TITLE 16. ECONOMIC REGULATION

PART 1. RAILROAD COMMISSION OF TEXAS

CHAPTER 2. INFORMAL COMPLAINT PROCEDURE

16 TAC §2.1

The Railroad Commission of Texas (Commission) adopts an amendment to §2.1, relating to Informal Complaint Procedure, without changes to the proposed text as published in the December 23, 2016, issue of the Texas Register (41 TexReg 10051) to correct a reference to the Commission's website.

The Commission received no comments on the proposal.

The Commission adopts the amendment pursuant to Texas Natural Resources Code §81.058, which authorizes the Commission to impose an administrative penalty against a purchaser, transporter, gatherer, shipper, or seller of natural gas who is a party to an informal complaint resolution proceeding and is determined by the Commission to have failed to participate in the proceeding or failed to provide information requested by the mediator in the proceeding. Section 81.058 also authorizes the Commission to impose an administrative penalty against a purchaser, transporter, or gatherer of natural gas if the Commission determines the person engaged in prohibited discrimination against a shipper or seller because the shipper or seller filed a formal or informal complaint with the Commission.

Statutory Authority: Texas Natural Resources Code §81.058.

Cross-reference to statute: Texas Natural Resources Code §81.058.

Issued in Austin, Texas, on April 4, 2017.

The agency certifies that legal counsel has reviewed the adoption and found it to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on April 5, 2017.

TRD-201701450

Haley Cochran

Rules Attorney, Office of General Counsel

Railroad Commission of Texas

Effective date: April 25, 2017

Proposal publication date: December 23, 2016

For further information, please call: (512) 475-1295


CHAPTER 7. GAS SERVICES DIVISION

SUBCHAPTER C. RECORDS AND REPORTS; TARIFFS; GAS UTILITY TAX

The Railroad Commission of Texas (Commission) adopts amendments to §7.315, relating to Filing of Tariffs, and §7.7101, relating to Interim Rate Adjustments, without changes to the proposed text as published in the December 23, 2016, issue of the Texas Register (41 TexReg 10052). The amendments correct references to the Commission's website.

The Commission received no comments on the proposal.

16 TAC §7.315

The Commission adopts the amendment under Texas Utilities Code, §102.001, which gives the Railroad Commission exclusive original jurisdiction over the rates and services of a gas utility distributing natural gas or synthetic natural gas in areas outside a municipality; Texas Utilities Code, §102.151, which requires gas utilities to file schedules showing all rates for a gas utility service, product, or commodity offered by the gas utility and each rule or regulation that relates to or affects a rate of the gas utility or a gas utility service, product, or commodity furnished by the gas utility; Texas Utilities Code, §104.001, which vests in the Railroad Commission all the authority and power of this state to ensure compliance with the obligations of gas utilities in Texas Utilities Code, Title 3, Subtitle A, and which authorizes the Commission to adopt rules for determining the classification of customers and services; and Texas Utilities Code, §104.301, relating to a utility's ability to file with the Commission a tariff or rate schedule that provides for an interim adjustment in the utility's monthly customer charge or initial block rate to recover the cost of changes in the investment in capital for gas utility service.

Statutory authority: Texas Utilities Code, §§102.001, 102.151, 104.001, and 104.301.

Cross reference to statutes: Texas Utilities Code Chapters 102 and 104.

Issued in Austin, Texas, on April 4, 2017.

The agency certifies that legal counsel has reviewed the adoption and found it to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on April 5, 2017.

TRD-201701447

Haley Cochran

Rules Attorney, Office of General Counsel

Railroad Commission of Texas

Effective date: April 25, 2017

Proposal publication date: December 23, 2016

For further information, please call: (512) 475-1295


SUBCHAPTER H. INTERIM RATE ADJUSTMENTS

16 TAC §7.7101

The Commission adopts the amendment under Texas Utilities Code, §102.001, which gives the Railroad Commission exclusive original jurisdiction over the rates and services of a gas utility distributing natural gas or synthetic natural gas in areas outside a municipality; Texas Utilities Code, §102.151, which requires gas utilities to file schedules showing all rates for a gas utility service, product, or commodity offered by the gas utility and each rule or regulation that relates to or affects a rate of the gas utility or a gas utility service, product, or commodity furnished by the gas utility; Texas Utilities Code, §104.001, which vests in the Railroad Commission all the authority and power of this state to ensure compliance with the obligations of gas utilities in Texas Utilities Code, Title 3, Subtitle A, and which authorizes the Commission to adopt rules for determining the classification of customers and services; and Texas Utilities Code, §104.301, relating to a utility's ability to file with the Commission a tariff or rate schedule that provides for an interim adjustment in the utility's monthly customer charge or initial block rate to recover the cost of changes in the investment in capital for gas utility service.

Statutory authority: Texas Utilities Code, §§102.001, 102.151, 104.001, and 104.301.

Cross reference to statutes: Texas Utilities Code Chapters 102 and 104.

Issued in Austin, Texas, on April 4, 2017.

The agency certifies that legal counsel has reviewed the adoption and found it to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on April 5, 2017.

TRD-201701448

Haley Cochran

Rules Attorney, Office of General Counsel

Railroad Commission of Texas

Effective date: April 25, 2017

Proposal publication date: December 23, 2016

For further information, please call: (512) 475-1295


CHAPTER 8. PIPELINE SAFETY REGULATIONS

The Railroad Commission of Texas (Commission) adopts amendments to §8.210, relating to Reports, and §8.301, relating to Required Records and Reporting, to correct references to the Commission's domain name. Section 8.210 is adopted with changes and §8.301 is adopted without change to the proposed text as published in the December 23, 2016, issue of the Texas Register (41 TexReg 10054).

The Commission adopts changes in §8.210(e) to remove references to the Figure from the rule. The Form PS-95 is filed electronically so the inclusion of the Figure in the rule is no longer necessary.

The Commission received no comments on the proposal.

SUBCHAPTER C. REQUIREMENTS FOR NATURAL GAS PIPELINES ONLY

16 TAC §8.210

The Commission adopts the amendments pursuant to Texas Natural Resources Code, §81.051 and §81.052, which give the Commission jurisdiction over all common carrier pipelines in Texas, persons owning or operating pipelines in Texas and their oil and gas wells, and authorize the Commission to adopt all necessary rules for governing and regulating persons and their operations under the jurisdiction of the Commission as set forth in §81.051, including such rules as the Commission may consider necessary and appropriate to implement state responsibility under any federal law or rules governing such persons and their operations.

Statutory authority: Texas Natural Resources Code, §81.051 and §81.052.

Cross-reference to statutes: Texas Natural Resources Code, §81.051 and §81.052.

Issued in Austin, Texas, on April 4, 2017.

§8.210.Reports.

(a) Accident, leak, or incident report.

(1) Telephonic report. At the earliest practical moment or within two hours following discovery, a gas company shall notify the Commission by telephone of any event that involves a release of gas from its pipelines defined as an incident in 49 CFR Part 191.3.

(2) The telephonic report shall be made to the Commission's 24-hour emergency line at (512) 463-6788 and shall include the following:

(A) the operator or gas company's name;

(B) the location of the leak or incident;

(C) the time of the incident or accident;

(D) the fatalities and/or personal injuries;

(E) the phone number of the operator;

(F) the telephone number of the operator's on-site person;

(G) estimated property damage, including the cost of gas lost, to the operator, others, or both; and

(H) any other significant facts relevant to the accident or incident. Ignition, explosion, rerouting of traffic, evacuation of any building, and media interest are included as significant facts.

(3) Written report.

(A) Following the initial telephonic report for accidents, leaks, or incidents described in paragraph (1) of this subsection, the operator who made the telephonic report shall submit to the Commission a written report summarizing the accident or incident. The report shall be submitted as soon as practicable within 30 calendar days after the date of the telephonic report. The written report shall be made on forms supplied by the Department of Transportation. For reports submitted electronically to the Department of Transportation, the operator shall forward a copy of the report and confirmation to the Division or electronically to safety@rrc.texas.gov. For reports not submitted electronically to the Department of Transportation, the operator shall send to the Division an original signed report form.

(B) The written report is not required to be submitted for master metered systems.

(C) The Commission may require an operator to submit a written report for an accident or incident not otherwise required to be reported.

(b) Pipeline safety annual reports.

(1) Except as provided in paragraph (2) of this subsection, each gas company shall submit an annual report for its intrastate systems in the same manner as required by 49 CFR Part 191. The report shall be submitted to the Division on forms supplied by the Department of Transportation not later than March 15 of a year for the preceding calendar year. For reports submitted electronically to the Department of Transportation, the operator may forward a copy of the report and confirmation to the Division or electronically to safety@rrc.texas.gov. For reports not submitted electronically to the Department of Transportation, the operator shall send to the Division an original signed report form.

(2) The annual report is not required to be submitted for:

(A) a petroleum gas system, as that term is defined in 49 CFR 192.11, which serves fewer than 100 customers from a single source; or

(B) a master metered system.

(c) Safety related condition reports. Each gas company shall submit to the Division in writing a safety-related condition report for any condition outlined in 49 CFR 191.23.

(d) Offshore pipeline condition report. Within 60 days of completion of underwater inspection, each operator shall file with the Division a report of the condition of all underwater pipelines subject to 49 CFR 192.612(a). The report shall include the information required in 49 CFR 191.27.

(e) Leak Reporting. For purposes of this subsection, the term "leak" includes all underground leaks, all hazardous above ground leaks, and all non-hazardous above ground leaks that cannot be eliminated by lubrication, adjustment, or tightening. Each operator of a gas distribution system, of a regulated plastic gas gathering line, or of a plastic gas transmission line shall submit to the Division a list of all leaks repaired on its pipeline facilities. Each such operator shall list all leaks identified on all pipeline facilities. Each such operator shall also include the number of unrepaired leaks remaining on the operator's systems by leak grade. Each such operator shall submit leak reports using the Commission's online reporting system, Form PS-95, by July 15 and January 15 of each calendar year, in accordance with the PS-95 Semi-Annual Leak Report Electronic Filing Requirements. The report submitted on July 15 shall include information from the previous January 1 through the previous June 30. The report submitted on January 15 shall include information from the previous July 1 through the previous December 31. The report includes:

(1) leak location;

(2) facility type;

(3) leak classification;

(4) pipe size;

(5) pipe type;

(6) leak cause; and

(7) leak repair method.

The agency certifies that legal counsel has reviewed the adoption and found it to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on April 5, 2017.

TRD-201701449

Haley Cochran

Rules Attorney, Office of General Counsel

Railroad Commission of Texas

Effective date: April 25, 2017

Proposal publication date: December 23, 2016

For further information, please call: (512) 475-1295


SUBCHAPTER D. REQUIREMENTS FOR HAZARDOUS LIQUIDS AND CARBON DIOXIDE PIPELINES ONLY

16 TAC §8.301

The Commission adopts the amendments pursuant to Texas Natural Resources Code, §81.051 and §81.052, which give the Commission jurisdiction over all common carrier pipelines in Texas, persons owning or operating pipelines in Texas and their oil and gas wells, and authorize the Commission to adopt all necessary rules for governing and regulating persons and their operations under the jurisdiction of the Commission as set forth in §81.051, including such rules as the Commission may consider necessary and appropriate to implement state responsibility under any federal law or rules governing such persons and their operations.

Statutory authority: Texas Natural Resources Code, §81.051 and §81.052.

Cross-reference to statutes: Texas Natural Resources Code, §81.051 and §81.052.

Issued in Austin, Texas, on April 4, 2017.

The agency certifies that legal counsel has reviewed the adoption and found it to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on April 5, 2017.

TRD-201701453

Haley Cochran

Rules Attorney, Office of General Counsel

Railroad Commission of Texas

Effective date: April 25, 2017

Proposal publication date: December 23, 2016

For further information, please call: (512) 475-1295


CHAPTER 12. COAL MINING REGULATIONS

SUBCHAPTER J. BOND AND INSURANCE REQUIREMENTS FOR SURFACE COAL MINING AND RECLAMATION OPERATIONS

DIVISION 3. FORM, CONDITIONS, AND TERMS OF PERFORMANCE BOND AND LIABILITY INSURANCE

16 TAC §12.309

The Railroad Commission of Texas (Commission) adopts an amendment to §12.309, relating to Terms and Conditions of the Bond, without changes to the proposed text as published in the December 23, 2016, issue of the Texas Register (41 TexReg 10055). The Commission amends subsection (j)(2)(B) to remove the restriction on self-bonding for an applicant who has been subject to a bankruptcy proceeding in the five years prior to the application. The Commission adopts the amendment because the current wording conflicts with the federal Bankruptcy Code (11 U.S.C. §525(a)) and United States Supreme Court case law interpreting that statute.

The Commission received one comment on the proposed amendment. An individual commented that the rule should allow the Commission to consider bankruptcy as a factor in the evaluation of a request for self-bonding. However, the individual’s explanation referred to oil and gas operators and permits, which are not the subject of this rulemaking. Therefore, the Commission disagrees and makes no changes in response to the comment.

The Commission adopts the amendment under Texas Natural Resources Code, §134.013, which authorizes the Commission to promulgate rules pertaining to surface coal mining operations.

Statutory authority: Texas Natural Resources Code, §134.013.

Cross-reference to statute: Texas Natural Resources Code, §134.013.

Issued in Austin, Texas, on April 4, 2017.

The agency certifies that legal counsel has reviewed the adoption and found it to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on April 5, 2017.

TRD-201701451

Haley Cochran

Rules Attorney, Office of General Counsel

Railroad Commission of Texas

Effective date: April 25, 2017

Proposal publication date: December 23, 2016

For further information, please call: (512) 475-1295


CHAPTER 18. UNDERGROUND PIPELINE DAMAGE PREVENTION

16 TAC §18.11

The Railroad Commission of Texas (Commission) adopts amendments to §18.11, relating to Reporting Requirements, without changes to the proposed text as published in the December 23, 2016, issue of the Texas Register (41 TexReg 10056) to correct a reference to the Commission's website.

The Commission received no comments on the proposal.

The Commission adopts the amendments pursuant to Texas Natural Resources Code, §117.012, and Texas Utilities Code, §121.201, which authorize the Commission to adopt rules that include safety standards for and practices applicable to the intrastate transportation of hazardous liquids or carbon dioxide by pipeline and intrastate hazardous liquid or carbon dioxide pipeline facilities, including safety standards related to the prevention of damage to such a facility resulting from the movement of earth by a person in the vicinity of the facility, other than movement by tillage that does not exceed a depth of 16 inches. In addition, the Commission proposes the amendment pursuant to Texas Health and Safety Code, §756.106, which authorizes the Commission to adopt and enforce safety standards and best practices, including those described by 49 U.S.C. §6105 et seq., relating to the prevention of damage by a person to a facility under the jurisdiction of the Commission.

Statutory authority: Texas Natural Resources Code §117.012, Texas Utilities Code §121.201, and Texas Health and Safety Code §756.126.

Cross-reference to statute: Texas Natural Resources Code §117.012; Texas Utilities Code §121.201, and Texas Health and Safety Code §756.126.

The agency certifies that legal counsel has reviewed the adoption and found it to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on April 5, 2017.

TRD-201701452

Haley Cochran

Rules Attorney, Office of General Counsel

Railroad Commission of Texas

Effective date: April 25, 2017

Proposal publication date: December 23, 2016

For further information, please call: (512) 475-1295