Current through Reg. 49, No. 12; March 22, 2024
(a) Definitions.
(1) In this section, the term "energy
emergency" means any event that results in firm load shed or has the potential
to result in firm load shed required by the reliability coordinator of a power
region in Texas. An event that has the "potential to result in firm load shed"
is when the reliability coordinator of a power region in Texas has issued an
Energy Emergency Alert Level 1 or 2.
(2) In this section, the term "critical
customer information" means the information required on Commission Form CI-D
and any attachments.
(3) In this
section, "any volume of gas indicated in Mcf/day" means the average daily
production from the well's six most recently filed monthly production reports.
Wells without six months of production reports shall average the production
from the well's production reports on file with the Commission or use the
production volume from the well's initial potential test or deliverability test
if the well has not yet filed a production report.
(4) In this section, the term "electricity
supply chain map" means the electricity supply chain map produced by the Texas
Electricity Supply Chain Security and Mapping Committee.
(5) In this section, the term "Director"
means the Director of the Critical Infrastructure Division or the director's
delegate.
(6) In this section, the
term "EOR project" means an enhanced oil recovery project as defined in §
3.50(c)(6)
of this title (relating to Enhanced Oil Recovery Projects-Approval and
Certification for Tax Incentive) with at least one injection well permitted
under §
3.46
of this title (relating to Fluid Injection into Productive Reservoirs) whether
or not the project has received Commission approval or certification under
§
3.50
of this title.
(b)
Critical designation criteria. The following facilities are designated critical
during an energy emergency:
(1) Critical Gas
Supplier. The following facilities are designated a critical gas supplier:
(A) gas wells producing gas in excess of 250
Mcf/day;
(B) oil leases producing
casinghead gas in excess of 500 Mcf/day, except for EOR projects provided the
EOR project consumes more energy than it produces calculated by comparing the
amount of electricity used to the amount of gas produced both in Million
British Thermal Units (MMBTU);
(C)
gas processing plants;
(D) natural
gas pipelines and pipeline facilities including associated compressor stations
and control centers;
(E) local
distribution company pipelines and pipeline facilities including associated
compressor stations and control centers;
(F) underground natural gas storage
facilities;
(G) natural gas liquids
transportation and storage facilities; and
(H) saltwater disposal facilities including
saltwater disposal pipelines.
(2) Critical Customer. A critical customer is
a critical gas supplier that requires electricity delivered by an electric
entity to operate. A critical customer is required to provide critical customer
information pursuant to subsection (f) of this section to the electric entities
described in §
25.52(h)
of this title (relating to Reliability and Continuity of Service) and Texas
Utilities Code § 38.074(b)(1) so that those electric entities may
prioritize the facilities in accordance with Texas Utilities Code §
38.074(b)(2) and (b)(3). Priority for load shed purposes during an energy
emergency is described by §
25.52(h)(2)
of this title and any guidance issued thereunder by the Public Utility
Commission.
(c) Request
for critical designation if not designated critical in subsection (b) of this
section. A facility that is not designated critical under subsection (b) of
this section may write to the Commission to apply to be designated critical if
the facility's operation is required in order for another facility designated
critical to operate. The applicant shall include objective evidence that the
facility's operation is required for another facility designated critical in
subsection (b) of this section to operate. The director will review the
application and if the application is approved, the facility shall submit Form
CI-D. If the request is denied, the applicant may request a hearing.
(d) Acknowledgment of critical status. Except
as provided by subsection (e) of this section, an operator of a facility
designated as critical under subsection (b) or (c) of this section shall
acknowledge the facility's critical status by filing Form CI-D as provided in
this subsection. In the year 2022, the Form CI-D acknowledgment shall be filed
bi-annually by January 15, 2022, and either September 1, 2022, or 30 days from
the date the map is produced by the Texas Electricity Supply Chain Security and
Mapping Committee, whichever is later. Beginning in 2023, the Form CI-D
acknowledgment shall be filed bi-annually by March 1 and September 1 of each
year.
(e) Critical designation
exception.
(1) A facility listed in subsection
(b) of this section that is not included on the electricity supply chain map
produced by the Texas Electricity Supply Chain Security and Mapping Committee
may apply for an exception. An applicant shall demonstrate with objective
evidence a reasonable basis and justification in support of the application.
The Director of the Critical Infrastructure Division will administratively
approve or deny a request for an exception. If the request is denied, the
Division will notify the applicant and the applicant may request a hearing to
challenge the denial. The party requesting the hearing shall have the burden of
proof.
(2) Examples of a reasonable
basis and justification for which an exception may be granted include, but are
not limited to, the following:
(A) All of the
natural gas produced at the facility is consumed on site;
(B) All of the natural gas produced,
processed, or delivered by the facility is consumed outside of this
state;
(C) The facility does not
provide gas for third-party use;
(D) For saltwater disposal facilities and
saltwater disposal pipelines, the facility or pipeline does not support a
facility designated critical in subsection (b)(1)(A)-(G) of this section;
or
(E) The electric entity
delivering electricity to the facility has provided notice that the facility's
request for critical designation status was rejected, denied, or otherwise
disapproved by the electric utility; provided, however, that the electric
utility communicated its determination in writing, and the decision was for
reasons other than the lack of correct identifying information or other
administrative reasons.
(3) An applicant for exception shall submit a
Form CI-X exception application that identifies each facility for which an
exception is requested. The Form CI-X shall be accompanied by an exception
application fee. The amount of the fee is $150 as established in Chapter 81 ,
Texas Natural Resources Code.
(A) In the year
2022, the Form CI-X exception application shall be filed bi-annually by January
15, 2022, and either September 1, 2022, or 30 days from the date the map is
produced by the Texas Electricity Supply Chain Security and Mapping Committee,
whichever is later. Beginning in 2023, the Form CI-X exception application
shall be filed bi-annually by March 1 and September 1 of each year.
(B) Once an operator has an approved Form
CI-X on file with the Commission, the operator is not required to pay the $150
exception application fee when the operator updates the facilities identified
on its Form CI-X.
(f) Providing critical customer information.
A critical customer shall provide the critical customer information to the
electric entities described in §
25.52
of this title and Texas Utilities Code § 38.074(b)(1) unless the critical
customer is granted an exception under subsection (e) of this section. The
critical customer information shall be provided in accordance with §
25.52
of this title. The operator shall certify on its Form CI-D that it has provided
the critical customer information to its electric entity.
(g) Confidentiality of information filed
pursuant to this section. A person filing information with the Commission that
the person contends is confidential by law shall notify the Commission on the
applicable form. If the Commission receives a request under the Texas Public
Information Act (PIA), Texas Government Code, Chapter 552, for materials that
have been designated confidential, the Commission will notify the filer of the
request in accordance with the provisions of the PIA so that the filer can take
action with the Office of the Attorney General to oppose release of the
materials.
(h) Exceptions not
transferable. Exceptions are not transferable upon a change of operatorship.
When a facility is transferred, both the transferor operator and the transferee
operator shall ensure the transfer is reflected on each operator's Form CI-D or
Form CI-X when the applicable form update is submitted in accordance with the
bi-annual filing timelines in subsections (d) and (e) of this section. If the
facility has an exception under subsection (e) of this section, the exception
shall remain in effect until the next bi-annual filing deadline. If the
transferee operator seeks to continue the exception beyond that time period,
the transferee operator shall indicate the transferred facility on the Form
CI-X pursuant to subsection (e) of this section.
(i) Failure to file or provide required
information. An operator who fails to comply with this section may be subject
to penalties under §
3.107
of this title (relating to Penalty Guidelines for Oil and Gas
Violations).