MINISTRY OF PETROLEUM
& NATURAL GAS
Notification
The Petroleum Rules,
2002.
PART II GENERAL
PROVISIONS
3.
Restrictions on Delivering and Dispatching Petroleum:
(1)
Who Can Receive Petroleum:
o No
one is allowed to deliver or send petroleum to just anyone in India. It can
only be delivered to:
§ The
holder of a storage licence or their authorized agent.
§ A
port authority or railway administration.
§ A
person who is authorized by law to store petroleum without a licence.
(2)
Amount and Type of Petroleum:
o When
delivering or sending petroleum, the type of petroleum and the quantity
must match what the recipient is allowed to store under their licence (or
without a licence).
(3)
Special Rule for Petroleum Class B:
o Petroleum
Class B (a specific type of petroleum) can be sent to
someone without a storage licence, but only up to 15,000 litres if it's
in sealed airtight containers that are approved.
o The
person sending it must make sure the recipient has made arrangements to dispose
of the petroleum immediately, especially for amounts over 2,500 litres.
o If
the shipment exceeds 2,500 litres, a dry chemical fire extinguisher
must also be included to fight fires in case of an emergency.
(4)
Exceptions:
o These
rules do not apply to deliveries or shipments made to:
§ The
Defence Forces of India.
§ The
delivery of kerosene (Petroleum Class B) to someone who holds a special
licence for transferring it into smaller containers (called decantation).
o For
kerosene, the person delivering it must ensure that the recipient can
immediately transfer the kerosene into containers of 2,500 litres or less.
This
rule helps regulate how petroleum is handled, ensuring safety and compliance
with licensing requirements.
4.
Approval of Containers:
(1)
Container Requirements:
o Containers
holding more than 1 litre of Petroleum Class A or more than 5
litres of Petroleum Class B or C must be of a type that is approved
by the Chief Controller of Explosives.
(2)
Application for Approval:
o If
someone wants to use a type of container that has not been approved
before, they must:
§ Submit
an application with drawings of the container design (to scale).
§ Include
details about the materials, construction method, and capacity
of the container.
§ Provide
two sample containers and pay a fee of 1,000 rupees for review by
the Chief Controller.
(3)
Exceptions:
o These
approval rules do not apply to containers owned by the Defence Forces
of India.
5.
Containers for Petroleum Class A:
(1)
Materials for Containers:
o Containers
for Petroleum Class A must be made of materials like tinned,
galvanized, or rust-proofed sheet iron or steel. These must be approved by
the Chief Controller.
o Glass
bottles (with a capacity of 2.5 litres or less) can
be used for laboratory chemicals that are classified as Petroleum Class A,
if they are approved by the Chief Controller.
(2)
Container Durability:
o Containers
must be made and secured properly so that they do not become defective,
leaky, or insecure during transit unless there is gross
negligence or an extraordinary accident.
o The
containers should be kept in good repair at all times.
(3)
Filling Apertures:
o Containers
should have a well-made filling opening that is tightly secured with airtight
screw plugs, screw caps, or other reliable caps.
(4)
Container Metal Thickness:
o Containers
made of sheet iron or steel must have a certain minimum metal thickness
depending on their capacity. The required thickness is:
§ Up
to 10 litres: 0.443 mm (27 BG)
§ 10
to 25 litres: 0.63 mm (24 BG)
§ 25
to 50 litres: 0.80 mm (22 BG)
§ 50
to 200 litres: 1.25 mm (18 BG)
§ 200
to 300 litres: 1.59 mm (16 BG)
(5)
Maximum Capacity:
o Containers
should not exceed a capacity of 300 litres, unless they are specifically
approved by the Chief Controller for certain uses.
(6)
Air Space in Containers:
o Each
container must have an air space that is at least 5% of its total
capacity.
(7)
Warning Labels:
o Every
container must have a clear warning label in large letters, indicating
it contains Petrol or Motor Spirit, or another equivalent warning
to show that the petroleum is highly inflammable.
(8)
Exceptions:
o The
rules for container materials, thickness, capacity, air space, and warning
labels do not apply to containers owned by the Defence Forces of India.
6.
Containers for Petroleum Class B and Class C:
(1)
Container Materials:
o Containers
for Petroleum Class B and Class C must be made of steel or
iron and must be approved by the Chief Controller.
(2)
Air Space Requirement:
o Containers
for Petroleum Class B must have at least 5% air space of the
total container capacity.
o Containers
for Petroleum Class C must have at least 3% air space of the
total container capacity.
(3)
Exceptions:
o These
rules do not apply to containers owned by the Defence Forces of
India.
7.
Empty Receptacles:
- Empty tanks
or containers that previously held Petroleum Class A or Class B
must be securely closed unless they are being opened for cleaning
or filling.
- These containers must be thoroughly
cleaned and freed from petroleum vapour before being reused or
disposed of.
8.
Repairs to Receptacles:
(1)
Repairs by Hot Work:
o No
tank or container that has contained petroleum should be repaired using hot
work (e.g., welding, cutting, etc.) unless:
§ The
container has been thoroughly cleaned and is free of petroleum and
petroleum vapour.
§ It
has been certified in writing by a competent person as safe for
such repair work.
(2)
Certificate for Repairs:
o The
repair certificate must be kept by the repairer for at least three
months and must be shown to an inspector if requested.
9.
Prevention of Escape of Petroleum:
- Precautions
must always be taken to prevent petroleum from escaping into:
- Drains, sewers, harbours, rivers,
or watercourses.
- Public roads, railway lines, or
any other place where petroleum could cause a hazard.
10.
Prohibition of Employment of Children and Intoxicated Persons:
- Children under 18
and intoxicated persons are not allowed to be employed in
any of the following:
- Loading, unloading, or
transporting petroleum.
- Working in any premises licensed
under these rules.
11.
Prohibition of Smoking, Fires, and Lights:
- Smoking,
the use of matches, or anything that could cause ignition
(like fires or lights) is strictly prohibited near places where
petroleum is:
- Refined, stored, or handled.
- Transported in a vehicle or
vessel.
12.
Special Precautions Against Accidents:
(1)
Prevention of Fire or Explosion:
o No
one should do anything that could cause a fire or explosion in any place
where petroleum is:
§ Refined,
stored, or handled.
§ Transported
in vehicles or vessels.
(2)
Responsibilities of Petroleum
Handlers:
o Everyone
who stores, handles, or transports petroleum must:
§ Follow
the rules and the conditions of any licence they have.
§ Take
all precautions to prevent accidents, especially fire or explosions.
§ Ensure
that no one commits any act that could cause such accidents (as described
above).
13.
Payment of Fees:
(1)
Fees to the Chief Controller:
o All
fees paid to the Chief Controller of Explosives must be paid through a crossed
bank draft:
§ The
draft should be drawn in favour of the Chief Controller of Explosives,
Nagpur.
§ The
bank draft must be from any nationalized bank and payable at Nagpur.
§ Fees
up to ₹100
can also be paid in cash at the office of the Chief Controller.
(2)
Fees to a Controller:
o Fees
payable to a Controller (other than the Chief Controller) must be paid
via a crossed bank draft drawn in favour of the Controller, payable at
the station where the Controller's office is located.
o Fees
up to ₹100
can also be paid in cash at the Controller's office.
(3)
Fees to District Authority or Other
Authorities:
o Fees
to District Authorities or other relevant authorities should be paid in
the manner specified by the respective authority.
(4)
Refund of Fees:
o If
an application for a licence is rejected, the fees paid will be
refunded:
§ By
the licensing authority if the fee was paid in cash or by a bank draft.
§ If
the fee was paid to a treasury, it will be refunded by the treasury
based on an order from the licensing authority.
o The
refund should generally happen within six months after the payment.
(5)
Non-refundable Fees:
o Fees
paid for purposes other than the grant, renewal, or amendment
of a licence are non-refundable.
CHAPTER II
IMPORTATION OF PETROLEUM:
14.
Licence for Import of Petroleum:
- Import Requirement:
- Petroleum, except the types that
can be stored without a licence (as per sections 7, 8, and 9 of the Act),
cannot be imported into India without a licence under these rules.
- Exception:
- If someone does not have a licence,
they can still import petroleum products, but only if they have
already made proper arrangements to receive and store the imported
petroleum at licensed premises.
15.
Petroleum Exempted:
(1)
Ship’s Stores:
o The
rules do not apply to petroleum Class B or Class C that is part
of a ship’s stores, if it is manifests (declared) as such.
(2)
Petroleum for Defence Forces:
o The
rules in Sections 14, 19, and 26 do not apply to petroleum
imported by the Defence Forces of the Union.
25.
Petroleum to be Imported by Land Only at Authorized Places:
- Restriction:
- No petroleum shall be imported
into India by land unless it is brought in through places
specifically authorized for this purpose by the Central Government.
26.
Declaration, Certificate, and Licence to be Furnished for Importing Petroleum
by Land:
- Requirements for Importing
Petroleum:
- Anyone wishing to import petroleum
by land must provide the Commissioner of Customs with:
- (a)
A declaration in Form I, signed by the person or their agent.
- (b)
A certificate of storage accommodation in Form II, signed
by the person or their agent.
- (c)
The licence or an authenticated copy of the licence for
the importation and storage of the petroleum.
- Exemptions:
- These rules do not apply to
petroleum that is exempt under sections 7, 8, and 9 of the Act.
- Petroleum Class C
imported in bulk in quantities exempted under section 7 does not
require a licence under these rules.
27.
Permission of the Commissioner of Customs to Unload Petroleum:
1. Unloading
Permission:
o Petroleum
cannot be unloaded without permission from the Commissioner of
Customs.
2. Conditions
for Unloading:
o The
Commissioner of Customs will permit unloading after reviewing:
§ (a)
The testing officer’s report on the petroleum.
§ (b)
The storage certificate (Form II), if needed.
§ (c)
The import licence, if required.
o After
these checks and any other inquiries, the Commissioner deems necessary, if
everything is in order, permission to unload will be granted.
3. Exemption
for Immediate Export:
o If
the Commissioner of Customs is satisfied that the imported petroleum is
intended to be exported immediately after unloading, he may waive
the requirements of rules 14 and 26.
o In
such cases, the petroleum can be unloaded for immediate dispatch to a
place outside India, subject to conditions set by the Commissioner.
4. Other
Powers:
o This
rule does not affect the Commissioner of Customs' power to detain
petroleum under any other laws or rules currently in force.
CHAPTER III TRANSPORT
OF PETROLEUM
28.
Restriction on Leaky Receptacles:
- Rule:
- No leaky tank or container
that contains petroleum is allowed to be tendered for transport.
29.
Loading of Containers:
- Rule:
- Barrels, drums, and other
containers filled with petroleum must be loaded with the bung (cap)
facing upwards.
30.
Restriction on Passengers, Combustible and Inflammable Cargo:
- Rule:
- Except as specified in rules 38,
39, and 52, and clause (b) of rule 60, no ship, vessel, or vehicle should
carry petroleum Class A, petroleum Class B, or petroleum
Class C in bulk if it is also carrying:
- Passengers, or
- Combustible
cargo other than petroleum.
- Exception:
- This rule does not
prohibit the use of dunnage (packing material) in the case of coastwise
transport of petroleum Class A, if it is not being carried in
bulk.
31.
Prohibition of Smoking, Fires, Lights:
- Rule:
- No person
involved in loading, unloading, or transporting
petroleum is allowed to smoke or carry items that could cause
ignition, such as:
- Matches,
- Lighters,
- Any other
appliances capable of producing ignition or explosion.
32.
Restriction on Loading and Unloading by Night:
- Rule:
- Petroleum
should not be loaded or unloaded from any ship, vessel,
or vehicle between sunset and sunrise, unless:
- (a)
Adequate electric lighting is provided at the loading or
unloading area, and all provisions in Chapter IV are followed.
- (b)
Adequate fire-fighting facilities and personnel are ready at the
loading area to handle any emergencies in case of a fire.
- Exceptions:
- This rule does
not apply to the refuelling of aircraft by vessels or
vehicles licensed under these rules in accordance with the Indian
Aircraft Rules, 1937, or to refuelling by the Defence Forces of
the Union.
- Explanation:
- The Chief
Controller will determine if the electric lighting and fire-fighting
facilities are adequate or not.
PART – IV TRANSPORT
ON LAND BY VEHICLES
62.
Application:
This
part applies to the transport of petroleum on land by vehicles, but exemptions
apply for:
- Petroleum Class A
in quantities of 100 liters or less.
- Petroleum of any class
transported other than in bulk (subject to rule 67).
- Petroleum transported by the
Defence Forces of the Union.
63.
Tank Vehicles:
(1)
Vehicle Requirements:
o Every
tank vehicle used for transporting petroleum in bulk must be built,
tested, and maintained as per the requirements in the Third Schedule
and must be approved by the Chief Controller.
o In
exceptional cases, the Chief Controller may waive some of these
requirements, especially for testing better quality vehicles to improve safety
for petroleum transportation on Indian roads.
(2)
Tank Fabrication and Approval:
o Tanks
must be fabricated and mounted on the vehicle by an approved
manufacturer. The manufacturer must apply for approval with details about
their facilities and competent personnel, along with a scrutiny fee of ₹500.
o The
manufacturer must submit tank fabrication drawings in quadruplicate (4
copies) for approval, along with a scrutiny fee of ₹100.
The approval is valid for 3 years and can be renewed for another 3
years with a fee of ₹500.
(3)
Approval Process:
o If
the Chief Controller is satisfied after reviewing the drawings and conducting
any necessary inquiries, they will approve the tank design and return one copy
of the approved drawings to the manufacturer.
(4)
Exemption for Tank Wagons:
o These
rules do not apply to tank wagons used for transporting petroleum by rail.
64.
Tank Capacity:
(1)
Tank Definition:
o "Tank"
includes any number of tanks on the same vehicle chassis. The specified
capacity applies to varying temperatures.
(2)
Net Carrying Capacity:
o The
net carrying capacity (the amount of petroleum it can actually carry) of
a tank is:
§ 97%
of the gross capacity for Petroleum Class A and Class B.
§ 98%
of the gross capacity for Petroleum Class C.
(3)
Capacity Limits for Tank Vehicles:
o Tank
trucks or semi-trailers can carry:
§ Up
to 25 kilolitres of petroleum (except aircraft
refuellers).
§ Aircraft
refuellers can carry up to 50 kilolitres of petroleum.
§ Tank
trailers can carry up to 5 kilolitres of petroleum.
(4)
Weight Limits:
o The
maximum safe weight of petroleum carried in a tank vehicle is the
difference between the unladen weight of the vehicle and the maximum
gross weight allowed under transport regulations.
65.
Restriction on Other Use:
- A tank vehicle meant
specifically for transporting petroleum in bulk cannot be used for any
other purpose unless explicitly authorized by the Chief Controller
in writing.
66.
Trailers:
1. Restrictions
on Tank Trailers:
o A
tank trailer that is not exclusively used for transporting
petroleum cannot be attached to any vehicle for transporting petroleum.
o A
tank trailer transporting petroleum can only be attached to a vehicle
that is exclusively used for transporting petroleum. Moreover, only one
trailer can be attached at a time.
o A
tank trailer cannot be attached to a tank semi-trailer or any
other trailer.
2. Braking
Requirements:
o A
tank trailer or tank semi-trailer must have reliable brakes
that can be operated efficiently from the driver’s seat of the towing
vehicle.
3. Size
and Design Requirements:
o The
width of the tank trailer or tank semi-trailer must be less than
the overall width of the towing vehicle.
o The
tank trailer must be connected to the towing vehicle in such a way that it
follows the path of the towing vehicle and prevents dangerous swerving or
whipping.
4. Transport
of Different Petroleum Classes:
o If
a tank trailer carrying Petroleum Class A is attached to a
vehicle carrying Petroleum Class B or Class C, the towing vehicle
must meet the requirements for transporting Petroleum Class A.
5. Other
Restrictions:
o A
trailer that is not a tank trailer cannot be attached to a tank
truck.
o When
a tank trailer is attached to a tank truck, the total quantity
of petroleum being transported by both the tank truck and tank trailer cannot
exceed 15 kilolitres.
o A
tank trailer cannot be attached to a tank truck with a net
carrying capacity greater than 12 kilolitres.
o No
tank trailer can be used in thickly populated areas unless the district
authority grants written permission.
67.
Vehicle for Transport Otherwise than in Bulk:
1. Vehicle
Construction:
o Every
vehicle used to transport petroleum other than in bulk (e.g., in
containers) must be strongly constructed with adequate sides and back.
o In
animal-drawn vehicles, push carts, and pedal carts, the requirements for
sides and back do not apply, as long as the load is securely fastened to
the vehicle.
2. Packaging
and Projection:
o All
containers of petroleum must be packed in such a way that they do not
project beyond the sides or back of the vehicle.
3. Restrictions
on Transporting Petroleum Class A:
o Petroleum
Class A cannot be transported in trailers attached
to any vehicle.
68.
Composite Vehicles:
- Petroleum in cans or containers
cannot be transported on a tank vehicle used for transporting
petroleum, unless the vehicle complies with both:
- Rules for the transport of
petroleum otherwise than in bulk, and
- Rules for the transport of
petroleum in bulk.
69.
Carriage of Other Articles Prohibited:
- No vehicle transporting petroleum
can carry any other article at the same time, unless explicitly authorized
in writing by the Chief Controller.
70.
Engines of Mechanically Propelled Vehicles:
(1)
Engine Requirements:
o Vehicles
used for transporting petroleum (other than Petroleum Class B and Class
C otherwise than in bulk) must have:
§ Diesel
engines or internal combustion engines.
§ Exhaust
systems that are positioned in front of the tank or load
and clear from fuel systems and combustible materials. The exhaust
should also be protected from fuel spills and grease accumulation.
§ The
exhaust pipe must be fitted with an approved spark arrestor.
§ The
muffler or silencer must not be removed or tampered with.
§ Air
intake systems must have effective flame arresters
to prevent flames from the engine in case of backfires.
§ The
vehicle cab must be all-metal and have wired
glass windows. Alternatively, the cab and engine must be separated from the
tank/load by a fire-resisting shield.
(2)
Fuel Tank Safety:
o If
the fuel tank is installed behind the vehicle cab, it must:
§ Be
designed and installed safely to prevent hazards.
§ Be
protected by steel guards and have a locked filling cap.
(3)
Quick Action Cut-off Valve:
o Vehicles
running on Petroleum Class A must have a quick action cut-off valve
on the fuel feed pipe, which should be easily accessible and clearly marked.
(4)
Exemption for Helicopters and
Airplanes:
o The
engine requirements (except for the exhaust and spark arrestor provisions) do
not apply to helicopters or airplanes used exclusively for aerial
crop-spraying with Petroleum Class A.
71.
Electrical Installation:
- Rule:
If electrical equipment is used on a vehicle (including trailers) for
transporting petroleum (other than petroleum Class C), the following
precautions must be taken:
(1)
Voltage Limit:
§ The
pressure of the electric circuit must not exceed 24 volts.
(2)
Electrical Wiring:
§ Insulation:
Wiring must be heavily insulated and capable of handling maximum loads.
§ Over-current
Protection: The circuit should have fuses or automatic
circuit breakers to prevent overloading, and the wiring should be installed
in a way that avoids physical damage or contact with spilled petroleum (e.g.,
using metal conduit or other oil-resistant protective coverings).
§ Sealed
Junction Boxes: All electrical junction boxes must be sealed.
(3)
Location of Electrical Components:
§ Electrical
components such as the generator, battery, switches, and fuses
must be located in the vehicle's cab or engine compartment.
§ The
battery should be easily accessible, with a heavy-duty switch
nearby to cut off power when necessary.
(4)
Flame-proof Equipment:
§ Any
generators, motors, or switches installed outside the
engine compartment must be of the approved flame-proof type.
§ Air
circulation must be provided if electrical
equipment is placed in an enclosed space to prevent overheating and
accumulation of flammable vapors.
(5)
Exceptions:
§ The
above rules do not apply to the transportation of petroleum Class A for helicopters
and airplanes used for aerial crop spraying, provided the petroleum
is not transported in bulk.
72.
Means of Extinguishing Fire:
- Rule:
Every vehicle transporting petroleum by road must carry the following fire
extinguishing equipment:
(1)
Portable Fire Extinguisher:
§ A
10 kg dry chemical powder fire extinguisher (or equivalent) suitable for
petroleum fires must be easily accessible and removable.
(2)
Driver's Cabin Fire Extinguisher:
§ A
smaller 1 kg dry chemical powder fire extinguisher must be kept in the driver's
cabin of the vehicle.
73.
Vehicles to be Constantly Attended:
- Rule:
Every vehicle transporting petroleum by road must have at least one person
always attending to it, except under specific conditions:
(1)
General Requirement:
§ The
vehicle must always have at least one person who is familiar with the
safety rules for transporting petroleum.
(2)
Exception for Empty Tanks:
§ If
the vehicle’s tanks or compartments are empty but still contain petroleum
vapors, the vehicle can be left unattended at approved locations (as
authorized in writing by the Chief Controller).
(3)
Special Requirement for Larger
Loads:
§ For
vehicles carrying more than 5 kilolitres of petroleum (other than Class
C) or vehicles that are being trailed by another vehicle, there must be two
persons attending the vehicle while it is in motion. Both individuals must
be familiar with the transportation rules.
74.
Prohibition on Parking:
- Rule:
Vehicles transporting petroleum by road must not park:
(1)
On any public road or in congested
areas.
(2)
Within 9 meters of any source
of fire.
CHAPTER V - STORAGE
OF PETROLEUM REQUIRING LICNECE
116.
Licence for Storage:
- You cannot store petroleum unless
you have a licence, unless it's for:
- Petroleum stored in well-head
tanks.
- Petroleum stored as transit cargo
in a port, but only if approved by the port authority.
117.
Fire Safety:
(1)
No Smoking:
You can’t smoke in any storage area or service station unless the licensing
authority has specifically allowed it.
(2)
No Matches or Dangerous Items:
Don’t carry matches, fuses, or anything that could cause a fire or explosion in
storage areas.
(3)
No Open Flames or Heat Sources:
You can't have fire, furnaces, or anything that could ignite flammable vapours
in storage areas unless authorized.
(4)
Fire Extinguishers:
o Keep
enough fire extinguishers that can put out oil fires at key points in storage
areas and small installations.
o Everyone
working in these areas should know how to use the fire extinguishers.
o Installations
should follow the fire-fighting requirements in the OISD Standard-117 (for
newer installations). For older installations, fire safety should be improved
as much as possible according to this standard, with approval from the Chief
Controller.
118.
Supervision of Operations:
- All work in the storage or service
areas must be supervised by someone experienced and knowledgeable about
the rules and safety standards, and who has proper safety training.
119.
Cleanliness:
- The ground inside and around the
storage or service station must be kept clean and free from plants, waste,
or rubbish.
120.
Drainage:
(1)
Proper Drainage:
There must be good drainage around tanks so that water doesn’t collect in the
area.
(2)
Level of Enclosure:
The walls or enclosures around the tanks must not be below the surrounding
ground level.
(3)
Drainage Pipe with Valve:
If there is a drainage pipe, it must have a valve that can be operated from
outside the enclosure.
(4)
Keep Valves Closed:
Valves and openings for drainage should be closed when not in use.
(5)
Drainage Plan:
You need to show the drainage system in the plan you submit when applying for a
licence.
121.
Preventing Unauthorized Access:
(1)
The area around every storage
installation or shed must be enclosed by a wall or fence that is at least 1.8
meters high.
(2)
For service stations, the fence or wall
on all sides (except where vehicles drive in) must be at least 1.2 meters high.
(3)
Steps must be taken to prevent
unauthorized people from entering the storage or installation areas.
122.
Storage of Petroleum Only:
- You can’t use an installation,
service station, or storage shed for anything other than storing and
distributing petroleum unless you get written permission from the Chief
Controller.
123.
Tank Capacity Marking:
- The capacity (in liters or
kiloliters) of every above-ground tank must be clearly marked on the tank.
124.
Construction of Tanks:
(1)
Tanks for storing petroleum (except
well-head tanks) must be made of iron or steel, following the standards set by
the Indian Standards Institution (ISI) or another approved code. If needed,
tanks can be made from other materials.
(2)
The tanks must be placed on strong
foundations or supports made of non-combustible material, following good
engineering practices.
(3)
The height of a tank should not be more
than 1.5 times its diameter, or 20 meters—whichever is less.
(4)
There must be an air space in each tank
that is at least 5% of its total capacity, or as prescribed by the approved
code—whichever is smaller.
125.
Protection Against Corrosion:
- Tanks (other than well-head tanks)
that are installed on or below the ground must be protected against
corrosion. This can be done by using special coatings, cathodic
protection, or other methods approved by the licensing authority.
126.
Testing of Tanks:
(1)
After a storage tank is installed, re-installed,
or repaired, it must be tested for leaks using water pressure before it can be
used. This test must be done by a qualified person.
(2)
The water used for the test must not
contain any petroleum and should not be pumped through the same pipes or pumps
used for petroleum (unless the licensing authority gives special permission).
(3)
The person conducting the test must
issue a certificate confirming the test results. This certificate must be
submitted to the licensing authority when applying for or updating the licence,
or after any major repairs.
CHAPTER
VII LICENCES
141.
Grant of Licence:
- Licenses under these rules are
granted by the authorities listed in the First Schedule. You will need to
apply using the forms specified and pay the required fee.
142.
Duration of Licences:
(1)
Licences for certain purposes (like
those in Form III or Form XVII) can be granted for up to one year,
depending on what the licensing authority decides.
(2)
Other licences are generally granted for
a period up to the 31st of December of the year they are issued or renewed,
with a maximum duration of three years.
(3)
If the licence is needed for a specific
work or a short-term event (like a festival), the licensing authority can
issue it for a shorter period, even if it doesn’t last until the end of the
year.
143.
Application for Licence:
(1)
To get or renew a licence, you must
submit a written application to the relevant authority.
(2)
For specific purposes like transporting
petroleum in bulk or storing petroleum, there are different application forms:
o Form
VII:
For transporting petroleum by road.
o Form
VIII: For transporting petroleum (Class A/B) for fuelling
aircraft, heavy machinery, etc.
o Form
IX:
For importing and storing petroleum.
o Form
X:
For decanting kerosene from vehicles.
144.
No-objection Certificate (NOC):
(1)
If the Chief Controller or Controller is
the licensing authority, and you’re applying for a new licence (except for
certain specified forms), you must first apply to the District Authority for a
certificate stating that there is no objection to issuing the licence for the
site.
o You
need to submit two copies of the site plan showing the location of the
premises.
o If
the District Authority agrees, they will grant you the certificate, which you
then send to the licensing authority with your application.
(2)
The certificate must include a copy of
the site plan with the District Authority’s official seal.
(3)
If you don’t have this certificate, the
Chief Controller or Controller can refer your application back to the District
Authority for further review.
(4)
If the District Authority objects to
issuing the licence, the Chief Controller or Controller will not issue the
licence without approval from the Central Government.
(5)
The District Authority must process the
NOC request within three months of receiving the application.
145.
Licence Details:
(1)
Licence Conditions:
Every licence granted under these rules comes with specific conditions, which
you must follow. The licence will also include all the details required by the
appropriate form.
(2)
Plan of Licensed Premises:
o A
copy of the plan(s) showing the layout of the licensed premises must be
attached to the licence. This plan must be signed by the licensing authority to
show their approval.
o This
plan becomes part of the licence.
o An
identical copy of the approved plan must also be kept on file at the licensing
authority’s office for record-keeping.
o Exception:
This rule does not apply to licences in Form XVIII.
146.
Approval Needed for Changes to Licensed Premises:
(1)
No Changes Without Approval:
You cannot make any changes to your licensed premises (e.g., storage or service
area) unless you get prior approval from the licensing authority.
(2)
How to Apply for Changes:
o Submit
three copies of a detailed plan showing the proposed changes. Use
different colors to highlight the changes and explain why you need them.
o Pay
a fee of ₹400
for the review of your proposed changes.
(3)
Approval Process:
o The
licensing authority will review the plan and may visit the premises if needed.
If they approve the changes, they will return one copy of the plan, signed by
them, with any conditions for the changes.
(4)
Amending the Licence:
After the approved changes are made, you must apply to amend the licence to
reflect the changes.
147.
Amending the Licence:
(1)
Licence Amendment:
The licensing authority can amend your licence when needed.
(2)
Fee for Amendment:
The fee for amending a licence is ₹500,
plus any difference between the original fee and the fee for the amended
licence (if the amended licence requires a higher fee).
(3)
How to Apply for an Amendment:
o Submit
a completed application form (Form VII, VIII, IX, or X) depending on the type
of licence.
o Attach
the original licence with approved plans.
o If
changes were made to the premises, include three copies of the revised
plan showing the approved changes.
o Pay
the amendment fee.
o If
applicable, submit certificates for tank testing or safety (as required by
rules).
148.
Renewal of Licence:
(1)
Renewal Process:
A licence can be renewed by the authority that granted it. If the licence was
granted by the Chief Controller, it can be renewed by a Controller authorized
by the Chief Controller without any changes.
(2)
Licence Duration for Renewal:
Most licences (except those in Form III or Form XVII) can be renewed for up to three
years if the licensee has followed the rules and conditions during the
previous period.
(3)
Refund for Early Surrender:
If a licence renewed for more than a year is surrendered before it expires, the
licensee can get a refund for the unused portion of the renewal fee. However, no
refund will be given for:
o The
year when the licensing authority receives the surrendered licence, or
o Any
period during which petroleum was received or stored under the licence.
(4)
Application for Renewal:
To renew the licence, the licensee must:
o Submit
the renewal application in the appropriate form (Form VII, VIII, IX, or X).
o Provide
the existing licence, approved plans, and pay the renewal fee.
(5)
Submission Deadline:
The application for renewal must be submitted at least 30 days before the
licence expires. If submitted on time, the licence will be considered valid
until the renewal is granted or refused.
(6)
Refund for Refused Renewal:
If the licence renewal is refused, the renewal fee will be refunded after
deducting the fee for the period the licence was to be renewed until the
refusal date.
(7)
Late Renewal Fee:
o If
the renewal application is submitted late (but within 30 days after expiry),
the renewal fee will be doubled.
o If
applying for renewal for more than one year, the late fee applies only for the
first year of renewal.
(8)
No Renewal After 30 Days:
If the renewal application is submitted more than 30 days after the
expiry date, the licence will not be renewed.
149.
Refusal of No-Objection Certificate (NOC):
- If the district authority refuses
to issue a No-Objection Certificate (NOC), they must give a written
explanation for the refusal. The applicant must also be given a chance to
present their case before the refusal.
150.
Cancellation of No-Objection Certificate (NOC):
(1)
When NOC Can Be Cancelled:
A NOC can be cancelled if the district authority or state government determines
that the licensee no longer has the right to use the site for storing
petroleum.
(2)
Process for Cancellation:
Before canceling a NOC, the licensee must be given a chance to explain. If
canceled, the authority must provide written reasons and immediately send a
copy of the cancellation order to the licensee and the licensing authority.
151.
Refusal of Licence:
- If the licensing authority refuses
to grant, amend, renew, or transfer a licence, they must provide written
reasons for the refusal.
152.
Suspension and Cancellation of Licence:
(1)
Reasons for Licence Cancellation or
Suspension:
o Ceasing
Rights to the Site: The licence will be cancelled if the
licensee no longer has the right to use the site for storing petroleum.
o No-Objection
Certificate (NOC) Cancellation: If the NOC is
cancelled by the District Authority or the State Government, the licence is
also cancelled.
o Violation
of Laws or Licence Conditions: The licence can be
suspended or cancelled by the licensing authority if the licensee violates the
Petroleum Act, rules, or the licence conditions. It can also be cancelled by
the Central Government if it finds sufficient reasons.
(2)
Suspension Procedure:
o The
licensee must be given a chance to explain (be heard) before their licence is
suspended or cancelled, unless:
§ The
violation is immediate and serious (e.g., public danger), in which case the
licence can be suspended temporarily without giving the licensee a chance to be
heard. A hearing must still be given before confirming the suspension.
§ The
Central Government suspends or cancels the licence in the public interest or
for national security, and it decides that giving the licensee a chance to be
heard is not necessary.
(3)
Written Reasons:
Any authority suspending or cancelling a licence must give written reasons for
their decision.
153.
Procedure on Expiration, Suspension, or Cancellation of Licence:
1. Notification
and Disposal of Petroleum:
o If
a licence expires, is suspended, or is cancelled, the licensee must notify the District
Authority about the type and amount of petroleum in their possession. They
must also follow any directions given by the District Authority about how to
dispose of the petroleum.
2. Temporary
Licence:
o A
temporary licence can be granted for up to three months after a licence
expires, is suspended, or is cancelled. This temporary licence is only for the
petroleum that was already in storage at the time the original licence expired
or was cancelled.
o If
the original licence was granted by an authority other than the District
Authority, the District Authority must get approval from the original authority
before issuing a temporary licence.
3. Temporary
Licence Fee: The fee for the temporary licence will
be proportionate to the time it is valid, compared to the full yearly fee of
the original licence.
154.
Appeals:
(1)
Appeals Process:
o If
a licence is refused, amended, renewed, suspended, or cancelled, the decision
can be appealed:
§ To
the Central Government: If the Chief Controller made the
decision.
§ To
the Chief Controller: If a Controller made the decision.
§ To
the official superior of the District Authority:
If the District Authority made the decision.
§ To
the official superior of the officer who manages vessels carrying petroleum:
If the decision relates to vessels.
(2)
Appeal Against NOC Cancellation:
If a District Authority cancels a No-Objection Certificate (NOC), the
appeal goes to the authority directly above the District Authority.
(3)
Appeal Submission:
o The
appeal must be made in writing and should be submitted within 60 days of
the order.
o The
appeal must include a copy of the order being appealed.
155.
Supply of Rules:
- When a licence is granted for the
storage of petroleum, the licensee will receive an extract of important
rules, free of charge. These rules cover:
- Rules related to general
conditions (Rules 3-12).
- Safety, storage, and operational
procedures (Rules 102-134).
- Rules regarding alterations,
renewals, and appeals (Rules 146-159).
156.
Transfer of Licence for Storage:
(1)
Application for Transfer:
o A
licensee can apply to transfer their petroleum storage licence to another
person before it expires.
(2)
Documents Required for Transfer:
o A
letter from the current licensee, stating the full name and address of the
person to whom the licence is being transferred.
o An
application (Form IX) filled out and signed by the person to whom the licence
is being transferred.
o A
fee of ₹500.
(3)
Approval of Transfer:
o Once
the licensing authority receives the application and fee, if they approve the
transfer, they will add an endorsement on the licence, stating that it has been
transferred to the new person.
(4)
Rights and Obligations:
o The
person receiving the licence will have the same rights and responsibilities as
the original licensee under the terms of the licence.
157.
Procedure on Death or Disability of Licensee:
(1)
During Disability or Death:
o If
the licensee dies, becomes insolvent, mentally incapable, or is otherwise
disabled, the person continuing the business is not liable for penalties or
confiscation for using the licence. This grace period is allowed while they
apply for a new licence for the unexpired portion of the original licence.
(2)
Application for New Licence:
o The
person taking over must apply for a new licence for the unexpired portion of
the original licence and submit a no-objection certificate (NOC) from
the District Authority.
(3)
Fee for New Licence:
o A
fee of ₹200
is charged for the new licence for the remaining period of the original
licence.
158.
Loss of Licence:
- If the original licence is lost
or destroyed, the licensee can apply for a duplicate licence.
To do this, they must submit a copy of the original plan(s) and pay a fee
of ₹200.
159.
Production of Licence on Demand:
(1)
Showing Licence:
o A
person holding a licence must produce the licence (or an authenticated copy)
when asked by an Inspector at the licensed premises.
(2)
Authenticating Copies:
o Copies
of a licence can be authenticated by the authority that issued it:
§ A
fee of ₹50
is charged for each authenticated copy.
§ The
original plans (or copies identical to the approved plans) must also be
submitted.
160.
Procedure on Reports of Infringement:
- If there is a report of an
infringement of the Petroleum Act or these rules, the District
Authority must inform the Chief Controller about the actions
they have taken regarding the infringement.
161.
Executive Control Over Authorities:
- All authorities (other than the
Central Government) acting under this chapter must perform their duties
under the control of the Central Government.
- However, this does not affect the Chief
Controller's executive control over subordinate officers.
THE END