(1) In this section, the term "energy emergency" means
any event that results in firm load shed or has the potential to result
in firm load shed required by the reliability coordinator of a power
region in Texas. An event that has the "potential to result in firm
load shed" is when the reliability coordinator of a power region in
Texas has issued an Energy Emergency Alert Level 1 or 2.
(2) In this section, the term "critical customer information"
means the information required on Commission Form CI-D and any attachments.
(3) In this section, "any volume of gas indicated in
Mcf/day" means the average daily production from the well's six most
recently filed monthly production reports. Wells without six months
of production reports shall average the production from the well's
production reports on file with the Commission or use the production
volume from the well's initial potential test or deliverability test
if the well has not yet filed a production report.
(4) In this section, the term "electricity supply chain
map" means the electricity supply chain map produced by the Texas
Electricity Supply Chain Security and Mapping Committee.
(5) In this section, the term "Director" means the
Director of the Critical Infrastructure Division or the director's
(6) In this section, the term "EOR project" means an
enhanced oil recovery project as defined in §3.50(c)(6) of this
title (relating to Enhanced Oil Recovery Projects-Approval and Certification
for Tax Incentive) with at least one injection well permitted under §3.46
of this title (relating to Fluid Injection into Productive Reservoirs)
whether or not the project has received Commission approval or certification
under §3.50 of this title.
(b) Critical designation criteria. The following facilities
are designated critical during an energy emergency:
(1) Critical Gas Supplier. The following facilities
are designated a critical gas supplier:
(A) gas wells producing gas in excess of 250 Mcf/day;
(B) oil leases producing casinghead gas in excess of
500 Mcf/day, except for EOR projects provided the EOR project consumes
more energy than it produces calculated by comparing the amount of
electricity used to the amount of gas produced both in Million British
Thermal Units (MMBTU);
(C) gas processing plants;
(D) natural gas pipelines and pipeline facilities including
associated compressor stations and control centers;
(E) local distribution company pipelines and pipeline
facilities including associated compressor stations and control centers;
(F) underground natural gas storage facilities;
(G) natural gas liquids transportation and storage
(H) saltwater disposal facilities including saltwater
(2) Critical Customer. A critical customer is a critical
gas supplier that requires electricity delivered by an electric entity
to operate. A critical customer is required to provide critical customer
information pursuant to subsection (f) of this section to the electric
entities described in §25.52(h) of this title (relating to Reliability
and Continuity of Service) and Texas Utilities Code §38.074(b)(1)
so that those electric entities may prioritize the facilities in accordance
with Texas Utilities Code §38.074(b)(2) and (b)(3). Priority
for load shed purposes during an energy emergency is described by §25.52(h)(2)
of this title and any guidance issued thereunder by the Public Utility
(c) Request for critical designation if not designated
critical in subsection (b) of this section. A facility that is not
designated critical under subsection (b) of this section may write
to the Commission to apply to be designated critical if the facility's
operation is required in order for another facility designated critical
to operate. The applicant shall include objective evidence that the
facility's operation is required for another facility designated critical
in subsection (b) of this section to operate. The director will review
the application and if the application is approved, the facility shall
submit Form CI-D. If the request is denied, the applicant may request
(d) Acknowledgment of critical status. Except as provided
by subsection (e) of this section, an operator of a facility designated
as critical under subsection (b) or (c) of this section shall acknowledge
the facility's critical status by filing Form CI-D as provided in
this subsection. In the year 2022, the Form CI-D acknowledgment shall
be filed bi-annually by January 15, 2022, and either September 1,
2022, or 30 days from the date the map is produced by the Texas Electricity
Supply Chain Security and Mapping Committee, whichever is later. Beginning
in 2023, the Form CI-D acknowledgment shall be filed bi-annually by
March 1 and September 1 of each year.
(e) Critical designation exception.
(1) A facility listed in subsection (b) of this section
that is not included on the electricity supply chain map produced
by the Texas Electricity Supply Chain Security and Mapping Committee
may apply for an exception. An applicant shall demonstrate with objective
evidence a reasonable basis and justification in support of the application.
The Director of the Critical Infrastructure Division will administratively
approve or deny a request for an exception. If the request is denied,
the Division will notify the applicant and the applicant may request
a hearing to challenge the denial. The party requesting the hearing
shall have the burden of proof.
(2) Examples of a reasonable basis and justification
for which an exception may be granted include, but are not limited
to, the following:
(A) All of the natural gas produced at the facility
is consumed on site;
(B) All of the natural gas produced, processed, or
delivered by the facility is consumed outside of this state;
(C) The facility does not provide gas for third-party
(D) For saltwater disposal facilities and saltwater
disposal pipelines, the facility or pipeline does not support a facility
designated critical in subsection (b)(1)(A)-(G) of this section; or
(E) The electric entity delivering electricity to the
facility has provided notice that the facility's request for critical
designation status was rejected, denied, or otherwise disapproved
by the electric utility; provided, however, that the electric utility
communicated its determination in writing, and the decision was for
reasons other than the lack of correct identifying information or
other administrative reasons.
(3) An applicant for exception shall submit a Form
CI-X exception application that identifies each facility for which
an exception is requested. The Form CI-X shall be accompanied by an
exception application fee. The amount of the fee is $150 as established
in Chapter 81, Texas Natural Resources Code.
(A) In the year 2022, the Form CI-X exception application
shall be filed bi-annually by January 15, 2022, and either September
1, 2022, or 30 days from the date the map is produced by the Texas
Electricity Supply Chain Security and Mapping Committee, whichever
is later. Beginning in 2023, the Form CI-X exception application shall
be filed bi-annually by March 1 and September 1 of each year.
(B) Once an operator has an approved Form CI-X on file
with the Commission, the operator is not required to pay the $150
exception application fee when the operator updates the facilities
identified on its Form CI-X.
(f) Providing critical customer information. A critical
customer shall provide the critical customer information to the electric
entities described in §25.52 of this title and Texas Utilities
Code §38.074(b)(1) unless the critical customer is granted an
exception under subsection (e) of this section. The critical customer
information shall be provided in accordance with §25.52 of this
title. The operator shall certify on its Form CI-D that it has provided
the critical customer information to its electric entity.
(g) Confidentiality of information filed pursuant to
this section. A person filing information with the Commission that
the person contends is confidential by law shall notify the Commission
on the applicable form. 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.
(h) Exceptions not transferable. Exceptions are not
transferable upon a change of operatorship. When a facility is transferred,
both the transferor operator and the transferee operator shall ensure
the transfer is reflected on each operator's Form CI-D or Form CI-X
when the applicable form update is submitted in accordance with the
bi-annual filing timelines in subsections (d) and (e) of this section.
If the facility has an exception under subsection (e) of this section,
the exception shall remain in effect until the next bi-annual filing
deadline. If the transferee operator seeks to continue the exception
beyond that time period, the transferee operator shall indicate the
transferred facility on the Form CI-X pursuant to subsection (e) of
(i) Failure to file or provide required information.
An operator who fails to comply with this section may be subject to
penalties under §3.107 of this title (relating to Penalty Guidelines
for Oil and Gas Violations).