K.G. Balakrishnan, J. - (1.) This is a Reference made by the President of India under Article 143(1) of the Constitution of India. The Gujarat State legislature passed an Act by name "Gujarat Gas (Regulation of Transmission, Supply and Distribution) Act, 2001" (hereinafter being referred to as "Gujarat Act"), which came into force w.e.f. 19th December, 2000. The object of the enactment is to provide for regulation of transmission, supply and distribution of gas, in the interests of general public and to promote gas industry in the State, and for that purpose, to establish Gujarat Gas Regulatory Authority and for matters connected therewith and incidental thereto. The term "Gas" has been defined in the Gujarat Act under Section 2(h) as follows:-"Gas" means a matter in gaseous state which predominantly consists of methane."
(2.) The State legislature passed the said enactment by tracing its legislative competence under Entry No. 25 of List II of the Seventh Schedule of the Constitution. The Parliament has passed various enactments under Entry No. 53 of List I dealing with the matters of petroleum and petroleum products. The Entry No. 53 of List I of the Seventh Schedule reads as follows:- "Regulation and development of oilfields and mineral oil resources; petroleum and petroleum products; other liquids and substances declared by Parliament by law to be dangerously inflammable."
(3.) Entry No. 25 of List II reads as follows:- "Gas and gas works" ;