(a) Definitions. The following terms, when used in this section, shall have the following meanings, unless the context clearly indicates otherwise.
  (1) Affected person--A person who, as a result of actions proposed in an application for a storage facility permit or for amendment or modification of an existing storage facility permit, has suffered or may suffer actual injury or economic damage other than as a member of the general public.
  (2) Brine string--The uncemented tubing through which highly saline water flows into or out of a hydrocarbon storage well during hydrocarbon withdrawal or injection operations.
  (3) Cavern--The storage space created in a salt formation by solution mining.
  (4) Commission--The Railroad Commission of Texas.
  (5) Emergency shutdown valve--A valve that automatically closes to isolate a hydrocarbon storage wellhead from surface piping in the event of specified conditions that, if uncontrolled, may cause an emergency.
  (6) Fire detector--A device capable of detecting the presence of a flame or the heat from a fire.
  (7) Fresh water--Water having bacteriological, physical, and chemical properties that make it suitable and feasible for beneficial use for any lawful purpose. For purposes of this section, brine associated with the creation, operation, and maintenance of an underground hydrocarbon storage facility is not considered fresh water.
  (8) Hydrocarbon storage well or storage well--A well, including the storage wellhead, casing, tubing, borehole, and cavern, used for the injection or withdrawal of liquid or liquefied hydrocarbons into or out of an underground hydrocarbon storage facility.
  (9) Leak detector--A device capable of detecting by chemical or physical means the presence of hydrocarbon vapor or the escape of vapor through a small opening.
  (10) Liquid or liquefied hydrocarbons--Crude oil and products, derivatives, or byproducts of oil or gas that are:
    (A) liquid under standard conditions of temperature and pressure;
    (B) liquefied under the temperatures and pressures at which they are stored; or
    (C) stored under conditions that necessitate the use of displacement fluids to withdraw them from storage.
  (11) Operator--The person recognized by the Commission as being responsible for the physical operation of an underground hydrocarbon storage facility, or such person's authorized representative.
  (12) Owner--The person recognized by the Commission as owning all or part of a storage facility, or such person's authorized representative.
  (13) Person--A natural person, corporation, organization, government, governmental subdivision or agency, business trust, estate, trust, partnership, association, or any other legal entity.
  (14) Pollution--Alteration of the physical, chemical, or biological quality of, or the contamination of, water that makes it harmful, detrimental, or injurious to humans, animal life, vegetation, or property, or to public health, safety, or welfare, or impairs the usefulness or the public enjoyment of the water for any lawful or reasonable purpose.
  (15) Process or transfer area--Any area at an underground hydrocarbon storage facility where hydrocarbons are physically altered by equipment, including dehydrators, compressors, and pumps, or where hydrocarbons are transferred to or from trucks, rail cars, or pipelines.
  (16) Storage wellhead--Equipment installed at the surface of the wellbore, including the casinghead and tubing head, spools, block or wing valves, and instrument flanges. Spool pieces must have a length of less than six feet to be considered a part of the storage wellhead.
  (17) Surface piping--Any pipe within a storage facility that is directly connected to a storage well, outboard of the wellhead emergency shutdown valve and used to transport product, brine, or fresh water to or from a storage well whether such pipe is above or below ground level.
  (18) Underground hydrocarbon storage facility or storage facility--A facility used for the storage of liquid or liquefied hydrocarbons in an underground salt formation, including surface and subsurface rights, appurtenances, and improvements necessary for the operation of the facility.
(b) Permit required.
  (1) General. No person may create, operate, or maintain an underground hydrocarbon storage facility without obtaining a permit from the Commission. A permit issued by the Commission for such activities before the effective date of this section shall continue in effect until revoked, modified, or suspended by the Commission, or until it expires by its terms. The provisions of this section apply to permits for underground hydrocarbon storage facility operations issued prior to the effective date of this section, except as specifically provided in this section.
  (2) Conflict with other requirements. If a provision of this section conflicts with any provision or term of a Commission order, field rule, or permit, the provision of such order, field rule, or permit shall control.
(c) Application.
  (1) Information required. An application for a permit to create, operate, or maintain an underground hydrocarbon storage facility shall be filed with the Commission by the owner or operator, or proposed owner or operator, on the prescribed form. The application shall contain the information necessary to demonstrate compliance with the applicable state laws and Commission regulations.
  (2) Permit amendment. An application for amendment of an existing underground hydrocarbon storage facility permit shall be filed with the Commission:
    (A) prior to any planned enlargement of a cavern in excess of the permitted cavern capacity by solution mining;
    (B) when required in accordance with paragraph (3) of this subsection;
    (C) prior to the drilling of any additional hydrocarbon storage wells;
    (D) prior to any increase in the volume of liquid or liquefied hydrocarbons stored in the cavern in excess of the permitted storage volume; or
    (E) any time that conditions at the storage facility deviate materially from conditions specified in the permit or the permit application.
  (3) Increase in capacity. The owner or operator of a storage facility shall notify the Commission if information indicates that the capacity of a cavern exceeds the permitted cavern capacity by 20% or more. Such notification shall be made in writing to the Commission within 10 days of the date that the owner or operator knows or has reason to know that the cavern capacity exceeds the permitted capacity by 20% or more. The notification shall include a description of the information that indicates that the permitted cavern capacity has been exceeded, and an estimate of the current cavern capacity. Upon receipt of such information, the Commission or its designee may take any one or more of the following actions:
    (A) require the permittee to comply with a compliance schedule that lists measures to be taken to ensure that conditions at the storage facility do not pose a danger to life or property, and that no waste of hydrocarbons, uncontrolled escape of hydrocarbons, or pollution of fresh water occurs;
    (B) require the permittee to file an application to amend the underground hydrocarbon storage facility permit;
    (C) modify, cancel, or suspend the permit as provided in subsection (f) of this section; or
    (D) take enforcement action.
  (4) Related activities. An application for a permit to store saltwater or brine in a pit or to dispose of saltwater or other oil and gas waste arising out of or incidental to the creation, operation, or maintenance of an underground hydrocarbon storage facility shall be filed in accordance with applicable Commission requirements.
(d) Standards for underground storage zone.
  (1) Geologic, construction, and operating performance. An underground hydrocarbon storage facility may be created, operated, or maintained only in an impermeable salt formation in a manner that will prevent waste of the stored hydrocarbons, uncontrolled escape of hydrocarbons, pollution of fresh water, and danger to life or property. Natural gas storage operations are not authorized under the provisions of this section. A permit under §3.97 of this title (relating to Underground Storage of Gas in Salt Formations) is required to convert from storage of liquid or liquefied hydrocarbons to storage of natural gas in an underground salt formation.
  (2) Fresh water strata. The applicant must submit with the application a letter from the Groundwater Advisory Unit of the Oil and Gas Division stating the depth to which fresh water strata occur at each storage facility.
(e) Notice and hearing.
Cont'd...