(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 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) Cavern--The storage space created in a salt formation by solution mining.
  (3) Commission--The Railroad Commission of Texas.
  (4) Emergency shutdown valve--A valve that automatically closes to isolate a gas storage wellhead from surface piping in the event of specified conditions that, if uncontrolled, may cause an emergency.
  (5) 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 gas storage facility is not considered fresh water.
  (6) Gas storage well or storage well--A well, including the storage wellhead, casing, tubing, borehole, and cavern used for the injection or withdrawal of natural gas or any other gaseous substance into or out of an underground gas storage facility.
  (7) Leak or fire detector--A device capable of detecting by chemical or physical means the presence of stored product gas or the escape of stored product gas or the presence of flame or heat of a fire.
  (8) Operator--The person recognized by the Commission as being responsible for the physical operation of an underground gas storage facility, or such person's authorized representative.
  (9) Owner--The person recognized by the Commission as owning all or part of an underground gas storage facility, or such person's authorized representative.
  (10) Person--A natural person, corporation, organization, government, governmental subdivision or agency, business trust, estate, trust, partnership, association, or any other legal entity.
  (11) 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.
  (12) 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 less than six feet to be considered a part of the storage wellhead.
  (13) 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 gas, brine, or fresh water to or from a storage well whether such pipe is above or below ground level.
  (14) Underground gas storage facility or storage facility--A facility used for the storage of natural gas or any other gaseous substance 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 gas 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 according to its terms. The provisions of this section apply to permits to conduct gas storage operations issued prior to the effective date of this section, except as otherwise specifically provided.
  (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 gas storage facility shall be filed with the Commission by the owner or operator, or the proposed owner or operator, on the prescribed form. The application shall contain the information necessary to demonstrate compliance with applicable state laws and Commission regulations.
  (2) Permit amendment. An application for amendment of an existing underground gas 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 storage wells;
    (D) prior to an increase in the maximum operating pressure above the permitted pressure; or
    (E) any time that conditions at the storage facility deviate materially from the conditions specified in the permit or 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 of the storage facility 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 gas, uncontrolled escape of gas, or pollution of fresh water occurs;
    (B) require the permittee to file an application to amend the underground gas storage facility permit;
    (C) modify, cancel, or suspend the permit as provided in subsection (f) of this section; or
    (D) take enforcement action.
(d) Standards for underground storage zone.
  (1) Geologic, construction, and operating performance. An underground gas storage facility may be created, operated, or maintained only in an impermeable salt formation in a manner that will prevent waste of the stored gases, uncontrolled escape of gases, pollution of fresh water, and danger to life or property. This section does not authorize storage of liquid or liquefied hydrocarbons in an underground salt formation. A permit under §3.95 of this title (relating to Underground Storage of Liquid or Liquefied Hydrocarbons in Salt Formations) is required to convert from storage of natural gas to storage of liquid or liquefied hydrocarbons 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.
  (1) Notice requirements. The applicant shall, no later than the date the application is mailed to or filed with the Commission, give notice of an application for a permit to create, operate, or maintain an underground hydrocarbon storage facility, or to amend an existing storage facility permit, by mailing or delivering a copy of the application form to:
    (A) the surface owner of the tract where the storage facility is located or is proposed to be located;
    (B) the surface owner of each tract adjoining the tract where the storage facility is located or is proposed to be located;
    (C) each oil, gas, or salt leaseholder, other than the applicant, of the tract on which the storage facility is located or is proposed to be located;
    (D) each oil, gas, or salt leaseholder of any tract adjoining the tract on which the storage facility is located or is proposed to be located;
    (E) the county clerk of the county or counties where the storage facility is located or is proposed to be located; and
    (F) if the storage facility is located or is proposed to be located within city limits, the city clerk or other appropriate city official.
Cont'd...