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s 7

Content of pipeline impact agreements

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Part 2Gas quality and capacity of PIA pipelines

7 Content of pipeline impact agreements

(1)

For the purposes of section 6(1)(a), the minimum requirements in relation to a supply of gas are that the pipeline impact agreement —

(a)

identifies the inlet point on the PIA pipeline into which the gas will flow; and

(b)

sets out the gas quality specification with which the gas must comply; and

(c)

sets out the maximum quantity of gas to be supplied; and

(d)

sets out the day on which it is proposed to commence supplying the gas or change the quality or quantity of gas to be supplied; and

(e)

sets out the relevant effects on the capacity, operations and maintenance of the PIA pipeline of the gas flowing into the pipeline, and the way that those effects are to be dealt with; and

(f)

sets out the duration of the agreement; and

(g)

sets out any other prescribed matters; and

(h)

complies with any prescribed requirements as to the form in which the matters to be set out in the agreement are to be expressed or otherwise presented.

(2)

For the purposes of this Act, the relevant effects on the capacity, operations and maintenance of a PIA pipeline, of gas (that does not comply with the reference specification for the pipeline) flowing into the pipeline, are —

(a)

the reduction in the pipeline’s capacity; and

(b)

the effects on the pipeline’s operations and maintenance,

attributable to the gas not being of a quality that complies with the reference specification for the pipeline.

(3)

The regulations may provide for the method by which, and the assumptions upon which —

(a)

a change in the capacity of a PIA pipeline is to be worked out; and

(b)

the effects on the pipeline’s operations and maintenance are to be worked out, including by limiting which effects are to be considered as effects for the purposes of subsection (2).

(4)

An agreement of the nature of a pipeline impact agreement, that was entered into after 1 January 2009 and before the commencement of this Part, in respect of a supply of gas that will flow into a PIA pipeline, is to be taken to comply with the minimum requirements set out in this section if it substantially complies with the requirements of subsection (1)(a), (b), (c), (d), (e) and (f) in relation to the supply.

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