56Quotation of OTN—large user of natural gas

#### 56 Quotation of OTN—large user of natural gas (1) If: (a) during an eligible financial year, a natural gas supplier supplies an amount of natural gas to another person (the recipient); and (aa) it may reasonably be expected that the natural gas is wholly or partly for use by the recipient; and (b) the natural gas is withdrawn from a natural gas supply pipeline for the purposes of the use; and (c) the withdrawal takes place in Australia; and (e) either: (i) the recipient is an approved person for the purposes of the application of this subsection to the eligible financial year; or (ii) the recipient is a person to whom natural gas is supplied in the circumstances covered by section 55B; the recipient may quote the recipient’s OTN in relation to the supply mentioned in paragraph (a). > Note: For approved person, see subsection (5). Approved person (2) A person may apply to the Regulator to be an approved person for the purposes of the application of subsection (1) to a specified eligible financial year. (3) An application must: (a) be in writing; and (b) be in a form approved, in writing, by the Regulator; and (c) be accompanied by such information as is specified in the regulations; and (d) be accompanied by such documents (if any) as are specified in the regulations. (4) The approved form of application may provide for verification by statutory declaration of statements in applications. (5) After considering an application under subsection (2), the Regulator may, by written notice given to the applicant, declare that the applicant is an approved person for the purposes of the application of subsection (1) to the eligible financial year specified in the application. (6) The Regulator must not declare that the applicant is an approved person for the purposes of the application of subsection (1) to an eligible financial year unless the Regulator is satisfied that it is likely that so much of the total amount of covered emissions from the operation of an eligible facility of the applicant during the eligible financial year as is attributable to the combustion of natural gas will have a carbon dioxide equivalence of not less than: (a) 25,000 tonnes; or (b) if another number of tonnes is specified in the regulations—the specified number of tonnes. (6A) For the purposes of subsection (6), a facility is an eligible facility of the applicant if: (a) the facility is under the operational control of the applicant; or (b) the following conditions are satisfied: (i) the facility is under the operational control of another person; (ii) the applicant provides natural gas to the other person for use in the operation of the facility; (iii) the provision of the natural gas does not involve a supply of the natural gas. (7) If the Regulator decides to refuse to approve the applicant, the Regulator must give written notice of the decision to the applicant.