PETROLEUM AND GAS (PRODUCTION AND SAFETY) ACT 2004 - SECT 437 Limitation of pipeline licence holder’s liability

PETROLEUM AND GAS (PRODUCTION AND SAFETY) ACT 2004 - SECT 437

437 Limitation of pipeline licence holder’s liability

(1) This section applies if a person incurs a cost, damage or loss because of—

(a) the partial or total failure of a pipeline licence holder to transport petroleum, fuel gas or regulated hydrogen through a pipeline; or

(b) fuel gas not of the prescribed quality being transported through a pipeline the subject of a pipeline licence.

(2) However, this section does not apply to the extent to which liability for the cost, damage or loss is, under a contract, agreed between the person and the licence holder.

(3) The licence holder is not civilly liable for the cost, damage or loss if—

(a) the failure, or the fuel gas being not of the prescribed quality, was caused by a circumstance beyond the holder’s control; and

(b) the holder’s operation of the pipeline—

(i) complied with this Act and the conditions of the licence; and

(ii) was carried out in good faith and without negligence.

(4) Subsection (3) does not limit section 7 (3) .