Petroleum Act, 2008 (No. 4 of 2008)

2. Application.

3. Interpretation. PART II ADMINISTRATION AND REGULATION

4. Minister's superviliOI")' powers.

5. Functions of the Authority.

6. Offence for contravening Authority's direction. PART ill PETROLEUM OPERATING LICENCES

7. Obligation to obtain a licence.

8. Application for a licence.

9. Approval of application.

10. Duration oflicence.

11. Transferring of licence.

12. Suspension, revocation or termination of licence. PART IV APl'llOVAl OF WORKS FOR THE C<lNSTRUCilON OF PET!I.OLEUM lNSTAllATIONS

13. Application for oonslruction approval.

14. Approval of application.

15. Expiry ofconsttuction approval.

16. Obligations to construct pipelines within storage depots, pipeline facilities or refinery.

17. Conditions for granting approval. J8. Revocation or suspension of approval. I 2 No4 Petroleum 2008 PARTV OBLIGATIONS OF A HOLDER OF AN APPROVAL OR LICENSE

19. Compliance with laws, regulations, standards and specifications.

20. Inspection and information.

21. National Petroleum Information System. ' 22. Reports and infonnation to be submitted.

23. Central Registry of Petroleum Operations. PART VI ASSURANCE OF FAIR COMPETl110?-I

24. Prohibition against activities contrary to principles of fair competition.

25. Conditions for unused capacities of third party facilities. PARTVII Pueuc HEALTH AND SAFETY AND PROTECTION OF THE ENvIRON- MENT

26. Adoption and adaptation of international standards and specifications.

27. Environmental Impact Assessment.

28. Petroleum and Petroleum products spill.

29. National Petroleum Emergency Supply Plan. PART VIII PETROLEUM PRODUCTS PRICES

30. Maintenance of minimum strategic reserve.

31. Monitoring of petroleum and petroleum product prices. 32. hnposition of petroleum fee. No. 4 Petroleum 2008 3 PART IX PETROLEUM SUPPLY 0PEII.ATIONS

33. Efficient procurement. 3-4. Petroleum and petroleum product5 specifications.

35. Off-loading.

36. Penalty. (b) Transportation

37. Vehicle's or vessel's specifications.

38. Petroleum and petroleum products to be used for intended purposes.

39. Penalty.

40. Ships to lake precautions. -._ (c) T.-ansformatum

41. Refining of petroleum.

42. Blending ofbiofuel. (d) Storage

43. Storage of petroleum or petroleum products. (e) Dis1ributum

44. Petroleum and petroleum products to conform with quality, safety and envirotunental specification.

45. Recovering of petroleum and petroleum product5. PARTX Of"FENcES AND PENALTIES

46. Offences.

47. Geoeral penalties.

48. Joint liability.

49. Initiation of llciions by consumers. SO. Compounding of offences by Authority. 4 No.4 Petroleum 2008 PARTXI DISPUTES SITll.EMENT 5 l. Settlement of Disputes.

52. Appeal to the Fair Competition Tribunal. PART XII MISCELLANEOUS PROVISIONS

53. Regulations.

54. Production ofbiofuel.

55. Repeal.

56. Transitional provisions and savings. No. 4 Petroleum , ... 5 It No. 4 OF 2008 I ASSENT, . le . .. . .. . . . ............ . President ...... -~-~- -~~-·- ?~?-~ .................. . An Act to make provisions fur Importation, esportatloo, trans- portation, transformation, storage and wholesale and retail distribution of petroleum and petroleum products in a liber- alized market and to provide for related matters. ENACTED by Parliament of the United Republic of Tanzania. PART I PRELIMINARY l'JtoVISIONS I. This Act may be cited as the Petroleum Act, 2008 and shall come into operation on such date as the Minister may. by notice in the """ utle Gazelle, appoint. 2.-{1) This Act shall apply to Mainland Tanzania relation to the Applica- importation. exportation, transfonnation, transportation, srorage, dis• tion tribution, wholesale trade and retail sale of petroleum and petroleum products IIIld related activities. (2) The provisions of this Act shall also apply to all persons deal- ing in petroleum and petrolewn products, subject to specific exemp- tions which may be granted to military and other entities for reasons of national security. (3) This Act shall not apply to the exploration, development and production of petroleum as well as to transportation, storage and trans- forntation of such petroleum within the limits of the development area within the territory of the United Republic. 6 No, 4 Petroleum 2008 ln1erpn,- 3. In this Act, unless the context requires olherwise- wion Mapproval" means a petroleum construction approval issued under sec- tion 13; "Authority" means the Energy and water Utilities Regulatory Authority also known by its acronym "EWURA" as established Cap.414 under section 4 of the Energy and Waler Utilities Regulatory Authority Act; "CRPO" means the Central Regisby of Petroleum Operations; ••economic regulation" means an intetvention to modify, as and when deemed appropriate, the economic beluiviour of a regulated suppli- er aimed at narrowing choices in certain areas including prices, rate of return and methods of procurement; ••licence" means a petroleum operating licence issued under this Act and the term "licensee" shall be construed accordingly; "Ministry" means the Ministry resJ)Ollliib\e for petroleum matters and the term "Minister'' shall be construed accordingly; "NPIS" means the National Petroleum Information System established under Section 22; ''pipeline" means a pipe or system of pipes that is used or is to be used for the transportation of petroleum and includes associated works and apparatus; "petroleum" means petroleum crude and any liquid or gas made from petroleum crude, coal, schist, shale, ttee, peat or any produce of petroleum crude and includes condensate; ·)letroleum installations" means petroleum pipelines. petroleum refin- ery, processing plants, petroleum storage depots, bulk liguified petroleum gas facility, retail stations and industries that which use petroleum as feedstock ; "petroleum products" means organic compounds, pure or blended, which arc derived from the refining or processing of petroleum crude oils, biofuels or synthetic fuels and includes-- (a) asphalts, bitumens, petroleum coke and other residual prod- ucts; {b) bunkers or heavy residual fuel oils for combustion engines or industrial heat processes, ruch as burners for boilers or heat- ing furnaces; (c) commercial gases - methane, ethane, propane, butane and other similar petroleum gases, biogas or mixtures of these gases, whether in gaseous or liquefied state; Petroleum 2008 7 (d) gasoil or automotive diesel, biodiesel, industrial marine diesels or synthetic diesel; {e) gasolines petrol or naphtha or bioethanal products; (I) kerosenes or other similar oils fm- illumination or combustion applications; (g) lubricating oils, base oils or refined and blended finished oils; (h) turbo fuels for jet propulsion engines; (i) other products or by-products of petroleum crude processing having a Flash Point lower than 120 degrees Celsius, as deter- mined in a Pensky-Martens closed test apparatus; ''petroleurn supply operations" means all operations and activities for or in connection with the importation, landing, loading, transforma- tion, transportation, storage, distnbuti.ou, wholesale or retail trade of petroleurn and petroleum products, including the operations of industrial consumers who buy their products directly from whole- salers; ''recognised consumer organisation" means an organisations which is registered and officially recognised by the Fair Competition Commissioner as consumer organisation in accordance with the Fair Competition Act, "refinery" means a distiUlltioo plant for refining petroleurn crude to cap. 28S yield petroleurn products and liquid petroleum gas; "specifications" has the meaning assigned to it under section 2 of the Cap. 130 Tanzania Bureau of S!andards Act; "standard" has the meaning assigned to it under section 2 of the Tannmia Bureau of Standards Act; "supply chain" means all activities, operations, mstallations, equip- ment and other facilities directly or indirectly related to the petro- leum supply operations; "TBS" means Tanzania Bureau of Standards. PARTII ADMINISTRATION AND REGULATION

4. The Minister shall, in the discharge of supervisory role under this Act - (a) advise the Government on petroleum supply policy matters and supply strategies; (b) coordinate all legislative and regulatory proposals relating to petroleum supply; 8 No. 4 Petroleum 2008 (c) in consultation wilh Tanzania Bureau of Standards and by order in the Gazette, approve the official denomination, tech- nical specifications, standards and quality control norms for all petroleum products imported into or produced in Tanzania; {d) in consultation with Tanzania Bureau of Standards and by · order in the Gazelle, approve the application of technical specifications, standards and quality control nonns for the protection of public health and safety, the environment and ensure the safety of operations in the supply chain; (e) prepare a Petroleum Elllelgency Supply Plan and ensure suf- ficient strategic reserves of petroleum and petroleum products as required by the market; (I) cause to be conducted studies necessary for administrative and management pwposes in respect of the petroleum supply; and perform other fimctions assigned to him by this Act. S.-{l) The Authority shall perform technical, economic and safety Authority regulatory functions in respect of the petroleum supply. (2) Without prejudice to the functions c-onferred upon the Authority llllder subsection (1), the Authority may- (a) issue. renew, suspend or caru;el construction approvals and operational licences; (b) monitor petroleum quality and standards; (c) initiate and conduct investigations in relation to technical, economic and safety issues in the delivery of service to con- sumers; (d) give any necessary directions to any penon granted a licence or approval under this Act; C,p. 4!4 (c) charge and collect recs and levies fo.- petroleum sector charged in acco!dance with the Eneigy and Water Utilities Regulatory Authority Act; (I) approve applications for tariffs and prices; (g) prescribe code or conduct in respect of per.ions providing services under this Act; (h) prescribe and cause to be published in the Gazette and in at lea.st one Kiswahili and one English newspaper technical, eco- nomic and safety standards of services; Petroleum :Z008 9 (i) monitor environmental and safety impacts in the provision of petroleum services under this Act; and (j) perfonn other functions which are incident.Bl or ancillary to the functions spe<,:ified under this section. (3) For the PUJPOSCS of subsection (2), the Authority may make rules prescribing the manner in which any of such matters shall be implemented or wu}ertal<en. ~-,...

6. A per.ion who contravenes an order issued, direction or condi- Offence tion given by the Authority in relation to performance of its regulatory for ron• functions commits an offence and upon conviction shall be liable to a ning fine of 1101 exceeding ten million shillings or to imprisonment for a term not exceeding five years or to both. ri!y's direction PART 111 PETROLEUM OPERATING LICENCES

7. A person shall DOI perfonn petroleum supply operations without Obliga- having obtained a licence in accordance with the provisions of this Act tion to obtain a licence 8.-{ I) A pen;on shall, for PUJPOSCS of obtaining a licence for one or Applico- more activities in the supply chain, apply for an operational licence, to lion for a licence the Authority. (2) The procedure for filing, evaluating and approving lhe applica- tions Bild the documents as submitted by the applicant shall be as pre- scribed by regulations. (3) During the process of application, evaluation and approval, all applicants shall be treated equally without any discrimination or pref- erences, and the Authority may not require or impose any terms or con- ditions which are not specified or authorised by this Act. (4) Prior to the issuance ofa licence under this section, the appli- Cap. 191 cant shall comply with all necessary environmental requirements as provided for under the E.nviromnental. Managemeut Act. to No, 4 Petroleum Approval 9.-{ 1) The Authority shall, afte:r due evaluation of the application ohppli- and in a prescribed fonn. issue a licence which may be attached with ca-tion such conditions as the Aulrority msy find necessary. {2) TheAlllhority shall, when considering application for a licence take into account- (a) the contribution of the proposed activities to meeting the future petroleum supply needs of customers; (b) the consistency of the proposed activities with the Tanzanian Energy Phm and Strategies; {c) the contribu1ion of the proposed activitie~ to competitive con- ditions in the petroleum supply industry; (d) the social and environmen!al impacts of the proposed activi- ties; {e) the impact that the proposed activities may have on health and safety of employees and the public; (f) the legal, ~hnical, economic and financial capacity of the applicant to conduct the proposed activities; (g) the cos!S of the activities and the effect on petroleum prices to customers; (h) any rei,=entations and objections to the proposed activities made by the public; and (i) other public interes!S which may be affected by the proposed activities. (3) Where the Authority refuses to approve a licence under subsec- tion (I) it shall, in writing, inform the applicant reasons for the refusal. (4) The Authority shall, within forty days from a date of receipt of application, notify the applicant of the approval or refusal ofllle appli- cation. Duration of 10.-{1) A licence shall he valid until the completion of the works licence and its final ac.:eptance by the Authority. (2) A licence shall have duration of five to twenty yean;, depend- ing on the type of activity covered, and may be renewed. No. 4 Petroleum 2008 11 (3) The applicant shall, upoo renewal ofa licence, pay a prescribed fee lo the Authority, 11.--{l) A liccnce shall not be assigned lo or transferred from the Transfe!T bolder lo another person with011t an approval by the Authority for that ingof PW'JXlse, licenee (2) Without prejudice lo subsection (I) a change of own=;hip of a finn in relation to which licence bas been issued shall require approval of the Authority,

12. A licence may be--- (a) suspended by the Authority in case ofviollll:ioos of provisions of the Act relating to protection of occupational health, public safety and !he environment or for any other reasons provided .... •-· si<m,rc,,c O< lermi- for under this Act; or {b) revoked by the Authority or be automatically terminated if a ., .,._tion licence bolder fails lo remedy or desist from an act constituting viola- tion wilhin a prescribed time, PART IV APPROVAL OF WOii.KS FOR THE CONSl1UJCJ10N OF PE'fRoLEUM iNsrALLATIO~ 13.--( I) Any person intending to construct a petroleum installation or petroleum carriage facility shall. apply in writing to the Authority for an approval, (2) An application under subsection (I) shal- ---·~--~ Appl.:a- ~ {a) state the name and address of the owner of the proposed pipeline, refinery, bulk liquefied petroleum gas facility; {b) be accompanied by three copies of plans and specifications for the proposed pipeline or refinery facilities; (c) in the case oh pipeline- (i) specify the points between which the proposed pipeline is intended to run and the full delineation of its ~right of way" (ii) state what is to be transported by the proposed pipeline; in the case of a refinery, petroleum storage depots or pro- 12 No, 4 Petroleum 2008 processing plants facility, specify the location, type and capac- ity; and (d) contain such other details as may be prescribed by the Authority. (3) The Authority shall consider every application received under this sectiqn and if SRtisfied and by notice in the Gazette, issue an approval for a licence as applied for. (4) The approval shall be subject to such conditions, as may be prescribed by the Authority. (5) Where the Authority refuses to grant an approval under this section, it shall notify the applicant and state reasons for such refusal. Approval 14.-(1) The Authority shall, after due evaluation of the application ofoppli- and in a prescribed f,;,rm, issue an approval which may be atlBCbed ea--tions with such conditions as may be oocessary. (2) Where the Authority refuses to issue an approval under subsec- tion (I) it shall, in writing, inform the applicant reasons for such refu,,l (3) The Authority shall, within forty days from the date of receipt of application, notify the applicant of the approval or refusal of appli- cation. IS. Where, after an approval to construct petroleum installation has been granted, the execution of the woiks, lias not commenced within twelve months from the date on which the approval was grant- ed or at the ei.piiy of any extended period which the Authority may allow, the approval shall cease to have effect. Obli9a- --· tioru, 1" 16.-( I) In the case of any emergency works for the construction of a pipeline, the execution thereof msy, subject to any relevant law, be effected without any authorization by the Authority, provided that as ·- pipe\;,... within soon as practicable after the works lias been executed, lb.owner of the pipeline shall inform the Authority in writing of the works attaching depot•. pipeline focilities or rcfin- o, No, 4 Petroleum 2008 13 copies of detailed drawings of such works and the route intended to be taken by the pipeline and its "right of way". (2) No approval shall be required for the construction of pipelines within a petroleum ins!allation, unless the installation is pipeline. 17,-{ I) The Authority shall, before granting approval under section 14, consider-· (a) the relevant Government policies; (b) the technical and financial capability of the applicant; and __, Conch- llOns for granhng (c) any public interest that in the Authority's opinion, may be affected by the granting or the refusal of the approval being soogh<. (2) The approval may contain-- (a) such terms and conditions as the Authority deems appropriate; (b) the name ofa person who is authorized to execute the works; location; and (c) any conditions to be satisfied before any works authorized by the approval. (3) Subject to subsection (2), no person shall, before the conditions are satisfied, use any works for which the execution was authorized by the Authority except to the extent specified in a notice given by the Authority. (4) A notice given by the Authority stating that the conditions spec- ified in the approval under p11I11grapb (e) of subsection (2) have been satisfied shall be conclusive evidence for the purposes of this Act that conditions have been fultllled. =-· ·- 18.-{!) The Authority may, by notice in the Gazelle, withdraw or suspend an approval under this Part if any term or oondition thereof lion or has not been complied with. nsion of m (2) Where the Authority intends to withdraw, suspend or amend an •pprov•I approval under this section shall, at least twenty-one days before the date of the intended revocation or suspension notify the hoWer of such intention specifying the reasons thereof. 14 No. 4 Petroleum 2008 (3) Notwithstanding the provisions of subsections (I) and (2), lhe Autbority may, by notice in the Gazette, withdraw or suspend an approval under Ibis Part on the application or with the consent of the holder of such approval. (4) lbe Authority may, by notice in the Gazette, reinstate an approval withdro.wn or suspended under subsection (I) if satisfied that the reasons for the revocation or suspension are no longer eii:isting. PARTY OBLIGATIONS OF A HOLDER OF AN APPROVAL DR LICENCE Compl•- l!I. All participants in the supply chain and persons working under noc Wllh law,, their direction as well as the installations and equipment used, shall ---· comply with all relevant laws, standards and technical specifications =•· lion,. relating to protection of occupational health, public safety and the environment. ~ lions 10.-{ 1) A holder of an approval or licence shall submit or make available for inspection reports and records, and fumish such neces- infonna• tion sary information as may he required for the purpose of carrying out the provisions of this Act. (2) The holder sha[l maintain an address in Mainland Tanzania lo which communicatioru; may he sent and furnish the same to the Authority. (3) Forthe purpose ofcarrying out inspections or other monitoring and enforcement actions, the Authority may at BIIY time, enter upon any area, premises or working place where construction works or petroleum supply operations are being performed by a licensee. -- Nationol lnfo:ma- ,,... tion

21.-(1) There shall he established a National Petroleum Information System (NPIS) which shall he organised and maintained by the Authority. (2) The NPIS shall consist of an integrated and centralised informa- tion system using modem data processing technology and covering all petroleum supply operations and installations, the principal lllBJket No. 4 Petroleum 2008 15 principal market activities and statistics of the couotry as weU as international reference data for the purpose of - (a) serving as a strategic planning tool for lhe Government and olher interested parties; and (b) informing periodically the public about the status ofthepetro- ·-~- Jewn prodncts market.

22.-( l) All licensees shall submit to the Authority periodic reports ~ and other infonnation for the NPIS as may be prescribed infumla• - <ion 10 (2) All infonnation contained in the NPIS shall be available for inspection by public with the exception of information, which has been qualified as confidential in order to protect proprietary market data or for other reasons as may be determined by the Authority.

23. The Authority shall establish and maintain a Central Registry of Petroleum Operations (CRPO) which shall form part of lhe NPIS .,..., Centnl containing- (a) information on petroleum supply and nse by type, quantity and region; (b) information on pelrolewn importation by type, quantity and source; and (c) information on petrolewn eKportation by type, quantity and destmation; (d) information on refinery products by type, quantity and source; {e) information relating to petrolewn or petroleum products in transit; and {I) a reconl of all applications, grallls, variations, assignments transfers and suspensions; (g) revocations of approval and licences; and (h) all relevant information on the holders and their openitions and installations. PART VI AsSURANCE OF FAIR COMPETITION

24.-(1) Subject to the provisions of the Energy and Water Utilities l'roh1bi- tion Regulatory Authority Act, all petroleum operations shall be subject to ogainst the provisions of the Fair Competition Act in relation to - activities ""'"" to prir.ci· 16 No, 4 Petroleum 2008 plc<of (a) the fonnalion of cartels; filir com- {b) barriers to entry and ex.it; pcti-tion Cap.414 (c) abuse of dominant position and market power; (d) formation of mergers and acquisitions for anti-competitive purposes; (e) attempts to control prices; (I) the creation of artificial sbonages of products or services; and (g) other restrictive trade practices as defined in !hat Act, with intention to contravene the principles of fair competition or impeding the functioning of a free market for petroleum prod- ucts within the country. Cap,285 (2) Subject to the provisions of the fair Competition Act, all par- ticipants in the supply chain shall sell products and offer services to all interested perwns without undue delay and without any form of dis- crimination by means of quality, quantity, price and any other form of discriminati!lD. (3) The fair Competition Cnmrnissioo shall monitor conditions of the market and trade practices of participants in the supply chain. Condi- -- tion,; for 25. In order to foster a competitive petroleum products market for future participants in the supply chain, the conditions hereunder shall ~-~ apply- o fthinl (a) a licensee who is the operator or owner of a facility with facilities unused capacity shall apply to the Authority for approval of tariff for the use of such capacity and other reasonable teJms and conditions for the use of the fill;ility. {b) a licensee may offer access of unused capacity to other users on terms and conditions as may be approved by the Authority; md (c) users of unused capacity shall hold a licence required for the respective operation and provide proof of his capability to pay the tariff and fulfill other financial and techni<,:al conditions as agreed upon with the owner or operator of the facility. Petroleum 2008 17 PART Vil PuBLIC HEALTH AND SAFETY AND PROTECllON OF THE ENVIRONMENT

26.-( I) The Authority shall, in consultation with the TBS, develop and carry out a program of gradual adoption and adaptation of the pre- vailing international standards, technical specifications and codes of pra1:tice in oi;der to upgrade the inlraslructun: of the supply chain, the quality of petroleum products and the services provided by the partic- ipants to the standards of the international petroleum industry. (2) The standards, specifications and codes as established by the ·- ~ specifi- cations organizations recognized by the international petroleum industry in matters of public health and safety and protection of the environment shall be adopted and declared as compulsory standards in accordance Cap.BO with the provisions of the Tanzania Bureau of Standards Act. (3) The Minister -rnay, after consultation with the Authority, approve temporary application of certain international standards, spec- ifications or codes of practice if the relevanl international standards, specifications or codes of practice have not been formally adopted according to subsection (I). Etwiron- 27..-{ I) The Authority shall, in co-<.ciination wilh the competent -w environmental authorities, establish the classification of petroleum supply operations or projects within the supply chain which shall require environmental impact studies as a condition for issuing an approval or a licence issued under this Act -•- Impact _,, (2) In the event that an Environmental Impact Assessment is required or conditions are to be met in accordance with the Cap. 19! Environmental Management Act, an applicllllt of llll approval or licence shall fulfill such requirements or conditions. 28.-{J) A custodian of the product where there is a major petrole- um or petroleum product spill, shall repon the incident to the Authority within twenty four hours after the spillage of the products. 18 No. 4 Petroleum 2008 cap. 191 (2) The holder or owner or the prodw:.:t shall urgently take all appropriate steps to clean-up the petroleum prodw:.:t spill, and pay for the costs in accordMce with lbe Environmental Management Act (3) Where the bolder or person referred to under subsection (2) fails to comply to the satisfaction of the Authority wilhin the time spec- ified in the notice or within such further period as the Authority may allow, .the Authority may, in writing, cause such steps to be taken as may be necessary to clean up the spill and rwover the costs incurred in accordance with the relevant laws. (4) This section shall apply to an incident- (a) constituting or arising &om, whether who1\y or in part, a petroleum product spill or involving the risk of a petroleum product spill; or (b) arising from the clelllliog-up or restoring of relevant premises. (5) Where ii-(lovernment illlilitution or a local authority incun; costs or expenses as a result of the occurrence of an incident to which this section applies, any such costs or expenses reasonably incurred by the relevant authority shall be recovered as a Government debt in accordance with the relevant laws. (6) The costs or expenses may be recovered--- (a) in the case of costs or expenses incurred by a local authority; or (b) in the case of costs or expenses incum:d by the Government institution concerned. (7) The costs or expenses incurred may be recovered from: (a) in the case of an incident referred to in paragraph (a) of sub- section (4}- (i) the person who was the owner of the petroleum product at the time of the incident; (ii) tbe person who was in control or possession oftbe petro- leum product at lhe time of the incident; or No. 4 Petroleum 2008 19 (iii) the person who ca.used the incident; (b) in the case of an incident referred to in paragraph (b) of sub- section (4}- (i) the relevant licence or approval holder; (ii) the owner of the relevant premises, buildings, strucrures or plant where such spill originated; or (iii) the person who caused the incident. (8) Notwithstanding any provision of this subsection, costs and expenses shall not be recovered against a person who proves:- (a) that !he incident was due to some causes beyond the person's control or to the act or default of another person; (b) that such person could not by the exercise of reasonable dili• gem:e have pre\lfflted the occurrence of the incident; or (c) that !he incident is not attributable to an act or omission ofa person who was an employee or agent of that pe=,n at the time when the incident occurred. (9) For the purpose of this section ~major petroleum or petroleum product spill" means a petroleum or petroleum product spill of more than two hlllldred littes per spill. 29.--{ I) The Minister may, for pwposcs of responding to accidents, natural disasters or other interruptions or distortions of the petroleum product supply, cause a Petroleum Emergency Supply Plan to be pre- pared in close co-operation wilh other competent Government author- ities and !he participan!S in !he supply chain. -·- National ~ Supply Plan (2) In the case of emergency for re3.'!0ns referred to in subsection (I), the Minister may, temporarily intervene in the supply chain or implement other measures or restrictions provided for in the Petroleum Emergency Supply Plan. (3) Measures under subsection (I) may al.., be taken in the event that participants in the supply chain are seri0115ly endangering the functioning of the competitive supply system by trying to establish monopolies or to control segments of the market. 20 No. 4 Petroleum 2008 (4) Toe details of the elabontioo, content BDd implemeutation or the PlBD shall be made in lhe regulatioos. Mainteo- 30,-{l) The Minister may for the purposes or ensuring reliability = mini- •' of supply of petroleum and petroleum prodncts in the country cause strategic reserves of petroleum products to be maintained in sufficient _, m= quantities and at a location that the Minister deems proper. ~. (2) For purposes of reliability and continuity of the petroleum sup- _, ~ ply within the country, the Minister, may after consultation with the Authority and by order in the Gazette, direct all licensees, including industrial cornnuners buying directly from wholesale distributors, to maintain at their own e1<pense minimum security stocks of petroleum or of all or certain petroleum products in their custody. (3) Without prejudice to subsections(!) and (2) the Tanzania Development Corporation shall at all times keep and maintain ru,.tion- al strategic reserve of petroleum and petroleum products. PARTVlll f'ETRoLEUM PRODUCTS PRICES Monito- 31. The prices for petroleum and petroleum products throng)mut ring of the supply chain shall be governed by the rules of supply and demand --· •= teum and ,_ ~'" ,.,.. subject to the provisions of the Energy and Water Utilities Regulatory Authority Act and the Fair Competition Act. '" and 285 lmposi- 32.-{1) There shall be a fee to be known as the petroleum foe. tion of ::""'" as shall (2) The petroleum fee shall be charged on such petroleum products be prescribed in the regulations by the Minister upon consul- tation with the Minister responsible for finance. (3) The fee shall be collected by the Tauzania Revenue Authority or such other institution as may be prescribed by the Minister and No, 4 Petroleum 2008 21 deposited in the Energy Account in lhe Ministry established for the purpose of eneqey development. PART IX PETROLEUM SUPPLY OPERATIONS JmportatiOll 33.-{ I) No pe,oot1 shall import petroleum or petroleum products unless lhe importation is conducted through efficient procurement. (2) The efficient procurement referred to in subsection (I) shall include such conditions or requirements as the Minister may prescribe.

34. Pelroleum and petroleum products imported )!W'"Suant to this Act shall comply with such specii:ications as the Minister may, by reg- -- .., ,_ -· ulations, prescribe. spccifi, cation,

35. The Authority shall establish procedures for off-lmw:ling of off.load, petroleum and petroleum products by taking into 1X111Sideration - mg (a) sensitivity of product; (bl national stock position; and (c) non-discrimination amongst licensees.

36. Any person who contravenes any provision UDder this Sub- Penalcy Part commits an offence and shall be liable oo convictioo to a fine not less than one million shillings or twenty percent of lhe value of the total consignment whichever amount is greater orto imprisonment for a term not Clccoding two years or lo both. (b) Transportation 37, No vehicle, vessels or facility sball lransport petroleum or Vehicle'• petroleum products unless such vehicle, vessels or facility complies with the specifications made by the Minister. •=· 22 No. 4 Petroleum 2008 38.--{1) Any petroleum or petroleum produ,,:t intended for export or designated for specific project shall be directed or used K!r such pur" po=. (2) For the purposes of subsel.:tioo ( I) the tenn - (a) ••expon•• means the taking of petroleum or petroleum products outside boundaries or the United Republic and includes lhe taking of such petroleum or petroleum product from one point to BIIOther withiu the United Republic; and {b) "'designated specific project"' means projects wxlmakell with- in the United Republic in respect of which there is agreement for exemption or remission of taxes or toll. Penalty

39. Any person who conlravenes sectious 39 and 40 comIPits an offence aud sh.all be liable ou conviction to a fiue of not less than two million shillings for every day during which the coutravention OCi:111', or continues and the court may order forkiture of the petroleum or petroleum premises, vessel or vehicle used in the contravention of the offence to the Government or otherwise dealt with in such other man- ner as the court may deem proper. -- Ships to take Uti01l!I 40.--{ I) Any ship carrying petroleum or petroleum product within a port shall observe such precautions as may be required. (2) Any owner or master of the ship who contravenes subsection ( 1) commits an offence and shall on conviction be liable to a fine not exceeding five million shillings or imprisomnent for a term not exc«ding two years. (c) Tronsfonnotion ,, __ Refining No petroleum 41. be dismlmted unless it shall been trans-has formed in with accordancespecification the the Minister. made by """ B!endng 42.--{1) may, by regulations, The Minister specification of make ,, ofbio!i,- petroleum products for the blending ofbiofuel and synlhetic fuels and lubricants. No. 4 Petroleum 2008 23 (2) Any person who contravenes lhe specifications referred to under subsection (I) commits an offence, and shall be liable on con- viction to a fine of not less than ten million shillings or twenty ~ of the value of lhe total consignment, whichever amount is greater or imprisonment for a tenn not less than five years or to both. 43.-{l) (d) Storage Every person storing petroleum or petroleum products ,_,-. -- ofpelro· shall ensure that the petroleum or petroleum products, as the case may be is stored in accordance with lhe licence issued by the Authority. peirole- {2) Any unused capacity may be open to other lisencees in lhe •• manner stipulated under this Act. (3) Any person who contravenes the specifications referred to uoder subsection ( 1), commits an offence and shall be liable on con- viction to a fine of not exceeding five million shillings for every day during wltich the contra>tention OCl:lll'S or continues and the court may order forfeiture of the petroleum, premises, vessels or vehicle used to the Government or otherwise deal wilh in such other manner as it thinks proper. (e) Dislrlbution 44.---( I) A person may distribute petroleum or petroleum products only if such petroleum or petroleum products conforms with the qual- ity, safety and environmental specification set by the Minister. (2) Subject to subsection (I), any person who- with (a) tempers with the quality of petroleum or petroleum products; quali~. (b) conduclS petroleum or petroleum products business with()llt safety equipment; or "'"' andemri- - (c) sells petroleum or petroleum products in unauthorized prem- ro-nmen- tal~- ises; commits an offence and shall be liable on conviction to a fine of not e!lceeding ten million shillings or to imprisonment for a term of five years or to both. -•- ing of 24 No. 4 Petroleum 2008

45. Notwithstanding any provision of this part, the Minister may, in consultRtion with the Authority make regulations prescribing the method whereby petroleum or petroleum products unfit for use can be rec:overed. PARTX OFFENCES AND PENALTIES Offence, 46. Any person who- {a) refuses, delays or fails 10 produce any documents or other information relating to petroleum Sllpflly operations and installations which he may be required to produce under this Act; (b) knowingly furnishes documents or od!er information which are false or misleading in any material aspect. whether upon demand or otherwise; (c) publishes or otherwise discloses any information in contra- vention of any provision of this Act; (d) resists, hinders or obslrucls an inspector or other officer of the Authority or any other person who aclS on behalf of the Authority, to enter or inspect any premises or 10 stop and = h any vehicle or to examine any books, accounts or other records or lo otherwise comply with his duties and rights under this Act; (d) refuses, delays or fails to comply with any order, prohibition, direc:tion, demand, requirement or notice lawfully made, served, published or otherwise given under this Act, commits an offence. 47.--(1) Any pe,son who commits an offence for which uo specific penalty is prescribed shall on conviction be liable to a fine not exceed- ing five million shillings or to imprisonment for a term not exceeding two years or to both. (2) Upon a second or subsequent conviction of any offence under this Act that person shall be liable to a fine of not less than seven mil- lion shillings or to imprisonment for a tenn of not less lhan three years or 1o both. No. 4 Petroleum 2008 25 48.-{J) Where a person chmged with an offence under this Act is a Joint lia- body corporate, every person who, at the time of commission of the bilizy offence was a director, manager or as the case may he an officer of such body corporate, may he charged jointly in the same proceedings with the body corporate. (2) Any partner in any firm shall he answerable and jointly and severally .liable for the acts or omissions of any other partner in the same finn in so far as they concern the firm. (3) Any employer who emplo~ in or for his operation or place of business an agent, cleik, servant or other person, shall he answerable and liable for any acts or omissions of such employees in so far as they concern the business of the employer.

49. Any consumer of petroleum products or any recognised con- loihation sumer organisation may initiate action against any licensee for offences under this A_!:t, if that consumer bad previously filed a com- "., aerie .. ,~~ plaint with the Authority and is aggrieved by the decision of the mm Authority in response to such complainL ,._ ,_ 50.-{1) Where any person has committed any offence under this ur.ditll! Part other than an offence under this Act the Authority may, subject to such directions as the Minister may give on that behalf, at any time ,,_ "'., prior to the commencement of the hearing by any court of any charge in relation to the offence committed, compound such offence aud order such person to pay such sum of money, not exceeding one half of the amount of the fine to which such person would have been liable if he had been convicted of such offence. (2) The Authority shall not e...ercise powers under this section unless the person concerned admits in writing that he has committed the offence for which he is charged. (3) Where the Authority compounds an offence under this section, then the order referred to in subsection (I) of this section shall- (a) he reduced in writing and there shall be attached to it the writ- ten admission and request referred to in subsection (2) and copy of such order shall he given, if he so l'IX[Uests, to the per- son who committed the offence; 26 No. 4 Petroleum , ... (b) specify the offence committed. Ille sum of money ordered to be paid, and the date or dates on which payment is lo be made; (c) be final and shall not, subject lo the provisions of subsection (3), be subject lo any appeal; (d) not be invalid by reason only of non-compliance with any direction given by the Minister; and (e) be enforced in the same manner as a decree ofa court for the payment of the amount stated in the order. (3) Where any person is aggrieved by any order made nnder sub- section (I), he may, within thirty days of such order being made, appeal against such order to the High Court, and the provisions of the Criminal Procedure Act shall apply in !he same manner to every such appeal as if it Whe an appeal against a sentence passed by a district court in the exercise of its original criminal jurisdiction. {4) Where the Authority compounds any offence under this sec- . lion, the person concerned shall not be liable to any prosecntion in respect of such offence and, if any such prosecution is brought in the eow1, it shall be a good defence for such p,mon to prove that such offence has been compounded under this section. PART XI DISPUfES SETTLEMENT Settle• 51.--{l) A dispute arising between licensees in petroleum supply ment of industry or between licensees and the Authority or any other dispute, Government authority relating to application of this Act may be brought before the Fair Competition Commission for mediation. (2) A dispute arising between the licensees in petroleum supply industry and the Authority regarding application of this Act may be brought before the Fair Competition ToDunal for deletminatlon. Petroleum 2008 27 52.---(1) Any person who is aggrieved by the decision of the Authority, may appeal to the Fair Competition Tribunal in BC<:ordance Fair with the provisions of Part XIII of the fair Competition AcL Competi• tion (2) Notwithstanding the right of appeal conferred by subsection Tribunal {I), any person aggrieved by an act of the Authority shall not have the obligation to refer the dispute to the Fair Competition Commission for mediation as a condition for being heanl by the Fair Competition Tribunal. PART XII M!SCELLANOUS PROVISIONS 53.---( 1) The Minister may make regulations generally for the better Reg1!1.- carryiog out of the provisions and purposes of this Act. lions (2) Regulations uniter this section shall be published in the Gai:e11e.

54. The Minister may, in consultation with the Minister responsible for food and the Minister responsible for land, make regulations pre- scribing the use of food crops and the use of land for production ofbio- fuel. 55.--1 I) The Petroleum {Conservation) Act is hereby repealed. '-' Cap. )92 (2) Notwithstanding the repeal of the Petroleum (Conservation) Act, all subsidiary legislation, rules or exemptions made or given or deemed to have been given or made under that Act shall be deemed to have been made or given under this Act, and shall remain in force until revoked by subsidiary legislation made under this Act or until other- wise expire or cease to have effect. - 56.---( I) Where any lawful act or thing required or permitted to be Tnm:ii- tional done by or under this Act was done before the effective date of this Act, it shall be deemed to have been done under or by virtue of this and sav- Act. •~ (2) The current participants in the supply chain shall, whether licensed or not under the Petroleum Rules, or any other applicable leg- islation, and within a year adjust their operations and facilities in order to comply with the provisions of this Act. 28 No, 4 Petroleum 2008 (3) Subject to subsectioo (2) after the el(!)iratio11 of the period, each participant in the supply chain shall apply for the licence and permit in accordance with this Act. Acti11g Cieri: of the Natuma/ Assembly