Turkish Grand National Assembly Warning: You Are Viewing Act, The Parliamentary General Assembly Has Already Adopted. If It Does Not Include The Changes Made Later. Natural Gas Market Law (Electricity Market Law Changes

Original Language Title: TÜRKİYE BÜYÜK MİLLET MECLİSİ Uyarı: Görüntülemekte olduğunuz Kanun, TBMM Genel Kurulunda kabul edildiği halidir. Varsa daha sonra yapılan değişiklikleri içermemektedir. DOĞAL GAZ PİYASASI KANUNU (ELEKTRİK PİYASASI KANUNUNDA DEĞİŞİKLİK

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Read the untranslated law here: https://www.tbmm.gov.tr/kanunlar/k4646.html

Law No. 4646

Acceptance Date: 04/18/2001

PART ONE General Provisions SECTION ONE Purpose, Scope, Definitions and Purpose Article 1- The purpose of this Act
Authority; natural gas quality, continuous, cheap, in the framework of the principles of competitive so as to not harm the environment to be available to consumers, natural gas liberalization of the market, financially strong, stable, and the creation of a transparent gas market and establishment of independent regulation and supervision of this market.
Scope Article 2 of this Act; Imports of natural gas transmission, distribution, storage, marketing, trade and export covers the rights and obligations of all real and legal persons related to these activities.
Definitions Article 3 The implementation of this Act;
1) Ministry: Ministry of Energy and Natural Resources,
2) Minister of Energy and Natural Resources Minister,
3) BOTAS Petroleum Pipeline Transportation Co. Inc.,
4) Authority: Energy Market Regulatory Authority,
5) Board: Energy Market Regulatory Board,
6) legal entities (companies) production of natural gas in accordance with the provisions of this Law, transmission, distribution, wholesale, import, export, trade and carry out the storage function to set up private or public law legal person,
7) natural gas: to launch these gases with natural hydrocarbons in the form of gas that can be extracted or removed from the ground liquefied by various methods, subjected to pressurized or physical processes (except LPG liquefied Petroleum gas) other where the
8) Production: Natural gas 07.03.1954 dated and 6326 Petroleum Law the extraction of the bed underneath in Turkey, cleaning and purifying, gathering lines with transportation to the transmission line,
9) Production Company (operator): a person who performs the production activities in Turkey
10) Transmission: production-off gathering lines and distribution networks of gas pipelines other than network or liquefied natural gas (LNG) natural gas transplant performed with transportation means,
11 ) Transmission company: Transmission legal person performing the activity,
12) Distribution: Natural gas customers in the transportation and local gas pipeline network to be delivered and retail sales,
13) City: municipal or metropolitan area zoned areas falling within municipal boundaries overall, the
14) distribution company: distribution of natural gas in a specified city and local gas pipeline network by transmitting entity authorized to carry out their activities,
15) Wholesale: natural gas distribution companies and free consumers made sales, | || 16) Wholesale company: the system inside or outside, without the transmission or distribution activities, legal entity engaged in wholesale activity of the natural gas
17) Eligible consumers: any manufacturing company in the country, import company, distribution company or wholesale company with natural gas purchase and sales contracts with natural or legal persons have the freedom to do,
18) non-eligible consumers (subscribers): natural gas, natural or legal persons who have to buy the distribution company for its own use,
19 ) storage: Day and meet seasonal fluctuations and natural gas, natural gas caused by a reduction or stoppage of the supply of natural gas in order to eliminate the deficit, liquefied natural gas (LNG) or be stored as gas
20) storage Company: perform the storage of the natural gas legal person who is authorized to,
21) liquefied natural gas (LNG) facility: liquefaction in order to transport liquid natural gas and storage, unloading, facilities used for storage and re-gasification gas
22) Storage plant: which are used in production except plants, of which a legal person of the property or business and natural gas, LNG, or gas in storage-off facility,
23) Online: production of natural gas transmission, storage and established to fulfill the distribution function of plant and equipment, | || 24) system users: the system or the system of gas supply from gas fields or natural or legal persons who engaged in transit passage of gas through the system,
25) connected system: mutually connected with each other and forming the whole system,

26) Direct line: a free consumer feeds to create a linked system of natural gas pipeline, the city across and transported by a private vehicle natural gas transmission network of the sale by lowering the pressure can not reach places,
27) Local gas pipeline: in town all distribution lines to be constructed and operated by the distribution company which will make natural gas distribution,
28) distribution network: in the specified area of ​​a distribution company, the natural gas distribution facilities and pipelines operated,
29) vertically integrated entity: natural gas production , transmission, distribution, import, export, storage, or two or more entities that perform the sales activities
30) delivery contract: System users or transmission by acting on behalf of the company or between storage companies and transmission companies, or between transmission companies of their own including natural gas transfer contract signed for the delivery,
31) Transportation contract: System users and transmission companies in the transportation order the contract for natural gas,
32) Importers company: natural gas wholesale companies, sales to eligible consumers or export companies or from abroad for the purpose of direct selling LNG or gas supplies natural gas entities that perform activities not of
33) National transmission network: high-pressure pipelines that are part of the national transmission system,
34) national transmission system: distribution of the national transmission network that enables transmission over the country's natural gas storage, liquefaction, liquefied gas gasification and similar systems consisting of other transmission facilities,
35) Exporters company: Production companies and wholesale companies or import companies that market from outside the gas it has purchased legal person,
36) Market activity: Natural gas transmission, distribution, wholesale, import, export, and as a liquid in LNG plants or underground and aboveground facilities or gas purchases, including the storage of compressed gas, sales or service, and the activity consists of transactions relating to the commercial activities of these activities,
37) Tariff: transmission of natural gas, distribution, storage, LNG or gas and sales and prices of the services related to these regulations containing the terms and conditions
38) License: legal Authorization granted to each market activity by the Board pursuant to this Act in order to engage in market activity,
39) Certificate: the design of the gas activity that legal persons will be included in the system facility, construction, inspection, maintenance, repair, inspection, consultancy and to make such services facts and showing the ability of the entity and the permission granted by the Board
40) User union: organized industrial zones to meet the natural gas needs of the members of the distribution network under their ownership and cooperatives,
41) compressed natural gas: natural gas pressurized state of the
42) horizontally integrated legal person: natural gas production, transmission, distribution, import, export, storage or performing at least one of the sales activities and at the same time natural gas sector entities that perform other activities that are not included in,
It refers.

Natural Gas Market Operations, Production and Service Operations, Licensing and General Principles of
natural gas market activities ARTICLE 4 1) According to this law to be found in the natural gas market entities required licenses must take.
2) will operate in the natural gas market applications to the Authority for a license of legal entities from the date on which the application is made, the answer given by the Authority, within sixty days. If the license application request is rejected by the Board, together with its grounds to reject the decision is notified to the applicant.
3) to operate in the market of private legal entities No. 6762 dated 29.6.1956 in accordance with the provisions of the Turkish Commercial Code, if established as a joint stock company or limited liability company, it is imperative that all bearer shares. These companies are to be included in the main contract with the capital of a regulation other matters.
4) natural gas market activities are as follows:
a) Import: supplying natural gas through imports made under an import license.
entities in applying for the import licenses;
1) will be owned import technical and economic power,

2) the supply of natural gas to be imported, reserves, accurate information and guarantee the presence on production facilities and transmission system,
3) percent of the amount it until natural gas per year to be imported to have storage facilities on national territory within five years commitment determined by the Authority from the legal entities will make storage activities in respect and taking the warranty
4) the national transmission system development and have the proficiency to contribute to security, will carry out the development of this purpose, the system of legal persons investing to provide economic support,
Terms are searched.
Import companies must obtain a separate license for each import contract respectively. Import companies import contracts in place contractual times, term extensions of the expected annual and seasonal import volumes and located in the amounts of contracts with changes in or extension, and must notify the Authority concerning the obligations of the security of the system.
Import companies they supply natural gas imported through domestic wholesale companies or export companies, can also markets abroad and by obtaining export licenses for free to consumers as well as transferring the sales contract. However, export companies to do the speed, the importer does not eliminate its commitments under the company's license.
Any importing companies, as provided by the amount of imported natural gas annually shall not exceed twenty percent of national gas consumption forecast for the current year will be determined by the Authority.
Import companies must provide documents and information requested by the Authority relating to all agreements that have been made.
B) Production: Natural gas exploration and production activities are carried out according to the Petroleum Law No. 6326. Exploration and operating license is issued by the General Directorate of Petroleum Affairs. Manufacturing activity is not included in the market activity.
Production companies, gas they produce to get a wholesale license provided that the wholesale companies, import companies, distribution companies can market to, or eligible customers. Producer Companies that sales volumes of the Agency will be determined in the current year to exceed twenty percent of the national consumption estimated direct eligible consumers, while the remaining natural gas import companies, distribution companies or the market through wholesale companies. Production companies, produced by obtaining a license may export gas exporter.
Production companies to get the sale and export licenses (e) and (f) shall bear the license terms of this paragraph.
Produced natural gas, according to the taşıttırıl transmission companies will be held by transport and delivery contracts. If there is a remote system connected to the production center, creating systems with associated gas produced must be delivered without requiring direct line and can be sold to free consumers generation companies. However, this issue is subject to the Board's decision, taking into account economic and technical conditions. In addition, manufacturing companies producing natural gas is Article 8 of capacity (a) of subsection (1) the number if less than the amount specified in subparagraph produced natural gas can be sold to other consumers without the urban distribution activities. rights reserved the generation companies in the transmission and storage on existing facilities. The use of this right, (c) and (d) are subject to the provisions of paragraph.
Production companies, tariffs, delivery rules, gas quality, gas supply, it is obliged to comply with regulations made by the Authority on issues such as seasonal changes.
C) Transmission: legal persons who will carry out the transmission activities, are obliged to comply with the following.
1) The transmission companies, where appropriate, the system, under the criteria determined by the Authority, who want to connect to the system users are obliged to connect to the appropriate network within twelve months.
2) In case of refusal of the transmission company claims users log in, please notify the Authority of the situation. Transmission companies, in violation of regulations related to network operations in the event to be determined by the Authority, the transmission company will make the connection according to the decision of the Board of logging into the system.
3) Authority examining the demands of users regarding access to the system, the interruption of transmission activities, taking into account the matters set forth in this Law, utmost attention not to be obstacles to the functioning of the system.

4) Transmission companies, transmission activities engaged in for the purpose of safe and efficient operation with other transmission companies must provide all the technical information specified by the Agency to each other to ensure a coordinated operation.
5) Transmission companies, the flow of natural gas and the fulfillment of the necessary adjustments and all other services for the operation of the system is responsible for the portion owned by themselves with respect. In addition, transmission companies in the lines which it is responsible, secure way of gas delivery, efficiently and to take all the necessary measures for achieving a minimum cost and is obliged to fulfill other requirements stipulated in this Law.
6) to start operation of the transmission company must obtain a license from the Authority. Violates the functioning of the transmission system companies, the penalties laid down in this Act shall be applied.
7) Transmission companies importing company, wholesale company, a transportation contract with the production company and exporter companies. Transmission companies are also manufacturing company, eligible consumers, the company makes storage and delivery contracts with other transmission companies. Made or to be made by the Authority in contract procedures and principles are taken into consideration and not include provisions that prevent or hinder the operation of the system.
8) The Committee will examine transmission transit natural gas transmission companies are prepared taking into account the national transmission network investment program and approves them.
9) existing, planned and ongoing construction of the national transmission network is owned by BOTAŞ. Transmission companies are required to create a system will be built in conjunction with existing transmission lines for new transmission pipelines, including investing in other companies are operated on their own property. other rights and obligations of the transmission company is determined by the regulations to be issued.
D) the storage of natural gas: legal persons who will make the storage activities are obliged to comply with the following.
1) legal entities, in order to engage in natural gas underground and above ground storage of gas, or LNG operations must obtain a license from the Board. Any storage operations without such license. legal entity requesting the license is obliged to comply with the conditions will be included in regulations to be issued. In legal person applying for the license
Aa) Storage will have technical and economic competence,
bb) of all of the storage capacities under savings system safe and coordinated manner to undertake to manage in a way that will help the process,
cc) Savings to be found under storage capacity if the system is favorable, neutral and equally committed to putting into service,
Terms are searched.
2) According to the 6326 law, business license with the company of natural gas produced by underground natural gas deposits, the storage with the purpose of the event Petroleum Affairs to take the subsequent drying apply to the approval of the General Directorate for use by the Board, if deemed appropriate operating license of the relevant section of the storage translated into license. However, the application to the Authority of the production company must certify that it has the required qualification for a storage license. Company, if the start storage activities, storage activities, the activities are conducted separately from production through to parse the accounting.
Rejection of the request made to the storage company and the system's event to inform the Authority of the cases, the Authority required inspections and audits by the storage company deems to be in violation of published procedures and principles with the license conditions, the storage company may force to provide the requested service. due to such violation, sanctions are applied in this Law.
E) Wholesale: Wholesale companies for wholesale activities to the free consumer must obtain a license from the Board. legal persons who import license is no obligation to obtain a wholesale license. Imports of natural gas can with wholesale license.
Wholesale sales activity wishing to legal persons, it will provide from natural gas to obtain a license and to carry out sales by which transportation conditions, that there is sufficient technical and economic power, and to assist the process in a safe way system, to show that they have the necessary storage capacity and also in regulations It must give guarantees and other commitments specified.

wholesale activities in the regulation of the natural gas must be adhered to the following principles.
1) Distribution companies selling natural gas which legal persons, within the period prescribed by the Authority, in order to meet customers' seasonal maximum natural gas drive, make the necessary supply planning and get their storage measures and is obliged to submit to the Authority lease agreements to be made for this purpose storage companies. to take the necessary measures storage for a period of five years from the date of grant of the license. This time, if it reaches a sufficient level of storage facilities in the country can be extended up to two years with the Board's decision.
In addition, according to the Board each year climatic data, to determine the amount of compensation for storage to meet seasonal intensity of the following year for each city and is authorized to take necessary measures.
2) Eligible consumers to legal persons engaged in wholesale gas sales, following the entry into force of this Act to seasonal customer is obliged to ensure the gas supply flexibility within daily and hourly limits. The wholesalers are required to reach the required supply and storage capacity, storage must also take the necessary measures within a period of five years from the date of grant of the license. For this purpose, the storage companies and the lease they shall submit to the Authority. This period may be extended if it reaches a sufficient level of storage facilities in the country.
3) legal entities engaged in wholesale of natural gas, transmission to meet the expected demand within the period prescribed by the Authority shall provide storage and system balancing capacities.
4) Wholesale Company, importer or export companies or free consumer or distribution companies with sales contracts and prices are set freely. Commercially confidential information is disclosed to third parties except for the Authority and not be abused.
5) wholesale companies are required to obtain an import license in order to import natural gas.
6) the total amount of gas sales realized in each year of the wholesale companies, the Agency determined for the current year may not exceed twenty percent of the national consumption forecast.
7) wholesale companies, sales in all over the country regional restrictions.
F) export of natural gas: Imported natural or legal persons wishing to export domestically produced natural gas abroad, obtain an export license from the Board. In addition to the conditions specified in the regulations to be issued for companies that want to obtain a license;
1) Technical and demonstrate that they have economic competence,
2) Natural gas, tell which country and will export with which means of transport,
3) will not interfere with the functioning of the system due to export and the needs of the country and also violate the security of the system Already in the case, to guarantee compensation for loss and damage will occur and damage that may occur in this respect and to make compulsory insurance to cover loss of
Terms are searched.
However, transmission companies operating transit lines, this sub-paragraph (3) are exempt from the requirement to guarantee specified in sub-paragraph.
G) the local distribution of natural gas: natural gas distribution services within the city, the winner of the tender will be opened by the Institution company to local natural gas distribution network development level of the city, including property, consumption capacity and the number of licenses to be determined by the Authority, taking into account issues such as It is given for the duration.
The open tender for a particular city's institutions, shall be published in the Official Gazette. not to bid to participate in the tender of the Company specified in the regulations to be issued procedures and on the basis evaluating the given distribution licenses the company won the tender, and the company is authorized distribution company title to achieve its distribution activities in that city.
Distribution license of the legal entity, the provisions of this Act shall be determined by the Authority regarding the distribution licensee is obliged to comply with rules and regulations. Distribution license of the legal person, may buy the distribution network will be the property of another legal entity before the license period expires.

License period expires, the distribution company, one year before the expiry of the license term, the Board, upon demand from the renewal of the said city gas distribution licenses Authority, the company's economic and technical strength, quality of service, satisfaction of subscribers, taking into account other matters to be specified in regulations to be issued by the Authority second distribution license can give. The license holder of the license period unless extended for reasons mentioned above, the Authority will reopen bidding for the available network data about the city and the business and legal entities to offer the most appropriate distribution license for the property. The cost of the network shall be collected by the Corporation will be paid to the previous license holder.
Authority directs the ownership of a distribution company distribution activities, supervises, monitors and needed these services, the costs being covered by the distribution companies, the certificate holder subject to this Law may buy natural and legal persons. tender procedures and principles of inner-city natural gas distribution, evaluation criteria and other issues to be included in the license regulation. distribution license from the local distribution company
Assembly area, where the city is located in the municipality or municipal authority to take the company to put its capital requirement searching for is obliged to invite them to share in proportion to the distribution companies percent. This capital ratio may be increased by up to ten percent fee to be paid by the record. However, these increases are not in debt to the Treasury and to request additional loans or after the liquidation of the loan to the Treasury for this purpose provided that the Treasury may be able to provide guaranteed loans.
Authority to take stock of the municipality or municipal corporation or at least one board will not qualify for membership rate in the case of acquisition of shares, 6762 Turkish Commercial Code 275 Article according to the municipal company management and control of making arrangements to provide the right to representation on the boards, the local distribution company you may ask. The obligations of distribution companies
1) Natural gas distribution companies are unable to dispatch control center for distribution networks. However, in cities where the consumption capacity is insufficient determined by the Authority for these conditions.
2) Upon the request of distribution companies and consumers in their area of ​​responsibility, the consumer is obliged to connect to the system. But the connection to liability, the company's savings under the inadequate capacity, which allows the connection of the system and consumers in accordance with the procedures and principles and determined to take the actions prescribed in falling and distribution regulations on their own, the connection of the technical and economic realization depends not possible. The issue is whether or not the connection in case of technical and economic disputes Assembly decides.
3) connection request is rejected, the user notifies the Authority. After taking the defense on the issue of the distribution company, in this article if it is determined that there has been infringement of the principles, the company is obliged to comply with the decision of the Board on the subject.
4) distribution companies, residential, commercial and industrial consumers, including their internal systems or make available for the use of natural gas can be checked by their technical staff or employees of auditing firms on their behalf. Internal installation, if found not to be in accordance with the regulations will be published internal plumbing, gas that gives the company can be refused or cut off the gas. Consumers apply again if the supplies brought into line, the same process is repeated. unauthorized modifications to be made in domestic installations, improper and abusive use, misuse and faulty equipment, installations and equipment construction of non-project losses and damages that may arise due to lack of maintenance of the distribution companies are not responsible.
5) Distribution companies can own only nationwide license in the two cities. However, the development level of the number of cities taking into consideration issues such as consumption capacity and number of users can be increased by the Board. The Board determined according to the population density of the city limits can allocate multiple distribution regions and each region can bid separately.

H) Compressed natural gas distribution and transmission: the wellhead natural gas national transmission network or compressing purchased from the local distribution system and filling in pressurized containers, compressed state transport by private vehicle between natural gas throughout the city and the activities sold by lowering the pressure in places you can not reach the transmission network legal persons will is required to obtain a license from the Board for these activities. the legal entities to engage in such activities, in addition to adhere to the conditions laid down in the relevant regulations to obtain a license, are doing their activities within the scope will include facilities and equipment to Turkish Standards and / or the European Union adopted by standards appropriate and safe would guarantee not required to be searched.
Construction and service activities
Article 5 will operate in the natural gas market, importing companies, exporting companies, transmission companies, storage companies, distribution companies, wholesale companies and free consumers, have received a certificate from the institution made with natural and legal persons and the service can sign the contract. Any construction and service activities related to natural gas, performed by persons who do not have certificates.
For internal installation and service lines certificates on behalf of the Authority and the city with public or private companies, distribution companies will be authorized by the Authority. Natural and legal persons, the applications to the Authority to obtain the certificate will receive a response within sixty days by the Authority.
Associated with the system;
A) feasibility studies, project development, consulting, control and monitoring,
b) Construction,
c) service, maintenance and repair, for the activities in which they will be made
such services, obtain a certificate from the institution It is difficult. Those who want to do the construction and service activities according to regulations to be issued by the Authority apply to the Authority. Receive a certificate with the qualification requirements stipulated by the said regulation.
natural or legal person shall, in the construction and service activities must activities in accordance with regulations prepared by the Agency and the communiqué to be published.
Internal installation and service lines in the area who have received certificates from the distribution company to operate in the construction and service areas controlled by the distribution companies. However, upon application of the consumer it can be controlled by the Authority. Authority to apply the principles and procedures of the consumer by a regulation.
License and the general principles of certification
ARTICLE 6. will be subject to licenses and certificates to be granted by the Board under this Act will take place in the licensing and certification procedures and principles of minimum provisions are as follows:
a) the procedures will be subject to licenses and certificates and principles:
1) entities that engage in market activities, before they begin their activities for each activity and event that will be conducted in multiple sites of these activities must obtain a separate license for each facility.
2) having more than one license the same legal person or legal person who carries out the same activities in more than one facility, they must keep separate accounting records for each activity or facility subject to licensing.
3) the license or certificate application procedures and principles, licenses and rights of legal entities of the certificate holder and obligations that the rights of the license assignment, license modification, time, time extension and the type of activities to be abandoned without license or certificate by the states and transmission, distribution and will be determined by the amount of natural gas storage with a regulation certificate and license fees.
4) Licenses and certificates for at least ten at a time, given the more than thirty years.
5) Legal persons determined by the Board to obtain licenses and certificates, renewal, modification, copy, certificate and must pay an annual license fee to the Authority.
6) The license holder legal entities; facilities, legal books and records, available for the Assembly to audit, as requested by the Board and must give the Board time open control all kinds of information and documents that you will need to fulfill the organization's activities.
B) as a minimum, it will include provisions in License:
1) Licenses will receive services under real and legal persons or groups of categories with regard to the provisions determining the types of activities to be carried out.
2) a distribution or transmission licensees, real and legal persons, regardless of access to the system to distinguish between system users have the same capacity and provisions that would provide the opportunity to use the system.

3) to identify the pricing principles for in this Law, taking into account market needs, with subscribers to be applied in natural gas sales to determine the pricing principles and methods, and provisions for their inspection on formulas application relating to adjust these prices will be needed due to inflation.
4) License holder shall complete and accurate information and to subscribe to the terms of the sales made; purchases of natural gas distribution license holder to make the most economic resources, and to provide proof that makes the most economic intake of purchases made necessary provisions.
5) in accordance with the Regulation, including the loss of business with the rules on provisions to reflect the cost of services essential to the implementation of measures to minimize cost.
6) cancellation of the license and provisions relating to the termination.
7) provisions relating to the amendment of a license.
8) will be obliged to pay a license holder costs and provisions related to payment terms.
9) in the facility or the use of the license holder and / or the establishment of provisions regarding the conditions for the license in accordance with the purpose to others when needed.
10) provisions regarding the obligation to comply with all instructions given by the Board of the licensee.
11) under license, the provisions relating to the activities that can be done without the consent of the Board.
12) provisions regarding which disputes will be resolved by the Board on the activities under license.
13) during which time the rights and obligations of the license, conditions and provisions for the cases to be invalid.
14) provisions will be made in accordance with the technical requirements Services.
C) Certificate as a minimum;
1) The certificate will receive services under real and groups on legal entities or categories with the provisions determining the types of activities to be carried out are
2) certificate revocation and the provisions relating to termination,
3) provisions amending the Certificates || | 4) will be obliged to pay the Authority the certificate holder costs and provisions related to payment terms
5) Certificate holder of the provisions concerning all the instructions and the obligation to comply with the regulations issued by the Board,
6) under the certificate provisions relating to the activities that can be done without the consent of the Board ,
7) provisions will be resolved by the Board, which the disputes related to the activities covered by Certificates
8) rights contained in the certificate and liabilities which time the terms and provisions be invalid in cases are
9) activities in accordance with the technical requirements provisions will be made for,
Find Them.
D) the license or certificate of expiration: Licenses and certificates unless extended duration in accordance with the method specified in the license or certificate by the Board, while the spontaneity of the event at the end of or license or certificate holder actual or bankruptcy of the legal entity, the license or certificate holder is a natural or legal person's license or if he wishes to renounce the certificate, but ended with the approval of the Board.

CHAPTER THREE Protection of Competition and Development, Notification, Separation of Accounts, Free Consumer
Determination and System Log Exceptional Cases

Competition protection and development, to provide information and accounting separation
ARTICLE 7. a) Protection of Competition and principles for the development are as follows:
1) 12/7/1994 dated 4054 competition freedoms stipulated in the Law on the Protection of Competition , abuse of dominant position, mergers and acquisitions to matters related also apply to legal entities will operate in the natural gas market.
2) any legal person Except manufacturing company in Turkey, as determined by the Authority for the current year may not sell more than twenty percent of the national natural gas consumption forecast. This rate, after the deduction of losses from the company's remaining net national consumption directly, or more than half of the capital is found by deducting the amount of gas consumed by its own companies. This ratio is exceeded necessary measures are taken by the Authority.

3) any legal person who operates the natural gas market, may participate in only one of the legal entities operating outside the scope of their activities. But it does not set up a separate company. In its field, it can not participate in any legal person and not be able to operate the company. However, the entity that participated directly or indirectly in that entity's capital or business assets of more than half or voting rights and the right to use more than half of or the audit committee, board of directors or legal persons the right to appoint more than half the members of the competent authority to represent or work the administration olamaz.botaş is entitled to reserve the rights associated with existing affiliates.
B) issues related to the activity they are legal entities operating in the natural gas market, are obliged to provide information. The scope of the information to be provided and will be informed authorities are listed below.
1) natural gas transmission and dispatch that transmission companies, LNG facilities and underground storage facility operated by the storage companies, local natural gas distribution activities engaged in distribution companies supplying natural gas production and import companies, other operating in the same area with their own companies, the activities of the natural gas system they are obliged to give adequate information to ensure the secure and efficient processing.
2) The scope of the information referred to in this Article, after the date of entry into force of this Act, the Authority will be set out in regulations to be issued.
3) operating in the natural gas market parties are obliged to keep confidential sensitive information and documents from the commercial aspect. However, the Competition Authority and the investigation due to be made by the Corporation shall not be liable for the information they give to interested parties.
4) entities operating in the natural gas market, acquired during natural gas trading or controls, controlled or affiliated confidential information acquired through legal person can not use his own interests or their affiliated companies benefit.
C) an obligation to have separate accounts of legal entities operating in multiple dwelling in the natural gas market.
D) Distribution companies purchase up to fifty percent of the gas they distribute within one year of a legal person is essential, taking into account the competitive environment, the Board is authorized to increase or decrease occurred this amount.
determination of exceptional circumstances in the consumer and free access to the system Article 8
a) Eligible consumers will be determined according to the following classification.
1) Order that the annual volume of natural gas to consumers with more than one million cubic meters and user associations,
2) who buy gas for the production of electrical energy company,
3) electrical and heat energy producing cogeneration plants | || 4) to be used in production activities, production of natural gas producing companies in Turkey
is eligible consumer status. However, the Board will determine the limits for all consumers to be eligible consumers every year up to become free consumers.
The Board will follow closely the implementation of the classifications listed in this article. Distribution companies, except to subscribers located in areas of responsibility, they are not obligated to provide natural gas. Wholesale companies are free not to sell natural gas to consumers.
B) The Board, just to be on the license granting phase, the development level of the city, for the purpose of gas consumption and the promotion of infrastructure investment in the city, wanted to become a free consumer is authorized to determine the annual consumption limits. legal entities engaged in the natural gas market access to the system according to the conditions specified in this Act shall be obliged to allow access to the system for those who want to make a connection to the system.
Natural gas market activities for which legal persons, systems other entities in demand for entry and free consumers to demand access to the system, but unable to have sufficient capacity or can not fulfill their obligations if access to the system of the person or sentenced to severe financial and economic compensation for existing contracts they may refuse to accept the situation.
Due to capacity or service obligations or existing contracts, in case of refusal of entry into the system because of the serious economic difficulties that occurred, the situation immediately reported to the Authority together with the reasons.
The Board is not lack of capacity or connection or any other obstacle, this Law and notify the parties of its decision within three months researching the criteria specified in the regulations to be issued.

requesting access to the system in order to eliminate the state's capacity or lack of irrefutable connection entry system if the installation of the necessary costs.
Arising from the provisions of legal entities existing contracts operating in the market in case of serious economic and rejecting the input to the system due to financial difficulties, due to the agreements signed by the transmission company in difficulty remaining entities on apply to the Authority may request the temporary removal of the entry obligation to the Board from the system and the measures it plans to offer solutions to the problem with the necessary information to the Board. The Board shall decide on the action to be taken on the request within two months.
However, the system entry obligation in case of rejection by the Board of the request for temporary removal, natural and legal persons who request the transmission company is obliged to connect to the system.

Miscellaneous Provisions on the Implementation of Sanctions and Enforcement Procedures
, front Research, Investigations and Litigation Right Tariffs and

implementation of procedures and sanctions Article 9.- Sanctions Committee, despite written warning will be made to the real or legal persons operating in the natural gas market as continue to breach the regulations impose the following sanctions and penalties:
a) in the case of information request by the Board or on-site inspection; the information requested is incorrect, incomplete or determining if given misleading or in case they do not give any information Missing or on-site inspection facilities, two hundred billion liras is given and to be given the correct information within seven days and / or examination shall be warned to ensure the facility. However, the real and legal persons to be given the right documents related to defective cases will be resolved easily and / or investigation is asked to provide the facilities.
B) The provisions of this Law and issued regulations, instructions and be determined that the violation of the notification, two hundred and fifty billion pounds fine is issued and shall be warned to be sent within thirty days.
C) determining whether a license or certificate if the fulfillment of any of the general principles and commitments, three hundred billion liras is given and shall be warned to be corrected within thirty days.
D) To apply for a license or certificate and the conditions required for granting them, to be presented untrue documents or misleading information given or the license or certificate fails to notify the Board of changes in conditions that affect the stipulations, four hundred billion liras is given and shall be warned to be corrected within thirty days .
E) Giving misleading information about the relationship participate during the license application or activity for the duration of the event must be made in behavior contrary to the prohibition of affiliate relations, four hundred billion liras is given and shall be warned to correct such affiliate relation within thirty days.
F) should it be determined that an activity outside the scope of the license on the market, five hundred billion liras is given on the scope and stopping illegal activities within five days or be warned against activities.
G) the license or the conditions that are essential to grant the certificate, it be determined that disappeared during the execution of activities in the license or certificate revocation edilir.ancak, should it be determined whether there existed from the beginning of these conditions together with the cancellation of the license or certificate is also given five hundred billion pounds fine.
Above money despite warnings of criminal acts that require not corrected or repeated cases in the previous penalty of fines applied each time increased by two times. from the date of issuance of this penalty if the same acts that require the issuance of an administrative penalty within two years of the previous sentence shall not be taken into account. However, the same act, if committed within two years, the amount of money to be increased criminal penalties may not exceed twenty percent of the net sales revenue on the balance sheet for the previous financial year entity. If the fine reaches to this level, the Board may cancel the license or certificate.
In case of cancellation of a license or certificate until the new license or certificate, the Board take the necessary measures to prevent the disruption of the service.

If it becomes mandatory cancellation of urban natural gas distribution license in advance by taking the necessary measures to prevent the disruption of Board service, cancel the license. And on behalf of the sales network of about one hundred twenty days in the ownership of distribution networks, with license in hand and have tendered for the determination of the new license holder. The principles and procedures for the application specified in the regulations.
All administrative fines issued in this matter in any way the tariff will be prepared by the legal entity that pays the penalties are not included as a cost item.
Fine, this applies separately to each of the parties violating the law. dated 03.01.1926 of the acts that require the fine in accordance with this Act and No. 765 criminalization of other laws including the Turkish Penal Code or the provision of punishment, it will not prevent the imposition of these fines is no obstacle in the cancellation of the license or certificate.
If there is more than one of the acts that require punishment in this Law and the actual punishment will require the highest penalties in case of contact between them; In case of lack of communication, each penalty is applied separately.
Fines apply right from the beginning following the date of the occurrence of the violation found by the Board learned that the year is subject to a five-year time-outs. The continuous or repeated violation of said time-out period, the violation of the end or start from the day of the most recent repeated. any action that the Board's order
survey, party notified about this process, it cuts out when it is applied against the decision to a court.
Dated 07.21.1953 and given fines according to the 6183 Law on Public Debt Collection Procedure shall be collected by the Ministry of Finance. the amount of the fines in this article of the Turkish Penal Code No. 765 is increased each year in accordance with Article 2 of the additional provisions.
Preliminary inquiry, investigation and trial right
ARTICLE 10.- Board ex officio or give a preliminary inquiry to determine whether there is a direct opening of the investigation or the need to open an investigation on him that gets reported or complaints.
Preliminary inquiry and investigation procedures and principles to be followed in a regulation to be issued.
Board's decision to open proceedings against the Council of State is seen as the first instance court. The Council of State on applications made against the Board's decision is an urgent matter.

ARTICLE 11.- Tariffs regulated tariffs to be approved by the Board under this Act, the determination of tariffs and rules and procedures for implementation are:
1) Access Tariffs: to be determined by the Authority link tariff principles, it contains about connection agreements, which will be incorporated into the transmission system or who are equal for connection to a distribution system free among consumers on the basis of non-discrimination provisions and conditions. Prices are freely determined by the parties within these guidelines. Subscribers to fixed connection tariffs determined between the Authority and the distribution companies is applied.
2) Transmission and Storage Tariff: The Authority determines the rate of transmission and dispatch. Transmission distance in tariff takes into account other factors, the amount of gas to be transmitted and forecasting.
Transmission and dispatch service that the tariffs are legal persons submitted to the Authority within the period specified by the Authority. The institution of the reported rates and determine new tariffs of the principles set forth in this Article.
Transmission tariff which will be prepared by the Authority produced, imported or exported natural gas transmission to be applied indiscriminately across all users who are equal beneficiaries of the transmission network price includes the terms and tariff conditions.
Authority has transit transmission tariffs for domestic transmission tariffs in order to promote the transit of natural gas transmission, according to the authority to establish different rules and regulations.
Storage storage service tariffs are determined freely by depolamac companies in the area between legal entities.
Transmission and storage companies, economical, efficient and safe operation services must demonstrate that they have the Agency.
3) Wholesale Tariff: The Authority shall determine the principles and conditions to be taken in natural gas sales tariff. The sale prices of these principles is determined freely by the parties engaged in natural gas trading within.

4) Retail Tariff: Distribution companies they supply gas from the cheapest source, efficient and safe operation is forced to prove they do, within the license period is obliged to comply with this obligation. unit purchase price of the gas distribution companies, unit cost, depreciation costs and retail prices, which would consist of tariff principles and other factors determined by the Authority. the consumer can not be charged under any name outside of the retail price. Retail sales tariffs taking into account inflation and other issues, may be re-established upon application of the distribution companies. the cost of services in institutions determine these prices, reasonable profitability and investment will enable natural gas purchase price takes into account the current market conditions and the like. terms and conditions of the tariffs approved by the Board, are binding on all real and legal persons who are subject to these tariffs.
fails to pay any of the natural or legal person as provided in this Act, rules and procedures, including the suspension of the service in question is a regulation.
In accordance with the principles set forth in this Article the Authority prepares tariff regulation for all kinds of tariffs. Prepared in accordance with principles of tariff regulation of the legal entities will be prepared about the prepared until the end of October each year and presented to the Board. The Board will review such applications will exceed 31 December of the same year and approved where appropriate. Tariff principles and limits set by the Agency re-considering inflation and other issues.
Imported and domestic natural gas imports and sales in the Fuel Price Stabilization Fund legislation does not apply to provisions.

PART TWO Other Provisions, Amended, Repealed and Inapplicable Provisions
Other provisions Article 12 a) expropriation; where required by the actions envisaged in this Law, No. 2942 dated 4.11.1983 and expropriation expropriation is done in accordance with the principles stated in the law. This need will be subject to Assembly decision replaces the decision in the public interest and is governed by the following process Expropriation Law.
Expropriated immovable property of the Treasury; The right to belong to legal persons who paid the expropriation. User rights are an integral part of the relevant license or certificate validity is limited to the period of validity.
termination of the license or certificate or revoked, legal entities Expropriation cost paid are not refundable.
B) Non same rights and leasing; legal persons with regard to the activities on land owned by the public, cost of ownership by entities related to non-payment by the same right to establish and request to lease the land.
If these requests are approved by the Board, as required in accordance Authority may usufruct, servitude, right of way to the top or long-term lease.
The price obtained in this way is the right of a legal person who inherits the obligation to pay. User rights are an integral part of the relevant license or certificate validity is limited to the period of validity.
C) notification; Notification will be made by the Authority under this Act, made in accordance with the Notification Law No. 7201 dated 11.2.1959.
D) the organization's money, documents and all kinds of goods are considered State Property. Meeting with the President of perpetrators of crimes related to their duties as members and staff of the Authority shall be punished as civil servants. Board members and staff considered offenses against offenses against public servants. prosecution in this matter is governed by the general rules.
E) BOTAS or natural gas related administration on the application of the legal entities holding licenses to conduct market operations 03.05.1985 dated and 3194 storage of natural gas according to the Zoning Law, the development plan of transmission and distribution lines can not call must be allocated in advance and natural gas transmission and distribution lines by processing the data necessary licenses in accordance with the development plan of the storage facility project.
F) the importation of natural gas sales, with regard to the determination of the sales price and distribution of the Municipal Law No. 1580 and 27.06.1984 dated and 3030 numbered Metropolitan Municipality of Management About the Decree Amendment Adoption of other laws and statutory law provisions contrary to this Law does not apply the decree.

G) BOTAS natural gas-related claims about the 6183 Law on Collection of Public Claims Procedure shall apply.
H) of the natural gas distribution activity in the existing entities subject to the staff employed by the Pension Fund, maintained relations with the Pension Fund for those who wish.
Amended, repealed and provisions will not apply
ARTICLE 13. a) 08.09.1983 dated and in the first paragraph of Article 64 of the 2886 Government Procurement Law "tourist facilities" to come before the words "and natural gas transmission, distribution and land in need of storage facilities and network "has been added.
B) contrary to the provisions of this Law Petroleum Law of 6326 does not apply.
C) dated 01.02.1990 and repealed Decree No. 397 on the use of natural gas has been removed.

Amendments to the Law of Electricity Market
ARTICLE 14.- 20.02.2001 dated and No. 4628 of the Law Article 1 of 6 subparagraph with the Second Section, Chapter and Article 4 title last in the article text "Electricity Market Regulatory Authority" phrases "Energy Market Regulatory Authority", 1 subparagraph of Article 7 of the second Section, Chapter and Article 5 of the title and the text in the "Electricity Market Regulatory Authority" phrases "Energy Market Regulatory Authority", as amended.
No. 4628 of Article 15 of the Law on the following to come after the Article 5 5 / substance has been added.
Board natural gas market related tasks
ARTICLE 5 / A.- Energy Market Regulatory Board, regarding the natural gas market fulfills the tasks in the following areas:
a) plans for the natural gas market activities, policies and to the Authority's views and comments on the application.
B) for the enforcement of rights arising from direct party to international treaties and obligations related to the natural gas market activities, the Authority to ensure the performance of its duties.
C) Natural Gas Market Law in matters authorized by the Authority to approve any regulation regarding the natural gas market activities and to ensure their implementation.
D) Natural Gas Market Law on the granting of the license and certificates and their implementation and take any decisions regarding cancellation and apply.
E) Natural Gas Market under the provisions in the law to take the decision to set prices with the identification of constraints and obligations which can be applied under certain circumstances.
F) competition at all or not enough spaces occur in the natural gas market, the prices and to arrange the principles and procedures regarding the formation of tariffs.
G) To approve the tariffs for the activities specified in the Natural Gas Market Law or to decide on the tariff revisions.
V) monitoring activities related to the natural gas market, conducting preliminary research and investigation process, under the authority to impose penalties and sanctions and to take all necessary judicial and administrative authorities, including reference to decisions to prosecute.
I) Natural Gas Market entities regarding the implementation of the Act or resolving disputes that arise between consumers and legal entities.
i) to perform other duties as shown in the Natural Gas Market Law and use powers.
ARTICLE 16 Law No. 4628 of Article 6 is amended as follows.
Prohibitions and impeachment Article 6. The Committee members during their membership unless based on a special law shall not be employed in any public or private organizations. Board members, at the end of membership in two years electrical and subject to private law operating in the natural gas market entity or can not take part in their subsidiaries or can not be a partner in this kind of work and it will provide income to or from affiliates legal entity or provide can be directly not enter or indirect relationship and not engage with electricity trading and natural gas trading.
Board members, other than securities for debt issued by the Treasury that Maliki before commencing work, the electricity and gas markets in the legal entities operating or their affiliates of all types of shares or up to third grade securities up blood and second degree of affinity relatives of people off the sell within thirty days from the start of his term or is obliged to dispose of by delegate.
spouses and first-degree blood relatives of
Board members, electricity and natural gas markets in legal outside public institutions and organizations operating entity or following the appointment of their subsidiaries, members of the Board and shall not participate during the membership period, or are not common in this type of work and this legal persons or to provide the income from associates are not allowed or can provide direct or indirect relationship, and does not engage in trade with electricity and natural gas trading.
Board members and Institute staff, disclose the confidential information related to dry and electricity and natural gas, all kinds of natural and legal persons located in the industry secrets, though they have left the task can not explain even can not use them, or the benefit of others.
term of office of Board members can not be before the end of the mission. However, this violates the ban on the substance or this Act with conviction in the law because of their crimes committed in relation to the tasks finalized Board Chairman and members, 657 Civil Servants Law in accordance with the civil servant are determined to lose the qualifications required to be, or more than three months by illness, accident or any other reason tasks can shape or tenure of could not continue to serve the remaining part of three months waiting for a full-fledged board report to be obtained from a hospital documented with the members of the Board of Ministers before they expire will be dismissed by the Board.
Article 17. Article 8 of Law No. 4628 (b) The following provisions added to the second subparagraph of paragraph (d) has been amended as follows. issues related to the shareholding of legal entities operating in the electricity market
does not apply to facilities that manufacture the natural gas market. However, natural gas storage facilities are within this scope.
D) The Agency is controlled by the Prime Ministry Inspection Board.
ARTICLE 18. No. 4628 in the first sentence of the ninth paragraph of Article 9 of the Act has been amended as follows.
Status of the pension institution in terms of staff, to be prepared by the Presidency and the Council of Ministers regulation to be issued by the Council.
Article 19 No. 4628 of the first paragraph of Article Article 10 to come after the first sentence "of) income related to the electricity market of the Corporation is composed of the following items" in the form of a paragraph was added, and (e) the following to come after me new regulations (B) was added as me.
B) revenues related to natural gas markets of the Corporation is composed of the following items:
a) Participation fee.
B) license, certificate, approval and visa processing costs.
C) Publications and other revenues.
D) Details to be announced to the public and provided that the grant will be given by international institutions and organizations to be used to finance studies and projects on the market developments.
The taxpayers of shares, which are legal persons holding licenses and certificates. Participation fee, referred to the taxpayer of the annual period of the net sales proceeds amount in their income statement for the Board of 0,2% (two per thousand) to participate will be determined to exceed the ratio is calculated by multiplying the ratio of shares. The participation rate will be applied to shares of the Year, it will be announced in December of the previous year.
No. 4628 Article 20 The following additional items are added to the Act.
ADDITIONAL ARTICLE 1. The Energy Market Regulatory Authority, together with the implementation of this Act, is authorized and responsible for the application of the Natural Gas Market Law. Because of the different markets of electricity and natural gas sector from each sector of the Energy Market Regulatory Authority and Council relating to market duties and regulations are executed separately and according to its own laws.
Annex Article 2 The Energy Market Regulatory Authority, the importation of natural gas transmission, distribution, storage, and trade and export administration of all the facts and identify licenses and certificates the rights and obligations of legal entities related to these activities, the market and the assessment of system operation, distribution and customer service for the establishment of regulations, the amendment and application, inspection, examining the prices reflect the cost of the natural gas market and the market is authorized and responsible for ensuring that the law be treated appropriately.
the execution of
Natural Gas Market Law, the true and control of the activities to be performed within the scope of the license or certificate issued by a legal person of the institution, supervision, guidance, and procedures to be followed and principles of this license and the scope of certification given criteria, duration, method of determining the price, with environmental legislation to adapt the rights of licenses and certificates by the method of keeping the records and obligations and other matters related to the regulation of the market should be seen in the regulations to be issued.
Authority prepares the Board's decision Natural Gas Market Law and regulations to be issued pursuant to long-term programs of entities operating in the market and taking in the views of relevant organizations and institutions.

Transitional Provisions PROVISIONAL ARTICLE 1. Preparation period, refers to the two-month period beginning on the date of publication of this Law. The Council of Ministers may extend to six months, including once this period.
period covered by Preparation;
Enters into force the date from before taken a legal claim to this Act, the document, the natural gas market that is made of a permit or authorization to virtue, from the date the Act comes into force can continue for up to twenty-four months. the aforementioned activities continue after this period is subject to permission to be taken under this Act. The provisions of this Act
Construction of the natural gas market activities in order to be allowed to continue in office;
A) from the date the law comes into force to submit an application to the Authority within two months
b) legal entities in the natural gas market activities, have not been barred from making such activities is
Preparation period in the city natural gas distribution rights to receive the company's tender by the selection of Ministers, to be presented to the Board to obtain permission for the selected companies, licensing contract signing procedure with the Ministry and according to the communiqué to be issued by the Ministry of similar operations. BOTAS Ministry in this regard is assigned to the execution of the General Directorate of the works in question. The contracts do not allow to be signed between the permitted company with the Ministry of Ministers shall enter into force with the approval and at the end of the preparatory period, for failing to comply with the provisions of the legislation will be prepared by the Agency, it converts Board contract distribution license by making the necessary changes to adapt to the legislation. Do not let the contract signed distribution companies can not object to this change.
Preparation period to any company wishing to operate in the natural gas market will not be until the end of the license or certificate under this Act.
From the date of entry into force of this Act, the Ministry of disputes in the preparation period for the implementation of the law on the elimination of disputes or doubts and is authorized officials.
BOTAS Provisional Article 2, after the date of publication of this law until it fell into the twenty percent of the national consumption can import new natural gas purchase contract. Preparation period after to begin each year at the latest the total annual amount of imports until 2009 until the fall to an annual twenty percent of national consumption, the current natural gas purchase and partial or all of the sales agreement, all rights and other import license proficiency owner who is willing to be transferred with the obligations BOTAS made tender for the transfer of the participating companies. The successful tenderer legal person, given consent to such transfer of botaş'. amount to be transferred to the seller side of the relevant legal entity shall come into force after the transfer to the new agreement. However, a tender if it can not contract with the vendor side of the legal person importing company BOTAS agree to fulfill all international obligations and provided not under the natural gas purchase price determined by bilateral agreement, the transfer can take place through sales. Make with Treasury-guaranteed contract Operate and Build-Operate-Transfer plants, the Treasury of applying the relevant Treasury provided to waive the guarantee of natural gas purchases that can act as a prudent operator in market conditions prove to the Board that makes the most economic resources and natural gas decrease in the purchase cost, electricity sales prices have to reflect so as to ensure a reduction.
amount transferred in each calendar year by BOTAS, which receives a percentage of the total amount of natural gas purchase commitments at the date of entry into force of the Law shall not be less than ten.

In addition, BOTAS Board in the application will be made for imports from countries outside the countries that have the current contract, the creation of a competitive environment in the market, taking into account the obligations and export connections from existing contracts may allow imports of evaluating the application within the rules and procedures to be determined. However, with the countries that have these agreements with BOTAS present time the country has ended up with no new gas purchase contracts by an importer company. These can be new import contracts for the same amount from the date of termination of the existing contract. However, if the purpose or exported by the Agency will be determined that the domestic natural gas supply deficit with these countries made a new gas purchase links.
According to the provisions of this Act, except for the distribution activities, BOTAS vertically integrated entity will continue until 2009. After that date, in accordance with legal personality horizontally integrated BOTAS is restructured. Restructuring will occur in the new entity resulting from a company that just having the gas purchase and sale contract and will import activity represents BOTAS BOTAS and referred to by name. Restructuring resulting from transmission activities of these companies, except that the company, others privatized within two years.
BOTAS transmission, storage, sales, accounting separation related to import activities from the end of the preparation period is performed within twelve months.
BOTAS Treasury guaranteed obligations are reserved.
Provisional Article 3- transition in urban distribution activities are performed as follows:
a) The Ministry of this Act into force of BOTAS in the subsequent two months to enter in the ownership and operation of Eskişehir and the privatization of the distribution business and assets of Bursa city to inform the Privatization Administration. Privatisation procedures, the preparation period no later than six months within a period of time, considering the rules and principles to be determined by the Authority and dated 24.11.1994 and numbered 4046 privatization Regulating Application and Some Laws and Decree on Amending the Law on the apartment Privatization Administration by is performed. Privatization of enterprises in the respective cities Provincial Administration to begin the transfer and distribution activities to legal persons, this Law Article 4 (g) the fulfillment of obligations to the municipality mentioned in paragraph and the city from the Board is required to take a distribution license.
B) ownership, operation and natural gas trade rights of municipalities or municipal companies in the natural gas distribution entities within existing city owned, from the date when this law enters into force to be financially in over three years and natural gas within the city they operate distribution available to network and license Treasury guaranteed and the early redemption of the cycle debt and the assumption of the debt as a result of nature, regardless of the repayment schedule of the external loan debt, provided for use in the payment of the debts of the Treasury, or Treasury guarantee and speed external debt of the public shares of twenty percent or less within three years from the last principal payment date It will be restructured by transferring to decrease.
C) distribution activities currently carried out by the Municipal Boards, or companies belonging to the municipality, from the date of entry into force of this Act shall be governed by the distribution licensee shall be held within twenty-four months. Agency license to be prepared, it will be appropriate to the type of license applied in other cities. However, the municipality or municipal companies involved in matters deemed beneficial or compulsory license according to the characteristics of the city, the Board evaluated are given in the license if necessary.
D) of natural gas distribution companies within cities, from 1 January 2002, the company must make accounting separation of distribution and sales activities.
PROVISIONAL ARTICLE 4, which has been initialed by BOTAS prior to the effective date of this Act Egyptian natural gas purchase and sale agreement, after the entry into force of this Act, in case of demand and supply to be made by the Board balance work goes supply shortages as a result of the agreement in question concluded It is excluded from the scope of this Act.
Enforcement Article 21- This Law shall enter into force on the date of publication. Executive

Article 22 of this Law shall be enforced by the Council of Ministers.