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Petroleum Law and Policy-UPES-2-J13

Petroleum Law and Policy-UPES-2-J13

Section A (20 Marks)

Write short notes on any four of the following:

  1. Free On Board or Freight On Board
  2. Vessel Nominating Procedure
  3. Litigation
  4. International commercial arbitration
  5. Caveat


Section B (30 marks)

(Attempt any three)

  1. Describe the importance of petroleum tax guide in detail.
  2. Analyze the Model Contract for Sale and Purchase of Crude Oil.
  3. Explain the provision in production sharing contract regarding taxation.
  4. Explain the procedure of in-house examination before institution of proceedings in a court of law.


Section C (50 marks)

(Attempt all questions. Every question carries 10 marks)

Read the case “IT helps BPCL find Green with an Automated Waste Management System” and answer the following questions.

IT helps BPCL find Green with an Automated Waste Management System

Executive summary

Improper waste management at oil refineries can cause serious damage to the environment. Besides, hazardous waste is difficult to transport and dispose. BPCL, one of India's most prestigious oil refineries has led the way with a unique automated hazardous waste management project.

Organization: Bharat Petroleum (BPCL) remains one of India's most trusted oil companies, involved in refining and retailing of petroleum products. And it takes its reputation seriously. In an age of growing ecological threats, where large corporations have an added responsibility to embrace green practices, BPCL has led the way with a unique hazardous waste management project.

Business Case: Oil refineries, many would agree, are not a pretty sight. Large grime coated oil refinery pipes and storage tanks generate volumes of oily sludge from the crude oil stored in them. As the process of refining gets more complex, the generation of such wastes has increased and has led to a greater demand for storage space and timely evacuation. These wastes contain harmful elements that are disastrous to the environment. Besides, they occupy valuable space inside a refinery and are dangerous to transport.

Project: At BPCL, around 75 -100 mt (metric tons) of silica alumina spent catalyst from FCCU/CCU is generated per year. The volumes are much greater during the planned shutdown of a refining process unit where catalysts are utilized in reactors. For example, when the company's DHDS unit was shut down during November-December 2009, 250 mt of spent catalyst was generated.

"The records of the wastes generated during the shutdown of the units or any process activity, and their subsequent disposal records were maintained manually. Increased use of catalysts such as cobalt and nickel based metals in refining made the disposal process more complex. The plant personnel would contact the technical service department through e-mail, who would then manually compile, retrieve and generate the database and prepare MIS reports.  As a result, data on waste volume, characteristics and management practices was never readily available," says Atul Vyawahare, senior manager (Environment), BPCL. Vyawahare monitors and maintains records of the waste disposal process at the BPCL refineries. He also ensures that the wastes are disposed as per legislation and reports to management and environmental regulatory bodies.

The company realized that it needed to automate this process if it had to make it more efficient and save the environment at large. And that responsibility fell on the CIO of BPCL, M.D. Agrawal.

"Proper waste handling optimizes the economics and the ecological impact of the final disposal. We needed a software solution that empowers process owners to effectively capture, manage, monitor and control data of waste generated," says Agrawal.

Project: With that mandate, an in-house team from the company's Mumbai and Kochi Refinery began digging for a solution. The IT team's efforts led to the formation of the Oil Hazardous Material and Waste Management system (OHWMS), a secure, online role-based system that keeps track of each and every activity and helps capture the waste quantity generated in individual plants and offsite areas (spent catalysts / oily waste from individual areas). The system tracks the waste material through the process of PR generation up-to the time of Technology Evaluation Centre approval, award of contract and till it leaves refinery gate. The time required to register the data takes less than five minutes.

First Steps: Agrawal describes the solution as 'reliable and user friendly'. It is designed to allow role-based access to system and modules, that is, users are allowed access depending on their roles and responsibilities. Operational reports and MIS for analysis are generated on a daily, weekly and monthly basis allowing scope for comparison and cross analysis. The program was developed and standardized using Microsoft's ASP.NET Framework 3.5 technologies. It has an in- built alert engine to notify users and stakeholders of the status of each activity from registration to disposal. "Management can view reports in multiple formats - complex wise, status wise, calendar-wise, financial-year wise etcetera, making it comprehensive and simple," says Agrawal. The solution is also integrated with the ERP for activities like creating purchase requisition, awarding contract, and purchase order or sale order creation. It has helped BPCL be compliant with statutory agencies. The system standardizes waste characterization for accuracy and consistency.

Benefits: During the last 10 months a total of 46 entries were registered in the system from the company's Mumbai and Kochi refineries. Today, all hazardous waste disposals are carried out applying the system and the status of refinery on waste is automatically generated and is readily available. It provides business analytics and rich MIS Reports. This intelligence enables BPCL to provide reminders through the system for better and informed decisions. It can now constantly monitor each unit so as to avoid and minimize oil spillages. The company is now better compliant to stringent Statutory Hazardous Waste Rules. Most importantly, the project has removed a huge weight off Agrawal's shoulders. He can now take comfort in the fact that BPCL does its best to mitigate environmental damage; a practice he hopes all corporate would be urged to follow.


  1. In an age of growing ecological threats, where large corporations have an added responsibility to embrace green practices, BPCL has led the way with a unique hazardous waste management project.
  2. When company realized that it needed to automate the process of waste disposal?
  3. Give the views and opinions of Mr. Atul Vyawahare, senior manager (Environment), BPCL regarding waste disposal process.
  4. How “Oil Hazardous Waste Management system” has helped BPCL in compliance with statutory agencies?
  5. Write a short note on Oil Hazardous Waste Management system (OHWMS).
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