Section 21: Increase of capacity etc. of pipelines., Gas Act 1986

If in the case of a pipe-line system operated by a gas transporter it appears to the Director, on the application of a person other than the transporter, that the system can and should be modified—

by installing in it a junction through which another pipe-line may be connected to the system; or

by modifying apparatus and works associated with a high pressure pipe-line so as to increase the capacity of the pipe-line,

then, subject to subsection (3) below, the Director may, after giving to the transporter an opportunity of being heard about the matter and giving to the Health and Safety Executive notice of his proposed directions, give directions to the transporter in accordance with subsection (2) below in consequence of the application.

Directions under subsection (1) above may—

specify the modifications which the Director considers should be made in consequence of the application;

specify the sums or the method of determining the sums which the Director considers should be paid to the gas transporter by the applicant by way of consideration for the modifications;

specify the arrangements which the Director considers should be made by the applicant, within a period specified in that behalf in the directions, for the purpose of securing that those sums will be paid to the transporter if he carries out the modifications;

require the transporter, if the applicant makes those arrangements within the period aforesaid, to carry out the modifications within a period specified in that behalf in the directions.

Where the Director proposes to give directions under subsection (1) above, it shall be his duty before doing so to give to the applicant—

particulars of the modifications which he proposes to specify in the directions; and

an opportunity of making an application under subsection (1) of section 19 above in respect of the pipe-line system;

and that section shall have effect in relation to such an application made by virtue of this subsection as if for references to a pipe-line system there were substituted references to the pipe-line system as it would be with those modifications and the reference in subsection (2) to the Director deciding whether the application is to be adjourned were omitted.

In giving any directions under this section, the Director shall apply the principle that, in so far as the following, namely—

the cost of carrying out the modifications; and

a reasonable element of profit,

will not be recoverable by the gas transporter from elsewhere, the transporter should be entitled to receive them by way of consideration for carrying out the modifications.

References in this section to modifications include, in the case of modifications to any apparatus and works, references to changes in, substitutions for and additions to the apparatus and works; and the reference in subsection (1) above to apparatus and works associated with a pipe-line shall be construed in accordance with section 65(2) of the Pipe-lines Act 1962.

In this section—

"high pressure pipe-line" means any pipe-line which has a design operating pressure exceeding 7 bar gauge;
"pipe-line" has the same meaning as in the Pipe-lines Act 1962.

Section 21: Increase of capacity etc. of pipelines.

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