National Third Party Access Code for Natural Gas Pipeline Systems - Fourth Amending Agreement (WA)

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AUSTRALIAN
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PERTH, FRIDAY, 11 JULY 2003 No. 118

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PUBLISHED BY AUTHORITY JOHN A. STRIJK, GOVERNMENT PRINTER AT 3.45 PM

O STATE OF WESTERN AUSTRALIA

National Third Party Access
Code for Natural Gas
Pipeline Systems: Fourth
Amending Agreement
BETWEEN
THE COMMONWEALTH OF AUSTRALIA

THE NORTHERN TERRITORY
THE STATE OF NEW SOUTH WALES
THE STATE OF VICTORIA
THE STATE OF QUEENSLAND
THE STATE OF SOUTH AUSTRALIA
THE STATE OF WESTERN AUSTRALIA
THE STATE OF TASMANIA
THE AUSTRALIAN CAPITAL TERRITORY and

11 July 2003 GOVERNMENT GAZETTE, WA 2819
Table of Contents
Interpretation
2.        Commencement
3.         Amendment of section '1
4.        Amendment of section 2
5.        Amendment of section 3
6.        Amendment of section 5
7.        Amendment of section 7
8.        Amendment of section 8
9.        Amendment of section 10

10. Counterparts

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GOVERNMENT GAZETTE, WA

11 July 2003

National Third Party Access Code for Natural Gas

Pipeline Systems: Fourth Amending Agreement

Date	30 November 2001
Parties

1.       The Commonwealth of Australia
2.        The State of New South Wales
3.        The State of Victoria
4.        The State of Queensland
5.        The State of South Australia
6.        The State of Western Australia
7.        The State of Tasmania
8.        The Australian Capital Territory
9.        The Northern Territory

Recitals

\ On 7 November 1997, the Parties signed the Natural Gas Pipelines
Access Agreement with the objective of establishing a uniform national
framework for third party access to natural gas pipelines.
B Under the Natural Gas Pipelines Access Agreement, the Parties agreed
upon a uniform "Gas Pipelines Access Law", which included a
"National Third Party Access Code for Natural Gas Pipeline Systems".

C In accordance with the Natural Gas Pipelines Access Agreement, the
State of South Australia passed the Gas Pipelines Access (South
Australia) Act 1997, which applied the Gas Pipelines Access Law
(comprising Schedule I (Third Party Access to Natural Gas Pipelines)
and Schedule 2 (National Third Party Access Code for Natural Gas
Pipeline Systems (the Code)) as a law of South Australia.
D In accordance with the Natural Gas Pipelines Access Agreement, each
other Party (except the State of Western Australia) has passed
application legislation applying the Gas Pipelines Access Law as set out
in Schedules I and 2 to the Gas Pipelines Access (South Australia) Act
1997, as laws of that Party. The State of Western Australia has enacted
the Gas Pipelines Access (Western Australia) Act 1998, which has
essentially identical effect to the Gas Pipelines Access (South Australia)
Act 1997 and applies the Gas Pipelines Access Law as set out in
Schedules to the Western Australian Act as law of the State of Western
Australia.

11 July 2003 GOVERNMENT GAZETTE, WA 2821

E

Section 6 of Schedule I of the Gas Pipelines Access Law and section 9 of the Code establish a procedure whereby the Code may be amended.
F On 5 September 2001, in accordance with section 9 of the Code and
section 6(1) of Schedule I of the Gas Pipelines Access Law, the
National Gas Pipelines Advisory Committee recommended to Relevant
Ministers that certain amendments be made to the Code.
G The Relevant Ministers have agreed, in accordance with section 6 of
Schedule I of the Gas Pipelines Access Law, to amend the Code as set
out in this Agreement.

Operative Provisions
1. Interpretation

1. 1 This Agreement may be referred to as the National Third Party Access Code for
Natural Gas Pipeline Systems: Fourth Amending Agreement.
1.2 In this Agreement, unless the contrary intention appears, capitalised terms not
otherwise defined have the meaning given in the Code and:
Code means the National Third Party Access Code for Natural Gas Pipeline
Systems set out in Schedule 2 to the Gas Pipelines Access (South Australia) Act
1997 (as amended) and Schedule 2 to the Gas Pipelines Access (Western Australia)
Act 1998 (as amended); and
Parties means the parties to this Agreement.
2. Commencement
Clauses 3, 4, 5, 6, 7, 8 and 9 of this Agreement have effect on and from the day on which a copy of this Agreement is published in the South Australian Government Gazette.

3. Amendment of section 1

3. 1 In section 1.20 insert the words "or proposed Pipeline" after "A Pipeline" in the
first line.
3.2 In section 1.21 insert the word "proposed" immediately after "competitive tender
the" in the second line.

3.3 In section 1.22:

(a) for the heading substitute "Opinion of NCC in respect of proposed
Pipelines"; and

(b) delete the word "Prospective" before "Service Provider" in the first line.
4. Amendment of section 2

4. 1 For section 2.3 substitute:

2.

3

If a Pipeline or proposed Pipeline is not Covered, a Service Provider may apply to the Relevant Regulator for approval of an Access Arrangement by submitting the

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11 July 2003

proposed Access Arrangement to the Relevant Regulator together with the
applicable Access Arrangement Information. For the purposes of a proposed
Access Arrangement submitted under this section 2.3, the term "Covered Pipeline"
in the Code includes a Pipeline or proposed Pipeline the subject of the proposed
Access Arrangement.

4.2	For section 2.49 of the Code substitute:
2.49 An Access Arrangement that has become effective may be changed only pursuant

to this section 2 or pursuant to the implementation of an Approved Reference
Tariff Variation Method as provided for in sections 8.3B to 8.3H.

Amendment of section 3

For section 3.12 of the Code substitute:
3.12 In respect of:

(a) a Covered Pipeline that is a Transmission Pipeline; and
(b) any other Covered Pipeline if the Relevant Regulator so requires, taking into account:

(i) the nature of the Covered Pipeline;
(ii) the Services likely to be sought by Prospective Users; and
(iii) any other matters that the Relevant Regulator considers are relevant,
an Access Arrangement must include a policy for determining the priority that a Prospective User has, as against any other Prospective User, to obtain access to Spare Capacity and Developable Capacity (and to seek dispute resolution under section 6) where the provision of the Service sought by that Prospective User may
impede the ability of the Service Provider to provide a Service that is sought or
which may be sought by another Prospective User (a Queuing Policy).

Amendment of section 5

Renumber paragraphs (a), (b) and (c) of section 5.9 as (c), (d) and (e) respectively.
For the first line of section 5.9 substitute:
5.9 In respect of:

(a) a Covered Pipeline that is a Transmission Pipeline; and

(b)

any other Covered Pipeline if the Relevant Regulator so requires, taking into account:

(i) the nature of the Covered Pipeline;
(ii) the Services likely to be sought by Prospective Users; and

(iii)

any other matters that the Relevant Regulator considers are relevant,
the Service Provider must establish and maintain a public register which includes:

Amendment of section 7

7.

1

For section 7.9(a)(i) substitute:

(i) each proposed Access Arrangement or proposed revisions of an Access
Arrangement and each proposed variation of a Reference Tariff pursuant
to the implementation of an Approved Reference Tariff Variation
Method;

11 July 2003 GOVERNMENT GAZETTE, WA 2823

7.2 For section 7.9(a)(iii) substitute:

(iii) each submission received by the Relevant Regulator in relation to the
Access Arrangement, revisions to the Access Arrangement or a proposed
variation of a Reference Tariff pursuant to the implementation of an
Approved Reference Tariff Variation Method;

7. 3 In section 7.9(a)(v) insert the words "variation or proposed variation of a
Reference Tariff pursuant to the implementation of an Approved Reference Tariff
Variation Method," after "proposed revisions to an Access Arrangement,".
7.4 In section 7.9(a)(vi) insert the words "or proposed Pipeline" immediately after "a
description of the Pipeline".
8. Amendment of section 8
For section 8.3 of the Code and its heading substitute:
Form of Regulation and Variation of Reference Tariff

8.

3

Subject to section 8.3A and to the Relevant Regulator being satisfied that it is consistent with the objectives contained in section 8.1, the manner in which a Reference Tariff may vary within an Access Arrangement Period through the implementation of a Reference Tariff Policy is within the
discretion of the Service Provider. For example, the Reference Tariff
Policy may specify that Reference Tariffs will vary within an Access
Arrangement Period through the implementation of:

(a) a Cost of Service Approach;
(b) a Price Path Approach;
(c) a Reference Tariff Control Formula Approach;
(d) a Trigger Event Adjustment Approach; or
(e) any variation or combination of the above.
8.3A A Reference Tariff may vary within an Access Arrangement Period only
through implementation of the Approved Reference Tariff Variation
Method as provided for in sections 8.3B to 8.3H.

8.3B (a) If a Specified Event occurs the Service Provider must, within the

time provided for in the Reference Tariff Policy, provide a notice
to the Relevant Regulator containing the information set Out in
section 8.3C.

(b) If the Service Provider otherwise wishes to vary a Reference Tariff
in accordance with the Approved Reference Tariff Variation
Method, the Service Provider must provide a notice to the
Relevant Regulator containing the information set out in
section 8.3C.

8.3C The Service Provider's notice under section 8.313 must contain:

(a) the Service Provider's proposed variations to the Reference Tariff
and the proposed effective date for those variations; and
an explanation of how the variations proposed are consistent with
the Approved Reference Tariff Variation Method contained in the
Reference Tariff Policy.
Notwithstanding any other section of the Code, the Relevant Regulator must make public, and must provide the Code Registrar with a copy of, any information provided under paragraphs (a) and (b) above.

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GOVERNMENT GAZETTE, WA

11 July 2003

8.3D Unless the Relevant Regulator has disallowed the variation under section 8.3E, the Reference Tariff will be varied automatically on and from the
later of:

(a) the date specified in a notice from the Service Provider given in accordance with section 8.3B;
(b)

(i) if the Reference Tariff Policy specifies a minimum notice period for the variation, the expiry of that period after the date of the notice from the Service Provider given in accordance with section 8.3B; or
(ii) if the Reference Tariff Policy does not specify a minimum
notice period for the variation, 35 days after the date of
the notice from the Service Provider given in accordance
with section 8.313,
but if, before the end of the relevant period in paragraph (i) or (ii) above, the Relevant Regulator notifies the Service Provider that it requires additional information from the Service Provider, which the Relevant Regulator has reason to believe may assist the
Relevant Regulator to determine whether the variations proposed are consistent with the Approved Reference Tariff Variation Method, the relevant period will be extended by the number of days commencing on the day on which the Relevant Regulator gave notice to the Service Provider and ending on the day on which the Relevant Regulator receives the additional information from the Service Provider.

8.3E The Relevant Regulator may, by notice to the Service Provider before the with, or not permitted under, the Approved Reference Tariff Variation Method, the Relevant Regulator may specify a variation that is consistent with the Approved Reference Tariff Variation Method. Any such variation comes into effect on the date determined in accordance with section 8.31). variation is due to come into effect under section 8.3D, disallow a

variation of a Reference Tariff. The Relevant Regulator may disallow a
variation only if the Relevant Regulator considers, on reasonable grounds,
that the proposed variation is inconsistent with, or not permitted under,
the Approved Reference Tariff Variation Method. If the Relevant

8.3F The Relevant Regulator must publish its reasons for:

(a)

allowing a variation of a Reference Tariff (including if the variation is allowed because of the effluxion of time under section 8.313);
(b) disallowing a variation of a Reference Tariff; or

(c)

specifying any variation specified by the Relevant Regulator under section 8.3E,
at the time of allowing, disallowing or specifying that variation.

8.3G If a Specified Event occurs and the Service Provider does not serve a notice on the Relevant Regulator as required by section 8.3B(a), then the Relevant Regulator may itself vary the Reference Tariff concerned but only in accordance with the Approved Reference Tariff Variation Method. Any such variation comes into effect on the date specified in, or determined in accordance with, the Access Arrangement. The Relevant Regulator must publish its reasons for any variation of the Reference Tariff made under this section 8.3G at the time of making that variation.

11 July 2003 GOVERNMENT GAZETTE, WA 2825
8.3H The Relevant Regulator may:

(a) on application by the Service Provider, grant extensions to any time period in sections 8.3B to 8.3G that applies to the Service Provider; and
(b) extend any time period in section 8.3G that applies to the Relevant Regulator.

9. Amendment of section 10

9. 1 Insert the following new definitions in section 10.8 of the Code:
Approved Reference Tariff Variation Method means the Reference Tariff Variation Method or Methods specified in a Reference Tariff Policy in an Access Arrangement.
Reference Tariff Variation Method means a method of varying a Reference
Tariff during an Access Arrangement Period, including, without limitation:

(a) a Cost of Service Approach;
(b) a Price Path Approach;
(c) a Reference Tariff Control Formula Approach; and
(d) a Trigger Event Adjustment Approach.
Cost of Service Approach means a Reference Tariff Variation Method whereby initial Reference Tariffs are set on the basis of the anticipated costs of providing the Reference Services and are adjusted continuously in light of actual outcomes (such as sales volumes and actual costs) to ensure that the Reference Tariffs recover the actual costs of providing the Reference Services.
Price Path Approach means a Reference Tariff Variation Method whereby Reference Tariffs are determined in advance for the Access Arrangement Period to follow a path or paths over time forecast to deliver a revenue stream, with that price path or paths not being adjusted to account for subsequent events until the commencement of the next Access Arrangement Period.
Reference Tariff Control Formula Approach means a Reference Tariff Variation Method whereby an initial set of Reference Tariffs may vary over the Access Arrangement Period in accordance with a specified formula or process.

triggering a variation in a Reference Tariff pursuant to the Approved Reference Specified Event means an event that is specified in a Reference Tariff Policy as
Tariff Variation Method.
Transmission Pipeline has the meaning given in the Gas Pipelines Access Law.
Trigger Event Adjustment Approach means a Reference Tariff Variation
Method whereby Reference Tariffs are varied in the manner specified in a
Reference Tariff Policy upon the occurrence of a Specified Event.

9.2

In the definition of "Covered Pipeline" insert the words "or proposed Pipeline" immediately after "a Pipeline" and before "which is Covered" in the second line.
9.3 Delete the definition "Prospective Service Provider".
10. Counterparts
This Agreement may consist of a number of counterparts and if so the counterparts taken together constitute one and the same instrument.

2826	GOVERNMENT GAZETTE, WA	11 July 2003
SIGNED by

Senator The Honourable Nick Minchm	)
Minister for Industry, Science and	)
Resources of the Commonwealth of	)
Australia	)
The Honourable Kim Yeadon MP	)
Minister for Energy of the State of New	)
South Wales	)
The Honourable Candy Broad MLC	)
Minister for Energy and Resources and	)
Ports of the State of Victoria	)
The Honourable Terry Mackenroth MP,	)
Deputy Premier, Treasurer and Minister	)
for Sport of the State of Queensland	)
The Honourable Wayne Matthew MP,	)
Minister for Minerals and Energy,	)
Minister assisting the Deputy Premier of	)
the State of South Australia	)
The Honourable Eric Ripper MLA	)
Deputy Premier, Treasurer and Minister ) for Energy of the State of Western Australia)
The Honourable Paul Lennon MHA )

Minister for Infrastructure, Energy and

)

Resources of the State of Tasmania	)
Mr Brendan Smyth MLA, Minister for	)
Urban Services of the Australian Capital	)
Territory	)

The Honourable Paul Henderson MLA, ) Minister for Resource Development of the )

Northern Territory of Australia

)

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Citations

National Third Party Access Code for Natural Gas Pipeline Systems - Fourth Amending Agreement (WA)

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\	On 7 November 1997, the Parties signed the Natural Gas Pipelines Access Agreement with the objective of establishing a uniform national framework for third party access to natural gas pipelines.
B	Under the Natural Gas Pipelines Access Agreement, the Parties agreed upon a uniform "Gas Pipelines Access Law", which included a "National Third Party Access Code for Natural Gas Pipeline Systems".

E	Section 6 of Schedule I of the Gas Pipelines Access Law and section 9 of the Code establish a procedure whereby the Code may be amended.
F	On 5 September 2001, in accordance with section 9 of the Code and section 6(1) of Schedule I of the Gas Pipelines Access Law, the National Gas Pipelines Advisory Committee recommended to Relevant Ministers that certain amendments be made to the Code.
G	The Relevant Ministers have agreed, in accordance with section 6 of Schedule I of the Gas Pipelines Access Law, to amend the Code as set out in this Agreement.

1.	1	This Agreement may be referred to as the National Third Party Access Code for Natural Gas Pipeline Systems: Fourth Amending Agreement.
1.2	In this Agreement, unless the contrary intention appears, capitalised terms not otherwise defined have the meaning given in the Code and:
Code means the National Third Party Access Code for Natural Gas Pipeline
Systems set out in Schedule 2 to the Gas Pipelines Access (South Australia) Act 1997 (as amended) and Schedule 2 to the Gas Pipelines Access (Western Australia) Act 1998 (as amended); and
Parties means the parties to this Agreement.

3.	Amendment of section 1
3.	1	In section 1.20 insert the words "or proposed Pipeline" after "A Pipeline" in the first line.
3.2	In section 1.21 insert the word "proposed" immediately after "competitive tender the" in the second line.

7.	3	In section 7.9(a)(v) insert the words "variation or proposed variation of a Reference Tariff pursuant to the implementation of an Approved Reference Tariff Variation Method," after "proposed revisions to an Access Arrangement,".
7.4	In section 7.9(a)(vi) insert the words "or proposed Pipeline" immediately after "a description of the Pipeline".
8.	Amendment of section 8
For section 8.3 of the Code and its heading substitute:

time provided for in the Reference Tariff Policy, provide a notice
to the Relevant Regulator containing the information set Out in
section 8.3C.
(b)	If the Service Provider otherwise wishes to vary a Reference Tariff in accordance with the Approved Reference Tariff Variation Method, the Service Provider must provide a notice to the Relevant Regulator containing the information set out in section 8.3C.

(a)	allowing a variation of a Reference Tariff (including if the variation is allowed because of the effluxion of time under section 8.313);
(b)	disallowing a variation of a Reference Tariff; or
(c)	specifying any variation specified by the Relevant Regulator under section 8.3E,

(a)	on application by the Service Provider, grant extensions to any time period in sections 8.3B to 8.3G that applies to the Service Provider; and
(b)	extend any time period in section 8.3G that applies to the Relevant Regulator.

(a)	a Cost of Service Approach;
(b)	a Price Path Approach;
(c)	a Reference Tariff Control Formula Approach; and
(d)	a Trigger Event Adjustment Approach.

triggering a variation in a Reference Tariff pursuant to the Approved Reference	*Specified Event* means an event that is specified in a Reference Tariff Policy as
Tariff Variation Method. *Transmission Pipeline* has the meaning given in the Gas Pipelines Access Law. *Trigger Event Adjustment Approach* means a Reference Tariff Variation Method whereby Reference Tariffs are varied in the manner specified in a Reference Tariff Policy upon the occurrence of a Specified Event.

9.2	In the definition of "Covered Pipeline" insert the words "or proposed Pipeline" immediately after "a Pipeline" and before "which is Covered" in the second line.
9.3	Delete the definition "Prospective Service Provider".