S.L. 545.12 Art. 3Licensing.

(1) The following operations and activities shall require a licence issued by the Regulator and in accordance with such terms and conditions as may be specified in the licence:

(a) the carrying out of the functions of a storage system operator;

(b) the carrying out of the functions of an LNG system operator;

(c) carrying out of any of the functions of a distribution system operator;

(d) operation of a direct line.

(2) Without prejudice to any other law, licences may be granted or refused on the basis of the following criteria:

(a) compliance by the applicant with all other relevant permits and authorisations, however so described, including those issued by any other public authority or Government Department;

(b) the capability of the applicant to ensure safety conditions, in the context of the licence being applied for;

(c) private and professional integrity of the applicant;

(d) protection of the health and safety of employees;

(e) protection of the environment;

(f) record of compliance with these regulations and any other relevant laws by the person or entity with regard to whom the decision shall be made;

(g) compliance with safety, health, security, hazardous substances, environment, land use and planning requirements.

(3) An application for a new licence or for its renewal under these regulations shall be:

(a) in writing and in such form and shall contain such information as the Regulator may require;

(b) accompanied by such fees, bank guarantees and insurance policies as the Regulator may determine and deem to be appropriate. All fees shall be payable on application and any bank guarantees and, or insurance policies shall be effective as from the date of the issue of the licence and shall subsist throughout its duration. Interests and penalties, as established by the Regulator, shall be payable in the event of default in the due payment of fees: Provided that a licence granted under these regulations shall not relieve the licensee from the requirement of any other licence, permit or other authorisation, or from an obligation arising from any other law.

(4) A licence granted under these regulations may include such conditions as appear to the Regulator to be requisite or expedient, having regard to the duties of the Regulator.

(5) The Regulator shall communicate to the applicant in writing within a reasonable time, which shall not be of more than six months from the date of receipt of a valid application, any decision taken concerning an application for a licence or an application for the renewal of a licence or any valid reason impeding the Regulator to reach such a decision.

(6) A non-refundable application fee as established in the Second Schedule shall be paid to the Regulator with the licence application;

(7) The amount of the annual licence fee shall be in accordance to the Second Schedule to these regulations. The first licence fee shall be paid by the licensee to the Regulator immediately and on the day of the granting of the licence, and thereafter every year on the anniversary of the grant of such licence or on any other date as the Regulator may reasonably establish.

(8) If any licence fee is not paid within thirty days after the date upon which the licensee has been called by whatever means to pay such fee, the licence to which it relates shall cease to be in force with immediate effect and without any other action or further by the Regulator. If the licensee to whom it was granted wishes again to carry out any activity under these regulations, he shall then be required to apply for a new licence. In considering any such application, the Regulator may take into account the previous failure of the applicant to pay the licence fee and of any explanation regarding that failure which the applicant may submit to the Regulator. The Regulator may impose any measure which is to be carried out by the applicant to ensure payment of any amounts due and to ensure the prompt payment of any licence fees due in the future once a new licence is issued.