Gas Supply (Gas Quality Specifications) Act 2009

The regulations may provide for and in relation to a scheme of compensation under which a gas consumer, an operator of a Part 4 pipeline or an operator of a gas storage facility is entitled to compensation from gas producers for —

the costs incurred by the consumer or operator as a result of being delivered gas that does not comply with the relevant gas quality specification for the consumer or operator; and

the loss of capacity (in terajoules) of a gas storage facility resulting from the operator of the facility being delivered gas that does not comply with the relevant gas quality specification for the operator.

The regulations may do the following —

provide for the resolution of disputes arising out of the compensation scheme, including by an arbitrator;

provide for specified disputes to be resolved by the determination of an expert chosen in accordance with the regulations and for such determinations to be final and binding on the parties to the dispute;

provide for the enforcement of entitlements under the scheme, including as determined by an arbitrator.

The costs referred to in subsection (1)(a) are, under the regulations, to be limited to the direct costs incurred by the consumer or operator and may, under the regulations, be offset by the value of any benefit derived from being delivered the gas.

The regulations may modify the application of this Part in relation to the exempt contract.

A provision of this section, section 17 or section 18 that sets a limit on the compensation payable under the scheme does not mean that the regulations cannot further limit the compensation payable.

A gas producer is not to be liable, under regulations made for the purposes of this Part, to provide compensation except in relation to supplying gas that does not comply with the reference specification for a gas transmission pipeline into which the gas flows.