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TITLE 16ECONOMIC REGULATION
PART 1RAILROAD COMMISSION OF TEXAS
CHAPTER 14REGULATIONS FOR LIQUEFIED NATURAL GAS (LNG)
SUBCHAPTER AGENERAL APPLICABILITY AND REQUIREMENTS
RULE §14.2040Filings and Notice Requirements for Stationary LNG Installations

(a) No LNG container shall be placed into LNG service or an installation operated or used in LNG service until the requirements of this section, as applicable, are met and the facility is in compliance with all applicable rules in this chapter and all statutes, in addition to any applicable requirements of the municipality or the county where an installation is or will be located. A person who purchases an existing LNG installation shall file LNG Form 2019 with LP-Gas Operations within 10 calendar days of the purchase in order for the installation to remain in LNG service.

(b) Prior to the construction of a stationary installation which would result in an aggregate water capacity of 15,540 gallons or more, the applicant shall submit LNG Form 2500 and a non-refundable $50 application fee to LP-Gas Operations including site plans and plans and specifications for the installation at least 30 calendar days prior to construction.

  (1) Plans and specifications shall be sealed by a registered professional engineer licensed and in good standing to practice in the State of Texas and who is qualified in the area of the design and construction of LNG facilities.

  (2) Plans and specifications shall include fire protection which complies with §14.2131 of this title (relating to Fire Protection).

  (3) If the applicant modifies the plans and specifications before tentative or interim approval is granted by LP-Gas Operations or the Commission, respectively, the plans and specifications shall be resealed by a registered professional engineer licensed to practice in the State of Texas and resubmitted to LP-Gas Operations. A non-refundable fee of $30 shall be required for any resubmission.

(c) Prior to the installation of an LNG container resulting in an aggregate water capacity of 15,540 gallons or more, the applicant or licensee shall send a copy of LNG Form 2500, LNG Form 2500A, and a plat by certified mail, return receipt requested, to all owners of real property situated within 500 feet of the proposed container location(s). The applicant or licensee shall submit LNG Form 2500 to LP-Gas Operations at the same time LNG Form 2500 and LNG Form 2500A are mailed to the real property owners.

  (1) Notice shall be considered sufficient when the applicant or licensee has provided evidence that a complete LNG Form 2500, LNG Form 2500A, and a plat have been sent to all real property owners. The applicant or licensee may obtained names and addresses of owners from current county tax rolls.

  (2) The applicant or licensee shall notify owners of real property situated within 500 feet of the proposed container location(s) if the current aggregate water capacity of the installation is more than doubled in a 12-month period or if the resulting aggregate water capacity of the installation will be more than 214,348 gallons.

  (3) The applicant or licensee shall retain the return receipts for Commission review, if requested.

  (4) The site plan or drawing shall describe the facility's property or a 250-foot diameter (measured from the proposed container's location on the site), whichever is smaller, and include all containers, buildings, structures, geographical or topographical features, or any other features or activities relating to LNG which could affect the health, safety and welfare of the general public. The site plan or drawing shall include a scale or legend to indicate the distances or measurements described.

  (5) Objections shall be filed with LP-Gas Operations within 18 days of the postmarked date on the notice letter. If LP-Gas Operations finds that the objection is not proper, LP-Gas Operations shall notify the property owner and the property owner shall have ten days from the date of LP-Gas Operations' postmarked letter to correct the objection. If one or more of the adjoining property owners files an objection and a written request with LP-Gas Operations for a hearing, the hearing shall be conducted as soon as possible and a recommendation presented to the Railroad Commission within 90 days following the hearing. When possible, the hearing shall be held in a location near the proposed site.

    (A) LP-Gas Operations shall review all objections within 10 business days of receipt. An objection shall be in writing and shall include a statement of facts showing that the proposed installation:

      (i) does not comply with the rules in this chapter, specifying which rules are violated;

      (ii) does not comply with the statutes of the State of Texas, specifying which statutes are violated; or

      (iii) constitutes a danger to the public health, safety, and welfare, specifying the exact nature of the danger. For purposes of this section, "danger" means an imminent threat or an unreasonable risk of bodily harm, but does not mean diminished property or esthetic values in the area. The Railroad Commission does not consider public health, safety, and welfare to include such factors as the value of property adjacent to the installation, the esthetics of the proposed installation, or similar considerations.

    (B) Upon review of the objection, LP-Gas Operations shall either:

      (i) schedule a public hearing as specified in §14.2022 of this title (relating to Denial, Suspension, or Revocation of Licenses or Certifications, and Hearing Procedure); or

      (ii) notify the objecting party in writing within 10 business days of receipt requesting further information for clarification and stating why the objection is being returned. The objecting entity shall have 10 calendar days from the postmark of LP-Gas Operations' letter to file its corrected objection. Clarification of incomplete or non-substantive objections shall be limited to two opportunities. If new objections are raised in the objecting party's clarification, the new objections shall be limited to one notice of correction.

  (6) Temporary installations which are used during peak demand times such as during cold weather or emergencies are not required to comply with these notice requirements. However, a sign shall be installed at the site and brochures or other similar means of notification shall be available at the site to advise the public of the need and use for the temporary installation.

(d) Unless considered to be in the public interest by LP-Gas Operations, the applicant or licensee does not need to notify owners of real property situated within 500 feet of the proposed container location(s) of an addition to an existing LNG facility provided the current aggregate water capacity is not more than doubled in a 12-month period; however, if the resulting aggregate water capacity will exceed 214,348 gallons, the applicant or licensee shall provide notice as specified in subsection (c) of this section.

(e) LP-Gas Operations shall grant tentative or the Commission shall grant interim approval prior to the setting of the LNG container and construction of the LNG installation.

(f) When an LNG container is replaced with a container of the same or less overall diameter and length or height, and installed in the identical location of the existing container at an LNG storage installation of 15,540 gallons aggregate water capacity or more, the applicant shall file LNG Form 2501 with LP-Gas Operations.

  (1) LNG Form 2500, LNG Form 2500A, and LNG Form 2501, including site plans and plans and specifications, are not required to be filed prior to installation of pull-away devices, or emergency shutoff valves (ESV's), or when maintenance and improvements are being performed to the piping system at existing previously approved LNG installations having an aggregate water capacity of 15,540 gallons or more.

  (2) A nonrefundable fee of $50 shall be submitted with each LNG Form 2500. A nonrefundable resubmission fee of $30 shall be included with each incomplete or revised set of plans and specifications resubmitted.

  (3) The proposed installation shall not be operated or used in LNG service until approved by LP-Gas Operations.

(g) Upon completion of a commercial installation having an aggregate water capacity of less than 15,540 gallons, the applicant shall submit LNG Form 2501, postmarked or physically delivered to LP-Gas Operations, within ten calendar days after completion of such installation. LNG Form 2501 shall state that:

  (1) the installation complies with the statutes and the rules in this chapter;

  (2) any necessary LNG licenses have been issued; and

  (3) the installation has been placed in LNG service.

(h) A nonrefundable fee of $10 for each LNG container listed on LNG Form 2501 shall be submitted with each LNG Form 2501 required to be filed by the applicable subsections of this section. A nonrefundable resubmission fee of $20 shall be included for each LNG Form 2501 resubmitted.

(i) LP-Gas Operations shall review all applications within 21 business days of the receipt of all required information and shall notify the applicant as follows:

  (1) If LP-Gas Operations administratively approves the installation, LP-Gas Operations shall notify the applicant in writing within 21 business days.

  (2) If LP-Gas Operations declines to administratively approve the installation, LP-Gas Operations shall notify the applicant in writing, specifying the deficiencies, within 21 business days. The applicant may modify the submission and resubmit it for approval, or may request a hearing on the matter in accordance with Chapter 1 of this title (relating to Practice and Procedure).

(j) When LP-Gas Operations notifies an applicant of an incomplete LNG Form 2500 or LNG Form 2500A, the applicant has 120 calendar days from the date of the notification letter to resubmit the corrected application or the application will expire. After 120 days, the applicant shall file a new application to reactivate LP-Gas Operations' review of the proposed installation.

  (1) The applicant may request in writing an extension of the 120-day time period. The request shall be postmarked or physically delivered to LP-Gas Operations before the expiration date. LP-Gas Operations may extend the application period for up to an additional 90 days.

  (2) If the tentatively approved installation is not completed within one year from the date tentative approval was granted, the application will expire. Prior to the date of expiration, the applicant may request in writing an extension of time of up to 90 days to complete the installation. If the applicant fails to request an extension of time within the time period prescribed in this subsection, the applicant will be required to submit a new application before the original installation can be completed.

  (3) Prior to the installation of an LNG container referenced in this section in a heavily populated or congested area, LP-Gas Operations shall determine whether the proposed installation poses a threat to the health, safety, and welfare of the general public. LP-Gas Operations shall determine restrictions on LNG container capacities in accordance with the following:

    (A) density of the population within 500 feet of the LNG installation;

    (B) nature of the land use on those pieces of property located within 500 feet of the LNG installation;

    (C) vehicular traffic in the area;

    (D) types and numbers of roadways in the area;

    (E) type of operations on the premises;

    (F) potential ignition sources in the area;

    (G) existence of dangerous or combustible materials in the area that might be affected in an emergency situation;

    (H) the number of members of the general public who are concentrated in the area; and

    (I) other factors related to the public health, safety, and welfare.

(k) LP-Gas Operations shall examine plans and specifications to ensure that they have been sealed by a qualified professional engineer licensed to practice in the State of Texas. LP-Gas Operations shall review site plans to determine whether the installation complies with the distance requirements in this chapter. LP-Gas Operations shall determine whether the subject of the submission poses a threat to the health, safety, and welfare of the general public.

  (1) If LP-Gas Operations declines to approve administratively the submission, LP-Gas Operations shall notify the applicant of this decision in writing within 21 calendar days. The applicant may modify the submission and resubmit it for approval within 21 calendar days after receiving the notice, or may request a hearing to be conducted in accordance with Chapter 1 of this title. The subject of the submission shall not be operated or used in LNG service in this state until approved by the Commission following a hearing.

  (2) LNG Form 2008 or the Manufacturer's Data Report, and any other documentation pertinent to the installation, may be requested by LP-Gas Operations in order to further determine compliance with the rules in this chapter.

(l) Physical inspection of stationary installations.

  (1) Aggregate water capacity 15,540 gallons or more. The applicant shall notify LP-Gas Operations when the installation is ready for inspection. If LP-Gas Operations does not physically inspect the facility within 30 calendar days of receipt of notice that the facility is ready for inspection, the applicant may operate the facility conditionally until the initial complete inspection is made. If any safety rule violations exist at the time of the initial inspection, the applicant may be required to cease LNG operations until the applicant corrects the violations.

Cont'd...

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