| (a) Definitions. The following terms, when used in
this section, shall have the following meanings, unless the context
clearly indicates otherwise.
(1) Affected person--A person who, as a result of actions
proposed in an application for a storage facility permit or amendment
or modification of an existing storage facility permit, has suffered
or may suffer actual injury or economic damage other than as a member
of the general public.
(2) Cavern--The storage space created in a salt formation
by solution mining.
(3) Commission--The Railroad Commission of Texas.
(4) Emergency shutdown valve--A valve that automatically
closes to isolate a gas storage wellhead from surface piping in the
event of specified conditions that, if uncontrolled, may cause an
emergency.
(5) Fresh water--Water having bacteriological, physical,
and chemical properties that make it suitable and feasible for beneficial
use for any lawful purpose. For purposes of this section, brine associated
with the creation, operation, and maintenance of an underground gas
storage facility is not considered fresh water.
(6) Gas storage well or storage well--A well, including
the storage wellhead, casing, tubing, borehole, and cavern used for
the injection or withdrawal of natural gas or any other gaseous substance
into or out of an underground gas storage facility.
(7) Leak or fire detector--A device capable of detecting
by chemical or physical means the presence of stored product gas or
the escape of stored product gas or the presence of flame or heat
of a fire.
(8) Operator--The person recognized by the Commission
as being responsible for the physical operation of an underground
gas storage facility, or such person's authorized representative.
(9) Owner--The person recognized by the Commission
as owning all or part of an underground gas storage facility, or such
person's authorized representative.
(10) Person--A natural person, corporation, organization,
government, governmental subdivision or agency, business trust, estate,
trust, partnership, association, or any other legal entity.
(11) Pollution--Alteration of the physical, chemical,
or biological quality of, or the contamination of, water that makes
it harmful, detrimental, or injurious to humans, animal life, vegetation,
or property, or to public health, safety, or welfare, or impairs the
usefulness or the public enjoyment of the water for any lawful or
reasonable purpose.
(12) Storage wellhead--Equipment installed at the surface
of the wellbore, including the casinghead and tubing head, spools,
block or wing valves, and instrument flanges. Spool pieces must have
a length less than six feet to be considered a part of the storage
wellhead.
(13) Surface piping--Any pipe within a storage facility
that is directly connected to a storage well, outboard of the wellhead
emergency shutdown valve and used to transport gas, brine, or fresh
water to or from a storage well whether such pipe is above or below
ground level.
(14) Underground gas storage facility or storage facility--A
facility used for the storage of natural gas or any other gaseous
substance in an underground salt formation, including surface and
subsurface rights, appurtenances, and improvements necessary for the
operation of the facility.
(b) Permit required.
(1) General. No person may create, operate, or maintain
an underground gas storage facility without obtaining a permit from
the Commission. A permit issued by the Commission for such activities
before the effective date of this section shall continue in effect
until revoked, modified, or suspended by the Commission, or until
it expires according to its terms. The provisions of this section
apply to permits to conduct gas storage operations issued prior to
the effective date of this section, except as otherwise specifically
provided.
(2) Conflict with other requirements. If a provision
of this section conflicts with any provision or term of a Commission
order, field rule, or permit, the provision of such order, field rule,
or permit shall control.
(c) Application.
(1) Information required. An application for a permit
to create, operate, or maintain an underground gas storage facility
shall be filed with the Commission by the owner or operator, or the
proposed owner or operator, on the prescribed form. The application
shall contain the information necessary to demonstrate compliance
with applicable state laws and Commission regulations.
(2) Permit amendment. An application for amendment
of an existing underground gas storage facility permit shall be filed
with the Commission:
(A) prior to any planned enlargement of a cavern in
excess of the permitted cavern capacity by solution mining;
(B) when required in accordance with paragraph (3)
of this subsection;
(C) prior to the drilling of any additional storage
wells;
(D) prior to an increase in the maximum operating pressure
above the permitted pressure; or
(E) any time that conditions at the storage facility
deviate materially from the conditions specified in the permit or
permit application.
(3) Increase in capacity. The owner or operator of
a storage facility shall notify the Commission if information indicates
that the capacity of a cavern exceeds the permitted cavern capacity
by 20% or more. Such notification shall be made in writing to the
Commission within 10 days of the date that the owner or operator of
the storage facility knows or has reason to know that the cavern capacity
exceeds the permitted capacity by 20% or more. The notification shall
include a description of the information that indicates that the permitted
cavern capacity has been exceeded, and an estimate of the current
cavern capacity. Upon receipt of such information, the Commission
or its designee may take any one or more of the following actions:
(A) require the permittee to comply with a compliance
schedule that lists measures to be taken to ensure that conditions
at the storage facility do not pose a danger to life or property,
and that no waste of gas, uncontrolled escape of gas, or pollution
of fresh water occurs;
(B) require the permittee to file an application to
amend the underground gas storage facility permit;
(C) modify, cancel, or suspend the permit as provided
in subsection (f) of this section; or
(D) take enforcement action.
(d) Standards for underground storage zone.
(1) Geologic, construction, and operating performance.
An underground gas storage facility may be created, operated, or maintained
only in an impermeable salt formation in a manner that will prevent
waste of the stored gases, uncontrolled escape of gases, pollution
of fresh water, and danger to life or property. This section does
not authorize storage of liquid or liquefied hydrocarbons in an underground
salt formation. A permit under §3.95 of this title (relating
to Underground Storage of Liquid or Liquefied Hydrocarbons in Salt
Formations) is required to convert from storage of natural gas to
storage of liquid or liquefied hydrocarbons in an underground salt
formation.
(2) Fresh water strata. The applicant must submit with
the application a letter from the Groundwater Advisory Unit of the
Oil and Gas Division stating the depth to which fresh water strata
occur at each storage facility.
(e) Notice and hearing.
(1) Notice requirements. The applicant shall, no later
than the date the application is mailed to or filed with the Commission,
give notice of an application for a permit to create, operate, or
maintain an underground hydrocarbon storage facility, or to amend
an existing storage facility permit, by mailing or delivering a copy
of the application form to:
(A) the surface owner of the tract where the storage
facility is located or is proposed to be located;
(B) the surface owner of each tract adjoining the tract
where the storage facility is located or is proposed to be located;
(C) each oil, gas, or salt leaseholder, other than
the applicant, of the tract on which the storage facility is located
or is proposed to be located;
(D) each oil, gas, or salt leaseholder of any tract
adjoining the tract on which the storage facility is located or is
proposed to be located;
(E) the county clerk of the county or counties where
the storage facility is located or is proposed to be located; and
(F) if the storage facility is located or is proposed
to be located within city limits, the city clerk or other appropriate
city official.
Cont'd... |
