Gas Transmission Amendment Regulations (No. 2) 1997 (WA)

PRINT POST APPROVED PP665002100041

WESTERN	6513
AUSTRALIAN

PERTH, THURSDAY, 20 NOVEMBER 1997 No. 207 SPECIAL GOVERNMENT tte

PUBLISHED BY AUTHORITY JOHN A. STRIJK, GOVERNMENT PRINTER AT 3.30 PM

GAS CORPORATION ACT 1994

GAS TRANSMISSION
AMENDMENT REGULATIONS

(No. 2) 1997

20 November 19971 6515

GOVERNMENT GAZETTE, WA

GAS TRANSMISSION AMENDMENT REGULATIONS (No. 2) 1997

Made by the Lieutenant-Governor and deputy of the Governor in Executive

Council.

Citation

1. These regulations may be cited as the Gas Transmission Amendment Regulations (No. 2) 1997.

Principal regulations

2. In these regulations the Gas Transmission Regulations 1994* are referred to as the principal regulations.

[* Published in Gazette 22 December 1994, pp. 6895-7020.	For amendments to 11 November 1997 see 1996 Index to Legislation
of Western Australia, Table 4, pp. 109-110.1

Regulation 3 amended

3.     Regulation 3 of the principal regulations is amended -

(a) in the definition of "capacity" by inserting after "system" the

following -

to receive gas or ";

(b) in the definition of "contracted capacity" by inserting after "outlet

point" the following

94

as reduced or increased (if applicable) from time to time

under these regulations

(c)	in the definition of "force majeure" by deleting "regulation 91" and	substituting the following -
99

regulations 91 and 159 (4)

(d) in the definition of "full-haul capacity" by inserting after "means"

the following

94

,subject to regulation 64B,

(e)	in the definition of "grant of capacity" -
(1) by deleting "Division 4.5" and substituting the following -

44

regulation 86 ";and

6516 GOVERNMENT GAZETTE, WA [20 November 1997

Gas Transmission Amendment Regulations (No. 2) 1997

(ii) by inserting after "deemed grant of capacity" the following

and "grant of T1 capacit", "grant of T2 capacity" and "grant of T3 capacity have the same meaning in relation to Ti capacity, T2 capacity and T3 capacity respectively

(f) in the definition of "notice" by inserting after "communication" the following -

and includes such a notice communicated by means of

facsimile or (if the parties so agree under Division 10.2) by the corporation's electronic bulletin board system

(g)	by deleting the definitions of "additional T3 capacity", "commercially viable", "operationally feasible", "shipper's Ti capacity", "shipper's T2 capacity", "shipper's T3 capacity", "tranche" and "Tranche 3 charge";
(h)	by inserting in the appropriate alphabetical positions the following definitions -

"AT3 capacity" means capacity nominated by or allocated to a shipper under Part 7 in excess of the shipper's total contracted capacity;

"commercially viable" means, in respect of any capacity, service or thing, that the tests set out in regulation 8A are satisfied;
"commissioning grant" means a grant of capacity under

regulation 86B;

"operationally feasible" means operationally feasible in the corporation's reasonable opinion in the circumstances prevailing at the relevant time, including without limitation -

(a)	the configuration and status of the gas
transmission system at the relevant time;

the individual and collective contracted capacities

(b)	and load characteristics of all shippers;
(c)	gas transmission capacity generally; and
(d)	the corporation's relevant entitlements and

obligations under any contract or written law;

"Ti capacity" means contracted capacity which has been the

subject of a grant of capacity to a shipper at an outlet point, on the terms, conditions and prices applicable

under these regulations to a grant of capacity in

Tranche 1;

"T2 capacity" means contracted capacity which has been the

subject of a grant of capacity to a shipper at an outlet point, on the terms, conditions and prices applicable

under these regulations to a grant of capacity in

Tranche 2;

'73 capacity" means contracted capacity which has been the subject of a grant of capacity to a shipper at an outlet point, on the terms, conditions and prices applicable

20 November 19971 GOVERNMENT GAZETTE, WA 6517

Gas Transmission Amendment Regulations (No. 2) 1997

under these regulations to a grant of capacity in
Tranche 3;

"T3 charge" means the charge for T3 capacity or AT3 capacity determined in accordance with regulation 150;

"technically feasible" means technically feasible consistent with the safe and reliable operation of the gas transmission system, in the view of a reasonable and prudent person;
"total contracted capacity", in respect of a shipper,

means -

(a) in relation to inlet points, the sum (across all

inlet points) of the shipper's contracted capacities;

and

(b) in relation to outlet points, the sum (across all contracted capacities; tranches at all outlet points) of the shipper's

"total Ti capacity", in respect of a shipper, means the sum (across all outlet points) of the shipper's Ti capacities for a gas day;

"total T2 capacity", in respect of a shipper, means the sum (across all outlet points) of the shipper's T2 capacities for a gas day;
"total T3 capacity", in respect of a shipper, means the sum (across all outlet points) of the shipper's T3 capacities for a gas day;
"tranche" means, as the context requires

any one or more of Tranche 1, Tranche 2 or

(a) Tranche 3; or

any one or more of Ti capacity, T2 capacity,

(b) T3 capacity or AT3 capacity;

Regulation 8A inserted

4. After regulation 8 of the principal regulations the following regulation is inserted in Part 1 -

Commercial viability

8A. Any capacity, service or thing is commercially viable if in all the

circumstances (subject to regulation 198 (6) if applicable) -

(a) there is a reasonable prospect that the corporation will recover within a reasonable time, from either shippers or

prospective shippers or both, the capital investment required to provide, and the costs of maintaining and providing, that capacity, service or thing, and a reasonable rate of return on that capital investment;

(b) adequate funding to meet that capital investment and those

costs is available to the corporation at commercially

reasonable rates; and

(c) any anticipated increase to shippers' gas transmission prices

resulting from the corporation making that capital investment

6518 GOVERNMENT GAZETTE, WA [20 November 1997

Gas Transmission Amendment Regulations (No. 2) 1997

or incurring those costs is considered by the corporation to be

commercially reasonable.

Regulation 11 amended

5. Regulation 11 (1) of the principal regulations is amended after paragraph (e) by deleting subparagraphs (i) and (ii) and substituting the following paragraphs -

(f) the proposed capacity at each inlet point and in each tranche at

each outlet point; and

(g) the expected load characteristics, including the expected load factor,

peak factor, maximum daily quantity and maximum hourly

quantity.

Regulation 13 amended

6. Regulation 13 (1) of the principal regulations is amended by deleting "of "investment in" and substituting the following -

41

of "capital investment in

Regulation 14 repealed and a regulation substituted

7. Regulation 14 of the principal regulations is repealed and the following

regulation is substituted -

Maintenance schedules

14. (1) The corporation must make available to all shippers reasonable details of any scheduled maintenance, any major works under

regulation 53, and the estimated availability of capacity in Tranche 1,

Tranche 2 and Tranche 3, and must do so at such intervals and in respect of such periods as will keep shippers reasonably informed of those matters.

any information made available under subregulation (1), except in the case (2) No action for damages lies against the corporation in respect of

of a wilful failure to make the information available or a wilful error or

omission in the information made available.

Regulation 15 amended

8. Regulation 15 of the principal regulations is amended -

(a) by inserting before the definition of "gas trader" the following definition -

"corporate officer" means any director, the chief executive officer, and any other servant or agent of the corporation, who by virtue of his or her position in the corporation cannot properly discharge his or her duties without -

being partly engaged in both the gas

(a) transmission business and the corporation's other

business; and

(b) receiving inside information;

20 November 1997] 6519

GOVERNMENT GAZETTE, WA

Gas Transmission Amendment Regulations (No. 2) 1997

(b)	by deleting the definition of "senior officer"; and
(c)	in the definitions of "trading staff" and "transmission staff" by deleting "senior" and substituting the following -

41 corporate ".

Regulation 16 amended

9. (1) Regulation 16 (1) of the principal regulations is amended by inserting after "transmission staff" the following -

or by any corporate officer ".

"senior" and substituting the following -	(2) Regulation 16 (2) (d) of the principal regulations is amended by deleting
44
corporate ".

Regulation 17 amended

10. Regulation 17 of the principal regulations is amended by inserting after "transmission staff" the following -

or any corporate officer ".

Regulation 21 amended

11.      Regulation 21 (2) of the principal regulations is amended -

(a) in paragraph (c) by deleting "shipper;" and substituting the following -

44

shipper, including without limitation -

(i)      the terms and conditions of any capacity service under regulation 61A; and

(ii)     as between shippers or prospective shippers under a commissioning grant, the terms and conditions of a commissioning grant;

(b) by deleting "and" after paragraph (f);
(c) by deleting the full stop at the end of paragraph (g) and substituting	the following -
44

and ";and

(d) by inserting after paragraph (g) the following paragraph -

"

(h) the terms and conditions of any agreement under regulation 184A.

Regulation 22 amended

12.      Regulation 22 of the principal regulations is amended -

(a)	by deleting "and" after paragraph (g);
(b)	by deleting the full stop at the end of paragraph (h) and substituting a semicolon; and

6520 GOVERNMENT GAZETTE, WA [20 November 1997

Gas Transmission Amendment Regulations (No. 2) 1997

(c) by inserting after paragraph (h) the following paragraphs

(i)       of shippers' capacities under regulation 55A or 64A, or differences in the order of curtailment or interruption

by agreement between the corporation and a shipper under regulation 47 (2) or 50 (4) or Schedule 2;
(j)	applicable to shippers with contracted capacity at an differences in the terms, conditions and prices
outlet point which arise from the operation of regulations 64B and 86D;
(k)	curtailments or interruptions under regulation 170A (2); and

(1)       the operation of any agreement under regulation 184A.

Regulation 23 amended

13.     After regulation 23 (c) of the principal regulations the following paragraph

is inserted -

(ca) the fact that one person is a shipper or prospective shipper under a

prospective shipper under a grant of capacity which is not a
commissioning grant;

commissioning grant, and the other person is a shipper or

Regulation 33 amended

14. (1) Regulation 33 (1) of the principal regulations is amended by deleting "The" and substituting the following - Subject to subregulation (5), the ". (2) After regulation 33 (2) of the principal regulations the following subregulations are inserted -

that it proposes - (3) The corporation may at any time give notice to the committee

(a)	to undertake an enhancement to or expansion of the gas transmission system; or
(b)	to undertake an enhancement to or expansion of the gas transmission system in a manner which materially departs
from the manner previously set out in a notice under paragraph (a).

would reasonably be required by the committee for the purpose of deciding (4) A notice under subregulation (3) must include all details which whether it will, under regulation 31 (0, require the corporation to appoint an expert in relation to any matter connected with or arising out of the enhancement, expansion or material departure the subject of the notice. corporation to appoint an expert in relation to any matter connected with (5) Despite regulation 31 (f), the committee may not require the or arising out of any -

(a) enhancement or expansion, the subject of notice under subregulation (3) (a); or

20 November 19971 GOVERNMENT GAZETTE, WA 6521

Gas Transmission Amendment Regulations (No. 2) 1997

(b) material departure, the subject of a notice under

at any time later than 20 working days after the corporation gives that
notice.

subregulation (3) (b),

communicated to the Coordinator is by force of this regulation to be taken (6) A notice addressed to the Chairperson of the committee and to have been a notice to the committee.

Regulation 34 amended

15.      Regulation 34 of the principal regulations is amended

by inserting after the regulation designation "34." the subregulation

(a) designation "(1)"; and

(b) by inserting the following subregulation -

reviewing a decision of the corporation, the expert in (2) If the expert, as part of the expert review, is reviewing that decision may only have regard to -

(a) corporation at the time of the relevant decision, the facts and circumstances known by the

together with any facts or circumstances which ought to have been known by the corporation acting as a reasonable and prudent person at the time of the relevant decision; and

(b)	without limiting the generality of paragraph (a), despite any subsequent repeal, substitution or
amendment of these regulations, the regulations in force at the time of the relevant decision.

Regulation 42 amended

16. Regulation 42 of the principal regulations is amended by inserting after "shipper's capacity" the following -

or to refuse to accept gas from or deliver gas to a shipper

Regulation 43 repealed and a regulation substituted

17. Regulation 43 of the principal regulations is repealed and the following regulation is substituted -

44

Each tranche to be treated separately

43. If a shipper has been granted more than one of Ti capacity, T2

capacity or T3 capacity, then for the purposes of this Part that shipper is
to be treated, in respect of -

(a) the grant of Ti capacity, as though the shipper has not

received any grant of T2 capacity or T3 capacity;

(b) the grant of T2 capacity, as though the shipper has not

received any grant of Ti capacity or T3 capacity; and

(c) the grant of T3 capacity, as though the shipper has not received any grant of Ti capacity or T2 capacity.

6522 GOVERNMENT GAZETTE, WA [20 November 1997

Gas Transmission Amendment Regulations (No. 2) 1997

Regulation 44 amended

18.      Regulation 44 of the principal regulations is amended -

(a) by deleting "Tranche 1" and substituting the following

44 Ti capacity "; and

by deleting "Tranche 2 and Tranche 3" and substituting the

(b) following -

44

T2 capacity, T3 capacity and AT3 capacity ".

Regulation 45 amended

19. Regulation 45 of the principal regulations is amended by deleting "is a reference to full-haul capacity." and substituting the following -

"

or to Ti capacity, T2 capacity, T3 capacity or AT3 capacity, is a reference to full-haul capacity, unless the reference is expressly to part-haul capacity or back-haul capacity.

Regulation 46 amended

20.      Regulation 46 of the principal regulations is amended -

(a) by deleting "capacity in Tranche i or Tranche 2" and substituting

the following -

it

Ti capacity or 72 capacity "; and

(b) by deleting "capacity in Tranche 3" and substituting the following -

it

T3 capacity ".

Regulation 47 amended

21. (1) Regulation 47 (1) of the principal regulations is repealed and the following subregulation is substituted -

"

transmission system, use its best endeavours to minimise any curtailment (1) The corporation must, in its operation and maintenance of the gas

of Ti capacity.
(2) Regulation 47 (2) of the principal regulations is amended -

(a) by deleting "and 55" and substituting the following -

55 and 55A ";

(b)	in paragraph (a) by deleting "shippers' "in the second place where it occurs;
(c)	by deleting the full stop at the end of paragraph (b) and substituting a comma; and
(d)	by inserting after paragraph (b) the following -

41

unless the relevant shipper agrees otherwise. ".

20 November 19971 GOVERNMENT GAZETTE, WA 6523

Gas Transmission Amendment Regulations (No. 2) 1997

(3) After regulation 47 (2) the following subregulation is inserted

(3) Where a shipper agrees under subregulation (2) to a curtailment of its Ti capacity or an interruption of its T2 capacity, the curtailment or interruption is not to be included in any calculation of the accumulated duration of is or partial curtailments or interruptions for that shipper under regulation 116 (3).

Regulation 48 repealed and a regulation substituted

22. Regulation 48 of the principal regulations is repealed and the following regulation is substituted -

"

Ti capacity and 12 capacity are take-or-pay

48. A shipper's obligation to pay the capacity reservation charge under

a grant of Ti capacity or T2 capacity arises whether or not the shipper
makes use of any capacity under the grant.

Regulation 49 amended

23.      (i) Regulation 49 (i) of the principal regulations is amended

(a) by deleting "daily nominations for Tranche i" and substituting the following -

" total Ti capacities "; and

(b) by inserting after "shippers"' in the second place where it occurs the following -

" total "

(2) Regulation 49 (2) of the principal regulations is repealed and the following subregulation is substituted -

41

(2) To the extent that a shipper's total Ti capacity is wholly or

partially curtailed under subregulation (i) or by agreement under regulation 47 (2) or Schedule 2, the shipper is entitled to a proportionate refund of the capacity reservation charge in respect of that capacity.

(3) Regulation 49 (3) of the principal regulations is amended -

(a) by deleting "regulation 55" and substituting the following -

regulations 55 and 55A "; and

(b) by inserting after "shippcis" the following - " total "

(4) Regulation 49 (4) of the principal regulations is amended by inserting after "shipper's" in the 3 places where it occurs the following -

44

total ".

6524 GOVERNMENT GAZETTE, WA [20 November 1997

Gas Transmission Amendment Regulations (No. 2) 1997

Regulation 50 amended

24.     (1) Regulation 50 (1) of the principal regulations is amended -

by deleting "daily nominations for Tranche 1 and Tranche 2" and

(a) substituting the following -

it total Ti capacities and total T2 capacities "; and

(b) by deleting "a shipper's T2 capacity" and substituting the

following -

shippers' total T2 capacities ".

following subregulation is substituted -	(2) Regulation 50 (2) of the principal regulations is repealed and the
it
partially interrupted under subregulation (1) or by agreement under (2) To the extent that a shipper's total T2 capacity is wholly or
subregulation (4) or regulation 47 (2), the shipper is entitled to a proportionate refund of the capacity reservation charge in respect of that
capacity. (3) Regulation 50 (3) of the principal regulations is amended -

(a) by deleting "regulation 55" and substituting the following -

subregulation (4) and regulations 55 and 55A "; and

by inserting after "shipper's" in the 3 places where it occurs the

(b) following -

total ".

subregulation is inserted -	(4) After regulation 50 (3) of the principal regulations the following
M
may from time to time agree with the corporation that the shipper's total (4) A shipper, in its discretion as a reasonable and prudent person,
T2 capacity is to be interrupted either wholly or to a greater extent than would otherwise be the case under subregulation (3).
Regulation 51 amended

25.     (1) Regulation Si (i) of the principal regulations is amended -

by inserting after "shipper's" in both places where it occurs the

(a) following -

it total ";and

(b)	In paragraph (b)
(i) by deleting "Tranche 3" and substituting the following -

it T3 capacity ";

(ii)     by deleting "Tranche 1" and substituting the following -

it Ti capacity ";and

(iii)    by deleting "Tranche 2" and substituting the following -

it T2 capacity ".

20 November 19971 GOVERNMENT GAZETTE, WA 6525

Gas Transmission Amendment Regulations (No. 2) 1997

(2) Regulation 51 (2) of the principal regulations is amended

(a) by inserting after "shipper's" the following -

44 total ";

(b) by inserting after "capacity is" the following -

wholly or partially "; and

(c) by deleting "Tranche 3" and substituting the following " T3 "

Regulation 51A inserted

26.      After regulation 51 of the principal regulations the following regulation is

inserted -

"

Apportionment of shipper's curtailments or interruptions

51A. If a shipper has contracted capacity at more than one inlet point or more than one outlet point, the corporation may as a reasonable and prudent person apportion any -

(a)	curtailment or interruption of the shipper's total contracted capacity at the inlet points;
(b)	curtailment of the shipper's total Ti capacity;
(c)	interruption of the shipper's total T2 capacity; or
(d)	interruption of the shipper's total T3 capacity,

across those inlet points or outlet points, and in so doing the corporation is to the extent technically feasible and if circumstances reasonably permit -

(e)	to make reasonable endeavours to consult with the shipper
concerning that apportionment; and
(f)	to have regard as a reasonable and prudent person to any apportionment mechanism specified in the transmission contract or otherwise agreed between the parties or requested by the shipper.

Regulation 52 amended

27.      Regulation 52 of the principal regulations is amended

(a) by deleting "capacity in Tranche 3" and substituting the following -

T3 capacity ";and

(b) by inserting after "are to be" the following -

those ".

6526 GOVERNMENT GAZETTE, WA [20 November 1997

Gas Transmission Amendment Regulations (No. 2) 1997

Regulation 55 amended

28.      Regulation 55 of the principal regulations is amended - (a) in paragraph (b) -

(i)       by deleting "to curtail or interrupt a shipper's capacity" and substituting the following -

"

to refuse to accept gas from or deliver gas to a shipper (or, if applicable, to curtail or interrupt a shipper's capacity)

and

(ii)      by deleting "a shipper" in the second place where it occurs and substituting the following -

the shipper "

(b) by inserting after "the corporation must" the following -

14

wholly refuse to accept gas from or deliver gas to the shipper,

and must

and

(c) by deleting "curtailment or interruption." and substituting the

following -
ii curtailment, interruption or refusal.

Regulation 55A inserted

29.      After regulation 55 of the principal regulations the following regulation is

inserted -

Exclusion of shipper's capacity from apportionment of

curtailments or interruptions in certain circumstances

55A. If and to the extent that -

(a)	a particular shipper's capacity would, but for this regulation, be included in an apportionment of curtailments or interruptions; and
(b)	in the corporation's view as a reasonable and prudent person the inclusion of the capacity referred to in paragraph (a) would for any reason (including without limitation the location of the particular shipper's inlet point or inlet points or outlet point or outlet points) be unlikely to wholly or partially reduce the need to curtail or interrupt one or more other shippers' capacities,

the corporation may exclude the capacity referred to in paragraph (a) from the apportionment of curtailments or interruptions, despite what would otherwise be the corporation's obligation to include that capacity in that apportionment.

20 November 19971 GOVERNMENT GAZETTE, WA 6527

Gas Transmission Amendment Regulations (No. 2) 1997

Regulation 57 repealed and a regulation substituted

30. Regulation 57 of the principal regulations is repealed and the following regulation is substituted

Mechanism for giving effect to a curtailment or interruption or refusal to accept or deliver gas

57. (1) Whenever the corporation is empowered under these regulations or a transmission contract -

(a)	to curtail or interrupt a shipper's capacity; or
(b)	to refuse to accept gas from or deliver gas to a shipper,

it may give effect to that curtailment, interruption or refusal -

(c)

physically; or

(d)

by notice to the shipper (in accordance with regulation 250) specifying when the curtailment, interruption or refusal is to commence, and -

(i)	for a curtailment or interruption, the amount of capacity that is to be curtailed or interrupted; or
(ii)	for a refusal, the maximum amount (if any) of gas which will be received from, or delivered to, the shipper.

(2) Wherever practicable, the corporation is to give effect to a instead of, or prior to, doing so physically under subregulation (1) (c).	curtailment, interruption or refusal by notice under subregulation (1) (d)
contracted capacity at more than one inlet point or in a tranche at more (3) Subject to regulations 51A, 60 (6) and 60A, if a shipper has apportionment of any curtailment, interruption or refusal across those than one outlet point, a notice under subregulation (1) (d) may specify the
be). inlet points or in the tranche across those outlet points (as the case may (4) A notice under subregulation (1) (d) -

(a)	takes effect from the time specified in the notice;
(b)	may be expressed to continue indefinitely or for a specified time; and
(c)	may revoke, substitute or amend a previous notice.

in a notice under subregulation (1) (d) an end time for a curtailment, interruption or refusal, give notice to a shipper (in accordance with	(5) The corporation may at any time, whether or not it has specified
immediately or from any time in the future.	regulation 250) terminating a curtailment, interruption or refusal either
constitutes a variation of the shipper's transmission contract reducing the (6) A notice under subregulation (1) (d) (i) by force of this regulation
shipper's contracted capacities to the extent, and in accordance with the apportionment (if any), specified in the notice.
shipper's next nomination under Division 7.2 or renomination under (7) If a notice under subregulation (1) (d) (i) takes effect before a
Division 7.3, the shipper's daily nominations are by force of this regulation to be taken to be reduced to the same extent, and in accordance with the same apportionment (if any), as is specified in the notice for the shipper's contracted capacities.

6528 GOVERNMENT GAZETTE, WA [20 November 1997

Gas Transmission Amendment Regulations (No. 2) 1997

(8) A shipper may not -

nominate under Division 7.2 or renominate under Division 7.3

(a)	for capacity; or
(b)	deliver gas to or receive gas from the corporation,

in excess of whichever is the lower of -

(c) its reduced shipper's contracted capacities under

subregulation (6) or its reduced nomination under subregulation (7), as applicable; or

(d) (ii) as the maximum quantity which the corporation will receive from, or deliver to, the shipper. the quantity specified in a notice under subregulation (1) (d)

may in future refuse to allocate to that shipper under Part 7 any capacity (9) If a shipper fails to comply with subregulation (8), the corporation in excess of the shipper's contracted capacity.

Regulation 58 amended

31.

after "shipper's" in the 3 places where it occurs the following - (1) Regulation 58 (1) of the principal regulations is amended by inserting

it total ".

subregulation is inserted -	(2) After regulation 58 (1) of the principal regulations the following
it
shipper may as a reasonable and prudent person specify how the reduction (la) If a shipper has T2 capacity at more than one outlet point, the
under this regulation is to be apportioned across those outlet points, and if the shipper does not make such specification within 10 working days of a written request by the corporation, the corporation is as a reasonable and prudent person to make that apportionment.

"subregulation (1)" and substituting the following -	(3) Regulation 58 (2) of the principal regulations is amended by deleting
this regulation ". (4) Regulation 58 (3) of the principal regulations is amended -

(a) by inserting after "shipper's" the following -

total ";

(b) by deleting "subregulation (1)" and substituting the following -

it this regulation "; and

(c) by deleting "capacity in Tranche 1 or Tranche 3" and substituting

the following

94

Ti capacity or T3 capacity ".

it (5) Regulation 58 (4) of the principal regulations is amended by deleting in Tranche 2" and substituting the following -

it T2 capacity ".

20 November 1997] GOVERNMENT GAZETTE, WA 6529

Gas Transmission Amendment Regulations (No. 2) 1997

following subreguiations are substituted -	(6) Regulation 58 (5) of the principal regulations is repealed and the
enhancement to or expansion of the gas transmission system, give notice (5) The corporation must, a reasonable time before any relevant to the shipper (in this regulation called "the offer") offering to grant to the shipper, at each outlet point at which the shipper's T2 capacity is to
replacement capacity") equal to the amount by which the shipper's T2 capacity is to be reduced at that outlet point. be reduced, an amount of capacity (in this regulation called "the

(5a) The offer must provide that -

the grant of the replacement capacity is to commence at the

(a) same time as the shipper's T2 capacity is reduced; and

the replacement capacity may, at the shipper's election,

(b) comprise either Ti capacity, T3 capacity, or a combination of

both Ti capacity and T3 capacity.

all cases the shipper's aggregate amount of Ti capacity and T3 capacity (5b) The shipper may by notice in writing accept the offer so that in

so granted at an outlet point is equal to or less than the amount by which

the shipper's T2 capacity at the outlet point is to be reduced.

(5c) If the shipper does not accept the offer within 30 days of the and the enhancement or expansion may proceed and the shipper's T2	offer it is by force of this regulation to be taken to have rejected the offer
capacity may be reduced under this regulation. (7) Regulation 58 (6) of the principal regulations is amended -

(a) by inserting after "any capacity" the following -

44

at an outlet point "

(b) by inserting after "T2 capacity" the following -

44

at the outlet point "; and

(c)	by deleting "subregulation (i)" and substituting the following -
44

this regulation

Regulation 60 amended

32.      Regulation 60 of the principal regulations is amended -

by inserting after the regulation designation "60." the subregulation

(a) designation "(1)";

(b) by inserting after "the corporation may" the following -

(without prior notice to the shipper) "; and

(c) by inserting the following subregulations -

subregulation (1), the corporation must -.

(2) Without affecting the corporation's rights under

(a) use its reasonable endeavours to give a shipper

circumstances of any impending refusal to accept
gas; and

advance notice which is reasonable in the

6530 GOVERNMENT GAZETTE, WA 120 November 1997

Gas Transmission Amendment Regulations (No. 2) 1997

(b) if it does notgive a shipper advance notice under	corporation must notify the shipper of that paragraph (a) of a refusal to accept gas, the
refusal as soon as practicable after that refusal.

shipper (by inclusion in a notice under subregulation (2) or (3) The corporation must, where practicable, notify a otherwise) of the reasons for a refusal to accept gas.

curtailment or interruption for the purposes of these (4) A refusal to accept gas under this regulation is not a regulations.

thing caused by or arising out of any refusal to accept gas (5) The corporation is not liable for any act, matter or under -

(a)	subregulation (1) (a) to (d), in any event; and
(b)	subregulation (1) (e) to (I), if the corporation has taken all steps which would be expected of a

reasonable and prudent person to avoid the need for, or failing such avoidance to minimise the magnitude and duration of, the refusal to accept gas.

inlet point, the corporation may as a reasonable and prudent (6) If a shipper has contracted capacity at more than one

person apportion any refusals to accept gas across those inlet points, and in so doing the corporation is to the extent technically feasible and if circumstances reasonably permit -

(a) to make reasonable endeavours to consult with

the shipper concerning that apportionment; and

(b) to have regard as a reasonable and prudent person to any apportionment mechanism specified

in the transmission contract or otherwise agreed between the parties or requested by the shipper.

Regulations 60A and 60B inserted

33.      After regulation 60 of the principal regulations the following regulations

are inserted -

Refusal to deliver gas

60A. Whenever the corporation is empowered or required under the Act, 178, 184 (3), 184A (5), 185 (2), 186 (2), 189 and 232 and clause 2 of

these regulations (namely regulations 42, 55, 57 (5), 60B, 86A (8), 111,

Schedule 2) or a transmission contract to refuse to deliver gas to a shipper at an outlet point, the provisions of regulation 60 (2) to (6) apply with

appropriate modifications to that refusal to deliver.

Limits on gas deliveries at outlet points

60B. Subject to any provision of a shipper's transmission contract (or	any other agreement between the parties) to the contrary, the corporation may refuse to deliver gas to the shipper at an outlet point, if delivering
that gas would cause the total quantity (calculated across all outlet points)	of gas delivered to the shipper in the gas day to exceed the shipper's total

contracted capacity for the gas day.

20 November 19971 GOVERNMENT GAZETTE, WA 6531

Gas Transmission Amendment Regulations (No. 2) 1997

Regulation 61A inserted

34. After regulation 61 of the principal regulations the following regulation is inserted in Division 3.3

Miscellaneous capacity services

61A. Subject to these regulations and without limiting the generality of	regulation 61, the corporation may, on whatever terms and conditions
any shipper to provide the shipper one or more further capacity services, (including, subject to regulation 155, as to price) it thinks fit, contract with
including without limitation a service under which the corporation will make available to the shipper capacity for the quantity of gas taken by the shipper in excess of its total contracted capacity or in excess of the sum of its shipper's daily nominations for a gas day.

Regulation 62 amended

35. Regulation 62 (2) of the principal regulations is amended by deleting "operationally" and substituting the following -

technically

Regulation 63 amended

36. (1) Regulation 63 (1) of the principal regulations is amended by deleting "without limitation the extent to which these regulations are to apply (with or without any modifications)." and substituting the following -

without limitation -

(a)	without modifications); and	the extent to which these regulations are to apply (with or
(b)	the curtailment plan or plans (if any) and interruption plan or plans (if any) which is or are to apply to all or any part or parts of that capacity.

"operationally" and substituting the following -	(2) Regulation 63 (2) of the principal regulations is amended by deleting
technically

Regulation 64 amended

37.      Regulation 64 of the principal regulations is amended -

(a) by inserting after "63," the following -

it a ";and

(b) by inserting after "only" the following -

unless the reference is expressly to part-haul capacity or

back-haul capacity

6532 GOVERNMENT GAZETTE, WA [20 November 1997

Gas Transmission Amendment Regulations (No. 2) 1997

Regulations 64A and 64B inserted

38. After regulation 64 of the principal regulations the following regulations are inserted in Division 3.4

Apportionment of curtailments and interruptions between full-haul, part-haul and back-haul capacities

64A. (1) Subject to subregulation (2), the corporation may in its	discretion as a reasonable and prudent person apportion curtailments or
interruptions between all or any one or more of -

(a)	full-haul capacity;
(b)	part-haul capacity; and
(c)	back-haul capacity.

corporation must give priority to preserving the gas transmission system's (2) In exercising its discretion under subregulation (1), the capacity to transport gas from Dampier to points south of C59.

(3) Subject to -

(a)	regulations 55 and 55A;
(b)	any agreement between the corporation and a shipper under regulation 62; and
(c)	any prescriptions under regulation 63,

the apportionment of curtailments or interruptions within each of part-haul capacity and back-haul capacity is to lie in the corporation's discretion as a reasonable and prudent person, and no priority in respect of curtailments or interruptions is to attach to a shipper's capacity solely by reason of the date on which that capacity was granted.

corporation as a reasonable and prudent person may - (4) Without limiting the generality of subregulation (3), the

(a)	subdivide either or both of part-haul capacity and back-haul capacity, for the purposes of apportioning curtailments or interruptions, into 2 or more distance-based segments (for	example, without limiting the generality of this paragraph,	the subdivision may represent the main pipeline as being
divided into a number of segments, with each segment bounded at each end by a compressor station; or it may represent the main pipeline as being divided into 2 segments separated by Compressor Station 1, with laterals forming other segments); and
(b)	apportion curtailments or interruptions between all or any
one or more of those segments.

Use of full-haul capacity upstream of CS9

64B. A relocation of capacity under regulation 86D may, if the

corporation and the shipper so agree under subregulation (5) of that
regulation, result in full-haul capacity being relocated to an outlet point

upstream of CS9 but any capacity so relocated is to -

(a)	capacity; and remain on the same terms and conditions as full-haul
(b)	be treated under these regulations and all transmission contracts as though it was full-haul capacity.

20 November 19971 GOVERNMENT GAZETTE, WA 6533

Gas Transmission Amendment Regulations (No. 2) 1997

Regulation 65 amended

39. Reu1ation 65 of the principal regulations is amended by inserting after the definition of "application" the fbllowing definition

it

"conditional grant" means a grant of capacity subject to a condition precedent or conditions precedent under regulation 86A;

Regulation 69 amended

40. Regulation 69 (1) (a) of the principal regulations is amended by inserting after "on the" the following -

sixth working

Regulation 70 amended

41.     (1) Regulation 70 (2) of the principal regulations is amended -

(a) by deleting paragraph (f) and substituting the following paragraph -

M

(0	tables setting out -
(i) for each proposed inlet point and for each gas quality, temperature and pressure for the gas proposed transmission outlet point (if any), the

the applicant proposes to deliver to the corporation at the inlet point and receive from the corporation at the outlet point; and

(ii)     for each proposed inlet point and for each proposed outlet point whether or not it is a transmission outlet point, such information as the corporation may reasonably from time to time

require regarding the applicant's proposed load

maximum daily quantity, maximum hourly characteristics (including without limitation the

quantity, peak factor and load factor) at the inlet point or outlet point;

(b) in paragraph (h) by inserting after "applicant" the following -

"

or, if the applicant is a joint venture, of each joint venture by deleting the "and" after paragraph (j); participant

(c)

(d) in paragraph (ja) by deleting "the information required under that	regulation" and substituting the following -
it

or requests a conditional grant under regulation 86A, the

information required under the relevant regulation

(e) by inserting "and" after paragraph (ja); and

6534 GOVERNMENT GAZETTE, WA [20 November 1997

Gas Transmission Amendment Regulations (No. 2) 1997

(f) by deleting paragraph (k) and substituting the following

paragraph -

ic

(k) the proposed terms and conditions of the grant including without limitation -

(i)      which of these regulations (in addition to essential terms, in the case of an application for full-haul capacity) are to be included in the terms and conditions of the grant; and

(ii)      if the applicant is a joint venture, the applicant's proposal for terms and conditions of the grant under regulation 91B.

After regulation 70 (2) of the principal regulations the following subregulation is inserted -

(2)

"

(2a) If the applicant is a joint venture, the requirements of subregulation (2) (a) and (b) must be complied with in respect of each joint venture participant.

Regulation 70 (4) of the principal regulations is repealed and the following subregulation is substituted -

(3)

When an application contains estimates or forecasts of any information required by subregulation (2) -

(4)

(a)	the corporation may treat that estimated or forecast information as factual information; and
(b)	the application is a warranty by the applicant to the corporation that each such estimate or forecast is the applicant's best as a reasonable and prudent person.

Regulation 71 amended

42.      Regulation 71 (2) of the principal regulations is amended -

(a) by deleting "either" and substituting the following -

41

relocating capacity under regulation 86D, "; and

(b) by deleting "or both,".

Regulation 71A inserted

43.      After regulation 71 of the principal regulations the following regulation is

inserted -

"

Flexible start date and end date

71A. (1) The corporation and a shipper may agree to include in a transmission contract a mechanism providing flexibility for the transmission contract's start date or end date, or both.

(2) A mechanism referred to in subregulation (1) must (subject to
regulation 86 (6) and (7)) specify a fixed start date and a fixed end date
and a procedure by which either or both of those dates may be varied, and

20 November 19971 GOVERNMENT GAZETTE, WA 6535

Gas Transmission Amendment Regulations (No. 2) 1997

by force of this regulation the first come first served principle set out in regulation 76 applies (with appropriate modifications) to a use of that procedure as if the use were an application.

The provisions of this regulation apply (with appropriate during the term of a transmission contract on which any contracted	modifications) to a mechanism providing flexibility with respect to a date
capacity is to start, end or change.

(3)

Regulation 77 amended

44. Regulation 77 of the principal regulations is amended -

(a) in paragraph (a) (ii) by deleting "capacity in either or both of Tranche 1 and Tranche 2" and substituting the following -

Ti capacity or T2 capacity or both ";

(b)	in paragraph (c) by deleting "inlet station," in both places where it	occurs;
(c)	by deleting the "and" after paragraph (g);
(d)	substituting a semicolon; and by deleting the full stop at the end of paragraph (h) and
(e)	by inserting after paragraph (h) the following paragraphs -

(i)       that the grant of capacity can be accommodated having

regard to the load characteristics set out in the

application; and

that the corporation and the applicant have reached

(j) agreement concerning any terms -

(i) proposed by the applicant in the application (including without limitation the number and duration of any options to extend the

transmission contract);

(ii)     provided by these regulations to be agreed

between the applicant and the corporation; or

(iii)    requested by the corporation under regulation 83.

Regulation 78 amended

45. (1) Regulation 78 (1) and (4) are each amended by deleting "capacity in Tranche 1" in the first place where it occurs and substituting the following -

94 Ti capacity ".

Regulation 78 (2) of the principal regulations is amended by deleting

"capacity in Tranche 2" in the first place where it occurs and substituting the
following -

(2)

44 T2 capacity ".

Regulation 78 (3) and (5) are each amended by deleting "capacity in Tranche 2" and substituting the following -

(3)

44 T2 capacity ".

"capacity in Tranche 3" and substituting the following - (4) Regulation 78 (6) of the principal regulations is amended by deleting

94 T3 capacity ".

6536 GOVERNMENT GAZEVI'E, WA [20 November 1997

Gas Transmission Amendment Regulations (No. 2) 1997

following paragraph is substituted -	(5) Regulation 78 (7) (b) of the principal regulations is deleted and the
(b) there being a reasonable prospect that the corporation will recover of either or both of part-haul capacity or back-haul capacity, within a reasonable time and on a commercially reasonable basis (having regard to the impact of such recovery on prices payable by those from either or both of shippers or prospective shippers under grants

shippers or prospective shippers), the costs and capital investment	required to make the grant or provide the capacity, and a
reasonable rate of return on that capital investment,

Regulation 79 amended

46. After regulation 79 (2) of the principal regulations the following subregulation is inserted -

44

any requests to relocate capacity under regulation 86D, which have regard to any uses of a procedure referred to in regulation 71A (2), and to	(3) For the purposes of subregulation (1), the corporation must have
received a higher priority (under regulation 76 as read with regulation	71A (2) or 86D (4), as the case may be) than the applicant's application.

Regulation 83 amended

47.      Regulation 83 (1) of the principal regulations is amended -

(a) by inserting after "(including" the following -

44

at the corporation's request or "; and

(b) by inserting after "good faith" the following -

with a view to agreeing

Regulations 86A and 86B and Division 4.6 inserted

48. After regulation 86 of the principal regulations the following regulations and Division are inserted -

Conditional grant
86A.	(1) An applicant may request a conditional grant under this

regulation.

(2) A request for a conditional grant -

(a)	must be accompanied by or contained in the application; and
(b)	concerning any condition precedent as the corporation may must provide or be accompanied by such information
reasonably require to assess the nature and effect of the condition precedent.

grant, make a conditional grant to the applicant, but the corporation is not (3) The corporation may, if it receives a request for a conditional

to make the conditional grant if it would not under this Part have made an equivalent unconditional grant of capacity to the applicant in response to the application.

(4) A conditional grant -

(a) must specify the condition precedent or conditions precedent applicable to the grant of capacity;

20 November 19971 GOVERNMENT GAZETTE, WA 6537

Gas Transmission Amendment Regulations (No. 2) 1997

(b)	is a grant of capacity under these regulations, subject only to the recipient of the conditional grant providing evidence to the corporation's satisfaction that the condition precedent or all conditions precedent have been met; and
(c)	conditionalgrant must satisfy the corporation under must specify a time before which the recipient of the
paragraph (b), which is not to be more than 3 months after the date of the conditional grant.

(5) If, within the time limit specified under subregulation (4) (c), the corporation is satisfied that the condition precedent or conditions precedent have been met, it must give written notice to the recipient of the conditional grant that the grant of capacity is unconditional.

(6) If the corporation gives written notice under subregulation (5) to
the recipient of a conditional grant, the conditional grant is an
unconditional grant of capacity from the time the written notice is given.

(7) If the recipient of the conditional grant fails to satisfy the corporation under subregulation (4) within the time limit specified under subregulation (4) (c), or gives written notice to the corporation that any condition precedent referred to in subregulation (4) (a) will not be satisfied, then by force of this regulation the conditional grant is of no further effect.

(8) Until a written notice under subregulation (5) is given in respect of a conditional grant -

(a)	the recipient of the conditional grant has no entitlement under the conditional grant to deliver gas to or receive gas from the corporation; and
(b)	the corporation is not obliged to undertake any enhancement to or expansion of the gas transmission system for the purposes of enabling the recipient of the conditional grant to deliver gas to or receive gas from the corporation under the conditional grant.

(9) Subject to subregulation (10), a request for a conditional grant is to be assessed having regard to the priority of the application referred to in subregulation (2) (a).

(10) If, in the corporation's opinion, requests for a conditional grant relate to a particular contract, project, development or works which is the

subject of an invitation to tender, those requests are to be assessed as if

each of the applications referred to in subregulation (2) (a) had the same

priority as the application which has the highest priority.

Commissioning grant

86B. (1) The corporation may in its discretion as a reasonable and prudent person make a grant of capacity for commissioning or testing purposes.

A commissioning grant must be expressly identified as such by the instrument constituting the written grant.

(2)

For the purposes of a commissioning grant, regulation 90 is by force of this regulation to be taken not to specify any provision of these regulations as an essential term or condition for the purposes of clause 2 (4) of Schedule 5 to the Act.

(3)

6538 GOVERNMENT GAZETTE, WA [20 November 1997

Gas Transmission Amendment Regulations (No. 2) 1997

Division 4.6 - Inlet and outlet point flexibility

Interpretation

86C. (1) In this Division -

"lengthened front-haul" means, in relation to full-haul capacity or part-haul capacity, that the new inlet point is located upstream of the old inlet point, or that the new outlet point is located downstream of the old outlet point, or both;

"new inlet point" means the inlet point to which the shipper proposes to relocate contracted capacity;
"new outlet point" means the outlet point to which the shipper proposes to relocate contracted capacity;
"old inlet point" means the inlet point from which the shipper
proposes to relocate contracted capacity, being an inlet point
a result of a variation under regulation 86D (5) or (10)); specified in the shipper's transmission contract (including as

"old outlet point" means the outlet point from which the shipper proposes to relocate contracted capacity, being either an outlet point specified in the shipper's transmission contract (including as a result of a variation under regulation 86D (5) or (10));

"shortened back-haul" means, in relation to back-haul capacity, that the new inlet point is located upstream of the old inlet point, or the new outlet point is located downstream of the old outlet point, or both;
"total physical capacity" means the total physical gas throughput capacity of an inlet point or an outlet point, as the case may be, in the corporation's opinion as a reasonable and prudent person.

(2) For the purposes of the definitions of "lengthened front-haul" and "shortened back-haul" in subregulation (1) the terms "downstream" and
"upstream" are to be construed having regard to the flow of gas through

the gas transmission system as a whole.

Relocation of capacity

86D. (1) A shipper may bynotice in writing to the corporation request a relocation of all or any part of its contracted capacity at an old inlet point to a new inlet point, or at an old outlet point to a new outlet point.

(2) No relocation of capacity under this regulation may be made if the relocation -

(a) would cause the sum (after the relocation) of all shippers'	contracted capacities -
(i) at the new inlet point to exceed the new inlet point's

total physical capacity; or

(ii)      across all tranches at the new outlet point to exceed the

new outlet point's total physical capacity;

(b) would involve the relocated capacity changing from any of

any other of full-haul capacity, part-haul capacity or back-
haul capacity; or

full-haul capacity, part-haul capacity or back-haul capacity to

20 November 19971 GOVERNMENT GAZETTE, WA 6539

Gas Transmission Amendment Regulations (No. 2) 1997

(c)	is not operationally feasible, either (without limiting the	generality of the foregoing) because the relocation of capacity	results in a lengthened front-haul or shortened back-haul or
for any other reason,

but the parties may agree under subregulation (10) to a relocation of	capacity which, would otherwise be prohibited by this subregulation.
must assess as a reasonable and prudent person whether the requested (3) The corporation, after receiving a notice under subregulation (1), relocation is prohibited under subregulation (2), and must as soon as practicable give notice in writing to the shipper advising either -

that the requested relocation is prohibited wider

(a) subregulation (2); or

that the requested relocation is not prohibited under (4) The first come first served principle set out in regulation 76

(b) subregulation (2).

applies (with appropriate modifications), by force of this regulation, to a	notice under subregulation (1) as if the notice were an application.
corporation and the shipper are to negotiate in good faith regarding - (a) the treatment of the shipper's contribution (if any) towards (5) If the corporation gives notice under subregulation (3) (b), the

any amounts payable to the corporation (by any one or more	of that shipper and any other person or persons) in respect of -
(i) any facilities (including the old inlet point or old outlet ceasing to utilise by reason of its whole or partial point) which the shipper will be wholly or partially

cessation to utilise the old inlet point or the old outlet

point (as the case may be); and

(ii)	any facilities (including the new inlet point or new	outlet point) which the shipper will be wholly or partially utilising by reason of its utilisation of the new
inlet point or new outlet point (as the case may be);
and

(b) if the requested relocation would result in a lengthened front- subregulation (9) are to be quantified and reimbursed. haul or shortened back-haul, how any costs referred to in

requested relocation and the terms and conditions so agreed are to be (6) If the parties reach agreement under subregulation (5), the

given effect to by an amendment of the shipper's transmission contract

under regulation 91A.

agree in writing to the contrary, any capacity relocated under this (7) Subject to subregulation.s (8), (9) and (10) and unless the parties

limitation terms and conditions as to price) as the capacity at the old inlet point or the old outlet point (as the case may be).	regulation is to be on the same terms and conditions (including without
payable under the shipper's transmission contract are to be reduced as a (8) Unless the parties agree in writing to the contrary, no charges
result of a relocation of capacity under this regulation, even if the relocation causes some or all gas to be transported over a shorter. distance.
lengthened front-haul or shortened back-haul, the shipper must reimburse (9) If a relocation of capacity under this regulation results in a
the corporation for any increase in the corporation's costs which result from the relocation.

6540 GOVERNMENT GAZEVI'E, WA [20 November 1997

Gas Transmission Amendment Regulations (No. 2) 1997

prudent person specify the range of pressures within which the shipper (10) The corporation may in its discretion as a reasonable and

may deliver gas to the corporation at a new inlet point, and within which

the corporation may deliver gas to the shipper at a new outlet point.

(11) The corporation may agree with the shipper (on any terms and conditions the corporation thinks fit, includin without limitation terms g

and conditions as to price) to implement a rel ocation of capacity which

would otherwise be prohibited by subregulation (2), in which case the en effect to by an amendment of the shipper's transmission contract	requested relocation and the terms and conditions so agreed are to be
t der regulation 91A.
Administrative expenses
86E. A shipper must, when requested by the corporation to do so, reimburse the corporation for all reasonable expenses incurred by the corporation by reason of a relocation of capacity under regulation 86D.

Regulation 87 amended

49. Regulation 87 of the principal regulations is amended by inserting after "Schedule 3" the following -

Schedule 3A or Schedule 3B, as applicable.

Regulation 90 amended

50.      Regulation 90 (1) of the principal regulations is amended - (a) by deleting "Each" and substituting the following -

Subject to regulation 86B (3), each ";

by inserting before "transmission contract" in both places where it

(b) occurs the following -

" full-haul ";

(c) by inserting after paragraph (c) the following paragraphs -

it

(ca) regulations 64A and 6413;

(cb) each regulation in Division 4.6;

(d) in paragraph (f) by deleting "regulation 188" and substituting the following -

it

regulations 159 (3) and 188 "; and

(e) in paragraph (k) by inserting before "each" the following -

subject to regulation 252 (4), ".

Regulation 91 amended

51.     (1) Regulation 91 (1) of the principal regulations is amended - (a) by deleting "regulation 90" and substituting the following -

49    regulations 86B and 90 "; and

20 November 19971 GOVERNMENT GAZETTE, WA 6541

Gas Transmission Amendment Regulations (No. 2) 1997

(b) by deleting "capacity in Tranche 3" and substituting the

following -

T3 capacity

(2) Regulation 91 (2) of the principal regulations is amended by inserting after "corporation" the following -

and the shipper ".

Regulation 91B inserted

52. After regulation 91A of the principal regulations the following regulation is inserted in Division 5.1 -

Joint ventures

91B. (1) A shipper may be a joint venture, in which case the corporation and the shipper are to agree, and the shipper's transmission contract is to specify, the following -

(a) whether the joint venture participants' rights, liabilities, indemnities or obligations under the transmission contract are to be joint, several or joint and several, and if several in what proportions;

(b) the consequences of any default under the transmission contract by a joint venture participant, including without limitation -

(i)       the effect (if any) of that default upon the rights, liabilities, indemnities or obligations of any non-defaulting joint venture participant; and

(ii)      the extent (if any) to which the corporation may exercise any remedy for that default against either or both of a defaulting and a non-defaulting joint venture participant, and the impact of any such exercise upon the rights, liabilities, indemnities or obligations of each defaulting or non-defaulting joint venture participant;

(c) the requirements for notices from and to the shipper; and (d) the extent (if any, and subject to subregulation (2)) to which	the composition of the joint venture may be changed during
the term of the transmission contract, and the terms and
conditions governing any such change.

(2) Unless the parties agree in writing to the contrary, a new joint venture participant may only be introduced into a joint venture which is a shipper by means of an assignment in accordance with regulation 133 of the relevant part of the transmission contract from the existing joint venture participants to that new joint venture participant.

Regulation 92 amended

53.      Regulation 92 of the principal regulations is amended -

(a) by deleting the definition of "bank bill rate" and substituting the following definition -

"bank bill rate", in respect of a day from which interest is to be calculated, means the annual percentage rate which is -

(a) the quoted rate for "Bank Bill Reference Rate
(Mid-Rate)" on "Telerate" page 39373 at or about

6542 GOVERNMENT GAZETTE, WA [20 November 1997

Gas Transmission Amendment Regulations (No. 2) 1997

10:00 hours (Sydney time) on that day as being (b) if the bank bill rate cannot be determined by the	the rate for a one month bill; or
rate determined by the corporation as a procedure in paragraph (a) of this definition, a
reasonable and prudent person having regard to comparable indices then available;

(b) in the definition of "prescribed interest rate" by deleting "an annual

interest rate equal to";

(c)	by deleting the semicolon at the end of the definition of "prescribed interest rate" and substituting a fill stop; and
(d)	by deleting the definition of "reference bank".

Regulation 94 amended

54. Regulation 94 (b) of the principal regulations is amended by inserting before "shipper's" in both places where it occurs the following -

the

Regulation 95 amended

55.      Regulation 95 (2) of the principal regulations is repealed.

Regulation 95A inserted

56.      After regulation 95 of the principal regulations the following regulation is

inserted -

Default in payment

95A.

payment of any - (1) If a shipper fails by the relevant due date to make full

(a) capacity reservation charge;

(b)	amount shown on an invoice; or
(c)	other amount payable by it under the Act, these regulations or a transmission contract,

(unless the corporation in its absolute discretion waives this requirement) pay interest on the unpaid amount, calculated daily at the prescribed	then, without prejudice to the corporation's other rights, the shipper must
interest rate from the due date until payment.
(2) The prescribed interest rate calculated for a day from which interest is to be payable on any amount referred in subrogulation (1) is to apply until payment of that amount, and is not to be recalculated despite
any change in the bank bill rate during that period.

Regulation 104 amended

57.     Regulation 104 of the principal regulations is amended - (a) by inserting after "allowance for" the following

either or both of "; and

20 November 19971 GOVERNMENT GAZETTE, WA 6543

Gas Transmission Amendment Regulations (No. 2) 1997

(b) by deleting paragraph (b) and substituting the following	paragraph -
"

(b) unaccounted for gas, and gas which leaks or otherwise

system or the gas distribution system (whether in normal operational circumstances or due to any rupture
or other abnormal leakage).

escapes from either or both of the gas transmission

Regulation 115 amended

58. After regulation 115 (4) of the principal regulations the following subregulation is inserted -

"

(5) Without limiting the generality of subregulation (1), a refusal by a shipper - the corporation due to force majeure to accept gas from, or deliver gas to,

(a) is not a curtailment or interruption of that shipper's capacity;

and

(b) included in any accumulation under regulation 116 (3). without limiting the generality of paragraph (a), is not to be

Regulation 116 amended

59. (1) Regulation 116 (1) of the principal regulations is repealed and the following subregulation is substituted -

[f'

(1) A party who —

(a)	is negligent, is liable; or
(b)	(3), (4) and (5), a transmission contract, is liable, subject to subregulations

defaults in respect of its obligations to the other party under

independent contractors and agents) for, and is to indemnify the other party (including its directors, servants, consultants, independent

to the other party (including its directors, servants, consultants,

out of the negligence or default. contractors and agents) against, any direct damage caused by or arising

accordance with regulation 53" and substituting the following -

(2)

Regulation 116 (3) (a) and (b) are each amended by deleting "made in

for which the corporation is relieved of liability under subregulation (4) or
(6)

"

(3) Regulation 116 (4) is amended -

by deleting "or interruption of the shipper's capacity in Tranche 1

(a) or Tranche 2" and substituting the following -

"

of the shipper's Ti capacity or interruption of the shipper's T2

capacity

(b) by inserting "or" after paragraph (a);

6544 GOVERNMENT GAZETTE, WA [20 November 1997

Gas Transmission Amendment Regulations (No. 2) 1997

(c)	stop; and	by deleting "; or" at the end of paragraph (b) and substituting a full
(d)	by deleting paragraph (c).

(4) Regulation 116 (5) of the principal regulations is amended -

(a) by inserting before "shipper's" the following -

41 the ";and

(b) by deleting "additional T3" and substituting the following -

AT3 ".

subregulation is inserted -	(5) After regulation 116 (5) of the principal regulations the following
shipper arising out of any - (6) The corporation is not to be liable for any damage suffered by a

(a)	curtailment or interruption by the corporation of the shipper's capacity; or
(b)	refusal by the corporation to accept gas from or deliver gas to the shipper,

if the corporation is entitled under these regulations or a transmission contract to take such action by reason of, or in response to a reduction in gas transmission capacity caused by, the default, negligence, breach of contractual term, or other misconduct of the shipper.

Regulation 118 amended

60.      Regulation 118 (2) of the principal regulations is amended -

by inserting after "all indirect damage" in the first place where it

(a) occurs the following -

41

(other than damage to which regulation 117 or 211 (5) relates)

and

by inserting alter "all indirect damage" in the second place where

(b) it occurs the following -

(other than damage to which regulation 117 relates) ".

Regulation 128 amended

61. (1) Regulation 128 (1) (b) of the principal regulations is amended by deleting "all risks".

inserting after "the public" the following - (2) Regulation 128 (1) (c) of the principal regulations is amended by

in connection with, related to or arising out of the transmission contract

following subregulation is substituted - (3) Regulation 128 (2) of the principal regulations is repealed and the

(2) The shipper must arrange for -

(a) endorsement on the policies referred to in subregulation (1) (b) and (c) of the corporation as an insured or co-insured; or

20 November 19971 GOVERNMENT GAZETTE, WA 6545

Gas Transmission Amendment Regulations (No. 2) 1997

(b) the corporation's interest to be noted on those policies to the satisfaction of the corporation so that it is covered under those policies,

and for the insurers to waive rights of subrogation against the corporation.

(4) Regulation 128 (4) of the principal regulations is repealed and the following subregulation is substituted -

44

(4) The corporation may waive compliance -

(a)	by the shipper; or
(b)	if the shipper is a joint venture, by a joint venture participant,

with any or all of the requirements of subregulations (1), (2) and (3) if it

as a reasonable and prudent person -

(c)	is satisfied that the shipper or joint venture participant, as the case may be, has adequate alternative arrangements;
(d)	accepts the shipper or joint venture participant, as the case may be, as a self-insurer; or
(e)	determines that there is other sufficient reason to do so.

Regulation 135 amended

62.     Regulation 135 of the principal regulations is amended by deleting

""investment in" and substituting the following -

"capital investment in ".

Regulation 136 amended

63. (1) Regulation 136 (3) (b) and (c) are each amended by inserting before "investment" the following -

capital ".

Regulation 136 (4) (a) of the principal regulations is amended by deleting "Tranche 1, Tranche 2 and Tranche 3" and substituting the following -

(2)

Ti capacity, T2 capacity, T3 capacity and AT3 capacity ".
(3)	After regulation 136 (4) of the principal regulations the following

regulation is inserted -

(5) In this regulation -

"shipper" has the same meaning as it has in Part 6 of the Act.

Regulation 138 amended

64.      Regulation 138 of the principal regulations is amended by deleting "The"

Q substituting the following -

Subject to regulation 152, the ".

Regulation 140 repealed

65.      Regulation 140 of the principal regulations is repealed.

6546 GOVERNMENT GAZETTE, WA [20 November 1997

Gas Transmission Amendment Regulations (No. 2) 1997

Regulation 141 amended

66. (1) Regulation 141 (1) of the principal regulations is amended by deleting "the shipper's" in the second place where it occurs.

(2) Regulation 141 (2) of the principal regulations is amended by deleting

"capacity in each of Tranche 1 and Tranche 2" and substituting the following -

49

Ti capacity or T2 capacity ".

Regulation 142 amended

67.      Regulation 142 of the principal regulations is amended -

(a) by deleting "capacity in Tranche 1" and substituting the following -

Ti capacity ";

(b) by inserting before "investment" in both places where it occurs the following -

capital ";and

(c) by deleting "Tranche i or Tranche 2." and substituting the following -

full-haul Ti capacity or full-haul T2 capacity. ".

Regulation 143 amended

68.      Regulation 143 of the principal regulations is amended -

(a) by deleting "capacity in Tranche 2" and substituting the following -

T2 capacity ";and

(b) by deleting "capacity in Tranche i" and substituting the following -

Ti capacity

Regulation 144 amended

69. (1) Regulation 144 (1) of the principal regulations is amended by deleting "in each of Tranche 1 and Tranche 2" and substituting the following -

under each of Ti capacity and T2 capacity ".

(2) Regulation 144 (2) of the principal regulations is amended by deleting "capacity in Tranche 1 and Tranche 2" and substituting the following -

Ti capacity and full-haul T2 capacity ".

Regulation 145 amended

70.     (i) Regulation 145 (1) of the principal regulations is amended -

(a) by deleting "capacity in Tranche i and Tranche 2" in the first place where it occurs and substituting the following -

Ti capacity and full-haul T2 capacity ";

20 November 19971 GOVERNMENT GAZETTE, WA 6547

Gas Transmission Amendment Regulations (No. 2) 1997

(b) by deleting "Tranche 1 or Tranche 2" and substituting the following -

full-haul Ti capacity or full-haul T2 capacity ".

(2) Regulation 145 (2) of the principal regulations is amended

(a) by deleting "capacity in Tranche 2" and substituting the

following -

T2 capacity ";and

(b) by deleting "capacity in Tranche 1" and substituting the

following -

Ti capacity

Regulations 148,149 and 150 repealed and new regulations substituted

71. Regulations 148, 149 and 150 of the principal regulations are repealed and the following regulations are substituted -

Charges for part-haul capacity

148. (1) Capacity reservation charges and commodity charges for part- haul capacity (other than part-haul T3 capacity) are to be the corresponding charges for full-haul capacity divided by 1399 and

multiplied by the number of pipeline kilometres between the relevant inlet

point and -

(a) if the relevant outlet point is a notional gate point, subject to subregulation (2), the most downstream physical gate point associated for the time being with the relevant outlet point;

or

(b) otherwise, the relevant outlet point.

a location that it becomes the most downstream physical gate point (2) If at any time a new physical gate point is commissioned in such
associated with a notional gate point, then the distance-related components of capacity reservation charges and commodity charges for all

existing and new shippers with contracted capacity at the notional gate	point are to be amended to reflect the increased pipeline kilometres under
the next gas month after commissioning. subregulation (1) (a), and are to take effect as amended from the start of
Charges for back-haul capacity
back-haul capacity are to be the corresponding charges for full-haul 149. (1) Capacity reservation charges and commodity charges for
capacity divided by 1399 and multiplied by the number of pipeline kilometres between the relevant inlet point and -

(a)	subregulation (2), the most upstream physical gate point associated for the time being with the relevant outlet point;	if the relevant outlet point is a notional gate point, subject to
or
(b)	otherwise, the relevant outlet point.

a location that it becomes the most upstream physical gate point (2) If at any time a new physical gate point is commissioned in such

associated with a notional sate point, then the distance-related components of capacity reservation charges and commodity charges for all existing and new shippers with contracted capacity at the notional gate point are to be amended to reflect the increased pipeline kilometres under

6548 GOVERNMENT GAZETTE, WA [20 November 1997

Gas Transmission Amendment Regulations (No. 2) 1997

subregulation (1) (a), and are to take effect as amended from the start of	the next gas month after commissioning.
T3 charge
150. A shipper must pay to the corporation a T3 charge for every or back-haul capacity), at a rate per gigajoule which in the case of gas delivered under T3 capacity may be negotiated between the corporation gigajoule of gas delivered to the shipper by the corporation under T3 capacity or AT3 capacity (whether full-haul capacity, part-haul capacity
and a shipper, and in the case of gas delivered under AT3 capacity allocated under Part 7 is to be determined in accordance with the provisions of that Part.

Regulation 151 amended

72.     (1) Regulation 151 (4) of the principal regulations is amended -

(a) by deleting "arising out of a redetermination under this regulation of a price is" and substituting the following -

connected with or arising out of an enhancement to or

expansion of the gas transmission system is at any time

and

(b)	in paragraph (b) -
(i) by inserting after "corporation's" the following -

44 capital ";and

(ii)     by deleting "the redetermination" and substituting the following -

49

a redetermination under this regulation

After regulation 151 (6) of the principal regulations the following subregulation is inserted -

(2)

(6a) Any price in dollars per gigajoule determined by a redetermination under this regulation is to be expressed to the nearest 6

decimal places of a dollar.

Regulation 151 (8) of the principal regulations is amended by deleting

" T3 "
Regulation 152 repealed and a regulation substituted

"Tranche 3" and substituting the following - (3)

73. Regulation 152 of the principal regulations is repealed and the following regulation is substituted

Annual adjustment of commodity charge

152.      (1) The corporation may annually adjust the commodity charge

to reflect -

(a)	changes in costs to the corporation of fuel;
(b)	changes in CPI;

with respect to labour, materials and services, 75% of any

20 November 19971 GOVERNMENT GAZETTE, WA 6549

Gas Transmission Amendment Regulations (No. 2) 1997

(c) existing, tax, excise, impost, levy or charge by the the introduction of any new, or the increase or decrease of any

Commonwealth or State governments, if the tax, excise, impost, levy or charge has general application; and

(d) any increase or decrease in any payments under section 79 of

the Act.

The corporation must give to each shipper reasonable, and in any commodity charge adjusted under subregulation (1) for a year.

event not less than 10 working days', advance notice in writing of the (2)

(3) A commodity charge adjusted in respect of a year under

is the later of - subregulation (1) has effect for a shipper from 08:00 hours on whichever

(a)	1 January in the year; and
(b)	corporation gives notice to the shipper for the year under

the day 10 working days after the day on which the

subregulation (2),

and in either case has effect for the shipper until the earlier of -

(c)	for the shipper under this regulation; and	the day the next adjusted commodity charge comes into effect
(d)	the day the next redetermination of the commodity charge
under regulation 151 comes into effect.

Regulation 217 amended

121.     (1) Regulation 217 (1) of the principal regulations is amended -

(a) by deleting paragraph (d); and

6566 GOVERNMENT GAZETTE, WA [20 November 1997

Gas Transmission Amendment Regulations (No. 2) 1997

(b) in paragraph (h) by deleting "SCAI)A system and billing data	retrieval" and substituting the following -
" electronic data collection ".

subregulation is inserted -	(2) After regulation 217 (1) of the principal regulations the following
"
of 5 TJ/d or more must include - (la) Primary metering equipment with a design maximum flow rate

(a) alternative metering equipment capable of measuring gas

quantity and (for inlet metering equipment) gas quality;

(b) a means for detecting a fault in duty equipment which is likely to materially affect the accuracy of any measurements

produced by the duty equipment, and a means in the event of such a fault for automatically switching metering from the faulty duty equipment to the alternative metering equipment referred to in paragraph (a); and

(c) a means for manually switching metering from duty

equipment to the alternative metering equipment referred to

in paragraph (a).

and the following subregulations are substituted -	(3) Regulation 217 (2), (3) and (4) of the principal regulations are repealed
"
with valve or other equipment status, and must include components for (2) Inlet metering equipment must provide digital signals associated
signalling the following primary measurements and derived variables associated with gas quality and quantity -

(a)	delivery temperature;
(b)	delivery pressure;
(c)	instantaneous energy flow rate in terajoules per day;
(d)	totalised energy flow in gigajoules;

(e)	relative density;
(f)	higher heating value in megajoules per kilogram;
(g)	nitrogen content in mole percent;
(h)	carbon dioxide content in mole percent;

(i)       LPG content in tonnes per terajoule of gas;

j)	moisture level in milligrams per cubic metre;
(k) instantaneous hydrocarbon dew point in degrees Celsius;	and
(1)	all primary measurements and derived variables used in any computation required by paragraphs (a) to (k).

persons agree to the contrary, outlet metering equipment may utilise gas (3) Unless the corporation and a shipper as reasonable and prudent quality data (the "remote data") from equipment which is not located at the outlet station in question, in which case -

(a) the corporation may as a reasonable and prudent person adopt procedures relating to that utilisation, including

20 November 19971 GOVERNMENT GAZETTE, WA 6567

Gas Transmission Amendment Regulations (No. 2) 1997

without limitation relating to the use of preset gas quality values when the remote data is unavailable for any reason; and

(b) regulations 222 and 225 apply, with appropriate associated with valve or other equipment status, and must include (4) Outlet metering equipment must provide digital signals modifications, to any procedures adopted under paragraph (a).

components for signalling the following primary measurements and

derived variables associated with gas quantity -

(a)	delivery temperature;
(b)	delivery pressure;
(c)	instantaneous energy flow rate in terajoules per day;
(d)	totalised energy flow in gigajoules; and
(e)	computation required by paragraphs (a) to (d).

all primary measures and derived variables used in any

Regulation 218 amended

122. (1) Regulation 218 (1) of the principal regulations is amended by inserting after "metering equipment" the following -

41

at the outlet station associated with the outlet point at which the shipper

has contracted capacity

deleting", verified delivery" and substituting the following -	(2) Regulation 218 (2) (b) of the principal regulations is amended by
44
(Or as soon thereafter as the corporation as a reasonable and prudent person is able), verified daily energy quantity
Regulation 219 amended

123.      Regulation 219 (2) of the principal regulations is amended

(a)	by inserting after "may" the following " modify, or may ";and
(b)	by inserting a comma after "to modify".

Regulation 223 amended

124. After regulation 223 (3) of the principal regulations the following subregulation is inserted -

is, or are, shown to be incorrect in respect of any period or periods, (4) If either or both of the presumptions in subregulations (1) and (2)

regulations 226 and 227 apply, with appropriate modifications, to measurements taken by the metering equipment during the period or periods.

6568 GOVERNMENT GAZETTE, WA [20 November 1997

Gas Transmission Amendment Regulations (No. 2) 1997

Regulation 224 amended

125.     (1) Regulation 224 (1) of the principal regulations is amended -

(a) by deleting paragraph (a) and substituting the following paragraph -

"

(a) must, subject to subregulation (la), at least once each month during the term of a transmission contract;

and

(b) by deleting "to be agreed between the parties" and substituting the following -

described in subregulation (ib) ".

subregulations are inserted -	(2) After regulation 224 (1) of the principal regulations the following
advance notice in writing to the other party, vary the interval between (la) Either party may from time to time, by at least 3 months'
equipment, provided that the established performance of the primary verifications under subregulation (1) (a) of any primary metering
metering equipment is such that a reasonable and prudent person would be satisfied that the interval can be so varied without materially detrimentally affecting the accuracy of measurements provided by the primary metering equipment and without materially increasing the risk of the metering equipment operating outside the prescribed limits of uncertainty.

(ib) The verification procedure is to consist of -

(a) a comparison between simultaneous independent

measurements of gas flows;

(b)	the physical substitution of the primary metering equipment to be verified with similar metering equipment having a
demonstrated accuracy within the prescribed limits of uncertainty; or

(c) any metering equipment testing procedure complying with applicable Australian or International standards that the parties agree in writing to use.

Regulation 225 repealed and a regulation substituted

126. Regulation 225 of the principal regulations is repealed and the following regulation is substituted -

44

Adjustment or replacement of defective equipment

225. (1) If any component of primary metering equipment is at any time found to be defective or otherwise out of service or operating outside the prescribed limits of uncertainty, the corporation must at an outlet station and the shipper must at an inlet station (in either case at the shipper's expense) forthwith either -

(a)	adjust it to read accurately within the prescribed limits of	uncertainty; or
(b)	if such adjustment is not possible, replace it with a serviceable component.

20 November 19971 GOVERNMENT GAZETTE, WA 6569

Gas Transmission Amendment Regulations (No. 2) 1997

metering equipment with a design maximum flow rate of less than 5 TJ/d (2) Without limiting the generality of subregulation (1), if primary

is at any time found to be for any reason operating outside the prescribed limits of uncertainty, the corporation must at an outlet station and the shipper must at an inlet station (in either case at the shipper's expense) within 48 hours cause the primary metering equipment to operate within

the prescribed limits of uncertainty.

Regulation 226 amended

127. (1) Regulation 226 (2) of the principal regulations is amended by inserting after "(1) (a) or (b)" the following -

or agreed under subregulation (3), ". subregulation is inserted -	(2) After regulation 226 (2) of the principal regulations the following
uncertainty for a component or components of primary metering (3) If the parties have agreed under regulation 216 (2) to limits of
equipment, then the parties may agree to limits which are to apply in substitution for the limits prescribed in subregulation (1) (a) or (b) for that primary metering equipment, and subregulation (1) has effect accordingly.

Regulation 231 amended

128. (1) Regulation 231 (1) of the principal regulations is repealed and the following subregulation is substituted -

transmission system any gas purchased by the corporation to replace (1) The corporation may commingle with other gas in the gas either or both of—

(a) gas consumed or otherwise used by the corporation in its

operation of the gas transmission system; or

unaccounted for gas, and gas which leaks or otherwise escapes

(b) from the gas transmission system (whether in normal

operational circumstances or due to any rupture or other

abnormal leakage).

subregulation is inserted - (2) After regulation 231 (2) of the principal regulations the following

(3) When gas referred to in subregulation (1) is either -

(a)	delivered into the gas transmission system by a shipper; or
(b)	gas transmission system, transmission business) by a shipper before the gas enters the delivered to the corporation (in its capacity as the gas

that gas is not to be considered as gas delivered under the shipper's transmission contract for all purposes under these regulations or any transmission contract, including without limitation for the purposes of -

(c)	pricing;
(d)	balancing; and
(e)	curtailment or interruption.

6570 GOVERNMENT GAZETTE, WA [20 November 1997

Gas Transmission Amendment Regulations (No. 2) 1997

Regulation 233 amended

129. Regulation 233 of the principal regulations is amended in the definition

of "tradeable capacity" by deleting "shipper's" in the second place where it
occurs.

Regulation 234 amended

130. Regulation 234 (1) of the principal regulations is amended by deleting "regulation 133" and substituting the following -

44

regulation 86D or 133 ".

Regulation 235 amended

131. (1) Regulation 235 (1) of the principal regulations is amended by deleting "shipper's" in the first and second places where it occurs.

where it occurs. (2) Regulation 235 (2) (d) is amended by deleting "shipper's" in both places

Regulation 240 amended

132. Regulation 240 (2) of the principal regulations is amended by deleting "shipper's" in the second place where it occurs.

Regulation 243D amended

133. Regulation 243D (2) of the principal regulations is amended by deleting "(1) and (2)" and substituting the following -

(2) and (3)

Regulation 243F amended

134. (1) Regulation 243F (4) (b) of the principal regulations is amended by inserting before "nothing in this Part" the following -

subject to subregulation (5), ".

subregulation is inserted	(2) After regulation 243F (4) of the principal regulations the following
corporation must seek to avoid unnecessary expansion costs in choosing (5) Without limiting the generality of subregulation (3), the
between giving a relinquishment acceptance and providing developable capacity.

Regulation 244 amended

135. Regulation 244 of the principal regulations is amended by inserting before the definition of "dispute" the following definition -

"authorised person" means either the chief executive of a party or a person appointed for the purposes of regulation 246 by the chief chief executives of all persons which comprise the party); executive (or, if the party comprises more than one person, by the

20 November 19971 GOVERNMENT GAZETTE, WA 6571

Gas Transmission Amendment Regulations (No. 2) 1997

Regulation 245 amended

136. Regulation 245 (c) of the principal regulations is amended by inserting after "commercially viable" the following

,having regard only to -

the facts and circumstances known, or which ought

(i)       reasonably to have been known, by the corporation; and

(ii)     the regulations in force,

at the time of the decision to undertake that enhancement or expansion

Regulation 248 amended

137. Regulation 248 (1) of the principal regulations is amended by deleting "(in this regulation called "the arbitration notice")".

Regulation 250 amended

138. (1) Regulation 250 (1) of the principal regulations is amended by inserting after "required by" in the second place where it occurs the following -

regulation 57 and ".

after "required by" the following -	(2) Regulation 250 (2) of the principal regulations is amended by inserting
44
regulation 57 and ".

Regulation 251 repealed and a regulation substituted

139. Regulation 251 of the principal regulations is repealed and the following regulation is substituted -

Electronic bulletin board system

251.

(1) The corporation and shippers may agree from time to time system for communications under these regulations and transmission	contracts, and concerning the system's features and the information it is
to convey.
and modifying the electronic bulletin board system referred to in (2) To the extent that the costs of installing, operating, maintaining subregulation (1) are part of—

concerning modifications to the corporation's electronic bulletin board

(a)	system, those costs are to be taken into account for the the corporation's capital investment in the gas transmission
purposes of the determination and redetermination of the capacity reservation charge under Part 6; and
(b)	the corporation's costs of maintaining and providing gas

transmission capacity, those costs are to be taken into account

for the purposes of the adjustment, determination and redetermination of the commodity charge under Part 6.

Regulation 252 amended

140. (1) Regulation 252 (2) of the principal regulations is amended by inserting after "(other than" the following -

regulation 57 and

6572 GOVERNMENT GAZETTE, WA [20 November 1997

Gas Transmission Amendment Regulations (No. 2) 1997

subregulation is inserted -	(2) Alter regulation 252 (3) of the principal regulations the following
a
writing to utilise an alternative means of communication of notices, (4) Nothing in this regulation prevents the parties from agreeing in
including without limitation the corporation's electronic bulletin board system referred to in regulation 251.

Regulation 261 amended

141. Regulation 261 of the principal regulations is amended -

by inserting after the regulation designation "261." the

(a)	subregulation designation "(1)";
(b)	by inserting after "Any"the following - inlet station, outlet station or "; and
(c)	by inserting the following subregulation -

"

inlet station, outlet station or metering equipment in question (2) Subregulation (1) applies only to the extent that the

remains unmodified, other than by modifications in the

normal course of maintenance and operation.

Schedule 2 amended

142.      Schedule 2 to the principal regulations is amended -

(a) by inserting before "Ti capacities" in the first place where it occurs the following -

total ";

(b) in clause 1 (1) by deleting the definition of "shipper's total	Ti capacity";
(c) in clause 3 -

(i)      by inserting after the clause designation "3." the subclause designation "(i)";

(ii)     by deleting "The" and substituting the following -

Subject to subclause (2), the "; and

(iii)    by inserting the following subclause -

a

reasonable and prudent person, may from time to time (2) The trading business in its discretion as a agree with the corporation that the 40 TJ/d of its Ti

(either wholly or to an agreed extent) before all other shippers' Ti capacities have been reduced to zero. capacity referred to in subclause (i) is to be curtailed

(d) in clause 4 -

(i)      by inserting after the clause designation "4." the subclause

designation "(1)";

(ii)     by inserting before "Alcoa" the following -

a

Subject to subclause (2), ";

20 November 19971 GOVERNMENT GAZEII'E, WA 6573

Gas Transmission Amendment Regulations (No. 2) 1997

(iii)    in paragraph (a) by deleting "shipper's";

(iv)     in paragraph (b) by deleting "total"; and

(v)      by inserting the following subclause -

a

prudent person, may from time to time agree with the (2) Alcoa, in its discretion as a reasonable and corporation that the 40 TJ/d of its total exempted

(either wholly or to an agreed extent) before the conditions in subclause (1) (a) and (b) have been met. capacity referred to in subclause (1) is to be curtailed

and

(e) in clause 5 -

(i)      by inserting after the clause designation "5." the subclause designation "(1)";

(ii)     by inserting after "clauses 3 and 4" the following -

and subclause (2) ";

(iii)	in paragraph (a) and in the definition of "sum of STf1Cs" by	deleting "shipper's";
(iv)	in the definition of "reduced STT1C" by deleting "reduced
shipper's" and substituting the following -

shipper's reduced "; and

(v)     by inserting the following subclause -

prudent person may from time to time agree with the (2) A shipper in its discretion as a reasonable and

corporation that the shipper's total Ti capacity is to be curtailed either wholly or to a greater extent than would otherwise be the case under subclause (1).

Schedule 3 amended

143.      Schedule 3 to the principal regulations is amended

(a) in the heading -

(i)       by inserting before "CAPACITY" the following - 44 FULL-HAUL "; and

(ii)     by deleting "THE" and substituting the following -

" FULL-HAUL ".

(b) in clause 1 (1) and (2) by inserting after "grant of" the following -

full-haul ";

(c) by repealing clause 7 (2);

(d) in the provision commencing "8, 9, 10, [etc.]" -

(i)      by deleting "shipper," and substituting the following -

shipper and ";

6574 GOVERNMENT GAZETTE, WA [20 November 1997

Gas Transmission Amendment Regulations (No. 2) 1997

(ii)      by inserting before "shipper's" the following - 14 the "; and

(iii)     by deleting "and (other than price) of part-haul capacity and back-haul capacity, etc";

and

(e) by repealing Appendix 2 and substituting the following appendix -

Appendix 2 (to Schedule 8) - Details of outlet

point capacity

Outlet point number

(Location ...............)

Contract year Season Shipper's Ti Shipper's

capacity	T2 capacity
(TJ/d)	(TJ/d)

Summer

1   _______

Winter

Summer

n

Winter

[Repeat for each outlet point.]

Schedules 3A and 3B inserted

144.      After Schedule 3 to the principal regulations the following Schedules are

inserted -

"

SCHEDULE 3A

[Regulation 871

GRANT OF PART-HAUL CAPACITY

(PART-hAUL TRANSMISSION CONTRACT)

This is a Grant of Part-Haul Capacity
by
The Gas Corporation

to

This grant is dated .......................

20 November 19971 GOVERNMENT GAZETTE, WA 6575

Gas Transmission Amendment Regulations (No. 2) 1997

Recitals

1. (1) The shipper has submitted an application under Part 4 for a grant of part-haul capacity.

The corporation has accepted the shipper's application and by this

document makes a grant of part-haul capacity to the shipper in response
to that application.

(2)

Under section 94 (2) of the Act, this grant of capacity is or is deemed to be a contract between the corporation and the shipper.

(3)

Interpretation

2.     (1) In this contract

"Act" means the Gas Corporation Act 1994;

"capacity" has the modified meaning given to it by clause 6 (3);
"corporation" means the Gas Corporation, a statutory corporation constituted by the Act;
"part-haul Ti capacity" means contracted capacity which has been the subject of a grant of capacity to a shipper at an outlet point, on the terms, conditions and prices applicable under these regulations to a grant of capacity in part-haul Tranche 1;
"part-haul T2 capacity" means contracted capacity which has been the subject of a grant of capacity to a shipper at an outlet point, on the terms, conditions and prices applicable under these regulations to a grant of capacity in part-haul Tranche 2;
"part-haul T3 capacity" means contracted capacity which has been the subject of a grant of capacity to a shipper at an outlet point, on the terms, conditions and prices applicable under these regulations to a grant of capacity in part-haul Tranche 3;

"part-haul Tranche 1" means that portion of part-haul capacity which is capacity in Tranche 1;

"part-haul Tranche 2" means that portion of part-haul capacity which is capacity in Tranche 2;

"part-haul Tranche 3" means that portion of part-haul capacity which is capacity in Tranche 3;
"regulations" means the Gas Transmission Regulations 1994;
"shipper" means ..........................
"tranche" has the modified meaning given to it by clause 6 (3).

Any terms defined in the regulations (other than "shipper") have

the same meaning when used in this contract (modified if necessary by
clause 6 (2)).

(2)

The Interpretation Act 1984 applies to the interpretation of any regulation which forms part of this contract.

(3)

Any reference to a Division, Part or regulation is a reference to a Division, Part or regulation in the regulations.

(4)

6576 GOVERNMENT GAZETTE, WA [20 November 1997

Gas Transmission Amendment Regulations (No. 2) 1997

contract means that the regulation or provision has effect as if set out in (5) Any reference to a regulation or provision forming part of this full in this contract (modified if necessary by clause 6 (2)).

The contract

3.     The corporation and the shipper agree that -

(a)	the corporation will grant to the shipper the part-haul capacity set out in this contract on the terms and conditions set out in this contract; and
(b)	the shipper will have the option to extend this contract for the term or terms (if any) set out in Appendix 4.

Duration of contract

4. This contract commences at 08:00 hours on .......and ends at 08:00 hours on .........

Imported terms of this contract

5. (1) The corporation and the shipper agree that every provision of the regulations which is identified in regulation 90 forms part of this contract, with the exception of regulations 49 and 50 (as to which see clause 10).

inconsistency between - (2) Without limiting the effect of regulation 89, in the event of any

(a)	a regulation which is identified by regulation 90; and
(b)	another term of this contract,

the term referred to in paragraph (b) prevails.

provisions of the regulations also form part of this contract ............	(3) The corporation and the shipper agree that the following
Terms and conditions of part-haul capacity

6.     (1) The capacity granted by this contract is part-haul capacity.

(2) Subject to subclause (4), the terms of this contract imported by limitation in a definition of any term) to - clause 5 are to be read as though every reference (including without

(a)	"Ti capacity" was instead a reference to "part-haul Ti capacity";
(b)	"72 capacity" was instead a reference to "part-haul T2 capacity";
(c)	"73 capacity" was instead a reference to "part-haul T3 capacity";
(d)	"Tranche 1" was instead a reference to

"part-haul

Tranche 1";

(e) "Tranche 2" was instead a reference to

"part-haul

Tranche 2"; and

(0	"Tranche 3" was instead a reference to
Tranche 3".

"part-haul

20 November 19971 GOVERNMENT GAZETTE, WA 6577

Gas Transmission Amendment Regulations (No. 2) 1997

contract to include full-haul, a reference in this contract to a "tranche", or (3) Unless the reference is expressly extended by the terms of this

to "tranche" generally, is a reference to part-haul capacity, and a reference

to "capacity" in a tranche has a corresponding meaning.

(4) In the event of any inconsistency between

(a) any term of this contract imported by clause 5 and

modified by subclause (2) or (3); and

(b) a term of this contract relating expressly to part-haul

capacity,

the term referred to in paragraph (b) prevails.

(5) This contract does not constitute a grant of any full-haul capacity. in interpreting, this contract. (6) Regulations 45 and 64 do not form part of, and are not to be used

No aggregation or short-term relocation for part-haul capacities

shipper must not - 7. (1) Despite any term of this contract imported by clause 5, the

(a)	aggregate its capacity in a tranche at an outlet point; or
(b)	at an outlet point, make a short-term relocation of its capacity in a tranche

unless the corporation and the shipper first reach agreement regarding any terms and conditions to apply to, and any increased or additional prices to be charged for, that aggregation or short-term relocation.

(2) For the purposes of subclause (1) a shipper is to be taken to

(a)	aggregate capacity if it nominates for, or is allocated, a shipper's daily nomination in a tranche at an outlet point at which it has contracted capacity, which exceeds its shipper's contracted capacity in that tranche at that outlet point; and
(b)	for, or is allocated, a shipper's daily nomination in a

make a short-term relocation of capacity if it nominates

contracted capacity in that tranche.

tranche at an outlet point at which it does not have any

Contracted capacities

8. The corporation agrees to make, and the shipper agrees to accept, a grant of part-haul capacity at the inlet point or points specified in Appendix 1, and in the tranches at the outlet point or points specified in Appendix 2, in the amounts for each season set out in those Appendices.

Prices

9.     (1) The shipper agrees to pay the prices set out in Appendix 3.

For the purposes of determining the capacity reservation charge, the shipper and the corporation agree that for the purposes of paragraph inlet point or points for each outlet point is to be the inlet point or points (a) of the definition of "pipeline kilometres" in regulation 135, the relevant

(2)

specified in Appendix 3 as the relevant inlet point or points for that outlet

point.

Appendix 3 may be varied from time to time in accordance with Part 6. (3) The shipper and the corporation agree that the prices set out in

6578 GOVERNMENT GAZETTE, WA [20 November 1997

Gas Transmission Amendment Regulations (No. 2) 1997

Curtailment and interruption plan for part-haul capacity

10. [Pending any prescription under regulation 63 (1) (b), the contract may set out the curtailment and interruption plan applicable to the shipper, which may specify how that shipper's curtailment and interruption rights are to be determined as against other shippers or classes of shippers.]

Other agreed terms of this contract

11, 12, 13, [etc.1 IThe shipper and the corporation will here set out any

other terms of the contract. These may include without limitation

shipper's part-haul T3 capacity, and any particular provisions needed to application of force majeure with respect to the shipper, the terms of the	provisions regarding default by the corporation, the definition and
deal with the particular circumstances of the shipper's part-haul capacity.]
Appendix 1 (to Schedule 3A) -	Details of inlet point capacity
Inlet point number

(Location

Contract year	Season	Capacity (TJ/d)
Summer
Winter
Summer

n

Winter

[Repeat for each inlet point.]

Appendix 2 (to Schedule 3A) - Details of outlet point capacity

Outlet point number

(Location

Contract year Season Shipper's Shipper's

part-haul	part-haul T2
Ti capacity	capacity

(TJ/d) (TJ/d)

Summer

Winter

Summer

n

Winter

[Repeat for each outlet point.]

20 November 19971 GOVERNMENT GAZETTE, WA 6579

Gas Transmission Amendment Regulations (No. 2) 1997

Appendix 3 (to Schedule 3A) - Details of pricing

[This Appendix to set out each charge and price payable by the shipper, and the pipeline kilometres to be used in determining each charge.]

Appendix 4 (to Schedule 3A) - Options to extend contract

tThis Appendix to set out the term or terms of any option.]

SCHEDULE 3B

[Regulation 871

GRANT OF BACK-HAUL CAPACITY

(BACK-HAUL TRANSMISSION CONTRACT)

This is a Grant of Back-Haul Capacity
by
The Gas Corporation

to

This grant is dated

Recitals

1. (1) The shipper has submitted an application under Part 4 for a grant of back-haul capacity.

The corporation has accepted the shipper's application and by this

document makes a grant of back-haul capacity to the shipper in response
to that application.

(2)

capacity is or is deemed to be a contract between the corporation and the (3) Under subsection (2) of section 94 of the Act, this grant of

shipper.

Interpretation

2.     (1) In this contract -

"Act" means the Gas Corporation Act 1994;

"capacity" has the modified meaning given to it by clause 6 (3);
"corporation" means the Gas Corporation, a statutory corporation constituted by the Act;
"back-haul Ti capacity" means contracted capacity which has

been the subject of a grant of capacity to a shipper at an outlet point, on the terms, conditions and prices applicable

under these regulations to a grant of capacity in back-haul
Tranche 1;

"back-haul Tranche i" means that portion of back-haul capacity which is capacity in Tranche 1;

"regulations" means the Gas Transmission Regulations 1994;

6580 GOVERNMENT GAZETTE, WA [20 November 1997

Gas Transmission Amendment Regulations (No. 2) 1997

"shipper" means ...................

"tranche" has the modified meaning given to it by clause 6 (3).

(2)	Any terms defined in the regulations (other than "shipper") have
clause 6 (2)).	the same meaning when used in this contract (modified if necessary by
regulation which forms part of this contract. (3) The Interpretation Act 1984 applies to the interpretation of any

Any reference to a Division, Part or regulation is a reference to a Division, Part or regulation in the regulations.

(4)

Any reference to a regulation or provision forming part of this full in this contract (modified if necessary by clause 6 (2)).

contract means that the regulation or provision has effect as if set out in (5)

The contract

3.     The corporation and the shipper agree that -

the corporation will grant to the shipper the back-haul

(a) Ti capacity set out in this contract on the terms and

conditions set out in this contract; and

(b) the shipper will have the option to extend this contract for

the term or terms (if any) set out in Appendix 4.

Duration of contract

4. This contract commences at 08:00 hours on .......and ends at 08:00 hours on .........

Imported terms of this contract

5. (i) The corporation and the shipper agree that every provision of the regulations which is identified in regulation 90 forms part of this contract, with the exception of regulations 49 and 50 (as to which see clause 10).

inconsistency between - (2) Without limiting the effect of regulation 89, in the event of any

(a)	a regulation which is identified by regulation 90; and
(b)	another term of this contract,

the term referred to in paragraph (b) prevails.

provisions of the regulations also form part of this contract ............ (3) The corporation and the shipper agree that the following

Terms and conditions of back-haul Ti capacity

6.	(1) The capacity granted by this contract is back-haul Ti capacity. (2) Subject to subclause (4), the provisions of this contract imported
by clause 5 are to be read as though every reference (including without	limitation in a definition of any term) to -

(a)	"Ti capacity" was instead a reference to "back-haul Ti capacity"; and
(b)	"Tranche i" was instead a reference to "back-haul Tranche i,'.

20 November 19971 GOVERNMENT GAZETTE, WA 6581

Gas Transmission Amendment Regulations (No. 2) 1997

contract to include either or both of full-haul or part-haul, a reference in (3) Unless the reference is expressly extended by the terms of this

this contract to a "tranche", or to "tranche" generally, is a reference to back-haul Ti capacity or back-haul Tranche 1, and a reference to "capacity" in a tranche has a corresponding meaning.

(4) In the event of any inconsistency between -

(a)	any term of this contract imported by clause 5 and modified by subclause (2) or (3); and
(b)	a term of this contract relating expressly to back-haul

capacity,

the term referred to in paragraph (b) prevails.

(5) This contract does not constitute a grant of any full-haul capacity. in interpreting, this contract.	(6) Regulations 45 and 64 do not form part of, and are not to be used
capacity, and accordingly -	(7) The concept of non-firm capacity has no application to back-haul

the shipper may not nominate or renominate for, or be

(a)	allocated, any AT3 capacity, and regulation 159 (1) does not form part of this contract; and
(b)	the provisions of this contract imported by clause 5 which

refer to non-firm capacity are to be either disregarded or

read with appropriate amendments (as applicable).

No aggregation or short-term relocation for back-haul capacity

shipper must not - 7. (1) Despite any term of this contract imported under clause 5, the

(a)	aggregate its capacity in a tranche at an outlet point; or
(b)	make a short-term relocation of its capacity in a tranche at an outlet point,

any terms and conditions to apply to, and any increased or additional unless the corporation and the shipper first reach agreement regarding prices to be charged for, that aggregation or short-term relocation.

(2) For the purposes of subclause (1) a shipper is to be taken to -

(a)	aggregate capacity if it nominates for, or is allocated a shipper's daily nomination in a tranche at an outlet poJnt at which it has contracted capacity, which exceeds its shipper's contracted capacity in that tranche at that outlet point; and
(b)	for, or is allocated, a shipper's daily nomination in a make a short-term relocation of capacity if it nominates
tranche at an outlet point at which it does not have any contracted capacity in that tranche.

Contracted capacities

8. The corporation agrees to make and the shipper agrees to accept, a grant of back-haul Ti capacity at the inlet point or points specified in Appendix 1, and at the outlet point or points specified in Appendix 2, in the amounts for each season set out in those Appendices.

6582 GOVERNMENT GAZEVI'E, WA [20 November 1997

Gas Transmission Amendment Regulations (No. 2) 1997

Prices

9.     (1) The shipper agrees to pay the prices set out in Appendix 3.

For the purposes of determining the capacity reservation charge, the shipper and the corporation agree that for the purposes of paragraph (a) of the definition of "pipeline kilometres" in regulation 135, the relevant inlet point or points for each outlet point is to be the inlet point or points

(2)

specified in Appendix 3 as the relevant inlet point or points for that outlet

point.

Appendix 3 may be varied from time to time in accordance with Part 6. (3) The shipper and the corporation agree that the prices set out in

Curtailment and interruption plan for back-haul capacity

10. [Pending any prescription under regulation 63 (1) (b), the contract may set out the curtailment and interruption plan applicable to the rights are to be determined as against other shippers or classes of shipper, which may specify how that shippers curtailment and interruption

shippers.]

Other agreed terms of this contract

other terms of the contract. These may include without limitation	11, 12, 13, [etc.] [The shipper and the corporation will here set out any
application of force majeure with respect to the shipper and any particular provisions needed to deal with the particular circumstances of the shipper's provisions regarding default by the corporation, the definition and
back-haul Ti capacity.]

Appendix 1 (to Schedule 3B) - Details of inlet point capacity

Inlet point number

(Location ...............

Contract year	Season	Capacity (TJ/d)
Summer
Winter
Summer

n

Winter

[Repeat for each inlet point.]

20 November 19971 6583

GOVERNMENT GAZETTE, WA

Gas Transmission Amendment Regulations (No. 2) 1997

Appendix 2 (to Schedule 3B) - Details of outlet point capacity

Outlet point number

(Location ...............

Contract year Season Back-haul Ti capacity

(TJ/d)

Summer

Winter	I
Summer

n

Winter

[Repeat for each outlet point.]

Appendix 3 (to Schedule 3B) - Details of pricing

[This Appendix to set out each charge and price payable by the shipper,
and the pipeline kilometres to be used in determining each charge.]

Appendix 4 (to Schedule 30) - Options to extend contract

[This Appendix to set out the term or terms of any option.]

Schedule 6 amended

145.     Schedule 6 to the principal regulations is amended in Table A -

(a) by deleting "contracted capacity in";

(b) by deleting "Tranche 1" and substituting the following -

Cc Ti ";

(c) by deleting "Tranche 2" and substituting the following -

it T2 ";and

(d) by deleting "Tranche 3" and substituting the following -

Cc T3

By Command of the Lieutenant-Governor

and deputy of the Governor,

M. C. WAUCHOPE, Clerk of the Executive Council.