§ 192.12 - Underground natural gas storage facilities.

§ 192.12 Underground natural gas storage facilities.

Cross Reference

Link to an amendment published at 85 FR 8126, Feb. 12, 2020.

Underground natural gas storage facilities must meet the following requirements:

(a) Each underground natural gas storage facility

(UNGSFs), as defined in § 192.3, are not subject to any requirements of this part aside from this section.

(a) Salt cavern UNGSFs.

(1) Each UNGSF that uses a solution-mined salt cavern

reservoir

for natural gas storage and was constructed after

July 18, 2017

March 13, 2020, must meet all

requirements and recommendations

the provisions of API RP 1170 (incorporated by reference, see § 192.7), the provisions of section 8 of API RP 1171 (incorporated by reference, see § 192.

(b) Each underground natural gas storage facility

7) that are applicable to the physical characteristics and operations of a solution-mined salt cavern UNGSF, and paragraphs (c) and (d) of this section prior to commencing operations.

(2) Each UNGSF that uses a solution-mined salt cavern

reservoir

for natural gas storage

including those constructed not later than

and was constructed between July 18, 2017, and March 13, 2020, must meet all the

operations, maintenance, integrity demonstration and verification, monitoring, threat and hazard identification, assessment, remediation, site security, emergency response and preparedness, and recordkeeping requirements and recommendations of API RP 1170,

provisions of API RP 1170 (incorporated by reference, see § 192.7) and paragraph (c) of this section prior to commencing operations, and must meet all the provisions of section 8 of API RP 1171 (incorporated by reference, see § 192.7) that are applicable to the physical characteristics and operations of a solution-mined salt cavern UNGSF, and paragraph (d) of this section, by March 13, 2021.

(3) 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 § 192.7), sections 9, 10, and 11, and paragraph (c) of this section, by January 18, 2018, and must meet all provisions of section 8 of API RP 1171 (incorporated by reference, see § 192.7)

by January 18, 2018. (c) Each underground natural gas storage facility

that are applicable to the physical characteristics and operations of a solution-mined salt cavern UNGSF, and paragraph (d) of this section, by March 13, 2021.

(b) Depleted hydrocarbon and aquifer reservoir UNGSFs.

(1) 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

requirements and recommendations

provisions of API RP 1171 (incorporated by reference, see § 192.7)

. (d) Each underground natural gas storage facility

, and paragraphs (c) and (d) of this section, prior to commencing operations.

(2) Each UNGSF that uses a depleted hydrocarbon reservoir or an aquifer reservoir for natural gas storage

, including those constructed not later than

and was constructed on or before July 18, 2017, must meet the

operations, maintenance, integrity demonstration and verification, monitoring, threat and hazard identification, assessment, remediation, site security, emergency response and preparedness, and recordkeeping requirements and recommendations

provisions of API RP 1171 (incorporated by reference, see § 192.7), sections 8, 9, 10, and 11

(incorporated by reference, see § 192.7)

, and paragraph (c) of this section, by January 18, 2018, and must meet all provisions of paragraph (d) of this section by March 13, 2021.

(

e) Operators of underground gas storage facilities must establish and follow

c) 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

emergencies implementing the requirements of API RP 1170 and API RP 1171, as required under this section, including the effective dates as applicable, and incorporate such procedures into their written procedures for operations, maintenance, and emergencies established pursuant to § 192.605.

(f) With respect to the incorporation by reference of API RP 1170 and API RP 1171 in this section, the non-mandatory provisions (i.e., provisions containing the word “should” or other non-mandatory language) are adopted as mandatory provisions under the authority of the pipeline safety laws except when the operator includes or references written technical justifications in its program or procedural manual, described in paragraph (a)(5) of this section, as to why compliance with a provision of the recommended practice is not practicable and not necessary for safety with respect to specified underground storage facilities or equipment. The justifications for any deviation from any provision of API RP 1170 and API RP 1171 must be technically reviewed and documented by a subject matter expert to ensure there will be no adverse impact on design, construction, operations, maintenance, integrity, emergency preparedness and response, and overall safety and must be dated and approved by a senior executive officer, vice president, or higher office with responsibility of the underground natural gas storage facility. An operator must discontinue use of any variance where PHMSA determines and provides notice that the variance adversely impacts design, construction, operations, maintenance, integrity, emergency preparedness and response, or overall safety.

[Amdt. 192-122, 81 FR 91873, Dec. 19, 2016

emergency preparedness and response activities under paragraphs (a) and (b) 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.

(d) Integrity management program -

(1) Integrity management program elements. The integrity management program for each UNGSF under this paragraph (d) must consist, at a minimum, of a framework developed under API RP 1171 (incorporated by reference, see § 192.7), 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:

(i) A plan for developing and implementing each program element to meet the requirements of this section;

(ii) An outline of the procedures to be developed;

(iii) The roles and responsibilities of UNGSF staff assigned to develop and implement the procedures required by this paragraph (d);

(iv) A plan for how staff will be trained in awareness and application of the procedures required by this paragraph (d);

(v) Timelines for implementing each program element, including the risk analysis and baseline risk assessments; and

(vi) A plan for how to incorporate information gained from experience into the integrity management program on a continuous basis.

(2) 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% 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 § 192.7), 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.

(3) Integrity management re-assessment intervals. The operator must determine the appropriate interval for risk assessments under API RP 1171 (incorporated by reference, see § 192.7), subsection 8.7.1, and this paragraph (d) 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.

(4) 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 § 192.7), section 8 (“Risk Management for Gas Storage Operations”), and this paragraph (d). The operator must also maintain, for the useful life of the UNGSF, records that demonstrate compliance with the requirements of this paragraph (d). 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.

[Amdt. 192-126, 85 FR 8126, Feb. 12, 2020]