SECTION 3.84. Gas Shortage Emergency Response

(a) The purpose of this section is to provide a means for a producer or purchaser to increase production and takes from wells in a field in response to an increase in demand caused by unforeseen events. This section outlines the commission's mechanisms for both determining that a gas shortage emergency exists, and responding to a gas shortage emergency.

(b) The commission may, after notice and hearing, determine that a gas shortage emergency exists or has existed. The commission may also determine the duration of the emergency at such hearing. The commission shall issue notice when it has determined that a gas shortage emergency exists, or has existed, and when it determines the gas shortage emergency has ended or will end. In determining whether a gas shortage emergency exists or has existed, the commission shall consider any relevant information, including, but not limited to, the following:

(1) notification from gas storage facilities that they are attaining maximum gas withdrawal rates;

(2) notification from a gas utility, distributor, transporter, producer or purchaser that gas shortages have occurred or are anticipated; and

(3) weather data.

(c) Upon the commission's finding that a gas shortage emergency exists, or has existed, producers or purchasers shall be authorized to meet the increased demand for the duration of the gas shortage emergency as determined by the commission regardless of a well's assigned allowable or allowable status.

(d) If inequities occur as a result of production authorized by subsection (c) of this section, an adjustment shall be made at the hearing in which production reported for the month of the gas shortage emergency is considered in setting future allowables. Such adjustment shall include the assignment of additional allowable to adequately protect correlative rights. The commission may determine the maximum amount of the supplemental allowable by multiplying the number of days of the gas shortage emergency period by the difference between the well's capability (as defined in §3.31 of this title (relating to Gas Reservoirs and Gas Well Allowable)) and the assigned allowable.

Source Note: The provisions of this §3.84 adopted to be effective September 13, 1994, 19 TexReg 6853; amended to be effective November 24, 2004, 29 TexReg 10728