| (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) fresh water is likely to be polluted as a result
of continued operation of the 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 dangers. 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
otherwise 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 a request
for transfer of the permit with the Commission. Such 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 hydrocarbon storage facilities, except as
specifically provided otherwise, provided, however, that the provisions
of this subsection shall not apply to any hydrocarbon storage well
that is out of service and disconnected from all surface piping. Notwithstanding
the compliance time periods specified in this subsection, a new 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 storage facilities that are permitted on the
effective date of this section must have such safety measures and
equipment in place within the period of time specified. Further, until
such a facility has all the safety measures and devices required by
paragraphs (2) - (7) and (13) - (16) of this subsection in place,
the facility must have an attendant on site at all times. 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 hydrocarbon injection and withdrawal activities shall be continuously
monitored by an individual who is trained and experienced 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 at the storage facility is noted by the
individual monitoring the injection or withdrawal activities.
(2) Storage wellhead.
(A) The storage wellhead shall 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 storage wellhead and the product and brine surface piping
of each hydrocarbon storage well and, if required under paragraph
(3) of this subsection, between the storage wellhead and fresh water
surface piping of the well. Within one year of the effective date
of the section, an 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 hydrocarbon 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 pressure, hydraulic pressure, or power to the valve.
(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 storage 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.
(D) The requirements of this paragraph do not apply
to underground hydrocarbon storage facilities storing only crude oil.
(3) Product, brine, and fresh water surface piping.
(A) Product 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,
product 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 surface piping shall be designed for the
maximum brine wellhead pressure and to transport, under emergency
conditions, product to the brine system gas vapor control system described
in paragraph (6) of this subsection 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 a wellhead emergency shutdown valve unless it is:
(i) disconnected from the wellhead; or
(ii) connected to brine surface piping outboard of
the wellhead emergency shutdown valve; or
Cont'd... |
