(a) Transfer
authority required.
Authority to operate an underground porosity gas storage
facility under a permit from the conservation division shall not be transferred
from one operator to another without the approval of the conservation division.
The transferor operator shall notify the conservation division in writing of
the intent to transfer authority to operate an underground porosity gas storage
facility from one operator to another. The written notice shall contain the
following information:
(1) The name
and address of the transferor operator and that operator's license number;
(2) a list of all active and
inactive gas storage wells on the storage facility authorized under the permit
being transferred;
(3) the permit
number;
(4) the gas storage
reservoir or reservoirs covered by the permit;
(5) the proposed effective date of transfer;
(6) the signature of the
transferor operator and the date signed;
(7) the name and address of the transferee
operator and that operator's license number; and
(8) the signature of the transferee operator
and the date signed.
(b) License required. Transfers shall not be
made to any individual, partnership, corporation, or municipality that is not
licensed as a gas storage operator at the time of the proposed transfer or that
does not meet the applicable financial responsibility requirements under
K.A.R.
82-3-120.
(c) Approval
requirements; notification. A copy of the approved transfer shall be mailed by
the conservation division to the transferee operator and the transferor
operator. As a condition of approval of the transfer, the transferor operator
may be required by the commission to show that the storage facility meets the
regulatory requirements for mechanical integrity tests and safety inspections.
The transferor operator may be required to provide annual pressure-monitoring
reports for that operator's period of operation of the facility.
(d) Identification signs. Within 90 days
after any approved transfer, the transferee operator shall change the
identification signs specified in
K.A.R. 82-3-1007 to show the transferee
operator information.
(e)
Penalties. Each attempted transfer in violation of this regulation shall be
void. Additionally, each violation of this regulation shall be punishable by a
penalty of up to $1,000 for the first violation, $2,000 for the second
violation, and $3,000 plus a license review for the third violation. Each day
that a violation of this regulation continues may be considered a separate
violation. The penalties specified in this subsection may be increased by the
commission if it finds that aggravating factors exist.
This regulation shall be effective on and after October 29,
2002.
Notes
Kan. Admin. Regs. §
82-3-1009
Authorized by and
implementing K.S.A. 2001 Supp.
55-162,
55-164,
55-1,115, and
74-623; effective, T-82-6-27-02,
July 1, 2002; effective Oct. 29, 2002.
