University of Management and Technology

School of Commerce and Accountancy

FALL– 2020 SEMESTER

Course Title: Introduction To Business Law

Final Project
Course Instructor: Farooq Awan

Section: QCA Program: BAC/ITM/S&M Date: 16 JAN 2021

Submission Date: 21 Jan 2021 Maximum Marks: 10

Submitted by: Muhammad Haris Student ID: F2019383012

Instructions:

1. Students are directed to prepare a comprehensive assignment based project on any one of the given topic.
2. Project must specify:
a) Establishment of the legal institute
b) Power & Functions
c) Organizational structure
 Oil & Gas Regularity Authority

Establishment:

Oil and Gas Regulatory Authority (OGRA) was established by the Federal Government on March 28, 2002 in pursuance of the Oil and Gas
Regulatory Authority Ordinance, 2002 The objective of OGRA is to “foster competition, increase private investment and ownership in the
midstream and downstream petroleum industry, protect the public interest while respecting individual rights and provide effective and
efficient regulations”. The Authority comprises of Chairman/Chairperson and three Members vim; Member (Gas), Member (Finance) and
Member (Oil) who are professionals with rich experience in their respective fields. They can serve for maximum two terms subject to
retirement on attaining the age of 65 years. Consequent upon the establishment of OGRA, the Natural Gas Regulatory Authority (NGRA)
was subsumed by the OGRA. All properties and works done by the NGRA were transferred to and protected under the OGRA Ordinance.
OGRA was, therefore, in a position to start its functions in respect to natural gas immediately upon its establishment.

Powers and Functions:

The Powers & Functions of the Authority as embodied in the Ordinance are as under: -
Exclusive power to grant, amend or revoke licenses for regulated activities and enforce compliance of license conditions to promote
efficiency, cost effectiveness, best practices, high safety and Service standards etc. The regulated activities are:

 Natural Gas

• Construction or operation of pipelines or storage facilities or other installations

• Transmission
• Distribution
• Sale

 Oil

• Construction or operation of refinery, pipelines, storage facilities, blending facilities and Installations
Marketing and storage of refined oil products
 Liquefied Petroleum Gas(LPG)

• Construction or operation of pipeline, production or processing facilities, storage facilities, and installation
• Transporting, filling, marketing and distribution

 Compressed Natural Gas(CNG)

• Construction or operation of installations including testing or storage facilities

• Transporting, filling, marketing and distribution

 Liquefied Natural Gas(LNG)

• Construction or operation of production and processing facilities.

• Construction or operation of installation including testing or storage facilities.
• Transporting, filling, marketing and distribution.

• Exclusive power to employ officers, staff, experts, consultants, advisors and other employees on Such terms and conditions as it
may deem fit.

• Exclusive powers to decide upon all matters in its jurisdiction.

• Develop and enforce performance and service standards.

• Determine in consultation with the Federal Government and the licensees, a reasonable rate of return to the natural
gas licensees.

• Prescribe procedures and standards for investment programmers of the gas utilities and oversee their capital expenditure to
ensure prudence.

• Determine the revenue requirement of gas utilities covering the cost of gas, transmission and distribution cost and the prescribed
return.
 • Resolution of complaints and disputes between a person and licensee or between licensees.

• Enforce standards and specifications for refined oil products as notified by the Federal Government.

• Implement policy guidelines of the Federal Government, issued under Section 21 of the OGRA.

Organizational Structure:

Chairman

Member (Gas) Member (Finance)

Member (Oil)

Finance
Oil Natural Gas

Operations (CNG & LPG

Accounts
LNG

Complaints

Planning & Secretariat/ Legal &

Internal Audit Registrar Enforcement
co-ordination Admin Litigation