2The RoLR cost recovery scheme is dealt with under Part 6 of the National Energy Retail Law.

2 The RoLR cost recovery scheme is dealt with under Part 6 of the National Energy Retail Law. 7—Meaning of regulatory payment A regulatory payment is a sum that a service provider had been required or allowed to pay to a user or an end user for a breach of, as the case requires— (a) a pipeline reliability standard; or (b) a pipeline service standard, because it was efficient for the service provider (in terms of the service provider's overall business) to pay that sum. See also section 24(2)(b). 8—Meaning of service provider (1) A service provider is a person who— (a) owns, controls or operates; or (b) intends to own, control or operate, a pipeline or any part of a pipeline. A service provider must not provide a pipeline service by means of a pipeline unless the service provider is a legal entity of a specified kind: see section 131. (2) If AEMO controls or operates (without at the same time owning) a pipeline or any part of a pipeline, AEMO is not for that reason to be taken to be a service provider for the purposes of this Law. 8AA—Meaning of transportation service provider If AEMO controls or operates (without at the same time owning) a compression service facility or another facility of a type prescribed by the Regulations for the purposes of paragraph (c) of the definition of transportation facility in section 2, AEMO is not for that reason to be taken to be a transportation service provider for the purposes of this Law. 8AB—Meaning of small shipper (1) A small shipper is a user or prospective user— (a) who is, or seeks to be, a party to a contract with a service provider for the provision of a pipeline service by means of a pipeline; and (b) for whom the total daily pipeline capacity right provided, or sought to be provided, under 1 or more contracts with the same service provider and by means of the same pipeline is not more than— (i) the daily pipeline capacity right prescribed for this definition by the Regulations; or (ii) if no daily pipeline capacity right is prescribed by the Regulations, the lesser of the following amounts: (A) 5 terajoules per day; (B) 20% of the pipeline's nameplate rating. (2) However, a small shipper does not include a corporation with a market capitalisation of more than $500 000 000 or a related body corporate of the corporation. See also section 19A in relation to related bodies corporate. nameplate rating, in relation to a pipeline, means the maximum daily capacity of the pipeline under normal operating conditions. 8A—Nominated distributors (1) A local regulation may— (a) nominate an entity, being an entity that is licensed or otherwise authorised under the jurisdictional gas legislation of that jurisdiction to operate a distribution pipeline that is not a scheme pipeline, as an entity to which this section applies (the nominated distributor); and (b) apply to the nominated distributor specified provisions of the Rules that relate to the following matters: (i) the connection of premises of retail customers; (ii) retail support obligations between distributors and retailers; (iii) credit support arrangements between distributors and retailers. (2) The application of any such specified provisions of the Rules to the nominated distributor is subject to such modifications as may be specified in the local regulation. (3) The nominated distributor— (a) must comply with the Rules to the extent that the Rules are applied by the local regulation to the nominated distributor; and (b) may, to the extent that the Rules apply to the nominated distributor, be proceeded against under this Law for any breach of those Rules. (4) A nomination of an entity by a local regulation may be made for— (a) the whole or a specified part of the geographical area of a jurisdiction; or (b) the whole or a specified part of the distribution pipeline that is operated by the entity, or for both. (5) The Minister responsible for administering the application Act (other than the application Act of South Australia) under which a local regulation referred to in this section is made is to make arrangements for notice of the making and publication of the regulation to be published for information in the South Australian Government Gazette. 9—Passive owners of pipelines deemed to provide or intend to provide pipeline services (1) This section applies to a person who owns a pipeline but does not provide or intend to provide pipeline services by means of that pipeline. (2) The person is, for the purposes of this Law, deemed to provide or intend to provide pipeline services by means of that pipeline even if the person does not, in fact, do so. 10—Things done by 1 service provider to be treated as being done by all of service provider group (a) more than 1 person (a group) carries out a controlling facility activity in respect of a covered gas industry facility (or part of a covered gas industry facility); and (b) under this Law or the Rules a person who carries out a controlling facility activity in respect of the facility (or part of the facility) mentioned in paragraph (a) is required or allowed to do a thing. (2) A member of the group (the complying member) may do that thing on behalf of the other members of the group if the complying member has the written permission of all of the members of that group to do that thing on behalf of the group. (3) Unless this Law or the Rules otherwise provide, on the doing of a thing referred to in subsection (2) by a complying member, the members of the group on whose behalf the complying member does that thing must, for the purposes of this Law and the Rules, each be taken to have done the thing done by the complying member. (4) This section does not apply to a thing required or allowed to be done under section 131, Chapter 4 Part 2 or section 201, 202, 204, 228K or 228L. controlling facility activity means— (a) in relation to a pipeline—own, control or operate, or intend to own, control or operate, the pipeline (or part of the pipeline); or (b) in relation to any other natural gas industry facility—own, control or operate the covered gas industry facility (or part of the facility). 11—Local agents of foreign service providers (a) a service provider is a foreign company; and (b) the service provider has, under the Corporations Act 2001 of the Commonwealth, appointed a local agent within the meaning of that Act. (2) The local agent— (a) is answerable for the doing of all acts, matters and things the service provider is required by or under this Law to do; and (b) is personally liable to a penalty imposed on the service provider for a breach of a provision of this Law or the Rules if a court hearing the matter is satisfied that the local agent should be so liable. 12—Commissioning of a pipeline A pipeline is commissioned when the pipeline is first used for the haulage of covered gas, on a commercial basis. 13—Pipeline classification criterion (1) The pipeline classification criterion is whether the primary function of the pipeline is to— (a) reticulate gas within a market (which is the primary function of a distribution pipeline); or (b) convey gas to a market (which is the primary function of a transmission pipeline). (2) Without limiting subsection (1), in determining the primary function of the pipeline, regard must also be had to whether the characteristics of the pipeline are those of a transmission pipeline or distribution pipeline having regard to— (a) the characteristics and classification of, as the case requires, an old scheme transmission pipeline or an old scheme distribution pipeline; (b) the characteristics of, as the case requires, a transmission pipeline or a distribution pipeline classified under this Law; (c) the characteristics and classification of pipelines specified in the Rules (if any); (d) the diameter of the pipeline; (e) the pressure at which the pipeline is or will be designed to operate; (f) the number of points at which gas can or will be injected into the pipeline; (g) the extent of the area served or to be served by the pipeline; (h) the pipeline's linear or dendritic configuration; (i) the type of pipeline licence or authorisation that has been obtained in respect of the pipeline under jurisdictional gas legislation. 14—Local regulations may exempt pipeline (1) A local regulation may declare a pipeline, or a proposed pipeline, to be a remote pipeline if the pipeline— (a) is, or will be, hauling covered gas other than natural gas or a natural gas equivalent, as defined in the National Energy Retail Law; and (b) is, or will be, wholly within the jurisdiction for which the regulation is made; and (c) is not, or will not be, interconnected in any way with the system of transmission pipelines and distribution pipelines used to convey gas within and between participating jurisdictions. (2) A remote pipeline, and the service provider for the pipeline (but only in respect of the remote pipeline) is exempt from the following: (a) section 91DB; (b) Chapter 3; (c) Chapter 4; (d) Chapter 5; (e) section 223; (f) Chapter 7A. (3) Before recommending the making of a local regulation declaring a pipeline or a proposed pipeline to be a remote pipeline, the responsible Minister of the participating jurisdiction must have regard to the national gas objective. (4) A pipeline or a proposed pipeline ceases, with immediate effect, to be a remote pipeline if— (a) 1 or more of the requirements in subsection (1) ceases to apply to the pipeline; or (b) the local regulation declaring the pipeline to be a remote pipeline is repealed. 16—Form of regulation factors The form of regulation factors are— (a) the presence and extent of any barriers to entry in a market for pipeline services; (b) the presence and extent of any network externalities (that is, interdependencies) between a covered gas service provided by a service provider and any other covered gas service provided by the service provider; (c) the presence and extent of any network externalities (that is, interdependencies) between a covered gas service provided by a service provider and any other service provided by the service provider in any other market; (d) the extent to which any market power possessed by a service provider is, or is likely to be, mitigated by any countervailing market power possessed by a user or prospective user; (e) the presence and extent of any substitute, and the elasticity of demand, in a market for a pipeline service in which a service provider provides that service; (f) the presence and extent of any substitute for, and the elasticity of demand in a market for, electricity or gas (as the case may be). 17—Effect of separate and consolidated access arrangements in certain cases (1) This section applies despite anything to the contrary in this Law. (2) If, under this Law and the Rules, separate access arrangements are approved in an applicable access arrangement decision for pipeline services provided, or to be provided, by means of different parts of a scheme pipeline, each part of the scheme pipeline— (a) by which pipeline services are provided; and (b) to which each separate applicable access arrangement applies, must to be taken to be a separate scheme pipeline for the purposes of this Law. (3) If under this Law and the Rules, a single access arrangement is approved in an applicable access arrangement decision for pipeline services provided, or to be provided, by means of 2 or more scheme pipelines, those pipelines must be taken to be a single scheme pipeline for the purposes of this Law. 18—Certain extensions to, or expansion of the capacity of, pipelines to be taken to be part of a scheme pipeline (1) Subsection (2) applies in relation to an extension to a scheme pipeline if, by operation of the extension and expansion requirements under an applicable access arrangement, the applicable access arrangement will apply to pipeline services provided by means of the scheme pipeline as extended. (2) For the purposes of this Law— (a) the extension to the scheme pipeline must be taken to be part of the scheme pipeline; and (b) the pipeline as extended must be taken to be a scheme pipeline. (3) Also, for the purposes of this Law— (a) an expansion of the capacity of a scheme pipeline must be taken to be part of the scheme pipeline; and (b) the pipeline as expanded must be taken to be a scheme pipeline. 19—Expansions of the capacity of non‑scheme pipelines to be taken to be part of non‑scheme pipeline For the purposes of this Law— (a) an expansion of the capacity of a non‑scheme pipeline must be taken to be part of the non‑scheme pipeline; and (b) the pipeline as expanded must be taken to be a non‑scheme pipeline. 19A—Related bodies corporate For the purposes of this Law, 2 or more bodies corporate are related to each other if they are related bodies corporate within the meaning of the Corporations Act 2001 of the Commonwealth. 20—Interpretation generally