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Title: Petroleum Administration Act Ch
Date: 2014.06.04
Legislative: 1.Promulgated by Presidential Decree on October 11, 2001
2.Promulgated and executed after revision by Presidential Decree
on January 16, 2008
3.Amended on January 21, 2009
4.Promulgated and executed after revision by Presidential Decree
on January 26, 2011
5.Promulgated and executed after revision by Presidential Decree
on June 4, 2014
Content: Chapter  1 General Provisions
Article 1
The Petroleum Administration Act (henceforth the Act) is being instituted
to promote the sound development of the oil industry, to safeguard the
production and sales of oil, to ensure the steady supply of oil, to enhance
people’s livelihoods, and to develop the national economy while at the same
time give equal consideration to environmental protection.

Article 2
Definitions of terms used in the Act:
1. Oil: Refers to petroleum crude oil, bituminous crude oil, and petroleum
products.
2. Petroleum crude oil: Refers to naturally occurring crude oil that is mixtures
of hydrocarbon compounds that contain mainly paraffin hydrocarbon,
cycloparafin hydrocarbon, and aromatic hydrocarbon.
3. Bituminous crude oil: Refers to crude oil extracted from bituminous
minerals.
4. Petroleum products: Refers to products that are used primarily as energy
and obtained from oil through the process of distillation, refining, or blending
or production with using hydrocarbon as raw materials that designated by
central competent authority. These include gasoline, diesel oil, kerosene, naphtha,
liquefied petroleum gas (LPG), jet fuel, and fuel oil.
5. Renewable oil products: It indicated the reusing materials that recycled
from the domestic waste or others according to the environmental protection
law, after processing to produce the petroleum materials and used as fuel.
6. Oil refinery: Refers to a business that uses oil as its raw material to engage in
the manufacture of petroleum products through the process of distillation, refining,
or blending.
7. Gasoline station: Refers to a business place with an oil storage facility and
metered fuel-servicing equipment installed so that gasoline or diesel oil can be
supplied for use in motor vehicles, machinery, and other purposes.
8. LPG station: Refers to a business place with a gas storage facility and metered
gas-servicing equipment installed so that the built-in container of a vehicle can
be filled with LPG.
9. Fishing boat filling station: Refers to a business place with an oil storage
facility and flow meters installed so that the built-in oil tank of a fishing boat
can be filled with fuel.
10. Oil storage facility: Refers to a structure specifically for oil storage that has
both a top lid and walls and is situated either above or below ground. It must
also have a use permit pursuant to the provisions stipulated in the Building Law.
For structures that do not fall under the provisions of the Building Law where
a use permit applies, the approval of the competent authorities that have
jurisdiction over the business is required.
11. Suppliers of LPG: Refers to oil refineries, oil importers, oil exporters, LPG
stations, LPG wholesale distribution industries, LPG packing industries, and
LPG retailers.
12. LPG wholesale distribution industries: Refers to the industries wholesale
LPG, which is obtained from oil refineries and oil importers, to LPG packing
industries.
13. LPG packing industries: Refers to the industries that have a gas storage
facility and packing equipments, filling gas into LPG gas cylinders.
14. LPG retailers: Refers to the sale of LPG cylinders to users.
The criteria for petroleum products mentioned in Items 1, 4, and 6 of the
preceding paragraph will be promulgated by the central competent authority
after conferring with the agencies concerned.

Article 3
The competent authorities referred to in the Act are the Ministry of Economic
Affairs on the central level, the municipal governments on the special municipality
level (Taipei and Kaohsuing), the county, or city governments on the county or
city levels.

Chapter  2 Oil Refining
Article 4
An oil refinery must be a limited liability corporation and meet the following
requirements:
1. Have installed oil distillation, refining, and blending equipment.
2. Have installed or leased an oil storage facility which has a capacity greater
than the security stockpile prescribed in Article 24 herein.

Article 5
In order to set up an oil refinery, an establishment permit must be obtained from
the central competent authority. This entails submitting an application that
states the following particulars:
1. Plant location along with the size of the distillation, refining, blending, and
oil storage facilities as well as the construction schedule and the plant completion
date.
2. Principal products and the annual capacity for those products.
3. Two-year production and sales plan following the initiation of production.
This plan must include oil refining, import, export, sales, and storage plans.
4. Other items as promulgated by the central competent authority.

Article 6
After a business receives an establishment permit for an oil refinery, it must
set up a separate company or change its own registration. After doing one of
these and then completing a trail run, the business can apply for an operation
license to refine oil. A business may not start refining oil until it has been
granted an operation license and can apply for one by submitting the following
documents to the central competent authority:
1. Company license.
2. Factory registration permit.
3. Documents verifying that the oil storage facility has the capacity to comply
with the security stockpile requirement as specified in Article 24 herein. If
the facility is leased, lease documents must be provided as evidence.
4. Other documents as required and promulgated by the central competent
authority.
If after completing a trial run but before receiving the operation license, an
oil refinery operator has constructed or leased an oil storage facility that
has a capacity greater than the required security stockpile and it has submitted
the documents specified in Item 3 of the preceding paragraph to the central
authorities, then the oil refinery operator may sell the petroleum products it
produces following the completion of the trial run, subject to the approval
of the central competent authority. However, the sale period is limited to six
months, and the provisions specified in the first paragraph of Article 17 apply
hereto.
The aforesaid business must comply with the security stockpile requirement
of an oil refinery operator as specified in Article 24 herein.

Article 7
Before an oil refinery operator expands or reconstructs its distillation, refining,
or blending facilities, it must obtain the approval of the central competent
authority. After completing the expansion or reconstruction, the operator
must apply to the central competent authority for a new oil refinery operation
license.
The provisions specified in Articles 5 and 6 apply to the application procedures
mentioned in the preceding paragraph.

Chapter  3 Import/Export
Article 8
An oil importer must be a limited liability corporation.
The aforesaid business must construct or lease an oil storage facility with a
capacity exceeding the security stockpile prescribed in Article 24 herein.

Article 9
Before importing oil, a business must submit an application to the central
competent authority for an establishment permit. This application must
state the company name and location, scope of business along with the
name and domicile or residence of the person responsible for the business.
An oil storage plan as well as a sales or use plan must be attached.

Article 10
A business may not import oil until it has obtained an operation license
from the central competent authority to do so. A business must submit
the following documents to apply for said operation license:
1. Company license.
2. Documents verifying that the oil storage facility has the capacity to
comply with the security stockpile requirement as specified in Article 24
herein. If the facility is leased, lease documents must be provided as evidence.
3. Other documents as required and promulgated by the central competent
authority.

Article 11
The types of oil or petroleum products that can be imported by licensed
importers are limited to those approved by the central competent authority.
The preceding provision does not apply to oil refinery operators who
obtained their operation licenses prior to the complete opening of the oil
market to imported products.

Article 12
Manufacturers of petrochemical feedstock may apply to the central competent
authority for special permission to import petroleum products for private use.
The application submitted must state the particulars listed below. In addition,
a factory registration permit along with a business registration permit and
must be attached to the application.
1. The types and volume of petroleum products to be imported along with
the planned use period for them.
2. The production process.
3. The types, volume, and proportions of petrochemical materials to be
produced.
4. The types, volume, and proportions of petroleum by-products to be
produced.
5. The use status of the most recent petroleum products imported for private
use, including import types, volume, actual volume used, types and volume
of petrochemical materials produced, types and volume of petroleum by-products
produced, and their actual export or sales.
The petroleum by-products produced by such a manufacturer must be either
exported or purchased by oil refinery operators.
The exporter of the aforesaid petroleum by-products must be properly registered
in accordance with Article 15 herein.
If the manufacturer mentioned in the first paragraph is in any of the situations
described in either Item 1 of the first paragraph of Article 45 or of Items 1, 2, 4,
or 7 of Article 50 herein, the central competent authority will withhold the
approval of this manufacturer’s application for six months starting from the
day after the penalty is imposed on the manufacturer.
An oil or non-oil business that imports petroleum grade solvent oil or lubricant
must file a report with the central competent authority within ten days of any
importation. The report must state the name and location of the principal
business, the name and domicile or residence of its responsible person, the
types, quantity, and usage of the product imported. Imports by petrochemical
enterprises sanctioned by the industrial authority are exempt from this provision.

Article 13
If a business meets any of the conditions listed below, it may apply to the
central competent authority for special permission to import petroleum
products. The application must include the name and location of the principal
business, the name and domicile or residence of the responsible person, and
types along with the volume of the petroleum products to be imported.
1. If an oil refinery operator needs oil for a trial run.
2. If a petrochemical feedstock manufacturer needs petroleum products for a
trial run.
3. If an establishment needs oil for research and testing purposes.
4. If an establishment needs to import petroleum products for special
applications that are either not produced domestically and if products of
similar specifications are not available domestically.
5. If an establishment needs to import less than one kilogram of a petroleum
product (other than gasoline or diesel oil) packed in a container.

Article 14
Crude oil imported by a licensed importer can only be supplied to the oil
refinery as feedstock, unless the crude oil is otherwise approved under
special case status.
Naphtha imported by a licensed importer can only be supplied as feedstock
to the oil refinery or manufacturer of petrochemical feedstock, unless the
naphtha is otherwise approved under special case status.
Gasoline, diesel oil, or LPG suppliers as well as their customers may not
supply their petroleum products to following targets:
1. Gasoline stations or LPG station operators not set up according to this
law.
2. Private gasoline, LPG filling or storage facilities not set up according to
this law.
3. LPG wholesale distributors, packing companies, and retailers not set up
according to this law.
Oil or non-oil businesses may not sell solvent oil, lubricant, or other volatile
hydrocarbon compounds as fuels for motor vehicles or machinery.

Article 15
To set up an oil export business, an application must be submitted to the
central competent authority. The application must state the name and
location of the principal business, its scope of business, the name and domicile
or residence of the person responsible for the business. An export plan for the
business must be attached. A business is not allowed to start an oil export
operation until its application has been approved and a registration certificate
issued by the central competent authority.
Due to the unexpected accident in domestic oil market that resulted in the
imbalance of oil supply or any doubt of that, central competent authority then
can restrict the oil exporter to export the oil.
As for the determination, restricted duration, conditions and methods of the
imbalance of oil supply or any doubt of that aforesaid shall be promulgated
by the central competent authority, dissolve is likewise.
Export of oil by a non-oil business for research and testing purposes should
require the approval of the central competent authority under special case status.

Article 15-1
Due to the unexpected accident in domestic oil market that resulted in the
imbalance between oil supply and demand or any doubt of that, the central
competent authority can levy fees as a means to raise the Petroleum Fund on
oil exporters for their export of oil. The amount and period of the aforesaid
fees shall be promulgated by the central competent authority; dissolution is
likewise.

Chapter  4 Administration of Sold
Article 16
Wholesalers of gasoline and diesel oil must be limited liability corporations.
To set up a gasoline or diesel oil wholesale business, an application must be
submitted to the central competent authority. The application must state the
company name and location, its scope of business, and the name and domicile
of the person responsible for the business. The articles of incorporation of the
business as well as its sales plan must be attached to the application. The business
may begin operations only after it has obtained a registration certificate. The
preceding provision does not apply to licensed oil refinery operators or licensed
importers.

Article 17
Retailers of gasoline, diesel oil, or LPG for vehicles must set up a gasoline
station, a LPG station, or a fishing boat filling station. This provision does
not apply to oil refinery operators, importers, or gasoline and diesel oil
wholesalers who retail gasoline or diesel oil for private-use filling or storage
facilities or for non-vehicle use.
Operators of gasoline stations, LPG stations, or fishing boat filling stations
must apply to the competent authority of a special municipality, a county,
or a city government for a construction permit. Operators may begin operations
only after their station facilities have passed an inspection given by the
competent authority of the special municipality, the county, or the city
government that the operators are located in and after acquiring an operation
permit for the stations from the central competent authority.
The central competent authority will stipulate rules and regulations on land
use, installation and facilities requirements, application formalities, issue
and change of operation licenses as well as other relevant administrative
affairs for the aforesaid gasoline stations, LPG stations, and fishing boat
filling stations.
The central competent authority may authorize the competent authority of
special municipality, county, or city governments to administer the issuing
and changing of the operation licenses or take charge of other administrative
affairs referred to in the preceding paragraph.
Gasoline station operators are required to join the local gasoline station
commercial association.

Article 18
Passenger-cargo transport businesses, construction businesses, factories,
or other entities that want to set up gasoline (LPG) filling and storage
facilities to supply their own vehicles or machinery must apply for special
permission from the competent authority of the special municipality, the
county, or the city government that the business is located in.
The central competent authority will stipulate rules and regulations on the
installation and facilities requirements, application formalities and other
relevant administrative affairs for the aforesaid gasoline (LPG) filling and
storage facilities.

Article 19
Other than the gasoline, LPG, and fishing boat filling stations specified in
Items 6-8 of the first paragraph of Article 2 hereof, air terminals, commercial
ports, or industrial ports may install fuel or LPG storage and refilling facilities
specifically for the refilling of aircraft, ground operation vehicles, ships, or
port machinery. The central competent authority will stipulate rules and
regulations on the installation and facilities requirements as well as application
formalities, and other relevant administrative affairs for these entities after
conferring with the central competent authorities

Article 19-1
LPG distributors and packing companies must periodically report to their
authoritative units their supply and sale of LPG. LPG retailers must display
information on source of gas and the retail price in the business place.
LPG packing companies must fill the high pressure gas containers with LPG
according to the weight labeled. LPG retailers must ensure that the weight
of the LPG is consistent with the label on the container.
The central competent authority will stipulate laws on the supply and sale
information to be reported by LPG distributors and LPG packing companies.
The information provided should include preparation, contents, and formats.
The central competent authority shall also determine the acceptable range of
error regarding LPG weight and the packing and filling of LPG, as well as the
methods of price displays and other regulations.

Article 20
The sources of petroleum products sold by gasoline stations, LPG stations,
fishing boat filling stations, and other sellers must be those legally imported
or legally refined domestically.
The sources of oil purchased are limited to legal imports or those legally
refined domestically.

Chapter  5 Oversight
Article 21
In the event of an oil shortage or a great fluctuation in oil prices that might
impact the steady supply of oil or national security, the central competent
authority may institute measures on oil control, such as quotas, price controls,
and security stockpile adjustments and utilization.
To clarify these measures, the central competent authority will draft a bill
on oil control in emergency periods delineating the enforcement conditions,
timing, procedures, applicable targets, scope, contents, and methods. The
bill will then be submitted to the Executive Yuan (Cabinet) for final approval.

Article 22
All of the following businesses are required to obtain public liability
insurance coverage and accidental contamination liability insurance: oil
refinery businesses, oil import businesses, oil export businesses, gasoline
and diesel oil wholesalers, gasoline stations, LPG stations, fishing boat filling
stations, oil or LPG storage and refilling facilities of air terminals, commercial
ports, and industrial ports as well as oil or LPG filling facilities installed for
private use that meet the criteria set by the central competent authority.
The central competent authority will decide how much insurance coverage
each business must obtain after conferring with the Ministry of Finance.

Article 23
Oil businesses are liable for damages caused by their production methods,
import/export, sales, transport, and storage of oil products as well as for other
damages caused by business-related activities.

Article 24
Oil refinery operators and importers are required to maintain an oil security
stockpile of no less than sixty days of supply. The supply amount will be
based on the average domestic sales and private consumption of the past twelve
months. The security stockpile of LPG must amount to no less than twenty-five
days of supply. The supply amount will be based on the average domestic sales
and private consumption of the past twelve months.
The aforesaid security stockpile, oil refinery’s total storage quantity must be no
less than 50,000 kiloliters, and no less than 10,000 kiloliters for oil importers.
The government should make use of the Petroleum Fund to finance the storage
of oil. The amount stored shall be calculated according to thirty days of the
average domestic sales and consumption of the previous year.
The criteria and computation formulas for the actual security stockpiles referred
to in the first paragraph will be determined by the central competent authority.

Article 25
Where different oil refinery operators or importers share the same oil storage
facility for their security stockpile, they must file jointly with the central
competent authority before the 20th of each month indicating the amount each
of them stores in the said facility. If the actual volume stored jointly is lower
than the total reported by the individual businesses, each individual business
will be deemed to have failed to meet its security stockpile requirement unless
evidence proves which business actually stored less than their required security
stockpile amount.

Article 26
If an oil refinery operator or importer ceases operations, its storage of security
stockpile may not be disposed of without the prior consent of the central
competent authority.
The central competent authority may draw on the Petroleum Fund (see Chapter
6 herein) to purchase the aforesaid security stockpile.

Article 27
Before the end of October of each year, oil refinery operators must prepare
and file with the central competent authority an annual production, import,
export, and sales plan for the following year. Furthermore, before the 20th
of each month they must file a report on the production, import, export, and
sales of the previous month as well as a report on the status of their security
stockpile for the current month.
The preceding paragraph also applies to oil importers, exporters, and gasoline/
diesel oil wholesalers.

Article 28
The central competent authority may ask oil refinery operators, importers,
exporters, and gasoline/diesel oil wholesalers to report on their operations.
The central competent authority may also send personnel or entrust a professional
institution conduct an inspection of the actual operations, security stockpile,
and relevant data of these businesses. A business may not obstruct, refuse, or
evade such inspection.
The central competent authority may ask the manufacturers of petrochemical
feedstock to report on their use of imported petroleum products. Or, the central
competent authority may ask oil or non-oil businesses to name who bought the
solvent oil and/or lubricant products the businesses imported or sold. Likewise,
the central competent authority may send personnel or entrust a professional
institution to conduct an inspection on the same issues. A business may not
obstruct, refuse, or evade such inspection.
Competent authorities of different levels may ask gasoline, diesel oil, and
LPG suppliers or their customers to name who bought their products. They
may also send personnel or entrust a professional institution to conduct an
inspection on the same issues. A business may not obstruct, refuse, or evade
such inspection.

Article 29
Only petroleum products that meet the national standards, where such standards
apply, can be imported or sold in the domestic market.
The central competent authority may send personnel or entrust a professional
institution to examine the quality of the petroleum products sold. A business
may not obstruct, refuse, or evade such examination.

Article 30
If the central competent authority revokes the license or registration certificate
of an oil refinery operator, importer, exporter, or gasoline/diesel oil wholesaler,
that business is prohibited from reapplying for another operation license or
registration certificate within two years from the date of revocation.
If the operation license of the operators of a gasoline station, a LPG station,
or a fishing boat filling station has been revoked, the original business body
and its responsible person are prohibited from reapplying to setup a filling
station at the original site within two years from the date of revocation.
If the installation permit of an oil/LPG filling or storage facility for private
use has been revoked, the original site may not be used again for such a facility
within two years from the date of revocation.

Article 31
Where necessary, oil refinery operators or importers may lay pipelines using
rivers, irrigation canals and ditches, coastal areas, bridges, dikes, ports and
harbors, roads, forest land, green land, parks, and other public lands.
Laying the pipeline may not adversely affect the safety or landscape or the
original use of the premises on which the pipeline is laid. Before laying the
pipeline, those who will do so, must get the approval of the central competent
authority and the agency in charge of the land. The operator or importer must
compensate for any damages incurred to the premises on which the pipeline
is laid.
Oil refinery operators or importers who have oil pipelines may accept the
request of other businesses to transmit oil through those pipelines.

Article 32
Oil refinery operators or importers must observe the following requirements
in laying oil pipelines:
1. The materials of the pipeline must conform to national standards or other
comparable standards.
2. The business must immediately replace corroded pipelines that pose a safety
concern.
3. The business must conduct periodic inspections of its oil pipelines each year
and save the inspection results for the competent authorities to review.
4. The competent authorities may send personnel or entrust a professional
institution to conduct inspections of the pipelines. The business may not refuse
such inspection.
5. The business must draw up a pipeline maintenance, inspection, replacement,
anti-burglary, leak-proofing, and contingency plans for the following year
before the end of October of each year. Before the end of January of each year,
it must also produce a report on the inspection and replacement status of the
pipeline for the previous year. This report must then be filed with the competent authorities.
6. The business must submit its oil pipeline layout diagrams, final acceptance
drawings, and other relevant data to the competent authorities for the setup of a
pipeline management information system.
If an inspection of the pipeline shows that the corrosion of pipes poses a safety
concern, the competent authorities may demand that the business take remedial
actions within a prescribed time period.

Article 33
Oil businesses must apply to the competent authority of the special municipality,
the county, or the city government in which the business is located for
permission to install oil storage facilities. The central competent authority
will prescribe the rules governing the application procedures, land uses,
requirements, and other administrative matters.
An oil business may ask an inspection institution sanctioned by the central
competent authority to conduct periodic or occasional inspections of the
aforesaid oil storage facilities and to prepare inspection records. The central
competent authority may dispatch personnel or entrust an inspection
institution to conduct spot checks of said storage facilities.
An oil business must retain the aforesaid inspection records for at least five
years. If deemed necessary, the local competent authority of the special
municipality, the county, or the city government in which the business is
located may dispatch personnel to check those inspection records.
The central competent authority will stipulate the eligibility, requirements,
fee schedule, and responsibilities of the inspection institution referred to in
the second paragraph of this Article.

Chapter  6 Petroleum Fund
Article 34
In order to finance the Petroleum Fund, the central competent authority will
set and charge fees of fixed rates from the following activities:
1. The exploration or import of oil with the exception of oil imported under
the provisions stipulated in the first paragraph of Article 12 and Items 2-4
of Article 13.
2. Petroleum by-products produced by petrochemical feedstock manufacturers
and sold to oil refinery operators in conjunction with the second paragraph
of Article 12. The preceding provision does not apply to the feedstock for any petrochemical products originally purchased from oil refinery operators or
importers.
The rates mentioned in the preceding paragraphs will be charged by volume
and based on the average import price of oil. The central competent authority
will announce the amounts collected for the fund.

Article 35
The Petroleum Fund will be financed with fees collected through the following
methods:
1. Require oil importers to pay fees into the Petroleum Fund before importing
oil.
2. Require oil explorers to pay fees into the Petroleum Fund before refining
or selling the oil to oil refinery operators.
3. Require petrochemical feedstock manufacturers that produce petroleum
by-products to pay fees into the Petroleum Fund before selling their products
to oil refinery operators.
Oil refinery operators or importers who have paid fees into the Petroleum
Fund as required under Item 1 of the preceding paragraph may apply to the
central competent authority for a refund of those fees that apply to the same
quantity of the oil originally imported if (1) the imported oil is used for the
manufacture of petrochemical feedstock, (2) the imported oil is later exported,
or (3) the imported oil is used as fuel for international shipping or international
flights. Relevant documents of proof must be included with the application.
Five years after the implementation of this law, the central competent
authority will review the practice of refunds for the exported oil described
in the preceding paragraph and decide whether or not to continue it.

Article 36
The Petroleum Fund will be used for the following purposes:
1. To maintain the government petroleum security stockpile.
2. To subsidize the set up of petroleum facilities in remote, aboriginal and
offshore areas as well as transportation outlays, and offer price subsidies.
3. To establish award of encouraging the exploration for and development
of oil and natural gas reserves with feedback mechanism.
4. To implement research and development, application and promotion on
energy policy, oil development technology, and alternative energies.
5. To make the security and reasonable effective use of oil & gas(include
LPG) as well as to develop and promote the oil-saving technology and
method.
6. Subsidy of rewarding the heat use of renewable energy to replace the
petroleum energy.
7. Operation subsidy of a municipality, a county, or a city competent
authority to implement the oil management and the ban, inspection or
auditing that stated in the first paragraph of Article 54 in this Law.
8. To implement other necessary measures deemed necessary by the central
competent authority to stabilize the oil supply and maintain the oil market order.
The central competent authority reserves the right to adopt or maintain
subsidies, subsidy targets, and subsidy scope and any measures relating to
the preceding subparagraph 2.

Article 37
  (deleted)

Article 38
A business engaging in the production, import, blending, sales of alcohol
gasoline, bio-diesel, or renewable oil products must apply for prior approval
of the central competent authority for operating the business.
Other than petroleum products used for blending, rules related to the security
stockpile and Petroleum Fund do not apply to renewable energy sold by
businesses operated according to the provision specified in the preceding
paragraph.
As the first paragraph mentioned, the central competent authority will
stipulate measures for the administration of businesses engaging in the
production of the renewable energies of alcohol gasoline, bio-diesel, or
renewable oil products.

Article 38-1
The central competent authority can determine the fixed blending ratio of
alcohol or ester to the gasoline and diesel in accordance with the actual
implementing schedule, scope and method for the oil refinery and oil
importer.
The aforesaid blending ratio of alcohol or ester to the gasoline and diesel,
the actual implementing schedule, scope and method shall be promulgated
by the central competent authority.

Chapter  7 Penalty Provisions
Article 39
A business in any of the following situations will be fined a minimum of
NT$2,000,000 and a maximum of NT$10,000,000:
1. In violation of the provisions specified in the first paragraph of Article 6
herein (i.e., failing to obtain an oil refinery operation license while
conducting oil distillation, refining, or blending other than for the purpose
of a trial run).
2. In violation of provisions specified in Article 10 herein (i.e., failing to
obtain an oil import operation license) and in violation of Articles 12 or 13
herein (i.e., failing to acquire a special permit for oil imports) while conducting
oil imports.
Oil distilled, refined, blended, or imported as described in the preceding
paragraph will be confiscated.
If any of the violations described in the first paragraph results in public
endangerment, the offender will be sentenced to a maximum of three years
imprisonment or detention and/or be fined a minimum of NT$1,000,000
and a maximum of NT$5,000,000.
If the offender of the preceding paragraph is a corporate person, its acting
responsible person will be punished and the corporate person itself will also
be subjected to the fine prescribed in the preceding paragraph.

Article 40
A business in any of the following situations shall be fined a minimum of
NT$1,000,000 and a maximum of NT$5,000,000:
1. In violation of the provisions specified in the second paragraph of Article 16
herein (i.e., engaging in the gasoline or diesel oil wholesale business without
registering with the competent authority).
2. In violation of provisions specified in the first or second paragraph of
Article 17 herein (i.e., engaging in retailing of gasoline, diesel oil, or LPG for
vehicle use).
3. In violation of provisions specified in the first paragraph of Article 18
(i.e., setting up an oil (LPG) filling or storage facility for private use without
first acquiring a permit).
4. In violation of provisions specified in the first paragraph of Article 33
(i.e., by failing to acquire permission for the installation of an oil storage facility).
Petroleum products (for sale or private use), oil or LPG filling and storage
facilities and other items used in the violations of the preceding paragraph will
be confiscated.
In the event any of the violations described in the first paragraph results in
public endangerment, the offender will be sentenced to a maximum of two
years of imprisonment or detention and/or fined a minimum of NT$600,000
and a maximum of NT$3,000,000.
In the event the offender mentioned in the preceding paragraph is a corporate
person, its acting responsible person will be punished and the corporate person
itself will also be subjected to the fine prescribed in the preceding paragraph.

Article 41
A business failing to store a security stockpile or failing to store the required
amount as specified in Article 24 herein will be fined a minimum of
NT$2,000,000 and a maximum of NT$10,000,000. Furthermore, the business
will be ordered to take remedial actions by a prescribed deadline. Any business
failing to comply by the deadline will be penalized consecutively until satisfactory
corrective actions are taken. If the offense is of a serious nature (see Article 49
herein) or repeated offenses against the some provision occur within six months
after the business has taken remedial actions, the business may be ordered to
suspend operations for a maximum of three months or it may have its operation
license revoked.

Article 42
Offenders of the provisions stipulated in the bill on controlling oil in
emergency periods as described in the second paragraph of Article 21
herein and those failing to take the remedial actions of the second paragraph
of Article 32 herein by a prescribed deadline will be fined a minimum of
NT$2,000,000 and a maximum of NT$10,000,000. If the offense is of a
serious nature (see Article 49 herein), the business may be ordered to
suspend operations for a maximum three months, or it may have its operation
license revoked, or it may be ordered to close.

Article 43
A violation of the first paragraph of Article 26 herein (i.e., a business fails
to obtain prior approval for the disposal of their security stockpile) will
result in the responsible person of the business being fined a minimum of
NT$1,000,000 and a maximum of NT$5,000,000.

Article 44
A licensed oil importer who violates Article 11 herein (i.e., importing
types of oil not permitted for import) will be fined a minimum of
NT$1,000,000 and a maximum of NT$5,000,000. If the offense is of a
serious nature (see Article 49 herein), the business may be ordered to
suspend operations for a maximum three months, or it may have its
operation license revoked.
Oil imported in violation of Article 11 will be confiscated.

Article 45
Any of the following offenses will result in a minimum fine of
NT$1,000,000 and a maximum fine of NT$5,000,000:
1. A petrochemical feedstock manufacturer violating the first paragraph
of Article 12 herein (i.e., using imported petroleum products for purposes
other than private use).
2. A violation of the third paragraph of Article 14 herein (i.e., supplying
gasoline, diesel oil, or LPG to gasoline or LPG filling operators that are
known or should have been known to be running illegal gasoline or
LPG stations, or to illegal private oil or LPG filling or storage facilities).
3. An oil or non-oil business violating the fourth paragraph of Article 14
(i.e., selling solvent oil, lubricants, or other volatile hydrocarbon compounds
as fuels for motor vehicles and machinery).
Any petroleum products being used or to be used in the aforesaid offenses
will be confiscated.

Article 46
Businesses importing or selling petroleum products that do not meet national
standards as described in the first paragraph of Article 29 herein will be
fined a minimum of NT$200,000 and a maximum of NT$1,000,000. Such
businesses will also be ordered to take remedial actions by a prescribed
deadline. Any business failing to comply by the deadline will be fined
consecutively until satisfactory corrective actions are taken. If the offense
is of a serious nature (see Article 49 herein) or repeated offenses against
the same provision occur within six months after the business has taken
remedial actions, the business may be ordered to suspend operations for
a maximum of three months or it may have its operation license revoked.
The aforesaid petroleum products that fail to be upgraded to national standards
of quality will be confiscated.

Article 47
Any of the following offenses will result in a minimum fine of NT$100,000
and a maximum fine of NT$500,000. Furthermore, the offender will be
ordered to take remedial actions by a prescribed deadline. Any offender
failing to comply by the deadline will be penalized consecutively until
satisfactory corrective actions are taken.
1. An oil refinery operator who in violation of the first paragraph of Article 7
herein does not obtain prior approval or does not change its operation license
before expanding or reconstructing its distillation, refining, or blending facilities.
2. A violation of the first paragraph of Article 15 herein (i.e., exporting oil
without registering with the central competent authorities as an oil exporter).
3. Any business that engage in the gasoline station, LPG station or a fishing
boat filling station violated the regulations of third paragraph of Article 17
herein pertaining to related equipment (facility) or operation management of
setting up a gasoline station, a LPG station, or a fishing boat filling station.
4. Any business that approved to set up oil or LPG filling or storage facilities
for private use violated the regulations of the second paragraph of Article 18
herein pertaining to the using permit(s), equipment (facility) standard, reliability
insurance or using management of setting up oil or LPG filling or storage facilities
for private use.
5. A violation of the related regulations of setup permit(s), using permit(s),
equipment (facility) standard(s), liability insurance, or using management that
stated in Article 19 herein pertaining to the rules governing the administration
of fuel or LPG storage and refilling facilities at air terminals, commercial ports,
and industrial ports
6. A violation of the Article 19-1 herein. (i.e., LPG distributors, LPG packing
companies, and LPG retailers failing to report information of supply and sales
of LPG, the preparation and filling of LPG, the acceptable range of error on
LPG weight, the display of retail price, and other regulations that should be
followed.)
7. A violation of the first paragraph of Article 22 herein (i.e., oil refinery business,
oil import business, oil export business, gasoline and diesel oil wholesalers,
gasoline stations, LPG stations, fishing boat filling stations, oil or LPG storage
and refilling facilities of air terminals, commercial ports, and industrial ports
failing to obtain public liability insurance coverage and accidental contamination
liability insurance).
8. Oil or LPG filling or storage facilities installed for private use that meet the
criteria set by the central competent authority failing to obtain public liability
insurance or accidental contamination liability insurance as required by the
first paragraph of Article 22 herein.
9. Not filing periodic reports as required by Article 27 herein or filing a false
report.
10. A violation of any of the provisions specified in the first paragraph of
Article 32 herein pertaining to laying pipelines.
11. Any oil business that approved to set up the oil storage facility violated
the rules governing the setup of oil storage facilities as specified in the first
paragraph of Article 33 herein pertaining to the using permit(s), equipment
(facility) standard or using management.
12. A violation of the measures for applying for the approval of operation
as specified in the first paragraph of Article 38, or in the third paragraph
herein pertaining to the operation application, data registration, quality standard,
purpose restriction or other.
13. A violation of the blending ratio of alcohol and ester to gasoline and diesel,
the actual implementing schedule, scope and method as specified in the second
paragraph of Article 38-1.
14. A violation of the fourth or tenth paragraphs of Article 52 herein (i.e.,
oil refinery operators designated by the competent authority may not refuse
to negotiate for the purchase of detained oil products).
Furthermore, if a violation of Items 1, 3, 5, 6, 7, 9, 10, 12(posterior segment),
13, 14 is committed and it is of a serious nature, the business may be or ordered
to suspend operations for a maximum of three months, it may have its operation
license revoked, or it may be ordered to close down. Moreover, if a violation
of aforesaid Items 4, 8, or 11 occurs and it is of a serious nature, the violator may
be ordered to stop using its facility for a maximum of three months, it may be
ordered to close down, or terminate the permission(s) they had. Finally, if a
violation of Items 2 or 12 (anterior segment), the violator may be ordered to
close down.

Article 48
Any of the following offenses will result in a fine of a minimum of NT$100,000
and a maximum of NT$500,000. If a business commits an offense of a serious
nature (see Article 49 herein), the business may be ordered to suspend operations
for a maximum three months, or it may have its operation license revoked, or
it may be ordered to close.
1. A violation of the first paragraph of Article 14 (i.e., supplying crude oil to
businesses or individuals that do not have permission to receive crude oil).
2. A violation of the second paragraph of Article 14 (i.e., supplying naphtha
to businesses or individuals that do not have permission to receive naphtha).
3. A violation of the first paragraph of Article 20 (i.e., selling oil illegally
imported or illegally refined domestically).
4. A violation of the first paragraph of Article 28 or the second paragraph
of Article 29 (i.e., failing to make business reports as required or obstructing,
refusing, or evading an inspection by the competent authorities).

Article 49
The offenses of a serious nature in Articles 41, 42, 44, and 46-48 are offenses
specified in this Law and in any of the following conditions:
1. An offense that results in public endangerment.
2. An offense evidenced by the facts as being unable to be rectified within
ninety (90) days.
3. An offense that occurs three or more times in one year.
4. An offense that results in punishments six times or more cumulatively in
one year.
5. Illegal producing, importing, or selling that involves more than 200
kiloliters of petroleum products in a single incidence of offense.

Article 50
Any of the following offenses will result in a fine of a minimum of
NT$100,000 and a maximum of NT$500,000:
1. A violation of the second paragraph of Article 12 herein (i.e., selling
petroleum by-products to businesses or individuals other than oil
refinery operators).
2. A violation of the third paragraph of Article 12 herein (i.e., failing to
register to export oil with the authorities concerned as required by Article 15
herein).
3. A violation of the fifth paragraph of Article 12 herein (i.e., failing to
file in time or filing a false report on the import of solvent oil or lubricants).
4. A violation of the second and third paragraphs of Article 28 herein
(i.e., obstructing, refusing, or evading an inspection).
5. A violation of the second paragraph of Article 33 herein (i.e., failing
to ask an inspection institution sanctioned by the central competent
authority to conduct an inspection and to prepare records) or a violation
of the third paragraph of Article 33 herein (i.e., failing to keep the records
for a minimum of five years).
6. A violation of Item 2 of the first paragraph of Article 35 (i.e., producing oil
or selling oil to oil refinery operators without paying the required fees into
the Petroleum Fund).
7. A violation of Item 3 of the first paragraph of Article 35 (i.e., selling
petroleum by-products to oil refinery operators without paying the required
fees into the Petroleum Fund).

Article 51
Gasoline stations that do not join their local gasoline station commercial
association (pursuant to the fifth paragraph of Article 17) within one month
after beginning business will be fined a minimum of NT$20,000 and a
maximum of NT$100,000.
Any offender of the preceding paragraph will be ordered to take remedial
actions by a prescribed deadline. Any gasoline station failing to comply by
the deadline will be fined consecutively until satisfactory corrective actions
are taken.

Article 52
Where the detained oil has the risk of impairment or hard to safe keep,
it may be sold to an authority-designated oil refinery operator by price
negotiations and can keep custody of the proceeds. The oil refinery operator
designated by the competent authority may not refuse such a purchase request.
The measure for price negotiations of the aforesaid detained oil will be
stipulated separately by the central competent authority.
If the owner, trustee, or caretaker of the detained articles cannot be identified
or notified, the competent authority will make a public announcement of the
detention and then process the detained articles as waste if their owner, keeper,
or custodian remain unidentified ten (10) days after the announcement.
The competent authority may negotiate price for and then sell to a designated
oil refinery operator oil confiscated in accordance with this law. An oil
refinery operator so designated may not refuse the purchases price, which
will be computed according to the Measure for Price Negotiations of
Detained Oil.

Article 53
The central competent authority will carry out those points of the Act that
call for imposition of fines, confiscation, demands of remedial actions within
a prescribed time period, business suspensions, revocations of a license/certificate,
or the issuing of orders to cease business. But as of an occurrences, following each
item circumstances, a special municipality, a county, or a city competent authority
will take administrate disciplinary action.
1. The fines and/or carry out the confiscation for violations of Items 2-4 of the
first paragraph, and the second paragraph of Article 40.
2. According to Item 2 of the first paragraph of Article 45, fines should be
imposed for a violation of Item 3 of third paragraph of Article 14, and
confiscation should be made for a violation of the second paragraph of
Article 45.
3. To impose the fines, carry out the demands for remedial actions by the
prescribed deadline for violations set forth in Items 3, 6, 7, of the first
paragraph of Article 47 herein. (i.e., oil filling stations, LPG filling stations,
fishing boat filling stations failing to obtain public liability insurance
coverage. ), and to cease business, to order close business for a violation
of the second paragraph of Article 47.
4. To impose fines, carry out the demands for remedial action by prescribed
deadlines for violations of Items 4, 8, and 11 of the first paragraph of Article 47,
and to cease business, to order close business for violation of the second
paragraph.
5. To impose the fines and carry out the demands of remedial actions set
forth in Article 51.
A special municipality, a county, or a city competent authority will carry
out inspections and execute punishment(s) set in Article 46 herein that are
to be imposed on gasoline or LPG stations for selling petroleum products
not complying with national standards. The applicable competent authority
will also carry out the punishment(s) on violations set out in Item 14 of the
first paragraph of Article 47 herein.

Article 54
Competent authorities of different levels who have insufficient personnel
and facilities, the risk of resistances and public safety, or other reasonable
cause, may ask for the assistance of local police or other agencies in the
execution of the following actions:
1. Seizing oil distillation, refinery, or blending operations that are in
violation of the first paragraph of Article 6 herein.
2. Seizing gasoline, diesel oil, or LPG and other petroleum products
supplied to gasoline or LPG station operators whose stations are not set
up according to this law or to private-use gasoline or LPG filling or
storage facilities not set up according to this law, which are in violation
of the third paragraph of Article 14 herein.
3. Investigating the sale by oil or non-oil businesses of solvent oil,
lubricants, or other volatile hydrocarbon compounds as fuels for use by
motor vehicles or machinery. All such sales are illegal under the fourth
paragraph of Article 14 herein.
4. Seizing wholesale operations for gasoline or diesel oil that are in
violation of the second paragraph of Article 16 herein.
5. Seizing retailing operations of gasoline, diesel oil, or LPG for vehicle
use that are in violation of the first or second paragraph of Article 17
herein.
6. Seizing oil or LPG filling or storage facilities for private use that are in
violation of the first paragraph of Article 18 herein.
7. Investigating sales of imported or sold solvent oil or lubricants pursuant
to the second paragraph of Article 28 herein.
8. Seizing oil storage facilities that are in violation of the first paragraph
of Article 33 herein.
The informer(s) and law enforcement personnel involved in the aforesaid
actions may be rewarded. The central competent authority will stipulate
measures for the reward.

Chapter  8 Supplemental Provisions
Article 55
Oil-related provisions in the Energy Management Law will no longer
apply after this Petroleum Administration Law (the Act) is implemented.

Article 56
The Act does not apply to the import and security stockpiling of oil or
the set up of oil filling or storage facilitates and their management by
military establishments for national defense purposes.

Article 57
Prior to the enforcement of the amendment of this Law, any business that
engaged in alcohol gasoline, bio-diesel, or renewable oil products granted
the permit(s) of establishment in accordance with Article 38 will be
regarded as already granted the valid approval of the production and sales
for alcohol gasoline, bio-diesel, or renewable oil products.

Article 58
The competent authorities of each level will charge review and license/certificate
fees for processing the applications for review, granting the permissions,
and/or issuing the licenses/certificates described in the Act. The central
competent authority will set the fee schedule.

Article 59
The central competent authority will separately prescribe the forms and
license formats required under the Act.

Article 60
The Act will come into force upon promulgation.
The promulgation date of the amended article in this Act on January 6, 2009
should be provided by the Executive Yuan.