Chapter 6 Supervision
Article 45
In the event of a natural gas shortage or great fluctuation in prices that might affect the steady supply of domestic natural gas or national security, the central competent authorities may carry out regulatory measures that are mandatory regarding natural gas supply and sell price.
The conditions, timing, procedures, applying object, scope, content and methods of the regulatory measures prescribed in the preceding Section should be reviewed by the central competent authorities.
Article 46
Natural gas utility enterprises should review gas supply projects yearly, stating the growth of users, amount of gas supplied, length of pipelines installed, gas supply region, and other relevant data, and ask for approval from the central competent authorities via authorities of the municipal government or the county (city) governments, and carry out the projects conscientiously; the authorities may inspect the gas supply projects when they regard it as necessary.
The content, forms, Submit deadlines, and other relevant items should be publicly notified by the central competent authorities.
Article 47
Natural gas enterprises should establish a transmission and storage geographical information management system based on relevant data of transmission and storage equipment, updating the data within the system properly, and periodically sending the data to the authorities of the municipal government or the county (city) governments or central competent authorities ; therefore authorities of all levels may be notified, hence natural gas enterprises should update the data within a limited period when they regard it as necessary.
The forms, items, authorities to receive data and the deadlines of geographical information system data prescribed in the preceding Section should be reviewed by the central competent authorities.
Article 48
Natural gas utility enterprises should periodically inspect the pipelines of families, commercial businesses, and service sectors, and state the results. If the result does not meet the requirements, they should notify the users to apply correcting measures by a specified deadline; the preceding paragraphs apply either if the user requests natural gas utility enterprises to run the inspection.
When the user declines the inspection prescribed in the preceding Section, and natural gas utility enterprises find it posing safety concerns, natural gas utility enterprises may forcibly run the inspection with staff from relevant authorities after the approval of authorities of the municipal government or the county (city) governments.
Entities other than that of the natural gas utility enterprises may not run the inspection prescribed in Section 1. However, public natural gas utilities may commission natural gas pipeline installation enterprises to run the inspection.
Staffs running the inspection prescribed in Section 1 and staffs commissioned to run the inspection prescribed in the preceding Section should initiatively show their identification when running inspections of this type.
The items, periods, operating methods, billing items, and price calculation items of inspection prescribed in Section 1 should be stated clearly on the operating rules of natural gas utility enterprises after approved by the Central competent authorities via authorities of the municipal government or the county (city) governments. However, natural gas utility enterprises may not charge families when running periodical inspections.
When running these inspections prescribed in Section 1, Public natural gas utilities may not promote or sell any form of goods.
Article 49
Natural gas enterprises should periodically inspect gas transmission pipelines self-installed by enterprises of industry, electricity, cogeneration systems or transportation users, and state the result; if the result does not meet the requirements, natural gas enterprises should notify the users to take improvement measures.
Items, periods, price calculating methods, and operation rules of periodical inspections should be approved by the Central competent authorities via authorities of the municipal government or the county (city) governments.
Article 50
Natural gas enterprises should run periodical inspections on their transmission and storage equipment on their own, record the results, and preserve them for 5 years for the authorities to inspect.
Natural gas enterprises should report their periodical inspection items and operating rules prescribed in the preceding Section to the central authorities; the preceding paragraph applies when natural gas enterprises revise their inspection items or operating rules.
The Central competent authorities should inspect transmission and storage equipment of natural gas production or import enterprises, and authorities of the municipal government or county (city) governments should inspect transmission and storage equipment of natural gas utility enterprises at least once a year; the authorities may inspect randomly if they deemed it as necessary.
The authorities may delegate or commission checking businesses prescribed in the preceding Section to Subordinates or other agencies.
Natural gas enterprises may not evade, obstruct, or decline the inspections prescribed in Section 1 and 3.
Article 51
When natural gas enterprises find that their gas transmission pipelines are eroded or showing any signs that pose safety concerns, they should replace them at once.
The authorities may assign staff or commission professional institutions to inspect the gas transmission pipelines of natural gas enterprises; and the enterprises may not evade, obstruct, or decline.
Natural gas enterprises should draft their gas transmission pipelines inspection and replacement projects for the next year before October 31th of every year, and report to the Central competent authorities via authorities of the municipal government or the county (city) governments.
Article 52
The central competent authorities may request natural gas enterprises for explanation their business operations and financial balance, hence assigning various staff , commission professionals and/or professional institute to inspect actual operational proceedings and collect relevant data when they regard it as necessary; the enterprises concerned may not evade, obstruct, or refuse.
Article 53
Natural gas enterprises should report the supply amount, user categories, household numbers monthly, and the balance of payments as well as profits and losses every six months to the central competent authorities.
The report items, forms, periods, and other obligations prescribed in the preceding Section should be reviewed by the central competent authorities.
Article 54
Natural gas utility enterprise should set aside the reserve fund for gas transmission pipeline replacement and deposit it in a special account created in financial institutions; natural gas utility enterprise should report the special account and the name of the financial institution where the account was created to authorities of the municipal government or the county (city) governments; authorities of the municipal government or the county (city) governments should refer natural gas utility enterprise’s preceding and report to the central competent authorities .
The method, ratio, and condition for use of the reserve fund for gas transmission pipeline replacement set aside according to the preceding Section should be reviewed by the central competent authorities.
Article 55
If a natural gas utility enterprise has operational difficulty due to poor management or insufficient amounts of transmission and storage equipment, which could lead to its incapability of maintain a sufficient full-day normal gas supply prescribed in Article 37, Section 1, authorities of the municipal government or the county (city) governments should ask natural gas utility enterprise to take improvement measures within a limited period. If the natural gas utility enterprise is unwilling or unable to improve effectively to the standard, authorities of the municipal government or the county (city) governments may report to the central competent authorities and suggest to replace responsible personnel or revoke their gas supply operation license; the central competent authorities may coordinate other natural gas utility enterprises to take over in advance when they regard it as necessary.