California Code of Regulations › Title 14 - Natural Resources › Division 2 - Department of Conservation › Chapter 4 - Development, Regulation, and Conservation of Oil and Gas Resources › Subchapter 1 - Onshore Well Regulations › Article 5 - Requirements for Underground Gas Storage Projects › Section 1726.3 - Risk Management Plans

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a)
					 For each underground gas storage project, the operator shall submit a
					 project-specific Risk Management Plan to the Division for review and approval.
					 For underground gas storage projects in existence at the time that this section
					 goes into effect, the operator shall submit a Risk Management Plan in
					 accordance with the requirements of this section within six months of the
					 effective date of this section. If the Division identifies any deficiencies in
					 the Risk Management Plan, then the Division will consult with the operator and
					 identify an appropriate timeframe for correcting the deficiency. The Risk
					 Management Plan shall specify a schedule for the operator to review and submit
					 updates to the risk assessment and prevention and mitigation protocols to the
					 Division. The Division will review the Risk Management Plan periodically, but
					 not less than once every three years.
(b) The Risk Management Plan shall
					 demonstrate that stored gas will be confined to the approved reservoir and that
					 risks of damage to life, health, property, the environment, or natural
					 resources are identified and prevented or effectively mitigated. In accordance
					 with subdivision (c), the Risk Management Plan shall evaluate threats and
					 hazards associated with operation of the underground gas storage project and
					 identify prevention and mitigation protocols that effectively address those
					 threats and hazards. The Division may, in its discretion, require additional
					 data, additional risk assessment, or modification of prevention and mitigation
					 protocols. Risk assessment and prevention and mitigation protocols in the Risk
					 Management Plan shall be consistent with and in addition to any other existing
					 requirements.
(c) The Risk
					 Management Plan shall include a description of the methodology employed to
					 conduct the risk assessment and identify prevention and mitigation protocols,
					 with references to any third-party guidance followed in developing the
					 methodology. The methodology shall include at least the following:
(1) Identification of potential threats and
					 hazards associated with operation of the underground gas storage project,
					 including identification of the most important potential accident scenarios
					 associated with operation of the underground gas storage project;
(2) Quantitative risk assessment of the
					 probability of threats and hazards and their consequences, using an appropriate
					 methodology identified by the operator that includes:
(A) Evaluation of the frequency and range of
					 consequences, including estimates of the uncertainties in the numerical
					 values;
(B) Identification of the
					 principal equipment failures, external initiating events, and operational
					 errors associated with threats and hazards, and quantification of the impact of
					 these occurrences on the probability of and consequences of the threats and
					 hazards; and
(C) Identification of
					 the engineered or natural features that most affect the extent of the
					 consequences of threats and hazards, and a quantification of their relative
					 roles, including an estimate of the uncertainties in the
					 quantification;
(3)
					 Identification of possible prevention and mitigation protocols to reduce,
					 manage, or monitor risks, including evaluation of the efficacy and
					 cost-effectiveness of the prevention protocols;
(4) Risk assessment on a well-by-well basis,
					 to the extent that risks identified are specific to wells;
(5) Prioritization of risk prevention and
					 mitigation efforts based on potential severity and estimated likelihood of
					 occurrence of each threat;
(6)
					 Selection and implementation of prevention and mitigation protocols;
(7) Documentation of the risk assessment
					 process, including description of the basis for selection of prevention and
					 mitigation protocols;
(8) Data
					 feedback and validation throughout the risk assessment process; and
(9) Regular, periodic risk assessment reviews
					 to update information and evaluate the effectiveness of prevention and
					 mitigation protocols employed, which shall occur not less than once every three
					 years and in response to changed conditions or new
					 information.