16 Tex. Admin. Code § 3.32 - Gas Well Gas and Casinghead Gas Shall Be Utilized for Legal Purposes
(a)
The following words and terms, when used in this section, shall have the
following meanings, unless the context clearly indicates otherwise.
(1) Fugitive emissions--Releases of gas from
lease production, gathering, compression, or gas plant equipment components,
including emissions from valve stems, pressure relief valves, flanges and
connections, gas-operated valves, compressor and pump seals, pumping well
stuffing boxes, casing-to-casing bradenheads subject to the provisions of
§
3.17 of this title (relating to
Pressure on Bradenhead), pits, and sumps, that cannot reasonably be captured
and sold or routed to a vent or flare.
(2) Gathering system--Facilities employed to
collect, compress, and transport gas to another gas gathering system, a gas
plant, compression facility, or transmission line.
(3) Lease production facilities--Production,
separation, treating, compression, flowlines, storage, and other production
handling equipment employed on a lease in the production of gas, condensate,
and oil.
(4) Low pressure separator
gas--Gas separated or liberated from a gas-liquid stream in a low pressure
separation facility. Low pressure separation facilities include but are not
limited to separators, treaters, free water knockouts, and other associated
equipment.
(5) Tank vapors--Gas
which evolves from oil, condensate, or water when placed in a gunbarrel or
storage tank.
(b)
Activities authorized by this section may be subject to rules and regulations
promulgated by the United States Environmental Protection Agency under the
federal Clean Air Act or the Texas Commission on Environmental Quality under
the Texas Clean Air Act.
(c)
General Provisions. All gas from any oil well, gas well, gas gathering system,
gas plant or other gas handling equipment shall be utilized for purposes and
uses authorized by law, except as provided in this section. This section does
not apply to gas transmission or gas distribution facilities or
operations.
(d) Exempt Gas
Releases.
(1) Releases of gas that are not
readily measured by devices routinely used in the operation of oil wells, gas
wells, gas gathering systems, or gas plants, such as meters, are not required
by the commission to be reported or charged against lease allowable production
and are not subject to the remaining requirements of this section. Releases of
gas exempt from the requirements of this section under this paragraph include,
but are not limited to, the following:
(A)
tank vapors from crude oil storage tanks, gas well condensate storage tanks, or
salt water storage tanks, including makeup gas for gas blanket
maintenance;
(B) fugitive emissions
of gas;
(C) amine treater, glycol
dehydrator flash tank and/or reboiler emissions;
(D) blowdown gas from flow lines, gathering
lines, meter runs, pressurized vessels, compressors, or other gas handling
equipment for construction, maintenance or repair;
(E) gas purged from compressor cylinders or
other gas handling equipment for startup;
(F) gas released at a wellsite during
drilling operations and prior to the completion date of the well, including gas
produced during air or gas drilling operations or gas which must be separated
from drilling fluids using a mud-gas separator, or mud-degasser; or
(G) gas released at a wellsite during initial
completion, recompletion in another field, or workover operations in the same
field, including but not limited to perforating, stimulating, deepening,
cleanout, well maintenance or repair operations.
(2) Notwithstanding the foregoing, the
commission or the commission's delegate may require the flaring of releases of
gas not readily measured by devices routinely used in the operation of oil
wells, gas wells, gas gathering systems, or gas plants, such as meters, if the
commission or the commission's delegate determines that flaring is required for
safety reasons.
(e) Gas
Releases to be Burned in a Flare.
(1) Except
as otherwise provided in subsections (d), (f)(1)(B) and (C), (g)(2), or an
exception granted under subsection (h) of this section, all gas releases of
greater than 24 hours duration authorized under the provisions of this section
shall be burned in a flare if the gas can be burned safely. All gas releases of
24 hours' duration or less authorized under the provisions of this section may
be vented to the air if flaring is not required for safety reasons or by other
regulation and the gas can be safely vented.
(2) Gas releases authorized under this
section must be managed in accordance with the provisions of §
3.36 of this title (relating to
Oil, Gas, Brine, or Geothermal Resource Operation in Hydrogen Sulfide Areas)
when applicable.
(3) An exception
to the requirements of this subsection may be granted under subsection (h) by
the commission or the commission's delegate to allow the venting of gas to the
air for releases of greater than 24 hours' duration if the operator presents
information that shows the gas cannot be both safely and continuously burned in
a flare, and the gas can be safely vented.
(4) Notwithstanding the provisions of
paragraph (1) of this subsection or an exception granted under subsection (h),
the commission or the commission's delegate may require that the gas be flared
if flaring is required for safety reasons.
(f) Gas Releases in Oil and Gas Production
Operations.
(1) The following releases of gas
resulting from routine oil and gas production operations are necessary in the
efficient drilling and operation of oil and gas wells and are hereby authorized
subject to the requirements of subsection (e) of this section. The released gas
shall be measured or estimated in accordance with §
3.27 of this title (relating to
Gas To Be Measured and Surface Commingling of Gas) and reported and charged
against lease allowable production.
(A) Gas
may be released for a period not to exceed ten producing days after initial
completion, recompletion in another field, or workover operations in the same
field, including but not limited to perforating, stimulating, deepening,
cleanout, well maintenance or repair operations.
(B) Gas from a well that must be unloaded or
cleaned-up to atmospheric pressure may be vented to the air for periods not to
exceed 24 hours in one continuous event or a total of 72 hours in one calendar
month.
(C) In the event of a full
or partial shutdown by a gas gathering system, compression facility, or gas
plant, gas from a lease production facility served by that gas gathering
system, compression facility or gas plant may be released for a period not to
exceed 24 hours. The operator shall notify the appropriate commission district
office by telephone or facsimile as soon as reasonably possible after the
release of gas begins. An operator may continue the release by flaring or by
venting of the gas, if flaring is not required for safety reasons or by other
regulation, beyond the initial 24-hour period, pending commission approval or
denial of a request for an administrative exception under subsection (h) of
this section. The operator shall file the request with the commission by the
end of the next full business day following the first 24 hours of the release
unless the deadline is extended by the commission or the commission's
delegate.
(D) Hydrocarbon gas
contained in the waste stream from a membrane unit or molecular sieve used to
remove carbon dioxide, hydrogen sulfide, or other contaminants from a gas
stream may be released, provided that at least 85% of the hydrocarbon gas in
the inlet gas stream is recovered and directed to a legal use.
(E) Low pressure separator gas, not to exceed
15 mcfd of hydrocarbon gas per gas well or 50 mcfd of hydrocarbon gas per
commission-designated oil lease or commingling point for commingled operations,
may be released.
(2) The
commission or the commission's delegate may administratively grant or renew an
exception to the requirements or limitations of this subsection subject to the
requirements of subsection (h) to allow additional releases of gas if the
operator of a well or production facility presents information to show the
necessity for the release. The volume of gas that is released must be measured
or estimated in accordance with §
3.27 of this title (relating to
Gas To Be Measured and Surface Commingling of Gas) and reported on the
appropriate commission form and shall be charged to the operator's allowable
production. Necessity for the release includes, but is not limited to, the
following situations:
(A) Cleaning a well of
solids or fluids or both for more than ten producing days following initial
completion, recompletion in another field, or workover operations in the same
field, including but not limited to perforating, stimulating, deepening,
cleanout, or well maintenance or repair operations;
(B) Unloading excess formation fluid buildup
in a wellbore for periods in excess of 24 hours in one continuous event or 72
hours total in one calendar month;
(C) Volumes of low pressure gas that can be
measured with devices routinely used in oil and gas exploration, development,
and production operations and that are not directed by an operator to a gas
gathering system, gas pipeline, or other marketing facility, or other purposes
and uses authorized by law due to mechanical, physical, or economic
impracticability;
(D) For
casinghead gas only, the unavailability of a gas pipeline or other marketing
facility, or other purposes and uses authorized by law; or
(E) Avoiding curtailment of gas production
which will result in a reduction of ultimate recovery from a gas well or oil
reservoir.
(g)
Gas releases from gas gathering system, gas plant or gas handling operations.
(1) The operator of a gas gathering system,
gas plant, gas compressor facility or other gas handling equipment not directly
associated with lease production of gas, shall not intentionally allow gas to
be released for a period of more than 24 hours after the start of an upset
condition. The operator shall notify the appropriate commission district office
by telephone or facsimile as soon as reasonably possible after the release of
gas begins. The volume of gas that is released must be measured or estimated in
accordance with §
3.27 of this title (relating to
Gas To Be Measured and Surface Commingling of Gas) and reported on the
appropriate commission form. The provisions of this subsection do not apply to
accidental releases which are subject to or reported pursuant to any other
commission rule.
(2) The commission
or the commission's delegate may administratively grant or renew an exception
to the requirements or limitations of this subsection and allow additional
releases of gas for a period greater than 24 hours if the operator presents
information that shows the necessity for the release. An operator may continue
the release by flaring or by venting of the gas, if flaring is not required for
safety reasons or by other regulation, beyond the initial 24-hour period
pending commission consideration of a request for an administrative exception
under subsection (h) of this section. The request for exception is to be filed
with the commission by the end of the next full business day following the
first 24 hours of the release unless the deadline is extended by the commission
or the commission's delegate. The following are examples of situations that may
qualify for an exception under this paragraph:
(A) gas gathering system or gas plant
construction, repairs or maintenance;
(B) gas plant turnaround; or
(C) emergency situations.
(h) Exceptions. The
commission or the commission's delegate may administratively grant an exception
authorized by this section provided that the requirements of this subsection
are met.
(1) The request for an exception
shall be accompanied by the fee required by §
3.78(b)(5) of
this title (relating to Fees and Financial Security Requirements).
(2) An administrative exception shall not
exceed a period of 180 days.
(3)
The 180-day limitation shall not apply for volumes of gas less than or equal to
50 mcf of hydrocarbon gas per day for each gas well, commission-designated oil
lease, or commingled vent or flare point.
(4) Requests for exceptions for more than 180
days and for volumes greater than 50 mcf of hydrocarbon gas per day shall be
granted only in a final order signed by the commission.
(5) A request for an exception to cover an
operating emergency, system upset, or other unplanned condition may be
submitted by facsimile transmission or other means, provided that an original
signed request is accompanied by the fee required by subsection (h)(1) of this
section and is received by the commission within three working days of the
facsimile transmission request.
(6)
Exceptions shall be issued to the operator of a gas well or
commission-designated oil lease or commingling point for commingled operations
and to the operator of a processing plant or other facility subject to this
section.
(7) Exceptions are not
transferable upon a change of operatorship. Operators shall have 90 days from
the date of commission approval of a transfer of operatorship to review
existing exceptions to this section and, if continuation of the exception is
needed, to make application for a new exception. The existing exception and
existing authority shall remain in effect during the 90-day review period. If
an operator files an application and fee for a new exception before the 90-day
review period expires and the 90-day review period expires before the
commission acts on the application, the operator is authorized to continue to
operate under the existing authority pending final commission action on the
application.
(8) One application
for exception to the requirements of this section may be filed for multiple
releases from gas wells, commission-designated oil leases, gas gathering
systems, gas compressors or other gas handling facilities when the release of
gas is the result of a full or partial shut-down of a gas gathering system, gas
plant, gas compressor or other gas handling facility under subsection (f)(1)(C)
or (g)(1). Each well, lease or facility must be clearly identified by the
applicant and a single fee paid under §
3.78(b)(5) of
this title (relating to Fees and Financial Security Requirements).
(i) Renewal and Amendment of
Exceptions.
(1) The commission or the
commission's delegate may renew an exception authorized by this section. An
administrative renewal by the commission's delegate may not exceed a period of
180 days.
(2) A renewal shall be
based upon a showing by the operator of a well, lease, or other facility
subject to this section, that the conditions for which the initial exception or
latest renewal was granted have not significantly changed despite a good-faith
attempt by the operator to direct the gas to or utilize the gas for purposes
and uses authorized by law.
(3) An
operator shall file an application and fee for renewal of an exception with the
commission 21 days prior to expiration of the existing exception authority. The
request for renewal shall be accompanied by the fee required by §
3.78(b)(5) of
this title (relating to Fees and Financial Security Requirements).
(4) If an operator files an application,
accompanied by the required fee, for renewal of an existing exception to the
requirements of this section at least 21 days before the expiration of the
existing exception and the existing authority expires before the commission
acts on the application, the operator is authorized to continue to operate
under the existing authority pending final commission action on the
application.
(5) The request by an
operator to amend an existing exception will require a new application for
exception if the amendment will result in a material change of the previously
granted exception.
(6) Material
changes include, but are not limited to, the following:
(A) Change of operator of the well or
facility subject to this section; and
(B) An increase in volume of gas to be
released or an extension of the duration of an exception greater than that
provided for in subsection (h) of this section.
(j) Opportunity for hearing.
(1) An operator may request a hearing on any
application for an exception or exception renewal required by this
section.
(2) An operator may
request a hearing on any request for administrative approval of an exception or
exception renewal that has been denied by the commission or the commission's
delegate.
Notes
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