| (A) If the commission receives a protest regarding
an application for amendment of a gas storage project permit 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 or its designee
determines that a hearing is in the public interest, then the applicant
will be notified that the application for amendment cannot be administratively
approved. The commission will schedule a hearing on the application
upon 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.
(B) If the commission receives no protest regarding
an application for amendment of a gas storage project permit from
a person notified pursuant to paragraph (1) of this subsection or
from any other affected person, the application may be approved administratively.
(C) If the application for amendment of a gas storage
project permit 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.
(g) Modification, cancellation, or suspension of a
permit.
(1) General. A permit may be modified, suspended, or
canceled after notice and opportunity for hearing under any of the
following circumstances:
(A) a material change in conditions has occurred in
the operation of the gas storage project, 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 the continued operation of the gas storage project;
(C) there are material violations of the terms and
provisions of the permit or of applicable commission orders or regulations;
(D) the applicant has misrepresented material facts
during the permit issuance process; or
(E) injected fluids are escaping or are likely to escape
from the storage project.
(2) Imminent danger. 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 permit for underground gas storage 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 underground
gas storage operations shall cease upon suspension of a permit under
this paragraph.
(h) Transfer of permit. A gas storage project permit
may be transferred from one operator to another operator if both of
the following requirements are met.
(1) Notice. Written notice of intended permit transfer
is submitted to the commission at least 15 days prior to the date
the transfer takes place.
(2) No objection. The commission or its designee does
not notify the present permit holder of an objection to the transfer
prior to the transfer date stated in the notification in paragraph
(1) of this subsection.
(i) Safety requirements for gas storage projects.
(1) Leak detectors.
(A) Within two years of the effective date of this
section, leak detectors shall be installed and in operation at each
gas storage well that is located 100 yards or less from a residence,
commercial establishment, church, school, or small, well-defined outside
area, and at each structurally enclosed compressor site. For purposes
of this section, the term "small, well-defined outside area" means
an area such as a playground, recreation area, outdoor theater, or
other place of public assembly that is occupied by 20 or more persons
on at least five days a week for 10 weeks in any 12-month period.
The days and weeks need not be consecutive.
(B) Each leak detector required under this paragraph
shall be tested twice each calendar year at intervals not to exceed
7-1/2 months and, when defective, repaired or replaced within 10 days.
(2) Warning systems. Within two years of the effective
date of this section, all leak detectors required in paragraph (1)
of this subsection shall be integrated with warning systems that are
audible and visible in the control room and at any remote control
center. The circuitry shall be designed so that failure of a detector
or pressure monitor to function will activate the warning.
(3) Emergency response plan. Within six months of the
effective date of this section, each operator shall submit to the
commission a safety plan that includes emergency response procedures,
provisions to provide security against unauthorized activity, and
gas release detection and prevention measures. The plan shall include
a description of and be designed for the residential, commercial,
and public land use in the proximity of the gas storage project. The
initial plan must be designed based upon the existing safety measures
at the facility. The plan shall be updated as changes in safety features
at the facility occur, or as the commission or its designee requires.
Copies of the plan shall be available at the storage facility and
at the company headquarters.
(4) Safety training. Within six months of the effective
date of this section, each operator shall prepare and implement a
plan to train and test each employee at each gas storage project on
operational safety and emergency response procedures to the extent
applicable to the employee's duties and responsibilities. The plan
shall be incorporated into the plan addressing the requirements of
the United States Department of Transportation and Occupational Safety
and Health Administration. Each operator shall hold a safety meeting
with each contractor prior to the commencement of any new contract
work at a gas storage project. Emergency measures specific to the
contractor's work shall be explained in the contractor safety meeting.
(5) Gas withdrawal wells exempt. Gas storage wells
that will be used only for gas withdrawal are exempt from the requirements
of paragraphs (1) and (2) of this subsection.
(j) Area of review. The applicant shall review the
data of public record for wells that penetrate the portion of the
gas reservoir that falls within the area proposed to be designated
as the gas storage reservoir, and those wells that penetrate the gas
reservoir within 1/4 mile of the outer boundary of the proposed gas
storage reservoir, to determine if all abandoned wells have been plugged
in a manner that will prevent the movement of fluids from the gas
storage reservoir. The applicant shall identify in the application
any wells which appear from such review of public records to be unplugged
or improperly plugged, and any other unplugged or improperly plugged
wells of which the applicant has actual knowledge.
(k) Casing. Gas storage wells shall be cased and the
casing cemented in compliance with §3.13 of this title (relating
to Casing, Cementing, Drilling, and Completion Requirements).
(l) Special equipment.
(1) Tubing and packer. New wells drilled or converted
for injection of gases after April 1, 1982, shall be equipped with
tubing set on a mechanical packer. Packers shall be set no higher
than 200 feet below the known top of cement behind the long string
casing but in no case higher than 150 feet below the base of fresh
water.
(2) Pressure observation valve. The wellhead shall
be equipped with a pressure observation valve on the tubing and each
annulus of the well.
(3) Exceptions. An exception to any provision of this
subsection may be granted administratively upon a showing of good
cause. If a request for an exception is administratively denied, the
operator shall have a right to a hearing upon request. After hearing,
the examiner shall recommend a final action by the commission.
(m) Well record. Within 30 days after the completion,
conversion, or recompletion of a gas storage well, the operator shall
file in duplicate in the district office a complete record of the
well on the appropriate form which shows the current completion.
(n) Monitoring and reporting.
(1) Wellhead pressure. The wellhead pressure of each
gas storage well shall be continuously recorded, continuously monitored
electronically, or controlled by a preset high-low pressure sensor
switch.
(2) Pressure reporting. Information regarding wellhead
pressures for each gas storage well shall be reported annually to
the commission on the prescribed form.
Cont'd... |
