Petroleum (Waste Oils Recycling Operations) Rules, 2017

49. Authority to supplement procedures as needed. SCHEDULES 3 Petroleum (Waste Oils Recycling Operations) GN. No. 1Z0 (contd... ) GOVERNMENT NOTICE NO. 220 published on 26/5/2017 THE PETROLEUM ACT, (CAP. 392) RULES (Made under section 259(1)) THE PETROLEUM (WASTE OILS RECYCLING OPERATIONS) RULES, 2017 PART! PRELIMINARY PROVISIONS Citation I. These rules may be cited as the Petroleum (Waste Oils Recycling Operations) Rules, 2017. Application 2. These rules shall apply to the regulation of the activities related to petroleum waste oils recycling operations and related matters in Mainland Tanzania. Interpretation 3. In these rules, unless the context otherwise requires: Cap. 392 "Act" means the Petroleum Act; "annual fee" means the fee payable annually by a licensee as may be prescribed by the Authority from time to time; "applicable law'' means any principal law, treaty, convention, proclamation, regulation, rule, order or by-law that is customarily treated in Tanzania as having legally binding force and which is relevant to matters pertaining to the regulation of petroleum refinery operations; "approved specification" means any specification or standard in relation to waste oils or a petroleum product that is applied Cap. 130 by the Authority and as approved by the Tanzania Bureau of Standards pursuant to the Standards Act, or any other 4 Petroleum (Waste Oils Recycling Operations) GN. No. 220 {conld...) standards that are widely used for good petroleum industry practices; " Author it y" means the Energy and Water Utilities Regulatory Authority established under the provisions of the Energy Cap. 414 and Water Utilities Regulatory Authority Act, hereinafter the "EWURA Act"; " bulk quant ity" means a single lot of not less than two hundred litres of a petroleum product; "C ommissi on" means the Fair Competition Commission established Cap.285 under the Fair Competition Act; " Coun cil" means the National Environment Management Council Cap. 191 establi shed under the Environment Management Act; "Compli ance Order" mean an order issued by the Authority Cap.4 14 pursuant to section 39 of the EWURA Act; 'dange rous situ ation" means a situation involving a waste oil or a petroleum product that: (a) endangers the safety or health of a person, or the safety of a person' s property; or (b) create an immediate risk of significant environmental harm; " Decommissi oni ng Fund ' means the Fund to be established by the Authority pursuant to section 197 of the Act to which all licensees shall be deposit amounts of the mone y to be determined by the Authority and be used in meeting the costs of decommissioning their respective facilitie s; "facility" means a waste oils recycling plant, waste oils or petroleum product storage facili ty, accessories, equipment and buildings used to conduct a licensed activity that meet the internationally accepted standards ; "feedstock" means waste oils or any other product that can be u ed as raw material in a waste oils recycling process; " in cident" means: (a) an event that involves a leakage of feedstock or a petroleum product from a storage fa c ility ; (b ) a spill of feedstock or a petroleum product as a result of dispensing or offloading activi ties; 5 Petroleum (Waste Oils Recycling Operations) GN. No. 220 (contd...) (c) death or personal injury occurring as a re ult of an action that is related to a regulated activi ty; (d) a fire or an event incidental thereto that results from an action that is related to a regulated activity; (e) an event that result in an emergency shutdo wn of a facili ty; and (f) any other ignificant event that may adver ely affect the conduct of a regulated activity; " ins pector" means an officer of the Authority or an agent of the Authority appointed by the Authority to perform in spection as required under the Act and applicable law· ' licence " mean an authorization issued by the Authority to undertake a regulated activity; " lice n ee " means the holder of a li cenc e; " licence fee " means the fee payable by a licensee at a rate to be prescribed by the Authority from time to time ; " notificat io n of offence" means the notification prescribed in the First Schedule to these Ru le s; "NPGIS" means the National Petroleum and Ga Information ystem established under section 124 of the Act" ' petroleum product" means an organic compound , pure or ble nded , which is derived from the refining or proces ing of petroleum crude oils , bio-fue ls , or synthetic fu ls and includes: (a) asphalts, bitumen petroleum coke and other re idual product ; (b) bunker s or heavy residual fuel oils for combustion engines or industrial heat processes , such a burners for boilers or heating furnaces ; (c) gasoil or automotive diesel , biodie sel, industrial marine diesels or synthetic diese l; (d) gasoline , bionaptha or a bioethenol product; (e) kerosene or other imilar oil for illumination or combu tion app lica tions ; (t) turbo fuels for jet propulsion eng i ne s; and (g) other product or by-products of petroleum crude 6 Petroleum (Waste Oils Recycling Operations) GN. No. 220 (contd ... ) "Tri bunal" means the Fair Competition Tribunal established under Cap. 285 the Fair Competition Act· " who lesaler" means any person who engages in the imp ortat ion, taring or selling of a petroleum product in bulk for the purpose of wholesale business ; and 'wholes ale bus iness" means the im portation , storing or selling of a petroleum product in bulk and includes transit trade in petroleum products. PART II APPLICATIO FOR A CO STRUCTION APPROVAL Appl ication 4.-(1) A person shall not construct a facility without the for approval of the Authority. construction approval (2) A person who intends to construct a facility shall lodge an application with the Authority by filling in the application which shall contain the information: (a) the applicant ' s name, busine s address , e-mail address , telephone and fax numb er; (b) the location and full add res of the proposed facili ty; (c) proof of land ownership and right of use; (d) the project feasibility study report which inclu des , among other thin gs, demonstration of technical and financial capability to imp lement, operate and maintain the project; (e) a certified copy of building permit; (f) a certified copy of a memorandum of understanding or any project implementation agreement between the applicant and the Government or any third part, if any; (g) an environmental impact assessment certificate is s ued by relevant auth ority; (h) a list of process technologies and relevant li cens ors; (i) the proposed feedstock supply and product evaluation scheme U) the proposed feedstock supply and product evaluation scheme (k) a list of personnel and proof of training and 8 Petroleum (Waste Oils Recycling Operations) GN. o. 220 (contd...) qua li ficat ion; (I) detailed engineering drawing duly signed by a registered engineer which shall specify: (i) proces flow diagrams of the proce sing un its; (ii) the number of tank for storing feedstock and petroleum products ; (iii) the location, layout and de ign of the laboratory; (iv) the location and distances between building structures and facilities and equipment; (v) entry and ex it; and (vi) the perimeter wall and property boundar ies ; (m) the manner and place in which feedstock shall be delivered to the faci lity; (n) report from the Fire and Rescue Department evidencing that the arrangements proposed for the prevention and firefighting coupled with good housekeeping at the site are satis factory; (o) environmental protection mea ures to be employed to prevent harmful environmental impacts resulting from a regulated activity; and (p) any other information a may be required by the Author ity. Construction 5. An application for construction approval in rule 4(2) shall approval be accompanied by a non-refundable application fee as may be application fee pre cribed by the Authority from time to time. Grant ofa 6.-(1) The Authority shall, upon receipt of the application construction described in sub-rule (2), evaluate the application and decide approval whether or not to grant approval. (2) The Authority shall, while making a decision on the application in subrule, consider the followi ng : (a) compliance of the application with the requirements of the ational Energy Po lic y, the Act and any other applicable laws· 9 Petroleum (Waste Oils Recycling Operations) GN. o. 220 (contd...) (b) compliance with the provi ion of rule 4 (2)· (c) compliance with land use laws; (d) compliance with health, safety, quality and environmental requirement ; (e) whether the technology to be used in the construction of the facility allows for flexibility in upgrading the said facility in order to comply with any future technology; and (f) whether the project is necessary for the su tainable development of the energy ector and that the same is going to offer some economic benefits to the applicant and the economy in general. (3) The Authority ha ll , before issuing construction approval under this ru le , cause it to be publi hed in the Gazette as required by the provi ion of the Act. (4) The Authority shall, upon granting the application for approval, notify the applicant accordingly. (5) The Authority shall, in the event that it denie an application for a construction approval, inform the applicant of such decision in writin g, including the rea on thereof. Validity and 7. The construction approval issued by the Authority hall duration of a construction remain in force for such period as the Authority may allow: approval Provided that where the holder of the said approval fails to commence construction within twelve months from the date it wa issued, such construction approval shall cease to have effect. Notice of 8. A person issued with construction approval shall notify the comme- ncement Authority within thirty days prior to the commencement of the construction. Suspension 9.-(1) Where any term or condition of a construction approval and revocation of has not been complied with the Authority may , by Notice in the a Gazette, withdraw, suspend or revoke a construction approval. construction approval Petroleum (Waste Oils Recycling Operations) GN. No. 220 (contd...) (2) Where the Authority intends to withdraw, sus pend , revoke or amend a construction approval it sha ll, at least twenty-one days before the date of the intended with drawa l, revocation, suspen ion or amendment notify the holder of its i nte ntion , together with reasons thereof. (3) The Authority may , by notice in the Gazette, reinstate a construction approval revoked or suspended under sub-rule (1) where it is satisfied that the reasons for the revocation or suspe ns ion no longer exist. Appeal I 0. A person who is aggrieved by the decision of the Authority under this Part, may n appeal to the Tribunal pursuant to Cap. 285 the provisions of the Fair Competition Act. PARTHI LICE SING PROCED URES Obli gation to 11.-( I) A person shall not conduct a regulated activity without p oss ess 8 a lice nce. licence (2) Any existing operator conducting a regulated act1v1ty without a licence shall, not later than three months after coming into force of these Rules, apply to the Authority for a licence. (3) A person who contravenes this rule commits an offence and be liable on convictio n: (a) to a fine of five million shillings or to imprisonment for a term not exceeding two years or to both; and (b) where a person has been served with a compliance order for the contravention , to a closure of his premise s or facility. Licensin g 12 .-(1) A person shall not be issued with a licence unles he :- requirements (a) possesses a facili ty; (b) possesse adequate skilled personne l· and (c) demonstrate of financial capability to operate and maintain the facili ty . 11 Petroleum (Waste Oils Recycling Operations) GN. No. 220 (contd ... ) (2) The Authority may issue a licence with specific conditions to be fulfilled within a prescribed time to an applicant who fails to meet some of the requirements in sub-rnle (1). Licence 13.-(1) A person who intends to apply for a licence from application the Authority shall fill in the appropriate form to be pre cribed by the Authority, and lodg the application with the uthority. (2) The application prescribed under sub rule (1) shall be accompanied with- (a) certified copies of its registration documents ; (b) a feed tock supply agreement , if any; (c) a petroleum products sale agr ement, if any; (d) a business plan describing the scope of a regulated activity; (e) a tax identification number cert ificate; (f) a list of facilities and proof of availability of uch facilities to support the proposed business; and (g) non-refundable application fee as may be presc ri bed by the Authority from time to time. Publication 14.-(1) The Authority shall evaluate the application in rule 13 ofa licence to verify its completenes and the legality of the information application contained therein and thereafter issue a public notice in at least two newspapers one in English and one in Kiswahili languages, of wide circulation in Tanzania with a view to soliciting comment and representations on the application. (2) The co ts of publication of the notice in sub-rule (1) shall be borne by the Author ity. (3) Pursuant to sub-rule (I) the public shall be invited to submit comments and repre entations within twenty one days from the date of publication of the notice and the comments and representations shall be considered by the Authority in arriving at the decision on the application. Grant ofa 1 5.-( 1) The Authority may , upon consideration of an licence application for a licence :- 12 Petroleum (Waste Oils Recycling Operations) GN. No. 220 (contd...) (a) deny the application; (b) grant the application and issue a licence; or (c) refer the application back to the applicant. (2) The Authority shall, in arriving at a decision on for an application for a take into consideration:- (a) the requirements prescribed under rule 12; (b) compliance with the laws on land ownership and use; (c) any objection or representation received from the public pursuant to rule 16; (d) the applicant's record of compliance with the Act, these rules and other applicable laws; (e) the economic efficiency and benefit of the project to the applicant and the public in general; (t) the flexibility of the facility with regard to later additions or modifications of capacity which may be desirable in view of changing requirements; (g) compliance of a facility on:- (i) safety requirements; (ii) health requirements; (iii) security requirements; (iv) handling of hazardous substances; and (v) environmental requirements; (h) any other matter relevant to the orderly conduct of refinery operations in Tanzania. (3) The Authority may deny issuing a licence where it detennines that:- (a) the applicant does not meet the requirements of sub- rule (2); (b) the applicant's activities may not be conducted in accordance with safety, health and environment requirements; or (c) the application has violated the mandatory requirements provided under the relevant law and the Act. (4) After issuance of a licence, the licensee shall be notified to come and collect it upon payment of a licence fee and an annual fee. 13 Petroleum (Waste Oils Recycling Operations) GN. No. 220 (co ntd ... ) (5) Where an application for a licence has been den ie d, the Authority shall inform the appli cant, in writing, of its decision and the rea on thereof. Validity and 16.-(1) A licence shall be valid for a period of fifteen years: duration of a Provided that the Authority may , on the written application licen ce of a licensee extend the period for such further period as the Authority may determ in e. (2) The Authority shall revoke a licence of any licen ee who fails to conduct a regulated activity for the period of twelve months during the licence period. (3) A licensee whose licence has been revoked pursuant to ub- rule (2) shall not be eligible for issuance of a licence for the period of twelve con ecutive months from the date of revocation of the licence. Application 17.-(1) A licence shall not be assigned or transferred to for transfer another person without a written approval of the Autho rity. of a licence (2) Any person intending to transfer or assign a licence shall fill in the appropriate form to be prescribed by the Autho rity, and lodge it with the Author ity, together with other documents or records as may be required by the Author it y. (3) Notwithstanding sub-rule ( I) , an application for a transfer or assignment shall not be considered by the Authority un less :- (a) a transferee or assignee possesses the qualifications for issuance of the licence; and (b) the said application is endorsed by the transferor or assignor. (4) The Authority shall:- evaluate the application received in sub-rule (2) to verify completeness and the legality of the information contained there in ; and issue a public notice in at least two newspapers, one in English and one in Kiswahili languages of wide circulation in Tanzania with a view to soliciting comments and representations on the application . 14 Petroleum (Waste Oils Recycling Operations) GN. No. 220 (contd...} (5) The costs for publication of the notice in sub-rule (4) hall be borne by the Authority. (6) Pur uant to ub-ru le (4), the public shall be invited to submit comments and representations within fourteen days from the date of publication of the notice and the comments and representations shall be considered by the Authority in arriving at the decision on the application. (7) The Authority hall after the expiration of the notice in sub-rule (4) of this rule, evaluate the application together with comments received, if any, and make a decision whether to approve or disapprove transfer or a signment of the licence as the ca e may be. Change of 18.-( I) A licensee may change its name pursuant to the name provisions of these Rules and applicable law . (2) A licensee who has changed its name shall within thirty days after such change s nd a written notice to the Authority together with the certificate of change of name issued by the re levant a uthor itie s. Change of 19.-(1) A licensee who intends to change its shareholding shareholding structure shall before applying for the change to the Registrar of structure Companies apply for the approval to the Authority in writing. (2) A licensee shall , upon obtaining the approval for change of sharehold ing structure from the Registrar of Companies notify the Authority of the change. (3) The Authority may, before granting approval for any change in the shareholding structure, consult the Fair Competition Commission and the Tanzania Revenue Authority. Application 20.-(1) A licensee shall apply to the Authority for a renewal of for renewal a licence six months before the expiry of the licence. of a licence (2) An application for a renewal of a licence shall be in the form to be prescribed by the Author ity. (3) The Authority shall, while making a decision whether to grant an application for renewal of a licence or not, consider the 15 Petroleum (Waste Oils Recycling Operations) GN. No. 220 (contd...) applicant's compliance to the conditions of the licence which is due to expire. (4) Where the Authority denies an application for renewal of a lic ence, it shall inform the applicant, in writing, of it decision and the reasons thereof. (5) otwithstanding the provisions of sub-rule (3) the Authority shall not renew the licence of a licensee who has, ignored, resisted or failed to comply with any Order given by the Authority to the said lice nsee . Suspension 21.-(1) The Authority may:- or revocation (a) suspend a licence for a period of twelve months in ofa licence case of a serious violation of the provisions of these ru le s, lice nce conditions, the Act or relevant law; or (b) revoke a licenc e if a licensee fails to remedy or desist from committing an act or omission constituting a serious violation within the prescribed time. (2) otwithstanding the provisions of rule 16(3) and rule 21(1) the Authority shall not suspend or revoke a licence , unless a twenty-one days notice of its intention to suspend or revoke the said licence a licensee. Appeal 22. A person who is aggrieved by the decision of the Authority made under thi Part may lodge an appeal to the Tribunal Cap. 285 pursuant to the provisions of the Fair Competition Act. PART IV GENERAL OBLIGATIO SOFA LICE SEE General 23. A licensee shall at all times: Obligations (a) comply with:- of a licensee (i) the applicable law; (ii) these rules ; (iii) orders and directions of the Author ity; (iv) applicable codes and standards on afety, hazardous substances, security, health and environment; and 16 Petroleum (Waste Oils Recycling Operations) GN. No, 220 (contd...) (v) good petroleum industry practices; (b) save for export trade, sell a petroleum product only to a trader , a wholes ale r, a con umer installation licensee or a Government institution; (c) ensure that it inspects and cleans its storage facilities at least once after every three years in accordance with good petroleum industry practise ; (d) establish and maintain records pursuant to the applicable law, orders and directions of the Author ity; (e) as soon as practic able , but not later than twenty-four hours after the fact, notify the Authority of the occurrence of a dangerous situation or incident within the facility and the notification shall comprise of the steps taken or proposed to be taken by a licensee to remedy such dangerous situation or incident or to eliminate or minimize any danger arising therefrom; (f) provide the Authority with full access to its records, documents sites and assets; (g) ensure the safe disposal of any feed tock or petroleum product; (h) not keep fireworks or any other instruments or products in or near a facility that might pose a risk of fire or otherw ise ; (i) ensure that its feedstock or petroleum products comply with the approved specifications; U) decommission a facility in accordance with these rules; (k) ensure that a supervisor is present at a facility at all times, and in hi absence any person employed or acting as an agent of an operator to perform the duties of a supe rvisor; (I) notify the Authority not less than sixty days prior to commencing major replacement of a facility or a part there of; (m) ensure that a facility and related equipment are calibrated for correct measurements and are in good 17 Petroleum (Waste Oils Recycling Operations) GN. No. 220 (conrd.. .) working condition in accordance with approved specifications and good petroleum industry practices; (n) pursuant to the written directions of the Authority, monitor, record and reconcile all feedstock, in and petroleum products dispensed from a facility and retain such records for not less than twelve months; (o) promptly notify the Authority of any apparent loss or gain of feedstock or a petroleum product that is outside the normal operating patterns; (p) maintain and make available to the Authority, on demand, documentary evidence demonstrating that all electrical equipment and installations in a licensed facility relevant to the receipt, handling, storage and dispensing of a petroleum product and to areas where inflammable gases or vapours capable of producing explosive or ignitable mixtures may occur, comply with approved specification and installation procedures in accordance with existing codes or applicable law; (q) not abandon a facility other than in accordance with the licence conditions, these rules, the Act, relevant laws or directions of the Authority; (r) display in a conspicuous place at a facility the licence or a certified copy thereof; (s) print the licence number on all accounting documents employed in its regulated activity, including invoices, delivery notes and receipts; (t) not engage in any activities that may disrupt or interfere with competition; and (u) as soon as practicable, but not later than ninety days after it becomes aware of the fact, notify the Authority if it is unable to conduct the regulated activity or if the conduct of the regulated activity may lead to a breach of any of these rules or materially affect its operations. 18 Petroleum (Waste Oils Recycling Operations) GN. No. 220 (contd...) Protection of 24.-(1) A licensee shall, while transporting, storin g, keepin g, li ves and handling , convey ing, using or disposing of any feedstock or propert y petroleum product, take such precautions and exercise such care a may be reasonable under the circumstances in order to:- (a) not a danger to the safety or health of any person, or the per on' s property; and (b) prevent risk of ignificant environmental harm . (2) A licensee shall dispose of a feedstock or petroleum product in the manner and at a place intended for the safekeeping and dumping of such products pursuant to applicable law and good petroleum industry practices. (3) A licen ee shall establish a unit to address and be responsible for all health , safety and environmental matters and obligations related to a regulated activity. Compensa- 25.-(1) A lic ensee shall compensate any person for any loss tion for loss suffered to life or property as a result of a regulated activity. suffered (2) A person who has suffered loss to life or property in ub- rule (1) shall first lodge a complaint with a licensee whose regulated activity has cau ed the loss with a view to reaching an amicable settlement. (3) Where no ettlement is reached under sub-rule (2), the person who has suffered loss may refer the matter to the Authority for determination. (4) For the purpose of this ru le , a person i ncludes an administrator, executor or executrix of the estate of a deceased person . Insurance 26. A licensee shall procure and maintain procures adequate insurance cover in respect of all liabilities that may arise from the conduct of its regulated activity, for the environment , personne l, customers and visitors of a facility. Maintenance 27.-(1) A licensee shall:- of records (a) at all times keep complete and accurate records and and data rela ted to its regulated activity; di closur e of information 19 Petroleum (Waste Oils Recycling Operations) GN. No. 220 (comd... ) (b) in accordance with the Author ity' requirements and pur uant to its directions , promptly provide to the Authority documents , records or information related to its regulated activity; and (c) provide to the Authority, an annual repo rt, a report on compliance to the ri ks management plan as required under rule 34. (2) Any person who refuses to furnish information or statement as required under sub-rule (I) (b) of this rule or furnishes false information or statement to the Authority shall be liable on conviction:- (a) to a fine of five million sh illi ngs; and (b) to a fine of ten million shillings and a uspension of his licence where he commits the offence for the second time . lnfonnation 28.-( I) A li censee shall lodge to the NPGI the following to NPGIS information:- (a) feedstock importation by type, qua li ty, quantity and source for every shipment; (b) feedstock and petroleum product stock levels on weekly bas is ; and (c) feedstock and petroleum products exportation by type, qua lity, quantity and de tin ation, on monthly basis . (2) A licensee shall submit, the information referred to under sub-rule (I) on li ne. (3) A licensee who fails or refuses to provide information to the NPGIS in terms of sub-rule (2) commits an offence and shall, on convic tion , be li able : (a) to a fine of five million shillings or imprisonment for a term not exceeding three year or to both; (b) to have its licence su pended for a period of six months where it commits the offence for the econd ti me; and (c) to have it licence revoked where it re pea ts the offence for the third time . 20 Petroleum (Waste Oils Recycling Operations) GN. No. 220 (contd...) Confidential 29.-(1 ) Any information received from a licensee pursuant information to these Rules shall be presumed not to be confidential information unless the Authority determines otherwise. (2) A licensee shall not withhold information from the Authority on the ground that it is confidential. (3) A licensee may request the Authority not to circulate specific data or information in the Author ity' s possess ion, Provided that only the Authority shall determine whether or not such information is confidential. (4) The Authority sha ll , where it makes a determination that certain information is confidential limit or prohibit the publication of the same. Customer 30. Subject to approval by the Authority and as specified in service the guidelines issued by the Authority a licensee shall :- standards (a) establi h: (i) a customer service charter; (ii) service quality standards ; (iii) performance standards; (iv) procedures for handling customers complain ts; (v) an office to receive and respond to questions, concerns and complaints related to its waste oil recycling business; and (b) maintain trained staff to address customer issues in a timely and transparent manner. PARTY ENVIRONMENT AL PROTECTION Compliance 31 .-(l ) A licensee shall comply with the requirements of all with applicable environmental laws and standards related to a fac ility. environme- ntal laws and standards (2) Subject to applicable law a licensee shall:- (a) carry out an environmental impact assessment before making any major improvement to an existing facility; 21 Petroleum (Waste Oils Recycling Operations) GN. No. 220 (contd...) (b) take all necessary preventive measures to avoid po llut ion resulting from operating its faci lity; (c) observe strict envi ronmenta l, health , and indu strial safety standards as required by applicable law; and (d) perform environmental audits related to regulated act ivity. (3) For the purpose of sub- ru le ( 2 ) (a) the term " major im provement " means an improvement that aims at expand ing the size of a fac ili ty. Sanc tion s for 32. Where the Authority determines that a licensee has viol ation of violated these rules or any applicable law on matters related to env ironm e- ntal laws protection of the environment it shall take appropriate actions pu rsuan t to provisions of the Environment Management Act and Ca p. 191 other applicable laws . PART VI TECHNICAL PROVISIONS Compl iance 33.-( l ) A licensee shall comply with the approved with specification pertaining to the facility, transportatio n, hand lin g, specificatio ns and standard storage and composition of feedstock or a petroleum product which is consistent with these rules and applicable law. (2) A licensee shall not deviate from any approved specification without prior approval of the Author ity. (3) The Authority shall not grant such the approval in sub-rule (2) unless it is satisfied that such deviation is for public interest and does not negatively affect public safety and the environment. (4) A licensee shall not use any conta i ner :- (a) to tore or conve y feedstock or a petroleum product unless such container is leak and pill proof and otherwise suitable and safe for storage and conveyance of the feedstock or the petroleum product. (b) for storing a feed tock or a petroleum product, which poses or is likely to pose a risk of significant- (i) environmental harm; or 22 Petroleum (Waste Oils Recycling Operations) GN. No. 220 (contd...) (ii) harm with regard to the safety or health of any per on or flora and fauna. Risks 34.-(l) A licensee shall , at all tim es, prepare , maintain and Management implement a risk management plan. Plan (2) Any licensee who contravenes the provisions of sub- rule (1) commits an offence and shall, on conviction, be liable to a fine of twenty million shillings or imprisonment for a term not exceeding three years or both. Fire 35.-(1) A lice nsee sha ll:- preca ution (a) ensure that all bu il d i ngs, roads, structures and plants used in connection with a facility are des ig ned , const ructed , equipped and ma i ntained : (i) in such a way as to prevent fire and exp losions; (ii) so as to minimize the harmful effects of fires or explosions if they occur; (b) ensure that personnel involved in the handling and dispen ing of a petroleum product exercise caution in respect of anything that may cause fire or an explo ion and that such personnel follow applicable law on matters related to fire and explosions ; and (c) clearly indicate by a sign the place of the facility where feedstock or a petroleum product is handled or stored. (d) make reasonable efforts to ensure that no per on throws, leaves or creates any open or naked lig ht, spark or flame or any burning or smouldering material on a facility ; (e) ensure that no person receives or makes calls from a cellular telephone or uses any other electronic communication apparatus within a facility except in places specifically designated for such act ivity; 23 Petroleum (Waste Oils Recycling Operations) GN. No. 220 (contd... ) (f) take adequate precaution to prevent the outbreak of fire when storing, keeping, handling, conveying, using or disposing of a petroleum product or a feedstock as appropriate; (g) provide adequate fire extinguishing equipment and maintain such equipment in good working condition in accordance with these Rules, the relevant laws and standards and pursuant to directions issued by the Authority; (h) position the equipment described in sub-rule (5) in accessible places at a facility; and (i) not less than once a year, test the equipment described in sub-rule (5); U) establish a fire emergency plan to be employed in the event of a fire at a facility which shall: (i) include a suitable and adequate fire-fighting plan that comprises: (aa) the locations and types of all fire- fighting equipment; and (ab) an action plan that identifies, inter alia, assembly points and the tasks of all employees; (ii) include provisions for the training of employees to deal with a fire emergency situation, the records of which shall be preserved; (iii) be provided to employees employed in or on the relevant premises; and (iv) be made available to the Authority on request. Control of 36.-( I) A licensee shall, where there is a spill of feedstock feedstock or or a petroleum product or any other waste product:- petroleum (a) as soon as practicable and in where not more than product spill twenty four hours after the occurrence of the spill, inform the Authority about such spill; and (b) take all necessary steps pursuant to good petroleum industry practices or otherwise as may be necessary to clean up such spill. 24 Petroleum (Waste Oils Recycling Operations) GN. No. 220 (contd...) (2) Where a licensee fails to comply with sub-rule (I) (b) within the period prescribed by the Author it y, the Authority may , by written notice , order the licensee to take appropriate steps as the Authority may require in order to clean up the spill at its own costs. (3) A licensee who fails to comply with an order of the Authority issued pursuant to sub-rule (2) commits an offence and shall, on conv ic tion, be liable to a fine of five million shillings or to imprisonment for a term not exceeding two years or to both. (4) Without prejudice to the provisions of sub-rules (1), (2) and (3) a person who is affected by any spill of feedstock or a petroleum product and seeks redres s, shall first lodge a complaint with a licensee caused such spill with a view to reaching an amicable settlement. (5) Where no settlement is reached under sub-rule (4), the person who is affected by the spill may lodge a complaint to the Authority determination of the matter accordingly. Decommissio 37.-(1) A licensee shall submit a decommissioning plan to ning Plan the Authority: (a) before a regulated activity ceases to continue; (b) a licence to operate a facility expires or is surrendered; or (c) before the use of a facility is permanently term in ated . (2) The decommissioning plan referred to under sub rule ( l) shall contain proposals for continued production or shut down of product io n, decommissioning of a facility and any other relevant information. (3) The decommissioning of a facility may constitute further use of the facility, other uses, complete or part removal and disposal or abandonment of the facility. (4) The Authority may, upon receipt of a decommissioning plan, require further information and evaluations, or a new or amended decommissioning plan. (5) The licensee shall update the decommissioning plan where: 25 Petroleum (Waste Oils Recycling Operations) GN. No. 220 (contd...) (a) in conjunction with any subsequent application for a permit, make additions or substantial changes to a facility; (a) the expected method or costs of carrying out the re- commissioning work have changed significantly as a result of new techniques for the work becoming available; (b) the previously assumed techniques are no longer permissible or considered adequate; or (c) the Authority so requests . (6) Unles otherwise directed by the Author ity, the decommissioning plan shall be submitted within the first four years, or at least two years before the permanent termination of the facility. (7) Notwithstanding the a forego ing, the Authority may issue an order for decommissioning of a facility where it is atisfied that: (a) the facility has been abandoned by a licensee for a period of not le s than twelve month s; or (b) the continued operation of such facility poses or is likely to pose a danger to li ves and property. (8) The costs of decommissioning and any other associated costs shall be borne by the Decommissioning Fund, Provided that, where the said costs are above the amount of money in the fund , the costs shall be met by a licensee to uch amount as the Authority may determ ine. Site 38.-(1) The Authority shall, after confirming that the area re toration where a facility has been con tructed has been restored to its origina l state by a licensee, issue a certificate of compliance. (2) For the purpose of sub-rule (1) "restore" means to- (a) return the area in which a facility is located to its original and natural state a it was prior to the installation of such facility; or (b) render the area in which a facility is located, or part thereof , compatible with its intended after-use, includin g: 26 Petroleum (Waste Oils Recycling Operations ) GN. No. 220 (contd ...) (i) removing buildings, structures, plant and debri ; (ii) establishing compatible contours and dra inage; (iii) replacing top soil, re-vegetation slope stabilization; and (iv) infilling excavations. (3) The Authority shall, before issuing a certificate of compliance under sub-rule (I), consult the Council. PART VII COMPLIANCE A D ENFORCEME T Inspection of 39.-(1) The Authority shall have the right to inspect any a facility facility prem ises , vehicle , equipment, document or vessel with a Cap.414 view to checking on its compliance with the provisions of the Act, the EWURA Act and these Ru les . (2) A licensee or any other person operating in that behalf shall render necessary assistance to an inspector as may be required in the course of such inspection. (3) During inspection an inspector may : (a) take samples of any feedstock or petroleum product stored in any facility, premises vessel or vehicle; (b) make copies or take extracts from any book, accounts or records kept on a facili ty, premises , vessel or veh icle; (c) inspect mach i ne ry, equipmen t, appliances, meters, fittings and apparatus· and (d) in pect any vehicle or vessel that is found at a facility or any premise . otification 40.-(1) At the conclusion of an inspection and where it is of offences found that there wa violation of the provision of the Act, EWURA Cap.4 14 Act and these Ru les , the licen ee or any such person responsible for uch violat ion, shall:- (a) where he disputes the offence , fill in Part A of the notification of the offence a set out in the First Schedule to these Ru les ; or 27 Petroleum (Waste Oils Recycling Operations ) GN. No. 220 (contd...) (b) where he admits the offence , fill in Pa11 B of the notification of the offence a set out in the First Schedule to these Rules; (2) Where a person:- (a) admitted to commit an offence under sub-rule (l )(a), he sha ll, within fourteen days from the date of such admission, be required to the fine prescribed in the Second Schedule to these Rule s; and (b) disputes to committing the offence under sub-rule (1)(b), he shall, within seven days from the date of such denia l, be required to answer charges in writing as specified in Part A in the notification of the Second Schedule to these Rules. (3) Upon the conclusion of an inspection and where the inspector i satisfied that: (a) the continued operation of a facility poses an imminent danger to life; (b) is likely to cause destruction of property, he may order the closure of the said facility regardless of whether the such operator has admitted to the offence or not. (4) Notwithstanding the provisions of sub-rule (3), an inspector who has decided to close the facility shall note down the reasons for the closure and list down all relevant evidence. Offence 41. A person who refuses to sign the notification of offence in rule 39 commits an offence and shall, on conviction be liable to a fine not less than three million shillings or imprisonment for a term not less than two years or to both. Issuance of 42. The Authority shall, while discharging its regulatory Compliance functions and where it is satisfied that there is a continued violation Orders of the provisions of the Act, the EWURA Act and the provisions of Cap . 414 these Ru les , issue a Compliance Order to the person responsible for such violation. Power to 43.-(1) Notwithstanding any prov1s1on in these rules , an enter and inspector with a compliance order shall have the right and 28 Petroleum (Waste Oils Recycling Operations ) G . No. 220 (contd...) clo ea obligation to enter upon any facility, building or premises and close faci lity, it down where he determines that a regulated activity conducted building or premises therein contravenes of these Rules . (2) While discharging his obligation under sub-rule (l) of this rule, an inspector may seek the assistance of applicable law enforcement institutions including the police , shall provide the requested assi tance to the inspector. Prohibited 44.-(1) A licen ee shall not:- acts against (a) hinder or obstruct the Authority in the exercise of any inspectors of the powers conferred upon it under these Rules· (b) use abusive , threatening or insulting language to an employee of the Authority; (c) refu e to comply with a requirement, direction or notice of the Authority; and (d) refuse to give any information or answer any question to the be t of his knowledge and belief , when required to do o by the Authority. (2) A person who contravenes ub-rule (1) commits an offence and shall be liable , on convic tion, to a fine of five million shillings or to imprisonment for a term not exceeding two year or both. PART VIII PENALHES AND REMEDIAL MEASURES Penalties and 45.-(1) Without prejudice to the penalties prescribed in remedial these Rule and any other relevant law, where the Authority measures determines that a licensee is in violation of these rules or applicable law , it shall:- (a) issue a warning; (b) issue a compliance order; (c) restrict the conduct of a regulated activity; (d) order a licensee to remedy any situation as a result of such violation; (e) uspend a licence for such period the Authority may determine ; or 29 Petroleum (Waste Oils Recycling Operations ) GN. No. 220 (contd ...) (t) revoke a Iicence. (2) Notwithstanding sub-rule (1) a licensee shall be liable to pay the fine for specific violations of licence conditions as prescribed under the Second Schedule of these Rules. Appeal 46. A person who is aggrieved by the decision of the Authority under rule 44, may lodge an appeal to the Tribunal within 21days from the date of receipt of the decision. PART IX GENERAL PROVISIONS General 47. A person who commits an offence for which no specific penal ty penalty is prescribed in these Rules , shall be lia ble , on conv ic tion , to a fine of five million shillings or to imprisonment for a term not exceeding two years or to both. Penal ty for a 48. A person who is convicted of a second or sub equent second or conviction of any offence under these Rules shall without prejudice subsequ ent conviction to the penalties pre cribed in rule 21, be liable to a fine of not less than seven million shillings or to imprisonment for a term of not less than three years or to both. Authori ty to 49. The Authority may , where these Rules do not provide for supplement certain procedures, do anything which is necessary and permitted procedures as needed by law as to enable it effectively adjudicate any matter before it. SCHEDULES 30 Petroleum (Waste Oils Recycling Operations ) G . No. 220 (contd ...) THE U !TED REPUBLIC OFTANZA IA THE PETROLEUM ACT, (CAP. 392) OTIFICATIO OF OFFE CE PETROLEUM (WASTE OILS RECYCLI G OPERATIONS) RULE S, 2016 (issued under Rule 42 o/G No .... o/20/6) To............................................................................... Address...................................................................... I. You are charged with the following offence (s): (a) (b) (c) (d) (e) (f)

2 — If you ADMIT commi sion of the offence (s) you should complete "PART B"

2. If you ADMIT commi sion of the offence (s) you should complete "PART B" below and send this notification , together with the statutory penalty for each offence to which you admit, to the Authority within fourteen days from the date of ervice of this noti fication . 3. lf you ADMIT to have committed the offence (s) you are required to complete "PART A' below and send this notification to the Director General of the Authority together with answers, in writi ng, to the charges mentioned above within seven days from the date of service of this noti fication.

4 — Penalty for each offence mentioned above shall be as provided for under the

4. Penalty for each offence mentioned above shall be as provided for under the Petroleum Act, Cap. 392 , the - WU RA Act, Cap. 414 or any other relevant laws on the conduct of the Petroleum Refinery Operations. PART " A"- OTIFJCATIO OF I TE TIO TO A SWER CHARGE 31 Petroleum (Waste Oils Recycling Operations ) GN. No. 220 (contd ...) I ........................................................... of ................................... residential or business address) being the (owner/director /manager / representative) of .................................... intend to respond to the Authority on the charge (s) Nos ...................................................set out in Paragraph I of this otification . Sign ature: ............................................... Date: ....................................................... PART " B"- ADMI SION OF OFFENCE I ............................................................... of .......................................... re idential or bu iness address) being the (owner/director /manager/ representative) of................................................................................... plead guilty to the charge ( ) Nos.................................................set out in Paragraph I of this Notification and I undertake to pay the requisite fine of TZS ................................. within a period of fourteen days from the date hereof. Signature : ............................................... Date: .................................................... FACILITY DETAILS IS U D BY Name of the Facility............................... Name : .................................. PREL o. ................................................ Designat ion: ................. ........ Location of the Facility. ........................... .. Date: ..... ............................... Signature of the person issued with the notification Signature of the In pector 32 Petroleum (Waste Oils Recycling Operations) GN. No. 220 (contd...)

SECOND SCHEDULE

SECOND SCHEDULE FINES FOR VIOLATIONS OF LICENCE CONDITIONS (Issued under Rule 47 (2) o[GN No ......o/2016) Amount SIN Panicular of Offence 3rd Offence 1st Offence 2nd Offence I. Failure to establish and implement Health Safety and Environment (HSE) policy which includes but not limited to: (i) Availability and use of proper Personal Protective Equipment (PPE) (ii) Employment of competent HSE personnel (iii) Develop, implement and TZS TZS 10,000,000 TZS document Health, Safety 5,000,000 15,000,000 and Environment (HSE) stafft.raining programs (iv) Develop elaborative procedure for incidents investigation, reporting and recording. 2. Failure to establish and implement Standard Operating Procedures (SOPs) which include but not limited to: Documentation, display and implementation of procedures and processes for all routine and non routine operations, in both TZS TZS Kiswahili and English TZS I 0,000,000 5,000,000 15,000,000 languages; (ii) Display of all relevant information in both Kiswahili and English languages; and (iii) a comprehensive equipment maintenance schedule. 33 Petroleum (Waste Oils Recycling Operations) ON. No. 220 (contd .) Amount Particular of Offence 3rd Offence 1•1 Offence SIN 200 Offence 3. Failure to establish and implement an Emergency Response Plan (ERP) which include but not limited to; emergency response procedures; (b) routine (at least monthly) emergency preparedness drills; (c) Communication with Fire and Rescue Providers (Fire Department, Ambulance, Police, Manager/Owner; etc). (d) Procedures of shutting down or isolating equipment to reduce the release of products, including assigning personnel responsible for TZS TZS I 0,000,000 TZS maintaining critical plant 5,000,000 15,000,000 functions or shut down of plant processes; (e) Alternative measure for the safety of occupants while any fire protection equipment is shut down; (t) Plan showing evacuation route and emergency assembly area; and (g) A list a qualified first aider and sufficiently equipped first aid kit. Note: The above requirements are to be documented, communicated and displayed in a conspicuous location. 4. Failure to ensure that all operational personnel undergo training on all relevant areas such TZS TZS as facility operations, equipment 5,000,000 TZS I 0,000,000 15,000,000 maintenance, safety procedures, fire fi_ghting, first aid etc. Proof of 34 Petroleum (Waste Oils Recycling Operations) GN. No. 220 (contd...) Amount s Particular of Offence I" Offence 2nd Offence 3rd Offence such trainings must be at all times available for i nspection . 5. Failure to ensure that Material Safety Data heet (MSDS) for all TZS TZS products handled at the facility are TZS 7,000,000 3,500,000 10 , 500,000 available at all time . 6. Failure to ensure that HSE audits are performed annually, properly documented and available for inspection . These include but not limited to : (i) Electrical installations audits; (ii) Performance of relief valves ; (iii) Pres ure tests for delivery TZS TZS hoses ; TZS 10,000,000 5 000 000 15 , 000 000 (iv) Performance of oil water sepa rator; (v) Medical check-up for facility staff; and (vi) Audit of firefighting equipment 7. Failure to ensure that at all times emergency contact numbers of Fire and Rescue Service Provider , ambulance, Police or Manager /Owner are recorded and TZS TZ clearly displayed near every TZS 7,000,000 3,500,000.00 10,500,000 te lephone control centers and by the gate. 8. Failure to display adequate safety warning sig ns (w ritten and ymbolic) throughout the facility TZS TZS which include but not limited to; TZS 7,000,000 10 , 500,000 3,500.000 (i) o ma king ; (i i) o mobil e phones; (iii) No lig hters ; 35 Petroleum (Waste Oils Recycling Operations) GN. No. 220 {comd...} Amount SIN Particular of Offence 1 51 Offence 2nd Offence 3ra Offence (iv) No fire arms; (v) o knifes/sharp objects; (vi) Speed limi t; and (vii) High risk zones. 9. Failure to conduct safety induction TZS TZS and registration ofvi itors deta ils . TZ 7,000,000 3,500,000.00 10 ,500,000 10. Failure to construct and maintain adequate concrete bund walls TZS TZS TZS I 0,000,000 around the tank farms. 5,000,000 1 5,000,000 11. Failure to pave and maintain the tank farm floor with concrete and provide of adequate drainage TZS system connected to an Oil/Water TZS 5,000 000 TZS I 0,0 00,000 Separator that is located outside 15 , 000,000 the bund wall. 12. Failure to conduct regular maintenance and checks of tanks earth resistance (si ng le = max 7 ohms, combined= max I ohms) TZS TZS 3,500 000.00 TZ 7,000 000 10,500,000 13 . F ailur e to ensu re that tanks are, at all times, properly labeled with necessary in formation /data TZS TZS including earth resistance , dates of TZS 7,000,000 3,500,000.00 10 ,500 , 000 installation maintenance and performed checks. 14. Failure to construct an oil water separator which properly designed TZ TZS and appropriately located outside TZS I 0 , 000 , 000 5,000,000 15 ,0 00,000 the bund wall. 1 5. Failure to ensure that an oil water separator outlet valve is kept closed all times and should only to TZS TZ TZS I 0,000 , 000 be operated by a desi g nated 5 000 ,000 15 ,000,000 person . Failure to display, conspicuous ly, 16 . an oil water separator operating TZ TZS TZS 7,000,000 instructions near the interceptor. 3,500,000.00 1 0,500,000 17 . Failure to monitor and maintain oil TZS TZS I 0,000,000 TZS 36 Pelroleum (Waste Oils Recycling Operations) GN. No. 220 (contd...) I Amount SIN Particular of Offence 1s t Offence 2nd Offence 3'0 Offence water separator integrity to ensure 5,000,000 15,000,000 that there are no oil traces in the final outlet chamber. 18. Failure to maintain a properly designed pump house in such a manner that it includes adequate spill containment and drainage TZS TZS I0000 000 TZS 5,000,000 15,000,000 system connected to an oil water separator. 19. Failure to en ure the availability of bonding points where requir ed. TZS TZ 7,000,000 TZ 3,500,000.00 10 500,000 20. Failure to ensure that adequate bonding clips are available at the TZS TZS 7,000,000 TZS relevant points. 3,500,000.00 10,500,000 21. Failure to install accessible emergency shut-off (stop) valve TZ TZ and switch at the relevant points. 5,000,000 TZS 10,000,000 15,000,000 22. Failure to pave the area around the plant and storage facilitie with concrete and construct well an TZS appropriate drainage system TZS TZS I 0,000 000 5,000,000 1 5,000,000 connected to an oil/water separator. 23. Failure to ensure that pipelines and valves are properly color coded for TZ TZS identification of product type. 5,000,000 TZS I 0,000,000 1 5,000,000 24. Failure to provide adequate and operational fire fighting system that includes but not limited to; (i) Fire water supply ; (ii) Mechanical tire pump; (iii) Manual tire alarm; (iv) Jokey pum p; TZS TZS (v) Foam system; 5,000,000 TZS I 0,000,000 15,000,000 (vi) Adequate sand bins and fire extinguishers of appropriate types and s izes ; (vii) Adequate stand pipes with fire hoses and 37 Petroleum (Waste Oils Recycling Operations) GN. No. 220 (contd.. ) I Amount SIN Particular of Offence I" Offence 3'0 Offence 2nd Offence nozzles: and (viii) Water showering rings at storage tanks and filling gantry. 25. Failures to maintain paved TZS TZS driveways without any pot holes. TZS 7,000,000 3,500,000.00 10.500,000 26. Failure to ensure that the driveway allows ease of maneuverability of TZS TZS trucks as well as quick and safe TZS 7,000,000 exit in case ofan emergency. 3,500,000.00 27. Failure to install flame proof electrical fittings and appliances at TZS TZS zones classified with high TZS 7,000,000 10,500,000 3,500,000.00 hydrocarbon vapours. 28. Failure to conduct Environmental Audit where applicable and obtain TZS TZS an Environmental Audit certificate. TZS 10,000,000 5.000.000 15,000.00 Failure to maintain color coding of 29. the product's pipelines as approved by the Authority and properly labelled. The colour codes are: (a) Petrol - Red Strips (b) Diesel - Yellow Kerosene - Blue (d) Industrial Diesel Oil (100) TZS TZS TZS I0,000,000 15,000,000 - Black 5,000,000 (e) Heavy Furnace Oil - Black (f) Fire Hydrant - Red (g) Foam - Yellow (h) Feedstock- Black (i) Base oil - Black Strips 30. Failure to ensure that the facility is in a good state of repair and TZS TZS 7,000,000 TZS housekeeping. 3.500,000.00 10,500,000 Dar es Salaam, FELIX NGAMLAGOSI, 15•h May, 2017 Director General 38

Petroleum (Waste Oils Recycling Operations) Rules, 2017

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