Current through Reg. 50, No. 13; March 28, 2025
(a) Each
operator of a pipeline or gathering system, other than an operator excluded
under §
8.1(b)(4) of
this title (relating to General Applicability and Standards), subject to the
jurisdiction of the Commission, shall obtain a pipeline permit, to be renewed
annually, from the Commission as provided in this rule. Production or flow
lines that are subject to §
8.1(a)(1)(B) and
(D) of this title must comply with this
section. All other production or flow lines as defined in this subsection are
exempt from complying with this section. A production or flow line is piping
used for production operations that generally occur upstream of gathering or
other pipeline facilities. For the purposes of this subsection, piping used in
"production operations" means piping used for production and preparation for
transportation or delivery of hydrocarbon gas and/or liquids, and includes the
following processes:
(1) extraction and
recovery, lifting, stabilization, treatment, separation, production processing,
storage, and measurement; and
(2)
associated production compression, gas lift, gas injection, or fuel gas
supply.
(b) To obtain a
new pipeline permit or to amend a permit because of a change of classification,
an operator shall file an application for a pipeline permit on the Commission's
online permitting system. The operator shall include or attach the following
documentation and information:
(1) the contact
information for the individual who can respond to any questions concerning the
pipeline's construction, operation or maintenance;
(2) the requested classification and purpose
of the pipeline or pipeline system as a common carrier, a gas utility or a
private line;
(3) a sworn statement
from the pipeline applicant providing the operator's factual basis supporting
the classification and purpose being sought for the pipeline, including, if
applicable, an attestation to the applicant's knowledge of the eminent domain
provisions in Texas Property Code, Chapter 21, and the Texas Landowner's Bill
of Rights as published by the Office of the Attorney General of
Texas;
(4) documentation to provide
support for the classification and purpose being sought for the pipeline, if
applicable; and
(5) any other
information requested by the Commission.
(c) To renew an existing permit, to amend an
existing permit for any reason other than a change in classification, or to
cancel an existing permit, an operator shall file an application for a pipeline
permit on the Commission's online filing system. The operator shall include or
attach:
(1) the contact information for the
individual who can respond to any questions concerning the pipeline's
construction, operation, or maintenance; change in operator or ownership; or
other change including operator cessation of pipeline operation;
(2) a statement from the pipeline operator
confirming the current classification and purpose of the pipeline or pipeline
system as a common carrier, a gas utility or a private line, if applicable;
and
(3) any other information
requested by the Commission.
(d) Upon receipt of a complete permit
application, the Commission has 30 calendar days to issue, amend, or deny the
pipeline permit as filed. If the Commission determines that the application is
incomplete, the Commission shall promptly notify the applicant of the
deficiencies and specify the additional information necessary to complete the
application. Upon receipt of a revised application, the Commission has 30
calendar days to determine if the application is complete and issue, amend, or
deny the pipeline permit as filed.
(e) If the Commission is satisfied from the
application and the documentation and information provided in support thereof,
and its own review, that the proposed line is or will be laid, equipped,
managed and operated in accordance with the laws of the state and the rules and
regulations of the Commission, the permit may be granted. The pipeline permit,
if granted, shall classify the pipeline as a common carrier, a gas utility, or
a private pipeline based upon the information and documentation submitted by
the applicant and the Commission's review of the application.
(f) This rule applies to applications made
for new pipeline permits and to amendments, renewals, and cancellations of
existing pipeline permits. The classification of a pipeline under this rule
applies to extensions, replacements, and relocations of that
pipeline.
(g) The Commission may
delegate the authority to administratively issue pipeline permits.
(h) The pipeline permit, if granted, shall be
revocable at any time after a hearing, held after 10 days' notice, if the
Commission finds that the pipeline is not being operated in accordance with the
laws of the state and the rules and regulations of the Commission including if
the permit is not renewed annually as required in subsection (a) of this
section.
(i) Each pipeline operator
shall pay an annual fee based on the pipeline operator's permitted mileage of
pipeline not later than April 1 of each year.
(1) For purposes of calculating the mileage
fee, the Commission will categorize pipelines into two groups.
(A) Group A includes transmission and
gathering pipelines that are required by Commission rules to have a valid T-4
permit to operate and are subject to the regulations in 49 CFR Parts 192 and
195, such as natural gas transmission and storage pipelines, natural gas
gathering pipelines defined as Type A, Type B, or Type C in
49 CFR §
192.8, hazardous liquids transmission and
storage pipelines, regulated rural hazardous liquids gathering pipelines under
49 CFR §
195.11, and hazardous liquid low-stress rural
pipelines under 49 CFR
§
195.12.
(B) Group B includes pipelines that are
required by Commission rules to have a valid T-4 permit to operate but are only
subject to the reporting requirements in 49 CFR Parts 191 and 195 such as Type
R gathering pipelines as defined in
49 CFR §
192.8, and reporting-regulated-only gathering
lines as defined in 49 CFR
§
195.15.
(2) An operator of a Group A pipeline shall
pay an annual fee of $20 per mile of pipeline based on the number of miles
permitted to that operator as of December 31 of each year.
(3) An operator of a Group B pipeline shall
pay an annual fee of $10 per mile of pipeline based on the number of miles
permitted to that operator as of December 31 of each year.
(4) Any pipeline distance that is a fraction
of a mile will be considered as one mile and will be assessed a $20 or $10 fee,
as appropriate.
(5) Fees due to the
Commission for mileage transferred from one operator to another operator
pursuant to subsection (o) of this section will be captured in the next mileage
fee to be calculated on the following December 31 and paid by the new
operator.
(j) Each
pipeline operator shall pay a $500 permit processing fee for each new permit
application and permit renewal.
Each operator shall file the annual renewals as
follows:
(1) Companies with names
beginning with letters A through C shall file in February;
(2) Companies with names beginning with
letters D through E shall file in March;
(3) Companies with names beginning with
letters F through L shall file in April;
(4) Companies with names beginning with
letters M through P shall file in May;
(5) Companies with names beginning with
letters Q through T shall file in June; and
(6) Companies with names beginning with
letters U through Z and companies with names beginning with numerical values or
other symbols shall file in July.
(k) Each operator shall comply with the
following:
(1) If a permit is transferred, in
the Commission fiscal year of the transfer the acquiring operator shall renew
that permit in its designated month pursuant to subsection (j) of this section.
If the acquiring operator receives a transferred permit in a Commission fiscal
year and its renewal month has already passed, the acquiring operator shall pay
the renewal fee upon transfer.
(2)
If an operator adds a new permit and pays the new permit fee, the operator is
not required to pay the renewal fee for that permit in the same Commission
fiscal year.
(3) If an operator
adds a new permit after its renewal month has passed, the new permit shall be
renewed the following Commission fiscal year in the operator's designated month
pursuant to subsection (j) of this section.
(l) A pipeline operator who fails to renew a
permit on or before the renewal deadline which is the last day of the
operator's required filing month as specified in subsection (j) of this section
shall pay a late-filing fee as follows:
(1)
$250, if the renewal application is received within 30 calendar days after the
renewal deadline date;
(2) $500, if
the renewal application is received more than 30 calendar days and no more than
60 calendar days after the renewal deadline date; and
(3) $700, if the renewal application is
received more than 60 calendar days after the renewal deadline date.
(4) If the renewal application is not
received within 90 calendar days of the renewal deadline date, the Commission
may assess a penalty and/or revoke the operator's permit in accordance with
subsection (h) of this section.
(m) A pipeline operator with a total mileage
of 50 miles or less of pipeline who fails to pay the annual mileage fee as
specified in subsection (i) of this section shall pay a late-filing fee as
follows:
(1) $125, if the fee is received
within 30 calendar days of April 1;
(2) $250, if the fee is received more than 30
calendar days and no more than 60 calendar days after April 1; and
(3) $350, if the fee is received more than 60
calendar days after April 1.
(4) If
the fee is not received within 90 calendar days of April 1, the Commission may
assess a penalty and/or revoke the operator's permit in accordance with
subsection (h) of this section.
(n) A pipeline operator with a total mileage
of more than 50 miles of pipeline who fails to pay the annual mileage fee shall
pay a late-filing fee as follows:
(1) $250, if
the fee is received within 30 calendar days of August 31 for the initial year
that the requirement is in effect and April 1 for each subsequent
year;
(2) $500, if the fee is
received more than 30 calendar days and no more than 60 calendar days after
August 31 for the initial year that the requirement is in effect and April 1
for each subsequent year; and
(3)
$700, if the fee is received more than 60 calendar days after August 31 for the
initial year that the requirement is in effect and April 1 for each subsequent
year.
(4) If the fee is not
received within 90 calendar days of August 31 for the initial year that the
requirement is in effect or April 1 for each subsequent year, the Commission
may assess a penalty and/or revoke the operator's permit in accordance with
subsection (h) of this section.
(o) A pipeline operator who has been issued a
permit and is transferring the pipeline or a portion of the pipeline included
on the permit to another operator shall file a notification of transfer with
the Commission within 30 days following the transfer. The transferee and
transferor operators shall file a fully executed Form T-4B as a notification of
transfer. The Commission may use a fully executed Form T-4B to remove the
pipeline that is the subject of the transfer from the transferor operator and
assign the mileage to the transferee operator for calculation of the annual
mileage fee. The transferee operator shall amend its permit to include the
pipeline or portion of the pipeline within 30 days following the Commission's
approval of the transfer or the operator may be subject to a penalty for
operating without a permit pursuant to subsection (p) of this section.
(1) A transferee operator may file a Form
T-4B signed only by the transferee operator as a notification of transfer with
the Commission only upon presenting to the Commission for its review,
concurrently with Form T-4B:
(A) evidence
that the transferee operator made a good faith effort to procure the transferor
operator's signature; and
(B)
documentation establishing that the transferee operator has a legal right to
operate the pipeline.
(2) Prior to approving a single-signature
Form T-4B filed pursuant to paragraph (1) of this subsection, the Commission
shall issue notice to the transferor operator, providing the operator 15 days
to contest the transfer and request a hearing. Upon receipt of a timely
response requesting a hearing, the matter shall be referred to the Hearings
Division for adjudication as a contested case.
(p) A pipeline operator who operates a
pipeline without a permit, with an expired permit, or who otherwise fails to
comply with this section, may be assessed a penalty as prescribed in §
8.135 of this title (relating to
Penalty Guidelines for Pipeline Safety Violations).
(q) Interstate pipelines are exempt from the
fee requirements of this section.
(r) Beginning December 9, 2024, operators
shall comply with the following.
(1) All gas
permits shall be amended to include all gas gathering pipelines defined as Type
A, Type B, Type C, or Type R in
49 CFR §
192.8. The permit amendments shall be filed
on the Commission's online permitting system by March 31, 2025. The amendment
shapefile shall indicate each segment as Type A, Type B, Type C, or Type R, and
include any other information requested by the Commission.
(2) A gas permit will not be eligible for
renewal if the permit has not been amended by March 31, 2025, in accordance
with paragraph (1) of this subsection. If the gas permit does not have any gas
gathering pipelines to be amended or added, the operator shall include with its
2025 renewal submission a statement on the submitted cover letter attesting to
that fact. The Commission may request additional information as necessary to
confirm the statement.
