8AA Transfer of licences.

1

A licence—

a

shall be capable of being transferred by the licence holder, with the consent of the Authority, in accordance with this section and subject to any term of the licence relating to its transfer;

b

may include conditions which must be complied with before the licence can be transferred.

2

A transfer may relate to the whole or any part of the licence.

3

The reference in subsection (2) to part of a licence is a reference to a part of the activities authorised by the licence (whether described by reference to activities being carried on by the licence holder or to activities which he is authorised to carry on).

4

Such consent may be given subject to compliance with such modification or other conditions as the Authority considers necessary or expedient.

5

In the case of a partial transfer, conditions imposed under subsection (4) may make as respects so much of the licence as is proposed to be retained by the transferor provision different from that made as respects so much of the licence as is proposed to be transferred.

6

In deciding whether to give its consent to a proposed transfer, the Authority shall apply the same criteria as it would apply if the Authority were deciding whether—

a

in the case of a general transfer, to grant a corresponding licence to the transferee; or

b

in the case of a partial transfer—

i

to grant to the transferee a licence corresponding to so much of the licence as is proposed to be transferred; and

ii

to grant to the transferor a licence corresponding to so much of the licence as is proposed to be retained.

7

The Authority shall—

a

give the Health and Safety Executive not less than 28 days’ notice of any proposal to consent to any proposed transfer; and

b

give that Executive and the Secretary of State not less than 28 days’ notice of any proposal to impose a modification condition.

8

If, before the expiry of the time specified in a notice given to the Secretary of State under subsection (7)(b), the Secretary of State directs the Authority not to impose the condition, the Authority shall comply with the direction.

9

Before giving consent to the transfer of a licence, the Authority shall give notice—

a

stating that it proposes to grant consent to the transfer;

b

stating the reasons why it proposes to give consent; and

c

specifying the time from the date of publication of the notice (not being less than two months) within which representations or objections with respect to the transfer may be made,

and shall consider any representations or objections that are duly made and not withdrawn.

10

A notice under subsection (9) shall be given by publishing the notice in such manner as the Authority considers appropriate for bringing it to the attention of persons likely to be affected by the transfer.

11

A purported transfer of a licence shall be void—

a

if the licence is not capable of transfer or the Authority has not given its consent;

b

if the purported transfer is in breach of a condition of the licence; or

c

if there has, before the purported transfer, been a contravention of a condition subject to compliance with which the Authority’s consent is given.

12

In this section—

• “transfer” includes any form of transfer or assignment or, in Scotland, assignation;

• “modification condition” means a condition requiring or otherwise providing for the making of modifications to the conditions of a licence.

38A Reasons for decisions.

1

This section applies to the following decisions of the Authority or the Secretary of State, namely—

a

the revocation of a licence;

b

the modification of the conditions of a licence;

c

the giving of any directions or consent in pursuance of a condition included in a licence by virtue of section 7B(5)(a)(i) or (ii);

d

the determination of a question referred in pursuance of a condition included in a licence by virtue of section 7B(5)(a)(iii);

e

the determination of a dispute referred under section 27A(1);

f

the making of a final order, the making or confirmation of a provisional order or the revocation of a final order or of a provisional order which has been confirmed.

2

As soon as reasonably practicable after making such a decision the Authority or the Secretary of State shall publish a notice stating the reasons for the decision in such manner as it or he considers appropriate for the purpose of bringing the matters to which the notice relates to the attention of persons likely to be interested.

3

The Authority shall send a copy of a notice published in respect of a decision mentioned in paragraph (a), (b), (c), (d) or (f) of subsection (1) to the licence holder to whose licence, or to whom, the decision relates.

4

In preparing a notice under subsection (2) the Authority or the Secretary of State shall have regard to the need for excluding, so far as that is practicable, any matter which relates to the affairs of a particular individual or body of persons (corporate or unincorporate), where it or he considers that publication of that matter would or might seriously and prejudicially affect the interests of that individual or body.

5

This section does not apply to a decision resulting in any provision which the Secretary of State has under section 36(3) directed the Authority not to enter in the register required to be kept under that section.

6

In this section “final order” and “provisional order” have the same meanings as in section 28.

Alteration of activities requiring licence

41C Power to alter activities requiring licence.

1

The Secretary of State may by order provide—

a

that specified activities are to become licensable activities; or

b

that specified activities are to cease to be licensable activities.

2

For the purposes of this Part activities are licensable activities if undertaking them without the authority of a licence or exemption constitutes an offence under section 5(1).

3

An order under this section may make consequential, transitional, incidental or supplementary provision including—

a

amendments (or repeals) in any provision of this Act or any other enactment; and

b

provision modifying any standard conditions of licences or (in the case of an order under subsection (1)(a)) provision determining the conditions which are to be standard conditions for the purposes of licences authorising the undertaking of activities which are to become licensable activities.

4

An order under this section may only provide for activities to become licensable activities if they are activities connected with—

a

the conveyance of gas through pipes to premises or to pipe-line systems operated by gas transporters;

b

the supply to premises of gas conveyed through pipes; or

c

arranging with gas transporters for gas to be introduced into, conveyed by means of or taken out of pipe-line systems operated by the gas transporters.

5

An order under this section providing for activities to become licensable activities may only be made on the application of the Authority made in accordance with section 41D.

6

An order under this section providing for activities to cease to be licensable activities may be made either—

a

on the application of the Authority made in accordance with section 41G; or

b

following consultation by the Secretary of State in accordance with section 41H.

7

An order under this section may provide that it is to remain in force only for a period specified in the order.

8

An order shall not be made under this section unless a draft of the statutory instrument containing it has been laid before, and approved by a resolution of, each House of Parliament.

41D Application by Authority for order including new activities.

1

If the Authority proposes to make an application for an order providing for activities to become licensable activities, it shall give notice—

a

stating that it proposes to make an application for an order providing for the activities to become licensable activities;

b

setting out the conditions which it would expect such an order to determine to be standard conditions for the purposes of licences authorising the undertaking of the activities and any other conditions which it would expect to be included in such licences; and

c

specifying a reasonable period (not being less than 28 days from the date of publication of the notice) within which representations or objections may be made with respect to the proposal,

and shall consider any representations or objections which are duly made and not withdrawn.

2

The notice shall be given by serving a copy on the Council and by publishing it in such manner as the Authority considers appropriate for bringing it to the attention of—

a

persons appearing to it to be carrying on, or be intending to carry on, the activities; and

b

any other persons appearing to it to be likely to be affected by an order providing for the activities to become licensable activities.

3

If an objection has been duly made (and not withdrawn) by a person who is carrying on or intends to carry on the activities, the Authority shall make a reference to the Competition Commission under section 41E before making the application.

4

In any other case where the Authority considers it appropriate to make a reference to the Commission under section 41E before making the application, the Authority may make such a reference.

5

If a reference is made to the Commission, the application shall not be made unless the Commission has reported on the reference that the fact that the activities to which the application relates are not licensable activities operates, or may be expected to operate, against the public interest.

6

The application shall set out—

a

the activities which the Authority considers should become licensable activities; and

b

the conditions which the Authority would expect to be determined to be standard conditions for the purposes of licences authorising the undertaking of the activities in question and any other conditions which the Authority would expect to be included in such licences.

41E References to Competition Commission.

1

A reference to the Competition Commission under this section shall require the Commission to investigate and report on whether the fact that the activities specified in the reference are not licensable activities operates, or may be expected to operate, against the public interest.

2

The Authority may, at any time, by notice given to the Commission vary the reference by adding to the activities specified in the reference or by excluding from the reference some of the activities so specified; and on receipt of such notice the Commission shall give effect to the variation.

3

The Authority shall specify in the reference, or a variation of the reference, for the purpose of assisting the Commission in carrying out the investigation on the reference—

a

the conditions which the Authority would expect to be determined to be standard conditions for the purposes of licences authorising the undertaking of the activities specified in the reference and any other conditions which the Authority would expect to be included in such licences; and

b

any effects adverse to the public interest which, in its opinion, the fact that the activities so specified are not licensable activities has or may be expected to have.

4

As soon as practicable after making the reference, or a variation of the reference, the Authority shall serve a copy of it on the Council and publish particulars of it in such manner as the Authority considers appropriate for bringing it to the attention of—

a

persons appearing to the Authority to be carrying on, or be intending to carry on, the activities specified in it; and

b

any other persons appearing to the Authority to be likely to be affected by it.

5

The Authority shall, for the purpose of assisting the Commission in carrying out the investigation on the reference, give to the Commission—

a

any information which is in its possession and which relates to matters falling within the scope of the investigation, and which is either requested by the Commission for that purpose or is information which in its opinion it would be appropriate for that purpose to give to the Commission without any such request; and

b

any other assistance which the Commission may require, and which it is within its power to give, in relation to any such matters,

and the Commission shall take account of the information for the purpose of carrying out the investigation.

6

In determining for the purposes of this section whether the fact that particular activities are not licensable activities operates, or may be expected to operate, against the public interest, the Commission shall have regard to—

a

the matters referred to in section 4AA;

b

any social or environmental policies set out or referred to in guidance issued under section 4AB; and

c

any advice given by the Health and Safety Commission under section 4A (advice about health and safety in relation to gas).

7

The provisions mentioned in subsection (8) are to apply in relation to references under this section as if—

a

the functions of the Commission in relation to those references were functions under the M6Fair Trading Act 1973;

b

the expression “merger reference” included a reference under this section;

c

in section 70 of the M7Fair Trading Act 1973—

i

references to the Secretary of State were references to the Authority; and

ii

the reference to three months were a reference to six months.

8

The provisions are—

a

sections 70 (time limit for report on merger), 85 (attendance of witnesses and production of documents) and 93B (false or misleading information) of the M8Fair Trading Act 1973;

b

Part II of Schedule 7 to the M9Competition Act 1998 (performance of the Commission’s general functions); and

c

section 24 of the M10Competition Act 1980 (modification of provisions about performance of such functions).

41F Reports on references.

1

In making a report on a reference under section 41E, the Competition Commission shall include in the report definite conclusions on whether the fact that the activities specified in the reference (or the reference as varied) are not licensable activities operates, or may be expected to operate, against the public interest.

2

The Commission shall also include in the report such an account of its reasons for those conclusions as in its opinion is expedient for facilitating proper understanding of the questions raised by the reference and of its conclusions.

3

Where the Commission concludes that the fact that particular activities are not licensable activities operates, or may be expected to operate, against the public interest, it shall specify in the report—

a

the effects adverse to the public interest which that fact has or may be expected to have; and

b

any modifications to the conditions specified in the reference in accordance with section 41E(3)(a) which they consider appropriate.

4

Section 82 of the M11Fair Trading Act 1973 (general provisions as to reports) shall apply in relation to reports of the Commission on references under section 41E as it applies to reports of the Commission under that Act.

5

A report of the Commission on a reference under section 41E shall be made to the Authority.

6

On receiving the report, the Authority shall send a copy of it to the Secretary of State.

7

Subject to subsection (8), the Authority shall, not less than 14 days after the copy is received by the Secretary of State, send another copy to the Council and publish that other copy in such manner as the Authority considers appropriate for bringing the report to the attention of persons likely to be affected by it.

8

If it appears to the Secretary of State that the publication of any matter in the report would be against the public interest or the commercial interests of any person, he may, before the end of the period of 14 days mentioned in subsection (7), direct the Authority to exclude that matter from the copy of the report to be sent to the Council and published under that subsection.

41G Application by Authority for order excluding activities.

1

Before making an application for an order providing for activities to cease to be licensable activities the Authority shall give notice—

a

stating that it proposes to make an application for an order providing for the activities to cease to be licensable activities; and

b

specifying a reasonable period (not being less than 28 days from the date of publication of the notice) within which representations or objections may be made with respect to the proposal,

and shall consider any representations or objections duly made and not withdrawn.

2

The notice shall be given—

a

by serving a copy on the Secretary of State, the Health and Safety Executive and the Council; and

b

by publishing it in such manner as the Authority considers appropriate for bringing it to the attention of persons likely to be affected by such an order.

3

An application under this section shall set out—

a

the activities which the Authority considers should cease to be licensable activities; and

b

the Authority’s reasons for proposing that the order be made.

41H Consultation by Secretary of State about order excluding activities.

1

If the Secretary of State proposes to make an order providing for activities to cease to be licensable activities (otherwise than on an application by the Authority under section 41G), he shall give notice—

a

stating that he proposes to make an order providing for the activities to cease to be licensable activities; and

b

specifying a reasonable period (not being less than 28 days from the date of publication of the notice) within which representations or objections may be made with respect to the proposal,

and shall consider any representations or objections duly made (and not withdrawn).

2

The notice shall be given—

a

by serving a copy on the Authority, the Health and Safety Executive and the Council; and

b

by publishing it in such manner as the Secretary of State considers appropriate for bringing it to the attention of persons likely to be affected by such an order.

33BA Overall standards of performance: gas transporters.

1

The Authority may from time to time—

a

determine such standards of overall performance in connection with the activities of gas transporters as, in its opinion, ought to be achieved by them; and

b

arrange for the publication, in such form and in such manner as he considers appropriate, of the standards so determined.

2

Different standards may be determined for different gas transporters if the Authority is of the opinion that the differences are such that no gas transporter would be unduly disadvantaged in competing with other gas transporters.

3

It shall be the duty of every gas transporter to conduct his business in such a way as can reasonably be expected to lead to his achieving the standards set under this section.

33BAA Procedures for prescribing or determining standards of performance.

1

Before prescribing standards of performance in regulations under section 33A or 33AA, or determining standards of performance under section 33B or 33BA, the Authority shall—

a

arrange for such research as the Authority considers appropriate with a view to discovering the views of a representative sample of persons likely to be affected and consider the results;

b

publish a notice of its proposals in accordance with subsections (2) and (3) and consider any representations which are duly made in respect of those proposals; and

c

consult the Council and other persons or bodies mentioned in subsection (4).

2

The notice required by subsection (1)(b) is a notice—

a

stating that the Authority proposes to prescribe or determine standards of performance and setting out the standards of performance proposed;

b

stating the reasons why it proposes to prescribe or determine those standards of performance; and

c

specifying the time (not being less than 28 days from the date of publication of the notice) within which representations with respect to the proposals may be made.

3

A notice required by subsection (1)(b) shall be published in such manner as the Authority considers appropriate for the purpose of bringing it to the attention of those likely to be affected by the proposals.

4

The persons or bodies to be consulted by the Authority under subsection (1)(c) are—

a

gas suppliers (in the case of standards of performance under section 33A or 33B) or gas transporters and gas suppliers (in the case of standards of performance under section 33AA or 33BA); and

b

persons or bodies appearing to the Authority to be representative of persons likely to be affected by the regulations or determination.

5

The Authority shall make arrangements for securing that notices under subsection (1)(b), regulations under section 33A or 33AA and determinations under section 33B or 33BA are made available to the public by whatever means it considers appropriate.

33D Information to be given to customers about overall performance.

1

The Authority may make regulations requiring such information as may be specified or described in the regulations about—

a

the standards of overall performance determined under section 33B or 33BA; and

b

the levels of performance achieved as respects those standards,

to be given by gas suppliers or gas transporters to customers or potential customers of gas suppliers.

2

Regulations under this section may include provision—

a

as to the form and manner in which and the frequency with which information is to be given; and

b

requiring information about the matters mentioned in subsection (1)(a) or (b) and relating to gas transporters to be given by gas transporters to gas suppliers and by gas suppliers to their customers or potential customers.

Service standards and remuneration

33F Remuneration and service standards.

1

This section applies to any company which is authorised by a licence to carry on activities subject to price regulation.

2

As soon as reasonably practicable after the end of each financial year of the company it must make a statement to the Authority—

a

disclosing whether or not remuneration has been paid or become due during that financial year to the directors of the company as a result of arrangements falling within subsection (3); and

b

where such remuneration has been paid or become due, describing the arrangements and the remuneration.

3

Arrangements fall within this subsection if they are arrangements for linking the remuneration of the directors of the company to levels of performance as respects service standards in connection with activities subject to price regulation.

4

A description under subsection (2)(b) must include in particular—

a

a statement of when the arrangements were made;

b

a description of the service standards in question;

c

an explanation of the means by which the levels of performance as respects those service standards are assessed; and

d

an explanation of how the remuneration was calculated.

5

The statement required by subsection (2) must also state—

a

whether or not there are in force in respect of the financial year during which the statement is made arrangements falling within subsection (3); or

b

if not, whether the company intends that such arrangements will be in force at some time during that financial year,

and if there are, or it is intended that there will be, such arrangements in force the statement must describe those arrangements.

6

A description under subsection (5) must—

a

include in particular the matters listed in subsection (4)(a), (b) and (c); and

b

where the arrangements described are different from any arrangements described under subsection (2)(b), state the likely effect of those differences on the remuneration of each director of the company.

7

The statement required by subsection (2) must be made to the Authority in such manner as may be required by the Authority.

8

The statement required by subsection (2)—

a

must be published by the company making the statement in such manner as it reasonably considers will secure adequate publicity for it; and

b

may be published by the Authority in such manner as it may consider appropriate.

9

The duty of a company under this section applies in respect of any person who has at any time been a director of the company.

10

In this section—

• “activities subject to price regulation”, in relation to any company, are activities for which—

  1. a

     a maximum price which may be charged by the company, or a method for calculating such a maximum price; or

  2. b

     a maximum revenue which may be received by the company, or a method for calculating such a maximum revenue,

  is determined by or under the licence granted under this Part;

• “company” means a company within the meaning of the M15Companies Act 1985 which is limited by shares;

• “remuneration” in relation to a director of a company—

  1. a

     means any form of payment, consideration or other benefit (including pension benefit), paid or due to or in respect of the director; and

  2. b

     includes remuneration in respect of any of his services while a director of the company;

• “service standards” in relation to any company, means standards relating to the quality of service received by customers or potential customers of the company, including any such standards which are—

  1. a

     set by or under any conditions included in a licence granted under this Part;

  2. b

     prescribed by the Authority in regulations made under section 33A and 33AA;

  3. c

     determined by the Authority under section 33B or 33BA; or

  4. d

     set or agreed to by the company.

33BC Promotion of the efficient use by consumers of gas.

1

The Secretary of State may by order impose—

a

on each gas transporter (or each gas transporter of a specified description); and

b

on each gas supplier (or each gas supplier of a specified description),

an obligation to achieve, within a specified period and in accordance with the order, the energy efficiency target to be determined by the Authority under the order for that transporter or supplier (and that obligation is referred to in this section as an “energy efficiency obligation”).

2

In this section “energy efficiency target” means a target for the promotion of improvements in energy efficiency, that is to say, efficiency in the use by consumers of gas conveyed through pipes, electricity or any other source of energy which is specified in the order.

3

An order under this section may specify criteria by reference to which the Authority is to determine energy efficiency targets for the gas transporters and gas suppliers on whom obligations are imposed by the order.

4

The Secretary of State and the Authority shall carry out their respective functions under this section in the manner he or it considers is best calculated to ensure that no gas transporter is unduly disadvantaged in competing with other gas transporters and no gas supplier is unduly disadvantaged in competing with other gas suppliers.

5

The order may make provision generally in relation to the energy efficiency obligations which it imposes, including in particular provision—

a

as to the treatment of persons who become gas transporters or gas suppliers after the beginning of the period to which the order relates;

b

as to the action which qualifies for the purpose of meeting the whole or any part of an energy efficiency target;

c

as to the method by which improvements in energy efficiency attributable to any qualifying action are to be assessed;

d

requiring transporters and suppliers to give to the Authority specified information, or information of a specified nature, about their proposals for complying with their energy efficiency obligations;

e

requiring the Authority to determine—

i

whether any proposed action qualifies for the purpose of achieving the whole or any part of a person’s energy efficiency target; and

ii

if so, what improvement in energy efficiency is to be attributed for that purpose to the proposed action or to any result of that action specified in the determination; and

f

requiring transporters or suppliers to produce to the Authority evidence of a specified kind demonstrating that they have complied with their energy efficiency obligations.

6

The order may make provision authorising the Authority to require a transporter or supplier to provide it with specified information, or information of a specified nature, relating to—

a

his proposals for complying with his energy efficiency obligation; or

b

the question whether he has complied with that obligation.

7

The order may make provision as to circumstances in which—

a

a person’s energy efficiency target may be altered during the period to which the order relates;

b

the whole or any part of a person’s energy efficiency target may be treated as having been achieved by action taken otherwise than by or on behalf of that person;

c

any action taken before the period to which the order relates may be treated as qualifying action taken during that period;

d

the whole or any part of a person’s energy efficiency target may be transferred to another gas transporter or gas supplier or to an electricity distributor or electricity supplier (within the meaning of Part I of the M16Electricity Act 1989); or

e

a person may carry forward the whole or any part of his energy efficiency target for the period to which the order relates to a subsequent period.

8

The order may—

a

provide for exceptions from any requirement of the order;

b

provide that any specified requirement contained in it is to be treated as a relevant requirement for the purposes of this Part;

c

make supplementary, incidental and transitional provision; and

d

subject to subsection (4), make different provision for different cases (including different provision in relation to different transporters or suppliers).

9

The order may include provision for treating the promotion of the supply to premises of—

a

electricity generated by a generating station which is operated for the purposes of producing heat, or a cooling effect, in association with electricity;

b

heat produced in association with electricity or steam produced from (or air or water heated by) such heat; or

c

any gas or liquid subjected to a cooling effect produced in association with electricity,

as promotion of improvements in energy efficiency.

10

No person shall be required by virtue of this section to provide any information which he could not be compelled to give in evidence in civil proceedings in the High Court or, in Scotland, the Court of Session.

11

Before making an order under this section the Secretary of State shall consult the Authority, the Council, gas transporters and gas suppliers and such other persons as he considers appropriate.

12

An order under this section shall not be made unless a draft of the instrument containing it has been laid before, and approved by a resolution of, each House of Parliament.

7

Any power to make regulations conferred by this Part on the Secretary of State or the Authority shall be exercisable by statutory instrument.

8

Any statutory instrument containing regulations under this Part made by the Secretary of State shall, except as otherwise provided by this Act, be subject to annulment in pursuance of a resolution of either House of Parliament.

16 Standards of gas quality.

1

The Authority may, with the consent of the Secretary of State, prescribe—

a

standards of pressure and purity to be complied with by gas transporters in conveying gas to premises or to pipe-line systems operated by other gas transporters; and

b

other standards with respect to the properties, condition and composition of gas so conveyed.

2

Before making any regulations under this section the Authority shall consult such persons and organisations as it considers appropriate and such gas transporters as appear to it to be affected by the regulations.

3

The Authority shall appoint competent and impartial persons for the purpose of—

a

carrying out tests of gas, apparatus or equipment in accordance with regulations under this section; and

b

assisting the Authority in exercising functions under this section and regulations made under it.

4

Regulations under this section may make provision—

a

for requiring tests of gas conveyed by gas transporters to be carried out by persons appointed under subsection (3) or by gas transporters for the purpose of ascertaining whether the gas conforms with the standards prescribed by the regulations;

b

for requiring such tests to be carried out on the basis of samples taken by persons appointed under subsection (3) or by gas transporters; and

c

for requiring samples of gas taken under paragraph (b) to be provided by gas transporters for the purpose of carrying out such tests.

5

Regulations under this section may make provision—

a

for requiring such premises, apparatus and equipment as the Authority may direct to be provided and maintained by gas transporters for the purpose of carrying out tests required under subsection (4)(a);

b

for requiring tests of apparatus and equipment so provided to be carried out by persons appointed under subsection (3); and

c

for requiring gas transporters to carry out tests of apparatus and equipment so provided and maintained by them.

6

Regulations under this section may make provision—

a

as to the places or premises and the times at which, and the manner in which—

i

tests under this section are to be carried out;

ii

samples of gas are to be taken and provided under this section; and

iii

results of tests under this section are to be notified or made available;

b

for the Authority to require by direction any matter which may be required by regulations by virtue of paragraph (a);

c

for persons representing the gas transporter concerned to be present during the carrying out of any tests carried out by persons appointed under subsection (3);

d

for the results of tests under this section to be made available to other licence holders and to the public;

e

for requiring gas transporters to notify the results of such tests carried out by them to the Authority or to any person appointed under subsection (3);

f

for conferring powers of entry on property owned or occupied by gas transporters for the purpose of carrying out tests under this section and otherwise for the purposes of the regulations.

7

Subject to subsection (8), the Authority may by notice in writing require a gas transporter to give to the Authority, or to any person appointed by it for the purpose, within such time and at such place as may be specified in the notice, such information as the Authority may reasonably require for the purpose of making regulations under this section or of giving directions under such regulations.

8

A gas transporter shall not be required under subsection (7) to give any information which he could not be compelled to give in evidence in civil proceedings before the High Court or, in Scotland, the Court of Session.

9

Every person who is a gas transporter during any period shall pay to the Authority such proportion as the Authority may determine of such part of its expenses for that period as the Authority may determine to be attributable to its functions in connection with the testing of gas for the purposes of this section.

10

It shall be the duty of every gas transporter to conduct his business in such a way as can reasonably be expected to secure compliance with the standards set under subsection (1).