PETROLEUM AND NATURAL GAS REGULATORY BOARD 1.

These guidelines shall be called Petroleum and Natural Gas Regulatory Board (Public Consultation for Determination of Final Natural Gas Pipeline Tariff) Guidelines 2011. 2. Definitions. 1) In these guidelines, unless the context otherwise requires,a) Act means the Petroleum and Natural Gas Regulatory Board Act, 2006; b) Board means the Petroleum and Natural Gas Regulatory Board established under sub-section (1) of section 3 of the Act; c) natural gas pipeline tariff means tariff as specified under regulation 2 (g) of the Petroleum and Natural Gas Regulatory Board (Determination of Natural Gas Pipeline Tariff) Regulations, 2008. 2) Words and expressions used and not defined in these guidelines, but defined in the Act or in the rules or regulations made there under, shall have the meanings respectively assigned to them in the Act or in the rules or regulations, as the case may be. 3. Applicability. These guidelines shall apply to the natural gas pipelines coming under the purview of regulation 17 & 18 of the Petroleum and Natural Gas Regulatory Board (Authorizing Entities to Lay, Build, Operate or Expand Natural Gas Pipelines) Regulations, 2008.

4. Objectives for issuing these guidelines These guidelines seek to achieve the objective of involving the stakeholders in determination of final natural gas pipeline tariff and sharing all the relevant information to make the process more objective and transparent. 5. Details of the information to be placed in public domain 1) Out of the data submitted by entities under the provisions of the Petroleum and Natural Gas Regulatory Board (Determination of Natural Gas Pipeline Tariff) Regulations, 2008, for determination of final natural gas pipeline tariff, the following data shall be placed in the public domain: a. Project Capital Cost Summary or details of depreciated Capex duly reconciled with the books of accounts as per broad format available in the Attachment 1 of Petroleum and Natural Gas Regulatory Board (Determination of Natural Gas Pipeline Tariff) Regulations, 2008. b. Details of operating cost duly reconciled with books of accounts as per broad format given in the Attachment 1 (j) of the Petroleum and Natural Gas Regulatory Board (Determination of Natural Gas Pipeline Tariff) Regulations, 2008. c. Details of year-wise projections of capex/opex considered in the computations of the natural gas pipeline tariff. d. The computations for the natural gas pipeline tariff submitted by the entity based on project IRR as per broad format given in Attachment 1 (i) of the Petroleum and Natural Gas Regulatory Board (Determination of Natural Gas Pipeline Tariff) Regulations, 2008. e. Salient features of the recommendations of the Consultants, if any, engaged by the Board for validation of the capex/opex data.

f. Details of the acceptance by the Board in respect of the tariff filings duly reconciling the details of capex/opex proposed and that accepted by the Board. g. Any other specific point that the Board desires to highlight for the specific information or comments from stakeholders. h. Final sheet containing the computations for the natural gas pipeline tariff based on project IRR duly approved by the Board.

2) Procedural Issues a. While webhosting the information mentioned at 5 (1) comments from stakeholders will be invited which will be examined by Board. The process of Open House will also be followed. The Board can also consider asking certain groups of consumers / associations / organizations for their specific comments through an official communication. b. Any changes required in the tariff, if any, would be implemented on a prospective basis, after hearing the transporters concerned. 6. Miscellaneous 1) These guidelines shall be read in conjunction with the Petroleum and Natural Gas Regulatory Board (Determination of Natural Gas Pipeline Tariff) Regulations, 2008. 2) If any dispute arises with regard to the implementation of any of the provisions of these guidelines, the decision of the Board shall be final.