Sections Particulars
Chapter I Preliminary
1 Short title, extent, commencement and application
1.     This Act may be called the Petroleum and Natural Gas Regulatory Board Act, 2006.2.     It extends to the whole of India.3.     It shall come into f...
2 Definitions
In this Act, unless the context otherwise requires,-      i.        "affiliate code of conduct" means the code of conduct governing entities engaged in sto...
Chapter II Petroleum and Natural Gas Regulatory Board
3 Establishment and incorporation of the Board
1.     With effect from such date as the Central Government may, by notification, appoint, there shall be established, for the purposes of this Act, a Board ...
4 Qualifications for appointment of Chairperson and other members
1.     The Central Government shall appoint the Chairperson and other members of the Board from amongst persons of eminence in the fields of petroleum and na...
5 Term of office, conditions of service, etc. of Chairperson and other members
1.     Before appointing any person as the Chairperson or other member, the Central Government shall satisfy itself that such person does not have any financ...
6 Powers of Chairperson
The Chairperson shall have the powers of general superintendence and directions in the conduct of the affairs of the Board and shall, in addition to presiding...
7 Removal of Chairperson or any other member from office
The Central Government may remove from office the Chairperson or any other member, who-a.     has been adjudged as insolvent; orb.    has been convicted of...
8 Meetings of the Board
1.     The Board shall meet at such times and places, and shall observe such procedure in regard to the transaction of business at its meetings (including th...
9 Vacancies, etc., not to invalidate proceedings of the Board.-No act or proceeding of the Board shall be invalid merely by reason of
a.     any vacancy in, or any defect in the constitution of, the Board; orb.    any defect in the appointment of a person acting as a member of the Board; o...
10 Officers and other employees of the Board
1.     The Central Government may, in consultation with the Board, appoint a Secretary to exercise and perform such powers and duties, under the control of t...
Chapter III Functions and Powers of the Board
11 Functions of the Board
The Board shall-a.     protect the interest of consumers by fostering fair trade and competition amongst the entities;b.    register entities to-          ...
12 Powers regarding complaints and resolutions of disputes by the Board
1.     The Board shall have jurisdiction to-a.     adjudicate upon and decide any dispute or matter arising amongst entities or between an entity and any ot...
13 Procedure of the Board
1.     The Board shall have, for the purposes of discharging its functions under this Act, the same powers as are vested in a civil court under the Code of C...
Chapter IV Registration and Authorisation
14 Register
1.     For the purposes of this Act, a register to be called the Petroleum and Natural Gas Register shall be kept at the head office of the Board containing ...
15 Registration of entities
1.     Every entity desirous of-a.     marketing any notified petroleum or petroleum products or natural gas; or b.    establishing or operating a liquefied...
16 Authorisation
No entity shall-a.     lay, build, operate or expand any pipeline as a common carrier or contract carrier,b.    lay, build, operate or expand any city or lo...
17 Application for authorisation
1.     An entity which is laying, building, operating or expanding, or which proposes to lay, build, operate or expand, a pipeline as a common carrier or con...
18 Publicity of applications
When an application for registration for marketing notified petroleum, petroleum products and natural gas, or for establishing and operating a liquefied natur...
19 Grant of authorisation
1.     When, either on the basis of an application for authorisation for laying, building, operating or expanding a common carrier or contract carrier or for...
20 Declaring, laying, building, etc., of common carrier or contract carrier and city or local natural gas distribution network
1.     If the Board is of the opinion that it is necessary or expedient, to declare an existing pipeline for transportation of petroleum, petroleum products ...
21 Right of first use, etc
1.     The entity laying, building, operating or expanding a pipeline for transportation of petroleum and petroleum products or laying, building, operating o...
22 Transportation tariff
1.     Subject to the provisions of this Act, the Board shall lay down, by regulations, the transportation tariffs for common carriers or contract carriers o...
23 Suspension or cancellation of authorisation
If the Board, on an application of an affected party or on its own motion, is satisfied that the entity in favour of which authorisation has been granted unde...
Chapter V Settlement of Disputes
24 Board to settle disputes
1.     Save as otherwise provided for arbitration in the relevant agreements between entities or between an entity or any other person, as the case may be, i...
25 Filing of complaints
1.     A complaint may be filed before the Board by any person in respect of matters relating to entities or between entities on any matter arising out of th...
26 Power to investigate
1.     For the purposes of provisions of section 25, the Board shall, subject to the provisions of sub-section (3), appoint by general or special order, an o...
27 Factors to be taken into account by the Board
The Board shall, while deciding a dispute under this Chapter, have due regard to the provisions of this Act and to the following factors, namely:-a.     the ...
28 Civil penalty for contravention of directions given by the Board
In case any complaint is filed before the Board by any person or if the Board is satisfied that any person has contravened a direction issued by the Board und...
29 Orders passed by Board deemed to be decrees
Every order made by the Board under this Act shall, on a certificate issued by an officer of the Board, shall be executable in the same manner as if it were a...
Chapter VI Appeals to Appellate Tribunal
30 Appellate Tribunal
1.     Subject to the provisions of this Act, the Appellate Tribunal established under section 110 of the Electricity Act, 2003 (36 of 2003) shall be the App...
31 Technical Member (Petroleum and Natural Gas)
1.     The Technical Member (Petroleum and Natural Gas) shall be appointed from the panel prepared by the Search Committee constituted under sub-section (2) ...
32 Terms and conditions of service of Technical Member (Petroleum and Natural Gas)
The term of office, the salaries and allowances payable to and the other terms and conditions of service of the Technical Member (Petroleum and Natural Gas) s...
33 Appeals to Appellate Tribunal
1.     Any person aggrieved by an order or decision made by the Board under this Act may prefer an appeal to the Appellate Tribunal: Provided that any person...
34 Procedure and powers of the Appellate Tribunal
The provisions of sections 120 to 124 (both inclusive) of the Electricity Act, 2003 (36 of 2003) shall mutatis mutandis apply to the Appellate Tribunal in the...
35 Power of Appellate Tribunal to make rules
The Appellate Tribunal may, by notification, make rules consistent with the provisions of this Act as to the conduct and procedure in respect of all proceedin...
36 Orders passed by Appellate Tribunal to be executable as a decree
1.     Every order made by the Appellate Tribunal under this Act shall be executable by the Appellate Tribunal as a decree of a civil court, and for this pur...
37 Appeal to Supreme Court
1.     Notwithstanding anything contained in the Code of Civil Procedure, 1908 (5 of 1908) or in any other law, an appeal shall lie against any order, not be...
Chapter VII Finance, Accounts and Audit
38 Grants by Central Government
The Central Government may, after due appropriation made by Parliament by law in this behalf, make to the Board grants of such sums of money as are required t...
39 Fund
1.     There shall be constituted a Fund to be called the Petroleum and Natural Gas Regulatory Board Fund and there shall be credited thereto-              ...
40 Accounts and audit
1.     The Board shall maintain proper accounts and other relevant records and prepare an annual statement of accounts in such form as may be prescribed by t...
41 Annual report and its laying before Parliament
1.     The Board shall prepare once every year in such form and at such time as may be prescribed, an annual report giving a summary of its activities includ...
Chapter VIII Power of Central Government
42 Power of Central Government to issue directions
1.     The Central Government may, from time to time, by writing issue to the Board such directions as it may think necessary in the interest of the sovereig...
4# Taking over control and management of facilities and business premises of any entity and retail outlets in public interest
1.     In the event of war or natural calamity or such other similar circumstances leading to disruption of supply of petroleum, petroleum products or natura...
Chapter IX Offences and Punishment
44 Punishment for contravention of directions of the Board
If a person contravenes the directions of the Board, such person shall be punishable with fine which may extend to twenty-five crore rupees and in case of con...
45 Penalty for willful failure to comply with orders of Appellate Tribunal
If any person wilfully fails to comply with the order of the Appellate Tribunal, he shall be punishable with fine which may extend to one crore rupees and in ...
46 Punishment for unauthorized activities
If any person, being an entity, markets any notified petroleum, petroleum products or natural gas without a valid registration, or authorisation such person s...
47 Punishment for establishing or operating a liquefied natural gas terminal without registration
If a person establishes or operates a liquefied natural gas terminal without registration as required under section 15, such person shall be liable for punish...
48 Punishment for laying, building, operating or expanding a common carrier or contract carrier without authorisation
If a person lays, builds, operates or expands a common carrier or contract carrier or a city or local natural gas distribution network without obtaining autho...
49 Punishment for willful damages to common carrier or contract carrier
Every person who wilfully removes, destroys or damages any pipeline or city or local natural gas distribution network or other work of the common carrier or c...
50 Offences by companies
1.     Where an offence under this Act has been committed by a company, every person who at the time the offence was committed was in charge of, and was resp...
Chapter X Miscellaneous
51 Maintenance of data bank and information
1.     The Board shall maintain a data bank and information system relating to activities of entities dealing with petroleum, petroleum products and natural ...
52 Obligations of entities
1.     Every entity shall- a.     maintain such documentary records as may be specified by the Board by regulations;b.    allow inspection of such facilitie...
53 Furnishing of returns, etc., to Central Government
The Board shall furnish to the Central Government at such time and in such form and manner as may be prescribed or as the Central Government may direct, such ...
54 Chairperson, members, etc., to be public servants
The Chairperson, Members, Officers and other employees of the Board and Technical Member (Petroleum and Natural Gas) of the Appellate Tribunal shall be deemed...
55 Protection of action taken in good faith
No suit, prosecution or other legal proceeding shall lie against the Central Government, Board, Technical Authority or Appellate Tribunal or any officer of th...
56 Civil courts not to have jurisdiction
No civil court shall have jurisdiction to entertain any suit or proceeding in respect of any matter which the Board or the Appellate Tribunal is empowered by ...
57 Cognizance of certain offences
1.     No court shall take cognizance of any offence punishable under Chapter IX save on a complaint made by the Board or by any investigating agency directe...
58 Delegation
The Board may, by general or special order in writing, delegate to any member or officer of the Board subject to such conditions, if any, as may be specified ...
59 Power to remove difficulties
1.     If any difficulty arises in giving effect to the provisions of this Act, the Central Government may, by order, published in the Official Gazette, make...
60 Power of Central Government to make rules
1.     The Central Government may, by notification, make rules for carrying out the provisions of this Act.2.     In particular, and without prejudice to t...
61 Power of Board to make regulations
1.     The Board may, by notification, make regulations consistent with this Act and the rules made there under to carry out the provisions of this Act.2.   ...
62 Rules and regulations to be laid before Parliament
Every rule made by the Central Government and every regulation made by the Board under this Act shall be laid, as soon as may be after it is made, before each...
63 Transitional arrangements
1.     Where, before the commencement of this Act, an agreement or agreements have been entered into between one oil company and another for the purpose of s...
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