(Published in the Official Gazette no. 24918, dated 26 October 2002,)

_{NATURAL GAS MARKET}

_{FACILITIES  REGULATION}

Objective

Article 1- The objective of this Regulation is to set forth the principles and procedures related to performance of activities, concerning natural gas facilities, in conformity with national and/or international standards.

Scope

Article 2- This Regulation covers principles and procedures related to design, construction, control, commissioning, operation, maintenance and repair activities concerning natural gas transmission, distribution, storage facilities and liquefied natural gas and compressed natural gas facilities, and the safety rules to be followed.

Legal Basis

Article 3- This Regulation is issued as per the provisions of Electricity Market Law no. 4628 and Natural Gas Market Law no. 4646.

Definitions and abbreviations

Article 4- For the purposes of interpretation and implementation of this Regulation, the following terms and abbreviations shall bear the following meanings:

a)                Law: Natural Gas Market Law no. 4646 dated 18/4/2001.

b)                Authority: Energy Market Regulatory Authority.

c)                Board: Energy Market Regulatory Board.

d)                President: President of the Energy Market Regulatory Board.

e)                License : Authorization granted separately for each market activity by the Board to any legal entity in accordance with the Law to enable such legal entity to carry out market activities.

f)                  Normal operating conditions: Operation of the facilities within the ranges of design pressure, temperature, flow, and other operating criteria.

g)                Certificate holder: Any real person or legal entity which has obtained a certificate as per the Natural Gas Market Certificate Regulation.

h)                Compressed natural gas: Pressurized form of natural gas.

i)                  Facility: Any pipeline, equipment, installation, building and transportation vehicle used for the purposes of natural gas liquefication, gasification, enhancement, refinement, transmission, storage or distribution.

j)                  Legal entity (company): Private or public legal entity established to perform one or more of the functions of natural gas production, transmission, distribution, wholesale, import, export, trade and storage, as per the provisions of the Law.

k)                EN: European Norm.

l)                  IEC: International Electrotechnical Commission.

m)              ISO: International Organization for Standardization.

n)                TS: Turkish Standards.

• o)                TSE:Turkish Standards Institute.

Standards

Article 5- With respect to design, construction and installation, testing and control, commissioning and operation, maintenance and repair of and provision of minimum safety conditions at all facilities to be used for natural gas market activities, it shall be obligatory to conform to any one of TS, EN, ISO or IEC standards, and in case of their absence, other standards and/or documents acceptable to TSE. In case of any amendment in the standards, the standard which introduces the amendment; in case of annulment or invalidation of a standard, the new standard shall be conformed to.

No material or equipment, which does not conform to standards, shall be used at the facilities, under no condition whatsoever. Material or equipment, for which a standard does not exist, shall be required to have “quality assurance certificates”.

Rights and obligations

Article 6- It shall be obligatory to have facility construction and service activities performed by certificate holders. Licensees may perform such activities themselves.

At every stage of work from design to commissioning of the facilities in question, the licensee shall have a separate certificate holder perform testing and/or control to check whether the activities are being performed in line with the applicable legislation or not. It shall be obligatory for the licensee to maintain all kinds of records and reports related such tests and controls and those related to operation, maintenance and repair of the facilities.

Qualifications and training of personnel

Article 7- In operation of the facilities, the licensee shall use personnel which possess the educational background and qualifications required for the job. A program covering the job descriptions, training and assessment, and training schedule of the personnel shall be prepared and implemented.

All personnel working at the facilities shall be trained about emergency cases, characteristics of flammable liquids and gasses, possible dangers, fire-fighting and first aid. All personnel shall be delivered on the job training in their respective fields of activity. Personnel which successfully complete such training shall be assigned with duties in the facilities. Such training shall be repeated regularly.

Operation and maintenance manuals

Article 8- The licensee shall prepare the manuals, for use during ordinary operation and maintenance, concerning provision of safety during commissioning, operation and decommissioning of the facilities. Such manuals shall cover also the actions to be taken under extra-ordinary operating conditions, be updated when necessary and be available at the relevant parts of the facilities.

Emergency action

Article 9- The licensee shall prepare manuals explaining which personnel shall intervene and which equipment shall be used during emergencies, depending on the content and location of the emergency. Such manuals shall be available at the relevant parts of the facilities and be updated when necessary.

Personnel, equipment and material which will be required in case of emergency shall be kept available. Relevant agencies shall be informed about potential dangers and how they shall be handled. In case of emergencies, action shall be taking by means of applying the safety measures as per the manuals. Coordination shall be provided with the relevant local agencies for evacuation of the area which may be affected and for taking the other necessary measures.

Temporary Article – Facilities, the tenders for which have been conducted prior to the effective date of this Regulation, those currently under construction or those construction of which are completed but not yet commissioned, shall be commissioned upon performance of the required tests and controls, to ensure safe operation thereof.

Operation of the existing facilities which have been in operation prior to the effective date of this Regulation shall be resumed on the condition that necessary measures are taken by the licensee to ensure minimum safety conditions.

Effectiveness

Article 10- This Regulation shall come into effect on the date it is issued, to be effective as of 2/11/2002.

Enforcement

Article 11- This Regulation shall be enforced by the President.