Underground Natural Gas Storage Facilities [49 CFR 192.12]

(A)A. Underground natural gas storage facilities (UNGSFs), as defined in §503, are not subject to any requirements of this Part aside from this Section.#

(1)1. Salt Cavern UNGSFs [49 CFR 192.12(a)]#

(a)a. Each UNGSF that uses a solution-mined salt cavern for natural gas storage and was constructed after March 13, 2020, must meet all the provisions of API RP 1170 (incorporated by reference, see §507), the provisions of section 8 of API RP 1171 (incorporated by reference, see §507) that are applicable to the physical characteristics and operations of a solution-mined salt cavern UNGSF, and Paragraphs A.3 and A.4 of this Section prior to commencing operations. [49 CFR 192.12(a)(1)]#

(b)b. Each UNGSF that uses a solution-mined salt cavern for natural gas storage and was constructed between July 18, 2017, and March 13, 2020, must meet all the provisions of API RP 1170 (incorporated by reference, see §507) and Paragraph A.3 of this Section prior to commencing operations, and must meet all the provisions of section 8 of API RP 1171 (incorporated by reference, see §507) that are applicable to the physical characteristics and operations of a solution-mined salt cavern UNGSF, and Paragraph A.4 of this Section, by March 13, 2021. [49 CFR 192.12(a)(2)]#

(c)c. Each UNGSF that uses a solution-mined salt cavern for natural gas storage and was constructed on or before July 18, 2017, must meet the provisions of API RP 1170 (incorporated by reference, see §507), sections 9, 10, and 11, and Paragraph A.3 of this Section, by January 18, 2018, and must meet all provisions of section 8 of API RP 1171 (incorporated by reference, see §507) that are applicable to the physical characteristics and operations of a solution-mined salt cavern UNGSF, and Paragraph A.4 of this Section, by March 13, 2021. [49 CFR 192.12(a)(3)]#

(2)2. Depleted Hydrocarbon and Aquifer Reservoir UNGSFs [49 CFR 192.12(b)]#

(a)a. Each UNGSF that uses a depleted hydrocarbon reservoir or an aquifer reservoir for natural gas storage and was constructed after July 18, 2017, must meet all provisions of API RP 1171 (incorporated by reference, see §507), and Paragraphs A.3 and A.4 of this Section, prior to commencing operations. [49 CFR 192.12(b)(1)]#

(b)b. Each UNGSF that uses a depleted hydrocarbon reservoir or an aquifer reservoir for natural gas storage and was constructed on or before July 18, 2017, must meet the provisions of API RP 1171 (incorporated by reference, see §507), sections 8, 9, 10, and 11, and Paragraph A.3 of this Section, by January 18, 2018, and must meet all provisions of Paragraph A.4 of this Section by March 13, 2021. [49 CFR 192.12(b)(2)]#

(3)3. Procedural Manuals. Each operator of a UNGSF must prepare and follow for each facility one or more manuals of written procedures for conducting operations, maintenance, and emergency preparedness and response activities under Paragraphs A.1 and A.2 of this Section. Each operator must keep records necessary to administer such procedures and review and update these manuals at intervals not exceeding 15 months, but at least once each calendar year. Each operator must keep the appropriate parts of these manuals accessible at locations where UNGSF work is being performed. Each operator must have written procedures in place before commencing operations or beginning an activity not yet implemented. [49 CFR 192.12(c)]#

(4)4. Integrity Management Program [49 CFR 192.12(d)]#

(a)a. Integrity Management Program Elements. The integrity management program for each UNGSF under this Paragraph A.4 must consist, at a minimum, of a framework developed under API RP 1171 (incorporated by reference, see §507), section 8 ("Risk Management for Gas Storage Operations"), and that also describes how relevant decisions will be made and by whom. An operator must make continual improvements to the program and its execution. The integrity management program must include the following elements: [49 CFR 192.12(d)(1)]#

(i)i. a plan for developing and implementing each program element to meet the requirements of this Section; [49 CFR 192.12(d)(1)(i)]#

(ii)ii. an outline of the procedures to be developed; [49 CFR 192.12(d)(1)(ii)]#

(iii)iii. the roles and responsibilities of UNGSF staff assigned to develop and implement the procedures required by this Paragraph A.4; [49 CFR 192.12(d)(1)(iii)]#

(iv)iv. a plan for how staff will be trained in awareness and application of the procedures required by this Paragraph A.4; [49 CFR 192.12(d)(1)(iv)]#

(v)v. timelines for implementing each program element, including the risk analysis and baseline risk assessments; and [49 CFR 192.12(d)(1)(v)]#

(vi)vi. a plan for how to incorporate information gained from experience into the integrity management program on a continuous basis. [49 CFR 192.12(d)(1)(vi)]#

(b)b. Integrity Management Baseline Risk-Assessment Intervals. No later than March 13, 2024, each UNGSF operator must complete the baseline risk assessments of all reservoirs and caverns, and at least 40 percent of the baseline risk assessments for each of its UNGSF wells (including wellhead assemblies), beginning with the highest-risk wells, as identified by the risk analysis process. No later than March 13, 2027, an operator must complete baseline risk assessments on all its wells (including wellhead assemblies). Operators may use prior risk assessments for a well as a baseline (or part of the baseline) risk assessment in implementing its initial integrity management program, so long as the prior assessments meet the requirements of API RP 1171 (incorporated by reference, see §507), section 8, and continue to be relevant and valid for the current operating and environmental conditions. When evaluating prior risk-assessment results, operators must account for the growth and effects of indicated defects since the time the assessment was performed.49 CFR 192.12(d)(2)]#

(c)c. Integrity Management Re-Assessment Intervals. The operator must determine the appropriate interval for risk assessments under API RP 1171 (incorporated by reference, see §507), subsection 8.7.1, and this Paragraph A.4 for each reservoir, cavern, and well, using the results from earlier assessments and updated risk analyses. The re-assessment interval for each reservoir, cavern, and well must not exceed seven years from the date of the baseline assessment for each reservoir, cavern, and well.49 CFR 192.12(d)(3)]#

(d)d. Integrity Management Procedures and Recordkeeping. Each UNGSF operator must establish and follow written procedures to carry out its integrity management program under API RP 1171 (incorporated by reference, see §507), section 8 ("Risk Management for Gas Storage Operations"), and this Paragraph A.4. The operator must also maintain, for the useful life of the UNGSF, records that demonstrate compliance with the requirements of this Paragraph A.4. This includes records developed and used in support of any identification, calculation, amendment, modification, justification, deviation, and determination made, and any action taken to implement and evaluate any integrity management program element.49 CFR 192.12(d)(4)]#

AUTHORITY NOTE: Promulgated in accordance with R.S. 30:501 et seq.#

HISTORICAL NOTE: Promulgated by the Department of Natural Resources, Office of Conservation, LR 45:69 (January 2019), amended LR 46:1580 (November 2020).#