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TITLE 16ECONOMIC REGULATION
PART 1RAILROAD COMMISSION OF TEXAS
CHAPTER 3OIL AND GAS DIVISION
RULE §3.97Underground Storage of Gas in Salt Formations

(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 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 with the Commission a request for transfer of the permit. Such a 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 gas storage facilities, provided, however, that the provisions of this subsection shall not apply to any natural gas storage well that is out of service and disconnected from surface piping. Notwithstanding the compliance time periods specified in this subsection, a new underground gas 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 existing storage facilities must have such safety measures and equipment in place within the period of time specified. 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 gas injection and withdrawal activities shall be continuously monitored by an individual who is experienced and trained 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 is noted by the individual monitoring the injection or withdrawal activities.

  (2) Storage wellhead.

    (A) The storage wellhead must 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 wellhead and the gas injection/withdrawal surface piping of each storage well and between the wellhead and any brine or fresh water surface piping. Within one year of the effective date of this section, the 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 gas 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 or hydraulic pressure on, or power to, the valve or when the maximum operating pressure under subsection (k) of this section is exceeded.

      (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 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.

  (3) Gas, brine, and fresh water surface piping.

    (A) Gas 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, gas 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 piping, if any, shall be designed for the maximum brine wellhead pressure and to transport, under emergency conditions, gas to a gas control system if the operator is solution mining while the gas storage well is in active storage service, 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 an emergency shutdown valve unless it is:

      (i) disconnected from the wellhead; or

      (ii) connected to the brine surface piping outboard of the wellhead emergency shutdown valve; or

      (iii) designed for the maximum allowable operating pressure on the hydrocarbon side of the well; and has an internal diameter of less than or equal to two inches; and an attendant is posted at the well site to provide immediate manual shut-in when in use.

    (D) Fresh water piping designed for the permitted maximum allowable operating pressure on the hydrocarbon side of the well and with an internal diameter of less than or equal to two inches, is exempt from the requirement that an emergency shutdown valve be separated from the wellhead by a spool no longer than six feet.

  (4) Cavern debrining and solution mining operations.

    (A) Within one year of the effective date of this section, each storage well shall have two or more of the following redundant devices or methods in operation during cavern debrining operations or during solution mining operations that are conducted with gas in storage in the same cavern. These devices are designed to prevent the release of gas into the brine and fresh water systems connected to the well during cavern debrining operations or during solution mining operations that are conducted with gas in storage in the same cavern. Gas release prevention shall consist of at least two of the following redundant devices or methods:

      (i) emergency shutdown valves equipped with pressure sensor switches or transducers set to automatically close emergency shutdown valves on the brine side of the wellhead and on the fresh water piping, if any, in response to preset pressures on the brine and fresh water piping of the well;

      (ii) weep hole(s) on the brine return string in conjunction with a preset pressure sensor switch or transducer on the brine piping that is set to automatically close emergency shutdown valves on the brine side of the wellhead and on the fresh water piping, if any, in response to a preset pressure;

      (iii) a device on the brine return string or brine piping that detects hydrocarbon in the brine by physical or chemical characteristics and that is set to automatically close emergency shutdown valves on the brine side of the wellhead and on the fresh water piping, if any, in response to hydrocarbon detection;

Cont'd...

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