SECTION 3.72. Obtaining Pipeline Connections

(a) A common carrier pipeline transporting crude oil in Texas, upon application for connection and offer of crude oil by a producer or persons owning unconnected lease batteries, shall connect such lease batteries in the following instances:

(1) when such request is made for connection of lease batteries in the general area served by a common carrier, which is an affiliate or subsidiary of a common purchaser, as defined in the Texas Natural Resources Code, §111.081; and

(2) within individual fields, when any common carrier possesses the only pipeline serving such field or common reservoir and request is made for connection of an unconnected lease battery in the field, provided, that for just cause a common carrier pipeline may apply for an exception. If proper application has been made for such connection and the common carrier pipeline refuses to connect the unconnected lease battery, a complaint for failure to connect may be filed with the commission by the person seeking the connection. The complaining person may allege discrimination or noncompliance with the provisions of this subsection or the appropriate section(s) of the Texas Natural Resources Code.

(b) Whether the matter comes to the commission either as an application for exception by the pipeline or on a complaint for failure to connect, at least 10 days' notice shall be given to all interested parties, after which the hearing shall be held. At the hearing, the commission may require and consider, among other factors, evidence relating to ability of the pipeline carrier to transport the quality of oil, the market or lack of market for the proffered oil, and the period required to return the capital investment for the connection. It is not its intention to limit, nor does the commission herein limit, the consideration by it of any facts with respect to a claim of violation of, or of any facts that may constitute a cause of action for violation of, any of the provisions of Texas Natural Resources Code, §§11.001-11.136, whether enumerated in this section or not.

Source Note: The provisions of this §3.72 adopted to be effective August 25, 2003, 28 TexReg 6816