*GAS SUPPLY ACT 1993

This Act shall apply throughout Malaysia; however the

Minister may by order suspend the operation of the whole or any of the provisions of this Act in any State.

This Act shall apply to the supply of gas to consumers through pipelines—

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In subsection (3)—

“city gate station” means a station with gas measurement and pressure-regulating facilities where gas is received directly from the gas transmission pipelines and subsequently delivered through the gas pipeline distribution system for the supply of gas to the consumer;

“transmission pipelines” means pipelines transporting gas from the outlet of the gas processing plant or receiving terminal to the inlet of the city gate station.

Interpretation

The Commission shall carry out such functions and duties as follows:

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The functions and duties of the Commission may at any time be carried out by any officer of the Commission duly appointed in writing by the Commission for such purpose.

(Deleted by Act A1126).

In exercising his powers under subsection (1) an authorized officer may—

If upon such inspection or examination the authorized officer finds any defect, which he has reasonable cause to believe is likely to cause danger, he may—

In every case where information is given on oath to any

Magistrate that there is reasonable cause for suspecting that there is in any land, house or building any article, thing, book, document, pipeline, installation or part thereof which has been used to commit or is intended to be used to commit any offence under this Act or any regulation made thereunder, he shall issue a warrant under his hand by virtue of which any authorized officer named or referred to in the warrant may enter the land, house or building at any reasonable time by day or night, and search for and seize or seal any such article, thing, book, document, pipeline, installation or part thereof:

Provided that if the authorized officer is satisfied upon information received that he has reasonable grounds for believing that by reason of delay in obtaining a search warrant, any article, thing, book, document, pipeline, installation or part thereof used to commit or intended to be used to commit an offence under this Act or any regulation made thereunder is likely to be removed or destroyed, he may enter such land, house or building without a warrant and seize or seal any such article, thing, book, document, pipeline, installation or part thereof found therein:

Provided further that it shall be an offence for any person without lawful authority to break, tamper with or damage such seal or remove any such article, thing, book, document, pipeline, installation or part thereof or to attempt so to do.

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Any authorized officer may in the exercise of his powers under subsection (4), if it is necessary so to do—

The authorized officer seizing any article, thing, book, document, pipeline, installation or part thereof under subsection (4)

shall prepare a list of the things seized and forthwith, or as soon as is practicable, deliver a copy signed by him to the occupier, or his agents or servants present in the premises and if the premises are unoccupied, such authorized officer shall, wherever possible, post a list of the things seized on the premises.

An authorized officer shall at all times carry an official identification card or badge in such form as may be prescribed, and no person shall be obliged to admit to his land, house or building any person purporting to be an authorized officer except upon production of the identification card or badge.

Powers of investigation

Any authorized officer may, in relation to any investigation in respect of any offence committed under this Act or any regulation

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made thereunder, exercise the special powers in relation to police investigation except that the power to arrest without warrant given by the Criminal Procedure Code [Act 593] in any seizable offence may not be exercised by him.

Upon completion of his investigation, the authorized officer shall immediately give all information relating to the commission of the offence to an officer in charge of a police station and a police officer may, by warrant, arrest any person who may have committed an offence under this Act or any regulation made thereunder.

Power to require attendance of person acquainted with case

If any such person fails to attend as so required, the authorized officer may report such failure to a Magistrate who shall issue a summons to secure the attendance of such person as required by such order aforesaid.

Examination of person acquainted with case

Such person shall be legally bound to answer all questions relating to such case put to him by the authorized officer:

Provided that such person may refuse to answer any question the answer to which would have a tendency to expose him to a criminal charge or penalty or forfeiture.

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A person making a statement under this section shall be legally bound to state the truth, whether or not such statement is made wholly or partly in answer to questions.

The authorized officer obtaining information from a person shall first inform that person of the provisions of subsections (2) and

.

A statement made by any person under this section shall, whenever possible, be reduced into writing and signed by the person making it or affixed with his thumb print, as the case may be, after it has been read to him in the language in which he made it and after he has been given an opportunity to make any corrections he may wish.

Prosecution

The Commission, with the approval of the Minister, may grant a licence for the supply of gas through pipelines on such conditions as may appear to be requisite or expedient having regard to the duties imposed by section 4 and on payment of such fee as may be prescribed by the regulations made under this Act.

Any person applying for a licence shall submit to the

Commission, whenever applicable, the following details:

No licence shall be capable of being transferred, assigned, sub-licensed or otherwise disposed of unless the written consent of the Minister has been given.

Licences may be for such periods as the Minister may in each case approve.

Any licence granted under this section may extend to the determination of the area of supply by the Commission.

Subject to the approval of the State Authority, any licence granted under this section may authorize the licensee to lay, place or carry on, under or over State land, to the extent and in the manner specified in the licence, such pipelines and installations and to erect and maintain in or upon State land such other equipment as may in the opinion of the Commission be necessary or proper for the purposes of the licence, and subject always to the approval of the

State Authority, the said authorization may be given or added to at any time during the currency of the licence by endorsement thereon under the seal of the Commission.

Security, suspension or revocation of the licence

A licence may at any time be suspended or revoked by the

Commission upon breach of any of the conditions thereof or in default of payment of any moneys accrued due thereunder, or if the licensee ceases to construct or operate the pipeline or installation which he was authorized to do under the licence granted to him:

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Provided that where a licence has been suspended or revoked under this subsection the licensee may, if he considers that he has suffered or may suffer undue hardship by reason of the suspension or revocation, appeal to the Minister against the suspension or revocation, as the case may be, and the decision of the Minister on the appeal shall be final.

The licensee shall not be entitled to compensation for any loss of revenue caused to him by the suspension or revocation of a licence under this section.

Upon the suspension of a licence, the Commission may—

If the Commission is satisfied that the licensee has complied with the requirement under paragraph (4)(a) the suspension may be lifted and the licensee may be allowed to continue the construction or operation of the pipeline or installation, as the case may be. If the

Commission is not satisfied, the Commission may revoke the licence.

Upon revocation of a licence, the Commission may—

If a licence is revoked under this section the security shall be forfeited as the Commission deems fit.

In subsection (1)—

“operational costs” means all costs calculated by the Commission to be the costs of operating the supply of gas through any pipeline or installation including wages, costs of fuel, spare parts, labour charges and lubricants but not including capital costs or loans.

A proposal for tariff under subsection (1) may include—

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A tariff approved pursuant to subsection (1)—

In fixing tariffs pursuant to subsection (1) and in making agreements for the supply of gas under subsection 18(1), a licensee shall not show undue preference or discrimination as among consumers or persons similarly situated having regard to the place and time of supply, the quantity of gas supplied and the purpose for which the supply is taken.

In this section—

“standing charge” means a fixed charge approved by the

Commission for the provision of the supply of gas and includes the cost to maintain the system.

Duty to supply on request

give a supply of gas to those premises; and

provide all things as may be reasonably necessary for that purpose.

Where any person requires a supply of gas under subsection

he shall give to the licensee a notice specifying—

Where a licensee receives from any person a notice under subsection (2) requiring him o give a supply of gas to any premises and—

A notice under this subsection shall—

In this section and in sections 15 to 18 of this Part—

it is contrary to any law;

under the agreement or special agreement, as the case may be, he is so exempted;

he is prevented from doing so by the malfunction or failure of any pipeline or installation beyond his control,

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or as a result of fire, flood, landslide, explosion, accident, industrial disturbance on a national level, emergency, riot, civil disturbance or war, or any other similar event not within the control of the licensee;

a supply of gas is already being given; or

the Commission is of the opinion that it is not reasonable in all the circumstances for him to be required to do so.

Nothing in the agreement referred to in paragraph (1)(b)shall provide for any exception from the duty to supply gas other than a situation where he is prevented from so supplying by reason of fire, flood, landslide, explosion, accident, industrial disturbance on a national level, emergency, riot, civil disturbance or war, or any other similar event not within the control of the licensee which directly affects or which will affect his ability to supply gas.

Power of licensee to recover expenses

The expenses reasonably incurred in providing any pipeline or installation under subsection (1) include the capitalized value of any expenses likely to be so incurred in maintaining it, if such expenses cannot be recovered by the licensee as part of the tariffs levied by him for the supply.

The expenses incurred in providing any pipeline or installation from the outlet of the meter to the internal piping within the premises shall be borne by the person requiring the supply.

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Power of licensee to require security

in respect of the supply of gas; and

in respect of any necessary work to be done for the supply of gas, and if the person fails to give such security, the licensee may, if he thinks fit, refuse to give the supply or to provide the pipeline or installation until the security has been given.

Where the person has not given the security in subsection (1)

or the security given by the person has become insufficient, the licensee may by notice require the person, within seven days after the service of the notice, to give him reasonable security for the payment of all moneys which are due to him in respect of the supply and if the person fails to give such security, the licensee may, if he thinks fit, discontinue the supply until the security is given.

Return of security with interest

Any term in such agreement in relation to tariff shall be submitted to the Commission for the purpose of subsection 13(4).

Where any agreement made pursuant to subsection (1)

remains effective, the provisions of sections 13 to 17 do not apply:

Provided that the provisions of subsection 14(2) shall however apply for the purposes of specifying the day on which the supply of gas is required to commence and the day on which such an agreement ceases to be effective.

Charge for supply of gas to be ascertained by appropriate meter

The meter, to be provided by the licensee, whether by way of sale, hire or loan, shall be of the type approved by the Commission or by any other relevant government body appointed by the Commission for that purpose.

The meter shall be installed on the consumer’s premises in a position to be determined by the licensee, unless in certain circumstances it is more reasonable to place it outside the premises or in some other position.

If the consumer refuses or fails to have his supply of gas through the appropriate meter provided and installed in accordance with subsections (2) and (3) the licensee may refuse to give or may discontinue the supply.

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Reduction or cessation of supply: liability

Without prejudice to any agreement, where the quantity of gas has been reduced as aforesaid—

Any licensee shall not be liable for any damage to any person or property for any cessation or reduction of the supply of gas—

The licensee shall be liable for any damage to any person or property for any cessation or reduction of the supply of gas which is shown to have resulted from negligence on the part of persons employed by the licensee, his agents or servants, as the case may be, or from his faulty construction of the pipeline or installation.

Without prejudice to subsection (4) the licensee shall rectify any damage to ensure continuation of the supply of gas within a reasonable period of time and to repair any damage from the outlet of the meter to the internal piping within the consumer’s premises if it is shown to have resulted from the negligent act of the licensee, his agents or servants, as the case may be.

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Disconnection of supply of gas

Upon disconnection under subsection (1), the licensee shall immediately inform the Commission of the disconnection.

Upon receiving the information under subsection (2) the

Commission shall immediately direct an authorized officer to inspect such premises and as soon as practicable after such inspection, the

Commission shall form an opinion—

Where the Commission forms an opinion under subsection (3)

that an offence has been committed an investigation under sections 5

and 6 shall be carried out. Upon completion of investigation, if it discloses no commission of any offence, the supply of gas shall be reconnected immediately and any loss incurred by any party may be referred to the Commission for adequate compensation to be paid pursuant to an inquiry held under section 29.

If an offence has been committed, the licensee may require the consumer to pay him for any loss of revenue due to the offence committed under subsection 30(5), 30(6), 30(7) or 30(9) and any

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expenses incurred by the licensee under this section including expenses incurred in respect of the reconnection of gas supply.

A written statement by the licensee or any person authorized by the licensee specifying—

The amount stated in the written statement or decided by the

Commission shall, within the period specified in the statement, be due and payable to the licensee and in default of payment such amount shall be recoverable by civil action in a court.

Liabilities unaffected

Nothing herein contained shall be deemed to authorize any person to cut down or clear away any vegetation or any fence or other erection or to enter into any building or upon any enclosure attached to any building.

In the case of reserved land, the notice under subsection (1)

may be given to the officer or any other person in charge of the reserved land, or, in the absence of any such officer or person, to the

District Land Administrator.

Power to enter on land for purposes of construction

Before entering on any land for the purpose specified in subsection (1), the licensee shall give a notice stating as fully and accurately as possible the nature and extent of the acts intended to be done. The notice shall be substantially in the form set out in the First

Schedule. The District Land Administrator shall specify a date upon which the State Authority shall inquire into any objection that may have been made as hereinafter provided.

The aforesaid notice shall be given—

Any of the persons mentioned in subsection (3) may, within fourteen days of the receipt of the notice therein referred to, lodge an objection to the intended acts of the licensee. The objection may be made to the District Land Administrator, either verbally or in writing, and the District Land Administrator shall give notice of the objection to the State Authority and to the licensee.

If no objection is lodged within the time limited for that purpose by subsection (4), the licensee may forthwith enter on the land and do all or any of the acts specified in the notice given under subsection (2).

If an objection is lodged and is not withdrawn before the date fixed for the hearing thereof, the District Land Administrator shall hold an inquiry, giving all parties an opportunity to be heard.

Upon the conclusion of the inquiry the District Land

Administrator may, either unconditionally or ubject to such terms, conditions and stipulations as he thinks fit, make an order authorizing or prohibiting any of the acts mentioned in the notice given under subsection (2). The order shall be substantially in the form set out in the Second Schedule:

Provided that any party who is dissatisfied with the District Land

Administrator’s order may within twenty-one days after the order appeal against such an order to the State Authority which may then

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uphold, set aside or vary the order upon such terms, conditions and stipulations as it thinks fit.

The State Authority may, if it thinks fit, in lieu of making an order under subsection (7), direct the acquisition of any land or part of any land included in a notice given under subsection (2).

The decision of the State Authority under this section shall be final.

Notwithstanding any written law relating to land matters, the

Registrar—

If the licensee omits to comply with the requisition, the person may apply in writing to the State Authority which may, in its discretion, after inquiring into all the facts of the case, reject the application or make an order, either absolutely or subject to certain conditions, for the removal or alteration of the pipeline or installation.

The order shall provide for the payment of the cost of executing the removal or alteration by the licensee or by the person making the application, as the State Authority may consider equitable in the circumstances of the case.

The State Authority may, instead of itself inquiring into a case under subsection (2) direct the District Land Administrator to make such inquiry on its behalf and to make recommendations to it.

Whenever the State Authority has made an order for the removal or alteration of any pipeline or installation, the licensee may, instead of removing or altering the pipeline or installation, apply to the State Authority to direct the acquisition of such land as is required for the purposes of the pipeline or installation, and the State

Authority may direct the acquisition accordingly.

Whenever the State Authority is authorized by this section to direct the acquisition of any land, the pipeline or installation shall be deemed to be a work for public utility and any written law relating to

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land acquisition in force in the State where the land is situated shall be enforced accordingly.

Whenever a pipeline or installation has been installed on State land by a licensee and the land is subsequently alienated to any person, the owner or occupier of the land may, unless the terms of alienation expressly provide otherwise, require the removal of the pipeline or installation to another part of the land, or to land at a higher or lower level, or the alteration of the pipeline or installation, and subsections (1) to (4) shall apply to any such requisition:

Provided that the cost of executing the removal or alteration shall be defrayed by the person making the requisition.

Wayleave agreements

Notwithstanding any written law relating to land, the

Registrar, upon the production to him of the original and the deposit with him of a certified copy of any such wayleave agreement as is referred to in subsection (1), shall cause to be made on the register document of title relating to the land affected by the wayleave agreement a note of the existence of the wayleave agreement.

Where a wayleave agreement relates to land which is a holding included in the Interim Register—

So long as there remains on the register document of title or the appropriate folio of the Interim Register a note made pursuant to subsection (2) or (3), all dealings with the land to which the note relates shall be deemed to be subject to the rights of the licensee under and by virtue of the wayleave agreement in respect of which the note has been made.

In this section—

“Commissioner” and “Interim Register” have the meanings assigned thereto respectively by the National Land Code (Penang and

Malacca Titles) Act 1963.

Compensation

Any person aggrieved with the District Land Administrator’s

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assessment may within twenty-one days after the assessment appeal to the State Authority whose decision shall be final.

The Commission shall—

A committee of inquiry referred to in paragraph (2)(b) shall consist of three members led by a person appointed by the Minister.

For the purposes of such inquiry, the committee may summon any person to attend any meeting of the said committee to give evidence on oath or produce any document or thing in his possession related to matters which are the subject matter of such inquiry and to examine him as a witness.

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Any person who, under subsection (4)—

The committee shall, on completion of the inquiry, determine the dispute and make an order accordingly.

Pending the determination of any dispute on the service of supply of gas between a licensee and a consumer the licensee shall, unless otherwise directed by the Commission, continue to give the supply of gas until the determination of the dispute.

Any person who feels aggrieved by a decision of the

Commission under subsection (2) or a decision by the committee under subsection (6) may apply to the Minister for reconsideration of the matter in dispute.

The application to the Minister shall be made in writing within twenty-one days from the date of the decision of the

Commission, or within such further period as the Minister may in special circumstances allow, and shall contain the grounds of grievance.

The Minister shall then determine the dispute and make an order accordingly and his decision shall be final.

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