The Petroleum Act 1934

PREAMBLE. Preamble

1. Short title extent and commencement
2. Definitions
3. Import, transport and storage of petroleum
4. Rules for the import, transport and storage of petroleum
5. Production, refining and blending of petroleum
6. Receptacles of dangerous petroleum to show a warning
7. No licence needed for small stocks of non-dangerous petroleum not in bulk
8. No licence needed for small quantities of dangerous petroleum
9. Exemptions for motor conveyances and stationary engines
10. No licence needed by railway administration acting as carrier
11. Exemption of heavy oils
12. General power of exemption
13. Inspection of places
14. Inspection and sampling of petroleum
15. Standard Test Apparatus
16. Certification of other test apparatus
17. Testing officers
18. Manner of test
19. Certificate of testing
20. Right to require re-test
21. Power to make rules regarding tests
22. Special rules for testing viscous or solid forms of petroleum
23. General penalty for offences under this Act
24. Confiscation of petroleum and receptacles
25. Jurisdiction

THE
PETROLEUM ACT, 1934
ACT No. XXX of 1934

6th September, 1934

An Act to consolidate and amend the law relating to the
Import, transport, storage, production, refining and blending of petroleum
And other inflammable substances

WHEREAS it is expedient to consolidate and amend the law relating to the import, transport, storage, production, refining and blending of petroleum and other inflammable substances ;

1. Short title extent and commencement. (1) This Act may be called the Petroleum Act, 1934. ;

2. Definitions. (Subs. by the Central Laws (Statute Reform) Ordinance, 1960 (21 of 1960), s. 3 and 2nd Sch. (with effect from the 14th October, 1955), for the original sub section
(2) as amended by A. O., 1949, and the Federal Laws (Revision and Declaration) Act, 1951 (26 of 1951), s. 8.)[(2) It extends to the whole of Pakistan.];
(3) It shall come into force on such date(The 30th March, 1937 see Gazette of India, 1937, Pt. I, p. 632.) as the (Subs. by A. O., 1937, for “G. G. in C.”.) [Central Government] may, by notification in the (Subs. ibid., for “Gazette of India”.) [official Gazette], appoint.
(a) “petroleum” means any liquid hydrocarbon or mixture of hydrocarbons, and any inflammable mixture (liquid, viscous or solid) containing any liquid hydrocarbon ;
(b) “dangerous petroleum” means petroleum having its flashing point below seventy six degrees Fahrenheit ;
(c) “flashing point” of any petroleum means the lowest temperature at which it yields a vapour which will give a momentary flash when ignited, determined in accordance with the provisions of Chapter II and the rules made there-under ;
(d) “to transport” means to move petroleum from one place to another within Pakistan, by land, sea or air, and includes moving from one place to another in Pakistan across territory which is not part of Pakistan ;
(e) “to import” petroleum means to bring it into (Subs. by Ordinance, 21 of 1960, s. 3 and 2nd Sch. (with effect from the 14th October, 1955), for “the Provinces and the Capital of the Federation” which had been subs. by A. O., 1949, for “British India”.) [Pakistan] by land, sea or air, otherwise than during the course of transport ;
(f) “to store” petroleum means to keep it in any one place, but does not include any detention happening during the ordinary course of transport ;
(g) “motor conveyance” means any vehicle, vessel or aircraft for the conveyance of human beings, animals or goods, by land, water or air, in which petroleum is used to generate the motive power ;
(h) “prescribed” means prescribed by rules made under this Act.

PRELIMINARY
CHAPTER I
CONTROL OVER PETROLEUM

3. Import, transport and storage of petroleum. (1) No one shall import, transport or store any petro*leum save in accordance with the rules made under section 4.
(2) Save in accordance with the conditions of any licence for the purpose which he may be required to obtain by rules made under section 4, no one shall import any dangerous petrole*um, and no one shall transport or store any petroleum.

4. Rules for the import, transport and storage of petroleum. The (Subs. by A. O., 1937, for “G. G. in C.”.)[Central Government] may make rules(See the Petroleum Rules, 1937, published in the Gazette of India, 1937, Pt. 1, pp. 720 to 775 ; and for the Chittagong Port Supplementary Petro*leum and Carbide of Calcium Rules, 1958, see Gaz. of P., 1958, Pt. 1, pp. 407 410.
(a) prescribing places where petroleum may be imported and prohibiting its import elsewhere ;
(b) regulating the import of petroleum ;
(c) prescribing the periods within which licences for the import of dangerous petroleum shall be applied for, and providing for the disposal, by confiscation or otherwise, of any dangerous petroleum in respect of which a licence has not been applied for within the prescribed period or has been refused and which has not been exported ;
(d) regulating the transport of petroleum ;
(e) specifying the nature and condition of all receptacles and pipe lines in which petroleum may be transported;
(f) regulating the places at which and prescribing the conditions subject to which, petroleum may be stored ;
(g) specifying the nature, situation and condition of all receptacles in which petroleum may be stored ;
(h) prescribing the form and conditions of licences for the import of dangerous petroleum, and for the transport or storage of any petroleum, the manner in which applications for such licences shall be made, the authorities which may grant such licences and the fees which may be charged for such licences ;
(i) determining in any class of cases whether a licence for the transport of petroleum shall be obtained by the consignor, consignee or carrier ;
(j) providing for the granting of combined licences for the import, transport and storage of petroleum, or for any two of such purposes ;
(k) prescribing the proportion in which ,any specified poisonous substance may be added to petroleum, and prohibiting the import, transport or storage of pet*roleum in which the proportion of any specified poisonous substance exceeds the prescribed propor*tion ; and
(l) generally, providing for any matter which in (Subs. by A. O., 1937, for “his”.)[its] opinion is expedient for proper control over the im*port, transport and storage of petroleum.

5. Production, refining and blending of petroleum. (1) No one shall produce, refine or blend petroleum save in accordance with the rules made under sub section (2).
(2) The (Subs. ibid., for “G. G. in C.”) [Central Government] may make rules(See the Petroleum Rules, 1937, published in the Gazette of India, 1937, Pt. I, pp. 720 to 775; and for the Mineral Gas Safety Rules, 1960, see Gaz. of P., 1961, Pt. I, pp 120 28.)
(a) prescribing the conditions subject to which petroleum may be produced, refined or blended ; and
(b) regulating the removal of petroleum from places where it is produced, refined or blended and preventing the storage therein and removal there from, except as dangerous petroleum, of any petroleum which has not satisfied the prescribed tests.

6. Receptacles of dangerous petroleum to show a warning. All receptacles containing dangerous petroleum shall have a stamped, embossed, painted or printed warning, either on the receptacle itself or, where that is impracticable, displayed near the receptacle, exhibiting in conspicuous characters the words “Petrol” or “Motor Spirit”, or an equivalent warning of the dangerous nature of the petroleum:
Provided that this section shall not apply to
(a) any securely stoppered glass, stoneware or metal receptacle of less than two gallons capacity contain*ing dangerous petroleum which is not for sale, or
(b) a tank incorporated in a motor conveyance, or attached to an internal combustion engine, and contain*ing petroleum intended to be used to generate motive power for the motor conveyance or engine, or
(c) a pipe line for the transport of petroleum, or (d) any tank which is wholly underground, or;
(e) any class of receptacles which the (Subs. by A. O., 1937, for “G. G. in C.”.)[Central Govern*ment] may, by notification(For notification exempting tanks within installations or refineries or at or near oil wells, and receptacles in the possession of His Majesty’s forces, see Gazette of India, 1937, Pt. 1, p. 632.) in the (Subs. by A. O., 1937, for “Gazette of India”.) [official Gazette], exempt from the operation of this section.

7. No licence needed for small stocks of non dangerous petroleum not in bulk. Notwithstanding anything contained in this Chapter, a person need not obtain a licence for the transport or storage of non dangerous petroleum if the total quantity in his possession at any one place does not exceed five hundred gallons and none of it is contained in a receptacle exceeding two hundred gallons in capacity.

8. No licence needed for small quantities of dangerous petroleum. (1) Notwithstanding anything contained in this Chapter, a person need not obtain a licence for the import, transport or storage of dangerous petroleum not intended for sale if the total quantity in his possession does not exceed six gallons.
(2) Dangerous petroleum possessed without a licence under this section shall be kept in securely stoppered receptacles of glass, stoneware or metal which shall not in the case of recep*tacles of glass or stoneware exceed one quart in capacity or in the case of receptacles of metal five gallons in capacity.

9. Exemptions for motor conveyances and stationary engines. (1) The owner of a motor conveyance, who complies with requirements of the law for the time being in force relating to the registration and licensing of such conveyance and its driver or pilot and the owner of any stationary internal combustion engine, shall not be required to obtain a licence
(a) for the import, transport or storage of any petroleum contained in any fuel tank incorporated in the con*veyance or attached to the internal combustion engine, or
(b) for the transport or storage of dangerous petroleum, not exceeding twenty gallons in quantity in addition to any quantity possessed under clause (a),
provided the petroleum is intended to be used to generate motive power for the motor conveyance or engine:
(Proviso added by the Petroleum (Amdt.) Act, 1940 (25 of 1940), s. 2.)[Provided further that the total quantity of dangerous petroleum which may be stored without a licence under clause (b) shall not exceed twenty gallons, notwithstanding that such owner may possess other motor conveyances or engines.]
(2) The dangerous petroleum transported or stored without a licence under clause (b) (Ins. ibid.) [of sub section (1)] shall be kept as provided in sub section (2) of section 8, and, if it exceeds six gallons in quantity, shall be stored in an isolated place which does not communicate with any room where any person resides or works or in any room where persons assemble.

10. No licence needed by railway administration acting as carrier. Notwithstanding anything contained in this Chapter, of a railway administration, as defined in section 3 of the Railways Act, 1890, need not obtain any licence for the import or transport of any petroleum in its possession in its capacity as carrier IX of 1890.

11. Exemption of heavy oils. Nothing in this Chapter shall apply to any petroleum which has its flashing point not below two hundred degrees Fahrenheit.

12. General power of exemption. The (Subs. by A. O., 1937, for “G. G. in C.”) [Central Government] may, by notification(For instance of such a notification, see Gazette of India, 1937, Pt. I, p. 632.) in the (Subs. by A. O., 1937, for “Gazette of India”.) [official Gazette], exempt any petroleum specified in the notification from all or any of the provisions of this Chapter.

13. Inspection of places. (1) The (Subs. by A. O., 1937, for “G. G. in C.”) [Central Government] may authorise(For instance of such authorisation, see Gazette of India, 1937, Pt. I. Page 631.) any officer by name or by virtue of office to enter any place where petroleum is being imported, stored, produced, refined or blended, or is under transport, and inspect all receptacles, plant and appliances used in connection with petroleum in order to ascertain if they are in accordance with the provisions of this Chapter and the rules made there under.
(2) The (Subs. by A. O., 1937, for “G. G. in C.”) [Central Government] may make rules regulating the procedure of officers authorised under this section.

CHAPTER II
THE TESTING OF PETROLEUM

14. Inspection and sampling of petroleum. (1) The (Subs. by A. O., 1937, for “G. G. in C.”) [Central Government] may, by notification in the (Subs. by A. O., 1937, for “Gazette of India”.) [official Gazette], authorise(For instance of such authorisation, see Gazette of India, 1937, Pt. I. Page 631.) any officer by name or by virtue of office to enter any place where petroleum is being imported, transported, stored, produced, refined or blended and to inspect and take samples for testing of any petroleum found therein.
(2) The (Subs. by A. O.,1937, for “G. G. in C.”.)[Central Government] may make rules(For the Petroleum Rules, 1937, see Gazette of India, 1937, pp. 720 775; and for the Mineral Gas Safety Rules, 1960, see Gaz. of P., 1961, Pt. I, pp. 120 128.)
(a) regulating the taking of samples of petroleum for testing,
(b) determining the cases in which payment shall be made for the value of samples taken, and the mode of payment, and
(c) generally, regulating the procedure of officers exercis*ing powers under this section.

15. Standard Test Apparatus. (1) A standard apparatus for determining the flashing* point of petroleum shall be deposited with an officer to be ap*pointed in this behalf by the (Subs. by A. O.,1937, for “G. G. in C.”.) [Central Government], by notifi*cation in the (Subs. by A. O., 1937, for “Gazette of India”.) [official Gazette].
(2) Such apparatus shall be engraved with the words “Standard Test Apparatus”, and shall be verified and corrected from time to time and replaced when necessary, in accordance with rules made under section 21.
(3) The Standard Test Apparatus shall, on payment of the prescribed fee, be open to inspection at all reasonable times by any person wishing to inspect it.

16. Certification of other test apparatus. (1) The officer appointed under section 15 shall, on payment of the prescribed fee, if any, compare with the Standard Test Apparatus any apparatus for determining the flashing point of petroleum which may be submitted to him for this purpose.
(2) If any apparatus is found by him to agree with the Standard Test Apparatus within prescribed limits, the officer shall engrave such apparatus with a special number and with the date of the comparison, and shall give a certificate in respect of it in the prescribed form, certifying that on the said date the apparatus was compared with the Standard Test Apparatus and was found to agree with it within the prescribed limits, and specifying any corrections to be made in the results of tests carried out with the apparatus.
(3) A certificate granted under this section shall be valid for such period as may be prescribed.
(4) A certificate granted under this section shall, during the period for which it is valid, be proof, until the contrary is proved, of any matter stated therein.
(5) The officer shall keep a ‘register in the prescribed form of all certificates granted by him under this section.

17. Testing officers. The (Subs. by A. O., 1937, for “G. G. in C.”)[Central Government] may authorise any officer by name or by virtue of office to test petroleum of which sample have been taken under this Act, or which may have been sub*mitted to him for test by any person, and to grant certificates of the results of such tests.

18. Manner of test. All tests of petroleum made under this Act shall be made with a test apparatus in respect of which there is a valid certificate under section 16, shall have due regard to any correction specified in that certificate, and shall be carried out in accordance with rules made under section 21.

19. Certificate of testing. (1) The testing officer after testing samples of petroleum shall make out a certificate in the prescribed form, stating whether the petroleum is dangerous or non dangerous, and, the petroleum is non dangerous, the flashing point of the petroleum.
(2) The testing officer shall furnish the person concerned at his request, with a certified copy of the certificate, on payment of the prescribed fee, and such certified copy may be produce in any Court in proof of the contents of the original certificate.
(3) A certificate given under this section shall be admitted as evidence in any proceedings which may be taken under this Act in respect of the petroleum from which the samples were taken, and shall, until the contrary is proved, be conclusive proof that the petroleum is dangerous or non dangerous, as the case may be, and, if the petroleum is non dangerous, of its flashing point.

20. Right to require re test. (1) The owner of any petroleum, or his agent, who is dissatisfied with the result of the test of the petroleum may within seven days from the date on which he received intimation of the result of the test, apply to the officer empowered under section 14 to have fresh samples of the petroleum taken an tested.
(2) On such application and on payment of the prescribed fee, fresh samples of the petroleum shall be taken in the presence of such owner or agent or person deputed by him, and shall be tested in the presence of such owner or agent or person deputed by him.
(3) If, on such re test, it appears that the original test was erroneous, the testing officer shall cancel the original certificate granted under section 19, shall make out a fresh certificate, and shall furnish the owner of the petroleum, or his agent, with a certified copy thereof, free of charge.

21. Power to make rules regarding tests. The (Subs. by A. O., 1937, for “G. G. in C.”.)[Central Government] may make rules(See the Petroleum Rules, 1937, published in the Gazette of India, 1937, Pt. 1, pp. 720 775.) .
(a) for the specification, verification, correction and replacement of the Standard Test Apparatus ;
(b) prescribing fees for the inspection of the Standard Test Apparatus ;
(c) regulating the procedure in comparing a test apparatus with the Standard Test Apparatus ;
(d) prescribing the form of certificate to be given in respect of a test apparatus so compared, and the period for which such certificates shall be valid ;
(e) prescribing the form of the register of such certificates ;
(f) prescribing fees for comparing a test apparatus with the Standard Test Apparatus ;
(g) regulating the procedure of testing officers in carrying out tests of petroleum, providing for the averaging of results where several samples of the same pet*roleum are tested, and prescribing the variations from standard temperatures which may be allowed ;
(h) prescribing the form of certificates of tests of petro*leum and the fees which may be charged therefore;
(i) providing; where the results of the testing of samples raise a doubt as to the uniformity of the quality of the petroleum in any lot under test, for the division of the lot into sub lots, and for the selec*tion and testing of samples of each sub lot and for the averaging of results in accordance with the results of tests of those samples ;
(j) prescribing fees for re tests under section 20 and pro*viding for their refund where the original test was erroneous ; and
(k) generally, regulating the procedure of all officers performing duties connected with the testing of petroleum, and providing for any matter incidental to such testing.

22. Special rules for testing viscous or solid forms of petroleum. The (Subs. by A. O., 1937, for “G. G. in C.”.)[Central Government] may also make rules(See the Petroleum Rules, 1937, published in the Gazette of India, 1937, Pt. 1, pp. 720 775.) providing specially for the testing of any form of petroleum which is viscous or solid or contains sediment or thickening ingredients, and such rules may modify or supplement any of the provisions of this Chapter or of the rules made under section 21 in order to adapt them to the special needs of such tests.

CHAPTER III
PENALTIES AND PROCEDURE

23. General penalty for offences under this Act. (1) Whoever
(a) In contravention of any of the provisions of Chapter I or of any of the rules made thereunder, imports, transports, stores, produces, refines or blends any petroleum, or
(b) contravenes any rule made under section 4 or section 5, or
(c) being the holder of a licence issued under section 4 or a person for the time being placed by the holder of such licence in control or in charge of any place where petroleum is being imported or stored, or is under transport, contravenes any condition of such licence or suffers any condition of such licence to be contra*vened, or]
(d) being for the time being in control or in charge of any place where petroleum is being imported, stored, produced, refined or blended or is under transport, refuses or neglects to show to any officer authorised under section 13 any receptacle, plant or appliance used in such place in connection with petroleum, or in any way obstructs or fails to render reasonable assistance to such officer during an inspection, or
(e) being for the time being in control or in charge of any place where petroleum is being imported, trans*ported, stored, produced, refined or blended, refuses or neglects to show to any officer authorised under section 14 any petroleum in such place, or to give him such assistance as he may require for the inspection of such petroleum, or refuses to allow him to take samples of the petroleum, or
(f) being required, under section 27, to give information of an accident fails to give such information as so required by that section, shall be punishable with fine which may extend to five hundred rupees.
(2) If any person, having been convicted of an offence punishable under sub section (1), is again guilty of any offence punishable under that sub section, he shall be punishable for every such subsequent offence with fine which may extend to two thousand rupees.

24. Confiscation of petroleum and receptacles. (1) In any case in which an offence under clause (a) or clause (b) or clause (c) of sub section (1) of section 23 has been committed, the convicting Magistrate may direct that
(a) the petroleum in respect of which the offence has been committed, or
(b) where the offender is convicted of importing, trans*porting or storing petroleum exceeding the quantity he is permitted to import, transport or store, as the case may be, the whole of the petroleum in respect of which the offence was committed, shall, together with the receptacles in which it is contained, be confiscated.
(2) This power may also be exercised by the High Court in the exercise of its appellate or revisional powers.

25. Jurisdiction. Offences punishable under this Act shall be triable, (The words “in the Presidency towns, by a Presidency Magistrate, and elsewhere” omitted by A. O., 1949.)* * * by a Magistrate of the first class, or by a Magistrate of the second class who has been specially empowered by the (Subs. by A. O., 1937, for “L. G.”.) [Cen*tral Government] in this behalf.

CHAPTER IV
SUPPLEMENTAL

THE SCHEDULE. [Repealed.] THE SCHEDULE [ENACTMENTS REPEALED.] Rep by the Repealing Act, 1938 (I of 1938), s. 2 and Sch