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s 14

Modifying gas contracts

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Part 3Modifying gas contracts

14 Modifying gas contracts

(1)

In this section —

gas contract means a contract that relates to the sale, supply, storage, delivery, receipt or transportation of gas transported or to be transported through a gas transmission pipeline.

(2)

The regulations may modify existing and future gas contracts for the purposes of this Act, including by doing the following —

(a)

providing that the contracts have effect so that the gas to be sold, supplied, stored, transported, delivered or received under the contracts need only comply with a gas quality specification provided for in the regulations;

(b)

providing that specified references to gas quality specifications in the contracts have effect as if they were references to a gas quality specification provided for in the regulations;

(c)

dealing with the effects on gas contracts —

(i)

of having been modified under paragraph (a) or (b); or

(ii)

of the enactment and coming into operation of this Act or of any particular provision of this Act; or

(iii)

of gas flowing into a gas transmission pipeline, being gas that does not comply with the reference specification for the pipeline.

(3)

For the purposes of subsection (2)(a) and (b), the ways in which the regulations may provide for a gas quality specification include the adoption of a gas quality specification in, or worked out in accordance with, a pipeline impact agreement or gas contract.

(4)

Regulations made for the purposes of subsection (2)(a) or (b) cannot, in relation to gas flowing, or that has flowed, out of a PIA pipeline, provide for a gas quality specification that is less stringent than the standard specification for the gas transmission pipeline.

(5)

In dealing with the effects on a gas contract of a matter referred to in subsection (2)(c), the regulations may provide that the contract does or does not have a certain effect, including that the occurrence of the matter —

(a)

is not to be considered as a breach of the contract; or

(b)

does or does not modify existing rights, duties or liabilities, or give rise to additional rights, duties or liabilities, under the contract.

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