Part 1. RAILROAD COMMISSION OF TEXAS

Chapter 13. REGULATIONS FOR COMPRESSED NATURAL GAS (CNG)

The Railroad Commission of Texas proposes amendments to §§13.2 - 13.4, 13.25, 13.35, 13.36, 13.38, 13.61 - 13.63, 13.67 - 13.70, 13.73, 13.75, 13.92 - 13.94, 13.102, 13.141, and 13.183, relating to Retroactivity; Definitions; CNG Report Forms; Filings Required for Stationary CNG Installations; Application for an Exception to a Safety Rule; Report of CNG Incident/Accident; Removal from CNG Service; Licenses, Related Fees, and Licensing Requirements; Insurance Requirements; Qualifications as Self-Insured; Changes in Ownership and/or Form of Dealership; Dealership Name Change; Registration and Transfer of CNG Transports and CNG Form 1004 Decal or Letter of Authority; Examination Requirements and Renewals; Other Fees for Employee Transfer; Franchise Tax Certification and Assumed Name Certificate; System Component Qualification; General; Location of Installations; Installation of Electrical Equipment; System Testing; and System Component Qualifications. The Commission also proposes the repeal of §13.80, relating to CNG Continuing Education Requirements, and new §13.80, relating to Requests for CNG Classes.

The Commission proposes the amendments in part as a result of House Bill (HB) 1162, 79th Legislature, Regular Session (2005). HB 1162 amended Texas Natural Resources Code, §116.034 to provide that the Commission may adopt rules establishing training and seminar attendance requirements for persons required or who wish to be licensed or registered to perform compressed natural gas (CNG) activities, but is not required to do so. Additional proposed amendments to these rules are non-substantive and include changes in wording, punctuation, or organization to provide clarity and accuracy.

The specific rule affected by HB 1162 is §13.80, relating to CNG Continuing Education Requirements, which the Commission proposes to repeal and replace with proposed new §13.80, Requests for CNG Classes. Current §13.80 provides for continuing education requirements for persons holding a CNG license and their representatives. In general, licensees and their representatives were to attend a continuing education class once every four years. Due to budget and staff limitations, the Commission has no CNG continuing education classes, and because as of January 2006 there are only 33 CNG licensees and about 85 CNG individual certificate holders, the Commission finds that its training and continuing education resources are more efficiently and effectively employed elsewhere.

The Commission offers training courses on CNG activities under the Commission's jurisdiction through the Alternative Fuels Research and Education Division (AFRED). Under the wording in proposed new §13.80, requests for Commission staff to conduct a CNG class should be submitted to AFRED, which may schedule and conduct the class at its discretion. The non-refundable fee is $250 for a class where no overnight expenses are incurred by AFRED staff, or $500 if overnight expenses are incurred. AFRED may waive the fee in cases where the Commission recovers the cost of the class from another source, such as a grant.

The Commission proposes amendments to §13.70, relating to Examination Requirements and Renewals, to make the rule and procedures consistent with the same procedures for the Commission's liquefied petroleum gas (LP-gas) certification requirements. In addition, some of the proposed amendments clarify that AFRED is the Commission division that offers the examinations, as shown in subsection (a)(4). In proposed amendments to subsection (a)(5), AFRED will notify individuals of their examination results within 15 days, rather than 30 days of the date of the examination. The only change proposed to the Table in §13.70 is the correction of the annual renewal fee amount, which is $25; the fee was changed in a previous rulemaking and the change make the table match the wording in subsection (d)(2). Other proposed amendments in §13.70 correct references to AFRED and to the License and Permit Section of the Gas Services Division.

The Commission proposes other amendments that are non-substantive and result in no changes to current requirements or procedures. In §13.2, the Commission proposes to delete a reference to the former LP-Gas Section. In §13.3, relating to Definitions, the Commission proposes a new definition for "AFRED." The Commission proposes to delete definitions for "auxiliary engine" and "filled by pressure" because those terms are not used in Chapter 13. The Commission proposes to add the definition of "Company representative"; the wording matches the definition of the same term in the liquefied natural gas (LNG) rules. The Commission proposes to change the definition of "dispensing station" to "dispensing area or dispensing installation," which are the terms actually used in the chapter. The Commission proposes to delete the definition of "Division" because CNG activities are divided among the AFRED, Gas Services, and Safety Divisions; in each substantive rule that refers to "a division," the specific division is noted. The Commission proposes to add a definition of "pressure filled" to replace the definition for "filled by pressure," which the Commission proposes to delete. The remaining amendments proposed in this rule renumber the unchanged definitions as necessary.

Proposed amendments in §13.4, relating to CNG Report Forms, delete an outdated reference to a Commission section.

The Commission proposes amendments in §§13.25, 13.35, 13.36, 13.38, 13.61 - 13.63, 13.67 - 13.69, 13.75, 13.92 - 13.94, 13.102, 13.141, and 13.183 to correct citations to other rules, chapters, or agencies; correct the Commission division or office; make the rule wording consistent with the Commission's LP-gas or LNG rules; and update the Tables to the current formats used by the Commission in other rules. The Commission proposes minor changes in the table in §13.62, such as a revised title, correction of the name of the Texas Workforce Commission, deletion of some obsolete references, and the combination of the text in subsections (k) and (l) into a single subsection (k) and the deletion of subsection (l) to eliminate redundant wording. In §13.63, the Commission proposes to delete one table because it duplicates a table in §13.62 and is unnecessary; and to combine the text of subsections (g) and (h) into a single subsection (g) and delete subsection (h) to eliminate redundant wording. The Commission proposes changes in the tables in §§13.93, 13.94, and 13.102 to change the titles, make some minor formatting changes, and correct spelling.

In §13.73, relating to Other Fees for Employee Transfers, the Commission proposes to correct the title of the rule and to add a reference to AFRED and to delete the requirement that the CNG Form 1016A be received by the Commission within a specific time.

Dan Kelly, Director, Alternative Fuels Research and Education Division, has determined that for each year of the first five years the proposed amendments, repeal, and new section are in effect there will be no fiscal implications for state or local government as a result of enforcing or administering the amendments, repeal, and new section.

Mr. Kelly has also determined that for each year of the first five years the amendments, repeal, and new section are in effect the public benefit anticipated as a result of enforcing the amendments will be the better understanding of the rule requirements for the CNG industry and the general public. There is no anticipated economic cost to individuals or small businesses required to comply with the proposed amendments, repeal, or new section; a request for a CNG class, which may incur a $250 or $500 fee, is voluntary.

Texas Government Code, §2006.002 requires a state agency considering adoption of a rule that would have an adverse economic effect on small businesses or micro-businesses to reduce the effect if doing so is legal and feasible considering the purpose of the statutes under which the rule is to be adopted. Mr. Kelly has determined that there is no adverse economic effect on small businesses or micro-businesses, because the amendments proposed in this rulemaking are non-substantive and do not change any requirements for CNG licensees and their representatives, certificate holders, or ultimate consumers.

Comments on the proposal may be submitted to Rules Coordinator, Office of General Counsel, Railroad Commission of Texas, P.O. Box 12967, Austin, Texas 78711-2967; online at www.rrc.state.tx.us/rules/commentform.html; or by electronic mail to rulescoordinator@rrc.state.tx.us. The Commission will accept comments for 30 days after publication in the Texas Register . The Commission encourages all interested persons to submit comments no later than the deadline. The Commission cannot guarantee that comments submitted after the deadline will be considered. For further information, call Mr. Thomas Petru at (512) 463-6930. The status of Commission rulemakings in progress is available at www.rrc.state.tx.us/rules/proposed.html.

Subchapter A. SCOPE AND DEFINITIONS

16 TAC §§13.2 - 13.4

The Commission proposes the amendments under Texas Natural Resources Code, §116.012, which authorizes the Commission to adopt rules and standards relating to liquefied natural gas activities to protect the health, welfare, and safety of the general public; and §116.034, as amended by HB 1162, 79th Legislature, Regular Session (2005).

Statutory authority: Texas Natural Resources Code, §116.012 and §116.034.

Cross-reference to statute: Texas Natural Resources Code, Chapter 116.

Issued in Austin, Texas on February 28, 2006.

§13.2.Retroactivity.

Unless otherwise stated, the regulations in this chapter [ for the compressed natural gas of the LP-Gas Section, Gas Services Division ] are not retroactive. Any installation of a CNG system shall meet the requirements [ of the rules and regulations ] of this chapter at the time of installation.

§13.3.Definitions.

The following words and terms, when used in this chapter, shall have the following meanings, unless the context clearly indicates otherwise.

(1) AFRED--Alternative Fuels Research and Education Division.

(2) [ (1) ] ANSI--American National Standards Institute.

(3) [ (2) ] Approved--Authorized by a [ the ] Division or the Commission.

(4) [ (3) ] ASME--American Society of Mechanical Engineers.

(5) [ (4) ] ASME Code--ASME Boiler and Pressure Vessel Code.

(6) [ (5) ] ASTM--American Standard Testing Material.

(7) [ (6) ] Automatic dispenser--A CNG dispenser which is operated by a member of the general public and which requires transaction authorization.

[ (7) Auxiliary engine--An engine which is mounted on a vehicle but used for purposes other than propelling the vehicle.]

(8) - (15) (No change.)

(16) Company representative--An owner or employee of a licensee designated by that licensee to take any required examinations and to actively supervise CNG operations of the licensee.

(17) [ (16) ] Compressed natural gas--Natural gas which is a mixture of hydrocarbon gases and vapors consisting principally of methane (CH ₄ ) in gaseous form that is compressed and used, stored, sold, transported, or distributed for use by or through a CNG system.

(18) [ (17) ] Container--A pressure vessel cylinder or cylinders permanently manifolded together used to store CNG.

(19) [ (18) ] Cylinder service valve--A hand-wheel operated valve connected directly to a CNG cylinder.

(20) [ (19) ] Dispensing area or dispensing installation [ station ]--A CNG installation that dispenses CNG from any source by any means into fuel supply cylinders installed on vehicles or into portable cylinders.

[ (20) Division--The Director of the Gas Services Division of the Railroad Commission of Texas or the director's delegate.]

(21) DOT--United States Department of Transportation.

[ (22) Filled by pressure--A method of transferring CNG into cylinders by using pressure differential.]

(22) [ (23) ] Flexible metal hose--Metal hose made from continuous tubing that is corrugated for flexibility and, if used for pressurized applications, has an external wire braid.

(23) [ (24) ] Fuel supply cylinder--A cylinder mounted upon a vehicle for storage of CNG as fuel supply to an internal combustion engine.

(24) [ (25) ] Interim approval order--The authority issued by the Railroad Commission of Texas following a public hearing allowing construction of a CNG installation.

(25) [ (26) ] Location--A site operated by a CNG licensee at which the licensee carries on an essential element of its CNG activities, but where the activities of the site alone do not qualify the site as an outlet.

(26) [ (27) ] Manifold--The assembly of piping and fittings used to connect cylinders.

(27) [ (28) ] Mass transit vehicle--Any vehicle which is owned or operated by a political subdivision of a state, city, or county and primarily used in the conveyance of the general public.

(28) [ (29) ] Metallic hose--Hose in which the strength of the hose depends primarily on the strength of metallic parts, including liners or covers.

(29) [ (30) ] Mobile fuel container--A CNG container mounted on a vehicle to store CNG as the fuel supply for uses other than motor fuel.

(30) [ (31) ] Mobile fuel system--A CNG system which supplies natural gas fuel to an auxiliary engine other than the engine used to propel the vehicle or for other uses on the vehicle.

(31) [ (32) ] Motor fuel container--A CNG container mounted on a vehicle to store CNG as the fuel supply to an engine used to propel the vehicle.

(32) [ (33) ] Motor fuel system--A CNG system excluding the container which supplies CNG to an engine used to propel the vehicle.

(33) [ (34) ] Motor vehicle--A self-propelled vehicle licensed for highway use or used on a public highway.

(34) [ (35) ] Outlet--A site operated by a CNG licensee at which the business conducted materially duplicates the operations for which the licensee is initially granted a license.

(35) [ (36) ] Person--An individual, sole proprietor, partnership, firm, joint venture, association, corporation, or any other business entity, a state agency or institution, county, municipality, school district, or other governmental subdivision, or licensee.

(36) [ (37) ] Point of transfer--The point where the fueling connection is made.

(37) Pressure-filled--A method of transferring CNG into cylinders by using pressure differential.

(38) - (49) (No change.)

§13.4.CNG Forms.

Under the provisions of the Texas Natural Resources Code, Chapter 116, the Railroad Commission of Texas has designated [ adopted ] the following forms for use [ by the LP-Gas Section, Gas Services Division ]:

(1) - (30) (No change.)

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State on February 28, 2006.

TRD-200601164

Mary Ross McDonald

Managing Director

Railroad Commission of Texas

Earliest possible date of adoption: April 16, 2006

For further information, please call: (512) 475-1295

16 TAC §§13.25, 13.35, 13.36, 13.38

The Commission proposes the amendments under Texas Natural Resources Code, §116.012, which authorizes the Commission to adopt rules and standards relating to liquefied natural gas activities to protect the health, welfare, and safety of the general public; and §116.034, as amended by HB 1162, 79th Legislature, Regular Session (2005).

Statutory authority: Texas Natural Resources Code, §116.012 and §116.034.

Cross-reference to statute: Texas Natural Resources Code, Chapter 116.

Issued in Austin, Texas on February 28, 2006.

§13.25.Filings Required for Stationary CNG Installations.

(a) - (b) (No change.)

(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 of this title (relating to Practice and Procedure) .

(d) - (k) (No change.)

(l) Appurtenances and equipment.

(1) - (3) (No change.)

(4) Compliance under this section does not ensure conformity with other state and federal regulations, such as those of the Texas Commission on Environmental Quality or its successor agencies [ Natural Resource Conservation Commission ].

§13.35.Application for an Exception to a Safety Rule.

(a) A person may apply for an exception to the provisions of this chapter by filing CNG Form 1025 along with supporting documentation and a $50 filing fee with the Safety Division (Division) [ Commission ].

(b) The application shall contain the following:

(1) (No change.)

(2) the type of relief desired, including the exception requested and any information which may assist the Division [ Commission ] in comprehending the requested exception;

(3) - (7) (No change.)

(c) Notice of the application for an exception to a safety rule.

(1) The applicant shall send a copy of CNG Form 1025 by certified mail, return receipt requested, to all affected entities as specified in paragraphs (2), (3), and (4) of this subsection on the same date on which the form is filed with or sent to the Division [ Commission ]. The applicant shall include a notice to the affected entities that any objection shall be filed with the Division [ Commission ] within 18 calendar days of the date of postmark. The applicant shall file all return receipts with the Division [ Commission ] as proof of notice.

(2) - (3) (No change.)

(4) The Division [ Commission ] may require an applicant to give notice to persons in addition to those listed in paragraphs (2) and (3) of this subsection if doing so will not prejudice the rights of any entity.

(d) Objections to the requested exception shall be in writing, filed with the Division [ at the Commission ] within 18 calendar days of the postmark of the application, and shall be based on facts that tend to demonstrate that, as proposed, the exception would have an adverse effect on public health, safety, or welfare. The Commission may decline to consider objections based solely on claims of diminished property or esthetic values in the area.

(e) The Division [ Commission ] shall review the application within 21 business days of receipt of the application. If the Division [ Commission ] does not receive any objections from any affected entities as defined in subsection (c) of this section, the director of the [ Gas Services ] Division or the director's delegate may administratively grant the exception if the director determines that the installation, as proposed, does not adversely affect the health or safety of the public. The Division [ Commission ] shall notify the applicant in writing by the end of the 21-day review period and, if approved, the installation shall be installed within one year from the date of approval. The Division [ Commission ] shall also advise the applicant at the end of the objection period as to whether any objections were received and whether the applicant may proceed. If the director of the [ Gas Services ] Division or the director's delegate denies the exception, the Division [ Commission ] shall notify the applicant in writing, outlining the reasons and any specific deficiencies. The applicant may modify the application to correct the deficiencies and resubmit the application along with a $30 resubmission fee, or may request a hearing on the matter. To be granted a hearing, the applicant shall file a written request for hearing within 14 calendar days of receiving notice of the administrative denial.

(f) A hearing shall be held when the Division [ Commission ] receives an objection as set out in subsection (d) from any affected entity, or when the applicant requests one following an administrative denial. The Division [ Commission ] shall mail the notice of hearing to the applicant and all objecting entities by certified mail, return receipt requested, at least 21 calendar days prior to the date of the hearing. Hearings will be held in accordance with the Texas Government Code, Chapter 2001, et seq., the general rules of practice and procedure of the Railroad Commission of Texas, and the Regulations for Compressed Natural Gas.

(g) - (i) (No change.)

(j) A request for an exception shall expire if it is inactive for three months after the date of the letter in which the applicant was notified by the Division [ Commission ] of an incomplete request. The applicant may resubmit an exception request.

§13.36.Report of CNG Incident/Accident.

(a) In case of an incident involving single release of compressed natural gas (CNG) during or following CNG transfer or during container transportation, or an accident at any location where CNG is the cause or is suspected to be the cause, the licensee owning, operating, or servicing the equipment or the installation shall notify the Safety Division [ LP-Gas Section ]. This notification shall be by telephone as soon as possible after the licensee has knowledge of the incident or accident. Any loss of CNG which is less than 1.0% of the gross amount delivered, stored, or withdrawn need not be reported. However, any loss occurring as a result of a pullaway shall be reported.

(b) Information which shall be reported to the Safety Division [ LP-Gas Section ] includes: date and time of the incident or accident; type of structure or equipment involved; resident's or operator's name; physical location; number of injuries and/or fatalities; whether fire, explosion, or gas leak has occurred; whether gas is leaking; and whether immediate assistance from the division is requested. Any individual reporting shall leave his or her name, and telephone number where he or she can be reached for further information.

(c) Any transport unit required to be registered with the Gas Services Division [ Commission ] in accordance with §13.69 of this title (relating to Registration and Transfer of CNG Transports and CNG Form 1004 Decal or Letter of Authority) which is involved in an accident where there is damage to the tank, piping appurtenances, or any release of CNG resulting from an accident shall be reported to the Safety Division [ Commission ] in accordance with this section regardless of the accident location. Any CNG powered motor vehicle used for school transportation or mass transit including any state owned vehicle which is involved in an accident resulting in a substantial release of CNG or damage to the CNG conversion equipment shall be reported to the Safety Division [ Commission ] in accordance with this section regardless of accident location.

(d) Following the initial telephone report, a CNG Form 1020, Report of CNG Incident/Accident, shall be submitted to the Safety Division [ LP-Gas Section ]. The report shall be postmarked within 14 calendar days of the date of initial notification to the division.

§13.38.Removal from CNG Service.

(a) If the Safety Division (the Division) [ commission or division director ] determines that any compressed natural gas (CNG) cylinder constitutes an immediate danger to the public health, safety, and welfare, the Division [ it ] shall require the immediate removal of the CNG by a properly licensed company to the extent necessary to eliminate the danger. If the Division [ commission or division director ] determines that any CNG appliance, equipment, or system constitutes an immediate danger to the public health, safety, and welfare, the Division [ it ] shall require the immediate disconnection by a properly licensed company of such appliance, equipment, or system from the CNG cylinder it services.

(b) If the affected entity disagrees with the placement of a warning tag, or with the Division's [ commission or division director's ] findings in subsection (a) of this section, the entity [ he ] may request an investigation into the matter. The Division [ division director ] shall notify such entity of its [ his ] finding. If the entity disagrees, the entity may request or the Division [ commission ] on its own motion may call a hearing. Such installation shall be brought into compliance or removed from service until such time as the final decision is rendered.

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State on February 28, 2006.

TRD-200601163

Mary Ross McDonald

Managing Director

Railroad Commission of Texas

Earliest possible date of adoption: April 16, 2006

For further information, please call: (512) 475-1295

16 TAC §§13.61 - 13.63, 13.67 - 13.70, 13.73, 13.75, 13.80

The Commission proposes the amendments and new section under Texas Natural Resources Code, §116.012, which authorizes the Commission to adopt rules and standards relating to liquefied natural gas activities to protect the health, welfare, and safety of the general public; and §116.034, as amended by HB 1162, 79th Legislature, Regular Session (2005).

Statutory authority: Texas Natural Resources Code, §116.012 and §116.034.

Cross-reference to statute: Texas Natural Resources Code, Chapter 116.

Issued in Austin, Texas on February 28, 2006.

§13.61.Licenses, Related Fees, and Licensing Requirements.

(a) A prospective licensee may apply to the License and Permit Section of the Gas Services Division (the Section) [ Commission ] for one or more licenses specified in subsection (b)(1) - (6) of this section. Fees required to be paid shall be those established by the Commission and in effect at the time of licensing or renewal. A person shall not engage in CNG activities unless that person has obtained a license as specified in this section. If a license expires or lapses, the person shall immediately cease CNG operations.

(b) - (e) (No change.)

(f) Licensees shall maintain a copy of the current Regulations for Compressed Natural Gas [ published by the Commission ] and shall provide at least one copy to each company representative and operations supervisor. The copies shall be available to employees during business hours. [ Failure to maintain the required copies may result in enforcement action such as penalties or suspension of licenses. ]

(g) - (h) (No change.)

(i) For license renewals, the Section [ Commission ] shall notify the licensee in writing at the address on file with the Section [ Commission ] of the impending license expiration at least 30 calendar days before the date the license is scheduled to expire. Renewals shall be submitted to the Section [ Commission ] along with the license renewal fee specified in subsection (b) of this section on or before the last day of the month in which the license expires in order for the licensee to continue CNG activities. Failure to meet the renewal deadline set forth in this section shall result in expiration of the license. If a person's license expires, that person shall immediately cease performance of any CNG activities.

(1) If a person's license has been expired for 90 calendar days or fewer, the person shall submit a renewal fee that is equal to 1 1/2 times the renewal fee required in subsection (b) of this section. Upon receipt of the renewal fee, the Section [ Commission ] shall verify that the person's license has not been suspended, revoked, or expired for more than one year. After verification, if the licensee has met all other requirements for licensing, the Section [ Commission ] shall renew the license, and the person may resume CNG activities.

(2) If a person's license has been expired for more than 90 calendar days but less than one year, the person shall submit a renewal fee that is equal to two times the renewal fee required in subsection (b) of this section. Upon receipt of the renewal fee, the Section [ Commission ] shall verify that the person's license has not been suspended, revoked, or expired for more than one year. After verification, if the licensee has met all other requirements for licensing, the Section [ Commission ] shall renew the license, and the person may resume CNG activities.

(3) (No change.)

(4) A person who was licensed in this state, moved to another state, and is currently licensed and has been in practice in the other state for the two years preceding the date of application, may obtain a new license without reexamination. The person shall pay to the Section [ Commission ] a fee that is equal to two times the renewal fee required by subsection (b) of this section.

(A) - (B) (No change.)

(j) Applicants for license or license renewal shall file with the Section [ Commission ] CNG Form 1001 designating a company representative who shall be an owner or employee of the licensee, and shall be directly responsible for actively supervising CNG operations of the licensee. A licensee may have more than one company representative.

(1) An applicant for license shall not engage in CNG activities governed by the Texas Natural Resources Code, Chapter 116, and the Regulations for Compressed Natural Gas, until its company representative has successfully completed the management examination administered by the Alternative Fuels Research and Education Division [ Commission ].

(2) The licensee shall notify the Section [ Commission ] in writing upon termination of its company representative of record and shall at the same time designate a replacement by submitting a new CNG Form 1001.

(3) The licensee shall cease operations if, at the termination of its company representative, there is no other qualified [ certified ] company representative of the licensee who has complied with the Commission's requirements [ acknowledged and recorded by the Commission at its Austin office ]. The licensee shall not resume CNG activities [ operation ] until such time as it has a properly qualified company representative.

(k) (No change.)

§13.62.Insurance Requirements.

(a) Pursuant to the Texas Natural Resources Code, Chapter 116, the Railroad Commission of Texas has adopted the minimum amounts of insurance required of those persons or businesses licensed by the License and Permit Section of the Gas Services Division (the Section) [ commission ] to do business in Texas. The minimum amounts of insurance and other insurance requirements are specified in Table 1 in subsection (i)(5) [ (Table 1) ] of this section.

(b) The Section [ commission ] shall not issue a license authorizing activities under §13.61 of this title (relating to Licensing), or renew an existing license unless the applicant for license or license renewal provides proof of required insurance coverage with an insurance carrier authorized to do business in this state, or provides, on approval of the Section [ commission ], proof of required insurance coverage issued by a surplus lines insurer that meets the requirements of the Texas Insurance Code, Article 1.14-2, and rules adopted by the Texas Department of Insurance under that article.

(c) (No change.)

(d) Except as provided in the column relating to Statements in Lieu of Insurance Certificates in Table 1 in subsection (i)(5) [ (Table 1) ] of this section, and paragraphs (1) - (3) of this subsection, the types and amounts of insurance specified in subsection (i)(5) [ (Table 1) ] of this section are required while engaging in any of the activities set forth in this section or any activity incidental thereto.

(1) A Category 3 licensee or applicant for license or ultimate consumer that does not operate or contemplate the operation of a CNG transport and does not transport or contemplate the delivery of CNG cylinders by vehicle in any manner may file a CNG Form 1997B in lieu of filing a certificate of motor vehicle bodily injury and property damage liability insurance. The licensee or applicant for a license must file the required insurance certificate with the Section [ commission ] before operating a motor vehicle equipped with a CNG cargo container or transporting CNG by vehicle in any manner.

(2) A licensee or applicant for a license that does not engage in or contemplate engaging in any operations which would be covered by general liability insurance for a period of time may file a CNG Form 1998B in lieu of filing a certificate of general liability insurance. The licensee or applicant for a license must file the required insurance certificate with the Section [ commission ] before engaging in any operations that require general liability insurance.

(3) A licensee or applicant for license that does not employ or contemplate the hiring of an employee or employees to be engaged in CNG related activities in Texas may file a CNG Form 1996B in lieu of filing a certificate or workers' compensation insurance, including employer's liability insurance. The licensee or applicant for a license must file the required insurance certificate with the Section [ commission ] before hiring any person as an employee engaged in CNG related work.

(e) As evidence that required insurance has been secured and is in force, certificates of insurance which are approved by the Section [ commission ] shall be filed with the Section [ commission ] before licensing, license renewal, and during the entire period that the license is in effect. Any document filed with the Section [ commission ] in a timely manner which is not completed in accordance with the instructions indicated on the insurance certificate forms supplied by the Section [ commission ], but which complies with the substantive requirements of this section and with the rules adopted under this section, may be considered by the Section [ commission ] to be evidence that required insurance has been secured and is in force for a temporary period not to exceed 45 days. During this temporary period, a licensee shall file with the Section [ commission ] an amended certificate of insurance which complies with all procedural and substantive requirements of this section and the rules adopted hereunder.

(f) (No change.)

(g) Each certificate of insurance filed with the Section [ commission ] must have one of the endorsements specified in subsection (i)(5) [ (Table 1) ] of this section attached to the policy, and may not be cancelled without cancellation of the policy to which it is attached.

(h) Each endorsement issued and attached to a certificate of insurance noted in subsection (g) of this section requires the insurance carrier, noted as company on the certificate of insurance to give the Section [ commission ] 30 days' written notice before the insurance cancellation. The 30 days' notice commences to run from the date the notice is actually received by the Section [ division ].

(i) Cancellation of a certificate of insurance becomes effective on the occurrence of any of the following events and not before:

(1) receipt by the Section [ commission ] of written notice stating the insurer's intent to cancel a policy of insurance and giving a minimum of 30 days' notice before the insurance cancellation;

(2) receipt by the Section [ commission ] of an acceptable replacement insurance certificate;

(3) (No change.)

(4) receipt by the Section [ commission ] of a statement made by a licensee stating that the licensee is not actively engaging in any operations which require a particular type of insurance and will not engage in those operations unless and until all certificates of required insurance applicable to those operations are filed with the Section [ commission ]; or

(5) the Railroad Commission of Texas' cancellation by order or after hearing.

Figure: 16 TAC §13.62(i)(5)

(j) (No change.)

(k) A state agency or institution, county, municipality, school district, or other governmental subdivision may meet the requirements relating to general liability and/or motor vehicle liability insurance or workers' compensation coverage by submitting evidence of self-insurance that complies with the requirements of §13.63 of this title (relating to Qualification as Self-Insured).

[ (l) A state agency or institution, county, municipality, school district, or other governmental subdivision may meet the requirements relating to general liability and/or motor vehicle liability insurance by submitting evidence of self-insurance that complies with the requirements of §§13.63 of this title (relating to Qualification as Self-Insured).]

§13.63.Qualification as Self-Insured.

(a) (No change.)

(b) Applicant guidelines. In addition to filing a CNG Form 1027, Application for Qualification as Self-Insurer, an applicant applying for self-insurer status covering general liability, including premises and operations coverage, shall submit materials that will allow the commission to determine whether:

(1) - (2) (No change.)

(3) the applicant presents evidence that it meets the requirements for motor carrier self-insurance promulgated by the Texas Department of Transportation [ evidence of motor vehicle self-insurability accepted by the Transportation Division of the Railroad Commission of Texas may be submitted to the division for consideration in determining self-insurability ].

(c) - (f) (No change.)

(g) A state agency or institution, county, municipality, school district, or other governmental subdivision may meet the requirements for general liability and/or motor vehicle liability insurance or workers' compensation coverage of §13.62 of this title (relating to Insurance Requirements) if [ by submitting evidence of self-insurance ] permitted by the Texas [ state ] Workers' Compensation Act, Texas Labor Code, Title 5, Subtitle A, [ Texas Civil Statutes, Article 8308-1.01, et seq.; Texas Civil Statutes, Articles 8309b, 8309d, 8309g, 8309g-1, and 8309h ]; and the Texas Natural Resources Code, §116.036, by submitting a CNG Form 1995 to the commission.

[ (h) A state agency or institution, county, municipality, school district, or other governmental subdivision may meet the requirements for general liability and/or motor vehicle liability insurance in §13.62 of this title (relating to Insurance Requirements) by submitting a CNG Form 1995 as evidence of self-insurance coverage if permitted by the state Workers' Compensation Act, Texas Civil Statutes, Article 8308-1.01, et seq.; Texas Civil Statutes, Article 8309b, 8309d, 8309g, 8309g-1, and 8309h; and the Texas Natural Resources Code, §116.036.]

[Figure: 16 TAC §13.63(h)]

§13.67.Changes in Ownership and/or Form of Dealership.

(a) Transfer of dealership outlet or location by sale, lease, or gift.

(1) (No change.)

(2) Notice. After the transfer of any dealership outlet or location, the new operator/owner or the authorized representative thereof, shall notify the License and Permit Section of the Gas Services Division (the Section) [ division ] of the completed transfer of such dealership by certified mail immediately upon the completion of said transfer, and file with the Section [ division ] all forms of application for licensing or registration required by this subchapter.

(b) Other changes in ownership.

(1) (No change.)

(2) Notice. The successor in interest shall notify the Section [ division ] by certified mail of the death of a sole proprietorship or partner, the dissolution of a corporation or partnership, any change in partnership members, or other changes in ownership not specifically provided for elsewhere in this section.

(3) - (4) (No change.)

(c) Changes in dealership business form.

(1) (No change.)

(2) Notice. An authorized representative of the original entity or of the new entity shall notify the Section [ division ] by certified mail of an accomplished change in business form immediately upon the completion of such conversion, and shall cause to be filed with the Section [ division ] all forms of applications for licensing or registration required by this subchapter.

§13.68.Dealership Name Change.

(a) Duty to report. A licensee shall file the following forms evidencing any change in the licensee's name with the License and Permit Section of the Gas Services Division (the Section) [ division ] prior to engaging in operations that require a CNG license under a new business form:

(1) - (2) (No change.)

(3) any other forms required by the Section [ division ].

(b) Duty to register. A licensee operating under a changed name shall cause the reregistration of any CNG transport unit from the old name to the changed name of the license by filing an amended CNG Form 1007, Compressed Natural Gas Transport Registration, with the Section [ division ] prior to the use of any such unit in the transport or delivery of CNG in the State of Texas.

§13.69.Registration and Transfer of CNG Transports and CNG Form 1004 Decal or Letter of Authority.

(a) A person who operates a transport equipped with CNG cargo tanks or any cylinder delivery unit, regardless of who owns the transport or unit, shall register such transport or unit with the License and Permit Section of the Gas Services Division (the Section) [ Commission ] in the name or names under which the operator conducts business in Texas prior to the transport or unit being used in CNG service.

(1) To register a unit previously unregistered in Texas, the operator of the unit shall:

(A) pay to the Section [ Commission ] the $270 registration fee for each bobtail truck, semitrailer, cylinder delivery unit, or other motor vehicle equipped with CNG cargo tanks; and

(B) (No change.)

(2) To register a specification unit which was previously registered in Texas but for which the registration has expired, the operator of the unit shall:

(A) pay to the Section [ Commission ] the $270 registration fee;

(B) - (C) (No change.)

(3) (No change.)

(b) The Section [ Commission ] may also request that an operator registering or transferring any unit to file a copy of the Manufacturer's Data Report.

(c) When all registration or transfer requirements have been met, the Section [ Commission ] shall issue CNG Form 1004 or letter of authority which shall be properly affixed as instructed on the decal or letter or maintained on the bobtail or transport trailer. CNG Form 1004 or letter of authority shall authorize the licensee or ultimate consumer to whom it has been issued and no other person to operate such unit in the transportation of CNG and to fill the transport containers.

(1) A person shall not operate a CNG transport unit or cylinder delivery unit or introduce CNG into a transport container in Texas unless the CNG Form 1004 or letter of authority has been properly affixed as instructed on the decal or the letter or maintained on the bobtail or transport trailer or unless its operation has been specifically approved by the Section [ Commission ].

(2) - (3) (No change.)

(4) The Section [ Commission ] shall not issue a CNG Form 1004 or letter of authority if the Section [ Commission ] or a Category 1 or 4 licensee determines that the transport is unsafe for CNG service.

(5) If a CNG Form 1004 decal or letter of authority on a unit currently registered with the Section [ Commission ] is destroyed, lost, or damaged, the operator of that vehicle shall obtain a replacement by filing CNG Form 1018B and a $50 replacement fee with the Section [ Commission ].

§13.70.Examination Requirements and Renewals.

(a) Examination general provisions.

(1) No individual may work or be employed in any capacity which requires contact with CNG or CNG systems until that individual has submitted to and successfully completed a Commission examination which measures the competency of that individual to perform the CNG related activities anticipated, and tests working knowledge of the Texas Natural Resources Code and the regulations for compressed natural gas related to the type of CNG work anticipated. Table 1 of this section sets forth specific requirements for examination for each category of license. This section applies to all licensees and their employees who perform CNG related activities, and also applies to any ultimate consumer who has purchased, leased, or obtained other rights in any vessel defined as a CNG transport by this chapter and any employee of such ultimate consumer if that employee drives or in any way operates such a CNG transport. Driving a motor vehicle powered by CNG or fueling of motor vehicles for an ultimate consumer by the ultimate consumer or its employees do not in themselves constitute CNG related activities. Only paragraph (2) of this subsection applies to an employee of an ultimate consumer or a state agency or institution, county, municipality, school district, or other governmental subdivision.

Figure: 16 TAC §13.70(a)(1)

(A) - (C) (No change.)

(2) Each individual who performs CNG activities as an employee of an ultimate consumer or a state agency, county, municipality, school district, or other governmental subdivision shall be properly supervised by his or her employer. Any such individual who is not certified by the Commission to perform such CNG activities shall be properly trained by a competent person in the safe performance of such CNG activities. [ Any employee of an ultimate consumer or a state agency or institution, county, municipality, school district, or other governmental subdivision not required to submit to examination under this section shall be properly supervised and trained in the installation, maintenance, and storage of CNG and CNG systems, and in the operation of equipment during the filling of and dispensing from storage containers. Such training shall also include the protection of containers and equipment against mechanical injury or tampering by unauthorized persons. ]

(3) Each person wishing to submit to examination by the commission shall file a CNG Form 1016 with AFRED [ the commission prior to examination ].

(4) An individual who has filed CNG Form 1016 and the applicable nonrefundable examination fee may take the rules examination at the Commission's AFRED Training Center, 6506 Bolm Road, Austin, Texas, [ Austin office ] between the hours of 8:00 a.m. and 12:00 noon [ 2:00 p.m. ], Monday through Friday, except for state holidays, and at other designated times and locations around the state. Tuesdays and Thursdays are the preferred days for examinations at the AFRED Training Center. Dates and locations of available Commission CNG examinations may be obtained in the Austin offices of AFRED and on the Commission's web site at www.rrc.state.tx.us, and shall be updated at least monthly. Examinations shall be conducted in Austin and in other locations around the state. Individuals or companies may request in writing that examinations be given in their area. AFRED shall schedule its examinations and locations at its discretion. [ Applicants who wish to take the rules examination at sites other than the Austin office shall submit CNG Form 1016 and the applicable fee to the Commission's Austin office at least three business days prior to the examination date in order to receive an admittance letter from the Commission. The admittance letter shall be required at all exam sites other than the Austin office. ]

(5) Within 15 [ 30 ] days of the date an individual takes an examination, AFRED [ the Commission ] shall notify the individual of the results of the examination.

(A) If the examination is graded or reviewed by a testing service, AFRED [ the Commission ] shall notify the individual of the examination results within 14 days of the date AFRED [ the Commission ] receives the results from the testing service. If the notice of the examination results will be delayed for longer than 90 days after the examination date, AFRED [ the Commission ] shall notify the individual of the reason for the delay before the 90th day. AFRED [ The Commission ] may require a testing service to notify an individual of the individual's examination results.

(B) (No change.)

(C) Failure of any examination shall immediately disqualify the individual from performing any CNG related activities covered by the examination which is failed. Any individual who fails an examination administered by the Commission at the Austin location only may retake the same examination only one additional time during a business day. Any subsequent examinations shall be taken on another business day, unless approved by the assistant director for the AFRED Research and Technical Services Section or the assistant director's designee. [ Any person who fails an examination administered by the Commission may not re-take that examination for a period of at least 24 hours. ] If requested [ in writing ] by an individual who failed the examination, AFRED [ the Commission ] shall furnish the individual with an analysis of the individual's performance on the examination.

(b) General installers and repairmen exemption.

(1) Any individual who is currently licensed as a master or journeyman plumber by the Texas State Board of Plumbing Examiners or who is currently licensed with a Class A or B air conditioning and refrigeration contractors license issued by the Department of Licensing and Regulation may apply for and be granted an exemption to the Category 2 and 3 service and installation employee examination requirements by submitting to the License and Permit Section of the Gas Services Division [ Commission ] the following information:

(A) - (B) (No change.)

(C) any information the Section [ Commission ] may reasonably require.

(2) This exemption does not become effective until the examination exemption card is issued by the Section [ Commission ].

(3) - (4) (No change.)

(5) In order to maintain an exemption, each individual issued an examination exemption card shall pay a $20 annual renewal fee to the Section [ Commission ] on or before May 31 of each year. Failure to pay the annual renewal fee by May 31 shall result in a lapsed exemption. If an individual's exemption lapses, that individual shall cease performing all CNG related activities granted by this exemption until that individual renews the exemption. To renew a lapsed exemption, the individual shall pay the $20 annual renewal fee plus a $20 late-filing fee. Failure to do so shall result in the expiration of the examination exemption. If the individual's examination exemption has been expired for one year or longer, the individual shall complete all requirements necessary to apply for a new exemption.

(6) Any individual who is issued this exemption agrees to comply with the current edition of the regulations for compressed natural gas. In the event the exempt individual surrenders, fails to renew, or has the license revoked either by the Texas State Board of Plumbing Examiners or Department of Licensing and Regulation, that individual shall immediately cease performing any CNG activity granted by this section. The examination exemption card shall be returned immediately to the Section [ Commission ] and all rights and privileges surrendered.

(c) Trainees.

(1) A licensee or ultimate consumer may employ an individual as a trainee for a period not to exceed 45 calendar days without that individual having successfully completed the rules examination subject to the following conditions.

(A) (No change.)

(B) The licensee or ultimate consumer shall ensure that CNG Form 1016 is on file with AFRED [ the Commission ] for each trainee at the time that trainee begins supervised CNG activities. The trainee shall then have 45 calendar days to pass the applicable rules examination.

(2) - (3) (No change.)

(d) Renewal of certified status.

(1) AFRED [ The Commission ] shall notify licensees of any employees' pending renewals, or shall notify the individual if not employed by a licensee, in writing, at the address on file with AFRED [ the Commission ] no later than March 15 of a year for the May 31 renewal date of that year.

(2) In order to maintain active status, a certificate holder shall pay the $25 annual certificate renewal fee to AFRED [ the Commission ] on or before May 31 of each year. Individuals who hold more than one certificate shall pay only one annual renewal fee.

(3) (No change.)

(4) Any lapsed renewals submitted after May 31st of each year shall include a $20 late filing fee in addition to the renewal fee, proof of successful completion of the examination required for certification, and be received in AFRED's [ the Commission's ] Austin office no later than close of business on August 31 or, if August 31 falls on a weekend or state holiday, close of business on the last business day before August 31 of each year. Upon receipt of the renewal fee and late filing penalty, AFRED [ the Commission ] shall verify that the individual's certification has not been suspended, revoked, or expired for one year or longer. After verification, AFRED [ the Commission ] shall renew the certification and the individual may resume CNG activities.

(e) Expired certification(s). Any renewal submitted after the August 31 deadline shall be considered expired. If an individual wishes to renew a certification that has been expired for less than one year, that individual shall submit the annual renewal fee and late filing fee, and proof of successful completion of the examination required for certification. Upon verification that the individual's certification has not been suspended, revoked, or expired for one year or longer, AFRED [ the Commission ] shall renew the individual's certification and the individual may resume CNG activities.

§13.73. Employee Transfers [ Other Fees for Employee Transfer ].

A licensee shall notify AFRED [ the Commission ] when a previously certified person is hired, by [ immediately ] filing CNG Form 1016A along with a $10 filing fee [ with the Commission ]. Notification must include the employee's name as recorded on a current driver's license or Texas Department of Public Safety identification card, employee social security number, name of previous and new licensee-employer, and types of CNG [ related ] work to be performed by the newly-hired certified employee .

§13.75.Franchise Tax Certification and Assumed Name Certificate.

(a) Any applicant for an original or renewal license that is a corporation or limited liability company must file a CNG Form 1026 with the License and Permit Section of the Gas Services Division (the Section) [ commission ] prior to the issuance of such license, certifying that its Texas franchise taxes are current or such taxes are not applicable to the company. An applicant may file a Certificate of Account Status issued by the office of the Comptroller of Public Accounts as an alternative to filing the CNG Form 1026. Making a false statement as to franchise tax status is grounds for the denial, suspension, or revocation of the license granted by the Section [ this commission ].

(b) (No change.)

§13.80.Requests for CNG Classes.

Requests for Commission staff to conduct a CNG training class for CNG activities under the Commission's jurisdiction shall be submitted to the AFRED training section. The AFRED training section may conduct the requested class at its discretion. The nonrefundable fee for a CNG training class is $250 if no overnight expenses are incurred by the AFRED training section, or $500 if overnight expenses are incurred. AFRED may waive the class fee in cases where the Commission recovers the cost of the class from another source, such as a grant.

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State on February 28, 2006.

TRD-200601162

Mary Ross McDonald

Managing Director

Railroad Commission of Texas

Earliest possible date of adoption: April 16, 2006

For further information, please call: (512) 475-1295

16 TAC §13.80

(Editor's note: The text of the following section proposed for repeal will not be published. The section may be examined in the offices of the Railroad Commission of Texas or in the Texas Register office, Room 245, James Earl Rudder Building, 1019 Brazos Street, Austin.)

The Commission proposes the repeal under Texas Natural Resources Code, §116.012, which authorizes the Commission to adopt rules and standards relating to liquefied natural gas activities to protect the health, welfare, and safety of the general public; and §116.034, as amended by HB 1162, 79th Legislature, Regular Session (2005).

Statutory authority: Texas Natural Resources Code, §116.012 and §116.034.

Cross-reference to statute: Texas Natural Resources Code, Chapter 116.

Issued in Austin, Texas on February 28, 2006.

§13.80.CNG Continuing Education Requirements.

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State on February 28, 2006.

TRD-200601165

Mary Ross McDonald

Managing Director

Railroad Commission of Texas

Earliest possible date of adoption: April 16, 2006

For further information, please call: (512) 475-1295

16 TAC §§13.92 - 13.94, 13.102

The Commission proposes the amendments under Texas Natural Resources Code, §116.012, which authorizes the Commission to adopt rules and standards relating to liquefied natural gas activities to protect the health, welfare, and safety of the general public; and §116.034, as amended by HB 1162, 79th Legislature, Regular Session (2005).

Statutory authority: Texas Natural Resources Code, §116.012 and §116.034.

Cross-reference to statute: Texas Natural Resources Code, Chapter 116.

Issued in Austin, Texas on February 28, 2006.

§13.92.System Component Qualification.

System components shall comply with the appropriate provisions in Subchapter B of this chapter (relating to General Rules for Compressed Natural Gas (CNG) [ and ] Equipment Qualifications [ Identification ]).

§13.93.General.

(a) - (b) (No change.)

(c) Authorized automatic dispenser(s) shall comply with §13.25(k) of this title (relating to Filings Required for Stationary CNG Installations [ ; Appurtenances and Equipment ]). Existing dispensers may be modified, provided the modifications include only those components listed as approved by a laboratory as discussed in §13.25(k) of this title, and are installed in a workmanlike manner in accordance with industry standards.

(d) The authorized automatic dispenser shall have the following features.

(1) - (7) (No change.)

(8) The fueling connector shall be compatible with the fueling connection of the vehicle as specified in [ . (See ] §13.34 of this title (relating to Vehicle Fueling Connection).[ ) ] The fueling connector shall have the following safety features:

(A) - (B) (No change.)

(e) All CNG storage installations, and installations protected by guardrails only, must comply with the sign and/or lettering requirements of Table 1 of this section.

Figure: 16 TAC §13.93(e)

§13.94.Location of Installations.

(a) - (c) (No change.)

(d) Compression, storage, and dispensing equipment shall be located aboveground and installed according to the distances specified in Table 1 of this section. The compression, storage, and dispensing equipment shall not be placed in any area directly beneath an electric transmission or distribution line(s) (excluding a customer service line) and that area which is six feet to either side of the line. If this distance is not adequate to prevent the broken ends of the electric transmission or distribution line(s) and voltage from contacting the CNG equipment in the event of breakage of any conductor, then other suitable means of protection designed and constructed so as to prevent such contact with the equipment may be used if approved by the Commission prior to installation. The request for approval must be in writing and specify the manner in which the equipment will be protected from contact, including specifications for materials used. If approval is not granted, the equipment must be located the distance required by this section from the transmission line to prevent such contact.

Figure: 16 TAC §13.94(d)

(e) - (f) (No change.)

§13.102.Installation of Electrical Equipment.

(a) Electrical installations located within the vicinity of any compressor, cascade, or dispensing equipment shall be in accordance with the National Electrical Code (NEC) for Class 1, Group D: Hazardous Locations, Division 2 area. A Division 2 area is where combustible gases are present only under abnormal conditions. This requirement does not apply to residential installations, including manufactured housing. The classified area shall not extend beyond an unpierced wall, roof, or vapor tight partition. The vicinity of any compressor, cascade, or dispensing equipment is that area indicated by the following chart.

Figure: 16 TAC §13.102(a)

(b) (No change.)

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State on February 28, 2006.

TRD-200601166

Mary Ross McDonald

Managing Director

Railroad Commission of Texas

Earliest possible date of adoption: April 16, 2006

For further information, please call: (512) 475-1295

16 TAC §13.141

The Commission proposes the amendments under Texas Natural Resources Code, §116.012, which authorizes the Commission to adopt rules and standards relating to liquefied natural gas activities to protect the health, welfare, and safety of the general public; and §116.034, as amended by HB 1162, 79th Legislature, Regular Session (2005).

Statutory authority: Texas Natural Resources Code, §116.012 and §116.034.

Cross-reference to statute: Texas Natural Resources Code, Chapter 116.

Issued in Austin, Texas on February 28, 2006.

§13.141.System Testing.

(a) - (c) (No change.)

(d) When a compressed natural gas (CNG) cylinder is involved in an accident or fire causing damage to the cylinder, the cylinder shall be replaced or removed and returned to a currently licensed Category 1 licensee (manufacturer) or Category 4 licensee (tester) to be inspected and retested in accordance with the originally manufactured specifications. Before being returned to service, a CNG Form 1008, Manufacturers Report of Retest or Repair, shall be sent to the Safety Division [ LP-Gas Section ].

(e) (No change.)

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State on February 28, 2006.

TRD-200601167

Mary Ross McDonald

Managing Director

Railroad Commission of Texas

Earliest possible date of adoption: April 16, 2006

For further information, please call: (512) 475-1295

16 TAC §13.183

The Commission proposes the amendments under Texas Natural Resources Code, §116.012, which authorizes the Commission to adopt rules and standards relating to liquefied natural gas activities to protect the health, welfare, and safety of the general public; and §116.034, as amended by HB 1162, 79th Legislature, Regular Session (2005).

Statutory authority: Texas Natural Resources Code, §116.012 and §116.034.

Cross-reference to statute: Texas Natural Resources Code, Chapter 116.

Issued in Austin, Texas on February 28, 2006.

§13.183.System Component Qualifications.

System components shall comply with the appropriate provisions in Subchapter B of this chapter (relating to General Rules for Compressed Natural Gas (CNG) Equipment Qualifications).

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State on February 28, 2006.

TRD-200601169

Mary Ross McDonald

Managing Director

Railroad Commission of Texas

Earliest possible date of adoption: April 16, 2006

For further information, please call: (512) 475-1295

16 TAC §§14.2007, 14.2010, 14.2019 - 14.2021, 14.2034, 14.2043, 14.2049, 14.2052

Statutory authority: Texas Natural Resources Code, §§116.012 and 116.034.

Cross-reference to statute: Texas Natural Resources Code, Chapter 116.

Issued in Austin, Texas on February 28, 2006.

§14.2007.Definitions.

The following words and terms when used in the Regulations for Liquefied Natural Gas shall have the following meanings unless the context clearly indicates otherwise.

(1) AFRED--The Commission's Alternative Fuels Research and Education Division.

[ (1) Administrative Procedure Act--Texas Government Code, Chapter 2001.]

(2) - (4) (No change.)

(5) Approved--Authorized by a [ the ] Division or the Commission.

(6) - (13) (No change.)

(14) Company representative--An owner or employee of a licensee designated by that licensee to take any required examinations [ courses and exams ] and to actively supervise LNG operations of the licensee.

(15) - (20) (No change.)

[ (21) Division--The Director of the Gas Services Division of the Railroad Commission of Texas or the director's delegate.]

(21) [ (22) ] DOT--The United States Department of Transportation.

(22) [ (23) ] Employee--Any individual who renders or performs any services or labor for compensation, including individuals hired on a part-time or temporary basis, full-time or permanent basis; independent contractors; and owner-employees.

(23) [ (24) ] Failsafe--Design features which provide for safe conditions in the event of a malfunction of control devices or an interruption of an energy source or an emergency shutdown.

(24) [ (25) ] Final approval--The authority issued by a division [ the Commission ] or the Railroad Commission allowing the introduction of LNG into a container and system.

(25) [ (26) ] Fired equipment--Any equipment in which the combustion of fuels takes place.

(26) [ (27) ] Fixed-length dip tube--A pipe with a fixed open end positioned inside a container at a designated elevation to measure a liquid level.

(27) [ (28) ] General Rules of Practice and Procedure of the Railroad Commission of Texas--Chapter 1 of this title (relating to Practice and Procedure).

(28) [ (29) ] Ignition source--Any item, substance, or event having adequate temperature and energy release of the type and magnitude sufficient to ignite any flammable mixture of gases or vapors that could occur at a site.

(29) [ (30) ] Impounding area--An area defined through the use of dikes or the topography at the site for the purpose of containing any accidental spill of LNG.

(30) [ (31) ] Individual--One human being. (See also "Person".)

(31) [ (32) ] Interim approval--The authority issued by the Railroad Commission of Texas following a public hearing allowing construction of an LNG installation.

(32) [ (33) ] Labeled--The attachment to equipment or materials of a label, symbol, or other identifying mark of a nationally recognized testing laboratory or a Category 50 licensee which conducts product evaluation, periodically inspects production of listed equipment or materials, and which publishes its findings in a list indicating that the equipment either meets appropriate standards or has been tested and found suitable for use in a specified manner.

(33) [ (34) ] LFL--Lower flammability limit.

(34) [ (35) ] Licensed--Authorized to perform LNG activities through the issuance of a valid license by the Gas Services Division [ Commission ].

(35) [ (36) ] Licensee-- An applicant that has [ A person which has applied for and ] been granted an LNG license by the Gas Services Division [ commission ].

(36) [ (37) ] Listed--The inclusion of equipment or materials in a list published by a nationally recognized testing laboratory or a Category 50 licensee which conducts product evaluation, periodically inspects production of listed equipment or materials, and whose listing states either that the equipment or material meets appropriate standards or has been tested and found suitable for use in a specified manner.

(37) [ (38) ] LNG--Natural gas, consisting primarily of methane, that has been condensed to liquid by cooling.

(38) [ (39) ] LNG system--A system of safety devices, containers, and other LNG equipment installed at a facility or on a vehicle and designed for use in the sale, storage, transportation for delivery, or distribution of LNG.

(39) [ (40) ] LNG transport--Any vehicle or combination of vehicles and LNG containers designed or adapted for use or used principally as a means of moving or delivering LNG from one place to another, including but not limited to any truck, trailer, semi-trailer, cargo tank, or other vehicle used in the distribution of LNG.

(40) [ (41) ] Mass transit vehicle--Any vehicle which is owned or operated by a political subdivision of a state, city, or county, and which is used primarily in the conveyance of the general public.

(41) [ (42) ] Maximum allowable working pressure--The maximum gauge pressure permissible at the top of completed equipment, containers, or vessels in their operating position for a design temperature.

(42) [ (43) ] Mobile fuel container--An LNG container mounted on a vehicle and used to store LNG as the fuel supply for uses other than motor fuel.

(43) [ (44) ] Mobile fuel system--An LNG system to supply fuel to an auxiliary engine other than the engine used to propel the vehicle or for other uses on the vehicle.

(44) [ (45) ] Motor fuel container--An LNG container mounted on a vehicle and used to store LNG as the fuel supply to an engine used to propel the vehicle.

(45) [ (46) ] Motor fuel system--An LNG system to supply LNG as a fuel for an engine used to propel the vehicle.

(46) [ (47) ] NEC--National Electric Code (NFPA 70).

(47) [ (48) ] NFPA--National Fire Protection Association.

(48) [ (49) ] Noncombustible material--A solid material which in no conceivable form or combination with other material will ignite.

(49) [ (50) ] Nonlicensee--A person not required to be licensed, but which shall comply with all other applicable Regulations for Liquefied Natural Gas.

(50) [ (51) ] Operations supervisor--An individual who actively supervises LNG operations at an outlet.

(51) [ (52) ] Outlet--A site operated by an LNG licensee at which the business conducted materially duplicates the operation for which the licensee is initially granted a license.

(52) [ (53) ] Person--An individual, sole proprietor, partnership, firm, joint venture, corporation, association, or any other business entity, state agency or institution, county, municipality, school district, or other governmental subdivision.

(53) [ (54) ] Point of transfer--The point at which a connection is made to transfer LNG from one container to another.

(54) [ (55) ] Pressure relief valve--A valve which is designed both to open automatically to prevent a continued rise of internal fluid pressure in excess of a specified value (set pressure) and to close when the internal fluid pressure is reduced below the set pressure.

(55) [ (56) ] Pressure vessel--A container or other component designed in accordance with the ASME Code.

[ (57) Primary component--Those safety-related components which may be stressed to a significant level, those whose failure would permit release of flammable fluids, and those subject to thermal shock. Primary components include but are not limited to the following parts of a single-wall tank or of the inner tank in a double-wall tank: seals, gaskets, shell plates, bottom plates, roof plates, knuckle plates, compression rings, shell stiffeners, manways, and nozzles including reinforcement, shell anchors, pipe, tubing, forging, and bolting.]

(56) [ (58) ] Property line--That boundary which designates the point at which one real property interest ends and another begins. [ (See also "Right-of-way".) ]

[ (59) PSF--Pounds per square foot.]

[ (60) PSI--Pounds per square inch.]

(57) [ (61) ] PSIG--Pounds per square inch gauge.

[ (62) PSIA--Pounds per square inch absolute.]

(58) [ (63) ] Public transportation vehicle--A vehicle for hire or service to the general public including but not limited to taxis, buses, and airport courtesy cars.

(59) [ (64) ] Railroad Commission of Texas--The members of the Railroad Commission of Texas.

(60) [ (65) ] Repair to container--The correction of damage or deterioration to an LNG container, the alteration of the structure of such a container, or the welding on such a container in a manner which causes the temperature of the container to rise above 400 degrees Fahrenheit.

[ (66) Right-of-way--The strip of land over which a public roadway such as a street, alley, or highway is built, or land occupied by a railroad for its main line.]

(61) [ (67) ] School--A public or private institution which has been accredited through the Texas Education Agency or the Texas Private School Accreditation Commission.

(62) [ (68) ] School bus--A vehicle that is sold or used for purposes that include carrying students to and from school or related events.

(63) [ (69) ] Special transit vehicle--A vehicle which is primarily used by a school or mass transit authority for special transit purposes such as transport of mobility impaired individuals.

[ (70) TEMA--Tubular Exchanger Manufacturers Association.]

(64) [ (71) ] Temporary installation--A dispensing station, either skid-mounted or on a transport unit, that is intended to be used for a finite period of time.

(65) [ (72) ] Tentative approval--The authority issued by the Gas Services Division [ Commission ] without a hearing allowing construction of an LNG installation.

(66) [ (73) ] Thermal expansion relief valve--A pressure relief valve that is activated by pressure created by a fluid temperature rise.

(67) [ (74) ] Trainee--An individual employed by a licensee for a period not to exceed 45 days without that individual having successfully completed the required examinations for the LNG activities to be performed.

(68) [ (75) ] Transfer area--That portion of an LNG refueling station where LNG is introduced into or dispensed from a stationary installation.

(69) [ (76) ] Transfer system--All piping and equipment used in transferring LNG between containers.

(70) [ (77) ] Transition joint--A connector fabricated of two or more metals used to join piping sections of two different materials.

(71) [ (78) ] Transport--Any bobtail or semi-trailer equipped with one or more containers.

(72) [ (79) ] Transport system--Any and all piping, fittings, valves, and equipment on a transport, excluding the container.

(73) [ (80) ] Ultimate consumer--The person controlling LNG immediately prior to its ignition.

(74) [ (81) ] Vaporizer--A device other than a container that receives LNG in liquid form and adds sufficient heat to convert the liquid to a gaseous state.

(75) [ (82) ] Water capacity--The amount of water in gallons required to fill a container.

§14.2010.LNG Report Forms.

Under the provisions of the Texas Natural Resources Code, Chapter 116, the Commission has designated the following forms for use [ by the division ].

(1) - (11) (No change.)

(12) LNG Form 2019. Transfer of Liquefied Natural Gas Bulk Storage Plants. [ LNG Form 2020. Report of LNG Incident/Accident. ]

(13) LNG Form 2020. Report of LNG Incident/Accident. [ LNG Form 2019. Transfer of Liquefied Natural Gas Bulk Storage Plants. ]

(14) - (33) (No change.)

§14.2019.Certification Requirements.

(a) This section applies to all licensees and their employees who perform LNG activities, and to any ultimate consumer who has purchased, leased, or obtained other rights in any vessel defined by this chapter as an LNG transport, including any employee of such ultimate consumer if that employee drives or in any way operates such an LNG transport. Only paragraph (2) of this subsection applies to an employee of a state agency or institution, county, municipality, school district, or other governmental subdivision. Driving a motor vehicle powered by LNG or fueling of motor vehicles for an ultimate consumer by the ultimate consumer or its employees do not in themselves constitute LNG activities.

(1) (No change.)

(2) Each individual who performs LNG activities as an employee of an ultimate consumer or a state agency, county, municipality, school district, or other governmental subdivision shall be properly supervised by his or her employer. Any such individual who is not certified by the Commission to perform such LNG activities shall be properly trained by a competent person in the safe performance of such LNG activities. [ Employees of an ultimate consumer not required to submit to examination under this section shall be properly trained by an individual who passed the examination in the installation, maintenance, and storage of LNG, LNG systems, and vehicles fueled by LNG, and in the operation of equipment during the filling of and dispensing from storage containers. Such training shall also include the protection of containers and equipment against damage or tampering by unauthorized persons. ]

(3) An individual wishing to submit to examination by the commission shall file LNG Form 2016 along with the appropriate fee listed in subsection (c) of this section with AFRED. [ the commission prior to examination. The commission shall notify the individual in writing of acceptance of LNG Form 2016. ]

Figure: 16 TAC §14.2019(a)(3)

(4) An individual who has filed LNG Form 2016 and the applicable nonrefundable examination fee may take the rules examination at the Commission's AFRED Training Center, 6506 Bolm Road, Austin, Texas, [ Austin office ] between the hours of 8:00 a.m. and 12:00 noon [ 2:00 p.m. ], Monday through Friday, except for state holidays, and at other designated times and locations around the state. Tuesdays and Thursdays are the preferred days for examinations at the AFRED Training Center. Dates and locations of available Commission LNG examinations may be obtained in the Austin offices of AFRED and on the Commission's web site at www.rrc.state.tx.us, and shall be updated at least monthly. Examinations shall be conducted in Austin and in other locations around the state. Individuals or companies may request in writing that examinations be given in their area. AFRED shall schedule its examinations and locations at its discretion. [ Applicants who wish to take the rules examination at sites other than the Austin office shall submit LNG Form 2016 and the applicable fee to the Commission's Austin office at least three business days prior to the examination date in order to receive an admittance letter from the Commission. The admittance letter shall be required at all exam sites other than the Austin office. ]

(5) Within 15 [ 30 ] days of the date an individual takes an examination, AFRED [ the Commission ] shall notify the individual of the results of the examination. The individual shall pass the rules examination with a score of at least 75%.

(A) If the examination is graded or reviewed by a testing service, AFRED [ the Commission ] shall notify the individual of the examination results within 14 days of the date AFRED [ the Commission ] receives the results from the testing service. If the notice of the examination results will be delayed for longer than 90 days after the examination date, AFRED [ the Commission ] shall notify the individual of the reason for the delay before the 90th day. AFRED [ The Commission ] may require a testing service to notify an individual of the individual's examination results.

(B) Successful completion of any required examination shall be credited to the individual. An individual who has been issued a certification card shall make the card readily available and shall present the card to any Commission employee or agent who requests proof of certification.

(C) Any individual who fails an examination shall be immediately disqualified from performing any LNG activities covered by that examination [ and shall not retake the same examination for at least 24 hours, unless approved by the assistant director for the LP-Gas Section, Gas Services Division, or another designated Commission employee ]. If requested [ in writing ] by an individual who failed the examination, AFRED [ the Commission ] shall furnish the individual with an analysis of the individual's performance on the examination. Any individual who fails an examination administered by the Commission at the Austin location only may retake the same examination one additional time during a business day. Any subsequent examination shall be taken on another business day, unless approved by the assistant director for the AFRED Research and Technical Services Section or the assistant director's delegate.

(b) A licensee or ultimate consumer other than a political subdivision may employ an individual as a trainee for a period not to exceed 45 calendar days without that individual having successfully completed the rules examination, subject to the following conditions:

(1) (No change.)

(2) The licensee or ultimate consumer other than a political subdivision shall ensure that LNG Form 2016 is on file with AFRED [ the Commission ] for each trainee at the time the trainee begins supervised LNG activities. The trainee shall then have 45 calendar days to pass the applicable rules examination.

(3) - (4) (No change.)

(5) Once a trainee has taken the rules examination, the training period shall cease and the individual shall perform no LNG activities which require certification until the individual is notified by AFRED [ the Commission ] that the individual passed the examination.

(c) The applicant shall pay to AFRED [ the Commission ] a $50 examination fee for each management-level examination and a $20 fee for each employee-level examination in advance of each required examination. Examination fees are nonrefundable. An applicant who fails an examination shall pay the full examination fee for each subsequent examination.

(d) AFRED [ The Commission ] shall notify licensees of any employees' pending renewals, or shall notify the individual if not employed by a licensee, in writing, at the address on file with AFRED [ the Commission ] no later than March 15 of a year for the May 31 renewal date of that year. To maintain active status, a certificate holder shall pay the $25 annual renewal fee to AFRED [ the Commission ] on or before May 31 of each year. Individuals who hold more than one certificate shall pay only one annual renewal fee.

(1) (No change.)

(2) Any lapsed or expired renewals submitted after May 31 of each year shall include a $20 late-filing fee in addition to the renewal fee and proof of successful completion of the examination required for the certification no later than close of business on August 31 or, if August 31 falls on a weekend or state holiday, close of business on the last business day before August 31. Upon receipt of the renewal fee, late-filing penalty, and proof of successful completion of the examination required for the certification, AFRED [ the Commission ] shall verify that the individual's certification has not been suspended, revoked, or expired for one year or longer. After verification, AFRED [ the Commission ] shall renew the certification and the individual may resume LNG activities.

(e) Expired certifications. Any renewal submitted after the August 31 deadline shall be considered expired. If an individual wishes to renew a certification that has been expired for less than one year, that individual shall submit the annual renewal fee and late filing fee, and proof of successful completion of the examination required for certification. Upon verification that the individual's certificate has not been suspended, revoked, or expired for one year or longer, AFRED [ the Commission ] shall renew the individual's certification and the individual may resume LNG activities.

[ (f) Applicants for license shall attend the applicable courses of instruction as specified in Table 1 of subsection (a) of this section. The Category 35 course of instruction shall be held in Austin or any Commission-approved facility at times to be determined by the Commission, shall include at a minimum training over container installation, refueling facilities, motor fuel installations, and stationary installations, and shall not exceed 40 hours. Course attendees shall pay the fee to the Commission for the course. The fee shall be established by the division director and may vary as needed to cover the costs for a particular seminar in any given location. The seminar fee does not include the required examination fee.]

§14.2020.Employee Transfers.

When a previously certified individual is hired, the licensee shall notify AFRED [ the Commission ] by filing a properly completed and signed LNG Form 2016A along with a $10 filing fee[ , which shall be received by the Commission or postmarked within ten calendar days of such hiring ]. Notice shall include the employee's name as recorded on a current driver's license or Texas Department of Public Safety identification card, employee social security number, name of previous and new licensee-employer, and types of LNG related work to be performed by the newly-hired certified employee .

§14.2021.Requests for LNG Classes.

Requests for Commission Staff to conduct an LNG training class for LNG activities under the Commission's jurisdiction shall be submitted to the AFRED training section. The AFRED training section may conduct the requested class at its discretion. The nonrefundable fee for an LNG training class is $250 if no overnight expenses are incurred by AFRED, or $500 if overnight expenses are incurred. AFRED may waive the class fee in cases where the Commission recovers the cost of the class from another source, such as a grant.

§14.2034.Self-Insurance Requirements.

(a) - (f) (No change.)

(g) A state agency or institution, county, municipality, school district, or other governmental subdivision may meet the requirements for workers' compensation coverage or general liability and/or motor vehicle liability insurance [ by submitting LNG Form 2995 as evidence of self-insurance coverage ] if permitted by the Texas Workers' Compensation Act, Texas Labor Code, Title 5, Subtitle A [ state workers' compensation act, Texas Civil Statutes, Article 8308-1.01, et seq; Texas Civil Statutes, Articles 8309b, 8309d, 8309g, 8309g-1, and 8309h ]; and Texas Natural Resources Code, §116.036, by submitting LNG Form 2995 to the Commission.

(h) (No change.)

§14.2043.Temporary Installations.

(a) (No change.)

(b) Temporary installations shall be limited to one year. If the temporary installation needs to remain in service for more than one year, the licensee or nonlicensee responsible for the temporary installation shall inform the Safety Division (the Division) [ Commission ] of this extension of time at least 30 days prior to the expiration of the one-year period.

(c) Temporary installations shall be protected by guardrailing as specified in §14.2101(f) of this title (relating to Uniform Protection Standards) unless otherwise approved by the Division [ Commission ].

(d) - (f) (No change.)

(g) The Division [ Commission ] may inspect temporary installations for compliance with these requirements.

(h) Any temporary installation subject to the jurisdiction of United States Department of Transportation under 49 Code of Federal Regulations, Part 193, shall comply with the applicable DOT rules and any requirements of the Division [ Commission's Gas Services Division, Pipeline Safety Section ].

§14.2049.Report of LNG Incident/Accident.

(a) If an incident or accident occurs during transport, as a result of a pullaway, or where LNG is or is suspected to be the cause, the licensee or nonlicensee owning, operating, or servicing the installation shall notify the Safety Division [ division ] by telephone as soon as possible after the licensee or nonlicensee has knowledge of the incident or accident if any of the following occurs:

(1) - (3) (No change.)

(b) Any transport unit required to be registered with the Gas Services Division [ Commission ] in accordance with §14.2704 of this title (relating to Registration and Transfer of LNG Transports) which is involved in an accident where there is damage to the tank, piping appurtenances, or any release of LNG resulting from the accident shall be reported to the Safety Division [ Commission ], regardless of the accident location. Any LNG-powered motor vehicle used for school transportation or mass transit, including any state-owned vehicle, which is involved in an accident resulting in a release of LNG or damage to LNG equipment shall be reported to the Safety Division [ Commission ], regardless of the accident location.

(c) - (d) (No change.)

(e) Following the initial telephone report of any of the incidents or accidents described in this section, the licensee shall file LNG Form 2020 with the Safety Division [ division ]. The form shall be postmarked within 14 calendar days of the date of initial notification to the Safety Division [ division ].

§14.2052.Application for an Exception to a Safety Rule.

(a) Any person may apply for an exception to the provisions of this chapter by filing LNG Form 2025 along with supporting documentation and a $50 filing fee, with the Safety Division (the Division) [ Commission ].

(b) The application shall contain the following:

(1) (No change.)

(2) the type of relief desired, including the exception requested and information which may assist the Division [ Commission ] in comprehending the requested exception;

(3) - (7) (No change.)

(c) Notice of the application for an exception to a safety rule shall include the following items and procedures:

(1) The applicant shall send a copy of LNG Form 2025 by certified mail, return receipt requested, to all affected entities on the same date on which the form is filed with or sent to the Division [ Commission ]. The applicant shall include a notice to the affected entities that any objection shall be filed with the Division [ Commission ] within 18 calendar days of the postmark. The applicant shall file all return receipts with the Division [ Commission ] as proof of notice.

(2) - (3) (No change.)

(4) The Division [ Commission ] may require an applicant to give notice to persons in addition to those listed in paragraphs (2) and (3) of this subsection if doing so will not prejudice the rights of any entity.

(d) Objections to the requested exception shall be in writing, filed at the Division [ Commission ] within 18 calendar days of the postmark of the application, and shall be based on facts that tend to demonstrate that, as proposed, the exception would have an adverse effect on public health, safety, or welfare. The Division [ Commission ] may decline to consider objections based solely on claims of diminished property or esthetic values in the area.

(e) The Division [ Commission ] shall review the application within 21 business days of receipt of the application. If the Division [ Commission ] does not receive any objections from any affected entities as defined in subsection (c) of this section, the division director may grant administratively the exception if the director determines that the installation, as proposed, does not adversely affect the health or safety of the public. The Division [ Commission ] shall notify the applicant in writing by the end of the 21-day review period and, if approved, the installation shall be installed within one year from the date of approval. The Division [ Commission ] shall also advise the applicant at the end of the objection period as to whether any objections were received and whether the applicant may proceed. If the director denies the exception, the Division [ Commission ] shall notify applicant, in writing, of the reasons and any specific deficiencies. The applicant may modify the application to correct the deficiencies and resubmit the application along with a $30 resubmission fee, or may request a hearing on the matter in accordance with the General Rules of Practice and Procedure of the Railroad Commission of Texas. To be granted a hearing, the applicant shall file a written request for hearing within 14 calendar days of receiving notice of the administrative denial.

(f) A hearing shall be held when the Division [ Commission ] receives an objection, as set out in subsection (d) of this section from any affected entity or when the applicant requests one following an administrative denial. The Division [ Commission ] shall mail the notice of hearing to the applicant and all objecting entities by certified mail, return receipt requested, at least 21 calendar days prior to the date of the hearing. Hearings will be held in accordance with the Texas Government Code, Chapter 2001, et seq., the general rules of practice and procedure of the Railroad Commission, and the rules in this chapter.

(g) - (i) (No change.)

(j) A request for an exception shall expire if it is inactive for three months after the date of the letter in which the applicant was notified by the Division [ Commission ] of an incomplete request.

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State on February 28, 2006.

TRD-200601159

Mary Ross McDonald

Managing Director

Railroad Commission of Texas

Earliest possible date of adoption: April 16, 2006

For further information, please call: (512) 475-1295

16 TAC §14.2021

(Editor's note: The text of the following section proposed for repeal will not be published. The section may be examined in the offices of the Railroad Commission of Texas or in the Texas Register office, Room 245, James Earl Rudder Building, 1019 Brazos Street, Austin.)

The Commission proposes the repeal under Texas Natural Resources Code, §116.012, which authorizes the Commission to adopt rules and standards relating to liquefied natural gas activities to protect the health, welfare, and safety of the general public; and §116.034, as amended by HB 1162, 79th Legislature, Regular Session (2005).

Statutory authority: Texas Natural Resources Code, §§116.012 and 116.034.

Cross-reference to statute: Texas Natural Resources Code, Chapter 116.

Issued in Austin, Texas on February 28, 2006.

§14.2021.LNG Continuing Education Requirements.

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State on February 28, 2006.

TRD-200601160

Mary Ross McDonald

Managing Director

Railroad Commission of Texas

Earliest possible date of adoption: April 16, 2006

For further information, please call: (512) 475-1295

16 TAC §14.2310

The Commission proposes the amendments under Texas Natural Resources Code, §116.012, which authorizes the Commission to adopt rules and standards relating to liquefied natural gas activities to protect the health, welfare, and safety of the general public; and §116.034, as amended by HB 1162, 79th Legislature, Regular Session (2005).

Statutory authority: Texas Natural Resources Code, §§116.012 and 116.034.

Cross-reference to statute: Texas Natural Resources Code, Chapter 116.

Issued in Austin, Texas on February 28, 2006.

§14.2310.Emergency Refueling.

(a) - (b) (No change.)

(c) Prior to the mobile refueling vehicle being placed into service, the licensee or non-licensee shall file with the Safety Division (the Division) [ division ] a drawing showing the mounting, type of container, water capacity of the container, type of vehicle to be used, and the method of mounting. The vehicle shall not be placed into service until the Division [ division ] ensures that it complies with the applicable rules.

(d) Emergency refueling vehicles are not required to be registered with the License and Permit Section of the Gas Services Division [ Commission ].

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State on February 28, 2006.

TRD-200601161

Mary Ross McDonald

Managing Director

Railroad Commission of Texas

Earliest possible date of adoption: April 16, 2006

For further information, please call: (512) 475-1295