Gas Supply Amendment Act 2008 (NSW)

An Act to amend the Gas Supply Act 1996 with respect to ensuring the continuity of supply of natural gas to customers; and for other purposes.

1Name of Act

This Act is the Gas Supply Amendment Act 2008.

2Commencement

This Act commences on the date of assent to this Act.

3Amendment of Gas Supply Act 1996 No 38

The Gas Supply Act 1996 is amended as set out in Schedule 1.

4Repeal of Act(1)

This Act is repealed on the day following the day on which this Act commences.

(2)

The repeal of this Act does not, because of the operation of section 30 of the Interpretation Act 1987, affect any amendment made by this Act.

Schedule 1Amendments

(Section 3)

[1]Section 2 Commencement

Omit section 2 (2).

[2]Section 3 Objects

Insert after section 3 (1) (b):

(b1)

to facilitate the continuity of supply of natural gas to customers,

[3]Part 2A

Insert “wholesale and” after “gas” in the heading to the Part.

[4]Section 33K Market operations rules

Insert after section 33K (1) (d):

(d1)

the establishment and operation of a wholesale natural gas market scheme, to ensure the continuity of supply of natural gas to customers, that will apply to the owners and operators of natural gas transmission pipelines, shippers of natural gas and authorised reticulators and suppliers,

[5]Section 33K (2A)

Insert after section 33K (2):

(2A)

Rules referred to in subsection (1) (d1) may make provision for or with respect to the following:

• (a)

  interruptions to the supply of natural gas in circumstances specified in the rules,

• (b)

  the functions of the scheme regulator (being the person identified as such by the rules) with respect to ensuring compliance with the rules, including:

  • (i)

    the power to make orders against the owners and operators of natural gas transmission pipelines, shippers of natural gas and authorised reticulators and suppliers (the scheme participants), and

  • (ii)

    the power to impose civil penalties of up to $50,000 on scheme participants for failure to comply with the rules or any order of the scheme regulator,

• (c)

  the costs payable by a scheme participant if the scheme regulator makes an order against the scheme participant or imposes a civil penalty on the scheme participant, and the recovery of any such costs or civil penalty.

[6]Section 33K (5) (c)

Omit “reticulator.”.

Insert instead “reticulator, unless the rule is approved in respect of a matter referred to in subsection (1) (d1), and”.

[7]Section 33K (5) (d)

Insert after section 33K (5) (c):

(d)

the Minister must make available a copy of the rule on the internet site of the Department.

[8]Section 33K (8)

Insert after section 33K (7):

(8)

In this section:

natural gas transmission pipeline means the gas pipes and associated equipment that are used to convey and control the conveyance of natural gas to distribution pipelines and to the premises of customers, but does not include:

• (a)

  any distribution pipeline (other than a pipeline that the regulations declare to be, or to form part of, a natural gas transmission pipeline), or

• (b)

  any gas installation, or

• (c)

  any gas pipe or associated equipment that is wholly situated on land owned by the person who owns or controls the gas pipe or equipment, or

• (d)

  any gas pipe or associated equipment that the regulations declare not to be, or not to form part of, a natural gas transmission pipeline.

shipper of natural gas means a person that purchases services with respect to the transmission of natural gas by way of a natural gas transmission pipeline from the owner or operator of the pipeline, whether or not the gas is transported for the person’s own use.

[9]Section 33L Obligations under rules

Insert after section 33L (4):

(5)

A person may be convicted of an offence under this section even though that person may have been required to pay a civil penalty under market operations rules in respect of the same act or omission.

[10]Section 33LA

Insert after section 33L:

33LACivil liability of scheme operator under section 33K (1) (d1) rules(1)

The scheme operator, or an officer or employee of the scheme operator, does not incur any civil monetary liability for an act or omission in the exercise, or purported exercise, of a function of the scheme operator under the rules unless the act or omission is done or made in bad faith or through negligence.

(2)

The operator of a natural gas transmission pipeline, or an officer or employee of the operator, does not incur any civil monetary liability in respect of a disclosure of information to the scheme operator in compliance with, or in purported compliance with, a requirement under the rules unless the disclosure is made in bad faith or through negligence.

(3)

The civil monetary liability for an act or omission of a kind referred to in subsection (1), or of a disclosure referred to in subsection (2), done or made through negligence may not exceed the maximum amount prescribed by the regulations.

(4)

For the purposes of subsection (3), the regulations may:

• (a)

  prescribe maximum amounts that are limited in their application to persons, events, circumstances, losses or periods specified in the regulations, and

• (b)

  prescribe maximum amounts that vary in their application according to the persons to whom or the events, circumstances, losses or periods to which they are expressed to apply, and

• (c)

  prescribe the manner in which a maximum amount is to be divided amongst claimants.

(5)

The scheme operator may enter into an agreement with a person varying or excluding the operation of a provision of this section (other than subsection (6) (b)) and, to the extent of that agreement, that provision does not apply.

(6)

This section does not apply to:

• (a)

  any liability of an officer or employee of the scheme operator to the scheme operator, or

• (b)

  any liability for death or bodily injury.

(7)

In this section:

civil monetary liability means liability to pay damages or compensation or any other amount in a civil proceeding, but does not include liability to pay a civil penalty under the rules or the costs of proceedings.

rules means the rules referred to in section 33K (1) (d1).

scheme operator means the person identified as the scheme operator by the rules.

[11]Schedule 1 Amendment of other Acts and instruments

Omit “Gas Act 1986” from Schedule 1.7.

Insert instead “Gas Industry Restructuring Act 1986”.

[12]Schedule 2 Savings, transitional and other provisions

Insert at the end of clause 1 (1):

Gas Supply Amendment Act 2008

[13]Schedule 2

Insert after Part 4:

Part 5Provisions consequent on enactment of Gas Supply Amendment Act 200822Publication of market operations rules on internet

Section 33K (5) (d), as inserted by the Gas Supply Amendment Act 2008, does not extend to a rule, or a rule amending or revoking a rule, approved by the Minister before the commencement of that paragraph.

[14]Dictionary

Omit the definition of Department. Insert instead:

Department means the Department of Water and Energy.