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Chapter Law Content

Title: Natural Gas Enterprise Act CH
Category: Ministry of Economic Affairs(經濟部)
Chapter 2 Registration and Permission
Article 4
The organization of ENTERPRISE for natural gas should be a company limited by shares incorporated pursuant and in accordance with the Company Act.
Those bodies without the Republic of China (Taiwan) nationality shall not be the founders, directors, or supervisors of an ENTERPRISE.
Article 5
ENTERPRISES in operation should Submit an application form with the following documents to the central competent authorities for registration:
1. Corporate registration documents.
2. Map of Plant location.
3. Installation capacity per annum and projects for production or treatment.
4. Documentation for qualified inspections for FACILITIES
5. Layout and capacities of FACILITIES.
6. Leasing contractors should provide proof as evidence to show if the Processing plant and/or FACILITIES are leased.
IMPORTER should Submit an application form with the following documents to the central competent authorities for registration:
1. Corporate registration certificate.
2. Location of TERMINALS and its projected carrying/handling capacity.
3. Import and supply plans.
4. Documentation for qualifying inspections of FACILITIES.
5. Layout and capacities of FACILITIES.
6. Leasing contractors should provide proof as evidence to show if the FACILITIES are leased.
Article 6
For establishment as a UTILITY provider, the applicant must Submit an application form with the following documents to the AUTHORITIES of the municipal government or the county (city) governments for their annotation and review and forward to the central competent authorities for permission:
1. Business planning and scheduling
2. TRANSMISSION and STORAGE layout plans.
3. Drawings of pipeline installation plans provided as of 1/10,000 scale.
4. Gas supplying regional map as of 1/10,000 scale.
Following items should be stated clearly in the application form prescribed in the preceding Section:
1. Name of the Enterprise, Location and business address
2. Name of the party in charge, date of birth in YY/MM/DD, residential address, and Personal Identification documents.
Following items should be stated clearly in the Business planning prescribed in Section 1, Sub-Section 1:
1. Capital
2. Natural gas procuring project
3. Supplying areas.
4. Capacity of gas supply.
5. The number of regional supplying households, the amount of gas supplied alongside with calculation bases of each gas supply area.
6. Gas supply starting date of each gas supply area.
7. Items for transmission, storage equipment and total investment amount.
8. Projections of operational revenues, expenses and financial projects.
9. Transmission and storage equipment maintenance project.
10. Outcome analysis and risk assessment.
Article 7
AUTHORITIES of the municipal governments or the county (city) governments should publicize the application of UTILITY establishments prescribed in the preceding Section upon the receiving of it; the publication period is 30 days. The publication must specify that those who apply for establishment in the same gas supply region should Submit their applications within the publication period prescribed in the preceding Article, at the same time paying the deposit, and Submit the documents prescribed in the preceding Article within 60 days after the publication has expired.
Upon the receiving the application prescribed in the preceding Section, the AUTHORITIE must conduct a review, provide a written report, and notify the central competent authorities along with original application form and relevant documents for review.
The amount or method of payment, conditions of reimbursement and confiscating of the deposit prescribed in Section 1 would be validated by the central competent authorities.
Article 8
The division of gas supply areas of natural gas utility enterprises should be on the basis of a district in the case of municipalities, and the basis of districts or townships in the case of counties (cities), adjustments made by the central competent authorities for the following reasons are exceptions:
1. Alteration of the administrative district.
2. Economic effectiveness.
3. The original operator fails to provide sufficient natural gas to users in the approved gas supply areas. Also if failing to expand equipment or take other corrective measures before the deadline set by the authorities.
4. Other special needs.
Natural gas utility enterprises may not supply gas beyond their gas supply area without permission from the central competent authorities.
Article 9
Natural gas utility enterprises should do the following procedures after obtaining the establishment permit:
1. Corporate registration: complete corporate registration within 4 months after the date of obtaining the establishment permit.
2. Installing transmission and storage equipment: starting construction within 1 year from the date of obtaining the establishment permit.
3. Applying for gas supply operations: Submit application for gas supply operation within 3 years of obtaining the establishment permit.
Those unable to abide by deadlines prescribed in the preceding Section with due reasons may apply for an extension. The extension period of Sub-Section 1, Sub-Section 2, and Sub-Section 3 of the preceding Section should not exceed 2 months, 6 months, and 1 year respectively and should be limited to once per application. Nevertheless, delay days not attributed to the natural gas utility enterprise would be deducted from the calculation of the extension period.
The application of extensions prescribed in the preceding Section should be commented by authorities of the municipal government or the county (city) governments before notifying the central competent authorities for approval.
The central competent authorities would revoke the establishment permit of those failing to apply for corporate registration, installing transmission and storage equipment, or Submit gas supply operation application before the deadline prescribed in the Section 1 and 2.
Article 10
When natural gas utility enterprises apply for gas supply operations, they must attach the following documents in the application for the approval of central competent authorities for gas supply business licenses via authorities of the municipal government or the county (city) governments:
1. Corporate registration documents.
2. Identification documents of the responsible party.
3. Certificate of paid-in capital.
4. Transmission and storage equipment, location qualification documents of inspection.
5. Three copies of the map of gas supply areas.
6. The map of transmission and storage equipment location.
7. Gas supply starting date.
Documentation prescribed in Sub-Section 4 of the preceding Section must be processed according to following prescriptions:
1. The Public natural gas utilities shall obtain the qualification documentation of equipment and location showing to be in accordance to labor safety, hygiene, and fire safety-regarding statutes and regulations from the relevant authorities.
2. When there is equipment and location other than that prescribed in the preceding Sub-Sections, natural gas utility enterprises must obtain qualification documentation of inspection from authorities of the municipal government or the county (city) governments after consulting with relevant authorities or civil inspection institutions approved by the authorities.
The qualifications, conditions, approving procedures, approval revocation, and relevant items of civil inspection institutions prescribed in Sub-Section 2 of the preceding Section would be provided by the central competent authorities.
When deciding to issue gas supply business licenses to natural gas utility enterprises, the Central competent authorities should take into account whether the pipelines of the applicant will pass through any primary streets of the implicated gas supply area.
Article 11
The gas supply business license prescribed in Section 1 of the preceding Article should clearly state following items:
1. The name of the enterprise and where the primary branch office is located.
2. Responsible party.
3. Paid-in capital amount.
4. Supplying areas.
When any of the items stated in the license prescribed in the preceding Section has been altered, natural gas utility enterprises must attach relevant documents in the application from for gas suppler business license renewal to the Central competent authorities via authorities of the municipal government or the county (city) governments.
Article 12
When the documents attached in the application for establishment permit or gas supplier business license if the applications are not complete, the authorities would ask the natural gas utility enterprise to complete the make-up procedure before a specified date. If the applicant has not completed the application before the deadline set by the authorities, its application would be rejected.