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Gas Business Act 1954 - Act No. 51 of March 31, 1954

# This English translation of the Gas Business Act has been prepared (up to the revisions of Act No. 87 of 2005 (Effective May 1, 2006)) in compliance with the Standard Bilingual Dictionary (March 2006 edition). This is an unofficial translation. Only the original Japanese texts of laws and regulations have legal effect, and the translations are to be used solely as reference material to aid in the understanding of Japanese laws and regulations. The Government of Japan shall not be responsible for the accuracy, reliability or currency of the legislative material provided in this Website, or for any consequence resulting from use of the information in this Website. For all purposes of interpreting and applying law to any legal issue or dispute, users should consult the original Japanese texts published in the Official Gazette.

Gas Business Act (Act No. 51 of March 31, 1954)

Table of Contents

Chapter 1 General Provisions

Chapter 2 General Gas Utility Business

Section 1 Business License

Section 2 Services

Section 3 Accounting

Section 4 Gas Facilities

Subsection 1 Conformity to Technical Standards, etc.

Subsection 2 Independent Safety Measures

Subsection 3 Construction Plan and Inspection

Subsection 4 Designated Examining Body

Subsection 5 Registered Gas Facilities Inspection Body

Chapter 3 Community Gas Utility Business

Chapter 4 Gas Pipeline Service Business

Chapter 5 Gas Supply Business, etc. Other Than General Gas Utility Business, Community Gas Utility Business and Gas Pipeline Service Business

Section 1 Large-Volume Gas Business by Person Other Than General Gas Utility and Gas Pipeline Service Provider

Section 2 Gas Supply Business, etc. Other Than Gas Business

Chapter 6 Gas Equipment

Section 1 Definitions

Section 2 Restrictions on Sale and Labeling

Section 3 Notification of Business, etc.

Section 4 Registration of Inspection Body

Section 5 Domestic Registered Gas Equipment Inspection Body

Section 6 Foreign Registered Gas Equipment Inspection Body

Section 7 Order of Disaster Prevention

Chapter 7 Miscellaneous Provisions

Chapter 8 Penal Provisions

Supplementary Provisions (Extract)

Chapter 1 General Provisions

Article 1 (Purpose)

The purpose of this Act is to protect the interests of gas users and achieve the sound development of Gas Businesses by coordinating the operation of Gas Businesses, and to ensure public safety and prevent pollution by regulating the construction, maintenance and operation of Gas Facilities as well as the manufacture and sale of Gas Equipment.

Article 2 (Definitions)

(1) The term "General Gas Utility Business" as used in this Act shall mean the business of supplying gas via pipelines to meet general demand (excluding, however, businesses generating gas at a gas generating facility prescribed in paragraph 3 and supplying such gas via pipelines).

(2) The term "General Gas Utility" as used in this Act shall mean the person who has obtained a license under the next Article.

(3) The term "Community Gas Utility Business" as used in this Act shall mean the business of generating gas at a simplified gas generating facility specified by a Cabinet Order (hereinafter referred to as a "Specified Gas Generating Facility") and supplying such gas via pipelines to meet general demand at not less than 70 gas service points within one (1) housing complex.

(4) The term "Community Gas Utility" as used in this Act shall mean the person who has obtained a license under Article 37-2.

(5) The term "Gas Pipeline Service Business" as used in this Act shall mean the business of supplying gas via Specified Pipes (which means pipelines with a supply capacity larger than the level specified by an Ordinance of the Ministry of Economy, Trade and Industry; hereinafter the same shall apply) that the supplier independently maintains and operates (limited, however, to the supplying of gas to another person who is engaged in the gas supply business and to Large-Volume Supplies; excluding, however, businesses generating gas at a Specified Gas Generating Facility and supplying such gas via pipelines and businesses conducted by a General Gas Utility within its service area).

(6) The term "Gas Pipeline Service Provider" as used in this Act shall mean the person who has given a notification pursuant to Article 37-7-2, paragraph 1.

(7) The term "Large-Volume Supply" as used in this Act shall mean the supply of gas via pipelines to meet a certain volume of demand from gas users, which satisfies the requirements specified by an Ordinance of the Ministry of Economy, Trade and Industry (excluding, however, a supply of gas to a person having a close association with the supplier as specified by an Ordinance of the Ministry of Economy, Trade and Industry).

(8) The term "Large-Volume Gas Business" as used in this Act shall mean the business of providing a Large-Volume Supply (excluding, however, businesses generating gas at a Specified Gas Generating Facility and supplying such gas via pipelines, businesses conducted by a General Gas Utility within its service area and Gas Pipeline Service Businesses).

(9) The term "Large-Volume Gas Supplier" as used in this Act shall mean the person who provides a Large-Volume Supply by giving a notification pursuant to Article 37-9, paragraph 1.

(10) The term "Gas Business" as used in this Act shall mean a General Gas Utility Business, Community Gas Utility Business, Gas Pipeline Service Business or Large-Volume Gas Business.

(11) The term "Gas Supplier" as used in this Act shall mean a General Gas Utility, Community Gas Utility, Gas Pipeline Service Provider or Large-Volume Gas Supplier.

(12) The term "Transportation Service" as used in this Act shall mean the service pursuant to which a Gas Supplier receives, via pipelines, gas from another person engaged in the gas supply business and simultaneously supplies, in proportion to fluctuations in the quantity of gas used for the gas supply business conducted by said other person within the range specified by an Ordinance of the Ministry of Economy, Trade and Industry, such other person with gas at a point other than where the Gas Supplier received such gas.

(13) The term "Gas Facilities" as used in this Act shall mean gas generating facilities, gas holders, gas purification plants, exhausters, feeding compressors, governors, pipelines, electric power receiving facilities and other facilities installed for the purpose of supplying gas as well as auxiliary facilities thereof, which are used for a Gas Business.

(14) Where a General Gas Utility conducts a Community Gas Utility Business within its service area, such Community Gas Utility Business shall be deemed to be a General Gas Utility Business.

Chapter 2 General Gas Utility Business

Section 1 Business License

Article 3 (Business License)

A person who intends to conduct a General Gas Utility Business shall obtain a license from the Minister of Economy, Trade and Industry.

Article 4 (Application for License)

(1) A person who intends to obtain a license under the preceding Article shall submit a written application to the Minister of Economy, Trade and Industry, stating:

(i) The name and address of the applicant, as well as the name of the representative if the applicant is a juridical person.

(ii) The service area, as well as the service points and the number thereof for each Service Block (which means an aggregate of gas service points pertaining to a Specified Gas Generating Facility located within one (1) housing complex; hereinafter the same shall apply).

(iii) The following matters concerning Gas Facilities.

(a) Regarding gas generating facilities and gas holders, the site where they are to be installed, the type and the number of them by capacity.

(b) Regarding pipelines specified by an Ordinance of the Ministry of Economy, Trade and Industry, the site where they are to be installed, the inside diameter and the gas pressure within the pipelines.

(2) The written application set forth in the preceding paragraph shall be accompanied by drawings of the service area and the service points and other documents specified by an Ordinance of the Ministry of Economy, Trade and Industry.

Article 5 (Standards for License)

(1) The Minister of Economy, Trade and Industry shall not grant a license under Article 3 unless he/she finds that the application for the license under the said paragraph conforms to the following items.

(i) The commencement of the General Gas Utility Business corresponds to general demand.

(ii) The Gas Facilities for the General Gas Utility Business are capable of meeting gas demand in the service area or at the service points.

(iii) The commencement of the General Gas Utility Business will not result in the existence of an excessive number of Gas Facilities within the whole or part of the service area or at the service point.

(iv) The applicant has sufficient financial basis and technical capability to perform the General Gas Utility Business properly.

(v) The General Gas Utility Business's plan can be reliably implemented.

(vi) Where the General Gas Utility Business uses a Specified Gas Generating Facility, it is expected that gas will be supplied smoothly by using the Specified Gas Generating Facility, and a reliable plan is prepared for the purpose of supplying gas promptly at the service points by using other Gas Facilities instead of the Specified Gas Generating Facility.

(vii) The commencement of the General Gas Utility Business is necessary and appropriate in light of public interest.

Article 6 (License Certificate)

(1) The Minister of Economy, Trade and Industry shall, when having granted a license under Article 3, issue a license certificate.

(2) The license certificate shall state:

(i) The date of grant of the license and the license number.

(ii) The name and address of the licensee.

(iii) The service area as well as the service points and the number thereof for each Service Block.

(vi) The following matters concerning Gas Facilities.

(a) Regarding gas generating facilities and gas holders, the site where they are to be installed, the type and the number of them by capacity.

(b) Regarding pipelines specified by an Ordinance of the Ministry of Economy, Trade and Industry under Article 4, paragraph 1, item 3, the site where they are to be installed, the inside diameter and the gas pressure within the pipelines.

Article 7 (Obligation to Commence Business)

(1) A General Gas Utility shall commence its business within the period designated by the Minister of Economy, Trade and Industry, but not to exceed three years (or if it is determined that a particularly long period of time will be required to commence the business as a result of the implementation of a New Housing and Urban Development Project under the New Housing and Urban Development Act (Act No. 134 of 1963), then within the period designated by an Ordinance of the Ministry of Economy, Trade and Industry).

(2) The Minister of Economy, Trade and Industry may, when he/she finds it particularly necessary, designate the period set forth in the preceding paragraph by category of service area or service point.

(3) Where the Minister of Economy, Trade and Industry has received an application from a General Gas Utility, he/she may, when finding justifiable grounds, extend the period designated under paragraph 1.

(4) A General Gas Utility shall, when having commenced its business, notify the Minister of Economy, Trade and Industry to that effect without delay.

Article 8 (Change of Service Area, etc.)

(1) A General Gas Utility shall, when intending to change the matters listed in Article 6, paragraph 2, item 3, obtain permission from the Minister of Economy, Trade and Industry.

(2) The provision of Article 5 shall apply mutatis mutandis to the permission set forth in the preceding paragraph.

(3) The provision of the preceding Article shall apply mutatis mutandis to the case referred to in paragraph 1 (excluding, however, the cases of reducing the service area or the number of service points).

Article 9 (Changes of Gas Facilities, etc.)

(1) A General Gas Utility shall, when intending to make a material change specified by an Ordinance of the Ministry of Economy, Trade and Industry with respect to the matters listed in Article 6, paragraph 2, item 4, notify the Minister of Economy, Trade and Industry of the change.

(2) Where there has been a change to the matters listed in Article 6, paragraph 2, item 2 or the matters listed in item 4 of the said paragraph (excluding, however, those prescribed in the preceding paragraph), a General Gas Utility shall notify the Minister of Economy, Trade and Industry to that effect without delay.

(3) A General Gas Utility that has given a notification pursuant to paragraph 1 shall not make the change to which such notification pertained until 20 days have elapsed from the day when the notification was received.

(4) The Minister of Economy, Trade and Industry may, when he/she finds that the content of the notification given under paragraph 1 is unlikely to hinder the proper performance of the General Gas Utility Business by the General Gas Utility that has given the notification, shorten the period prescribed in the preceding paragraph.

(5) When the Minister of Economy, Trade and Industry finds that the content of the notification given under paragraph 1 is likely to hinder the proper performance of the General Gas Utility Business by the General Gas Utility that has given the notification, he/she may, within 20 days from the day when the notification was received, order the General Gas Utility to change the content of the notification or suspend its performance of the General Gas Business to which such notification pertained.

Article 10 (Assignment and Acceptance of Business, and Merger and Demerger of Juridical Person)

(1) An assignment and acceptance of the whole or a part of a General Gas Utility Business shall not be effective unless approved by the Minister of Economy, Trade and Industry.

(2) A merger and demerger of a juridical person acting as a General Gas Utility (limited, however, to those resulting in the taking over of the whole or a part of a General Gas Utility Business) shall not be effective unless approved by the Minister of Economy, Trade and Industry.

(3) The provisions of Article 5 shall apply mutatis mutandis to the approval set forth in the preceding two paragraphs.

Article 11 (Succession)

(1) In the event of an assignment of the whole of a General Gas Utility Business, or inheritance, merger or demerger of a General Gas Utility (limited, however, to those resulting in the taking over of the whole of the General Gas Utility Business), the assignee of the whole of the General Gas Utility Business, the heir, the juridical person surviving after the merger or the juridical person newly established upon the merger, or the juridical person who has taken over the whole of the General Gas Utility Business upon the demerger shall succeed to the status of the General Gas Utility.

(2) The heir who has succeeded to the status of a General Gas Utility pursuant to the preceding paragraph shall notify the Minister of Economy, Trade and Industry to that effect without delay.

Article 12 Deleted

Article 13 (Suspension and Abolition of Business, and Dissolution of Juridical Person)

(1) A General Gas Utility shall not suspend or abolish the whole or a part of the General Gas Utility Business without obtaining permission from the Minister of Economy, Trade and Industry.

(2) A resolution for the dissolution of a juridical person acting as a General Gas Utility or a consent thereto by all its members shall not be effective unless approved by the Minister of Economy, Trade and Industry.

(3) The Minister of Economy, Trade and Industry shall not grant permission under paragraph 1 or approval under the preceding paragraph unless he/she finds that there is no risk of harm to the public interest as a result of the suspension or abolition of the General Gas Utility Business nor dissolution of the juridical person.

Article 14 (Rescission of Business License, etc.)

(1) Where an General Gas Utility does not commence its business within the period designated under Article 7, paragraph 1 (or, if the period has been extended under paragraph 3 of the said Article, the extended period; hereinafter the same shall apply), the Minister of Economy, Trade and Industry may rescind the license granted under Article 3.

(2) In addition to the case prescribed in the preceding paragraph, where a General Gas Utility has violated this Act or any order issued under this Act or any disposition made thereunder, the Minister of Economy, Trade and Industry may, when he/she finds such violation harmful to the public interest, rescind the license granted under Article 3.

(3) The Minister of Economy, Trade and Industry shall, when having rescinded the license pursuant to any of the preceding two paragraphs, provide a written explanation of the reasons for the rescission to the General Gas Utility.

Article 15

(1) Where a General Gas Utility that has obtained permission under Article 8, paragraph 1 for a change to the matters listed in Article 6, paragraph 2, item 3 does not commence its business within the period designated under Article 7, paragraph 1 as applied mutatis mutandis pursuant to Article 8, paragraph 3, in the new service area or at the new service point, the Minister of Economy, Trade and Industry may rescind that permission.

(2) Where a General Gas Utility does not conduct the General Gas Utility Business in part of its service area or at any of its service points, the Minister of Economy, Trade and Industry may, when he/she finds it harmful to the public interest, reduce the service area by that part or reduce the number of service points.

(3) The provision of paragraph 3 of the preceding Article shall apply mutatis mutandis to the preceding two paragraphs.

Section 2 Services1

Article 16 (Obligation to Supply)

(1) A General Gas Utility shall not refuse to supply gas to meet general demand in its service area or at its service point without justifiable grounds.

(2) A General Gas Utility shall not supply gas via pipelines to meet general demand in any area other than its service area nor at any point other than the service points in its service area, except when the General Gas Utility, having obtained a license/permission or registration or given a notification under this Act or other Acts, supplies gas in a manner for which the license/permission or registration has been granted or of which the notification has been given.

Article 17 (General Supply Provisions, etc.)

(1) A General Gas Utility shall, pursuant to the provision of an Ordinance of the Ministry of Economy, Trade and Industry, formulate general supply provisions to set rates and other supply conditions for gas supply, and obtain approval of the provisions from the Minister of Economy, Trade and Industry. The same shall apply when a General Gas Utility intends to revise the provisions.

(2) The Minister of Economy, Trade and Industry shall, when he/she finds that the application for the approval under the preceding paragraph conforms to the following items, grant approval under the said paragraph.

(i) The rates consist of fair costs incurred as a result of efficient management and fair profits.

(ii) The rates are clearly set as fixed rates or fixed amounts.

(iii) The responsibilities of the General Gas Utility and gas users, as well as the method of sharing expenses between them for pipelines, gas meters and other facilities, are provided for appropriately and clearly.

(iv) Certain persons are not treated in an unfair and discriminatory manner.

(3) Notwithstanding the provision of the second sentence of paragraph 1, in the cases specified by an Ordinance of the Ministry of Economy, Trade and Industry where the rates will be lowered or there will be no risk of harm to the interests of gas users, a General Gas Utility may revise the rates and/or other supply conditions set under general supply provisions that has been approved under paragraph 1 (or, if notification of revision has been given pursuant to the next paragraph, the revised provisions; hereinafter the same shall apply in this Article).

(4) A General Gas Utility shall, when having revised the rates and/or other supply conditions pursuant to the preceding paragraph, notify the Minister of Economy, Trade and Industry of the revised general supply provisions pursuant to the provision of an Ordinance of the Ministry of Economy, Trade and Industry.

(5) The Minister of Economy, Trade and Industry may, when he/she finds that the general supply provisions to which the notification of revision given under the preceding paragraph pertained fails to fall under any of the following items, order the General Gas Utility to revise the general supply provisions, within a reasonable time limit set by the Minister of Economy, Trade and Industry.

(i) The rates are clearly set as fixed rates or fixed amounts.

(ii) The responsibilities of the General Gas Utility and gas users, as well as the method of sharing expenses between them for pipelines, gas meters and other facilities, are provided for appropriately and clearly.

(iii) Certain persons are not treated in an unfair and discriminatory manner.

(6) A General Gas Utility may, where it is expected to contribute to the efficient use of the facilities for its General Gas Utility Business or the efficient management of its business generally, formulate provisions to set supply conditions that differ from such rates and other supply conditions necessary to apply the rates set out in general supply provisions approved under paragraph 1, and make it available to gas users as an alternative to the general supply provisions.

(7) A General Gas Utility shall, when having formulated provisions pursuant to the preceding paragraph, notify the Minister of Economy, Trade and Industry of the provisions (hereinafter referred to as "Optional Supply Provisions") pursuant to the provision of an Ordinance of the Ministry of Economy, Trade and Industry. The same shall apply where a General Gas Utility has revised the provisions.

(8) The Minister of Economy, Trade and Industry may, when he/she finds that the Optional Supply Provisions to which the notification given under the preceding paragraph pertained fails to fall under any of the following items, order the General Gas Utility to revise the Optional Supply Provisions, within a reasonable time limit set by the Minister of Economy, Trade and Industry.

(i) The Optional Supply Provisions contributes to the efficient use of the facilities for the General Gas Utility Business by the General Gas Utility or the efficient management of the business.

(ii) There is no risk of harm to the interests of recipients of gas supply under general supply provisions approved under paragraph 1.

(iii) The rates are clearly set as fixed rates or fixed amounts.

(iv) Certain persons are not treated in an unfair and discriminatory manner.

Article 18 (Order and Disposition on General Supply Provisions, etc.)

(1) The Minister of Economy, Trade and Industry may, when he/she finds that the gas rates and/or other supply conditions have become significantly inappropriate as a result of changes in social and economic circumstances to the extent that they hinder the promotion of public interest, order the General Gas Utility to apply for approval to revise the general supply provisions approved under paragraph 1 of the preceding Article (or, if notification of revision has been given pursuant to paragraph 4 of the said Article, the revised general supply provisions; if revision has been made pursuant to the next paragraph, the revised general supply provisions), within a reasonable time limit set by the Minister of Economy, Trade and Industry.

(2) Where the Minister of Economy, Trade and Industry has issued an order pursuant to the preceding paragraph, he/she may, if no application for approval has been filed within the time limit set forth in the said paragraph, revise the general supply provisions.

Article 19 (Obligation to Publicize General Supply Provisions, etc.)

A General Gas Utility shall, when having obtained approval of general supply provisions pursuant to Article 17, paragraph 1, given a notification of revision of general supply provisions pursuant to paragraph 4 of the said Article, revised general supply provisions pursuant to paragraph 2 of the preceding Article, or given a notification of Optional Supply Provisions pursuant to Article 17, paragraph 7, display the general supply provisions or Optional Supply Provisions at a place accessible to the public in its business office or other office or other workplace from 10 days prior to the implementation of the provisions.

Article 20 (Obligation to Supply Gas under General Supply Provisions, etc.)

A General Gas Utility shall not supply gas to meet general demand in its service area under supply conditions other than those set out in general supply provisions approved under Article 17, paragraph 1 (or, if notification of revision has been given pursuant to paragraph 4 of the said Article, the revised general supply provisions; if revision has been made pursuant to Article 18, paragraph 2, the revised general supply provisions) or those set out in Optional Supply Provisions for which notification was given pursuant to Article 17, paragraph 7; provided, however, that this shall not apply when a General Gas Utility has reached an agreement on a Large-Volume Supply with the recipient of gas supply, or has obtained approval from the Minister of Economy, Trade and Industry because of special circumstances.

Article 21 (Obligation to Measure Calorific Value, etc.)

A General Gas Utility shall, pursuant to the provision of an Ordinance of the Ministry of Economy, Trade and Industry, measure the calorific value, pressure and combustibility of the gas that the General Gas Utility supplies, record the values measured, and preserve such records.

Article 22 (Transportation Service)

(1) A General Gas Utility shall, pursuant to the provision of an Ordinance of the Ministry of Economy, Trade and Industry, formulate Transportation Service provisions to set rates and other supply conditions for a Transportation Service and notify the Minister of Economy, Trade and Industry of the provisions pursuant to the provision of an Ordinance of the Ministry of Economy, Trade and Industry; provided, however, that this shall not apply where the Minister of Economy, Trade and Industry has granted approval based on the recognition that it is not necessary to formulate Transportation Service provisions in light of the possibility of the General Gas Utility receiving any application for a Transportation Service or other circumstances.

(2) The provision of the main clause of the preceding paragraph shall apply mutatis mutandis when a General Gas Utility intends to revise the Transportation Service provisions for which notification was given pursuant to the main clause of the said paragraph.

(3) A General Gas Utility (excluding, however, those that have obtained approval under the proviso of paragraph 1 (hereinafter referred to as an "Approved General Gas Utility)"; hereinafter the same shall apply in this Article) shall not provide a Transportation Service at rates and other supply conditions other than those set out in the Transportation Service provisions for which notification was given pursuant to the main clause of the said paragraph (including the cases where it is applied mutatis mutandis pursuant to the preceding paragraph); provided, however, that this shall not apply when the Minister of Economy, Trade and Industry has granted approval in the case where there are special circumstances that make it difficult to provide the Transportation Service under the Transportation Service provisions.

(4) The Minister of Economy, Trade and Industry may, when he/she finds that the Transportation Service provisions to which the notification given under the main clause of paragraph 1 pertained (including the cases where it is applied mutatis mutandis pursuant to paragraph 2; hereinafter the same shall apply in this Article) fails to fall under any of the following items, order the General Gas Utility to revise the Transportation Service provisions, within a reasonable time limit set by the Minister of Economy, Trade and Industry.

(i) Certain persons are not treated in an unfair and discriminatory manner.

(ii) It is unlikely that the recipients of gas supply under the Transportation Service provisions to which the notification given under the main clause of paragraph 1 pertained would experience any difficulty in receiving the Transportation Service.

(5) A General Gas Utility shall, when having given a notification pursuant to the main clause of paragraph 1, publicize the Transportation Service provisions pursuant to the provision of an Ordinance of the Ministry of Economy, Trade and Industry.

(6) Where a General Gas Utility has refused to provide a Transportation Service without justifiable grounds, the Minister of Economy, Trade and Industry may order the General Gas Industry to provide a Transportation Service.

Article 22-2

(1) An Approved General Gas Utility shall, when intending to provide a Transportation Service, notify the Minister of Economy, Trade and Industry of the rates and other supply conditions for its Transportation Service pursuant to the provision of an Ordinance of the Ministry of Economy, Trade and Industry. The same shall apply where an Approved General Gas Utility intends to revise the rates and/or other conditions.

(2) An Approved General Gas Utility shall not provide a Transportation Service at rates and other supply conditions other than those for which notification was given pursuant to the preceding paragraph.

(3) The Minister of Economy, Trade and Industry may, when he/she finds that the rates and/or other supply conditions to which the notification given under paragraph 1 pertained fail to fall under any of the following items, order the Approved General Gas Utility that has given the notification to revise the rates and/or supply conditions, within a reasonable time limit set by the Minister of Economy, Trade and Industry.

(i) Certain persons are not treated in an unfair and discriminatory manner

(ii) It is unlikely that the recipients of gas supply under the rates and other supply conditions to which the notification given under paragraph 1 pertained would experience any difficulty in receiving the Transportation Service.

(4) Where an Approved General Gas Utility that has given a notification pursuant to paragraph 1 has refused to provide the Transportation Service to which the notification pertained without justifiable grounds, the Minister of Economy, Trade and Industry may order the Approved General Gas Utility to provide the Transportation Service.

(5) Where, with respect to a Transportation Service, the Approved General Gas Utility and the person who is to receive the Transportation Service from the Approved General Gas Utility have failed to consult or reach an agreement through consultation, the Minister of Economy, Trade and Industry may, when he/she finds that there is a risk of harm to the interests of gas users pertaining to the Transportation Service, order the Approved General Gas Utility and the person who is to receive the Transportation Service from the Approved General Gas Utility to conclude an agreement for a Transportation Service with each other, giving instructions on rates and other supply conditions.

(6) Where an order has been issued pursuant to the preceding paragraph, the Approved General Gas Utility that has received the order shall be deemed to have given notification under paragraph 1 of the rates and other supply conditions as instructed under the said paragraph.

Article 22-3 (Accounting concerning Transportation Service and Other Services, etc.)

(1) A General Gas Utility shall, pursuant to the provision of an Ordinance of the Ministry of Economy, Trade and Industry, keep accounts concerning a Transportation Service and other related services.

(2) A General Gas Utility shall, pursuant to the provision of an Ordinance of the Ministry of Economy, Trade and Industry, publicize the results of the accounting set forth in the preceding paragraph.

Article 22-4 (Prohibited Acts in Transportation Service, etc.)

(1) A General Gas Utility shall not conduct any of the following acts.

(i) Use by itself or provide another person with information concerning other persons who supply gas (hereinafter referred to as "Gas Suppliers" in the next item) and gas users, which the General Gas Utility has become aware of in the course of providing a Transportation Service, for purposes other than using it for that service.

(ii) In the course of providing a Transportation Service, apply unreasonable preferential treatment or give benefit or apply unreasonable disadvantageous treatment or cause disadvantages to any particular Gas Supplier.

(2) The Minister of Economy, Trade and Industry may, when he/she finds that a General Gas Utility has committed an act in violation of the preceding paragraph, order that General Gas Utility to discontinue or correct that act.

Article 22-5 (Gas Supply outside Service Area)

(1) A General Gas Utility shall, when intending to conduct a Gas Pipeline Service Business in an area other than its service area, notify the Minister of Economy, Trade and Industry, pursuant to the provision of an Ordinance of the Ministry of Economy, Trade and Industry, of the site where the Specified Pipes for the business are to be installed, the inside diameter, and the gas pressure within the Specified Pipes.

(2) The notification given under the preceding paragraph shall be accompanied by documents specified by an Ordinance of the Ministry of Economy, Trade and Industry.

(3) A General Gas Utility that has given a notification under paragraph 1 shall not use the Specified Pipes to which the notification pertained for the Gas Pipeline Service Business until 30 days have elapsed from the day when the notification was received, if the Specified Pipes are to be installed in the service area of another General Gas Utility.

(4) When the Minister of Economy, Trade and Industry finds, in the case referred to in the preceding paragraph, that the use of the Specified Pipes to which the notification given under paragraph 1 pertained for the Gas Pipeline Service Business is unlikely to harm the interests of gas users in the service area of the other General Gas Utility prescribed in the preceding paragraph, he/she may shorten the period prescribed in the said paragraph.

(5) When the Minister of Economy, Trade and Industry finds, in the case referred to in paragraph 3, that the use of the Specified Pipes to which the notification given under paragraph 1 pertained for the Gas Pipeline Service Business is likely to harm the interests of gas users in the service area of the other General Gas Utility prescribed in paragraph 3, he/she may, within 30 days from the day when the notification was received (or, if the period prescribed in paragraph 3 has been extended pursuant to the next paragraph, the extended period), order the General Gas Utility that has given the notification to change the content of the notification or suspend its use of the Specified Pipes to which such notification pertained.

(6) When the Minister of Economy, Trade and Industry has, in the case referred in paragraph 3, reasonable grounds for believing that it will take a considerable period of time to examine whether or not the use of the Specified Pipes to which the notification given under paragraph 1 pertained for the Gas Pipeline Service Business is likely to harm the interests of gas users in the service area of the other General Gas Utility prescribed in paragraph 3 and that such examination will not be completed within the period prescribed in the said paragraph, he/she may extend the period set forth in the said paragraph by up to 30 days. In this case, the Minister of Economy, Trade and Industry shall notify the General Gas Utility that has given the notification of the extended period and the reason for extension without delay.

(7) A General Gas Utility shall, when intending to change the matters to which the notification given under paragraph 1 pertained, notify the Minister of Economy, Trade and Industry to that effect.

(8) The provisions of paragraphs 2 to 6 shall apply mutatis mutandis to the notification set forth in the preceding paragraph. In this case, the phrase "shall not use the Specified Pipes to which the notification pertained for the Gas Pipeline Service Business" in paragraph 3 shall be deemed to be replaced with "shall not make the change; provided, however, that this shall not apply to any minor change specified by an Ordinance of the Ministry of Economy, Trade and Industry," and the phrase "the use of the Specified Pipes to which the notification given under paragraph 1 pertained for the Gas Pipeline Service Business" in paragraphs 4 to 6 shall be deemed to be replaced with "the change to which the notification given under paragraph 1 pertained."

Article 23

(1) A General Gas Utility shall, when intending to provide a Large-Volume Supply in an area other than its service area (excluding, however, the cases where a General Gas Utility intends to generate gas at a Specified Gas Generating Facility and supply such gas via pipelines), notify the Minister of Economy, Trade and Industry of the recipient of the gas supply and other matters specified by an Ordinance of the Ministry of Economy, Trade and Industry.

(2) A General Gas Utility that has given a notification under the preceding paragraph shall not provide the Large-Volume Supply to which the notification pertained until 30 days have elapsed from the day when the notification was received.

(3) The Minister of Economy, Trade and Industry may, if he/she finds that the Large-Volume Supply to which the notification given under paragraph 1 pertained conforms to the following items, shorten the period prescribed in the preceding paragraph.

(i) There is no risk of harm to the proper performance of the General Gas Utility Business.

(ii) Where the Large-Volume Supply is to be provided in the service area of another General Gas Utility, there is no risk of harm to the interests of gas users within the other General Gas Utility's service area as a result of the provision of the Large-Volume Supply.

(iii) Where the Large-Volume Supply is to be provided in an area other than the service areas of other General Gas Utilities where the commencement of a General Gas Utility Business is expected, there is no risk of harm to the commencement of the General Gas Utility Business as a result of the provision of the Large-Volume Supply.

(4) When the Minister of Economy, Trade and Industry finds that the Large-Volume Supply to which the notification given under paragraph 1 pertained fails to conform to any of the items of the preceding paragraph, he/she may, within 30 days from the day when the notification was received (or, if the period prescribed in paragraph 2 has been extended pursuant to the next paragraph, the extended period), order the General Gas Utility that has given the notification to change the content of the notification or suspend its provision of the Large-Volume Supply to which such notification pertained.

(5) The Minister of Economy, Trade and Industry may, when he/she has reasonable grounds for believing that it will take a considerable period of time to examine whether or not the Large-Volume Supply to which the notification given under paragraph 1 pertained conforms to the items of paragraph 3 and that such examination will not be completed within the period prescribed in paragraph 2, extend the period set forth in the said paragraph by up to 30 days. In this case, the Minister of Economy, Trade and Industry shall notify the General Gas Utility that has given the notification of the extended period and the reason for extension without delay.

Article 24

A General Gas Utility shall, when intending to supply gas via pipelines to a gas user (limited, however, to those who have a close association with the General Gas Utility as specified by an Ordinance of the Ministry of Economy, Trade and Industry under Article 2, paragraph 7) in an area other than its service area, notify the Minister of Economy, Trade and Industry to that effect, with a document describing such association with the recipient of the gas supply attached thereto.

Article 25 (Gas Supply Plan)

(1) A General Gas Utility shall, pursuant to the provision of an Ordinance of the Ministry of Economy, Trade and Industry, prepare each business year a plan on the supply of gas for such a period from the said business year as specified by an Ordinance of the Ministry of Economy, Trade and Industry, and notify the Minister of Economy, Trade and Industry of the plan prior to the start of the business year.

(2) A General Gas Utility shall, when having revised the gas supply plan, notify the Minister of Economy, Trade and Industry of the revised matters without delay.

(3) A General Gas Utility shall, when having given a notification pursuant to paragraph 1, display the matters in the gas supply plan which are specified by an Ordinance of the Ministry of Economy, Trade and Industry, at a place accessible to the public in its business office or other office or other workplace without delay. The same shall apply where a General Gas Utility has given a notification pursuant to the preceding paragraph.

(4) The Minister of Economy, Trade and Industry may, when he/she finds it particularly necessary to revise the gas supply plan in order to promote public interest, recommend that the General Gas Utility should revise the gas supply plan.

(5) The Minister of Economy, Trade and Industry may, when he/she finds that the failure of a General Gas Utility to implement its gas supply plan hinders the promotion of public interest, recommend that the General Gas Utility should implement the gas supply plan without fail.

Article 25-2 (Order for Improvement)

(1) The Minister of Economy, Trade and Industry may order a General Gas Utility to improve its operational procedure for supplying gas in the cases where: the General Gas Utility fails to make the necessary repairs or take other measures immediately to eliminate any stoppage to the gas supply arising from an accident; the General Gas Utility fails to conduct an investigation under Article 40-2, paragraph 2 or to give a notification under paragraph 3 of the said Article or applies an inappropriate method for investigation or notification; or the minister finds that the interest of gas users is adversely affected because the General Gas Utility employs inappropriate operational procedures for supplying gas.

(2) The Minister of Economy, Trade and Industry may, when he/she finds that because a General Gas Utility inappropriately manages the business of providing a Large-Volume Supply, there is a risk of harm to the interests of gas users other than the gas users pertaining to the Large-Volume Supply, order the General Gas Utility to take necessary measures to improve the management of the business of providing the Large-Volume Supply.

Article 25-3 (Recommendation on Adjustment of Service Areas, etc.)

The Minister of Economy, Trade and Industry may, when he/she finds it necessary and appropriate for two or more General Gas Utilities to adjust their service areas or manage their businesses in an integrated manner in order to promote public interest, make a recommendation to the General Gas Utilities to that effect.

Section 3 Accounting

Article 26 (Keeping of Accounts, etc.)

(1) A General Gas Utility shall, pursuant to the provision of an Ordinance of the Ministry of Economy, Trade and Industry, keep accounts by establishing its business year and classification of items of accounts, as well as forms of balance sheets, profit and loss statements and other statements on finance and accounting.

(2) A General Gas Utility shall, pursuant to the provision of an Ordinance of the Ministry of Economy, Trade and Industry, submit statements on finance and accounting prescribed in the preceding paragraph to the Minister of Economy, Trade and Industry after the end of each business year.

Article 26-2 (Keeping of Accounts by Category of Service, etc.)

(1) A General Gas Utility shall, pursuant to the provision of an Ordinance of the Ministry of Economy, Trade and Industry, keep accounts by category of service as follows.

(i) Service for providing a Large-Volume Supply.

(ii) Service for supplying gas to meet general demand (excluding, however, such service listed in the preceding item).

(iii) Services other than those listed in the preceding two items.

(2) A General Gas Utility shall, pursuant to the provision of an Ordinance of the Ministry of Economy, Trade and Industry, submit documents stating the status of income and expenditure for each category of service prescribed in the preceding paragraph to the Minister of Economy, Trade and Industry after the end of each business year.

Article 27 (Depreciation, etc.)

The Minister of Economy, Trade and Industry may, when he/she finds it particularly necessary in order to ensure the proper performance of a General Gas Utility Business, order the General Gas Utility to record a reasonable amount of depreciation of fixed assets used for the General Gas Utility Business by specifying a method or amount or set aside reserves or allowances by specifying a method or amount.

Section 4 Gas Facilities

Subsection 1 Conformity to Technical Standards, etc.

Article 28 (Maintenance of Gas Facilities, etc.)

(1) A General Gas Utility shall maintain Gas Facilities to be used for the General Gas Utility Business (including a Gas Pipeline Service Business and a Large-Volume Gas Business conducted by a General Gas Utility; hereinafter the same shall apply in this Section) to ensure that they conform to the technical standards established by an Ordinance of the Ministry of Economy, Trade and Industry.

(2) The Minister of Economy, Trade and Industry may, when he/she finds that Gas Facilities to be used for a General Gas Utility Business do not conform to the technical standards established by an Ordinance of the Ministry of Economy, Trade and Industry under the preceding paragraph, order the General Gas Utility to repair or alter the Gas Facilities to ensure conformity to the technical standards, or order the General Gas Utility to relocate the Gas Facilities or suspend the use of them, or restrict the General Gas Utility from using them.

(3) The Minister of Economy, Trade and Industry may, when he/she finds it urgently necessary in order to maintain public safety or prevent the occurrence of a disaster, order a General Gas Utility to relocate its Gas Facilities or suspend the use of them, restrict the General Gas Utility from using them, or order the General Gas Utility to dispose of the gas contained in the Gas Facilities.

Article 29 (Obligation to Inspect Gas Components)

A General Gas Utility shall, pursuant to the provision of an Ordinance of the Ministry of Economy, Trade and Industry, inspect whether or not the quantity of any component of the gas that the General Gas Utility supplies, which might cause bodily harm or inflict damage to objects, surpasses the level specified by an Ordinance of the Ministry of Economy, Trade and Industry, record the quantity and preserve such records.

Subsection 2 Independent Safety Measures

Article 30 (Safety Regulations)

(1) A General Gas Utility shall, in order to ensure safety of the construction, maintenance and operation of the Gas Facilities to be used for the General Gas Utility Business, establish safety regulations pursuant to the provision of an Ordinance of the Ministry of Economy, Trade and Industry, and notify the Minister of Economy, Trade and Industry of the regulations before the commencement of the business (in the case of facilities requiring self-inspection set forth in Article 36-2-2, paragraph 1, before the commencement of the construction of the facilities).

(2) A General Gas Utility shall, when having revised the safety regulations, notify the Minister of Economy, Trade and Industry of the revised matters without delay.

(3) The Minister of Economy, Trade and Industry may, when he/she finds it necessary in order to ensure safety of the construction, maintenance, and operation of Gas Facilities to be used for a General Gas Utility Business, order the General Gas Utility to revise the safety regulations.

(4) A General Gas Utility and employees thereof shall observe the safety regulations.

Article 31 (Chief Gas Engineer)

(1) A General Gas Utility shall, pursuant to the provision of an Ordinance of the Ministry of Economy, Trade and Industry, appoint one or more chief gas engineers from among persons who have a chief gas engineer's license and have work experience specified by an Ordinance of the Ministry of Economy, Trade and Industry, in order to cause them to supervise the safety of the construction, maintenance, and operation of the Gas Facilities to be used for the General Gas Utility Business.

(2) A General Gas Utility shall, when having appointed a chief gas engineer pursuant to the preceding paragraph, notify the Minister of Economy, Trade and Industry to that effect without delay. The same shall apply when a General Gas Utility has dismissed the chief gas engineer.

Article 32 (Chief Gas Engineer's License)

(1) The types of chief gas engineer's license shall be a Class-A Chief Gas Engineer's License, Class-B Chief Gas Engineer's License and Class-C Chief Gas Engineer's License.

(2) The scope of the construction, maintenance and operation of the Gas Facilities for which a person who has a chief gas engineer's license is in charge of safety supervision shall be specified by an Ordinance of the Ministry of Economy, Trade and Industry by type of chief gas engineer's license prescribed in the preceding paragraph.

(3) No person other than those who fall under any of the following items may obtain a chief gas engineer's license.

(i) A person who has passed an examination for a chief gas engineer's license.

(ii) A person who has been recognized by the Minister of Economy, Trade and Industry as having equal or more knowledge and skills than the person set forth in the preceding item.

(4) The Minister of Economy, Trade and Industry may choose not to grant a chief gas engineer's license to persons who fall under any of the following items.

(i) A person who was ordered to return a chief gas engineer's license pursuant to the next Article, before the elapse of a period of one year since the person was thus ordered.

(ii) A person who was sentenced to a fine or severer punishment for violation of this Act or any order issued under this Act or any disposition made thereunder, before the elapse of a period of two years since the person served out the sentence or ceased to be subject to the sentence.

(5) The procedural matters concerning the grant of a chief gas engineer's license shall be specified by an Ordinance of the Ministry of Economy, Trade and Industry.

Article 33

Where a person who has a chief gas engineer's license has violated this Act or any order issued under this Act or any disposition made thereunder, the Minister of Economy, Trade and Industry may order that person to return the chief gas engineer's license.

Article 33-2 (Entrustment of Licensing Affairs)

(1) The Minister of Economy, Trade and Industry may, pursuant to the provision of a Cabinet Order, entrust the whole or a part of the affairs concerning chief gas engineer's licenses (excluding, however, the affairs concerning the return of a chief gas engineer's license or other affairs specified by a Cabinet Order; hereinafter referred to as "Licensing Affairs") to a Designated Examining Body set forth in paragraph 3 of the next Article.

(2) Current or former officers or employees of a Designated Examining Body entrusted with the Licensing Affairs under the preceding paragraph shall not divulge any secrets that they have become aware of in the course of administering the entrusted Licensing Affairs.

Article 34 (Examination for Chief Gas Engineer's License)

(1) An examination for a chief gas engineer's license shall be conducted with respect to the knowledge and skills required for ensuring safety in the construction, maintenance and operation of the Gas Facilities.

(2) An examination for a chief gas engineer's license shall be conducted by the Minister of Economy, Trade and Industry once a year for each type of chief gas engineer's license.

(3) The Minister of Economy, Trade and Industry may designate a person (hereinafter referred to as a "Designated Examining Body") and cause such person to administer the affairs concerning an examination for a chief gas engineer's license (hereinafter referred to as "Examination Affairs").

(4) The subjects of an examination for a chief gas engineer's license, procedure for participating in the examination and other details concerning the examination for a chief gas engineer's license shall be specified by an Ordinance of the Ministry of Economy, Trade and Industry.

Article 35 (Obligations of Chief Gas Engineer)

(1) A chief gas engineer shall perform his/her duties in good faith.

(2) People who are engaged in the construction, maintenance or operation of Gas Facilities used for the General Gas Utility Business shall follow the instructions given by the chief gas engineer to ensure the safety thereof.

Article 36 (Order of Dismissal of Chief Gas Engineer)

Where a chief gas engineer has violated this Act or any order issued under this Act or any disposition made thereunder, or it seems that it would adversely affect the safety of the construction, maintenance and operation of Gas Facilities used for the General Gas Utility Business to cause the chief gas engineer to perform his/her duties, the Minister of Economy, Trade and Industry may order the General Gas Utility to dismiss the chief gas engineer.

Subsection 3 Construction Plan and Inspection

Article 36-2 (Construction Plan)

(1) A General Gas Utility shall, when intending to implement a construction project2 to install or modify Gas Facilities to be used for the General Gas Utility Business, when such construction project has been specified by an Ordinance of the Ministry of Economy, Trade and Industry, notify the Minister of Economy, Trade and Industry of the plans for the construction project; provided, however, that this shall not apply to any unavoidable temporary work to be implemented in the event of loss of or damage to Gas Facilities or in the event of a disaster or other emergency.

(2) A General Gas Utility shall, when intending to revise the construction plan for which notification was given pursuant to the preceding paragraph, notify the Minister of Economy, Trade and Industry to that effect; provided, however, that this shall not apply to any minor revision specified by an Ordinance of the Ministry of Economy, Trade and Industry.

(3) A General Gas Utility that has given a notification pursuant to any of the preceding two paragraphs shall not commence the construction project to which the notification pertained until 30 days have elapsed from the day when the notification was received.

(4) The Minister of Economy, Trade and Industry may, when he/she finds that the construction plan for which notification was given pursuant to paragraph 1 or paragraph 2 conforms to the following items (or item 1 in the case of a construction plan for Gas Facilities to be used exclusively for the Large-Volume Gas Business; hereinafter the same shall apply in the next paragraph), shorten the period prescribed in the preceding paragraph.

(i) The Gas Facilities conform to the technical standards established by an Ordinance of the Ministry of Economy, Trade and Industry under Article 28, paragraph 1.

(ii) The Gas Facilities are technically appropriate for assuring the smooth supply of gas.

(5) When the Minister of Economy, Trade and Industry finds that the construction plan for which notification was given pursuant to paragraph 1 or paragraph 2 fails to conform to the items of the preceding paragraph, he/she may, within 30 days from the day when the notification is received, order the General Gas Utility to revise or abolish the construction plan.

(6) Where, with respect to a construction plan for which notification was given pursuant to paragraph 1 or paragraph 2, it seems impossible to determine whether or not the Gas Facilities pertaining to the construction plan conform to the technical standards established by an Ordinance of the Ministry of Economy, Trade and Industry under Article 28, paragraph 1 without inspecting the construction process, the Minister of Economy, Trade and Industry may, when it is necessary in order to determine conformity to the technical standards, order that the construction process should be inspected by a person registered by the Minister of Economy, Trade and Industry under paragraph 1 of the next Article. In this case, the Minister of Economy, Trade and Industry shall, within the period prescribed in the preceding paragraph, notify the General Gas Utility that has given a notification pursuant to paragraph 1 or paragraph 2 to that effect with the reasons therefor.

(7) In the case referred to in the proviso of paragraph 1, the General Gas Utility shall, after having commenced the construction project, notify the Minister of Economy, Trade and Industry to that effect without delay.

(8) In the case referred to in the proviso of paragraph 2, the General Gas Utility shall, after having revised the construction plan, notify the Minister of Economy, Trade and Industry of the revised construction plan without delay; provided, however, that this shall not apply to any cases specified by an Ordinance of the Ministry of Economy, Trade and Industry.

Article 36-2-2 (Pre-use Inspection)

(1) A General Gas Utility shall not use Gas Facilities to be installed or modified according to a construction plan for which notification was given pursuant to paragraph 1 or paragraph 2 of the preceding Article (in the case where an order has been issued with respect to the construction plan for Gas Facilities pursuant to paragraph 5 of the said Article, but notification has not yet been given pursuant to paragraph 1 or paragraph 2 of the said Article, such facilities shall be excluded), which are specified by an Ordinance of the Ministry of Economy, Trade and Industry, unless and until the General Gas Utility conducts a self-inspection of the facilities and then undergoes and passes an inspection conducted by a person registered by the Minister of Economy, Trade and Industry pursuant to the provision of an Ordinance of the Ministry of Economy, Trade and Industry to confirm that the results of the self-inspection conform to the items of the next paragraph (including an inspection of the construction process as ordered under paragraph 6 of the said Article); provided, however, that this shall not apply to the cases specified by an Ordinance of the Ministry of Economy, Trade and Industry.

(2) Gas Facilities that conform to all of the following items shall pass the inspection to be conducted by a person registered by the Minister of Economy, Trade and Industry set forth in the preceding paragraph.

(i) The construction project for the facilities has been implemented according to the construction plan for which notification was given pursuant to paragraph 1 or paragraph 2 of the preceding Article (including such plan following any minor revision specified by an Ordinance of the Ministry of Economy, Trade and Industry under the proviso of the said paragraph).

(ii) The facilities conform to the technical standards established by an Ordinance of the Ministry of Economy, Trade and Industry under Article 28, paragraph 1.

(3) A General Gas Utility shall, pursuant to the provision of an Ordinance of the Ministry of Economy, Trade and Industry, prepare records of a self-inspection conducted under paragraph 1, and preserve such records.

Article 36-2-3

(1) Where a person registered by the Minister of Economy, Trade and Industry as set forth in paragraph 1 of the preceding Article has conducted the inspection under the said paragraph with respect to the Gas Facilities prescribed in the said paragraph (excluding, however, those to be used exclusively for a Large-Volume Gas Business) and finds it unavoidable, that person may regard the Gas Facilities as having provisionally passed the inspection, designating the period and method of use thereof. In this case, the person registered by the Minister of Economy, Trade and Industry as set forth in the said paragraph shall obtain approval from the Minister of Economy, Trade and Industry in advance.

(2) Notwithstanding the provision of paragraph 1 of the preceding Article, Gas Facilities regarded as having provisionally passed the inspection pursuant to the preceding paragraph shall not be precluded from being used within the period specified under the preceding paragraph by the method specified under the said paragraph.

Article 36-2-4 (Periodic Self-Inspection)

A General Gas Utility shall, pursuant to the provision of an Ordinance of the Ministry of Economy, Trade and Industry, conduct a self-inspection periodically with respect to the Gas Facilities to be used for the General Gas Utility Business, which are specified by an Ordinance of the Ministry of Economy, Trade and Industry, prepare records of the inspection, and preserve such records.

Subsection 4 Designated Examining Body

Article 36-2-5 (Designation)

(1) The designation set forth in Article 34, paragraph 3 shall be made pursuant to the provision of an Ordinance of the Ministry of Economy, Trade and Industry upon application by a person who intends to administer Examination Affairs.

(2) Upon having made the designation under Article 34, paragraph 3, the Minister of Economy, Trade and Industry shall not administer Examination Affairs.

Article 36-3 (Disqualification)

A person who falls under any of the following items may not receive designation under Article 34, paragraph 3.

(i) A person who was sentenced to a fine or severer punishment for violation of this Act or any order issued under this Act, before the elapse of a period of two years since that person served out the sentence or ceased to be subject to the sentence.

(ii) A person whose designation was rescinded pursuant to Article 36-13, paragraph 2, before the elapse of a period of two years since the date of rescission.

(iii) A person, any of whose officers in charge of its business falls under any of the following conditions.

(a) A person who falls under item 1.

(b) A person who was dismissed by an order under Article 36-9, before the elapse of a period of two years since the date of dismissal.

Article 36-4 (Standards for Designation)

The Minister of Economy, Trade and Industry shall not make the designation under Article 34, paragraph 3 unless no other person has received designation under the said paragraph and the application for designation filed under the said paragraph conforms to the following items.

(i) The applicant's plan for the administration of the Examination Affairs, which covers personnel, equipment, methods of administering the Examination Affairs and other matters, is appropriate for the proper administration of the Examination Affairs.

(ii) The applicant has sufficient financial basis and technical capability to implement properly the plan for the administration of the Examination Affairs set forth in the preceding item.

(iii) The applicant is a juridical person established pursuant to Article 34 of the Civil Code (Act No. 89 of 1896).

(iv) Where the applicant is engaged in services other than Examination Affairs, there is no risk that the applicant will fail to administer fairly the Examination Affairs by performing such other services.

Article 36-5 (Operational Rules for Examination Affairs)

(1) A Designated Examining Body shall formulate rules concerning the administration of Examination Affairs (hereinafter referred to as the "Operational Rules for Examination Affairs"), and obtain approval of the rules from the Minister of Economy, Trade and Industry. The same shall apply where a Designated Examining Body intends to revise the rules.

(2) The matters to be provided for by the Operational Rules for Examination Affairs shall be specified by an Ordinance of the Ministry of Economy, Trade and Industry.

(3) The Minister of Economy, Trade and Industry may, when he/she finds that the Operational Rules for Examination Affairs approved under paragraph 1 have become inappropriate for the fair administration of the Examination Affairs, order the Designated Examining Body to revise the Operational Rules for Examination Affairs.

Article 36-6 (Suspension and Abolition of Examination Affairs)

A Designated Examining Body shall not suspend nor abolish the whole or a part of the Examination Affairs unless it is permitted by the Minister of Economy, Trade and Industry.

Article 36-7 (Business Plan, etc.)

(1) A Designated Examining Body shall, prior to the beginning of each business year (or without delay after designation under Article 34, paragraph 3 in the case of a business year that contains the date of designation), prepare a business plan and income and expenditure budget for the business year, and obtain approval of them from the Minister of Economy, Trade and Industry. The same shall apply when a Designated Examining Body intends to revise them.

(2) A Designated Examining Body shall, within three months after the end of each business year, prepare a business report and statement of accounts, and submit them to the Minister of Economy, Trade and Industry.

Article 36-8 (Appointment and Dismissal of Officers)

The appointment and dismissal of an officer of a Designated Examining Body shall not be effective unless approved by the Minister of Economy, Trade and Industry.

Article 36-9 (Order of Dismissal of Officer)

Where any officer of a Designated Examining Body has violated this Act or any order issued under this Act or the Operational Rules for Examination Affairs or committed any inappropriate act in connection with the Examination Affairs, the Minister of Economy, Trade and Industry may order the Designated Examining Body to dismiss the officer.

Article 36-10 (Examiner)

(1) A Designated Examining Body shall, when administering the Examination Affairs, cause its examiners to administer the affairs in determining whether or not an applicant for a chief gas engineer's license has the necessary knowledge and skills as a chief gas engineer.

(2) A Designated Examining Body shall appoint examiners from among persons who satisfy the requirements specified by an Ordinance of the Ministry of Economy, Trade and Industry.

(3) A Designated Examining Body shall, when having appointed examiners, notify the Minister of Economy, Trade and Industry to that effect pursuant to the provision of an Ordinance of the Ministry of Economy, Trade and Industry. The same shall apply where any examiner has been replaced.

(4) The provisions of the preceding Article shall apply mutatis mutandis to examiners.

Article 36-11 (Obligation of Confidentiality, etc.)

(1) Current or former officers or employees (including examiners; hereinafter the same shall apply in the next paragraph) of a Designated Examining Body shall not divulge secrets that they have become aware of in the course of administering the Examination Affairs.

(2) With regard to the application of the Penal Code (Act No. 45 of 1907) and other penal provisions, officers or employees of a Designated Examining Body who are engaged in Examination Affairs shall be regarded as personnel engaged in public services under laws and regulations.

Article 36-12 (Order for Conformity, etc.)

(1) The Minister of Economy, Trade and Industry may, when he/she finds that a Designated Examining Body has ceased to conform to any of the items of Article 36-4 (excluding item 3; hereinafter the same shall apply in this paragraph), order the Designated Examining Body to take any necessary measures to ensure conformity to the provisions of the said items.

(2) In addition to what is provided for in the preceding paragraph, the Minister of Economy, Trade and Industry may, when he/she finds it necessary for the enforcement of this Act, issue to a Designated Examining Body an order necessary for the supervision of the Examination Affairs.

Article 36-13 (Rescission of Designation, etc.)

(1) Where a Designated Examining Body has ceased to conform to Article 36-4, item 3, the Minister of Economy, Trade and Industry shall rescind the designation made under Article 34, paragraph 3.

(2) Where a Designated Examining Body falls under any of the following items, the Minister of Economy, Trade and Industry may rescind the designation made under Article 34, paragraph 3, or order the Designated Examining Body to suspend the whole or a part of the Examination Affairs within a specified period.

(i) Where the Designated Examining Body has violated the provisions of this Subsection.

(ii) Where the Designated Examining Body now falls under Article 36-3, item 1 or item 3.

(iii) Where the Designated Examining Body has not administered the Examination Affairs in accordance with the Operational Rules for Examination Affairs approved under Article 36-5, paragraph 1.

(iv) Where the Designated Examining Body has violated an order issued under Article 36-5, paragraph 3, Article 36-9 (including the cases where it is applied mutatis mutandis pursuant to Article 36-10, paragraph 4), or the preceding Article.

(v) Where the Designated Examining Body has received designation under Article 34, paragraph 3 by wrongful means.

Article 36-14 (Bookkeeping)

A Designated Examining Body shall, pursuant to the provision of an Ordinance of the Ministry of Economy, Trade and Industry, keep books, state in such books the matters concerning the Examination Affairs specified by an Ordinance of the Ministry of Economy, Trade and Industry, and preserve such books.

Article 36-15 (Examination Conducted by Minister of Economy, Trade and Industry)

(1) The Minister of Economy, Trade and Industry may him/herself administer the whole or a part of the Examination Affairs of a Designated Examining Body in the cases where: the Designated Examining Body has suspended the whole or a part of the Examination Affairs with permission granted under Article 36-6; an order has been issued to the Designated Examining Body to suspend the whole or a part of the Examination Affairs pursuant to Article 36-13, paragraph 2; or the minister finds it necessary to do so because it has become difficult for the Designated Examining Body to administer the whole or a part of the Examination Affairs as a result of a natural disaster or otherwise.

(2) The transfer of the Examination Affairs and other necessary matters, in the cases where the Minister of Economy, Trade and Industry him/herself administers the whole or a part of the Examination Affairs pursuant to the preceding paragraph, a Designated Examining Body abolishes the whole or a part of the Examination Affairs with permission granted under Article 36-6, or the Minister of Economy, Trade and Industry has rescinded the designation of a Designated Examining Body pursuant to Article 36-13, shall be specified by an Ordinance of the Ministry of Economy, Trade and Industry.

Subsection 5 Registered Gas Facilities Inspection Body

Article 36-16 (Registration)

The registration set forth in Article 36-2-2, paragraph 1 shall be made, pursuant to the provision of an Ordinance of the Ministry of Economy, Trade and Industry, upon application by a person who intends to conduct an inspection set forth in the said paragraph (hereinafter simply referred to as an "Inspection") for the respective inspection categories as follows.

(i) Inspection of Specified Gas Facilities (which means Specified Gas Generating Facilities and auxiliary facilities thereof specified by an Ordinance of the Ministry of Economy, Trade and Industry; hereinafter the same shall apply).

(ii) Inspection of Gas Facilities other than Specified Gas Facilities.

Article 36-17 (Disqualification)

A person who falls under any of the following items may not be registered under Article 36-2-2, paragraph 1.

(i) A person who was sentenced to a fine or severer punishment for violation of this Act or any order issued under this Act, before the elapse of a period of two years since that person served out the sentence or ceased to be subject to the sentence.

(ii) A person whose registration was rescinded pursuant to Article 36-26, before the elapse of a period of two years since the date of rescission.

(iii) A juridical person, any of whose officers in charge of its business falls under any of the preceding two items.

Article 36-18 (Standards for Registration)

(1) The Minister of Economy, Trade and Industry shall register a person who has applied for registration pursuant to Article 36-16 (hereinafter referred to as an "Applicant for Registration" in this paragraph) if that person conforms to all of the following requirements. In this case, necessary procedures for registration shall be specified by an Ordinance of the Ministry of Economy, Trade and Industry.

(i) Inspection shall be conducted by a person who falls under any of the following conditions, at least two persons assigned for each inspection category.

(a) A person who graduated from a university or college of technology under the School Education Act (Act No. 26 of 1947), a university under the old University Ordinance (Imperial Ordinance No. 388 of 1918) or a vocational training school under the old Vocational Training School Ordinance (Imperial Ordinance No. 61 of 1903) after completing a course in chemistry, mechanical engineering or civil engineering or any other course similar thereto, and has experience of being engaged for at least one year in total in the services for construction, maintenance and operation or Inspection of Gas Facilities (excluding, however, Specified Gas Facilities in the case where the application pertains to the inspection category set forth in Article 36-16, item 2; hereinafter the same shall apply in (b) and (c)).

(b) A person who graduated from a high school or secondary education school under the School Education Act or an industrial school under the old Secondary School Ordinance (Imperial Ordinance No. 36 of 1943) after completing a course in chemistry, mechanical engineering or civil engineering or any other course similar thereto, and has experience of being engaged for at least two years in total in the services for construction, maintenance and operation or Inspection of Gas Facilities.

(c) A person who has been engaged for at least three years in total in the services for construction, maintenance and operation or Inspection of Gas Facilities.

(d) A person who has a chief gas engineer's license (limited, however, to Class-A Chief Gas Engineer's License in the case where the application pertains to the inspection category set forth in Article 36-16, item 2).

(ii) The Applicant for Registration controlled by a Gas Supplier falls under none of the following conditions.

(a) Where the Applicant for Registration is a business corporation, the Gas Supplier is its parent corporation (as prescribed in Article 879, paragraph 1 of the Companies Act (Act No. 86 of 2005); hereinafter the same shall apply).

(b) Where more than half of the officers of the Applicant for Registration (in the case of a Partnership Corporation (which means a partnership corporation prescribed in Article 575, paragraph 1 of the Companies Act), officers in charge of its business; hereinafter the same shall apply) are officers or employees of the Gas Supplier (including those who have been officers or employees of the Gas Supplier in the past two years).

(c) Where the Applicant for Registration (or, in the case of a juridical person, its representative officer) is an officer or employee of the Gas Supplier (or has been an officer or employee of the Gas Supplier in the past two years).

(2) The registration set forth in Article 36-2-2, paragraph 1 shall be made, with the following matters stated in the registry of the Gas Facilities Inspection Bodies.

(i) The date of registration and registration number.

(ii) The name and address of the person registered, as well as the name of the representative if such person is a juridical person.

(iii) The respective inspection category set forth in Article 36-16.

(iv) The name and location of the place of business where the registered person conducts an Inspection.

Article 36-19 (Renewal of Registration)

(1) Unless it is renewed at an interval of not less than three years as set by a Cabinet Order, the registration set forth in Article 36-2-2, paragraph 1 shall cease to be effective upon the expiration of such period.

(2) The provisions of the preceding three Articles shall apply mutatis mutandis to the renewal of registration set forth in the preceding paragraph.

Article 36-20 (Obligation to Conduct Inspection)

(1) A person registered under Article 36-2-2, paragraph 1 (hereinafter referred to as a "Registered Gas Facilities Inspection Body") shall, without delay, conduct an Inspection when requested except where there are justifiable grounds not to do so.

(2) A Registered Gas Facilities Inspection Body shall conduct an Inspection fairly by a method specified by an Ordinance of the Ministry of Economy, Trade and Industry.

Article 36-21 (Notification of Change to Place of Business)

A Registered Gas Facilities Inspection Body shall, when intending to change the location of the place of business where an Inspection is to be conducted, notify the Minister of Economy, Trade and Industry of the change two weeks prior to the day when the change is scheduled.

Article 36-22 (Operational Rules)

(1) A Registered Gas Facilities Inspection Body shall formulate rules concerning the services for Inspections (hereinafter referred to as the "Operational Rules"), and notify the Minister of Economy, Trade and Industry of the rules before commencing the services for Inspections. The same shall apply where a Registered Gas Facilities Inspection Body intends to revise the rules.

(2) The Operational Rules shall provide for a method for conducting an Inspection, a method for calculating the fees for an Inspection, and other matters specified by an Ordinance of the Ministry of Economy, Trade and Industry.

Article 36-23 (Notification of Suspension or Abolition of Operation)

A Registered Gas Facilities Inspection Body shall, when intending to suspend or abolish the whole or a part of the services for Inspections, notify the Minister of Economy, Trade and Industry to that effect in advance pursuant to the provision of an Ordinance of the Ministry of Economy, Trade and Industry.

Article 36-23-2 (Keeping and Making Available for Public Inspection of Financial Statements, etc.)

(1) A Registered Gas Facilities Inspection Body shall, within three months after the end of each business year, prepare a property inventory, balance sheet, profit and loss statement or income and expenditure statement and business report (in the case where these documents are prepared as Electromagnetic Records (which means records produced by an electronic device, magnetic device or any other device not recognizable to human sense, which are used for data processing by a computer; hereinafter the same shall apply in this Article), or Electromagnetic Records are prepared instead of preparing the documents, such Electromagnetic Records shall be included; these documents shall hereinafter be referred to as "Financial Statements, etc.") and keep them in its place of business for five years.

(2) A Gas Supplier and other interested persons may, at any time during the business hours of the Registered Gas Facilities Inspection Body, make any of the following requests to the body; provided, however, that when making a request set forth in item 2 or item 4, the Gas Supplier or interested persons shall pay the fee determined by the Registered Gas Facilities Inspection Body.

(i) Where Financial Statements, etc. are prepared as written documents, a request for public inspection or copying of the written documents.

(ii) A request for a transcript or extract of the written documents set forth in the preceding item.

(iii) Where Financial Statements, etc. are prepared as Electromagnetic Records, a request for public inspection or copying of the content of the Electromagnetic Records displayed by a device specified by an Ordinance of the Ministry of Economy, Trade and Industry.

(iv) A request for provision of the content of the Electromagnetic Records set forth in the preceding item by an electromagnetic device specified by an Ordinance of the Ministry of Economy, Trade and Industry or a request for delivery of documents stating such content.

Article 36-24 (Order for Conformity)

The Minister of Economy, Trade and Industry may, when he/she finds that a Registered Gas Facilities Inspection Body has ceased to conform to any of the items of paragraph 1 of Article 36-18, order the Registered Gas Facilities Inspection Body to take any necessary measures to ensure conformity to the provisions of the said items.

Article 36-25 (Order for Improvement)

The Minister of Economy, Trade and Industry may, when he/she finds that a Registered Gas Facilities Inspection Body is in violation of Article 36-20, order the Registered Gas Facilities Inspection Body to conduct an Inspection or take any other necessary measures to improve the inspection method or other operational procedure.

Article 36-26 (Rescission of Registration, etc.)

Where a Registered Gas Facilities Inspection Body falls under any of the following items, the Minister of Economy, Trade and Industry may rescind its registration or order the Registered Gas Facilities Inspection Body to suspend the whole or a part of the services for Inspections within a specified period.

(i) Where the Registered Gas Facilities Inspection Body now falls under Article 36-17, item 1 or item 3.

(ii) Where the Registered Gas Facilities Inspection Body has violated Article 36-20, Article 36-21, Article 36-22, paragraph 1, Article 36-23, Article 36-23-2, paragraph 1, or the next Article.

(iii) Where the Registered Gas Facilities Inspection Body has refused the request made under the items of paragraph 2 of Article 36-23-2 without justifiable grounds.

(iv) Where the Registered Gas Facilities Inspection Body has violated an order issued under the preceding two Articles.

(v) Where the Registered Gas Facilities Inspection Body has been registered under Article 36-2-2, paragraph 1 by wrongful means.

Article 36-27 (Bookkeeping)

A Registered Gas Facilities Inspection Body shall, pursuant to the provision of an Ordinance of the Ministry of Economy, Trade and Industry, keep books, state in such books the matters concerning an Inspection specified by an Ordinance of the Ministry of Economy, Trade and Industry, and preserve such books.

Article 37 (Services for Inspections Performed by Minister of Economy, Trade and Industry)

(1) The Minister of Economy, Trade and Industry may him/herself perform the whole or a part of the services for Inspections of a Registered Gas Facilities Inspection Body in the cases where: there is no person registered pursuant to Article 36-2-2, paragraph 1; notification of the suspension or abolition of the whole or a part of the services for Inspections has been given pursuant to Article 36-23; the registration made under Article 36-26 has been rescinded or an order has been issued to the Registered Gas Facilities Inspection Body to suspend or abolish the whole or a part of the services for Inspections pursuant to Article 36-26; it has become difficult for the Registered Gas Facilities Inspection Body to perform the whole or a part of the services for Inspections due to a disaster or otherwise; or it is necessary for any other reasons.

(2) The transfer of the services for Inspections and other necessary matters, in the case where the Minister of Economy, Trade and Industry performs the whole or a part of the services for Inspections him/herself pursuant to the preceding paragraph, shall be specified by an Ordinance of the Ministry of Economy, Trade and Industry.

Chapter 3 Community Gas Utility Business

Article 37-2 (Business License)

A person who intends to conduct a Community Gas Utility Business shall obtain a license from the Minister of Economy, Trade and Industry for each Service Block.

Article 37-3 (Application for License)

(1) A person who intends to obtain a license under the preceding Article shall submit a written application to the Minister of Economy, Trade and Industry, stating:

(i) The name and address of the applicant, as well as the name of the representative if the applicant is a juridical person.

(ii) The service points and the number thereof.

(iii) The location and structure of the Specified Gas Facilities and the number thereof by capacity.

(2) The written application set forth in the preceding paragraph shall be accompanied by drawings of the service points and other documents specified by an Ordinance of the Ministry of Economy, Trade and Industry.

Article 37-4 (Standards for License)

The Minister of Economy, Trade and Industry shall not grant a license under Article 37-2 unless he/she finds that the application for the license under the said paragraph conforms to the following items.

(i) The commencement of the Community Gas Utility Business corresponds to general demand.

(ii) The Specified Gas Generating Facility for the Community Gas Utility Business is capable of meeting gas demand at the service points.

(iii) Where the service points are located in the service area of a General Gas Utility that has prepared an appropriate and reliable gas supply plan with respect to the place where the commencement of the Community Gas Utility Business is likely to hinder the General Gas Utility's performance of its business, there is no risk of harm to the interests to be enjoyed by the gas users at that place as a result of the commencement of the Community Gas Utility Business.

(iv) The commencement of the Community Gas Utility Business will not result in the existence of an excessive number of Gas Facilities at the service points.

(v) The applicant has sufficient financial basis and technical capability to perform the Community Gas Utility Business properly.

(vi) The Specified Gas Facilities for the Community Gas Utility Business conform to the technical standards established by an Ordinance of the Ministry of Economy, Trade and Industry under Article 28, paragraph 1 as applied mutatis mutandis pursuant to Article 37-7, paragraph 1.

(vii) The Community Gas Utility Business is based on a reliable plan.

(viii) The commencement of the Community Gas Utility Business is necessary and appropriate in light of public interest.

Article 37-5 (License Certificate)

(1) The Minister of Economy, Trade and Industry shall, when having granted a license for a Community Gas Utility Business, issue a license certificate.

(2) The license certificate shall state:

(i) The date of grant of the license and the license number.

(ii) The name and address of the licensee.

(iii) The service points and the number thereof.

(iv) The location and structure of the Specified Gas Facilities and the number thereof by capacity.

Article 37-6 (Obligation to Supply)

(1) A Community Gas Utility shall not refuse to supply gas to meet general demand at its service points without justifiable grounds.

(2) A Community Gas Utility shall not supply gas via pipelines to meet general demand at any point other than its service points, except when the Community Gas Utility, having obtained a license/permission, or registration or given a notification under this Act or other Acts, supplies gas in a manner for which the license/permission or registration has been granted or of which the notification has been given.

Article 37-6-2 (Obligation to Supply under General Supply Provisions, etc.)

A Community Gas Utility shall not supply gas to meet general demand under supply conditions other than those set out in general supply provisions approved under Article 17, paragraph 1 as applied mutatis mutandis pursuant to paragraph 1 of the next Article (or, if notification of revision has been given pursuant to Article 17, paragraph 4 as applied mutatis mutandis pursuant to paragraph 1 of the next Article, the revised provisions; if revision has been made pursuant to Article 18, paragraph 2 as applied mutatis mutandis pursuant to paragraph 1 of the next Article, the revised provisions) or those set out in Optional Supply Provisions for which notification was given pursuant to Article 17, paragraph 7 as applied mutatis mutandis pursuant to paragraph 1 of the next Article; provided, however, that this shall not apply when a Community Gas Utility has reached an agreement on a Large-Volume Supply of Specified Gas (which means a supply via pipelines of gas generated at a Specified Gas Generating Facility specified by a Cabinet Order to meet a certain volume of demand from gas users, which satisfies the requirements specified by an Ordinance of the Ministry of Economy, Trade and Industry) with the recipient of gas supply, or has obtained approval from the Minister of Economy, Trade and Industry because of special circumstances.

Article 37-7 (Application Mutatis Mutandis)

(1) The provisions of Articles 7 to 11, Articles 13 to 15, Articles 17 to 19, Article 21, Article 25-2, Article 26, paragraph 1, Article 28, Article 31, and Article 36 shall apply mutatis mutandis to a Community Gas Utility. In this case, the term "Article 5" in Article 8, paragraph 2 and Article 10, paragraph 3 shall be deemed to be replaced with "Article 37-4," and the term "Large-Volume Supply" in Article 25-2, paragraph 2 shall be deemed to be replaced with "Large-Volume Supply of Specified Gas."

(2) The provision of Article 36-2-2 shall apply mutatis mutandis to Specified Gas Facilities to be used for a Community Gas Utility Business. In this case, the phrase "according to the construction plan for which notification was given pursuant to paragraph 1 or paragraph 2 of the preceding Article (including such plan following any minor revision specified by an Ordinance of the Ministry of Economy, Trade and Industry under the proviso of the said paragraph)" in item 1 of paragraph 2 of the said Article shall be deemed to be replaced with "in a manner for which a license has been obtained under Article 37-2 or for which notification was given under Article 9, paragraph 1 or paragraph 2 (limited, however, to the part concerning the matters listed in Article 6, paragraph 2, item 4) as applied mutatis mutandis pursuant to Article 37-7, paragraph 1."

(3) The provisions of Article 30 and Article 35, paragraph 2 shall apply mutatis mutandis to a Community Gas Utility. In this case, the phrase "before the commencement of the business (in the case of facilities requiring self-inspection set forth in Article 36-2-2, paragraph 1, before the commencement of the construction of the facilities)" in Article 30, paragraph 1 shall be deemed to be replaced with "before the commencement of the business (in the case of a business involving the construction with a license under Article 37-2 (limited, however, to the construction of Specified Gas Facilities that are specified by an Ordinance of the Ministry of Economy, Trade and Industry under Article 36-2-2, paragraph 1 as applied mutatis mutandis pursuant to Article 37-7, paragraph 2), before the commencement of the construction of the facilities)."

Chapter 4 Gas Pipeline Service Business

Article 37-7-2 (Notification of Gas Pipeline Service Business)

(1) A person other than a General Gas Utility shall, when intending to conduct a Gas Pipeline Service Business, notify the Minister of Economy, Trade and Industry of the following matters pursuant to the provision of an Ordinance of the Ministry of Economy, Trade and Industry.

(i) The name and address of the person, as well as the name of the representative if the person is a juridical person.

(ii) The site where the Specified Pipes for the Gas Pipeline Service Business are to be installed, the inside diameter and the gas pressure within the Specified Pipes.

(2) The notification set forth in the preceding paragraph shall be accompanied by documents specified by an Ordinance of the Ministry of Economy, Trade and Industry.

(3) A person who has given a notification under paragraph 1 shall not use the Specified Pipes to which the notification pertained for the Gas Pipeline Service Business until 30 days have elapsed from the day when the notification was received, if the Specified Pipes are to be installed in the service area of a General Gas Utility.

(4) When the Minister of Economy, Trade and Industry finds, in the case referred to in the preceding paragraph, that the use of the Specified Pipes to which the notification given under paragraph 1 pertained for the Gas Pipeline Service Business is unlikely to harm the interests of gas users in the service area of the General Gas Utility prescribed in the preceding paragraph, he/she may shorten the period prescribed in the said paragraph.

(5) When the Minister of Economy, Trade and Industry finds, in the case referred to in paragraph 3, that the use of the Specified Pipes to which the notification given under paragraph 1 pertained for the Gas Pipeline Service Business is likely to harm the interests of gas users in the service area of the General Gas Utility prescribed in paragraph 3, he/she may, within 30 days from the day when the notification was received (or, if the period prescribed in paragraph 3 has been extended pursuant to the next paragraph, the extended period), order the person who has given the notification to change the content of the notification or suspend its use of the Specified Pipes to which such notification pertained.

(6) When the Minister of Economy, Trade and Industry has, in the case referred in paragraph 3, reasonable grounds for believing that it will take a considerable period of time to examine whether or not the use of the Specified Pipes to which the notification given under paragraph 1 pertained for the Gas Pipeline Service Business is likely to harm the interests of gas users in the service area of the General Gas Utility prescribed in paragraph 3 and that such examination will not be completed within the period prescribed in the said paragraph, he/she may extend the period set forth in the said paragraph by up to 30 days. In this case, the Minister of Economy, Trade and Industry shall notify the person who has given the notification of the extended period and the reason for extension without delay.

(7) A Gas Pipeline Service Provider shall, when intending to change the matters to which the notification given under paragraph 1 pertained, notify the Minister of Economy, Trade and Industry to that effect.

(8) The provisions of paragraphs 2 to 6 shall apply mutatis mutandis to the notification set forth in the preceding paragraph (limited, however, to the cases where a Gas Pipeline Service Provider intends to change the matters listed in paragraph 1, item 2). In this case, the phrase "shall not use the Specified Pipes to which the notification pertained for the Gas Pipeline Service Business" in paragraph 3 shall be deemed to be replaced with "shall not make the change; provided, however, that this shall not apply to any minor change specified by an Ordinance of the Ministry of Economy, Trade and Industry," and the phrase "the use of the Specified Pipes to which the notification given under paragraph 1 pertained for the Gas Pipeline Service Business" in paragraphs 4 to 6 shall be deemed to be replaced with "the change to which the notification given under paragraph 1 pertained."

(9) A Gas Pipeline Service Provider shall, when having abolished its business, notify the Minister of Economy, Trade and Industry to that effect without delay.

Article 37-7-3 (Large-Volume Supply by Gas Pipeline Service Provider)

(1) A Gas Pipeline Service Provider shall, when intending to provide a Large-Volume Supply (excluding, however, the cases where a Gas Pipeline Service Provider intends to generate gas at a Specified Gas Generating Facility and supply such gas via pipelines), notify the Minister of Economy, Trade and Industry of the recipient of the gas supply and other matters specified by an Ordinance of the Ministry of Economy, Trade and Industry.

(2) A Gas Pipeline Service Provider that has given notification under the preceding paragraph shall not provide the Large-Volume Supply to which the notification pertained until 30 days have elapsed from the day when the notification was received.

(3) The Minister of Economy, Trade and Industry may, if he/she finds that the Large-Volume Supply to which the notification given under paragraph 1 pertained conforms to the following items, shorten the period prescribed in the preceding paragraph.

(i) Where the Large-Volume Supply is to be provided in the service area of a General Gas Utility, there is no risk of harm to the interests of gas users within the General Gas Utility's service area as a result of the provision of the Large-Volume Supply.

(ii) Where the Large-Volume Supply is to be provided in an area other than the service areas of General Gas Utilities where the commencement of a General Gas Utility Business is expected, there is no risk of harm to the commencement of the General Gas Utility Business as a result of the provision of the Large-Volume Supply.

(4) When the Minister of Economy, Trade and Industry finds that the Large-Volume Supply to which the notification given under paragraph 1 pertained fails to conform to any of the items of the preceding paragraph, he/she may, within 30 days from the day when the notification was received (or, if the period prescribed in paragraph 2 has been extended pursuant to the next paragraph, the extended period), order the Gas Pipeline Service Provider that has given the notification to change the contents of the notification or suspend its provision of the Large-Volume Supply to which such notification pertained.

(5) The Minister of Economy, Trade and Industry may, when he/she has reasonable grounds for believing that it will take a considerable period of time to examine whether or not the Large-Volume Supply to which the notification given under paragraph 1 pertained conforms to the items of paragraph 3 and that such examination will not be completed within the period prescribed in paragraph 2, extend the period set forth in the said paragraph by up to 30 days. In this case, the Minister of Economy, Trade and Industry shall notify the Gas Pipeline Service Provider that has given the notification of the extended period and the reason for extension without delay.

Article 37-7-4 (Gas Supply by Gas Pipeline Service Provider in Service Area of General Gas Utility)

A Gas Pipeline Service Provider shall, when intending to supply gas via pipelines to a gas user (limited, however, to those who have a close association with the Gas Pipeline Service Provider as specified by an Ordinance of the Ministry of Economy, Trade and Industry under Article 2, paragraph 7) in the service area of a General Gas Utility, notify the Minister of Economy, Trade and Industry to that effect, with a document describing such association with the recipient of the gas supply attached thereto.

Article 37-8 (Application Mutatis Mutandis)

The provisions of Article 11, Articles 21 to 22-4, Article 25-2, paragraph 1, Article 26, Articles 28 to 31, Article 35, paragraph 2, Articles 36 to 36-2-2, and Article 36-2-4 shall apply mutatis mutandis to a Gas Pipeline Service Provider. In this case, the phrase "the heir who has succeeded" in Article 11, paragraph 2 shall be deemed to be replaced with "the person who has succeeded," the phrase "calorific value, pressure and combustibility" in Article 21 shall be deemed to be replaced with "pressure (in the case of providing a Large-Volume Supply, calorific value, pressure and combustibility)," the term "Approved General Gas Utility" in Article 22, paragraph 3 and Article 22-2 shall be deemed to be replaced with "Approved Gas Pipeline Service Provider," and the term "supplies" in Article 29 shall be deemed to be replaced with "provides as a Large-Volume Supply."

Chapter 5 Gas Supply Business, etc. Other Than General Gas Utility Business, Community Gas Utility Business and Gas Pipeline Service Business

Section 1 Large-Volume Gas Business by Person Other Than General Gas Utility and Gas Pipeline Service Provider

Article 37-9 (Large-Volume Supply by Person Other Than General Gas Utility and Gas Pipeline Service Provider)

(1) A person other than a General Gas Utility and Gas Pipeline Service Provider shall, when intending to provide a Large-Volume Supply (excluding, however, the cases where such person intends to generate gas at a Specified Gas Generating Facility and supply such gas via pipelines), notify the Minister of Economy, Trade and Industry of the recipient of the gas supply and other matters specified by an Ordinance of the Ministry of Economy, Trade and Industry.

(2) The provisions of Article 37-7-3, paragraphs 2 to 5 shall apply mutatis mutandis to the notification set forth in the preceding paragraph.

Article 37-10 (Application Mutatis Mutandis)

The provisions of Article 21, Article 25-2, paragraph 1, Articles 28 to 31, Article 35, paragraph 2, Articles 36 to 36-2-2, and Article 36-2-4 shall apply mutatis mutandis to a Large-Volume Gas Supplier.

Section 2 Gas Supply Business, etc. Other Than Gas Business

Article 38 (Application Mutatis Mutandis)

(1) The provision of Article 37-7-4 shall apply mutatis mutandis to a person other than a General Gas Utility and Gas Pipeline Service Provider.

(2) The provisions of Article 28, paragraph 1 and paragraph 2, Article 31, Article 35, paragraph 2, Article 36, and Article 36-2 (excluding paragraph 6) shall apply mutatis mutandis to a person who, pursuant to the provision of a Cabinet Order, conducts a business of supplying gas (excluding a Gas Business) or a business that uses the gas manufactured by that person (excluding, however, such businesses subject to the Mine Safety Act (Act No. 70 of 1949), the High Pressure Gas Safety Act (Act No. 204 of 1951), the Electricity Business Act (Act No. 170 of 1964) or the Act on Securing Safety and Optimization of Transaction of Liquefied Petroleum Gas (Act No. 149 of 1967; hereinafter referred to as the "Liquefied Petroleum Gas Act")) (such a person shall hereinafter be referred to as a "Quasi-Gas Supplier3"). In this case, the phrase "the following items" in Article 36-2, paragraph 4 shall be deemed to be replaced with "item 1," and the phrase "the items of the preceding paragraph" in Article 36-2, paragraph 5 shall be deemed to be replaced with "item 1 of the preceding paragraph."

Article 39 (Notification of Commencement of Business, etc.)

A Quasi-Gas Supplier shall, when having commenced or abolished its business, notify the Minister of Economy, Trade and Industry to that effect without delay.

Chapter 6 Gas Equipment

Section 1 Definitions

Article 39-2 (Definitions)

(1) The term "Gas Equipment" as used in this Act shall mean machines, apparatuses or materials to be used by General Consumers, etc. (which means General Consumers, etc. prescribed in Article 2, paragraph 2 of the Liquefied Petroleum Gas Act; hereinafter the same shall apply) (excluding, however, machines, apparatuses or materials prescribed in paragraph 7 of the said Article), which are specified by a Cabinet Order.

(2) The term "Specified Gas Equipment" as used in this Act shall mean Gas Equipment that seems to be very likely to cause a gas disaster in light of its structure, conditions of use, and status of use, which is specified by a Cabinet Order.

Section 2 Restrictions on Sale and Labeling

Article 39-3 (Restrictions on Sale)

(1) A person engaged in the business of manufacturing, importing or selling Gas Equipment shall not sell or display for sale any Gas Equipment other than that labeled as prescribed under Article 39-12.

(2) The provision of the preceding paragraph shall not apply where the person set forth in the said paragraph falls under the following items.

(i) Where such a person has, in order to sell or display for sale Gas Equipment intended for export, notified the Minister of Economy, Trade and Industry to that effect.

(ii) Where such a person has, in order to sell or display for sale Gas Equipment intended for a specific purpose other than export, obtained approval from the Minister of Economy, Trade and Industry for that purpose.

(iii) Where such a person sells or displays for sale the Gas Equipment to which the notification given under Article 39-10, paragraph 1, item 1 or the approval granted under item 2 of the said paragraph pertained.

Article 39-4 (Restrictions on Labeling)

Except where a person who has given a notification pursuant to the next Article (hereinafter referred to as a "Notifying Manufacturer/Importer4") affixes labels, pursuant to Article 39-12, to Gas Equipment categorized by the model to which the notification given under the said Article (hereinafter simply referred to as the "Model to Which Notification Pertained"), no person shall affix labels set forth in the said Article or other confusing labels to Gas Equipment.

Section 3 Notification of Business, etc.

Article 39-5 (Notification of Business)

A person engaged in manufacturing or importing Gas Equipment may notify the Minister of Economy, Trade and Industry of the following matters for the respective categories of Gas Equipment specified by an Ordinance of the Ministry of Economy, Trade and Industry.

(i) The name and address of the person, as well as the name of the representative if the person is a juridical person.

(ii) The respective category of the model of Gas Equipment specified by an Ordinance of the Ministry of Economy, Trade and Industry.

(iii) The name and location of the factory or workplace where the Gas Equipment is manufactured (in the case of a person engaged in importing Gas Equipment, the name and address of the manufacturer of the Gas Equipment).

Article 39-6 (Succession)

(1) In the event of an assignment by the Notifying Manufacturer/Importer of the business to which the notification pertained, or inheritance, merger or demerger of the Notifying Manufacturer/Importer (limited, however, to those resulting in the taking over of the whole of the business to which the notification pertained), the assignee of the whole of the business, the heir (in the case where one particular heir has been selected from among two or more heirs as the successor of the business by consent of all heirs, such selected heir), the juridical person surviving after the merger or the juridical person newly established upon the merger, or the juridical person who has taken over the whole of the business upon the demerger shall succeed to the status of the Notifying Manufacturer/Importer.

(2) A person who has succeeded to the status of a Notifying Manufacturer/Importer pursuant to the preceding paragraph shall notify the Minister of Economy, Trade and Industry to that effect without delay, with a document proving such fact.

Article 39-7 (Notification of Change)

Where there has been a change to the matters listed in the items of Article 39-5, a Notifying Manufacturer/Importer shall notify the Minister of Economy, Trade and Industry to that effect without delay; provided, however, that this shall not apply to any minor change specified by an Ordinance of the Ministry of Economy, Trade and Industry.

Article 39-8 (Notification of Abolition)

A Notifying Manufacturer/Importer shall, when having abolished the business to which the notification pertained, notify the Minister of Economy, Trade and Industry to that effect without delay.

Article 39-9 (Provision of Information on Matters of Notification)

Any person may request the Minister of Economy, Trade and Industry to provide information on the matters listed in Article 39-5, item 1 and item 2.

Article 39-10 (Obligation to Conform to Standards, etc.)

(1) A Notifying Manufacturer/Importer shall, when manufacturing or importing the Gas Equipment categorized by the Model Pertaining to Notification, ensure that the Gas Equipment conforms to the technical standards established by an Ordinance of the Ministry of Economy, Trade and Industry; provided, however, that this shall not apply to the following cases.

(i) Where the Notifying Manufacturer/Importer has, in order to manufacture or import Gas Equipment intended for export, notified the Minister of Economy, Trade and Industry to that effect.

(ii) Where the Notifying Manufacturer/Importer has, in order to manufacture or import Gas Equipment intended for a specific purpose other than export, obtained approval from the Minister of Economy, Trade and Industry for that purpose.

(iii) Where the Notifying Manufacturer/Importer manufactures or imports Gas Equipment for experimental purposes.

(2) A Notifying Manufacturer/Importer shall, pursuant to the provision of an Ordinance of the Ministry of Economy, Trade and Industry, inspect the Gas Equipment prescribed in the preceding paragraph that the Notifying Manufacturer/Importer manufactures or imports (excluding, however, that manufactured or imported pursuant to the proviso of the said paragraph), record the inspection results and preserve such records.

Article 39-11 (Conformity Inspection of Specified Gas Equipment)

(1) A Notifying Manufacturer/Importer shall, if the Gas Equipment prescribed in paragraph 1 of the preceding Article that the Notifying Manufacturer/Importer manufactures or imports (excluding, however, that manufactured or imported pursuant to the proviso of the said paragraph) falls into the category of Specified Gas Equipment, before selling the Specified Gas Equipment, undergo an inspection prescribed in the next paragraph by a person registered by the Minister of Economy, Trade and Industry (hereinafter referred to as a "Conformity Inspection") with respect to the matters listed in the following items and obtain a certificate set forth in the said paragraph, and preserve such certificate; provided, however, that this shall not apply where the Notifying Manufacturer/Importer has already obtained and currently preserves a certificate set forth in the said paragraph pertaining to the matters listed in item 2 with respect to Specified Gas Equipment of the same model as that of the Specified Gas Equipment concerned, before the lapse of a period specified by a Cabinet Order for the respective category of Specified Gas Equipment from the day when the certificate was issued, or where the Notifying Manufacturer/Importer preserves any instrument specified by an Ordinance of the Ministry of Economy, Trade and Industry as being equivalent to the certificate set forth in the said paragraph.

(i) The Specified Gas Equipment concerned.

(ii) Specified Gas Equipment for experimental purposes and inspection equipment to be used at the factory or workplace of the Notifying Manufacturer/Importer pertaining to the Specified Gas Equipment concerned, and other matters specified by an Ordinance of the Ministry of Economy, Trade and Industry.

(2) The person registered under the preceding paragraph may inspect the matters listed in the items of the said paragraph by a method specified by an Ordinance of the Ministry of Economy, Trade and Industry, and if these matters conform to the technical standards established by an Ordinance of the Ministry of Economy, Trade and Industry under paragraph 1 of the preceding Article or the standards established by an Ordinance of the Ministry of Economy, Trade and Industry with respect to the inspection equipment and other matters specified by an Ordinance of the Ministry of Economy, Trade and Industry that are listed in item 2 of the preceding paragraph, issue to the Notifying Manufacturer/Importer a certificate to that effect pursuant to the provision of an Ordinance of the Ministry of Economy, Trade and Industry.

Article 39-12 (Labeling)

A Notifying Manufacturer/Importer may, when having performed, with respect to the conformity of the Gas Equipment categorized by the Model Pertaining to Notification to the technical standards established by an Ordinance of the Ministry of Economy, Trade and Industry under Article 39-10, paragraph 1, the obligation prescribed in paragraph 2 of the said Article (or the said paragraph or paragraph 1 of the preceding Article in the case of Specified Gas Equipment), affix labels to the Gas Equipment pursuant to the provision of an Ordinance of the Ministry of Economy, Trade and Industry.

Article 39-13 (Order for Improvement)

The Minister of Economy, Trade and Industry may, when he/she finds that a Notifying Manufacturer/Importer is in violation of Article 39-10, paragraph 1, order the Notifying Manufacturer/Importer to take necessary measures to improve the methods for manufacturing, importing or inspecting Gas Equipment or other operational procedure.

Article 39-14 (Prohibition of Labeling)

The Minister of Economy, Trade and Industry may, in the cases listed in the following items, prohibit a Notifying Manufacturer/Importer from affixing labels under Article 39-12 to the Gas Equipment categorized by the Model Pertaining to Notification specified in the respective items, for a specified period not exceeding one year.

(i) Where the Gas Equipment categorized by the Model Pertaining to Notification that is manufactured or imported by the Notifying Manufacturer/Importer (excluding, however, that manufactured or imported pursuant to the proviso of paragraph 1 of Article 39-10) does not conform to the technical standards established by an Ordinance of the Ministry of Economy, Trade and Industry under the said paragraph, and the minister finds it particularly necessary to prohibit the labeling in order to prevent the occurrence of a disaster: the Model Pertaining to Notification by which the Gas Equipment that does not conform to the technical standards established by an Ordinance of the Ministry of Economy, Trade and Industry under the said paragraph is categorized.

(ii) Where the Notifying Manufacturer/Importer has violated Article 39-10, paragraph 2, or Article 39-11, paragraph 1, with respect to the Gas Equipment categorized by the Model Pertaining to Notification that is manufactured or imported by the Notifying Manufacturer/Importer: the Model Pertaining to Notification by which the Gas Equipment that pertains to the violation is categorized.

(iii) Where the Notifying Manufacturer/Importer has violated the preceding Article with respect to the Gas Equipment categorized by the Model Pertaining to Notification that is manufactured or imported by the Notifying Manufacturer/Importer: the Model Pertaining to Notification by which the Gas Equipment that pertains to the violation is categorized.

Section 4 Registration of Inspection Body

Article 39-14-2 (Registration)

(1) The registration set forth in Article 39-11, paragraph 1 shall be made, pursuant to the provision of an Ordinance of the Ministry of Economy, Trade and Industry, for the respective categories of Specified Gas Equipment specified by an Ordinance of the Ministry of Economy, Trade and Industry (hereinafter simply referred to as a "Specified Gas Equipment Category") upon application by a person who intends to conduct a Conformity Inspection.

(2) Where the Minister of Economy, Trade and Industry has received an application set forth in the preceding paragraph, he/she may, when deeming it necessary, cause the National Institute of Technology and Evaluation (hereinafter referred to as the "NITE") to conduct the necessary investigation regarding whether or not the application conforms to the items of paragraph 1 of the next Article.

Article 39-14-3 (Standards for Registration)

(1) The Minister of Economy, Trade and Industry shall register a person who has applied for registration pursuant to paragraph 1 of the preceding Article (hereinafter referred to as an "Applicant for Registration" in this paragraph) if that person conforms to all of the following requirements. In this case, necessary procedures for registration shall be specified by an Ordinance of the Ministry of Economy, Trade and Industry.

(i) The Applicant for Registration conforms to the standards for product certification bodies established by the International Organization for Standardization and the International Electrotechnical Commission.

(ii) The Applicant for Registration controlled by a Notifying Manufacturer/Importer that manufactures or imports the Specified Gas Equipment subject to a Conformity Inspection pursuant to Article 39-11, paragraph 1 (hereinafter referred to as a "Manufacturer/Importer Subject to Inspection" in this item, Article 39-15, paragraph 2, and Article 39-16, paragraph 2), falls under none of the following conditions.

(a) Where the Applicant for Registration is a business corporation, the Manufacturer/Importer Subject to Inspection is its parent corporation.

(b) Where more than half of the officers of the Applicant for Registration (or, in the case of a Partnership Corporation, officers in charge of its business) are officers or employees of the Manufacturer/Importer Subject to Inspection (including those who have been officers or employees of the Manufacturer/Importer Subject to Inspection in the past two years).

(c) Where the Applicant for Registration (or, in the case of a juridical person, its representative officer) is an officer or employee of the Manufacturer/Importer Subject to Inspection (or has been an officer or employee of the Manufacturer/Importer Subject to Inspection in the past two years).

(2) The registration set forth in Article 39-11, paragraph 1 shall be made, with the following matters stated in the registry of Gas Equipment Inspection Bodies.

(i) The date of registration and registration number.

(ii) The name and address of the person registered, as well as the name of the representative if such person is a juridical person.

(iii) The category of the Specified Gas Equipment for which the registered person is to conduct a Conformity Inspection.

(iv) The name and location of the place of business where the registered person is to conduct a Conformity Inspection.

Article 39-14-4 (Application Mutatis Mutandis)

The provisions of Article 36-17 and Article 36-19 shall apply mutatis mutandis to the registration set forth in Article 39-11, paragraph 1. In this case, the term "Article 36-26" in Article 36-17, item 2 shall be deemed to be replaced with "Article 36-26 as applied mutatis mutandis pursuant to Article 39-15, paragraph 2, or Article 39-17, paragraph 1."

Section 5 Domestic Registered Gas Equipment Inspection Body5

Article 39-15 (Obligation to Conduct Conformity Inspection, etc.)

(1) A person registered under Article 39-11, paragraph 1 (limited, however, to such person registered for conducting Conformity Inspections at a place of business located in Japan; hereinafter referred to as a "Domestic Registered Gas Equipment Inspection Body") shall, without delay, conduct a Conformity Inspection when requested except where there are justifiable grounds not to do so.

(2) The provisions of Article 36-20, paragraph 2 and Articles 36-21 to 36-27 shall apply mutatis mutandis to a Domestic Registered Gas Equipment Inspection Body. In this case, the phrase "method specified by an Ordinance of the Ministry of Economy, Trade and Industry" in Article 36-20, paragraph 2 shall be deemed to be replaced with "a method that conforms to the technical standards established by an Ordinance of the Ministry of Economy, Trade and Industry under Article 39-10, paragraph 1," the term "Inspection" in Article 36-20, paragraph 2, Articles 36-21 to 36-23, and Articles 36-25 to 36-27 shall be deemed to be replaced with "Conformity Inspection," the term "Gas Supplier" in Article 36-23-2, paragraph 2 shall be deemed to be replaced with "Manufacturer/Importer Subject to Inspection," the phrase "the items of paragraph 1 of Article 36-18" in Article 36-24 shall be deemed to be replaced with "the items of paragraph 1 of Article 39-14-3," and the phrase "Article 36-2-2, paragraph 1" in Article 36-26, item 5 shall be deemed to be replaced with "Article 39-11, paragraph 1."

Article 39-15-2 (Performance of Services for Conformity Inspections by the Minister of Economy, Trade and Industry, etc.)

(1) The Minister of Economy, Trade and Industry may him/herself perform the whole or a part of the services for Conformity Inspections of a Domestic Registered Gas Equipment Inspection Body in the cases where: there is no person registered under Article 39-11, paragraph 1; notification of the suspension or abolition of the whole or a part of the services for Conformity Inspections has been given pursuant to Article 36-23 as applied mutatis mutandis pursuant to paragraph 2 of the preceding Article; the registration made under Article 39-11, paragraph 1 has been rescinded or an order has been issued to the Domestic Registered Gas Equipment Inspection Body to suspend or abolish the whole or a part of the services for Conformity Inspections pursuant to Article 36-26 as applied mutatis mutandis pursuant to paragraph 2 of the preceding Article; it has become difficult for the Domestic Registered Gas Equipment Inspection Body to perform the whole or a part of the services for Conformity Inspections due to a disaster or otherwise; or the minister finds it necessary to do so for any other reasons.

(2) The Minister of Economy, Trade and Industry may, when he/she finds it necessary in the case referred to in the preceding paragraph, cause the NITE to perform the whole or a part of the services for Conformity Inspections.

(3) The transfer of the services for Conformity Inspections and other necessary matters, in the cases where the Minister of Economy, Trade and Industry performs the whole or a part of the services for Conformity Inspections him/herself or causes the NITE to perform the services pursuant to any of the preceding two paragraphs, shall be specified by an Ordinance of the Ministry of Economy, Trade and Industry.

Section 6 Foreign Registered Gas Equipment Inspection Body

Article 39-16 (Obligation to Conduct Conformity Inspection, etc.)

(1) A person registered under Article 39-11, paragraph 1 (limited, however, to such person registered for conducting Conformity Inspections at a place of business located in a foreign state; hereinafter referred to as a "Foreign Registered Gas Equipment Inspection Body") shall, without delay, conduct a Conformity Inspection when requested except where there are justifiable grounds not to do so.

(2) The provisions of Article 36-20, paragraph 2, Articles 36-21 to 36-25, and Article 36-27 shall apply mutatis mutandis to a Foreign Registered Gas Equipment Inspection Body. In this case, the phrase "method specified by an Ordinance of the Ministry of Economy, Trade and Industry" in Article 36-20, paragraph 2 shall be deemed to be replaced with "a method that conforms to the technical standards established by an Ordinance of the Ministry of Economy, Trade and Industry under Article 39-10, paragraph 1," the term "Inspection" in Article 36-20, paragraph 2, Articles 36-21 to 36-23, Article 36-25, and Article 36-27 shall be deemed to be replaced with "Conformity Inspection," the term "Gas Supplier" in Article 36-23-2, paragraph 2 shall be deemed to be replaced with "Manufacturer/Importer Subject to Inspection," the phrase "the items of paragraph 1 of Article 36-18" in Article 36-24 shall be deemed to be replaced with "the items of paragraph 1 of Article 39-14-3," and the term "order" in Article 3-24 and Article 36-25 shall be deemed to be replaced with "request."

Article 39-17 (Rescission of Registration, etc.)

(1) Where a Foreign Registered Gas Equipment Inspection Body falls under any of the following items, the Minister of Economy, Trade and Industry may rescind its registration.

(i) Where the Foreign Registered Gas Equipment Inspection Body now falls under Article 36-17, item 1 or item 3 as applied mutatis mutandis pursuant to Article 39-14-4.

(ii) Where the Foreign Registered Gas Equipment Inspection Body has violated paragraph 1 of the preceding Article, or violated Article 36-20, paragraph 2, Article 36-21, Article 36-22, paragraph 1, Article 36-23, Article 36-23-2, paragraph 1, or Article 36-27, all of which shall be applied mutatis mutandis pursuant to paragraph 2 of the preceding Article.

(iii) Where the Foreign Registered Gas Equipment Inspection Body has refused the request made under the items of paragraph 2 of Article 36-23-2 as applied mutatis mutandis pursuant to paragraph 2 of the preceding Article without justifiable grounds.

(iv) Where the Foreign Registered Gas Equipment Inspection Body has not acted as requested under Article 36-24 or Article 36-25 as applied mutatis mutandis pursuant to paragraph 2 of the preceding Article.

(v) Where the Foreign Registered Gas Equipment Inspection Body has been registered under Article 39-11, paragraph 1 by wrongful means.

(vi) Where the Minister of Economy, Trade and Industry has requested the Foreign Registered Gas Equipment Inspection Body to suspend the whole or a part of the services for Conformity Inspections for a specified period on the grounds that the body falls under any of the preceding items, but the body has not suspended the services as requested.

(vii) Where the Minister of Economy, Trade and Industry has requested the Foreign Registered Gas Equipment Inspection Body to report its services on the grounds that such report is necessary, but the body has failed to make reports or made false reports.

(viii) Where the Minister of Economy, Trade and Industry has found it necessary and therefore attempted to cause officials of the Ministry of Economy, Trade and Industry to conduct an inspection regarding the matters prescribed in Article 47, paragraph 3 at the office or place of business of the Foreign Registered Gas Equipment Inspection Body, but the body has refused, obstructed or avoided6 the inspection.

(ix) Where the Foreign Registered Gas Equipment Inspection Body does not bear the expenses prescribed in the next paragraph.

(2) The expenses required for the inspection set forth in item 8 of the preceding paragraph (limited, however, to those specified by a Cabinet Order) shall be borne by the Foreign Registered Gas Equipment Inspection Body that undergoes the inspection.

(3) The Minister of Economy, Trade an