Petroleum Pipelines Bill: Briefing

Meeting report

SELECT COMMITTEE ON ECONOMICS AND FOREIGN AFFAIRS
10 June 2003
PETROLEUM PIPELINES BILL: BRIEFING

Chairperson: Mr B Tolo (ANC)

Documents handed out: Petroleum Pipelines Bill: Department of Minerals and Energy

SUMMARY
The Committee was briefed on the objectives of the Bill, which was to provide a regulatory framework for the petroleum pipelines industry. Members were reassured about the Bill's implications for privately owned land in respect of servitudes, as well as for black economic empowerment (BEE), the environment and heath and safety.

MINUTES
Mr M Singh (Director: Petroleum Policy in the Department of Minerals and Energy) said that the objective of the proposed Bill was to establish a national regulatory framework for petroleum pipelines and a Petroleum Pipelines Regulatory Authority as the custodian and enforcer of this framework. The Bill also set out the requirements for licensing and registering petroleum pipelines, their construction, operation and related commercial services.

Discussion
The Chair asked members for questions of general clarity rather than questions of substance.

Dr E Concroy (NNP) asked what the point was in having competitive pipeline tariffs if there was no competition in respect of the final product. He also asked whether private persons would be compelled to provide servitudes for the purposes of building pipelines.

Mr Singh replied that no land would be expropriated without the consent of the owners. Where expropriation took place, appropriate market prices would be paid.

M N Raju (DA) asked if there were mechanisms in place to ensure that there was no 'fronting' for purposes of black economic empowerment (BEE).

Mr Singh said that all companies involved in the petroleum pipeline industry would be required to provide information on the implementation of BEE on an annual basis. The regulatory authority envisaged in the proposed Bill would have access to any information pertinent to the operation of petroleum pipelines, including BEE. There was a need to develop skills in the petroleum pipeline industry with meaningful BEE in mind.

Mr Raju asked if there were mechanisms in place to alert people in residential areas to the implications of living near pipelines.

Mr Singh emphasised that it was the role of the regulating authority to ensure that environmental, health and safety regulations were adhered to by companies operating petroleum pipelines.

The meeting was adjourned