petroleum Act

1
PETROLEUM ACT, 1934
2

• Short title. (1) This Act may be called the
  Petroleum Act, 1934 and
• Local Extent. (2) It extends to the whole of
  India.
• Definitions In this Act, unless the context
  otherwise requires, -
• "petroleum" means any liquid hydrocarbon or
  mixture of hydrocarbons, and any inflammable
  mixture (liquid, viscous or solid) containing any
  liquid hydrocarbon
• "petroleum Class A" means petroleum having
  a flash-point below twenty-three degrees
  Centigrade"petroleum Class B" means petroleum
  having a flash-point of twenty-three degrees
  Centigrade and above but below sixty-five degrees
  Centigrade"petroleum Class C" means petroleum
  having a flash-point of sixty-five degrees
  Centigrade and above but below ninety-three
  degree Centigrade"flash-point of any petroleum
  means the lowest temperature at which it yields a
  vapour which will give a momentary flash when
  ignited, determined in accordance with the
  provisions of Chapter II and the rules made there
  under.
• Control over Petroleum
• No one shall import, transport or store any
  petroleum except according to the provisions of
  the Act.
• No one shall produce, refine or blend petroleum
  except according to the provisions of the Act.
• This Act gives all the Rule making powers
  regarding petroleum to the Central Govt.

3
All receptacles containing  petroleum Class A
shall have a stamped, embossed, painted or
printed warning, either on the receptacle itself
or, where that is impracticable, displayed near
the receptacle, exhibiting in conspicuous
characters the words "Petrol" or "Motor Spirit",
or an equivalent warning of the dangerous nature
of the petroleumProvided that this section
shall not apply to--(a) any securely stoppered
glass, stoneware or metal receptacle of less
than ten litres capacity containing petroleum
Class A which is not for sale, or(b) a tank
incorporated in a motor conveyance, or attached
to an internal combustion engine, and containing
petroleum intended to be used to generate motive
power for the motor conveyance or engine, or(c)
a pipe-line for the transport of petroleum,
or(d) any tank which is wholly underground,
or(e) any class of receptacles which the Central
Government may, by notification in the Official
Gazette, exempt from the operation of this
section. No licence needed for transport or
storage of limited quantities of petroleum Class
B or petroleum Class C.--(i) petroleum Class B
if the total quantity in his possession at any
one place does not exceed two thousand and five
hundred litres and none of it is contained in a
receptacle exceeding one thousand litres in
capacity or(ii) petroleum Class C if the total
quantity in his possession at any one place does
not exceed forty-five thousand litres and such
petroleum is transported or stored in accordance
with the rules made under section 4. No licence
needed for import, transport or storage of small
quantities of petroleum Class A- (1) A person
need not obtain a licence for the import,
transport or storage of petroleum Class A not
intended for sale if the total quantity in his
possession does not exceed thirty litres,(2)
Petroleum Class A possessed without a licence
under this section shall be kept in securely
stoppered receptacles of glass, stoneware or
metal which shall not, in the case of receptacles
of glass or stoneware, exceed one liter in
capacity or, in the case of receptacles of metal
exceed twenty-five litres in capacity.
4
No licence needed by railway administration
acting as carrier. Notwithstanding anything
contained in this Chapter, a railway
administration as defined in section 3 of the
Indian Railways Act, 1890 (9 of 1890) need not
obtain any licence for the import or transport of
any petroleum in its possession in its capacity
as carrier. The owner of a motor conveyance, who
complies with the requirements of the law for the
time being in force relating to the registration
and licensing of such conveyance and its driver
or pilot and the owner of any stationary internal
combustion engine, shall not be required to
obtain a licence--(a) for the import, transport
or storage of any petroleum contained in any fuel
tank incorporated in the conveyance or attached
to the internal combustion engine, or(b) for the
transport or storage of 1petroleum Class A, not
exceeding 2one hundred litres in quantity in
addition to any quantity possessed under
clause (a),provided the petroleum is intended to
be used to generate motive power for motor
conveyance or engine. Standard Test
Apparatus. (1) A standard apparatus for
determining the 2flash-point of petroleum shall
be deposited with an officer to be appointed in
this behalf by the 1Central Government by
notification in the Official Gazette.(2) Such
apparatus shall be engraved with the words
"Standard Test Apparatus", and shall be verified
and corrected from time to time and replaced when
necessary, in accordance with rules under section
21.(3) The Standard Test Apparatus shall, on
payment of the prescribed fee, be open to
inspection at all reasonable times by any person
wishing to inspect it.
5
Notice of accidents with petroleum.--Whenever
there occurs in or about, or in connection with,
any place in which petroleum is refined, blended
or kept, or any carriage or vessel either
conveying petroleum or on or from which petroleum
is being loaded or unloaded, any accident by
explosion or by fire as a result of the ignition
of petroleum or petroleum vapour attended with
loss of human life or serious injury to person or
property, or of a description usually attended
with such loss or injury, the occupier of the
place or the person for the time being in charge
of the petroleum or the person in charge of the
carriage or the master of the vessel, as the case
may be, shall, within such time and in such
manner as may be prescribed, give notice thereof
and of the attendant loss of human life, or
injury to person or property, if any, to the
nearest Magistrate or to the officer in charge of
the nearest police station and to the 2Chief
Controller of Explosives. Inquiries into
serious accidents with petroleum. (1) The inquiry
be held in all cases where any person has been
killed by an accident which the Magistrate has
reason to believe was the result of the ignition
of petroleum or petroleum vapour. (2) Any
Magistrate empowered to hold an inquest may also
hold an inquiry under the said section into the
cause of any accident which he has reason to
believe was the result of the ignition of
petroleum or petroleum vapour, if such accident
was attended by serious injury to person or
property, notwithstanding that no person was
killed thereby.(3) For the purpose a
Commissioner of Police shall be deemed to be a
Magistrate empowered to hold an inquest.(4) The
result of all inquiries held in pursuance of this
section shall be submitted as soon as may be to
the Central Government, the Chief Controller of
Explosives and the State Government.      
6

• The Petroleum Rules, 2002.
• GENERAL PROVISIONS
• Restriction on delivery and dispatch of
  petroleum.
• No person, shall deliver or dispatch any
  petroleum to anyone in India other than the
  holder of a storage licence issued under these
  rules or his authorized agent or a port authority
  or railway administration or a person who is
  authorized under the Act to store petroleum
  without a licence.
• The petroleum delivered or dispatched under
  sub-rule (1) shall be of the class, and shall not
  exceed the quantity, which the person to whom it
  is delivered or dispatched is authorized to store
  with or without a licence under the Act.
• Approval of containers. Containers exceeding
  one litre in capacity for petroleum Class A and
  five litres in capacity for petroleum Class B or
  petroleum class C, shall be of a type approved by
  the Chief Controller.
• Containers for petroleum Class A.- Containers for
  petroleum Class A shall be constructed of tinned,
  galvanized or externally rust proofed sheet iron
  or steel and be of a type approved by the Chief
  Controller Provided that glass bottles of a
  capacity not exceeding 2.5 litres and of a type
  approved by Chief Controller can be used as a
  container for laboratory chemicals classified as
  petroleum Class A. An air space of not less
  than 5 percent of its capacity shall be kept in
  each container for petroleum Class A.
• Containers for petroleum Class B and Class C
• (1) Containers for petroleum class B or petroleum
  class C shall be constructed of steel or iron and
  be of a type approved by the Chief Controller.
• (2) An air space of not less than 5 percent of
  its capacity shall be kept in each container for
  petroleum Class B and not less than 3 percent of
  its capacity in each container for petroleum
  Class C.

7
Empty receptacles. All empty tanks which had
petroleum Class A or petroleum Class B and empty
containers which had petroleum Class A shall,
except when they are opened for the purpose of
filling or cleaning and rendering them free from
petroleum vapour, be kept securely closed until
they have been thoroughly cleaned and freed from
petroleum vapour. TRANSPORT ON LAND BY
VEHICLES- Tank vehicles Every tank vehicle used
for the transport of petroleum, in bulk on land
shall be built, tested and maintained in
accordance with the requirements laid down in the
Third Schedule and be of a type approved in
writing by the Chief Controller . Tank Capacity.
(1) The net carrying capacity of a tank shall
be 97 percent of its gross carrying capacity in
the case of petroleum Class A and petroleum Class
B and 98 percent, in the case of petroleum Class
C. (2) The net carrying capacity of a tank truck
or a tank semi-trailer shall not exceed 25
kilolitres of petroleum except in case of
air-craft refueller in which case it should not
exceed 50 kilolitres and the net carrying
capacity of any tank trailer should not exceed 5
kilolitres of petroleum. (3) The maximum safe
carrying capacity in weight of petroleum that can
be carried in a tank vehicle shall not exceed the
difference between the unladen weight of the
vehicle and the maximum gross weight permitted
for the class of vehicle under the appropriate
transport regulations.
8
STORAGE OF PETROLEUM REQUIRING LICENSE
Precautions against fire. (1) No person shall
smoke in any installation, storage shed or
service station save in places specifically
authorized by the licensing authority for the
purpose. (2) No person shall carry matches,
fuses or other appliances capable of producing
ignition or explosion in any installation or
storage shed, which is used for the storage of
petroleum. (3) No fire, furnace or other source
of heat or light capable of igniting inflammable
vapour shall be allowed in any installation,
storage shed or service station save in places
specially authorized by the licensing authority
for the purpose. (4) An adequate number of
portable dry chemical powder or any other fire
extinguisher capable of extinguishing oil fires
shall always be kept in every storage shed and
small class B or C installations at strategic
point and all persons employed at such locations
shall be conversant with the use of such fire
extinguishers. Marking of Capacity of Tanks.
The capacity in litres or kilolitres of every
above ground tank in an installation shall be
conspicuously marked on the tank. Construction
of tanks. (1) Every tank or receptacle for the
storage of petroleum in bulk other than a
well-head tank shall be constructed of iron or
steel in accordance with the codes or
specification approved by the Indian Standards
Institution or any other code or specifications
approved in writing by the Chief Controller.
Provided that if the properties of petroleum to
be stored so required or for any other reason it
is necessary to do so, tanks or other receptacles
may be built of materials other than iron or
steel. (2) The tanks or other receptacles shall
be erected on firm foundations or supports of
noncombustible material in accordance with sound
engineering practice. (3) The height of a storage
tank shall not exceed one and a half times its
diameter or twenty metres, whichever is less. (4)
An air space of not less than five percent of the
total capacity of the tank or the space
prescribed in the code or specification referred
to in sub-rule (1), whichever is less, shall be
kept in each tank.
9

• Classification of hazardous area. (1) A
  hazardous area shall be deemed to be.-
• a zone 0 area, if inflammable gas or vapours
  are expected to be continuously present in the
  area or
• a zone 1 area, if inflammable gases or vapours
  are likely to be present in the area under normal
  operating conditions or
• a zone 2 area, if inflammable gases or vapours
  are likely to be present in the area only under
  abnormal operating conditions or failure or
  rupture of an equipment.
• Fixed electric apparatus. (1) No electric
  apparatus shall be allowed in a zone 0 area
  Provided that this sub-rule shall not prohibit
  the use in a zone 0 area of an intrinsically
  safe apparatus of a type approved in writing by
  the Chief Controller and in connection with an
  intrinsically safe circuit, where use of such
  apparatus cannot be completely excluded.
• (2) All electric apparatus installed or
  used in a zone 1 area shall be either. (i) a
  flame proof or intrinsically safe apparatus of a
  type or types approved in writing by the Chief
  Controller or (ii) an industrial-type apparatus
  housed in an enclosure or a room which has been
  made safe by pressurizing or purging with a
  plenum of atmosphere free from significant
  concentration of any inflammable gas or vapour
  and so arranged and inter blocked that in case of
  failure of the pressurizing or purging agent, the
  electricity supply is automatically cut off or a
  warning is automatically given to a person in
  attendance who shall take suitable measures to
  prevent a hazard.
• (3) All electric apparatus installed or
  used in a zone 2 area shall, be either (i) a
  non-sparking apparatus of a type approved by the
  Chief Controller or (ii) an apparatus of any of
  the types permitted under sub-rule (2).

10
Fixed electric wiring. (1) All conductors of an
intrinsically safe circuit in connection with an
intrinsically safe apparatus installed in any
hazardous area shall be so laid as to prevent
invasion of such circuit by current arising from
contact or electrostatic or electromagnetic
induction from any other circuit. Conductors of
intrinsically safe circuits shall be effectively
protected against mechanical damage. (2) All
electric wiring in a hazardous area, other than
the conductors of an intrinsically safe circuit,
shall be effectively sealed at all joints,
mechanically protected and adequately supported
throughout its length and shall consist of (i)
approved armoured cable with correctly designed
terminations, complete with armour clamps, the
armouring being carried and electrical clamps to
provide mechanical support to the cable and
electrical continuity or (ii) approved metal
sheathed cable with correctly designed and
installed terminations or (iii) single or
multicored insulated cables accommodated in solid
drawn heavy gauge screwed galvanized conduits
used in conjunction with approved flameproof
fittings, the conduit being sealed at both ends
and installed in such a manner as to permit
internal condensation to drain to a point or
points from which it may be removed where a
conduit runs from a zone 1 area to a zone 2
area or an area which is not a hazardous area, an
adequate seal shall be provided outside the
boundary of zone 1 area (iv) single or
multicored mineral insulated cable of approved
type in conjunction with approved flame-proof
type glands at all joints and terminations (v)
bare conductors contained in an approved
flameproof or forming part of an intrinsically
safe circuit. (3) Insulated cables without
metallic sheathing or armouring but accommodated
in a conduit shall not be buried in the open
ground in any hazardous area (4) The electric
supply circuits of each electric pump in a
hazardous area shall be - (i) separately
protected by a fuse or circuit breaker set to
operate when the current in the circuit so
exceeds the rated current for such a period of
time as to involve danger and (ii) provided with
an individual isolating switch at the main supply
point for each electric pump including its
integral lighting system, if any.
11

• Restriction on employment of children,
  intoxicated persons and certain other persons -
  No person shall employ, allow or engage a
  person (a) who is below the age of eighteen
  years or
• (b) who is in a state of intoxication or
• (c) who is of mentally or physically challenged,
  for manufacture, storage, sale, loading,
  unloading or transport of
• explosives or to enter any premises licensed
  under these rules.
• Precautions to be observed in handling explosives
  
• No person shall handle or cause to be handled any
  explosive between the hours of sunset and
  sunrise.
• No person shall smoke, and no fires, lights or
  articles or substances of a flammable nature or
  liable to spontaneous ignition, or act to cause
  or communicate fire or explosion such as acids,
  petroleum, carbide of calcium, compressed gases
  or such other hazardous substances, or radio or
  cell phone or radio frequency operated device or
  any such communication system or devices shall be
  allowed at any time within fifteen metres from
  the place where an explosive is stored or at any
  place where an explosive is handled during
  transport one hour before and during such
  handling.
• If any explosive escapes from the package in
  which it is contained, or is split, such
  explosive shall immediately be carefully
  collected and destroyed in a safe manner as
  provided in these rules.
• Prohibition of transport within Streets, Public
  places and other specified areas. (1) No person
  shall transport or cause to be transported any
  explosives on any road within the limits of a
  municipality or cantonment where such a road is
  specifically prohibited for plying vehicles
  carrying explosives.

12
(2) No person shall transport or cause to be
transported any explosive in a road van or
compressor mounted motor truck or tractor unless
such vehicle is licensed under these rules to
transport explosives. The road van shall meet the
requirements laid down in specification 5 of
Schedule VII and compressor mounted motor truck
or tractor shall meet the requirements laid down
in specification 5 thereof and shall be approved
by Chief Controller. (3) No explosive other than
fireworks or safety fuse shall be transported by
any carriage, which is not, a road van or
compressor mounted motor truck or tractor.
Provided that any carriage, which is not a road
van or compressor mounted motor truck or tractor,
may transport any explosive if the distance from
the place of loading to the place of destination
does not exceed ten kilometres and the following
conditions are complied with (a) the transport
of explosives is restricted to the period between
sunrise and sunset (b) the explosives are
accompanied by at least two able-bodied guards
(c) a red flag is displayed on each cart (d) the
packages containing explosives are suitably
covered by a tarpaulin, and secured. (4) No
person shall transport explosives other than
fireworks in any towed vehicle or tow any vehicle
transporting explosives. (5) No other goods
shall be carried with explosives in any vehicle.
13

• Loading, unloading, maintenance and operation of
  road vans.
• After the loading or unloading of explosives in
  or from any such vehicle is commenced, the
  operation shall not be stopped until completed
  and shall be completed as expeditiously as
  possible.
• No bale hooks or other metal tools shall be used
  for the loading, unloading or handling of
  packages containing explosives nor shall any
  package or container of explosives be thrown or
  dropped during such operation.
• The vehicle shall be maintained in safe working
  condition suitable for transport of explosives.
• The driver or operator of a vehicle carrying or
  containing an explosive shall not stop
  unnecessarily or for a longer period than is
  reasonably required, and shall avoid stops or
  places where public safety is in danger.
• The driver or operator of any vehicle carrying or
  containing an explosive shall not drive or
  conduct the same in a dangerous or reckless
  manner.
• Routes passing through centres of dense
  habitation shall, as far as possible, be avoided.
  
• A road van while transporting explosives shall
  always be attended to by two armed guards at the
  expense of the licensee.
• When there is a convoy of two or more vehicles
  transporting explosives, where applicable, a
  space of at least 300 metres shall be maintained
  between each such vehicle.
• Road van transporting explosives shall not be
  driven past fires of any kind on or near the
  highway or other thorough fare.
• The driver of the road van while transporting
  explosives shall, before crossing any unmanned
  railway crossing or before crossing any main
  highway, bring the road van to a full stop and
  proceed only when the way is safely clear.
• The original licence for van granted under these
  rules or attested copy of the same shall always
  be carried in the vehicle.

14

• Accident to the vehicle.(1) Where a vehicle
  transporting explosives is involved in an
  accident, fire or any other occurrence that
  causes a significant delay in the delivery of
  explosives or damage to the vehicle or
  explosives, the driver or any other authorised
  person accompanying the vehicle shall
• comply with all requirements of law relating to
  road accidents
• inform the nearest police station
• inform the licensee who shall- (i) inform the
  Chief Controller and the Controller in whose
  jurisdiction the accident has taken place giving
  the full details of explosives carried and
  accident (ii) arrange for safe storage and
  custody of explosives till examination by the
  Controller if required, and then arrange for
  transport to the destination or place designated
  by the Controller
• (2) In case of a breakdown of road van, the
  driver or the person in charge of the vehicle
  shall
• (a) make or permit to be made minor repairs if
  the repairs can be made without hazard
• (b) where major repairs are required, prevent
  such repairs being made until the explosives are
  transferred to another vehicle or are removed
  from the vehicle and stored under proper security
  at a safe distance from the highway and at least
  three hundred metres from any inhabited premises
  
• (c) inform the licensee who shall in turn inform
  the Chief Controller and the Controller in whose
  jurisdiction the vehicle is broken down giving
  full details of the explosives and the
  circumstances attending the breakdown.
• Fire extinguishers to be provided.(1) Every road
  van shall be provided with two fire extinguishers
  of minimum two kilograms capacity. One of the
  extinguishers shall be capable of dealing with
  fire involving electric circuits and the other,
  with other inflammable components. (2) The fire
  extinguishers shall always be kept in good
  working condition.

15
Mound of magazines.A substantial mound shall be
provided near a magazine, if so required by the
licensing authority. Such mound shall be of a
type approved by the licensing authority and
shall always be maintained in good condition to
provide effective protection. Magazine, store
house, or shop to be at ground level.A magazine,
store house, or shop shall be constructed at
ground level only. A magazine or storehouse shall
be a single storey building. Specification for
construction of a magazine. Magazine used for
storage of explosives shall be constructed as per
Specification 2 of Schedule VII . Store house for
fireworks or safety fuse.Store house shall be
used only for possession of fireworks not
exceeding five thousand kilograms or safety fuse
not exceeding fifty thousand meters and not for
sale. Explosives permitted for possession and
sale from shop. No explosives, other than
fireworks, gun powder, small arm nitro compound
and safety fuse, permitted in licence shall be
stored in a shop for possession and sale. The
shop shall be constructed of a brick, stone or
concrete and the shop shall be closed and secured
so as to prevent unauthorised person from having
access thereto. Safety distances to be
maintained.(1) Factory or magazineThe factory
licensed for manufacture or magazine licensed for
possession, sale or use of explosives shall
maintain safety distance specified in Schedule
VIII and condition of licence, as the case may
be. (2) Store house.The store house licensed
for possession of fireworks or safety fuse shall
maintain safety distance of three metres from
protected works and minimum fifteen metres from
any such premises or any other premises used for
storage of similar explosives, flammable or
hazardous materials. (3) Shop.The shop licensed
for storage and sale of small arms
nitro-compound, fireworks or safety fuse shall be
at a distance of minimum fifteen metres from any
such premises or any other premises used for
storage of similar explosives, flammable or
hazardous materials.
16
Restriction on preparation of charges.(1) An
explosive of one description shall not be
converted into an explosive of another
description. (2) The explosives of Class 2 or
Class 3 shall be used in their original cartridge
packing and such cartridges shall not be cut to
remove explosives for making cartridges of
different sizes. Restriction on conveyance of
explosives to or at the blasting site. (1)
Explosives shall only be conveyed from the
licensed storage premises to near the site in
original unopened packages or in closed
containers used solely for that purpose and
securely locked. No manufacturer shall directly
supply the cartridged explosives for charging of
boreholes at the blasting site. (2) Explosives
shall not be taken to a point nearer than fifty
metres from any site until such site is ready for
charging. (3) Explosives shall not be conveyed in
any vehicle with any other materials, tools or
implements other than that required for the
purpose of blasting. (4) Explosives left over
after the day's work shall be returned to the
licensed premises from which the same was taken.
(5) The carrying box used for carrying explosives
from original packages shall be maintained
thoroughly cleaned and dried and shall be kept
closed when not in use. The containers shall be
provided with either handles or carrying straps
of adequate strength and shall be conspicuously
marked with the word Explosives. (6)
Detonators shall be conveyed in special
containers constructed of non metal or non
conductive material and these shall not be
carried with other explosives. Batteries, dry
cells and other sources of electric energy shall
not be carried in the vehicle carrying
detonators. (7) No detonator shall be taken out
from a case or container unless it is required
for immediate use.
17
SCHEDULE I Part1 Classification of explosives
(see rule 4) Explosives are divided into 8
classes as follows Class 1 Gunpowder Class
Class 2 Nitrate-Mixture Class Class 3
Nitro-Compound Class Class 4 Chlorate-Mixture
Class Class 5 Fulminate Class Class 6
Ammunition Class Class 7 Fireworks Class Class
8 Liquid Oxygen Explosives Class.