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This is a Bill, not an Act. For current law, see the Acts databases.


GAS SUPPLY (GAS QUALITY SPECIFICATIONS) BILL 2009

                       Western Australia


      Gas Supply (Gas Quality Specifications)
                   Bill 2009

                          CONTENTS


         Part 1 -- Preliminary
1.       Short title                                          2
2.       Commencement                                         2
3.       Terms used                                           2
         Part 2 -- Gas quality and capacity of
              PIA pipelines
4.       Purposes of this Part                                6
5.       PIA pipelines                                        6
6.       Controlling the quality of gas flowing into PIA
         pipelines                                            6
7.       Content of pipeline impact agreements                8
8.       Formation of pipeline impact agreements              9
9.       Pipeline impact agreements -- dispute resolution     11
10.      Short-term situations                               11
11.      Compensation for adverse effects on certain
         pipeline users                                      12
12.      Injunctions                                         13
         Part 3 -- Modifying gas contracts
13.      Standard gas quality specifications for pipelines   15
14.      Modifying gas contracts                             15




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Gas Supply (Gas Quality Specifications) Bill 2009



Contents



              Part 4 -- Compensation for certain
                   gas consumers and operators of
                   gas transmission pipelines and
                   gas storage facilities
      15.     Terms used                                          17
      16.     Regulations may provide for compensation scheme     17
      17.     Compensation scheme for certain gas consumers       18
      18.     Compensation scheme for operators of Part 4
              pipelines and operators of gas storage facilities   19
      19.     Double compensation                                 20
      20.     Part 4 pipeline becoming PIA pipeline               21
              Part 5 -- Rectifying consumer
                   installations
              Division 1 -- Preliminary
      21.     Purposes of this Part                               23
      22.     Terms used                                          23
              Division 2 -- Rectification programme
      23.     Director to establish and implement the
              rectification programme                             25
      24.     Payments into and out of the Account                26
      25.     Surplus funds to be repaid to gas producers upon
              completion of the rectification programme           26
      26.     Application of Financial Management Act 2006
              and Auditor General Act 2006                        27
      27.     Annual report of Department to include
              information about the rectification programme       27
              Division 3 -- Reimbursement scheme
      28.     Regulations may provide for reimbursement
              scheme                                              27
      29.     Minister may determine beginning of the
              reimbursement period                                29
              Part 6 -- General provisions
      30.     Relationship to Gas Access Laws                     30
      31.     Coordinator to monitor and inquire into             30
      32.     Exemptions may be granted by Minister               30
      33.     Review of Act                                       31


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                Gas Supply (Gas Quality Specifications) Bill 2009



                                                        Contents



34.   Regulations                                          31
      Part 7 -- Acts amended
      Division 1 -- Energy Coordination Act 1994
            amended
35.   Act amended                                          34
36.   Section 26 amended                                   34
      Division 2 -- Gas Pipelines Access (Western
            Australia) Act 1998 amended
37.   Act amended                                          34
38.   Section 73 amended                                   34
      Defined Terms




                                                          page iii
                           Western Australia


                     LEGISLATIVE ASSEMBLY

                      (As amended in Committee)


       Gas Supply (Gas Quality Specifications)
                    Bill 2009

                               A Bill for


An Act to provide for --
•    the supply of gas that does not meet certain gas quality
    specifications; and
•    the control of the quality of such gas and its impact on gas
    transmission pipelines; and
•    the payment of compensation to certain gas consumers,
    operators of gas transmission pipelines and operators of gas
    storage facilities who are adversely affected by receiving such
    gas; and
•    a programme to modify or replace certain gas appliances and
    installations that might be rendered unsafe by the supply of such
    gas, in preparation for its supply; and
•    the operation of an account for contributions by gas producers
    to the costs of the programme,
and for related purposes.



The Parliament of Western Australia enacts as follows:




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     Gas Supply (Gas Quality Specifications) Bill 2009
     Part 1         Preliminary

     s. 1



 1                            Part 1 -- Preliminary
 2   1.         Short title
 3              This is the Gas Supply (Gas Quality Specifications) Act 2009.

 4   2.         Commencement
 5              This Act comes into operation as follows --
 6               (a) Part 1 -- on the day on which this Act receives the
 7                     Royal Assent;
 8               (b) the rest of the Act -- on a day fixed by proclamation,
 9                     and different days may be fixed for different provisions.

10   3.         Terms used
11        (1)   In this Act, unless the contrary intention appears --
12              access determination means a decision or determination, made
13              under a Gas Access Law, on access to a pipeline service
14              provided by means of a pipeline, that has not been reflected in
15              or replaced by a contract for the pipeline service;
16              Coordinator means the Coordinator of Energy referred to in the
17              Energy Coordination Act 1994 section 4;
18              exempt contract --
19                (a) means a contract in respect of which a declaration under
20                      the Gas Corporation Act 1994 Schedule 5 clause 6 was
21                      in force immediately before the coming into operation of
22                      the Dampier to Bunbury Pipeline Act 1997 Schedule 4
23                      clause 17(4); and
24                (b) includes a contract entered into --
25                         (i) in substitution for a contract referred to in
26                              paragraph (a) or any provision of such a contract;
27                              or
28                        (ii) by way of amendment of a contract referred to in
29                              paragraph (a) or subparagraph (i);



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                    Gas Supply (Gas Quality Specifications) Bill 2009
                                         Preliminary           Part 1

                                                                 s. 3



 1   Gas Access Law means --
 2     (a) the National Gas Access (Western Australia) Law, the
 3           Rules made under that Law and the regulations made
 4           under the National Gas Access (WA) Act 2009; or
 5     (b) the Gas Pipelines Access (Western Australia) Law, and
 6           the regulations, in force under the Gas Pipelines Access
 7           (Western Australia) Act 1998 before the commencement
 8           of the National Gas Access (WA) Act 2009 section 30;
 9   gas consumer means a person who --
10     (a) receives gas that has been transported through a gas
11           transmission pipeline; and
12     (b) in the previous 12 months, consumed, at any one site, at
13           least one terajoule of gas that had been transported
14           through a gas transmission pipeline;
15   gas distribution system means a distribution system as defined
16   in the Energy Coordination Act 1994 section 3(1);
17   gas producer means a person who supplies, or proposes to
18   supply, gas that will flow into a gas transmission pipeline and
19   who is --
20     (a) the registered holder of a petroleum production licence
21           under the Petroleum and Geothermal Energy Resources
22           Act 1967; or
23     (b) the registered holder of a production licence for
24           petroleum under the Petroleum (Submerged Lands)
25           Act 1982 Part III; or
26     (c) the registered holder of a petroleum production licence
27           under the Offshore Petroleum and Greenhouse Gas
28           Storage Act 2006 (Commonwealth); or
29     (d) prescribed for the purposes of this definition,
30   but does not include --
31     (e) a person in the person's capacity as an operator of a gas
32           storage facility; or
33     (f) a person declared not to be a gas producer by regulations
34           made for the purposes of this definition;

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     Gas Supply (Gas Quality Specifications) Bill 2009
     Part 1         Preliminary

     s. 3



 1            gas storage facility means a gas storage facility, with a storage
 2            capacity of more than 50 terajoules, prescribed for the purposes
 3            of this definition;
 4            gas transmission pipeline means a pipeline as defined in the
 5            Petroleum Pipelines Act 1969 section 4 and includes a pipeline
 6            (as defined for the purposes of this definition) declared to be a
 7            gas transmission pipeline by regulations made for the purposes
 8            of this definition but does not include a pipeline (as defined for
 9            the purposes of this definition) declared not to be a gas
10            transmission pipeline by regulations made for the purposes of
11            this definition;
12            inlet point, on a gas transmission pipeline, means --
13              (a) a point on the pipeline at which gas flows into the
14                     pipeline; or
15              (b) a number of such points that are adjacent to each other
16                     and that are declared to be a single point by regulations
17                     made for the purposes of this definition;
18            operator, of a gas transmission pipeline, means a person who is
19            the registered holder of a licence in respect of the pipeline,
20            under the Petroleum Pipelines Act 1969 and includes a person
21            (who owns or operates the pipeline) prescribed for the purposes
22            of this definition;
23            PIA pipeline has the meaning given in section 5;
24            pipeline, for the purposes of the definition of gas transmission
25            pipeline, means a pipeline as defined in the Petroleum Pipelines
26            Act 1969 section 4 as if all of the definition from and including
27            "but does not include" were deleted;
28            pipeline impact agreement has the meaning given in
29            section 6(1)(a);
30            pipeline service has the meaning given in the National Gas
31            Access (Western Australia) Law section 2;
32            pipeline services agreement, in relation to a gas transmission
33            pipeline, means --
34              (a) a contract for a pipeline service provided by means of
35                     the pipeline; or

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                           Gas Supply (Gas Quality Specifications) Bill 2009
                                                Preliminary           Part 1

                                                                          s. 3



 1           (b) an access determination in relation to the pipeline;
 2         reference specification, for a gas transmission pipeline, means
 3         the gas quality specification prescribed for the pipeline for the
 4         purposes of this definition;
 5         relevant effects, on the capacity, operations and maintenance of
 6         a PIA pipeline, has the meaning given in section 7(2);
 7         site, in the definition of gas consumer, means a place, other
 8         than a place that is or is part of a gas transmission pipeline or a
 9         gas storage facility, where a person consumes gas delivered to
10         the person through an outlet point on a gas transmission pipeline
11         or gas distribution system;
12         specified, in relation to an instrument made under this Act,
13         means specified in that instrument;
14         standard specification, for a gas transmission pipeline, means
15         the gas quality specification specified for the pipeline under
16         section 13;
17         user, of a gas transmission pipeline, means a person provided a
18         pipeline service by means of the pipeline under a pipeline
19         services agreement to which the person is a party.
20   (2)   Before a reference specification or a standard specification for a
21         gas transmission pipeline is amended, the Minister must consult
22         with --
23           (a) the operator of the pipeline; and
24           (b) any other person to the extent to which the Minister
25                 considers necessary in relation to the proposed
26                 amendment.
27   (3)   A regulation to amend a reference specification or a standard
28         specification for a gas transmission pipeline cannot be
29         expressed to come into effect until after the period during which
30         it is subject to disallowance under the Interpretation Act 1984
31         section 42.




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     Gas Supply (Gas Quality Specifications) Bill 2009
     Part 2         Gas quality and capacity of PIA pipelines

     s. 4



 1        Part 2 -- Gas quality and capacity of PIA pipelines
 2   4.         Purposes of this Part
 3              The primary purposes of this Part are to ensure that --
 4               (a) a gas producer can supply gas, that will flow into a PIA
 5                     pipeline, of a quality that does not comply with the
 6                     reference specification for the pipeline; and
 7               (b) the gas producer cannot do so until the relevant effects
 8                     of such supply on the capacity, operations and
 9                     maintenance of the PIA pipelines have been dealt with
10                     in a way that neither materially advantages nor
11                     materially disadvantages the operators of the pipelines;
12                     and
13               (c) users of PIA pipelines are not materially disadvantaged
14                     by the way in which those effects are determined and
15                     dealt with.
16   5.         PIA pipelines
17        (1)   A PIA pipeline is a gas transmission pipeline or a part of a gas
18              transmission pipeline declared by the Minister to be a PIA
19              pipeline.
20        (2)   The Minister must not make, amend or revoke a declaration
21              other than in accordance with the criteria and procedure
22              provided for by the regulations.
23        (3)   In this Act, a reference to a gas transmission pipeline includes a
24              reference to a part of a gas transmission pipeline when the
25              context requires.

26   6.         Controlling the quality of gas flowing into PIA pipelines
27        (1)   A gas producer must not supply gas that will flow into a PIA
28              pipeline if the gas is of a quality that does not comply with the
29              reference specification for the pipeline unless --
30                (a) the gas producer and the operator of the pipeline are
31                      parties to an agreement (a pipeline impact agreement)

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                          Gas Supply (Gas Quality Specifications) Bill 2009
                      Gas quality and capacity of PIA pipelines      Part 2

                                                                            s. 6



 1                 in respect of the supply, that complies with the
 2                 minimum requirements set out in section 7 in relation to
 3                 the supply; and
 4          (b)    the gas complies with the gas quality specification set
 5                 out in the pipeline impact agreement in relation to the
 6                 supply; and
 7           (c)   the quantity of gas supplied does not exceed the
 8                 maximum quantity set out in the pipeline impact
 9                 agreement in relation to the supply; and
10          (d)    regulations, under section 14(2)(a), modifying contracts
11                 that relate to gas transported through the pipeline have
12                 come into effect.
13   (2)   A pipeline impact agreement that is entered into, or an
14         amendment of a pipeline impact agreement, does not have effect
15         for the purposes of subsection (1)(b) and (c) for the 18 months
16         immediately following the entering into of the agreement or the
17         amendment.
18   (3)   If a gas producer supplies gas that will flow into a PIA pipeline
19         at an inlet point and the gas producer fails to comply with
20         subsection (1), the operator of the pipeline may --
21           (a) reduce the flow (including to zero) in accordance with
22                  the regulations; and
23           (b) whether or not the flow of gas is reduced under
24                  paragraph (a) -- reduce the allocation (including to
25                  zero) of gas flowing into the pipeline at the inlet point to
26                  users of the pipeline, in accordance with the regulations.
27   (4)   The operator of a PIA pipeline may, under section 12, apply to
28         the Supreme Court for an injunction against a gas producer who
29         has engaged, is engaging or is proposing to engage in conduct
30         that constitutes a failure to comply with subsection (1).
31   (5)   The operator of a PIA pipeline may take an action under
32         subsection (3) or (4), or both, despite any relevant pipeline
33         services agreement.


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     Gas Supply (Gas Quality Specifications) Bill 2009
     Part 2         Gas quality and capacity of PIA pipelines

     s. 7



 1        (6)   Subsections (3) and (4) are in addition to any other rights a
 2              person may have in relation to a failure to comply with
 3              subsection (1).
 4        (7)   The Minister may, in a particular case, allow a shorter period for
 5              the purposes of subsection (2) if satisfied that allowing a shorter
 6              period will not adversely affect, in a material way, operators of
 7              PIA pipelines, operators of other gas transmission pipelines,
 8              operators of gas storage facilities, operators of gas distribution
 9              systems or gas consumers.
10        (8)   The Criminal Code section 177 does not apply to the obligation
11              in subsection (1).

12   7.         Content of pipeline impact agreements
13        (1)   For the purposes of section 6(1)(a), the minimum requirements
14              in relation to a supply of gas are that the pipeline impact
15              agreement --
16                (a) identifies the inlet point on the PIA pipeline into which
17                       the gas will flow; and
18                (b) sets out the gas quality specification with which the gas
19                       must comply; and
20                (c) sets out the maximum quantity of gas to be supplied;
21                       and
22                (d) sets out the day on which it is proposed to commence
23                       supplying the gas or change the quality or quantity of
24                       gas to be supplied; and
25                (e) sets out the relevant effects on the capacity, operations
26                       and maintenance of the PIA pipeline of the gas flowing
27                       into the pipeline, and the way that those effects are to be
28                       dealt with; and
29                (f) sets out the duration of the agreement; and
30                (g) sets out any other prescribed matters; and




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                               Gas Supply (Gas Quality Specifications) Bill 2009
                           Gas quality and capacity of PIA pipelines      Part 2

                                                                                s. 8



 1               (h)    complies with any prescribed requirements as to the
 2                      form in which the matters to be set out in the agreement
 3                      are to be expressed or otherwise presented.
 4        (2)   For the purposes of this Act, the relevant effects on the
 5              capacity, operations and maintenance of a PIA pipeline, of gas
 6              (that does not comply with the reference specification for the
 7              pipeline) flowing into the pipeline, are --
 8                (a) the reduction in the pipeline's capacity; and
 9                (b) the effects on the pipeline's operations and maintenance,
10              attributable to the gas not being of a quality that complies with
11              the reference specification for the pipeline.
12        (3)   The regulations may provide for the method by which, and the
13              assumptions upon which --
14                (a) a change in the capacity of a PIA pipeline is to be
15                     worked out; and
16                (b) the effects on the pipeline's operations and maintenance
17                     are to be worked out, including by limiting which effects
18                     are to be considered as effects for the purposes of
19                     subsection (2).
20        (4)   An agreement of the nature of a pipeline impact agreement, that
21              was entered into after 1 January 2009 and before the
22              commencement of this Part, in respect of a supply of gas that
23              will flow into a PIA pipeline, is to be taken to comply with the
24              minimum requirements set out in this section if it substantially
25              complies with the requirements of subsection (1)(a), (b), (c),
26              (d), (e) and (f) in relation to the supply.

27   8.         Formation of pipeline impact agreements
28        (1)   This section applies to the formation of a pipeline impact
29              agreement in respect of the supply of gas that flows or that will
30              flow into a PIA pipeline at an inlet point except to the extent to
31              which the gas producer and the operator of the pipeline (the
32              parties) agree otherwise.


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     Gas Supply (Gas Quality Specifications) Bill 2009
     Part 2         Gas quality and capacity of PIA pipelines

     s. 8



 1      (2)    The default procedure provided for in the regulations applies to
 2             the formation of a pipeline impact agreement.
 3      (3)    If --
 4               (a)   the relevant effects on the capacity, operations and
 5                     maintenance of the pipeline are not in dispute between
 6                     the parties (which includes that those effects have been
 7                     determined by an expert under section 9(2)(b)); and
 8              (b)    the gas producer proposes that those effects be dealt
 9                     with by a method prescribed for the purposes of this
10                     paragraph,
11             the default pipeline impact agreement provided for by the
12             regulations in relation to that method becomes the proposed
13             pipeline impact agreement in relation to the supply of the gas.
14      (4)    The proposed pipeline impact agreement referred to in
15             subsection (3) becomes the pipeline impact agreement in respect
16             of the supply of the gas, as if the parties had entered into the
17             agreement, when all matters in the proposed pipeline impact
18             agreement to be resolved by the parties are not in dispute as an
19             access dispute under a Gas Access Law or under section 9.
20      (5)    A dispute between the parties about a matter in the proposed
21             pipeline impact agreement that is provided for by the default
22             pipeline impact agreement cannot be dealt with as an access
23             dispute under a Gas Access Law or under section 9.
24      (6)    For the purposes of subsection (5), a matter is provided for by a
25             default pipeline impact agreement if the matter is set out in the
26             default agreement and the matter is not identified in the
27             agreement as a matter that the parties may resolve.
28      (7)    The regulations may adopt standard form agreements published
29             by the Minister, in accordance with the regulations, for the
30             purposes of this section.
31      (8)    Subsection (7) does not limit section 34(4).



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                                Gas Supply (Gas Quality Specifications) Bill 2009
                            Gas quality and capacity of PIA pipelines      Part 2

                                                                                  s. 9



 1   9.          Pipeline impact agreements -- dispute resolution
 2         (1)   The regulations may provide for and in relation to the resolution
 3               of --
 4                 (a) disputes between gas producers and operators of PIA
 5                      pipelines relating to pipeline impact agreements and
 6                      proposed pipeline impact agreements; and
 7                 (b) disputes relating to the reduction of the flow of gas, or
 8                      the allocation of gas, under section 6(3).
 9         (2)   The regulations may do the following --
10                (a) provide for the resolution of those disputes by an
11                      arbitrator;
12                (b) provide for disputes about the relevant effects on the
13                      capacity, operations and maintenance of a PIA pipeline
14                      to be resolved by the determination of an expert chosen
15                      in accordance with the regulations and for such
16                      determinations to be final and binding on the parties to
17                      the dispute;
18                (c) provide for the interests of users of gas transmission
19                      pipelines to be taken into account.
20         (3)   If, in the resolution of a dispute, an expert or an arbitrator
21               determines terms of a pipeline impact agreement or proposed
22               pipeline impact agreement, those terms become part of the
23               agreement or proposed agreement the subject of the dispute.

24   10.         Short-term situations
25         (1)   The regulations may provide for and in relation to short-term
26               situations.
27         (2)   A short-term situation is a situation during which there is a
28               disruption to the flow or quality of gas (whether planned or not)
29               that means that --
30                 (a) a gas producer cannot --
31                         (i) continue to supply gas that will flow into a PIA
32                               pipeline; and


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     Gas Supply (Gas Quality Specifications) Bill 2009
     Part 2         Gas quality and capacity of PIA pipelines

     s. 11



 1                        (ii)   comply with section 6(1) in respect of that
 2                               supply;
 3                      or
 4                (b)   a pipeline services agreement or gas supply agreement
 5                      cannot be complied with.
 6         (3)   The regulations may do the following --
 7                (a) set out modifications of the provisions of this Part that
 8                      are to apply during short-term situations;
 9                (b) enable the Minister to issue directions in relation to a
10                      particular short-term situation, modifying the application
11                      of the provisions of this Part, or regulations made for the
12                      purposes of section 14, during the short-term situation.
13         (4)   Regulations or directions making modifications for the purposes
14               of this section must specify the period during which the
15               modifications are to have effect, which cannot be for more than
16               7 days, or any longer period (not exceeding 3 months) allowed
17               by the Minister.
18         (5)   A direction issued by the Minister may specify a period, during
19               which the modifications are to have effect, that begins at the
20               beginning of the short-term situation, whether or not that is
21               earlier than the day on which the direction is issued.
22         (6)   If the Minister allows a longer period under subsection (4), the
23               Minister must cause reasons for allowing the longer period to be
24               laid before each House of Parliament within 6 sitting days of the
25               House.

26   11.         Compensation for adverse effects on certain pipeline users
27         (1)   The regulations may provide for and in relation to a scheme of
28               compensation under which users of a PIA pipeline are entitled
29               to compensation from parties to pipeline impact agreements in
30               respect of the pipeline, for adverse effects on the users' rights
31               (under pipeline services agreements) resulting from the way in
32               which the relevant effects on the capacity of the pipeline were
33               or were not dealt with in the pipeline impact agreement.

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                                Gas Supply (Gas Quality Specifications) Bill 2009
                            Gas quality and capacity of PIA pipelines      Part 2

                                                                               s. 12



 1         (2)   The regulations may do the following --
 2                (a) provide for the resolution of disputes arising out of the
 3                      compensation scheme, including by an arbitrator;
 4                (b) provide for disputes about --
 5                         (i) the relevant effects on the capacity of a PIA
 6                              pipeline; or
 7                        (ii) the effects on users' rights (under pipeline
 8                              services agreements) resulting from the way in
 9                              which the relevant effects on the capacity of the
10                              pipeline were or were not dealt with in the
11                              pipeline impact agreement,
12                      to be resolved by the determination of an expert chosen
13                      in accordance with the regulations and for such
14                      determinations to be final and binding on the parties to
15                      the dispute;
16                (c) provide for the enforcement of entitlements under the
17                      scheme, including as determined by an arbitrator.

18   12.         Injunctions
19         (1)   If, on the application of the operator of a PIA pipeline, the
20               Supreme Court is satisfied that a gas producer has engaged, is
21               engaging or is proposing to engage in conduct that constitutes a
22               failure to comply with section 6(1), the Court may grant an
23               injunction, on such terms as the Court thinks appropriate --
24                 (a) restraining the gas producer from engaging in the
25                        conduct; or
26                 (b) if the conduct involves refusing or failing to do
27                        something -- requiring the gas producer to do the thing.
28         (2)   The Court may grant an injunction by consent of all of the
29               parties to the proceedings, whether or not the Court is satisfied
30               as to the matters in subsection (1).
31         (3)   The Court may grant an interim injunction pending
32               determination of an application under subsection (1).


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     Gas Supply (Gas Quality Specifications) Bill 2009
     Part 2         Gas quality and capacity of PIA pipelines

     s. 12



 1      (4)    The power of the Court to grant an injunction restraining a gas
 2             producer from engaging in conduct may be exercised whether or
 3             not --
 4               (a) it appears to the Court that the gas producer intends to
 5                    engage again, or to continue to engage, in conduct of
 6                    that kind; or
 7               (b) the gas producer has previously engaged in conduct of
 8                    that kind; or
 9               (c) there is an imminent danger of substantial damage to
10                    any person if the gas producer engages in conduct of
11                    that kind.
12      (5)    The power of the Court to grant an injunction requiring a gas
13             producer to do a thing may be exercised whether or not --
14               (a) it appears to the Court that the gas producer intends to
15                    refuse or fail again, or to continue to refuse or fail, to do
16                    that thing; or
17               (b) the gas producer has previously refused or failed to do
18                    that thing; or
19               (c) there is an imminent danger of substantial damage to
20                    any person if the gas producer refuses or fails to do that
21                    thing.
22      (6)    The Court may discharge or vary an injunction granted under
23             this section.




     page 14
                                 Gas Supply (Gas Quality Specifications) Bill 2009
                                           Modifying gas contracts          Part 3

                                                                               s. 13



 1                    Part 3 -- Modifying gas contracts
 2   13.         Standard gas quality specifications for pipelines
 3               The regulations may specify a gas quality specification for one
 4               or more gas transmission pipelines that is to be the standard
 5               specification for the pipeline or pipelines.

 6   14.         Modifying gas contracts
 7         (1)   In this section --
 8               gas contract means a contract that relates to the sale, supply,
 9               storage, delivery, receipt or transportation of gas transported or
10               to be transported through a gas transmission pipeline.
11         (2)   The regulations may modify existing and future gas contracts
12               for the purposes of this Act, including by doing the following --
13                 (a) providing that the contracts have effect so that the gas to
14                       be sold, supplied, stored, transported, delivered or
15                       received under the contracts need only comply with a
16                       gas quality specification provided for in the regulations;
17                 (b) providing that specified references to gas quality
18                       specifications in the contracts have effect as if they were
19                       references to a gas quality specification provided for in
20                       the regulations;
21                 (c) dealing with the effects on gas contracts --
22                          (i) of having been modified under paragraph (a)
23                               or (b); or
24                         (ii) of the enactment and coming into operation of
25                               this Act or of any particular provision of this
26                               Act; or
27                        (iii) of gas flowing into a gas transmission pipeline,
28                               being gas that does not comply with the
29                               reference specification for the pipeline.
30         (3)   For the purposes of subsection (2)(a) and (b), the ways in which
31               the regulations may provide for a gas quality specification

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     Gas Supply (Gas Quality Specifications) Bill 2009
     Part 3         Modifying gas contracts

     s. 14



 1             include the adoption of a gas quality specification in, or worked
 2             out in accordance with, a pipeline impact agreement or gas
 3             contract.
 4      (4)    Regulations made for the purposes of subsection (2)(a) or (b)
 5             cannot, in relation to gas flowing, or that has flowed, out of a
 6             PIA pipeline, provide for a gas quality specification that is less
 7             stringent than the standard specification for the gas transmission
 8             pipeline.
 9      (5)    In dealing with the effects on a gas contract of a matter referred
10             to in subsection (2)(c), the regulations may provide that the
11             contract does or does not have a certain effect, including that the
12             occurrence of the matter --
13               (a) is not to be considered as a breach of the contract; or
14               (b) does or does not modify existing rights, duties or
15                     liabilities, or give rise to additional rights, duties or
16                     liabilities, under the contract.




     page 16
                               Gas Supply (Gas Quality Specifications) Bill 2009
     Compensation for certain gas consumers and operators of gas          Part 4
                 transmission pipelines and gas storage facilities

                                                                                s. 15


 1         Part 4 -- Compensation for certain gas consumers
 2          and operators of gas transmission pipelines and
 3                       gas storage facilities
 4   15.         Terms used
 5               In this Part --
 6               downstream agreement means a contract under which gas,
 7               which has been transported through a gas transmission pipeline,
 8               is delivered to a gas consumer;
 9               Part 4 pipeline means a gas transmission pipeline that is not a
10               PIA pipeline;
11               plant and equipment costs, of a person, means the costs of
12               rectifying or replacing plant and equipment to the extent
13               necessary for the person to receive gas and continue the
14               person's operations as carried on before the gas was delivered;
15               relevant gas quality specification, for a gas consumer has the
16               meaning given in section 17(2), for an operator of a Part 4
17               pipeline has the meaning given in section 18(2) and for an
18               operator of a gas storage facility has the meaning given in
19               section 18(3).

20   16.         Regulations may provide for compensation scheme
21         (1)   The regulations may provide for and in relation to a scheme of
22               compensation under which a gas consumer, an operator of a
23               Part 4 pipeline or an operator of a gas storage facility is entitled
24               to compensation from gas producers for --
25                 (a) the costs incurred by the consumer or operator as a
26                       result of being delivered gas that does not comply with
27                       the relevant gas quality specification for the consumer or
28                       operator; and
29                 (b) the loss of capacity (in terajoules) of a gas storage
30                       facility resulting from the operator of the facility being
31                       delivered gas that does not comply with the relevant gas
32                       quality specification for the operator.

                                                                             page 17
     Gas Supply (Gas Quality Specifications) Bill 2009
     Part 4         Compensation for certain gas consumers and operators of gas
                    transmission pipelines and gas storage facilities

     s. 17


 1         (2)   The regulations may do the following --
 2                (a) provide for the resolution of disputes arising out of the
 3                      compensation scheme, including by an arbitrator;
 4                (b) provide for specified disputes to be resolved by the
 5                      determination of an expert chosen in accordance with
 6                      the regulations and for such determinations to be final
 7                      and binding on the parties to the dispute;
 8                (c) provide for the enforcement of entitlements under the
 9                      scheme, including as determined by an arbitrator.
10         (3)   The costs referred to in subsection (1)(a) are, under the
11               regulations, to be limited to the direct costs incurred by the
12               consumer or operator and may, under the regulations, be offset
13               by the value of any benefit derived from being delivered the
14               gas.
15         (4)   The regulations may modify the application of this Part in
16               relation to the exempt contract.
17         (5)   A provision of this section, section 17 or section 18 that sets a
18               limit on the compensation payable under the scheme does not
19               mean that the regulations cannot further limit the compensation
20               payable.
21         (6)   A gas producer is not to be liable, under regulations made for
22               the purposes of this Part, to provide compensation except in
23               relation to supplying gas that does not comply with the
24               reference specification for a gas transmission pipeline into
25               which the gas flows.

26   17.         Compensation scheme for certain gas consumers
27         (1)   This section applies in respect of the compensation scheme as
28               the scheme applies to gas consumers.
29         (2)   The relevant gas quality specification for a gas consumer in
30               relation to the delivery of gas to the consumer under a particular
31               downstream agreement is the gas quality specification with
32               which the gas to be delivered under the agreement must have
33               complied, immediately before 1 January 2009.

     page 18
                               Gas Supply (Gas Quality Specifications) Bill 2009
     Compensation for certain gas consumers and operators of gas          Part 4
                 transmission pipelines and gas storage facilities

                                                                               s. 18


 1         (3)   The costs referred to in section 16(1)(a), of a gas consumer, are,
 2               under the regulations, to be limited to --
 3                 (a) the costs necessary to restore any reduction in the
 4                       capacity of the consumer's operations resulting from
 5                       being delivered the gas, to the extent to which the
 6                       reduction in capacity is attributable to the gas not
 7                       complying with the relevant gas quality specification for
 8                       the consumer; and
 9                (b) the plant and equipment costs of the gas consumer, to
10                       the extent to which those costs are attributable to the gas
11                       not complying with the relevant gas quality specification
12                       for the consumer; and
13                 (c) increases in operating and maintenance costs of the gas
14                       consumer resulting from being delivered the gas, to the
15                       extent to which those increases are attributable to the
16                       gas not complying with the relevant gas quality
17                       specification for the consumer.
18         (4)   A gas consumer is not to be entitled to compensation under the
19               regulations in relation to the delivery of gas unless the consumer
20               is entitled to the delivery of the gas under a downstream
21               agreement that --
22                 (a) was in force immediately before 1 January 2009; and
23                 (b) is not an extension (by renegotiation, or exercise of an
24                        option to extend, on or after 1 January 2009) of such an
25                        agreement.
26         (5)   A gas consumer is not to be entitled to compensation under the
27               regulations in relation to gas delivered to the consumer after
28               1 January 2029.

29   18.         Compensation scheme for operators of Part 4 pipelines and
30               operators of gas storage facilities
31         (1)   This section applies in respect of the compensation scheme as
32               the scheme applies to operators of Part 4 pipelines and operators
33               of gas storage facilities.


                                                                            page 19
     Gas Supply (Gas Quality Specifications) Bill 2009
     Part 4         Compensation for certain gas consumers and operators of gas
                    transmission pipelines and gas storage facilities

     s. 19


 1         (2)   The relevant gas quality specification for an operator of a Part 4
 2               pipeline in relation to the pipeline is the reference specification
 3               for the pipeline.
 4         (3)   The relevant gas quality specification for an operator of a gas
 5               storage facility in relation to the facility is the gas quality
 6               specification prescribed for the facility for the purposes of this
 7               subsection.
 8         (4)   The costs referred to in section 16(1)(a), of an operator of a
 9               Part 4 pipeline or a gas storage facility, are, under the
10               regulations, to be limited to --
11                 (a) the costs necessary to restore any reduction in the
12                       capacity of the pipeline or gas storage facility resulting
13                       from being delivered the gas, to the extent to which the
14                       reduction in capacity is attributable to the gas not
15                       complying with the relevant gas quality specification for
16                       the operator; and
17                 (b) the plant and equipment costs of the operator, to the
18                       extent to which those costs are attributable to the gas not
19                       complying with the relevant gas quality specification for
20                       the operator; and
21                 (c) increases in operating and maintenance costs of the
22                       operator resulting from being delivered the gas, to the
23                       extent to which those increases are attributable to the
24                       gas not complying with the relevant gas quality
25                       specification for the operator.

26   19.         Double compensation
27         (1)   A contract or access determination (including a contract or
28               access determination in force at the time that this section comes
29               into operation) does not have effect to the extent to which it
30               would otherwise provide compensation (whether or not
31               expressly and whether in whole or in part) for --
32                 (a) a relevant effect on a PIA pipeline's capacity, operations
33                       or maintenance; or


     page 20
                               Gas Supply (Gas Quality Specifications) Bill 2009
     Compensation for certain gas consumers and operators of gas          Part 4
                 transmission pipelines and gas storage facilities

                                                                                 s. 20


 1                (b)    a cost incurred by a gas consumer, an operator of a
 2                       Part 4 pipeline or an operator of a gas storage facility as
 3                       a result of being delivered gas that does not comply with
 4                       the relevant gas quality specification for the consumer or
 5                       operator; or
 6                 (c)   a loss of capacity of a gas storage facility resulting from
 7                       the operator of the facility being delivered gas that does
 8                       not comply with the relevant gas quality specification
 9                       for the operator,
10               that is provided for under a pipeline impact agreement or this
11               Part, or that, although there is a pipeline impact agreement in
12               relation to the relevant effect referred to in paragraph (a), is not
13               provided for under the agreement, but would ordinarily be
14               provided for under such an agreement.
15         (2)   Subsection (1) does not apply to a pipeline impact agreement or
16               a contract entered into under or for the purposes of a pipeline
17               impact agreement or this Part.
18         (3)   Without limiting the ways in which a contract or an access
19               determination could otherwise provide compensation it could do
20               so by increasing a liability (including costs and tariffs) or
21               reducing a benefit otherwise provided for by the contract.
22         (4)   In this section, a reference to providing compensation for an
23               effect, cost or loss referred to in subsection (1) includes a
24               reference to effecting recovery for, and to dealing with, the
25               effect, cost or loss.

26   20.         Part 4 pipeline becoming PIA pipeline
27               The regulations may provide for and in relation to any matter
28               arising as a consequence of a gas transmission pipeline ceasing
29               to be a Part 4 pipeline and becoming a PIA pipeline, including
30               by --
31                 (a) providing for any necessary overlap between the
32                       application of this Part and Part 2; and


                                                                              page 21
     Gas Supply (Gas Quality Specifications) Bill 2009
     Part 4         Compensation for certain gas consumers and operators of gas
                    transmission pipelines and gas storage facilities

     s. 20


 1             (b)   modifying or extinguishing rights, duties or liabilities
 2                   under this Part; and
 3             (c)   modifying the application of a provision of this Act; and
 4             (d)   providing for the extension of the scheme of
 5                   compensation under section 16 to the operator and users
 6                   of the pipeline to cover any losses resulting from the
 7                   loss of capacity (in terajoules) of the pipeline resulting
 8                   from the operator of the pipeline being delivered gas
 9                   that does not comply with the reference specification for
10                   the pipeline, prior to the loss of capacity being dealt
11                   with in accordance with a pipeline impact agreement.




     page 22
                                Gas Supply (Gas Quality Specifications) Bill 2009
                                  Rectifying consumer installations        Part 5
                                                       Preliminary    Division 1
                                                                             s. 21



 1               Part 5 -- Rectifying consumer installations
 2                            Division 1 -- Preliminary
 3   21.         Purposes of this Part
 4               The primary purposes of this Part are to provide for --
 5                (a) a programme for the modification or replacement of
 6                      certain consumer installations in preparation for the
 7                      supply of lower heating value gas to consumers through
 8                      gas distribution systems; and
 9                (b) the operation of an account for the receipt of
10                      contributions from gas producers for the purposes of
11                      funding the programme; and
12                (c) a scheme of reimbursement under which the cost of the
13                      programme is apportioned between gas producers who
14                      supply lower heating value gas that flows into certain
15                      gas transmission pipelines during the reimbursement
16                      period.

17   22.         Terms used
18         (1)   In this Part --
19               Account means the account called the Gas Producers
20               Contribution Account established as an agency special purpose
21               account under the Financial Management Act 2006
22               section 16(1)(d);
23               Authority means the Economic Regulation Authority
24               established by the Economic Regulation Authority Act 2003
25               section 4;
26               consumer means a person who --
27                 (a) is a consumer under the Gas Standards Act 1972
28                        section 4; and
29                 (b) in the previous 12 months, did not consume, at any one
30                        site, more than 0.18 terajoules of gas;


                                                                          page 23
     Gas Supply (Gas Quality Specifications) Bill 2009
     Part 5         Rectifying consumer installations
     Division 1     Preliminary
     s. 22



 1             consumer installation means a gas installation or gas appliance
 2             at a site owned or occupied by a consumer;
 3             contribution, in relation to a gas producer, means an amount
 4             made available by the gas producer for the purposes of funding
 5             the rectification programme;
 6             Department means the department of the Public Service
 7             principally assisting in the administration of the Energy
 8             Coordination Act 1994 Part 2;
 9             Director means the Director of Energy Safety referred to in the
10             Energy Coordination Act 1994 section 5;
11             gas appliance has the meaning given in the Gas Standards
12             Act 1972 section 4;
13             gas installation has the meaning given in the Gas Standards
14             Act 1972 section 4;
15             lower heating value gas means gas with a heating value that
16             does not meet the heating value standards set out in the Gas
17             Standards (Gas Supply and System Safety) Regulations 2000
18             regulation 5(2)(a) and (d), as in force immediately before
19             1 January 2009;
20             rectification programme has the meaning given in
21             section 23(2);
22             reimbursement period means the period --
23               (a) beginning on the day determined under section 29; and
24               (b) ending on the day before the tenth anniversary of the
25                      day referred to in paragraph (a);
26             site, in relation to a consumer, means a place to which gas is
27             supplied to the consumer through a connection point to a gas
28             distribution system.
29      (2)    For the purposes of this Part, any amount made available by a
30             gas producer and credited to the Account before the
31             commencement of this Part is to be taken to be a contribution
32             from a gas producer.



     page 24
                                 Gas Supply (Gas Quality Specifications) Bill 2009
                                   Rectifying consumer installations        Part 5
                                            Rectification programme    Division 2
                                                                              s. 23



 1         (3)   A reference in this Part to the cost of the rectification
 2               programme is a reference to the total of all amounts charged to
 3               the Account, whether before or after the commencement of the
 4               this Part, other than amounts charged for the purposes of
 5               section 25(1)(a).

 6                    Division 2 -- Rectification programme
 7   23.         Director to establish and implement the rectification
 8               programme
 9         (1)   In this section --
10               relevant consumer installation means a consumer installation
11               that is likely to become unsafe or dangerous in use if lower
12               heating value gas were to be supplied to consumers through gas
13               distribution systems.
14         (2)   It is a function of the Director to establish and implement a
15               programme (the rectification programme) for the modification
16               or replacement of relevant consumer installations, so that, to the
17               extent practicable, owners of those installations (whether
18               consumers or not) are given the opportunity to have them
19               modified or replaced in anticipation of their use being controlled
20               or prohibited by an order under the Gas Standards Act 1972
21               section 13H.
22         (3)   The Director need not perform the function under subsection (2)
23               if, in the opinion of the Director, there is not sufficient money
24               standing to the credit of the Account to fund the rectification
25               programme.
26         (4)   The regulations may provide for and in relation to matters
27               relating to the rectification programme, including --
28                 (a) the rights, duties and liabilities of owners of relevant
29                       consumer installations, and any other persons, in respect
30                       of the modification or replacement of those installations
31                       under the programme; and
32                 (b) the ownership of gas installations, gas appliances and
33                       any other things supplied under the programme.

                                                                           page 25
     Gas Supply (Gas Quality Specifications) Bill 2009
     Part 5         Rectifying consumer installations
     Division 2     Rectification programme
     s. 24



 1   24.         Payments into and out of the Account
 2         (1)   The following funds must be credited to the Account --
 3                (a) all contributions from gas producers;
 4                (b) income derived from the investment of money standing
 5                       to the credit of the Account.
 6         (2)   The money standing to the credit of the Account may be applied
 7               by the Director for the following purposes --
 8                 (a) payment of costs and expenses incurred in, or in
 9                      connection with, establishing and implementing the
10                      rectification programme;
11                (b) payment of costs and expenses associated with
12                      administering the Account;
13                 (c) payment of money under section 25(1)(a);
14                (d) payment of any other costs and expenses incurred for
15                      the purposes of this Part.

16   25.         Surplus funds to be repaid to gas producers upon
17               completion of the rectification programme
18         (1)   When the Director is satisfied that the money standing to the
19               credit of the Account will not be applied (other than for the
20               purposes referred to in section 24(2)(b) or (c)), the Director
21               must ensure that within 4 months --
22                 (a) the balance of the Account is paid to the gas producer or
23                       producers who made contributions; and
24                 (b) notice is published in the Gazette that the rectification
25                       programme has been completed.
26         (2)   The amount to be paid to a gas producer under subsection (1)(a)
27               is an amount that bears to the total amount to be paid to gas
28               producers under that subsection the same proportion as the total
29               of the gas producer's contributions bears to the total of all the
30               contributions from gas producers.



     page 26
                                 Gas Supply (Gas Quality Specifications) Bill 2009
                                   Rectifying consumer installations        Part 5
                                            Reimbursement scheme       Division 3
                                                                              s. 26



 1   26.         Application of Financial Management Act 2006 and Auditor
 2               General Act 2006
 3         (1)   The provisions of the Financial Management Act 2006 and the
 4               Auditor General Act 2006 regulating the financial
 5               administration, audit and reporting of agencies apply to and in
 6               relation to the Account.
 7         (2)   The administration of the Account is, for the purposes of the
 8               Financial Management Act 2006 section 52, to be regarded as a
 9               service of the Department.
10         (3)   The Financial Management Act 2006 section 20 does not apply
11               to the Account.

12   27.         Annual report of Department to include information about
13               the rectification programme
14               Without limiting the Financial Management Act 2006
15               section 61, the Department's first annual report after publication
16               of the notice under section 25(1)(b) must contain the following
17               information --
18                 (a) the name of each gas producer who made one or more
19                       contributions and the amount of each contribution;
20                 (b) the total amount of income derived from the investment
21                       of moneys forming part of the Account;
22                 (c) the cost of the rectification programme;
23                 (d) the amount (if any) paid to each gas producer under
24                       section 25(1)(a).

25                     Division 3 -- Reimbursement scheme
26   28.         Regulations may provide for reimbursement scheme
27         (1)   In this section --
28               contributor means a gas producer who made a contribution
29               (whether or not the gas producer supplies lower heating value
30               gas during the reimbursement period);


                                                                           page 27
     Gas Supply (Gas Quality Specifications) Bill 2009
     Part 5         Rectifying consumer installations
     Division 3     Reimbursement scheme
     s. 28



 1             relevant gas transmission pipeline means a gas transmission
 2             pipeline from which gas flows into a gas distribution system in
 3             the Coastal Supply Area constituted under the Energy
 4             Coordination Act 1994 section 11A(1) by the Energy
 5             Coordination (Coastal Supply Area) Order 2000;
 6             supply, in relation to lower heating value gas, means the supply
 7             of lower heating value gas that will flow into a relevant gas
 8             transmission pipeline.
 9      (2)    A reference in this section to a gas producer who supplies lower
10             heating value gas does not include a reference to a gas producer
11             whose supply of lower heating value gas is less than
12             10 terajoules per day.
13      (3)    The regulations may provide for and in relation to a scheme (the
14             reimbursement scheme) under which the cost of the
15             rectification programme is apportioned between gas producers
16             who supply lower heating value gas during the reimbursement
17             period.
18      (4)    The regulations may do the following --
19              (a) provide for gas producers who supply lower heating
20                    value gas during the reimbursement period to be
21                    required, periodically and at the end of the
22                    reimbursement period --
23                       (i) to reimburse one or more contributors; or
24                      (ii) to reimburse one or more gas producers who
25                           supply lower heating value gas during the
26                           reimbursement period but who are not
27                           contributors; or
28                     (iii) to do both of those things;
29              (b) confer functions on the Authority in relation to the
30                    reimbursement scheme, including the function of
31                    determining the amounts required to be reimbursed (the
32                    reimbursement amounts);



     page 28
                                 Gas Supply (Gas Quality Specifications) Bill 2009
                                   Rectifying consumer installations        Part 5
                                            Reimbursement scheme       Division 3
                                                                              s. 29



 1                (c)    specify the methods and principles to be applied by the
 2                       Authority in determining reimbursement amounts or in
 3                       performing any other function in relation to the
 4                       reimbursement scheme;
 5                (d)    provide for the costs incurred by the Authority in
 6                       performing its functions in relation to the reimbursement
 7                       scheme to be recovered from gas producers who supply
 8                       lower heating value gas during the reimbursement
 9                       period;
10                (e)    provide for interest to be payable on amounts that
11                       remain unpaid after becoming due and payable under
12                       paragraph (a) or (d) (the unpaid amounts);
13                 (f)   provide for the recovery of unpaid amounts, and interest
14                       on those amounts, by persons entitled under the
15                       regulations to be paid those amounts.
16         (5)   A gas producer who supplies lower heating value gas after the
17               reimbursement period cannot be required under the regulations
18               to pay reimbursement amounts in relation to that supply.

19   29.         Minister may determine beginning of the reimbursement
20               period
21               For purposes of the definition of reimbursement period
22               paragraph (a), the Minister may, by notice published in the
23               Gazette, determine the day on which the reimbursement period
24               begins.




                                                                           page 29
     Gas Supply (Gas Quality Specifications) Bill 2009
     Part 6         General provisions

     s. 30



 1                       Part 6 -- General provisions
 2   30.         Relationship to Gas Access Laws
 3               The regulations may provide for and in relation to the
 4               relationship between this Act and a Gas Access Law, including
 5               by providing for how the Gas Access Law is to have effect in
 6               relation to matters and things affected by this Act.

 7   31.         Coordinator to monitor and inquire into
 8               It is a function of the Coordinator --
 9                  (a) to monitor the operation of this Act generally; and
10                 (b) to inquire into or investigate particular matters that arise
11                         in relation to this Act or contracts that relate to the
12                         purposes of this Act or that are, or can be, modified
13                         under this Act.

14   32.         Exemptions may be granted by Minister
15         (1)   The Minister may, by order published in the Gazette, exempt
16               from the application of this Act or specified provisions of this
17               Act, wholly or to a specified extent --
18                 (a) a specified person or persons of a specified class; or
19                 (b) a specified thing or things of a specified class; or
20                 (c) a specified contract or contracts of a specified class; or
21                 (d) a specified activity relating to the sale, supply, storage
22                      or transportation of gas transported or to be transported
23                      through a gas transmission pipeline.
24         (2)   Before making an order under subsection (1), the Minister must
25               make the proposed order available for comment to the extent to
26               which the Minister considers necessary in relation to the
27               proposed exemption.
28         (3)   An exemption may be --
29                (a) subject to specified conditions; and


     page 30
                                 Gas Supply (Gas Quality Specifications) Bill 2009
                                               General provisions           Part 6

                                                                                 s. 33



 1                (b)    indefinite or for a specified period.
 2         (4)   The Minister may, by order published in the Gazette, amend or
 3               revoke an order under subsection (1).
 4         (5)   The Interpretation Act 1984 section 42 applies to an order under
 5               subsection (1) or (4) as if the order were regulations.

 6   33.         Review of Act
 7         (1)   The Minister must carry out a review of the operation and
 8               effectiveness of this Act as soon as is practicable after the
 9               expiration of 10 years from its commencement.
10         (2)   The Minister is to prepare a report based on the review and, as
11               soon as is practicable after the report is prepared (and in any
12               case not more than 12 months after the expiration of the 10 year
13               period referred to in subsection (1)), cause it to be laid before
14               each House of Parliament.

15   34.         Regulations
16         (1)   The Governor may make regulations prescribing all matters that
17               are required or permitted by this Act to be prescribed, or are
18               necessary or convenient to be prescribed for giving effect to the
19               purposes of this Act.

20         (2)   The regulations may do the following --
21                (a) provide for and in relation to the giving, publishing and
22                      verification of information relating to the purposes of
23                      this Act, including information relating to the
24                      following --
25                         (i) the entering into, amendment or content of a
26                              pipeline impact agreement or other contract;
27                        (ii) the supply of gas that will flow into a gas
28                              transmission pipeline;
29                       (iii) the actual, calculated or hypothetical quantity
30                              and quality of gas flowing into or out of a gas


                                                                             page 31
     Gas Supply (Gas Quality Specifications) Bill 2009
     Part 6         General provisions

     s. 34



 1                             transmission pipeline or past specified points on
 2                             a gas transmission pipeline;
 3              (b)   limit the liability a person has in relation to information
 4                    given or published under paragraph (a);
 5              (c)   provide for and in relation to the imposition of standards
 6                    in relation to measuring gas quantity and quality;
 7              (d)   provide that equipment for measuring gas quantity and
 8                    quality is to be treated as accurate in specified
 9                    circumstances;
10              (e)   modify the application of the provisions of Part 2 to
11                    particular persons, circumstances or things in respect of
12                    which the provisions would not otherwise apply so as to
13                    give effect to the purposes of that Part;
14              (f)   provide for the exclusivity of the jurisdiction of an
15                    arbitrator or expert under section 9, 11 or 16, including
16                    in relation to other dispute resolution procedures under
17                    other written laws;
18              (g)   provide for the extent to which the rules of evidence
19                    apply during the resolution of disputes under
20                    section 9, 11 or 16;
21              (h)   provide for and in relation to the imposition and
22                    payment of fees and charges in connection with the
23                    performance of the functions of an arbitrator or expert
24                    under section 9, 11 or 16;
25              (i)   provide that contravention of a provision of the
26                    regulations is an offence;
27              (j)   provide, in relation to bodies corporate, for an offence to
28                    be punishable on conviction by the imposition of a fine
29                    not exceeding $50 000 and, if the contravention is of a
30                    continuing nature, a further fine not exceeding $20 000
31                    in respect of each day or part of a day during which the
32                    contravention continued after the offender was notified
33                    by a specified person that the person is of the opinion
34                    that the offender is contravening the provision;


     page 32
                           Gas Supply (Gas Quality Specifications) Bill 2009
                                         General provisions           Part 6

                                                                          s. 34



 1          (k)    provide, in relation to individuals, for an offence to be
 2                 punishable on conviction by the imposition of a fine not
 3                 exceeding $5 000;
 4           (l)   provide for the imposition of a minimum fine for an
 5                 offence;
 6          (m)    relate the level of a fine to --
 7                   (i) the circumstances or extent of the offence;
 8                  (ii) whether the offender has committed previous
 9                         offences and, if so, the number of previous
10                         offences that the offender has committed.
11   (3)   If it is inappropriate to prescribe a set fee or charge in
12         connection with the performance of a function of an arbitrator
13         or an expert the regulations may provide for the method of
14         calculating the fee or charge, including calculation according to
15         the cost of performing that function.
16   (4)   The regulations may adopt the text of any published document
17         specified in the regulations --
18           (a) as that text exists at a particular date; or
19           (b) as that text may from time to time be amended.
20   (5)   The text may be adopted --
21          (a) wholly or in part; and
22          (b) as modified by the regulations.
23   (6)   The adoption may be direct (by reference made in the
24         regulations), or indirect (by reference made in any text that is
25         itself directly or indirectly adopted).
26   (7)   The adoption of text is of no effect unless --
27          (a) the adopted text; and
28          (b) the amendments to the text or the text as amended (if
29                relevant),
30         can at all reasonable times be inspected or purchased by the
31         public.

                                                                      page 33
     Gas Supply (Gas Quality Specifications) Bill 2009
     Part 7         Acts amended
     Division 1     Energy Coordination Act 1994 amended
     s. 35



 1                          Part 7 -- Acts amended
 2         Division 1 -- Energy Coordination Act 1994 amended
 3   35.       Act amended
 4             This Division amends the Energy Coordination Act 1994.

 5   36.       Section 26 amended
 6             Delete section 26(3), (4) and (5).

 7         Division 2 -- Gas Pipelines Access (Western Australia)
 8                          Act 1998 amended
 9   37.       Act amended
10             This Division amends --
11              (a) if this section comes into operation before the day on
12                    which the National Gas Access (WA) Act 2009
13                    section 26 comes into operation -- the Gas Pipelines
14                    Access (Western Australia) Act 1998; or
15              (b) otherwise -- the Gas Pipelines Access (Western
16                    Australia) Act 1998 (as amended by the National Gas
17                    Access (WA) Act 2009 and cited as the Energy
18                    Arbitration and Review Act 1998).

19   38.       Section 73 amended
20             Before section 73(1)(d) insert:
21

22                   (da)    under the Gas Supply (Gas Quality
23                           Specifications) Act 2009; or
24


25




     page 34
                                  Gas Supply (Gas Quality Specifications) Bill 2009



                                                                                                 Defined Terms



                                       Defined Terms
      [This is a list of terms defined and the provisions where they are defined.
                             The list is not part of the law.]
Defined Term                                                                                             Provision(s)
access determination ........................................................................................ 3(1)
Account.......................................................................................................... 22(1)
Authority........................................................................................................ 22(1)
consumer........................................................................................................ 22(1)
consumer installation ..................................................................................... 22(1)
contribution.................................................................................................... 22(1)
contributor...................................................................................................... 28(1)
Coordinator ...................................................................................................... 3(1)
Department .................................................................................................... 22(1)
downstream agreement .......................................................................................15
exempt contract................................................................................................ 3(1)
Gas Access Law............................................................................................... 3(1)
gas appliance.................................................................................................. 22(1)
gas consumer.................................................................................................... 3(1)
gas contract .................................................................................................... 14(1)
gas distribution system..................................................................................... 3(1)
gas installation ............................................................................................... 22(1)
gas producer..................................................................................................... 3(1)
gas storage facility ........................................................................................... 3(1)
gas transmission pipeline ................................................................................. 3(1)
inlet point ......................................................................................................... 3(1)
lower heating value gas.................................................................................. 22(1)
operator ............................................................................................................ 3(1)
Part 4 pipeline .....................................................................................................15
parties............................................................................................................... 8(1)
PIA pipeline ............................................................................................ 3(1), 5(1)
pipeline ............................................................................................................ 3(1)
pipeline impact agreement ...................................................................... 3(1), 6(1)
pipeline service ................................................................................................ 3(1)
pipeline services agreement ............................................................................. 3(1)
plant and equipment costs...................................................................................15
rectification programme...................................................................... 22(1), 23(2)
reference specification ..................................................................................... 3(1)
reimbursement amounts ................................................................................. 28(4)
reimbursement period .................................................................................... 22(1)
reimbursement scheme................................................................................... 28(3)
relevant consumer installation ....................................................................... 23(1)
relevant effects........................................................................................ 3(1), 7(2)
relevant gas quality specification........................................................................15


                                                                                                             page 35
Gas Supply (Gas Quality Specifications) Bill 2009



Defined Terms



      relevant gas transmission pipeline ................................................................. 28(1)
      short-term situation ........................................................................................ 10(2)
      site......................................................................................................... 3(1), 22(1)
      specified........................................................................................................... 3(1)
      standard specification....................................................................................... 3(1)
      supply............................................................................................................. 28(1)
      Third Party Access Code ................................................................................. 3(1)
      unpaid amounts .............................................................................................. 28(4)
      user................................................................................................................... 3(1)




 


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