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Petroleum
Bill, 2006 (H.B. 5, 2006)
June
23, 2006
Gazetted Friday 23rd June, 2006
Important
note: This Bill has been replaced by HB
5A, 2006
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Petroleum
Bill, 2006
MEMORANDUM
The
purpose of this Bill is to establish a Petroleum Regulatory Authority
which will regulate and license petroleum product providers. In
more detail the Bill provides as follows:
Part I
The
Bill's short title is set out in clause 1, and the clause empowers
the President to bring the Bill, once an Act, into operation. Clause
2 defines the terms that are used throughout the Bill.
Part II
This
Part will establish the Petroleum Regulatory Authority as a body
corporate in clause 3 and will set out its functions and powers
in clause 4 and the Schedule. The functions of the Authority will
include ensuring the provision of sufficient petroleum product for
domestic use, granting licences to persons in respect of retailing
or production, procurement of petroleum products in Zimbabwe.
Part III
The
activities of the Authority will be directed by a Board consisting
of five members, all of whom will be appointed by the Minister of
Energy and Power Development, after consultation with the President.
The
qualifications of members of the Authority's Board, their terms
of service and conditions of office, and the filling of vacancies
on the Board, are dealt with in clauses 7 to 11, 15 and 16. Clauses
7 and 12 provide that a member's terms and conditions of service
and remuneration may not, without his or her consent, be changed
to his or her detriment during his or her tenure of office. Clause
13 deals with the procedure to be followed by the Board at its meetings.
The Board will be empowered to appoint committees and delegate its
functions to them (clause 14). The Board will be required to keep
proper minutes of its proceedings (clause 18).
Part IV
This
Part will provide for the financial affairs of the Authority, and
sets out the sources of its funds in clause 19. In terms of clause
20, any surplus of income over expenditure at the end of the Authority's
financial year will be invested in such manner as the Authority
considers appropriate and the financial year of the Authority is
provided for in clause 21. The Authority will be required to keep
proper accounts by clause 22. The auditing of the accounts of the
Authority is provided for in clause 23.
Part V
The Minister
will be empowered to issue policy directions to the Board in terms
of clause 25. In terms of clause 26, the Board will be required
to submit a report to the Minister every year on its activities.
The Authority's day-to-day administration will be in the control
of a Chief Executive Officer appointed under clause 27. The Authority,
its employees, the Board and its members and members of committees
will be exempted from liability by clause 28 in the bona fide exercise
of their functions.
Part VI
The procurement,
selling or production of petroleum products in Zimbabwe shall only
be done after obtaining a licence issued by the Authority.
Clause
34 will restrict a licensee not to assign or cede his or her licence.
A
person who wishes to obtain a licence will be required by clause
36 to submit an application to the Authority and the clause will
empower the Authority to grant or refuse to grant a licence.
In
terms of clause 40 the Authority will be empowered to suspend or
cancel licences it has issued for the reasons stated in the clause.
The Authority will however be required to first inform the licensee
of its intention and invite representations from him or her and
will be obliged to take due account of any representations made
by the licensee. In addition, instead of suspending or cancelling
licences, the Authority may choose to issue orders to licensees
requiring compliance with the conditions of their licences. Such
orders may be enforced in civil proceedings brought by the Authority
or by any person affected by any non-compliance with such order.
The
Authority will be required to keep a register of licences in terms
of clause 42.
Part VII
Part
VII sets out provisions relating to the Fuel Price Stabilisation
Fund.
Part VIII
This
Part provides for consumer protection standards where a licensee
is required to develop and submit to the Authority for its review
consumer protection standards.
Part IX
This
Part deals with monitoring the provision of petroleum products so
that there is no monopoly by any oil company in the provision of
that product. Under this Part National Oil Company of Zimbabwe (NOCZIM)
is required to maintain strategic reserves of petroleum product.
The Minister shall prescribe oil product prices.
Part X
Part X makes
provision for the appointment of inspectors. This Part also empowers
the Minister to make regulations.
Part XI
Part XI
deals with offences. The offences set out in the Part relate to
failure or refusal to furnish returns.
Part XII
Clause 60 provides for savings and transitional provisions. Every
by-law in force under the Control of Goods Act [Chapter 14:05]
relating to petroleum industry shall be saved.
Schedule
The
Schedule sets out the powers of the Authority.
Petroleum
Bill, 2006
ARRANGEMENT
OF SECTIONS
PART
I
Preliminary
Section
1.
Short title and date of commencement
2. Interpretation.
PART
II
Establishment
and Functions of Petroleum Regulatory Authority
3.
Establishment of Petroleum Regulatory Authority.
4. Functions
and powers of Authority.
PART
III
Petroleum
Regulatory Authority Board
5.
Establishment of Petroleum Regulatory Authority Board.
6. Constitution
of Board.
7. Terms
of office and conditions of service of members.
8. Disqualifications
for appointment as member.
9. Vacation
of office by member.
10. Dismissal
or suspension of members.
11. Filling
of vacancies on Board.
12. Chairperson
and vice-chairperson of Board.
13. Meetings
and procedure of Board.
14. Committees
of Board.
15. Remuneration
and expenses of members of Board and members of committees.
16. Disclosure
of interest of members of Board and members of committees.
17. Validity
of decisions and acts of Board.
18. Minutes
of proceedings of Board and committees.
PART
IV
Financial Provisions
19.
Funds of Authority.
20. Investment
of moneys not immediately required by Authority.
21. Financial
year of Authority.
22. Accounts
of Authority.
`23. Audit
of Authority's accounts.
24. Powers
of auditors.
PART
V
Miscellaneous Provisions Relating to Authority
25.
Minister may give policy directions.
26. Reports
of Authority.
27. Chief
Executive Officer and other employees of Authority.
28. Exemption
from liability for Authority.
PART
IV
Licences
29.
Licensing requirement.
30. Procurement
licence.
31. Retailing
licence.
32. Production
licence.
33. General
duties of licensees.
34. Restriction
on transfer, etc. of licence or petroleum undertaking.
35. Licence
application.
36. Terms
and conditions of licence.
37. Renewal
of licence.
38. Amendment
of licence.
39. Enforcement
of licence.
40. Cancellation
of licence.
41. Form
of licence.
42. Register
of licences.
43. Returns
by licensees.
PART
VII
Fuel Price Stabilisation Fund
44.
Interpretation in Part VII.
45. Establishment
of Fuel Price Stabilisation Fund.
46. Objects
of Fund.
47. Composition
of Fund.
48. Fuel
price stabilisation levy.
49. Financial
year of Fund.
50. Books
of accounts and audit of Fund.
PART
VIII
Consumer Protection and Licensee Performance Standards
51.
Consumer protection standards.
52. Competition.
PART
IX
Maintenance of Strategic Reserves and Price Control
53.
Strategic reserves.
54. Petroleum
product prices.
PART
X
General
55.
Inspections.
56. Appeals.
57. Regulations.
PART
XI
Offences
58.
False statements and declarations and other offences.
59. Disclosure
of confidential information and use of information acquired by inspectors,
etc., for personal gain.
PART
XII
Savings
and Transitional Provisions
60. Savings
and transitional provisions.
BILL
To
provide for the establishment of the Petroleum Regulatory Authority
and its functions and management; to provide for the licensing and
regulation of the petroleum industry; and to provide for matters
incidental to or connected with the foregoing.
ENACTED by the
President and the Parliament of Zimbabwe.
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