| (a) Each operator of a pipeline or gathering system,
other than an operator excluded under §8.1(b)(4) of this title
(relating to General Applicability and Standards), subject to the
jurisdiction of the Commission, shall obtain a pipeline permit, to
be renewed annually, from the Commission as provided in this rule.
Production or flow lines that are subject to §8.1(a)(1)(B) and
(a)(1)(D) of this title must comply with this section. All other production
or flow lines as defined in this subsection are exempt from complying
with this section. A production or flow line is piping used for production
operations that generally occur upstream of gathering or other pipeline
facilities. For the purposes of this subsection, piping used in "production
operations" means piping used for production and preparation for transportation
or delivery of hydrocarbon gas and/or liquids, and includes the following
processes:
(1) extraction and recovery, lifting, stabilization,
treatment, separation, production processing, storage, and measurement;
and
(2) associated production compression, gas lift, gas
injection, or fuel gas supply.
(b) To obtain a new pipeline permit or to amend a permit
because of a change of classification, an operator shall file an application
for a pipeline permit on the Commission's online permitting system.
The operator shall include or attach the following documentation and
information:
(1) the contact information for the individual who
can respond to any questions concerning the pipeline's construction,
operation or maintenance;
(2) the requested classification and purpose of the
pipeline or pipeline system as a common carrier, a gas utility or
a private line;
(3) a sworn statement from the pipeline applicant providing
the operator's factual basis supporting the classification and purpose
being sought for the pipeline, including, if applicable, an attestation
to the applicant's knowledge of the eminent domain provisions in Texas
Property Code, Chapter 21, and the Texas Landowner's Bill of Rights
as published by the Office of the Attorney General of Texas; and
(4) documentation to provide support for the classification
and purpose being sought for the pipeline, if applicable; and
(5) any other information requested by the Commission.
(c) To renew an existing permit, to amend an existing
permit for any reason other than a change in classification, or to
cancel an existing permit, an operator shall file an application for
a pipeline permit on the Commission's online filing system. The operator
shall include or attach:
(1) the contact information for the individual who
can respond to any questions concerning the pipeline's construction,
operation, or maintenance; change in operator or ownership; or other
change including operator cessation of pipeline operation;
(2) a statement from the pipeline operator confirming
the current classification and purpose of the pipeline or pipeline
system as a common carrier, a gas utility or a private line, if applicable;
and
(3) any other information requested by the Commission.
(d) Upon receipt of a complete permit application,
the Commission has 30 calendar days to issue, amend, or deny the pipeline
permit as filed. If the Commission determines that the application
is incomplete, the Commission shall promptly notify the applicant
of the deficiencies and specify the additional information necessary
to complete the application. Upon receipt of a revised application,
the Commission has 30 calendar days to determine if the application
is complete and issue, amend, or deny the pipeline permit as filed.
(e) If the Commission is satisfied from the application
and the documentation and information provided in support thereof,
and its own review, that the proposed line is, or will be laid, equipped,
managed and operated in accordance with the laws of the state and
the rules and regulations of the Commission, the permit may be granted.
The pipeline permit, if granted, shall classify the pipeline as a
common carrier, a gas utility, or a private pipeline based upon the
information and documentation submitted by the applicant and the Commission's
review of the application.
(f) This rule applies to applications made for new
pipeline permits and to amendments, renewals, and cancellations of
existing pipeline permits. The classification of a pipeline under
this rule applies to extensions, replacements, and relocations of
that pipeline.
(g) The Commission may delegate the authority to administratively
issue pipeline permits.
(h) The pipeline permit, if granted, shall be revocable
at any time after a hearing, held after 10 days' notice, if the Commission
finds that the pipeline is not being operated in accordance with the
laws of the state and the rules and regulations of the Commission
including if the permit is not renewed annually as required in subsection
(a) of this section.
(i) Each pipeline operator shall pay an annual fee
based on the pipeline operator's permitted mileage of pipeline by
August 31, 2018, for the initial year that the requirement is in effect,
and by April 1 for each subsequent year.
(1) For purposes of calculating the mileage fee, the
Commission will categorize pipelines into two groups.
(A) Group A includes transmission and gathering pipelines
that are required by Commission rules to have a valid T-4 permit to
operate and are subject to the regulations in 49 CFR Parts 192 and
195, such as natural gas transmission and storage pipelines, natural
gas gathering pipelines, hazardous liquids transmission and storage
pipelines, and hazardous liquids gathering pipelines.
(B) Group B includes pipelines that are required by
Commission rules to have a valid T-4 permit to operate but are not
subject to the regulations in 49 CFR Parts 192 and 195 such as gathering
pipelines. Group B also includes gathering pipelines required to comply
with §8.110 of this title (relating to Gathering Pipelines).
(2) An operator of a Group A pipeline shall pay an
annual fee of $20 per mile of pipeline based on the number of miles
permitted to that operator as of June 29, 2018, for the initial year
that the requirement is in effect and as of December 31 for each subsequent
year.
(3) An operator of a Group B pipeline shall pay an
annual fee of $10 per mile of pipeline based on the number of miles
permitted to that operator as of June 29, 2018, for the initial year
that the requirement is in effect and as of December 31 for each subsequent
year.
(4) Any pipeline distance that is a fraction of a mile
will be considered as one mile and will be assessed a $20 or $10 fee,
as appropriate.
(5) Fees due to the Commission for mileage transferred
from one operator to another operator pursuant to subsection (o) of
this section will be captured in the next mileage fee to be calculated
on the following December 31 and paid by the new operator.
(j) Beginning October 1, 2018, each pipeline operator
shall pay a $500 permit processing fee for each new permit application
and permit renewal.
(1) From October 1, 2018, to August 31, 2020, the permit
renewal date for a pipeline operator who has an existing, valid permit
in the Commission's online filing system will be the date shown in
the online filing system on June 29, 2018, when the pipeline mileage
is calculated for purposes of paying the mileage fee. A permit renewal
date will not be affected or changed by an operator requesting or
receiving a permit amendment.
(2) Beginning September 1, 2020, operators shall file
their annual renewals as follows:
(A) Companies with names beginning with letters A through
C shall file in February;
(B) Companies with names beginning with letters D through
E shall file in March;
(C) Companies with names beginning with letters F through
L shall file in April;
(D) Companies with names beginning with letters M through
P shall file in May;
(E) Companies with names beginning with letters Q through
T shall file in June; and
(F) Companies with names beginning with letters U through
Z and companies with names beginning with numerical values or other
symbols shall file in July.
(k) Beginning September 1, 2020, operators shall comply
with the following:
(1) If a permit is transferred, in the Commission fiscal
year of the transfer the acquiring operator shall renew that permit
in its designated month pursuant to subsection (j)(2) of this section.
If the acquiring operator receives a transferred permit in a Commission
fiscal year and its renewal month has already passed, the acquiring
operator shall pay the renewal fee upon transfer.
(2) If an operator adds a new permit and pays the new
permit fee, the operator is not required to pay the renewal fee for
that permit in the same Commission fiscal year.
(3) If an operator adds a new permit after its renewal
month has passed, the new permit shall be renewed the following Commission
fiscal year in the operator's designated month pursuant to subsection
(j)(2) of this section.
(l) A pipeline operator who fails to renew a permit
on or before the renewal deadline which is the last day of the operator's
required filing month as specified in subsection (j) of this section
shall pay a late-filing fee as follows:
(1) $250, if the renewal application is received within
30 calendar days after the renewal deadline date;
(2) $500, if the renewal application is received more
than 30 calendar days and no more than 60 calendar days after the
renewal deadline date; and
(3) $700, if the renewal application is received more
than 60 calendar days after the renewal deadline date.
(4) If the renewal application is not received within
90 calendar days of the renewal deadline date, the Commission may
assess a penalty and/or revoke the operator's permit in accordance
with subsection (h) of this section.
(m) A pipeline operator with a total mileage of 50
miles or less of pipeline who fails to pay the annual mileage fee
as specified in subsection (i) of this section shall pay a late-filing
fee as follows:
(1) $125, if the fee is received within 30 calendar
days of April 1;
(2) $250, if the fee is received more than 30 calendar
days and no more than 60 calendar days after April 1; and
(3) $350, if the fee is received more than 60 calendar
days after April 1.
(4) If the fee is not received within 90 calendar days
of April 1, the Commission may assess a penalty and/or revoke the
operator's permit in accordance with subsection (h) of this section.
(n) A pipeline operator with a total mileage of more
than 50 miles of pipeline who fails to pay the annual mileage fee
shall pay a late-filing fee as follows:
(1) $250, if the fee is received within 30 calendar
days of August 31 for the initial year that the requirement is in
effect and April 1 for each subsequent year;
(2) $500, if the fee is received more than 30 calendar
days and no more than 60 calendar days after August 31 for the initial
year that the requirement is in effect and April 1 for each subsequent
year; and
(3) $700, if the fee is received more than 60 calendar
days after August 31 for the initial year that the requirement is
in effect and April 1 for each subsequent year.
(4) If the fee is not received within 90 calendar days
of August 31 for the initial year that the requirement is in effect
or April 1 for each subsequent year, the Commission may assess a penalty
and/or revoke the operator's permit in accordance with subsection
(h) of this section.
(o) A pipeline operator who has been issued a permit
and is transferring the pipeline or a portion of the pipeline included
on the permit to another operator shall file a notification of transfer
with the Commission within 30 days following the transfer. An operator
may file a fully executed Form T-4B as a notification of transfer.
The Commission may use a fully executed Form T-4B to remove the pipeline
that is the subject of the transfer from the transferor operator and
assign the mileage to the transferee operator for calculation of the
annual mileage fee. The operator to which the pipeline has been transferred
shall amend its permit to include the pipeline or portion of the pipeline
within 30 days following the transfer or the operator may be subject
to a penalty for operating without a permit pursuant to subsection
(p) of this section.
(p) A pipeline operator who operates a pipeline without
a permit, with an expired permit, or who otherwise fails to comply
with this section, may be assessed a penalty as prescribed in §8.135
of this title (relating to Penalty Guidelines for Pipeline Safety
Violations).
(q) Interstate pipelines are exempt from the fee requirements
of this section.
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