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TITLE 16ECONOMIC REGULATION
PART 1RAILROAD COMMISSION OF TEXAS
CHAPTER 3OIL AND GAS DIVISION
RULE §3.95Underground Storage of Liquid or Liquefied Hydrocarbons in Salt Formations

  (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 §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).


Source Note: The provisions of this §3.95 adopted to be effective January 1, 1994, 18 TexReg 8871; amended to be effective November 24, 2004, 29 TexReg 10728; amended to be effective January 30, 2007, 32 TexReg 289; amended to be effective July 2, 2012, 37 TexReg 4892

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