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GAS INDUSTRY ACTS (AMENDMENT) BILL 1998

                 PARLIAMENT OF VICTORIA

         Gas Industry Acts (Amendment) Act 1998
                                 Act No.


                      TABLE OF PROVISIONS
Clause                                                                 Page

PART 1--PRELIMINARY                                                       1
  1.     Purpose                                                          1
  2.     Commencement                                                     2

PART 2--GAS INDUSTRY ACT 1994                                             3
  3.     Principal Act                                                    3
  4.     Definition                                                       3
  5.     Market participant                                               3
  6.     Substantial degree of power                                      3
  7.     Application of Office of the Regulator-General Act 1994          3
  8.     New section 16HA inserted                                        4
         16HA. Power of Minister                                          4
  9.     Section 16I substituted                                          5
         16I.     Protection from liability                               5
  10.    Section 16J substituted                                          5
         16J.     Protection of persons executing directions              5
  11.    Anti-competitive conduct                                         6
  12.    Amendment of section 47                                          7
  13.    Tariffs and charges Orders                                       7
  14.    Customers                                                        7
  15.    New Part 4A, Division 4, inserted                                8
         Division 4--General                                              8
         48TA. Information to be provided to VENCorp                      8
         48TB. Restriction on disclosure of confidential information      9
  16.    Access Code                                                     10
  17.    Directions                                                      10
  18.    New retailers                                                   11
  19.    New section 62PA inserted                                       11
         62PA. Authorisation                                             11
  20.    Application of Act to WUGS Pty Ltd                              12
  21.    Supreme Court--limitation of jurisdiction                       13
  22.    Delegation                                                      14




                                     i
532156B.I1-21/10/98

 


 

Clause Page PART 3--GAS PIPELINES ACCESS (VICTORIA) ACT 1998 15 23. New section inserted 15 24A. Access arrangements 15 PART 4--GAS SAFETY ACT 1998 17 24. Definitions 17 25. Complex and standard gas installations 18 26. Acceptance of gas installation 18 27. New section 79A inserted 19 79A. Interference with gas installation or pipeline 19 28. New section 107A inserted 19 107A. Delegation by Director 19 29. Regulations 19 30. Transitional provision--Director of Gas Safety 19 31. Building Act 1993 20 PART 5--OTHER ACTS 21 32. Office of the Regulator-General Act 1994 21 33. State Electricity Commission Act 1958 21 NOTES 22 ii 532156B.I1-21/10/98

 


 

PARLIAMENT OF VICTORIA A BILL to amend the Gas Industry Act 1994, the Gas Pipelines Access (Victoria) Act 1998, the Gas Safety Act 1997 and certain other Acts and for other purposes. Gas Industry Acts (Amendment) Act 1998 The Parliament of Victoria enacts as follows: PART 1--PRELIMINARY 1. Purpose The main purposes of this Act are-- (a) to make further amendments to the Gas 5 Industry Act 1994; 1 532156B.I1-21/10/98

 


 

Gas Industry Acts (Amendment) Act 1998 s. 2 Act No. (b) to amend the Gas Pipelines Access (Victoria) Act 1998 to make transitional provisions in respect of access arrangements under the Gas Industry Act 1994 and access 5 arrangements under the National Third Party Access Code for Natural Gas Pipelines systems; (c) to amend the Gas Safety Act 1997 to improve the operation of that Act. 10 2. Commencement (1) This Part and sections 8, 17(1) (2) and (4) and 30 come into operation on the day on which this Act receives the Royal Assent. (2) Sections 9, 10 and 17(3) are deemed to have come 15 into operation on 10 June 1998. (3) Section 22 is deemed to have come into operation on 25 September 1998. (4) Section 21 is deemed to have come into operation on 22 October 1998. 20 (5) Section 13(2) comes into operation on a day to be proclaimed. (6) The remaining provisions of Part 2, Part 3, sections 24(1), 26(2) and (3), 27, 28 and 29 and Part 5 come into operation on 1 December 1998. 25 (7) Subject to sub-section (8), the remaining provisions of Part 4 come into operation on a day to be proclaimed. (8) If a provision referred to in sub-section (7) does not come into operation before 1 December 1999, 30 it comes into operation on that day. _______________ 2 532156B.I1-21/10/98

 


 

Gas Industry Acts (Amendment) Act 1998 s. 3 Act No. PART 2--GAS INDUSTRY ACT 1994 3. Principal Act No. 112/1994. In this Part, the Gas Industry Act 1994 is called Reprinted as the Principal Act. at 22 August 1997 and subsequently amended by Nos 55/1997, 91/1997, 99/1997, 31/1998, 40/1998 and 46/1998. 5 4. Definition In section 3 of the Principal Act, in the definition of "MSO Rules", after "48N" insert "and, if those Rules are amended, those Rules as amended and in force for the time being". 10 5. Market participant In section 5B of the Principal Act, for "Part 4A" substitute "this Act". 6. Substantial degree of power In section 5C(1)(c) of the Principal Act, for "is 15 engaged in" substitute "has more than a 20% interest in". 7. Application of Office of the Regulator-General Act 1994 3 532156B.I1-21/10/98

 


 

Gas Industry Acts (Amendment) Act 1998 s. 8 Act No. In section 8A(a) of the Principal Act, for "Parts 4A" substitute "this section and Parts 4A". 8. New section 16HA inserted After section 16H of the Principal Act insert-- 5 '16HA. Power of Minister (1) The Minister, at the request of VENCorp, may, at any time, make a direction in writing amending a direction made, or purportedly made, by VENCorp under this Division (in 10 this section called "the VENCorp direction") for the purpose of correcting a defect, mistake or omission in the VENCorp direction. (2) If a direction of the Minister under sub- 15 section (1) amending a VENCorp direction-- (a) includes a statement that the VENCorp direction is deemed to have been made as so amended; and 20 (b) is made-- (i) not later than 3 months after the VENCorp direction was made; or (ii) in the case of a VENCorp direction made on or after 11 June 25 1998 and before 30 September 1998, not later than 31 December 1998-- 4 532156B.I1-21/10/98

 


 

Gas Industry Acts (Amendment) Act 1998 s. 10 Act No. the VENCorp direction is deemed to have been made as so amended.'. 9. Section 16I substituted For section 16I of the Principal Act substitute-- 5 "16I. Protection from liability (1) A person to whom this section applies is not liable to any action, claim or demand on account of any damage, loss or injury sustained or alleged to be sustained because 10 of anything done or omitted to be done in good faith-- (a) in or in connection with or incidental to the exercise of a power to give or make a direction, prohibition or requisition 15 under, or purportedly under, this Act; (b) in the reasonable belief that the act or omission was in or in connection with or incidental to the exercise of such a power. 20 (2) This section applies to VENCorp and the directors and servants of VENCorp.". 10. Section 16J substituted For section 16J of the Principal Act substitute-- "16J. Protection of persons executing directions 25 (1) A person is not liable to any action, claim or demand on account of any damage, loss or injury sustained or alleged to be sustained because of anything done, or omitted to be done in good faith-- 30 (a) in the execution of any direction under, or purportedly under, this Division; or 5 532156B.I1-21/10/98

 


 

Gas Industry Acts (Amendment) Act 1998 s. 11 Act No. (b) in the reasonable belief that the act or omission was done in the execution of such a direction. (2) A person to whom this sub-section applies is 5 not liable to any action, claim or demand on account of any damage, loss or injury sustained or alleged to be sustained because of anything done, or omitted to be done, in good faith-- 10 (a) in the execution of any direction or purported direction (whether or not under this Division) given by VENCorp to that person or an agent of that person (whether or not by name) on or after 15 11 June 1998 and before the date on which the Gas Industry Acts (Amendment) Act 1998 receives the Royal Assent; or (b) in the reasonable belief that the act or 20 omission was done in the execution of such a direction. (3) Sub-section (2) applies to GASCOR, gas retailers and servants or agents of, or persons acting on behalf of, or performing work or 25 services, whether directly or indirectly, for, GASCOR or a gas retailer.". 11. Anti-competitive conduct At the end of section 40 of the Principal Act insert-- 30 "(2) Sub-section (1) does not prevent a significant producer from engaging in conduct (within the meaning of section 4(2) of the Trade Practices Act 1974 of the Commonwealth) that does not constitute a contravention of 35 section 45, 45B or 47 of that Act by reason 6 532156B.I1-21/10/98

 


 

Gas Industry Acts (Amendment) Act 1998 s. 13 Act No. that an authorisation under that Act is in force.". 12. Amendment of section 47 In section 47 of the Principal Act-- 5 (a) sub-sections (1) and (2) are repealed; (b) for "(3) The functions are--" substitute "Without limiting any other functions of VENCorp, the functions of VENCorp in relation to the gas industry are--". 10 13. Tariffs and charges Orders (1) After section 48A(6) of the Principal Act insert-- "(7) The first Order made under this section has effect from 11 December 1997.". (2) After section 48A(7) of the Principal Act insert-- 15 "(8) After the commencement of section 13(2) of the Gas Industry Acts (Amendment) Act 1998-- (a) an Order cannot be made under sub- section (1); and 20 (b) an Order in force under that sub-section cannot be amended or revoked by another Order made under that sub- section. (9) Despite sub-section (8), an Order made 25 under sub-section (1) may be amended by one, and only one, Order made under that sub-section on the recommendation of the Treasurer and expressed to be so made as a consequence of a gas supply emergency.". 30 14. Customers 7 532156B.I1-21/10/98

 


 

Gas Industry Acts (Amendment) Act 1998 s. 15 Act No. (1) In section 48M(1) of the Principal Act, after "sells" insert "(whether as principal or agent)". (2) In section 48M(1) and (3) of the Principal Act, for "non-franchise customers" substitute "customers 5 to whom another gas retailer may, under its licence, sell gas". (3) In section 48M(4) of the Principal Act, for "non- franchise customer" substitute "a customer to whom another gas retailer may, under its licence, 10 sell gas". 15. New Part 4A, Division 4, inserted After section 48T of the Principal Act insert-- "Division 4--General 48TA. Information to be provided to VENCorp 15 (1) The Governor in Council, by Order published in the Government Gazette, may declare that a person who-- (a) operates a system for the conveyance of gas that is connected to a gas 20 transmission system; or (b) operates an underground storage facility; or (c) is a gas producer-- must give VENCorp such information, or 25 information of such class of information, as is specified in the Order. (2) Sub-section (1) does not apply to a person to the extent that the person and VENCorp otherwise agree in writing. 30 (3) A copy of an Order made under sub-section (1) must be laid before each House of the 8 532156B.I1-21/10/98

 


 

Gas Industry Acts (Amendment) Act 1998 s. 15 Act No. Parliament as soon as practicable after it is made. (4) An Order made under sub-section (3) is subject to disallowance by a House of the 5 Parliament and sections 23, 24 and 25 of the Subordinate Legislation Act 1994 apply to such an Order as if the Order were a statutory rule within the meaning of that Act, notice of the making of which had been 10 published in the Government Gazette on the day on which the Order was so published. (5) If an Order made under sub-section (1) is disallowed by a House of the Parliament, the Minister must do all such things as are 15 necessary to give effect to the disallowance. 48TB. Restriction on disclosure of confidential information (1) This section applies if information or a document is given to VENCorp under 20 section 48TA and, at the time it is given, the person giving it states that it is of a confidential or commercially-sensitive nature. (2) VENCorp must not, without the consent of 25 the person who gave it, disclose the information or the contents of the document to any person. (3) Sub-section (2) does not prevent VENCorp from disclosing information or the contents 30 of a document to a member of the staff of VENCorp or to a person engaged by VENCorp in connection with the carrying out of its functions. (4) A member of the staff of VENCorp or a 35 person engaged by VENCorp in connection 9 532156B.I1-21/10/98

 


 

Gas Industry Acts (Amendment) Act 1998 s. 16 Act No. with the carrying out of its functions must not disclose information or the contents of a document disclosed to the member or person by VENCorp to any person (not being 5 another such member or person) without the consent of the person who gave the information or document to VENCorp.". 16. Access Code (1) In section 48U(7)(a) of the Principal Act, for sub- 10 paragraph (ii) substitute-- "(ii) generally or in specified places only;". (2) In section 48ZK(1) of the Principal Act, after "under this Part" insert "or the Access Code". 17. Directions 15 (1) In section 62G(3) of the Principal Act, for paragraph (d) substitute-- "(d) subject to sub-section (5A), takes effect when made or, if a later time is specified in the direction, prohibition or requisition, at 20 that later time; and". (2) In section 62G(4) of the Principal Act, after "direction" insert "(including a direction under sub-section (5))". (3) In section 62G of the Principal Act, for sub- 25 section (5) substitute-- "(5) The Minister may at any time by direction under this section amend or revoke a direction, prohibition or requisition.". (4) After section 62G(5) of the Principal Act insert-- 30 "(5A) If a direction of the Minister under sub- section (5) amending an earlier direction for 10 532156B.I1-21/10/98

 


 

Gas Industry Acts (Amendment) Act 1998 s. 18 Act No. the purpose of correcting a defect, mistake or omission-- (a) includes a statement that the earlier direction is deemed to have been made 5 as so amended; and (b) is made-- (i) not later than 3 months after the earlier direction was made; or (ii) in the case of a direction made on 10 or after 11 June 1998 and before 30 September 1998, not later than 31 December 1998-- the earlier direction is deemed to have been made as so amended.". 15 18. New retailers In section 62M of the Principal Act, in the definition of "new retailer", for paragraph (c) substitute-- "(c) Energy 21 Pty Ltd A.C.N. 079 089 213; 20 (d) Gas Release Co Pty Ltd A.C.N. 079 089 286;". 19. New section 62PA inserted After section 62P of the Principal Act insert-- '62PA. Authorisation 25 (1) For the purposes of Part IV of the Trade Practices Act and of the Competition Code, the following are specifically authorised-- (a) the making of rules under section 48N; (b) the amendment of the MSO Rules, 30 whether under those Rules, section 48N or otherwise; 11 532156B.I1-21/10/98

 


 

Gas Industry Acts (Amendment) Act 1998 s. 20 Act No. (c) any thing done, or conduct engaged in, by VENCorp under or pursuant to, or by way of enforcement of, the MSO Rules; 5 (d) any thing done, or conduct engaged in by a participant or market participant under or pursuant to the MSO Rules; (e) the making of, or giving effect to, an agreement, arrangement or 10 understanding arising out of or foreshadowed by the MSO Rules and made between VENCorp and a participant or market participant, between participants, between market 15 participants or between participants and market participants. (2) This section does not apply to anything done, or conduct engaged in, on or after 1 January 2003. 20 (3) In this section-- (a) "market participant" and "participant" have the same meanings as they have in the MSO Rules; (b) a reference to engaging in conduct has 25 the same meaning as in section 4(2)(a) of the Trade Practices Act.'. 20. Application of Act to WUGS Pty Ltd (1) After section 88A(2) of the Principal Act insert-- '(3) In this section, "public gas company" 30 includes Western Underground Gas Storage Pty Ltd A.C.N. 079 089 311.'. (2) After section 100(3) of the Principal Act insert-- 12 532156B.I1-21/10/98

 


 

Gas Industry Acts (Amendment) Act 1998 s. 21 Act No. '(4) In this section, "public gas company" includes Western Underground Gas Storage Pty Ltd A.C.N. 079 089 311.'. (3) At the end of section 101A of the Principal Act 5 insert-- '(2) In this section, "public gas company" includes Western Underground Gas Storage Pty Ltd A.C.N. 079 089 311.'. (4) In section 104B(6) of the Principal Act, in the 10 definition of "transferee", after "Part 7" insert "or Western Underground Gas Storage Pty Ltd A.C.N. 079 089 311.". (5) In section 115A(1) of the Principal Act insert-- ' "public gas company" includes Western 15 Underground Gas Storage Pty Ltd A.C.N. 079 089 311;'. (6) At the end of section 115R of the Principal Act insert-- '(2) In this section, "public gas company" 20 includes Western Underground Gas Storage Pty Ltd A.C.N. 079 089 311.'. (7) At the end of section 115S of the Principal Act insert-- '(2) In this section, "public gas company" 25 includes Western Underground Gas Storage Pty Ltd A.C.N. 079 089 311.'. 21. Supreme Court--limitation of jurisdiction (1) At the end of section 101B of the Principal Act insert-- 30 "(2) It is the intention of sections 16I, 16J and 62L to alter or vary section 85 of the Constitution Act 1975.". 13 532156B.I1-21/10/98

 


 

Gas Industry Acts (Amendment) Act 1998 Act No. (2) It is the intention of sub-section (1) to alter or vary section 85 of the Constitution Act 1975. 22. Delegation A delegation made by the Minister under section 5 62I of the Principal Act on 25 September 1998 has effect as if it referred to the gas supply emergency throughout Victoria arising from an incident at Longford which occurred on that date. _______________ 10 14 532156B.I1-21/10/98

 


 

Gas Industry Acts (Amendment) Act 1998 s. 23 Act No. PART 3--GAS PIPELINES ACCESS (VICTORIA) ACT 1998 23. New section inserted No. 31/1998. After section 24 of the Gas Pipelines Access (Victoria) Act 1998 insert-- 5 '24A. Access arrangements (1) An application for acceptance of an access arrangement made, but not determined, before the repeal of Part 4B of the Gas Industry Act 1994 by this Act is deemed to 10 be an application for acceptance of an access arrangement under the new Access Code and anything done in connection with the application under that Part is deemed to have been done for the purposes of an application 15 under the new Access Code. (2) An access arrangement in force under Part 4B of the Gas Industry Act 1994, as so in force immediately before the repeal of that Part by this Act, is deemed to be an access 20 arrangement in force under the new Access Code and, subject to sub-section (3), has effect accordingly. (3) Until its first review under section 2 of the new Access Code, an access arrangement to 25 which sub-section (2) applies continues to be subject to sections 3 and 8 and to section 9 (so far as it applies to sections 3 and 8) of the old Access Code and is not subject to the corresponding provisions of the new Access 30 Code. (4) In this section-- "new Access Code" means the National Third Party Access Code for Natural Gas Pipeline Systems (a copy of which, 15 532156B.I1-21/10/98

 


 

Gas Industry Acts (Amendment) Act 1998 s. 23 Act No. as agreed by the Council of Australian Governments on 7 November 1997, is set out in Schedule 2 to the South Australian Act) or, if that Code is 5 amended in accordance with Schedule 1 to that Act, that Code as so amended and in force for the time being, as it applies because of section 7 of this Act as a law of Victoria; 10 "old Access Code" means the Access Code under Part 4B of the Gas Industry Act 1994, as in force immediately before the repeal of that Part by this Act.'. _______________ 15 16 532156B.I1-21/10/98

 


 

Gas Industry Acts (Amendment) Act 1998 s. 24 Act No. PART 4--GAS SAFETY ACT 1998 24. Definitions No. 99/1997 (1) In section 3 of the Gas Safety Act 1997, in subsequently paragraph (h) of the definition of "gas company", amended by 5 No. 46/1998. after "purposes)" insert ", being a person declared under section 5 to be a gas company for the purposes of this Act". (2) In section 3 of the Gas Safety Act 1997, the definitions of "Type A gas installation" and 10 "Type B gas installation" are repealed. (3) In section 3 of the Gas Safety Act 1997 insert-- ' "complex gas installation" means a gas installation which is not a standard gas installation; 15 "standard gas installation" means-- (a) a gas installation-- (i) which contains only Type A appliances; and (ii) which is located in residential 20 premises of a prescribed class or on land associated with such premises; or (b) a gas installation-- (i) which contains only Type A 25 appliances; and (ii) which is located in commercial premises of a prescribed class or on land associated with such premises; and 30 (iii) in which the total gas consumption of the appliances 17 532156B.I1-21/10/98

 


 

Gas Industry Acts (Amendment) Act 1998 s. 25 Act No. does not exceed the relevant prescribed amount per hour; and (iv) in which the length of pipe from the gas supply point to the furthest 5 appliance does not exceed the relevant prescribed length;'. 25. Complex and standard gas installations (1) In sections 52, 55, 56, 57, 58, 60 and 61 of the Gas Safety Act 1997, for "Type B gas 10 installation" (wherever occurring) substitute "complex gas installation". (2) In sections 54, 55, 56, 57, 58, 60, 63 and 118(1)(u) of the Gas Safety Act 1997, for "Type B gas installations" (wherever occurring) 15 substitute "complex gas installations". 26. Acceptance of gas installation (1) In section 73 of the Gas Safety Act 1997 for sub- section (1) substitute-- "(1) A person who carries out work on a complex 20 gas installation or on a standard gas installation of a prescribed class must apply to the Office for acceptance of the gas installation before the gas installation is commissioned. 25 Penalty: In the case of a natural person, 40 penalty units; In the case of a body corporate, 200 penalty units.". (2) In section 73(4)(c) of the Gas Safety Act 1997 30 after "installation" insert "or to any appliance forming part of the gas installation". 18 532156B.I1-21/10/98

 


 

Gas Industry Acts (Amendment) Act 1998 s. 27 30 Act No. (3) After section 73(8) of the Gas Safety Act 1997 insert-- '(9) In this section "gas installation" includes part of a gas installation.'. 5 27. New section 79A inserted After section 79 of the Gas Safety Act 1997 insert-- "79A. Interference with gas installation or pipeline 10 (1) A person must not wilfully or negligently break, injure, open or tamper with any gas installation or pipeline. Penalty: 100 penalty units. (2) This section does not apply to any person 15 lawfully carrying out gas work in respect of the gas installation or pipeline. (3) This section does not apply to a pipeline operated by a gas company.". 28. New section 107A inserted 20 After section 107 of the Gas Safety Act 1997 insert-- "107A. Delegation by Director The Director may, with the consent of the Minister, by instrument, delegate any 25 function or power of the Director under section 106 or 107 to an officer or employee of the Office.". 29. Regulations In section 118(1)(w) of the Gas Safety Act 1997 30 after "gas company" (where first and thirdly occurring) insert "or any other person". 30. Transitional provision--Director of Gas Safety 19 532156B.I1-21/10/98

 


 

Gas Industry Acts (Amendment) Act 1998 Act No. At the end of section 123 of the Gas Safety Act 1997 insert-- "(2) The person who held the office of Director of Gas Safety under the Gas Industry Act 5 1994 immediately before the commencement of this section continues to hold that office under this Act on the same terms and conditions and with the same accrued and accruing entitlements as applied to the 10 person immediately before that commencement.". 31. Building Act 1993 In section 221ZG of the Building Act 1993 for "Type B gas installation" substitute "complex gas 15 installation". _______________ 20 532156B.I1-21/10/98

 


 

Gas Industry Acts (Amendment) Act 1998 s. 32 Act No. PART 5--OTHER ACTS 32. Office of the Regulator-General Act 1994 (1) In section 3(2) of the Office of the Regulator- General Act 1994, after "sub-section (3)" insert 5 "or (5)". (2) After section 3(4) of the Office of the Regulator- General Act 1994 insert-- "(5) Sub-section (2) does not apply to the gas industry or to the Gas Industry Act 1994, 10 except as provided by section 8A of that Act. (6) Sub-section (3) does not affect any Order made under sub-section (2) before the commencement of section 32 of the Gas Industry Acts (Amendment) Act 1998.". 15 33. State Electricity Commission Act 1958 Section 85CA of the State Electricity Commission Act 1958 is repealed. 21 532156B.I1-21/10/98

 


 

Gas Industry Acts (Amendment) Act 1998 Notes Act No. NOTES By Authority. Government Printer for the State of Victoria. 22 532156B.I1-21/10/98

 


 

Gas Industry Acts (Amendment) Act 1998 Act No. 23 532156B.I1-21/10/98

 


 

 


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