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 an application for an underground gas storage
project permit or an amendment or modification of an existing underground gas
storage project permit, has suffered or may suffer actual injury or economic
damage other than as a member of the general public.
(2) Commission--The Railroad Commission of
Texas.
(3) Fresh water--Water
having bacteriological, physical, and chemical properties that make it suitable
and feasible for beneficial use for any lawful purpose.
(4) 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.
(5) Gas storage or underground gas
storage--Storage of natural gas or other gaseous material in a productive or
depleted reservoir, exclusive of gas injection for enhanced recovery.
(6) Gas storage project--All surface and
subsurface rights, appurtenances, and improvements necessary for conducting
underground gas storage operations in a gas storage reservoir.
(7) Gas storage well or storage well--A well
used to inject or withdraw natural gas or other gaseous material stored in a
productive or depleted reservoir, exclusive of a well used to inject gas for
enhanced recovery.
(8)
Operator--The person recognized by the commission as being responsible for the
physical operation of a gas storage project, or such person's authorized
representative.
(9) Person--A
natural person, corporation, organization, government, governmental subdivision
or agency, business trust, estate, trust, partnership, association, or any
other legal entity.
(10)
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.
(11)
Productive or depleted reservoir--A subsurface sand, stratum, or formation that
is productive of, or has previously produced, oil, gas, or geothermal
resources.
(b) Permit
required.
(1) General. No person may operate
a gas storage project without obtaining a permit from the commission. A permit
issued by the commission for operation of a gas storage project before the
effective date of this section shall continue in effect until revoked,
modified, or suspended by the commission, or until it expires according to its
terms. The provisions of this section apply to gas storage projects permitted
prior to the effective date of this section, except as otherwise specifically
provided.
(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. An application to operate a
gas storage project shall be filed with the commission by the owner or operator
or proposed owner or operator. The application shall include the following:
(1) compliance with safety
requirements--information demonstrating compliance with the provisions of
subsection (i) of this section;
(2)
request for reservoir designation--a request for designation of a productive or
depleted reservoir as a gas storage reservoir, supported by the following:
(A) information demonstrating that the
reservoir is suitable for gas storage; and
(B) information demonstrating the amount of
recoverable native gas remaining in the reservoir;
(3) compliance with standards for injection
wells--information demonstrating compliance with the provisions of subsections
(j), (k), and (l) of this section for each gas injection well. The requirements
of this paragraph do not apply to wells used for gas withdrawal only;
(4) water protection letter--a letter from
the Groundwater Advisory Unit of the Oil and Gas Division stating the depth to
which fresh water strata occur in the project area;
(5) public interest--a request that the
commission issue an order containing the findings described in the Texas
Natural Resources Code, §
RSA
91.174<subdiv>(a)</subdiv>, if
such an order is desired by the applicant;
(6) fees--the fees required under §
RSA
3.78 of this title (relating to Fees and
Financial Security Requirements) for each gas storage well in the storage
project that will be used for injection.
(d) Permit amendment. An application for
amendment of an existing gas storage project permit shall be filed with the
commission as specified in paragraphs (1) - (4) of this subsection.
(1) Expansion of reservoir. An application
for permit amendment shall be filed prior to expanding the areal extent of the
gas storage reservoir.
(2) Increase
in pressure. An application for permit amendment shall be filed prior to
increasing the gas storage reservoir pressure above the maximum permitted
pressure.
(3) Adding storage wells.
An application for permit amendment shall be filed prior to adding additional
gas storage wells to the project.
(4) Material deviation. An application for
permit amendment shall be filed at any time that conditions at the storage
project deviate materially from the conditions specified in the permit or
permit application.
(e)
Standards for storage reservoir. A gas storage project shall be operated only
in a productive or depleted reservoir in a manner that will prevent waste of
oil, gas, or geothermal resources, uncontrolled escape of gases, pollution of
fresh water, and danger to life or property.
(f) Notice and hearing.
(1) Notice requirements. By no later than the
date the application is mailed to or filed with the commission, the applicant
shall give notice of an application for a permit to operate a gas storage
project, or to amend an existing storage project permit, by mailing or
delivering a copy of the application to:
(A)
each mineral interest owner, other than the applicant, of the proposed gas
storage reservoir;
(B) each
leaseholder of minerals lying above or below the proposed gas storage
reservoir;
(C) each leaseholder of
minerals offsetting the proposed gas storage reservoir;
(D) each owner or leaseholder of any portion
of the surface overlying the proposed gas storage reservoir;
(E) the clerk of the county or counties where
the proposed gas storage reservoir is located; and
(F) the city clerk or other appropriate city
official where the proposed gas storage reservoir is located within city
limits.
(2) Publication
of notice. Notice of the application for an original or amended gas storage
project permit, 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 where the gas storage project is
located. The applicant shall file proof of publication of the notice prior to
any hearing on the application or administrative approval.
(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 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. An
application for a new gas storage project permit 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) If the commission receives a protest
regarding an application for amendment of a gas storage project permit 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 or its designee determines that a hearing is in the public
interest, then the applicant will be notified that the application for
amendment cannot be administratively approved. The commission will schedule a
hearing on the application upon 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.
(B) If the commission
receives no protest regarding an application for amendment of a gas storage
project permit from a person notified pursuant to paragraph (1) of this
subsection or from any other affected person, the application may be approved
administratively.
(C) If the
application for amendment of a gas storage project permit 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.
(g) Modification, cancellation, or suspension
of a permit.
(1) General. A permit may be
modified, suspended, or canceled after notice and opportunity for hearing under
any of the following circumstances:
(A) a
material change in conditions has occurred in the operation of the gas storage
project, 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 the continued operation of the gas storage
project;
(C) there are material
violations of the terms and provisions of the permit or of applicable
commission orders or regulations;
(D) the applicant has misrepresented material
facts during the permit issuance process; or
(E) injected fluids are escaping or are
likely to escape from the storage project.
(2) Imminent danger. 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 permit
for underground gas storage 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 underground gas storage operations shall cease upon
suspension of a permit under this paragraph.
(h) Transfer of permit. A gas storage project
permit may be transferred from one operator to another operator if both of the
following requirements are met.
(1) Notice.
Written notice of intended permit transfer is submitted to the commission at
least 15 days prior to the date the transfer takes place.
(2) No objection. The commission or its
designee does not notify the present permit holder of an objection to the
transfer prior to the transfer date stated in the notification in paragraph (1)
of this subsection.
(i)
Safety requirements for gas storage projects.
(1) Leak detectors.
(A) Within two years of the effective date of
this section, leak detectors shall be installed and in operation at each gas
storage well that is located 100 yards or less from a residence, commercial
establishment, church, school, or small, well-defined outside area, and at each
structurally enclosed compressor site. For purposes of this section, the term
"small, well-defined outside area" means an area such as a playground,
recreation area, outdoor theater, or other place of public assembly that is
occupied by 20 or more persons on at least five days a week for 10 weeks in any
12-month period. The days and weeks need not be consecutive.
(B) Each leak detector required under this
paragraph 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.
(2) Warning
systems. Within two years of the effective date of this section, all leak
detectors required in paragraph (1) of this subsection shall be integrated with
warning systems that are audible and visible in the control room and at any
remote control center. The circuitry shall be designed so that failure of a
detector or pressure monitor to function will activate the warning.
(3) Emergency response plan. Within six
months of the effective date of this section, each operator shall submit to the
commission a safety plan that includes emergency response procedures,
provisions to provide security against unauthorized activity, and gas release
detection and prevention measures. The plan shall include a description of and
be designed for the residential, commercial, and public land use in the
proximity of the gas storage project. 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. Copies of the plan shall be available at the storage
facility and at the company headquarters.
(4) Safety training. Within six months of the
effective date of this section, each operator shall prepare and implement a
plan to train and test each employee at each gas storage project on operational
safety and emergency response procedures to the extent applicable to the
employee's duties and responsibilities. The plan shall be incorporated into the
plan addressing the requirements of the United States Department of
Transportation and Occupational Safety and Health Administration. Each operator
shall hold a safety meeting with each contractor prior to the commencement of
any new contract work at a gas storage project. Emergency measures specific to
the contractor's work shall be explained in the contractor safety
meeting.
(5) Gas withdrawal wells
exempt. Gas storage wells that will be used only for gas withdrawal are exempt
from the requirements of paragraphs (1) and (2) of this subsection.
(j) Area of review. The applicant
shall review the data of public record for wells that penetrate the portion of
the gas reservoir that falls within the area proposed to be designated as the
gas storage reservoir, and those wells that penetrate the gas reservoir within
1/4 mile of the outer boundary of the proposed gas storage reservoir, to
determine if all abandoned wells have been plugged in a manner that will
prevent the movement of fluids from the gas storage reservoir. The applicant
shall identify in the application any wells which appear from such review of
public records to be unplugged or improperly plugged, and any other unplugged
or improperly plugged wells of which the applicant has actual
knowledge.
(k) Casing. Gas storage
wells shall be cased and the casing cemented in compliance with §
RSA
3.13 of this title (relating to Casing,
Cementing, Drilling, and Completion Requirements).
(l) Special equipment.
(1) Tubing and packer. New wells drilled or
converted for injection of gases after April 1, 1982, shall be equipped with
tubing set on a mechanical packer. Packers shall be set no higher than 200 feet
below the known top of cement behind the long string casing but in no case
higher than 150 feet below the base of fresh water.
(2) Pressure observation valve. The wellhead
shall be equipped with a pressure observation valve on the tubing and each
annulus of the well.
(3)
Exceptions. An exception to any provision of this subsection may be granted
administratively upon a showing of good cause. If a request for an exception is
administratively denied, the operator shall have a right to a hearing upon
request. After hearing, the examiner shall recommend a final action by the
commission.
(m) Well
record. Within 30 days after the completion, conversion, or recompletion of a
gas storage well, the operator shall file in duplicate in the district office a
complete record of the well on the appropriate form which shows the current
completion.
(n) Monitoring and
reporting.
(1) Wellhead pressure. The
wellhead pressure of each gas storage well shall be continuously recorded,
continuously monitored electronically, or controlled by a preset high-low
pressure sensor switch.
(2)
Pressure reporting. Information regarding wellhead pressures for each gas
storage well shall be reported annually to the commission on the prescribed
form.
(3) Gas metering. The total
volume of gas injected into and withdrawn from the storage project shall be
metered through a master meter.
(4)
Record retention. All wellhead pressure records, gas metering records, and leak
detector test results shall be retained by the operator for at least five
years.
(5) Reporting of leaks. The
operator shall report to the appropriate district office the discovery of any
pressure changes or other monitoring data that indicate the presence of leaks
in the well or the lack of confinement of the injected gases to the gas storage
reservoir. Such report shall be made orally as soon as practicable following
the discovery of the leak, and shall be confirmed in writing within five
working days.
(6) Gas volume
reports. On or before the last day of each month, the operator of each gas
storage project that stores gas to supply a public utility shall file with the
commission a report showing the volume of gas placed into storage and the
volume of gas removed from storage at the project during the preceding month.
The report shall also state the total volume of gas stored on the first and
last days of the preceding month. This report shall be filed in a format
acceptable to the commission.
(o) Integrity testing.
(1) Prior to commencing operations. Before
beginning gas injection operations, the operator shall pressure test the long
string casing, or the tubing-casing annulus if the well is equipped with tubing
set in a packer. Gas storage wells in which injection occurs through casing
shall be tested at the maximum authorized injection pressure. Gas storage wells
in which injection occurs through tubing and packer shall be tested at no less
than 500 psig.
(2) Subsequent
tests. Each gas storage well shall be pressure tested in the manner provided in
paragraph (1) of this subsection at least once every five years to determine if
there are leaks in the casing, tubing, or packer. The commission, or its
designee, may prescribe a schedule and mail notification to operators to allow
for orderly and timely compliance with this requirement.
(3) Alternatives to testing. As an
alternative to the testing required in paragraph (2) of this subsection, the
tubing-casing annulus pressure may be monitored and monitoring results
described in the annual monitoring report required by subsection (n) of this
section, provided that there is no indication of problems with the well. The
commission, or its designee, may also grant an exception for other viable
alternative tests or surveys.
(4)
District office notification. The operator shall notify the appropriate
district office at least 48 hours prior to conducting the test required in
paragraphs (1) or (2) of this subsection. Testing shall not commence before the
end of the 48-hour period unless authorized by the district office.
(5) Test records. A complete record of all
tests shall be filed in duplicate with the district office within 30 days after
the testing.
(6) Gas withdrawal
wells exempt. Gas storage wells that shall be used only for gas withdrawal are
excluded from the requirements of this subsection.
(p) Plugging. Gas storage wells shall be
plugged upon abandonment in accordance with §
RSA 3.14 of
this title (relating to Plugging).
(q) Penalties.
(1) General. Violations of this section may
subject the operator to penalties and remedies specified in the Texas Natural
Resources Code, Title 3; Texas Civil Statutes, Article 6053-3; and other
statutes administered by the commission.
(2) Certificate of compliance. The
certificate of compliance for any oil, gas, or geothermal resource well may be
revoked in the manner provided in §
RSA
3.73 of this title (relating to Pipeline
Connection; Cancellation of Certificate of Compliance; Severance) for violation
of this section.
(r)
Applicability of other commission rules.
(1)
General. The operator of a gas storage project must comply with the
requirements of Chapters 7 and 8 of this title (relating to Gas Services
Division, and Pipeline Safety Regulations) for both pipelines and associated
facilities, and other applicable commission rules and orders.
(2) Signs. Each location at which gas storage
activities take place, including each gas storage well, shall be identified by
a sign that meets the requirements specified in §3.3(a)(1), (2), and (5)
of this title (relating to Identification of Properties, Wells, and Tanks). In
addition, each sign shall include a telephone number where the operator, or a
representative of the operator, can be reached in the event of an
emergency.