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Law Of Regulation Of The Sector Of Gas Fuels, 22-6-2000

Original Language Title: Llei d'ordenació del sector dels gasos combustibles, de 22-6-2000

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Law of gas sector fuels since the General Council at its session of 22 June 2000 has approved the following: law of regulation of the sector of gas fuels preamble The gasification of Andorra began thirty years ago and suffered a decline during the 80 's, with a new and important increase in the last five years, especially regarding the gasification with network. This has been made possible by the high degree of gasification of the neighbouring countries, caused by the construction of major transport pipelines and a distribution network that reaches in the foothills of the Pyrenees.

The energy that comes from fuel gases has been increasingly expressed as an energy able to replace the production of liquid petroleum fuels, heat and reduces the environmental impact generated by its combustion.

On the other hand, the transport and the supply of fuel gases require special conditions, both in terms of strategic reserves and minimum levels of security must have.

The need to plan for the sector of the fuel gas is obvious for a number of reasons: the guarantee of current and future supply needs of the country, the level of security in their use, the guarantee of provision of a service in optimal conditions to all users, improving the efficiency and performance of the facilities, and the protection of the environment are the most important.

On the other hand, the strategic nature of the import and the primary storage and distribution of gas in national networks and/or parochial, it is equally obvious, since it depends on the guarantee of the supply to the users. This strategic nature, coupled with the small geographic size of the Principality and the scale equally small, in relative terms, of consumption, necessarily lead to design a system of unified management of those services, under the direct responsibility of the general administration.

This law aims to establish the basis for the planning of the gas service of the Principality, in its triple aspects of the import, storage and distribution. Thus, the title, and begins to assert the public service character of the supply of fuel gases, its definition and the exemptions and credits to the Government the competition to their planning and management. Below is set as it should be managed the distribution service and the supply of the basic network of national gasification, differentiating it from those other services not included in the network. And finally determines the guarantee of supplies to users.

The title II is intended specifically to the scheme of distribution. Here, without going into distinctions with respect to the form of service management, establish the rights and obligations of distributors and users. The law also establishes the major principles regarding the conditions of the provision of the service without logging in, but, in particular technical regulation which, by its nature, is subject to regulation, and should be developed by the Government.

Title III governs the procedure of occupation of the public domain and the expropriation necessary to ensure the supply of gas to various users and consumers, when this supply is carried out through the basic network service.

The title IV regulates the conditions of security that have to observe the facilities, the equipment and the devices that are used in the production, storage, transport, packaging, distribution, supply, use or consumption of fuel gases, the prescriptions that must observe the security regulations specific to each category and the procedures for inspection and review in order to prevent and avoid the risks that can occur in the different manipulations of fuel gases.

In title V regulate the infractions and sanctions that, by their nature, have to find a proper definition in the framework of the law, without prejudice to later be complemented by regulations.

The additional provisions transitional and aim to anticipate major adaptation of the current situation of the sector in the conditions of the law. At the same time, contain the creation of a register of suppliers, and establish a right to preferential acquisition by the Government in the transfer of the ownership of the concessionaires of the basic network.

Title i. General provisions Article 1 scope and purpose of the law 1. The activities of import, storage, packaging, distribution, supply, gasification and consumption of fuel gas in the territory of the Principality of Andorra in general are regulated by this law and the regulatory provisions that set forth.

2. For the purposes of this law, it is understood as a combustible gases liquefied petroleum from now on LPG and natural gas, hereinafter referred to as GN.

3. The regulation of these activities is to ensure the adequacy of the supply of fuel gas for the needs of consumers, their rationalization, optimization and security, taking into account the objectives of the energy policy planning of the gas sector.

Article 2 legal status the activities aimed at the import, storage, packaging, the gasification, distribution and the supply of fuel gases constitute an essential public service to the community.

Article 3 Competence 1. Corresponds to the General Council: Ratified, by law, the granting, cancellation, expiration and termination of the concessions that are to the benefit of the service of distribution and supply of fuel gas by means of the basic network of gasification.

2. The Government, in the terms established in this law: a) The planning of the national gasification system and the planning of the activities of import, export, storage, packaging, distribution, and consumption of supply, gasification fuel gases.

b) Establish the basic regulation corresponding to the activities referred to in this law.

c) Fix the types and prices of supplies.

d) Establish the minimum requirements of quality and safety that have to govern the supply of fuel gases.

e) Authorize the facilities that make up the basic network of gasification, as well as those other facilities referred to in this law when its use affects more than one parish.


f) Authorise the suppliers and distributors of gas.

g) Authorize the commercial activities of import, sale and resale of gas.

h) Impart, in the sphere of their competence, instructions relating to the extension, improvement and adaptation of the infrastructures of transport and distribution of gas fuels in guarantee of adequate quality and safety in the field of energy.

and) Inspect, in the scope of their competence, compliance with the technical conditions and, if applicable, economic, that are required.

j) Inspect the compliance with the maintenance of minimum stocks of the suppliers that are required.

k) Punish the Commission of the offences set forth in this law in the field of their competence.

3. Is in the Commons within the scope of its powers: to) Authorize the suppliers and distributors of fuel gases.

b) Authorise the storage facilities, packing, gasification and fuel gas distribution, when these will limit within the term of the parish.

4. The Government can agree on collaboration agreements with the most effective management to achieve a common administrative actions related to the facilities referred to in this law.

5. In the procedure of preparation and approval of plans of gasification that will affect audience in the Commons for a period of twenty days, in which you will be able to consult the documentation and present the allegations deemed relevant.

Article 4 Planning the planning of national gasification system extends to the entire territory of the Principality of Andorra and is done jointly for all activities, taking into account the following criteria: to) the security of people and goods in the import activities, storage, packaging, distribution, supply and gasification gas consumption fuels in any form.

b) Guarantee of the supply based on the forecast of the demand of the users of the sector.

c) improvement of the efficiency, performance and the technological development of the installations of gas.

d) protection of the rights of the users.

e) establishment of the lines of action in the field of quality, in order to improve the service received by users and the efficiency and to achieve energy savings.

f) financing of the costs of the different activities, with the prices of gas.

Article 5 Coordination with plans of spatial planning and road infrastructure 1. The planning of installations of gas transport and storage of the strategic reserves, as well as the general criteria for the locations of the sale of the products, must be taken into account in the corresponding instruments of spatial planning, urban planning or planning of road infrastructure as appropriate, insofar as possible, properly qualifying facilities land and establishing the reserves of land necessary for the location of the new facilities and protecting the existing ones.

2. In cases which have not been taken into account the planning of these facilities in the planning instruments or planning described in the previous section, or when justified reasons of urgency or of exceptional interest for the supply of fuel gases, you should advise the establishment, and that by virtue of the provisions of other laws is a mandatory instrument of spatial planning or planning according to the type of soil affected , you need to stick to what is available in the legislation on the regime of soil that is applicable.

Article 6 Other authorizations authorizations, permits and concessions subject to this law must be without prejudice to any other authorizations that works, the buildings and the facilities needed for their development could need for tax reasons, of planning and urban development, protection of the environment and requirements of the relevant sectoral legislation or security for people and property.

Article 7 minimum Stocks up 1. The fuel gas suppliers in the network must maintain at all times a minimum stock of products in the amount, the form and the geographic location that the Government determines by regulation, up to a maximum of 60 days of their annual sales.

2. The supplying companies and all that company that provided logistics services fuel gases are forced to comply with the guidelines issued by the Ministry responsible for fuel gases with respect to facilities, maintenance, safety, quality of the products and input of information. Equally, they are forced to put at the disposal of the Government priority supplies that point for reasons of strategy or difficulty in the water supply.

3. The users ' facilities must be designed to ensure a supply of no less than thirty days, in the period of maximum demand.

Article 8 basic network of national gasification the import, storage, gasification and gas transport fuels, integrated into the basic network of national gasification reserve, for its strategic nature, in the general administration, which will be able to exploit it by means of one of the systems provided for in article 9.1 of this law.

Article 9 Distribution and supply 1. The provision of the public service of distribution and the supply of fuel gases for network is susceptible to direct management by the Government, by means of a company or a public company, or indirect management in a franchise regime. When the provision of the service is limited exclusively within the scope of a parish will be susceptible to direct management by the communal Administration in the same conditions as those set out in this point to the general administration. Are excluded from the basic network installations for the supply of fuel gas, storage, transport and distribution of which are located in its entirety within a private domain and not supplied directly from the basic network. Does not include those facilities which are supplied from mobile containers, regardless of their ability.

2. concessionary companies in the sector have to have as exclusive object the distribution and the supply of fuel gases, excluding


any other. Must have the technical capacity and the personal, technical and financial resources sufficient for the provision of the service, which will be determined by the regulations, and conform to the forecasts of the national gasification system planning.

3. The deadline by which will make the concessions of the fuel gas supply and distribution service is specified in the laws that legitimise.

Article 10 Export the export of fuel gas is subject to authorization, you must grant the Government, after the preliminary report of the organ that has attributed to the planning of the national gasification system that should have as an object to verify that it is compatible with the objectives of energy policy. In any case, you can only grant the authorisation to export companies that import fuel gases.

Article 11 suppliers are companies supplying companies, whether public law or private law, which provide public service: a) of import, storage, gasification and gas transport network fuels.

b) import, packaging, storage and distribution of fuel gas in any form.

Article 12 companies distributors 1. Are companies distributors businesses, whether public law or private law, which provide public service in the form of fuel gases reseller mobile containers, as a delegation of the suppliers.

2. The suppliers are considered in themselves as companies distributors.

3. The owners of the fuel gas receiving facilities for consumption, are responsible for that their facilities comply with the technical conditions and safety regulations are required, as well as its correct maintenance.

4. The companies distributors supplying fuel gases have to require the owners of the facilities the documentation accrediting compliance with the above obligations.

Article 13 authorisation of the supplying companies and distributors that applicants for authorisation to act as suppliers and distributors must certify compliance with the following conditions: 1. The legal, technical and financial capacity to carry out their activity. The Government will regulate by regulation the requirements.

2. Guarantee the fulfilment of the obligations of maintenance of minimum stocks of security that determines in article 7 of this law.

3. Compliance with the facilities of the technical conditions and that established by the regulations.

Article 14 users are users of the natural or legal persons who are established and in force with a company a contract for the supply of fuel gas for its own use, called supply contract.

Article 15 Guarantees of supply 1. All consumers have the right to the supply of fuel gases, under the conditions provided for in this law and in the regulations and the rules that develop.

2. In situations of scarcity of supply, the Government, by Decree, may adopt in the area of the law, with the duration and the exceptions which are determined, inter alia, one or more of the following measures: a) suspension of exports of fuel gases.

b) limited opening hours and days of installations for the supply of fuel gases.

c) Subjection to a regime of performance of minimum security stocks.

d) limitation or allocation of supplies to consumers of all types, as well as restrictions on their use.

e) intervention in the retail prices of various products.

Article 16 gas rates Fees cover the various kinds of supply, both to dealers and users, are unique to the whole territory of the Principality and are fixed by Decree of the Government.

Title II. Distribution and supply of fuel gases Chapter i. General rules Article 17 facilities Licensing Regime 1. Need the prior permission of the Government, in the terms provided for in this law and the regulations that develop, the following facilities for the supply of gaseous fuels users: a) the gasification of natural gas (NG).

b) storage facilities, transportation and distribution of natural gas (NG).

c) the storage and distribution of natural gas (NG).

of) the storage and distribution of liquefied petroleum gas (LPG) and mixtures of gases and air for the supply to the network.

e) packaging facilities of liquefied petroleum gas (LPG).

2. Can be made freely, without any further requirements that are related to the technical compliance with the provisions of title IV and environmental safety in the facilities, storage, distribution and supply of LPG to a user, the users of the same block of flats or private housing development, when pipes do not discorrin for public domain.

Chapter II. Natural gas system Article 18 Subjects acting on the system the activities intended for the supply of natural gas (NG) for channeling must be developed in the regimes provided for in article 9 of this law.

Article 19 gasification system and basic network of natural gas 1. The gasification system comprises the following facilities: those included in the basic network, distribution networks and other complementary facilities.

2. For the purposes set out in this law, the basic network of natural gas is made up of: a) The gas pipelines of natural gas maximum pressure of superior service to 4 bars.

b) liquid natural gas regasification plants.

c) The strategic products of natural gas.

their international connections) of the system of gasification with other external systems.

3. Distribution networks cover the gas pipelines with maximum pressure of less than or equal to 4 design bars and those others who, irrespective of their maximum pressure of design, have to drive the consumer gas from a pipeline of the basic network.

Article 20 classification of consumers for the purpose of acquisition of the gas consumers are classified in: a) qualified Consumers, which are those whose facilities are located in the same location and have at all times the consumption in the seventh additional provision. These consumers will acquire the gas in freely agreed conditions.


b) unqualified Consumers, they will acquire the gas in tarifa.

With the exception of express agreement to the contrary, the transfer of the ownership of the gas shall be considered produced at the time in which you have out of the consumer's meter.

Article 21 technical standards of the system 1. The Government has approved the rules of technical management of the system that have as an object to promote the technical functioning of the system and ensure the continuity, quality and security of supply of natural gas.

2. The rules of technical management of the system of regular, at least the following aspects: a) the mechanisms to guarantee the necessary level of supply of natural gas of the system in the short and medium term and the maintenance of minimum stocks of security.

b) coordination procedures that guarantee the correct operation and maintenance of the gasification facilities, storage and transport, in accordance with the criteria of reliability and safety required, with the specific provision of the action plans for the replacement of the service in case of General failures in the supply of natural gas.

c) control procedures of the inputs and the outputs of natural gas towards, or from the gas system.

of) the procedure of management and use of international interconnections.

e) the procedure on the measures to be adopted in the case of emergency situations and lack of sourcing.

Article 22 obligations of holders of permits for the import, the gasification, the transport, the storage and distribution of natural gas Are holders of permits for the import, the gasification of liquefied natural gas, the transport, the storage and distribution of natural gas, have the following obligations: to) carry out their activities in the form authorized and in accordance with the applicable provisions giving a regular and continuous service, with quality levels that determine and maintain the facilities in the conservation conditions and appropriate technical suitability, following, where appropriate, the instructions given by the competent authorities.

b) make acquisitions for natural gas necessary to meet requests for the supply of various consumers.

c) to provide the competent authorities the information established by the regulations, with the detail and frequency to be determined.

Chapter III. Liquefied petroleum gas system Article 23 Subjects acting on the system the activities aimed at the supply of liquefied petroleum gas are developed for the following subjects: 1. supply Facilities via network: a network related Facilities) Basic: in the scheme foreseen in article 9 paragraph 1 of this law.

b) Facilities not included in the basic network: companies supplying.

The owners of installations for the supply of fuel gas, storage, transport and distribution of which are located in its entirety within a private domain and not supplied directly from the basic network.

2. supply Facilities by means of mobile containers: companies supplying.

The companies distributors.

Article 24 gasification system and basic network of liquefied petroleum gas 1. The gasification system comprises the following facilities: those included in the basic network, distribution networks and other complementary facilities.

The gasification of the basic network is done through propane gas or a mixture of propane and air.

2. For the purposes set out in this law, the basic network of liquefied petroleum gas is made up of: a) The gas pipelines of propane gas or a mixture of air and propane gas maximum pressure of superior design in 4 bars.

b) liquefied propane gas gasification plants or propane gas and air.

c) packaging plants of mobile containers.

d) The strategic liquefied petroleum gas storages.

e) international connections of the gasification system with other external systems.

3. Distribution networks cover the gas pipelines with maximum pressure of less than or equal to 4 design bars and those others who, irrespective of their maximum pressure of design, are intended to drive the consumer gas from a pipeline of the basic network.

Article 25 classification of consumers 1. For the purposes of the classification of consumers will apply the provisions of article 20 of this law.

2. The transfer of the ownership of the gas in the form of mobile containers shall be considered produced at the time in which they are delivered to the consumer.

Article 26 technical standards of the system 1. The Government approved the technical management of the system that have as an object to promote the technical operation of the system and ensure the continuity, quality and security of the supply of liquefied petroleum gas supplied with network and their coordination with the basic network of natural gas; It will assess the appropriateness of design and build facilities for the distribution of natural gas, as well as the guarantee of the supply in the form of mobile containers.

2. The rules of technical management of the system of regular, at least, the aspects provided for in article 21 of the Act for the particular case of liquefied petroleum gases.

Article 27 Obligation of holders of authorisations for import, the gasification, packaging, transport, storage and distribution of liquefied petroleum gas Are holders of permits for the import, the gasification, packaging, transport, storage and distribution of liquefied petroleum gas, have the following obligations: to) carry out their activities in the form authorized and in accordance with the applicable provisions giving a regular and continuous service, with quality levels that determine and maintain the facilities in the conservation conditions and appropriate technical suitability, following, where appropriate, the instructions given by the competent authorities.

b) to carry out the acquisition of liquefied petroleum gases in order to meet the requests of the various supply consumers.

c) to provide the competent authorities the information established by the regulations, with the detail and frequency to be determined.

Chapter IV. The supply of gaseous fuels Supply Article 28 1. The supply of gaseous fuels made by suppliers and/or distributors in the way that they have been authorized.


2. The supplies to consumers, in tarifa, are governed by a supply contract approved by Decree of the Government, which can take into account the situation of those who by their volume of consumption or supply conditions, require a specific contractual treatment.

3. The supply to consumers is regulated by regulation taking into account, as a minimum, the following aspects: a) the modalities and conditions of supply to consumers.

b) deadlines on what will be required of the supply, the causes and the procedures of denial, suspension or deprivation.

c) the regime of verification and inspection of the facilities receiving consumers.

d) the procedure of measurement of consumption by means of the installation of devices of measurement and the verification of these devices.

e) the procedure and conditions of invoicing and payment of supplies and services carried out.

Article 29 obligations and rights of suppliers and distributors in connection with the supply 1. Are obligations of the suppliers and distributors, in relation to the supply of gaseous fuels, the following: a) to attend, in conditions of equality, the demands of new gas supplies to areas in which they operate, and the supply contracts in accordance with the established by the administration.

The conditions and procedures for the establishment of the dams and the connection of new users to the distribution networks have been regulated by regulation.

b) Proceed to the measurement of supplies in the manner to be determined by regulation, preserving-in any case, its accuracy and accessibility to the corresponding devices, facilitating the control of the competent administration.

c) applied to consumers the appropriate rate.

d) Inform consumers about choosing the most convenient rate for them, and on issues relating to the supply of gas.

e) to implement demand management programs approved by the administration.

f) Ensure a rational use of energy.

g) Acquire the gas necessary for the development of the activities.

h) Maintaining an operating system that will ensure the permanent attention and resolution of the events that, with urgent, can present themselves in the distribution networks and in the consumers ' premises in tarifa.

and the previous tests) to the supply that is defined by the regulations.

j) carry out inspection visits to the facilities existing receptor, with the periodicity defined in the regulations apply.

2. The suppliers and distributors have the right to: a) Require that the facilities and equipment of the users comply with the technical conditions and construction to be determined, as well as their proper use and compliance with the conditions laid down for the supply takes place without diminishing or degrade their quality for the other users.

b) Check and charge the supply carried out.

c) request the verification of the correct operation of the measuring equipment of supplies.

d) without prejudice to the responsibility that is derived from the obligations corresponding to the suppliers and distributors in accordance with the provisions of this article, the owners of the gas receiving facilities or installations for consumption, are responsible for the proper maintenance on the technical conditions and security that are required.

Article 30 Programs of management of the demand The suppliers and distributors, in coordination with the various agents that Act on the demand, can develop action programmes which, through an adequate management of the demand for gas, in order to improve the service that is provided to users and the efficiency and energy saving.

Article 31 quality of the supply of gaseous fuels 1. The supply of gaseous fuels must be carried out by the holders of the authorisations provided for in this law, on an ongoing basis when so engaged and with the characteristics to be determined by regulation.

2. For this reason, the gas companies, including system maintenance and maintenance companies, must have the staff and the necessary means to ensure the quality of service required by the regulations in force.

3. gas companies and, in particular, the suppliers and distributors, should promote the incorporation of advanced technologies to the extent and for the quality control of the supply of gaseous fuels.

4. If the low quality of the distribution of an area is continuous, or it may produce serious consequences for users, or there are special circumstances that can put in danger the security of the gas service, the Government will establish the guidelines for action, execution and implementation, which will have to be made to the suppliers or distributors, as applicable , to restore the quality of the service.

5. If that individual quality of service provided by the company is less than the required, apply the reductions in the turnover paid by the users, in accordance with the regulatory procedure to be determined.

Article 32 Inspection Authority 1. The competent services of the Government must have, ex officio or at the request of a party, the practice of all necessary checks and inspections in order to verify the regularity and continuity in the provision of supply, and also to ensure the safety of people and property.

2. The inspections referred to in the previous paragraph must ensure at all times because it kept the characteristics of gaseous fuels supplied within the authorized limits officially.

Article 33 suspension of supply 1. The supply of gaseous fuels to consumers only can be discontinued when the record this possibility in the contract for the supply, which cannot invoke technical problems or prevent it economic, or due to force majeure, or for situations that may derive from certain threats to the security of people or things, except as provided for in the following sections.

2. In the case of supply to qualified consumers need to stick to the terms of supply or guarantee of suspension that have been agreed.

3. You can temporarily suspend the supply when this is essential for the maintenance, security of supply, repair of facilities or the improvement of the service. In all these cases, the


suspension requires the prior authorization of the competent body and communication users in the manner to be determined by regulation.

4. Under conditions to be determined by the regulations may be suspended the supply of gaseous fuels for private consumers network subject to fare when they spent two months since it has been reliably, without payment required this cash has been made. For these purposes, the requirement should be made by any medium that allows them to have a record of the receipt by the interested party or his representative, as well as the date, identity and the content.

5. In the case of public administrations, after two months since it has been reliably, without payment required this has been effected, will begin to generate interests that will be equivalent to the legal interest rates increased 1.5 points. If at the end of four months from the first request the payment has not been made effective, it may interrupt the supply.

6. under no circumstances can be suspended the supply of gaseous fuels for network installations, the services of which have been declared as essential. Have been set by regulation the criteria to determine which services should be understood as essential. However, the suppliers or distributors may affect payments to those customers who have supplies linked to services declared as essential in default situation, to payment of the invoices corresponding to these services, regardless of the client, public or private, have attributed to these payments.

7. Once the payment of the debt by the consumer that it has suspended the supply, it must be rested immediately.

Article 34 technical standards and security of facilities 1. Gasification facilities, storage, packaging, transportation and distribution of gaseous fuels, receiving facilities for users, consumer equipment, as well as the technical and material elements for the facilities of gaseous fuels, must conform to the regulations and technical standards of industrial safety pertaining, in accordance with the provisions in title IV of this law.

2. technical regulations in the matter must have as an object: to) protect the people and the integrity and functionality of the goods that could be affected by the facilities.

b) Achieve the required regularity in supplies.

c) Set the rules of standardization to facilitate inspection of the facilities, prevent excessive diversification of the material and unify the conditions of the supply.

d) obtain the maximum rationality and the most economic use of the facilities.

e) to increase the reliability of the facilities and improving the quality of supplies of gas.

f) protect the environment and the rights and interests of consumers and users.

g) Get adequate levels of efficiency in the use of gas.

Without prejudice to the remaining authorizations covered in this title and for the purposes provided for in this article, the construction, extension or modification of the gas installations require the corresponding permission in the terms is available for regulation.

Article 35 coverage of risks The Government should adopt the necessary measures and initiatives to establish the obligation of coverage of risks for people and goods, may arise from the exercise of the activities regulated by this title.

Chapter v. financial Regime Article 36 of the activities regulated by law 1. The activities aimed at the supply of gaseous fuels are economically paid in the manner provided for in this law and provisions in the tariffs, tolls and fees determined by the Government and the prices paid by customers qualified, if this is the case.

2. Will establish by regulation the economic regime of connection, rental of counters and other necessary costs related to the facilities.

The rights that you have to pay for the connections must be unique throughout the territory of the Principality in terms of maximum flow commences and the location of the supply. The income for this concept is deemed, for all purposes, compensation of the distribution activity.

Article 37 criteria for the determination of the rates, tolls and fees 1. The tariffs, tolls and fees should be set so that their determination to respond as a whole to the following criteria: a) to ensure the recovery of investments made by the owners in the periods of life of these investments.

b) allow a reasonable return of invested financial resources.

c) to determine the remuneration system of the exploitation costs so that motivate an effective management and an improvement in productivity that should impact on users and consumers.

d) does not produce distortions between the supply system in rates and the system excluded of this regime.

2. The system for the determination of the rates, tolls and charges should be set for periods of four years, and in the last year of validity must proceed to a review and adjustment, if any, of the situation predicted for the next period.

3. Companies that carry out the activities regulated by this title, must provide to the Ministry in charge of the competent Department, all the information that is necessary for the determination of the rates, tolls and fees.

Article 38 Rates of gaseous fuels the Government, by Decree, at the proposal of the Ministry in charge of the competent Department, should dictate the provisions necessary for the establishment of the prices of natural gas and liquefied petroleum gas to end consumers and you must set specific values or a system of determination and automatic update. The prices of sale users are unique for the whole territory, without prejudice to their specialties.

Article 39 tolls and fees 1. The Government, by Decree, at the proposal of the Ministry in charge of the competent Department, should dictate the provisions necessary for the establishment of tolls and fees and must be set to specific values, or a system of determination and automatic update.

2. The tolls and fees corresponding to the use of gasification plants, packaging, storage or transport networks or distribution, without


prejudice to their specialties, are unique to levels of pressure and use made of the network and of the characteristics of consumption.

3. The procedure of imputation of the losses of natural gas in the transportation and distribution should be determined by regulation, taking into account the pressure levels and the ways of consumption.

Article 40 Payment and liquidation of the rates and prices 1. The rates of gaseous fuels are charged to the companies that make the gas distribution activities by selling to consumers, and must give the amounts deposited into the application that is appropriate, in accordance with the provisions of this law.

2. The procedure of payment which have to follow consumers qualified for their acquisitions of gas must be set by regulation. In any case qualified consumers must pay, in addition, the costs of the activities necessary for the supply of gaseous fuels and costs of diversification and security of supply, if it is the case, in the proportion that are appropriate.

Article 41 price Liberalization 1. When the market situation makes it advisable, the Government can agree on the total or partial liberalization of the rates, tolls and charges regulated in this chapter.

2. In exceptional cases, the Government may establish the maximum prices of gas apply to sales made to consumers qualified, when the lack of development of the market of the gas or the domain of the market situations make this advisable.

Chapter VI. Security of supply Article 42 supply Security 1. The suppliers have to maintain a minimum stock of security equivalent to thirty days of your sales firm.

2. The companies distributors must maintain a minimum stock of security equivalent to fifteen days of its sales firm.

3. fixed the storages of liquefied petroleum gas is not connected to the basic network, must be designed to store, at least, the equivalent of 30 days of consumption in firm.

4. These obligations can be met by the holder required, with gas from their property or arrendant and the contractor, if applicable, the corresponding storage services. The Ministry of the competent department can increase, depending on the availability of the system, the number of days of strategic storage up to a maximum equivalent to sixty days of firm sales.

Article 43 Government Control The competent services of the Government may inspect compliance with the requirements and the conditions of security and diversification established in the previous articles, the applicant, if applicable, all information that may be necessary.

Article 44 emergency situations 1. The Government has set for emergency situations, the conditions in which the required maintenance can make use of the strategic reserves of gas, referred to in this title.

2. In situations of lack of supply or any other that may be threatened the security of the people, the equipment, the facilities or the integrity of the network, the Government can adopt in the field, with the duration and with the exceptions that will determine, among others, one or more of the following measures: a) limit or temporarily modify the gas market.

b) Establish special obligations regarding minimum security stock.

c) Modify the terms and conditions of regularity in the provision in general or related to certain categories of consumers.

d) undergo administrative authorization gas sales for consumption abroad.

e) Implement any other measures that may be recommended by international organizations, of which the Principality of Andorra be part or rendered in application of those agreements in which they participate.

f) in relation to these measures is determined, at the same time, the compensation scheme applicable to those activities that were affected by the measures adopted to guarantee, in any case, a balanced distribution of the costs.

45 article occupation of the public domain, heritage and areas of public servitude 1. The holders of the basic network, defined in article 9 section 1 of this Act and in cases provided for in article 47, have the right to occupation of the public domain, heritage and public bonded areas.

2. The authorisation of specific employment equity in the public domain, and all of the public easement gives the competent body of the public administration of those assets or rights.

3. The conditions and requirements established by the Government owners of the goods and the rights to employment, should be in any case, transparent and non-discriminatory.

4. Without prejudice to the application of the indicated in the previous sections, in the employment authorizations of the goods or of the rights of local ownership is the application that has the legislation of local regime.

Title III. Rights of occupation of the public domain, expropriation, constraints and limitations of the property in the basic network 46 Article Declaration of public utility 1. Are declared of public utility for the purposes of the expropriation and the exercise of the servitude of the following facilities: a) the facilities and services necessary for the development of the natural gas basic network defined in article 19 of this law.

b) facilities and services necessary for the development of the basic network of liquefied petroleum gas as defined in article 24 of this law.

2. The holders of concessions, permits or authorizations for the development of the activities mentioned or for the construction, modification or expansion of necessary facilities, enjoy the benefit of expropriation and of temporary occupancy of the property and the rights that require facilities and services, as well as the easement of passage and limitations of domain, in case you need to access , driving lines and distribution of gaseous fuels, including those necessary to meet the surveillance, the maintenance and the repair of facilities.

3. The holders of concessions, permits or authorizations mentioned in the previous section are considered beneficiaries that article 2 of the expropriation act, adopted by the General Council on 2 and 3 September 1993.

Article 47 application of recognition of public utility 1. For the recognition of the public utility of the installations that are


refer to the previous article, it is necessary that the interested company requests, including a specific and individualized relationship of the goods or to the rights which the applicant deems necessary for expropriation or occupation.

2. The request is subjected to the requirements set out in the expropriation Act.

Article 48 effects of the Declaration of public utility the Declaration of public utility carries implicit in any case the need for occupation of the property or the acquisition of the rights affected, and implies the urgent employment for the purposes of title IV of the law of expropriation.

Article 49 Easements and permits for step 1. The easements and permits for step, established in accordance with the provisions of this title, record the goods in the form and magnitude that are determined in this law, and shall be governed by what you have, and also in their development and provisions in the regulations referred to in the previous article.

2. The constraints and permits for passage include, whenever appropriate, the use of the subsoil for installations and pipelines in depth and with the other features that point to the regulations and communal norms.

3. The constraints and permits include equally the right of way and access and temporary occupation of the land or other property necessary for the surveillance, the maintenance and the repair of the installations and of the pipes.

4. The conditions and constraints that must be imposed in each case, for security reasons, apply in accordance with the regulations and technical standards that are passed to this effect.

Title IV. Industrial safety of the installations, equipment and apparatus for fuel gases Article 50 determination of the levels of security and quality of The production facilities, gasification, storage, transport and distribution of gas fuels, the receiving facilities of subscribers and users, consumer equipment, as well as the technical elements and materials for fuel gas installations , must conform to the technical standards of quality and safety set out in the law on industrial safety and quality legislation and the regulations that develop it.

Title v. infractions and sanctions Article 51 Infractions 1. Offences are the actions and omissions that typify in the following articles.

2. The offences established in this law are understood without prejudice to civil liability, criminal or any other type that may be applicable to the holders of the companies that develop the activities to which they refer.

Article 52 Responsible 1. Are the subjects responsible for the infractions, the natural or legal persons who incur. In particular, are considered to be responsible for: a) the owner, the director or the Manager of the activity in which you check the copyright infringement.

b) The designer, the director of works, if such is the case, and the people who participate in the installation, repair, maintenance, or inspection of the activities, the equipment, the equipment and the facilities, when the infraction is direct result of their intervention.

c) manufacturers, sellers or importers of products, appliances, equipment or items that do not conform to the regulatory requirements.

d) organizations, companies and laboratories specified in this law, with regard to the offences committed in the exercise of their activity.

e) owners of equipment, products, devices and facilities, subject to the scope of application of this law that do not meet the regulatory requirements for reasons solely attributable to them.

f) the owners of equipment, products, devices and facilities subject to the scope of application of this law, its proper use and conservation.

2. in the case of more than one subject liable for the infringement, or if this is the result of the accumulation of activities of different people, the sanctions to be imposed have between them an independent nature.

3. When, in application of this law, two or more persons are responsible for an infringement and is not possible to determine the level of participation, are responsible for solidarity purposes for the purpose of the sanctions that are arising.

Article 53 minor Infractions Are minor offences those infringements of the provisions of this law that does not constitute serious violation or very serious.

Article 54 serious Offences Are serious offences: 1. Conducting activities regulated in this law or the construction, expansion, operation or modification of facilities affected in these activities without the necessary concession, authorisation or registration in the appropriate register when it is coming from or failure to comply with requirements and conditions of the activities that are not considered to be very serious infringement in accordance with the previous article.

2. The interruption or the unjustified suspension of the activity that is being performed by concession or authorization.

3. The use of instruments, appliances or items subject to the scope of application of this law, without complying with the statutory prescriptions, the technical regulations and the obligations, which for security reasons have to gather the equipment and the facilities affected in the activities covered by this law when it is not considered very serious infringement in accordance with the previous article.

4. The unjustified refusal to supply fuel gas consumers and users which are not approved rates of application.

5. Failure to comply with formal obligations to be imposed on those who perform activities of supply of fuel gas in guarantee of the rights of consumers and users.

6. Failure to comply with the regulations on minimum stocks when stock regimes poses a significant alteration, they do not constitute very serious infringement in accordance with the previous article, considered this breach in monthly periods.

7. For the suppliers, regulated in this law, any action or omission that involves the breach of the measures relating to the supply laid down by the Government.

8. Failure to comply with the instructions given by the Government when not in is a detriment to the functioning of the system.

9. The occasional negative and isolated Government to facilitate the information request in accordance with the provisions of this law.

10. The repeated breaches in the obligations of reference of information and documentation.

Article 55 very serious Offences Are very serious offences:


1. The activities covered in this law or the construction, expansion, operation or modification of facilities affected in these activities without the necessary concession, authorisation or registration in the appropriate register when it is coming from or failure to comply with requirements and conditions that are established when put in danger showed people or goods.

2. The use of instruments, appliances or items subject to the scope of application of this law without complying with the statutory requirements, the standards and the technical requirements for security reasons have to gather the equipment and the facilities affected in the activities covered by this law when serious danger or damage arising to persons or goods.

3. Refusal to supply fuel gas consumers in tarifa.

4. The refusal to admit inspections or checks established in each case by the competent body or the obstruction of the practice.

5. The irregular application of prices, rates or tolls regulated in this law.

6. Any fraudulent manipulation you have to alter the price or the quality of fuel gas or the extent of the amounts provided.

7. The incompatible activities in accordance with the provisions of this law.

8. Failure to comply with the instructions given by the Government when in is a detriment to the functioning of the system.

9. Failure to comply with the regulations on minimum stocks when stock regimes poses a significant alteration, considered this breach in monthly periods.

10. For the suppliers, regulated in this law, any action or omission that involves the breach of the measures relating to the supply laid down by the Government.

11. Recidivism, within a period of three years a serious violation that has led to a strong sanction.

Article 56 Graduation of sanctions for the determination of the corresponding sanctions will take into account the following circumstances: a) the danger resulting from the infringement for the life and health of people, the security of the things and the environment.

b) the importance of the loss or the damage caused.

c) Are caused on the continuity and regularity of supply to users.

d) the degree of participation and the benefit obtained.

e) intentionality or the reiteration in the Commission of the offence.

f) The reiteration in the Commission, within a period of one year, of more than one offence of the same nature, when it has been declared by a firm resolution.

Article 57 Penalties 1. The offences classified in the previous articles are sanctioned as follows: a) the violations minor, with maximum fine of 100,000 pesetas.

b serious infringements), with fine from 100,000 to 1.000.000 pesetas.

c) very serious offences, with fine from 1,000,000 up to 10 million pesetas.

2. When in consequence of the infraction will get a quantifiable benefit, the fine can reach up to twice the benefit obtained.

3. The amount of penalties graduated according the criteria of proportionality and circumstances specified in the previous article.

4. the Commission of a serious violation can lead to the revocation or suspension of the authorization and the subsequent temporary disqualification for the exercise of the activity for a maximum period of two years. The revocation or suspension the decide the Government.

5. The application of the sanctions provided for in this article shall be understood without prejudice to other legally required.

6. The sanctions imposed for very serious offences, once strong, have to be published in the manner to be determined by regulation.

Article 58 coercive Fines the Ministry competent in the Department, regardless of the corresponding sanctions, coercive fines, offender behavior can continue and put in the case not to cater to the requirement of completion of this conduct.

The amount of the fines is at most, the first 10% of the maximum value of the penalty provided for the offence committed, the second 50% and the third on the 100% of the predicted maximum value.

Article 59 Disciplinary Procedure the procedure for the imposition of sanctions is adjusted to the law code of the Administration and to those regulations that develop and apply.

The director of the Department responsible for the opening of the procedure.

Article 60 the jurisdiction to impose The sanctions to impose sanctions is, for very serious offences and serious, the Government. The imposition of minor sanctions corresponding to the competent Minister of the Department.

Article 61 Prescription very serious infringements provided for in this title prescribe after five years of your Commission; the grave, after three years; and the minor, the head of a year.

Additional provisions First the Government, by Decree, shall periodically to update the amount of the penalties set out in title V, taking into account the variation of consumer price indices.

Second will be granted to the authorised companies at the time of the publication of the law in the Official Gazette of the Principality of Andorra, the right to continue providing the service of import, storage, supply and distribution in the conditions established in this law and its regulations.

The third Will create a register of suppliers, in which you have to register the data related to the legal form, the composition of the property, the capital, the inventory of the assets and the plan of the network of all those who provide the service of distribution within the Principality.

Fourth All events live transmission of the property between contractors of the basic network, or titles that represent part of your capital, it should report to the Government that, within the two months following, can exercise a right of tanteig over the projected transmission. In the absence of notification, the Government may exercise a right of pre-emption within the year following the date on which it becomes aware of the transmission.

Fifth When the breach of the obligations of the companies that perform the activities and functions covered in this law may affect the continuity and the security of the supply of fuel gases, in order to ensure the maintenance, the Government can agree on the intervention of the relevant company, and adopt corresponding measures.

These effects are due to intervention by a company the following facts:


in) The suspension of payments or bankruptcy of the company.

b) irregular management of the activity when it is due and can result in its stoppage.

c) The serious and repeated in the proper maintenance of the facilities, which compromise their safety.

Sixth servitude of passage constituted in favor of basic networks and distribution networks of gas, includes those lines and those of telecommunications equipment that can circulate to them, whether they are for the service of the exploitation of fuel gases, such as if they are for the public telecommunications service and, without prejudice to the fair price, if applicable , may be entitled, if you burn this bondage, and in keeping with the criteria estipularan in the law referred to in article 3.1. of the present law.

7th The minimum consumption for the consideration of qualified consumer, in accordance with the provisions of article 20 is of a thousand termios per hour (1,000th/h), with an annual consumption of no less than two million five hundred thousand termios (2.5 Mth).

The equivalence between the consumption of propane in weight and energy consumption in termios, focuses on: 1 kg of propane (PCS) = 11.9th transitional provisions First Those suppliers that perform different activities effectively provided in this law, since before their entry into force, are exempt from the obligation of having to exclusive distribution and the supply of fuel gas as provided for in article 9.2 of the law but they will have to proceed to the complete separation of business and get a separate management and accounting of the business of gas fuel.

Second, the companies that have permission at the time of the date of entry into force of this law, have a period of one year to adapt their activities, their equipment and facilities, to the conditions laid down by this law and the regulations that develop it.

Third, the Government should develop, at least, the necessary regulations stipulated in this law within a maximum period of six months from the entry into force of the same.

Final provisions First this law shall enter into force within fifteen days of its publication in the official bulletin of the Principality of Andorra.

Second The gas Regulation approved by the Government, at the session of 18 December 1996, remains in force in all matters that are not opposed to the prescriptions of this law, with the name of the regulation of security of the facilities of gas fuels, up to the approval of the new regulations that the deroguin, in accordance with the third transitional provision.

Casa de la Vall, June 22, 2000 Francesc Areny Casal Syndic General Us the co-princes the sancionem and promulguem and let's get the publication in the official bulletin of the Principality of Andorra.

Jacques Chirac President of the French Republic of Andorra Co-prince Juan Marti Alanis Co-prince of Andorra, the Bishop of Urgell