Operators of intrastate pipelines that begin and end in Texas, placing them under the Railroad Commission of Texas (RRC) pipeline safety regulation, can get a jump on 2019 pipeline mileage fees due April 1, 2019 by preparing now. The annual pipeline mileage fee is one of two fees authorized by the 85th Texas Legislature in 2017 to fund RRC’s pipeline safety regulatory program. On Oct. 1, 2018, the Commission began charging a $500 permit processing fee for each new and renewed permit.
The annual pipeline mileage fee due April 1 is calculated using pipeline permit mapping information supplied by operators in their T-4 permits. The Commission has divided intrastate pipelines into two groups defined below:
- Group A (RRC Regulated = Yes) includes transmission and gathering pipelines that are required by RRC rules to have a valid T-4 permit to operate and are subject to the regulations in 49 Code of Federal Regulations (CFR) Parts 192 and 195. Group A pipelines include natural gas transmission and storage pipelines, natural gas gathering pipelines, hazardous liquids transmission and storage pipelines, and hazardous liquids gathering pipelines.
- Group B (RRC Regulated = No) includes gathering pipelines that are required by RRC rules to have a valid T-4 permit to operate but are not subject to the regulations in 49 CFR Parts 192 and 195. Group B pipelines include intrastate production and gathering pipelines leaving a lease.
The miles in each permit of Group A and Group B pipelines respectively, are added together and rounded up to the nearest mile. The sum is used to calculate the annual mileage fee. Operators will use the number of miles permitted as of Dec. 31, 2018 to calculate their 2019 pipeline mileage fee. The deadline for payment without incurring late penalties is April 1, 2019.
Operators may review the mileage chart showing their permits for which a fee is owed by visiting the RRC website and selecting “Mileage Chart – 2019” under “Helpful Links”.
All mileage fees are required to be paid through the Pipeline Online Permitting System (POPS) in the RRC Online System. For instructions, visit the RRC website.
For additional information, contact RRC at 512-463-7058 or email@example.com.