| (a) Applicability.
(1) In accordance with Texas Natural Resources Code §86.044,
this section applies to a gas supply chain facility that is:
(A) included on the electricity supply chain map created
under Texas Utilities Code §38.203; and
(B) designated as critical in §3.65 of this title,
relating to Critical Designation of Natural Gas Infrastructure.
(2) In accordance with Texas Utilities Code §121.2015,
this section applies to a gas pipeline facility that:
(A) directly serves a natural gas electric generation
facility operating solely to provide power to the electric grid for
the Electric Reliability Council of Texas (ERCOT) power region or
for the ERCOT power region and an adjacent power region; and
(B) is included on the electricity supply chain map
created under Texas Utilities Code §38.203.
(b) Definitions. In this section, the following definitions
apply.
(1) Critical component--Any component, including components
on equipment rented or leased from a third party, that is susceptible
to weather-related interruptions, such as those caused by freezing
temperatures, freezing precipitation, or extreme heat, the occurrence
of which is likely to significantly hinder sustained operation of
the gas pipeline or gas supply chain facility.
(2) Gas pipeline facility--A pipeline or pipeline facility
regulated by the Commission under Texas Utilities Code Chapter 121.
(3) Gas supply chain facility--A facility that is:
(A) used for producing, treating, processing, pressurizing,
storing, or transporting natural gas, as well as handling waste produced;
(B) not primarily used to support liquefied natural
gas pretreatment, liquefaction, or regasification facilities in the
business of exporting or importing liquefied natural gas to or from
foreign countries;
(C) otherwise regulated by the Commission under Subtitle
B of Title 3, Texas Natural Resources Code; and
(D) not regulated by the Commission under Texas Utilities
Code Chapter 121.
(4) Major weather-related forced stoppage--A weather-related
forced stoppage during a weather emergency that is the result of the
deliberate disregard of this section or that results in:
(A) a loss of production exceeding 5,000 Mcf of natural
gas per day per oil lease;
(B) a loss of production exceeding 5,000 Mcf of natural
gas per day per gas well;
(C) a loss of gas processing capacity exceeding 200
MMcf per day;
(D) a loss of storage withdrawal capacity exceeding
200 MMcf per day; or
(E) a loss of transportation capacity exceeding 200
MMcf per day.
(5) Repeated weather-related forced stoppage--When
a gas supply chain facility or a gas pipeline facility has more than
one major weather-related forced stoppage or weather-related forced
stoppage violation within a 12-month period.
(6) Sustained operation--Safe operation of a gas supply
chain facility or a gas pipeline facility such that the facility does
not experience a major weather-related forced stoppage or weather-related
forced stoppage in production, treating, processing, storage, or transportation
of natural gas.
(7) Weather emergency--Weather conditions such as freezing
temperatures, freezing precipitation, or extreme heat in the facility's
county or counties that result in an energy emergency as defined by §3.65
of this title. A weather emergency does not include weather conditions
that cannot be reasonably mitigated such as tornadoes, floods, or
hurricanes.
(8) Weatherization--The iterative cycle of preparedness
for sustained operation during weather emergencies that includes:
(A) correcting critical component failures that occurred
during previous weather emergencies;
(B) installing equipment to mitigate weather-related
operational risks; and
(C) internal inspection, self-assessment, and implementation
of processes to identify, test, and protect critical components.
(9) Weather-related forced stoppage--An unanticipated
and/or unplanned outage in the production, treating, processing, storage,
or transportation of natural gas that is caused by weather conditions
such as freezing temperatures, freezing precipitation, or extreme
heat and occurs during a weather emergency.
(c) Weather emergency preparedness standards for a
gas supply chain facility or a gas pipeline facility.
(1) By December 1st of each year, a gas supply chain
facility operator or a gas pipeline facility operator shall implement
weather emergency preparation measures intended to:
(A) ensure the sustained operation of a gas supply
chain facility or a gas pipeline facility during a weather emergency;
and
(B) correct known major weather-related forced stoppages
and weather-related forced stoppages that prevented sustained operation
of a facility because of previous weather emergencies.
(2) Weather emergency preparation measures required
by paragraph (1) of this subsection shall include:
(A) providing training on weather emergency preparations
and operations to relevant operational personnel;
(B) consideration of the risk to the health and safety
of employees and protection of the environment; and
(C) weatherization of the facility using methods a
reasonably prudent operator would take given the type of facility,
the age of the facility, the facility's critical components, the facility's
location, and weather data for the facility's county or counties such
as data developed for the Commission by the state climatologist. The
Commission will periodically publish weatherization practices and
may include weather data developed for the Commission by the state
climatologist.
(d) Weather Emergency Readiness Attestation. By December
1 of each year, an operator of a gas supply chain facility or a gas
pipeline facility shall submit to the Commission a Weather Emergency
Readiness Attestation that:
(1) is signed by an authorized representative of the
operator entity attesting, under penalties prescribed in Texas Natural
Resources Code §91.143, that:
(A) the operator implemented the required weather emergency
preparation measures described in subsection (c) of this section;
(B) the information and statements made in the Weather
Emergency Readiness Attestation are true, correct, and complete to
the best of the attestor's knowledge;
(C) the representative is authorized to sign the attestation
on behalf of the operator entity; and
(D) the Weather Emergency Readiness Attestation was
prepared by the authorized representative or under the authorized
representative's supervision and direction;
(2) includes an attachment describing all activities
engaged in by the operator to implement the requirements of subsection
(c) of this section, including a description of the weatherization
methods utilized by the operator to weatherize each type of facility;
and
(3) for the Weather Emergency Readiness Attestation
due December 1, 2022, also describes corrective actions taken to mitigate
known major weather-related forced stoppages and weather-related forced
stoppages that prevented sustained operation of a facility because
of previous weather emergencies.
(e) Inspection of gas supply chain facilities and gas
pipeline facilities. Beginning December 1, 2022, the Commission will
inspect facilities to ensure compliance with this section and will
prioritize inspections of oil leases and gas wells producing greater
than 5,000 Mcf per day of natural gas and facilities storing, processing,
or transporting greater than 200 MMcf per day of natural gas. The
Commission will further prioritize inspections in descending order
in accordance with a facility's production volume or storage, processing,
or transportation capacity.
(f) Notifications and other requirements for gas supply
chain facilities and gas pipeline facilities.
(1) An operator of a gas supply chain facility or a
gas pipeline facility that experiences either of the following during
a weather emergency shall notify the Commission immediately through
the Critical Infrastructure Division's notification portal if the
stoppage is not resolved within 24 hours of discovery of the stoppage:
(A) a weather-related forced stoppage; or
(B) a forced stoppage caused by a loss of electricity.
(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 Cont'd... |
