Regulations Regarding the Procedures for the Installation and Use of Direct Lines of Natural Gas

Issued pursuant to
Section 42.², Paragraph two of the Energy Law

1. These Regulations prescribe the criteria and procedures by which a direct line of natural gas (hereinafter - the direct line) shall be installed and used.

2. The Public Utilities Commission (hereinafter - the Regulator) shall issue a permit for the installation of the direct line by complying with the following criteria:

2.1. the direct line is intended to be installed to connect a segregated natural gas (including biomethane) production object or natural gas storage facility with a segregated object of a natural gas user (hereinafter - the user);

2.2. the user and natural gas producer or storage system operator have agreed on the installation of the direct line, conditions for the transportation of natural gas and accounting of the natural gas transported through the direct line (installation of accounting measuring equipment);

2.3. the installation of the direct line does not significantly affect the fulfilment of the conditions of the licence issued to the system operator in the licence operation area of which the direct line will be installed;

2.4. the installation of the direct line does not significantly affect the operation of a competitive and safe natural gas market.

3. In order for the Regulator to decide on granting the permit for the installation of the direct line, the user, natural gas producer or storage system operator (hereinafter - the applicant) shall submit the following documents to the Regulator:

3.1. the application for the permit for the installation of the direct line (in Annex);

3.2. the scheme of the geographical positioning of the planned direct line;

3.3. the agreement between the user and natural gas producer or storage system operator on the installation of the direct line, conditions for the transportation of natural gas and accounting of the natural gas which is being transported along the direct line (installation of accounting measuring equipment);

3.4. the confirmation that the object of the user is not connected to the natural gas system.

4. The applicant shall be responsible for the veracity of the provided information and ensure the conformity of the submitted documents to the requirements of the Law on Legal Force of Documents.

5. The application for the permit for the installation of the direct line shall be regarded as submitted on the day when the Regulator has received all the documents indicated in these Regulations and necessary information. If the information indicated in the submitted documents is not sufficient or correct, the Regulator is entitled to request additional information from the applicant.

6. If the information necessary for taking a decision is missing from the submitted documents, the Regulator shall postpone the examination of the issue and determine a time period for the submission of additional information by informing the applicant thereof. The issue shall be examined after the necessary information or documents have been received from the applicant. A time period from postponing the examination of the issue until receipt of the information or documents shall not be included in the time period laid down in Paragraph 9 of these Regulations.

7. If the applicant has not submitted all the information or documents necessary for taking a decision within the time period laid down by the Regulator, the Regulator may refuse to issue the permit for the installation of the direct line.

8. After receipt of the documents laid down in Paragraph 3 of these Regulations, the Regulator shall request an opinion from the system operator in the operation area of which the direct line is intended to be installed on the influence of the direct line on the fulfilment of the conditions of the licence issued to the system operator. If the installation of the direct line significantly affects the fulfilment of the conditions of the licence issued to the system operator, the system operator shall also include in the opinion the information on the financial possibilities of the system operator and technical possibilities of objects or infrastructure to ensure installation of new natural gas system connection for the applicant.

9. The Regulator shall, within 30 days after receipt of all the documents laid down by the Regulator, examine the application and take one of the following decisions:

9.1. to issue the permit for the installation of the direct line by determining the conditions and time periods for the installation of the direct line;

9.2. a reasoned refusal to issue the permit for the installation of the direct line if the installation of the direct line would cause obstacles for the system operator to fulfil the conditions of the licence issued to the system operator or adversely affect the operation of a competitive and safe natural gas market.

10. The Regulator shall cancel the permit for the installation of the direct line if the applicant:

10.1. has submitted a substantiated proposal to cancel the permit for the installation of the direct line;

10.2. has not installed the direct line within the time period laid down by the Regulator;

10.3. has not fulfilled other conditions of the permit.

11. The Regulator shall take the decision to cancel the permit for the installation of the direct line within 30 days from the receipt of the applicantʼs proposal or from the moment when the Regulator determines the conditions referred to in Sub-paragraphs 10.2 and 10.3 of these Regulations.

12. The applicant who has obtained the permit for the installation of the direct line shall ensure the installation of the direct line within the time period laid down in the permit and in accordance with the procedures laid down in the laws and regulations governing the construction. The Regulator may, upon having evaluated the motivated request of the applicant, extend the time period laid down in the permit for the installation of the direct line.

13. The user shall enter into the co-operation agreement with the natural gas producer or storage system operator in which the rights, obligations and responsibility of the parties are laid down in order to ensure the necessary natural gas flow in the direct line and safe operation of the direct line, objects of the user and natural gas producer or storage system operator, and also agree on the procedures for the exchange of information.

14. After the installation of the direct line, the user has permanent commitments to ensure proper technical condition of the direct line up to the mutually determined border of belonging of the natural gas supply system, to use the direct line, to carry out maintenance and repair in conformity with the technical safety requirements laid down in energy and the requirements of the standards applicable to the natural gas supply systems the list of which has been recommended for the national standardisation authority by the Ministry of Economics in co-operation with the relevant standardisation technical committee, and the list of which is published on the website of the national standardisation authority.

15. The user shall ensure that activities which are related to technical servicing, maintenance, repair and technical supervision of the direct line shall be carried out by such personnel the qualification of which meets the requirements laid down in laws and regulations. The user shall be responsible for the detection and liquidation of possible emergencies in the direct line.

16. If the user enters into the respective agreement with the natural gas producer or storage system operator, the fulfilment of the obligations laid down in Paragraphs 14 and 15 of these Regulations may be ensured by the natural gas producer or storage system operator.

17. These Regulations shall come into force on the day after their publication in the official gazette Latvijas Vēstnesis.

Chair of the Board of the Public Utilities Commission R. Irklis

Translation © 2018 Valsts valodas centrs (State Language Centre)