Piped Gas Regulation. Gas Licensing, Compliance & Dispute Resolution. Procedure for Processing Licence Applications. Procedure # 1/GLC of 2011

Transcription

1 Piped Gas Regulation Gas Licensing, Compliance & Dispute Resolution Procedure for Processing Licence Applications Procedure # 1/GLC of 2011 Page 1 of 24

2 PURPOSE The document outlines the procedure that will be followed by the GLC staff when processing licence applications. The procedure will assist staff members to understand the licensing process; ensure that staff members adhere to all applicable internal rules, piped gas rules and statutory deadlines; and ensure that proper and complete records on each application are kept. PROBLEM STATEMET The procedures for processing licence applications are detailed in the Gas Act, 2001 (Act o. 48 of 2001) and the Gas Act Rules. This document seeks to simplify and consolidate the procedures into a single document. IMPORTAT DOCUMETS 1. The documents to be prepared during the course of processing an application are: a) A submission with recommendations regarding a request by an applicant for confidential treatment of information contained in its application (If any); b) An application adequacy report; c) A notice of complete/incomplete application d) A letter requesting additional information /clarification (where necessary); e) An Aide Memoire, including a summary and analysis of objections; f) Draft licence certificate including the licence conditions; g) An advert with the notice of the public hearing; h) A letter informing the applicant of the public hearing; i) A letter or letters informing the objectors to the application about the public hearing (If applicable); j) A panel discussion document (If required); k) A two pager/chairpersons report introducing the application and Reason for Decision, draft licence certificate and licence conditions documents to the committee; l) A licence pack to be handed to the applicant, consisting of: A cover letter to be signed by the CEO; Reason for Decision Final licence conditions and A copy of the final licence certificate Page 2 of 24

3 DETAILED PROCEDURE Step 1 1. Receipt of application, scanning for archiving and acknowledgement of receipt of the licence application (Within first 7 working days after receipt of the application) Step 2 2. Allocation of a licence application to Application Processor (AP) (Within 3 working days after the application has been scanned and archived) Step 3 Processing Confidentiality request (Within 30 days from date of receipt of the application) Compiling a submission to REC (see Annexure A for the format) Inform the applicant of the Energy Regulator s decision and inform the applicant to submit a public version of the application Step 4 Check for completeness and adequacy of the licence application (see Annexure B for the format) (Within 14 days from date of receipt) Step 5 (a) If application complete Inform the applicant of official date of the licence application; and Inform the applicant to advertise the licence application (as per Rule 8 of the Gas Act Rules Step 5 (b) If application is incomplete Issue a notice of incomplete licence application to the applicant; and Give the applicant 14 days to submit the outstanding information Step 6 (a) If Objections are received Provide the applicant with the objections received; and Give the applicant 30 days to respond Page 3 of 24

4 Step 7 Finalisation of a licence application (Within 60 days after a. the date of expiration of the period within which any objections to the issue of the licence may be lodged; or b. the date of receipt of the applicant s response to the objections as contemplated in section 18(c) of the Gas Act) Prepare Aid Memoire (see Annexure C ) including draft licence conditions and draft licence certificate o Generate an advert for public hearing and advertise the application for seven (7) days before public hearing; o Publish the draft licence conditions on ERSA s website seven (7) days prior to the public hearing; o Invite the applicant to the public hearing; o Conduct the public hearing; Prepare and submit the following documents to the relevant subcommittee: o Chairpersons report; o Reasons for Decision (see Annexure D ): o Draft licence conditions and draft licence certificate Implement Energy Regulator s decision by issuing the following: o Signed licence certificate; o Copy of licence conditions; o Reasons for Decision. Post the approved Reasons for Decision and the licence conditions on ERSA s website REVIEW This procedure shall be reviewed annually or at any time as the Piped Gas Sub-Committee may deem necessary. APPLICATIO The procedures shall apply to all licence applications in terms of section 16 of the Gas Act. RESPOSIBILIT All GLC personnel that process licence applications in terms of the Gas Act, 2001 (Act o. 48 of 2001) are required to comply with the processes outlined in this procedure manual. The Head of Department: GLC is responsible for management of the implementation of this procedure. Page 4 of 24

5 TABLE 1: CHECKLIST FOR THE PROCESSIG OF LICECE APPLICATIOS Particulars of the applicant Full registered name of the applicant: Trading name of the applicant (if different from registered name): Physical and postal addresses of the principal place of business of the applicant Physical and postal addresses of the registered office of the applicant (if different from the principal place of business) Telephone number: Fax number: address: Details of the mandated representative of the applicant including: a. Designation, b. Family ame, c. First ame, d. Telephone number, e. Fax number, and f. address Checklist question Respons e (es/o) 1. Has receipt of the application been acknowledged within 7 working days? 2. Has the licence application been assigned to the AP within 3 working days? 3. Does the application lodged include request for confidential treatment of information? 3.1 If yes, use Annexure A 3.2 Was the request for confidential treatment approved by the relevant subcommittee within 30 days? Page 5 of 24

6 4. Has the adequacy report been produced within 14 days? 4.1 Was the application submitted in a prescribed form and manner, and was it complete? If no, was the applicant informed of the incomplete application within 14 days? If yes, was the applicant informed of the completeness and official date of the application within 7 days? 5. Were any objections received? 5.1 If yes, was the applicant informed and given 30 days to respond? 6. Was the public hearing advertised within at least 7 days prior to the date of the hearing? 6.1 Was the Aide Memoire prepared prior to advertising the public hearing? 6.2 Was the applicant and objectors, if any, invited to the public hearing? 6.3 Were the draft licence conditions published on ERSA s website and sent to the applicant for comment within seven (7) days prior to the public hearing? 7. Were the decision documents compiled within 14 days of the public hearing? 7.1 Were the decision documents submitted to the relevant subcommittee for approval within 60 days from the last date of the publication of the notice for comments or if comments were received, then the last date of such receipt of comments? 8. Was the Energy Regulator s decision implemented within 14 days after approval? 9. Were all the documents scanned and archived? Duly completed and signed by: DEPARTMET : DESIGATIO : DATE : SIGATURE : Page 6 of 24

7 Annexure: Annexure A: Example of Table of Recommendations for Confidentiality Requests. Annexure B: Example of Licence Application Adequacy Report template Annexure C: Example of Aide Memoire Format Annexure D: Example of Reasons for Decision Format Page 7 of 24

8 AEXURE A FORMAT FOR TABLE OF RECOMMEDATIOS FOR COFIDETIALIT REQUESTS APPLICAT S (APPLICAT S AME) REQUEST FOR COFIDETIAL TREATMET OF IFORMATIO I THEIR LICECE APPLICATIO Applicant (ame) has requested that the information tabled below be treated as confidential. The table details the information and the ERSA response to the request. 1. LICECE APPLICATIOS FOR THE COSTRUCTIO OF GAS TRASMISSIO AD DISTRIBUTIO FACILITIES B APPLICAT (APPLICAT S AME) Application Item Reference in Licence Application Construction of a Financial Chapter 3, item 2(b) - Transmission statements Page 54 Facility (Gala.t.F1) Operation of a Transmission Facility (Gala.t.F3) Attachment 1 Gigajoule Africa Reasons Summarise reasons provided by applicant for this item Staff Recommendations Recommend whether the information should be kept confidential or not Reasons (Reference to relevant legislation) Provide reasons of your recommendations supported by appropriate section of the Promotion of Access to Information Act, 2000 (Act o. 1 of 2000). Reference previous decision made by the Energy Regulator on the similar issue (if applicable). Construction of a Distribution Facility (Gala.d.F1) Operation of a Distribution Facility (Gala.d.F3) Page 8 of 24

9 Application Item Reference in Licence Application Trading (Gala.tr.F1) Gigajoule Africa Reasons Staff Recommendations Reasons (Reference to relevant legislation) Page 9 of 24

10 AEXURE B LICECE APPLICATIO ADEQUAC REPORT Application Reference umber : Date Received : ame of Assessor : Assessment Date : Signature of Assessor : Signature of HOD : Chapter 1: General Information Rules Reference Information supplied by applicant Comments regarding the completeness and adequacy of information Section A Particulars of applicant Section B Desired commencement date and duration Section C Additional information Section D Preferred licence conditions Section E Solemn declaration Page 10 of 24

11 Chapter 2: Documents to be attached Rules Reference Information supplied Comments regarding the completeness and adequacy of information 2.1 atural person or 2.3 In the case of a non-south African citizen submit a copy of passport, permanent residence permit or employment permit and proof of residence in South Africa 2.3 Local government body, statutory body, juristic person or other legal body or 2.4 If the applicant is not a natural person, attach documents statinga). the title of legislation under which it is registered b). the registration number given to it in terms of such legislation c). the particulars of the owners or shareholders of the applicant if the applicant is not a natural person or similar Page 11 of 24

12 Rules Reference Information supplied Comments regarding the completeness and adequacy of information d). a certified copy of the identity document of the mandated representative authorised to make the application if applicable e). proof of authorisation to make the application 2.5 Provisions to meet any criteria specified by the Minister in terms of section 19(2) of the Gas Act. If applicable 2.6 Documents demonstrating the administrative abilities of the applicant 2.7 Documents demonstrating the financial abilities of the applicant 2.8 Documents demonstrating the technical abilities of the applicant Page 12 of 24

13 Rules Reference Information supplied Comments regarding the completeness and adequacy of information 2.9 Where a facility is owned by more than one person, provide details of ownership and written mandate from each of the owners authorising the applicant to apply 2.10 A certified copy of the Record of Decision of the relevant environmental authorities in accordance to EMA, if applicable 2.11 If the ROD in 10 above has not been obtained, submit: proof of application, solemn declaration for applicant s plans and ability to comply with all applicable labour, health and environmental legislation 2.12 If 10above is not applicable, state the reasons thereof 2.13 List of applicable regulations, operating and technical standards, codes and specifications including those relating to safety to be used in the activities for which this Page 13 of 24

14 Rules Reference Information supplied Comments regarding the completeness and adequacy of information application is made 2.14 Detailed specification of the gas that will handled at the facility for which this application is made 2.15 Information required in terms of the Regulations regarding mechanisms to promote HDSAs Page 14 of 24

15 Chapter 3: Details of Application ote: In the Rules Reference column, the references must be changed according to the type of application processed. Rules Reference Information supplied by applicant Comments regarding the completeness and adequacy of information 3.1 Description of the proposed facility 3.2 Mechanical diagram for the proposed facility 3.3 Proof of financial viability of the proposed facility, including: (a) commercial structure (b) projected financial statements and/or DCF model (c) status and/or proof of equity financing agreements and finance including terms and conditions (d) other costs incidental to the project (e) tariffs to be charged for Page 15 of 24

16 the facility and details of the methodology used for these calculations 3.4 Details of gas sources, including (a) a copy of an independent reservoir engineer s assessment of proven and recoverable gas reserves in TCF and the basis for the reserves determination; and (b) gas production program to supply gas for the project; OR (c) copy of the gas importation agreement 3.5 Details of any existing and/or potential customers for the proposed facility, including: (a) the names and physical addresses of existing customers (b) The names and physical addresses of potential customers (c) The categorization of each customer, for example, as a distributor, power Page 16 of 24

17 generator or large user; and (d) For each customer, the average or anticipated gas consumption in Gigajoules per annum. 3.6 Copies of all GTAs pertaining to the facility to be constructed 3.7 A description of the proposed allocation mechanism in terms of which TPA will be granted to the proposed facility, including (a) grounds for refusal of access; and (b) measures to ensure non-discrimination between customers. 3.8 If applicable, details of planned changes to the pipeline after commencement of operations regarding: (a) pipeline capacity such as additions of compressor stations or any other Page 17 of 24

18 infrastructure that may require a new licence; (b) investment plans and the schedule of implementation; and (c) timelines for service commencement. 3.9 If the applicant is Sasol Limited or its subsidiary, evidence of compliance with clauses 3, 4, 6 and 8.3 of Schedule One to the Agreement Page 18 of 24

19 AEXURE C Aide Memoire Format (Cover Page) ATIOAL EERG REGULATOR PGS Public Hearing (date) (month) (year) AIDE MEMOIRE Subject Licence application for the construction of.. Applicant Area Application o Prepared by ame Date Contributors List names of contributors Checked by HOD: GLC Date ame EM:GAR ame Date Recommended by PRRM-Piped Gas, ame Date Consulted CEO: ERSA Date ame Document o GLC Reference o: 33/GLC of 2011/12 Page 19 of 24

20 A. Executive Summary Page Summary of Aide Memoire B. Preamble In the matter regarding a LICECE APPLICATIO FOR THE By (Applicant ame) In (area) Application o: (Application Reference) C. The Aide Memoire Headings: Aide Memoire The Application Discuss issues about the application, including when the application was received, compliance with the Rules for Application specifically regarding public viewing requirements, and whether there were any objections received. The Applicant(s) Discuss the applicants, covering amongst other their legal status, BEE status, and shareholding etc. Objectors and Intervening Parties Discuss the objections received: who submitted the objections, summary of the objections, summary of the applicant s response to the objections, and ERSA view on the objections (Legal analysis). Page 20 of 24

21 Applicable Law Specify the applicable laws, ERSA s mandate on the matter under consideration by quoting the applicable sections and their relevance to the application. Request for Confidential Treatment of Information Summarise the applicant s request for confidentiality and ERSA s decision. Details of the Application Give an overview of the application, providing amongst others the details of the facilities under consideration, applicable industry codes, regulations and technical standards, indications on the technical and financial competency of the applicant, the promotion of HDSA by the applicant and compliance with other legislation such as environmental legislation etc. Analysis of Application List and discuss each key issues for consideration. These may include ownership issues, nature of the licence sought, facility status, third party access, tariffs, pricing, financial and technical viability of the facility, any legal issues that should be brought to the attention of the Energy Regulator. Conclusion Provide your conclusion on amongst others the adequacy of the application, the abilities of the applicant, and the status of the facility Recommendation Make a call on whether to grant a licence or not. Page 21 of 24

22 AEXURE D Reasons for Decision Format (Cover Page) ATIOAL EERG REGULATOR PGS/REC meeting of (date) (month) (year) REASOS FOR DECISIO Subject Licence application for the construction of.. Applicant Area Application o. Prepared by ame Date Contributors List names of contributors Checked by HOD: GLC Date ame EM:GAR ame Date Recommended by PRRM-Piped Gas, ame Date Consulted CEO: ERSA Date ame Document o GLC Reference o: 33/GLC of 2011/12 Page 22 of 24

23 A. Preamble In the matter regarding a LICECE APPLICATIO FOR THE By (Applicant ame) In (area) Application o: (Application Reference) B. The decision State date of decision and the decision. C. The RFD Headings: Reasons for Decision The Application Discuss issues about the application, including when the application was received, compliance with the Rules for Application specifically regarding public viewing requirements, and whether there were any objections received. The Applicant(s) Discuss the applicants, covering amongst other their legal status, BEE status, and shareholding etc. Applicable Law Specify the applicable laws, ERSA s mandate on the matter under consideration by quoting the applicable sections and their relevance to the application. Page 23 of 24

24 Objectors and Intervening Parties Discuss the objections received: who submitted the objections, summary of the objections, summary of the applicant s response to the objections, and ERSA view on the objections (Legal analysis). Request for Confidential Treatment of Information Summarise the applicant s request for confidentiality and ERSA s decision. Details of the Application Give an overview of the application, providing amongst others the details of the facilities under consideration, applicable industry codes, regulations and technical standards, indications on the technical and financial competency of the applicant, the promotion of HDSA by the applicant and compliance with other legislation such as environmental legislation etc. Public Hearing Discuss details of public hearing, summary of representations made at the hearing, ERSA s position on key issues raised at the public hearing. Analysis of Application List and discuss each key issues about the application, ERSA s position on those issues. These may include ownership issues, nature of the licence sought, facility status, third party access, tariffs, pricing, financial and technical viability of the facility, any legal considerations that influenced the decision of ERSA. Conclusion Provide your conclusion on amongst others the adequacy of the application, the abilities of the applicant, and the status of the facility, and ERSA s decision to grant or not to grant licence. Page 24 of 24