LAWON PIPELINE TRANSPORT OF GASEOUS AND LIQUID HYDROCARBONS AND DISTRIBUTION OF GASEOUS HYDROCARBONS("Off. Herald of RS", No. 104/2009) |
Article 1
The present law shall regulate the requirements for safe and undisturbed pipeline transport of gaseous and liquid hydrocarbons and distribution of gaseous hydrocarbons, design and construction, maintenance and use of pipelines and indoor gas installations.
Article 2
Terms used in this Law shall have the following meaning:
1) Pipeline transport is the transport of gaseous and liquid hydrocarbons via oil pipelines, oil product pipelines and gas pipelines having operating pressure greater than 16 bar;
2) Distribution is the transfer of gaseous hydrocarbons from transport gas pipeline to a customer, via gas pipelines having operating pressure of 16 bar or lower;
3) Pipeline is the functionally connected series of pipes with associated fittings and devices, connected and installed in the proper manner, used for the transport of liquid and gaseous hydrocarbons and the distribution of gaseous hydrocarbons: gas pipelines, oil pipelines and oil product pipelines;
4) Gas pipeline is the transport and distribution pipeline for gaseous hydrocarbons. Gas pipelines are an interstate pipeline system for gas transport, pipelines from receiving stations, from injection (inlet) stations and gathering/injection stations in exploitation fields, from the locations of processing and preparing, from regasification plants, from and to natural gas storages to a customer including the pipelines for natural gas distribution. Integral parts of a gas pipeline are: compressor stations, pig stations, auxiliary tanks and pressure vessels, block stations, cathodic protection systems, fittings, metering/regulating stations, remote monitoring and control system, odourising systems, telecommunications network for the needs of remote monitoring system and other appropriate plants and devices;
5) Oil pipeline shall is the transport pipeline for crude oil from injection station, gathering/injection station or terminal to oil refinery, as well as an interstate system for oil transport. Integral parts of an oil pipeline are: pump stations and pig stations, cathodic protection systems, fittings, metering/regulating equipment, remote monitoring and control system, telecommunications network for the needs of remote monitoring system and other appropriate plants and devices;
6) Oil product pipeline is the pipeline used for the transport of liquid oil products from refinery plant to customer or storage. Integral parts of a product pipeline are: pump stations, fittings, measuring/control equipment, cathodic protection systems, telecommunications network for the needs of remote monitoring system and other appropriate plants and devices;
7) Pipeline system is the system consisting of a number of pipelines connected into one technical-technological unit, i.e. network, used for the transport or distribution of liquid, i.e. gaseous hydrocarbons in a certain area;
8) Interstate system for transport of oil, i.e. gas is the system for the transport of oil or natural gas, i.e. their processed products that is passing through the territory of the Republic of Serbia and the territories of other states;
9) Gaseous and liquid hydrocarbons are: natural gas, biogas, gas from gasification plants and their mixtures, crude oil, gas condensate and gaseous and liquid oil products, with the prescribed physical/chemical properties;
10) Indoor gas installations are: gas pipelines, connecting lines, associated shut-off, control and safety fittings, and equipment starting from behind the outlet fire cock of a metering/regulating station or behind the outlet connecting line of a measuring/control set, where natural gas is delivered to customer, including the top of combustion product discharge duct, except consuming devices;
11) Consuming devices are open flame devices wherein gaseous and liquid hydrocarbons combust, connected to indoor gas installations;
12) Odourisation is adding agents with characteristic, disagreeable, strong odour to natural gas, biogas and liquefied oil gas, in order to establish its uncontrolled release;
13) Technical management constitutes expert activities of organizing and controlling the functioning and maintenance of a pipeline system or a part thereof, i.e. a plant, as well as managing the work of persons handling and maintaining pipelines;
14) Handling means expert activities and operations during starting, shutting down, filling, discharging and manipulating a pipeline, as well as other operations performed in order to carry out pipeline transport and distribution;
15) Maintenance is the set of measures and actions for determining and estimating actual state of a pipeline, and activities for maintaining permanent technical functionality of the pipeline and establishing required state so as to provide conditions for safe and undisturbed pipeline transport and distribution;
16) Energy entity is a legal person, i.e. sole trader, registered for performing energy activity in the field of pipeline transport and/or distribution;
17) Customer is a legal or natural person purchasing gaseous and liquid hydrocarbons for its own needs;
18) Pipeline protection zone is the prescribed area on the both sides of a pipeline, counting from the pipeline axis, wherein other facilities affect its safety;
19) Work zone is the prescribed minimum area along pipelines’ route necessary for their undisturbed construction and maintenance;
20) Danger zones are prescribed areas wherein flammable or explosive mixtures of vapours, liquid and air, i.e. gas and air, are present or may become present.
II REQUIREMENTS FOR SAFE AND UNDISTURBED PIPELINE TRANSPORT OF GASEOUS AND LIQUID HYDROCARBONS AND DISTRIBUTION OF GASEOUS HYDROCARBONS
Article 3
Pipelines shall be designed and constructed within a corridor determined by the spatial plan, on a route for which is determined that, with regard to natural and work created conditions, and by enforcing regulations, it provides pipeline safety and protection of human life and health, the environment and tangible property.
Pipeline route shall be marked in the prescribed manner.
Pipelines to which a third party access right is not applied, shall not be intended for performing the activity of public interest and may not be constructed by using the expropriation.
Article 4
The Minister in charge of energy sector (hereinafter: the Minister), after obtaining the opinions of the minister in charge of internal affairs and minister in charge of environmental protection and spatial planning, shall define the requirements for: selecting the pipeline route, location and method for constructing the facilities being an integral part of the pipeline; selecting material, equipment and devices, pipeline operating parameters; method for measuring the quantities of gaseous and liquid hydrocarbons; pressure regulation and safety measures in case of exceeding permissible operating pressure; pipeline route marking; protection zone for pipeline, inhabited buildings, facilities and infrastructure facilities in the pipeline protection zone and the operating zone; danger zones and pipeline corrosion protection.
Article 5
Pipeline system shall be equipped with remote monitoring and control system and communication system, in order to accomplish safe and undisturbed transmission of information related to their use and maintenance.
The Minister shall specify the requirements and method for remote monitoring and control and communications system referred to under paragraph 1 of this Article.
Article 6
Electrical equipment and installations in danger zones shall be made fireproof and explosion-proof, in compliance with technical and other regulations.
The Minister, after obtaining the opinion of the minister in charge of internal affairs, shall define the requirements for design, installation and maintenance of equipment and installations under paragraph 1 of this Article.
Article 7
Natural gas, liquefied oil gas and biogas shall be odourised for the prescribed forms of consumption.
The Minister shall specify the requirements for designing odourisation system for gaseous hydrocarbons, selecting odourising agents and odourising method.
Article 8
During the construction of pipelines, but before their commissioning, pipeline testing shall be performed.
The Minister shall specify the requirements and method for testing pipelines during their construction, but before their commissioning.
Article 9
Pipeline commissioning shall be carried out in compliance with the law, technical and other regulations.
Article 10
The Minister shall specify the requirements and method for pipeline use, handling and maintenance during operation, overhaul and extraordinary events; pipeline protection from corrosion and leakage; inspection and maintenance of safety devices; testing of replaced parts and performed fault repairs; keeping records of faults; pipeline corrosion and leakage state; method for mandatory and periodic pipeline control and keeping special records of performed control.
Article 11
Energy entity performing the activity of pipeline transport i.e. distribution shall establish functional requirements, procedure and method for pipeline handling in its bylaws, according to the recommendation of the manufacturer of equipment, as well as the procedure and schedule of pipeline maintenance, in compliance with the law, technical and other regulations.
Article 12
Pipelines or parts of pipelines which are no longer in use, shall be physically separated from pipeline system, devices or plants, cleaned from hydrocarbons and flammable mixtures, made inert and closed.
The Minister shall specify the requirements and manner of handling the pipelines under paragraph 1 of this Article.
Article 13
Pipelines or parts of pipelines and their devices and plants that are temporarily taken out of service, as well as new or reconstructed transport pipelines not commissioned within the prescribed period, may be commissioned, upon repeated testing, in accordance with Article 9 of this Law.
Taking a pipeline out of service for the purpose of maintenance shall not be considered as taking out of service in the sense referred to under paragraph 1 of this Article.
Article 14
Energy entity performing the activity of pipeline transport i.e. pipeline distribution shall keep records of transported and distributed quantities of gaseous and liquid hydrocarbons and to submit the data from those records to the ministry competent for energy sector.
The Minister shall prescribe more detailed method for keeping records of transported and distributed quantities of gaseous and liquid hydrocarbons referred to under paragraph 1 of this Article.
Article 15
The activities of technical managing, handling and maintaining oil pipelines and indoor gas installations can be performed only by persons meeting the requirements, in compliance with this Law and other regulations.
The activities of technical management of pipeline system, i.e. management of pipeline plant or parts of pipeline system, can be performed by a graduate engineer in the appropriate profession, who has three years of working experience on the activities of pipeline transport i.e. pipeline distribution, and who has passed professional examination.
The activities of oil pipeline handling can be performed by a person who has degree IV of professional qualification, i.e. education corresponding to that degree of professional qualification in the appropriate technical discipline, who has working experience of at least two years on the activities of pipeline handling, and who has passed professional examination.
Maintenance activities for oil pipelines and indoor gas installations can be performed by a person who has at least a degree III of professional qualification, i.e. education corresponding to that degree of professional qualification in the appropriate technical discipline, who has working experience of at least two years on the activities of maintaining pipelines, i.e. indoor gas installations, and who has passed professional examination.
Article 16
Professional qualification for performing the activities of technical managing, handling and maintaining oil pipelines and indoor gas installations shall be tested by taking a professional exam.
The professional exam shall be taken before a commission formed by the Minister, i.e. the head of the competent authority of the Autonomous Province for persons employed with an energy entity that has its seat in the territory of the Autonomous Province.
The Minister shall specify detailed requirements, the program and terms of taking the professional exam referred to under paragraph 2 of this Article.
Article 17
Energy entity performing the activity of pipeline transport i.e. pipeline distribution shall implement occupational safety and health measures, environmental protection measures and fire and explosion prevention measures, in compliance with the law, technical and other regulations.
Article 18
During the use and maintenance of pipeline, only non-poisonous gas or liquid becoming gaseous under the atmospheric conditions can be periodically discharged from pipeline into environment or combusted in a flare, in the prescribed locations.
During the use and maintenance of pipeline, only liquid phase may be discharged from pipeline.
The Minister shall prescribe the procedure of liquid phase discharge referred to under paragraph 2 of this Article.
Article 19
Energy entity performing the activity of pipeline transport i.e. pipeline distribution shall implement fire and explosion prevention measures in danger zones, in compliance with the law, technical and other regulations.
Article 20
Works and other activities, except agricultural activities with cultivation to the depth of up to 0.5 meters, shall not be carried out in the pipeline protection zone without written approval of the energy entity performing the activity of pipeline transport i.e. pipeline distribution.
Energy entity performing the activity of pipeline transport i.e. pipeline distribution shall issue an approval with conditions for executing works in the pipeline protection zone, if it establishes that it is technically feasible to carry out the works and other activities referred to under paragraph 1 of this Article in the pipeline protection zone.
In executing the works i.e. other activities in the pipeline protection zone, legal or natural person, who has received the approval from paragraph 1 of this Article, shall implement protection measures according to the instructions of the energy entity performing the activity of pipeline transport i.e. pipeline distribution.
The control over implementing the measures from paragraphs 2 and 3 of this Article shall be performed by an authorized person of the energy entity which has issued the approval.
Article 21
Energy entity performing the activity of pipeline transport i.e. pipeline distribution shall ensure the protection of pipeline, i.e. its associated aboveground devices, plants and facilities from unauthorized use or damage.
The Minister shall specify the requirements and method for protecting pipeline i.e. its associated aboveground devices, plants and facilities from unauthorized use or damage referred to under paragraph 1 of this Article.
Article 22
Energy entity performing the activity of pipeline transport i.e. pipeline distribution shall maintain markings placed on pipeline route and repair or replace damaged or missing markings without any delay.
Article 23
Energy entity performing the activity of pipeline transport i.e. distribution shall permanently keep the entire documentation on the pipeline design, construction, testing, commissioning, use, maintenance and protection measures.
Article 24
The Minister will prescribe the method for designing, constructing and modifying indoor gas installations.
Article 25
Natural gas buyer shall provide the maintenance of indoor gas installations in its building.
The maintenance of indoor gas installations can be carried out by a legal person, a sole trader, or the buyer himself if they have the appropriate devices and equipment and at least three employees meeting the requirements set in Article 15, paragraph 4 of this Law.
Fulfillment of requirements set in paragraph 2 of this Article shall be established by a decree of the ministry in charge of energy sector.
The Minister shall specify the requirements and method for maintaining indoor gas installations referred to in paragraph 1 of this Article.
Article 26
The persons referred to in Article 25, paragraph 2 of this Law shall keep special records of the works executed on maintaining indoor gas installations.
Article 27
The Minister shall specify the requirements and method for selecting, installing, testing and commissioning of consuming devices.
Article 28
In case of the malfunction of indoor gas installations, the buyer shall cut off gas supply to indoor gas installations, without any delay, provide the implementation of measures for eliminating the malfunction and immediately inform about that the energy entity to whose gas pipeline its facilities are connected.
Article 29
The person referred to in Article 25, paragraph 2 of this Law, who maintains indoor gas installations shall:
1) Organize emergency interventions on indoor gas installations to be on duty 24/7;
2) On buyer’s request, immediately control, i.e. repair a part of indoor gas installations;
3) Notify the buyer of natural gas if there is a reasonable doubt that a malfunction exists in indoor gas installations, or if the malfunction has been identified thereon, which can pose an immediate danger to the safety of human life and health, environment and tangible property;
4) Without any delay notify the energy entity, to whose gas pipeline indoor gas installations of the buyer from item 3 of this Article are connected, if there is a reasonable doubt that a malfunction exists in indoor gas installations, or if the malfunction has been identified thereon, which can pose an immediate danger to the safety of human life and health, environment and tangible property.
The energy entity to whose gas pipeline indoor gas installations are connected shall, without any delay, stop the delivery of natural gas to the buyer, until the person maintaining indoor gas installations issues a written confirmation that all the defects of indoor gas installations have been eliminated.
Article 30
The energy entity to whose gas pipeline indoor gas installations are connected shall check the documentation on the good order of those installations, in the prescribed manner.
Article 31
The inspection supervising the implementation of the provisions of this Law and the regulations enacted on the basis of this Law shall be performed by the ministry in charge of the energy sector through pressure equipment inspectors.
The Autonomous Province shall be entrusted to perform inspections in the territory of the Autonomous Province.
Article 32
When performing inspections, a pressure equipment inspector shall have the right and duty to:
1) Order elimination of irregularities and defects with regard to pipeline construction, use and maintenance and pipeline protection measures, i.e. with regard to safe and undisturbed pipeline transport i.e. distribution;
2) Suspend natural gas transport i.e. distribution to the buyer if he establishes any violation of this Law and regulations enacted on the basis of this Law, if the established irregularities and defects have not been eliminated within the deadline he set, or if the established irregularities and defects pose an immediate danger to the safety of human life and health, environment and tangible property;
3) Bring charges to the competent authority for the committed criminal act or economic violation and submit request for the initiation of misdemeanor proceedings;
4) Suspend works in the pipeline protection zone, if these are not executed in accordance with applicable regulations and approval referred to under Article 20, paragraph 2 of this Law, and notify other competent inspectors about that.
Pressure equipment inspector shall also perform other activities stipulated by law or regulation enacted on the basis of this Law.
Article 33
An appeal may be filed against the decision of the pressure equipment inspector with the Minister within 15 days from the day of receiving the decision.
The appeal against the decision under paragraph 1 of this Article shall not stay the enforcement of the decision.
Article 34
An investor being a legal person shall be fined for the economic offence with a fine ranging from 100,000 to 3,000,000 dinars if it:
1) Fails to mark the pipeline route, harmonize the method for measuring the quantity of gaseous and liquid hydrocarbons and provide protection from corrosion (Article 4);
2) Fails to equip pipeline system with remote monitoring and control system and communication system in order to accomplish safe and undisturbed transmission of information related to their use and maintenance (Article 5);
3) Fails to install fireproof and explosion-proof electric equipment and installations in danger zones in compliance with technical and other regulations (Article 6);
4) Fails to test the pipeline during the construction and before commissioning thereof (Article 8);
5) Fails to carry out pipeline commissioning in compliance with the law, technical and other regulations (Article 9).
The responsible officer of the investor which has the status of a legal person shall be punished for the economic offence referred to under paragraph 1 of this Article with a fine ranging from 10,000 to 200,000 dinars.
Article 35
The energy entity that has the status of a legal person performing the activity of pipeline transport i.e. distribution shall be punished for the economic offence with a fine ranging from 100,000 to 3,000,000 dinars if it:
1) Fails to perform odourisation (Article 7);
2) Fails to use and maintain the pipelines in compliance with the law, technical and other regulations (Article 10);
3) Fails to stipulate in bylaws the functional requirements, procedure and method for handling, use and maintenance of pipelines, in compliance with the law, technical and other regulations (Article 11);
4) Fails to physically isolate, in the prescribed manner, the pipelines or pipeline sections which shall not be used any more from the pipeline system, devices or plants, clean them from hydrocarbons and flammable mixtures, make these inert and close them (Article 12);
5) Fails to perform testing before taking into service the pipeline or pipeline sections and their associated devices and plants being temporarily taken out of use, as well as new or reconstructed pipelines which have not been commissioned (Article 13, paragraph 1);
6) Fails to implement the prescribed occupational safety measures, environmental protection measures, and fire and explosion prevention measures (Article 17);
7) Fails to stop the delivery of natural gas to a buyer, without any delay, until the person maintaining the indoor gas installations issues a written confirmation that all the defects of indoor gas installations have been removed (Article 29, paragraph 2);
8) Fails to check the documentation on the good order of indoor gas installations (Article 30).
The responsible officer of the energy entity which has the status of a legal person performing the activity of transport, i.e. distribution by gas pipeline, oil pipeline, or oil product pipeline shall also be punished for the economic offence referred to in paragraph 1 with a fine ranging from 10,000 to 200,000 dinars.
Article 36
The energy entity performing the activity of transport by gas pipeline, oil pipeline or oil product pipeline shall be punished for a misdemeanor with a fine ranging from 50,000 to 1,000,000 dinars if:
1) It fails to equip the pipeline system with remote monitoring and control system and communications system (Article 5);
2) It fails to keep the prescribed records on the quantities of gaseous or liquid hydrocarbons transported and distributed by pipelines, or if it fails to submit the data from those records entirely or within the prescribed period to the ministry in charge of energy sector (Article 14);
3) The activities of technical managing, handling and maintaining the pipeline are performed by a person not meeting the prescribed requirement (Article 15);
4) It fails to observe the obligations that only non-poisonous gas or liquid which becomes gaseous under the atmospheric conditions can be periodically discharged in prescribed places from the pipeline into environment or combusted in a flare, or that due to the pipeline use and maintenance only liquid phase can be discharged from the pipeline (Article 18);
5) It fails to take the prescribed fire and explosion prevention measures in the danger zones (Article 19);
6) It fails to provide the prescribed protection of the pipeline i.e. its associated aboveground devices, plants and facilities from unauthorized use or damage (Article 21);
7) It fails to maintain markings placed on pipeline route and to repair i.e. replace damaged or missing markings (Article 22);
8) It fails to permanently keep the entire documentation on the pipeline design, construction, testing, commissioning, use and maintenance, and on pipeline protection measures (Article 23).
The responsible officer of the energy entity performing the activity of transport via gas pipeline, oil pipeline or oil product pipeline shall be also punished for the misdemeanor under paragraph 1 of this Article with a fine ranging from 2,000 to 50,000 dinars.
Article 37
A company or other legal person shall be punished for a misdemeanor with a fine ranging from 50,000 to 1,000,000 dinars if it:
1) Executes works or other activities in pipeline protection zone before obtaining a written approval by energy entity performing the activity of pipeline transport i.e. pipeline distribution (Article 20, paragraph 1);
2) During executing the works, i.e. other activities in the pipeline protection zone, fails to take protection measures according to the instructions of the energy entity performing the activity of pipeline transport i.e. pipeline distribution (Article 20, paragraph 3);
3) Fails to provide the maintenance of indoor gas installations in its facility (Article 25, paragraph 1);
4) Fails to keep special records on the works carried out on the maintenance of indoor gas installations (Article 26);
5) In case of the malfunctions of indoor gas installations, fails to shut down gas supply to its indoor gas installations without any delay, fails to take measures for repairing the malfunctions and notify about that the energy entity to whose gas pipeline its facilities are connected (Article 28).
The responsible officer of the company or other legal person shall also be punished for the misdemeanor under paragraph 1 of this Article with a fine ranging from 2,000 to 50,000 dinars.
A sole trader shall also be punished for the misdemeanor under paragraph 1 of this Article with a fine ranging from 50,000 to 500,000 dinars.
Article 38
The person maintaining the buyer’s indoor gas installations shall be punished for the misdemeanor with a fine ranging from 50,000 to 1,000,000 dinars if he/she:
1) Fails to keep special records on the works executed on the maintenance of indoor gas installations (Article 26);
2) Fails to act in accordance with the provision of Article 29, paragraph 1 of this Law.
The responsible officer of the entity referred to under Article 25, paragraph 2 shall also be punished for the misdemeanor under paragraph 1 of this Article with the fine ranging from 2,000 to 50,000 dinars.
Article 39
A natural person who commits the misdemeanor under Article 37, paragraph 1 and Article 38, paragraph 1 of this Law shall be punished with a fine ranging from 2,000 to 50,000 dinars.
V TRANSITIONAL AND CLOSING PROVISIONS
Article 40
Regulations for the implementation of this Law shall be passed within two years from the day of entry into force of this Law.
Pending the enactment of the regulations for the implementation of this Law, the regulations being in force shall be applied.
Article 41
Energy entities performing the activity of pipeline transport i.e. pipeline distribution shall bring their business operations in compliance with the provisions of this Law within four years from the day of entry into force of this Law.
Article 42
Pipeline systems shall be equipped with remote monitoring and control system and communication system in compliance with this Law within five years from the day of entry into force of the regulations specified under Article 5, paragraph 2 of this Law.
Article 43
As of the day of entry into force of this Law, the Law on Pipeline Transport of Gaseous and Liquid Hydrocarbons ("Official Gazette of FRY", No. 29/97) shall be repealed.
Article 44
This Law shall enter into force on the eighth day from the day of publishing in the "Official Herald of the Republic of Serbia".