7Provisions of scheme—eligible reticulation gas

7 Provisions of scheme—eligible reticulation gas

(1) A scheme shall contain: (a) a provision authorizing the Minister or an approved person to register persons as distributors of eligible reticulation gas for the purposes of the scheme; (b) a provision that such registration may take effect from the commencing date or any later date; (c) a provision authorizing the Minister or an approved person to revoke the registration of a person so registered; and (d) a provision that the persons to whom payments may be made by the State under the scheme in respect of the purchase of liquefied petroleum gas or naphtha shall be such distributors of eligible reticulation gas as are so registered under the scheme. (2) A scheme shall not permit the registration under the scheme of a distributor of eligible reticulation gas unless he has entered into an agreement in writing with the Commonwealth and the State, or given an undertaking in writing to the Commonwealth, to the effect that: (a) any eligible reticulation gas that, after the agreement is entered into or the undertaking is given and before the expiration of the period to which the Act applies, is sold by him for eligible use and in the production of which he uses liquefied petroleum gas or naphtha purchased by him and, during the period to which this Act applies, delivered to him will be so sold by him at a price that gives to the purchaser the benefit of any payment under the scheme received or to be received by him in respect of the purchase; and (b) he will not make a claim for a payment from the State in respect of the purchase by him of any liquefied petroleum gas or naphtha unless eligible reticulation gas sold by him for eligible use produced by using the liquefied petroleum gas or naphtha was so sold at a price that gave to the purchaser the benefit of the payment that the distributor claims to receive in respect of the purchase of the gas or naphtha by him. (3) A scheme shall contain a provision that, for the purposes of the scheme, where a quantity of eligible reticulation gas sold by a registered distributor of such gas, not being gas so sold partly for use that is eligible use by virtue of paragraph (d) of the definition of eligible use in section 3, is sold partly for eligible use and partly for other use, that quantity shall be deemed to have been sold: (a) where more than 50% of that quantity is sold for eligible use—for eligible use; or (b) in any other case—for other than eligible use. (4) A scheme shall contain a provision that, where: (a) a quantity of eligible reticulation gas, or each quantity of such gas supplied to premises included in a class of premises or supplied at particular premises outside a natural gas area, is sold partly for eligible use and partly for other use; and (b) the Minister or an approved person is satisfied that the percentage of that quantity or each of those quantities, as the case may be, that is sold for eligible use cannot be determined; the percentage of that quantity or each of those quantities, as the case may be, sold for eligible use shall, for the purposes of the scheme, be such percentage as is estimated by the Minister or the approved person, having regard to such information as is available to him, to be the percentage of that quantity or each of those quantities, as the case may be, that is so sold. (5) A scheme shall contain a provision that, where the Minister or an approved person is satisfied that the number of cubic metres of eligible reticulation gas sold, or sold for eligible use, by a registered distributor of such gas during a period in respect of which the distributor rendered accounts for gas sold by him cannot be accurately determined, the number of cubic metres of such gas so sold or sold for eligible use, as the case may be, shall, for the purposes of the scheme, be such number as is estimated by the Minister or the approved person, having regard to such information as is available to him, to be the number of cubic metres of such gas so sold or sold for eligible use, as the case may be. (6) A scheme shall contain a provision that, for the purposes of the scheme, where, in the course of the delivery to a registered distributor of eligible reticulation gas of liquefied petroleum gas or naphtha purchased by him for use in the production of eligible reticulation gas, part of that gas or naphtha so purchased is lost by natural wastage, that gas or naphtha so lost shall be taken to have been delivered with the rest of that gas purchased. (6A) A scheme shall contain: (a) a provision that, where the Minister is satisfied that: (i) eligible reticulation gas has been sold to a person as gas for use that is eligible use by virtue of paragraph (d) of the definition of eligible use in section 3 (in this subsection referred to as industrial use); (ii) that person has received in respect of that gas the benefit of a payment under the scheme; and (iii) that gas has been used, but the use was not eligible use or that person is unable, or has failed, to give a correct account of the use; the Minister may determine that, for the purposes of the scheme, all eligible reticulation gas sold to that person, on or after the date of the determination, for industrial use shall be deemed to be sold otherwise than for eligible use; (b) a provision authorizing the Minister to revoke a determination referred to in paragraph (a) from a date specified in the instrument of revocation, which may be a date earlier than the date of revocation; and (c) a provision authorizing the Minister, by instrument under his hand, to delegate to a specified officer his powers under the provisions referred to in paragraphs (a) and (b). (7) A scheme: (a) shall provide for payments by the State to registered distributors of eligible reticulation gas in respect of liquefied petroleum gas or naphtha purchased by them for use in the production of eligible reticulation gas for sale by them for eligible use, being liquefied petroleum gas or naphtha delivered to them during the period to which this Act applies; and (b) shall provide that a payment referred to in paragraph (a) to be made to a registered distributor of eligible reticulation gas shall be made only in respect of a period (in this paragraph referred to as a payment period) that falls wholly within a relevant period and shall be an amount calculated in accordance with the formula: