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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

  (12) Employee safety training.

    (A) Each operator shall prepare and implement a plan to train and test each employee at each underground hydrocarbon 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 hydrocarbon storage facility. Emergency measures, including safety and evacuation measures specific to the contractor's work, shall be explained in the contractor safety meeting.

  (13) Warning systems and alarms.

    (A) All leak detectors, fire detectors, heat sensors, pressure sensors, and emergency shutdown instrumentation shall be integrated with warning systems that are audible and visible in the local control room and at any remote control center. The circuitry shall be designed so that failure of a detector or heat sensor, excluding meltdown and fused devices, to function will activate the warning.

    (B) A manually operated alarm shall be installed at each attended storage facility. The alarm shall be audible in areas of the facility where personnel are normally located.

  (14) Wind socks. At least one wind sock that is visible at any time from any normal work location within the storage facility shall be installed at the facility.

  (15) Barriers. Barriers designed to prevent unintended impact by vehicles and equipment shall be placed around above-grade hydrocarbon piping, hydrocarbon process equipment, and surface hydrocarbon storage vessels in areas where vehicles may normally be expected to travel or within 100 feet of a public road.

  (16) Wellhead, surface piping, and associated valves. All wellhead equipment, product, fresh water, and brine 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.

(i) Cavern capacity and configuration.

  (1) Crude oil storage. The provisions of this subsection shall not apply to underground hydrocarbon storage facilities where only crude oil is stored.

  (2) Before storage operations begin. The capacity and configuration of each hydrocarbon storage cavern (both salt domes and bedded salt) shall be determined by sonar survey before storage operations begin in a newly completed cavern.

  (3) Salt domes. The capacity and configuration of each salt dome hydrocarbon storage cavern shall be determined by sonar survey at least once every 10 years.

  (4) Bedded salt. The configuration of the roof of each hydrocarbon 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.

  (5) Filing results. Sonar and roof monitoring survey results shall be filed with the Commission within 30 days after the survey.

  (6) 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 cavern that has been out of service is returned to service, unless the provisions of paragraph (2) of this subsection apply.

(j) Well completion, casing, and cementing. Hydrocarbon storage wells shall be cased and the casing strings cemented to prevent fluids 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 hydrocarbon 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 hydrocarbon storage wells in bedded salt drilled 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 requirements.

  (1) Operating pressure. The operating pressure of each hydrocarbon 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. The maximum operating pressure at the shoe of the lowermost cemented casing shall not exceed 0.8 pounds per square inch per foot of depth.

  (2) Volume of hydrocarbons stored. The quantity of hydrocarbons stored in a cavern shall not exceed the permitted maximum storage volume for that cavern. The permitted maximum hydrocarbon storage volume is that volume specified in the Commission permit or order, or, if not specified in the permit or order, that volume stated in the application or the application for amendment to a permit or order.

(l) Monitoring requirements.

  (1) Pressures. Each hydrocarbon storage well shall be equipped with pressure sensors that continuously monitor and display wellhead pressures on both the product and brine sides of the wellhead at the control room. Each hydrocarbon storage well with a safety string shall be equipped with a pressure sensor and the sensor shall continuously monitor the pressure on the safety string at the wellhead.

  (2) Pressure gauges. Each hydrocarbon storage well shall be equipped with gauges on both the brine and hydrocarbon sides of the wellhead.

  (3) Volumes injected and withdrawn. The volume of hydrocarbons injected into and withdrawn from each hydrocarbon storage well shall be measured by:

    (A) flow meter for each well; or

    (B) an alternate method approved by the Commission or its designee.

  (4) Measurement performance. The accuracy of hydrocarbon volume measurement devices or methods required under paragraph (3) of this subsection shall be verified at least once each year by a person who is not an officer or employee of the owner or operator, or any affiliate of the owner or operator. For purposes of this section, an affiliate is any person or entity that owns, is owned by, or is under common ownership with the owner or the operator. In the case of meters, verification includes witnessing meter calibration or proving conducted by the owner or operator or an affiliate of the owner or operator.

  (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, volumes, and flow rates at a frequency of at least once per minute, and all actuations of the emergency shutdown valve.

(m) Reporting. The operator shall report maximum wellhead pressures on the hydrocarbon and brine sides of each hydrocarbon storage well and the net volumes of hydrocarbons injected into and withdrawn from each hydrocarbon storage well in accordance with the instructions on the annual report form prescribed by the Commission.

(n) Operations, construction, and maintenance records retention.

  (1) Hydrocarbon injection and withdrawal data.

    (A) The operator shall retain for at least three months all electronic records of hydrocarbon storage well pressures, flow rates, and hydrocarbon volumes injected into and withdrawn from each well, and the hydrocarbon inventory of each cavern. 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) of this section, of maximum monthly wellhead pressures on the hydrocarbon and brine sides of each hydrocarbon storage well and the monthly net volumes of hydrocarbons injected into and withdrawn from each hydrocarbon storage well. 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.

Cont'd...

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