Reasons for Proposal
In rural areas, many households are still out of reach of urban gas, using expensive liquefied petroleum gas (hereinafter "LPG") containers, diesel, kerosene, etc. for heating and cooking although they have lower imcomes than those of urban areas. This creates an imbalance in energy welfare compared to areas supplied with urban gas and undermines their quality of life.
To address this issue, the government plans to expand the sale of LPG, an environmentally friendly fuel, by using small storage tanks and bulk (tank) trucks rather than containers so that households in rural areas can utilize cheaper LPG; and to build LPG supply pipeline networks by a Gun-level, thereby reducing fuel costs, resolving the imbalance in energy welfare and raising the quality of life.
However, unlike the apartment-based collective supply of LPG, a Gun-based system supplies LPG through underground pipelines running from LPG storage tanks to roads or the land belonging to other persons, which creates a need to introduce a new, stricter safety control system compared to that of the existing ones in terms of such matters as construction supervision of underground pipelines, protection and aftercare of pipelines, and safety management agencies.
Urban gas is currently subject to a safety control system for such matters as construction supervision of underground pipelines, protection and aftercare of pipelines, and safety control services that have been introduced in accordance with the Urban Gas Business Act. There is thus an urgent need to prescribe in the Safety Control and Business of Liquefied Petroleum Gas Act a legal ground for adopting a safety control system similar to that of urban gas to LPG supply pipeline networks that are or will be under construction.
Accordingly, this Amendment separately defines the “business of supplying LPG through a pipeline network” as a business of collectively supplying LPG (Article 2, subparagraphs 6-2 and 7-2 newly inserted) and prescribes separate standards for permission (Article 6, paragraph 2 newly inserted). It newly inserts provisions stipulating that supply pipeline network construction plans shall be approved by the authority that grants permission after meeting all facility/technical standards, standards for human resources, etc. (Article 34-2 newly inserted).
The Amendment requires any business supplying LPG through a pipeline network to be subject to the standards for construction supervision similar to urban gas (Article 45, paragraph 1, subparagraph 6 newly inserted) and to be supervised by the authority that grants permission, thereby enhancing safety control (Article 36-2 newly inserted). In addition, where a exacavating work is carried out in an area where a supply pipeline network is buried, a gas safety impact assessment shall be conducted to provide information on underground LPG pipelines and to carry out construction works for an urban railroad, underground walkway, underground roadway, or underground shopping mall, thereby preventing accidents caused by excavation works in areas where pipelines are buried (Article 49-2, Article 49-3, Article 49-4 newly inserted).
Moreover, the Amendment prohibits obstruction of the supply of LPG by damaging LPG filling facilities or impairing the function thereof (Article 65, paragraphs 3; Article 65, paragraph 5 newly inserted), and newly inserts penal provisions against any person who fails to fulfill such obligations as performing investigations when carrying out excavation works in an area where LPG pipelines are buried (Article 66, paragraph 3, subparagraphs 2 through 7 newly inserted).
The Amendment also entrusts Korea Gas Safety Corporation, which supervises urban gas in accordance with the Urban Gas Business Act, with the task of supervising the LPG supply pipeline networks (Article 61, paragraph 2, subparagraph 5 newly inserted).
Details
A. Define the business of supplying liquefied petroleum gas through pipeline networks as a business of collectively supplying LPG for which the types and scope of permission are specified by Presidential Decree (limited to businesses that have been subsidized in accordance with Article 47), and prescribe separate standards for permission to grant a permission to a business (Article 2, subparagraph 6-2; Article 6, paragraph 2 newly inserted).
B. Allow a gas supplier to have a person who meets requirements prescribed by the Ordinance of the Ministry of Trade, Industry and Energy perform part of his/her obligation to efficiently manage the safety of gas-using facilities in accordance with the safety control regulations pursuant to Article 31 (Article 30-2 newly inserted).
C. Require any pipeline network supplier of liquefied petroleum gas to request the authority that grants permission to approve its supply pipeline network construction plan after meeting all facility/technical standards, standards for human resources, etc. (Article 34-2 newly inserted).
D. Prepare standards for construction supervision for a business of supplying liquefied petroleum gas through a pipeline network similar to those for urban gas, and require such business to be supervised by the authority that grants permission (Article 36-2; Article 45, paragraph 1, subparagraph 6 newly inserted).
E. Prescribe that a gas safety impact assessment shall be conducted when carrying out excavation works in an area where a pipeline network is buried to provide information on underground pipelines for liquefied petroleum gas or to carry out construction works for an urban railroad, underground walkway, underground roadway, underground shopping mall, etc. (Article 49-2, Article 49-3, Article 49-4 newly inserted).
F. Entrust Korea Gas Safety Corporation with the task of supervising the supply pipeline networks of pipeline network suppliers of liquefied petroleum gas pursuant to Article 36-2 (Article 61, paragraph 2, subparagraph 5 newly inserted).
G. Punish any person who obstructs the supply of LPG by damaging LPG filling facilities or impairing the function thereof by imprisonment of up to 5 years or a fine of up to 50 million won; provided that the punishment shall be imprisonment of up to 2 years or a fine of up to 20 million won in the case of malpractice or gross negligence (Article 65, paragraph 3; Article 65, paragraph 5 newly inserted).
H. Prescribe that any person who fails to fulfill such obligations as performing checks when carrying out excavation works in an area where liquefied petroleum gas pipelines are buried shall be punishable by imprisonment of up to 3 years or a fine of up to 200 million won (Article 66, paragraph 3, subparagraphs 2 through 7 newly inserted).
I. Prescribe that any person who fails to enter into, or falsely enters into, a written agreement pursuant to Article 49-5, paragraph 2 shall be punishable by an administrative fine of up to 10 million won (Article 73, paragraph 2, subparagraph 3 newly inserted).
