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  "title": "Oil and Gas Regulatory Authority (OGRA) Ordinance , 2002",
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  "text": "Page 1 of 28  \r\n \r\n \r\nTHE OIL AND GAS REGULATORY AUTHORITY  \r\nORDINANCE, 2002 \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\nCONTENTS \r\n___________ \r\n \r\nPREAMBLE \r\n \r\nCHAPTER I  \r\nGENERAL \r\n \r\n1. Short title, extent and commencement. \r\n2. Definitions. \r\nCHAPTER II \r\nESTABLISHMENT OF OIL AND GAS REGULATORY AUTHORITY \r\n3. Establishment of Authority. \r\n4. Meetings of the Authority. \r\n5. Remuneration and conflict of interest. \r\n6. Powers and functions of the Authority. \r\n7. Tariff. \r\n8. Pricing for retail consumers for natural gas. \r\n9. Authority hearing. \r\n10. Delegation of Powers. \r\n11. Complaints. \r\n12. Appeal, etc. \r\n13. Review of Authority decision. \r\n14. Recruitment of employee. \r\n15. Chairman, Members, employees, experts , consultants and advisers not to be civil \r\nservants. \r\nUpdated till 3.8.2022\r\n \r\nPage 2 of 28  \r\n \r\n16. Chairman, etc., to be public servants. \r\n17. Budget and accounts. \r\n18. Oil and Gas Regulatory Authority Fund. \r\n19. Inspection by public. \r\n20. Submission of yearly report, returns, etc. \r\n \r\nCHAPTER III \r\nPOLICY GUIDELINES \r\n21. Powers of the Federal Government to issue policy guidelines. \r\n \r\nCHAPTER IV \r\nLICENCES \r\n22. Exclusive power to grant licences. \r\n23. Grant of licences. \r\n24. Transfer and assignment of licences. \r\nCHAPTER V  \r\nOFFENCES \r\n25. Offences. \r\n26. Cause damage to facility, plant or equipment etc. \r\n27. Recovery of the value of petroleum stolen, etc. \r\n28. Offences by companies, etc. \r\n29. Cognizance of offences. \r\nCHAPTER VI \r\nMISCELLANEOUS \r\n \r\n30. Power to call for information. \r\n31. Right of access. \r\n32. Easements. \r\n33. Certification of public purpose for compulsory acquisition of land. \r\n34. Technical standards, etc. \r\n35. Records. \r\n36. Existing agreements. \r\n37. Recovery of arrears. \r\n \r\nPage 3 of 28  \r\n38. Confidential information. \r\n39. Immunity. \r\n40. Winding up of the Authority. \r\n41. Power to make rules. \r\n42. Power to make regulations. \r\n43. Ordinance to override other laws. \r\n43A.  Ordinance not applying to certain petroleum activities. \r\n43B. Sale price of RLNG. \r\n \r\n \r\nCHAPTER VII \r\n REPEAL AND SAVINGS \r\n44. Repeal and savings. \r\n45. Application to existing operations. \r\n46. Validation of natural gas prices, etc. \r\n47. Removal of difficulties. \r\n \r\n \r\n \r\n ___________________ \r\n \r\n \r\n \r\n \r\n \r\nPage 4 of 28  \r\nTHE OIL AND GAS REGULATORY AUTHORITY \r\nORDINANCE, 2002. \r\n \r\n*ORDINANCE XVII OF 2002 \r\n \r\n[28th Match, 2002] \r\n \r\nAn Ordinance to provide for the establishment of the Oil and Gas Regulatory Authority \r\n \r\nWHEREAS it is expedient to foster competition, increase private investment and ownership in  \r\nthe midstream and downstream petroleum industry, protect the public interest while respecting \r\nindividual rights and provide effective and efficient regulations and for mat ters connected therewith \r\nor incidental thereto; \r\n \r\nAND WHEREAS the President is satisfied that circumstances exist which render it necessary \r\nto take immediate action; \r\n \r\nNOW, THEREFORE, in pursuance of the Proclamation of Emergency of the fourteenth day \r\nof October, 1999, and the Provisional Constitution Order No. 1 of 1999, read with the Provisional  \r\nConstitution (Amendment) Order No.9 of 1999, and in exercise of all powers enabling him in that  \r\nbehalf, the President of the Islamic Republic of Pakistan is pleased to make and promulgate \r\nthe following Ordinance:⎯ \r\n \r\nCHAPTER I  \r\nGENERAL \r\n \r\n1. Short title, extent and commencement.­ (1) This Ordinance may be called the Oil and \r\nGas Regulatory Authority Ordinance, 2002. \r\n \r\n(2) It extends to the whole of Pakistan including the offshore area. \r\n \r\n(3) It shall, other than the provisions of **sub­section (2)(j) of section 6, sub­section ***(2) of \r\nsection 23, sub­section (3) of section 23, sub­section ****(3)(a) of section 44 and sub­section (3)(b) \r\nof section 44, come into fo rce at once and the provisions of sub­section *****(2)(j) of section 6, \r\nsub­section(2) of section 23, sub­section (3) of section 23, sub­section (3)(a) of section 44 and \r\nsub­section (3)(b) of section 44 shall come into force together or separately on such date or dates as \r\nthe Federal Government may, on the advice of the Authority, by order in the Official Gazette, \r\nappoint. \r\n \r\n*i.e. to appoint the 15­3­2006 to be the date on which the provisions of ­­­ \r\n(i) clause (j) of sub­section (2) of section 6, will be applicable to the extent of National Gas only until Policy Guideline in respect of Oil are issued \r\nby Ministry of Petroleum and Natural Resources; \r\n(ii) sub­section (3) of section 23; and \r\n(iii) clauses (a) and (b) of sub­section (3) if section 44 to the extent and manner specified in Notification No. S.R.O. 236 (I)/2006, dated the 13th \r\nMarch,2006.  of the said Ordinance shall come into force. \r\n** Sub­section (2) (j) of section 6, of this Ordinance shall come into force, w.e.f. 15­01­2006, vide S.R.O. No. 1290 (I)/2005, dated 09­12­2005. \r\n*** Sub­section  (2) of section 23 of this Ordinance shall come into force w.e.f. 01­11-2003, vide S.R.O. 1026(I)/2003, dated 01­11­2003. \r\n****The provisions of sub­section (3) (a) of section 44 in respect of sub­section 3(b) (ii) and (3b) (iii) of said section of the Ordinance shall come \r\ninto force from 5th March, 2003, vide S.R.O. 261(I)/2003 dated 15­03­2003. \r\n*****Sub­section (2)(j) of section 6, of the Ordinance shall come into force, w.e.f. 15­01­2006, vide S.R.O. No. 1290 (I)/2005, dated 09­12­2005. \r\n \r\nPage 5 of 28  \r\n2. Definitions.⎯ In this Ordinance, unless there is anything repugnant in the subject or context,­ \r\n \r\n(i) “Authority” means the Oil and Gas Regulatory Authority established under section \r\n3; \r\n \r\n(ii) “Chairman” means the Member appointed as Chairman of the Authority pursuant \r\nto the provisions of this Ordinance and includes the Vice Chairman when acting \r\nin substitution thereof; \r\n \r\n(iii) “CNG” means natural gas compressed for vehicular or other mobile use; \r\n \r\n(iv) “consumer” means a retail consumer for natural gas, retail consumer for oil or \r\nwholesale consumer; \r\n \r\n(v) “crude oil” means all petroleum other than refined oil products and natural gas, and \r\nwhich  at standard atmospheric conditions of pressure and temperature is in a fluid \r\nphase, including condensate; \r\n \r\n(vi) “decision” means an order, determination, direction or decision of the Authority \r\nmade in accordance with this Ordinance, rules and regulations, and “decide” shall \r\nmean the action taken by the Authority to arrive at such decision; \r\n \r\n(vii) “distribution” means the activity of transporting natural gas through pipelines and \r\nassociated facilities at a pressure which would not ordinarily be expected to \r\nexceed 300 psig or such pressure as the Authority may prescribe from time to time \r\nbut does not include gathering lines situated wholly within the boundaries of an \r\narea to which petroleum rights apply; \r\n \r\n(viii) “facility” includes any LPG processing facility or compression facility, natural \r\ngas or LPG testing facility, natural gas storage facility or crude oil and refined oil \r\nproducts storage facility (other than storage associated with a refinery); \r\n \r\n(ix) “financial year” means the period beginning on the first day of July in a calendar \r\nyear and ending on the thirtieth day of June in the next following calendar year; \r\n \r\n(x) “installation” means port facilities used in load ing, unloading and reloading of \r\npetroleum,           including equipment, terminals, storage tanks and pipelines; \r\n \r\n(xi) 0“licence” means a licence granted under this Ordinance; \r\n \r\n(xii) “licensee” means the grantee or holder of a licence; \r\n \r\n(xiii) “liquefied petroleum gas” or “LPG” means hydrocarbons mainly consisting o f \r\npropane and butane, mixed or unmixed, whether with or without other gases, \r\nwhich are vap ours at room temperature and pressure but can be liquefied on \r\ncompression; \r\n \r\n(xiv) “LNG” means liquefied natural gas; \r\n \r\n \r\n \r\n(xv) “marketing of refined oil products” means the activity of purchasing or obtaining \r\n \r\nPage 6 of 28  \r\nrefined oil products from refineries in Pakistan, or from or through sources abroad, \r\nfor selling,  distributing or marketing directly or through agents or dealers at \r\ndispensing outlets or filling stations; \r\n \r\n(xvi) “Member” means a Member of the Authority, including the Chairman; \r\n \r\n(xvii) “natural gas” means hydrocarbons or mixture of hydrocarbons and othe r gases \r\nwhich at sixty degrees fahrenheit and atmospheric pressure are in the gaseous state \r\n(including gas from gas wells, gas produced with crude oil and residue gas and \r\nproducts resulting from  the processing of gas  1[including RLNG] ) consisting \r\nprimarily of methane, together with any other substance  produced with such \r\nhydrocarbons; \r\n \r\n(xviii) “NGRA” means the Natural Gas Regulatory Authority established under the \r\nNGRA Ordinance. \r\n \r\n(xix) “NGRA Ordinance” means the Natural Gas Regulatory Authority Ordinance, \r\n2000 (I of 2000) ; \r\n \r\n(xx) “offshore area” means the area which is located completely seaward from the high \r\nwater mark along the coast of Pakistan and is within the territorial waters, historic \r\nwaters, Contiguous Zone, Continental Shelf or Exclusive Economic Zone, as \r\nthese terms are defined in the Territorial  Waters and Maritime Zones Act, 1976 \r\n(LXXXII of 1976); \r\n \r\n(xxi) “oil” means all types of petroleum with the exception of natural gas, LPG, LNG \r\nand CNG; \r\n \r\n(xxii) “person” includes any individual or any legal entity including any partnership, \r\nfirm, company, trust or corporation; \r\n \r\n(xxiii) “petroleum” means crude oil, refined oil products and natural gas; \r\n \r\n(xxiv) “petroleum rights” means either a permit for the carrying out of a reconnaissance \r\nsurvey or an exclusive petroleum exploration licence or a development and \r\nproduction lease or a mining lease, and any extension thereto as may be granted \r\nby the Federal  Government under the Regulation of  Mines and  Mineral \r\nDevelopment (Government Control) Act, 1948 (XXIV of 1948); \r\n \r\n(xxv) “pipeline” means any pipe or any system or arrangement of pipes wholly within \r\nPakistan including offshore area, which transports petroleum and includes all \r\nequipment of any kind used for the purpose of, or in connection with, or incidental \r\nto, the operation of a pipeline in transporting, handling of petroleum; \r\n \r\n \r\n \r\n \r\n \r\n1 Ins. by Act No. VIII of 2022, s. 2\r\n \r\nPage 7 of 28  \r\n(xxvi) “policy guidelines” means policies of the Federal Government covering or related \r\nto any or all of the regulated activities which are issued in writing pursuant to a \r\ndecision of the Cabinet of the Federal Government or any committee thereof; \r\n \r\n(xxvii) “prescribe” means prescribed by the rules or regulations; \r\n \r\n(xxviii) “public emergency” means the occurrence of any natural calamity, or an event \r\nwhich threatens public safety, or the sovereignty, security or integrity of Pakistan \r\nand has been so declared by the Federal Government; \r\n \r\n \r\n(xxix) “record” includes an account, book, return, statement, report, chart, table, diagram, \r\nform, survey, image, invoice, letter, map, agreement, memorandum, plan, \r\nvoucher, financial and nonfinancial information, and anything containing \r\ninformation, whether in  writing, digital or in electronic form or represented  or \r\nreproduced by any other means,  and recording of details of electronic data \r\nprocessing systems and programs to illustrate  what the systems and programmes \r\ndo and how they operate; \r\n \r\n(xxx) “refined oil products” means products that result from the refining of crude oil \r\nand includes, inter alia, furnace oil, motor gasoline, diesel, lubricating oils and \r\nother blended products, kerosene, jet fuel and LPG; \r\n \r\n(xxxi) “refinery” means an industrial plant where crude oil is processed or refined; \r\n \r\n(xxxii) “regulated activity” means an activity requiring a licence; \r\n \r\n(xxxiii) “regulations” means regulations made under this Ordinance; \r\n \r\n(xxxiv) “retail consumer for natural gas” means a person who purchases or receives \r\nnatural gas for consumption and not for delivery or resale other than resale for \r\nvehicular use or self­consumption by a licensee in connection with its regulated \r\nactivity; \r\n \r\n(xxxv) “retail consumer for oil” means a person who purchases or receives oil for \r\nconsumption and not for resale; \r\n \r\n1[(xxxva)  “RLNG” means re-gasified LNG;] \r\n \r\n(xxxvi) “rules” means rules made under this Ordinance; \r\n \r\n(xxxvii) “sale” means the sale of natural gas to retail consumers of natural gas but does not \r\ninclude sale of CNG for vehicular use or self­consumption by a licen cee in \r\nconnection with its regulated activity; \r\n \r\n \r\n \r\n \r\n1Ins. by Act No. VIII of 2022  s. 2 \r\n \r\n \r\n \r\n(xxxviii) “strategic petroleum storage” means petroleum stored as fuel reserve in the event \r\n \r\nPage 8 of 28  \r\nof a public emergency; \r\n \r\n(xxxix) “tariff” means subject to  policy guidelines, a  schedule or rate  determined or \r\napproved by the Authority in accordance with the rules; \r\n \r\n(xl)  “transmission” means the activity of transporting natural gas through pipelines \r\nand other facilities at a pressure of not less than 300 psig or such pressure as the \r\nAuthority may  prescribe from time to time except through pipelines situated \r\nwholly within the boundaries of an area to which petroleum rights apply and are \r\nowned or operated by the holder of a petroleum right; and \r\n \r\n(xli)  “transportation” means an activity of transporting oil through pipelines and \r\nassociated facilities, except where the pipelines are an integral part of a refinery, \r\nfacility or gathering  pipelines situated wholly within the boundaries of an area \r\nwhere petroleum rights apply  and are owned or operated by the holder of a \r\npetroleum right. \r\n \r\n______________ \r\n \r\nCHAPTER II \r\nESTABLISHMENT OF OIL AND GAS REGULATORY AUTHORITY \r\n \r\n3. Establishment of Authority.­ (1) The Federal Government hereby establishes a regulatory \r\nauthority, which shall be known as the Oil and Gas Regulatory Authority. \r\n \r\n(2) Subject to  the provisions of  this Ordinance, the Authority shall be  independent in the \r\nperformance of its functions. The Authority shall be a body corporate, having perpetual succession \r\nand a common seal, with power, subject to the provisions of this Ordinance, to enter into contracts, \r\nacquire and hold property, both movable and immovable, and to sue and be sued in its name. \r\n \r\n(3) The Authority shall consist of a Chairman and three additional Members out of whom one \r\nshall be designated as Member Gas, one Member as Member Oil and one Member as Member \r\nFinance. \r\n \r\n1[(4) The Chairman shall be an eminent professional of known integrity and competence with a  \r\nminimum of twenty years of related experience in law, business, engineering, finance, accounting,  \r\neconomics, petroleum, technology, public administration or management.] \r\n \r\n(5) The Member Oil shall be a person who holds an appropriate degree in the relevant field and \r\nis an experienced, eminent professional of known integrity and competence with a minimum of \r\ntwenty years of related experience in the field of oil, including the transportation thereof. \r\n \r\n \r\n \r\n \r\n \r\n1Subs. by  Act No. III of 2011, s. 2\r\n \r\nPage 9 of 28  \r\n(6) The Member Gas shall be a person who holds an appropriate degree in the relevant \r\nfield and is an experienced,  eminent professional of known integrity and competence with a \r\nminimum of twenty years of related experience in the field of natural gas, including the transmission \r\nand distribution thereof. \r\n \r\n(7) The Member Finance shall be a person who holds an appropriate degree in the relevant field \r\nand is an experienced, eminent professional of known integrity and  competence with a minimum of \r\ntwenty years of related experience in the field of corporate finance or accounting. \r\n \r\n(8) Subject to sub­section (9), ⎯ \r\n \r\n(a) the Chairman shall be appointed by the Federal Government for an initial term of \r\nfour              years and shall be eligible for reappointment for a similar term; \r\n \r\n(b) the Member Oil and Member Gas shall be appointed by the Federal Government for \r\ninitial terms of three years and shall be eligible for reappointment for a term of four \r\nyears; and \r\n \r\n(c) the Member Finance shall be appointed by the Federal Government for an initial \r\nterm of two years shall be eligible for reappointment for a term of four years. \r\n \r\n(9) The Chairman and the other Members shall retire on attaining the age of sixty­five years. \r\n \r\n(10) In case of a vacancy occurring due to the death, resignation, retirement or removal of any \r\nMember, the Federal Government shall appoint another qualified person within a period not \r\nexceeding three months from the date the vacancy occurred. \r\n \r\n(11) Any Member may resign from his office by writing under his hand addressed to the \r\nFederal Government. The Federal Government may remove a Member from his office if, on an \r\ninquiry by the Federal Public Service Commission, he is found unable, to perform the functions of his \r\noffice due to mental or physical disability, or to have committed misconduct. \r\n \r\n(12) Any Member may serve a maximum of two terms. \r\n \r\n(13) The Federal Government shall designate one of the Members as Vice­Chairman, who shall \r\nact as Chairman at any time during which the Chairman for any reason is incapable of exercising \r\nthe Chairman’s powers or performing the Chairman’s duties and when so acting, the Vice­Chairman \r\nshall exercise the power and perform the duties imposed on the Chairman by this Ordinance. \r\n \r\n4. Meetings of the Authority.—(1) The Chairman and two other Members shall constitute a  \r\nquorum for a meeting of the Authority requiring a decision by the Authority. \r\n \r\n(2) The decision of the Authority shall be taken by the majority of its Members and in case of \r\na tie, the Member presiding shall have a casting vote. \r\n \r\n(3) All decisions of the Authority shall be in writing and identify the decision of the Chairman and  \r\nother Members separately. \r\n \r\n \r\n(4) No act, proceeding or  decision of  the Authority shall be  invalid by  reason only of  the \r\n \r\nPage 10 of 28  \r\nexistence of a vacancy in, or defect in the constitution of the Authority. \r\n \r\n(5) The Chairman shall call all meetings of the Authority. The Chairman shall also call \r\nmeetings of the A uthority immediately on being requested in writing to do so by at least two \r\nMembers of the Authority. \r\n \r\n(6) Each Member shall have reasonable notice of the time, place of the meeting and matter on \r\nwhich a decision shall be taken. \r\n \r\n5. Remuneration and conflict of interest.—(1) The Members shall be paid such remuneration \r\nfor their respective terms of office as may be determined by the Federal Government in advance of \r\ntheir appointment which remuneration shall not be varied to their disadvantage during their term in \r\noffice. \r\n \r\n(2) No person shall be appointed by the Federal Government as a Member if he has any direct \r\nor indirect financial interest in, or has any connection which might reasonably be viewed as giving \r\nrise to a conflict of interest with any person involved in any regulated activity. No person appointed \r\nas a Member shall during his term in office have or maintain any direct or indirect financial interest \r\nin any person involved in any regulated activity. Members shall not at any time during their term of \r\noffice engage themselves in any other services, business, vocation or employment with any other \r\nperson. \r\n \r\n(3) No Member shall take part in any decision, if such Member is in any way, whether directly \r\nor indirectly, concerned or interested in the decision, nor shall such member’s presence count for \r\nthe purpose of forming a quorum at the time of any such decision. \r\n \r\n(4) Every Member who knowingly contravenes  any of the  provisions of sub­section (2) and sub­  \r\nsection (3) shall, on inquiry by the Federal Public Service Commission, be guilty of misconduct. \r\n \r\n(5) Subject to sub­section (6), it shall not be lawful for any Member, for so long as he holds \r\noffice  and for a period of two years thereafter, to seek or hold any office or  employment nor to \r\nacquire or purchase (whether in his name or otherwise) any interest in any corporation, partnership, \r\ntrust, firm or company carrying on­ \r\n \r\n(a) business in any regulated activity; or \r\n \r\n(b) the business of providing professional or Advisery services to any person \r\nundertaking any regulated activity. \r\n \r\n(6) A Member may, before the expiration of two years after he has ceased to hold that office,  \r\nenter into the employment of or accept any professional or Advisery relationship with any \r\ncorporation, partnership, trust, or company, carrying on business in any phase of a regulated activity, \r\nprovided he has obtained written approval of the Federal Government which shall not be unduly  \r\ndenied. \r\n \r\n(7) A Member shall not be in contravention of sub­sec tions (2), (3) or (4), if he is receiving \r\nany pension benefits, while serving the Authority, due to him from a prior employment with any \r\nperson. \r\n \r\n \r\n \r\n \r\nPage 11 of 28  \r\n6. Powers and functions of the Authority. ⎯(1) In addition to such others powers and \r\nfunctions as may be imposed on it or transferred under this Ordinance, the Authority shall be \r\nexclusively responsible for granting licences for the  carrying out  of regulated activities and  \r\nregulating such activities. \r\n \r\n(2) Without prejudice to the generality of the foregoing, the Authority shall⎯ \r\n \r\n(a) in the manner prescribed in the rules, grant, issue, and renew licences, modify, \r\namend, extend, suspend, review, cancel  and reissue, revoke or terminate any \r\nlicence for the undertaking of any regulated activity and to prescribe requirements \r\nto be satisfied by applicants for the grant of licence; \r\n \r\n(b) in consultation with licensees, specify, performance  and service standards  and \r\nother conditions for undertaking any regulated activity; \r\n \r\n(c) prescribe a uniform form of accounts and accounting practices to be complied with \r\nby licensees; \r\n \r\n(d)  administer, enforce and certify standards and other conditions for undertaking any \r\nregulated activity specified in clauses (b) and (e); \r\n \r\n(e) in consultation with licensees specify and review standards for the equipment and \r\nmaterials to be used in undertaking any regulated activity; \r\n \r\n(f) promote and ensure the observance of efficient practices, where applicable, in the \r\ntransmission, distribution, processing, refining, marketing, storage of petroleum \r\nand transportation of petroleum by pipelines; \r\n \r\n(g) promote effective competition and efficiency in the activities within its jurisdiction \r\nof the Authority; \r\n \r\n(h) monitor and enforce compliance by licensees with the conditions of licences; \r\n \r\n(i) resolve complaints and other claims against licensees for contravention of the \r\nprovisions of this Ordinance, rules or regulation; \r\n \r\n(j) ensure the provision of open access, common carrier and common operator as may \r\nbe deemed necessary or expedient by the Authority in the public interest based on \r\nan application made by an interested party to the Authority and provided that⎯ \r\n \r\n(i) the Authority decides excess capacity is available; and \r\n \r\n(ii)  any decision relating to open access, common carrier and common operator \r\nadequately compensates the owner of  the relevant facility, pipeline  or \r\ninstallation; \r\n \r\n(k) resolve disputes between licensees, between licensees and any other person \r\nregarding a regulated activity; \r\n \r\n \r\n(l) provide for the submission, filing, recording and timely and useful dissemination \r\n \r\nPage 12 of 28  \r\nof information regarding the regulated activities; \r\n \r\n(m) subject to section 41, make rules under this Ordinance; \r\n \r\n(n) subject to section 42, make regulations pursuant to this Ordinance; \r\n \r\n(o) safeguard the public interest, including the national security interest, of Pakistan in \r\nrelation to regulated activities in accordance with this Ordinance, rules and \r\nregulations; \r\n \r\n(p) prescribe fines for contravention of the provisions of this Ordinance, rules,    \r\nregulations and terms and conditions of a licence or a decision of the Authority; \r\n \r\n(q) protect the interests of all stakeholders including the consumers and the licensees \r\nin accordance with the provisions of this Ordinance and the rules; \r\n \r\n(r) administer or establish prices, for those c ategories of petroleum for which the \r\nFederal Government establishes prices and may delegate the function to the \r\nAuthority from time to time, subject to⎯ \r\n \r\n(i) section 21; and \r\n \r\n(ii) any existing contract or agreement specifying prices; \r\n \r\n(s) prescribe, review, approve and regulate tariffs for regulated activities pertaining to \r\nnatural gas and operations of the licensees for natural gas and marketing of refined \r\noil products; \r\n \r\n(t) in consultation with the Federal Government and licensees for natural gas \r\ndetermine for each such licensee a reasonable rate of return which may be earned \r\nby such licensees in the  undertaking of its regulated activity pertaining to natural \r\ngas, keeping in view all the circumstances; \r\n \r\n \r\n(u) oversee the capital expenditure to be made by licensees for natural gas in \r\nconnection with any regulated activity pertaining to natural gas; \r\n \r\n(v) prescribe procedures and standards for investment programmes by licensees for \r\nnatural gas; \r\n \r\n(w) determine the well­head gas prices for the producers of natural gas in accordance \r\nwith the relevant agreements or contracts,  and notify  the same in  the official  \r\nGazette; \r\n \r\n(x) enforce standards and specifications for refined oil products as notified by the \r\nFederal Government; and \r\n \r\n(y) perform any other function or exercise power as may be incidental or consequential \r\nto the performance of any of its functions or the exercise of any of its powers. \r\n \r\n(3) The Authority shall impose and collect such fees and other charges in respect of any of its  \r\nfunctions at such rates as ma y be determined, from time to time, by the Authority in accordance \r\n \r\nPage 13 of 28  \r\nwith the rules. \r\n \r\n7. Tariff.—(1) Subject to policy guidelines, the Authority shall determine or approve tariff for \r\nregulated activities whose licences provide for such determination or such approval or where \r\nauthorized by this Ordinance. \r\n \r\n(2) The criteria for determination, approval, modification and revision of tariffs shall be \r\nprescribed in the rules and in the terms and conditions of each licence and shall, inter alia , include⎯ \r\n \r\n \r\n(a) provision for the protection of users of regulated activities and consumers against \r\nmonopolistic or oligopolistic pricing; \r\n \r\n(b) cost of research, development and capital investment programme; \r\n \r\n(c) provision of reasonable returns to attract investment of the quantitative and \r\nqualitative improvements of regulated activities; \r\n \r\n(d) encouragement and reward of efficiency; \r\n \r\n(e) sending of appropriate price signals regarding the relative abundance or scarcity of \r\nsupply of such regulated activity; \r\n \r\n(f) minimizing economic distortions; and \r\n \r\n(g) keeping in view the costs of alternate or substitute sources of energy. \r\n \r\n8.  Pricing for retail consumers for natural gas .⎯ (1) The Authority shall determine an \r\nestimate of the total revenue requirement of each  licensee for natural  gas engaged in transmission, \r\ndistribution and the sale of natural gas to a retail consumer for natural gas, in accordance with the \r\nrules, and on that basis advise the Federal Government the prescribed price of natural gas for each  \r\ncategory of retail consumer for natural gas. \r\n \r\n(2) A licensee for natural gas referred  to in sub­section (1), shall submit for review by the  \r\nAuthority its total revenue requirement after incorporating the actual changes in the well­head \r\nprices, as notified by the Authority 1[cost of the imported gases] and other relevant factors and the \r\nAuthority shall advise the Federal  Government promptly of the revised prescribed prices for the \r\nlicensee for natural gas. \r\n \r\n(3) The Federal Government shall, within forty days of the advice referred to in sub­sections \r\n(1) and (2), advise the Authority of  the minimum charges and the sale price for each category of \r\nretail consumer for natural gas for notification in the official Gazette by the Authority of the \r\nprescribed price as determined in sub­sections (1) and (2), the minimum charges and the sale prices \r\nfor each category of retail consumers for natural gas 2[:] \r\n \r\n 2[Provided that the Federal Government shall ensure that the sale  prices so advised are not \r\nless than the revenue requirement determined by the authority.]  \r\n \r\n1 Ins. by Act No. VIII of 2022  s. 3 \r\n2 Subs. and added by Act No. VII of 2022, s. 2\r\n \r\nPage 14 of 28  \r\n \r\n1[(4) If the Federal Government fails to advise the Authority within the time specified in sub -\r\nsection (3), the category wise prescribed prices so determined by the Authority under subsections (1) \r\nand (2), as the case may be, shall be notified by the Authority as the category wise sale prices2[:] \r\n \r\n2[Provided that sub-sections (1) to (4) shall not be applicable in case of RLNG price determined \r\nunder section 43B.] \r\n \r\n(5) Each licensee for natural gas shall pay to the Federal Government the development surcharge \r\nin respect of each unit of natural gas sold in a manner as prescribed by the Federal Government under \r\nthe Natural Gas (Development Surcharge) Ordinance, 1967 (I of 1967) and the rules made thereunder. \r\nAny amount paid by a licensee under this subsection shall be an expenditure for which allowance shall \r\nbe made in computing profits or gains under the Income Tax Ordinance, 2001 (XLIX of 2001) for the \r\npurposes of this subsection.] \r\n \r\n(6) In this section ⎯ \r\n \r\n(a) “category of retail consumers for natural gas” means a category of retail consumers \r\nfor natural gas designated as such by the order of the Federal Government; \r\n \r\n(b) “development surcharge” means the amount payable by each licensee for natural gas \r\nand calculated in accordance with the rules and which represents, in respect of each \r\ncategory of retail consumer for natural gas to which it is applicable, the amount, if \r\nany, by which the sale price exceeds the prescribed price; \r\n \r\n(c) “licence for natural gas” means a licence  for transmission, distribution or sale of \r\nnatural gas to a retail consumer for natural gas granted pursuant to sub­section (1) of \r\nsection 23; \r\n \r\n(d) “licensee for natural gas” means a holder of a licence for natural gas; \r\n \r\n(e) “minimum charges” means the amount a licensee for natural gas may charge a retail \r\nconsumer for natural gas as notified, from time to time, under this section; \r\n \r\n(f) “prescribed price” means the amount determined under this section, which represents \r\nthe amount a licensee for natural gas would be entitled to receive from each category \r\nof its retail  consumers for natural gas in order to achieve its total revenue \r\nrequirement; \r\n \r\n(g) “sale price” means the price notified under this section at which a licensee for natural \r\ngas is authorised under this Ordinance and licence to sell natural gas to that category \r\nof retail consumer for natural gas; and \r\n \r\n(h) “total revenue requirement” means for each financial year, that total amount of \r\nrevenue determined by the Authority for each licensee for natural gas so as to ensure \r\nit achieves the rate of return provided in its licence for natural gas. \r\n \r\n \r\n \r\n1Subs. by  Act No. VII of 2022, s. 2  \r\n2Subs. and added by Act No. VIII of 2022  s .3 \r\n \r\nPage 15 of 28  \r\n9. Authority hearing.— 1[(1)] Unless otherwise expressly provided in this Ordinance or any \r\nrule or regulation, any decision that the Authority has the power to make, may be made on its own \r\nmotion or initiative after the holding of a meeting of the Authority, and without giving of notice to \r\nthe public, and without holding a hearing. \r\n \r\nProvided that if it appears to the Authority that its decision relating to a regulated activity may  \r\ndirectly and adversely affect the rights of a person, the Authority shall, prior to reaching the decision, \r\ngive the person an opportunity of being heard, including presentation o f evidence relevant to the  \r\ndecision. \r\n \r\n1[(2) The Authority may decide, without giving notice to the public and without holding a \r\npublic hearing, if the prescribed price is required to be revised only on account of revision in well-\r\nhead gas prices and cost of imported gases.] \r\n \r\n10. Delegation of powers.⎯ (1) The Authority may, by general or special order, delegate to \r\nany officer of the Authority the pwer to exercise on behalf of the Authority any of its powers, duties \r\nor functions under this Ordinance subject to such conditions as it may think fit to impose. \r\n \r\n(2) Notwithstanding the  provisions of  sub­section (1), the powers of  the Authority to  grant \r\nlicences (excluding licences for transportation, filling or marketing of LPG, LNG or CNG), determine  \r\ntariffs and revenue requirement (where applicable) and prescribe rules and regulations shall only be \r\nexercised in a meeting of the Authority. The power of the Authority to grant licences for \r\ntransportation, filling or marketing of LPG, LNG or CNG may only be delegated to a Member of the  \r\nAuthority. \r\n \r\n11. Complaints.­ (1) Any interested person may file a written complaint with the Authority  \r\nagainst a licensee for contravention of any provision of this Ordinance or of any rule or regulation. \r\n \r\n(2) The Authority shall, on receipt of a complaint, provide an opportunity to the complainant as \r\nwell as to the licensee, or any other person against whom such complaint has been made to state its \r\ncase before taking action thereon. \r\n \r\n12. Appeal, etc.—(1) Any person aggrieved by any order or decision of the delegates of a  \r\npower delegated by the Authority under section 10 may, within thirty days of the receipt of such  \r\ndecision or order, prefer  appeal to th e Authority and Authority shall hear  and decide the  appeal \r\nwithin ninety days from the date of its presentation. \r\n \r\n(2) In relation to any decision concerning a regulated activity, the High Court may, if it is satisfied \r\nthat no other adequate remedy is provided, on application of an aggrieved party, make an order­ \r\n \r\n(a) directing the Authority to refrain from doing anything it is not permitted by law to do, \r\nor to do anything the Authority is required by law to do; or \r\n \r\n(b) declaring that any act done or proceeding taken by the Authority has been done or taken \r\nwithout lawful authority and is of no legal effect \r\n \r\n \r\n \r\n1Sub-section numbered (1) and added Sub-Section (2) by Act No. VIII of 2022  s. 4 \r\n \r\n \r\n \r\nPage 16 of 28  \r\n(3) Where.⎯ \r\n \r\n(a) an application is made to a High Court for an order under sub­section (2); and \r\n \r\n(b) the making of an interim order would have the effect of prejudicing or interfering with the  \r\ncarrying out of a public work or of otherwise being harmful to public interest or State  \r\nproperty or impeding the assessment or collection of public revenues,  the Court shall not \r\nmake an interim order unless the Attorney­General has been given notice of the \r\napplication with a copy thereof to the Authority and the Attorney General or any person \r\nauthorised by him in that behalf has had an opportunity of being heard and the Court, \r\nfor reasons to be recorded in writing, is satisfied that the interim order— \r\n \r\n(i) would not have such effect as aforesaid; or \r\n \r\n(ii) would have the effect of suspending an order or proceeding which on the \r\nface of the record is without jurisdiction. \r\n \r\n(4) An interim order made by a High Court on an application made to it to question the validity or  \r\nlegal effect of any order, proceeding taken or act done by the Authority shall cease to have effect on \r\nexpiration of a period of six months following the day on which it is made, unless the case is finally  \r\ndecided, or the interim order is withdrawn, by the Court earlier. \r\n \r\n(5) Every case in which, on application under sub­section (2), the High Court has made an \r\ninterim order shall be disposed of by the High Court on merits within six months from the day on \r\nwhich it is  made, unless the High Court is prevented from doing so for sufficient cause to be \r\nrecorded. \r\n \r\n13. Review of Authority decision.⎯ The Authority may review, rescind, change, alter or vary \r\nany decision, or may rehear an application before deciding it in the event of a change in \r\ncircumstances or the discovery of evidence which, in the opinion of the Authority, could not have \r\nreasonably been discovered at the time of the decision, or (in the case of a rehearing) at the time of \r\nthe original hearing if consideration of the change in circumstances or of the new evidence would \r\nmaterially alter the decision. \r\n \r\n14. Recruitment of employee.⎯ (1) The Authority may, from time to time, employ officers, \r\nmembers of its staff, experts, consultants, advisers, and other employees on such terms and \r\nconditions as it may deem fit. \r\n \r\n(2) The Authority shall prescribe  by regulations the  procedure for appointment, promotion, \r\ntermination and other terms and conditions of employment of persons employed under sub­section  \r\n(1). \r\n \r\n15. Chairman, Members, employees, experts, consultants and advisers not to be civil \r\nservants.⎯The Chairman, Members, employees of the Authority or experts, consultants or advisers \r\nemployed by the Authority shall be governed by the terms and conditions of their appointment and \r\nshall not be deemed to be civil servants within the meaning of the Civil Ser vants Act, 1973 (LXXI \r\nof 1973). \r\n \r\n16. Chairman, etc., to be public servants.⎯ The Chairman, Members, employees, experts, \r\nconsultants and advisers of the Authority shall, when acting or purporting to act in pursuance of  \r\n \r\n \r\n \r\nPage 17 of 28  \r\n \r\nany of the provisions of this Ordinance or the rules or regulations, be deemed to be public servants \r\nwithin the meaning of section 21 of the Pakistan Penal Code (Act XLV of 1860). \r\n \r\n17. Budget and accounts.⎯ (1) The Authority, in respect of each financial year, shall prepare \r\nits own budget in accordance with prescribed procedure and shall maintain complete and accurate \r\nbooks of accounts of its actual expenses and receipts, and of the Oil and Gas Regulatory Authority \r\nFund. \r\n \r\n(2) The budget prepared by the Authority shall be reviewed by a Budget Committee consisting \r\nof one representative  each of the Authority, the Federal Government and the private sector \r\nnominated by the Federal Government. The private sector nominee shall not have any conflict of \r\ninterest in the Authority’s oversight of regulated activities. The Budget Committee shall ensure that \r\nthe Authority complies with all requirements of this Ordinance, rules and regulations pertaining to \r\nthe budget. The Budget Committee shall take its decisions by simple majority of its members. \r\n \r\n(3) The accounts of the Authority shall be audited annually by the Auditor­General of Pakistan \r\nand one or more auditors who are chartered  accountants within the meaning of the Chartered  \r\nAccountants Ordinance, 1961 (X of 1961), appointed  by the  Authority in consultation with the  \r\nAuditor­General of Pakistan from a panel of chartered accountants proposed by the Budget \r\nCommittee. \r\n \r\n18. Oil and Gas Regulatory Authority Fund.⎯ (1) There shall be a fund to be known as the \r\nOil and Gas Regulatory Authority Fund which shal l vest in the Authority and shall be utilized by \r\nthe Authority to meet its expenses and charges properly incurred in connection with the carrying out \r\nof its functions and duties imposed or transferred to it under this Ordinance, including without \r\nlimitation the payment of salaries and other remuneration to the Chairman, Members, employees, \r\nexperts, consultants and advisers of the Authority. \r\n \r\n(2) The Oil and Gas Regulatory Authority Fund shall consist of⎯ \r\n \r\n(a) charges and fees including licence  fees assessed and collected by the Authority to \r\nrecover the reasonable costs of regulated activities under this Ordinance. \r\n \r\n(b) fines and other penalties imposed and collected by the Authority as specified under \r\nthis Ordinance; \r\n \r\n(c) proceeds received by the Authority from the sale of data, publications, reports, maps, \r\nand other information; \r\n \r\n(d) loans obtained by the Authority. All loans to be obtained by the Authority shall be \r\nwith the approval of the Budget Committee; \r\n \r\n(e) grants obtained by the Authority; and \r\n \r\n(f) proceeds of any investments made by the Authority in utilizing any amounts of the \r\nOil and Gas Regulatory Fund which are not required for immediate use. All \r\ninvestments to be  made by the Authority shall be with the approval of the Budget \r\nCommittee. \r\n \r\n19. Inspection by publics.—(1) Subject to section 38, the Authority shall maintain public files \r\n \r\nPage 18 of 28  \r\nthat shall be kept open in convenient form for public inspection and examination during reasonable \r\nbusiness hours, on payment of such reasonable fees as the Authority may prescribe. \r\n \r\n(2) Subject to  procedures and standards for confidentiality prescribed by the  Authority, the \r\nAuthority’s files shall include all relevant documents to be maintained and indexed as the Authority \r\ndeems fit. \r\n \r\n20. Submission of yearly report, returns, etc.⎯ (1) The Authority shall submit to the Federal \r\nGovernment, and publish, as soon as possible after the end of every financial year but before the \r\nlast day of December the next following year­ \r\n \r\n(a) a report on the conduct of its affairs for that financial year, including anticipated \r\ndevelopments for the following financial year; and \r\n \r\n(b) a report on the state  of the petroleum industry in Pakistan, in so far as it relates to  \r\nregulated activities, identifying the ownership, operation, management, control, \r\nefficiency and cost of regulated activities, amount of production, transportation, \r\ntransmission and  distribution capacity,  present and future domestic demand  for \r\npetroleum and other matters related to regulated activities. \r\n \r\n(2) The Federal Government may direct the Authority to supply any return, statement, estimate, \r\nstatistics or other information regarding any matter under the Authority, and the Authority shall  \r\nexpeditiously comply with such direction. \r\n \r\n______ \r\n \r\nCHAPTER III \r\nPOLICY GUIDELINES \r\n \r\n21. Powers of the Federal Government to issue policy guidelines.⎯(1) The Federal \r\nGovernment may, as and when it considers necessary, issue policy guidelines to the Authority on  \r\nmatters of policy not inconsistent with the provisions of this Ordinance or the rules and the Authority \r\nshall comply with the policy guidelines in the exercise of its powers and functions and in making  \r\ndecisions. \r\n \r\n(2) Without prejudice to the generality of th e foregoing, the Federal Government may issue \r\npolicy guidelines in relation to⎯ \r\n \r\n(a) planning for infrastructure development; \r\n \r\n(b) pricing of petroleum including development surcharge as defined in section 8 and \r\nthe petroleum development levy as defined in the Petroleum Products (Petroleum \r\nDevelopment Levy) Ordinance, 1961 (XXV of 1961) \r\n \r\n(c) standards and specifications for refined oil products; \r\n \r\n(d) supply of natural gas and refined oil products to service new areas and provision of \r\nfinancial incentives in cases where the service is not economically viable; \r\n \r\n(e) establishment and maintenance of the strategic petroleum storage; \r\n \r\n(f) open access, common carrier and common operator; \r\n \r\nPage 19 of 28  \r\n \r\n(g) marketing of refined oil products; and \r\n \r\n(h) tariff applicable to petroleum. \r\n \r\n \r\n__________ \r\n \r\nCHAPTER IV \r\n LICENCES \r\n \r\n22. Exclusive power to grant licences.⎯(1) The Authority shall have the exclusive power, to \r\nbe exercise in the manner prescribed in the  rules, to grant, issue, renew, extend,  modify, amend, \r\nsuspend, review, cancel  and reissue, revoke or terminate, a  licence in respect  of any regulated \r\nactivity. \r\n \r\n(2) If a licensee is of the opinion that it is not financially viable for it to supply natural gas to a \r\nparticular area based on the tariff applicable to it, it shall give reasons to the Authority therefor. \r\n \r\n(3) If the Authority agrees with the licensee that it is not financially viable for such licensee to \r\nsupply natural gas to a particular area based on the tariff applicable to it unless the Federal \r\nGovernment makes special financial arrangements with the licensee, it shall report the matter to the \r\nFederal Government and the licensee shall not be obligated to supply natural gas to the said area  \r\nunless suitable financial arrangements are made by the Federal Government. \r\n \r\n(4) On receipt of instructions from the Authority, the licensee shall supply natural gas to the \r\nsaid area within such time as the Authority may specify. \r\n \r\n23. Grant of licences.⎯ (1) No person shall ⎯ \r\n \r\n(a) construct or operate any pipeline for natural gas; \r\n \r\n(b) construct or operate any natural gas testing facility or natural gas storage facility; \r\n \r\n(c) construct or operate any natural gas installation; or \r\n \r\n(d) undertake transmission, distribution or sale of natural gas, unless a general or specific \r\nlicence to undertake such activity has been issued and is in full force and effect and \r\nthe person is the licensee. \r\n \r\n*(2) No person shall.⎯ \r\n \r\n(a) construct or operate any pipeline for LPG; \r\n \r\n(b) construct or operate any LPG or LNG production or processing facility; LNG, LPG \r\nor CNG testing facility or LPG, LNG or CNG storage facility; \r\n \r\n(c) construct or operate any installation relating to LPG or LNG; or \r\n \r\n(d) undertake transporting, filling, marketing or distributing of LPG, LNG or CNG, \r\n \r\n \r\n* Sub-section  (2) Section  23 of this Ordinance shall come into force w.e.f. 1.11.2003, vide S.R.O. No. 1026(I)/2003, dated 1.11.2003. \r\nunless a general or specific licence to undertake such activity has been issued and is in full force and \r\n \r\nPage 20 of 28  \r\neffect and the person is the licensee. \r\n \r\n(3) No person shall⎯ \r\n \r\n(a) construct or operate any pipeline for oil; \r\n \r\n(b) construct or operate any oil testing facility; oil storage facility (other than storage \r\nassociated with a refinery); or oil blending facility; \r\n \r\n(c) construct or operate any installation relating to oil; \r\n \r\n(d) construct or operate any refinery; \r\n \r\n(e) undertake storage of oil; or \r\n \r\n(f) undertake marketing of refined oil products, \r\n \r\nunless a general or specific licence to undertake such activity has been issued and is in full force and \r\neffect and the person is the licensee. \r\n \r\n(4) An application for the  licence shall be submitted to the  authority on the prescribed form \r\nand in accordance with the rules. \r\n \r\n(5) An application under sub­section (1), (2) and (3) shall be accompanied by the prescribed fee. \r\n \r\n(6) On receiving an application for a licence, the Authority may grant the licence subject to \r\nsuch conditions, restrictions or stipulations as may be set out in, or attached to, the licence. \r\n \r\n24. Transfer and assignment of licences. ⎯(1) No licence shall be transferred or assigned \r\nwithout the consent in writing of the Authority. The Authority may without undue delay, consent to \r\nthe transfer or assignment of a licence subject to such conditions, restrictions and stipulations, as \r\nprovided in the rules, that the Authority may determine, or the Authority may, for such reasons as  \r\nmay be recorded, and by a decision in writing giving the reasons thereof, refuse to consent to the  \r\ntransfer or assignment of a licence. \r\n \r\n(2) An application for the transfer or assignment shall be submitted to the Authority on the  \r\nprescribed form and in accordance with the regulations. \r\n \r\n(3) An application under sub­section (2) shall be accompanied by the prescribed fee, if any. \r\n \r\n(4) A transfer or assignment of a licence shall have no effect until the Authority has consented \r\nto the transfer or assignment. \r\n \r\n \r\n____________\r\n \r\nPage 21 of 28  \r\nCHAPTER V  \r\nOFFENCES \r\n \r\n25. Offences.⎯ (1) Any person who⎯ \r\n \r\n(a) undertakes any regulated activity in contravention of this Ordinance; \r\n \r\n(b) does any act with the intention of interfering, without authorization, with any \r\nregulated activity, and thereby causes damage to any facility, plant, equipment or \r\nmaterial employed for such regulated activity; \r\n \r\n(c) without lawful excuse, willfully or recklessly undertakes any regulated activity \r\nwhich causes physical damage to the person or property of another; or \r\n \r\n(d) steals petroleum; \r\n \r\nshall be guilty of an offence punishable with imprisonment for a term which may extend to two \r\nyears,  or with fine, or with both, for an offence under clause (a) or clause (c) and three years, or \r\nwith fine, or with both, for an offence under clause (b) or clause (d). \r\n \r\n(2) Any person who attempts or aids, abets, counsels or procures the commission of any \r\noffence under this Ordinance shall be punishable with the same punishment provided for the \r\noffence. \r\n \r\n(3) The provisions of sub­sections (1) and (2) shall be in addition to, and not in derogation of, \r\nany law for the time being in force. \r\n \r\n26. Cause damage to facility, plant or equipment, etc.⎯ If any person willfully or recklessly \r\ndamages any facility, plant, equipment or material employed in any regulated activity, he shall, on \r\na reference by the licensee, be liable to pay such amount as the Authority may determine for making \r\ngood such damage, and the amount so determined shall be recoverable as arrears of land revenue. \r\n \r\n27. Recovery of the value of petroleum stolen, etc.⎯ Where any person has stolen, \r\nunauthorizedly obtained or otherwise used, petroleum for which he has not paid, such person shall \r\nbe liable to pay the value of the petroleum stolen, obtained or used as may be determined in \r\naccordance with the rules. \r\n \r\n28. Offences by companies, etc.⎯ Where the person guilty of an offence under this Ordinance \r\nis a company, corporation , partnership or firm every director, or partner of the company, \r\ncorporation, partnership or firm as the case may be, shall, unless he proves t hat the offence was \r\ncommitted without his knowledge or consent, be guilty of the offence. \r\n \r\n29. Cognizance of offences.⎯ No court shall take cognizance of an offence punishable under \r\nthe Ordinance except on a complaint in writing made by the Authority or a person authorized by it \r\nin this behalf. \r\n \r\n_________ \r\n \r\nCHAPTER VI  \r\n \r\nPage 22 of 28  \r\nMISCELLANEOUS \r\n \r\n30. Power to call for information.⎯ The Authority may call for  any pertinent information \r\nrequired by it for carrying out the purposes of this Ordinance from any person involved, directly or \r\nindirectly, in the provision of any regulated activity or any matter incidental or consequential \r\nthereto. Any person called upon to provide such information shall do so within the period prescribed \r\nby the Authority and his failure so to do shall be punishable by the imposition of such penalty as \r\nmay be prescribed. \r\n \r\n31. Right of access. Subject to the terms of its licence, licensees shall have the right upon not  \r\nless than twenty­fo ur hours notice and at reasonable times, to enter premises or property for the  \r\npurposes of inspection, repair and maintenance of all facilities, equipment and apparatus relating to \r\nthe regulated activities, the collection of payments, lawful disconnection,  and the examination of \r\nthe suitability of property for construction or the installation of facilities, equipment or apparatus \r\nrelating to the regulated activities: \r\n \r\nProvided that no such notice will be required to be given if such entry is necessary to respond \r\nto,  and remedy, a situation endangering public safety caused by a regulated activity. \r\n \r\n32. Easements.⎯(1) Subject to the provisions of sub­section (2), a licensee may lay, place, \r\nconstruct or install on under or over any land such works as may be necessary for such licensee to  \r\nsatisfy its service obligations under the rules and its licence including such other actions as may be \r\nnecessary to render the work safe and efficient and the licensee shall pay compensation in \r\naccordance with rules to any person adversely affected by any disturbance or damage that may be  \r\ncaused thereby and such compensation may include annual payment for use of land. \r\n \r\n(2) Before entering on any land for the purposes specified in sub­section  (1) the licensee shall \r\ngive notice of the intended action to the owner or occupier of the land. The owner or the occupier \r\nof any land may file objections with the Authority within thirty days of such notice. \r\n \r\n(3) If an objection to the notice required by sub­section (2) is filed, the Authority shall hold an \r\nenquiry and provide all interested parties an opportunity of being heard. Upon conclusion of the  \r\nenquiry, the Authority may, either uncondition ally or subject to such terms and conditions as may \r\nbe deemed in the public interest, by a decision in writing, authorize or prohibit any of the acts \r\nspecified in the notice. \r\n \r\n33. Certification of public purpose for compulsory acquisition of land. The Authority may, \r\nin the manner and on such terms and conditions, as may be prescribed in the rules, on an application \r\nby a licensee, certify that the requirement of a licensee to acquire a property is for a public purpose \r\nand for the purposes of the Land Acquisition Act, 1894 (I of 1894), the certificate of the Authority \r\nshall be conclusive proof that the proposed acquisition for such licensee is for a public purpose. \r\n \r\n34. Technical standards, etc .⎯ (1) The Authority shall after consulting interested persons \r\nand subject to the rules, prescribe by regulations, technical standards of materials, equipment and \r\nother resources as may be required for undertaking any of the regulated activities and may prescribe \r\ndifferent standards for different classes of equipment and may establish procedures for the testing \r\nof any such equipment. \r\n \r\n \r\n(2) It shall be  a mandatory requirement of all licensees  that they comply with all relevant  \r\ntechnical standards established by the Authority. \r\n \r\nPage 23 of 28  \r\n \r\n35. Records.⎯ (1) The Authority may prescribe, by the regulations, the records that  are \r\nrequired to be filed with the Authority by persons who are applicants for licences or who are \r\notherwise involved in the petroleum industry. \r\n \r\n(2) Each person who is required by this Ordinance or the rules or the regulations to maintain  \r\nrecords shall produce those records at all reasonable times when directed to do so by the Chairman, \r\nany Member or by any person authorized by the Authority, and s hall afford such person facilities \r\nfor inspecting the records, making copies of and taking extracts therefrom. \r\n \r\n36. Existing agreements .⎯ If on the commencement of this Ordinance there exists an \r\nagreement in respect of, or dealing with, a regulated activity to which the Federal Government is a \r\nparty, in the event of any inconsistency between the provisions of this Ordinance, the rules or th e \r\nregulations, the provisions of the agreement shall prevail to the extent of the inconsistency. \r\n \r\n37. Recovery of arrears.⎯(1) All amounts due to the Authority may be recovered as arrears \r\nof land revenue. \r\n \r\n(2) The Federal Government may prescribe a summary procedure for recovery of sums due to  \r\nlicensees. \r\n \r\n38. Confidential information.—(1) Except as provided under the regulations, no person shall \r\ncommunicate, or allow to be communicated, any record or information obtained under this \r\nOrdinance to a person not legally entitled to that record or information or allow any person not \r\nlegally entitled to that record or information to have access to any record obtained under this \r\nOrdinance. \r\n \r\n(2) A person who knowingly receives records or information obtained under  this Ordinance \r\nshall hold the record or information subject to the same restrictions under sub­section (1) as apply \r\nto the person from whom the records or information were received. \r\n \r\n39. Immunity.⎯ Except as expressly provided in this Ordinance, no suit, prosecution or other \r\nlegal proceedings shall lie against the Authority, the Chairman or any Member, employee, expert, \r\nconsultant or adviser of the Authority in respect of anything done or intended to be done in good \r\nfaith under this Ordinance, the rules or regulations. \r\n \r\n40. Winding up of the Authority .⎯ No provision of any law relating to the winding up of \r\nbodies corporate shall apply to the Authority. The Authority shall only be wound up by an Ordinance \r\nor Act of Parliament. \r\n \r\n41. Power to make rules .⎯ (1) The Authority may, with the approval of the Federal \r\nGovernment, which approval shall not be unduly delayed or unreasonably withheld, make rules for \r\ncarrying out the purposes of this Ordinance. On approval of rules by the Federal Government, the \r\nFederal Government shall notify the same in the official Gazette. \r\n \r\n(2) Without prejudice to the generality of the foregoing powers, such rules may provide for all \r\nor any of the following matters, namely:⎯ \r\n \r\n \r\n \r\n(a) determination (where applicable) of rates and tariffs for regulated activities; \r\n \r\n \r\nPage 24 of 28  \r\n(b) the terms and conditions for the grant, extension, modification, amendment, \r\nissuance, renewal, suspension, review, cancellation and reissue, revocation, \r\ntermination or transfer  of a licence and including provision of information or \r\nrecords; \r\n \r\n(c) provision of fines for contravention of this Ordinance, the rules, the regulations and \r\nterms and conditions of licences; \r\n \r\n(d) promoting fair competition; \r\n \r\n(e) inspection and audit of regulated activities; \r\n \r\n(f) review of the decisions of the Authority; \r\n \r\n(g) abandonment of a regulated activity; \r\n \r\n(h) access and inspection by the Authority of the regulated activities and provision of \r\npenalties for preventing the Authority to carry out inspection; \r\n \r\n(i) actions the Authority may take in respect of regulated activities in case of public \r\nemergency and escape of petroleum from a regulated activity; \r\n \r\n(j) extension of facilities and services to supply natural gas to new areas and persons \r\nrespectively; \r\n \r\n(k) levy of fees; \r\n \r\n(l) enforcing the terms and conditions of licences and decisions of the Authority; \r\n \r\n(m) determination of the prescribed price for retail consumers of natural gas; \r\n \r\n(n) procedure for appointment of the Budget Committee members and rules for operation; \r\n \r\n(o) implementation of policy guidelines; \r\n \r\n(p) open access, common carrier and common operator; and \r\n \r\n(q) any other matter incidental or consequential to the implementation of the purposes \r\nof the Ordinance. \r\n \r\n(3) The power to make rules conferred by this section, except for the first occasion, shall \r\nbe subject to the condition of previous publication.  \r\n \r\n42. Power to make regulations .⎯ (1) The Authority may, by notification in the official \r\nGazette, make regulations, not inconsistent with the provisions of this Ordinance or the rules, for \r\nthe carrying out of its functions under this Ordinance. \r\n \r\n(2) In particular and without prejudice to the generality of the foregoing powers, such \r\nregulations may provide for all or any of the following matters, namely:⎯ \r\n \r\n \r\n(a) maintenance and submission of records by any person involved directly or indirectly \r\nin a regulated activity and the inspection of the records by the Authority; \r\n \r\n \r\nPage 25 of 28  \r\n(b) establishment of technical standards and their monitoring for the design, \r\nconstruction, testing, operation, maintenance and abandonment of a regulated \r\nactivity; \r\n \r\n(c) administration of the Oil and Gas Regulatory Authority Fund; \r\n \r\n(d) establishment of terms and conditions of employment and remuneration policies for \r\nstaff, consultants and advisers of the Authority; \r\n \r\n(e) procedure for resolving disputes amongst the licensees, consumers and licensees, \r\nand users of open access facilities; \r\n \r\n(f) procedures, process and practice for carrying out the functions of the Authority; \r\n \r\n(g) procedure for appeal of decision or order made by delegates pursuant to section 10; \r\n \r\n(h) prescription of forms and procedures for an application for a regulated activity and \r\nthe time for submission; and \r\n \r\n(i) any other matter incidental or consequential to the performance of the functions of \r\nthe Authority. \r\n \r\n43. Ordinance to override other laws.⎯ (1) The provisions of this Ordinance, the rules and \r\nthe regulations, and any licences issued hereunder shall have effect notwithstanding anything to the \r\ncontrary contained in any other law, rule or regulation, for the time being in force, and any such \r\nlaw, rule or regulation shall, to the extent of any inconsistency, cease to have any effect on the \r\ncommencement of this Ordinance and the Authority shall, subject to the provisions of this \r\nOrdinance,  be exclusively empowered to determine the matters in its jurisdiction as set out in this \r\nOrdinance. \r\n \r\n(2) Nothing in this ordinance, or any repeal effected thereby, shall affect or be deemed to affect \r\nanything done, action taken, proceedings commenced, directions given, instruments executed  or \r\norders, rules or regulations issued under or in pursuance of any law repealed are amended by this  \r\nOrdinance and any such things, actions, proceedings, directions, instruments or orders shall, if in  \r\nforce on the commencement of this Ordinance, continue to be in force and have effect as if the same \r\nwere respectively done, taken, commenced, given executed or issued under this Ordinance. \r\n \r\n1[43A. Ordinance not apply  to certain petroleum activities .— Nothing in this Ordinance  \r\nshall apply to upstream petroleum activities and such activities shall not be deemed to be regulated \r\nactivities. \r\n \r\nProvided that where any holder of petroleum right claims transportation or transmission tariff for \r\npipeline connecting the petroleum field to the point of delivery, the provisions of this Ordinance shall \r\napply. \r\n \r\n1New section 43A ins. by the Oil and Gas Regulatory Authority (Amdt.) Ordinance, 2002 (CXV of 2002), s. 2. \r\n \r\n \r\n \r\nExplanation.⎯ for the purposes of this section, the expressions “upstream petroleum \r\nactivities” means all activities except activities related to LPG and LNG production or LPG and \r\nLNG processing facilities, carried out by the holder of any petroleum right prior to delivery of \r\npetroleum to any purchaser thereof other than a purchaser who is a retail consumer for natural gas or \r\n \r\nPage 26 of 28  \r\nretail consumer for oil.] \r\n \r\n1[43B. Sale price of RLNG. —Notwithstanding anything to the contrary contained in this \r\nOrdinance or any other law for the time being in force, the Authority, in accordance with the policy \r\nguidelines issued by the Federal Government from time to time, shall determine and notify the sale \r\nprice of RLNG to be charged by a licensee from its consumer.] \r\n \r\n____________ \r\n \r\nCHAPTER VII \r\nREPEAL AND SAVINGS \r\n \r\n44. Repeal and savings.⎯(1) The Natural Gas Regulatory Authority Ordinance, 2000 (I of \r\n2000) is hereby repealed. \r\n \r\n(2) On the commencement of this Ordinance⎯ \r\n \r\n(a) all properties, assets and liabilities pertaining to the NGRA established under the \r\nNGRA Ordinance shall vest in, be and always deemed to have been the properties, \r\nassets and  liabilities, as the case may be, of the Authority established under this \r\nOrdinance; \r\n \r\n(b) notwithstanding the provisions of section 3 and sub­sections (2) and (5) of section 5, \r\nthe Chairman and Members, employees, experts, consultants or advisers appointed \r\npursuant to the NGRA Ordinance, shall be deemed to be and always deemed to have \r\nbeen appointed under this Ordinance on the  same terms and  conditions for the  \r\nunexpired portion of their respective terms to which they were appointed under the \r\nNGRA Ordinance; \r\n \r\n(c) any agreement, order or determination made by the NGRA or under the NGRA \r\nOrdinance shall continue to be in force as though the same has been made by the Oil \r\nand Gas Regulatory Authority or under this Ordinance and shall  always deemed to \r\nhave been so made; \r\n \r\n(d) subject to section 43 any licence issued under the NGRA Ordinance, shall continue \r\nto be in force as if the same has been granted under this Ordinance and shall always \r\ndeemed to have been so granted; \r\n \r\n(e) if an offence was committed as defined under the NGRA Ordinance prior to the \r\ncommencement of this Ordinance, the penalty to be imposed upon conviction for \r\nthat offence shall be the penalty authorized or required to be imposed by this \r\nOrdinance; and \r\n \r\n \r\n 1Ins. new Section 43B by Act No. VIII of 2022, s. 5 \r\nPage 27 of 28 \r\n \r\n \r\n \r\n \r\n(f) all rules and regulations prescribed or issued under the NGRA Ordinance shall be \r\ndeemed to have been prescribed or issued under this Ordinance and shall always be \r\ndeemed to have been so prescribed or issued. \r\n \r\n(3) (a)  The definition for “Authority” set out in the rules referred to in clause (b) \r\nshall be substituted by the following definition, namely:⎯ \r\n \r\n“Authority” means the Oil and Gas Regulatory Authority established pursuant to \r\nthe Oil and Gas Regulatory Authority Ordinance, 2002. \r\n \r\n(b) the substitution referred to in clause (a) shall apply to the following rules, namely:⎯ \r\n \r\n(i) the Pakistan Petroleum (Refining, Blending and Marketing) Rules, 1971; \r\n \r\n(ii) the compressed Natural Gas (Production and Marketing) Rules, 1992;  \r\n \r\n(iii) the Liquefied Petroleum Gas (Production and Distribution) Rules, 2001; and \r\n \r\n(c) the Pakistan Petroleum (Refining, Blending and Marketing) Rules, 1971, the \r\nCompressed Natural Gas (Production and Marketing) Rules, 1992, and the \r\nLiquefied Petroleum Gas  (Production and Distribution) Rules, 2001, shall stand \r\nrepealed to the extent that any rules promulgated pursuant to this Ordinance provide \r\nfor the matters relating to⎯ \r\n \r\n(i) refining and blending of petroleum, in the case of the Pakistan Petroleum \r\n(Refining, Blending and Marketing) Rules, 1971; \r\n \r\n(ii) CNG, in the case of the Compressed Natural Gas (Production and Marketing) \r\nRules, 1992; and \r\n \r\n(iii) LPG, in the case of Liquefied Petroleum Gas (Production and Distribution) \r\nRules, 2001. \r\n \r\n45. Application to existing operations.⎯(1) Notwithstanding anything contained in this \r\nOrdinance, all persons lawfully carrying on regulated activities immediately before the \r\ncommencement of this Ordinance shall be deemed to be validly carrying on such regulated activities \r\npursuant to this Ordinance:⎯ \r\n \r\n(a) in case of all persons, other than those undertaking the transmission, distribution \r\nor sale of natural gas, on such terms and conditions as were applicable to them on \r\nthe date of commencement of this Ordinance; and \r\n \r\n(b) in case of all persons undertaking the transmission, distribution or sale of natural \r\ngas, on  such terms and conditions as were applicable to them pursuant to this \r\nOrdinance and the relevant rules, \r\n \r\non the condition that all such persons shall apply for licences in accordance with the relevant \r\nrules. \r\n \r\n \r\nPage 28 of 28 \r\n \r\n \r\n \r\n \r\n(2) Upon application for issuance of licences being made to the Authority by⎯ \r\n \r\n(a) persons, other than those undertaking the transmission, distribution or sale of \r\nnatural gas, such persons shall be issued licences by the  Authority, on the terms \r\nand conditions applicable to them on the date of commencement of this Ordinance; \r\nand \r\n \r\n(b) all persons undertaking the transmission, distribution or sale of natural gas shall \r\nbe issued licences by the Authority on the terms and conditions applicable to them \r\npursuant to this Ordinance and the relevant rules. \r\n \r\n46. Validation of natural gas prices, etc.  Notwithstanding anything contained in any other \r\nlaw for the time being in force, notification or  any decision of a Court the sale price of natural gas \r\nand the  minimum charges fixed and all notifications related thereto issued by the Federal  \r\nGovernment from time to time after the commencement and before the repeal of the Natural Gas \r\nRegulatory Authority Ordinance, 2001 (I of 2000) shall be deemed to have been validly fixed and \r\nissued under sub­section (3) of section 19 of the said Ordinance and price of natural gas and the \r\nminimum charges so fixed and notified shall be deemed to have been validly fixed and notified and \r\nshall have, and shall be deemed always to have had, effect accordingly. \r\n \r\n47. Removal of difficulties . If any difficulty arises in giving effect to any provision of this  \r\nOrdinance, the Federal Government may make such order not inconsistent with the provisions of \r\nthe Ordinance, as may appear to it to be necessary for the purpose of removing the difficulty: \r\n \r\nProvided that no such order shall be made after the expiry of two years from the commencement \r\nof this Ordinance.",
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