Texas Register

TITLE 16 ECONOMIC REGULATION
PART 1RAILROAD COMMISSION OF TEXAS
CHAPTER 3OIL AND GAS DIVISION
RULE §3.65Critical Designation of Natural Gas Infrastructure
ISSUE 10/01/2021
ACTION Proposed
Preamble Texas Admin Code Rule

(a)Definitions.

  (1)Energy emergency--Any event that results in or has the potential to result in load shed required by an independent organization certified under Texas Utilities Code, §39.151 resulting in an electric outage.

  (2)Weather emergency--Any weather condition that results in or has the potential to result in an energy emergency as defined in this section.

  (3)Critical customer information--The critical customer and critical gas supply information specified on Commission Table CCI such as facility identification information, facility location information, emergency contact information, gas production and/or handling information, electrical power and backup power capabilities, and electric utility information.

(b)Critical designation criteria. The following facilities are designated critical gas suppliers and critical customers of the entities described by Texas Utilities Code, §38.074(b)(1) during an energy emergency:

  (1)wells producing gas or casinghead gas;

  (2)gas processing plants;

  (3)natural gas pipelines and pipeline facilities including compressor stations;

  (4)local distribution company pipelines and pipeline facilities including compressor stations;

  (5)natural gas storage facilities;

  (6)natural gas liquids transportation and storage facilities;

  (7)saltwater disposal facilities including saltwater disposal pipelines; and

  (8)other facilities under the jurisdiction of the Commission the operation of which is necessary to operate any of the facilities in paragraphs (1) through (7) of this subsection.

(c)Acknowledgment of critical status. Except as provided by subsection (d) of this section, an operator of a facility designated as critical under subsection (b) of this section shall acknowledge the facility's critical status by filing Form CI-D or submitting an electronic acknowledgment as provided in this subsection.

  (1)Until an electronic system is established, the acknowledgment shall be made on Form CI-D. In the year 2022, the Form CI-D acknowledgment shall be filed bi-annually by January 15, 2022 and September 1, 2022. Beginning in 2023, the Form CI-D acknowledgment shall be filed bi-annually by March 1 and September 1 of each year.

  (2)When the electronic system is established, the Form CI-D acknowledgment shall be submitted through the electronic system.

(d)Critical designation exception. A facility listed in subsection (b) of this section is designated as a critical gas supplier unless the facility's operator asserts the facility is not prepared to operate during a weather emergency. An operator shall submit a Form CI-X exception application that identifies each such facility. The Form CI-X shall be accompanied by a $150 exception application fee.

  (1)Until an electronic system is established, the exception application shall be filed on Form CI-X. In the year 2022, the Form CI-X exception application shall be filed bi-annually by January 15, 2022 and September 1, 2022. Beginning in 2023 the Form CI-X exception application shall be filed bi-annually by March 1 and September 1 of each year.

  (2)When the electronic system is established, the Form CI-X exception application shall be submitted through the electronic system.

  (3)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.

(e)Providing critical customer information. Unless a facility is identified on an approved Form CI-X exception application under subsection (d) of this section, the facility's operator shall provide the critical customer information to the entities described in Texas Utilities Code §38.074(b)(1). The critical customer information shall be provided in accordance with 16 Tex. Admin. Code §25.52 (relating to Reliability and Continuity of Service). The operator shall certify on its Form CI-D that it has provided, or will within five business days provide, the critical customer information to the electric entity in a format usable to the electric entity.

(f)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 (c) and (d) of this section. If the facility has an exception under subsection (d) 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 (d) of this section.

(g)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).

The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.

Filed with the Office of the Secretary of State on September 14, 2021

TRD-202103643

Haley Cochran

Rules Attorney, Office of General Counsel

Railroad Commission of Texas

Earliest possible date of adoption: October 31, 2021

For further information, please call: (512) 475-1295



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