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Chapter 1 General Provisions
Article 1
The Natural Gas Enterprise Act (henceforth the Act) is
instituted to advance further development of natural gas
enterprises, protect rights and interests of consumers, and
ensure the public interest.
Article 2
The “Competent Authorities” stated in this Act are the
Ministry of Economic Affairs (the “MOEA”) as the central
level, municipal governments hence on municipal level, and
the county (city) governments hence on county (city) level.
(henceforth the AUTHORITIVE structure)
Article 3
Definitions of terms used in the Act:
1. “Natural Gas”: Refers to gas that are mixtures of
hydrocarbon compounds originating from below ground
level containing no less than eighty percent of methane.
2. “Natural Gas Enterprise”: Refers to the enterprises
engaged in the production of NG, importation of NG,
and public natural gas utilities. (henceforth the
ENTERPRISES)
3. “Natural Gas Production Enterprise”: Refers to enterprises
producing natural gas to supply public natural gas utilities,
industrial sectors, power plants, cogeneration system or
transportation sectors, etc. (henceforth the PRODUCER)
4. “Natural Gas Import Enterprise”: Refers to enterprises
importing liquefied natural gas to supply public natural gas
utilities, industrial sectors, power plants, cogeneration system
or transportation sectors, etc. (henceforth the IMPORTER)
5. Natural gas utility enterprise: Refers to enterprises which
supply natural gas to households, commercial sectors, and
service businesses via natural gas conduit network. (henceforth
the UTILITY)
6. Public natural gas conduits installation enterprise: Refers to
enterprises which undertake the installation of gas conduits for
natural gas utility enterprises and users, and also the conduit
safety and maintenance. (henceforth the CONDUIT INSTALLER)
7. Transmission and storage Facilities: Refers to following
Facilities installed by natural gas enterprises for provisions:
(henceforth the FACILITIES)
(1)Storage Facilities: Refers to FACILITIES for natural gas
storage, including spherical type tanks and tube type tanks
(henceforth the STORAGE)
(2)Transmission and distribution Facilities: Refers to
transmission pipelines, booster stations, regulator stations,
and other relevant equipment installed from the production
or provision sources (henceforth the TRANSMISSION)
(3) Blending Facilities: Refers to FACILITIES for blending
air or hydrocarbon gases to adjust heating value the natural
gas provided. (henceforth the BLENDER)
(4)Regasification Facilities: Refers to FACILITIES for purpose
as to regasify LNG into gaseous state. (henceforth the REGASFIER)
(5)Unloading Facilities: Refers to FACILITIES for the unloading
of LNG at the LNG receiving terminals. (henceforth the TERMINAL)
Chapter 2 Registration and Permission
Article 4
The organization of ENTERPRISE for natural gas should be
a company limited by shares incorporated pursuant and in
accordance with the Company Act.
Those bodies without the Republic of China (Taiwan) nationality
shall not be the founders, directors, or supervisors of an
ENTERPRISE.
Article 5
ENTERPRISES in operation should Submit an application
form with the following documents to the central competent
authorities for registration:
1. Corporate registration documents.
2. Map of Plant location.
3. Installation capacity per annum and projects for production
or treatment.
4. Documentation for qualified inspections for FACILITIES
5. Layout and capacities of FACILITIES.
6. Leasing contractors should provide proof as evidence to
show if the Processing plant and/or FACILITIES are leased.
IMPORTER should Submit an application form with the
following documents to the central competent authorities for
registration:
1. Corporate registration certificate.
2. Location of TERMINALS and its projected carrying/handling
capacity.
3. Import and supply plans.
4. Documentation for qualifying inspections of FACILITIES.
5. Layout and capacities of FACILITIES.
6. Leasing contractors should provide proof as evidence to
show if the FACILITIES are leased.
Article 6
For establishment as a UTILITY provider, the applicant
must Submit an application form with the following
documents to the AUTHORITIES of the municipal
government or the county (city) governments for their
annotation and review and forward to the central competent
authorities for permission:
1. Business planning and scheduling
2. TRANSMISSION and STORAGE layout plans.
3. Drawings of pipeline installation plans provided as of
1/10,000 scale.
4. Gas supplying regional map as of 1/10,000 scale.
Following items should be stated clearly in the application
form prescribed in the preceding Section:
1. Name of the Enterprise, Location and business address
2. Name of the party in charge, date of birth in YY/MM/DD,
residential address, and Personal Identification documents.
Following items should be stated clearly in the Business
planning prescribed in Section 1, Sub-Section 1:
1. Capital
2. Natural gas procuring project
3. Supplying areas.
4. Capacity of gas supply.
5. The number of regional supplying households, the
amount of gas supplied alongside with calculation bases
of each gas supply area.
6. Gas supply starting date of each gas supply area.
7. Items for transmission, storage equipment and total
investment amount.
8. Projections of operational revenues, expenses and
financial projects.
9. Transmission and storage equipment maintenance project.
10. Outcome analysis and risk assessment.
Article 7
AUTHORITIES of the municipal governments or the
county (city) governments should publicize the application
of UTILITY establishments prescribed in the preceding
Section upon the receiving of it; the publication period is
30 days. The publication must specify that those who
apply for establishment in the same gas supply region
should Submit their applications within the publication
period prescribed in the preceding Article, at the same
time paying the deposit, and Submit the documents prescribed
in the preceding Article within 60 days after the publication
has expired.
Upon the receiving the application prescribed in the preceding
Section, the AUTHORITIE must conduct a review, provide a
written report, and notify the central competent authorities along
with original application form and relevant documents for review.
The amount or method of payment, conditions of reimbursement
and confiscating of the deposit prescribed in Section 1 would be
validated by the central competent authorities.
Article 8
The division of gas supply areas of natural gas utility enterprises
should be on the basis of a district in the case of municipalities,
and the basis of districts or townships in the case of counties
(cities), adjustments made by the central competent authorities
for the following reasons are exceptions:
1. Alteration of the administrative district.
2. Economic effectiveness.
3. The original operator fails to provide sufficient natural
gas to users in the approved gas supply areas. Also if failing
to expand equipment or take other corrective measures
before the deadline set by the authorities.
4. Other special needs.
Natural gas utility enterprises may not supply gas beyond
their gas supply area without permission from the central
competent authorities.
Article 9
Natural gas utility enterprises should do the following
procedures after obtaining the establishment permit:
1. Corporate registration: complete corporate registration
within 4 months after the date of obtaining the establishment
permit.
2. Installing transmission and storage equipment: starting
construction within 1 year from the date of obtaining the
establishment permit.
3. Applying for gas supply operations: Submit application
for gas supply operation within 3 years of obtaining the
establishment permit.
Those unable to abide by deadlines prescribed in the preceding
Section with due reasons may apply for an extension. The
extension period of Sub-Section 1, Sub-Section 2, and Sub-
Section 3 of the preceding Section should not exceed 2 months,
6 months, and 1 year respectively and should be limited to
once per application. Nevertheless, delay days not attributed
to the natural gas utility enterprise would be deducted from
the calculation of the extension period.
The application of extensions prescribed in the preceding
Section should be commented by authorities of the municipal
government or the county (city) governments before notifying
the central competent authorities for approval.
The central competent authorities would revoke the
establishment permit of those failing to apply for corporate
registration, installing transmission and storage equipment,
or Submit gas supply operation application before the
deadline prescribed in the Section 1 and 2.
Article 10
When natural gas utility enterprises apply for gas supply
operations, they must attach the following documents in
the application for the approval of central competent
authorities for gas supply business licenses via authorities
of the municipal government or the county (city) governments:
1. Corporate registration documents.
2. Identification documents of the responsible party.
3. Certificate of paid-in capital.
4. Transmission and storage equipment, location
qualification documents of inspection.
5. Three copies of the map of gas supply areas.
6. The map of transmission and storage equipment
location.
7. Gas supply starting date.
Documentation prescribed in Sub-Section 4 of the preceding
Section must be processed according to following prescriptions:
1. The Public natural gas utilities shall obtain the
qualification documentation of equipment and location
showing to be in accordance to labor safety, hygiene,
and fire safety-regarding statutes and regulations from
the relevant authorities.
2. When there is equipment and location other than that
prescribed in the preceding Sub-Sections, natural gas utility
enterprises must obtain qualification documentation of
inspection from authorities of the municipal government
or the county (city) governments after consulting with
relevant authorities or civil inspection institutions approved
by the authorities.
The qualifications, conditions, approving procedures,
approval revocation, and relevant items of civil inspection
institutions prescribed in Sub-Section 2 of the preceding
Section would be provided by the central competent authorities.
When deciding to issue gas supply business licenses to
natural gas utility enterprises, the Central competent
authorities should take into account whether the pipelines
of the applicant will pass through any primary streets of
the implicated gas supply area.
Article 11
The gas supply business license prescribed in Section 1
of the preceding Article should clearly state following items:
1. The name of the enterprise and where the primary
branch office is located.
2. Responsible party.
3. Paid-in capital amount.
4. Supplying areas.
When any of the items stated in the license prescribed
in the preceding Section has been altered, natural gas
utility enterprises must attach relevant documents in the
application from for gas suppler business license renewal
to the Central competent authorities via authorities of the
municipal government or the county (city) governments.
Article 12
When the documents attached in the application for
establishment permit or gas supplier business license if the
applications are not complete, the authorities would ask
the natural gas utility enterprise to complete the make-up
procedure before a specified date. If the applicant has not
completed the application before the deadline set by the
authorities, its application would be rejected.
Chapter 3 Equipment and Safety
Article 13
Material, testing, installation, and other safety regulations-
regarding affairs of natural gas enterprise’s transmission and
storage equipment must meet national standards or relevant
regulations; in cases where there isn’t any national standard
or relevant regulation; standards recognized by other
progressive countries approved by central competent
authorities will apply.
Natural gas enterprises should institute disaster prevention
measures–including devices on the transmission and storage
equipment in accordance to the prescriptions provided by
the authorities.
Natural gas utility enterprises must install regional gas
supply system with immediate blockage devices on the
transmission and storage equipment.
The installation location of natural gas enterprise’s storage,
mixing, gasification, and unloading equipment should
abide by geological safety regulations.
The regulations of scope, items, and procedures of progressive
countries provided in Section 1 as well as installation method,
maintenance and other prescriptions prescribed in Section 2
would be stipulated by the central authorities.
Article 14
Natural gas utility enterprises must hire a certain number of
full-time qualified pipeline-installation staff to take charge
of pipeline constructions and relevant safety maintenance affairs.
The qualification, number, hiring or replacement, and other
relevant affairs of qualified natural gas pipeline-installation
staff will be prescribed in the preceding Section and reviewed
by the central competent authorities.
Article 15
Before expanding or replacing primary transmission and
storage equipment, natural gas utility enterprises should
apply for approval via authorities of the municipal government
or the county (city) governments to the central authorities.
The preceding paragraph does not apply to any temporary
expansion or replacements due to disaster, damage, or urgent
accidents.
In the case of exceptions mentioned in the preceding Section,
natural gas utility enterprise should report measures already
taken via authorities of the municipal government or the
county (city) governments to the central competent authorities
within 1 month of the occurrence from the date of the disaster,
damage, or accident.
The central competent authorities may commission items
prescribed in the preceding 2 Sections to approve or take
into record for account when regarding it as necessary to
the authorities of the municipal government or the county
(city) governments.
Article 16
When transmission and storage equipment has risk of causing
disasters, natural gas enterprises should immediately take
necessary precautions or improving measures.
When a fire accident or other disasters occur near transmission
and storage equipment, natural gas enterprises should assign
technical staff to take preventive measures also posting clear
signs around the site area; enterprises may also stop partial or
entire gas supply, or demolish transmission and storage equipment
that would pose hazard.
Article 17
When disasters, urgent accidents or circumstances prescribed
in the preceding Article occur, natural gas enterprises should
report to the authorities of note.
The regulations regarding reported criteria, deadlines, forms,
procedures, and other relevant items prescribed in the preceding
Section should be in accordance with the central competent authorities.
Article 18
Natural gas utility enterprises should inspect conduct-pipe
among the meters and user’s devices or compliances, hence
when receiving the user’s application for gas supply, and
thus starting the supply after making sure there is no safety
concern.
Natural gas utility enterprises should stipulate the inspection
methods and procedures prescribed in the preceding Section,
including the items, methods, standards, and other relevant items,
and report via authorities of the municipal government or the
county (city) governments to the central authorities; the reported
ruling also applies when public natural gas utilities are revised or
the any items mentioned.
Article 19
Natural gas supplied by natural gas enterprises should meet
national standards.
Natural gas supplied by natural gas utility enterprises should add
odorous Substance for purposes of sniff recognition. Items and
contents of the added odorous Substance should be periodically
reported to the authorities of the municipal government or the
county (city) governments.
The report forms, items, contents, and expiring date of odorous
Substances prescribed in the preceding Section should be
promulgated by the central competent authorities.
Article 20
Before operation, natural gas utility pipeline-installation
enterprises should apply for licenses from authorities of the
municipal government or the county (city) governments.
Natural gas utility pipeline-installation enterprises should
hire a certain number of full-time qualified natural gas
pipeline-installation staff.
The regulations of licensed application, revision, withdrawal
and revocation, requirements, procedures, and business scope
of voluntary or statutory business suspensions, qualifications,
number, hiring or replacement of qualified staffs and other
prescribed items of natural gas utility pipeline-installation
enterprises should be in accordance with the standards set
by the central authorities.
Chapter 4 Land
Article 21
When natural gas enterprises have to procure or rent land for
the installation of transmission and storage equipment other
than gas transmission equipment, they may report to authorities
of the municipal government or the county (city) governments
and ask for their reconciliation with other relevant authorities.
Article 22
When natural gas enterprises require the use of roads, rivers,
ditches, bridges, embankments, woodlands, green spaces,
parks, or other lands, facilities that are designated for public
use, or public land and any overpass or underpass for the
installation of transmission or storage equipment, they
should obtain prior approval from relevant authorities;
natural gas enterprises may also report to authorities of the
municipal government or the county (city) governments
of where the equipment is located and require assistance
for any conciliation; if necessary, natural gas enterprises may
also require help from the central authorities.
Article 23
When natural gas utility enterprises regard it as necessary,
they may install pipelines around the outer edge of lands not
of their own or buildings by notifying the owner or user in
written form in advance; the owner or user may apply to the
authorities of the municipal government or the county (city)
governments for conciliation if she (he) does not agree to the
installation; if the conciliation fails, natural gas utility enterprises
may still install the pipelines after getting the approval from
authorities of the municipal government or the county (city)
governments and notifying the owner or user in written form
7 days before starting installation.
The notification prescribed in the preceding Section may be
replaced by public notice if natural gas enterprises encounter
severe difficulties regarding notifications prior sent in written form.
The installation of pipelines prescribed in Section 1 should be
conducted on lands where damage is least possible and in the
most caution, providing repair or compensation when necessary.
Article 24
When the owner or user of lands or buildings on which
pipelines installed by natural gas utility enterprises
prescribed in the preceding Article finds it necessary
to modify the usage of lands or to expand existing
limits , she (he) may ask the natural gas utility enterprise
to relocate the pipelines; the expenses of relocating
pipelines are shared under mutual agreement; if both
parties fail to reach an agreement, they may apply to
authorities of the municipal government or the county
(city) governments for mediation; if the mediation fails,
they may further the issue via other legal procedures.
Article 25
Natural gas utility enterprises may enter into or use other
lands or buildings when they find it necessary for pipeline
installation, inspection, or maintenance with a 7-day prior
written notice to the owner or user. However, when any
form of disaster, damage, or urgent accidents occurs, the
preceding paragraph does not apply.
Natural gas utility enterprises using lands or buildings
according to the preceding Section may not destroy the
terrain or geomorphology and construct any fixtures;
hence they should compensate those who receive damage
due to entering or usage of their lands or buildings; if
there are any disagreement regarding the compensation
project, natural gas utility enterprises should receive
approval from authorities of the municipal government
or the county (city) governments before executing their
compensation.
Article 26
Gas transmission pipelines should be installed underground
in principle; if natural gas enterprises find it necessary to
install the pipelines on or over the ground, they should take
in account regarding the transportation, irrigation, agriculture,
landscape, or other relevant affairs on ground usage and
safety of lands at the same time.
Article 27
Being recognized by the central competent authorities as
necessarily required to install or maintain pipelines for
supplying gas to natural gas utility enterprises, natural
gas production or import enterprises may apply Article
23 to the preceding Article.
Chapter 5 Management
Article 28
Natural gas utility enterprises should contract with their
suppliers, prescribing mutual obligations, gas supply
calorific value, pressure, supply amount, metering point,
pricing methods, and other items abided by both parties.
If necessary, the authorities may ask natural gas utility
enterprises to offer the content of contract prescribed
in the preceding Section.
Article 29
Natural gas utility enterprises should refer items regarding
their services in the Articles of Operation and receive the
approval from authorities of the municipal government
or the county (city) governments before carrying them into
effect. Authorities of the municipal government or the
county (city) governments should report their approval
with relevant data to the central competent authorities;
when the Articles of Operation are revised, the preceding
paragraphs apply as of note.
Items which have to be prescribed in the Articles of
Operation also models for Articles of Operation should
be reviewed by the central authorities.
Natural gas utility enterprises should publicly notify their
Articles of Operation approved by authorities of the
municipal government or the county (city) governments,
also have them published on local newspapers 10 days
prior to the day they are carried into effect, and making
them available at business premises for the users to inspect;
when the Articles of Operation are revised, the preceding
paragraphs apply.
When there are social, economic changes, and when the
items prescribe in the Articles of Operation are obviously
no longer appropriate, thus obstructing the realization of
public interest, damaging the user’s right or interest, or
obliviously unfair, the authorities may notify natural gas
utility enterprises to revise the Articles of Operation
within a limited period.
Article 30
Without due reasons, natural gas utility enterprises may
not refuse claims to supply natural gas in their gas supply
areas.
Article 31
Natural gas production or import enterprises should
maintain a steady gas supply, and store sufficient
supply amounts to meet their user’s demands.
Natural gas production or import enterprises should
store a minimum defined days of tank capacity on their own.
The tank capacity prescribed in the preceding Section
should be reviewed by the central competent authorities.
Article 32
The sell price calculation of natural gas production or
import enterprise’s supply should be approved by the
central competent authorities.
Before the approval is prescribed in the preceding Section,
the central competent authorities should invite scholars,
experts, civil groups such as consumer protection
organizations and hold a review panel to review the sell
price calculation method, and launch a hearing according
to the Administrative Procedure Act if necessary.
When the sell price is approved according to Section 1
alters, the enterprises should publicly notify in advance
and report to the central competent authorities 3 days
prior the date of price alteration; if the calculations of
sell price is unreasonable, the central competent authorities
may order the enterprises to make proper adjustment.
The price calculation methods, cost structure, sale price,
and relevant data of natural gas production or import
enterprise’s supply should be kept for 5 years; the central
competent authorities may inspect or ask for to offer items
prescribed in the preceding paragraph if necessary therefore
enterprises should not evade, obstruct, or decline.
Natural gas production or import enterprises with other
business operations should establish separate accounting
systems to calculate assets, revenues, costs, profits and losses
respectively.
Article 33
Natural gas utility enterprises may supply natural gas to other
sectors, yet should not affect the stable supply of gas to families,
commercial businesses, and service sectors at the same time.
In the above case, the natural gas utility enterprise should
summit to the authorities of the municipal government or the
county (city) governments with the following documents,
and a notification shall be transited to the central competent
authority for reference.
1. Name of the users.
2. Daily peak loaded volumes.
3. Transmission and storage equipment in use.
In case of supplying natural gas to the user according to
Section 1, natural gas utility enterprises should establish
accounting items which calculate the profit and loss
respectively, and may not perform cross subsidies or cross
complements.
Article 34
For selling natural gas to families, commercial and service
sector businesses, the natural gas utility enterprises shall
calculate the sales prices and basic fees in accordance with
the calculated regulations, and summit to the authorities of
the municipal government or the county (city) governments
with the relevant documents. The applications shall be
transited to the central competent authority and obtained
the approval from the authority before in force. Any
adjustment of sales prices and/or basic fees should be
processed following the above procedures.
The central competent authority has the right to order the
natural gas utility enterprises to reexam the gas sales prices
and/or basic fees in a time period, and following the
preceding procedures to obtain the central competent
authority’s approval.
The calculated regulations including the components of
sales prices and basic fees, the calculating formula, the
reviewing time period and the supporting data shall be
ruled by the central competent authority. If necessary,
the central competent authority should hold a review panel
in accordance with the Section 2 of Article 32 to assist in
reviewing the calculated regulations.
Before the central competent authority approve the gas
sales prices and basic fees based on the section 1, it
should hold a review panel in accordance with the
Section 2 of Article 32 to assist in reviewing the
calculations.
When the gas purchasing cost fluctuates, natural gas
utility enterprises should synchronously adjust their
natural gas sale price according to the amount of
fluctuated cost, and report to authorities of the
municipal government or the county (city) governments
within 7 days from the date of adjustment. Authorities
of the municipal government or the county (city)
governments should notify the central competent
authorities when they receive the report.
Article 35
Natural gas utility enterprises may charge fees from
the users when they install natural gas pipeline equipment
for families, commercial businesses and service sectors;
natural gas utility enterprises should charge fees
according to fee charging regulations and report to the
central competent authorities via authorities of the
municipal government or the county (city) governments.
Authorities of the municipal government or the county
(city) governments should announce the name lists of
qualified natural gas pipeline installation enterprises for
users to choose from in the commission of in-building
pipeline equipment installations.
Natural gas utility enterprises may not start supplying
natural gas unless they complete inspections on the
equipment installed by natural gas pipeline installation
enterprises.
Fee charging regulation prescribes in Section 1 should
be reviewed by the central competent authorities.
Article 36
In order to secure consumers’ household safety, the
central competent authorities should formulate natural
gas utility enterprises’ for promoting projects of
computerized gas metering systems and carry out the
project year by year, the computerized gas metering
system should be included with functions of auto shut-
down for earthquakes or below set supply pressure,
linking capability, remote reading, and so on.
Article 37
Natural gas utility enterprises should maintain normal
full-day gas supply; if natural gas utility enterprises
encounter forces majeure or urgent accidents and
regard it as necessary to suspend entire or partial gas
supply over 8 hours, they should obtain approval from
the central competent authorities in advance and notify
their users 3 days before the date of suspension; if the
gas supply suspension lasts over 7 days, natural gas
utility enterprises should obtain approval from the
authorities of the municipal government or the county
(city) governments, and report to the central competent
authorities.
When the natural gas utility enterprises suspend the
gas supply due to forces majeure or urgent accidents
prescribed in the preceding Section, they should report
to the local government within 3 days from the date
which accidents have occurred.
Article 38
When natural gas utility enterprises enlarge or replace
their primary transmission and storage equipment after
starting gas supply and operation, they should attach
certificates prescribed in Article 10, Section 1, Sub-
Section 4 after completion and reporting to the central
competent authorities via authorities of the municipal
government or the county (city) governments.
Article 39
When a natural gas utility enterprise merges with other
businesses, all merging parties should clearly state
business names, responsible persons, location of the
primary branch office, paid-in capital amount, and
gas supplying areas after merging in the application
form, and attach merging operation projects as well
as relevant documentation to request approval from
the central competent authorities , and carry out the
merging projects according to relevant statutes and
regulations.
Article 40
When a natural gas utility operates other businesses at
the same time, it should seek approval from the central
competent authorities via authorities of the municipal
government or the county (city) governments, and may
not affect gas supply operations.
When a natural gas utility enterprise operates other
businesses at the same time, it should establish an
accounting system which calculates assets, revenues,
costs, profits and losses respectively.
Article 41
The amount of paid-in capital of natural gas utility
enterprises should not be lower than 35% of the original
acquiring cost of current transmission and storage
equipment. If a natural gas utility enterprise’s amount
of paid-in capital is lower than the preceding amount,
the paid-in capital should be increased within 3 months
from the date when the fact happens.
Before natural gas utility enterprises alter their paid-in
capital, they should Submit the project and request for
approval from the central competent authorities via
authorities of the municipal government or the county (city)
governments and run the alteration procedures according
to relevant statutes and regulations.
The authorities may ask for explanations of the project
prescribed in the preceding Section or send staff to inspect;
Public natural gas utilities may not evade, obstruct, or
decline the authorities’ request for explanation or inspection.
The forms and items of the project prescribed in Section 2
should be reviewed by the central competent authorities.
Article 42
Natural gas utility enterprises’ reinvestment of other
businesses may not affect their normal operation of
gas supply; natural gas utility enterprises reinvesting on
other businesses should report the investment items and
amount to and ask for approval from the central competent
authorities via authorities of the municipal government
or the county (city) governments prior to any reinvestment
project coming into effect.
Article 43
Natural gas utility enterprises should establish accounting
system according to Accounting Standards and Regulations
and stimulate Accounting Procedures Manual and report to
the central competent authorities via authorities of the
municipal government or the county (city) governments;
when the Manual is revised, the preceding paragraph applies.
The Accounting Standards and Regulations prescribed
in the preceding Section should be stimulated by the central
competent authorities.
Natural gas utility enterprises should send accounting
statements periodically to authorities of the municipal
government or the county (city) governments and central
competent authorities respectively according to accounting
processing regulation prescribed in Section 1.
The central or authorities of the municipal government or
the county (city) governments may ask natural gas utility
enterprises to explain or send staff to inspect accounting
statements prescribed in the preceding Section when they
regard it as necessary, and natural gas utility enterprises
may not evade, obstruct, or decline.
Article 44
Natural gas enterprises have an obligation to insure public
liability insurance；the insurance coverage should be
decided by central competent authorities after conferring
with the Financial Supervisory Commission according to
the categories and business scale of the natural gas enterprise.
Chapter 6 Supervision
Article 45
In the event of a natural gas shortage or great fluctuation in
prices that might affect the steady supply of domestic
natural gas or national security, the central competent
authorities may carry out regulatory measures that
are mandatory regarding natural gas supply and sell price.
The conditions, timing, procedures, applying object,
scope, content and methods of the regulatory measures
prescribed in the preceding Section should be reviewed
by the central competent authorities.
Article 46
Natural gas utility enterprises should review gas supply
projects yearly, stating the growth of users, amount of gas
supplied, length of pipelines installed, gas supply region,
and other relevant data, and ask for approval from the
central competent authorities via authorities of the municipal
government or the county (city) governments, and carry out
the projects conscientiously; the authorities may inspect the
gas supply projects when they regard it as necessary.
The content, forms, Submit deadlines, and other relevant
items should be publicly notified by the central competent
authorities.
Article 47
Natural gas enterprises should establish a transmission and
storage geographical information management system based
on relevant data of transmission and storage equipment,
updating the data within the system properly, and periodically
sending the data to the authorities of the municipal government
or the county (city) governments or central competent
authorities ; therefore authorities of all levels may be notified,
hence natural gas enterprises should update the data within
a limited period when they regard it as necessary.
The forms, items, authorities to receive data and the deadlines
of geographical information system data prescribed in
the preceding Section should be reviewed by the central
competent authorities.
Article 48
Natural gas utility enterprises should periodically inspect
the pipelines of families, commercial businesses, and
service sectors, and state the results. If the result does not
meet the requirements, they should notify the users to apply
correcting measures by a specified deadline; the preceding
paragraphs apply either if the user requests natural gas utility
enterprises to run the inspection.
When the user declines the inspection prescribed in the
preceding Section, and natural gas utility enterprises find
it posing safety concerns, natural gas utility enterprises may
forcibly run the inspection with staff from relevant authorities
after the approval of authorities of the municipal government
or the county (city) governments.
Entities other than that of the natural gas utility enterprises
may not run the inspection prescribed in Section 1. However,
public natural gas utilities may commission natural gas
pipeline installation enterprises to run the inspection.
Staffs running the inspection prescribed in Section 1 and
staffs commissioned to run the inspection prescribed in the
preceding Section should initiatively show their identification
when running inspections of this type.
The items, periods, operating methods, billing items, and price
calculation items of inspection prescribed in Section 1 should
be stated clearly on the operating rules of natural gas utility
enterprises after approved by the Central competent authorities
via authorities of the municipal government or the county (city)
governments. However, natural gas utility enterprises may not
charge families when running periodical inspections.
When running these inspections prescribed in Section 1, Public
natural gas utilities may not promote or sell any form of goods.
Article 49
Natural gas enterprises should periodically inspect gas
transmission pipelines self-installed by enterprises of
industry, electricity, cogeneration systems or transportation
users, and state the result; if the result does not meet the
requirements, natural gas enterprises should notify the
users to take improvement measures.
Items, periods, price calculating methods, and operation
rules of periodical inspections should be approved by the
Central competent authorities via authorities of the municipal
government or the county (city) governments.
Article 50
Natural gas enterprises should run periodical inspections
on their transmission and storage equipment on their own,
record the results, and preserve them for 5 years for the
authorities to inspect.
Natural gas enterprises should report their periodical
inspection items and operating rules prescribed in the
preceding Section to the central authorities; the preceding
paragraph applies when natural gas enterprises revise
their inspection items or operating rules.
The Central competent authorities should inspect
transmission and storage equipment of natural gas
production or import enterprises, and authorities of the
municipal government or county (city) governments
should inspect transmission and storage equipment
of natural gas utility enterprises at least once a year;
the authorities may inspect randomly if they deemed
it as necessary.
The authorities may delegate or commission checking
businesses prescribed in the preceding Section to
Subordinates or other agencies.
Natural gas enterprises may not evade, obstruct, or
decline the inspections prescribed in Section 1 and 3.
Article 51
When natural gas enterprises find that their gas transmission
pipelines are eroded or showing any signs that pose safety
concerns, they should replace them at once.
The authorities may assign staff or commission professional
institutions to inspect the gas transmission pipelines of natural
gas enterprises; and the enterprises may not evade, obstruct,
or decline.
Natural gas enterprises should draft their gas transmission
pipelines inspection and replacement projects for the next
year before October 31th of every year, and report to the
Central competent authorities via authorities of the municipal
government or the county (city) governments.
Article 52
The central competent authorities may request natural
gas enterprises for explanation their business operations
and financial balance, hence assigning various staff ,
commission professionals and/or professional institute
to inspect actual operational proceedings and collect
relevant data when they regard it as necessary; the
enterprises concerned may not evade, obstruct, or refuse.
Article 53
Natural gas enterprises should report the supply
amount, user categories, household numbers monthly,
and the balance of payments as well as profits and
losses every six months to the central competent
authorities.
The report items, forms, periods, and other obligations
prescribed in the preceding Section should be reviewed
by the central competent authorities.
Article 54
Natural gas utility enterprise should set aside the reserve
fund for gas transmission pipeline replacement and deposit
it in a special account created in financial institutions;
natural gas utility enterprise should report the special
account and the name of the financial institution where
the account was created to authorities of the municipal
government or the county (city) governments; authorities
of the municipal government or the county (city) governments
should refer natural gas utility enterprise’s preceding and
report to the central competent authorities .
The method, ratio, and condition for use of the reserve
fund for gas transmission pipeline replacement set aside
according to the preceding Section should be reviewed
by the central competent authorities.
Article 55
If a natural gas utility enterprise has operational
difficulty due to poor management or insufficient
amounts of transmission and storage equipment,
which could lead to its incapability of maintain a
sufficient full-day normal gas supply prescribed
in Article 37, Section 1, authorities of the municipal
government or the county (city) governments should
ask natural gas utility enterprise to take improvement
measures within a limited period. If the natural gas utility
enterprise is unwilling or unable to improve effectively
to the standard, authorities of the municipal government
or the county (city) governments may report to the central
competent authorities and suggest to replace responsible
personnel or revoke their gas supply operation license;
the central competent authorities may coordinate other
natural gas utility enterprises to take over in advance
when they regard it as necessary.
Chapter 7 Penalty
Article 56
Any party who endangers public safety by causing
natural gas leakages would be sentenced to imprisonment
for not more than 5 years, short-term detention; in lieu
thereof, or in addition thereto, a fine between NT$ 500,000
and 1,000,000.
If the offense charged in the preceding Section results
in death, the offender would be sentenced to life
imprisonment or imprisonment for more than 7 years;
in addition thereto, a fine not more than NT$ 10,000,000;
if the offence charged in the preceding Section results in
serious physical injury, the offender would be sentenced
to imprisonment between 3 and 10 years; in addition
thereto, a fine not more than NT$ 5,000,000 will be
prescribed.
Any party who negligently committed an offence
specified in Section 1 would be sentenced to imprisonment
for not more than 2 years, short-term detention; in lieu
thereof, or in addition thereto, a fine between NT$ 200,000
and 400,000.
Any of the responsible persons, agents, employees, or
other parties of the legal individuals who commit
crimes indicated in the preceding 3 Sections when
performing duties would be punished respectively;
and the legal individual itself will also be Subjected
to the fine prescribed in the preceding Sections.
Article 57
One who does not hold a gas supply license according
to Article 10, Section 1 but arbitrarily operates any sort
of businesses of natural gas utility enterprises would be
fined between NT$ 3,000,000 and 15,000,000 and
ordered to cease the gas supply.
Article 58
A natural gas utility enterprise violating Article 8,
Section 2 and arbitrarily supplying gas beyond the
gas supply areas would be fined between NT$ 600,000
and 3,000,000, and would be ordered to take improving
measures within a limited period. Any natural gas utility
enterprise failing to comply by the deadline will be fined
until satisfactory improving measures are taken. If the
offense is of a serious nature, the authorities may also
forcibly demolish transmission and storage equipment
beyond the gas supply area.
Article 59
Any of the following offenses by a natural gas enterprise
will result in a fine between NT$ 500,000 and 2,500,000
and ordered to take improving measures within a limited
period. Any natural gas enterprise failing to comply by the
deadline will be fined until satisfactory improving measures
are taken. If the offense is of a serious nature, the authorities
may also revoke the establishment permit and gas supply
license when a natural gas utility enterprise commits the
offense:
1. Supplying natural gas which does not meet national
standards in violation of Article 19, Section 1.
2. Not abiding by Article 28, Section 2 to offer data
regarding the contract content.
3. Not abiding by Article 31 in keeping steady gas supply.
4. Not abiding by Article 32, Section 1 to request the
authorities’ approval for price calculation, or not abiding
by Section 3 to adjust according to the central competent
authorities’order.
5. Not abiding by Article 33, Section 2 in reporting to the
authority.
6. Not abiding by Article34, Section 1 and arbitrarily
adjusting the sale price or basic fees.
7. Not abiding by Article 34, Section 2 to request the
authorities’ approval for price calculation.
8. Not abiding by Article 41, Section 1 to increase the
paid-in capital amount before the deadline.
9. Not abiding by Article 44, to insure public liability
insurance or to meet the requirements of insurance coverage.
10. Violating the regulatory measures taken according to
Article 45.
Article 60
Any of the following offenses by a natural gas enterprise
will result in a fine between NT$ 300,000 and 1,500,000
and be ordered to take improving measures within a limited
period. Any natural gas enterprises failing to comply by
the deadline will be fined until satisfactory improving
measures are taken. If the offense is of a serious nature,
the authorities may also revoke the establishment permit
and gas supply license when a natural gas utility
enterprise that commits the offense:
1. Not abiding by Article 13, Section 2 to install disaster
prevention–devices.
2. Not abiding by Article 13, Section 3 to install regional
gas supply systems with immediate severing devices on
the transmission and storage equipment.
3. Not abiding by Article 16, Section 1 to take immediately
necessary or improving measures.
4. Failing to inspect the pipelines and ensuring their safety
before the starting of gas supply in violation of Article 18,
Section 1.
5. Failing to report the items and density of added odorous
Substance in violation of Article 19, Section 2, or the density
of added odorous Substance are lower than the reported.
6. Not abiding by Article 32, Section 4 to preserve or offer
data, or to evade, obstruct, or decline the inspection from
the authorities.
7. Not abiding by Article 35, Section 1 to charge pipeline
equipment fees according to fee charging regulations.
8. Evading, obstructing, or declining the inspection in
violation of Article 51, Section 2.
Article 61
Any of the following offenses by a natural gas enterprise
will result in a fine between NT$ 200,000 and 1,000,000
and ordered to take improving measures within a limited
period. Any natural gas enterprise failing to comply by
the deadline will be fined until satisfactory improving
actions are taken. If the offense is of a serious nature,
the authorities may also revoke the establishment permit
and gas supply license when a natural gas utility enterprise
commits the offense:
1. Failing to hire a certain number of full-time pipe-installation
professional staff in violation of Article 14, Section 1.
2. Failing to report to the authorities in violation of Article
17, Section 1, or failing to report according to the deadlines,
forms, or procedures prescribed in Article 17, Section 2.
3. Evading, obstructing, or declining explanations or
inspections in violation of Article 41, Section 3, Article 43,
Section 4, Article 50, Section 5, or Article 52.
4. Failing to review a gas supply project, and obtaining the
authorities’ approval before the deadline, or to carry out the
projects conscientiously in violation of Article 46, Section 1.
5. Not abiding by Article 50, Section 1 to run periodical
inspections on their own, record or to preserve the results.
6. Not abiding by Article 51, Section 1 to replace obsolete
gas-transmission pipelines.
7. Not abiding by Article 54, Section 1 to create a special
account, or set aside the reserve for gas transmission pipeline
replacement in full amount.
Article 62
Any of the following offenses by a natural gas enterprise
will result in a fine between NT$ 100,000 and 500,000 and
be ordered to take improving measures within a limited period.
Any natural gas enterprise failing to comply by the deadline
will be fined until satisfactory improving measures are taken:
1. Not abiding Article 5 to register before doing business.
2. Failing to apply for issuance of a new business license in
violation of Article 11, Section 2.
3. Failing to obtain approval from the authorities in violation
of Article 15, Section 1, Article 35, Section 1, Article 40,
Section 1, Article 41, Section 2, Article 42, Article 48,
Section 5, or Article 49, Section 2.
4. Failing to report to the authorities in violation of Article 15,
Section 2, Article 34, Section 3, Article 38, Article 43,
Section 1, Article 50, Section 2, Article 51, Section 3,
or Article 54, Section 1.
5. Failing to Submit operational rules to and obtain the
approval from authorities of the municipal government
or the county (city) governments in violation of Article 29,
Section 1, or failing to revise the operating rules before
the deadline specified by the authorities in violation of
Section 4.
6. Failing to publicly notify or report to the Central
competent authorities in time would be in violation of
Article 32, Section 3.
7. Failing to obtain approval from or report to the
authorities or notify the users is in violation of Article 37.
8. Failing to establish transmission and storage
geographical information management system or
update data in time is in violation of Article 13,
Section 4 or Article 47, Section 1.
9. Failing to inspect periodically or state the results
is in violation of Article 48, Section 1 or Article 49,
Section 1.
10. Failing to report is in violation of Article 53,
Section 1.
Article 63
One who does not obtain a license according to
Article 20, Section 1 and arbitrarily operates businesses
of a natural gas utility pipeline installation enterprise
would be fined between NT$ 300,000 and 1,500,000;
the preceding paragraph applies to one who does not
abide by the business suspension order from the
authorities either.
One who fails to hire a certain number of full-time natural
gas pipeline installation professional staff would be fined
between NT$ 30,000 and 150,000 and ordered to take
improving measures by a specified deadline. Any natural
gas enterprise failing to comply by the deadline will be
fined until satisfactory improving measures are taken.
Article 64
A natural gas utility whose business license has been
revoked according to Article 55 and Article 59 to 61，
would be notified regarding the cancellation of the
license; The central competent authorities would
cancel the license directly if the previous license fails
to be canceled.
Chapter 8 Supplementary Provisions
Article 65
The central competent authorities coordinates the other
natural gas utility enterprises to take over the business of
the original natural gas utility enterprise whose business
license has been revoked according to Article 55 and
Article 59 to 61. Transmission and storage facilities owned
by the original utility would be on a pay base compensation
to provide a constant supply of gas continuously.
Article 66
A natural gas utility enterprise who intends to expand
its gas supply region, Article 6 to 12 would be applied.
Article 67
Any operation of a natural gas enterprise already
underway before this Act comes into effect, who was
not in compliance with any provision of this Act,
must be brought into compliance with this Act within
1 year from the date this Act comes into effect.
Article 68
Any operation of businesses of a natural gas utility
enterprise underway holding coal-gas business licenses
according to other regulations before this Act comes
into effect should apply for a temporary gas supply
business license within 1 year after the date this Act
comes into effect. One who fails to apply for a temporary
license or meet licensing conditions would have the
original coal-gas business licenses revoked by the central
competent authorities through a public notification. Any
party who continues to supply gas after the coal-gas
business license is revoked would be punished according
to Article 57.
A natural gas utility enterprise obtaining the temporary
gas supply business license according to the preceding
Section must apply for a gas supply permit from the
central competent authorities 2 years after the end date
of 1 year period noted in Section 1. One who fails to
obtain the permit by the dateline would have its temporary
gas supply business license revoked upon the date of the
period noted in Section 1, and it’s gas supply areas taken
over by other natural gas utility enterprises under
coordination from the central authorities’. Transmission
and storage equipment owned by the original utility
enterprise would be kept in use and used to supply gas
on a paid basis as compensation.
Article 69
Safety technicians hired by natural gas utility enterprises
or full-time technicians hired by natural gas utility pipeline
installation enterprises before this Act comes into effect
may obtain qualifications of natural gas pipeline installation
professionals via passing a special technician skills certification
test held by the central skill certification authorities.
Safety technicians or full-time technicians hired under the
preceding Section not qualified under Article 14, Section
2 or Article 20, Section 3 may still be hired by the original
enterprises to process businesses regarding gas supply
pipeline installation and relevant safety maintenance 5
years after the date this Act comes into effect.
The regulation of special skill certification prescribed
in Section 1 would be reviewed by the central competent
authorities after conferring with the central skill
certification authorities.
Article 70
Article 4 regarding organization types of an enterprise,
and Article 6 to 12 regarding the permit of an enterprise,
Article 13 to 19 regarding equipment safety of an enterprise,
Article 21 to 27 regarding lands of an enterprise, Article
28 to 30 and Article 33 to 35, Article 37 to 44 regarding
the enterprises management, Article 45 to 55 regarding
the supervision of an enterprise, and Article 65 to 69 can
be applied to via enterprises who supply propane - air
mixture fuel gas for natural gas appliances in certain
area and/or districts where the gas provider’s transmission
and storage facilities have not been installed.
Violating regulations mentioned in the preceding paragraph
would be punished according to Article 56 to 64.
Article 71
Portions regarding gas and natural gas enterprises
prescribed in the Act on the Supervision of Privately-
Own Public Utilities and Energy Management Law
should not apply upon since the date this Act comes into effect.
Article 72
This Act shall come into force on the date of promulgation. |