(It was published in the Official Gazette dated 17/06/2004 and Issue No. 25495.)

 

PART ONE

General Provisions

 SECTION ONE

Objective, Scope, Legal Basis, Definitions

Objective

Article 1- The objective of this Regulation is to determine the principles and procedures concerning the licenses to be granted to real and legal persons in order to ensure the transparent, non-discriminatory and stable performance of market activities pertaining to the delivery of petroleum supplied from domestic and foreign resources to consumers, directly or after processing, in a reliable, cost-effective manner within a competitive environment as well as the principles and procedures concerning the notifications to be made to the Authority and concerning the record keeping systems.

Scope

Article 2- This Regulation covers the principles and procedures concerning the duties, powers and responsibilities of the Authority for the licensing transactions, the provisions necessary to be contained in the licenses, the rights and obligations of licensees, the notifications and the record keeping system.

Legal basis

Article 3- (As amended by: O.G.-5/10/2013-28786)

This Regulation has been prepared on the basis of the Law No. 4628 of 20/2/2001 on the Organization and Duties of the Energy Market Regulatory Authority and the Petroleum Market Law No. 5015 of 4/12/2003.

Definitions

Article 4- The terms used in this Regulation are defined as follows:

1. Law: Petroleum Market Law No. 5015 of 4/12/2003;
2. Authority: Energy Market Regulatory Authority;
3. Board: Energy Market Regulatory Board;
4. President: President of the Energy Market Regulatory Board;
5. Liquid fuel: Benzene types, naphtha (except for raw material and solvent naphtha) gas oil, jet fuel, diesel oil types, fuel oil types and biodiesel;
6. Liquid fuel station: Places established in conformity with the relevant legislation (technical, quality, safety) by distributors or vendors who have signed exclusive purchase contracts with those distributors, and are operated under the registered trademark of a liquid fuel distributor or distributors from a different sub-title, and are specifically serving to meet the liquid fuel, lube oil, auto-gas, LPG needs of the vehicles, offering the facilities of cleaning, facultative maintenance and other basic needs of the customers except for LPG in bottles;
7. Vendor: Real or legal persons having the necessary equipment to perform vendor activities,
8. Vendor activity: The process of authorizing real or legal persons to deliver liquid fuel to consumers by liquid fuel distribution companies under a contract of the mutual liabilities, including a feasibility study;
9. Distribution: All liquid fuel sale and transportation activities to vendors including wholesale and transportation of liquid fuel to eligible consumers;
10. Crude Oil: Natural hydrocarbons produced from the ground in a liquid state;
11. Bunker: Liquid fuel and lube oil supplied to sea vehicles in and/or next to territorial waters or to domestic or foreign airplanes at airports, whether taxed or not;
12. Bunker delivery company: License holding capital companies which supply bunker obtained domestically or from abroad to air and sea vehicles;
13. Transmission: Transportation of petroleum through pipelines (except for the producers’ pipelines connected to the refinery or transmission grid and the pipelines within the facilities);
14. Related legislation: Petroleum market-related Laws, regulations, licenses, communiques, circulars and Board decisions;
15. Processing: The procedures regarding the production of new products from petroleum and other chemical materials, except for the production of lube oil, and/or the alteration of the quality or quantity of products;
16. Malicious intent: Any act or negligence causing loss, contamination, deterioration or misuse of petroleum while performing market activities;
17. Consumer: Real or legal persons utilizing petroleum;
18. Utilization: The consumption of petroleum only for personal and operational needs;
19. Licensed storage: Storage of the petroleum under the ownership of third parties to meet the stocking and operational requirements of those performing market activities;
20. Lube oil: Natural or artificial materials turned into substances which reduce friction and/or abrasion between two moving and contacting surfaces or has cooling effect, upon addition of certain additives to base oil or to the materials processed with chemical synthesis method;
21. Petroleum: Liquid fuel, crude oil and products;
22. Market: The market comprising of supply and sales, refining, processing, storage, transmission, bunker delivery, transportation, distribution, vendor activity, utilization of petroleum and the operations and processes associated therewith;
23. Refining: The process of producing new products from crude oil; 24. (Repealed by: G.-14/10/2008-27024)
24. (As amended by: O.G.-12/8/2008-26965) Transportation: Crude oil and liquid fuels transportation activities carried out by maritime and railway transportation vehicles within the scope of cabotage;
25. Unsafe act: An act or negligence in the conduct of any market activity that causes or is likely to cause the death, disability or sickness of a person that is lawfully at the place or within the vicinity where market activity is performed or that causes or is likely to cause environmental pollution;
26. Technical arrangement: All kinds of arrangements, including administrative provisions that are required to be observed, which cover any or several issues related with standards, measurements, characteristics, processing and production methods, related terminology, symbols, packaging, marking, labeling and conformity evaluation process regarding petroleum and mineral oil;

 

28. (As amended by: O.G.-12/8/2008-26965) Facility: Maritime or railway vehicles or a structure comprising of the whole administrative sections and primary and secondary units where license-related activity takes place;
29. National marker: Additive to be added to the liquid fuel at the refinery exit point or at customs entry point, or additive to be added to the liquid fuel produced as a by-product or in other forms in industry before putting into commercial use;
30. Production: The production, pre-processing and transportation via pipelines to storages within or in the vicinity of the field, transmission line or to the refinery or storage of petroleum;
31. Producer: A legal person which performs the activity namely the extraction of petroleum from underground reserves, pre-processing of petroleum and transportation of petroleum via pipelines to a refinery, transmission line or storages located within or in the vicinity of the site or storage of the petroleum under the Petroleum Law No. 6326 of 7/3/1954;
32. Product: Any hydrocarbon of product or by-product produced from crude oil and/or crude oil products via physical and chemical processes or refining and other methods;
33. (As added by: O.G.-31/1/2013-28545) Ministry: Ministry of Energy and Natural Resources;
34. (As added by: O.G.-28/11/2014-29189) Vendor activity organization: The structure which includes minimum five vendors ⁽¹⁾ and is created by distribution undertakings in order to sell and supply liquid fuel to vendors;
35. (As added by: O.G.-26/12/2014-29217) Corporate Information System: The whole of computers used by corporation employees and the file, application, database, e-mail server and network infrastructure serving to those;
36. (As added by: O.G.-26/12/2014-29217) Industrial Control Systems: Information and communication systems which ensure the monitoring and sometimes the management, at one center or more than one centers, of the processes such as the generation of energy, the processing of crude oil, hard coal and similar raw materials providing energy and making them ready for consumption and the transfer of energy through transmission or distribution systems;
37. (As added by: O.G.-20/12/2017-30276) ⁽¹²⁾ Registered Electronic Mail (KEP): The qualified form of electronic mail, which provides legal evidence in respect of use, including sending and delivery, of electronic messages-taken as basis for valid notifications- for capital companies under article 7/a of the Notifications Law No. 7201 of 11/2/1959.

 

• 
  Its execution is stayed under the Decision No. 2015/1277 of 21.06.2016 (Decision on Objection to the Stay of Execution) rendered by the Council of State, the Plenary Session of the Chambers for Administrative The Decision was served upon the Authority on 26.07.2016.

 

 License

SECTION TWO

License, Activities Requiring License, and Exemptions

 

Article 5- License is a permission certificate which should be obtained from the Authority by a real or legal person in order to carry out activities in the market.

A license shall be obtained separately for each market activity and each facility where a market activity is carried out. Facility-specific provisions shall be contained in licenses, in case such facility is included in the scope of the license.

A license is not transferable. However, in case a limited or an irrevocable project financing is provided with a licensee legal person by banks and/or financial institutions and in case, as required by the loan contract provisions, the banks and/or financial institutions make notification to the Authority along with the grounds thereof, they may request for grant of license to a another legal person they will propose within the framework of the terms and conditions provided for in this Regulation, provided that such legal person undertakes all the obligations included in the scope of the licensee legal person’s license. A license shall be granted to the proposed legal person, provided that it fulfills the obligations included in the scope of this Regulation.

The sanctions referred to in the Law shall be imposed on the relevant real or legal person in case it is found that such real or legal person carries out activities in the market without obtaining the relevant license.

The persons that obtained license from the Authority should comply with the provisions of the related legislation, in addition the provisions of the other legislation.

Activities requiring license, and exemptions

Article 6- Licenses shall be granted under the following sub-headings:

1. Refining Undertaking License,
2. Processing License,
3. Lube Oil License,
4. Storage License,
5. Transmission License,
6. Eligible Consumer License,
7. Bunker Delivery License,
8. Distribution Undertaking License,
9. Transportation License,
10. Vendor Activity

Vendor activity licenses shall be granted under the sub-titles “liquid fuel or bunker”, in accordance with the categories “vendor with a station or vendor without a station”.

(Supplementary paragraph as added by: O.G.-23/1/2016-29602) ^{(10) (11)} Lube oil licensees or distribution undertaking licensees may perform production of base oil from waste lube oil, provided that this is registered in their sub-titles. Production of base oil from waste lube oil is included in production of lube oil.

 

The processes for obtaining liquid fuel as a by-product in industrial facilities; and as carried out by refining undertaking, distribution undertaking and bunker delivery licensees:

• The processes of addition of organic and inorganic additives for betterment of characteristics of liquid

fuel,

• The blending processes which are in compliance with technical arrangements and do not bring a separate

characteristic in liquid fuel,

do not require license.

It is not necessary to obtain transmission license for transportation activities performed via pipelines to storages/facilities owned by the persons that receive petroleum directly from refineries or that do not provide services to third parties.

(Paragraph as added by: O.G.-21/4/2011-27912) Licensees that perform bunker delivery activities at civil aviation airports which do not have a licensed storage facility may provide liquid fuel supply services to other licensees performing bunker delivery activities, in addition to their own activities, via liquid fuel tankers they use as an aircraft refueling vehicle at those airports, provided that the matters stated in the other related legislation are also fulfilled.

Whether included in the scope of the license or not; in case the products obtained as a by-product in industrial facilities are associated with an activity as liquid fuel in the country, the industrialists are obliged to deliver to the distributors the ones which are in conformity with the technical arrangements, provided that they inform the Authority, and are obliged to deliver to the refineries the ones which are not in conformity with the technical arrangements in the case that the refineries deliver affirmative opinions and that a consensus is reached.

(Paragraph repealed by: O.G-12/8/2008-26965)

 

 

SECTION THREE

License Application, Examination and Evaluation, Conclusion, The Matters to Be Contained in Licenses as a Minimum, and Entry into Force of Licenses

 

Article 7- (Paragraph as amended by: O.G.-4/11/2011-28105) The persons that wish to obtain a license shall, along with the License Application Letter contained in Annex-1, apply to the Authority by submitting the information and documents to be provided as per “The Explanations for License Applications in the Petroleum Market”, determined by the Board decision. (Supplementary sentence as added by: O.G.-3/4/2012-28253) Their documents and information, which should be submitted as per “The Explanations for License Applications and Notifications in the Petroleum Market”, shall be evaluated within the framework of article 8 of “The Regulation on  the Principles and Procedures to be Followed in the Provision of Public Services” which entered into force upon it  was published in the Official Gazette dated 31/7/2009 and Issue No. 27305, and information and documents shall be requested in compliance with article 8 of that Regulation. In case the applicant wishes to perform more than one activity within the scope of the license the applicant requested, the annexes pertaining to the relevant activity shall also be contained in the application file.

“Course and Emergency Lane File”, prepared in compliance with the principles and procedures set forth in the Regulation on the Technical Criteria Applicable in the Petroleum Market, shall be enclosed with the refining undertaking, transmission and storage license applications.

Real or legal persons that are:

1. Domiciled in Turkey,
2. Registered with trade or industry registry,
3. Taxpayers of income or corporate tax

may file application in order to obtain license.

(Supplementary paragraph added by: O.G.-04/5/2007-26512) (Paragraph as amended by: O.G.- 5/10/2013-28786) No license shall be granted to those about whom there is a final verdict for conviction:

2007. Due to their acts in violation of the Anti-Smuggling Law No. 5607 of 21/3/2007.
2008. In case such final court decision is rendered about a license holding legal person: By the date when the crime was committed, the shareholders who hold more than ten percent of the shares in that legal person and those authorized to represent and bind the legal person and the chairperson and members of its board of directors, even if they have subsequently resigned, shall not be granted license, and these persons shall not hold shares directly in legal persons that file license
2009. Until such time as the decision of non-prosecution or the court decision becomes final, no new license shall be granted for a facility (except for refinery) in which it was determined that the act was

ç) No new license shall be granted for the license-related facility, until payment of the administrative fine imposed on the licensee by the Authority.

(Supplementary paragraph as added by: O.G.-28/11/2014-29189)⁽⁹⁾ Legal persons whose licenses have been cancelled under the paragraphs 1 and/or 5 of article 20 of the Law due to their Special Consumption Tax-free (SCT-free) sales in violation of the legislation; and on the date when the license cancellation-related act was committed, the shareholders who directly or indirectly hold more than ten percent of the shares in that legal person and those authorized to represent and bind the legal person and the chairperson and members of its board of directors shall not be granted license, and these persons shall not hold shares directly or indirectly in legal persons that file license application.

Private law legal persons, which carry out market activities in Turkey and are of a capital company nature under the legislation of foreign states, shall be deemed as domiciled in Turkey with regard to their activities in  Turkey, in accordance with the legislation on the protection of the value of Turkish currency.

In addition to those mentioned above, the following conditions and qualifications shall be required in  license applications, depending on the license types:

1. (As amended by: O.G.-3/8/2012-28373) For refining undertaking, transmission, storage, processing, distribution undertaking and bunker delivery licenses; the applicant legal person should be a joint stock company or a limited liability company in line with the provisions of the Turkish Commercial Code No. 6102 of 13/1/2011, and its paid-in capital should be in the amount of minimum TL 75,000,000 for refining undertaking license, TL 1,000,000 for transmission license, TL 1,500,000 for storage license, TL 750,000 for processing license, TL 10,000,000 for distribution undertaking license and TL 3,000,000 for bunker delivery license;
2. (Supplementary paragraph as added by: O.G.-10/8/2011-28021) In Lube Oil License applications; the

 

Capacity Report, which states that the Production Competence Score pertaining to the license-related facility is minimum 50%, should be submitted to the Authority;

60. (4) For distribution undertaking licenses, the annual sales target for the liquid fuel of white product (petroleum, diesel oil) nature should be minimum 60.000 tons in the marketing projection;
61. (4) For bunker delivery licenses, permission shall have been obtained from the institutions and/or organizations in relation to the facilities;

e) ⁽⁴⁾ (Repealed by: O.G.-15/6/2006-26199)

46. (⁴⁾ (As amended by: O.G.-15/3/2011-27875) For eligible consumer licenses, it is necessary to have a petroleum consumption within or over the eligible consumer limit determined in article 46. However, the amount of petroleum consumption which took place in the preceeding year shall not be taken into consideration in the eligible consumer license applications to be filed for electricity generation facilities about which it is documented by the capacity report that they have a petroleum consumption capacity within or over the eligible consumer limit. For those facilities, the amount to be taken as basis for the petroleum consumption shall be calculated on the basis of the projection submitted to the
47. (As added by: O.G.-28/11/2104-29189) It is necessary that the distribution undertaking and bunker delivery licensees have the adequate technical and economic power to be determined by the Board; and within this scope, along with distribution undertaking and bunker deliver license applications:
    • For the legal persons holding directly or indirectly ten percent and more than ten percent of the shares in or of the legal person (five percent and more than five percent in publicly-held companies), the originals and notarized copies of their balance sheets and income statements which pertain to the last three years and have been audited by an independent audit firm or have been certified by tax offices (in case the licensee legal person has been incorporated newly, its registration statement) and the declaration containing the information about the facilities utilized for their activities;
    • For such real persons; their income tax returns which pertain to the last three years and have been certified by tax offices, their title deed registry records and the statement containing the information about the facilities utilized for their activities and the information about their bank and intermediary firm accounts

should be submitted to the Authority.

(Paragraph as amended by: O.G.-12/8/2008-26965) In seaway-related transportation license applications, it is necessary that minimum one transportation vehicle is owned or that minimum one transportation vehicle has been acquired through financial leasing. However, in the transportations to be carried out by railway or seaway, the condition “ownership or financial leasing” shall not be required in case a rental or a service contract is concluded with the persons concerned.

License applications shall be filed before supplying liquid fuel or bunker for the activities included in the scope of vendor activity license and before initiation of any attempts-which may be associated with a right- for other licenses.

The evaluation on whether or not the documents requested from real or legal persons in the course of the application are in compliance with the related legislation shall be completed within ten business days following the date when the submitted documents are entered in the central records of the Authority.

In case it is found that the license applications have not been filed in compliance with the related legislation, the applicants shall be notified in writing that those deficiencies should be completed within ten business days and that, otherwise, the documents submitted within the scope of the application shall be returned. In case those deficiencies are not completed within the said term, the application shall be deemed not to have been filed, and the application documents shall be returned.

Taking license applications under examination and evaluation

Article 8- For the license applications, found to have been filed without any deficiencies as per the license application principles, to be taken under examination and evaluation; a written notification shall be served upon the license applicants and the license applicants shall be requested to transfer 1% of the license obtaining fee to the Authority’s account within ten business days as from the notification date. The notification shall also contain the statement that the application shall be deemed to have been rejected in case this obligation is not fulfilled.

(Paragraph repealed by: O.G.-4/11/2011-28105)

With the exception of transportation, vendor activity and eligible consumer license applications; the license application shall be taken under examination and evaluation following submission of the document stating that 1% of the license obtaining fee has been transferred to the Authority’s account. (Supplementary sentence as added by: O.G.-4/11/2011-28105) Transportation, vendor activity and eligible consumer license applications shall be taken under examination and evaluation as of the date when it has been found that they were filed without any deficiencies as per the license application principles or as of the date when the relevant deficiencies-if any-have been completed.

(Paragraph added by: O.G-7/12/2008-27077) (Paragraph as amended by: O.G.-31/1/2013-28545) In refining undertaking and storage license applications, following submission of the document stating that 1% of the license obtaining fee has been transferred to the Authority’s account, the license application shall be taken under examination and evaluation; and the information, containing the application-related location’s province, district, village, neighborhood, square, parcel, plot number in a scale of 1/25.000 and coordinate data determined in accordance with the UTM-ED50 (6^o) system, shall be announced on the web page of the Authority. After the duration of the announcement made regarding the refining undertaking or storage license application expires; the license applications filed in order to perform another refining undertaking or storage activity in the market, to perform storage activity in the natural gas market, to perform generation activity in the electricity market at the announcement-related location shall be returned or rejected.

In case a license application is taken under examination and evaluation, this shall not mean that the applicant becomes entitled to obtain the license.

Examination and evaluation

Article 9- In the examination and evaluation carried out by the Authority, the fitness for the purposes envisaged by the related legislation shall be taken into consideration for all licenses.

(Supplementary paragraph added by: O.G-7/12/2008-27077) (Paragraph as amended by: O.G.- 31/1/2013-28545) In the event that there is another application which has been filed for storage license in the natural gas market or for generation license in the electricity market, for storage and/or refining undertaking license in the market in order to perform activities at the announcement-related location, within ten business days following the announcement and/or within the period elapsed until the announcement made regarding the relevant refining undertaking or storage license and which has been filed within the framework of the paragraph 4 of article 8 as from the application date of the relevant refining undertaking or storage license and contains the application-related location’s province, district, village, neighborhood, square, parcel, plot number in a scale of 1/25.000 and coordinate

 

data determined in accordance with the UTM-ED50 (6^o) system; the evaluation shall be carried out within the framework of the following principles:

1. The license applications, which have been filed for electricity or natural gas markets or for the market in order to perform activities at the site about which studies are carried out by the Ministry as a site of electricity generation facility based on nuclear energy in the electricity market or at the location allocated or envisaged to be allocated under an international agreement, shall be rejected at all
2. In the event that the license application-related location, announced in accordance with the paragraph 4 of article 8, is not a location allocated or envisaged to be allocated or that the Ministry does not carry out studies about the license application-related location as a site of generation facility based on nuclear energy and that, however, there is another license application or there are other license applications filed for storage license in the natural gas market or for generation license in the electricity market, for storage and/or refining undertaking license in the market in order to perform those activities at the announcement-related location; the matter that for which application the licensing process shall continue at the announcement-related location shall be determined by a Board decision in accordance with the following principles and
   • Among the license applications, the applications for underground natural gas storage in the natural gas market, generation based on other resources or combustibles-except for natural gas-in the market, storage to be carried out in a liquefied natural gas facility in the natural gas market, refining undertaking in the market, generation based on natural gas in the electricity market and storage license in the market shall be given priority,
   • The applications, falling outside the license application(s) given priority in accordance with the subparagraph (1) above, shall be returned or
3. In the event that there is a decision rendered for the conduct of refining undertaking or storage market activity at the license application-related location announced within the scope of the paragraph 4 of article 8 and that there is more than one refining undertaking or storage license application for the market; the application, which has been filed firstly for the location applied for, depending on the application’s sequence number entered in the Authority’s records, shall be taken into consideration in determining the application for which the licensing process shall continue. The applications, other than the application on the first rank, shall be returned or

In order to conclude the examination and evaluation process, the applicant may also be requested to submit all kinds of additional information and documents required, and the persons authorized to represent the applicant real or legal person may directly be invited to have an interview.

Conclusion of examination and evaluation

Article 10- The evaluation on a license application shall be resolved in no later than sixty days and the result shall be notified to the person concerned.

(Paragraph as amended by: O.G.-19/10/2016-29862) The report on the examination and evaluation shall be submitted to the Board, and the license application shall be concluded by a Board decision. In case the license application is rejected by a Board decision, the applicant shall be informed in writing about the grounds of the rejection. The real or legal person that has fulfilled its obligations shall be granted license by a Board decision. However, all or a part of the Board’s powers for the procedures and processes in relation to the grant of licenses and the rejection of applications for the licenses may be transferred to the President or to the Head of the Petroleum Market Department by the Board.

By a notification to be made to the real or legal person applicants found acceptable to obtain refining undertaking, transmission, storage, processing, lube oil, distribution undertaking or bunker delivery licenses by the Board decision; those real or legal persons shall be notified in writing that the license shall be granted if they submit the document stating that the remaining amount of the license obtaining fee has been transferred to the Authority’s account and if the other obligations, if any, stipulated within the scope of the Board’s affirmative decision, are fulfilled within ninety days. (Supplementary sentence as added by: O.G.-

 

26/05/2007-26533) In case it is found that the license application-related project or investment is included in the scope the principles and procedures set forth in the legislation issued on the basis of the Environmental Law No. 2872; the applicant shall also submit the document regarding the Environmental Impact Assessment Affirmative Decision or the Environment Impact Assessment Not Required Decision within this term.

(Paragraph as amended by: O.G.-20/10/2006-26325) Such affirmative decision shall not be taken about vendor activity, transportation and eligible consumer licenses.

(Paragraph as amended by: O.G.-26/05/2007-26533) In case the obligations, set forth in the affirmative decision taken about the license application, are not fulfilled within 90 days as from the date of notification to the real or legal person; the license application shall be rejected under the relevant Board decision. In case it is found that the license application-related project or investment is included in the scope the principles and procedures set forth in the legislation issued on the basis of the Environmental Law No. 2872, this term may be extended by a Board decision due to force majeure events or due to the failure in the fulfilment of the obligations-within this context- for reasons  not arising from the real or legal person.

(Sixth paragraph repealed by: O.G.-19/10/2016-29862)

(Paragraph as amended by: O.G.-19/10/2016-29862) Limited to refining undertaking, transmission, storage, processing, lube oil, distribution undertaking and bunker delivery licenses; the licensee’s name/trade name, the type of license obtained by the licensee and its duration shall be published in the Official Gazette.

The matters to be contained in licenses as a minimum Article 11- As a minimum:

1. Name or trade name of the licensee,
2. Sub-title or category, if any, within the scope of the license,
3. Characteristics of the activity included in the scope of the license,
4. Effective date and duration of the license,
5. Information on the type and geographical position of the facility and on the technology and the quantities,

 

if any, if any,

1. Provisions specific to the license and/or to the facility or the facilities included in the scope of the license,
2. The matter of compensating the losses and damages to the consumer due to petroleum supply not in

 

conformity with the technical arrangements,

ğ) (As added by: O.G.-7/11/2013-28814) In refining undertaking licenses; information on the product type, utilization situation, status, capacity, tank number regarding the internal consumption tanks and the liquid fuel tanks to which national marker is applicable and inapplicable, tanks for products blended to liquid fuel, product except liquid fuel, by-product, crude oil, raw materials at the facilities,

 

1. (As added by: O.G.-20/12/2017-30276) ⁽¹²⁾ In processing licenses regarding production of liquid fuel from wastes; with regard to the products blended to liquid fuel, the products except liquid fuel, the by-products at the facility, information on the types of liquid fuel to be produced and on the wastes to be used and on the product type, utilization situation, status, capacity, tank number regarding the internal consumption tanks and the tanks containing liquid fuel to which national marker is applicable and inapplicable,

shall be contained in licenses.

Entry into force of licenses

Article 12- A license shall enter into force on the effective date specified therein, and the licensee’s rights and obligations included in the scope of the license shall become effective as from that date.

 

SECTION FOUR

License Fees, Durations, Modification, Duration Extension, Termination and Cancellation

License fees

Article 13- (As amended by: O.G.-4/11/2011-28105)

License fees are the amounts mandatory to be transferred to the Authority’s account for the procedures regarding license obtaining, license modification, license duration extension and making copies of licenses. License fees applicable for the next year shall be determined by a Board decision and be published in the Official Gazette, by the end of December every year. As for the changes in license fees; the license fee effective on the application date shall be paid for the procedures in consideration of which the license fee should be paid in advance, and the license fee effective on the conclusion date of the application shall be paid for the other procedures.

(As amended by: O.G.-19/2/2015-29272) The fees for all kinds of license modifications, license duration extensions, making copies of licenses and the license obtaining fees for vendor activity, transportation and eligible consumer licenses shall be paid in advance.

 

If there is an amount paid as 1% of the license obtaining fee, this amount shall be recorded as revenue by  the Authority in case the license application is rejected, and the applicant shall not be entitled to request for reimbursement of the amount recorded as revenue.

In case more than one modification request is submitted for the same license in one application letter, one single license modification fee shall be paid. The license fees, paid for the applications returned or rejected, shall be reimbursed to the applicants at their request, with the exception of the portions recorded as revenue.

License durations

Article 14- Licenses shall be granted for a period of up to 49 years.

The rights acquired and the obligations undertaken upon the grant of a license shall be effective during the license duration.

License modification

Article 15- (As amended by: O.G.- 28/09/2006-26303)

(Paragraph as amended by: O.G.-4/11/2011-28105) Licenses may be modified upon licensees’ request or ex-officio by the Authority. The information on the registered distribution company shall ex-officio be modified in the licenses of vendors whose distribution undertaking’s trade name has been changed. License modification fee shall not be collected for modifications arising from errors of fact and for modifications made ex-officio by the Authority.

(Paragraph as amended by: O.G.-4/11/2011-28105) A license modification, made at the request of the licensee, shall not contain any provisions disrupting competitive conditions. A license modification file, whose contents are determined by a Board decision, shall be enclosed with the application letter for license modification. The evaluation on whether or not the modification application is in compliance with the related legislation shall be completed within ten business days following the date when the submitted documents are entered in the central records of the Authority. In case it is found that the modification application has not been filed in compliance with the related legislation, the applicant shall be notified in writing that those deficiencies should be completed within ten business days. In case those deficiencies are not completed within the said term, the modification application shall be deemed not to have been filed, and the modification application documents shall be returned.

License-related modification applications shall be concluded within sixty days.

In case the licensee needs a certain period of time in order to fulfill new and/or additional obligations to arise from license modification, such period of time shall be determined by a Board decision and be indicated on the licenses modified.

(Fifth paragraph as amended by: O.G.-19/10/2016-29862) License modifications shall be concluded by a Board decision. However; all or a part of the Board’s powers related to license modifications may be transferred to the Presidency or to the Presidency of the Petroleum Market Department by the Board.

(Supplementary paragraph added by: O.G.-15/3/2011-27875) (As amended by: O.G.-19/10/2016- 29862) In case it is understood that a document-except for business license and work permit- in the license modification file has subsequently expired or lost its validity; the circumstance shall be notified to the licensee and the licensee shall be requested to submit the valid document to the Authority within fifteen days following the notification date. In case the valid document is not submitted to the Authority by the end of this term, the license modification procedures shall be terminated. In case it is understood that the business license or the work permit in the license modification file has subsequently expired or lost its validity, the license modification procedures shall be terminated without granting a period of time.

Duration extension

Article 16- License durations may be extended upon request of the licensee, starting from the expiration of the license duration and by observing the maximum durations stipulated.

The request for duration extension may be made by a written application to be filed with the Authority by the licensee at the latest two months, at the earliest six months (Wording as amended by: O.G.-4/11/2011-28105) prior to the expiration of the license duration in force.

(Paragraph as amended by: O.G.-15/3/2011-27875) The matters to be taken into consideration in the

 

examination and evaluation of requests for duration extension, shall be determined by a Board decision.

(Supplementary paragraph as added by: O.G.-4/11/2011-28105) ⁽⁵⁾ The evaluation on whether or not the application for duration extension is in compliance with the related legislation shall be completed within ten business days following the date when the submitted documents are entered in the central records of the Authority. In case it is found that the application for duration extension has not been filed in compliance with the related legislation, the applicant shall be notified in writing that those deficiencies should be completed within ten business days. In case those deficiencies are not completed within the said term, the application for duration extension shall be deemed not  to have been filed, and the documents regarding the application for duration extension shall be returned.

(Paragraph as amended by: O.G.-19/10/2016-29862) The examination and evaluation on the application for duration extension shall be concluded within sixty days as from the date when the written application filed is entered in the central records of the Authority. The applications for extension of license durations shall be concluded by a Board decision. However; all or a part of the Board’s powers related to conclusion of duration extensions may be transferred to the Presidency or to the Presidency of the Petroleum Market Department by the Board.

The Board decision on duration extension shall be published in the Official Gazette upon it enters into force. (Supplementary paragraph added by: O.G.-15/3/2011-27875) (Paragraph as amended by: O.G.- 19/10/2016-29862) With the exception of the business license and work permit sought within the scope of the

application for duration extension, in case it is understood that a document has subsequently expired or lost its validity; the circumstance shall be notified to the licensee and the licensee shall be requested to submit the valid document to the Authority within fifteen days following the notification date. In case the valid document is not submitted to the Authority by the end of this term, the procedures for extension of the duration shall be terminated. In case it is understood that the business license or the work permit, sought within the scope of the application for duration extension, has subsequently expired or lost its validity, the procedures for extension of the license duration shall be terminated without granting a period of time.

Termination and cancellation of licenses

Article 17- (As amended by: O.G.-15/3/2011-27875)

(Sentence as amended by: O.G.-19/10/2016-29862) Licenses shall be terminated by a Board decision. However; all or a part of the Board’s powers related to termination of licenses may be transferred to the Presidency or to the Presidency of the Petroleum Market Department by the Board, which powers shall be exercised in the following cases:

 

licensee;

1. In case the licensee is declared bankrupt;
2. In case the licensee’s legal personality dissolves or terminates;
3. In case the licensee is deceased;

ç) With the exception of refining undertaking, transmission and storage licenses, at the request of the

1. (As amended by: G.-4/11/2011-28105) In vendor activity licenses, in case a new vendor contract is

 

not submitted to the Authority or the application for replacement of the distribution undertaking is not filed with the Authority within three months as from the termination or cancellation of the distribution undertaking license pertaining to the distribution company registered in the license or as from termination of the vendor contract for any reason;

1. (As amended by: O.G.-19/10/2016-29862) Upon it has been understood that a document has subsequently expired or lost its validity-with the exception of the business license and work permit sought within the scope of the license application-, and despite the circumstance has been notified to the licensee and despite the licensee has been requested to submit the valid document to the Authority within fifteen days following the notification date, in case the valid document has not been submitted to the Authority by the end of this term;
2. In case an obligation requiring fulfillment within a certain period of time, as registered in the license at the phase for license granting, has not been fulfilled in time;
3. (As added by: O.G.-23/1/2016-29602) ⁽¹¹⁾ In case a vendor activity is not performed for a period of time longer than six months, with the exception of justifiable reasons or force majeure events;

ğ) (As added by: O.G.-19/10/2016-29862) In case it is understood that the business license or the work permit, sought within the scope of the license application, has subsequently expired or lost its validity;

such licenses shall automatically terminate without the requirement of a notification at the end of the license

durations.

(Paragraph as amended by: O.G.-1/2/2015-29254) It is mandatory for distribution undertaking licensees

to have an economic power, equipment and capacity enabling distribution of minimum 60.000 tons of white products (petroleum, diesel oil) on a yearly basis. By virtue of the relevant articles of the Law, administrative sanctions shall be imposed on the distribution undertakings about which it has been determined that they did not, without resting on a legally valid reason, sell minimum 60.000 tons of white products (petroleum, diesel oil) on a yearly basis as declared in the marketing projection. In monitoring the distribution undertaking licensees’ obligation to sell minimum 60.000 tons of white products (petroleum, diesel oil) on a yearly basis, a transition period of one year shall be granted to the distribution undertaking licensees as from the effective dates of their licenses. The periods, to be taken as basis for the fulfillment of this obligation, shall be determined by taking into consideration the calendar years following the expiration date of the transition period. In evaluating the obligation to sell minimum 60.000 tons of white products (petroleum, diesel oil) on a yearly basis, the quantities pertaining to the liquid fuel trading activities performed by distribution undertakings between each other and the quantities pertaining to the liquid fuel exports performed within the scope of the related and the other legislation shall not be taken into consideration.

In advance of minimum three months to the termination date of their activities, distribution undertaking licensees are obliged to notify their vendors of the circumstance and furnish information to the Authority.

In case refining undertaking licensees wish to terminate their licenses, their licenses shall terminate by a Board decision, following completion of transfer-delivery of the facility and stock inventory pertaining to the national petroleum stock and conclusion of the income accounting transactions.

However, transmission and storage licenses shall terminate by a Board decision, provided that the documents-proving that the commitments undertaken with third parties in the market were fulfilled- have been submitted to the Authority.

(Paragraph as amended by: O.G.-5/10/2013-28786) In the cases regulated by article 20 of the Law, the licenses shall be cancelled by a Board decision within the scope of “the Regulation on the Principles and Procedures to be Followed in Preliminary Investigations and Inquiries and in Inspections to be Carried Out in the Petroleum Market”, which was published in the Official Gazette dated 6/1/2005 and Issue No. 25692.

 

PART TWO

Provisions Regarding Licenses

SECTION ONE

Basic Rights and Obligations of Licensees

Basic rights and obligations of licensees

Article 18- A license shall grant its holder the rights to perform the activity contained in the license and to undertake commitments in this regard.

The rights granted by a license may be exercised provided that the matters set forth in the related and other legislation are fulfilled.

Licensees are obliged to construct, design and operate the facilities where the market activity will be carried out, which construction, design and operation should be realized as per the principles and procedures determined in the related and other legislation.

(Supplementary paragraph as added by: O.G.-15/3/2011-27875) In case a change takes place as to the information already registered in the license or it becomes necessary to add information into or delete information from the license; the licensee should, in no later than sixty days as from the date when such circumstance takes place or when the licensee becomes aware of such circumstance, file the relevant application with the Authority along with all the necessary information and documents and request for modification of its license. The term referred to in this paragraph shall apply as three months in the case of replacement of a distribution company registered in the vendor activity license.

(Supplementary paragraph added by: O.G.-5/10/2013-28786) (Sentence as amended by: O.G.- 19/2/2015-29272) In case a change take places in the shareholding/partnership structure of the licensee legal person, in the chairperson or members of its board of directors or in the persons authorized to represent and bind the legal person; the licensee shall notify this circumstance to the Authority along with the following documents in no  later than six months as from the date when such change takes place or is published in the Turkish Trade Registry Gazette:

1. With regard to changes in associations, foundations, cooperatives and publicly-held shareholders, except for joint stock companies, in case a change takes place in the partnership/shareholding structure of the licensee legal person, the notarized copy of the share transfer agreement or the Turkish Trade Registry Gazette indicating the change, and if a new real person has become a shareholder/partner of the legal person-the criminal record certificate pertaining to this shareholder/partner;
2. In case a replacement takes place in the chairperson or members of the board of directors of the license holding legal person, the notarized copy of the resolution related to the change and the Turkish Trade Registry Gazette in which the resolution was published and the criminal record certificates pertaining to the new chairperson and/or members;
3. In case a replacement takes place in the persons authorized to represent and bind the licensee legal person, the authorization certificate containing the name and surname, identity information, specimen signature of and stating the boundaries of authority pertaining to the newly appointed person, and the criminal record certificate pertaining to the newly appointed

Those who perform market activities should avoid meticulously any kind of activity that would result in malicious intent or unsafe activities, take necessary measures to prevent their occurrence and eliminate any undesirable situations as soon as possible.

(Repealed by: O.G.-20/12/2017-30276) ⁽¹²⁾ (Repealed by: O.G.-20/12/2017-30276) ⁽¹²⁾ (Repealed by: O.G.-20/12/2017-30276) ⁽¹²⁾ (Repealed by: O.G.-20/12/2017-30276) ⁽¹²⁾

(Supplementary paragraph added by: O.G.-17/08/2007-26616) (Paragraph as amended by: O.G.- 7/4/2012-28257) With the exception eligible consumers, in the crude oil and liquid fuel sales and provision of services to persons other than eligible consumers, licensees are obliged to indicate also the license number pertaining to the addressee on the invoices and dispatch notes to be issued by the licensees as per the provisions of the Tax Procedure Law No. 213.

(Added by: O.G.-20/12/2017-30276) ⁽¹²⁾

License holding capital companies are obliged to declare to the Authority their KEP addresses which are convenient for e-notifications, active and belong to them and are obliged to ensure that their KEP addresses are continuously valid, active and convenient for e-notifications.

 

SECTION TWO

Refining Undertaking License

Activities that may be carried out within the scope of refining undertaking license

Article 19- Refining undertaking licensees are entitled to engage in the following activities in the market:

1. Establishment and operation of refining facility;
2. Purchases and sales of petroleum;
3. Obtaining new products from crude oil;
4. Domestic trade of crude oil with other refining undertakings and producers

In addition to the above activities; refining undertaking licensees may carry out transportation activities-via pipelines-to other facilities nearby and processing and storage activities inside or in the vicinity of refining facility without obtaining license and bunker delivery activities other than the restriction set forth in Provisional Article 3 of the Law, provided that the said activities are registered in their licenses.

(Paragraph amended by: O.G.-21/09/2006-26296) Refining undertaking licensees may sell liquid fuel to distribution undertakings and/or other refining undertakings, and sell bunker to other bunker delivery companies provided that this is contained in their licenses.

Obligations of refining undertaking licensees:

Article 20- Refining undertaking licensees shall have the following obligations:

1. To operate the refining facilities included in the scope of their licenses;
2. To produce and deliver by-products complying with the technical arrangements;
3. In the supply of crude oil, to give priority to domestic crude oil and not to make any financial demands or

 

offers as to place and terms of delivery, which would be to the detriment of production companies;

1. To purchase domestic crude oil at the minimum prices occurred in the case of offer made by crude oil producers and to submit written replies to the offers-exceeding the minimum price-within fifteen days;
2. To retain the supplementary portion of the national petroleum stock;
3. To give priority to the production and delivery of liquid fuel and other products needed for the national

security;

1. To prepare the pricing for the purchase and sales of petroleum, as ceiling prices, taking into account the

global free market prices at the closest accessible point;

1. To provide and protect the production capacity of tactical liquid fuels utilized by Turkish Armed Forces, in case such product is demanded;
2. Within the scope of the national petroleum stock, to keep minimum twenty times of the average supplied daily product amount at their own storage or licensed storage facilities whether as a whole or separately according to their status;
3. To offer the same conditions to other distribution undertakings demanding liquid fuel from the refining undertaking licensee as the refining undertaking licensee does to its own distribution company;
4. To add a national marker, at the refinery exit or at the entry into the customs, in the quality and nature to be required by the Authority, to the liquid fuel they will market in Turkey;
5. (As added by: O.G.-7/11/2013-28814) To have the following registered in their licenses: Information on the product type, utilization situation, status, capacity, tank number regarding the internal consumption tanks and the liquid fuel tanks to which national marker is applicable and inapplicable, tanks for products blended to liquid fuel, product except liquid fuel, by-product, crude oil, raw materials at their facilities;
6. (As added by: O.G-7/11/2013-28814) As regards the license-registered utilization situation of the tanks at their facilities and the product type except liquid fuel tanks to which national marker is applicable, to declare to the Authority which one is utilized on de facto basis, which declaration shall be made within the scope of the provisions in “the Regulation on Petroleum Market Information System” published in the Official Gazette dated 9/12/2005 and Issue No. 26018;
7. n) (Added by: O.G.-26/12/2014-29217) (Amended by: O.G.-13/7/2017-30123) (Amended by: 20/12/2017-30276) ⁽¹²⁾ Within twenty-four months as from the facilities’ commissioning date, to start operating corporate information system and industrial control systems in compliance with the TS ISO/IEC 27001 Information Security Management System standard, and to have their systems certificated, proving before a certification body- accredited to the Turkish Accreditation Agency- that they perform activities in compliance with the TS ISO/IEC 27001 standard, and to ensure that the said certificates maintain their validities, and to take also as a reference the ISO/IEC TR 27019 Guiding Document, in addition to the TS ISO/IEC 27002-Code of Practice, in the Information Security Management System they shall set up in compliance with TS ISO/IEC

 

SECTION THREE

Processing License

 

Activities that may be carried out within the scope of processing license Article 21- (As amended by: O.G.-20/12/2017-30276) ⁽¹²⁾

In the market, processing licensees are entitled to engage in production of petrochemical products, production of bio-diesel or production of liquid fuel from waste with the exception of those classified as hazardous waste under the legislation of the Ministry of Environment and Urbanization.

Obligations of processing licensees

Article 22- Processing licensees shall have the following obligations:

a) (Repealed by: O.G.-14/10/2008-27024)

1. b) To obtain products complying with the standards and the technical arrangements.

 

SECTION FOUR

Lube Oil License

 

Activities that may be carried out within the scope of lube oil license Article 23- (As amended by: O.G.-23/1/2016-29602) ⁽¹¹⁾

Lube oil licensees or distribution undertaking licensees having lube oil sub-title may perform the following activities in the market: Production of lube oil at their lube oil production facilities included in the scope of their licenses, and production of base oil from waste lube oil provided that this is registered as a sub-title in their licenses.

Obligations of lube oil licensees

Article 24- Lube oil licensees are obliged to comply with the standards in productions or imports as well as the relevant technical arrangements.

 

SECTION FIVE

Storage License

Activities that may be carried out within the scope of storage license

Article 25- In the market, storage licensees are entitled to engage in operating storage facility for provision of storage services.

Obligations of storage licensees

Article 26- Storage licensees shall have the following obligations:

1. Within the framework of the related legislation, to prepare and submit to the Authority their tariff offers regarding the facilities connected with transmission lines, and to apply the tariffs approved by the relevant Board decision;
2. To prepare the tariffs regarding the facilities not connected with transmission lines, and to apply them after the notification to be made to the Authority;
3. To meet storage demands on non-discriminatory basis, except for the capacity restrictions, in case the matters listed in article 47 take

 

SECTION SIX

Transmission License

Activities that may be carried out within the scope of transmission license

Article 27- In the market, transmission licensees are entitled to engage in transportation of petroleum via pipelines and operation of transmission facilities.

 

 

Obligations of transmission licensees

Article 28- Transmission licensees shall have the following obligations:

1. Within the framework of the related legislation, to prepare and submit to the Authority their tariff offers, and to apply the tariffs approved by the relevant Board decision;
2. To transmission demands on non-discriminatory basis, except for the capacity restrictions, in case the matters listed in article 47 take

 

SECTION SEVEN

Eligible Consumer License

 

Activities that may be carried out within the scope of eligible consumer license Article 29- (As amended by: O.G.-21/09/2006-26296)

In the market, eligible consumer licensees may, depending on their types of consumption, procure heating oil, fuel oil and diesel-oil from distribution undertaking licensees.

(Paragraph repealed by: O.G.-12/8/2008-26965) Obligations of eligible consumer licensees

Article 30- Eligible consumers that consume 20,000 tons or more of each type of liquid fuel each year in a consumption facility are obliged to stock an amount in their storage to meet 15-days of their consumption.

 

SECTION EIGHT

Bunker Delivery License

 

Activities that may be carried out within the scope of bunker delivery license Article 31- In the market, bunker delivery licensees may engage in:

1. (As amended by: O.G.-31/5/2011-27950) Procurement of bunker from refining undertaking, distribution undertaking and other bunker delivery licensees, from abroad or in the country, and supply of bunker-which is subject to transit regime and released for free circulation- to sea and air vehicles and supply of bunker to other bunker delivery licensee legal persons;
2. Operation of bunker delivery

(As re-regulated by: O.G.-31/5/2011-27950) Third parties may provide collection intermediary services in the supply of bunker to sea and air vehicles within the scope of export or transit regime, provided that its physical delivery is performed by bunker delivery licensees and that it is utilized for the needs of the vehicles to which the supply is performed. The Board may regulate the scope of this operation.

Obligations of bunker delivery licensees

Article 32- Bunker delivery licensees shall have the following obligations:

1. Not to change bunker types, their intended use, their qualities and quantities, except fuel oil refining processes, provided that it is for bunker purposes;
2. To add national marker to bunker, in such quality and condition to be determined by the Authority;
3. Not to sell Special Consumption Tax-free liquid fuel to commercial sea vehicles;
4. For the liquid fuel which is procured from abroad and released for free circulation, to pay to the concerned persons the revenue fee determined by the

(Paragraph added by: O.G.-3/8/2012-28373) (Paragraph as amended by: O.G.-27/3/2014-28954) The persons that will sell jet fuel within the scope of bunker delivery license or distribution undertaking license associated with bunker delivery activity are obliged to submit to the Authority the Business License and the Work Permit they obtained-in their own names- for storage or supply activities at the airport or submit to the Authority a storage or supply services procurement contract which should have a term of minimum one year and which they concluded with persons holding the appropriate license type and holding such Business License and Work Permit or submit to the Authority the Heliport Operating License they obtained-in their own names-relating to large heliports under the Heliport Construction and Operations Regulation (SHY-14B) published in the Official Gazette dated 23/1/2009 and Issue No. 27119, and those persons are also obliged to have the matter “sales of jet fuel” registered in their licenses. The duration of the authorization to sell jet fuel shall not exceed the term of the storage or supply services procurement contract submitted. The licensees are entitled to provide jet fuel storage or supply services to maximum three persons in total, who should submit a storage or supply services procurement contract under this paragraph in order to have the authorization to sell jet fuel. In case the licensees concluded such contract with more than three persons, the licensees shall declare to the Authority the names of maximum three persons they prefer to provide the services, along with the documents stating that the other storage or supply services contracts have been terminated; and in case they do not submit this declaration properly, their requests for registration of the matter “sales of jet fuel” in their licenses shall be rejected.

 

SECTION NINE

Distribution Undertaking License

Activities that may be carried out within the scope of distribution undertaking license Article 33- In the market, distribution undertaking licensees may engage in:

1. (As amended by: O.G.-28/11/2014-29189) Import of liquid fuel, provided that this is limited to the liquid fuels included in the scope of the sub-title contained in their licenses after creation of vendor activity

 

organization;

1. Domestic sales of liquid fuel and wholesales to eligible consumers within this scope;
2. Transportation of liquid fuel-via pipelines-to the facilities located nearby their own storage facilities;

d) (Repealed by: O.G.-28/11/2014-29189)

1. (As amended by: O.G.-4/11/2011-28105) Distribution of liquid fuel to their own licensed vendors and to liquid fuel stations that they operate on the basis of vendor activity license they obtained under their own trade name;
2. Other than the restrictions set forth in the paragraph 2 of article 7 in the Law, direct sales of Special Consumption Tax-free liquid fuel to commercial sea vehicles.

In addition to the above activities, distribution undertaking licensees may carry out bunker delivery, storage, lube oil and transportation activities without the requirement to obtain a further license, but provided that these are registered in their licenses.

Distribution undertaking licensees may sell liquid fuel to vendors of distribution undertakings whose activities are suspended temporarily, provided that such sales are performed only within the period that the activity is suspended temporarily.

Distribution undertaking licensees may sell liquid fuel to other distribution undertakings, provided that those licensees have obtained permission from the Board.

Obligations of distribution undertaking licensees

Article 34- Distribution undertaking licensees shall have the following obligations:

1. Not to change the quality and intended use of liquid fuel types, with the exception of the blending processes referred to in article 6;
2. Not to perform sales to vendors of other distribution undertakings, other than the exceptions set forth in article 33;
3. In such quality and condition to be determined by the Authority, to add national marker to the liquid fuel they will market domestically;
4. To perform effectively the quality control monitoring related to the activities carried out under their registered trademark and to fulfill the inspection duties assigned by the Board within the scope of the related legislation;
5. To prepare and declare to the Authority the pricing for the market activities, as ceiling prices, taking into account the global free market prices at the closest accessible point;
6. Within the scope of the national petroleum stock, to keep minimum twenty times of the average supplied daily product amount at their own storage or licensed storage facilities whether as a whole or separately according to their status;
7. To meet the supply needs of their vendor until the expiration of the contract term, in case the contract is not renewed within the term stipulated in the Law;
8. To file the application for Liquid Fuel Supply Permission, in case it is requested that the liquid fuel be supplied from another distribution undertaking;
9. To inform expressly their vendors about the promotion campaigns they carry out with the participation of vendors, along with the documents related to the costs of the campaigns;
10. To make annual marketing projections and to submit them to the Authority with details in February of each year, and to provide explanations for an increase or decrease of more than 10%, if any, in their projections;
11. Not to grant subsidies to stations under their ownership or treat them differently from vendor stations;
12. (As amended by: O.G.-28/7/2011-28008) In the sales that they perform within the scope of vendor activity licenses having the category “with station”, as they obtained under their own trade name, not to exceed 15% of their own domestic market share ⁽²⁾; in the sales that they perform through liquid fuel stations under their ownership and operation, not to exceed 15% of their own domestic market share;
13. For the liquid fuel which is procured from abroad and released for free circulation, to pay to the concerned persons the revenue fee determined by the Board;

44

• 
  Its execution is stayed under the Decision No. 2012/507 of 21.03.2013 (Decision on Objection to the Stay of Execution) rendered by the Council of State, the Plenary Session of the Chambers for Administrative Cases.

  

1. Not to conclude vendor contracts with real or legal persons whose situations are not appropriate to the related and/or other legislation;
2. o) (Added by: O.G.-4/11/2011-28105) (As amended by: O.G.-28/11/2014-29189) In case the vendor

contracts:

• are terminated through a notarized notice of unilateral termination, forwarded to the vendor by the

distribution undertaking, to declare the notice to the Authority within one month;

• are terminated through a notarized notice of unilateral termination, forwarded to the distribution undertaking by the vendor, to submit the relevant declaration to the Authority, along with the notice, within one month as from the date of receipt;
• are terminated mutually by a termination protocol, to submit the relevant declaration to the Authority, along with the termination protocol, within one month as from the date of the protocol;
• In other cases of termination or expiration, to submit the relevant declaration to the Authority in no later than two months as from the date of termination/expiration, which declaration shall expressly contain the date of termination/expiration, along with the grounds of such termination as well as the documents, if any, related to the termination;

ö) (As added by: O.G.-4/11/2011-28105) Before their vendors obtain license, have distribution undertaking(s) replaced, operate fixed village pump or agricultural sale tanker associated with the license, to set up station automation system for fixed village pumps, for agricultural sale tankers and for liquid fuel stations registered in their relevant vendor activity license;

1. p) (Added by: O.G-5/10/2013-28786) (As amended by: O.G.-28/11/2014-29189) During the effectiveness

 

of their licenses, not to transfer to third parties their registered trademark or the right to use their trademark, without modification of the license through replacement with a registered new trademark covering the commodity codes no. 4 and 37;

1. r) (As added by: O.G.-28/11/2014-29189) To create a vendor activity organization in no later than six months as from the effective date of their license.

 

SECTION TEN

Transportation License

Activities that may be carried out within the scope of transportation license

Article 35- In the market, transportation licensees may engage in provision of transportation services through petroleum transportation vehicles, with the exception of pipelines.

Obligations of transportation licensees

Article 36- (As amended by: O.G.-28/09/2006-26303)

Transportation licensees are obliged to carry out their activities in compliance with the Law and the related legislation.

 

SECTION ELEVEN

Vendor Activity License

Activities that may be carried out within the scope of vendor activity license

Article 37- In the market, vendor activity licensees may sell to consumers the bunker or liquid fuel they procured from the distribution undertaking of which they are the vendor in their capacity as vendor with station or vendor without station by category; in their capacity as bunker vendor, liquid fuel vendor by the sub-title regulated in their licenses.

(Supplementary sentence as added by: O.G.-4/11/2011-28105) A vendor activity license-from a different category- shall not be granted to the same person and/or to the same address.

(Paragraph as amended by: O.G.-28/09/2006-26303) Through the liquid fuel stations included in the scope of their licenses, liquid fuel vendors with station may sell liquid fuel-except LPG- via tankers and village pumps for the needs of the agricultural sector, provided that this is registered in their licenses and that they take the necessary measures.

(Paragraph repealed by: O.G.-12/8/2008-26965)

(As amended by: O.G.-4/11/2011-28105) In the case of cancellation of the license granted to the distribution undertaking of which they are the vendor; such vendors shall, without waiting for termination of the contract, conclude the contract with another distribution undertaking and file the relevant license modification application. In the case of temporary suspension of the activities of the distribution undertaking of which they are the vendor; such vendors may, without waiting for the distribution undertaking to resume performing its activities, procure liquid fuel from another distribution undertaking, provided that it is limited to the period of time when the activities are temporarily suspended and that they have their licenses modified.

 

Obligations of vendor activity licensees

Article 38- Vendor activity licensees shall have the following obligations:

1. Not to change the quality and intended use of liquid fuel;
2. With the exception of factory, work site, transportation fleet base and similar locations that have the capacity to supply liquid fuel to their own vehicles and have the possibility of storage for their own needs; not to supply and sell liquid fuel outside liquid fuel stations;
3. To carry out their activities in accordance with the exclusive purchase contracts to be signed with distribution undertakings;
4. Not to procure liquid fuel from any entities other than the distribution undertaking of which they are the

vendor;

1. Not to add products that could be added for adulteration and/or for fraud to liquid fuel and keep such

material in their stations;

1. (As amended by: O.G.-21/9/2006-26296) Within one month as from expiration or termination of the vendor contract for any reason, to remove all the indications related to the former distribution undertaking and to continue performing its activities in such a manner whereby it shall be understood that the products of the newly contracted distribution undertaking are marketed;
2. Not to perform sales for resales purposes, with the exception of consumers;
3. (As added by: O.G.-4/11/2011-28105) With the exception of the sales operations performed via fixed village pumps and agricultural sale tankers, to notify their distribution undertaking of all kinds of liquid fuel sales performed outside the liquid fuel station, which notification shall be made together with the relevant documents in no later than fifteen days as from the issuance date of the document related to the sale;

ı) (Added by: O.G.-5/10/2013-28786) (Repealed by: O.G.-28/11/2014-29189)

1. i) (Added by: O.G.-28/11/2014-29189) (Repealed by: O.G.-23/1/2016-29602) ⁽¹¹⁾

PART THREE

Other Provisions

SECTION ONE

Notifications

General principles for notifications

Article 39- (Repealed by: O.G.-09/12/2005-26018) Notification types

Article 40- (Repealed by: O.G.-09/12/2005-26018) Periodic notifications

 

Article 41- (Repealed by: O.G.-09/12/2005-26018) Notifications depending on occurrences

Article 42- (Repealed by: O.G.-09/12/2005-26018) Record keeping

Article 43- (Repealed by: O.G.-09/12/2005-26018)

SECTION TWO

Restrictions

Restrictions on procurement and sales, and restrictions on quantity

Article 44- (As amended by: O.G.-24/4/2013-28627) ⁽⁷⁾ Export of petroleum is freely performed. The procedures, related to procurement of petroleum products-except liquid fuel-from domestic and foreign resources, shall be regulated by the communiques to be issued. Import of crude oil and liquid fuel shall be performed freely by the persons to whom such right is granted under their licenses, provided that these persons comply with the provisions of the related and other legislation.

Import of crude oil and liquid fuel shall be performed through the channel of competent customs administrations that have the equipment allowing them to perform quantity and specific technical measurements.

 

(Paragraph as amended by: O.G.-28/7/2011-28008) The sales, performed by distribution undertaking licensees within the scope of vendor activity licenses having the category “with station”, as they obtained under their own trade name, shall not exceed fifteen percent of the distribution undertaking’s total domestic market share ⁽³⁾. The sales, performed by distribution undertaking licensees through stations under their ownership and operation, shall not exceed fifteen percent of the distribution undertaking’s total domestic market share.

Distribution undertakings’ domestic market share shall not exceed forty-five percent of the total domestic

market.

(As amended by: O.G.-23/5/2015-29364) Vendor activity licensees, to whom license is granted under the

category “without station”, are not entitled to sell benzine types, diesel oil, rural diesel, jet fuel, gas oil, combustible naphtha and biodiesel.

(Supplementary paragraph added by: O.G.-4/11/2011-28105) (As amended by: O.G.-23/5/2015-29364) Among the liquid fuel types; combustible naphtha, gas oil, jet fuel and fuel oil types shall not be supplied to motor land vehicles.

(Supplementary paragraph added by: O.G.-28/11/2014-29189) (Paragraph as amended by: O.G.- 11/3/2017-30004) In case a discrepancy is found between procurement and sales in Special Consumption Tax-free liquid fuel sales or liquid fuel sales with low Special Consumption Tax, the licensee’s procurement of liquid fuel associated with the discrepancy shall be suspended temporarily by the Authority until such time as it is found that the sales take place in compliance with the legislation.

Restrictions on distance

Article 45- The distance between two liquid fuel and/or LPG stations shall not, on the same direction, be:

1. less than ten kilometers on high-ways;
2. less than one kilometer on public roads in the

Eligible consumer limit

Article 46- The eligible consumer limit, to which eligible consumers are subject for heating fuel, fuel oil and diesel oil, shall be minimum 5,000 tons for each product on a yearly basis.

Right to access

Article 47- Transmission and storage licensees that have spare capacity in their facilities are obliged to meet transmission and storage demands in case such demand:

1. is in compliance with the tariff of the licensee;
2. is appropriate for the capacity of the relevant facility;
3. does not have deteriorating or risk-increasing negative effects on the licensee’s facilities, operational rules and conditions and the petroleum transmitted or stored by the licensee;
4. is in conformity with the quality of the facility, the petroleum transmitted or stored, and is at the minimum quantity determined in the tariff of the licensee;
5. for transmission, be made by producer, transmitter or distribution undertaking, taking into account also the type of petroleum and for storage, be made by all with the provision of exceeding the minimum quantity determined in the tariff of the licensed storage

In case it is asserted that the demands for access are refused despite the required conditions took place, it is possible to file the relevant complaint with the Authority.

 

SECTION THREE

Expropriation, Real Rights Other Than Ownership, Leasing and Insurance

Expropriation, real rights other than ownership and leasing

Article 48- In the expropriation, establishment of real rights other than ownership and leasing in the market, transactions and operations shall be carried out within the framework of the following principles and procedures.

1. Expropriation:

It is a principle that the acquisition of rights or properties regarding lands, estates and buildings necessary for the facilities takes place primarily through agreements. In the event that the market activities necessitate, the acquisitions related to:

• the facilities included in the scope of the licenses of refining undertaking and storage licensees;
• the establishment of easement rights on lands and plots of land where transmission lines cross and on other buildings standing as an inseparable part of such transmission lines, as well as real properties located in the vicinity;

• by the Council of State, the Plenary Session of the Chambers for Administrative CasesIts execution is stayed under the Decision No. 2012/507 of 21.03.2013 (Decision on Objection to the Stay of Execution) rendered

 

 

• the processing facilities whose yearly processing capacity exceed 500,000 barrels of petroleummay also be realized through expropriation within the principles set forth in the Expropriation Law No. 2942. The ownership of the expropriated real property shall belong to the Treasury and the right to use it shall belong to the licensee who has paid the expropriation cost. The right of utilization shall be registered in the title deed register in the name of the licensee and such right shall be a part of the license and continue until the termination of the license

Expropriation costs paid by licensees shall not be returned in the event that the license terminates or is cancelled.

The relevant expropriation decree to be issued by the Board shall be considered as a public interest decree and the expropriation process shall be realized as per the provisions of the Expropriation Law.

It shall also be noted in the title deed registers of the facilities owned by refining undertaking and transmission licensees, including the ones found appropriate by the Board, that no other note can be registered in the title deed registers unless approved by the Authority.

1. Real rights other than ownership, and leasing:

In relation to their activities, on public lands, licensee legal persons may request for establishment of real rights other than ownership and for the leasing of such lands, provided that the cost is paid by the related legal person. If these requests are approved by the Board, the Authority shall consider the right of usufruct, servitude, right of construction or long-term leasing as per the related legislation and depending on the needs. The legal person taking over the rights acquired in this way, shall be liable to pay the cost of holding these rights as determined by the Board. Utilization rights are an integral part of the relevant license or contract, and their validity period shall be limited with the period of the validity of the same.

The letters of application for expropriation, real rights other than ownership and leasing shall be submitted to the Authority.

Insurance

Article 49- All licensees are obliged to arrange the insurances covering the financial liabilities, which are necessary for indemnification of bodily injuries and pecuniary damages and losses that may be caused by their activities against third parties.

Refining undertaking, transmission and storage licensees are obliged to arrange the insurances covering  their facilities and petroleum against all risks.

Refining undertaking licensees shall arrange insurance for their storage units and the national petroleum stock belonging to the public, against all risks as well as the financial liabilities they may cause before third parties.

(Paragraph as amended by: O.G.-10/8/2010-27668) The facilities’ insurance amount, taken as basis for the all risks insurance, shall not be less than the facility’s registered net asset value, with the exception of land acquisition expenses; and the exemption which may be granted in danger monies or hazard pays shall not exceed two percent of the insurance amount.

(Paragraph as amended by: O.G.-24/06/2005-25855) Exemption is inapplicable, in third persons financial liability insurances.

(Paragraph as amended by: O.G.-24/06/2005-25855) The principles and procedures regarding the insurance obligations and the calculation of insurance amounts and maximum exemption for and the minimum coverage of the insurance shall be regulated by communiques to be issued by the Board.

 

SECTION FOUR

Financial Provisions

Revenue fee

Article 50- (Paragraph amended by: O.G.-15/06/2006-26199) ⁽²⁾) (As amended by: O.G.-20/12/2017- 30276) ⁽¹²⁾ Revenue fee amounts applicable for the next year shall be determined by a Board decision and be published in the Official Gazette, by the end of December every year.

The revenue fee shall be deposited into the revenue fee account opened in the name of the refining undertaking. Refining undertaking licensees are obliged to collect revenue fee from sales of liquid fuel. The amount to be collected as the consideration of the payment made regarding revenue fee shall be indicated under a separate heading on the invoices issued.

(Paragraph as amended by: O.G.-15/06/2006-26199) ⁽²⁾ Processing licensees producing biodiesel types shall, in accordance with the principles and procedures determined by the National Petroleum Stock Commission, pay to the refining undertakings the revenue fee that the processing licensees calculated for the biodiesel types they sold, and distribution undertaking and bunker delivery licensees shall, in accordance with the principles and procedures determined by the National Petroleum Stock Commission, pay to the refining undertakings the revenue fee that they calculated for the liquid fuel they imported.

 

Refining undertaking licensees are obliged to collect revenue fee in the sales of liquid fuel.

The revenue fees, which will be collected by distribution undertakings and bunker delivery companies as the consideration of the payment they made to refining undertakings and which are reflected into the sales amount by refining undertakings, shall be indicated under a separate heading on the invoices issued.

Participation fee

Article 51- All licensees, except for eligible consumer licensees, are obliged to pay participation fee every year. The first installment of the participation fee for the preceding year shall be paid by the end of June and the second installment shall be paid by the end of November.

(Paragraph as amended by: O.G.-20/10/2006-26325) The participation fee shall be calculated by multiplying the net sales amount -related to the market activities carried out by the obligors within the scope of their license, as contained in their yearly income statements, -by the participation fee rate to be determined by the Board every year. The participation fee rate shall not exceed one per thousand and the participation fee shall not exceed 2,000,000 US Dollars.

By the license types, the Board shall be authorized to reduce the participation fee up to zero and shall be authorized to determine different rates.

Yearly participation fee rate or rates applicable for the next year shall be determined by a Board decision and be published in the Official Gazette, by the end of December every year.

The sum of the Special Consumption Tax and the customs taxes, duties and levies paid for petroleum within

 

the year shall, if included in the net sales revenue, be deducted from the total net sales. Licensees, carrying out one or more than one market activity within the scope of their licenses, shall pay their participation fee on the basis of their total net sales.

In order to calculate the amount of participation fee for the year that the license has been obtained for the first time; the participation fee rate shall be multiplied by the amount which is found after the deduction, if any, made

-in accordance with the fifth paragraph- from the net sales amount contained in their income statements regarding the period between the licensing date and 31 December of the same year, and thereby the participation fee shall be found.

Persons holding more than one license shall make a participation fee declaration separately for each license. In case different rates are determined for activity sub-titles, the calculations shall be made separately on the basis of the net sales amount related to each activity.

The penal and administrative procedures, regarding the participation fees which have not been declared in time or which have been declared erroneously, shall be completed by the Authority and then, the judicial and administrative processes shall be initiated by the Authority before the relevant bodies and institutions.

(Supplementary paragraph as added by: O.G.-5/10/2013-28786) The applications for license, modification and duration extension, which have been filed by the real and legal persons that did not fulfill their participation fee obligations regarding previous periods, shall not be taken under evaluation and shall be returned in case the obligation is not fulfilled within 10 business days following the notification to be made by the Authority.

Financial obligations not paid in time, and late fees

Article 52- The provisions of the Law No. 6183 on the Collection Procedure of Public Receivables shall apply to the financial obligations not paid in time and to the late fees, and it shall be ensured that these amounts are collected through the relevant tax offices.

Revaluation

Article 53- (Repealed by: O.G.-20/12/2017-30276) ⁽¹²⁾

SECTION FIVE

Confidentiality and Settlement of Disputes

Confidentiality

Article 54- In case, in its decision, the Board finds that there are documents or information which might harm the commercial relations of a licensee if they are published; the Authority is not entitled to disclose those documents and information unless the disclosure is ordered by a court.

The parties performing activities in the market are obliged to keep the commercially sensitive information and documents confidential. Under no circumstances shall licensees disclose any confidential information they accessed directly or indirectly while performing market activities; and licensees shall not use such confidential information in their own interest or for the benefit of their affiliated firms or in favor of or to the detriment of others.

 

Real and legal persons, whose licenses have expired or have been cancelled, are obliged to keep confidential for a period of five years the other persons’ trade secrets which have been accessed by those real and legal persons  due to the commercial relationships between each other.

(Paragraph added by: O.G.-4/11/2011-28105) (Paragraph repealed by: O.G.-5/10/2013-28786) Settlement of disputes

Article 55- Price disputes between refining undertakings and producers shall, under the arbitrage of the Authority, be settled within thirty days following the completion of the reviews and evaluations, which settlement shall be binding on the parties.

 

SECTION SIX

Market Intervention and Force Majeure

Market intervention

Article 56- On the basis of the information, denunciations and complaints received by the Authority, in case it is concluded that there are apparent indications about the matters that:

1. The procurement and/or sales of petroleum and the fulfillment of the services regarding petroleum are not carried out continuously, regularly and properly or the conduct of these procurements, sales or fulfillments continuously, regularly and properly are impeded or are attempted to be impeded;
2. Unfair competition or breach of the legislation on the protection of competition is caused;

or in case it is concluded that these matters have acquired a dimension threatening the national security or the public order; the necessary procedures shall be initiated by the Authority under the relevant decision of the Board. Within this context, in case it is understood that the Authority’s instructions are not fulfilled, the necessary processes as well as the relevant investigation shall be initiated before competent authorities.

Force majeure

Article 57- In order for an event to be considered as force majeure; it is necessary that such event could not be prevented, avoided or eliminated although the affected party has exhibited the required attention and care and has taken the necessary measures and that such event restrains the affected party from fulfillment of its obligations included in the scope of the related legislation.

In case a force majeure event takes place, the licensee’s obligations arising from the related legislation may be postponed by the relevant Board decision in proportion as the obligations are affected thereby.

In cases where it is understood that it becomes impossible to fulfill these obligations, the Board may also decide that the licensee’s obligations are hereby revoked. In order for the Board to decide that the obligations are hereby postponed or revoked; it is compulsory for the licensee to submit its written application to the Authority within fifteen days as from the occurrence date of the force majeure event, which application shall state the occurrence date of the force majeure event, the nature and scope of the force majeure event, its impacts on the licensee’s obligations and if possible, the estimated time for elimination of the impacts.

 

SECTION SEVEN

Temporary and Final Provisions

Repealed legal arrangements

 

Article 58- The following legal arrangements, enactedby the Ministry of Energy and Natural Resources or directly by the General Directorate of Petroleum Affairs, are hereby repealed:

1. The Communique on the Principles and Procedures Applicable to the Import of Solvent, Base Oil and

Lube Oil;

1. The Communique on the Principles and Procedures Applicable to the Domestic Sales of Solvents

Produced Domestically;

1. The Communique on the Principles and Procedures Applicable to the Import of Petroleum Products;
2. The Communique on the Implementation of the Decision Regarding the Functioning of the Liquid Fuel Price Stabilization Fund and the Principles for the Purchases, Sales and Pricing of Crude Oil and Petroleum Products;
3. The Communique on the Requirement of Distance between Liquid Fuel Stations (to be Established

Newly);

1. The Communique on the Components and Implementation Principles for “the Wellhead Price” of

Domestic Crude Oil and Natural Gas and “the Market Price” Applicable to the Export of Crude Oil and on the Receipt, in Cash, of the State’s Share Petroleum and the Portion Reserved -to Meet the Country’s Needs- from Domestic Crude Oil and Natural Gas Produced by Petroleum Right Holders;

 

1. (As amended by: O.G.-21/12/2004-25677) The Communique on the Implementation of the Decision Regarding the Principles and Procedures for the Incorporation of Liquid Fuel Distribution and Marketing Companies;

The communiques amending and/or repealing the provisions of the above communiques and creating new provisions for the above communiques, and the liquid fuel distribution and marketing entities-related provisions of articles 13, 14, 15, 16 and 17 in the Communique on the Implementation of the Decisions Regarding the Principles and Procedures for the Incorporation of Liquid Fuel and Liquefied Petroleum Gas Distribution and Marketing Companies.

Provisional Article 1- On the publication date of the Law, the persons:

1. that hold certificates in accordance with the provisions of the Petroleum Law No. 6326, whose activities require obtaining license;
2. that are one of the liquid fuel distribution and marketing entities whose activities are permitted on the basis of the arrangements issued by the Ministry of Energy and Natural Resources;
3. whose activities and utilizations require obtaining license although they fall outside the above subparagraphs (a) and (b);

shall, until 20.12.2004 at the latest, bring their situations in compliance with the matters contained in the Law and in this Regulation.

The rights, permissions and all kinds of formative decisions, transactions, documents and certificates, which have been previously granted, rendered or carried out for the persons who did not file their license applications by the dates referred to above or who filed their license applications by 20.12.2004, however, whose license applications or whose requests for duration extension have not been accepted, shall become null and void without the requirement of a further transaction.

Provisional Article 2- The persons who perform activities in the market on the effective date of this Regulation and hold certificates issued in accordance with the Petroleum Law No. 6326 and whose activities require obtaining license and those performing activities as a liquid fuel distribution and marketing entity shall, by 20 July 2004, declare to the Authority the copies of the standard contracts they use for their main activities.

Provisional Article 3- Refining undertaking, distribution undertaking and bunker delivery licensees shall prepare their marketing projections for the 2005 January-April period and shall deliver these projections to the Authority within the scope of license applications.

Provisional Article 4- License fees applicable for 2004 shall be determined by the relevant Board decision and be published in the Official Gazette, until 1 July 2004.

Provisional Article 5- Those performing vendor activities on the publication date of this Regulation may file their license applications through the channel of the distribution companies of which they are the vendor.

Provisional Article 6- (As added by: O.G.-21/12/2004-25677)

The wording “ten business days” contained in the eighth paragraph of article 7 and the wording “within ten business days” contained in the ninth paragraph of the same article shall not apply until 20/3/2005.

Provisional Article 7- (As amended by: O.G.-6/4/2005-25778) The permissions, granted to the persons who obtained the letter of conformity for lube oils from the General Directorate of Petroleum Affairs, shall be valid until 1/6/2005. The letters of conformity for import of lube oil shall be granted by the Authority within the scope of the provisions contained in the Communique on the Principles and Procedures Applicable to the Import of Petroleum Products Other Than Liquid Fuel.

Provisional Article 8- (As added by: O.G.-13/04/2005-25785)

The wording “ten business days” contained in the eighth paragraph of article 7 and the wording “within ten business days” contained in the ninth paragraph of the same article shall not apply until 1/7/2005.

Compliance obligation

Provisional Article 9- (Added by: O.G.-15/06/2006-26199) (As amended by: O.G.-3/8/2012-28373)

The persons, holding refining undertaking, transmission, storage, processing, distribution undertaking and bunker delivery licenses on the effective date of this article, shall bring their situations in compliance with article 7 of this Regulation by 31/12/2013, in case the amount of their paid-in minimum capital is less than the amount specified in the regulation.

Provisional Article 10- (As added by: O.G.-12/8/2008-26965) The Transportation Licenses, granted for land transportation vehicles, shall terminate without the requirement of a further transaction.

Provisional Article 11- (As added by: O.G.-10/8/2011-28021)

The persons, holding Lube Oil Licenses on the effective date of this article, shall, as enclosed with their letter, submit to the Authority by 1/8/2012 their capacity reports prepared in compliance with the subparagraph (b) of the sixth paragraph contained in article 7.

 

Provisional Article 12- (As added by: O.G.-4/11/2011-28105)

The vendor activity licensees, whose distribution undertaking’s license has expired or has been cancelled prior to the effective date of this article, are obliged to file an application for replacement of their distribution undertaking, within one month following the effective date of this article. The relevant vendor activity licenses of those who have not fulfilled this obligation shall terminate.

 

Provisional Article 13- (As added by: O.G.-3/8/2012-28373)

The persons, whose situations are not in compliance with the second paragraph of article 32 of this Regulation though the authorization to sell jet fuel-within the scope of bunker delivery license or distribution undertaking license associated with bunker delivery activity- has been registered in their licenses prior to the effective date of this article, are obliged to submit to the Authority by no later than 30/6/2013 a Business License and Work Permit they will obtain in their own names for storage and supply activities at the airport or a storage or supply services procurement contract with a minimum term of one year, which they will conclude with the persons holding the said Business License and Work Permit as well as the appropriate license. In case these persons do not fulfill this obligation, their authorization to import and sell jet fuel shall be revoked through ex-officio modification of the relevant license. If these persons fulfill this obligation by submitting a storage or supply services procurement contract within the scope of this article, the duration of their authorization to import and sell jet fuel, registered in their licenses, shall be modified ex-officio, in which case this duration shall not exceed the term of the contract submitted.

License applications filed in order to perform activities at the same location Provisional Article 14- (As added by: O.G.-31/1/2013-28545)

Prior to the effective date of this article provision, in case there are license applications which have been filed in order to perform activities at the same location, for the market, for the electricity market or for the natural gas market and whose announcement period has been completed, the evaluation shall be carried out within the framework of the following principles:

1. The license applications, which have been filed for electricity or natural gas markets or for the market in order to perform activities at the site about which studies are carried out by the Ministry as a site of electricity generation facility based on nuclear energy in the electricity market or at the location allocated or envisaged to be allocated under an international agreement, shall be rejected at all
2. In the event that the license application-related location, announced in accordance with the paragraph 4 of article 8, is not a location allocated or envisaged to be allocated under an international agreement or that the Ministry does not carry out studies about the license application-related location as a site of generation facility based on nuclear energy and that, however, there is another license application or there are other license applications for storage license in the natural gas market or there is another license application or there are other license applications filed in order to perform electricity generation activities in the electricity market or there is another license application or there are other license applications in order to perform refining undertaking and/or storage activities in the market, in order to perform those activities at the announcement-related location; the matter that for which application the licensing process shall continue at the announcement-related location shall be determined by a Board decision in accordance with the following principles and
   • Among the license applications, the applications for underground natural gas storage in the natural gas market, generation based on other resources or combustibles-except for natural gas-in the electricity market, storage to be carried out in a liquefied natural gas facility in the natural gas market, refining undertaking in the market, generation based on natural gas in the electricity market and storage license in the market shall be given priority, respectively.
   • The applications, falling outside the license application(s) given priority in accordance with the subparagraph (1) above, shall be returned or
3. In the event that there is a decision rendered for the conduct of refining undertaking or storage market activity at the license application-related location announced within the scope of the paragraph 4 of article 8 and that there is more than one refining undertaking or storage license application for the market; the application, which has been filed firstly for the location applied for, depending on the application’s sequence number entered in the Authority’s records, shall be taken into consideration in determining the application for which the licensing process shall continue. The applications, other than the application on the first rank, shall be returned or

Provisional Article 15- (As added by: O.G.-7/11/2013-28814) The persons, holding refining undertaking license on the effective date of this article, are obliged to file their license modification applications within one month as from the effective date of this article in accordance with the subparagraph (l) of the first paragraph contained in article 20 of this Regulation.

Provisional Article 16- (As added by: O.G.-7/11/2013-28814) In determining the stock quantities which should be kept by refining undertaking and distribution undertaking licensees who have, by the effective date of this article, performed their activities for a period shorter than one calendar year as of the license obtaining date and in determining the effective dates of their obligations; those licensees shall be treated equally with the ones who have obtained license for the first time.

 

Provisional Article 17- (As amended by: O.G.-28/11/2014-29189) The persons, holding distribution undertaking license on the effective date of this article, are obliged to create vendor activity organization in no later than six months

(Added by: O.G.-26/12/2014-29217)

Provisional Article 18- (As added by: O.G.-26/12/2014-29217) The obligations, referred to in the subparagraph (n) of the first paragraph contained in article 20 of this Regulation, shall enter into force on 1/3/2016.

Provisional Article 19- (As added by: O.G.-1/2/2015-29254) In determining whether the distribution undertaking licensees, performing activities as of the effective date of this article, have realized a marketing projection for 60,000 tons of white products; the provisions contained in the third paragraph of article 17 shall apply.

Provisional Article 20- (As added by: O.G.-23/1/2016-29602) ⁽¹¹⁾ The licensees, who have the sub-title “lube oil” under the lube oil or distribution undertaking license on the effective date of this Regulation, may perform the activity “production of base oil from waste lube oil”, without operating the sub-title “base oil” until 1/1/2018.

Provisional Article 21- (As added by: O.G.-13/7/2017-30123)

Refining undertaking licensee legal persons are obliged to complete their obligations included in the scope of the subparagraph (n) of the first paragraph contained in article 20, until 31/12/2017.

(As added by: O.G.-20/12/2017-30276) Revenue fees applicable for 2018

Provisional Article 22- Revenue fee amounts applicable for 2018 shall be determined by a Board decision and be published in the Official Gazette by the end of December 2017.

(As added by: O.G.-20/12/2017-30276) ⁽¹²⁾ Compliance obligation related to article 18

Provisional Article 23- Licensee capital companies are obliged to fulfil their obligations contained in the last paragraph of article 18 within six months following the effective date of this article.

 

 

 

 

• This paragraph shall enter into force on the date of its publication, to be effective as from 01/01/2005 as required by article 5 of the Regulation published in the Official Gazette dated 24/06/2005 and Issue No.
• This paragraph shall enter into force on 01/08/2006 as required by article 6 of the Regulation published in the Official Gazette dated 15/06/2006 and Issue No.
• This amendment shall enter into force on 31/3/2009 in accordance with article 5 of the Regulation published in the Official Gazette dated 7/12/2008 and Issue No. 27077, as amended by the Regulation published in the Official Gazette dated 31/12/2008 and Issue No. 2709 (7bis).
• By the Regulation amendment published in the Official Gazette dated 10/8/2011 and Issue No. 28021, the subparagraph (b) was added after the subparagraph (a) of the sixth paragraph of article 7, and the subsequent subparagraphs were re-numerated accordingly.
• By the Regulation amendment published in the Official Gazette dated 4/11/2011 and Issue No. 28105, one paragraph was added after the third paragraph of article 16, and the other paragraphs were re-numerated
• This amendment shall enter into force on 1/1/2013.
• This amendment shall enter into force on 1/7/2013.
• By the Regulation amendment published in the Official Gazette dated 7/11/2013 and Issue No. 28814, the paragraphs were added after the eighth paragraph of article 18, and the other paragraphs were re-numerated
• By this amendment, the fifth paragraph was added after the fourth paragraph of article 7, and the other paragraphs were re- numerated
• By the amendment published in the Official Gazette dated 23/1/2016 and Issue No. 29602, the paragraph was added after the second paragraph of article 6 of the regulation, and the subsequent paragraphs were re-numerated
• This amendment shall enter into force on 1/2/2016.
• This amendment shall enter into force on 1/1/2018. 

 

 

Effectiveness

Article 59- Of this Regulation:

1. (As amended by: O.G.-21/12/2004-25677) Articles 45, 46 and 50, the subparagraph (c) of the fifth paragraph of article 7 and the subparagraphs (d) and (e) of the first paragraph of article 58 shall become effective on 1/1/2005;
2. (As amended by: O.G.-21/12/2004-25677) The provisions falling outside the second sentence of the first paragraph of article 44 shall become effective on 20/12/2004; and the second sentence of the first paragraph of article 44 and the subparagraphs (a), (b) and (c) of the first paragraph of article 58 shall become effective on 1/6/2005; and
3. The other articles shall become effective on the date of its

Execution

Article 60- The provisions of this Regulation shall be executed by the President.

 

(As amended by: 23/1/2016-29602) ⁽¹⁰⁾ ANNEX-1

 

LICENSE APPLICATION LETTER

TO THE PRESIDENCY OF

THE ENERGY MARKET REGULATORY AUTHORITY OF THE REPUBLIC OF TURKEY

 

I declare that I have the qualifications referred to in article 7 of the Petroleum Market Licensing Regulation, and I kindly submit for necessary action for the grant of the license suitable for my below request.

 

NAME AND SURNAME OF THE PERSON(S) AUTHORIZED TO REPRESENT

DATE SIGNATURE

STAMP (FOR LEGAL PERSONS)

 

THE APPLICANT’S

 

 

 

 

 

 

TYPE OF LICENSE APPLICATION

(Please put “X” into the box next to the license type requested)

 

(Repealed by: O.G.-4/11/2011-28105) ANNEX-2 (Repealed by: O.G.-4/9/2004-25495) ANNEX-3 (Repealed by: O.G.- 4/9/2004-25495) ANNEX-4 (Repealed by: O.G.- 4/9/2004-25495) ANNEX