Current through Reg. 49, No. 12; March 22, 2024
(a) Applicability.
(1) In accordance with Texas Natural
Resources Code § 86.044, this section applies to a gas supply chain
facility that is:
(A) included on the
electricity supply chain map created under Texas Utilities Code § 38.203;
and
(B) designated as critical in
§ 3.65 of this title, relating to Critical Designation of Natural Gas
Infrastructure.
(2) In
accordance with Texas Utilities Code §
RSA
121.2015, this section applies to a gas
pipeline facility that:
(A) directly serves a
natural gas electric generation facility operating solely to provide power to
the electric grid for the Electric Reliability Council of Texas (ERCOT) power
region or for the ERCOT power region and an adjacent power region;
and
(B) is included on the
electricity supply chain map created under Texas Utilities Code §
38.203.
(b)
Definitions. In this section, the following definitions apply.
(1) Critical component--Any component,
including components on equipment rented or leased from a third party, that is
susceptible to weather-related interruptions, such as those caused by freezing
temperatures, freezing precipitation, or extreme heat, the occurrence of which
is likely to significantly hinder sustained operation of the gas pipeline or
gas supply chain facility.
(2) Gas
pipeline facility--A pipeline or pipeline facility regulated by the Commission
under Texas Utilities Code Chapter 121.
(3) Gas supply chain facility--A facility
that is:
(A) used for producing, treating,
processing, pressurizing, storing, or transporting natural gas, as well as
handling waste produced;
(B) not
primarily used to support liquefied natural gas pretreatment, liquefaction, or
regasification facilities in the business of exporting or importing liquefied
natural gas to or from foreign countries;
(C) otherwise regulated by the Commission
under Subtitle B of Title 3, Texas Natural Resources Code; and
(D) not regulated by the Commission under
Texas Utilities Code Chapter 121.
(4) Major weather-related forced stoppage--A
weather-related forced stoppage during a weather emergency that is the result
of the deliberate disregard of this section or that results in:
(A) a loss of production exceeding 5,000 Mcf
of natural gas per day per oil lease;
(B) a loss of production exceeding 5,000 Mcf
of natural gas per day per gas well;
(C) a loss of gas processing capacity
exceeding 200 MMcf per day;
(D) a
loss of storage withdrawal capacity exceeding 200 MMcf per day; or
(E) a loss of transportation capacity
exceeding 200 MMcf per day.
(5) Repeated weather-related forced
stoppage--When a gas supply chain facility or a gas pipeline facility has more
than one major weather-related forced stoppage or weather-related forced
stoppage violation within a 12-month period.
(6) Sustained operation--Safe operation of a
gas supply chain facility or a gas pipeline facility such that the facility
does not experience a major weather-related forced stoppage or weather-related
forced stoppage in production, treating, processing, storage, or transportation
of natural gas.
(7) Weather
emergency--Weather conditions such as freezing temperatures, freezing
precipitation, or extreme heat in the facility's county or counties that result
in an energy emergency as defined by § 3.65 of this title. A weather
emergency does not include weather conditions that cannot be reasonably
mitigated such as tornadoes, floods, or hurricanes.
(8) Weatherization--The iterative cycle of
preparedness for sustained operation during weather emergencies that includes:
(A) correcting critical component failures
that occurred during previous weather emergencies;
(B) installing equipment to mitigate
weather-related operational risks; and
(C) internal inspection, self-assessment, and
implementation of processes to identify, test, and protect critical
components.
(9)
Weather-related forced stoppage--An unanticipated and/or unplanned outage in
the production, treating, processing, storage, or transportation of natural gas
that is caused by weather conditions such as freezing temperatures, freezing
precipitation, or extreme heat and occurs during a weather emergency.
(c) Weather emergency preparedness
standards for a gas supply chain facility or a gas pipeline facility.
(1) By December 1st of each year, a gas
supply chain facility operator or a gas pipeline facility operator shall
implement weather emergency preparation measures intended to:
(A) ensure the sustained operation of a gas
supply chain facility or a gas pipeline facility during a weather emergency;
and
(B) correct known major
weather-related forced stoppages and weather-related forced stoppages that
prevented sustained operation of a facility because of previous weather
emergencies.
(2) Weather
emergency preparation measures required by paragraph (1) of this subsection
shall include:
(A) providing training on
weather emergency preparations and operations to relevant operational
personnel;
(B) consideration of the
risk to the health and safety of employees and protection of the environment;
and
(C) weatherization of the
facility using methods a reasonably prudent operator would take given the type
of facility, the age of the facility, the facility's critical components, the
facility's location, and weather data for the facility's county or counties
such as data developed for the Commission by the state climatologist. The
Commission will periodically publish weatherization practices and may include
weather data developed for the Commission by the state climatologist.
(d) Weather Emergency
Readiness Attestation. By December 1 of each year, an operator of a gas supply
chain facility or a gas pipeline facility shall submit to the Commission a
Weather Emergency Readiness Attestation that:
(1) is signed by an authorized representative
of the operator entity attesting, under penalties prescribed in Texas Natural
Resources Code §
RSA
91.143, that:
(A) the operator implemented the required
weather emergency preparation measures described in subsection (c) of this
section;
(B) the information and
statements made in the Weather Emergency Readiness Attestation are true,
correct, and complete to the best of the attestor's knowledge;
(C) the representative is authorized to sign
the attestation on behalf of the operator entity; and
(D) the Weather Emergency Readiness
Attestation was prepared by the authorized representative or under the
authorized representative's supervision and direction;
(2) includes an attachment describing all
activities engaged in by the operator to implement the requirements of
subsection (c) of this section, including a description of the weatherization
methods utilized by the operator to weatherize each type of facility;
and
(3) for the Weather Emergency
Readiness Attestation due December 1, 2022, also describes corrective actions
taken to mitigate known major weather-related forced stoppages and
weather-related forced stoppages that prevented sustained operation of a
facility because of previous weather emergencies.
(e) Inspection of gas supply chain facilities
and gas pipeline facilities. Beginning December 1, 2022, the Commission will
inspect facilities to ensure compliance with this section and will prioritize
inspections of oil leases and gas wells producing greater than 5,000 Mcf per
day of natural gas and facilities storing, processing, or transporting greater
than 200 MMcf per day of natural gas. The Commission will further prioritize
inspections in descending order in accordance with a facility's production
volume or storage, processing, or transportation capacity.
(f) Notifications and other requirements for
gas supply chain facilities and gas pipeline facilities.
(1) An operator of a gas supply chain
facility or a gas pipeline facility that experiences either of the following
during a weather emergency shall notify the Commission immediately through the
Critical Infrastructure Division's notification portal if the stoppage is not
resolved within 24 hours of discovery of the stoppage:
(A) a weather-related forced stoppage;
or
(B) a forced stoppage caused by
a loss of electricity.
(2) An operator of a gas supply chain
facility or gas pipeline facility that experiences either of the following
during a weather emergency shall, within one hour of discovery of the stoppage,
contact the Commission through the Critical Infrastructure Division's 24-hour
emergency telephone number. Subsequent to the phone call, the operator shall
submit a notification through the Critical Infrastructure Division's
notification portal:
(A) a major
weather-related forced stoppage; or
(B) a forced stoppage caused by a loss of
electricity that results in the same volume of loss in natural gas production,
withdrawal capacity, processing capacity, or transportation capacity as a major
weather-related forced stoppage.
(3) The notification of the major
weather-related forced stoppage or weather-related forced stoppage may include
information such as any third-party issues that may have directly contributed
to the stoppage, if applicable.
(4)
A gas supply chain facility or a gas pipeline facility that is determined to
have experienced repeated weather-related forced stoppages or major
weather-related forced stoppages in sustained operation during a weather
emergency shall comply with this paragraph. Upon notice from the Commission
that the facility is required to comply with this paragraph, the facility's
operator shall contract with a person with related experience to assess the
facility's weather emergency preparation measures, plans, procedures, and
operations. The person with related experience shall not be an employee of the
facility or its affiliate and shall not have participated in any assessments of
the facility for at least the previous five years, unless the facility's
operator can document that no other persons with related experience are
reasonably available for engagement. Within the timeframe provided by the
Commission, the operator shall submit to the Commission a written assessment
prepared by the person and the facility operator's corrective action plan in
compliance with the terms in the Commission's notice that the facility is
required to comply with this paragraph.
(g) Enforcement.
(1) Violation of this section by a gas supply
chain facility operator. If a major weather-related forced stoppage or
weather-related forced stoppage was caused by a gas supply chain facility's
failure to adhere to the requirements of this section, the facility's operator
will be subject to an enforcement action. A gas supply chain facility operator
will be given notice and opportunity for a hearing for alleged violations of
this section. The notice will be sent by certified mail and state the facts or
conduct alleged to comprise the violation. The notice will give the operator 30
days from receipt to request a hearing. Pursuant to Texas Natural Resources
Code § 86.044 and §§86.222-.224, if after notice and opportunity
for a hearing, the Commission determines that an operator has violated this
section and the violation is not remedied in a reasonable amount of time, the
Commission shall notify the Office of the Attorney General of Texas of the
violation in accordance with Texas Natural Resources Code §
RSA
86.222. The table in this paragraph contains
a classification system to be used under Texas Natural Resources Code §
RSA
86.222 for violations of this section. The
penalty for each violation may be up to $1,000,000.
Attached
Graphic
(2)
Violation of this section by a gas pipeline facility operator.
(A) If a major weather-related forced
stoppage or weather-related forced stoppage was caused by a gas pipeline
facility's failure to adhere to the requirements of this section, the
facility's operator will be subject to an enforcement action. A gas pipeline
facility operator will be given notice and opportunity for a hearing for
alleged violations of this section. The notice will be sent by certified mail
and state the facts or conduct alleged to comprise the violation. The notice
will give the operator 30 days from receipt to request a hearing. Pursuant to
Texas Utilities Code §
RSA
121.2015, if after notice and opportunity for
a hearing, the Commission determines that an operator has violated this section
and the violation is not remedied in a reasonable amount of time, the
Commission shall report the violation to the Office of the Attorney General of
Texas. Pursuant to Texas Utilities Code §
RSA
121.206, the Commission shall assess an
administrative penalty for a violation of this section, which may be up to
$1,000,000 for each offense. Each day a violation continues constitutes a
separate offense.
(B) In accordance
with Texas Utilities Code §
RSA
121.206<subdiv>(d)</subdiv>, the
Commission will use the table in paragraph (1) of this subsection in assessing
penalties for a violation of this section. The penalty amounts contained in the
table in paragraph (1) of this subsection are provided solely as guidelines to
be considered by the Commission in determining the amount of administrative
penalties for violations of Texas Utilities Code, Chapter 121, Subchapter E, or
a safety standard or other rule prescribed or adopted under that subchapter.
The establishment of these penalty guidelines shall in no way limit the
Commission's authority and discretion to cite violations and assess
administrative penalties. The Commission retains full authority and discretion
to cite violations of Texas Utilities Code, Chapter 121, Subchapter E, or a
safety standard or other rule prescribed or adopted under that subchapter, and
to assess administrative penalties in any amount up to the statutory maximum
when warranted by the facts in any case, regardless of inclusion in or omission
from this section. The penalty calculation worksheet shown in the table in
paragraph (1) of this subsection lists the typical penalty amounts for certain
violators, the circumstances justifying enhancements of a penalty, and the
circumstances justifying a reduction in a
penalty.
(h)
Confidentiality. If a gas supply chain facility operator or a gas pipeline
facility operator filing information required by this section contends certain
information is confidential by law, the operator shall file a complete version
of the required information and a version for public inspection in which the
confidential information has been redacted. 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.