Natural Gas Industry

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Raborn L. Reader, Jr.Texas Pipeline Association

Introduction

Overview Hurricane Event Cold Weather Event Curtailment Process Black Start Regulating Agencies

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Terminal Objectives

Identify the natural gas end users. Identify related issues during a Hurricane Event. Identify related issues during a Winter Weather

Event. Identify the first priority during the curtailment

process. Identify the regulating agencies for the gas

industry.

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U.S. Natural Gas Pipeline Network

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States Dependent on Natural Gas Pipelines

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U.S. Natural Gas PipelineCompressor Stations

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Southwest Region Natural GasPipeline Network

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Intrastate Natural Gas Pipelines

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U.S. Underground Natural Gas Storage Facilities

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Depleted Reservoir Storage Well

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Salt Cavern Underground Storage

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Natural Gas Transmission Path

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Hurricane Event

PreparationHurricane PlansTrainingCommunications

Alert LevelsLevel 1 – Gulf Coast/East CoastLevel 2 – Hurricane WatchLevel 3 – Hurricane Warning

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Hurricane Event

During StormPost Storm PeriodStorm Related Issues

Electrical OutagesTransmission RelatedDistribution RelatedGas SupplyOffshoreOn Land

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Winter Event

PreparationGas ControlVolume ManagementOperations

Alert LevelsLevel 1 - Normal ConditionsLevel 2 – Artic Front 2 days from RegionLevel 3 – Severe Winter Weather caused

by Artic Conditions

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Winter Event

During EventAfter EventCold Weather Related Issues

Electrical OutagesTransmission RelatedDistribution Related

Gas SupplyIce/Freeze-OffsRotating Load Shedding

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Power Plant

Compressor Station

Compressor Station

Compressor Station

Gathering Field

Underground Storage

Gas Processing Plant

Gas Processing Plant

Gas Processing Plant

Power Plant

Power Plant

Black StartNormal Conditions

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Black Start Unit-1

Compressor Station

Compressor Station

Compressor Station

Gathering Field

Underground Storage

Gas Processing Plant

Gas Processing Plant

Gas Processing Plant

Black StartUnit-3

Black Start Unit-2

Black Start1st Hour

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Black Start Unit-1

Underground Storage on back-up Generator

Gas Processing PlantCompressors on back-up Generator

Island #1 – TO #1

Island #2 – TO #2

Island #3 – TO #3

Black StartBeginning of Hour 1

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Black Start Unit-1

Underground StorageEnergized

Gas Processing Plant Energized

Gas Processing PlantEnergized

Island #1 – TO #1

Island #2 – TO #2

Island #3 – TO #3

Black StartBy End of Hour 1

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Black Start Unit-1

Black Start Unit-3

Compressor Station Energized

Compressor Station Energized

Compressor Station Energized

Gathering Field

UndergroundStorage

Gas Processing Plant

Gas Processing Plant

Gas Processing Plant Energized

Black Start Unit-2

Island #3 – TO #3

Island #2 – TO #2

Island #1 – TO #1

Black StartHour 2

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Black Start Unit-1

Black StartUnit-3

Compressor Station

Compressor Station

Compressor Station

Gathering Field

Underground Storage

Gas Processing Plant

Gas Processing Plant

Gas Processing Plant

Black Start Unit-2

Black Start Unit-4

Black StartHour 3 and later

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Black Start

Black Start Gas Coordination Group Formed in late 2013 and comprised of

ERCOT Transmission Service Providers (TSPs) Qualified Scheduling Entities (QSEs) Resource Entities (REs) Gas Transmission Operators (GTOs) Gas Suppliers (GSs)

Address coordination of gas supplies during Black Start Development of Gas Black Start Restoration Plans

Identify critical gas facilities/infrastructure Identify transmission/distribution suppliers

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Curtailment Program

Priorities A – use in residences, hospitals, schools, churches, public

safety buildings, agriculture B – (1) small commercial/industrial customers

(2) plant protection to prevent danger to personnel and facilities

(3) for human needs at commercial and industrial sites

(4) power generation for start up, safety and flame stabilization

C – medium size commercial customers D – medium size industrial customers E – (1) industrial customers for feed stocks

(2) small public utility electric generating systems

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Curtailment Program

Priorities F – power generating plants for electricity to serve customers

in A above and small commercial/industrial costumers

G – (1) medium size commercial customers

(2) small industrial not qualifying in B, C, D or E above H – power generating plants for electricity not included in F

and B (4) above I – (1) large users with no alternative fuels

(2) Feedstock as defined in E above with greater

consumption J – boiler fuel and other indirect flame applications not

qualifying under a preceding priority

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Curtailment Program

Priorities K – Interruptible sales – Railroad Commission requires

interruptible sales interrupted prior to curtailment of

A through J above. L – Interstate sales – these are to be interrupted prior to

beginning curtailment of A through K above and as

required by law.

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Regulatory Agencies

Federal Energy Regulatory Commission (FERC)

Natural Gas Section U.S. Department of Transportation

Pipeline and Hazardous Materials Safety Administration (PHMSA)

Office of Pipeline Safety (OPS) Texas Railroad Commission (RRC) Texas Attorney General Texas General Land Office Texas Comptroller’s Office Texas Commission on Environmental Quality (TCEQ) Texas Pubic Utility Commission (TxPUC)

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Texas Energy Profile

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QuestionsQuestions

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1. The end user of natural gas is ______________. a) Residentialb) Commercialc) Electric Power Generatorsd) All of the above

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2. During a Hurricane storm the related issues are ______________.

 a) Electrical outagesb) Gas supplyc) Both a and bd) high consumer demand

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3. During a winter weather event the related issues are ______________.

 a) Electrical outagesb) Gas supplyc) Low consumer demandd) Both a and b

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4. The first priority to maintain service during a curtailment is residences, _____________, schools, churches, public safety buildings and agriculture.

 a) Hospitalsb) Small public utility generatorsc) Medium sized industrial customersd) Medium sized commercial customers

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5. One of the regulating agencies for the natural gas industry is _____________.

a) FERC – Natural Gas Sectionb) Texas REc) NERCd) ERCOT compliance

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