LICENCE CONDITIONS FOR TRADING IN GAS BY NGV GAS (PTY) LTD
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2 Licence number: Gala.tr.F1/1445/2009 LICENCE CONDITIONS FOR TRADING IN GAS BY NGV GAS (PTY) LTD TABLE OF CONTENTS DEFINITIONS 2 CHAPTER ONE: LICENSED ACTIVITIES... 3 CHAPTER TWO: GENERAL CONDITIONS... 4 CHAPTER THREE: SPECIFIC CONDITIONS... 9 ANNEXURE: Annexure A List of applicable standards, legislations and codes relevant to the storage, use and handling of compressed gases Page 1 of 10
3 DEFINITIONS For the purpose of this licence and its conditions, any word or expression to which a meaning has been assigned in the Act and the Rules shall have the meaning so assigned, unless the context indicates otherwise. In these licence conditions, the following expressions shall have the following meanings:- Regulations means the Piped-Gas Regulations made in terms of section 34(1) of the Act. Piped Gas Regulations published under GN R321 in GG of 20 April Rules means Rules made by NERSA in terms of section 34(3) of the Act. the Act means the Gas Act, 2001 (Act No. 48 of 2001), and includes Regulations made in terms of the Act. NERSA means the National Energy Regulator established in terms of section 3 of the National Energy Regulator Act, 2004 (Act No. 40 of 2004). Page 2 of 10
4 CHAPTER ONE: LICENSED ACTIVITIES 1 Licensed activities 1.1 NERSA issues the Licensee a licence to trade in gas in the Langlaagte area of the City of Johannesburg Metropolitan Municipality. 1.2 The Licensee must provide NERSA with details of the locations (including addresses and geographic positioning system coordinates) of its refueling stations, within fourteen days of establishment of such refueling stations. 1.3 The Licensee must carry out these activities in a manner consistent with the provisions of the Act. 1.4 The Licensee must commence with the trading activities contemplated in 1.1 above within twenty four months of the date of issue of the licence. 1.5 The Licensee may not assign this licence to another party. 2 Duration of licence 2.1 This licence is valid for a period of twenty five years from the date of issue, unless revoked in accordance with the provisions of the Act. 2.2 The Licensee may apply to have its licence renewed subject to the provisions of the Act. Page 3 of 10
5 CHAPTER TWO: GENERAL CONDITIONS 3 Amendment of licence This licence may be amended in accordance with the Act and the Rules. 4 Revocation of licence This licence may be revoked by NERSA in accordance with the provisions of the Act. 5 Compliance 5.1 The Licensee must comply with the conditions of this licence, the Act and the Rules. 5.2 The Licensee must comply with the applicable standards, legislations and codes relevant to the storage, use and handling of compressed gases including those listed in Annexure A. 5.3 This licence is granted only in terms of the Act and for the activities specified and described in 1.1 above. This licence does not exempt the Licensee from compliance with any other legislation. Page 4 of 10
6 6 Changes in the details of the Licensee 6.1 The Licensee must notify NERSA if the control of the Licensee, as contemplated in section 12(2) of the Competition Act, 1998 (Act No. 89 of 1998), changes. 6.2 The Licensee must provide NERSA with details of any changes in its registered name, operating or trading name, registered address and other contact details, including but not limited to the names, telephone numbers, facsimile numbers and addresses of contact persons. 6.3 The notifications contemplated in 6.1 and 6.2 above must be provided within fourteen days of the event giving rise to them. 7 Entry, inspection and gathering of information The Licensee must permit any authorised person, at all reasonable times, to enter and inspect any property on which a licensed activity is taking place, and inspect any facility, equipment, machinery, book, account or other document and gather any information in accordance with the Act and the Rules. 8 Participation of Historically Disadvantaged South Africans 8.1 The Licensee must annually provide NERSA with the information regarding Historically Disadvantaged South Africans as prescribed in the Regulations. 8.2 The Licensee must submit the information contemplated in 8.1 above to NERSA within thirty days of its financial year end. Page 5 of 10
7 9 Transaction recording and Regulatory Financial Reporting 9.1 The Licensee must keep detailed records of all gas trading transactions and agreements entered into. 9.2 The Licensee must maintain separate accounts for its gas trading activities and compile gas trading data separately from any other accounts or data collection. These separately maintained accounts must be prepared in accordance with the Regulatory Reporting Manuals as prescribed by NERSA. 9.3 The Licensee must comply with the requirements on Regulatory Financial Reporting as prescribed by NERSA in the Regulatory Reporting Manuals. 10 Monitoring and provision of information 10.1 The Licensee must keep records relating to the compliance or noncompliance with the conditions of this licence The Licensee must make the records referred to in 10.1 above available to NERSA within fourteen days of receipt of a written request for such records The Licensee must provide NERSA with reports indicating the progress made in terms of executing the licensed activities, every six months, from the date of issue of the licence The Licensee must furnish NERSA with information in such form and manner and at such times as NERSA may require in the performance of its duties or functions under the Act. Page 6 of 10
8 10.5 The information that the Licensee must furnish NERSA with must include, but is not limited to, the following (a) the full name, physical address of, and annual volume supplied to the refueling station for natural gas vehicles (in Gigajoules of gas per annum) and average charge (in Rands per Gigajoule of gas) for that financial year. (b) for each of the Licensee s customers, other than those in (a) above, who consume less than ten million Gigajoules of gas per annum, the full name, physical address, annual volume supplied (in Gigajoules of gas per annum) and average charge (in Rands per Gigajoule of gas) for that financial year. (c) detailed audited annual financial statements, consisting of a balance sheet, income statement and cash flow statement for the licensed activity. This information must be furnished within six calendar months of the end of the Licensee s financial year The data supplied by the Licensee in terms of 10.5(a) and (b) above must (a) (b) (c) (d) be limited to gas; separately reflect actual prices and tariffs, as well as any other charges paid by the end-consumer excluding taxes; include meter rental, standing charge and the initial installation charge to the customer, where applicable; and be reported in Rands per Gigajoule of gas The information contemplated in 10.5 (a) and (b) must be furnished within three calendar months of the end of the Licensee s financial year. Page 7 of 10
9 11 Correspondence 11.1 All official communication by the Licensee with NERSA must be in writing, signed and addressed to NERSA The Licensee must in all correspondence with NERSA quote the licence reference number as it appears on this licence certificate. Page 8 of 10
10 CHAPTER THREE: SPECIFIC CONDITIONS 12 Advisory service to customers on safety, efficient use, handling and storage of gas 12.1 The Licensee must provide an advisory service, as approved by NERSA, to customers other than Eligible Customers on the safe and efficient use, handling and storage of gas The advisory service to customers must include, but is not limited to, the provision of the following information- (a) (b) (c) information on the technical specifications and chemical properties of gas relevant to its use; the proper procedure for the reporting of gas leaks or equipment defects; and safety procedures to be followed and the appropriate dedicated telephone numbers to call in case of an emergency, at any hour on any day. 13 Pricing 13.1 The Licensee must not charge prices above the maximum prices approved by NERSA The Licensee must within three months of the date of issue of the licence and whenever requested by NERSA thereafter, provide sufficient information as required by NERSA for it to determine maximum prices. Page 9 of 10
11 13.3 When gas is sold, the Licensee must, in the accompanying sales invoice, itemise the constituent elements of the total price reflected on the invoice, including at least the cost of gas, any transport tariffs and any other charges The invoices issued by the Licensee to customers (and consumers) must indicate:- (a) (b) the acquisition or production cost of the gas; and details of all tariff charges applied, including metering and other charges. 14 Non-discrimination The Licensee may not discriminate between customers or classes of customers regarding access, tariffs, prices, conditions or service, except for objectively justifiable and identifiable differences regarding such matters as quantity, transmission distance, length of contract, load profile, interruptible supply or other distinguishing feature approved by NERSA. 15 Whole licence This licence constitutes the entire licence and supersedes all prior understandings and agreements between NERSA and the Licensee. Page 10 of 10
12 Annexure A List of applicable standards, legislations and codes relevant to the storage, use and handling of compressed gases SANS :2006 The handling, Storage, distribution and maintenance of liquefied petroleum gas in domestic, commercial, and industrial installation. SANS 20110:2003 ECE R110:2001 Part 6: the application of liquefied petroleum and compressed natural gases as engine fuels for internal combustion engines Uniform provisions concerning the approval of: I. Specific components of motor vehicles using compressed natural gas (CNG) in their propulsion system. II. Vehicles with regard to the installation of specific components of an approved type for the use of compressed natural gas (CNG) in their propulsion system PER SANS 347 SANS SANS 329 NFPA 52 (National Fire Protection Association) Pressure Equipment Regulation Categorisation and conformity assessment criteria for pressure equipment and nonpressurised systems Criteria for the operation of inspection authorities performing inspection in terms of the pressure equipment regulations Industrial thermo-processing equipment- Safety requirements for combustion and fuel-handling systems Organisation based in Massachusetts, USA. Servicing over 81,000 members worldwide. Cover Asia, Pacific region, Europe and Latin
13 API RP 520 (American Petroleum Institute) API 576 ASME/ANSI ASME VIII Div 1 ASME IX ASME / ANSI B 31.3 NAG/ENRG NAG E 403 (ET-ENRG-GD NO 3) NAG 441 NAG E 406 (ET-ENERG-GD No 6) South Africa National Standard, SANS 208:2005 America with codes, standards, research, training and education on fire hazards. Sizing and selection of pressure relief devices. Inspection and repair practices for automatic pressure relieving devices. American National Standards Institute Requirements applicable to design, fabrication, inspection, testing and certification of pressure vessels. Qualifications of welders, welding operators, brazing operators and procedures employed in welding or brazing in accordance with the ASME Boiler and Pressure Vessels Code. Requirements for materials and components, design, fabrication, assembly, erection, Examination, inspection, and testing of piping. Energas Technical specification CNG package compression and storage and other enclosed equipment, not requiring perimeter wall. Compression equipment for compressed natural gas filling station. Technical specification Transport system for CNG container modules. The design and installation of compressed natural gas (CNG) vehicle filling stations.
DEFINITIONS 2 CHAPTER ONE: LICENSED ACTIVITIES... 3 CHAPTER TWO: GENERAL CONDITIONS... 4 CHAPTER THREE: SPECIFIC CONDITIONS... 10
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