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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

  (3) Construction and maintenance data. The operator shall retain for the life of the facility documents and records pertaining to the drilling, mining, completion, repair and workover of storage wells and the testing of storage well integrity, and shall transfer all such documents and records to any new owner and/or new operator of the facility.

  (4) Extension during investigation. The operator shall retain beyond the prescribed retention period any documents or records that contain operational data pertaining to the resolution of any pending regulatory enforcement proceedings until the resolution of such proceedings.

(o) Testing and maintenance.

  (1) Integrity tests. Each gas storage well shall be tested for integrity prior to being placed into service, at least once every five years, and after each workover that involves physical changes to any cemented casing string. The following requirements apply to such integrity tests.

    (A) A test procedure shall be filed with the Commission for approval at least 10 days before the test date.

    (B) The initial test conducted on a well prior to placing it into service shall be performed using the nitrogen-interface test method or an alternative method approved by the Commission or its designee.

    (C) The integrity test required to be conducted at least once every five years on a well that has gas in storage may be performed using pressure monitoring, provided:

      (i) the wellhead pressure is stabilized such that the effects of ambient temperature on pressure have overtaken the effects of the last injection or withdrawal on pressure;

      (ii) a downhole temperature log is run at the beginning and at the end of the test period;

      (iii) the test period is a minimum of 72 hours; and

      (iv) the net gas volume change for the test period is calculated.

    (D) The operator shall notify the district office at least five days prior to conducting any integrity test.

    (E) A complete record of each integrity test shall be filed in duplicate with the district office within 30 days after testing is completed. The record shall include a chronology of the test, copies of all downhole logs, storage well completion information, pressure readings, volume measurements, temperature logs and readings, and an explanation of the test results that addresses the precision of the test in terms of a calculated leak rate.

  (2) Alternative monitoring. An operator may request the Commission or its designee to approve well pressure monitoring as an alternative to integrity testing for storage wells that are out of gas storage service. An out-of-service well shall be tested for integrity by the nitrogen-interface method before it may be returned to storage service.

  (3) Storage wellhead and casing. Storage wellhead components and casing shall be inspected at least once every 15 years for corrosion, cracks, deformations, or other conditions that may compromise integrity and that may not be detected by the five-year test. The operator may request an extension of up to five years from the Commission for good cause. Factors the Commission may consider in determining good cause pursuant to this paragraph include by are not limited to the age, location, and configuration of the well; well and facility history; operator compliance record; operator efforts to comply with this subsection; and accuracy of inventory control.

  (4) Fresh water, brine, and gas surface piping. Within one year of the effective date of this section, the operator shall submit a piping integrity management plan for approval by the Commission or its designee. Within three years of the effective date of this section, or in conjunction with the storage well integrity testing, all gas, freshwater, and brine surface piping shall be maintained according to the facility's piping integrity management plan.

(p) Plugging.

  (1) Plug on abandonment. A gas storage well shall be plugged upon permanent abandonment in a manner approved by the Commission or its designee. A proposal for plugging shall be submitted to the Commission in Austin for approval or modification prior to plugging. Following approval of a plugging plan, the operator shall file notification of intent to plug at least five days prior to commencement of plugging operations. A plugging report shall be filed with the Commission within 30 days after plugging.

  (2) Alternative monitoring. As an alternative to plugging a gas storage well that has been permanently deactivated, an operator may request approval by the Commission or its designee of a plan to convert the well to a monitor well. A pressure monitoring plan must be submitted to the Commission along with the request to convert the well to a monitoring well.

(q) Penalties.

  (1) Penalties. Violations of this section may subject the operator to penalties and remedies specified in Texas Natural Resources Code, Title 3; Texas Utilities Code, Chapter 121; and other statutes administered by the Commission.

  (2) Certificate of compliance. The certificate of compliance for any underground gas storage facility may be revoked in the manner provided in §3.73 of this title (relating to Pipeline Connection; Cancellation of Certificate of Compliance; Severance) for violation of this section.

(r) Applicability of other Commission rules and orders. The owner or operator of an underground gas storage facility is not relieved by this section of compliance with any other requirement of Chapters 3, 4, 7, or 8 of this title (relating to Oil and Gas Division; Environmental Protection; Gas Services Division; or Pipeline Safety Regulations).


Source Note: The provisions of this §3.97 adopted to be effective January 1, 1994, 18 TexReg 8871; amended to be effective November 24, 2004, 29 TexReg 10728; amended to be effective January 30, 2007, 32 TexReg 289; amended to be effective July 2, 2012, 37 TexReg 4892

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