisfy himself that the provisions of the Ordinance and these rules and the decisions made by the Authority are complied with in letter and spirit by all and sundry, provided that such Inspection Officer may take any action in accordance with the Ordinance and these rules and the decisions made by the Authority, in emergency and on the spot, if he considers such action on his part is necessary and thereafter report forthwith to the Chairman and as soon as possible to the Authority for ratification unless the Chairman issues appropriate orders or directions or does not consider it necessary to submit the matter to the Authority.

56.  Facilities to the Inspection Officer.–The owner, manager, proprietor or other person-in-charge of the premises, facility or installation of oil marketing company, refinery, oil storage, blending plant, reclamation plant or grease plant shall afford the Inspection Officer all necessary facilities for making an examination, inquiry, inspection, measurement or for taking any samples.

57.  Authorization to take samples.–The Authority or Inspection Officer may take samples of a petroleum product from a refinery, blending plant, reclamation plant, grease plant, oil marketing company, installation, storage, depot, or retail outlet.

58.  Procedure for sampling and testing.–(1) A11 samples shall be taken, handled, stored and tested in accordance with the American Standard of Testing Material procedures or, in the absence of such procedures, with the appropriate institute of petroleum United Kingdom procedure, or the Ameriean Petroleum Institute procedures.

(2)  The inspection Officer shall divide the sample into two parts and put each of them in separate containers in the presence of the person from whose possession, custody or control the sample is taken and shall seal each container in such a manner as the nature of the petroleum product may require with his own seal and shall also permit the person from whose possession, custody or control the sample is taken, if such person so desires, to affix his own seal or mark on each container.

(3)  The Inspection Officer shall deposit one of the containers with the Authority and send the second to the approved laboratory for analysis of the sample.

(4)  The approved laboratory, upon receiving the sample from the Inspection Officer, shall, within three days thereof or within such period as the Authority may extend from time to time, analyze the same and furnish to the Authority a certificate in the approved form, showing the result of the analysis.

(5)  If the person, from whose possession, custody or control the sample was taken, disputes the correctness of the report of the approved laboratory, the Authority shall send the retained sample to another approved laboratory for analysis and furnishing report thereof to the Authority. The result of the second report shall be treated as final and shall not be called in question except before the Authority.

59. Spot testing.–The Inspection Officer may, in accordance with the method and scheme approved by the Authority, take samples of any motor gasoline and diesel to conduct the spot test in the presence of the representative of the oil marketing company or its agent or dealer and may send the sample to the approved laboratory for confirmation of the result of the spot test. The results of the spot test and the subsequent approved laboratory test shall be forwarded to the Authority and the person concerned on both occasions forthwith. The result of the approved laboratory test shall be treated as final and shall not be called in question, except before the Authority.

60.  Analysis of samples on request.–Any person may make an application in writing to the Authority for instructing an Inspection Officer to take a sample of such petroleum product from such person as may be indicated in the application and to send samples to the approved laboratory for analysis. The costs of such sampling and testing shall be borne by the person making the application and the same shall be deposited in advance with the Authority.

61.   Prohibition of adulteration of petroleum products.–No person shall produce, prepare, mix or blend any petroleum product with any other substance whether or not it is a by-product of petroleum, which reduces its quality or efficacy below the laid down specifications without prior permission of the Authority.

62.  Prohibition of possession of adulterated petroleum products.–No person shall possess any adulterated or substandard petroleum product except for scientific or industrial purposes and in the manner and subject to such conditions as may be approved by the Authority. However, a refinery, oil marketing company or oil blending facility shall use such product, if any, only for reprocessing or re-working in order to meet the laid down specifications of that product.

63.  Prohibition of sale of adulterated petroleum products.–No person shall, either himself or through any other person including an agent or dealer, sell or offer for sale or otherwise dispose of any adulterated or substandard petroleum product except to the persons, for the purposes and on the conditions, as approved by the Authority.

64.  Transfer and assignment of licences.–(1) A licence shall not be transferred, assigned or sublet in any manner whatsoever without prior approval in writing of the Authority.

(2)  As soon as an application is made for transfer, assignment or subletting of the licence, the Authority shall, without undue delay, grant or refuse its consent for transfer, assignment or subletting of the licence by taking into consideration the following factors, namely:–

(a)      the application is bona fide and has been made for the purposes of the Ordinance, rules, the decisions of the Authority and the terms and conditions of the licence; and

(b)      the Authority is satisfied of the bona fides, genuineness, capacity and capability of the transferee, assignee or sublettee as the case may be.

(3)  Transfer, assignment or subletting of a licence may be made on the imposition of such additional terms and conditions and for such period as the Authority may decide.

(4)  Transfer, assignment or subletting of a licence shall be subject to undertaking, supported by affidavits from the transferor, assignor or subletter together with affidavits from the transferee, assignee or subletee to the effect that, notwithstanding the transfer, assignment or subletting both parties shall remain bound to the terms and conditions of the licence and other obligations attached therewith.

(5)  In case the consent is not granted or is withheld or delayed for transfer, assignment or subletting of licence the Authority shall record reasons therefor and communicate the same to both the parties.

65.  Amendment of licences.–(1) If a licensee, for any sufficient cause, requires an amendment in the terms and conditions of the licence, he may make an application to the Authority alongwith depositing the fee as prescribed in Schcdule-II. The Authority may, in its discretion, consider the amendment, as proposed or otherwise, and grant the same if it is in public interest.

(2)  The Authority may suo moto take up the process of amendment in the terms and conditions of a licence without the request of the licensee, for reasons to be recorded in writing after giving right of hearing to the licensee, on the main ground that it is in public interest to do so.

66.  Revocation or suspension of licences.–(1) Where the Authority contemplates revocation of any licence, it may proceed with the matter, after giving an opportunity of show-cause to the licensee, to revoke the licence in accordance with law.

(2)  Where the circumstances of the case warrant urgent action, the Authority may, without giving prior opportunity of show-cause to the licensee, suspend the licence forthwith and thereafter proceed with the matter in accordance with the provisons of sub-rule (1).

(3)  The Authority may revoke the licence where it is of the opinion that–

(a)      the licensee has committed or continues to commit a wilful and prolonged contravention of these rules or terms and conditions of the licence;

(b)      the licensee, in the opinion of the Authority, is unable or is likely to be unable, to discharge the obligations imposed on it under these rules or by the licence;

(c)      services provided by the licensee are interrupted without any reasonable explanation or authorization of the Authority;

(d)      the licensee has wilfully failed, neglected or unreasonably prolonged the start or completion of the construction;

(e)      the licensee has failed, neglected or unreasonably delayed to operate fully or substantially the regulated facility; or

(f)       there appears to be grounds that the licensee is not serious or lacks financial, physical or administrative capabilities to utilize the licence in its letter and spirit:

                   Provided that, if it is in the public interest to do so, instead of revoking the licence, the Authority may permit the licence to remain in force with such amendments or such terms and conditions as it deems appropriate.

67.  Relocation of facilities.–The Authority may order, on its own or on an application by a licensee accompanied by the fee as prescribed in Schedule II, to relocate any facility or pipeline if, in its opinion, it is in the public interest to do so:

Provided that, save in a public emergency, prior to making such an order, the Authority shall provide all affected parties an opportunity of filing motions in support of, or in opposition to, the proposed order.

68.  Fee.–(1) An applicant shall be required to pay the fee for the grant, renewal, extension, assignment, review, transfer, amendment, re-location or re-issuance of a licence as specified in Schedule II.

(2)  Every licensee shall, within thirty days of the issuance of the licence under these rules, pay an annual fee as prescribed in Schedule II.

PART-XI

PENALTIES

69.  Penalty.–(1) Subject to sub-rule (2), a person, who contravenes any provisions of the Ordinance, these rules, terms and conditions of the licence, or the decisions of the Authority shall be punishable with fine which may extend to ten million rupees and in case of a continuing contravention with a further fine which may extend to one million rupees for every day during which such contravention continues.

(2)  In imposing any fine under these rules, the Authority shall keep in view the principle of proportionality of the fine to the gravity of the contravention. Prior to imposing the fine, the Authority shall, in writing, require the person liable to be affected to show-cause in writing as to why the fine may not be imposed.

SCHEDULE I

PART A

[See Rule 4]

APPLICATION FOR GRANT OF LICENCE FOR CONSTRUCTION AND OPERATION OF NEW OIL REFINERY

1.       Name of the Company and address of its registered office:        

2.       Name and address of the Directors (Attach details). ___

3.       Certificate of Registration with Registrar of Companies alongwith memorandum and articles of association                                                                                       

4.       Location of the refinery and designed nameplate, capacity in barrels/day and million tons/year            

5.       EPA clearance certificate (attach certificate) __________

6.       Source of supply of crude oil _______________________

7.       Refinery configuration giving broad details of main units, crude and product storage capacities alongwith proposed production slate, based on 100% designed capacity for a given crude  

8.       Estimated cost of the project:     $ million

                                          Equity        $ million

                                          Loan          $ million

          (attach due diligence certificate from a scheduled bank as per Rule 5(e)

9.       Status of availability of utilities at site (electricity, water, gas etc.)         

10.     Status of availability of port facility/terminal storage 

etc.______________________________________________

11.     Proposed arrangements for receipt of crude oil (i.e. mode of transportation from port/ local source)     

12.     Proposed arrangements for disposal of products for local consumption and export.       

13.     Proposed arrangements for disposal of refinery: solid, liquid and gaseous wastes in accordance with National Environment Quality standards (NEQS) _____

14.     Details of work programme and schedule of 

completion._______________________________________

15.     Proposed details of emergency response system at terminals/storages:

16.     Details of HSE arrangements to be adopted. _________

I hereby undertake that I shall provide such other information or documentation as the Authority, may from time to time, require including without limitation, supplementary information or documentation required by the Authority to clarify the information contained in the application.

Name and signatures of the authorized signatory

Date and place.

SCHEDULE I

PART B

[See Rule 6(1)]

APPLICATION FOR GRANT OF LICENCE TO EXISTING REFINERY

1.       Name of the refinery: _____________________________

2.       Location: ________________________________________

3.       Corporate structure of the company (attach last annual report)

4.       Certificate of Registration with Registrar of Companies alongwith memorandum and articles of association                                                                                       

5.       Year of construction and commissioning______________

6.       Details of expansion or up-gradation already undertaken after commissioning  

7.       Present designed nameplate capacity:- Barrels/ day and Metric tons/ annum    

8.       Configuration/details of main units and crude/product storage capacities          

9.       Details of HSE arrangements: ______________________

10.     Details of emergency response system _______________

11.     International certification on various operational activities        

12.     Sources of supply of crude oil and details of arrangements of its receipt:           

13.     Details of arrangements for disposal of products for local consumption and export:       

14.     Details of arrangements for disposal of refinery solid, liquid and gaseous wastes in accordance with National Environment and quality standards (NEQS): _

15.     Details of latest Environment and safety audit conducted if any and measures taken to remove deficiencies if applicable (attach reports): _______________________

16.     Details of previous permission/terms and conditions applicable on the date of commencement of the OGRA Ordinance i.e. 28th March, 2002, and subsequent change, if any (attach documents).

I hereby undertake that I shall provide such other information or documentation as the Authority, may from time to time, require, including without limitation, supplementary information or documentation required by the Authority to clarify the information contained in the application.

Name and signatures of the authorized signatory

Date and place.

SCHEDULE I

Part BI

[See Rule 6(1)]

APPLICATION FOR GRANT OF LICENCE FOR AN OIL REFINERY ALREADY UNDER CONSTRUCTION

1.       Name of refinery: _________________________________

2.       Name and address of the Directors (Attach details) ____

3.       Location of the refinery and designed nameplate capacity in barrels/day and million tons/year:            

4.       Certificate of Registration with Registrar of Companies alongwith memorandum and articles of association:                                                                                       

5.       EPA clearance certificate (attached certificate): _______

6.       Year of construction: ______________________________

7.       Source of supply of crude oil: _______________________

8.       Configuration/details of main units and crude/products storage capacities:        

9.       Estimated cost of the project:     $ Million

                                          Equity        $ Million

                                          Loan          $ Million

10.     Status of availability of utilities at site (electricity, water, gas etc.)         

11.     Status of availability of port facility/terminal storage 

etc: _____________________________________________

12.     Proposed arrangements for receipt of crude oil (i.e., mode of transportation from port/local source):    

13.     Proposed arrangements for disposal of products for local consumption and export:       

14.     Proposed arrangements for disposal of refinery: solid, liquid and gaseous wastes in accordance with National Environment Quality Standards (NEQS): ____

15.     Details of work programme and schedule of 

completion:_______________________________________

16.     Details of HSE arrangements to be adopted: _________

17.     Proposed details of emergency response system at terminal/storage:–

I hereby undertake that I shall provide such other information or documentation as the Authority, may from time to time, require, including without limitation, supplementary information or documentation required by the Authority to clarify the information contained in the application.

Name and Signatures of the authorized signatory

Date and place.

SCHEDULE I

PART C

[See Rule 11]

APPLICATION FOR GRANT OF LICENCE FOR CONSTRUCTION AND OPERATION OF NEW OIL BLENDING PLANT, RECLAMATION PLANT OR GREASE PLANT

Type of application (Tick one)

      BLENDING PLANT

      RECLAMATION PLANT

      GREASE PLANT

1.       Name and address of the company/ individual ________

2.       Certificate of Registration with Registrar of Companies alongwith memorandum and articles of association or partnership deed _______________________________

3.       Location of the plant ______________________________

4.       Estimated cost of the project _______________________

5.       Financial arrangements for the project:

                                                Equity _____________________

                                                Loan ______________________

6.       Financial due diligence certification 

(attach due diligence certification from bank/financial institution.)

OR

          Details of Income tax paid during the last five years in case of self-financing       (attach details)

7.       Copy of Environmental Protection Agency (EPA) clearance (attach NOC)           

8.       Capacity of the plant and details of various units conforming to requirements prescribed or laid in part A of Schedule  V: _____________________________________

9.       Proposed construction / completion schedule: ________

10.     Proposed sources of lube base oil supplies: ___________ 

                                                         (Attach documents)

11.     Proposed organogram to operate the plant (Technical and managerial personnel alongwith their qualification and experience)

12.     Details of HSE arrangements to be adopted. _________

I hereby undertake that I shall provide such other information or documentation as the Authority, may from time to time, require, including without limitation, supplementary information or documentation required by the authority to clarify the information contained in the application.

Name and signatures of the authorized signatory

Date and place.

SCHEDULE I

PART D

[See Rule 13(1)]

APPLICATION FOR GRANT OF LICENCE TO OPERATE EXISTING OIL BLENDING PLANT, RECLAMATION PLANT OR GREASE PLANT

Type of application (Tick one)

      BLENDING PLANT

      RECLAMATION PLANT

      GREASE PLANT

1.       Name and address of the company/ individual ________

2.       Certificate of Registration with Registrar of Companies alongwith memorandum and articles of association or partnership deed _______________________________

3.       Exact location of the plant _________________________

4.       Capacity of the plant (Metric Tons/annum) ___________

5.       Layout of the plant and details of various units: ______

6.       Sources of supply of lube base oil: ___________________

7.       Details of laboratory equipment: ____________________

8.       Organogram details (Existing personnel along with their qualification and experience)  

9.       Details of production and sale. (Figure in 000 tons) Actual last five years production (year wise)

          Automotive engine       oil    automotive gear oil    others

12.     Details of sales tax paid during the last five years (year-wise) ________ Details of Excise duty paid during the last five years (year-wise) _______________________

13.     Details of existing authorized dealers alongwith their addresses            

14.     Details of terms and conditions applicable on the date of commencement of the OGRA Ordinance i.e. 28th March, 2002:–(Attach documents) ___________________

I hereby undertake that I shall provide such other information or documentation as the Authority, may from time to time, require, including without limitation, supplementary information or documentation required by the authority to clarify the information contained in the application.

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