Library / B 2103 Federal Republic of Nigeria Official Gazette No. 205
B 2103 Federal Republic of Nigeria Official Gazette No. 205

Page 59 of 82
B 2161
(2)  Such approved exit scheme shall be prescribed in the byelaws of the
commodities exchange for trading in petroleum liquids or clearing house.
PART XVI — PENALTIES ENFORCEMENT MECHANISMS
143.—(1) Penalties in midstream and downstream petroleum operations
shall be as prescribed in the Act and regulations made by the Authority and shall
be based on the nature and impact of the contravention.
(2)  Penalties referred to in subregulation (1) of this regulation may arise as
a result of —
(a)  failure to undertake midstream and downstream petroleum operations
in a manner that ensures —
(i)  the safety of lives and property,
(ii)  safe and sustainable operations, and
(iii)  the protection of the environment;
(b)  failure to undertake midstream and downstream petroleum operations
in accordance with the terms of a licence, permit or authorisation granted by
the Authority;
(c)  financial impropriety;
(d)  mal-operation of facilities;
(e)  unfair market practices;
(f )  unlicensed operations or services; and
(g)  other unlawful activities prohibited by the Act or regulations made by
the Authority.
144.  Where it appears that a licensee or permit holder is contravening, has
contravened or is likely to contravene the Act, regulations made pursuant to the
Act or any of the conditions of its licence or permit, the Authority shall, prior to
imposing a penalty, issue the following notices —
(a)  potential incidence of non-conformity;
(b)  incidence of non-conformity; or
(c)  enforcement order.
145.—(1)  Where a licensee or permit holder is likely to undertake an
activity prohibited under the Act, regulations made pursuant to the Act, or
any of the conditions of its licence or permit, the Authority may serve a
potential incidence of non-conformity notice specifying the activity and
directing the licensee or permit holder not to undertake such activity within
the timeline specified in the notice.
(2)  A potential incidence of non-conformity notice shall be issued by the
Authority to —
(a)  prevent an imminent contravention; and
(b)  provide an opportunity for corrective measures.
Penalties for
contravention
in midstream
and
downstream
petroleum
operations
Notices
Potential
incidence of
non-
conformity