SECTION 3.66. Weather Emergency Preparedness Standards

(a) Applicability.

(1) In accordance with Texas Natural Resources Code §86.044, this section applies to a gas supply chain facility that is:

(A) included on the electricity supply chain map created under Texas Utilities Code §38.203; and

(B) designated as critical in §3.65 of this title, relating to Critical Designation of Natural Gas Infrastructure.

(2) In accordance with Texas Utilities Code §121.2015, this section applies to a gas pipeline facility that:

(A) directly serves a natural gas electric generation facility operating solely to provide power to the electric grid for the Electric Reliability Council of Texas (ERCOT) power region or for the ERCOT power region and an adjacent power region; and

(B) is included on the electricity supply chain map created under Texas Utilities Code §38.203.

(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:

(A) used for producing, treating, processing, pressurizing, storing, or transporting natural gas, as well as handling waste produced;

(B) not primarily used to support liquefied natural gas pretreatment, liquefaction, or regasification facilities in the business of exporting or importing liquefied natural gas to or from foreign countries;

(C) otherwise regulated by the Commission under Subtitle B of Title 3, Texas Natural Resources Code; and

(D) not regulated by the Commission under Texas Utilities Code Chapter 121.

(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:

(A) a loss of production exceeding 5,000 Mcf of natural gas per day per oil lease;

(B) a loss of production exceeding 5,000 Mcf of natural gas per day per gas well;

(C) a loss of gas processing capacity exceeding 200 MMcf per day;

(D) a loss of storage withdrawal capacity exceeding 200 MMcf per day; or

(E) a loss of transportation capacity exceeding 200 MMcf per day.

(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:

(A) correcting critical component failures that occurred during previous weather emergencies;

(B) installing equipment to mitigate weather-related operational risks; and

(C) internal inspection, self-assessment, and implementation of processes to identify, test, and protect critical components.

(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:

(A) ensure the sustained operation of a gas supply chain facility or a gas pipeline facility during a weather emergency; and

(B) correct known major weather-related forced stoppages and weather-related forced stoppages that prevented sustained operation of a facility because of previous weather emergencies.

(2) Weather emergency preparation measures required by paragraph (1) of this subsection shall include:

(A) providing training on weather emergency preparations and operations to relevant operational personnel;

(B) consideration of the risk to the health and safety of employees and protection of the environment; and

(C) weatherization of the facility using methods a reasonably prudent operator would take given the type of facility, the age of the facility, the facility's critical components, the facility's location, and weather data for the facility's county or counties such as data developed for the Commission by the state climatologist. The Commission will periodically publish weatherization practices and may include weather data developed for the Commission by the state climatologist.

(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:

(A) the operator implemented the required weather emergency preparation measures described in subsection (c) of this section;

(B) the information and statements made in the Weather Emergency Readiness Attestation are true, correct, and complete to the best of the attestor's knowledge;

(C) the representative is authorized to sign the attestation on behalf of the operator entity; and

(D) the Weather Emergency Readiness Attestation was prepared by the authorized representative or under the authorized representative's supervision and direction;

(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:

(A) a weather-related forced stoppage; or

(B) a forced stoppage caused by a loss of electricity.

(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:

(A) a major weather-related forced stoppage; or

(B) a forced stoppage caused by a loss of electricity that results in the same volume of loss in natural gas production, withdrawal capacity, processing capacity, or transportation capacity as a major weather-related forced stoppage.

(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 readtac$ext.TacPage?sl=T&app=9&p_dir=F&p_rloc=210162&p_tloc=9545&p_ploc=1&pg=2&p_tac=&ti=16&pt=1&ch=3&rl=66,000,000.

Attached Graphic

(2) Violation of this section by a gas pipeline facility operator.

(A) If a major weather-related forced stoppage or weather-related forced stoppage was caused by a gas pipeline facility's failure to adhere to the requirements of this section, the facility's operator will be subject to an enforcement action. A gas pipeline 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 Utilities Code §121.2015, 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 report the violation to the Office of the Attorney General of Texas. Pursuant to Texas Utilities Code §121.206, the Commission shall assess an administrative penalty for a violation of this section, which may be up to readtac$ext.TacPage?sl=T&app=9&p_dir=F&p_rloc=210162&p_tloc=9545&p_ploc=1&pg=2&p_tac=&ti=16&pt=1&ch=3&rl=66,000,000 for each offense. Each day a violation continues constitutes a separate offense.

(B) In accordance with Texas Utilities Code §121.206(d), the Commission will use the table in paragraph (1) of this subsection in assessing penalties for a violation of this section. The penalty amounts contained in the table in paragraph (1) of this subsection are provided solely as guidelines to be considered by the Commission in determining the amount of administrative penalties for violations of Texas Utilities Code, Chapter 121, Subchapter E, or a safety standard or other rule prescribed or adopted under that subchapter. The establishment of these penalty guidelines shall in no way limit the Commission's authority and discretion to cite violations and assess administrative penalties. The Commission retains full authority and discretion to cite violations of Texas Utilities Code, Chapter 121, Subchapter E, or a safety standard or other rule prescribed or adopted under that subchapter, and to assess administrative penalties in any amount up to the statutory maximum when warranted by the facts in any case, regardless of inclusion in or omission from this section. The penalty calculation worksheet shown in the table in paragraph (1) of this subsection lists the typical penalty amounts for certain violators, the circumstances justifying enhancements of a penalty, and the circumstances justifying a reduction in a penalty.

(h) Confidentiality. If a gas supply chain facility operator or a gas pipeline facility operator filing information required by this section contends certain information is confidential by law, the operator shall file a complete version of the required information and a version for public inspection in which the confidential information has been redacted. 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.

Source Note: The provisions of this §3.66 adopted to be effective September 19, 2022, 47 TexReg 5781