(a) Applicability.
(1) In accordance with Texas Natural Resources Code §86.044, this section applies to a gas supply chain facility that is:
(2) In accordance with Texas Utilities Code §121.2015, this section applies to a gas pipeline facility that:
(b) Definitions. In this section, the following definitions apply.
(1) Critical component--Any component, including components on equipment rented or leased from a third party, that is susceptible to weather-related interruptions, such as those caused by freezing temperatures, freezing precipitation, or extreme heat, the occurrence of which is likely to significantly hinder sustained operation of the gas pipeline or gas supply chain facility.
(2) Gas pipeline facility--A pipeline or pipeline facility regulated by the Commission under Texas Utilities Code Chapter 121.
(3) Gas supply chain facility--A facility that is:
(4) Major weather-related forced stoppage--A weather-related forced stoppage during a weather emergency that is the result of the deliberate disregard of this section or that results in:
(5) Repeated weather-related forced stoppage--When a gas supply chain facility or a gas pipeline facility has more than one major weather-related forced stoppage or weather-related forced stoppage violation within a 12-month period.
(6) Sustained operation--Safe operation of a gas supply chain facility or a gas pipeline facility such that the facility does not experience a major weather-related forced stoppage or weather-related forced stoppage in production, treating, processing, storage, or transportation of natural gas.
(7) Weather emergency--Weather conditions such as freezing temperatures, freezing precipitation, or extreme heat in the facility's county or counties that result in an energy emergency as defined by §3.65 of this title. A weather emergency does not include weather conditions that cannot be reasonably mitigated such as tornadoes, floods, or hurricanes.
(8) Weatherization--The iterative cycle of preparedness for sustained operation during weather emergencies that includes:
(9) Weather-related forced stoppage--An unanticipated and/or unplanned outage in the production, treating, processing, storage, or transportation of natural gas that is caused by weather conditions such as freezing temperatures, freezing precipitation, or extreme heat and occurs during a weather emergency.
(c) Weather emergency preparedness standards for a gas supply chain facility or a gas pipeline facility.
(1) By December 1st of each year, a gas supply chain facility operator or a gas pipeline facility operator shall implement weather emergency preparation measures intended to:
(2) Weather emergency preparation measures required by paragraph (1) of this subsection shall include:
(d) Weather Emergency Readiness Attestation. By December 1 of each year, an operator of a gas supply chain facility or a gas pipeline facility shall submit to the Commission a Weather Emergency Readiness Attestation that:
(1) is signed by an authorized representative of the operator entity attesting, under penalties prescribed in Texas Natural Resources Code §91.143, that:
(2) includes an attachment describing all activities engaged in by the operator to implement the requirements of subsection (c) of this section, including a description of the weatherization methods utilized by the operator to weatherize each type of facility; and
(3) for the Weather Emergency Readiness Attestation due December 1, 2022, also describes corrective actions taken to mitigate known major weather-related forced stoppages and weather-related forced stoppages that prevented sustained operation of a facility because of previous weather emergencies.
(e) Inspection of gas supply chain facilities and gas pipeline facilities. Beginning December 1, 2022, the Commission will inspect facilities to ensure compliance with this section and will prioritize inspections of oil leases and gas wells producing greater than 5,000 Mcf per day of natural gas and facilities storing, processing, or transporting greater than 200 MMcf per day of natural gas. The Commission will further prioritize inspections in descending order in accordance with a facility's production volume or storage, processing, or transportation capacity.
(f) Notifications and other requirements for gas supply chain facilities and gas pipeline facilities.
(1) An operator of a gas supply chain facility or a gas pipeline facility that experiences either of the following during a weather emergency shall notify the Commission immediately through the Critical Infrastructure Division's notification portal if the stoppage is not resolved within 24 hours of discovery of the stoppage:
(2) An operator of a gas supply chain facility or gas pipeline facility that experiences either of the following during a weather emergency shall, within one hour of discovery of the stoppage, contact the Commission through the Critical Infrastructure Division's 24-hour emergency telephone number. Subsequent to the phone call, the operator shall submit a notification through the Critical Infrastructure Division's notification portal:
(3) The notification of the major weather-related forced stoppage or weather-related forced stoppage may include information such as any third-party issues that may have directly contributed to the stoppage, if applicable.
(4) A gas supply chain facility or a gas pipeline facility that is determined to have experienced repeated weather-related forced stoppages or major weather-related forced stoppages in sustained operation during a weather emergency shall comply with this paragraph. Upon notice from the Commission that the facility is required to comply with this paragraph, the facility's operator shall contract with a person with related experience to assess the facility's weather emergency preparation measures, plans, procedures, and operations. The person with related experience shall not be an employee of the facility or its affiliate and shall not have participated in any assessments of the facility for at least the previous five years, unless the facility's operator can document that no other persons with related experience are reasonably available for engagement. Within the timeframe provided by the Commission, the operator shall submit to the Commission a written assessment prepared by the person and the facility operator's corrective action plan in compliance with the terms in the Commission's notice that the facility is required to comply with this paragraph.
(g) Enforcement.
(1) Violation of this section by a gas supply chain facility operator. If a major weather-related forced stoppage or weather-related forced stoppage was caused by a gas supply chain facility's failure to adhere to the requirements of this section, the facility's operator will be subject to an enforcement action. A gas supply chain facility operator will be given notice and opportunity for a hearing for alleged violations of this section. The notice will be sent by certified mail and state the facts or conduct alleged to comprise the violation. The notice will give the operator 30 days from receipt to request a hearing. Pursuant to Texas Natural Resources Code §86.044 and §§86.222-.224, if after notice and opportunity for a hearing, the Commission determines that an operator has violated this section and the violation is not remedied in a reasonable amount of time, the Commission shall notify the Office of the Attorney General of Texas of the violation in accordance with Texas Natural Resources Code §86.222. The table in this paragraph contains a classification system to be used under Texas Natural Resources Code §86.222 for violations of this section. The penalty for each violation may be up to $1,000,000.
(2) Violation of this section by a gas pipeline facility operator.