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TITLE 16ECONOMIC REGULATION
PART 1RAILROAD COMMISSION OF TEXAS
CHAPTER 3OIL AND GAS DIVISION
RULE §3.66Weather Emergency Preparedness Standards

  (2) An operator of a gas supply chain facility or gas pipeline facility that experiences either of the following during a weather emergency shall, within one hour of discovery of the stoppage, contact the Commission through the Critical Infrastructure Division's 24-hour emergency telephone number. Subsequent to the phone call, the operator shall submit a notification through the Critical Infrastructure Division's notification portal:

    (A) a major weather-related forced stoppage; or

    (B) a forced stoppage caused by a loss of electricity that results in the same volume of loss in natural gas production, withdrawal capacity, processing capacity, or transportation capacity as a major weather-related forced stoppage.

  (3) The notification of the major weather-related forced stoppage or weather-related forced stoppage may include information such as any third-party issues that may have directly contributed to the stoppage, if applicable.

  (4) A gas supply chain facility or a gas pipeline facility that is determined to have experienced repeated weather-related forced stoppages or major weather-related forced stoppages in sustained operation during a weather emergency shall comply with this paragraph. Upon notice from the Commission that the facility is required to comply with this paragraph, the facility's operator shall contract with a person with related experience to assess the facility's weather emergency preparation measures, plans, procedures, and operations. The person with related experience shall not be an employee of the facility or its affiliate and shall not have participated in any assessments of the facility for at least the previous five years, unless the facility's operator can document that no other persons with related experience are reasonably available for engagement. Within the timeframe provided by the Commission, the operator shall submit to the Commission a written assessment prepared by the person and the facility operator's corrective action plan in compliance with the terms in the Commission's notice that the facility is required to comply with this paragraph.

(g) Enforcement.

  (1) Violation of this section by a gas supply chain facility operator. If a major weather-related forced stoppage or weather-related forced stoppage was caused by a gas supply chain facility's failure to adhere to the requirements of this section, the facility's operator will be subject to an enforcement action. A gas supply chain facility operator will be given notice and opportunity for a hearing for alleged violations of this section. The notice will be sent by certified mail and state the facts or conduct alleged to comprise the violation. The notice will give the operator 30 days from receipt to request a hearing. Pursuant to Texas Natural Resources Code §86.044 and §§86.222-.224, if after notice and opportunity for a hearing, the Commission determines that an operator has violated this section and the violation is not remedied in a reasonable amount of time, the Commission shall notify the Office of the Attorney General of Texas of the violation in accordance with Texas Natural Resources Code §86.222. The table in this paragraph contains a classification system to be used under Texas Natural Resources Code §86.222 for violations of this section. The penalty for each violation may be up to $1,000,000.

Attached Graphic

  (2) Violation of this section by a gas pipeline facility operator.

    (A) If a major weather-related forced stoppage or weather-related forced stoppage was caused by a gas pipeline facility's failure to adhere to the requirements of this section, the facility's operator will be subject to an enforcement action. A gas pipeline facility operator will be given notice and opportunity for a hearing for alleged violations of this section. The notice will be sent by certified mail and state the facts or conduct alleged to comprise the violation. The notice will give the operator 30 days from receipt to request a hearing. Pursuant to Texas Utilities Code §121.2015, if after notice and opportunity for a hearing, the Commission determines that an operator has violated this section and the violation is not remedied in a reasonable amount of time, the Commission shall report the violation to the Office of the Attorney General of Texas. Pursuant to Texas Utilities Code §121.206, the Commission shall assess an administrative penalty for a violation of this section, which may be up to $1,000,000 for each offense. Each day a violation continues constitutes a separate offense.

    (B) In accordance with Texas Utilities Code §121.206(d), the Commission will use the table in paragraph (1) of this subsection in assessing penalties for a violation of this section. The penalty amounts contained in the table in paragraph (1) of this subsection are provided solely as guidelines to be considered by the Commission in determining the amount of administrative penalties for violations of Texas Utilities Code, Chapter 121, Subchapter E, or a safety standard or other rule prescribed or adopted under that subchapter. The establishment of these penalty guidelines shall in no way limit the Commission's authority and discretion to cite violations and assess administrative penalties. The Commission retains full authority and discretion to cite violations of Texas Utilities Code, Chapter 121, Subchapter E, or a safety standard or other rule prescribed or adopted under that subchapter, and to assess administrative penalties in any amount up to the statutory maximum when warranted by the facts in any case, regardless of inclusion in or omission from this section. The penalty calculation worksheet shown in the table in paragraph (1) of this subsection lists the typical penalty amounts for certain violators, the circumstances justifying enhancements of a penalty, and the circumstances justifying a reduction in a penalty.

(h) Confidentiality. If a gas supply chain facility operator or a gas pipeline facility operator filing information required by this section contends certain information is confidential by law, the operator shall file a complete version of the required information and a version for public inspection in which the confidential information has been redacted. If the Commission receives a request under the Texas Public Information Act (PIA), Texas Government Code, Chapter 552, for materials that have been designated confidential, the Commission will notify the filer of the request in accordance with the provisions of the PIA so that the filer can take action with the Office of the Attorney General to oppose release of the materials.


Source Note: The provisions of this §3.66 adopted to be effective September 19, 2022, 47 TexReg 5781

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