(a)Definitions.
(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.
(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 [
15] Mcf/day;
(B)oil leases producing casinghead gas in excess of
500 [50] Mcf/day;
(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
facilities; and
(H)saltwater disposal facilities including saltwater
disposal pipelines.
(2)Critical Customer. A critical customer is a critical
gas supplier for whom the delivery of electricity from an electric
entity is essential to the ability of such gas supplier to operate.
A critical customer is required to provide critical customer information
pursuant to subsection (f) [(g)] 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 [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
Commission.
(c)Request for critical designation if not designated
critical in subsection (b) of this section.
[(1)]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. If approved, the facility
shall submit Form CI-D.
[(2)A facility that is not designated
critical under subsection (b) of this section but that is included
on the electricity supply chain map produced by the Texas Electricity
Supply Chain Security and Mapping Committee shall write to the Commission
to apply to be designated critical, and after approval, shall submit
Form CI-D].
(d)Acknowledgment of critical status. Except as provided
by subsection (e) [(f)] 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)Facilities not eligible for an
exception. Because of their contribution to the natural gas supply
chain, the following facilities designated critical under subsection
(b) of this section are not eligible for an exception under subsection
(f) of this section:]
[(1)a facility included on the electricity supply
chain map produced by the Texas Electricity Supply Chain Security
and Mapping Committee;]
[(2)gas wells or oil leases producing gas or casinghead
gas in excess of 250 Mcf/day;]
[(3)gas processing plants;]
[(4)natural gas pipelines or pipeline facilities that
directly serve local distribution companies or electric generation;]
[(5)local distribution company pipelines or pipeline
facilities;]
[(6)underground natural gas storage facilities;]
[(7)natural gas liquids storage and transportation
facilities; and]
[(8)a saltwater disposal facility, including a saltwater
disposal pipeline, that supports a facility listed in paragraphs (1)
through (7) of this subsection.]
(e)[(f)] 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 [
other than those identified in subsection (e) of this section]
may apply for an exception. An applicant shall demonstrate with objective
evidence a reasonable basis and justification in support of the application[
, such as all of the gas produced at a facility is for on-site consumption,
or the facility does not otherwise provide gas for third-party use].
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 at the facility
is consumed outside of this state;
(C)The facility does not provide gas for third-party
use; or
(D)The electric entity providing 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)[(2)] 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)[(g)] 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) [
(f)] 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)[(h)] 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)[(i)] 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) [(f)] of this section. If the facility
has an exception under subsection (e) [(f)]
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) [(f)] of this section.
(i)[(j)] 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 August 30, 2022
TRD-202203325 Haley Cochran
Rules Attorney, Office of General Counsel
Railroad Commission of Texas
Earliest possible date of adoption: October 16, 2022
For further information, please
call: (512) 475-1295
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