1. (a) No CNG container shall be placed into CNG service or an installation operated or used in CNG service until the requirements of this section, as applicable, are met and the facility is in compliance with all applicable Regulations for Compressed Natural Gas and statutes, in addition to any applicable requirements of the municipality or the county where an installation is or will be located.

2. (b) Aggregate storage capacity in excess of 240 standard cubic feet water volume. For installations with an aggregate storage capacity in excess of 240 cubic feet water volume, the licensee shall submit the following to the Commission at least 30 days prior to construction:

   1. (1) CNG Form 1500;
   2. (2) CNG Form 1500A with all applicable documents;
   3. (3) a plat drawing from the appropriate appraisal district identifying the facility's property boundaries;

   4. (4) a site plan of sufficient scale that identifies:

      1. (A) the location, types, and sizes of all containers already on site or proposed to be on site;
      2. (B) the distances from the containers and material handling equipment to the property lines, buildings, and railroad, pipeline, or roadway rights-of-way; and
      3. (C) any known potential hazards.
   5. (5) a nonrefundable fee of $50 for the initial application. A nonrefundable fee of $30 shall be required for any resubmission.
3. (c) The Commission shall notify the applicant in writing outlining its findings. If the application is administratively denied, the applicant may modify the submission and resubmit it or may request a hearing in accordance with the general rules of practice and procedure of the Railroad Commission of Texas in 16 TAC Chapter 1.

4. (d) If the Commission finds after a public hearing that the proposed installation complies with the Regulations for Compressed Natural Gas and the statutes of the State of Texas, and does not constitute a danger to the public health, safety, and welfare, the Commission shall issue an interim approval order. The construction of the installation and the setting of the container shall not proceed until the applicant has received written notification of the interim approval order. Any interim approval order shall include a provision that such approval may be suspended or revoked if:

   1. (1) the applicant has introduced CNG into the system prior to final approval; or
   2. (2) a physical inspection of the installation indicates that it is not installed in compliance with the submitted plat drawing for the installation, the Regulations for Compressed Natural Gas, or the statutes of the State of Texas; or
   3. (3) the installation constitutes a danger to the public health, safety, and welfare.
5. (e) If a CNG stationary installation, equipment, or appurtenances not specifically covered by the Regulations for Compressed Natural Gas has been or will be installed, the Commission shall apply and require any reasonable safety provisions to ensure the CNG installation is safe for CNG service. If the affected entity disagrees with the Commission's determination, the entity may request a hearing. The installation shall not be placed in CNG operation until the Commission has determined the installation is safe for CNG service.

6. (f) Aggregate storage capacity of less than 240 standard cubic feet water volume.

   1. (1) Within 10 calendar days following the completion of container installation, the licensee shall submit CNG Form 1501 to the Commission stating:

      1. (A) the installation fully complies with the statutes and the Regulations for Compressed Natural Gas;
      2. (B) all necessary CNG licenses and certificates have been issued; and
      3. (C) the date the installation has been placed in CNG service.
   2. (2) Pay a nonrefundable fee of $10 for each ASME container or DOT cylinder cascade listed on the form. A nonrefundable fee of $20 shall be required for any resubmission.
7. (g) Notice of complete or incomplete form. The Commission shall review all applications within 21 business days of receipt of all required information and shall notify the applicant in writing of any deficiencies.

8. (h) Expiration of application; extension.

   1. (1) When an applicant is notified of an incomplete CNG Form 1500, the applicant has 120 calendar days from the date of the notification letter to resubmit the corrected application or the application will expire. After 120 days, a new application shall be filed should the applicant wish to reactivate commission review of the proposed installation.
   2. (2) If the applicant requests an extension of the 120-day time period in writing, postmarked or physically delivered to the Commission before the expiration date, the application may be renewed for up to 90 days as determined by the Commission.
   3. (3) If the subject installation is not completed within one year from the date of the Commission's completed review, the applicant shall resubmit the application for the Commission's review.

9. (i) Physical inspection of stationary installations.

   1. (1) Aggregate storage capacity in excess of 240 standard cubic feet water volume. The applicant shall notify the Commission when the installation is ready for inspection. If the Commission does not physically inspect the facility within 30 calendar days of receipt of notice that the facility is ready for inspection, the applicant may operate the facility conditionally until the initial complete inspection is made. If any safety rule violations exist at the time of the initial inspection, the applicant may be required to cease CNG operation until the applicant corrects the violations.
   2. (2) Aggregate storage capacity of less than 240 standard cubic feet water volume. After receipt of CNG Form 1501, the Commission shall conduct an inspection as soon as possible to verify the installation described complies with the Regulations for Compressed Natural Gas. The applicant may operate the facility prior to inspection if the facility fully complies with the Regulations for Compressed Natural Gas. If any CNG statute or safety rule violations exist at the time of the initial inspection at a commercial installation, the Commission may immediately remove the subject container, including any piping, appliances, appurtenances, or equipment connected to it from CNG service until the applicant corrects the violations.
10. (j) Material variances. If the Commission determines the completed installation varies materially from the application originally accepted, the applicant shall correct the variance and notify the Commission of the correction of the variance or resubmit the application. The Commission's review of such resubmitted application shall comply with the procedure described in this section.
11. (k) In the event an applicant has requested an inspection and the Commission inspection identifies violations requiring modifications by the applicant, the Commission may assess an inspection fee to cover the costs associated with any additional inspection, including mileage and per diem rates set by the legislature.

12. (l) Appurtenances and equipment.

    1. (1) All appurtenances and equipment placed into CNG service shall be listed by a nationally recognized testing laboratory such as Underwriters Laboratory (UL), Factory Mutual (FM), American Gas Association (AGA), or Canadian Gas Association (CGA), or such other laboratories approved by the Commission unless:

       1. (A) it is specifically prohibited for use by another section of the Regulations for Compressed Natural Gas; or
       2. (B) there is no test specification or procedure developed by the testing laboratory for the appurtenance or equipment.
    2. (2) Appurtenances and equipment that cannot be listed but are not prohibited for use by the Regulations for Compressed Natural Gas shall be acceptable for CNG service provided the appurtenances and equipment are installed in compliance with the applicable Regulations for Compressed Natural Gas.
    3. (3) The licensee or operator of the appurtenances or equipment shall maintain documentation sufficient to substantiate any claims made regarding the safety of any valves, fittings, and equipment and shall, upon request, furnish copies to the Commission.
    4. (4) Compliance under this section does not ensure conformity with other state and federal regulations, such as those of the Texas Natural Resource Conservation Commission.

Source Note:The provisions of this §13.25 adopted to be effective November 15, 1990, 15 TexReg 5936; amended to be effective October 15, 1993, 18 TexReg 6456; amended to be effective August 30, 1999, 24 TexReg 6733; amended to be effective October 22, 2001, 26 TexReg 8342.