Gas Act Amendment Act 1988 (Qld)

46 Queenstan ANNO TRICESIMO SEPTIMO ELIZABETHAE SECUNDAE REGINAE An Act to amend the Gas Act1965-1985 in certain particulars [ASSENTED TO 7TH APRIL, 1988]

Gas Act Amendment Act 1988 , No. 9 47 BE IT ENACTED by the Queen's Most Excellent Majesty, by and with the advice and consent of the Legislative Assembly of Queensland in Parliament assembled, and by the authority of the same, as follows:- 1. Short Title. This Act may be cited as the Gas Act Amendment Act 1988. 2. Commencement . (1) Section 1 and this section shall commence on the day this Act is assented to for and on behalf of Her Majesty. (2) Except as provided by subsection (1) the provisions of this Act or such of them as are specified in the Proclamation shall commence on a day appointed by Proclamation in respect of those provisions. 3. Citation . (1) In this Act the Gas Act 1965-1985 is referred to as the Principal Act. (2) The Principal Act as amended by this Act may be cited as the Gas Act 1965-1988. 4. Amendment of s. 2 . Act inapplicable in certain cases. Section 2 of the Principal Act is amended by- (a) omitting subsection (3); (b) omitting subsection (4) and substituting the following subsection:- "(4) This Act does not apply in respect of the transporting of natural gas or liquefied petroleum gas through a pipeline licensed under the Petroleum Act 1923-1986 to the extent that the provisions of that Act or of a licence granted under that Act apply in respect of the transporting."; (c) omitting subsection (5). 5. Amendment of s. 3. Arrangement of Act. Section 3 of the Principal Act is amended by- (a) omitting the words "LIQUEFIED PETROLEUM GAS" and substituting the words "GAS SUPPLIERS' LICENCES"; (b) omitting the words "NATURAL GAS" and substituting the words "SUFFICIENCY OF SUPPLY OF GAS"; (c) omitting the words "PART VIA-INSUFFICIENCY OF SUPPLY OF GAS;"; (d) omitting the words "REGULATION OF THE BUSINESS AND OPERATIONS OF GAS SUPPLIERS" and substituting the words "THE GAS TRIBUNAL". 6. Amendment of s. 5 . Meaning of terms. Section 5 of the Principal Act is amended- (a) in subsection (1), by- (i) omitting the expression "(1)" occurring immediately before the words "In this Act";

48 Gas Act Amendment Act 1988, No. 9 (ii) omitting the definition "Area"; (iii) omitting from the definition "Bulk liquefied petroleum gas" or "Bulk L.P. gas" the expression "110" and substituting the expression "500"; (iv) inserting after the definition "Bulk liquefied petroleum gas" or "Bulk L.P. gas" the following definition:- " "Caravan"-A structure designed or adapted for human habitation or for use as a workshop or mobile kitchen that is able to be moved from one place to another, whether by being towed or transported on a vehicle or trailer: The term includes any vehicle designed or adapted for use as a caravan;"; (v) omitting the definition "Franchise" and substituting the following definition:- "Franchise"-The right to establish and maintain a reticulation system in an area, granted under Part III of this Act;"; (vi) inserting after the definition "Franchise" the following definition:- "Franchise area"-A part of the State in relation to which a gas supplier holds a subsisting franchise;"; (vii) omitting from the definition "Gas examiner" the word "senior" and substituting the words "deputy chief "; (viii) omitting the definition "Gas supplier" and substituting the following definition:- "Gas supplier"-A person supplying or desirous of supplying by way of sale- (a) bulk liquefied petroleum gas; (b) gas through a reticulation system; (c) gas intended for supply through a reticulation system; (d) gas to a consumer through pipes or mains located outside the consumer's premises; (e) gas in any manner declared by the Governor in Council for the purposes of this definition;"; (ix) omitting the definition "Gas undertaking"; (x) omitting the definition "Gas works" and substituting the following definition:- "Gas works"-A liquefied petroleum gas terminal or a place where gas is produced for supply to a consumer;"; (xi) inserting after the definition "Liquefied petroleum gas" the following definition:- " "Liquefied petroleum gas terminal"-A place into which liquefied petroleum gas is supplied from road, rail or marine tankers

Gas Act Amendment Act 1988, No. 9 49 or by pipeline and is there stored in containers with an aggregate capacity of 100 tonnes or more, awaiting delivery into road, rail or marine tankers or a pipeline;"; (xii) omitting the definition "Minister" and substituting the following definition:- "Minister"-The Minister for Mines and Energy or other Minister of the Crown for the time being charged with the administration of this Act: The term includes any Minister of the Crown performing the duties of the Minister;"; (xiii) omitting the definition "Qualified person" and substituting the following definition:- "Qualified person"-A person who- (a) is- (i) a graduate in an approved branch of science or engineering of an approved educational institution; or (ii) a corporate member of The Institution of Engineers, Australia, or the Royal Australian Chemical Institute, and has had at least 12 months relevant technical experience approved by the chief gas examiner; (b) is- (i) the holder of a diploma in an approved branch of science, applied science or engineering; or (ii) the holder of a certificate of competency as a gas manager issued by the Australian Gas Association, and has had at least two years relevant technical experience approved by the chief gas examiner; or (c) has qualifications and experience that in the opinion of the chief gas examiner are equivalent to the qualifications and experience prescribed by paragraph (a) or (b);"; (xiv) inserting after the definition "Relief device" the following definition:- "Reticulation system"-An interconnected network of underground mains and associated fittings supplying gas to at least 50 consumers;"; (xv) omitting from the definition "Standard cubic metre of gas" the expression "1013.25 millibars" and substituting the expression "101.325 kilopascals"; (xvi) omitting from the definition "Standard cubic metre of gas (saturated)" the expression "1013.25 millibars" and substituting the expression "101.325 kilopascals";

50 Gas Act Amendment Act 1988, No. 9 (xvii) inserting after the definition "Testing place" the following definition:- "Tolling arrangement"-A contractual arrangement by which a person delivers gas to a reticulation system and takes gas in a similar quantity from another point in the system upon payment of a charge to the operator of the system;"; (xviii) omitting from the definition "Unaccounted for gas" the words "engaged in a gas undertaking" and substituting the words "operating a reticulation system"; (b) by omitting subsection (2). 7. Repeal of and new s. 6. General administration of Act. The Principal Act is amended by repealing section 6 and substituting the following section:- "6. Administration . This Act shall be administered by the Minister and, subject to him, by the Director-General, Department of Mines, the chief gas examiner, the deputy chief gas examiner and such other gas examiners and officers appointed for the purposes of the Act or delegated in writing by the Minister to administer particular provisions of the Act and by persons and the holders from time to time of appointments authorized or specified by the regulations to the extent specified in the regulations.". 8. Repeal of and new s. 7. Appointment of officers . The Principal Act is amended by repealing section 7 and substituting the following section:- "7. Appointment of officers. (1) There shall be appointed from time to time for the purposes of this Act- (a) members of the Gas Tribunal; (b) a chief gas examiner; (c) a deputy chief gas examiner; (d) such number of gas examiners and other officers as are necessary for the effectual administration of this Act. (2) Except for the members of the Gas Tribunal every person such as is referred to in subsection (1) shall be appointed as and shall hold his appointment as an officer of the public service. Judicial notice shall be taken of every such appointment notified in the Gazette. (3) The Gas Tribunal shall consist of one or more persons possessing relevant qualifications and experience and appointed by the Governor in Council on the recommendation of the Minister.

Gas Act Amendment Act 1988, No. 9 51 A member of the Gas Tribunal- (a) shall be appointed for a term not exceeding five years; (b) shall hold his appointment upon such conditions as the Governor in Council determines; and (c) shall be eligible for re-appointment.". 9. Amendment of s. 7A. Power to delegate . Section 7A of the Principal Act is amended in subsection (1), by inserting after the words "any gas examiner" the words "or, with the Minister's approval, to any other person". 10. Amendment of s. 8 . Powers of inspection , &c. Section 8 of the Principal Act is amended in subsection (1), by- (a) omitting the word "senior" and substituting the words "deputy chief "; (b) inserting in paragraph (c) after the word "require" the words "in writing"; (c) inserting in paragraph (c) before the word "examiner" where it secondly occurs the word "gas"; (d) omitting from paragraph (c) all words from and including the words "and," to and including the word "efficient"; (e) inserting in paragraph (d) before the word "examiner" the word "gas (f) inserting in paragraph (e) before the word "examiner" the word "gas"; (g) inserting in paragraph (e) after the word "vehicle", wherever it occurs, the words ", caravan". 11. Amendment of s. 10 . O bstruction of gas examiners . Section 10 of the Principal Act is amended by omitting from paragraph (d) the words "such examiner" and substituting the word "him". 12. Amendment of s. 10A. Notification of accidents . Section 10A of the Principal Act is amended- (a) in subsection (1), by omitting the words "twenty dollars or such other sum as may from time to time be prescribed" and substituting the words "the sum prescribed by the regulations"; (b) in subsection (3), by omitting the words "such examiner" and substituting the words "the gas examiner"; (c) in subsection (4), by (i) omitting from the first paragraph the words "may enquire as he considers necessary" and substituting the words "shall enquire";

52 Gas Act Amendment Act 1988, No. 9 (ii) omitting the second paragraph and substituting the following paragraph:- "In discharging his duty under this subsection a gas examiner- (a) may require a person to inform him of what that person knows concerning the accident; (b) may require a person to submit to the chief gas examiner within two weeks after the making of the requisition a written report containing a full and correct statement of the circumstances of and surrounding the accident as known to that person; (c) may inspect any book, register, record (in whatever form it may be kept), list, document, notice or other writing and take possession thereof or make copies or extracts thereof or take print-outs thereof."; (iii) inserting in the third paragraph after the words "Any person" the words "who fails to comply with a requisition made on him under this subsection or". 13. Amendment of s. 10c. Protection for acts done in the execution of this Act . Section 10c of the Principal Act is amended by omitting subsection (1) and substituting the following subsection:- "(1) Without derogating from section 44 (7), no act or thing done or omitted by any person- (a) who is acting in that respect in execution of his functions, powers or duties under this Act; or (b) who purports to be acting in that respect in execution of his functions, powers or duties under this Act and acts in good faith and without negligence, shall subject the person to any liability in respect thereof.". 14. New s. 10D. The Principal Act is amended by inserting after section 10c the following section: "10D. Inquiries into accidents . (1) In every case of an accident in relation to which a person is required by section l0A (1) to notify the chief gas examiner, unless the Minister otherwise determines, an inquiry shall be held before a tribunal consisting of- (a) a stipendiary magistrate who ordinarily constitutes a Magistrates Court in the Magistrates Court District in which the accident occurs, who shall be chairman of the tribunal; and (b) three persons with practical knowledge and skill in the gas industry (in this Act called "reviewers") having no connexion with the gas supplier concerned or the owner, occupier or person in charge of the

Gas Act Amendment Act 1988, No. 9 53 place where the accident occurred who shall be selected by the stipendiary magistrate who is to be chairman of the tribunal. (2) In the case of an inquiry into a fatal accident, the stipendiary magistrate shall, at least four days before the inquiry is to commence, cause notice of the time and place for holding the inquiry to be given to- (a) the gas supplier concerned; (b) the owner, the occupier and the person in charge of the place where the accident occurred; (c) the relict or nearest of kin of the deceased person if that person resides in Queensland at an address known to the stipendiary magistrate; and (d) the chief gas examiner. (3) In the case of an inquiry into a non-fatal accident, the stipendiary magistrate shall, at least four days before the inquiry is to commence, cause notice such as is referred to in subsection (2) to be given to the persons specified in that subsection except that, in lieu of the persons specified in paragraph (c) of that subsection, the notice shall be given to a person resident in Queensland nominated by the injured person or, as the case may be, the owner of property damaged in the accident. (4) At an inquiry held under this section each person injured in the accident, each owner of property damaged in the accident and each person to whom notice is given under subsection (2) or (3) is entitled to be present and to call, examine, cross-examine and re-examine witnesses, personally or by counsel, solicitor or agent. (5) A tribunal conducting an inquiry shall be deemed to be a Commission within the meaning of the Commissions of InquiryAct 1950-1987 and the provisions of that Act, other than sections 4, 4A, 5A, 5B, 10 (3), 13, 14 (1A), 19A, 19B, 19c and 26, shall apply in respect of the conduct of the inquiry. (6) When a tribunal has heard and received all the evidence adduced at the inquiry the reviewers shall record their findings as to the cause or causes of the accident and shall record such recommendations as they consider appropriate with a view to preventing the occurrence of a similar accident. The chairman of the tribunal shall also record his findings as to the cause or causes of the accident. (7) The chairman of the tribunal shall send to the Minister for Justice and Attorney-General- the depositions of evidence adduced at the inquiry; documentary exhibits received in the inquiry; the record of his findings and the findings and recommendations of the reviewers, and shall send a copy thereof to the Minister.".

54 Gas Act Amendment Act 1988, No. 9 15. Repeal of and new s . 11. Gas undertakings at commencement of Act. The Principal Act is amended by repealing section 11 and substituting the following section:- "11. Franchises existing before 1988 amending Act. (1) A person who immediately before the commencement of section 16 of the Gas Act Amendment Act 1988 is the holder of a franchise in relation to an area that contains a reticulation system shall upon that commencement be deemed to be the holder of a franchise within the meaning of this Act that is subject to the provisions of this Act for that area. (2) An application in writing for a franchise that has been received by the Minister and is under consideration or is the subject of a recommendation by the Minister to the Governor in Council at the commencement of section 16 of the Gas ActAmendment Act 1988 shall, to the extent that the application satisfies the requirements of this Act, be dealt with in accordance with the provisions of this Part. (3) The Governor in Council may, by Order in Council made before or after the commencement of section 16 of the Gas Act Amendment Act 1988, redefine the area to which a franchise referred to in subsection (1) relates, in consequence of which the franchise shall, on and from that commencement or on and from the taking effect by the Order in Council (whichever is the later), relate to the area so redefined in lieu of the area to which the franchise previously related. The power conferred on the Governor in Council by this subsection may be exercised in respect of each area to which a franchise relates once only.". 16. New s. 11A . The Principal Act is amended by inserting after section 11 the following section:- "11A. Cessation of certain franchises . Upon the commencement of section 16 of the Gas Act Amendment Act1988 a franchise that exists immediately before that commencement in respect of an area that does not contain a reticulation system shall cease to be of any force or effect and the entitlements of the holder thereof under the franchise shall no longer exist.". 17. New s. 11B. The Principal Act is amended by inserting after section 11 A the following section:- "118. Sole right to supply LP gas. (1) A gas supplier which is declared by Order in Council to be entitled to supply bulk liquefied petroleum gas in an area designated in the order shall alone be entitled to supply bulk liquefied petroleum gas in the area so designated for a period not exceeding 12 months specified

Gas Act Amendment Act 1988, No. 9 55 in the order and commencing on the day on which section 16 of the Gas Act Amendment Act 1988 commences. (2) An Order in Council shall not be made under subsection (1) more than once in relation to- the area designated in an order made under that subsection; any part of that area; or an area that includes any part of that area. (3) A person who supplies bulk liquefied petroleum gas in an area so designated within a period so specified commits an offence against this Act unless he is the person specified by Order in Council made under subsection (1) to be entitled to supply such gas in the area so designated.". 18. Amendment of s. 12 . Application for and grant of franchise. Section 12 of the principal Act is amended- (a) in subsection (1), by omitting the words "franchised gas undertaking within or for any part of the State" and substituting the words "reticulation system in any part of the State or to extend a reticulation system outside the area to which a franchise relates"; (b) in subsection (4), by omitting the second paragraph and substituting the following paragraph:- "The Governor in Council may- (a) in respect of an application for a franchise- (i) refuse to grant any franchise; or (ii) grant a franchise as recommended by the Minister or otherwise as he thinks fit; (b) in respect of an application for extension of a franchise area- (i) refuse to grant any extension; or (ii) grant an extension as recommended by the Minister or otherwise as he thinks fit."; (c) in subsection (6), by omitting the words "gas undertaking within or for" and substituting the words "reticulation system in". 19. Repeal of and new s. 13. Offences in relation to mains. The Principal Act is amended by repealing section 13 and substituting the following section:- "13. Offences in relation to franchise areas . (1) A person shall not establish or maintain a reticulation system in a franchise area unless he is the holder of the franchise that relates to the area.

56 Gas Act Amendment Act 1988, No. 9 (2) A person shall not supply gas to a consumer in a franchise area through a pipe or main from outside the premises of the consumer unless- (a) he is the holder of the franchise that relates to the area; (b) he is the holder of a pipeline licence under The Petroleum Act of 1923 as amended and in force for the time being that authorizes the supply in question of gas; (c) he is authorized by Order in Council made under section 14 ( 1) so to do and gives the supply in question of gas in accordance with the Order in Council; or (d) he gives the supply in question of gas to the consumer by means of a tolling arrangement or similar use of an existing, lawful reticulation system. (3) A person who contravenes subsection (1) or (2) commits a continuing offence against this Act and, whether or not any other penalty is imposed in respect thereof, is liable to a penalty of 20 penalty units for each day during which the offence continues.". 20. Repeal of and new s. 14. Authorization to supply gas in special case. The Principal Act is amended by repealing section 14 and substituting the following section:- "14. Authorization to supply gas in special cases. (1) Where it appears to the Governor in Council- (a) that the holder of a franchise is unable or unwilling to supply gas through his reticulation system to a particular consumer in the franchise area at a price or on terms and conditions that are reasonable and acceptable to the consumer; or (b) that there exists other good and sufficient reason for his acting under this subsection, the Governor in Council may, by Order in Council, authorize any person to supply gas in the franchise area for the purpose or purposes specified in the order. (2) The Governor in Council may, by Order in Council made on the recommendation of the Minister, authorize any person to construct, maintain and operate a pipe or main in an area that is not in a franchise area for the purpose of supplying gas by way of sale to a consumer. An Order in Council under this subsection may be made subject to such conditions as the Governor in Council thinks fit whereupon the authority conferred by the order is restricted to

Gas Act Amendment Act 1988, No. 9 57 constructing, maintaining and operating a pipe or main and supplying gas in accordance with those conditions. (3) An Order in Council of a description referred to in subsection (2) made before the commencement of sections 16 and 20 of the Gas Act Amendment Act 1988 shall be deemed to take effect upon the commencement of section 16 of that Act and shall further be deemed to be an Order in Council made under subsection (2).". 21. New s. 14A . The Principal Act is amended by inserting after section 14 the following section:- "14A. Restriction on supply of gas outside franchise area. A person shall not supply gas to a consumer in an area that is not in a franchise area, through a pipe or main from outside the premises of the consumer, unless he does so in accordance with authority conferred on him by Order in Council under section 14 (2).". 22. Amendment of s. 15. Cancellation of franchise . Section 15 of the Principal Act is amended- (a) in subsection (1), by omitting all words from and including the words "gas undertaking" to and including the words "any part of such area" and substituting the words "reticulation system in the franchise area or in any part thereof "; (b) in subsection (2), by omitting from paragraph (a) the words "gas undertaking within or for" and substituting the words "reticulation system in". 23. Amendment of s. 17. Effect of cancellation of franchise . Section 17 of the Principal Act is amended- (a) in subsection (2), by omitting the words "gas undertaking" and substituting the words "reticulation system"; (b) in subsection (3)- (i) by, in the first paragraph, omitting all words from and including the words "a gas referee" to and including the words "such previous holder" and substituting the words "the Gas Tribunal which shall advise the Minister as to the amount of compensation which, in its opinion, should be paid"; (ii) by omitting the second paragraph; (c) by adding at the end of the section the following subsections:- "(4) The Minister shall consider the advice of the Gas Tribunal and such other information as he considers relevant and shall recommend to the Governor in Council the amount of compensation which in his opinion should be paid by the holder of the franchise granted in lieu of the cancelled franchise to the person who was the holder of the franchise so cancelled 3

58 Gas Act Amendment Act 1988, No. 9 and, without in any way being bound by that recommendation, the Governor in Council shall, by Order in Council, determine the amount of compensation that is payable by such holder to such previous holder. (5) A determination by the Governor in Council under subsection (4) shall be final and binding on the holder of the franchise granted in lieu of the cancelled franchise and the person who was the holder of the franchise so cancelled. (6) A copy of an Order in Council made under subsection (4) may be filed in the registry of the Supreme Court of Queensland whereupon the order shall be deemed to be a judgment of that court duly made that requires the payment of money and may be enforced accordingly.". 24. Amendment of s. 18. Restriction on disposal of gas undertaking. Section 18 of the Principal Act is amended- (a) in the note appearing in and at the beginning of the section, by omitting the words " gas undertaking " and substituting the words "reticulation system"; (b) by omitting the words "gas undertaking" wherever occurring elsewhere in the section and substituting in each case the words "reticulation system". 25. Amendment of s. 20 . Section 20 of the Principal Act is amended- (a) in subsection (1)- (i) by, in the note appearing in and at the beginning of the subsection, omitting the words " franchised gas undertaking" and substituting the words " reticulation system"; (ii) by omitting the words "franchised gas undertaking" where occurring elsewhere in the subsection and substituting the words "reticulation system"; (b) by omitting subsection (2) and substituting the following subsection:- "(2) If the Governor in Council considers it to be necessary or desirable for the effectual establishment or maintenance of a particular reticulation system that Schedule II should be modified in its application to that reticulation system he may, by Order in Council, specify the necessary or desirable modifications. Schedule II as so modified for the time being shall apply to the particular reticulation system in lieu of the Schedule II prescribed by this Act. The power to modify Schedule II does not include power to substantially rescind Schedule II and substitute another schedule in its stead.". (c) in subsection (3), by omitting the words "gas undertaking" and substituting the words "reticulation system".

Gas Act Amendment Act 1988, No. 9 59 26. Amendment of s. 22. Power to vary areas . Section 22 of the Principal Act is amended- (a) in the note appearing in and at the beginning of the section, by inserting after the word "vary" the word " franchise"; (b) in subsection (2), by inserting after the words "from any" the word "franchise". 27. Repeal of s. 24. Quality and pressure of gas. The Principal Act is amended by repealing section 24. 28. Amendment of s. 26. Penalty on gas supplier for insufficiency of supply . Section 26 of the Principal Act is amended- (a) in the note appearing in and at the beginning of the section, bbyy, , o;mitting the words " Penalty on " and substituting the words " Forfeiture (b) by omitting the words " gas undertaking " and substituting the words "reticulation system"; (c) by omitting the expression " 40A" and substituting the expression "44"; (d) by omitting the words "a penalty of $500" and substituting the words "forfeit the sum of $1 000"; (e) by omitting the words "be penalized" and substituting the words "suffer a forfeiture". 29. Amendment of s. 28 . Duty of gas supplier to supply consumers. Section 28 of the Principal Act is amended- (a) by numbering the provisions thereof as subsection (1); (b) by adding at the end thereof the following subsection:- "(2) If a gas supplier believes that in respect of particular premises a supply of gas cannot be given under the conditions specified in subsection (1) and provide him with an economic financial return, the gas supplier may apply to the Minister to be exempted from the duty imposed by subsection (1) and the Minister may, if he thinks fit, grant the exemption sought.". 30. Amendment of s. 29. Section 29 of the Principal Act is amended in subsection (5)- (a) by, in the note appearing in and at the beginning of the subsection, omitting the words " Penalty for " and substituting the words "Forfeiture where"; (b) by omitting the words "a penalty of $50" and substituting the words "forfeit the sum of $100".

60 Gas Act Amendment Act 1988, No. 9 31. Amendment of s. 30 . Application to Minister to obtain a supply of gas. Section 30 of the Principal Act is amended- (a) in subsection (1)- (i) by omitting the words "within a part of the State defined in the application in this section referred to and within an area in relation to which a gas supplier is the holder of a franchise," and substituting the words "in or adjacent to a franchise area"; (ii) by omitting the second paragraph thereof; (b) by omitting subsection (2) and substituting the following subsections:- "(2) If the Minister is satisfied that the return to the gas supplier from the aggregate sales of gas supplied to the premises referred to in subsection (1), being premises adjacent to a franchise area , would be an economic return on the outlay that would be incurred by the gas supplier for the purpose of supplying the gas, the Minister may recommend to the Governor in Council that the franchise area be extended to include those premises and the Governor in Council may extend the franchise area accordingly. (2A) If the Minister is satisfied of the matters referred to in subsection (2) and the premises in question are in a franchise area (including the case where the franchise area has been extended under subsection (2)), the Minister may, by order signed by him, direct the gas supplier concerned to lay such pipes, extend such mains and construct all such other works and do all such things, within a time limited by the order, as are necessary for the purpose of supplying gas to premises in the part of the State defined in the order.". 32. Amendment of s. 31 . Section 31 of the Principal Act is amended- (a) in subsection (1), by omitting the words "shall cause all gas obtained or produced by it for the purpose of its gas undertaking" and substituting the words ", which is the holder of a franchise, shall cause all gas obtained or produced by it for use in its reticulation system"; (b) in subsection (2)- (i) by omitting paragraph (a); (ii) by, in paragraphs (b) and (c), omitting the words "a gas examiner" wherever occurring and substituting in each case the words "an approved person"; (c) in subsection (3), by omitting from paragraph (a) the words "a gas examiner" and substituting the words "an approved person"; (d) in subsection (4)- (i) by omitting from paragraph (a) the words "a gas examiner" wherever occurring and substituting in each case the words "an approved person";

Gas Act Amendment Act 1988, No. 9 61 (ii) by omitting paragraph (b) including the proviso and substituting the following paragraphs:- "(b) If required by the chief gas examiner so to do, a gas supplier shall deliver all meters required by this Act to be tested and stamped by an approved person to the place specified in the requisition. (c) In circumstances approved by the chief gas examiner an approved person may test a meter and, if he finds it correct, stamp the same without its removal from the premises of a consumer."; (e) in subsection (6), by omitting the expression "$500" and "$50" and substituting the words "20 penalty units" and "2 penalty units" respectively; (f) by adding at the end of the section the following subsection:- "(8) In this section the expression "an approved person" means- (a) a gas examiner; or (b) any other person approved in writing by the chief gas examiner as a person who may test and stamp meters.". 33. Amendment of s. 32 . Section 32 of the Principal Act is amended in subsection (3)- (a) by omitting from paragraph (a) the expression "$1 000" and substituting the words "40 penalty units"; (b) by omitting from paragraph (b) the expression "$500" and substituting the words "20 penalty units". 34. Amendment of s. 33 . Meters, pipes, &c., not subject to distress for rent , &c. Section 33 of the Principal Act is amended by omitting the expression "1924-1960" and substituting the words "1966 of the Commonwealth as amended and in force for the time being and any Act substituted for that Act". 35. Repeal of Parts V, VI, VIA and VII. The Principal Act is amended by- (a) omitting the headings appearing immediately before sections 34, 40, 40A and 41; (b) repealing sections 34 to 51 B, both inclusive. 36. New Part V. The Principal Act is amended by inserting the following heading and sections after section 33:- "PART V-GAS SUPPLIERS' LICENCES 34. Termination of this Part . This Part and any licence granted under this Part shall expire on 30 June 1995.

62 Gas Act Amendment Act 1988, No. 9 35. Gas supplier to be licensed . (1) No person shall perform the functions of a gas supplier unless and until that person is the grantee of a gas supplier's licence granted by the Governor in Council pursuant to this Part. A person who contravenes this subsection commits an offence against this Act and, whether or not any other penalty is imposed in respect thereof, is liable to a penalty of 100 penalty units for each day on which the contravention continues. (2) Subsection (1) does not apply to the retail supply of liquefied petroleum gas for automotive purposes.". 37. New ss. 36 , 37 and 38. The Principal Act is amended by inserting the following sections after section 35:- "36. Granting of gas suppl i er's licence . The Governor in Council on the recommendation of the Minister may grant a gas supplier's licence to a person and may from time to time vary any such licence. 37. Contents of licences . A gas supplier's licence shall contain a requirement that the grantee thereof shall- (a) maintain adequate safety standards including inspections and training; (b) provide an adequate and reliable supply of gas; (c) provide technical advisory services to gas consumers; and (d) ensure that the needs of small or domestic users of the gas supplied by it are not neglected, and shall contain such other terms and conditions (if any) as are prescribed by the regulations. 38. Licence fee. (1) An annual fee shall be payable for a gas supplier's licence. The amount of and the method of calculating the fee shall be as prescribed by the regulations. (2) A fee payable pursuant to subsection (1) and not paid shall be a debt due and owing to the Crown by the grantee of the gas supplier's licence to which the fee relates.". 38. New ss. 39 , 40 and 41. The Principal Act is amended by inserting the following sections after section 38:- "39. Cancellation of licence . (1) A gas supplier's licence may be cancelled by the Governor in Council on the recommendation of the Minister for failure by the grantee to comply with any of the terms or conditions to which the licence is subject. (2) A gas supplier's licence shall not be cancelled unless- (a) notice of the failure to comply with the term or condition thereof for which cancellation is proposed has been given to the grantee thereof; and

Gas Act Amendment .Act 1988, No. 9 63 (b) the failure to comply has not been remedied within the time limited for that purpose in the notice of the failure to comply. 40. Surrender , transfer etc. of licence. (1) No gas supplier's licence shall be surrendered or be directly or indirectly assigned, transferred, leased, subleased, mortgaged or made the subject of any trust except with the prior consent t f the Minister, and any such surrender or dealing with such licence made without such consent shall be void. (2) The Minister may, upon application for consent thereto, require such information concerning any proposed such dealing as he considers necessary or desirable. (3) Where any licence has been assigned or transferred to any other person with the Minister's consent the assignee or transferee shall, immediately upon the completion of such assignment or transfer, be for all the purposes of this Act the grantee of the licence. 41. Penalty for breach of licence conditions . A grantee of a gas supplier's licence which fails to comply with a term or condition thereof commits an offence against this Act and, whether or not any other penalty is imposed in respect thereof, is liable to a penalty of 100 penalty units for each day on which the offence continues.". 39. New Part VI. The Principal Act is amended by inserting the following heading and sections after section 41- "PART VI-SUFFICIENCY OF SUPPLY OF GAS 42. Application of Part . The gas suppliers to which this Part applies include producers of natural gas which supply that gas to a gas supplier and this Part applies to and in relation to such natural gas. 43. Allocation of gas resources . (1) A gas supplier shall not make a contract for the supply of indigenous natural gas or liquefied petroleum gas derived from indigenous natural gas, where such contract provides for a rate of delivery in excess of one petajoule per year or delivery of a total quantity in excess of 5 petajoules, unless the Governor in Council has approved of the making of the contract in question. (2) If it appears to the Governor in Council that a shortfall exists between the amount of gas contracted for and the amount of gas available to meet the contractual obligations, the Governor in Council shall determine the priority of supply of such gas. (3) If a gas supplier, in contravention of subsection (1), purports to make a contract for the supply of gas to any gas supplier or other person, such contract shall be void. (4) A gas supplier which contravenes or fails to comply with any determination of the Governor in Council pursuant to

64 Gas Act Amendment Act 1988, No. 9 subsection (2) commits an offence against this Act and, whether or not any other penalty is imposed in respect thereof, is liable to a penalty of 10 penalty units for each day during which its contravention or failure to comply continues. 44. Provision for insufficiency of supply. (1) Whenever it appears to the Governor in Council that the supply of the gas available in or to any area or areas of the State is, or is likely to become, less than sufficient for the reasonable requirements of that area or those areas, the Governor in Council may exercise all or any of the powers conferred upon him by this section and may do all acts and things necessary or expedient to ensure the sufficiency of the supply of gas to such area or areas and, in the meantime, to ensure the equitable and proper distribution and use of the supply of gas available to such area or areas. The powers conferred by this subsection are in addition to any other powers which, apart from this subsection, may be exercised under this Act or otherwise. (2) The Governor in Council may, from time to time, by Proclamation, declare that on and from the date of publication of such Proclamation or a later date specified therein, in respect of any area or areas defined in such Proclamation, it is necessary to exercise the powers conferred upon him by this section. (3) For so long as such a Proclamation remains in force the Governor in Council may make regulations for or in respect of- (a) regulating or prohibiting the sale, supply, use or consumption of gas either generally or for any purpose specified in the regulation; (b) providing for the appointment of any person or body of persons to exercise such functions as may be prescribed for the purpose of achieving the objects of this section; (c) conferring or imposing upon such person or body of persons such functions, powers and duties as appear to him necessary or desirable to achieve the objects of this section; (d) prescribing all such matters and things as are necessary or desirable to be prescribed for achieving the objects of this section. (4) A regulation made pursuant to subsection (3) of this section- (a) may be made to apply to the whole of, or to any area or areas within, Queensland; (b) subject to subsection (5) of this section, may be made to be in force for any period or periods specified therein; (c) may be made of general application throughout any area or of limited application within any area in

Gas Act Amendment Act 1988, No. 9 65 relation to times, places, circumstances, conditions or restrictions specified therein; (d) may constitute offences against any regulation and, in respect thereof, impose a penalty not exceeding 60 penalty units and, in the case of a continuing offence, a further penalty not exceeding 5 penalty units for each day during which any such offence is continued. (5) Unless it sooner expires or is revoked every regulation made pursuant to subsection (3) of this section shall continue in force (as amended from time to time) until the Proclamation, consequent upon which such regulation was made, is revoked. The expiration or revocation of such a regulation shall not affect any liability incurred by any person on account of an offence against any provision of such regulation committed prior to such expiration or revocation and every investigation, proceeding, penalty or forfeiture in respect of such offence may be instituted, continued, imposed or enforced as if such regulation had not expired or been revoked. (6) This section and the provisions of every regulation made pursuant to subsection (3) shall- (a) have full force and effect notwithstanding any provision of this Act or of any other Act or law or any judgment or order of any court or any contract, agreement, deed, security, document or writing whatsoever; (b) bind the Crown. (7) No claim or demand, action, suit or proceeding shall lie or be brought against Her Majesty or any Minister of the Crown or any person acting in the execution of his powers, duties or functions under this section or any regulation made pursuant to subsection (3) for or in respect of any damage, loss or injury sustained, or alleged so to be, by reason of anything done or purporting to be done under this section or such regulation. (8) For the purpose of paragraph (d) of subsection (4) a penalty unit shall have the value assigned to a penalty unit by the Penalty Units Act 1985.". 40. New Part VII. The Principal Act is amended by inserting the following heading and sections after section 44:- "PART VII-THE GAS TRIBUNAL 45. Application of this Part . This Part applies with respect to all gas suppliers. 46. Eligibility of members . A member of the Gas Tribunal shall give notice in writing to the Minister of any direct or indirect pecuniary or other interest which he has or acquires and which could conflict with the proper discharge of his functions.

66 Gas Act Amendment Act 1988, No. 9 The Minister may direct, by instrument in writing, that a particular member of the Gas Tribunal not participate in a specific inquiry. 47. Gas Tribunal inquiry. The Minister may require, by instrument in writing published in the Gazette, that the Gas Tribunal inquire into a matter or matters specified in the instrument and report to the Minister its conclusions, advice and recommendations. Such instrument may contain- (a) a direction to report within a specified period of time; (b) directions as to specific matters to be taken into consideration by the Gas Tribunal in arriving at its conclusions and developing its advice and recommendations.". 41. New ss . 48 and 49. The Principal Act is amended by inserting the following sections after section 47:- "48. Confidentiality of information . The Gas Tribunal may, on the application of any person who has submitted or will submit confidential information to it, keep such information confidential for so long as and to the extent that it is satisfied that the disclosure of such information would be contrary to the public interest or be likely to cause commercial harm to the person submitting such information. 49. Authorities of the Gas Tribunal. (1) The authorities that may be exercised by the Gas Tribunal for the purpose of complying with a requisition of the Minister issued pursuant to section 47 are- (a) to inquire into any matter related to the business of a gas supplier or to specific aspects of its operations; (b) to evaluate the performance of a gas supplier with respect to franchise or licence conditions; (c) to inquire into any matter that concerns the interests of consumers and without limiting the range of such matters to- (i) inquire into the prices charged for gas supplied to consumers; (ii) inquire into any other charges or conditions which may be imposed by gas suppliers in respect of the supply of gas to consumers; (iii) inquire into the level of profit achieved by a gas supplier taking into account the profit level of other comparable business enterprises in Australia; (d) to inquire into other matters associated with gas supply; (e) to carry out such investigations as may be necessary for or incidental to the advancement of its inquiries; (f) to report in writing upon the results of its inquiries and to provide advice and recommendations to the

Gas Act Amendment Act 1988, No. 9 67 Minister, which recommendations may include recommended maximum prices or charges where appropriate or where required by the Minister. (2) For the purposes of an inquiry conducted by it the Gas Tribunal shall be deemed to be a Commission within the meaning of the Commissions of Inquiry Act 1950-1987 and the provisions of that Act, other than sections 4, 4A, 5A, 5B, 10 (3), 13, 14 (IA), 19A, 19B, 19c and 26, shall apply in respect of the conduct of the inquiry.". 42. New ss. 50 and 51. The Principal Act is amended by inserting the following sections after section 49:- "50. Inquiry into gas prices. In an inquiry into prices charged or to be charged for gas by a gas supplier, the Gas Tribunal shall take congnizance of but shall not be limited to- (a) the price or prices necessary to be charged for gas to enable the gas supplier to make a reasonable profit; (b) competition from other forms of energy; (c) interest payable on loans and ratio of debt to equity; (d) expenses properly chargeable to revenue in accordance with generally accepted accounting principles; (e) depreciation and reasonable contingencies; (f) the accumulation of reserves and special accounts before the commencement of section 16 of the GasAct Amendment Act 1988 and the purposes for which those reserves and special accounts were approved; (g) any other reasonable expenditure by the gas supplier and reasonable provision for future expenditure by the gas supplier in connexion with the carrying on of its activities; (h) the efficiency of the gas supplier in the conduct of its business. 51. Fixing of prices and charges . (1) If the Minister considers it appropriate to do so following a report of the Gas Tribunal on a matter referred to it, the Minister may recommend in relation to the matter that the Governor in Council do any one or more of the following- (a) fix a price or prices as the maximum gas price or prices applicable; or (b) prohibit a specified condition or type of condition or a specified charge or type of charge; or (c) fix the maximum amount of a specified charge or type of charge; or

68 Gas Act Amendment Act 1988, No. 9 (d) take action regarding a licence or franchise; and (e) fix a date from which a determination by the Governor in Council shall apply. (2) The Governor in Council may, by Order in Council, do all such acts and things necessary or desirable to achieve the Minister's recommendations. (3) A gas supplier who contravenes or fails to comply with any provision of an Order in Council made under subsection (2) and applicable to that gas supplier commits an offence against this Act and, whether or not any other penalty is imposed in respect thereof, is liable to a penalty of 100 penalty units for each day during which the contravention or failure to comply continues.". 43. Repeal of s. 52. Supply of gas through meter restricted. The Principal Act is amended by repealing section 52. 44. Amendment of s. 53 . Use of meters , & c., restricted . Section 53 of the Principal Act is amended by omitting the words "gas supplier" and substituting the word "person". 45. New s. 53A. The Principal Act is amended by inserting the following section after section 53:- "53A. Use of large containers of another without permission prohibited . A gas supplier shall not- (a) supply liquefied petroleum gas into; (b) purport to sell; or (c) use in the conduct of his business as a gas supplier, a container that is of a greater water capacity than 25 kilograms and is the property of another gas supplier unless the first- mentioned gas supplier has the permission in writing of the other gas supplier so to do. Penalty: Five penalty units in respect of each container in respect of which this section is contravened.". 46. Amendment of s. 59 . Returns. Section 59 of the Principal Act is amended by- (a) omitting the words "chief gas examiner " and substituting the word "Minister"; (b) omitting the words "such examiner " where they twice occur and substituting in each case the words "the Minister".

Gas Act Amendment Act 1988, No. 9 69 47. New s. 60c. The Principal Act is amended by inserting the following section after section 60B:- "60c. Standards of gas. Every gas supplier shall supply gas which is of a quality and at a pressure and in and through fittings for the time being prescribed.". 48. Amendment of s. 61. Penalties . Section 61 of the Principal Act is amended- (a) in subsection (2), by omitting the expression "$1 000" and substituting the words "40 penalty units"; (b) by adding at the end thereof the following subsection:- "(5) Where it is provided in this Act that in respect of an offence against this Act a daily penalty may be imposed it is to be understood that the offence is a continuing offence in respect of which a complaint may be laid, from time to time, alleging the commission of the offence over a period: Provided that an offender shall not be punished more than once in respect of any period.". 49. Amendment of s. 61A. Power of Court to order cause of contravention to be remedied . Section 61A of the Principal Act is amended- (a) in the note appearing in and at the beginning of the section, by omitting the word "Court" and substituting the word " court"; (b) in subsection (2), by omitting the words "fine not exceeding $100" and substituting the words "penalty of 4 penalty units". 50. Amendment of s. 62. Evidentiary provisions . Section 62 of the Principal Act is amended by- (a) omitting paragraph (a) and substituting the following paragraph:- "(a) an averment in the complaint that- (i) any person is the Director General of the Department of Mines, the chief gas examiner, the deputy chief gas examiner or a gas examiner, a member of the governing body of a body corporate or a consumer of gas; or (ii) any place or area named in the complaint is within a franchise area, shall be prima facie evidence of the matter so averred and, in the absence of evidence to the contrary, shall be conclusive evidence thereof"; (b) omitting paragraph (c) and substituting the following paragraph:- "(c) a signature purporting to be that of the Minister, the Director General of the Department of Mines, the chief gas examiner, the deputy chief gas examiner or a gas examiner shall be

70 Gas Act Amendment Act 1988, No. 9 taken to be the signature it purports to be until the contrary is proved.". 51. Amendment of s. 63. Laying of complaint ; service of analyst's certificate . Section 63 of the Principal Act is amended by, in subsection (1), omitting the word "senior" and substituting the words "deputy chief ".