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(published in the Royal Government Gazette, Gen.Vers, Vol. 124, Spec.Pt. 5 Gnor, dated Jan.15th, 2007)

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The Department of Energy Business’ Notification

Re:   Determination of Types and Rates of Reserve of Fuel Oils

B.E. 2549

…………………..

For the sake of appropriately adjusting the rates of fuel reserves to ensure stability

in areas of energy and in line with the prevailing conditions today, by virtue of Section 20, paragraph one of the Fuel Oils Trading Act, B.E. 2543,  therefore, this Notification is hereby issued by the Director-General of the Department of Energy Business as follows:

Clause 1:         This Notification shall be called “The Department of Energy Business’ Notification re: Determination of Types and Rates of Fuel Oils Reserves, B.E. 2549”.

Clause 2:         This Notification shall come into force after expiry of ninety days from the date of its publication in the Government Gazette.

Clause 3:

(1) The following shall be forthwith annulled:

The Department of Commercial Registration’s Notification re:

Determination of Types and Rates of Fuel Oils Reserves, B.E. 2544.

(2)                         The     Department      of     Energy     Business’     Notification      re: Determination of Types and Rates of Fuel Oils Reserves (No.2), B.E. 2547.

(3)                         The     Department      of     Energy     Business’     Notification      re: Determination of Types and Rates of Fuel Oils Reserves (No.3), B.E. 2547.

Clause 4:   Subject to the provisions of 5 and 6, oil traders under Section 7 shall reserve fuels in accordance with the type and rates given in the Table(s) attached hereto.

Clause 5:         The following fuels will be exempted from being included in computation of reserve fuels, namely:

(1)                         Fuels distributed to other oil traders under Section 7 which correspond with the volume of purchase duly notified.

(2)                         Fuels exported for sale overseas.

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(3) industries.

(4) Fuels distributed for use as raw materials in petrochemical or other Crude oil and raw materials used in the refinery of fuels for export sale overseas or for distribution for use as raw materials in petrochemical or other industries.

(5)                         Crude oil and raw materials used by lubricant-refinery industries or other industries in the refinery of non-fuel products.

(6)                         Crude oil and raw materials used in refinery of fuels for sale as raw materials in the refinery industries where such fuel must be of the type reserved pursuant to the Table(s) attached hereto.

Clause 6:         As for the daily reserve of each type of fuel, oil traders may keep them at a level not lower than 70% of the volume in which it is required to reserve albeit the average shall not be less than that set out in Clause 4 once the reserved volume of each type has been computed for each month,

Clause 7:         Reserve of fuels produced from local refineries and distributed/transferred from duty-free zones for the conduct of industries and commerce involving petroleum or petrochemicals which constitute liquids pursuant to laws governing customs, importation: rate of reserves of fuels produced inside the Kingdom shall be applicable.

In the case of fuel imported from overseas and distributed, dispatched/transferred from such duty-free zones under paragraph one: rate of reserves of fuels imported into the Kingdom shall be applicable.

Clause 8:         As for reservation of each category of fuel, fuel in the same group as detailed in the Table(s) attached hereto may be reserved in lieu.

Clause 9:         For reservation of fuels as detailed in the Table(s) attached hereto: oil traders may select to keep a reserve of finished oil products or component oil in lieu of crude oil required to be reserved pursuant to the volume of crude oil in which it is required to reserve, or they may select to keep a reserve of crude oil or component oil in lieu of finished oil products for which it is required to reserve provided that the volume to be reserved in lieu does not exceed 60% of each type of finished oil products to be reserved.

Oil traders who wish to keep reserved stock of fuel in lieu as above-mentioned must comply with the following conditions:

(1)                         They must file an advance application for approval on the fuel refining or mixture formula of component oil to produce finished oil product with the Department of Energy Business.      However, the characteristics and qualities of each formula for the blending of component oil into a finished-oil product must be examined by the Department of Energy Business.

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(2)                         Oil traders selecting to reserve fuel oil pursuant to the formulae already approved must give an advance notice in writing to the Department of Energy Business before the date it wishes to make such reservation in lieu by giving details concerning the type and volume of fuel, duration, tank’s serial number and oil terminal/depot to be used for storage.            However, such fuel tanks and terminal/depot must have already been approved to be used as storage premises of fuel oil as well.

(3)                         Oil traders which have selected to keep fuel oil in lieu under (2) must give a report on the remaining stock of fuel which is kept in lieu as if they were fuel required to be reserved under laws pursuant to the Form giving notification of the volume and storage premises of reserve fuel on a daily outstanding basis. And, where component oil is selected to be kept, blending formula of the component oil selected for use must be notified each time as well by pertinent oil traders.

(4)                         To change the formula that has already been approved for fuel refining or component oil blending or to change or cancel reservation of reserved oil in lieu, advance notice must be given in writing by oil traders to the Department of Energy Business before the date of such revision or cancellation.

(5)                         The filing of an application for approval, notification of reservation in lieu, any revision and cancellation pursuant to this Notification shall be filed or given to the Department of Energy Business.

Given on December 18th, 2006

(sign) Mettha Banterngsuk (Mr. Mettha Banterngsuk)

Director-General, Department of Energy Business