1. (a) Permit required. A person may not begin drilling or operating an anthropogenic CO₂ injection well for geologic storage or constructing or operating a geologic storage facility regulated under this subchapter without first obtaining the necessary permit(s) from the Commission.

2. (b) Permit amendment.

   1. (1) An operator must file an application to amend an existing geologic storage facility permit with the director:

      1. (A) prior to expanding the areal extent of the storage reservoir;
      2. (B) prior to increasing the permitted injection pressure;
      3. (C) prior to adding injection wells; or
      4. (D) at any time that conditions at the geologic storage facility materially deviate from the conditions specified in the permit or permit application.
   2. (2) Compliance with plan amendments required by this subchapter does not necessarily constitute a material deviation in conditions requiring an amendment of the permit.

3. (c) Permit transfer. An operator may transfer its geologic storage facility permit to another operator if the requirements of this subsection are met. A new operator may not assume operation of the geologic storage facility without a valid permit.

   1. (1) Notice. An applicant must submit written notice of an intended permit transfer to the director at least 45 days prior to the date the transfer of operations is proposed to take place, unless such action could trigger U. S. Securities and Exchange Commission fiduciary and insider trading restrictions and/or rules.

      1. (A) The applicant's notice to the director must contain:

         1. (i) the name and address of the person to whom the geologic storage facility will be sold, assigned, transferred, leased, conveyed, exchanged, or otherwise disposed;
         2. (ii) the name and location of the geologic storage facility and a legal description of the land upon which the storage facility is situated;
         3. (iii) the date that the sale, assignment, transfer, lease conveyance, exchange, or other disposition is proposed to become final; and
         4. (iv) the date that the transferring operator will relinquish possession as a result of the sale, assignment, transfer, lease conveyance, exchange, or other disposition.

      2. (B) The person acquiring a geologic storage facility, whether by purchase, transfer, assignment, lease, conveyance, exchange, or other disposition, must notify the director in writing of the acquisition as soon as it is reasonably possible but not later than five business days after the date that the acquisition of the geologic storage facility becomes final. The director may not approve the transfer of a geologic storage facility permit until the new operator provides all of the following:

         1. (i) the name and address of the operator from which the geologic storage facility was acquired;
         2. (ii) the name and location of the geologic storage facility and a description of the land upon which the geologic storage facility is situated;
         3. (iii) the date that the acquisition became or will become final;
         4. (iv) the date that possession was or will be acquired; and
         5. (v) the financial assurance required by this subchapter.
   2. (2) Evidence of financial responsibility. The operator acquiring the permit must provide the director with evidence of financial responsibility satisfactory to the director in accordance with §5.205 of this title (relating to Fees, Financial Responsibility, and Financial Assurance).
   3. (3) Transfer of responsibility. An operator remains responsible for the geologic storage facility until the director approves in writing the sale, assignment, transfer, lease, conveyance, exchange, or other disposition and the person acquiring the storage facility complies with all applicable requirements.

4. (d) Modification, cancellation, or suspension of a geologic storage facility permit.

   1. (1) General. The director may modify, suspend, or cancel a geologic storage facility permit after notice and opportunity for hearing under any of the following circumstances:

      1. (A) There is a material change in conditions in the operation of the geologic storage facility, or there are material deviations from the information originally furnished to the director. A change in conditions at a facility that does not affect the ability of the facility to operate without causing an unauthorized release of CO₂ and/or formation fluids is not considered to be material;
      2. (B) Underground sources of drinking water are likely to be endangered as a result of the continued operation of the geologic storage facility;
      3. (C) There are substantial violations of the terms and provisions of the permit or of applicable Commission orders or regulations;
      4. (D) The operator misrepresented material facts during the permit application or issuance process; or
      5. (E) Fluids are escaping or are likely to escape from the injection zone.
   2. (2) Emergency shutdown. Notwithstanding the provisions of paragraph (1) of this subsection, in the event of an emergency that threatens endangerment to underground sources of drinking water or to life or property, or an imminent threat of uncontrolled release of CO₂, the director may immediately order suspension of the operation of the geologic storage facility until a final order is issued pursuant to a hearing, if any.

Source Note:The provisions of this §5.202 adopted to be effective December 20, 2010, 35 TexReg 11202.