| (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 an application for an underground gas storage project permit
or an amendment or modification of an existing underground gas storage
project permit, has suffered or may suffer actual injury or economic
damage other than as a member of the general public.
(2) Commission--The Railroad Commission of Texas.
(3) Fresh water--Water having bacteriological, physical,
and chemical properties that make it suitable and feasible for beneficial
use for any lawful purpose.
(4) Leak detector--A device capable of detecting by
chemical or physical means the presence of hydrocarbon vapor or the
escape of vapor through a small opening.
(5) Gas storage or underground gas storage--Storage
of natural gas or other gaseous material in a productive or depleted
reservoir, exclusive of gas injection for enhanced recovery.
(6) Gas storage project--All surface and subsurface
rights, appurtenances, and improvements necessary for conducting underground
gas storage operations in a gas storage reservoir.
(7) Gas storage well or storage well--A well used to
inject or withdraw natural gas or other gaseous material stored in
a productive or depleted reservoir, exclusive of a well used to inject
gas for enhanced recovery.
(8) Operator--The person recognized by the commission
as being responsible for the physical operation of a gas storage project,
or such person's authorized representative.
(9) Person--A natural person, corporation, organization,
government, governmental subdivision or agency, business trust, estate,
trust, partnership, association, or any other legal entity.
(10) 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.
(11) Productive or depleted reservoir--A subsurface
sand, stratum, or formation that is productive of, or has previously
produced, oil, gas, or geothermal resources.
(b) Permit required.
(1) General. No person may operate a gas storage project
without obtaining a permit from the commission. A permit issued by
the commission for operation of a gas storage project 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 gas storage projects
permitted 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. An application to operate a gas storage
project shall be filed with the commission by the owner or operator
or proposed owner or operator. The application shall include the following:
(1) compliance with safety requirements--information
demonstrating compliance with the provisions of subsection (i) of
this section;
(2) request for reservoir designation--a request for
designation of a productive or depleted reservoir as a gas storage
reservoir, supported by the following:
(A) information demonstrating that the reservoir is
suitable for gas storage; and
(B) information demonstrating the amount of recoverable
native gas remaining in the reservoir;
(3) compliance with standards for injection wells--information
demonstrating compliance with the provisions of subsections (j), (k),
and (l) of this section for each gas injection well. The requirements
of this paragraph do not apply to wells used for gas withdrawal only;
(4) water protection letter--a letter from the Groundwater
Advisory Unit of the Oil and Gas Division stating the depth to which
fresh water strata occur in the project area;
(5) public interest--a request that the commission
issue an order containing the findings described in the Texas Natural
Resources Code, §91.174(a), if such an order is desired by the
applicant;
(6) fees--the fees required under §3.78 of this
title (relating to Fees and Financial Security Requirements) for each
gas storage well in the storage project that will be used for injection.
(d) Permit amendment. An application for amendment
of an existing gas storage project permit shall be filed with the
commission as specified in paragraphs (1) - (4) of this subsection.
(1) Expansion of reservoir. An application for permit
amendment shall be filed prior to expanding the areal extent of the
gas storage reservoir.
(2) Increase in pressure. An application for permit
amendment shall be filed prior to increasing the gas storage reservoir
pressure above the maximum permitted pressure.
(3) Adding storage wells. An application for permit
amendment shall be filed prior to adding additional gas storage wells
to the project.
(4) Material deviation. An application for permit amendment
shall be filed at any time that conditions at the storage project
deviate materially from the conditions specified in the permit or
permit application.
(e) Standards for storage reservoir. A gas storage
project shall be operated only in a productive or depleted reservoir
in a manner that will prevent waste of oil, gas, or geothermal resources,
uncontrolled escape of gases, pollution of fresh water, and danger
to life or property.
(f) Notice and hearing.
(1) Notice requirements. By no later than the date
the application is mailed to or filed with the commission, the applicant
shall give notice of an application for a permit to operate a gas
storage project, or to amend an existing storage project permit, by
mailing or delivering a copy of the application to:
(A) each mineral interest owner, other than the applicant,
of the proposed gas storage reservoir;
(B) each leaseholder of minerals lying above or below
the proposed gas storage reservoir;
(C) each leaseholder of minerals offsetting the proposed
gas storage reservoir;
(D) each owner or leaseholder of any portion of the
surface overlying the proposed gas storage reservoir;
(E) the clerk of the county or counties where the proposed
gas storage reservoir is located; and
(F) the city clerk or other appropriate city official
where the proposed gas storage reservoir is located within city limits.
(2) Publication of notice. Notice of the application
for an original or amended gas storage project permit, 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 gas storage project is located.
The applicant shall file proof of publication of the notice prior
to any hearing on the application or administrative approval.
(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 the names and addresses of such persons
shall require an examination of 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. An application
for a new gas storage project permit 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.
Cont'd... |
