Compliance under Petroleum and Explosives Safety Organization (PESO) Rule and amended thereafter

Compliance under the Petroleum and Explosives Safety Organization (PESO) rules refers to adhering to the guidelines, regulations, and requirements established by PESO to ensure the safe handling, storage, transportation, and use of petroleum products, explosives, and hazardous chemicals in India. PESO operates under the Ministry of Commerce and Industry and enforces rules under various acts like the Petroleum Act, 1934, and the Explosives Act, 1884.

Key Compliance areas under the rules

1.
Licensing and Approvals:
  • Entities involved in the storage, transportation, and handling of petroleum and explosives must obtain licenses and approvals from PESO.
  • Key licenses include:
    • Petroleum Storage License for depots, terminals, or retail outlets.
    • Explosive Storage License for handling industrial explosives.
    • Approvals for compressed gas cylinders, pressure vessels, and related facilities.
2.
Safety Standards for Storage and Handling:
  • Compliance with prescribed standards for storing petroleum, flammable liquids, and explosives.
  • Examples:
    • Storage tanks and containers must meet design and safety requirements.
    • Firefighting systems and emergency equipment must be in place.
3.
Transportation Safety:
  • Ensuring that vehicles transporting hazardous materials comply with PESO’s safety standards.
  • Marking, labeling, and securing hazardous goods properly during transportation.
  • Following rules for filling, handling, and carrying liquefied petroleum gas (LPG) and compressed natural gas (CNG).
4.
Facility Layout Approvals:
  • Layouts of petroleum depots, gas cylinder storage facilities, or explosives warehouses must be approved by PESO.
  • Ensuring the layout minimizes risks of accidents and adheres to safety distances specified by PESO.
5.
Tank and Pipeline Safety:
  • Design, installation, and maintenance of storage tanks and pipelines must comply with PESO-approved specifications.
  • Periodic inspection and testing are required to ensure integrity.
6.
Cylinder Manufacturing and Testing:
  • Manufacturers of gas cylinders and pressure vessels must obtain PESO certification.
  • Regular testing and recertification of cylinders as per PESO standards.
7.
Explosives Compliance:
  • Handling of explosives like fireworks, industrial explosives, and ammunition must comply with PESO guidelines under the Explosives Rules, 2008.
  • Licensing for storage and sale of explosives, including detailed safety measures.
8.
Incident Reporting and Investigation:
  • Immediate reporting of accidents, leaks, fires, or explosions involving petroleum products or explosives.
  • Submission of detailed incident reports and implementation of corrective measures.
9.
Environmental Compliance:
  • Minimizing risks of soil and water contamination from petroleum or hazardous chemicals.
  • Proper waste management for residual petroleum products or unused explosives.
10.
Periodic Inspections and Audits:
  • PESO conducts inspections to ensure compliance with safety standards.
  • Facilities must maintain records of operations, safety inspections, and maintenance activities.

Services Offered Under This Regulatory Compliance

Gap Analysis and Compliance Audits ▼
  • Evaluate existing operations against PESO requirements to identify compliance gaps.
Licensing Assistance ▼
  • Guide companies through the process of obtaining PESO licenses for storage, transportation, and operations.
Risk Assessment and Mitigation ▼
  • Conduct Quantitative and Qualitative Risk Analysis (QRA) for petroleum depots, pipelines, and storage facilities.
  • Recommend safety improvements to meet PESO standards.
Layout and Design Approvals ▼
  • Provide consultancy for designing and securing PESO approvals for facility layouts.
Training and Capacity Building ▼
  • Train employees on PESO rules, emergency handling, and incident response protocols.
Incident Management ▼
  • Assist in reporting and investigating accidents as per PESO guidelines.
Documentation and Record Maintenance ▼
  • Support companies in maintaining necessary records and documentation for inspections and audits.
Audit Preparation ▼
  • Help clients prepare for PESO inspections and audits by addressing compliance gaps.

Frequent asked Questions (FAQs)

The Petroleum and Explosives Safety Organization (PESO) is a regulatory authority under the Ministry of Commerce & Industry, Government of India. PESO is responsible for ensuring the safety regulations for hazardous substances, including petroleum, explosives, compressed gases, and pressure vessels.

  • Petroleum refining, storage, and distribution.
  • Explosives manufacturing, handling, and storage.
  • Compressed gases (LPG, CNG, Hydrogen, Oxygen, etc.).
  • Flammable and hazardous chemicals.
  • Cryogenic storage and transportation facilities.

  • The Petroleum Act, 1934 and Petroleum Rules, 2002 – Governs the import, storage, and transport of petroleum products.
  • The Explosives Act, 1884 and Explosives Rules, 2008 – Regulates manufacturing, storage, and use of explosives.
  • Gas Cylinder Rules, 2016 – Covers the safe handling, storage, and transport of compressed gas cylinders.
  • Static and Mobile Pressure Vessels (Unfired) Rules, 2016 – Regulates pressure vessels used for hazardous substances.

  • Storage license for petroleum, LNG, LPG, or explosives.
  • Transport license for hazardous substances.
  • Manufacturing license for factories handling hazardous chemicals.
  • Import and Export permissions for explosives and petroleum products.

  • Fire safety measures: Firefighting equipment, emergency response systems.
  • Storage safety: Proper labeling, leak-proof containers, temperature controls.
  • Transport safety: Compliance with hazardous material transportation rules.
  • Workplace safety: Personal Protective Equipment (PPE), training for workers.

  • Safe storage of petroleum (Class A, B, C) in approved tanks.
  • Separation distance requirements for hazardous material storage.
  • Automatic leak detection and fire suppression systems in storage units.

  • Heavy fines and suspension of licenses.
  • Legal action under the Explosives Act and Petroleum Act.
  • Factory closure or revocation of permits in case of serious violations.

  • 2020 Amendment: New safety guidelines for LNG terminals and CNG stations.
  • 2021 Update: Stricter norms for electronic surveillance in petroleum depots.
  • 2023 Amendment: Incentives for green hydrogen and biofuels storage and distribution.

  • MoEF&CC (Environmental Clearances for hazardous industries).
  • OISD (Safety guidelines for oil & gas installations).
  • PNGRB (Gas transportation & storage safety).
  • Factories Act, 1948 (Worker safety in hazardous industries).

  • Conduct periodic safety audits and risk assessments.
  • Maintain updated licenses for storage, transport, and handling of hazardous materials.
  • Implement real-time monitoring and automation for leak detection.
  • Regular training programs for employees on hazardous substance management.
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Aseries Envirotek India Private Limited (AEIPL) is a compliance execution company committed to assisting organizations to meet their regulatory and non-regulatory compliances to fulfill their sustainability objectives.

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