| (a) Definitions.
(1) In this section, the term "energy emergency" means
any event that results in or has the potential to result in firm load
shed required by the reliability coordinator of a power region in
Texas.
(2) In this section, the term "critical customer information"
means the information required on Commission Form CI-D and any attachments.
(3) In this section, "any volume of gas indicated in
Mcf/day" means the average daily production from the well's six most
recently filed monthly production reports. Wells without six months
of production reports shall average the production from the well's
production reports on file with the Commission or use the production
volume from the well's initial potential test or deliverability test
if the well has not yet filed a production report.
(b) Critical designation criteria. The following facilities
are designated critical during an energy emergency:
(1) Critical Gas Supplier. The following facilities
are designated a critical gas supplier:
(A) gas wells producing gas in excess of 15 Mcf/day;
(B) oil leases producing casinghead gas in excess of
50 Mcf/day;
(C) gas processing plants;
(D) natural gas pipelines and pipeline facilities including
associated compressor stations and control centers;
(E) local distribution company pipelines and pipeline
facilities including associated compressor stations and control centers;
(F) underground natural gas storage facilities;
(G) natural gas liquids transportation and storage
facilities; and
(H) saltwater disposal facilities including saltwater
disposal pipelines.
(2) Critical Customer. A critical customer is a critical
gas supplier for whom the delivery of electricity from an electric
entity is essential to the ability of such gas supplier to operate.
A critical customer is required to provide critical customer information
pursuant to subsection (g) of this section to the electric entities
described in §25.52(h) of this title (relating to Reliability
and Continuity of Service) and Texas Utilities Code §38.074(b)(1)
so that those electric entities may prioritize the facilities in accordance
with Texas Utilities Code §38.074(b)(2) and (b)(3). Priority
for load-shed purposes during an energy emergency is described by §25.52(h)(2)
of this title and any guidance issued thereunder by the Public Utility
Commission.
(c) Request for critical designation if not designated
critical in subsection (b) of this section.
(1) A facility that is not designated critical under
subsection (b) of this section may write to the Commission to apply
to be designated critical if the facility's operation is required
in order for another facility designated critical to operate. The
applicant shall include objective evidence that the facility's operation
is required for another facility designated critical in subsection
(b) of this section to operate. If approved, the facility shall submit
Form CI-D.
(2) A facility that is not designated critical under
subsection (b) of this section but that is included on the electricity
supply chain map produced by the Texas Electricity Supply Chain Security
and Mapping Committee shall write to the Commission to apply to be
designated critical, and after approval, shall submit Form CI-D.
(d) Acknowledgment of critical status. Except as provided
by subsection (f) of this section, an operator of a facility designated
as critical under subsection (b) of this section shall acknowledge
the facility's critical status by filing Form CI-D as provided in
this subsection. In the year 2022, the Form CI-D acknowledgment shall
be filed bi-annually by January 15, 2022, and either September 1,
2022, or 30 days from the date the map is produced by the Texas Electricity
Supply Chain Security and Mapping Committee, whichever is later. Beginning
in 2023, the Form CI-D acknowledgment shall be filed bi-annually by
March 1 and September 1 of each year.
(e) Facilities not eligible for an exception. Because
of their contribution to the natural gas supply chain, the following
facilities designated critical under subsection (b) of this section
are not eligible for an exception under subsection (f) of this section:
(1) a facility included on the electricity supply chain
map produced by the Texas Electricity Supply Chain Security and Mapping
Committee;
(2) gas wells or oil leases producing gas or casinghead
gas in excess of 250 Mcf/day;
(3) gas processing plants;
(4) natural gas pipelines or pipeline facilities that
directly serve local distribution companies or electric generation;
(5) local distribution company pipelines or pipeline
facilities;
(6) underground natural gas storage facilities;
(7) natural gas liquids storage and transportation
facilities; and
(8) a saltwater disposal facility, including a saltwater
disposal pipeline, that supports a facility listed in paragraphs (1)
through (7) of this subsection.
(f) Critical designation exception.
(1) A facility listed in subsection (b) of this section
other than those identified in subsection (e) of this section may
apply for an exception. An applicant shall demonstrate with objective
evidence a reasonable basis and justification in support of the application,
such as all of the gas produced at a facility is for on-site consumption,
or the facility does not otherwise provide gas for third-party use.
The Director of the Critical Infrastructure Division will administratively
approve or deny a request for an exception. If the request is denied,
the Division will notify the applicant and the applicant may request
a hearing to challenge the denial. The party requesting the hearing
shall have the burden of proof.
(2) An applicant for exception shall submit a Form
CI-X exception application that identifies each facility for which
an exception is requested. The Form CI-X shall be accompanied by an
exception application fee. The amount of the fee is $150 as established
in Chapter 81, Texas Natural Resources Code.
(A) In the year 2022, the Form CI-X exception application
shall be filed bi-annually by January 15, 2022, and either September
1, 2022, or 30 days from the date the map is produced by the Texas
Electricity Supply Chain Security and Mapping Committee, whichever
is later. Beginning in 2023, the Form CI-X exception application shall
be filed bi-annually by March 1 and September 1 of each year.
(B) Once an operator has an approved Form CI-X on file
with the Commission, the operator is not required to pay the $150
exception application fee when the operator updates the facilities
identified on its Form CI-X.
(g) Providing critical customer information. A critical
customer shall provide the critical customer information to the electric
entities described in §25.52 of this title and Texas Utilities
Code § 38.074(b)(1) unless the critical customer is granted an
exception under subsection (f) of this section. The critical customer
information shall be provided in accordance with §25.52 of this
title. The operator shall certify on its Form CI-D that it has provided
the critical customer information to its electric entity.
(h) Confidentiality of information filed pursuant to
this section. A person filing information with the Commission that
the person contends is confidential by law shall notify the Commission
on the applicable form. If the Commission receives a request under
the Texas Public Information Act (PIA), Texas Government Code, Chapter
552, for materials that have been designated confidential, the Commission
will notify the filer of the request in accordance with the provisions
of the PIA so that the filer can take action with the Office of the
Attorney General to oppose release of the materials.
(i) Exceptions not transferable. Exceptions are not
transferable upon a change of operatorship. When a facility is transferred,
both the transferor operator and the transferee operator shall ensure
the transfer is reflected on each operator's Form CI-D or Form CI-X
when the applicable form update is submitted in accordance with the
bi-annual filing timelines in subsections (d) and (f) of this section.
If the facility has an exception under subsection (f) of this section,
the exception shall remain in effect until the next bi-annual filing
deadline. If the transferee operator seeks to continue the exception
beyond that time period, the transferee operator shall indicate the
transferred facility on the Form CI-X pursuant to subsection (f) of
this section.
(j) Failure to file or provide required information.
An operator who fails to comply with this section may be subject to
penalties under §3.107 of this title (relating to Penalty Guidelines
for Oil and Gas Violations).
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