Current through Reg. 49, No. 12; March 22, 2024
(a) Definitions.
The following terms, when used in this section, shall have the following
meanings, unless the context clearly indicates otherwise.
(1) Affected person--A person who, as a
result of actions proposed in an application for a storage facility permit or
for amendment or modification of an existing storage facility permit, has
suffered or may suffer actual injury or economic damage other than as a member
of the general public.
(2) Brine
string--The uncemented tubing through which highly saline water flows into or
out of a hydrocarbon storage well during hydrocarbon withdrawal or injection
operations.
(3) Cavern--The storage
space created in a salt formation by solution mining.
(4) Commission--The Railroad Commission of
Texas.
(5) Emergency shutdown
valve--A valve that automatically closes to isolate a hydrocarbon storage
wellhead from surface piping in the event of specified conditions that, if
uncontrolled, may cause an emergency.
(6) Fire detector--A device capable of
detecting the presence of a flame or the heat from a fire.
(7) Fresh water--Water having
bacteriological, physical, and chemical properties that make it suitable and
feasible for beneficial use for any lawful purpose. For purposes of this
section, brine associated with the creation, operation, and maintenance of an
underground hydrocarbon storage facility is not considered fresh
water.
(8) Hydrocarbon storage well
or storage well--A well, including the storage wellhead, casing, tubing,
borehole, and cavern, used for the injection or withdrawal of liquid or
liquefied hydrocarbons into or out of an underground hydrocarbon storage
facility.
(9) Leak detector--A
device capable of detecting by chemical or physical means the presence of
hydrocarbon vapor or the escape of vapor through a small opening.
(10) Liquid or liquefied hydrocarbons--Crude
oil and products, derivatives, or byproducts of oil or gas that are:
(A) liquid under standard conditions of
temperature and pressure;
(B)
liquefied under the temperatures and pressures at which they are stored;
or
(C) stored under conditions that
necessitate the use of displacement fluids to withdraw them from
storage.
(11)
Operator--The person recognized by the Commission as being responsible for the
physical operation of an underground hydrocarbon storage facility, or such
person's authorized representative.
(12) Owner--The person recognized by the
Commission as owning all or part of a storage facility, or such person's
authorized representative.
(13)
Person--A natural person, corporation, organization, government, governmental
subdivision or agency, business trust, estate, trust, partnership, association,
or any other legal entity.
(14)
Pollution--Alteration of the physical, chemical, or biological quality of, or
the contamination of, water that makes it harmful, detrimental, or injurious to
humans, animal life, vegetation, or property, or to public health, safety, or
welfare, or impairs the usefulness or the public enjoyment of the water for any
lawful or reasonable purpose.
(15)
Process or transfer area--Any area at an underground hydrocarbon storage
facility where hydrocarbons are physically altered by equipment, including
dehydrators, compressors, and pumps, or where hydrocarbons are transferred to
or from trucks, rail cars, or pipelines.
(16) Storage wellhead--Equipment installed at
the surface of the wellbore, including the casinghead and tubing head, spools,
block or wing valves, and instrument flanges. Spool pieces must have a length
of less than six feet to be considered a part of the storage
wellhead.
(17) Surface piping--Any
pipe within a storage facility that is directly connected to a storage well,
outboard of the wellhead emergency shutdown valve and used to transport
product, brine, or fresh water to or from a storage well whether such pipe is
above or below ground level.
(18)
Underground hydrocarbon storage facility or storage facility--A facility used
for the storage of liquid or liquefied hydrocarbons in an underground salt
formation, including surface and subsurface rights, appurtenances, and
improvements necessary for the operation of the facility.
(b) Permit required.
(1) General. No person may create, operate,
or maintain an underground hydrocarbon storage facility without obtaining a
permit from the Commission. A permit issued by the Commission for such
activities before the effective date of this section shall continue in effect
until revoked, modified, or suspended by the Commission, or until it expires by
its terms. The provisions of this section apply to permits for underground
hydrocarbon storage facility operations issued prior to the effective date of
this section, except as specifically provided in this section.
(2) Conflict with other requirements. If a
provision of this section conflicts with any provision or term of a Commission
order, field rule, or permit, the provision of such order, field rule, or
permit shall control.
(c) Application.
(1) Information required. An application for
a permit to create, operate, or maintain an underground hydrocarbon storage
facility shall be filed with the Commission by the owner or operator, or
proposed owner or operator, on the prescribed form. The application shall
contain the information necessary to demonstrate compliance with the applicable
state laws and Commission regulations.
(2) Permit amendment. An application for
amendment of an existing underground hydrocarbon storage facility permit shall
be filed with the Commission:
(A) prior to
any planned enlargement of a cavern in excess of the permitted cavern capacity
by solution mining;
(B) when
required in accordance with paragraph (3) of this subsection;
(C) prior to the drilling of any additional
hydrocarbon storage wells;
(D)
prior to any increase in the volume of liquid or liquefied hydrocarbons stored
in the cavern in excess of the permitted storage volume; or
(E) any time that conditions at the storage
facility deviate materially from conditions specified in the permit or the
permit application.
(3)
Increase in capacity. The owner or operator of a storage facility shall notify
the Commission if information indicates that the capacity of a cavern exceeds
the permitted cavern capacity by 20% or more. Such notification shall be made
in writing to the Commission within 10 days of the date that the owner or
operator knows or has reason to know that the cavern capacity exceeds the
permitted capacity by 20% or more. The notification shall include a description
of the information that indicates that the permitted cavern capacity has been
exceeded, and an estimate of the current cavern capacity. Upon receipt of such
information, the Commission or its designee may take any one or more of the
following actions:
(A) require the permittee
to comply with a compliance schedule that lists measures to be taken to ensure
that conditions at the storage facility do not pose a danger to life or
property, and that no waste of hydrocarbons, uncontrolled escape of
hydrocarbons, or pollution of fresh water occurs;
(B) require the permittee to file an
application to amend the underground hydrocarbon storage facility
permit;
(C) modify, cancel, or
suspend the permit as provided in subsection (f) of this section; or
(D) take enforcement action.
(4) Related activities. An
application for a permit to store saltwater or brine in a pit or to dispose of
saltwater or other oil and gas waste arising out of or incidental to the
creation, operation, or maintenance of an underground hydrocarbon storage
facility shall be filed in accordance with applicable Commission
requirements.
(d)
Standards for underground storage zone.
(1)
Geologic, construction, and operating performance. An underground hydrocarbon
storage facility may be created, operated, or maintained only in an impermeable
salt formation in a manner that will prevent waste of the stored hydrocarbons,
uncontrolled escape of hydrocarbons, pollution of fresh water, and danger to
life or property. Natural gas storage operations are not authorized under the
provisions of this section. A permit under §
RSA
3.97 of this title (relating to Underground
Storage of Gas in Salt Formations) is required to convert from storage of
liquid or liquefied hydrocarbons to storage of natural gas in an underground
salt formation.
(2) Fresh water
strata. The applicant must submit with the application a letter from the
Groundwater Advisory Unit of the Oil and Gas Division stating the depth to
which fresh water strata occur at each storage facility.
(e) Notice and hearing.
(1) Notice requirements. The applicant shall,
no later than the date the application is mailed to or filed with the
Commission, give notice of an application for a permit to create, operate, or
maintain an underground hydrocarbon storage facility, or to amend an existing
storage facility permit, by mailing or delivering a copy of the application
form to:
(A) the surface owner of the tract
where the storage facility is located or is proposed to be located;
(B) the surface owner of each tract adjoining
the tract where the storage facility is located or is proposed to be
located;
(C) each oil, gas, or salt
leaseholder, other than the applicant, of the tract on which the storage
facility is located or is proposed to be located;
(D) each oil, gas, or salt leaseholder of any
tract adjoining the tract on which the storage facility is located or is
proposed to be located;
(E) the
county clerk of the county where the storage facility is located or is proposed
to be located; and
(F) if the
storage facility is located or proposed to be located within city limits, the
city clerk or other appropriate city official.
(2) Publication of notice. Notice of the
application, in a form approved by the Commission or its designee, shall be
published by the applicant once a week for three consecutive weeks in a
newspaper of general circulation in the county or counties where the facility
is or is proposed to be located. The applicant shall file proof of publication
prior to any hearing on the application or administrative approval of the
application.
(3) Notice by
publication. The applicant shall make diligent efforts to ascertain the name
and address of each person identified under paragraph (1)(A) - (D) of this
subsection. The exercise of diligent efforts to ascertain the names and
addresses of such persons shall require an examination of the county records
where the facility is located and an investigation of any other information of
which the applicant has actual knowledge. If, after diligent efforts, the
applicant has been unable to ascertain the name and address of one or more
persons required to be notified under paragraph (1)(A) - (D) of this
subsection, the notice requirements for those persons are satisfied by the
publication of the notice of application as required in paragraph (2) of this
subsection. The applicant must submit an affidavit to the Commission specifying
the efforts that were taken to identify each person whose name and/or address
could not be ascertained.
(4)
Hearing required for new permits. A permit application for a new underground
hydrocarbon storage facility will be considered for approval only after notice
and hearing. The Commission will give notice of the hearing to all affected
persons, local governments, and other persons who express, in writing, an
interest in the application. After hearing, the examiner shall recommend a
final action by the Commission.
(5)
Hearing on permit amendments.
(A) An
application for an amendment to an existing storage facility permit may be
approved administratively if the Commission receives no protest from a person
notified pursuant to the provisions of paragraph (1) of this subsection, or
from any other affected person.
(B)
If the Commission receives a protest from a person notified pursuant to
paragraph (1) of this subsection or from any other affected person within 15
days of the date of receipt of the application by the Commission, or of the
date of the third publication, whichever is later, or if the Commission
determines that a hearing is in the public interest, then the applicant will be
notified that the application cannot be approved administratively. The
Commission will schedule a hearing on the application upon written request of
the applicant. The Commission will give notice of the hearing to all affected
persons, local governments, and other persons who express, in writing, an
interest in the application. After hearing, the examiner shall recommend a
final action by the Commission.
(C)
If the application is administratively denied, a hearing will be scheduled upon
written request of the applicant. After hearing, the examiner shall recommend a
final action by the Commission.
(f) Modification, cancellation, or suspension
of a permit.
(1) General. Any permit may be
modified, suspended, or canceled after notice and opportunity for hearing if:
(A) a material change in conditions has
occurred in the operation, maintenance, or construction of the storage
facility, or there are material deviations from the information originally
furnished to the Commission. A change in conditions at a facility that does not
affect the safe operation of the facility or the ability of the facility to
operate without causing waste of hydrocarbons or pollution is not considered to
be material;
(B) fresh water is
likely to be polluted as a result of continued operation of the
facility;
(C) there are material
violations of the terms and provisions of the permit or Commission
regulations;
(D) the applicant has
misrepresented any material facts during the permit issuance process;
or
(E) injected fluids are escaping
or are likely to escape from the storage facility.
(2) Imminent dangers. Notwithstanding the
provisions of paragraph (1) of this subsection, in the event of an emergency
that presents an imminent danger to life or property, or where waste of
hydrocarbons, uncontrolled escape of hydrocarbons, or pollution of fresh water
is imminent, the Commission or its designee may immediately suspend a storage
facility permit until a final order is issued pursuant to a hearing, if any,
conducted in accordance with the provisions of paragraph (1) of this
subsection. All operations at the facility shall cease upon suspension of a
permit under this paragraph.
(g) Transfer of permit. A storage facility
permit may not be transferred without the prior approval of the Commission or
its designee. Until such transfer is approved by the Commission or its
designee, the proposed transferee may not conduct any activities otherwise
authorized by the permit. The following procedure shall be followed when
requesting approval for transfer of a permit.
(1) Request. Prior to transferring either
ownership or operation of a storage facility, the permittee shall file a
request for transfer of the permit with the Commission. Such request may not be
filed unless a completed Form P-4, signed by both the permittee and the
proposed transferee, has been filed with the Commission.
(2) Approval. The Commission, or its
designee, shall approve the transfer of a storage facility permit, provided:
(A) the proposed transferee is not the
subject of any unsatisfied Commission enforcement order at the time of the
request for permit transfer; and
(B) there are no existing violations of any
Commission regulation, order, or permit at the storage facility at the time of
the request for permit transfer that have been documented by the Commission, or
its employees, unless the proposed transferee agrees to correct the violations
according to a compliance schedule approved by the Commission, or its
designee.
(3) Good
cause. Notwithstanding paragraph (2) of this subsection, for good cause shown
the Commission or its designee may require public notice and opportunity for
hearing prior to taking action on a request for transfer of a permit. Such
request may be denied after notice and opportunity for hearing if the
Commission or its designee finds that transfer of the permit would not be in
the public interest.
(h)
Safety. The following safety requirements shall apply to all underground
hydrocarbon storage facilities, except as specifically provided otherwise,
provided, however, that the provisions of this subsection shall not apply to
any hydrocarbon storage well that is out of service and disconnected from all
surface piping. Notwithstanding the compliance time periods specified in this
subsection, a new storage facility permitted under this section must have all
required safety measures and equipment in place before commencement of storage
operations at the facility. All storage facilities that are permitted on the
effective date of this section must have such safety measures and equipment in
place within the period of time specified. Further, until such a facility has
all the safety measures and devices required by paragraphs (2) - (7) and (13) -
(16) of this subsection in place, the facility must have an attendant on site
at all times. Notwithstanding the compliance time periods specified in
paragraph (2)(B) of this subsection, no storage well in active service may be
operated without a fully functional emergency shutdown valve unless in
compliance with specified conditions of paragraph (2)(C) of this subsection.
(1) Monitoring of injection and withdrawal
operations. All hydrocarbon injection and withdrawal activities shall be
continuously monitored by an individual who is trained and experienced in such
activities. Any facility that is unattended during injection and withdrawal
activities shall have company personnel on call at all times. On-call personnel
must be able to reach the facility within 30 minutes from the time a potential
problem at the storage facility is noted by the individual monitoring the
injection or withdrawal activities.
(2) Storage wellhead.
(A) The storage wellhead shall be designed,
operated, and maintained to contain the contents of the storage well and
protect against loss of stored product.
(B) Within five years of the effective date
of this section, the operator shall have installed emergency shutdown valves
between the storage wellhead and the product and brine surface piping of each
hydrocarbon storage well and, if required under paragraph (3) of this
subsection, between the storage wellhead and fresh water surface piping of the
well. Within one year of the effective date of the section, an operator may
request an exception to the storage wellhead configuration or compliance date
of this subparagraph and propose an alternative configuration or workover
schedule for approval by the Commission or its designee. A storage well that is
out of service and is disconnected from surface piping shall be exempt from
this requirement until reactivated for active hydrocarbon storage. Emergency
shutdown valves shall meet the following requirements.
(i) Each emergency shutdown valve shall be
capable of activation at each storage well, at the on-site control center if
one exists, at the remote control center if one exists, and at a location that
is reasonably anticipated to be accessible to emergency response personnel at
any facility that does not have an on-site control center that is attended 24
hours per day.
(ii) Each emergency
shutdown valve shall be an automatic fail-closed valve that automatically
closes when there is a loss of pneumatic pressure, hydraulic pressure, or power
to the valve.
(iii) Each emergency
shutdown valve shall be closed and opened at least monthly.
(iv) Each emergency shutdown valve system
shall be tested at least twice each calendar year at intervals not to exceed 7
1/2 months. The test shall consist of activating the actuation devices,
checking the warning system, and observing the valve closure.
(C) If an emergency shutdown valve
system fails to operate as required, the storage well shall be immediately shut
in until repairs are completed, unless:
(i) a
backup emergency shutdown valve is in operation on the same piping;
or
(ii) an attendant is posted at
the well site to provide immediate manual shut-in.
(D) The requirements of this paragraph do not
apply to underground hydrocarbon storage facilities storing only crude
oil.
(3) Product, brine,
and fresh water surface piping.
(A) Product
surface piping shall be designed for the permitted maximum allowable operating
pressure on the hydrocarbon side of the well. For facilities with hazardous
materials surface piping under the administrative authority of the Safety
Division of the Railroad Commission of Texas, for the purposes of this section,
product surface piping extends from the wellhead emergency shutdown valve to
the first pressure regulation device, including a manual, motor-operated, or
emergency shutdown valve.
(B) Brine
surface piping shall be designed for the maximum brine wellhead pressure and to
transport, under emergency conditions, product to the brine system gas vapor
control system described in paragraph (6) of this subsection unless:
(i) a secondary emergency shutdown valve is
in operation on the brine surface piping; and
(ii) the brine surface piping between the
wellhead emergency shutdown valve and the secondary emergency shutdown valve is
designed for the permitted maximum allowable operating pressure on the
hydrocarbon side of the well.
(C) Fresh water surface piping, if any, must
be equipped with a wellhead emergency shutdown valve unless it is:
(i) disconnected from the wellhead;
or
(ii) connected to brine surface
piping outboard of the wellhead emergency shutdown valve; or
(iii) designed for the permitted maximum
allowable operating pressure on the hydrocarbon side of the well; and has an
internal diameter of less than or equal to two inches; and an attendant is
posted at the well site to provide immediate manual shut-in when in
use.
(D) Fresh water
piping designed for the permitted maximum allowable operating pressure on the
hydrocarbon side of the well and with an internal diameter of less than or
equal to two inches is exempt from the requirement that an emergency shutdown
valve be located on the wellhead or separated from the wellhead by a spool no
longer than six feet.
(4) Overfill detection and automatic shut-in
methods.
(A) The requirements of this
paragraph shall not apply to an underground hydrocarbon storage facility
storing only crude oil.
(B) The
requirements of this paragraph shall not apply to a storage well that is out of
service and disconnected from surface piping until the well is reconnected for
hydrocarbon storage.
(C) Within one
year of the effective date of this section, each storage cavern shall have at
least two of the following redundant devices or methods in operation:
(i) a safety casing or annular tubing string
filled with a non-volatile fluid and equipped with a pressure sensor switch set
to automatically close all emergency shutdown valves in response to a preset
pressure;
(ii) a preset pressure
sensor switch or transducer on the brine piping that is set to automatically
close all emergency shutdown valves in response to a preset pressure. This
pressure sensor or transducer may be used in conjunction with weep hole(s) on a
safety string that is concentric with the brine string, or in conjunction with
weep hole(s) on the brine string;
(iii) a device on the brine string or brine
piping that detects hydrocarbon in the brine by physical or chemical
characteristics and that is set to automatically close all emergency shutdown
valves in response to hydrocarbon detection;
(iv) an instrument that detects a rapid
increase in the brine flow rate indicative of hydrocarbon in the brine and that
is set to automatically close all emergency shutdown valves in response to a
preset flow rate or differential flow rate; or
(v) an alternate device or method approved by
the Commission or its designee.
(5) Leak detectors.
(A) The provisions of subparagraphs (B) - (D)
of this paragraph shall not apply to underground hydrocarbon storage facilities
storing only crude oil.
(B) A leak
detector shall be installed and in operation at the wellhead of each
hydrocarbon storage well and at each process and transfer area and each surface
vessel area that contains liquid or liquefied hydrocarbons. These leak
detectors shall be integrated with the warning system required in paragraph
(13)(A) of this subsection.
(C)
Leak detectors shall be installed and in operation at four locations that are
evenly spaced around the perimeter of the brine pit(s).
(D) Leak detectors shall be tested twice each
calendar year at intervals not to exceed 7 1/2 months and, when defective,
repaired or replaced within 10 days.
(6) Brine system gas vapor control.
(A) The provisions of this paragraph shall
not apply to underground hydrocarbon storage facilities storing only crude
oil.
(B) Gas vapor control devices
shall be installed and in operation at each brine pit system to ignite or
capture hydrocarbon vapors that are heavier than air. Control devices shall
consist of at least one of the following:
(i)
a flare on the brine system upstream from the brine discharge point;
(ii) a hydrocarbon liquid knockout vessel and
degasifier;
(iii) pilot lights on
the berm of each brine pit; or
(iv)
an alternative method designed to provide a reliable, localized point of
ignition to prevent the formation of a vapor cloud.
(C) Brine system gas vapor control systems
shall be inspected twice each calendar year at intervals not to exceed 7 1/2
months.
(7) Fire
detection devices or methods and fire control systems.
(A) Fire detection devices or methods shall
be installed and in operation at all process and transfer areas. Fire detection
devices or methods specified in this paragraph shall be integrated with the
warning system required in paragraph (13)(A) of this subsection. Fire detection
shall consist of at least one of the following:
(i) fire detectors;
(ii) heat sensors, including meltdown and
fused devices; or
(iii) camera
surveillance at facilities that are attended at an on-site control room 24
hours per day.
(B) Fire
detectors shall be tested twice each calendar year at intervals not to exceed 7
1/2 months and, when defective, repaired or replaced within 10 days.
(C) Within three years of the effective date
of this section, each storage wellhead in active storage service shall have
fire suppression capability designed to aid in personnel rescue and for
equipment protection and cooling. Within one year of the effective date of this
section, the operator may request an exception to the schedule or fire
suppression requirement of this subparagraph and propose an alternative
schedule or means of protection from wellhead fire for approval of the
Commission or its designee.
(8) Emergency response plan. Each storage
facility shall submit to the Commission a written emergency response plan. The
plan shall address spills and releases, fires, fire suppression capability,
explosions, loss of electricity, and loss of telecommunication services. The
plan shall describe the storage facility's emergency response communication
system, procedures for coordination of emergency communication and response
activities with local emergency planning committees and other local
authorities, use of warning systems, procedures for citizen and employee
emergency notification and evacuation, and employee training. The initial plan
must be designed based upon the existing safety measures at the facility. The
plan shall be updated as changes in safety features at the facility occur, or
as the Commission or its designee requires. The plan shall include a plat of
the facility that shows the location of wells, processing areas, loading racks,
brine pits, and other significant features at the site. A copy of the plan
shall be provided to the local emergency response planning committee and to any
other local governmental entity that submits a written request for a copy of
the plan to the operator. Copies of the plan shall also be available at the
storage facility and at the company headquarters.
(9) Notification of emergency or uncontrolled
release.
(A) Emergency response personnel.
Each operator shall notify the county sheriff's office, the county emergency
management coordinator, and any other appropriate public officials, which are
identified in the emergency response plan, of any emergency that could endanger
nearby residents or property. Such emergencies include, but are not limited to,
an uncontrolled release of hydrocarbons from a storage well, or a leak or fire
at any area of the storage facility. The operator shall give notice as soon as
practicable following the discovery of the emergency. At the time of the
notice, the operator shall report an assessment of the potential threat to the
public.
(B) Commission. The
operator shall report to the appropriate Commission district office as soon as
practicable any emergency, significant loss of fluids, significant mechanical
failure, or other problem that increases the potential for an uncontrolled
release. The operator shall file with the Commission within 30 days of the
incident a written report on the root cause of the incident. The operator shall
file with the Commission within 90 days of the incident a written report that
describes the operational changes, if any, that have been or will be
implemented to reduce the likelihood of a recurrence of a similar incident. An
operator may request that the Commission grant, for good cause, a reasonable
amount of additional time to file a written report on the root cause of the
incident.
(10) Public
education. Each facility operator shall establish a continuing educational
program to inform residents within a one-mile radius of a hydrocarbon storage
facility of emergency notification and evacuation procedures.
(11) Annual emergency drill. Annually, each
operator shall conduct a drill that tests response to a simulated emergency.
Written notice of the drill shall be provided to the appropriate Commission
district office, the county emergency management coordinator, and the county
sheriff's office at least seven days prior to the drill. Local emergency
response authorities shall be invited to participate in all such drills. The
operator shall file a written evaluation of the drill and plans for
improvements with the appropriate district office and the county emergency
management coordinator within 30 days after the date of the drill.
(12) Employee safety training.
(A) Each operator shall prepare and implement
a plan to train and test each employee at each underground hydrocarbon storage
facility on operational safety to the extent applicable to the employee's
duties and responsibilities. The facility's emergency response plan shall be
included in the training program.
(B) Each operator shall hold a safety meeting
with each contractor prior to the commencement of any new contract work at an
underground hydrocarbon storage facility. Emergency measures, including safety
and evacuation measures specific to the contractor's work, shall be explained
in the contractor safety meeting.
(13) Warning systems and alarms.
(A) All leak detectors, fire detectors, heat
sensors, pressure sensors, and emergency shutdown instrumentation shall be
integrated with warning systems that are audible and visible in the local
control room and at any remote control center. The circuitry shall be designed
so that failure of a detector or heat sensor, excluding meltdown and fused
devices, to function will activate the warning.
(B) A manually operated alarm shall be
installed at each attended storage facility. The alarm shall be audible in
areas of the facility where personnel are normally located.
(14) Wind socks. At least one wind
sock that is visible at any time from any normal work location within the
storage facility shall be installed at the facility.
(15) Barriers. Barriers designed to prevent
unintended impact by vehicles and equipment shall be placed around above-grade
hydrocarbon piping, hydrocarbon process equipment, and surface hydrocarbon
storage vessels in areas where vehicles may normally be expected to travel or
within 100 feet of a public road.
(16) Wellhead, surface piping, and associated
valves. All wellhead equipment, product, fresh water, and brine surface piping,
and associated valves shall be designed, installed, and operated in accordance
with engineering standards to the expected service conditions to which the
piping and equipment will be subjected.
(i) Cavern capacity and configuration.
(1) Crude oil storage. The provisions of this
subsection shall not apply to underground hydrocarbon storage facilities where
only crude oil is stored.
(2)
Before storage operations begin. The capacity and configuration of each
hydrocarbon storage cavern (both salt domes and bedded salt) shall be
determined by sonar survey before storage operations begin in a newly completed
cavern.
(3) Salt domes. The
capacity and configuration of each salt dome hydrocarbon storage cavern shall
be determined by sonar survey at least once every 10 years.
(4) Bedded salt. The configuration of the
roof of each hydrocarbon storage cavern in bedded salt shall be determined by
downhole log or an alternate method approved by the Commission or its designee
at least once every five years.
(5)
Filing results. Sonar and roof monitoring survey results shall be filed with
the Commission within 30 days after the survey.
(6) Out-of-service caverns. A sonar or roof
monitoring survey is not required for a cavern that is out of service. A sonar
or roof monitoring survey shall be performed before any cavern that has been
out of service is returned to service, unless the provisions of paragraph (2)
of this subsection apply.
(j) Well completion, casing, and cementing.
Hydrocarbon storage wells shall be cased and the casing strings cemented to
prevent fluids from escaping to the surface or into fresh water strata, or
otherwise escaping and causing waste or endangering public safety or the
environment.
(1) New wells.
(A) All hydrocarbon storage wells drilled in
salt domes after the effective date of this section shall have at least two
casing strings cemented into the salt formation. Sufficient cement shall be
used to fill the annular space outside the casing from the casing shoe to the
ground surface, or from the casing shoe to a point at least 200 feet above the
shoe of the previous casing string.
(B) All hydrocarbon storage wells in bedded
salt drilled after the effective date of this section shall have all casing
strings cemented with sufficient cement to fill the annular space outside each
casing string from the casing shoe to the ground surface.
(2) Well completion report. A well completion
report shall be filed in accordance with the instructions on the form
prescribed by the Commission within 30 days after a storage well is completed
and before solution mining to create the cavern begins.
(k) Operating requirements.
(1) Operating pressure. The operating
pressure of each hydrocarbon storage well shall not exceed the permitted
maximum allowable operating pressure for that well. The permitted maximum
allowable operating pressure is that pressure specified in the Commission
permit or order, or, if not specified in the permit or order, that pressure
stated in the application or the application for amendment to a permit or
order. The maximum operating pressure at the shoe of the lowermost cemented
casing shall not exceed 0.8 pounds per square inch per foot of depth.
(2) Volume of hydrocarbons stored. The
quantity of hydrocarbons stored in a cavern shall not exceed the permitted
maximum storage volume for that cavern. The permitted maximum hydrocarbon
storage volume is that volume specified in the Commission permit or order, or,
if not specified in the permit or order, that volume stated in the application
or the application for amendment to a permit or order.
(l) Monitoring requirements.
(1) Pressures. Each hydrocarbon storage well
shall be equipped with pressure sensors that continuously monitor and display
wellhead pressures on both the product and brine sides of the wellhead at the
control room. Each hydrocarbon storage well with a safety string shall be
equipped with a pressure sensor and the sensor shall continuously monitor the
pressure on the safety string at the wellhead.
(2) Pressure gauges. Each hydrocarbon storage
well shall be equipped with gauges on both the brine and hydrocarbon sides of
the wellhead.
(3) Volumes injected
and withdrawn. The volume of hydrocarbons injected into and withdrawn from each
hydrocarbon storage well shall be measured by:
(A) flow meter for each well; or
(B) an alternate method approved by the
Commission or its designee.
(4) Measurement performance. The accuracy of
hydrocarbon volume measurement devices or methods required under paragraph (3)
of this subsection shall be verified at least once each year by a person who is
not an officer or employee of the owner or operator, or any affiliate of the
owner or operator. For purposes of this section, an affiliate is any person or
entity that owns, is owned by, or is under common ownership with the owner or
the operator. In the case of meters, verification includes witnessing meter
calibration or proving conducted by the owner or operator or an affiliate of
the owner or operator.
(5) Data
recording. Within three years of the effective date of this section, operators
shall have installed and have functioning equipment to electronically record
all liquid and gas pressures, volumes, and flow rates at a frequency of at
least once per minute, and all actuations of the emergency shutdown
valve.
(m) Reporting.
The operator shall report maximum wellhead pressures on the hydrocarbon and
brine sides of each hydrocarbon storage well and the net volumes of
hydrocarbons injected into and withdrawn from each hydrocarbon storage well in
accordance with the instructions on the annual report form prescribed by the
Commission.
(n) Operations,
construction, and maintenance records retention.
(1) Hydrocarbon injection and withdrawal
data.
(A) The operator shall retain for at
least three months all electronic records of hydrocarbon storage well
pressures, flow rates, and hydrocarbon volumes injected into and withdrawn from
each well, and the hydrocarbon inventory of each cavern. These electronic data
shall be recorded at a frequency of at least once per minute.
(B) The operator shall retain for at least
five years the records, reported to the Commission under subsection (m) of this
section, of maximum monthly wellhead pressures on the hydrocarbon and brine
sides of each hydrocarbon storage well and the monthly net volumes of
hydrocarbons injected into and withdrawn from each hydrocarbon storage well.
These electronic data shall be recorded at a frequency of at least once per
day.
(2) Records
retention. The operator shall retain for at least five years the records of
measurement performance under subsection (l)(4) of this section; and testing of
safety devices under subsection (h) of this section. Records of any test of a
safety device required under subsection (h) of this section shall be available
for on-site inspection within 10 days of the date of the test.
(3) Construction and maintenance data. The
operator shall retain for the life of the facility documents and records
pertaining to the drilling, mining, completion, major repairs, and workovers of
storage wells and testing of storage well integrity, and shall transfer all
such documents and records to any new owner and/or new operator of the
facility.
(4) Extension during
investigation. Any documents or records that contain information pertinent to
the resolution of any pending regulatory enforcement proceeding shall be
retained beyond the prescribed retention until the resolution of such
proceeding.
(o) Testing
and maintenance.
(1) Integrity tests for
wells in salt domes with a single casing string. Each hydrocarbon storage well
drilled into a salt dome and having a single casing string cemented to the
surface shall have the casing inspected by mechanical, ultrasonic, or magnetic
methods at least once every five years and after each workover that involves
physical changes to the cemented casing string.
(2) Integrity tests for wells other than
those in salt domes with a single casing string. Each hydrocarbon storage well
shall be tested for integrity prior to being placed into service, at least once
every five years, and after each workover that involves physical changes to any
cemented casing string. The following requirements apply to all such integrity
tests.
(A) A hydrocarbon storage well shall
be tested for integrity by the nitrogen-brine interface method or an
alternative approved by the Commission, or its designee.
(B) A test procedure shall be filed with the
Commission for approval at least 10 days before the test date.
(C) The operator shall notify the district
office at least five days prior to conducting any integrity test.
(D) A complete record of each integrity test
shall be filed in duplicate with the district office within 30 days after
testing is completed. The record shall include a chronology of the test, copies
of all downhole logs, storage well completion information, pressure readings,
volume measurements, temperature logs and readings, and an explanation of the
test results that addresses the precision of the test in terms of a calculated
leak rate.
(E) Storage well
pressures shall be allowed to stabilize to a rate of change of less than 10 psi
in 24 hours before the testing period begins.
(3) Storage wellhead and casing. Storage
wellhead components and casing shall be inspected at least once every 10 years
for corrosion, cracks, deformations or other conditions that may compromise
integrity and that may not be detected by the five-year test. The operator may
request an extension of up to five years from the Commission for good cause.
Factors the Commission may consider in determining good cause pursuant to this
paragraph include by are not limited to the age, location, and configuration of
the well; well and facility history; operator compliance record; operator
efforts to comply with this subsection; and accuracy of inventory
control.
(4) Product, fresh water,
and brine surface piping. Within one year of the effective date of this
section, the operator shall submit a piping integrity management plan for
approval by the Commission or its designee. Within three years of the effective
date of this section, or in conjunction with the storage well integrity
testing, all product, freshwater, and brine surface piping shall be maintained
according to the facility's piping integrity management plan.
(5) Alternative monitoring. An operator may
request the Commission or its designee to approve storage well pressure
monitoring as an alternative to integrity testing for hydrocarbon storage wells
that are out of storage service. An out-of-service storage well must be tested
for integrity according to the procedures specified in paragraph (2) of this
subsection before it may be returned to storage service.
(p) Plugging.
(1) Plug on abandonment. A hydrocarbon
storage well shall be plugged upon permanent abandonment in a manner approved
by the Commission or its designee. A proposal for plugging shall be submitted
to the Commission in Austin for approval or modification prior to plugging.
Following approval of a plugging plan, the operator shall file a notification
of intent to plug at least five days prior to commencement of plugging
operations. A plugging report shall be filed with the Commission in Austin
within 30 days after plugging.
(2)
Alternative monitoring. As an alternative to plugging a hydrocarbon storage
well that has been permanently deactivated, an operator may request approval by
the Commission or its designee of a plan to convert the storage well to a
monitor well. A pressure monitoring plan must be submitted to the Commission
along with the request to convert the storage well to a monitoring
well.
(q) Penalties.
(1) Penalties. Violations of this section may
subject the operator to penalties and remedies specified in the Texas Natural
Resources Code, Titles 3 and 11, and other statutes administered by the
Commission.
(2) Certificate of
compliance. The certificate of compliance for any underground hydrocarbon
storage facility may be revoked in the manner provided in §
RSA
3.73 of this title (relating to Pipeline
Connection; Cancellation of Certificate of Compliance; Severance).
(r) Applicability of other
Commission rules and orders. The owner or operator of an underground
hydrocarbon storage facility is not relieved by this section of compliance with
any other requirement of Chapters 3, 4, 7, or 8 of this title (relating to Oil
and Gas Division; Environmental Protection; Gas Services Division; or Pipeline
Safety Regulations).