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 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) Cavern--The storage space created in a
salt formation by solution mining.
(3) Commission--The Railroad Commission of
Texas.
(4) Emergency shutdown
valve--A valve that automatically closes to isolate a gas storage wellhead from
surface piping in the event of specified conditions that, if uncontrolled, may
cause an emergency.
(5) 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 gas storage facility is not considered fresh
water.
(6) Gas storage well or
storage well--A well, including the storage wellhead, casing, tubing, borehole,
and cavern used for the injection or withdrawal of natural gas or any other
gaseous substance into or out of an underground gas storage facility.
(7) Leak or fire detector--A device capable
of detecting by chemical or physical means the presence of stored product gas
or the escape of stored product gas or the presence of flame or heat of a
fire.
(8) Operator--The person
recognized by the Commission as being responsible for the physical operation of
an underground gas storage facility, or such person's authorized
representative.
(9) Owner--The
person recognized by the Commission as owning all or part of an underground gas
storage facility, or such person's authorized representative.
(10) Person--A natural person, corporation,
organization, government, governmental subdivision or agency, business trust,
estate, trust, partnership, association, or any other legal entity.
(11) 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.
(12) 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 less than six feet to be considered a
part of the storage wellhead.
(13)
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 gas, brine, or fresh water to or from a storage well whether such
pipe is above or below ground level.
(14) Underground gas storage facility or
storage facility--A facility used for the storage of natural gas or any other
gaseous substance 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 gas 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 according to its terms. The provisions of this section apply to permits
to conduct gas storage operations issued 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.
(1) Information required. An application for
a permit to create, operate, or maintain an underground gas storage facility
shall be filed with the Commission by the owner or operator, or the proposed
owner or operator, on the prescribed form. The application shall contain the
information necessary to demonstrate compliance with applicable state laws and
Commission regulations.
(2) Permit
amendment. An application for amendment of an existing underground gas 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
storage wells;
(D) prior to an
increase in the maximum operating pressure above the permitted pressure;
or
(E) any time that conditions at
the storage facility deviate materially from the conditions specified in the
permit or 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 of the storage facility
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 gas, uncontrolled escape of gas, or pollution of
fresh water occurs;
(B) require the
permittee to file an application to amend the underground gas storage facility
permit;
(C) modify, cancel, or
suspend the permit as provided in subsection (f) of this section; or
(D) take enforcement action.
(d) Standards for
underground storage zone.
(1) Geologic,
construction, and operating performance. An underground gas storage facility
may be created, operated, or maintained only in an impermeable salt formation
in a manner that will prevent waste of the stored gases, uncontrolled escape of
gases, pollution of fresh water, and danger to life or property. This section
does not authorize storage of liquid or liquefied hydrocarbons in an
underground salt formation. A permit under §
RSA
3.95 of this title (relating to Underground
Storage of Liquid or Liquefied Hydrocarbons in Salt Formations) is required to
convert from storage of natural gas to storage of liquid or liquefied
hydrocarbons 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 or counties where the storage facility is located or
is proposed to be located; and
(F)
if the storage facility is located or is 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 where the storage 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 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 gas 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 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) pollution of fresh
water is likely as a result of continued operation of the storage
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 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 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 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 with the Commission a request for transfer of the permit.
Such a 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 gas
storage facilities, provided, however, that the provisions of this subsection
shall not apply to any natural gas storage well that is out of service and
disconnected from surface piping. Notwithstanding the compliance time periods
specified in this subsection, a new underground gas 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 existing
storage facilities must have such safety measures and equipment in place within
the period of time specified. 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 gas injection and withdrawal activities shall be
continuously monitored by an individual who is experienced and trained 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 is noted by the individual monitoring the injection or withdrawal
activities.
(2) Storage wellhead.
(A) The storage wellhead must 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 wellhead and the gas injection/withdrawal surface piping of each
storage well and between the wellhead and any brine or fresh water surface
piping. Within one year of the effective date of this section, the 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 gas 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 or hydraulic pressure on, or power to,
the valve or when the maximum operating pressure under subsection (k) of this
section is exceeded.
(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 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.
(3) Gas, brine, and fresh water
surface piping.
(A) Gas 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, gas 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 piping, if any,
shall be designed for the maximum brine wellhead pressure and to transport,
under emergency conditions, gas to a gas control system if the operator is
solution mining while the gas storage well is in active storage service,
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 an emergency shutdown valve unless it is:
(i) disconnected from the wellhead;
or
(ii) connected to the brine
surface piping outboard of the wellhead emergency shutdown valve; or
(iii) designed for the 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 separated from
the wellhead by a spool no longer than six feet.
(4) Cavern debrining and solution mining
operations.
(A) Within one year of the
effective date of this section, each storage well shall have two or more of the
following redundant devices or methods in operation during cavern debrining
operations or during solution mining operations that are conducted with gas in
storage in the same cavern. These devices are designed to prevent the release
of gas into the brine and fresh water systems connected to the well during
cavern debrining operations or during solution mining operations that are
conducted with gas in storage in the same cavern. Gas release prevention shall
consist of at least two of the following redundant devices or methods:
(i) emergency shutdown valves equipped with
pressure sensor switches or transducers set to automatically close emergency
shutdown valves on the brine side of the wellhead and on the fresh water
piping, if any, in response to preset pressures on the brine and fresh water
piping of the well;
(ii) weep
hole(s) on the brine return string in conjunction with a preset pressure sensor
switch or transducer on the brine piping that is set to automatically close
emergency shutdown valves on the brine side of the wellhead and on the fresh
water piping, if any, in response to a preset pressure;
(iii) a device on the brine return string or
brine piping that detects hydrocarbon in the brine by physical or chemical
characteristics and that is set to automatically close emergency shutdown
valves on the brine side of the wellhead and on the fresh water piping, if any,
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 emergency shutdown valves on the brine side of
the wellhead and on the fresh water piping, if any, in response to a preset
flow rate or differential flow rate; or
(v) an alternative device or method approved
by the Commission.
(B)
Solution mining of a cavern may occur while gas is in storage, provided that
the injection of fresh water and the injection of gas do not occur
simultaneously within the same cavern.
(5) Leak or fire detectors.
(A) Within two years of the effective date of
this section, a leak or fire detector shall be installed and in operation at
each gas storage well and each structurally enclosed compressor site.
(B) Leak or 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. Leak or fire detectors shall be
integrated with warning systems required in paragraph (6)(A) of this
subsection.
(6) Warning
systems and alarms.
(A) Within two years of
the effective date of this section, all leak or fire detectors and sensors or
methods that actuate the emergency shutdown valve 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
leak or fire detector to function will activate the warning.
(B) A manually operated audible alarm shall
be installed at each attended storage facility. The alarm shall be audible in
areas of the facility where personnel are normally located.
(7) Emergency response plan. Each
storage facility shall submit to the Commission a written emergency response
plan. The plan shall address gas releases, fires, fire suppression capability,
explosions, loss of electricity, and loss of telecommunication services. The
plan shall describe the facility's emergency response communication system,
procedures for coordination of emergency communication and response activities
with local authorities, use of warning systems, procedures for citizen and
employee emergency notification and evacuation, and employee training. The plan
shall also include a plat of the facility showing the locations of wells,
processing areas, and other significant features at the facility. 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. A copy of the plan shall be
provided to the local emergency response 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.
(8) 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 also 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 gas or 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. Within
90 days of the incident, the operator shall file with the Commission 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.
(9) 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.
(10) Employee safety
training.
(A) Each operator shall prepare and
implement a plan to train and test each employee at each underground gas
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 gas storage facility. Emergency measures, including safety and
evacuation measures specific to the contractor's work, shall be explained in
the contractor safety meeting.
(11) Fire suppression capability.
(A) Within three years of the effective date
of this section, each operator shall have fire suppression capability designed
to aid in personnel rescue and equipment protection and cooling.
(B) 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 paragraph and propose an alternative schedule
or means of protection from wellhead fire for approval of the Commission or its
designee.
(12) Wellhead,
piping, and associated valves. All wellhead 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.
(13) Barriers. Within one year of the
effective date of this section, barriers designed to prevent unintended impact
by vehicles and equipment shall be placed around above grade hydrocarbon
piping, hydrocarbon process equipment where vehicles may normally be expected
to travel, or within 100 feet of a public road.
(i) Cavern capacity and configuration.
(1) Before storage operations begin. The
capacity and configuration of each gas storage cavern (both salt domes and
bedded salt) shall be determined by sonar survey before storage operations
begin in a newly completed cavern.
(2) Salt domes. The capacity and
configuration of each salt dome gas storage cavern shall be determined by sonar
survey before a cavern that has been out of service is returned to service,
provided, however, that a sonar survey shall not be required on a cavern that
is being returned to service if a sonar survey of that cavern has been run at
any time during the previous 10 years.
(3) Bedded salt. The configuration of the
roof of each gas 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.
(4)
Filing of results. Sonar and roof monitoring survey results shall be filed with
the Commission within 30 days after the survey.
(5) 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 such cavern that has
been out of service is returned to service, unless the provisions of paragraph
(2) of this subsection apply.
(6)
Verification. Sonar surveys performed before debrining shall be verified by
metering the volume of the displaced brine.
(j) Well completion, casing, and cementing.
Gas storage wells shall be cased and the casing strings cemented to prevent
gases 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 gas 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
gas storage wells drilled in bedded salt 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
pressure.
(1) Not to exceed maximum. The
operating pressure of each gas 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.
(2) At casing seat. The
maximum operating pressure at the casing seat shall not exceed 0.85 pounds per
square inch per foot of depth.
(l) Monitoring requirements.
(1) Gas pressure. Gas pressure on the
injection/withdrawal casing or tubing or piping connected thereto shall be
equipped with a pressure sensor to continuously monitor the wellhead pressure.
Pressure sensors shall be integrated electronically with the warning systems,
alarms, and emergency shutdown valve actuation system as required in subsection
(h)(2)(B) and (h)(6)(A) of this section.
(2) Pressure observation valves. The
injection/withdrawal casing or tubing shall be equipped with a pressure
observation valve and gauge. The wellhead shall be equipped with a pressure
observation valve on each casing annulus so that a gauge may be installed for
pressure monitoring.
(3) Volumes
injected and withdrawn. The volume of gas injected into and withdrawn from each
storage well shall be measured by:
(A) flow
meter for each well; or
(B) an
alternate method approved by the Commission.
(4) Meter calibration. Meters that measure
the volume of gas into storage and out of storage shall be recalibrated at
least once each year.
(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 and injection volumes and rates at a frequency of
at least once per minute, and all actuations of the emergency shutdown
valve.
(m) Reporting.
(1) Monthly reports. On or before the last
day of each month, the operator of each facility 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
storage facility, during the preceding month. The report shall also state the
total volume of gas in storage on the first and last days of the preceding
month. This report shall be filed in a format acceptable to the Commission or
its designee.
(2) Annual reports.
The operator shall file annually a status report for each storage well in
accordance with the instructions on the form prescribed by the
Commission.
(n)
Operations, construction, and maintenance records retention.
(1) Operations data.
(A) The operator shall retain for at least
three months all electronic records of storage well pressures, volumes of gases
injected and withdrawn, and the inventory of gas in storage. 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). 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, repair and workover of storage
wells and the 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. The operator shall retain beyond the prescribed retention period
any documents or records that contain operational data pertaining to the
resolution of any pending regulatory enforcement proceedings until the
resolution of such proceedings.
(o) Testing and maintenance.
(1) Integrity tests. Each gas 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 such integrity
tests.
(A) A test procedure shall be filed
with the Commission for approval at least 10 days before the test
date.
(B) The initial test
conducted on a well prior to placing it into service shall be performed using
the nitrogen-interface test method or an alternative method approved by the
Commission or its designee.
(C) The
integrity test required to be conducted at least once every five years on a
well that has gas in storage may be performed using pressure monitoring,
provided:
(i) the wellhead pressure is
stabilized such that the effects of ambient temperature on pressure have
overtaken the effects of the last injection or withdrawal on
pressure;
(ii) a downhole
temperature log is run at the beginning and at the end of the test
period;
(iii) the test period is a
minimum of 72 hours; and
(iv) the
net gas volume change for the test period is calculated.
(D) The operator shall notify the district
office at least five days prior to conducting any integrity test.
(E) 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.
(2)
Alternative monitoring. An operator may request the Commission or its designee
to approve well pressure monitoring as an alternative to integrity testing for
storage wells that are out of gas storage service. An out-of-service well shall
be tested for integrity by the nitrogen-interface method before it may be
returned to storage service.
(3)
Storage wellhead and casing. Storage wellhead components and casing shall be
inspected at least once every 15 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) Fresh water, brine, and gas 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 gas, freshwater,
and brine surface piping shall be maintained according to the facility's piping
integrity management plan.
(p) Plugging.
(1) Plug on abandonment. A gas 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 notification of intent to
plug at least five days prior to commencement of plugging operations. A
plugging report shall be filed with the Commission within 30 days after
plugging.
(2) Alternative
monitoring. As an alternative to plugging a gas storage well that has been
permanently deactivated, an operator may request approval by the Commission or
its designee of a plan to convert the well to a monitor well. A pressure
monitoring plan must be submitted to the Commission along with the request to
convert the well to a monitoring well.
(q) Penalties.
(1) Penalties. Violations of this section may
subject the operator to penalties and remedies specified in Texas Natural
Resources Code, Title 3; Texas Utilities Code, Chapter 121; and other statutes
administered by the Commission.
(2)
Certificate of compliance. The certificate of compliance for any underground
gas 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) for violation
of this section.
(r)
Applicability of other Commission rules and orders. The owner or operator of an
underground gas 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).