| (1) Notice requirements. The applicant shall, no later
than the date the application is mailed to or filed with the Commission,
give notice of an application for a permit to create, operate, or
maintain an underground hydrocarbon storage facility, or to amend
an existing storage facility permit, by mailing or delivering a copy
of the application form to:
(A) the surface owner of the tract where the storage
facility is located or is proposed to be located;
(B) the surface owner of each tract adjoining the tract
where the storage facility is located or is proposed to be located;
(C) each oil, gas, or salt leaseholder, other than
the applicant, of the tract on which the storage facility is located
or is proposed to be located;
(D) each oil, gas, or salt leaseholder of any tract
adjoining the tract on which the storage facility is located or is
proposed to be located;
(E) the county clerk of the county where the storage
facility is located or is proposed to be located; and
(F) if the storage facility is located or proposed
to be located within city limits, the city clerk or other appropriate
city official.
(2) Publication of notice. Notice of the application,
in a form approved by the Commission or its designee, shall be published
by the applicant once a week for three consecutive weeks in a newspaper
of general circulation in the county or counties where the facility
is or is proposed to be located. The applicant shall file proof of
publication prior to any hearing on the application or administrative
approval of the application.
(3) Notice by publication. The applicant shall make
diligent efforts to ascertain the name and address of each person
identified under paragraph (1)(A) - (D) of this subsection. The exercise
of diligent efforts to ascertain the names and addresses of such persons
shall require an examination of the county records where the facility
is located and an investigation of any other information of which
the applicant has actual knowledge. If, after diligent efforts, the
applicant has been unable to ascertain the name and address of one
or more persons required to be notified under paragraph (1)(A) - (D)
of this subsection, the notice requirements for those persons are
satisfied by the publication of the notice of application as required
in paragraph (2) of this subsection. The applicant must submit an
affidavit to the Commission specifying the efforts that were taken
to identify each person whose name and/or address could not be ascertained.
(4) Hearing required for new permits. A permit application
for a new underground hydrocarbon storage facility will be considered
for approval only after notice and hearing. The Commission will give
notice of the hearing to all affected persons, local governments,
and other persons who express, in writing, an interest in the application.
After hearing, the examiner shall recommend a final action by the
Commission.
(5) Hearing on permit amendments.
(A) An application for an amendment to an existing
storage facility permit may be approved administratively if the Commission
receives no protest from a person notified pursuant to the provisions
of paragraph (1) of this subsection, or from any other affected person.
(B) If the Commission receives a protest from a person
notified pursuant to paragraph (1) of this subsection or from any
other affected person within 15 days of the date of receipt of the
application by the Commission, or of the date of the third publication,
whichever is later, or if the Commission determines that a hearing
is in the public interest, then the applicant will be notified that
the application cannot be approved administratively. The Commission
will schedule a hearing on the application upon written request of
the applicant. The Commission will give notice of the hearing to all
affected persons, local governments, and other persons who express,
in writing, an interest in the application. After hearing, the examiner
shall recommend a final action by the Commission.
(C) If the application is administratively denied,
a hearing will be scheduled upon written request of the applicant.
After hearing, the examiner shall recommend a final action by the
Commission.
(f) Modification, cancellation, or suspension of a
permit.
(1) General. Any permit may be modified, suspended,
or canceled after notice and opportunity for hearing if:
(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.
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