GAS SUPPLY ACT 1993

LAWS OF MALAYSIA ONLINE VERSION OF UPDATED TEXT OF REPRINT Act 501 GAS SUPPLY ACT 1993 As at 1 January 2013 2 GAS SUPPLY ACT 1993 … … … 22 January 1993 Date of publication in the Gazette … … 4 February 1993 Latest amendment made by Act A1126 which came into operation on … … … … 2 January 2002 Date of Royal Assent … … PREVIOUS REPRINTS First Reprint … … … 2002 Second Reprint … … … 2006 3 LAWS OF MALAYSIA Act 501 GAS SUPPLY ACT 1991 ARRANGEMENT OF SECTIONS PART I PRELIMINARY Section 1. Short title, commencement and application 2. Interpretation PART II ESTABLISHMENT 3. (Deleted) PART III FUNCTIONS AND DUTIES OF COMMISSION 4. Functions and duties PART IV POWERS OF ENTRY, INVESTIGATION AND PROSECUTION 4A. Authorized Officer 5. Power of entry by warrant or otherwise, inspection, examination, seizure, etc. 4 Laws of Malaysia ACT 501 Section 6. Powers of investigation 7. Power to require attendance of person acquainted with case 8. Examination of person acquainted with case 9. Prosecution 10. Reward for information PART V LICENCE 11. Licence required for supply of gas: terms, conditions and contents of licence 12. Security, suspension or revocation of the licence PART VI PROVISIONS RELATING TO THE LICENSEE, SUPPLY OF GAS, ENTRY INTO LAND, ETC. 13. Power to fix tariffs 14. Duty to supply on request 15. Exceptions to duty to supply gas 16. Power of licensee to recover expenses 17. Power of licensee to require security 17A. Return of security with interest 18. Special agreement with respect to supply 19. Charge for supply of gas to be ascertained by appropriate meter 20. Reduction or cessation of supply: liability 21. Disconnection of supply of gas 22. Liabilities unaffected 23. Power to enter on and examine land 24. Power to enter on land for purposes of construction 25. Maintenance, repair and upgrading of pipeline or installation 26. Removal or alteration of pipeline or installation Gas Supply Section 27. Wayleave agreements 28. Compensation PART VII INQUIRY 29. Procedure in inquiry PART VIII OFFENCES AND PENALTIES 30. Offences 31. General penalty 32. Offences committed by body corporate: officers deemed to be guilty 33. Onus of proof 34. Compounding PART IX GENERAL 35. Competent person 36. Serious accidents to be reported 37. Protection of Commission and authorized officers 38. Special powers in emergency PART X POWER TO MAKE REGULATIONS 39. Power to make regulations 5 6 Laws of Malaysia PART XI MISCELLANEOUS Section 40. Certain sections of Act not applicable to factories 41. Provisions to the contrary 42. Exemption 43. Transitional and saving provision FIRST SCHEDULE SECOND SCHEDULE THIRD SCHEDULE ACT 501 7 LAWS OF MALAYSIA Act 501 GAS SUPPLY ACT 1993 An Act to provide for the licensing of the supply of gas to consumers through pipelines and related matters, the supply of gas at reasonable prices, the control of gas supply pipelines, installations and appliances with respect to matters relating to safety of persons and for purposes connected therewith. [17 July 1997, P.U. (B) 278/1997] BE IT ENACTED by the Seri Paduka Baginda Yang di-Pertuan Agong with the advice and consent of the Dewan Negara and Dewan Rakyat in Parliament assembled, and by the authority of the same, as follows: PART I PRELIMINARY Short title, commencement and application 1. (1) This Act may be cited as the Gas Supply Act 1993 and shall come into force on such date as the Minister may, by notification in the Gazette, appoint. (2) This Act shall apply throughout Malaysia; however the Minister may by order suspend the operation of the whole or any of the provisions of this Act in any State. (3) This Act shall apply to the supply of gas to consumers through pipelines— 8 Laws of Malaysia (4) ACT 501 (a) downstream of the last flange of the city gate station; or (b) from the filling connection of a storage tank or cylinder specifically used for reticulation or delivery of gas to any apparatus in any premises. In subsection (3)— “city gate station” means a station with gas measurement and pressure-regulating facilities where gas is received directly from the gas transmission pipelines and subsequently delivered through the gas pipeline distribution system for the supply of gas to the consumer; “transmission pipelines” means pipelines transporting gas from the outlet of the gas processing plant or receiving terminal to the inlet of the city gate station. Interpretation 2. In this Act, unless the context otherwise requires— “area of supply” means the area within which a licensee is authorized to supply gas; *“authorized officer” means any public officer or officer of the Commission who is authorized in writing by the Minister for the purposes of this Act; *“Chairman” means the Chairman of the Energy Commission appointed by the Minister under the Energy Commission Act 2001 [Act 610]; *“Commission” means the Energy Commission established under the Energy Commission Act 2001; *NOTE— see Section 27 of Gas Supply (Amendment) Act 2001 [Act 1126]. Gas Supply 9 “competent person” means a person who holds a certificate of competency issued by the Commission or any other equivalent certificate issued by any government body to perform work in accordance with the restrictions, if any, stated in the certificate; “consumer” means a person who is supplied with gas or whose premises are for the time being connected for the purpose of supply of gas by a licensee; “danger” means danger to health or to human life or limb from shock, burn, or other injury and includes danger to property, pipeline or installation resulting from the transmission, distribution or utilization of gas; “dishonestly” has the meaning assigned thereto in the Penal Code [Act 574]; “District Land Administrator” has the meaning assigned to “Land Administrator” by section 5 of the National Land Code [Act 56 of 1965], to “Collector” by section 4 of the Land Ordinance of Sabah [Sabah Cap. 68] and to “the Director” by section 2 of the Land Code of Sarawak [Sarawak Cap. 81]; “gas” means methane, ethane, propane, butane or hydrocarbons which may consist of one or more of the aforesaid gases, either in the form of gas or liquid; “installation” means all parts of those physical facilities involved in the delivery, transportation, distribution or utilization of gas through pipelines including any machine, equipment, apparatus, pump, valve, compressor unit, meter, regulator, any appurtenance attached to pipelines and any other assembly; “licence” means a licence issued under section 11; “licensee” means a person licensed under section 11; 10 Laws of Malaysia ACT 501 “Minister” means the Minister for the time being charged with the responsibility for matters relating to petroleum; “pipelines” means all parts of those physical facilities through which gas moves in transportation; “Registrar” means the Registrar as defined in the National Land Code, the Land Ordinance of Sabah or the Land Code of Sarawak, as the case may be; “reserved land” means land reserved for a public purpose, railway reserves and forest reserves; “safety” means the obviation of danger to the general public or to property; “State land” does not include reserved land and alienated land; “supply of gas” means the delivery, transportation, distribution or reticulation of gas through pipelines. PART II ESTABLISHMENT 3. (Deleted by Act A1126). PART III FUNCTIONS AND DUTIES OF COMMISSION Functions and duties 4. (1) The Commission shall carry out such functions and duties as follows: Gas Supply 11 (a) to secure that a licensee authorized by or under this Act to supply gas through pipelines satisfies all reasonable demands for gas; (b) without prejudice to the generality of paragraph (a), to secure that such licensee is able to finance the provision of gas supply services; (c) to protect the interests of consumers of gas supplied through pipelines in respect of— (i) the prices charged and the other terms of supply; (ii) the continuity of supply; and (iii) the quality of the gas supply services provided; (d) to regulate the composition, pressure, purity and volume of gas supplied through pipelines; (e) to promote efficiency and economy on the part of licensees to supply gas through pipelines and the efficient use of gas supplied through pipelines; (f) to protect the public from dangers arising from the distribution of gas through pipelines or from the use of gas supplied through pipelines; (g) to enable persons to compete effectively in the supply of gas through pipelines; (h) to investigate any accident or fire involving any gas pipeline or installation; and (i) to carry on all such other activities as may appear to the Commission requisite, advantageous or convenient for the purpose of carrying out the provisions of this Act. 12 Laws of Malaysia ACT 501 (2) The functions and duties of the Commission may at any time be carried out by any officer of the Commission duly appointed in writing by the Commission for such purpose. (3) (Deleted by Act A1126). PART IV POWERS OF ENTRY, INVESTIGATION AND PROSECUTION Authorized officer 4A. The Minister may in writing authorize any public officer or officer of the Commission to exercise the powers of enforcement under this Act. Power of entry by warrant or otherwise, inspection, examination, seizure, etc. 5. (1) An authorized officer may, for the purposes of discharging any of his duties or carrying out any of his functions under this Act or any regulation made thereunder, enter at any reasonable time upon any land, house or building to inspect and examine any pipeline or installation or part thereof, or for other proper cause. (2) In exercising his powers under subsection (1) an authorized officer may— (a) take samples of any gas from the premises entered and require the occupier or his agents or servants present in the premises to show him every place and any pipeline, installation, storage tank or cyclinder in his premises; (b) test or cause to be tested, at any convenient place and at such reasonable time as he may appoint, any sample so Gas Supply 13 obtained by him. (3) If upon such inspection or examination the authorized officer finds any defect, which he has reasonable cause to believe is likely to cause danger, he may— (a) by notice in writing require the rectification of the defect; (b) cause the discontinuation of the gas supply; or (c) remove or seal any pipeline, installation or part thereof. (4) In every case where information is given on oath to any Magistrate that there is reasonable cause for suspecting that there is in any land, house or building any article, thing, book, document, pipeline, installation or part thereof which has been used to commit or is intended to be used to commit any offence under this Act or any regulation made thereunder, he shall issue a warrant under his hand by virtue of which any authorized officer named or referred to in the warrant may enter the land, house or building at any reasonable time by day or night, and search for and seize or seal any such article, thing, book, document, pipeline, installation or part thereof: Provided that if the authorized officer is satisfied upon information received that he has reasonable grounds for believing that by reason of delay in obtaining a search warrant, any article, thing, book, document, pipeline, installation or part thereof used to commit or intended to be used to commit an offence under this Act or any regulation made thereunder is likely to be removed or destroyed, he may enter such land, house or building without a warrant and seize or seal any such article, thing, book, document, pipeline, installation or part thereof found therein: Provided further that it shall be an offence for any person without lawful authority to break, tamper with or damage such seal or remove any such article, thing, book, document, pipeli