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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

  (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 where the storage 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 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 gas 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 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) pollution of fresh water is likely as a result of continued operation of the storage 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 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 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 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:

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