The Railroad Commission of Texas (Commission) adopts amendments in Subchapter A to §8.1 and §8.5, relating to General Applicability and Standards, and Definitions; in Subchapter B to §§8.101, 8.115, 8.125 and 8.135, relating to Pipeline Integrity Assessment and Management Plans for Natural Gas and Hazardous Liquids Pipelines, New Construction Commencement Report, Waiver Procedure, and Penalty Guidelines for Pipeline Safety Violations; in Subchapter C to §§8.201, 8.205, 8.206, 8.209, 8.210, 8.225, 8.230, 8.235, and 8.240, relating to Pipeline Safety and Regulatory Program Fees, Written Procedure for Handling Natural Gas Leak Complaints, Risk-Based Leak Survey Program, Distribution Facilities Replacements, Reports, Plastic Pipe Requirements, School Piping Testing, Natural Gas Pipelines Public Education and Liaison, and Discontinuance of Service, including one change in the title of Subchapter C; in Subchapter D to §8.301 and §8.315 relating to Required Records and Reporting, and Hazardous Liquids and Carbon Dioxide Pipelines or Pipeline Facilities Located Within 1,000 Feet of a Public School Building or Facility. The Commission also adopts new §8.110, relating to Gathering Pipelines, in Subchapter B.

The Commission adopts §§8.110, 8.115, and 8.301 with changes and the remaining rules without changes from the proposed text as published in the October 18, 2019, issue of the Texas Register (44 TexReg 5969). Sections 8.110, 8.115, and 8.301 will be republished. The other rules will not be republished.

The Commission received six comments, three of which were from associations. The Commission received one comment on §8.1. The Texas Oil and Gas Association (TXOGA) recommended clarifying the provisions describing rule applicability. Specifically, the Commission should clarify applicability of Chapter 8 with regard to onshore pipeline and gathering facilities and gathering and production beyond the first point of measurement as described in §8.1(a)(1)(B). Because the Commission did not propose changes on this topic, the Commission declines to adopt the section with the requested changes. However, the Commission will provide clarification regarding §8.1. Section 8.1(a)(1)(A) - (D) lists the pipelines and/or facilities that are subject to the provisions of Chapter 8. Section 8.1(a)(1)(B) describes onshore production/flow lines in Class 2, 3 or 4 locations beginning after the first point of measurement and ending at the beginning of a gathering pipeline; therefore, those lines are under the Commission's pipeline safety jurisdiction. Onshore production/flow lines in Class 1 locations (the majority of production/flow lines) are not listed in §8.1, and therefore are not subject to the Commission's pipeline safety jurisdiction.

The Commission received one comment on §8.101. The Texas Pipeline Association (TPA) requested deletion of deadlines contained in the second and third sentences of subsection (b) because the deadlines have passed and provide no historical value. The Commission disagrees because retaining the deadlines would allow the Commission to require compliance if a Commission inspector discovers an operator did not meet the deadlines.

The Commission received three comments on §8.110. GPA Midstream Association (GPA) said the term "reasonably prudent manner" used in proposed §8.110(b) is too vague. GPA suggested, "Each operator of a gathering pipeline . . . shall take appropriate action to correct a hazardous condition that creates a risk to public safety." GPA also requested that the corrective action and prevention requirements in subsection (e) be tied to the language suggested above. The Commission agrees with both suggestions and adopts §8.110 with changes to subsections (b) and (e) to address these comments. Finally, GPA expressed support for proposed language that extends incident and accident reporting to all gathering lines but requested that the report be required in writing only because telephonic reports are not always necessary in rural locations. The Commission disagrees because the new rule will help the Commission receive data on gathering lines in Class 1 and rural locations. Telephonic reports will ensure the most accurate data. However, as discussed below, the Commission adopts §8.110 with a change to require only the written incident report for certain hazardous liquids gathering lines subject to §8.110.

TXOGA also provided comments on §8.110. TXOGA requested the Commission revise subsection (d) to include a clear definition of "a threat to public safety" and "a complaint related to public safety." The Commission declines to adopt §8.110 with new definitions that were not provided for public comment. TXOGA also expressed opposition to language proposed in subsection (c), which requires non-regulated gas and liquid gathering lines in Class 1 locations and rural areas to follow the same reporting requirements as regulated other gathering lines (i.e., an incident or accident must be telephonically reported within one hour of confirmed discovery). TXOGA states that §8.110(c) is inconsistent with PHMSA requirements.

The Commission notes that the same day it approved proposed amendments to Chapter 8, including new §8.110, PHMSA issued a final rule that incorporated reporting requirements for liquid gathering lines in rural areas. PHMSA's rule (84 FR 52260) does not require telephonic notification within one hour of confirmed discovery for an accident on a liquid gathering line in a rural location. Therefore, the Commission adopts §8.110(c)(2) with a change to require only written notification in lieu of telephonic notification of an accident on a liquid gathering line in a rural location. A change was also made to §8.301 to align with the new PHMSA rule. The Commission declines to make this change for gas gathering lines.

TPA's comment on §8.110 requested that the Commission replace "reasonably prudent manner" with "utilizing processes and technologies that are technically feasible, reasonable, cost-effective, and practicable." The Commission adopts §8.110(b) with a change to incorporate language that is a combination of the language suggested by GPA and TPA.

The Commission received six comments on §8.115. CenterPoint Energy requested narrowing subsection (a)(5) to apply to a new subdivision or construction that results in a new distribution system ID. The Commission agrees and adopts §8.115(a) with the requested change. CenterPoint also requested revisions to Form PS-48 to instruct operators to file the form via email. The Commission agrees and will include such wording in upcoming revisions to the form.

CPS Energy requested clarification on whether the term "pipelines" in §8.115(a) includes services installed on each installation. The Commission confirms this is correct. CPS also asked whether the installation length for joint trench installations is the total length of pipe or the distance from originating point to terminating point of the installation. The Commission confirms that the installation length is the total length of pipe. Third, CPS requested that natural gas distribution and master meter systems be exempt from reporting requirements in subsection (a)(2) and instead fall under subsection (a)(4). The Commission agrees and notes that is the intent of subsection (a)(2), which states, "except as provided in paragraphs (4) and (5)."

Relatedly, an individual requested that the Commission revise (a)(2) to state, "Except as provided by paragraphs (4) and (5)..." instead of only referencing paragraph (4). The Commission agrees and adopts §8.110(a)(2) with that change. The same individual asked whether operators are required to notify the Commission 30 days in advance for extending a gas main 200 feet to reach a new customer. Due to changes adopted in §8.115(a), the answer is no. Notification would only be required in that instance if the extension was considered by the operator to be a new subdivision or a new system ID. The individual also requested a matrix to clarify which pipelines of which length require which type of notification. The Commission will monitor questions related to this amended provision and may add a matrix or an explanation to the Commission's website if warranted.

GPA expressed support for §8.115(a)(7), which exempts rural gathering lines subject to new §8.110 from the construction reporting requirements. The Commission appreciates GPA's support.

TXOGA's comment on §8.115 stated requiring 30-day notification prior to installation of any breakout tank is inconsistent with PHMSA requirements. The proposed language creates situations where operators may need to delay replacement or installation of breakout tanks where an emergency request is not warranted. The Commission agrees and adopts §8.115(a)(3) with changes to address this concern. TXOGA also notes the requirement to notify the Commission of new, relocated, or replacement pipeline 10 miles or more within 60 days is redundant of the requirement in 49 CFR 191.22(c)(1)(ii) and 195.64(c)(1)(ii). The Commission agrees the notification is duplicative of federal requirements and the Commission has generally omitted duplicative filings in Chapter 8 but filing a new construction report with the Commission is still necessary because it affords the Commission the opportunity to receive timely, complete information.

TPA requested removing the phrase "and other facilities" in §8.115(a) because the remainder of the section sufficiently clarifies the reporting requirements for each type of pipeline. The Commission disagrees because the clarification provided in the rule does not account for all facility types. TPA requested revising subsection (a)(3) to include an exemption for temporary breakout tanks. Due to comments from TXOGA and TPA on this topic, the Commission adopts §8.115(a)(3) with changes. TPA also asked that the Commission clarify the meaning of breakout tanks. The Commission declines to clarify the meaning as the term "breakout tank" is defined under 49 CFR Part 195. Any tank meeting this definition would require notification.

The Commission received one comment on §8.210 from TPA. TPA noted gathering operators will not have all of the information needed to fully complete the required forms or reports for incident and accident reporting. TPA requested a change that allows these operators to respond that the required information is not known. The Commission understands that gathering operators may need to mark "unknown†in certain areas of the forms or reports. However, it is the Commission's expectation that gathering operators work to compile accurate data on their lines. The Commission declines to make any changes to the rule based on this comment.

Finally, the Commission received two comments on §8.301. GPA stated that unlike related federal requirements, the proposed language does not distinguish between accidents that require telephonic reporting within one hour of discovery and those that are minor such that they only require a 30-day written report. GPA requested that §8.301 align with federal requirements instead of being more stringent. TPA also requested the Commission align §8.301 with PHMSA requirements. The Commission notes that the existing language is already more stringent than its federal counterpart. The amendments merely reorganize the section for clarification.

TPA expressed support for the clarifying amendments in §8.301 but requested the Commission replace the "and" between CFR references with "or." The Commission agrees and adopts §8.301 with "or." TPA reiterated its comment on §8.210 that gathering operators will not have all the information on their systems to fully report incidents within the one-hour deadline. The Commission understands gathering operators will not always have all pertinent information but encourages these operators to compile more accurate data on their lines.

The adopted amendments include non-substantive clarifications and corrections in the following sections. Amendments in §8.1(d), §8.210, §8.235, §8.301, and §8.315 require an operator to retain copies of United States Department of Transportation (DOT) or certain other filings and provide copies to the Commission only upon request. In §8.5, amendments to the definitions of "applicant," "director," and "division" correct the name of the Commission's division; amendments in §8.201 and §8.209 also correct the division name. Amendments in §8.125(g) and (h) clarify references to the Hearings Division and orders. An amendment in §8.230 corrects a statutory reference. Amendments in §8.301 clarify accident reporting and other existing wording.

The Commission adopts the amendment in §8.1(b) to update the minimum safety standards and to adopt by reference the DOT pipeline safety standards found in 49 CFR Part 192, Transportation of Natural and Other Gas by Pipeline: Minimum Federal Safety Standards. Current subsection (b) adopted the federal pipeline safety standards as of October 31, 2017. The amendment amends the date to January 22, 2019, to capture the federal safety rule amendment summarized in the following paragraph.

Docket No. PHMSA-2014-0098: Amdt. No. 192-124, amended the Federal Pipeline Safety Regulations that govern the use of plastic piping systems in the transportation of natural and other gas. These amendments are necessary to enhance pipeline safety, adopt innovative technologies and best practices, and respond to petitions from stakeholders. The changes include increasing the design factor of polyethylene pipe; increasing the maximum pressure and diameter for Polyamide-11 pipe and components; allowing the use of Polyamide-12 pipe and components; new standards for risers, more stringent standards for plastic fittings and joints; stronger mechanical fitting requirements; the incorporation by reference of certain new or updated consensus standards for pipe, fittings, and other components; the qualification of procedures and personnel for joining plastic pipe; the installation of plastic pipe; and a number of general provisions. The effective date of these amendments is January 22, 2019.

As described in the following paragraphs, other adopted amendments align Commission rules with federal regulations adopted by the Pipeline and Hazardous Materials Safety Administration (PHMSA). PHMSA provides funding for state pipeline safety programs as long as those programs comply with PHMSA's minimum standards. Some of the amendments to Chapter 8 are adopted to ensure Texas complies with those minimum standards and retains PHMSA funding.

Some amendments change the term "natural gas" to "gas" to clarify that propane gas distribution systems must also comply with requirements for distribution systems. These amendments in §8.5 include the definitions for "master metered system," "natural gas or other gas supplier," "person responsible for a school facility," and "school facility". Amendments are also adopted in §8.5 to align the definition of "private school" with the definition provided in the Texas Education Code. Amendments in §8.205 also change the term "natural gas" to "gas", and the title of Subchapter C includes a corresponding change.

The amendments in §8.101(b)(1)(C)(iii) delete the director approval requirement for direct assessment and make other non-substantive corrections. Director approval for direct assessment is no longer needed because there is now a National Association of Corrosion Engineers (NACE) standard for direct assessment which was not available when §8.101 was originally adopted. A related change removes a request to use the direct assessment method from the definition of "applicant" in §8.1(2). A change to §8.101(e) removes outdated language.

Adopted new rule §8.110 implements certain Commission jurisdiction over gathering pipelines in Class 1 locations and rural areas, which was granted by the legislature in House Bill 2982 during the 83rd Legislative Session. Specifically, House Bill 2982 granted the Commission authority to establish safety standards and practices for gas gathering pipelines and facilities in Class 1 locations and hazardous liquids and carbon dioxide gathering pipelines and facilities in rural areas. House Bill 2982 mandated that, for the first two years the statutes were in effect, the Commission could only implement the changes to provide a process for the Commission to investigate an accident, an incident, a threat to public safety, or a complaint, and to require an operator to submit a plan to remediate the same.

As a result, since September 1, 2013, the Commission has been investigating incidents and accidents on Class 1 gathering lines and rural gathering lines and responding to complaints and other threats to the public. However, the Commission did not have regulations requiring reporting during this time. As a direct result of its investigation and response efforts, the Commission has recognized the need to compile more accurate and complete information regarding the incidents and accidents that are occurring on gathering systems located in Class 1 locations and rural areas.

The rules adopted by the Commission pursuant to House Bill 2982 must be based on the risks the transportation and facilities present to the public safety. Adopted amendments in §8.110(a) define the scope of the rule. Section 8.110(b) is adopted with a change to require an operator of a gathering line in a Class 1 location or rural area as defined in subsection (a) to take appropriate action using processes and technologies that are technically feasible, reasonable, and practicable to correct a hazardous condition that creates a risk to public safety. Adopted §8.110(c) requires operators subject to the rule to report incidents and accidents to the Commission pursuant to the Commission's reporting requirements. Subsection (d) requires operators to conduct an investigation after an incident or accident and cooperate with the Commission during the Commission's investigation. Subsection (e) is adopted with a change to ensure the corrective action plan requirement is related to a risk to public safety. Subsection (e) allows the Commission to require the operator to submit a corrective action plan to the Commission to remediate an accident, incident, or other hazardous condition that creates a risk to public safety, or to address a complaint the Commission has confirmed relates to public safety. Complaints will be verified by the Commission before it will require an operator to submit a remediation/corrective action plan in response. The reporting, investigation, and corrective action requirements will allow the Commission to gather accurate data and analyze any trends in incident or accident occurrences. This will allow the Commission to more thoroughly assess the risks gathering lines in Class 1 locations and rural areas present to the public safety.