RE: CONTRAVENTION OF CONDITIONS OF LICENCE NUMBER PPL.p.Fll67-68/2006

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Mervyn Gilbert
5 years ago
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1 line Tel: +27 (12) Fax: +27 (12) Highgrove Office Park No 2 Cnr Tegel and Oak Avenues Highveld Techno Park Centurion 0157 South Africa PO Box Highveld, 0169 South Africa, { NERSA Kulawula House 526 Madiba Street Arcadia 0083 BY HAND REF: NERSA March 2015 Dear Sirs RE: CONTRAVENTION OF CONDITIONS OF LICENCE NUMBER PPL.p.Fll67-68/2006 After due consultation and deliberation between the shareholders of Petro line RSA (Pty) Ltd, the licence holder, it was decided by the majority of the shareholders (WOESA 50%; CDPM 15% and Gigajoule International (Pty)Ltd 20%) to approach the NERSA in terms of article 24 of the Petroleum Pipelines Act to apply to have the abovementioned licence revoked on application by the licence holder for reasons set out in the attached FORM: APPLICATION FOR THE REVOCATION OF A LICENCE. We wou1d also request the NERSA to waive the time period prescribed in article 24(2) of the Act and to regard this letter and application as proper notice for purposes of article 24(2). ( We kindly await your decision on our request regarding the notice period as well as your decision on our application to have the licence revoked. Attached: 1. Company Minutes-I Annexure J; 2. Annexure F-Form: APPLICATION FOR THE REVOCATION OF A LICENCE with Annexures A - K. PETROLINE RSA (PROPRIETARY) LIMITED Registration Number 2004/013101/07 Directors: BMF Morgado* ( * Mozambique)

2 STAATSKOERANT, 12 DESEMBER 2014 No NATIONAL ENERGY REGULATOR OF SOUTH AFRICA FORMF Application for the revocation of a licence in terms of section 24 of the Petroleum Pipelines Act, 2003 (Act No. 60 of 2003) INSTRUCTION,S 1. Before completing this form, you are advised to read the following documents: (a) the Petroleum Pipelines Act (Act No. 60 Of 2003) and its regulations; and (b) the Rules made in terms of t~e Pelroleum Pipelines Act, speclflcally rule 2. Please 'note that this form has fol.ir sectl,bns (A, B, C, & D). An applicant must provide all information and su~pc>rting ' documentation required. Incomplete applications will not be accepted. 3. The compl'eted form with supp'ortlng documentation must be d,ellvered to the Energy Reg1,1lator: (a) by registered mail to: P O Box , Ar~dia 0007; or (b) by h,and at: 1 ~lawu'a House, ~26 fyla~i~a. ~t,reet, Arcadia, Pretoria; or. (c) electr.onically to ploelines@nersa.otg.za( or (d) by fax to ,,;. 4. If you want to ~equest the confidet]~ iat tre~tment of certain information in your applica~ion, y9'u must do so in a,ccordi:lnce with Rule 4 of the R,ul~s made In terms of the Petroleum Pipelines Arit. ENQUIRIES: ' Contact: Contact no.: Fax no.: Execut,ive M~nagim Petroleum Pipelines Regulation (012) (012) = ~ "'!- ---!"'~ OFFICIAL USE ONLY Date received Reference number 53

3 SECTION A: PARTICULARS OF LICENSEE 1. Name of licensee Petroline RSA (Pty)Ltd 2. Licence number PPL.p.F1/67-68/ Type of licence Construction License 4. Date on which the Energy Regulator issued the licence 5 April Details of the licensed facility/ activity Construction of a twelve inch petroleum pipeline from the Ressano Garcia I Komatipoort area to Kendal via Nelspruit, in the District Municipality of Enhlanzeni, as well as storage systems 6. Details of mandated representative, including: (a) Designation Director of Shareholder Gigajoule International (Pty) Ltd (b) family name De Vos (c) first name Johannes Stephanus (d) telephone number (e) fax number (f) address jdevos@gigajoule.co.za

4 SECTION B: REASON(S) FOR APPUCA TION 7. Indicate the reason(s) for the application by ticking the appropriate box below: (a) The licensed facility or activity is no longer required D 0 (b) The licensed facility or activity is not economically justifiable (c) Another person is willing and able to assume the rights and obligations of the D licensee concerned in accordance with the requirements and objectives of the Act 8. If the reason for the application is that the licensed facility or activity is no longer required, or is not economically justifiable, provide a detailed explanation and submit documentation in support of your reason(s). Since the decision was made to allow Transnet to use a rolled-in approach to determine their tariff together with a levy granted by the government to asssit in funding the NMPP, the Petroline Pipeline was not economically feasible anymore and could not compete against the Transnet NMPP. This situation has not changed. Petroline communicated with Nersa on on its concerns if cross subsidisation would be allowed in the Transnet NMPP application. (Annexure A) Nersa awarded a license to Transnet for its NMPP on Under points 95 and 96 of the license award, Nersa states that cross subsidisation will not be allowed. (Annexure 8) In the February 2010 budget speech, Mr Pravin Gordhan announced a 7.Sc levy on the petrol price to help fund the Transnet NMPP. A letter was sent to Nersa on , where it stated that it would cease its project development costs and gave a detailed explanation on the reason behind it. (Annexure C) On Nersa published its reasons for amending the NMPP license application, ~here a rolled in approached is use. (Annexure D)

5 9. If the reason for the application is that another person is willing and able to assume the rights and obligations of the licensee in accordance with the requirements and objectives of the Act, provide the following information about that person - a. registered name b. trading name (if different from registered name) c. physical address of the registered place of business d. physical address of the principle place of business (if different from the registered place of business) e. postal address f. telephone number g. fax number h. address i. contact person at applicant, including: designation family name first name telephone number fax number address j. submit an undertaking (Section C of this form) by that person confirming its willingness and ability to assume the rights and obligations of the licensee in accordance with the requirements and objectives of the Act and that the person will apply for the relevant licence.

6 k. submit documentary proof of the ability to assume the rights and obligations of the licensee in accordance with the requirements and objectives of the Act. )

7 SECTION C: SOLEMN DECLARATION BY THE PERSON WILLING AND ABLE TO ASSUME THE RIGHTS AND OBLIGATIONS OF THE LICENSEE OR MANDATED REPRESENTATIVE I (full names) Identity Number hereby declare that: a. I am authorised by to make this declaration (attach the authorisation); b. all information relating to provided herein is within my personal knowledge and is both true and correct; c..... nla..... is willing and able to assume the rights and obligations of the licensee in accordance with the requirements and objectives of the Act; and d will apply for the relevant licence Signature I certify that the deponent: (a) has acknowledged that she/he knows and understands the contents of this application form and and its annexures, that she/he has no objection to taking the prescribed oath and that she/he considers the oath binding on her/his conscience; (b) has in the prescribed manner sworn that the contents of this application form and its annexures are true and signed same before me at (place) on this day of (month) (year) COMMISSIONER OF OATHS Name Address _ ) Capacity _

8 SECTION D: SOLEMN DECLARA T/ON BY THE APPLICANT/ MANDA TED REPRESENTATIVE I (full names) Johannes Stephanus de Vos Identity Number hereby declare that: (a) I am authorised by Petroline RSA (Pty) Ltd, reg nr 2004/013101/07 to make this declaration provided herein is within my personal knowledge and is both true and correct. I certify that the deponent: (a) has acknowledged that she/he knows and understands the contents of this application form and its annexures, that she/he has no objection to taking the prescribed oath and that she/he considers the oath binding on her/his conscience; and (b) has in the prescribed manner sworn that the contents of this application form and its annexures are true and signed same before me at..... ~~!.~~.~~: (place) on this ~$: day of '!~~ (month)... ~. ~.'.'-?..... (year). COMMIS;O~F OATHS Name Address Capacity COMMISSIONER OF OATHS (RSA) E;lsa Emmarentia van Dyk Professional Accountant (SA) Membership nr High Grove Office Park 50 Tegel Avenue Highveld 0157 J

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