Federal Requirements Under the Underground Injection Control (UIC) Program for Carbon Dioxide (CO2, 43492-43541 [E8-16626]
Download as PDF
43492
Federal Register / Vol. 73, No. 144 / Friday, July 25, 2008 / Proposed Rules
ENVIRONMENTAL PROTECTION
AGENCY
40 CFR Parts 144 and 146
[EPA–HQ–OW–2008–0390 FRL–8695–3]
RIN 2040–AE98
Federal Requirements Under the
Underground Injection Control (UIC)
Program for Carbon Dioxide (CO2)
Geologic Sequestration (GS) Wells
Environmental Protection
Agency (EPA).
ACTION: Proposed rule.
AGENCY:
SUMMARY: EPA is proposing Federal
requirements under the Safe Drinking
Water Act (SDWA) for underground
injection of carbon dioxide (CO2) for the
purpose of geologic sequestration (GS).
GS is one of a portfolio of options that
could be deployed to reduce CO2
emissions to the atmosphere and help to
mitigate climate change. This proposal
applies to owners or operators of wells
that will be used to inject CO2 into the
subsurface for the purpose of long-term
storage. It proposes a new class of well
and minimum technical criteria for the
geologic site characterization, fluid
movement, area of review (AoR) and
corrective action, well construction,
operation, mechanical integrity testing,
monitoring, well plugging, postinjection site care, and site closure for
the purposes of protecting underground
sources of drinking water (USDWs). The
elements of this proposal are based on
the existing Underground Injection
Control (UIC) regulatory framework,
with modifications to address the
unique nature of CO2 injection for GS.
If finalized, this proposal would help
ensure consistency in permitting
underground injection of CO2 at GS
operations across the U.S. and provide
requirements to prevent endangerment
of USDWs in anticipation of the
eventual use of GS to reduce CO2
emissions.
Comments must be received on
or before November 24, 2008. A public
hearing will be held during the public
comment period in September 2008.
EPA will notify the public of the date,
time and location of a public hearing in
a separate Federal Register notice.
ADDRESSES: Submit your comments,
identified by Docket ID No. EPA–HQ–
OW–2008–0390, by one of the following
methods:
• www.regulations.gov: Follow the
on-line instructions for submitting
comments.
• Mail: Water Docket, Environmental
Protection Agency, Mailcode: 2822T,
jlentini on PROD1PC65 with PROPOSALS2
DATES:
VerDate Aug<31>2005
17:19 Jul 24, 2008
Jkt 214001
1200 Pennsylvania Ave., NW.,
Washington, DC 20460.
• Hand Delivery: Water Docket, EPA
Docket Center (EPA/DC) EPA West,
Room 3334, 1301 Constitution Ave.,
NW., Washington, DC. Such deliveries
are only accepted during the Docket’s
normal hours of operation, and special
arrangements should be made for
deliveries of boxed information.
Instructions: Direct your comments to
Docket ID No. EPA–HQ–OW–2008–
0390. EPA’s policy is that all comments
received will be included in the public
docket without change and may be
made available online at https://
www.regulations.gov, including any
personal information provided, unless
the comment includes information
claimed to be Confidential Business
Information (CBI) or other information
whose disclosure is restricted by statute.
Do not submit information that you
consider to be CBI or otherwise
protected, through https://
www.regulations.gov or e-mail. The
https://www.regulations.gov Web site is
an ‘‘anonymous access’’ system, which
means EPA will not know your identity
or contact information unless you
provide it in the body of your comment.
If you send an e-mail comment directly
to EPA without going through
www.regulations.gov your e-mail
address will be automatically captured
and included as part of the comment
that is placed in the public docket and
made available on the Internet. If you
submit an electronic comment, EPA
recommends that you include your
name and other contact information in
the body of your comment and with any
disk or CD–ROM you submit. If EPA
cannot read your comment due to
technical difficulties and cannot contact
you for clarification, EPA may not be
able to consider your comment.
Electronic files should avoid the use of
special characters, any form of
encryption, and be free of any defects or
viruses.
Docket: All documents in the docket
are listed in the https://
www.regulations.gov index. Although
listed in the index, some information is
not publicly available, e.g., CBI or other
information whose disclosure is
restricted by statute. Certain other
material, such as copyrighted material,
will be publicly available only in hard
copy. Publicly available docket
materials are available either
electronically in www.regulations.gov or
in hard copy at the Water Docket, EPA/
DC, EPA West, Room 3334, 1301
Constitution Ave., NW., Washington,
DC. The Public Reading Room is open
from 8:30 a.m. to 4:30 p.m., Monday
through Friday, excluding legal
PO 00000
Frm 00002
Fmt 4701
Sfmt 4702
holidays. The telephone number for the
Public Reading Room is (202) 566–1744,
and the telephone number for the EPA
Docket Center is (202) 566–2426.
FOR FURTHER INFORMATION CONTACT: Lee
Whitehurst, Underground Injection
Control Program, Drinking Water
Protection Division, Office of Ground
Water and Drinking Water (MC–4606M),
Environmental Protection Agency, 1200
Pennsylvania Ave., NW., Washington,
DC 20460; telephone number: (202)
564–3896; fax number: (202) 564–3756;
e-mail address: whitehurst.lee@epa.gov.
For general information, contact the
Safe Drinking Water Hotline, telephone
number: (800) 426–4791. The Safe
Drinking Water Hotline is open Monday
through Friday, excluding legal
holidays, from 10 a.m. to 4 p.m. Eastern
time.
SUPPLEMENTARY INFORMATION:
I. General Information
This is a proposed regulation. If
finalized, these regulations would affect
owners or operators of injection wells
that will be used to inject CO2 into the
subsurface for the purposes of GS.
Regulated categories and entities would
include, but are not limited to, the
following:
Category
Examples of regulated entities
Private ......
Operators of CO2 injection wells
used for GS.
This table is not intended to be an
exhaustive list, but rather provides a
guide for readers regarding entities
likely to be regulated by this action.
This table lists the types of entities that
EPA is now aware could potentially be
regulated by this action. Other types of
entities not listed in the table could also
be regulated. To determine whether
your facility is regulated by this action,
you should carefully examine the
applicability criteria found in 146.81 of
this proposed rule. If you have
questions regarding the applicability of
this action to a particular entity, consult
the person listed in the preceding FOR
FURTHER INFORMATION CONTACT section.
Abbreviations and Acronyms
AASG American Association of State
Geologists
AoR Area of Review
API American Petroleum Institute
CaCO3 Calcium Carbonate
CAA Clean Air Act
CCS Carbon Capture and Storage
CERCLA Comprehensive Environmental
Response, Compensation, and Liability Act
CO2 Carbon Dioxide
CSLF Carbon Sequestration Leadership
Forum
DOE Department of Energy
E:\FR\FM\25JYP2.SGM
25JYP2
jlentini on PROD1PC65 with PROPOSALS2
Federal Register / Vol. 73, No. 144 / Friday, July 25, 2008 / Proposed Rules
ECBM Enhanced Coal Bed Methane
EFAB Environmental Finance Advisory
Board
EGR Enhanced Gas Recovery
EM Electromagnetic
EOR Enhanced Oil Recovery
EPA Environmental Protection Agency
ERT Electrical Resistance Tomography
FACA Federal Advisory Committee Act
GHGs Greenhouse Gases
GS Geologic Sequestration
GWPC Ground Water Protection Council
H2S Hydrogen Sulfide
ICR Information Collection Request
IEA International Energy Agency
IOGCC Interstate Oil and Gas Compact
Commission
IPCC Intergovernmental Panel on Climate
Change
LBNL Lawrence Berkeley National
Laboratory
LIDAR Light Detection and Ranging
MI Mechanical Integrity
MIT Mechanical Integrity Test
MMT Million Metric Tons
MMV Monitoring, Measurement, and
Verification
MPRSA Marine Protection, Research, and
Sanctuaries Act
NDWAC National Drinking Water Advisory
Council
NETL National Energy Technology
Laboratory
NGOs Non-Governmental Organizations
NODA Notice of Data Availability
NPDWR National Primary Drinking Water
Regulations
NTTAA National Technology Transfer and
Advancement Act
OIRA Office of Information and Regulatory
Affairs
OMB Office of Management and Budget
O&M Operation and Maintenance
ORD Office of Research and Development
NOX Nitrogen Oxides
PFC Perfluorocarbon
PNNL Pacific Northwest National
Laboratory
PRA Paperwork Reduction Act
PVT Pressure-Volume-Temperature
PWS Public Water Supply
RA Regulatory Alternative
RCRA Resource Conservation and Recovery
Act
RCSP Regional Carbon Sequestration
Partnerships
RFA Regulatory Flexibility Act
SACROC Scurry Area Canyon Reef
Operators Committee
SBREFA Small Business Regulatory
Enforcement Fairness Act
SDWA Safe Drinking Water Act
SOX Sulfur Oxides
TDS Total Dissolved Solids
UIC Underground Injection Control
UICPG#83 Underground Injection Control
Program Guidance # 83
UMRA Unfunded Mandates Reform Act
USDW Underground Source of Drinking
Water
VEF Vulnerability Evaluation Framework
Definitions
Annulus: The space between the well
casing and the wall of the bore hole; the
space between concentric strings of
VerDate Aug<31>2005
17:19 Jul 24, 2008
Jkt 214001
casing; space between casing and
tubing.
Area of review (AoR): The region
surrounding the geologic sequestration
project that may be impacted by the
injection activity. The area of review is
based on computational modeling that
accounts for the physical and chemical
properties of all phases of the injected
carbon dioxide stream.
Ball valve: A valve consisting of a
hole drilled through a ball placed in
between two seals. The valve is closed
when the ball is rotated in the seals so
the flow path no longer aligns with the
well casing.
Buoyancy: Upward force on one phase
(e.g., a fluid) produced by the
surrounding fluid (e.g., a liquid or a gas)
in which it is fully or partially
immersed, caused by differences in
pressure or density.
Capillary force: Adhesive force that
holds a fluid in a capillary or a pore
space. Capillary force is a function of
the properties of the fluid, and surface
and dimensions of the space. If the
attraction between the fluid and surface
is greater than the interaction of fluid
molecules, the fluid will be held in
place.
Caprock: See confining zone.
Carbon Capture and Storage (CCS):
The process of capturing CO2 from an
emission source, (typically) converting
it to a supercritical state, transporting it
to an injection site, and injecting it into
deep subsurface rock formations for
long-term storage.
Carbon dioxide plume: The extent
underground, in three dimensions, of an
injected carbon dioxide stream.
Carbon dioxide (CO2) stream: Carbon
dioxide that has been captured from an
emission source (e.g., a power plant),
plus incidental associated substances
derived from the source materials and
the capture process, and any substances
added to the stream to enable or
improve the injection process. This
subpart does not apply to any carbon
dioxide stream that meets the definition
of a hazardous waste under 40 CFR Part
261.
Casing: The pipe material placed
inside a drilled hole to prevent the hole
from collapsing. The two types of casing
in most injection wells are (1) surface
casing, the outer-most casing that
extends from the surface to the base of
the lowermost USDW and (2) long-string
casing, which extends from the surface
to or through the injection zone.
Cement: Material used to support and
seal the well casing to the rock
formations exposed in the borehole.
Cement also protects the casing from
corrosion and prevents movement of
injectate up the borehole. The
PO 00000
Frm 00003
Fmt 4701
Sfmt 4702
43493
composition of the cement may vary
based on the well type and purpose;
cement may contain latex, mineral
blends, or epoxy.
Confining zone: A geologic formation,
group of formations, or part of a
formation stratigraphically overlying the
injection zone that acts as a barrier to
fluid movement.
Corrective action: The use of Director
approved methods to assure that wells
within the area of review do not serve
as conduits for the movement of fluids
into underground sources of drinking
water (USDWs).
Corrosive: Having the ability to wear
away a material by chemical action.
Carbon dioxide mixed with water forms
carbonic acid, which can corrode well
materials.
Dip: The angle between a planar
feature, such as a sedimentary bed or a
fault, and the horizontal plane. The dip
of subsurface rock layers can provide
clues as to whether injected fluids may
be contained.
Director: The person responsible for
permitting, implementation, and
compliance of the UIC program. For UIC
programs administered by EPA, the
Director is the EPA Regional
Administrator; for UIC programs in
Primacy States, the Director is the
person responsible for permitting,
implementation, and compliance of the
State, Territorial, or Tribal UIC program.
Ductility: The ability of a material to
sustain stress until it fractures.
Enhanced Coal Bed Methane (ECBM)
recovery: The process of injecting a gas
(e.g., CO2) into coal, where it is
adsorbed to the coal surface and
methane is released. The methane can
be captured and produced for economic
purposes; when CO2 is injected, it
adsorbs to the surface of the coal, where
it remains sequestered.
Enhanced Oil or Gas Recovery (EOR/
EGR): Typically, the process of injecting
a fluid (e.g., water, brine, or CO2) into
an oil or gas bearing formation to
recover residual oil or natural gas. The
injected fluid thins (decreases the
viscosity) or displaces small amounts of
extractable oil and gas, which is then
available for recovery. This is also
known as secondary or tertiary recovery.
Flapper valve: A valve consisting of a
hinged flapper that seals the valve
orifice. In GS wells, flapper valves can
engage to shut off the flow of the CO2
when acceptable operating parameters
are exceeded.
Formation or geological formation: A
layer of rock that is made up of a certain
type of rock or a combination of types.
Geologic sequestration (GS): The longterm containment of a gaseous, liquid or
supercritical carbon dioxide stream in
E:\FR\FM\25JYP2.SGM
25JYP2
jlentini on PROD1PC65 with PROPOSALS2
43494
Federal Register / Vol. 73, No. 144 / Friday, July 25, 2008 / Proposed Rules
subsurface geologic formations. This
term does not apply to its capture or
transport.
Geologic sequestration project: An
injection well or wells used to emplace
a CO2 stream beneath the lowermost
formation containing a USDW. It
includes the subsurface threedimensional extent of the carbon
dioxide plume, associated pressure
front, and displaced brine, as well as the
surface area above that delineated
region.
Geophysical surveys: The use of
geophysical techniques (e.g., seismic,
electrical, gravity, or electromagnetic
surveys) to characterize subsurface rock
formations.
Injectate: The fluids injected. For the
purposes of this rule, this is also known
as the CO2 stream.
Injection zone: A geologic formation,
group of formations, or part of a
formation that is of sufficient areal
extent, thickness, porosity, and
permeability to receive carbon dioxide
through a well or wells associated with
a geologic sequestration project.
Lithology: The description of rocks,
based on color, mineral composition
and grain size.
Mechanical integrity (MI): The
absence of significant leakage within the
injection tubing, casing, or packer
(known as internal mechanical
integrity), or outside of the casing
(known as external mechanical
integrity).
Mechanical Integrity Test (MIT): A
test performed on a well to confirm that
a well maintains internal and external
mechanical integrity. MITs are a means
of measuring the adequacy of the
construction of an injection well and a
way to detect problems within the well
system before leaks occur.
Model: A representation or simulation
of a phenomenon or process that is
difficult to observe directly or that
occurs over long time frames. Models
that support GS can predict the flow of
CO2 within the subsurface, accounting
for the properties and fluid content of
the subsurface formations and the
effects of injection parameters.
Packer: A mechanical device set
immediately above the injection zone
that seals the outside of the tubing to the
inside of the long string casing.
Pinch-out: The location where a
porous, permeable formation that is
located between overlying and
underlying confining formations thins
to a zero thickness, and the confining
formations are in contact with each
other.
Pore space: Open spaces in rock or
soil. These are filled with water or other
fluids such as brine (i.e., salty fluid).
VerDate Aug<31>2005
17:19 Jul 24, 2008
Jkt 214001
CO2 injected into the subsurface can
displace pre-existing fluids to occupy
some of the pore spaces of the rocks in
the injection zone.
Post-injection site care: Appropriate
monitoring and other actions (including
corrective action) needed following
cessation of injection to assure that
USDWs are not endangered as required
under § 146.93.
Pressure front: The zone of elevated
pressure that is created by the injection
of carbon dioxide into the subsurface.
For GS projects, the pressure front of a
CO2 plume refers to the zone where
there is a pressure differential sufficient
to cause the movement of injected fluids
or formation fluids into a USDW.
Saline formations: Deep and
geographically extensive sedimentary
rock layers saturated with waters or
brines that have a high total dissolved
solids (TDS) content (i.e., over 10,000
mg/L TDS). Saline formations offer great
potential CO2 storage capacity.
Shut-off device: A valve coupled with
a control device which closes the valve
when a set pressure or flow value is
exceeded. Shut-off devices in injection
wells can automatically shut down
injection activities when operating
parameters unacceptably diverge from
permitted values.
Site closure: The point/time, as
determined by the Director following
the requirements under § 146.93, at
which the owner or operator of a GS site
has completed their post-injection site
care responsibilities.
Sorption (absorption, adsorption):
Absorption refers to gases or liquids
being incorporated into a material of a
different state; adsorption is the
adhering of a molecule or molecules to
the surface of a different molecule.
Stratigraphic zone (unit): A layer of
rock (or stratum) that is recognized as a
unit based on lithology, fossil content,
age or other properties.
Supercritical fluid: A fluid above its
critical temperature (31.1 °C for CO2)
and critical pressure (73.8 bar for CO2).
Supercritical fluids have physical
properties intermediate to those of gases
and liquids.
Total Dissolved Solids (TDS): The
measurement, usually in mg/L, for the
amount of all inorganic and organic
substances suspended in liquid as
molecules, ions, or granules. For
injection operations, TDS typically
refers to the saline (i.e., salt) content of
water-saturated underground
formations.
Transmissive fault or fracture: A fault
or fracture that has sufficient
permeability and vertical extent to allow
fluids to move between formations.
PO 00000
Frm 00004
Fmt 4701
Sfmt 4702
Trapping: The physical and
geochemical processes by which
injected CO2 is sequestered in the
subsurface. Physical trapping occurs
when buoyant CO2 rises in the
formation until it reaches a layer that
inhibits further upward migration or is
immobilized in pore spaces due to
capillary forces. Geochemical trapping
occurs when chemical reactions
between dissolved CO2 and minerals in
the formation lead to the precipitation
of solid carbonate minerals.
Underground Source of Drinking
Water (USDW): An aquifer or portion of
an aquifer that supplies any public
water system or that contains a
sufficient quantity of ground water to
supply a public water system, and
currently supplies drinking water for
human consumption, or that contains
fewer than 10,000 mg/l total dissolved
solids and is not an exempted aquifer.
Viscosity: The property of a fluid or
semi-fluid that offers resistance to flow.
As a supercritical fluid, CO2 is less
viscous than water and brine.
Table of Contents
I. General Information
II. What Is EPA Proposing?
A. Why Is EPA Proposing To Develop New
Regulations To Address GS of CO2?
B. What Is EPA’s Authority Under the
SDWA To Regulate Injection of CO2?
C. Who Implements the UIC Program?
D. What Are the Risks Associated With
CO2 GS?
E. What Steps Has EPA Taken To Inform
This Proposal?
F. Why Is EPA Proposing To Develop a
New Class of Injection Well for GS of
CO2?
G. How Would This Proposal Affect
Existing Injection Wells Under the UIC
Program?
H. What Are the Target Geologic
Formations for GS of CO2?
I. Is Injected CO2 Considered a Hazardous
Waste Under RCRA?
J. Is Injected CO2 Considered a Hazardous
Substance Under CERCLA?
III. Proposed Regulatory Alternative
A. Proposed Alternative
1. Proposed Geologic Siting Requirements
2. Proposed Area of Review and Corrective
Action Requirements
3. Proposed Injection Well Construction
Requirements
4. Proposed Injection Well Operating
Requirements
5. Proposed Mechanical Integrity Testing
Requirements
6. Proposed Plume and Pressure Front
Monitoring Requirements
7. Proposed Recordkeeping and Reporting
Requirements
8. Proposed Well Plugging, Post-Injection
Site Care, and Site Closure Requirements
9. Proposed Financial Responsibility and
Long-term Care Requirements
B. Adaptive Approach
E:\FR\FM\25JYP2.SGM
25JYP2
Federal Register / Vol. 73, No. 144 / Friday, July 25, 2008 / Proposed Rules
jlentini on PROD1PC65 with PROPOSALS2
IV. How Should UIC Program Directors
Involve the Public in Permitting
Decisions for GS Projects?
V. How Will States, Territories, and Tribes
Obtain UIC Program Primacy for Class VI
Wells?
VI. What Is the Proposed Duration of a Class
VI Injection Permit?
VII. Cost Analysis
A. National Benefits and Costs of the
Proposed Rule
B. Comparison of Benefits and Costs of
Regulatory Alternatives of the Proposed
Rule
C. Conclusions
VIII. Statutory and Executive Order Reviews
A. Executive Order 12866: Regulatory
Planning and Review
B. Paperwork Reduction Act (PRA)
C. Regulatory Flexibility Act (RFA)
D. Unfunded Mandates Reform Act
(UMRA)
E. Executive Order 13132: Federalism
F. Executive Order 13175: Consultation
and Coordination With Indian Tribal
Governments
G. Executive Order 13045: Protection of
Children From Environmental Health
Risks and Safety Risks
H. Executive Order 13211: Actions That
Significantly Affect Energy Supply,
Distribution, or Use
I. National Technology Transfer and
Advancement Act
J. Executive Order 12898: Federal Actions
To Address Environmental Justice in
Minority Populations and Low-Income
Populations
IX. References
II. What Is EPA Proposing?
EPA is proposing to create a new
category of injection well under its
existing Underground Injection Control
(UIC) Program with new Federal
requirements to allow for permitting of
the injection of CO2 for the purpose of
GS. Today’s proposal builds on existing
UIC regulatory components for key areas
including siting, construction,
operation, monitoring and testing, and
closure for injection wells that address
the pathways through which
underground sources of drinking water
(USDWs) may be endangered. The
Agency proposes to tailor existing UIC
program components so that they are
appropriate for the unique nature of
injecting large volumes of CO2 into a
variety of geological formations to
ensure that USDWs are not endangered.
In addition to protecting USDWs,
today’s proposed rule provides a
regulatory framework to promote
consistent approaches to permitting GS
projects across the U.S. and supports the
development of a key climate change
mitigation technology.
This proposal does not require any
facilities to capture and/or sequester
CO2; rather, this proposal focuses on
underground injection of CO2 and
outlines requirements that, if finalized,
VerDate Aug<31>2005
17:19 Jul 24, 2008
Jkt 214001
would protect USDWs under the SDWA.
The SDWA provides EPA with the
authority to develop regulations to
protect USDWs. The SDWA does not
provide authority to develop regulations
for all areas related to GS. These areas
include, but are not limited to, capture
and transport of CO2; determining
property rights (i.e., to permit its use for
GS and for possible storage credits);
transfer of liability from one entity to
another; and accounting or certification
for greenhouse gas (GHG) reductions.
EPA is not proposing regulations for
CO2 under the Clean Air Act (CAA) in
this proposed rulemaking.
A. Why Is EPA Proposing To Develop
New Regulations To Address GS of CO2?
1. What Is Geologic Sequestration (GS)?
GS is the process of injecting CO2
captured from an emission source (e.g.,
a power plant or industrial facility) into
deep subsurface rock formations for
long-term storage. It is part of a process
known as ‘‘carbon capture and storage’’
or CCS.
CO2 is first captured from fossilfueled power plants or other emission
sources. To transport captured CO2 for
GS, operators typically compress CO2 to
convert it from a gaseous state to a
supercritical fluid (IPCC, 2005). CO2
exists as a supercritical fluid at high
pressures and temperatures, and in this
state it exhibits properties of both a
liquid and a gas. After capture and
compression, the CO2 is delivered to the
sequestration site, typically by pipeline,
or alternatively using tanker trucks or
ships (WRI, 2007).
The CO2 is then injected into deep
subsurface rock formations via one or
more wells, using technologies that have
been developed and refined by the oil
and gas and chemical manufacturing
industries over the past several decades.
To store the CO2 as a supercritical fluid,
it would likely be injected at a depth
(greater than approximately 800 meters,
or 2,625 feet), such that a sufficiently
high pressure and temperature would be
maintained to keep the CO2 in a
supercritical state.
When injected in an appropriate
receiving formation, CO2 is sequestered
by a combination of trapping
mechanisms, including physical and
geochemical processes. Physical
trapping occurs when the relatively
buoyant CO2 rises in the formation until
it reaches a stratigraphic zone with low
fluid permeability (i.e., geologic
confining system) that inhibits further
upward migration. Physical trapping
can also occur as residual CO2 is
immobilized in formation pore spaces as
disconnected droplets or bubbles at the
PO 00000
Frm 00005
Fmt 4701
Sfmt 4702
43495
trailing edge of the plume due to
capillary forces. A portion of the CO2
will dissolve from the pure fluid phase
into native ground water and
hydrocarbons. Preferential sorption
occurs when CO2 molecules attach onto
the surfaces of coal and certain organicrich shales, displacing other molecules
such as methane. Geochemical trapping
occurs when chemical reactions
between the dissolved CO2 and minerals
in the formation lead to the
precipitation of solid carbonate minerals
(IPCC, 2005). The timeframe over which
CO2 will be trapped by these
mechanisms depends on properties of
the receiving formation and the injected
CO2 stream. Current research is focused
on better understanding these
mechanisms and the time required to
trap CO2 under various conditions.
The effectiveness of physical CO2
trapping is demonstrated by natural
analogs worldwide in a range of
geologic settings, where CO2 has
remained trapped for millions of years.
For example, CO2 has been trapped for
more than 65 million years under the
Pisgah Anticline, northeast of the
Jackson Dome in Mississippi and
Louisiana, with no evidence of leakage
from the confining formation (IPCC,
2005).
2. Why Is Geologic Sequestration Under
Consideration as a Climate Change
Mitigation Technology?
Greenhouse gases (GHGs) perform the
necessary function of keeping the
planet’s surface warm enough for
human habitation. But, the
concentrations of GHGs continue to
increase in the atmosphere, and
according to data from the National
Oceanic and Atmospheric
Administration (NOAA) and National
Aeronautics and Space Administration
(NASA), the Earth’s average surface
temperature has increased by about 1.2
to 1.4 °F in the last 100 years. Eleven
of the last twelve years rank among the
twelve warmest years on record (since
1850), with the two warmest years being
1998 and 2005. The Intergovernmental
Panel on Climate Change (IPCC) has
concluded that much of the warming in
recent decades is very likely the result
of human activities (IPCC, 2007). The
burning of fossil fuels (e.g., from coalfired electric plants and other sources in
the electricity and industrial sectors) is
a major contributor to human-induced
greenhouse gas emissions.
Fossil fuels are expected to remain the
mainstay of energy production well into
the 21st century, and increased
concentrations of CO2 are expected
unless energy producers reduce the CO2
emissions to the atmosphere. The
E:\FR\FM\25JYP2.SGM
25JYP2
jlentini on PROD1PC65 with PROPOSALS2
43496
Federal Register / Vol. 73, No. 144 / Friday, July 25, 2008 / Proposed Rules
capture and storage of CO2 would
enable the continued use of coal in a
manner that greatly reduces the
associated CO2 emissions while other
safe and affordable alternative energy
sources are developed in the coming
decades. Given the United States’
abundant coal resources and reliance on
coal for power generation, CCS could be
a key mitigation technology for
achieving domestic emissions
reductions.
Estimates based on DOE and IEA
studies indicate that areas of the U.S.
with appropriate geology could
theoretically provide storage potential
for over 3,000 gigatons (or 3,000,000
megatons; Mt) of geologically
sequestered CO2. Theoretically, this
capacity could be large enough to store
a thousand years of CO2 emissions from
nearly 1,000 coal-fired power plants.
Worldwide, there appears to be
significant capacity in subsurface
formations both on land and under the
seafloor to sequester CO2 for hundreds,
if not thousands of years. CCS
technologies could potentially represent
a significant percentage of the
cumulative effort for reducing CO2
emissions worldwide.
While predictions about large-scale
availability and the rate of CCS project
deployment are subject to considerable
uncertainty, EPA analyses of
Congressional climate change legislative
proposals (the McCain-Lieberman bill S.
280, the Bingaman-Specter bill S. 1766,
and the Lieberman-Warner bill S. 2191)
indicate that CCS has the potential to
play a significant role in climate change
mitigation scenarios. For example,
analysis of S. 2191 indicates that CCS
technology could account for 30 percent
of CO2 emission reductions in 2050
(USEPA, 2008a). It is important to note
that GS is only one of a portfolio of
options that could be deployed to
reduce CO2 emissions. Other options
could include efficiency improvements
and the use of alternative fuels and
renewable energy sources. Today’s
proposal provides a regulatory
framework to protect USDWs as this key
climate mitigation technology is
developed and deployed. This proposal
provides certainty to industry and the
public about requirements that would
apply to injection, by providing
consistency in requirements across the
U.S., and transparency about what
requirements apply to owners or
operators.
Establishing a supporting regulatory
framework for the future development
and deployment of CCS technology can
provide the regulatory certainty needed
to foster industry adoption of CCS,
which is crucial to supporting the goals
VerDate Aug<31>2005
17:19 Jul 24, 2008
Jkt 214001
of any proposed climate change
legislation. This proposed rule is
consistent with and supports a strategy
to address climate change through: (1)
Slowing the growth of emissions; (2)
strengthening science, technology and
institutions; and (3) enhancing
international cooperation. EPA plays a
significant role in implementing this
strategy through encouraging voluntary
GHG emission reductions, and working
with other agencies, including DOE, to
establish programs that promote climate
technology and science.
B. What Is EPA’s Authority Under the
SDWA To Regulate Injection of CO2?
Underground injection wells are
regulated under the authority of Part C
of the Safe Drinking Water Act (42
U.S.C. 300h et seq.). The SDWA is
designed to protect the quality of
drinking water sources in the U.S. and
prescribes that EPA issue regulations for
State programs that contain ‘‘minimum
requirements for effective programs to
prevent underground injection which
endangers drinking water sources.’’
Congress further defined endangerment
as follows:
Underground injection endangers drinking
water sources if such injection may result in
the presence in underground water which
supplies or can reasonably be expected to
supply any public water system of any
contaminant, and if the presence of such
contaminant may result in such system’s not
complying with any national primary
drinking water regulation or may otherwise
adversely affect the health of persons
(Section 1421(d)(2) of the SDWA, 42 U.S.C.
300h(d)(2)).
Under this authority, the Agency has
promulgated a series of UIC regulations
at 40 CFR parts 144 through 148. The
chief goal of any federally approved UIC
Program (whether administered by a
State, Territory, Tribe or EPA) is the
protection of USDWs. This includes not
only those formations that are presently
being used for drinking water, but also
those that can reasonably be expected to
be used in the future. EPA has
established through its UIC regulations
that USDWs are underground aquifers
with less than 10,000 milligrams per
liter (mg/L) total dissolved solids (TDS)
and which contain a sufficient quantity
of ground water to supply a public
water system (40 CFR 144.3). Section
1421(b)(3)(A) of the Act also provides
that EPA’s UIC regulations shall ‘‘permit
or provide for consideration of varying
geologic, hydrological, or historical
conditions in different States and in
different areas within a State.’’
EPA promulgated administrative and
permitting regulations, now codified in
40 CFR Parts 144 and 146, on May 19,
PO 00000
Frm 00006
Fmt 4701
Sfmt 4702
1980 (45 FR 33290), and technical
requirements, in 40 CFR Part 146, on
June 24, 1980 (45 FR 42472). The
regulations were subsequently amended
on August 27, 1981 (46 FR 43156),
February 3, 1982 (47 FR 4992), January
21, 1983 (48 FR 2938), April 1, 1983 (48
FR 14146), May 11, 1984 (49 FR 20138),
July 26, 1988 (53 FR 28118), December
3, 1993 (58 FR 63890), June 10, 1994 (59
FR 29958), December 14, 1994 (59 FR
64339), June 29, 1995 (60 FR 33926),
December 7, 1999 (64 FR 68546), May
15, 2000 (65 FR 30886), June 7, 2002 (67
FR 39583), and November 22, 2005 (70
FR 70513). EPA’s authority to regulate
GS was further clarified under the
Energy Independence and Security Act
of 2007, which stated that all
regulations must be consistent with the
requirements of the SDWA.
Under the SDWA, the injection of any
‘‘fluid’’ is subject to the requirements of
the UIC program. ‘‘Fluid’’ is defined
under 40 CFR 144.3 as any material or
substance which flows or moves
whether in a semisolid, liquid, sludge,
gas or other form or state, and includes
the injection of liquids, gases, and
semisolids (i.e., slurries) into the
subsurface. Examples of the fluids
currently injected into wells include
CO2 for the purposes of enhancing
recovery of oil and natural gas, water
that is stored to meet water supply
demands in dry seasons, and wastes
generated by industrial users. CO2
injected for the purpose of GS is subject
to the SDWA (42 U.S.C. 300f et seq.).
EPA regulates both pollutants and
commodities under the UIC provisions;
however, today’s proposal does not
address the status of CO2 as a pollutant
or commodity. In addition, whether or
not a fluid could be sold on the market
as a commodity is outside the scope of
EPA’s authority under the SDWA to
protect USDWs.
There are limited injection activities
that are exempt from UIC requirements
including the storage of natural gas
(Section 1421(b)(2)(B)) and specific
hydraulic fracturing fluids. This
exclusion applies to the storage of
natural gas as it is commonly defined—
a hydrocarbon—and not to injection of
other matter in a gaseous state such as
CO2. The Energy Policy Act of 2005
excluded ‘‘the underground injection of
fluids or other propping agents (other
than diesel fuels) pursuant to hydraulic
fracturing operations related to oil, gas,
or geothermal producing activities.’’ A
more detailed summary of EPA’s
authority to regulate the injection of CO2
can be found in the docket.
Other authorities: Today’s proposal
applies to injection wells in the U.S.
including those in State territorial
E:\FR\FM\25JYP2.SGM
25JYP2
Federal Register / Vol. 73, No. 144 / Friday, July 25, 2008 / Proposed Rules
jlentini on PROD1PC65 with PROPOSALS2
waters. Wells up to three miles offshore
may be subject to other authorities or
may require approval under other
authorities such as the Marine
Protection, Research, and Sanctuaries
Act (MPRSA). EPA recently submitted
to Congress proposed changes to
MPRSA to implement the 1996 Protocol
to the London Convention on ocean
dumping (the ‘‘London Protocol’’).
Among the proposed changes is a
provision to allow for and regulate
carbon sequestration in sub-seabed
geological formations under the
MPRSA.
C. Who Implements the UIC Program?
Section 1422 of the SDWA provides
that States, Territories and federally
recognized Tribes may apply to EPA for
primary enforcement responsibility to
administer the UIC program; those
governments receiving such authority
are referred to as ‘‘Primacy States.’’
Section 1422 requires Primacy States to
meet EPA’s minimum Federal
requirements for UIC programs,
including construction, operating,
monitoring and testing, reporting, and
closure requirements for well owners or
operators. Where States, Territories, and
Tribes do not seek this responsibility or
fail to demonstrate that they meet EPA’s
minimum requirements, EPA is required
to implement a UIC program for them by
regulation.
Additionally, section 1425 allows
States, Territories, and Tribes seeking
primacy for Class II wells to
demonstrate that their existing
standards are effective in preventing
endangerment of USDWs. These
programs must include requirements for
permitting, enforcement, inspection,
monitoring, recordkeeping, and
reporting that demonstrate the
effectiveness of their requirements.
Thirty-three States and three
Territories currently have primacy to
implement the UIC program. EPA shares
implementation responsibility with
seven States and directly implements
the UIC Program for all well classes in
10 states, two Territories, the District of
Columbia, and all Tribes. At the time of
this proposal, no Tribes have been
approved for primacy for the UIC
Program. However, at the time of this
published notice, Fort Peck Assiniboine
and Sioux Tribes in EPA Region 8 and
the Navajo Nation in EPA Region 9 have
pending primacy applications.
Although EPA believes that the most
effective approach for the
comprehensive management of CO2 GS
projects would be achieved at the State
and Tribal level, it is recognized that
some injection activities may raise
cross-state boundary issues that are
VerDate Aug<31>2005
17:19 Jul 24, 2008
Jkt 214001
beyond the scope of this rulemaking.
EPA is aware that some States with
primacy for the UIC program are
actively engaged in the process of
developing their own regulatory
frameworks for the GS of CO2. In some
cases, these frameworks include
capture, transportation and injection
requirements. While EPA encourages
States to move forward with initiatives
to protect USDWs and public health, it
is important to note that States wishing
to retain UIC primacy will need to
promulgate regulations that are at least
as stringent as those that will ultimately
be finalized following this proposed
rulemaking. In an attempt to reduce
uncertainty in this proposed
rulemaking, the Agency will keep States
apprised of its efforts to establish new
Federal UIC GS requirements.
Additionally, EPA seeks comment on
any aspects of the ongoing State efforts
to regulate the GS of CO2 and how these
efforts might be used to better inform a
final Federal rulemaking.
D. What Are the Risks Associated With
CO2 GS?
An improperly managed GS project
has the potential to endanger USDWs.
The factors that increase the risk of
USDW contamination are complex and
can include improper siting,
construction, operation and monitoring
of GS projects. Today’s proposal
addresses endangerment to USDWs by
establishing new Federal requirements
for the proper management of CO2
injection and storage. Risks to USDWs
from improperly managed GS projects
can include CO2 migration into USDWs,
causing the leaching and mobilization of
contaminants (e.g., arsenic, lead, and
organic compounds), changes in
regional groundwater flow, and the
movement of saltier formation fluids
into USDWs, causing degradation of
water quality.
While the focus of today’s proposal is
the protection of USDWs, EPA
recognizes that injection activities could
pose additional risks that are unrelated
to the protection of USDWs including
risks to air, human health, and
ecosystems. The measures taken to
prevent migration of CO2 to USDWs in
today’s proposal will likely also prevent
the migration of CO2 to the surface.
However, regulating such surface/
atmospheric releases of CO2 are outside
the scope of this proposal and SDWA
authority. A more detailed discussion
follows.
Potential USDW Impacts
Injected CO2 is likely to come in
contact with water in the formation
fluids of the geologic formations into
PO 00000
Frm 00007
Fmt 4701
Sfmt 4702
43497
which it is injected. When CO2 mixes
with water it forms a weak acid known
as carbonic acid. Over time, carbonic
acid could acidify formation waters
potentially causing leaching and
mobilization of naturally occurring
metals or other contaminants (e.g.,
arsenic, lead, and organic compounds).
CO2 may also release contaminants into
solution by replacing molecules that are
sorbed to the surface of the formation,
for example, organic molecules such as
polycyclic aromatic hydrocarbons
(PAHs) in coal beds. The migration of
formation fluids containing mobilized
contaminants could cause
endangerment of USDWs.
Another concern for USDWs is the
presence of impurities in the CO2
stream. These impurities, although a
relatively small percentage of the total
fluid, could include hydrogen sulfide
and sulfurous and nitrous oxides.
Because of the volume of CO2 that could
be injected, there may be a risk that cocontaminants in the CO2 stream could
endanger a USDW if the injectate
migrates into a USDW. Additionally,
when fluids are injected in large
quantities, the potential exists for
injection to force native brines
(naturally occurring salty water) into
USDWs.
Improperly operated injection
activities may cause geomechanical
and/or geochemical effects which may
deteriorate the integrity of the initially
intact caprock overlying a storage
reservoir. For example, injection of CO2
at high pressure could induce fracturing
or could open existing fractures, thereby
increasing movement through the
caprock and enabling CO2 to migrate out
of the storage reservoir, and potentially
into USDWs.
Other Potential Impacts
Human Health: Improperly operated
injection activities or ineffective longterm storage could result in the release
of injected CO2 to the atmosphere,
resulting in the potential to impact
human health and surrounding
ecosystems under certain
circumstances. While CO2 is present
normally in the atmosphere, at very
high concentrations and with prolonged
exposure, CO2 can be an asphyxiant. In
addition, direct exposure to elevated
levels of CO2 can cause both chronic
(e.g., increased breathing rate, vision
and hearing impairment) and acute
health effects to humans and animals.
Wind speed and direction, topography
and geographic location can have a role
in the severity of the human health
impact of a CO2 release.
EPA considers that risk of
asphyxiation and other chronic and
E:\FR\FM\25JYP2.SGM
25JYP2
jlentini on PROD1PC65 with PROPOSALS2
43498
Federal Register / Vol. 73, No. 144 / Friday, July 25, 2008 / Proposed Rules
acute health effects from airborne
exposure resulting from CO2 injection
activities (even in the case of leakage or
accidental exposure) is minimal. This
finding is based on experience gained in
the oil and gas industry, experience
from international GS projects, and
evaluations of large scale releases of
naturally occurring CO2.
EPA collected information on the use
of CO2 injection in the oil and gas
industry which has decades of
experience in drilling through highly
pressurized formations and injecting
CO2 for the purpose of enhanced
recovery. Internationally, CO2 has been
injected on very large scales at three
sites: At Sleipner in the North Sea, at In
Salah in Algeria, and in the Weyburn
Field in Alberta, Canada (see section E.3
of this document). There have been no
documented cases of leakage from these
projects, nor has there been release and
surface accumulation of CO2 such that
asphyxiation would have been possible.
However, some CO2 releases from
injection activity have been
documented. An example of a
significant CO2 leak occurred at Crystal
Geyser, Utah. CO2 and water erupted
from an abandoned oil exploration well
due to improper well plugging. This
well continues to erupt periodically and
discharges 12,000 kilotons of CO2
annually. Studies indicated that within
a few meters of the well, CO2
concentrations were below levels that
could adversely affect human health
(Lewicki et al., 2006).
EPA also evaluated the occurrence of
natural discharges of CO2 to determine
whether such releases could be caused
by CO2 injection or whether injection
could result in release of similar
magnitudes. Although natural
underground CO2 reservoirs exist
throughout the world in volcanically
active areas, there are very few instances
of rapid discharge of large amounts of
CO2 to the surface (Lewicki et al., 2006).
Unusually large and rapid releases of
CO2 from lake bottom storage reservoirs
occurred at Lake Nyos and Lake
Monoun in Cameroon in the 1980s,
causing asphyxiation. These
catastrophic events stemmed from a
phenomenon known as ‘‘limnic
eruption.’’ Prolonged high ambient
temperatures led to prolonged
stratification that allowed naturally
occurring CO2 to slowly accumulate at
the bottom of the lakes over many years.
Large volumes of CO2 escaped during an
abrupt lake turnover, possibly prompted
by volcanic activity.
While lake turnover can bring CO2
stored in the deepest layers of lake
water to the surface almost
instantaneously, geologic confining
VerDate Aug<31>2005
17:19 Jul 24, 2008
Jkt 214001
systems do not experience this type of
rapid and complete turnover. GS would
store CO2 beneath many layers of rock
with a well-defined geologic confining
system. Even if a geologic confining
system were compromised, any
migration of CO2 towards the surface
would not be analogous to a limnic
eruption. Pathways for CO2 leakage from
geologic storage reservoirs are generally
conductive faults or fractures. In some
cases CO2 may spread diffusely through
overlying rocks and soils (Lewicki et al.,
2006). None of these conditions is a
likely conduit for release of CO2 on the
scale of the releases at Lakes Nyos and
Monoun.
Ecosystem: Improperly operated CO2
injection activities resulting in a release
of CO2 to the atmosphere may have a
range of effects on exposed terrestrial
and aquatic ecosystems. Due to
organisms’ varied sensitivities to
environmental and habitat changes,
certain organisms may be adversely
affected at different CO2 exposure
levels. Surface-dwelling animals,
including mammals and birds, could be
affected similarly to humans when
directly exposed to elevated levels of
CO2. The exposure could cause both
chronic and acute health effects
depending on the concentration and
duration of exposure (Benson et al.,
2002). Plants, while dependent upon
CO2 for photosynthesis, could also be
adversely affected by elevated CO2
levels in the soil because the CO2 will
inhibit respiration (Vodnik et al., 2006).
Soil acidity changes resulting from
increased CO2 concentrations may
adversely impact both plant (McGee and
Gerlach, 1998) and soil dwelling
organisms (Benson et al., 2002).
Elevated CO2 concentrations in aquatic
ecosystems can impede fish respiration
resulting in suffocation (Fivelstad et al.,
2003), decrease pH to lethal levels and
reduce the calcification in shelled
organisms, and may adversely affect
photosynthesis of some aquatic
organisms (Turley et al., 2006). The risk
of adverse impacts to ecosystems from
properly managed CO2 injection
activities is minimal.
Seismic events: Improperly operated
injection of CO2 could raise pressure in
the formation, and if too high, injection
pressure could ‘‘re-activate’’ otherwise
dormant faults, potentially inducing
seismic events (earthquakes). Rarely,
small induced seismic events have been
associated with past injection. Before a
Federal UIC Program was formed,
injection activities at the Rocky
Mountain Arsenal in Colorado from
1963 to 1968 induced measurable
seismic activity. This incident was the
result of poor site characterization and
PO 00000
Frm 00008
Fmt 4701
Sfmt 4702
well operation and was among the
primary drivers that prompted Congress
to pass legislation establishing the UIC
Program. Recently, the IPCC (2005)
concluded that the risks of induced
seismicity are low.
Today’s proposal contains safeguards
to ensure that potential endangerment to
USDWs from CO2 injection is addressed
before the commencement of full-scale
GS projects. While preventing releases
of CO2 to the atmosphere is not within
the scope of this proposal, today’s
proposed rulemaking also addresses the
risks posed by releases to the
atmosphere by ensuring that injected
CO2 remains in the confining
formations. The measures outlined in
today’s proposed rulemaking to prevent
endangerment of USDWs may also
prevent migration of CO2 to the surface.
A more complete discussion of the
potential risks posed by GS is in the
Vulnerability Evaluation Framework for
Geologic Sequestration of Carbon
Dioxide (VEF) (USEPA, 2008b).
E. What Steps Has EPA Taken To
Inform This Proposal?
EPA has taken a number of steps to
support today’s proposal including: (1)
Building on the experience of the UIC
Program; (2) identifying the risks to
USDWs from GS activities; (3) tracking
the results on ongoing research; (4)
identifying technical and regulatory
issues associated with pilot and fullscale GS projects; (5) coordinating with
stakeholders on the rulemaking process;
and (6) providing guidance and
reviewing permits for initial pilot-scale
projects.
1. Building on the Existing UIC Program
Framework To Specifically Address CO2
Injection
EPA’s UIC regulations prohibit
injection wells from causing ‘‘the
movement of fluid containing any
contaminant into an underground
source of drinking water, if the presence
of that contaminant may cause a
violation of any primary drinking water
regulation * * * or may otherwise
adversely affect the health of persons’’
(40 CFR 144.12(a)). The federal UIC
Program has been implemented since
1980 and has responsibility for
managing over 800,000 injection wells.
The programmatic components of the
UIC Program are designed to prevent
fluid movement into USDWs by
addressing the potential pathways
through which injected fluids can
migrate into USDWs. These
programmatic components are described
in general below:
• Siting: EPA requires injection wells
to be sited to inject into a zone capable
E:\FR\FM\25JYP2.SGM
25JYP2
jlentini on PROD1PC65 with PROPOSALS2
Federal Register / Vol. 73, No. 144 / Friday, July 25, 2008 / Proposed Rules
of storing the fluid, and to inject below
a confining system that is free of known
open faults or fractures that could allow
upward fluid movement that endangers
USDWs.
• Area of Review (AoR) and
Corrective Action: The Agency requires
examination of both the vertical and
horizontal extent of the area that will
potentially be influenced by injection
and storage activities and identification
of all artificial penetrations in the area
that may act as conduits for fluid
movement into USDWs (e.g., active and
abandoned wells) and, as needed,
perform corrective action to these open
wells (i.e., artificial penetrations).
• Well Construction: EPA requires
injection wells to be constructed using
well materials and cements that can
withstand injection of fluids over the
anticipated life span of the project.
• Operation: Injection pressures must
be monitored so that fractures that could
serve as fluid movement conduits are
neither propagated into the layers in
which fluids are injected or initiated in
the confining systems above.
• Mechanical Integrity Testing (MIT):
The integrity of the injection well
system must be monitored at an
appropriate frequency to provide
assurance that the injection well is
operating as intended and is free of
significant leaks and fluid movement in
the well bore.
• Monitoring: Owners or operators
must monitor the injection activity
using available technologies to verify
the location of the injected fluid, the
pressure front, and demonstrate that
injected fluids are confined to intended
storage zones (and, therefore, injection
activities are protective of USDWs).
• Well Plugging and Post-Injection
Site Care: At the end of the injection
project, EPA requires injection wells to
be plugged in a manner that ensures that
these wells will not serve as conduits
for future fluid movement into USDWs.
Additionally, owners or operators must
monitor injection wells to ensure fluids
in the storage zone do not pose an
endangerment to USDWs.
Today’s proposal builds upon these
longstanding UIC programmatic
components and tailors them based on
the current state of knowledge about the
injection of CO2 for GS purposes. The
timeframes involved in preparing and
completing each of these components
are, in general, project specific (i.e.,
dependent upon regional geology;
location; cumulative injection volumes;
additional state and local requirements;
industry specificity).
VerDate Aug<31>2005
17:19 Jul 24, 2008
Jkt 214001
2. Identifying the Risks to USDWs From
Injection of CO2
The existing UIC program provides a
foundation for designing a regulatory
framework for GS projects that prevents
endangerment to USDWs. The Agency
has evaluated the risks of CO2 injection
to USDWs to determine how best to
tailor the existing UIC regulations to
address the buoyant and viscous
properties of CO2 and the large volumes
that could be injected.
EPA developed the Vulnerability
Evaluation Framework (VEF), an
analytical framework that identifies and
offers approaches to evaluate the
potential for a GS project to experience
CO2 leakage and associated adverse
impacts. The VEF is a high-level
screening approach that can be used to
identify key GS system attributes that
should be evaluated further to establish
site suitability and targeted monitoring
programs. The VEF is focused on the
three main parts of GS systems: The
injection zone, the confining system,
and the CO2 stream. The VEF first
identifies approaches to evaluate key
geologic attributes of GS systems that
could influence vulnerability to leakage
or pressure changes. It then describes an
approach to define the area that should
be evaluated for adverse impacts
associated with leakage or pressure
changes. Finally, the VEF identifies
receptors that could be adversely
impacted if leakage or pressure changes
were to occur. The assessment of
vulnerabilities to leakage and pressure
changes, and of the potential impacts to
receptors, is described in a series of
detailed decision-support flowcharts.
(Some of the impacts addressed in the
VEF, e.g., to the atmosphere or
ecological receptors, are outside of the
scope of today’s proposal.) The VEF
report (USEPA, 2008b) is included in
the docket for this proposed rulemaking.
EPA and the Department of Energy
(DOE) are jointly funding the Lawrence
Berkeley National Laboratory (LBNL) to
study potential impacts of CO2 injection
on ground water aquifers and drinking
water sources. As part of the same
study, LBNL is also assessing potential
changes in regional ground water flow,
including displacement of pre-existing
saline water or hydrocarbons that could
impact USDWs or other resources. EPA
and DOE are also jointly funding the
Pacific Northwest National Laboratory
(PNNL) to perform technical analyses on
conducting site assessments, evaluating
reservoir suitability, and modeling the
flow of injected CO2 in geologic
formations.
PO 00000
Frm 00009
Fmt 4701
Sfmt 4702
43499
3. Tracking the Results of CO2 GS
Research Projects
EPA is tracking the progress and
results of national and international GS
research projects. DOE leads
experimental field research on GS in the
U.S. in conjunction with the Regional
Carbon Sequestration Partnerships
(RCSPs) program. Collectively, the
seven RCSPs represent regions
encompassing 97 percent of coal-fired
CO2 emissions, 97 percent of industrial
CO2 emissions, 96 percent of the total
U.S. land mass, and nearly all the GS
sites in the U.S. potentially available for
carbon storage. Approximately 400
organizations, including State
geologists, industry and environmental
organizations, and national laboratories
are involved with the RCSPs.
DOE’s 2007 Roadmap (DOE, 2007a)
describes DOE-sponsored research
designed to gather data on the
effectiveness and safety of CO2 GS in
various geologic settings through the
RSCPs. The Roadmap describes three
phases of research, each of which builds
upon the previous phase. During the
Characterization Phase (2003 to 2005),
the partnerships studied regionallyspecific sequestration approaches as
well as potentially needed regulations
and infrastructure requirements for GS
deployment. During the Validation
Phase (2005–2009), approximately 25
pilot tests will be performed to validate
the most promising GS technologies,
evaluate regional CO2 repositories, and
identify best management practices for
future deployment. During the
Deployment Phase (2008–2017), the
partnerships will conduct large volume
carbon storage tests to demonstrate that
large-scale CO2 injection and storage can
be achieved safely and economically.
EPA will use the data collected from
these projects to support decisions in
the final GS rule. Additional
information on DOE’s research and the
partnerships is available at https://
www.fossil.energy.gov/sequestration/
partnerships/.
EPA is also communicating with other
research organizations and academic
institutions conducting GS research.
These institutions include Princeton
University, which has a research
program for assessing potential
problems with degradation of well
material from the geologic sequestration
of CO2, and the Massachusetts Institute
of Technology, which has a CCS
program emphasizing safe and effective
future use of coal as a prime energy
source.
EPA is also monitoring the progress of
international GS efforts. Three projects
of note are underway in the North Sea,
E:\FR\FM\25JYP2.SGM
25JYP2
jlentini on PROD1PC65 with PROPOSALS2
43500
Federal Register / Vol. 73, No. 144 / Friday, July 25, 2008 / Proposed Rules
Algeria, and Canada, whose results are
being used to inform today’s proposal.
The Sleipner Project, located off the
Norwegian coast in the North Sea, is the
first commercial scale GS project into a
saline formation. Approximately 1
Million tones (Mt) CO2 is removed
annually from the natural gas produced
in the Sleipner West Gas Field and
injected approximately 800 m (2,625 ft)
below the seabed. Injection began in
August 1996, and operators expect to
store 20 Mt CO2 over the expected 25year life of the project. Activities
include baseline data gathering and
evaluation, reservoir characterization
and simulation, assessment of the need
and cost for monitoring wells, and
geophysical modeling. Seismic timelapse surveys have been used to monitor
movement of the CO2 plume and
demonstrate effectiveness of the cap
rock (IPCC, 2005).
The In Salah Gas Project, in the
central Saharan region of Algeria, is the
world’s first large-scale CO2 storage
project in a gas reservoir. CO2 is
stripped from natural gas produced from
the Krechba Field and re-injected via
three horizontal injection wells into a
1,800 meter-deep (5,906 ft) sandstone
reservoir. Approximately 1.2 Mt CO2
have been injected annually since April
2004 and it is estimated that 17 Mt CO2
will be stored over the life of the project.
To characterize the site, 3-D seismic
surveys and well data have been used to
map the field, identify deep faults,
establish a baseline, and conduct a risk
assessment of storage integrity.
Monitoring at the site includes use of
noble gas tracers, pressure surveys,
tomography, gravity baseline studies,
microbiological studies, fourdimensional seismic surveys, and
geomechanical monitoring (IPCC, 2005).
Weyburn is an EOR project where the
CO2 produced at a coal gasification
plant in Beulah, ND is piped to
Weyburn in southeastern Saskatchewan
for EOR. Approximately 1.5 Mt CO2 are
injected annually via a combination of
vertical and horizontal injection wells.
It is expected that 20 Mt CO2 will be
stored in the field over the 20 to 25 year
life of the CO2–EOR project. The
monitoring regime at the site includes
high-resolution seismic surveys and
surface monitoring to determine any
potential leakage (IPCC, 2005). The
conclusions of Phase I of the project are
that depleted oil and gas reservoirs from
EOR operations are a promising CO2
storage option and that 4-D seismic
monitoring is a valuable tool for plume
tracking (IEA, 2005).
Other ongoing GS projects include the
Gorgon Gas Development project, a deep
saline formation project in Barrow
VerDate Aug<31>2005
17:19 Jul 24, 2008
Jkt 214001
Island, Western Australia; the Otway
(Australia) Project, where GS is taking
place in a saline formation within a
depleted natural gas reservoir; the South
Quinshu Basin, China Enhanced
Coalbed Methane (ECBM)/CO2
sequestration project; the CO2 SINK
project in Ketzin, Germany (a sandstone
saline formation); and testing of CO2 GS
in the Deccan Trap basalts of India.
4. Identifying Technical and Regulatory
Issues Associated With CO2 GS
EPA has conducted a series of
technical workshops with regulators,
industry, utilities, and technical experts
to identify and discuss questions
relevant to the effective management of
CO2 GS.
EPA held a technical workshop on
measurement, monitoring, and
verification that focused on the
availability and utility of various
subsurface and near-surface monitoring
techniques that may be applicable to GS
projects. This workshop, co-sponsored
by the Ground Water Protection Council
(GWPC), took place in New Orleans, LA
on January 16, 2008.
The Agency held a technical
workshop on geological considerations
for siting and Area of Review (AoR)
studies to discuss subsurface geologic
information needed to determine
whether a site is appropriate for GS; the
role of artificial conduits in the AoR on
siting decisions; factors that affect the
size and shape of the AoR; and
corrective actions to address wells in
the AoR. Representatives of the RCSPs
and the Interstate Oil and Gas Compact
Commission (IOGCC) presented their
experiences with pilot and experimental
GS projects. This workshop took place
in Washington, DC on July 10 and 11,
2007.
EPA also held a technical workshop
on well construction and MIT that
included experimental research in the
U.S. and Canada on wellbore integrity
and CO2-cement interactions, modeling,
the impact of wellbore integrity on GS
site selection, and industry research on
well construction. This workshop was
held in Albuquerque, New Mexico on
March 14, 2007, with participation from
the International Energy Association
(IEA), an international organization
evaluating technical issues associated
with CCS.
EPA and DOE collaborated on the
State Regulators’ Workshop on GS of
CO2 to discuss and formulate the
questions related to CO2 injection that
should be addressed in the development
of a GS management framework. At this
workshop, held in conjunction with the
GWPC’s UIC Technical meeting in San
Antonio, Texas on January 24, 2007,
PO 00000
Frm 00010
Fmt 4701
Sfmt 4702
participants identified a set of research
questions on the following topics: Site
characterization, modeling, AoR,
injection well construction, MIT,
monitoring, well plugging, postinjection site care, site closure and
liability and financial responsibility.
The questions they raised set the agenda
for future technical workshops as well
as established the foundation for today’s
proposal.
Participants at the International
Symposium on Site Characterization for
CO2 Geological Storage, an EPA
sponsored meeting with LBNL, held in
Berkeley, California on March 20–22,
2006, discussed various aspects of site
characterization and selection of
potential CO2 storage sites. The
symposium emphasized advances in the
site characterization process,
development of measurement methods,
identification of key site features and
parameters, and case studies.
At a workshop on Risk Assessment for
Geologic CO2 Storage, participants
discussed the development of a risk
assessment framework to identify
potential risks related to GS of CO2 and
to consider relevant field experience
that could be applicable to injection and
long-term storage of CO2. Some of the
key topics addressed at the workshop
were: Abandoned wells, faults, and
groundwater displacement. This
workshop, co-sponsored by GWPC, took
place in Portland, Oregon on September
28–29, 2005.
On April 6–7, 2005, EPA held a
workshop on Modeling and Reservoir
Simulation for Geologic Carbon Storage
in Houston, Texas. The topics of this
workshop included: An assessment of
the potential applications of reservoir
models and reservoir simulations to GS;
use of models for risk assessments and
risk communication throughout the life
cycle of a CO2 storage reservoir; a
discussion of areas of new research and
data needs to improve the application of
modeling and reservoir simulation for
carbon storage.
Summaries of the workshops
described above are available on EPA’s
Web site, at https://www.epa.gov/
safewater/uic/wells_sequestration.html.
5. Stakeholder Coordination and
Outreach
Stakeholder participation is an
important component of today’s
proposed rulemaking. EPA held public
meetings to discuss EPA’s rulemaking
approach, met with State and Tribal
representatives, and consulted with
other stakeholder groups including nongovernmental organizations (NGOs), to
gain an understanding of stakeholder
concerns.
E:\FR\FM\25JYP2.SGM
25JYP2
jlentini on PROD1PC65 with PROPOSALS2
Federal Register / Vol. 73, No. 144 / Friday, July 25, 2008 / Proposed Rules
Public Meetings: EPA conducted two
public stakeholder workshops with
participants from industry,
environmental groups, utilities,
academia, States, and the general
public. These workshops were held in
December 2007 and February 2008. The
December 2007 workshop provided EPA
with an opportunity to hear
stakeholders’ perspectives and
concerns. EPA and stakeholders
discussed issues including the
rulemaking process, existing regulations
and regulatory components, statutory
authority, GS technology, and technical
issues associated with GS. During the
February 2008 workshop, EPA provided
a comprehensive review of how current
UIC program elements could be tailored
for the purposes of CO2 injection for GS.
Smaller technical sessions were
dedicated to discussion of key questions
and considerations related to Area of
Review and Site Characterization,
Monitoring, Long-term Financial
Assurance, and Public Participation.
Technical discussions and stakeholder
feedback from these workshops were
used to inform today’s proposal.
Summaries of these workshops are
available on EPA’s Web site, at https://
www.epa.gov/safewater/uic/
wells_sequestration.html.
State and Tribal Meetings: EPA
coordinated with the Ground Water
Protection Council (GWPC), a State
association that focuses on ensuring safe
application of injection well technology
and protecting ground water resources.
In the past several years, GWPC
meetings have included sessions on
many of the key GS technical and policy
issues described above. EPA’s
participation in these sessions has
resulted in a clearer understanding of
the regulatory issues associated with the
implementation of GS of CO2.
EPA also coordinated with IOGCC, a
chartered State association representing
oil and gas producing States. These
State members have specific expertise
regulating the injection of CO2 for the
enhanced recovery of oil and gas.
Additionally, EPA reviewed the
IOGCC’s model State geologic
sequestration regulatory framework to
help inform today’s proposal.
During the development of the
proposed rule, EPA contacted all
federally recognized tribes to invite
their engagement in the rulemaking
process and held a dedicated conference
call with the tribes. EPA will continue
an ongoing dialogue with interested
tribes on this rulemaking.
During the development of the
proposed rule, EPA contacted State and
local government associations to invite
their engagement in the rulemaking
VerDate Aug<31>2005
17:19 Jul 24, 2008
Jkt 214001
process and held a dedicated conference
call with their representatives. EPA will
continue an ongoing dialogue with
interested State and local associations
on this rulemaking.
The Agency also held meetings and
presented information about the
proposed rulemaking to members of the
water utility sector. These organizations
included the American Water Works
Association (AWWA), the Association
of Metropolitan Water Agencies
(AMWA), and the America Public
Power Association (APPA).
In addition, EPA consults with the
National Drinking Water Advisory
Council (NDWAC), a group that operates
under the SDWA to provide advice to
EPA’s drinking water program and
reports to EPA’s Administrator. NDWAC
consists of members of the general
public, drinking water experts, State
and local agencies, and private groups
concerned with safe drinking water. In
support of the proposed rulemaking and
in accordance with statutory
requirements, EPA consulted with the
Department of Health and Human
Services. EPA will conduct further
consultations prior to finalization of the
GS regulation.
The Agency also meets annually with
the American Association of State
Geologists (AASG) to discuss key topics
related to protecting and preserving
ground water resources. AASG members
are State geologists from around the
country who over the past several years
have met with EPA to discuss injectionrelated activities, including CO2 GS.
Other stakeholder discussions: EPA
invited key Non-Governmental
Organizations to discuss the potential
application of GS as a safe and effective
climate change mitigation tool.
Attendees of these meetings included
Environmental Defense, the National
Resources Defense Council, the Clean
Air Task Force, the World Resources
Institute, and others. In addition, EPA
attended and participated in numerous
conferences and technical symposia on
GS. These meetings, attended by various
stakeholders, included sessions on
technical issues related to GS and were
organized or attended by DOE’s
National Energy Technology Laboratory
(NETL), the American Petroleum
Institute (API), the Society of Petroleum
Engineers (SPE), and the International
Energy Agency (IEA). EPA also attends
meetings of the Intergovernmental Panel
on Climate Change (IPCC) and events
hosted by the World Resource Institute
(WRI), including recent meetings
focused on long-term liability and
frameworks and standards for GS
programs.
PO 00000
Frm 00011
Fmt 4701
Sfmt 4702
43501
6. Providing Technical Guidance and
Reviewing Permits for Initial Pilot-Scale
Projects
EPA issued program technical
guidance to assist State and EPA
Regional UIC programs in processing
permit applications for pilot and other
small scale experimental GS projects.
This guidance was developed in
cooperation with DOE and with States,
through GWPC, IOGCC, and other
stakeholders. UIC Program Guidance #
83: Using the Class V Experimental
Technology Well Classification for Pilot
Carbon Geologic Sequestration Projects
(USEPA, 2007) assists permit writers in
evaluating permit applications for pilotscale GS projects. It clarifies the use of
the UIC Class V experimental well
classification for GS demonstration
projects and provides recommendations
to permit writers on how they can issue
permits that allow experimental data to
be collected while ensuring that USDWs
are protected during injection. This
guidance will continue to apply to pilotprojects as long as the projects continue
to qualify under the guidelines for
experimental wells laid out in UICPG
#83. It will also remain a permitting
option for future projects, as long as
new projects are experimental in nature
and continue to collect data and
conduct research. The program
guidance is available at: https://
www.epa.gov/safewater/uic/
wells_sequestration.html. Ultimately, as
more, larger GS projects are permitted,
EPA anticipates that such projects will
not meet the Class V experimental
technology criteria. As discussed in the
program guidance, such a determination
(of Class V or Class VI) is made by the
Director.
Currently, EPA Regional and State
UIC programs are using this guidance to
authorize a number of Class V
experimental technology wells. The
guidance is being used to help create a
nationally consistent permitting
framework that draws on the key
technical components that affect the
endangerment potential of CO2 GS.
These experimental projects will
continue to provide EPA and States
with critical information that will
improve EPA’s understanding of the
risks posed by CO2 injection for GS and
the operational, technical, and
administrative considerations for the
advancement and appropriate
permitting of this technology. This
information will support EPA’s final
decision on how to regulate GS
activities.
E:\FR\FM\25JYP2.SGM
25JYP2
43502
Federal Register / Vol. 73, No. 144 / Friday, July 25, 2008 / Proposed Rules
F. Why Is EPA Proposing To Develop a
New Class of Injection Well for GS of
CO2?
jlentini on PROD1PC65 with PROPOSALS2
EPA is proposing to establish a new
class of injection well for GS projects
because CO2 injection for long-term
storage presents several unique
challenges that warrant designation of a
new well type. When EPA initially
promulgated its UIC regulations, the
Agency defined five classes of injection
wells at 40 CFR 144.6, based on
similarities in the fluids injected,
construction, injection depth, design,
and operating techniques. These five
well classes are still in use today and
are described below.
Class I wells inject industrial nonhazardous liquids, municipal
wastewaters or hazardous wastes
beneath the lowermost USDW. These
wells are most often the deepest of the
UIC wells and are managed with
technically sophisticated construction
and operation requirements.
Class II wells inject fluids in
connection with conventional oil or
natural gas production, enhanced oil
and gas production, and the storage of
hydrocarbons which are liquid at
standard temperature and pressure.
Class III wells inject fluids associated
with the extraction of minerals or
energy, including the mining of sulfur
and solution mining of minerals.
Class IV wells inject hazardous or
radioactive wastes into or above
USDWs. Few Class IV wells are in use
today; these wells are banned unless
authorized under an approved Federal
or State ground water remediation
project.
Class V includes all injection wells
that are not included in Classes I–IV. In
general, Class V wells inject nonhazardous fluids into or above USDWs;
however, there are some deep Class V
wells that inject below USDWs. This
well class includes Class V
experimental technology wells
including those permitted as geologic
sequestration pilot projects.
Today’s proposed rulemaking would
establish a new class of injection well—
Class VI—for GS projects based on the
unique challenges of preventing
potential endangerment to USDWs from
these operations. The Agency invites
public comment on the appropriateness
of this classification.
G. How Would This Proposal Affect
Existing Injection Wells Under the UIC
Program?
CO2 is currently injected in the U.S.
under two well classifications: Class II
and Class V experimental technology
wells. The requirements in today’s
VerDate Aug<31>2005
17:19 Jul 24, 2008
Jkt 214001
proposal, if finalized, would not
specifically apply to Class II injection
wells or Class V experimental
technology injection wells. Class VI
requirements would only apply to
injection wells specifically permitted for
the purpose of GS. Injection of CO2 for
the purposes of enhanced oil and gas
recovery (EOR/EGR), as long as any
production is occurring, will continue
to be permitted under the Class II
program. EPA seeks comment on the
merits of this approach since owners or
operators of some Class II EOR/EGR
wells may wish to use wells for the
purposes of production and GS prior to
the field being completely depleted.
Existing wells currently permitted as
Class I, Class II, or Class V experimental
technology wells could potentially be
re-classified for GS of CO2. However, the
owner or operator would need to follow
the permitting process outlined in
today’s proposal to receive a Class VI
permit.
EPA is proposing to give the Director
discretion to carry over or ‘‘grandfather’’
the construction requirements (e.g.,
permanent, cemented well components)
for existing Class I and Class II wells
seeking a permit for GS of CO2,
provided he/she is able to make a
determination that these wells would
not endanger USDWs. Although CO2 is
not currently injected in Class I wells,
Class I well construction requirements
are similar to those for Class VI. Today’s
proposal requires that the owner or
operator make a demonstration that the
well will maintain integrity and stability
in a CO2 rich environment for the life
of the GS project. Only the construction
requirements would be grandfathered
under today’s proposal, therefore, Class
I or Class II owners or operators seeking
to change the purpose of their injection
well from Class I or Class II to Class VI
would need to meet all other
requirements of today’s proposed rule
(e.g., area of review and site
characterization, operating, monitoring,
MIT, well plugging, post-injection site
care and site closure requirements).
EPA’s program guidance on issuing
Class V Experimental Technology Well
permits (USEPA, 2007) encourages
owners or operators and permitting
authorities to consider the potential for
changing the purpose of demonstration
wells to full-scale GS when designing
and approving experimental GS
projects. EPA understands, based on
reviews of several Class V pilot project
permits that many of these wells are
specifically designed for injection of
CO2 and are being built to Class I nonhazardous well specifications.
Accordingly, EPA is proposing that
the Director have the discretion to
PO 00000
Frm 00012
Fmt 4701
Sfmt 4702
‘‘grandfather’’ the construction
requirements for Class V experimental
wells when they are converted to fullscale GS Class VI wells. As with
converted Class I and Class II wells,
these grandfathered wells would be
required to meet the other requirements
of today’s proposed rule (e.g., operating,
monitoring, MIT, well plugging, postinjection site care and site closure).
EPA seeks comment on the approach
to grandfather construction
requirements at the Director’s discretion
for existing Class I, Class II, and Class
V wells seeking to convert to Class VI
wells, and whether additional
construction requirements would be
necessary to prevent endangerment to
USDWs from the GS of CO2.
Additionally, EPA seeks comment on
how the grandfathering approach for
existing wells may affect compliance
with the requirements in this proposal.
H. What Are the Target Geologic
Formations for GS of CO2?
A range of geologic formations is
being assessed as potential target
formations for receiving and
sequestering CO2. Target formations
with the greatest GS capacity include
deep saline formations, depleted oil and
gas reservoirs, unmineable coal seams,
and other formations.
Deep saline formations: Estimates in
the Cost Analysis for today’s proposal
indicate that up to 88.6 percent of the
capacity for CO2 injected for GS is in
deep saline formations. These
formations are deep and geographically
extensive sedimentary rock layers
saturated with waters or brines that
have a high TDS content (i.e., over
10,000 mg/L TDS). Deep saline
formations are found throughout the
U.S. and many of these formations may
be overlain by laterally extensive,
impermeable formations that may
restrict upward movement of injected
CO2. All of these characteristics make
deep saline formations the leading
candidates for GS. Since most deep
saline formations have not been
extensively investigated, a thorough
site-specific characterization of saline
formations proposed for GS will be
necessary. Such characterizations will
need to demonstrate the safety and
efficacy of these sites for GS and rule
out the presence of fractures, faults, or
other characteristics that may endanger
USDWs.
Depleted oil and gas reservoirs:
Depleted oil and gas reservoirs represent
approximately four percent of the
potential CO2 storage capacity in the
U.S. and Canada. Because many of these
reservoirs have trapped liquid and
gaseous hydrocarbon resources for
E:\FR\FM\25JYP2.SGM
25JYP2
jlentini on PROD1PC65 with PROPOSALS2
Federal Register / Vol. 73, No. 144 / Friday, July 25, 2008 / Proposed Rules
millions of years, EPA believes that they
can also be used to sequester CO2.
Hydrocarbons are commonly trapped
structurally, by faulted, folded, or
fractured formations, or
stratigraphically, in porous formations
bounded by impermeable rock
formations. These same trapping
mechanisms can effectively store CO2
for GS in depleted oil and gas reservoirs.
Oil and gas exploration activities have
generated a great deal of geologic data
on depleted oil and gas reservoir sites.
This information would be directly
transferable to the GS site
characterization process. Furthermore,
models can predict the movement and
displacement of hydrocarbons in oil and
gas reservoirs and can be used to further
advance site specific knowledge about
CO2 storage.
It should also be noted that there are
technical challenges associated with GS
in depleted oil and gas reservoirs.
Injection volumes, operation conditions,
and formation pressures for CO2
injection will differ from those of
traditional EOR/EGR operations. The
American Petroleum Institute (API)
estimates that over 0.6 gigatons (Gt) of
CO2 have been injected for EOR/EGR
operations to date and a large
percentage of this CO2 is recovered
through production (causing a pressure
decrease in the reservoir) (Meyer, 2007).
However, DOE estimates that over 90 Gt
CO2 could be geologically sequestered
in U.S. oil and gas reservoirs resulting
in the potential for reservoir-wide
pressure increases.
Depleted oil and gas reservoirs will
contain numerous artificial penetrations
(e.g., active and abandoned injection
and production wells, water wells, etc.)
and other types of conduits that could
be potential pathways for CO2
migration. Some of these wells may be
decades old, constructed or plugged
with materials that may not be able to
withstand long-term exposure to CO2, or
may be difficult to locate. Locating and
assessing the integrity of these wells and
performing appropriate corrective action
are essential to assuring that they would
not serve as conduits for movement of
injected CO2 or displaced fluids to
USDWs.
Unmineable coal seams: Unmineable
coal seams represent approximately 1.5
percent of the remaining potential U.S.
storage capacity. Currently, enhanced
coalbed methane (ECBM) operations
exploit the preferential chemical affinity
of coal for CO2 relative to the methane
that is naturally found on the surfaces
of coal. When CO2 is injected, it is
adsorbed to the coal surface and releases
methane, which can then be captured
and produced for economic purposes.
VerDate Aug<31>2005
17:19 Jul 24, 2008
Jkt 214001
Studies suggest that for every
molecule of methane displaced in
ECBM operations, three to thirteen CO2
molecules are adsorbed. This process
effectively ‘‘locks’’ the CO2 to the coal,
where it remains sequestered.
There are a number of technical
challenges related to use of coal seams
for GS. While coal seams are well
studied and understood, the process of
CO2 adsorption to coal has not been
proven and the chemical reactions of
supercritical CO2 within coal formations
are not well understood. In addition,
coals swell as CO2 is adsorbed, which
can reduce the permeability and
injectivity of the coal seams, requiring
higher injection pressures (IPCC, 2005).
There are currently no commercial scale
CO2 ECBM projects, and ECBM with
simultaneous CO2 storage is an
emerging technology that is in the
demonstration phase (Dooley, et al.,
2006; IPCC, 2005). In addition, many
ECBM recovery operations will likely be
shallow. Shallow storage will result in
the CO2 remaining in a gaseous state,
which can limit the amount of CO2 that
can be sequestered. Coal seams and
water-bearing formations in close
proximity to coal seams may contain
less than 10,000 mg/L TDS and meet the
definition of a USDW.
EPA is concerned that coal seams in
close proximity to USDWs and CO2
injection for GS could endanger
USDWs. In some cases, coal seams are
considered USDWs and may serve as
public drinking water supplies. As a
result, EPA is proposing to preclude the
injection of CO2 for long-term storage
into coal seams where they are above
the lowermost USDW. EPA requests
comment on this proposed prohibition.
Today’s proposal would not affect
injection activities where the primary
purpose of the activity is methane
production (a Class II activity).
Other formations: Other formations
under investigation for CO2 storage
include basalts, salt domes, and shales.
These formations are limited in
geographic and geologic distribution
throughout the U.S., and their
technological or economic viability as
GS sites have not been demonstrated. In
basalts, the injected CO2 could react
with embedded silicate minerals and
form carbonate minerals that would be
trapped in the basalt. Mined salt domes
or salt caverns could be used for CO2
storage using processes similar to those
used by industry to store natural gas
(IPCC, 2005). Other abandoned mines
(e.g., potash, lead, or zinc deposits or
abandoned coal mines) are also CO2
storage options (IPCC, 2005). CO2
storage in organic-rich shales, to which
CO2 could adsorb to organic materials in
PO 00000
Frm 00013
Fmt 4701
Sfmt 4702
43503
a process similar to coal seam
adsorption, is also a possible storage
option (DOE, 2007b). The location and
proximity of these other formations to
USDWs may preclude their use for GS.
As with unmineable coal seams, EPA
seeks comment on prohibiting injection
into such formations if they are above
the lowermost USDW.
I. Is Injected CO2 Considered a
Hazardous Waste Under RCRA?
In developing today’s proposal, EPA
used the Class I industrial well class as
the reference for the proposed rule and
also considered the potential for
hazardous constituents to be present in
the injectate, and whether their
presence could render the injected CO2
stream a hazardous waste. The
composition of the captured CO2 stream
will depend on the source, the flue gas
scrubbing technology for removing
pollutants, additives, and the CO2
capture technology. In most cases, the
captured CO2 will contain some
impurities, however, concentrations of
impurities are expected to be very low
(Apps, 2006).
Because the types of impurities and
their concentrations in the CO2 stream
are likely to vary by facility, coal
composition, plant operating
conditions, and pollution removal
technologies, EPA cannot make a
categorical determination as to whether
injected CO2 is hazardous under RCRA.
Owners or operators will need to
characterize their CO2 stream as part of
their permit application to determine if
the injectate is considered hazardous as
defined in 40 CFR Part 261. If the
injectate is considered hazardous under
RCRA, then the more stringent UIC
Class I requirements for injection of
hazardous waste apply. The design
changes EPA is proposing are meant to
address the mobility and corrosivity
caused by long term GS of CO2, and not
the long term storage of hazardous
wastes.
By defining ‘‘carbon dioxide stream’’
to exclude hazardous wastes (146.81(d)),
today’s rule, if finalized, assures that it
would apply only to CO2 streams that
are not hazardous wastes as defined in
40 CFR Part 261. As a result, today’s
proposed rule would preclude the
injection of hazardous wastes in Class
VI injection wells. EPA seeks comment
on this approach and other
considerations associated with the
presence of impurities in the CO2
stream.
J. Is Injected CO2 Considered a
Hazardous Substance Under CERCLA?
The Comprehensive Environmental
Response, Compensation, and Liability
E:\FR\FM\25JYP2.SGM
25JYP2
43504
Federal Register / Vol. 73, No. 144 / Friday, July 25, 2008 / Proposed Rules
jlentini on PROD1PC65 with PROPOSALS2
Act (CERCLA), also more commonly
known as Superfund, is the law that
provides broad federal authority to
clean up releases or threatened releases
of hazardous substances that may
endanger human health or the
environment. CERCLA references four
other environmental laws to designate
more than 800 substances as hazardous
and to identify many more as
potentially hazardous due to their
characteristics and the circumstances of
their release. It allows EPA to clean up
sites contaminated with hazardous
substances and seek compensation from
responsible parties, or compel
responsible parties to perform cleanups
themselves. A responsible party may be
able to avoid liability through several
enumerated defenses, including that the
release constituted a ‘‘federally
permitted release’’ as defined in
CERCLA, 42 U.S.C. 9601(10).
While CO2 itself is not listed as a
hazardous substance under CERCLA,
the CO2 stream may contain other
substances such as mercury that are
hazardous substances or the
constituents of the CO2 stream could
react with groundwater to produce
listed hazardous substances such as
sulfuric acid. Thus, whether or not there
is a ‘‘hazardous substance’’ that may
result in CERCLA liability from a
sequestration facility depends entirely
on the make-up of the specific CO2
stream and of the environmental media
(e.g., soil, groundwater) in which it is
stored. CERCLA exempts from liability
certain ‘‘federally permitted releases’’
including releases in compliance with a
UIC permit under SDWA. Therefore,
Class VI requirements and permits will
need to be carefully structured to ensure
that they do not ‘‘authorize’’
inappropriate hazardous releases. This
would include clarifying if there are
potential releases from the well which
are outside the scope of the Class VI
permit. EPA requests comment on
particular situations where this might
occur. EPA also requests comment on
other considerations associated with the
presence of impurities in the CO2 stream
related to CERCLA.
As applicable, a determination of
liability would be made on a case-bycase basis by Federal courts in response
to claims for natural resource damages
(NRD) or response costs. A NRD claim
could be brought by the U.S. or a State
or Tribe.
III. Proposed Regulatory Alternatives
The regulatory alternatives for
managing CO2 injection for GS have
been informed by the existing UIC
program regulations and supplementary
contributions from parties with
VerDate Aug<31>2005
17:19 Jul 24, 2008
Jkt 214001
expertise related to the challenges
associated with GS of CO2. In preparing
today’s proposal, EPA consulted with
regulators, industry, utilities, and other
technical experts; considered input
provided at the technical workshops
and stakeholder meetings; and reviewed
research, early pilot GS project permits,
and IOGCC’s model rules and
regulations (IOGCC, 2007).
EPA considered four alternatives for
developing GS regulations. The four
alternatives vary in stringency and
specificity as described below.
Alternative 1: Non-specific
Requirements Approach. This
alternative is the least specific and
stringent of the alternatives EPA
considered. It includes no specific
requirements for site characterization,
well construction, or monitoring; rather,
it applies a performance standard
approach, specifying that GS wells be
sited, constructed, operated,
maintained, monitored, plugged and
closed in a manner that protects USDWs
from endangerment.
Alternative 2: General Requirements
Approach. This alternative provides
more specificity than the previous
alternative and includes standards for
siting, construction, operation, and
monitoring associated with basic deep
well design and operation. The general
requirements approach also gives
permitting authorities flexibility to
interpret certain elements in setting
permit requirements; however, this
alternative does not contain specific
program requirements for technical
challenges not currently addressed in
the UIC Program such as long-term CO2
storage and large volumes.
Alternative 3: Tailored Requirements
Approach. This approach builds on the
general requirements approach by
incorporating technical standards for
deep-well injection of non-hazardous
fluids where appropriate and tailoring
them to address the challenges of longterm CO2 storage. This approach also
gives permitting authorities discretion
in how to permit certain elements and
in requiring additional information.
Alternative 4: Highly Specific
Requirements Approach. The highly
specific requirements approach
describes specific technologies and
information needed for site
characterization, AoR modeling, well
construction, monitoring, and testing.
Many components of this alternative
equal or exceed the requirements for
Class I hazardous waste injection wells.
These alternatives are described in
more detail in the document, Regulatory
Alternatives for Managing the
Underground Injection of Carbon
PO 00000
Frm 00014
Fmt 4701
Sfmt 4702
Dioxide for Geologic Sequestration
(USEPA, 2008c).
A. Proposed Alternative
EPA is proposing Regulatory
Alternative 3, the Tailored
Requirements Approach. The technical
requirements of this alternative build
upon the existing UIC regulatory
framework for deep wells and are
appropriately tailored to address the
unique nature of full-scale CO2 GS. The
tailored requirements approach
promotes USDW protection,
incorporates flexibility or the discretion
of the permitting authority when
appropriate, seeks to limit unnecessary
burden on owners or operators or
permitting agencies and provides the
foundation for national consistency in
permitting of GS projects. Because of the
volumes of CO2 being anticipated for
long-term storage, the buoyant and
viscous nature of the injectate, and its
corrosivity when mixed with water,
EPA is proposing changes to the existing
UIC approach or requirements in several
program areas, including site
characterization, area of review, well
construction, mechanical integrity
testing, monitoring, well plugging, postinjection site care, and site closure.
EPA did not select alternative 1 (NonSpecific Requirements Approach)
because it does not provide enough
specificity to ensure that permitting
authorities manage GS wells
appropriately to prevent endangerment
of USDWs. In addition, this alternative
may be burdensome for owners or
operators because of the potential for
inconsistency across States and
burdensome for permitting authorities
who will likely be faced with
developing their own technical
approaches to regulating GS. Alternative
1 could create an uncertain regulatory
landscape for owners or operators
seeking to operate facilities in multiple
states or seeking to manage projects that
cross state boundaries.
Although alternative 2 (General
Requirements Approach) provides
standards for siting, construction,
operation, and monitoring associated
with basic deep well design and
operation, EPA did not select this
alternative because it is not tailored to
meet the unique challenges of long-term
CO2 storage. While this option includes
flexibility for permit authorities to add
requirements, EPA cannot be certain
that the necessary adjustments would be
made.
Alternative 4 (Highly Specific
Requirements Approach) lacks the
flexibility for incorporating and
adapting to evolving GS technologies
and provides no clear additional
E:\FR\FM\25JYP2.SGM
25JYP2
Federal Register / Vol. 73, No. 144 / Friday, July 25, 2008 / Proposed Rules
jlentini on PROD1PC65 with PROPOSALS2
benefits beyond alternative 3 for USDW
protection, therefore, EPA did not select
this alternative.
1. Proposed Geologic Siting
Requirements
Existing UIC requirements for siting
injection wells include identification of
geologic formations suitable to receive
the injected fluids and confine them
such that they are isolated below the
lowermost USDWs, minimizing the
potential for endangerment. While
initial assessments indicate there are
many geologic formations in the U.S.
that can potentially receive injected
CO2, not all can serve as adequate CO2
GS sites.
A detailed geological assessment is
essential to evaluating the presence and
adequacy of the various geologic
features necessary to receive and
confine large volumes of injected CO2 so
that the injection activities will not
endanger USDWs. Thus, EPA is
proposing that owners or operators
submit maps and cross sections of the
USDWs near the proposed injection
well.
Injection wells are drilled to a
receiving zone, also known as the
injection zone. The injection zone is
typically a layer or layers of porous
rocks, such as sandstone, that can
receive large volumes of fluids without
fracturing. Today’s proposal would
require that owners or operators submit
data to demonstrate that the injection
zone is sufficiently porous to receive the
CO2 without fracturing and extensive
enough to receive the anticipated total
volumes of injected CO2. Owners or
operators would submit geologic core
data, outcrop data, seismic survey data,
cross sections, well logs, and other data
that demonstrate the lateral extent and
thickness, strength, capacity, porosity,
and permeability of subsurface
formations. The injection zone should
be of a sufficient lateral extent that the
CO2 can move a sufficient distance away
from the well and still remain in the
same zone, without displacing fluids
into USDWs. Structural features of a
potential injection zone reservoir, such
as the lateral extent, dip, or the presence
of ‘‘pinch-outs’’ (i.e., thinning or
tapering out) can affect storage
potential, and therefore should be
examined.
The injection zone should be overlain
by a low permeability confining system
(i.e., primary confining zone) consisting
of a geological formation, part of a
formation, or group of formations that
limits the injected fluid from migrating
upwards out of the injection zone. The
buoyancy of CO2 necessitates good
characterization of potential conduits
VerDate Aug<31>2005
17:19 Jul 24, 2008
Jkt 214001
for fluid migration upward through the
confining system to USDWs. The
confining system should be of sufficient
regional thickness and lateral extent to
contain the entire CO2 plume and
associated pressure front under the
confining system following the plume’s
maximum lateral expansion.
EPA proposes that owners or
operators of proposed GS projects
present to the permitting authority data
on the local geologic structure,
including information on the presence
of any faults and fractures that transect
the confining zone and a demonstration
that they would not interfere with
containment. These data will support
determinations about whether these
features, if present, could potentially
become conduits for movement of CO2
or other fluids to shallower layers,
including USDWs. Under today’s
proposal, owners or operators must
perform and submit the results of
geomechanical studies of fault stability
and rock stress, ductility, and strength.
Today’s proposal would require that
owners or operators submit information
on the seismic history of the area and
the presence and depth of seismic
sources to assess the potential for
injection-induced earthquakes. These
examinations, along with interpretation
of geologic maps and cross sections and
geomechanical data, are proposed to
help rule out sites with unacceptably
high potential for seismic activity.
Information on in-situ fluid pressures is
also required to assess the potential for
the pressures associated with injection
to reactivate faults or to determine
appropriate operating requirements.
A variety of techniques are available
to characterize the receiving zones and
confining zones of proposed GS sites.
For example, geologic core data, test
wells, and well logs can help determine
rock formations’ strength and extent.
Seismic and electrical methods can be
used to reveal subsurface features.
Gravity anomalies indicate density
variations at depth, and gravity surveys
can be used to locate voids, such as
cavities and abandoned mines.
Numerous geophysical logging tools can
determine formation porosity. Large
scale, regional pressure tests can also
provide insight into the fluid flow field
and the presence and properties of
major faults and fractures that may
affect flow and transport of CO2 and
displaced brines.
Underground injection wells, if
improperly sited and operated, have the
potential to induce seismicity, which
may cause damage to reservoir and fault
seals, creating conduits for fluid
movement into USDWs. Today’s
proposal would require that owners or
PO 00000
Frm 00015
Fmt 4701
Sfmt 4702
43505
operators not exceed an injection
pressure that would initiate or
propagate fractures in the confining
zone. To meet this requirement,
maximum sustainable injection
pressures that will not cause
unpermitted fluid movement should be
determined prior to CO2 injection.
Estimates of maximum sustainable fluid
pressures in CO2 storage sites are
primarily based on predicted changes of
effective stresses in rocks during CO2
injection and associated pore-pressure
increase (Streit and Siggins, 2004).
Geomechanical studies of fault stability
and rock stresses and strength, based on
examination and interpretation of
geological maps and cross sections,
seismic and well surveys, determination
of local stress fields, and modeling, can
also help rule out sites with
unacceptably high potential for seismic
activity (IPCC, 2005).
The geochemistry of formation fluids
can also affect whether a site is suitable
for GS. CO2 may act as a solvent, and
can mix with native fluids to form
carbonic acid, which can react with
minerals in the formation. Dissolution
of minerals may liberate heavy metals
into the formation fluids. Reactions may
also break down the rock matrix or
precipitate minerals and plug pore
spaces, therefore reducing permeability
(IPCC, 2005). Studies of rock samples
and review of geochemical data from
monitoring wells are needed to evaluate
the impact of these effects. Today’s
proposal would require owners or
operators to submit geochemical data on
(a) the injection zone, (b) the confining
zones, (c) containment zones above the
confining zones in which any
potentially migrating CO2 could be
trapped, (d) all USDWs, and (e) any
other geologic zone or formation that is
important to the proposed monitoring
program. The geochemical data are
important for identifying potential
chemical or mineralogical reactions
between the CO2 and formation fluids
that can break down the rock matrix or
precipitate minerals that could plug
pore spaces and reduce permeability.
Additionally, pre-injection geochemical
data can serve as baseline data to which
results of future monitoring would be
compared throughout the injection
phase. This information can also
improve predictions about trapping
mechanisms (which, in turn may
improve predictions of pressure changes
in the subsurface and the ultimate size
of the CO2 plume).
Today’s proposal would provide the
Director the discretion to require the
owner or operator to identify and
characterize additional confining and
containment zones above the primary
E:\FR\FM\25JYP2.SGM
25JYP2
43506
Federal Register / Vol. 73, No. 144 / Friday, July 25, 2008 / Proposed Rules
jlentini on PROD1PC65 with PROPOSALS2
(i.e., lowermost) confining zone that
could further impede vertical fluid
movement and allow for pressure
dissipation. These layers could provide
additional sites for monitoring,
mitigation, and remediation. Today’s
proposal would not require that these
additional zones be identified for all GS
sites because their absence does not
necessarily indicate inappropriateness
of a GS site. However, if such zones are
present, information about their
characteristics can provide inputs for
predictive models, identify appropriate
monitoring locations, and improve
public confidence in and acceptance of
a proposed GS site. EPA specifically
seeks comment on the merits of
identifying these additional zones.
2. Proposed Area of Review and
Corrective Action Requirements
Delineating the Area of Review: Under
the UIC program, EPA established an
evaluative process to determine that
there are no features near the well such
as faults, fractures or artificial
penetrations, where significant amounts
of injected fluid could move into a
USDW or displace native fluids into
USDWs. Current UIC regulations require
that the owner or operator define the
Area of Review (AoR), within which the
owner or operator must identify all
penetrations (regardless of property
ownership) in the confining zone and
the injection zone and determine
whether they have been properly
completed or plugged. The AoR
determination is integral to the
determination of geologic site suitability
because it requires the delineation of the
storage operation and an identification
and evaluation of any penetrations that
could result in the endangerment of
USDWs (40 CFR 146.6).
For Class I, II, and III injection wells,
Federal UIC regulations require that the
AoR be defined as either a fixed radius
of 1⁄4 mile surrounding the well (or
wells, for an area permit) or an area
above the injected fluid and pressure
front determined by a computational
model. For Class I hazardous waste
injection wells, the AoR is defined as a
radius of two (2) miles around the well
or an area defined based on the
calculated cone of pressure influence,
whichever is larger.
It is generally agreed that over time,
the CO2 plume and pressure front
associated with a full-scale GS project
will be much larger than for other types
of UIC injection operations, potentially
encompassing many square miles. In
addition, the complexity of CO2
behavior in the subsurface may produce
a non-circular AoR. It is also possible
that multiple owners or operators will
VerDate Aug<31>2005
17:19 Jul 24, 2008
Jkt 214001
be injecting CO2 into formations that are
hydraulically connected, and thus the
elevated pressure zones may intersect or
interfere with each other. Traditional
AoR delineation methods such as a
fixed radius or simple mathematical
computations would not be sufficient to
predict the extent of this movement.
EPA believes that predicting the
complex multi-phase buoyant flow of
the CO2, co-injectates, and compounds
that may be mobilized due to injection
requires the sophistication of
computational models. EPA proposes
that the owners or operators of GS wells
delineate the AoR for CO2 GS sites using
computational fluid flow models
designed for the specific site conditions
and injection regime.
Multiphase models are the most
comprehensive type of computational
model available to predict fluid
movement in the subsurface under
varying conditions or scenarios, and
EPA considers them to be appropriate
for delineating the AoR for GS projects.
This approach was also recommended
by IOGCC, workshop participants, and
regional and State permit writers for GS
operations. EPA seeks comment on the
use of modeling for AoR delineation.
Modeling CO2 Movement and
Reservoir Pressure: Computational
models used to delineate the AoR
consider the buoyant nature and
specific properties of separate phases of
the injected CO2 and native fluids
within the injection zone. The models
should be based on site characterization
data collected regarding the injection
zone and confining system, taking into
account any geologic heterogeneities,
and potential migration through faults,
fractures, and artificial penetrations.
Appropriate models may incorporate
numerical, analytical, or semi-analytical
approaches. These models solve a series
of governing equations to predict the
composition and volumetric fraction
(i.e., the fraction of the formation porespace taken up by that fluid) of each
phase state (e.g., liquid, gas,
supercritical fluid), as well as fluid
pressures, as a function of location and
time for a particular set of conditions.
EPA has found that multiphase,
computational models are the most
appropriate type of computational
model to predict the fate and transport
of CO2, co-injectates, and compounds
mobilized due to injection. In order to
provide guidance related to
computational modeling of CO2
injection for GS, EPA invited expert
advice and reviewed relevant technical
documents. On April 6–7, 2005, EPA
held a workshop on ‘‘Modeling and
Reservoir Simulation for Geologic
Carbon Storage’’ for 60 EPA
PO 00000
Frm 00016
Fmt 4701
Sfmt 4702
headquarters and regional staff in
Houston, Texas. Computational
modeling for AoR determination was
also discussed at several additional
technical workshops (Section II E).
Additionally, the Agency evaluated
peer-reviewed journal articles and
critical reviews pertaining to
computational modeling of CO2
injection (USEPA, 2008d).
Model results provide predictions of
CO2 fate and transport, as well as
changes in formation pressure, in three
dimensions as a function of time that
can be used to delineate the subsurface
storage site and the AoR. Models can
also be used to develop monitoring
plans, help to evaluate long-term
containment, select and characterize
suitable storage formations, assess the
risk associated with CO2 leakage and
other impacts to USDWs, and to design
remediation strategies. Importantly,
models can be used to predict CO2
movement in response to varying
conditions or scenarios, such as
changing injection rates, or the presence
or absence of fractures or faults in
confining layers.
Multiphase models have been used by
States and industry for predicting the
movement of water and solutes in soil,
the behavior of non-aqueous phase
liquid contaminants (e.g.,
trichloroethene) at hazardous waste
sites, the recovery of oil and gas from
petroleum-bearing formations, and more
recently, CO2 in the subsurface. The
existing computational codes used to
create multiphase models vary
substantially in complexity. For
example, available codes differ in what
processes (e.g., changes of state,
chemical reactions) may be included in
simulations. As model complexity
increases, so does the computational
power necessary to use the model, as
well as the amount and type of data
needed to properly instruct model
development. However, more complex
models, when properly used, have the
potential to provide a more accurate
representation of the storage project.
Multiphase models are developed
based on a specified set of conditions,
such as the formation’s geological
structure and injection scenario, and
inputs describing these conditions are
included in an appropriate
computational code. Properties of the
formation (e.g., permeability, porosity,
reservoir entry pressure) and fluids
present (e.g., solubility, mass-transfer
coefficients), are described by model
parameters, the independent variables
in the model governing equations that
may be constant throughout the domain
or vary in space and time. Model
predictions depend largely on the
E:\FR\FM\25JYP2.SGM
25JYP2
jlentini on PROD1PC65 with PROPOSALS2
Federal Register / Vol. 73, No. 144 / Friday, July 25, 2008 / Proposed Rules
values of key parameters. Often these
parameter values are estimated or
averaged from several data sources.
Models used for GS sites should be
based on accepted science and should
be validated. In some cases, owners or
operators may choose to use proprietary
models (i.e., not available for free to the
general public). EPA is aware that the
use of proprietary codes may prevent
full evaluation of model results (e.g.,
NRC, 2007). Several popular codes in
the petroleum-reservoir engineering
discipline are proprietary and owners or
operators of particular sites may prefer
to use these codes as they have previous
experience with them, and they have
been used in peer-reviewed studies to
model CO2 sequestration. When using a
proprietary model, owners or operators
should clearly disclose the code
assumptions, relevant equations, and
scientific basis. EPA seeks comment on
allowing the use of proprietary models
for GS sites.
Today’s proposal does not specify a
period of time over which the AoR
delineation models should be run.
Rather, available models can predict,
based on proposed injection rates and
volumes and information about the
geologic formations, the ultimate plume
movement up to the point the plume
movement ceases or pressures in the
injection zone sufficiently decline.
EPA recognizes that a range of models
could be used to delineate the AoR and
that some of these models may have
been in use for some time. Models
currently used to delineate AoR,
regardless of age, are considered
computational and may be appropriate
for use in determining the AoR for GS
of CO2. However, EPA anticipates that
modeling technology will improve
substantially, and encourages and
expects owners or operators to use the
best multiphase computational models
available to determine the AoR.
Reliance on improved models will
likely increase the accuracy and quality
of the AoR characterization, resulting in
better protection of USDWs.
Model simulations and site
monitoring are interdependent, and
comprise an iterative, cyclical system.
Model simulations can be used for an
initial prediction of injected fluid
movement to identify the type, number
and location of monitoring points. As
data are collected at an injection site,
model parameters can be adjusted to
match real-world observations (i.e.,
model calibration or history-matching),
which in turn improves the predictive
capability of the model. Additionally,
model simulations are adjusted over
time to reflect operational changes.
Project performance is thus evaluated
VerDate Aug<31>2005
17:19 Jul 24, 2008
Jkt 214001
through a combination of site
monitoring and modeling.
EPA seeks comment on the
applicability of computational fluid
flow models for delineating the AoR of
GS sites.
Corrective Action: Today’s proposal
would require that owners or operators
of GS wells identify all artificial
penetrations in the AoR (including
active and abandoned wells and
underground mines). This inventory
and review process is similar to what is
required of Class I and Class II injection
well operators.
The owner or operator would
compile, tabulate, and review available
information on each well in the AoR
that penetrates into the confining
system, including casing and cementing
information as well as records of
plugging. If additional confining zones
are identified, wells penetrating those
additional zones would be included in
this review. Based on this review, the
owner or operator would identify the
wells that need corrective action to
prevent the movement of CO2 or other
fluids into or between USDWs. Owners
or operators would perform corrective
action to address deficiencies in any
wells, regardless of ownership, that are
identified as potential conduits for fluid
movement into USDWs. In the event
that an owner or operator cannot
perform the appropriate corrective
action, the Director would have
discretion to modify or deny the permit
application. Corrective action could be
performed prior to injection or on a
phased basis over the course of the
project (as outlined in the next section).
Available corrective action techniques
include plugging of offset wells or
monitoring in the injection zone.
Another example of corrective action is
remedial cementing, in which owners or
operators would squeeze cement into
channels or voids between the casing
and the borehole, to prevent upward
migration along uncemented casing.
Today’s proposal does not prescribe
the specific cements to be used to plug
abandoned wells in the AoR because
industry standards, such as those
developed by API or ASTM
International, reflect the current state of
the science and the expertise of
industrial users on corrosion-resistant
materials.
Though today’s proposal does not
dictate specific corrective action
methods, it requires that the corrective
action methods be appropriate to the
CO2 injection. At the Technical
Workshop on Geological Considerations
and AoR Studies, participants generally
concluded that the reaction of the CO2
injectate stream with typical well
PO 00000
Frm 00017
Fmt 4701
Sfmt 4702
43507
materials and cements that are likely to
be encountered in abandoned wells in
the AoR is an important consideration.
Today’s proposal would require that
corrective action for wells in the AoR of
GS projects be performed with
appropriate corrective action methods
such as use of corrosion-resistant
cements.
Area of Review Reevaluation:
Predicting the behavior of injected CO2
in the subsurface, particularly the
ultimate extent of a CO2 plume and
associated area of elevated pressure in a
laterally expansive reservoir, poses
uncertainties. Today’s proposal would
require that the owner or operator
periodically reevaluate the AoR during
the injection operation. Reevaluations
would occur at a minimum fixed
frequency, not to exceed 10 years, as
agreed upon by the Director.
When monitoring data differ
significantly from modeled predictions,
or when there are appreciable
operational changes (e.g., injection
rates), reevaluation may be mandated
prior to the minimum fixed frequency.
At no time would area of review
reevaluations occur less frequently than
every 10 years.
Reevaluations of the AoR would be
based on revision and calibration of the
original computational model used to
delineate the AoR. If site monitoring
data agrees with the existing AoR
delineation, a model recalibration may
not be necessary. In these cases, an AoR
reevaluation may consist simply of a
demonstration that the current AoR
delineation is adequate based on site
monitoring data.
There are many potential benefits to
periodically reevaluating the AoR. Each
revised model prediction would
estimate the full extent of the CO2
plume and area of elevated pressure;
however, the near-term predictions (e.g.,
over the subsequent 10 years) would
have the highest degree of certainty and
could be the basis of corrective action.
Re-running the models would allow
refinement to the AoR delineation based
on real-world conditions and
monitoring results, and thus increase
confidence in the modeled predictions.
The revised model predictions would
also be used to identify monitoring sites
so that monitoring would occur in any
areas subject to the greatest potential
risk.
EPA seeks comment on requiring the
reevaluation of the site AoR on a
periodic basis, under what conditions
the AoR should be reevaluated, and the
appropriateness of a 10 year minimum
fixed frequency for AoR reevaluation.
Phased Corrective Action: In the UIC
program, corrective action is typically
E:\FR\FM\25JYP2.SGM
25JYP2
jlentini on PROD1PC65 with PROPOSALS2
43508
Federal Register / Vol. 73, No. 144 / Friday, July 25, 2008 / Proposed Rules
performed on all wells in the AoR in
advance of the injection project. Today’s
proposal recognizes that this may not
always be appropriate for GS projects.
The AoR for a GS site may be quite
large, requiring considerable time and
resources to perform corrective action
on all wells that may eventually be
affected by the GS project over the
course of decades of injection. In
addition, if the periodic reevaluations of
the AoR indicate that the AoR has
grown or shifted to areas not originally
included, additional wells may need to
be identified for potential corrective
action.
Today’s proposal would give the
Director the discretion to allow owners
or operators to perform corrective action
on an iterative, phased basis over the
operational life of a GS project. Prior to
injection, the owner or operator would
identify all wells penetrating the
confining or injection zone within the
site AoR. However, the owner or
operator may limit pre-injection
corrective action to those wells in the
portion of the AoR that would be
intersected by the CO2 plume or
pressure front during the first years of
injection. As the project continues and
the plume expands, the owner or
operator would continue to perform
corrective action on wells further from
the well to assure that all wells in the
AoR that need corrective action
eventually receive it. This approach
would ensure that any necessary
corrective action is taken in advance of
the CO2 plume and associated area of
elevated pressure approaching USDWs.
There are potential benefits to
implementing phased corrective action.
Phasing in the corrective action would
benefit the owner or operator by
spreading out the burden and costs of
corrective action and not delaying
initiation of the GS project while
corrective action is performed at wells
that may not be affected by the injection
for several decades. Initial corrective
action would focus on those
penetrations that pose a potential
endangerment to USDWs from injection
of CO2 in the near term. Deferring
corrective action on some of the wells
at the outer reaches of the predicted
plume can improve USDW protection
by giving these later corrective action
efforts the benefit of newer corrective
action techniques. Additionally, this
approach can prevent the unnecessary
burden of performing corrective action
in areas far from the injection zone that
may never be impacted. This approach
would still assure that all wells in the
AoR that need corrective action
eventually receive it, as is the case in
current UIC requirements.
VerDate Aug<31>2005
17:19 Jul 24, 2008
Jkt 214001
Participants at the technical
workshops on ‘‘Geological
Considerations and AoR Studies’’ and
‘‘Modeling and Reservoir Simulation for
Geologic Carbon Storage’’ agreed that
the AoR should be reevaluated over
time based on incoming monitoring and
site characterization data. In addition,
participants at the February 2008
Stakeholder Workshop generally
supported reevaluation of the AoR and
a phased corrective action approach.
EPA recognizes that a phased
approach to corrective action may not
be appropriate in all situations;
therefore EPA is proposing that the
Director have the discretion to decide to
allow this approach, based on the
understanding of relevant geologic and
site conditions. EPA invites public
comment on the merits and frequency of
reevaluation of the AoR as well as the
phased corrective action approach for
GS wells.
Proposed Area of Review and
Corrective Action Plan: For typical UIC
wells, the AoR is delineated only once,
and corrective action on all wells in the
AoR is performed prior to commencing
injection. However, AoR and corrective
action for GS wells will involve
multiple steps over many years, so EPA
proposes that the owner or operator of
a GS well submit an AoR and corrective
action plan as part of their permit
application. After approved by the
Director, the owner or operator would
implement the plan.
In the AoR and corrective action plan,
the owner or operator would describe
plans to delineate the AoR, including
the model to be used, assumptions
made, and the site characterization data
on which the modeling would be based.
It would include a strategy for the
owner or operator to periodically
reevaluate the AoR in response to
operational changes (e.g., injection
rates), when monitoring data varies from
modeled predictions, or at a minimum
fixed frequency, not to exceed 10 years,
as agreed upon by the Director. It should
describe what monitoring data would be
used to determine whether the AoR
needs to be adjusted and how that data
would be incorporated into the model.
A description of how the public would
be informed of changes in the AoR
would be included.
The AoR and corrective action plan
would also specify where corrective
action would be performed prior to
injection, what, if any areas would be
addressed on a phased basis, and how
the timing of each phase of corrective
action would be determined. In
addition, the plan would identify how
site access would be guaranteed for
areas requiring future corrective action,
PO 00000
Frm 00018
Fmt 4701
Sfmt 4702
and how corrective action may change
to address potential changes in the AoR.
EPA also proposes that, as owners or
operators periodically reevaluate the
AoR delineation, they must either
amend the Director-approved AoR and
corrective action plan (i.e., to perform
additional corrective action) or report to
the Director that no changes to the plan
are necessary. This approach promotes
continued communication between the
Director and the owner or operator
regarding expectations over the long
duration of CO2 injection, and assures
that the AoR delineation methodology
reflects local conditions. The proposed
requirement to periodically revisit the
modeling effort, which was advocated
by stakeholders, would help to verify
that the CO2 plume is moving as
predicted and provides an opportunity
to adjust the injection operation and
corrective action to address changes in
the predicted AoR. The reevaluation
process would also help account for
new wells in the AoR.
3. Proposed Injection Well Construction
Requirements
Well Construction Procedures:
Properly constructing an injection well
is a technologically complex yet well
understood undertaking. An
appropriately designed and constructed
well would prevent endangerment to
USDWs and would maintain integrity
throughout the lifetime of the project,
from the injection operation period
through and beyond the post-injection
site care period once the well is
permanently plugged. Current drilling
and well construction practices for CO2
injection wells are based on existing
knowledge and practices from the oil
and gas industry.
A typical well is constructed by
placing multiple strings of high strength
steel alloy or fiberglass concentric pipe
and tubing into a drilled wellbore.
Typically, the first step in well
construction is the drilling of a large
borehole (e.g., 10″ to 30″) through the
base of the lowermost USDW. A large
diameter pipe, termed surface casing, is
then placed in the wellbore to protect
shallow aquifers or underground
sources of drinking water during the
drilling and injection phases. This
casing is usually cemented by
circulating cement between the outside
of the surface casing and the side of the
borehole to ensure that the wellbore is
stabilized, that the casing is completely
sealed to the rock of the wellbore, and
that the geologic formations are isolated
from each other and the surface.
Next, a smaller diameter wellbore
(e.g., 7″ to 15″) is drilled further
downwards, into the injection zone, and
E:\FR\FM\25JYP2.SGM
25JYP2
jlentini on PROD1PC65 with PROPOSALS2
Federal Register / Vol. 73, No. 144 / Friday, July 25, 2008 / Proposed Rules
a smaller diameter pipe, usually
designated as the long-string casing, is
run into the hole. Similar to the surface
casing, the long-string casing is
cemented in place to the borehole by
circulating cement from the bottom back
up to the surface casing, filling the gap
between the outside of the long-string
casing and the wellbore. This cementing
process again ensures that rock
formations are isolated and no fluid
movement occurs between formations.
Depending on the depth to the
injection formation, additional strings of
casing may be necessary, but in each
case, these casings are engineered and
designed to withstand internal and
external pressures at depth. The final
result is multiple barriers of cement and
casing between formations above the
injection zone and the fluids being
injected. Typically a portion of the
wellbore in the injection zone is left
open or the casing is perforated to allow
injected fluid to enter into the injection
zone.
Inside the long string casing, injection
tubing is run from the surface to a depth
within the injection zone. This tubing
may be engineered of steel, an alloy,
fiberglass, or a composite material most
suitable for the injectate’s composition.
The tubing extends from the wellhead
down to the storage zone where it is
sealed by a mechanical device known as
a packer. The area between the tubing
and long string casing is isolated and
the fluid injected into the well can only
enter the geologic formation for which
it is targeted. With this type of well
construction, the fluid within the well
tubing has minimal contact with the
components of the well that protect
USDWs.
The space between the injection
tubing and the long string casing and
above the packer is called the annulus.
The annulus between the wellhead and
the packer is a water-tight space filled
with a non-corrosive fluid that helps to
protect the inside of the casing and
outside of the tubing from damage due
to chemical reactions. In addition,
monitoring the pressure of the annulus
using standard pressure devices can
easily detect any leaks in the tubing,
long string casing, or packer.
Due to the buoyancy of CO2, today’s
proposal includes enhancements to
typical deep well construction
procedures to provide additional
barriers to CO2 leakage outside of the
injection zone. The proposal would
require that surface casing for GS wells
be set through the base of the lowermost
USDW and cemented to the surface. The
long-string casing would be cemented in
place along its entire length. GS wells
would also be constructed with a packer
VerDate Aug<31>2005
17:19 Jul 24, 2008
Jkt 214001
that is set opposite a cemented interval,
at a location approved by the Director.
EPA seeks comment on the proposed GS
well requirements for depth of surface
casing, the cementing of long-string
casing, and construction with a packer
set opposite a cemented interval. EPA
also seeks comment on how the
proposed grandfathering provisions for
existing wells (construction
requirements) may affect compliance
with the above, proposed construction
requirements.
More information on well drilling
may be found by consulting various
sources including the Department of
Energy, the American Petroleum
Institute (API), and the Society of
Petroleum Engineers (SPE). Please
consult information or links on EPA’s
Web site: https://www.epa.gov/safewater/
uic.html, or similar sources.
Horizontal Well Construction: While
horizontal well construction is not
typical in deep injection wells in the
UIC program, there are examples of
horizontal well completions being used
with success to improve the production
of EOR and ECBM operations (e.g.,
Westermark et al., 2004; Sams et al.,
2005). EPA understands that the In
Salah project in Algeria is using
horizontal well construction for GS
purposes. Horizontal wells are
constructed by use of a directional
drilling system, which generally
consists of both a curve and lateral
drilling assembly. After the vertical
portion of the well is constructed, the
curve drilling assembly is used to drill
a curve of prescribed radius to change
the path from vertical to horizontal. The
lateral drilling assembly is then used to
construct the horizontal section, which
can be lined or remain as an open hole.
Importantly, several horizontal sections
can be completed stemming from a
single vertical completion.
The use of horizontal wells for a GS
project could provide several benefits
over vertical wells. Horizontal wells
provide enhanced connectivity with
permeable sections of the formation,
increasing injectivity. The use of
horizontal wells increases the sweep, or
formation contact area, of the injected
CO2 plume, as vertical channeling
through high permeability regions is
reduced. Increasing the sweep results in
enhanced residual-phase CO2 trapping
and dissolution favorable for the
purposes of permanent storage.
Horizontal wells also reduce the
pressures needed to inject any given
volume of fluid. In addition, fewer
vertical completions are required with
the use of horizontal wells, which
reduces the number of artificial
penetrations in the formation through
PO 00000
Frm 00019
Fmt 4701
Sfmt 4702
43509
which fluid could migrate, as well as
reducing overall costs.
EPA seeks comment on the merits of
horizontal well drilling techniques for
GS wells and the applicability of well
construction requirements discussed in
this proposal.
Well Component Degradation: The
potentially corrosive nature of the
injectate must be taken into
consideration in the design and
construction of CO2 GS wells. The
quality of the well materials, proper
well construction, composition and
placement of appropriate cement along
the wellbore, and appropriate
maintenance are crucial, because a
leaking annulus would be a significant
route of escape for CO2 (IPCC, 2005).
CO2 mixed with water or impurities
(NOX, SOX and H2S) can be corrosive to
well materials and cements.
Conventional cement formulations (e.g.,
Portland cement) are potentially
vulnerable to acid attack. Acid attack on
the calcium carbonate in cement can
lead to altered permeability and
mechanical instability. Defects in the
well cement, such as channels, cracks,
and microannuli (i.e., small spaces
between the casing and cement) can
provide pathways for acid to migrate
and accelerate degradation.
Experience with CO2 injection for
EOR includes the use of acid-resistant
cements. Cements with a reduced
Portland content are more resistant to
acid because they contain less calcium
carbonate (CaCO3). Acid resistant
cements can be formulated by adding fly
ash, silica fume (microsilica), latex,
epoxy, or other substances. Calcium
phosphate cement is a blend of highalumina cement, phosphate, and fly ash
that can retain integrity under
conditions where other cements lose a
substantial portion of their weight,
according to one manufacturer (https://
www.eandpnet.com/area/exp/153.htm).
EPA examined available information
to determine the rate at which cement
degrades in acidic environments.
Laboratory studies provide evidence of
deterioration of cement and other well
components due to exposure to acid.
For example, Duguid et al., (2004)
performed a laboratory study in which
Portland cement experienced significant
damage within seven days. Similar
experiments by Kutchko et al., (2007)
showed less cement alteration.
Differences between these studies may
be due to different experimental
conditions, such as temperature and
pressure.
Limited results of field studies show
clear evidence of reactions between CO2
and well cement, but do not show such
severe corrosion. Cement samples from
E:\FR\FM\25JYP2.SGM
25JYP2
jlentini on PROD1PC65 with PROPOSALS2
43510
Federal Register / Vol. 73, No. 144 / Friday, July 25, 2008 / Proposed Rules
a well at the Scurry Area Canyon Reef
Operators Committee (SACROC) site did
not show serious degradation (Carey et
al., 2007). In another study, cement
samples were collected and analyzed
from a CO2 production well in a natural
CO2 reservoir in Colorado exposed to a
CO2-water environment for 30 years
(Crow et al., 2008). The study found
considerable reactions between the CO2
and cement, and CO2 migration up the
wellbore along the cement-formation
interface. However, the cement
alteration was not significant enough to
enable CO2 migration through the
cement itself and the distance of CO2
migration along the cement-formation
interface was very limited. Although the
field corrosion looks surprisingly low,
these are only limited examples.
Laboratory studies are conducted under
aggressive chemical conditions in an
attempt to mimic the cumulative effects
of long-term exposure to CO2-rich
formation fluids. Given the high
injection rates, long lifespan, and
potential impurities in GS, careful
selection of acid-resistant materials and
practices may be necessary.
Metal components of the injection
well, such as carbon steel, are subject to
corrosion. To minimize problems,
Meyer (2007) recommends the use of
Grade 316 stainless steel. One company
working on GS projects indicates that
they use stainless steel well casing to
avoid corrosion problems (Buller et al.,
2004). Stainless steels consist of iron,
small amounts of carbon, and at least 10
percent chromium. Grade 316 stainless
steel also contains molybdenum, which
endows it with corrosion resistance in a
variety of corrosive media, although it is
subject to corrosion in warm chloride
environments and to stress corrosion
cracking at warmer temperatures (above
60 degrees C). According to the report,
recovered CO2 injection well
components at the SACROC site in
Texas were made of Grade 316 stainless
steel and did not exhibit signs of
corrosion. Industry representatives at
the Technical Workshop on Well
Construction and MIT noted that many
casing options (e.g., titanium and
fiberglass casing) are available. Useful
packer products include swell-resistant
elastomer materials such as Buna-N and
Nitrile rubbers (Meyer, 2007). Teflon
and nylon are options for anti-corrosion
seals.
The use of corrosion-resistant
materials is crucial to the success of
long-term GS operations. UIC program
experience, industry experience, and
stakeholder input suggest that
appropriate materials are available.
Today’s proposal does not specify
materials that may be used, rather,
VerDate Aug<31>2005
17:19 Jul 24, 2008
Jkt 214001
proposes providing the owner or
operator with the flexibility to choose,
as long as the materials used in GS wells
are corrosion-resistant and meet or
exceed standards developed for such
materials by API or ASTM International,
or comparable standards approved by
the Director. Well materials must be
compatible with injected fluids,
including any co-injected impurities or
additives, throughout the life of the
project, and be appropriate for the well’s
depth, the size of the well bore, and the
lithology of injection and confining
zones.
GS projects are anticipated to have
long lifespans in comparison to other
types of deep injection wells. Not only
must GS wells be able to function safely
and properly over the lifespan of the GS
project, but they must be constructed
such that USDWs remain protected after
well plugging. Today’s proposal would
require that the cements and cement
additives used in GS wells be
appropriate to address long-term
injection of CO2 and assure that the well
can maintain integrity throughout the
proposed life span of the project,
including the post-injection site care
period and beyond once the well is
permanently plugged. Owners or
operators must use corrosion-resistant
cement approved by the Director and be
able to verify the integrity of the cement
using logs or other acceptable methods.
EPA seeks comment regarding
requirements for degradation-resistant
well construction materials, such as
acid-resistant cements and corrosion
resistant casing.
4. Proposed Injection Well Operating
Requirements
EPA’s operating requirements for
deep injection wells provide multiple
safeguards to ensure that injected fluids
do not escape and are confined within
the injection zone and that the integrity
of the confining zone is not
compromised by non sealing artificial
penetrations or geologic features. In
today’s proposal, some well operating
requirements are consistent with
existing UIC well types and some
requirements are tailored specifically for
CO2 injection.
Injection Parameter Limitations:
Limitations on injection parameters are
intended to prevent the movement of
injected or other fluids to USDWs via
fractures in confining layers or vertical
migration. In order to drive the injected
fluids away from the well and into the
formation, fluids must be injected at a
higher pressure than the pressure of
fluids in the injection zone. However,
the sustained pressure should not be as
high as fracture pressure, that is, high
PO 00000
Frm 00020
Fmt 4701
Sfmt 4702
enough to initiate or propagate fractures
in the injection or confining zone. If the
pressure within the reservoir becomes
high enough, induced stresses may
reactivate existing faults (Rutqvist et al.,
2007), though injection pressure
limitations may be employed to prevent
this (Li et al., 2006). Several
geomechanical methods are available to
assess the stability of faults and estimate
maximum sustainable pore fluid
pressures for CO2 storage. For example,
one way of deriving these is to calculate
the effective stresses on faults and
reservoir rocks based on fault
orientations, pore fluid pressures, and
in-situ stresses (Streit and Hillis, 2004).
Today’s proposal would require an
injection pressure limitation similar to
existing UIC Class I deep well
requirements. Owners or operators of
GS wells must limit CO2 injection
pressures, except during well
stimulation, so that injection does not
initiate new fractures, propagate
existing fractures in the injection zone,
or cause movement of injection or
formation fluids that endanger USDWs.
Under this proposal, during injection,
the pressure in the injection zone must
not exceed 90 percent of the fracture
pressure of the injection zone.
Calculation of fracture pressure is
fundamental to evaluating the
appropriateness of the site. The 90
percent requirement, suggested by
permit writers and IOGCC, provides an
added margin of safety in the well
operation.
There are some circumstances,
however, where fracturing of the
injection zone would be acceptable
provided the integrity of the confining
system remains unaffected. For
example, hydraulic fracturing is a
process where a fluid is injected under
high pressure that exceeds the rock
strength, and the fluid opens or enlarges
fractures in the rock. EPA recognizes
that there may be well completions
which require intermittent treatments,
including hydraulic fracturing of the
injection zone, to improve wellbore
injectivity. Such stimulation of the
injection zone during a well workover
(as defined in 40 CFR 144.86(d))
approved by the Director would be
permissible.
Fracturing of the confining zone
would be prohibited at all times during
injection and/or stimulation.
It is also possible that CO2 GS may be
associated with ECBM, where more
extensive hydraulic fracturing would be
necessary to open pre-existing fractures
in the coal and provide additional
surfaces onto which CO2 may adsorb
and to extract methane. These hydraulic
fracturing operations are used to
E:\FR\FM\25JYP2.SGM
25JYP2
jlentini on PROD1PC65 with PROPOSALS2
Federal Register / Vol. 73, No. 144 / Friday, July 25, 2008 / Proposed Rules
enhance oil and gas recovery and for
ECBM recovery, and in general are
exceptions to the definition of
underground injection under the
SDWA.
EPA is requesting comment on the
extent and scope to which hydraulic
fracturing should be allowed during GS
injection, and whether the use of
fracturing for the purposes of well
stimulation is appropriate. EPA is also
requesting information to better qualify
the use of fracturing for GS injection in
specific geologic settings and rock
formation lithologies.
Continuous Monitoring: Monitoring
within the injection well system is
important to assure that the injection
project is operating within permitted
limits. It can also protect the owner or
operator’s investment, as significant
divergences in any of these parameters
could damage well components. Deep
injection well owners or operators
typically monitor injection pressure,
flow rate, temperature, and volumes.
Owners or operators usually choose to
maintain pressure on the annulus
between the tubing and the long string
casing and monitor this pressure to
ensure protection of USDWs from well
leakage. Monitoring is generally
performed on a continuous basis,
through the use of automated equipment
that typically takes readings several
times per minute and records them in a
computer system.
Alarms and automatic shut-off
devices connected to the monitoring
equipment can engage if operational
limits are exceeded. Available
computer-driven monitoring systems
have the ability to continuously monitor
injection parameters and engage the
shut-off devices. Though these systems
are not required for all UIC well classes,
the complexity of GS operations and the
potential for movement of the CO2 in
the event of a mechanical integrity loss
makes a shut-off system an important
safety consideration for GS projects.
Traditionally, owners or operators
have installed monitoring and shut-off
equipment at the wellhead (i.e., at the
surface), however, down-hole devices
have been used in offshore applications
for several years. Today’s proposal
requires that automatic shut-off valves
be installed down-hole in addition to at
the surface. This requirement is
supported by many participants at the
technical workshops and the IOGCC’s
recommendations.
The down-hole valves provide a
safety backstop in case damage to the
wellhead prevents the proper operation
of wellhead shut-off valves. Direct
pressure measurements used to trigger
shut-off devices are more accurate than
VerDate Aug<31>2005
17:19 Jul 24, 2008
Jkt 214001
wellhead calculations of down-hole
pressure. The down-hole valves are an
integral part of the tubing string and can
be positioned anywhere along the
tubing string. Gauges can be either
inside or outside of the casing;
installation on the outside of the casing
may cause less interference with well
maintenance. The down-hole valves are
kept in an open position by hydraulic
pressure from a connection to the
surface. Damage to the wellhead or an
upset in operations causes the positive
hydraulic pressure to fall, forcing the
valve into a ‘‘failsafe’’ closed position.
In case of well failure, a down-hole
shut-off device would isolate the
injectate below USDWs, rather than just
below the surface. By engaging near the
injection zone, they can prevent
pressure-induced damage to the well
casing. This would also require less
expensive repairs if pressure
exceedances were to occur.
While there would be some cost and
downtime associated with replacing
failed down-hole valves, such costs are
considered small in comparison to the
costs if large amounts of CO2 should
escape into USDWs or to the surface. It
is possible to place a new valve downhole without removing the existing
valve, so downtime can be minimized if
an appropriate parts inventory is kept
on hand. A Norwegian study found that
the failure rate of down-hole safety
valves was 2 failures per million
operating hours (Norwegian Oil
Industry Association, 2001). This is a
relatively low failure rate as the valves
are designed to withstand harsh
conditions and operate well after years
of inactivity. Overall, it is likely that
costs for replacing failed valves would
be insignificant in comparison with
costs of a CO2 leak.
Several types of valves are available
and in use, including flappers and ball
valves. The flapper types seem to be
more reliable, at least for oilfield
applications (Garner et al., 2002). EPA
seeks comment on the merits of
requiring down-hole shut-off valves in
GS wells.
Corrosion Monitoring and Control:
Existing UIC Class I deep well operating
requirements allow Director’s discretion
to require corrosion monitoring and
control in the case of corrosive fluids.
Corrosion monitoring can help avoid or
provide early warning of corrosion of
well materials that could compromise
the well’s integrity. This is
accomplished by exposing ‘‘coupons,’’
or small samples of the well material to
the injection stream. The samples are
periodically removed from the flow line,
cleaned and weighed; the weight is
compared to previous values to
PO 00000
Frm 00021
Fmt 4701
Sfmt 4702
43511
calculate a corrosion rate. Other
methods of corrosion monitoring/
control include: The use of wireline
enhanced caliper or imaging logs to
inspect the casing, the use of ultrasonic
and electromagnetic techniques in well
pipes (Brondel et al., 1994), the use of
cathodic protection (where the casing
would become the cathode of an
electrochemical cell), or the use of
biocide/corrosion inhibitor fluid in the
annular space between the casing and
tubing.
CO2 reacts with water to become
acidic, potentially accelerating
corrosion of well materials. The CO2
stream for a GS project may also contain
small volumes of impurities that could
be corrosive. Thus, EPA is proposing to
require corrosion monitoring for GS
wells. Corrosion monitoring is further
discussed in the monitoring and testing
section of this preamble.
Injection Depth in Relation to USDWs:
Today’s proposal specifies a
requirement that such injection should
be allowed only beneath the lowermost
formation containing a USDW. This is
consistent with the siting and
operational requirements for all Class I
hazardous injection wells, and a very
important protective component of the
UIC program. Placing distance between
the point of injection and USDWs
allows for the necessary confining and
buffer formations, and further provides
for opportunity for additional
monitoring to detect any excursions
from the intended injection zone.
However, EPA is not prescribing a
minimum injection depth to keep the
CO2 in a supercritical, liquid state after
it is injected, as some well operators
may choose to inject the CO2 as a gas.
If the trapping mechanism is sufficiently
protective, the injected CO2 should be
contained regardless of its phase.
Some stakeholders and co-regulators
have proposed other approaches for
specifying an injection depth and these
merit consideration by EPA. For
example, one approach would be to
require a minimum injection depth of
approximately 800 m (2,625 feet) for GS
of CO2. The geothermal gradient and
weight of the fluid and rock layers
above this target depth would maintain
CO2 at a sufficiently high pressure to
keep it in a supercritical, liquid state.
Storing CO2 at supercritical pressure
would allow storage of greater volumes
and thereby increase available
underground storage capacity.
Additionally, storing CO2 in a
supercritical, liquid state may prevent
the frequency of well mechanical
integrity failure. When supercritical CO2
is injected into shallow formations
where pressures are not high enough to
E:\FR\FM\25JYP2.SGM
25JYP2
jlentini on PROD1PC65 with PROPOSALS2
43512
Federal Register / Vol. 73, No. 144 / Friday, July 25, 2008 / Proposed Rules
maintain its supercritical state, it will
revert to a gas. The expansion of gaseous
CO2 will cause a drop in temperature
(the Joule-Thomson effect), and if this
temperature drop is large enough,
freezing and thermal shock may take
place in the vicinity of the well.
Thermal shock is a common cause of
cracking in many types of pressure
equipment, and repeated exposure to
such stresses could compromise the
integrity of the injection well’s tubular
components. Participants at the
Technical Workshop on Well
Construction and MIT suggested that
these phase changes (i.e., supercritical
liquid to gas) are potentially a greater
mechanical integrity concern than
corrosivity. Modeling by Oldenburg
(2007) shows that if the pressure drop
is not large (less than 10 bars), this effect
will not be great enough to cause
significant problems. However,
technical workshop participants
concluded that more research is needed
on the effects of phase changes on well
mechanical integrity.
EPA is aware that the proposed
requirement of injecting CO2 below the
lowermost USDW may preclude
injection into certain targeted geologic
formations, which may be storage sites
currently under consideration for GS.
These formations may include
unmineable coal seams (those not being
used for Class II enhanced coal bed
methane production), zones in between
or above USDWs, and other formations
also under consideration. In areas of the
country with very deep USDWs, the
need to construct GS wells beneath
them may render GS technically
impractical. As a result, the Agency is
considering and requesting comment on
alternative approaches that would allow
injection between and/or above the
lowermost USDW, and thus potentially
allow for more areas to be available for
GS while preventing USDW
endangerment.
One alternative under consideration is
a provision for Director’s discretion to
allow injection above or between
USDWs in specific geologic settings
where the depth of the USDWs may
preclude GS, make GS technically
challenging, or significantly limit CO2
storage capacity. Such approval by the
Director would allow injection between
USDWs (and thereby allowing injection
above the lowermost USDW) in
circumstances in which it may be
demonstrated that USDWs would not be
endangered. An example where such
injection may be appropriate presents
itself in areas such as the Williston and
Powder River Basins in Wyoming, North
Dakota, and South Dakota, where
receiving formations (formations with
VerDate Aug<31>2005
17:19 Jul 24, 2008
Jkt 214001
large CO2 storage capacity) for GS have
been identified above the lowermost
USDW and where there may be
thousands of feet of rock strata between
the injection zone and the overlying and
underlying USDWs. In these cases,
injection above or between USDWs may
be appropriate, however, the Agency
currently lacks data to demonstrate that
such practices are or are not protective
of USDWs.
Also, EPA is considering allowing
Directors to exempt all USDWs below
the injection zone. Currently, Directors
may issue ‘‘aquifer exemptions’’ which
when approved, essentially determine
that an aquifer is no longer afforded
protection as a USDW, in accordance
with the requirements of 40 CFR
144.7(b)(1). Aquifer exemptions are
permitted for mineral or hydrocarbon
exploitation by Class III solution mining
wells, or by Class II oil and gas-related
wells, respectively, and when there is
no reasonable expectation that the
exempted aquifer will be used as a
drinking water supply (please see
specific aquifer exemption criteria at 40
CFR 146.4). When EPA exempts an
aquifer, it is no longer considered a
USDW now or in the future. EPA limits
aquifer exemptions for injection
operations to the circumstances where
the necessary criteria at 40 CFR 146.4
are met and not, in general, for the
purpose of creating additional capacity
for the emplacement of fluids.
EPA carefully considers all aspects of
ensuring the protection of USDWs
before approving an aquifer exemption
request for any injection purpose in UIC
programs which it implements. The
Agency’s interpretation of the SDWA,
and its own UIC regulations, currently
allows for aquifer exemptions sought for
specific reasons (as outlined above) and
not solely for the purpose of relaxing
well owner/operator requirements, such
as operating, monitoring, or testing.
Therefore, in general, the Agency does
not consider aquifer exemption requests
for non-injection formations. It has also
been EPA’s long-standing policy not to
grant aquifer exemptions for the
purpose of hazardous waste disposal
because of the infeasibility of meeting
Class I hazardous waste siting
requirements (i.e., injection must be
below the lowermost USDW).
However, aquifer exemptions could
be issued for GS wells where receiving
formations are situated above the
lowermost USDW and where there are
thousands of feet between the injection
zone and the overlying and underlying
USDWs. In these circumstances, the
permit applicant would be required to
meet all Class VI permit requirements.
PO 00000
Frm 00022
Fmt 4701
Sfmt 4702
It is also anticipated that some
aquifers previously exempted for Class
II injection operations may be
appropriate formations for GS and
permit applicants may seek to use these
formations. In such circumstances, the
permit applicant for a GS Class VI well
would be required to seek a new aquifer
exemption for the purpose of GS, and
provide a non-endangerment
demonstration that reflects the
predicted extent of the CO2 plume, the
associated pressure front, and the scope
of the injection activities.
Furthermore, there may be other
geologic settings with formations that
could receive and store CO2 that are not
below the lowermost USDW. Such
formations include deep, marginal
USDWs directly overlying crystalline
basement rock and/or unmineable coal
seams. Under today’s proposal, these
formations would not qualify for GS
without aquifer exemptions. In these
areas where USDWs directly overlie
crystalline basement rock, permit
applicants may seek aquifer exemptions
and permits to inject CO2 for GS into
these exempted aquifers. In unmineable
coal seams that are USDWs or contain
or are bounded by formations that are
USDWs, permit applicants may also
seek aquifer exemptions and permits for
GS.
In summary, EPA is soliciting
comment on whether CO2 injection
should be allowed into an injection
zone above the lowermost USDW, when
the Director determines that geologic
conditions (e.g., thousands of feet of
intervening formations between the
injection zone and the overlying and/or
underlying USDWs) exist that will
prevent fluid movement into adjacent
USDWs. EPA is also requesting
comments on whether aquifer
exemptions should be allowed for the
purpose of Class VI injection, and under
what conditions should such aquifer
exemptions be approved. Finally, EPA
seeks comment on whether the Agency
should set a minimum injection depth
requirement for CO2 GS, rather than
require that such injection take place
below the lowermost USDW.
Tracers: While the UIC Program’s
protective elements greatly reduce the
potential for leakage, leakage is a
possibility in any underground injection
project. Tracers may help facilitate leak
detection. Though use of tracers is not
required under existing deep well
requirements, the buoyancy of CO2 and
the large volumes that are expected to
be injected may warrant improved leak
detection for GS wells. Detection of
leakage of injected CO2 at the surface
would indicate potential endangerment
to USDWs. Additionally, if tracers are
E:\FR\FM\25JYP2.SGM
25JYP2
jlentini on PROD1PC65 with PROPOSALS2
Federal Register / Vol. 73, No. 144 / Friday, July 25, 2008 / Proposed Rules
used for CO2 GS projects, they may also
help owners or operators to infer
geochemical processes caused by CO2
(e.g., dissolution or precipitation of
calcium carbonate) that may pose risks.
Gaseous CO2 is odorless and invisible.
Tracers can be odorants, such as those
added to domestic natural gas, in order
to serve as a warning of a natural gas
leak. Mercaptans are the most effective
odorants, however, they are not
generally suitable for GS because they
are degraded by oxygen, even at very
low concentrations. The experience
from the natural gas storage industry is
that they are scrubbed from the gas by
adsorption to the formation in the
subsurface. Disulphides, thioethers and
ring compounds containing sulfur are
options for CO2 GS odorants (IPCC,
2005). However, there has been no
testing of these substances for GS, and
it is unknown whether using them for
GS would be effective.
Participants at the technical workshop
on monitoring, measurement, and
verification (MMV) discussed the use of
tracers in monitoring. Measurement of
stable isotopes of carbon (i.e., C12/C13
ratio) can serve as tracers and may be
useful for identifying the source of CO2
(e.g., anthropogenic or biological).
Panelists also addressed the potential
utility of perfluorocarbon (PFC) and
other inert tracers in detecting CO2
leakage. According to some researchers,
PFCs are conservative and will remain
with the CO2. Unique suites (or batches)
of PFCs can be created using different
combinations of PFCs. Different PFC
suites can be used to establish unique
signatures for different time periods of
prolonged injection or for multiple CO2
injections, making it feasible to detect if
a leak is transient versus long-term in
nature.
There may be potential benefits of
tracers for CO2 GS operations, though
tracers’ effectiveness and costeffectiveness are debated. There are also
technical challenges, such as false
positives, associated with their use that
will vary on a case-by-case basis. In
addition, in the case of PFCs, which
have a global warming potential many
orders of magnitude higher than CO2,
there may be concerns about the
consequences of potential releases to the
atmosphere. Today’s proposal allows
Directors’ discretion on whether to
require the use of tracers, and if so, what
types of tracers. EPA seeks comment on
the use of tracers in CO2 GS operations,
and any potential impact of tracers on
human health or ecosystems as they
relate to USDWs.
VerDate Aug<31>2005
17:19 Jul 24, 2008
Jkt 214001
5. Proposed Mechanical Integrity
Testing Requirements
Injection well mechanical integrity
testing (MIT) is a critical component of
the UIC Program’s goal to protect
USDWs. Testing and monitoring the
integrity of an injection well, at the
appropriate frequency, can verify that
the injection activity is operating as
intended and does not endanger
USDWs. MIT requirements for GS wells
should be tailored to address the unique
properties of CO2, specifically its
buoyancy and potential corrosivity, so
that owners or operators of GS projects
will be able to detect defects within the
well, and between the well and the
borehole, before these defects could
allow GS-related fluids to move into
unintended formations or toward
USDWs.
Currently, all UIC injection well
owners or operators must demonstrate
that their wells have both internal and
external mechanical integrity (MI) (40
CFR 146.8). An injection well has
internal MI if there is an absence of
leakage in the injection tubing, casing,
or packer. Typically, internal
mechanical integrity testing is
accomplished with a periodic pressure
test of the annular space between the
injection tubing and long string casing
of this annual space. Usually, loss of
internal MI is due to corrosion or
mechanical failure of the injection
well’s components. Rarely, because of
the multiple-barrier nature of injection
well construction, do internal MI losses
result in leakage outside of the well and
present an endangerment to a USDW.
Injection well external integrity is
demonstrated by establishing the
absence of fluid flow along the outside
of the casing, generally between the
cement and the well structure, although
such flow may also occur between the
cement and the well bore itself. This is
typically accomplished through the use
of down-hole geophysical logs or
surveys designed to detect such leaks,
once every five years. Failure of an
external MIT can indicate improper
cementing or degradation of the cement
that was emplaced to fill and seal the
annular space between the outside of
the casing and the well borehole. This
type of failure can lead to movement of
injected fluids out of intended injection
zones and toward USDWs. As with
internal MI failure, temporary loss of
external MI rarely results in
endangerment to USDWs.
Failure of either external or internal
mechanical integrity may mean that one
of the multiple protective layers in an
injection well is not operating as
intended. Proper testing can serve as an
PO 00000
Frm 00023
Fmt 4701
Sfmt 4702
43513
early warning to owners or operators
that the well is not performing
optimally and that maintenance or
repair of a component of the well is
needed before the injectate moves to
unintended zones or a USDW is
impacted.
The decades of State and EPA
experience with Class I and Class II
mechanical integrity testing
requirements provides the best
knowledge base for identifying
appropriate MIT requirements for GS
projects. This is supported by findings
from technical workshops, conferences,
and research. However, because of the
buoyant and corrosive properties of a
GS stream, current deep well internal
and external MIT requirements will
need to be tailored in order to ensure
the protection of USDWs.
As previously discussed, internal MI
testing is designed to evaluate the
condition of internal well components.
The evaluation is typically
accomplished with an annual pressure
test. However, due to the nature of the
GS injection stream, corrosivity must be
considered when planning for MITs in
GS projects. Studies conducted by EPA
of previous MIT results suggest that
wells injecting corrosive fluids fail MITs
at rates 2 to 3 times higher than those
that inject non-corrosive fluids. Thus, a
more corrosive injectate is a potential
risk factor for MIT failure.
Therefore, today’s proposal would
require owners or operators of Class VI
GS projects to monitor internal
mechanical integrity of their injection
wells by continuously monitoring
injection pressure, flow rate, and
injected volumes, as well as the annular
pressure and fluid volume to assure that
no anomalies occur that may indicate an
internal leak. EPA requests comment on
the practicability of this requirement.
Continuous internal mechanical
integrity monitoring of GS project
injection wells, instead of periodic
testing (which is required for most other
types of deep injection wells) is
important because the corrosive nature
of GS waste streams makes immediate
identification of corrosion-related well
integrity loss critical. Today’s proposal
would also require automatic down-hole
shut-off mechanisms (see proposed
injection well operating requirements
section) in the event of an MI loss.
Continuous computer-driven
monitoring of internal MI would need to
be performed in order for automatic
shut-off systems to be activated. This
combination of computer-driven
continuous internal monitoring linked
to an automatic down-hole injection
shut-off provides the maximum
protection to USDWs and the earliest
E:\FR\FM\25JYP2.SGM
25JYP2
43514
Federal Register / Vol. 73, No. 144 / Friday, July 25, 2008 / Proposed Rules
jlentini on PROD1PC65 with PROPOSALS2
warning to owners or operators that
repairs need to be performed.
This proposed requirement would
eliminate the necessity of conducting
other periodic internal MITs. However,
today’s proposal would provide the
Director with the discretion to request
any other additional tests necessary to
ensure the protection of USDWs.
As mentioned above, external
mechanical integrity testing is used to
determine the absence of fluid leaks
behind the long string casing. Instead of
requiring external MI to be
demonstrated every five years (which is
typical for other types of deep injection
wells), today’s proposal would require
owners or operators of CO2 wells to
demonstrate injection well external
mechanical integrity at least once
annually. This increase in testing
frequency (from once every five years to
once a year) is justifiable for the
protection of USDWs given the potential
corrosive effects on injection well
components (steel casing and cement)
that are exposed to the GS stream and
the buoyant nature of the injected fluid
that tends to force it upward toward
USDWs.
Today’s proposal does not change the
existing allowable methods for
demonstrating external MI in deep
injection wells. They would include the
use of a tracer survey, a temperature or
noise log, a casing inspection log if
required by the Director, or an
alternative approved by the
Administrator and, subsequently, the
Director. Today’s proposal would also
provide the Director with the discretion
to request additional tests.
EPA proposes that owners or
operators report semi-annually on the
injection pressure, flow rate,
temperature, volume and annular
pressure, and on the results of MITs.
This reporting frequency, which is the
same as for other deep injection well
classes, has proven to be timely for
notification to permitting authorities on
the status of the operation.
EPA seeks comment on the
appropriate frequency of internal and
external MITs for GS injection wells, the
appropriate types of MITs, and how to
optimize MIT methods for GS.
6. Proposed Plume and Pressure Front
Monitoring Requirements
Monitoring associated with UIC
injection wells is required to ensure that
the injectate is safely confined in the
intended subsurface geologic formations
and USDWs are not endangered. Certain
existing UIC program monitoring
requirements apply to all wells, while
others are based on site-specific
information and Director’s discretion.
VerDate Aug<31>2005
17:19 Jul 24, 2008
Jkt 214001
Information obtained through
monitoring may be used to maintain the
efficiency of the storage operation,
minimize costs, and confirm that
injection zone pressure decline follows
predictions. Monitoring results of GS
wells would also be used as data inputs
for reevaluation of the site
computational model and AoR and
corrective action.
EPA considers CO2 plume and
associated pressure front monitoring to
be necessary for verification of model
predictions. An integrated monitoring
and modeling strategy should be used to
track the evolution of the CO2 plume
and associated pressure front.
Monitoring may be conducted with a
combination of direct and indirect
techniques appropriate for the
conditions of specific GS projects.
Monitoring is necessary to verify initial
model predictions given the uncertainty
of CO2 fate and transport; because large
volumes of CO2 will be injected during
GS operations; and because of the
challenges of comprehensive site
characterization in large formations that
may be used for GS projects. Monitoring
results should be used to assess CO2
movement through high-permeability
regions (i.e., faults, fractures) not
detected in site characterization and
included in initial site modeling. Early
pilot-projects have indicated that the
most complete understanding of the
site-specific behavior of CO2 will result
from monitoring the movement of CO2
itself (e.g., Doughty et al., 2007).
EPA seeks comment on the
requirement for monitoring of GS sites
for the purpose of tracking the location
of the CO2 plume and associated
pressure front over time.
Testing and Monitoring Plan: A
monitoring program for a GS project
should be designed to detect changes in
ground water quality and track the
extent of the CO2 plume and area of
elevated pressure. Today, EPA is
proposing that owners or operators of
Class VI wells would submit, with their
permit application, a testing and
monitoring plan to verify that the GS
project is operating as intended and is
not endangering USDWs. This plan
would be implemented upon Director
approval and would include, at a
minimum, analysis of the chemical and
physical characteristics of the CO2
stream; monitoring of injection pressure,
rate, and volume; monitoring of annular
pressure and fluid volume; corrosion
monitoring; a demonstration of external
mechanical integrity (see proposed
mechanical integrity testing
requirements section of the preamble); a
determination of the position of the CO2
plume and area of elevated pressure;
PO 00000
Frm 00024
Fmt 4701
Sfmt 4702
monitoring of geochemical changes in
the subsurface; and, at the discretion of
the Director, monitoring for CO2 fluxes
in surface air and soil gas, and any
additional tests requested by the
Director.
Monitoring within multiple layers
(i.e., in the primary confining system; in
USDWs and other shallow layers; and,
at the surface) supports a multi-barrier
approach to protecting USDWs. Surface
air and/or soil gas monitoring may be
used as the last line of monitoring to
ensure that there has not been vertical
CO2 leakage, which could endanger
USDWs. The program should also be
site-specific, based on the identification
and assessment of potential CO2 leakage
routes complemented by computational
modeling of the site.
Under today’s proposal, owners or
operators would be required to analyze
the CO2 stream at a frequency sufficient
to yield data representative of its
chemical and physical characteristics.
This analysis will provide information
on the content and corrosivity of the
injected stream, which in turn will
support improvements in well
construction and optimization of well
operating parameters. EPA also
proposes that owners or operators
would monitor well materials for signs
of corrosion, such as loss of mass,
thickness, cracking, or pitting. The
proposed requirements are critical to
address the potential well integrity
concerns associated with the corrosive
nature of the CO2 stream, to avoid (or
provide early warning of) corrosion of
well materials, and to protect the
integrity of GS wells. Today’s proposal
would also require continuous
monitoring of the injection pressure,
rate and volume, as well as annular
pressure and fluid volume discussed in
the well construction and operation
section of the preamble.
Monitoring CO2 Movement and
Reservoir Pressure: Monitoring
subsurface geochemistry and the
position of the CO2 plume and pressure
front are necessary to verify predictions
of plume movement, provide inputs for
modeling, identify needed corrective
actions, and target geochemical and
surface monitoring activities.
Under today’s proposal, owners or
operators would be required to track the
subsurface extent of the CO2 plume and
pressure front using pressure gauges in
the first formation overlying the
confining zone or using indirect
geophysical techniques (e.g., seismic,
electrical, gravity, or electromagnetic
surveys) or other down-hole CO2
detection tools, monitor for geochemical
changes in subsurface formations, and if
directed, monitor at the surface. Today’s
E:\FR\FM\25JYP2.SGM
25JYP2
jlentini on PROD1PC65 with PROPOSALS2
Federal Register / Vol. 73, No. 144 / Friday, July 25, 2008 / Proposed Rules
proposal would also require owners or
operators to monitor ground water
quality and geochemical changes above
the confining system. The results of this
monitoring would be compared to
baseline geochemical data to identify
changes that may indicate unacceptable
movement of CO2 or formation fluids.
In order to provide guidance related
to monitoring of GS sites, EPA invited
expert advice and reviewed technical
documentation. EPA held a technical
workshop on measurement, monitoring,
and verification focused on the
availability and utility of various
subsurface and near-surface monitoring
techniques that may be applicable to GS
projects. This workshop, co-sponsored
by the Ground Water Protection Council
(GWPC), took place in New Orleans, LA,
on January 16, 2008.
Monitoring within the confining zone
for pressure, pH, salinity, or the
presence of dissolved minerals, heavy
metals, or organic contaminants requires
direct access to the subsurface via
monitoring wells. Wells installed for
this purpose would be strategically
placed in areas predicted to overlie the
eventual CO2 plume and area of
elevated pressure. Well number and
placement would be based on project
specific information such as injection
rate and volume, site specific geology,
baseline geochemical data, and the
presence of artificial penetrations.
Predictive models of the extent and
direction of plume movement can
support decisions about monitoring well
placement. This has the dual benefit of
targeting resources associated with what
is an expensive monitoring activity and
minimizing the number of artificial
penetrations near the injection well,
which could potentially become
conduits for fluid movement into
USDWs.
Today’s proposal would require that
owners or operators perform a pressure
fall-off test at least once every five years.
Pressure fall-off tests are designed to
ensure that reservoir injection pressures
are tracking to predicted pressures and
modeling input. They may be used in
project siting and AoR calculations.
Results of pressure fall-off tests may
indicate mischaracterization of the site
specific geology and potentially
unidentified leakage pathways. EPA
seeks comment on the use and
frequency of pressure fall-off testing for
GS wells.
Pressure monitoring, both at the
surface and in the formation, is a
routine part of CO2 injection projects
that serves several purposes. For
instance, monitoring pressure in
injection wells allows for use of shut-off
valves in the event that injection
VerDate Aug<31>2005
17:19 Jul 24, 2008
Jkt 214001
pressure exceeds the formation fracture
pressure, or pressure drop-offs indicate
a subsurface leak (IPCC, 2005). Pressure
monitoring in monitoring wells
provides an indication of whether there
is potential for brine intrusion into
USDWs and CO2 leakage. When
combined with information on
temperature, pressure data provide an
indication of the phase (e.g., gas,
supercritical) and amount of the
injected CO2.
Various pressure sensors are
available, and monitoring can be
conducted continuously. Conventional
sensor types include piezo-electric
transducers, strain gauges, diaphragms,
and capacitance gauges (Burton et al.,
2007). Fiber optic pressure and
temperature sensors are also now
commercially available and can be
installed down-hole and connected to
the surface through fiber optic cables.
According to Burton et al. (2007),
current monitoring technologies are
more than adequate for monitoring
pressure in a GS project.
Direct geochemical monitoring is an
important part of a monitoring program.
Temperature, salinity, and pH should be
monitored, as these parameters provide
basic information for understanding
water and gas geochemistry.
Additionally, obtaining ground water
samples via monitoring wells allows
direct measurement of aqueous and
pure-phase CO2. By studying the
interactions between brine and CO2, it
can be determined whether
precipitation and/or dissolution of
minerals is occurring (Nicot and
Hovorka, 2008). These analyses will also
indicate the rate of CO2 trapping
mechanisms, and whether mineral
dissolution may be causing permeability
changes in the formation or impacting
USDWs. Geochemical monitoring may
also be conducted for heavy metals and
organic contaminants that may
potentially be mobilized in the
formation due to injection.
Information and discussions from
EPA technical and public workshops
indicate that the collection of adequate
baseline (pre-injection) data is critical
for planning monitoring and for
detecting CO2 movement and leakage
during and after injection.
While the use of tracers is not a
specific monitoring requirement in
today’s proposal (per III.A.4), some
Directors may require owners or
operators to use them. EPA has
considered the merits of tracers for CO2
monitoring and recognizes that they
may also be voluntarily employed by
owners or operators. Tracers can also be
measured through direct geochemical
sampling to indicate the speed and
PO 00000
Frm 00025
Fmt 4701
Sfmt 4702
43515
direction of movement of CO2 after
injection. Naturally occurring tracers
include stable isotopes (atoms of a
particular element with different
numbers of neutrons) of carbon and
oxygen. Analyses of the amounts of
carbon-13 and oxygen-18 isotopes in
water are commonly used to track
movement through the environment and
to elucidate geochemical processes. It is
also possible to include tracers, such as
perfluorocarbons or noble gases, with
the injected CO2 (Nimz and Hudson,
2005). Loss of tracers between the
injection well and monitoring well may
indicate diffusion into low-permeability
materials, sorption, partitioning into
non-aqueous phase liquids, partitioning
into trapped gas phases, or leakage of
CO2 (Nicot and Hovorka, 2008). Tracers
were more fully discussed in the well
construction and operation section of
the preamble.
There are several technical challenges
associated with in-situ monitoring of
formation fluids via wells. In the course
of sample retrieval, there will be
pressure changes, causing changes in
CO2 solubility and pH. To address this,
LBNL developed a ‘‘U-tube’’ sampling
apparatus to enable collection of fluid
and gas samples at in-situ pressure
conditions. Also, samples collected
from monitoring wells are point
measurements that may not fully
represent the entire reservoir, especially
if there are extensive physical
heterogeneities.
Geophysical Methods for Plume
Tracking: Various non-invasive deep
subsurface monitoring techniques are
available to track the movement of the
CO2 plume. Many of these methods
have been developed for use in the oil
and gas industry, and some may also
support certain aspects of baseline
geologic characterization. Seismic and
electrical techniques have been used to
gather data related to rock composition,
porosity, fluid content, and in-situ stress
state.
In seismic surveying, a controlled
source of seismic energy is used to send
vibrations through the ground. The time
it takes for the seismic waves to reflect
off of a subsurface feature and reach a
receiver at the surface provides
information about the depth of the
feature. By using an array of receivers,
possible plume and leakage flowpaths
may be discerned. Seismic surveys may
also be useful for monitoring how rock
properties change with time during
injection and for mapping of the CO2
plume. This method has been used to
study the subsurface in the area near the
injection well for the CO2-SINK project
in Germany (Juhlin et al., 2006) and at
the Sleipner and In Salah sites. Seismic
E:\FR\FM\25JYP2.SGM
25JYP2
jlentini on PROD1PC65 with PROPOSALS2
43516
Federal Register / Vol. 73, No. 144 / Friday, July 25, 2008 / Proposed Rules
studies can also be done in a crosswell
arrangement by placing an array of
receivers in one borehole and drawing
a seismic source upwards in another
borehole, firing at periodic intervals.
Current crosswell experience relevant to
CO2 sequestration includes successful
imaging of CO2 saturation and pressure
effects in a carbonate reservoir in West
Texas (Harris and Langan, 2001).
Vertical seismic profiling (VSP),
conducted by placing geophones in a
vertical array inside a borehole and
measuring sound sources originating at
the surface, is another promising
technology for plume detection and
monitoring.
Electrical methods rely on the
electrical properties of the medium
being studied and offer promise for CO2
plume monitoring. Electromagnetic
(EM) surveys induce a current in
subsurface materials, and conductivity
meters detect areas with increased
conductivity. Near the surface, EM can
detect buried metal objects and
contaminated soils. In the deeper
subsurface, EM surveys can be used to
detect certain contaminant plumes. EM
surveys can also be done in crosswell
fashion. At Lawrence Livermore
National Laboratory, researchers are
conducting a long-term study using
time-lapse multiple frequency EM
survey characterization to image CO2
injected as part of an EOR operation
(Kirkendall and Roberts, 2001).
Electrical resistance tomography
(ERT) measures electrical resistance by
means of electrodes that may be placed
at the surface, but are more commonly
arrayed down boreholes in a crosswell
configuration. Because the electrical
properties of a medium are sensitive to
fluid chemistry, ERT can be used for
monitoring fluid migration in the
subsurface. The oil industry has used
ERT, and it has been also used for
environmental applications such as
detection of contaminant plumes at
waste sites. Newmark (2003) reported
preliminary data on the use of crosswell
ERT at an EOR site to monitor for CO2.
Microgravity surveys detect density
variations in the subsurface using
sensitive gravity measurements made at
the (ground) surface. Microgravity
surveys have been used to characterize
subsurface formations, and given the
density differences between CO2 and
formation brines, may be useful for
tracking a CO2 plume. Nooner et al.
(2003) discuss use of microgravity
surveys at the Sleipner CO2 GS project
in Norway.
GEO–SEQ (2004) discusses the
capabilities of seismic and electrical
crosswell methods for CO2 GS. The
authors note the high spatial resolution
VerDate Aug<31>2005
17:19 Jul 24, 2008
Jkt 214001
of these methods and state that they can
image leaks and fluid saturation within
a reservoir. Simulations discussed in the
manual confirm that seismic and
electrical conductivity crosswell
methods could provide information on
the saturation of CO2 within the
reservoir between wells. The authors
note that seismic crosswell methods
could also be used to detect CO2 phase
changes. Although these methods are
costly and time consuming, they may
prove useful at GS sites in the future. To
fully implement these technologies,
additional research is needed regarding
the electrical and seismic properties of
subsurface media containing CO2.
Some stakeholders expressed
concerns about the usefulness of seismic
surveys as a CO2 tracking tool under
certain geologic conditions, particularly
given the cost of specific technologies.
Based on information evaluated to date,
EPA believes that tracking the plume
and pressure front is an important
companion step to address any
uncertainties associated with initial
AoR modeling and requests comment on
this approach and more efficient
alternatives that may be used to track
the plume and pressure front.
As such, allowing flexibility in
choosing the plume tracking methods
and other monitoring technologies may
provide an appropriate balance between
the protective nature of indirect
monitoring and cost considerations, as
well as allowing for the adoption of
continuously advancing technology.
Surface Air and Soil Gas Monitoring:
Surface air measurements can be used to
monitor the flux of CO2 out of the deep
subsurface, with deviations from
background levels representing
potential leakage. If deviation in the flux
of CO2 is detected, it may indicate
potential endangerment of USDWs.
While subsurface monitoring forms the
primary basis for protecting USDWs,
near-surface and surface techniques
could be the last line of monitoring.
Under today’s proposal, owners or
operators could, at the Director’s
discretion, be required to conduct
surface air monitoring and/or soil gas
monitoring in the AoR. Knowledge of
leaks to shallow USDWs is of critical
importance since these USDWs are more
likely to serve public water supplies
than deeper formations. If leakage to a
USDW should occur, near-surface and
surface monitoring can identify the
general location of the leak.
A range of techniques employed at
varied monitoring frequencies are
available for implementation. Optimal
spacing of monitoring wells, eddy
covariance towers, or soil gas chambers
would need to be selected, and may be
PO 00000
Frm 00026
Fmt 4701
Sfmt 4702
based on the outcome of other
monitoring techniques such as seismic
or Electrical Resistance Tomography
(ERT).
For surface air monitoring, chambers
can be placed directly on the soil and
trapped gases are passed through an
infrared gas analyzer to determine CO2
content (GEO–SEQ, 2004). Changes in
CO2 concentration and air flow rates are
used to calculate a flux. Measurements
using chambers are typically conducted
along a grid, which has the benefit of
defining spatial and temporal variations
in CO2 flux that could be used for
pinpointing and quantifying any leaks.
Chamber measurements, however, are
labor-intensive and are not efficient for
sampling over large areas. For each of
these methods, baseline (pre-injection)
monitoring is very important in order to
establish conditions for future
comparison. There are natural sources
of CO2 that can have wide variability
and thus could mask leakage from a GS
operation.
Eddy covariance techniques have
been used for ecological applications to
measure carbon fluxes from vegetated
areas, and show promise for CO2
monitoring for GS operations (Miles et
al., 2005). The equipment is installed on
a tower and CO2 is measured with an
infrared gas analyzer (GEO–SEQ, 2004).
Wind velocity, relative humidity, and
temperature are also measured and the
information is integrated to calculate a
CO2 flux. The height of the tower
controls the aerial coverage, with higher
towers averaging over larger areas.
Because of the large coverage, the exact
location of a leak would be difficult to
pinpoint, and this method may be better
for detecting slow, diffuse leaks. Eddy
covariance also assumes a horizontal
and homogeneous land surface, which
may not hold true for all GS locations.
It does have the advantage of being
automated, greatly reducing the labor
involved.
Hyperspectral image analysis is a
form of remote sensing that has been
used, among other applications, for
mapping vegetation habitat boundaries
and for differentiating species types.
Scanners collect images of a given
feature using a number of relatively
small wavelength bands, including the
visible and infrared portions of the
spectrum. Because different elements
have different spectral signatures, a
hyperspectral image can convey
information about composition. The
potential utility for CO2 monitoring
would be the ability to map the
response of vegetation to elevated soil
CO2 concentrations (Pickles and Cover,
2005).
E:\FR\FM\25JYP2.SGM
25JYP2
Federal Register / Vol. 73, No. 144 / Friday, July 25, 2008 / Proposed Rules
jlentini on PROD1PC65 with PROPOSALS2
LIDAR (light detection and ranging) is
a remote sensing method that is used
extensively in atmospheric science, and
is currently under investigation as an
option for CO2 detection to monitor GS
sites (Benson and Myer, 2002). Similar
in principle to RADAR, LIDAR uses
light instead of radio waves, permitting
resolution of very small features, such
as aerosols. Light is pulsed from a laser
and various constituents in the
atmosphere reflect back some of the
light. A number of properties of the
backscattered light allow one to infer
the atmospheric composition, including
concentrations of CO2. Currently,
differential absorption LIDAR (DIAL) is
being studied by researchers at Montana
State University for detecting CO2 leaks
in pipelines.
EPA proposes that owners and
operators report semi-annually on the
characteristics of injection fluids,
injection pressure, flow rate,
temperature, volume and annular
pressure, and on the results of MITs,
ground water monitoring, and any
required atmospheric/soil gas
monitoring.
EPA seeks comment on the
appropriate amount and types of
monitoring that should be conducted at
a GS site. Specifically, EPA seeks
comment regarding the usefulness of
indirect geophysical monitoring and
surface air and soil gas monitoring. In
addition, EPA seeks comment regarding
the use of a Director-approved
monitoring plan for GS sites.
7. Proposed Recordkeeping and
Reporting Requirements
Submissions Required for
Consideration of Permit Applications:
Today’s proposal would require that
owners and operators submit relevant
site information to the permitting
authority for consideration of permit
applications. This information includes
maps of the injection wells, the AoR as
determined through computational
modeling, all artificial penetrations
within the AoR, maps of the general
vertical and lateral limits of USDWs,
maps of the geologic cross sections of
the local area, the proposed operating
data and injection procedures, proposed
formation testing program, and
stimulation program, well schematics
and construction procedures, and
contingency plans for shut-ins or well
failures. EPA is also proposing that
permit applicants submit a
demonstration of financial
responsibility to plug the well, to
provide for post-injection site care, and
site closure.
EPA is proposing today that permit
applications for GS sites include several
VerDate Aug<31>2005
17:19 Jul 24, 2008
Jkt 214001
plans not currently required under
existing UIC regulations. These plans
include a monitoring and testing plan,
an AoR and corrective action plan, and
a post-injection site care and site closure
plan. The requirement for additional
plans is intended to provide the Director
the opportunity to assess proposed
project operating procedures, and
addresses GS requirements that are seen
to be site-specific (e.g., what monitoring
techniques will be used). In addition,
these plans are intended to establish an
ongoing dialogue between the operator
and the permitting authority which is
more substantial than that required for
other classes of injection wells. EPA
seeks comment on the merits of
requiring plans for monitoring, AoR,
and post-injection site care as part of a
permit application.
Operational Recordkeeping and
Reporting Requirements: Under current
UIC requirements, operators must report
on a regular basis to the permitting
authority, the physical and chemical
characteristics of the injected fluids, as
well as other operational data. For Class
I industrial and Class I hazardous waste
wells and Class III wells, operators must
submit this information on a quarterly
basis. For Class II wells, operators must
submit this information on an annual
basis. Today’s proposal would require
that owners or operators of Class VI
wells report semi-annually to the
permitting authority, on the physical
and chemical characteristics of injection
fluids, injection pressure, flow rate,
temperature, volume and annular
pressure, annulus fluid volume added,
and the results of MITs, plume tracking,
and atmospheric/soil gas monitoring.
Additionally, owners and operators will
be required to submit the results of AoR
modeling revisions; any updates to the
information on the type, number, and
location of all wells within the site AoR;
and information on additional
corrective action performed or planned
based on AoR reevaluations. EPA
considers a less frequent reporting
requirement for Class VI wells
compared to Class I wells appropriate
considering the ongoing dialogue for
Class VI wells established by multiple
plans as discussed above.
Under today’s proposal, owners and
operators would also be required to
maintain recordkeeping and reporting
information for the duration of the
project, as well as three years after site
closure (following the post-injection site
care period); and to keep their most
recent plugging and abandonment
report for one year following site
closure.
Reporting Associated with Well
Plugging, Post-injection Site Care, and
PO 00000
Frm 00027
Fmt 4701
Sfmt 4702
43517
Site Closure: EPA proposes that owners
or operators notify the Director at least
60 days prior, or at a Directordetermined time, of their intent to plug
the well and of any updates to the postinjection site care and site closure plan.
After the well is plugged, owners and
operators would submit a well plugging
report stating that the well was plugged
in accordance with the approved postinjection site care and site closure plan
or specify the differences between the
plan and the actual well plugging.
During the post-injection site care
(monitoring) period, owners or
operators would report periodically on
the results of monitoring. At the end of
the post-injection site care period,
owners or operators would submit a site
closure report, along with a nonendangerment demonstration showing
that conditions within the subsurface
indicate that no additional monitoring is
necessary to assure that there is no
endangerment to USDWs associated
with the injection.
EPA seeks comment on the frequency
of all proposed reporting requirements.
Electronic Reporting and
Recordkeeping: Under today’s proposal,
EPA would require owners or operators
to report data specified in section
146.91 in an electronic format
acceptable to the Director for site,
facility, and monitoring information. At
the discretion of the Director, formats
other than electronic may be accepted
after a determination has been made
that the entity does not have the
capability to use the required format.
Long-term retention of records in an
electronic format may also be required
at the Director’s discretion. If records
are stored in an electronic format,
information should be maintained
digitally in multiple locations (i.e.,
backed-up) in accordance with best
practices for electronic data.
EPA has previously required
electronic reporting of monitoring data
in the program implemented under the
Unregulated Contaminant Monitoring
Rule (64 FR 50611, September 17, 1999,
40 CFR 141.35(e)). EPA believes that the
permit applicants will have the
resources to provide electronic data to
the permit authority and that electronic
reporting will reduce future burden
related to recordkeeping. In addition,
electronic data submissions will
facilitate the application review process
and make it easier to track progress of
GS projects. EPA is committed to
providing resources to States to develop
the capability to exchange data
electronically. Several States have
received grants to develop electronic
data exchange capability for their
current UIC programs.
E:\FR\FM\25JYP2.SGM
25JYP2
43518
Federal Register / Vol. 73, No. 144 / Friday, July 25, 2008 / Proposed Rules
jlentini on PROD1PC65 with PROPOSALS2
EPA seeks comment on the
requirement for electronic reporting in
today’s proposed rule. In addition to the
above recordkeeping and reporting
requirements, EPA considered a
requirement for owners or operators of
GS sites to provide an annual report
during the lifetime of the project,
including the post-injection period,
regarding the GS operation. This report
would describe the status of the
operation, any new data about the site
including operational and monitoring
data, new GS operations, or other
activities that may affect the plume
movement, any non-compliance, and
knowledge gained on GS technology
that could contribute to the state of the
science on GS. This requirement would
address the unique and large-scale
nature of CO2 GS operations, provide
the public with information regarding
the operation, and facilitate information
transfer about GS technology. Although
EPA has not included a requirement for
this report in today’s proposal, EPA
seeks comment regarding the necessity
for such an annual report.
8. Proposed Well Plugging, PostInjection Site Care, and Site Closure
Requirements
Today’s proposal outlines well
plugging and post injection site care
requirements for CO2 injection sites
after injection activities end. If finalized,
these new requirements at 40 CFR
146.92–146.93 would ensure that
owners or operators plug wells and
manage sites in a manner so that wells
do not serve as a conduit for escape of
stored CO2 through unexpected
migration from the injection site after
injection ends, preventing
endangerment of USDWs. EPA is
proposing to give owners or operators
flexibility in meeting the well plugging
requirements by allowing the owner or
operator to choose from available
materials and tests to carry out the
proposed requirements. EPA is not
specifying the types of materials or tests
that must be used during well plugging
because there are a variety of methods
that are appropriate and new materials
and tests may become available in the
future. EPA is also proposing that a
combination of a fixed timeframe and
performance standard be used to
determine the duration of the postinjection site care period.
Steps in Injection Well Plugging: EPA
is proposing that owners or operators
develop a well plugging plan, and
conduct several activities associated
with the plugging of GS wells. Injection
well plugging must comply with
requirements of 40 CFR 144.12(a). The
plan includes: (1) Providing notice of
VerDate Aug<31>2005
17:19 Jul 24, 2008
Jkt 214001
intent to plug a well at least 60 days
prior to well plugging, (2) flushing each
well to be plugged with a buffer fluid,
(3) testing the mechanical integrity of
each well, (4) plugging each well in a
manner that will prevent the movement
of fluid that may endanger USDWs, and
(5) submitting a plugging report within
60 days after plugging the well or at the
time of the next semi-annual report
(whichever is less).
Notice of intent to plug: The notice of
intent to plug provides a 60-day
advance notice to the Director that the
owner or operator intends to close the
well. If circumstances warrant a shorter
time period for giving notice of intent to
plug, the Director may approve a shorter
notice period.
Well Flushing: Flushing removes
fluids remaining in the long string
casing that could react with the well
components over time. Fluids used for
flushing may vary, but must provide
sufficient buffering ability to avoid the
possibility of reactions due to residual
CO2 or other contaminants in the fluid.
Mechanical Integrity Testing:
Mechanical integrity testing allows
owners or operators to ensure that the
long string casing and cement that are
left in the ground after well plugging
and site closure maintain integrity over
time. For GS wells, there are a number
of methods that can be used to test
mechanical integrity, including pressure
tests with liquid or gas, radioactive
tracer surveys, and noise, temperature,
pipe evaluation, or cement bond logs.
Well Plugging: The Agency is
proposing that owners or operators plug
wells in a manner that does not
endanger USDWs. This may be
accomplished in a number of ways
using a number of different types of
materials. In the case of GS wells, the
plugging materials must be compatible
with the fluids with which the materials
may be expected to come into contact
and plugged to prevent the movement of
fluids either into or between USDWs.
Plugging Report: The owner or
operator would be required to submit a
report which includes information on
the implementation of the plugging
plan, including the date the well was
plugged, the activities conducted to
prepare the well for plugging, the
materials used for plugging, and the
location of the well. The owner or
operator may either submit the plugging
report as a separate report within 60
days after the plugging activity, or
update the semi-annual report required
at 40 CFR 146.92 of this proposed rule
to include plugging information and
submit the updated report within 60
days after the plugging activity. EPA is
proposing that the owner or operator
PO 00000
Frm 00028
Fmt 4701
Sfmt 4702
must certify that the plugging report is
accurate. If the well was plugged by an
entity other than the owner or operator,
that entity must also certify that the
plugging report is accurate.
In addition, EPA is proposing the
owners or operators prepare for eventual
site closure in advance of the time when
well plugging activities take place to
ensure that a plan is in place in the
event of an unexpected need to plug a
well or close the site. Today’s proposal
would require owners or operators to
submit a well plugging plan at the same
time the permit application is submitted
and to have this plan approved by the
Director. As part of the well plugging
plan, the owner/operator would be
required to conduct certain activities
related to well plugging, and provide
the information related to well plugging,
including the following: (1) Testing
methods used to determine that the
components of the well will maintain
mechanical integrity over time; (2) type
and number of plugs to be used; (3)
placement of each plug, including the
elevation of the top and bottom of each
plug; (4) type, grade, and quantity of
material to be used in plugging; and (5)
method used to put plugs in place. In
addition, if for any reason the well
plugging activities stated in the plan no
longer reflect what is likely to occur
upon plugging of the well, the owner or
operator would be required to make
changes to the plan and submit to the
Director for approval before notifying
the Director of intent to plug the well.
Post-Injection Site Care: Today’s
proposal would also require that owners
or operators (1) develop a post-injection
site care and closure plan, (2) monitor
the site following cessation of the
injection activity, and (3) plug all
monitoring wells in a manner which
prevents movement of injection or
formation fluids that could endanger a
USDW.
The post-injection site care and site
closure plan would be required to be
submitted as part of the permit
application and approved by the
Director. It describes several activities
associated with the post-injection site
care and site closure of GS sites.
Activities that would be required in the
post-injection site care and site closure
plan include: (1) Record of the pressure
differential between pre-injection and
anticipated post-injection pressures in
the injection zone; (2) predicted
position of the plume and associated
pressure front at the time the site is
closed; (3) description of post-injection
monitoring location(s), methods, and
proposed frequency of monitoring; and
(4) schedule for submitting postinjection site care and monitoring
E:\FR\FM\25JYP2.SGM
25JYP2
jlentini on PROD1PC65 with PROPOSALS2
Federal Register / Vol. 73, No. 144 / Friday, July 25, 2008 / Proposed Rules
results to the Director. In addition, if for
any reason the post-injection site care
and site closure activities stated in the
plan no longer reflect what is likely to
occur upon closing the site, the owner
or operator would be required to make
changes to the plan and submit the plan
to the Director for approval within 30
days of such change. Examples of
factors which may require a modified
post-injection site care and site closure
plan would include changes in injection
procedures or volumes or plume
movement in an unanticipated
direction.
Upon permanent cessation of
injection, the owner or operator would
either submit an amended post-injection
site care and site closure or demonstrate
to the Director through monitoring and
modeling results that no amendment to
the plan is needed. Owners or operators
would also be required to use any other
information deemed necessary by the
Director to make this demonstration.
The post-injection site care and site
closure plan would include a
description of the monitoring that will
occur after injection ceases. The owner
or operator would monitor the site to
show the position of the CO2 plume and
pressure front and demonstrate that
USDWs are not being endangered. A
record of the pressures in the injection
formation and surrounding areas as well
as the pressure decay rate can help the
owner or operator determine that the
injected fluid does not pose
endangerment to USDWs.
Post-Injection Site Care Timeframe:
Current UIC regulations do not limit the
duration of the post-injection site care
period; however, many environmental
programs use a 30-year period as a
frame of reference. In many cases, a 30year timeframe has been sufficient to
determine that remaining pressure in
plugged wells containing liquids will
not lift fluid to overlying strata (53 FR
28143, July 26, 1988). However,
characterizing post-injection site care
timeframes for GS is more challenging.
Given the buoyancy of CO2, viscosity,
and large injection volumes associated
with GS, the area over which CO2 will
spread in the subsurface is likely to be
larger than for existing well classes and
therefore, the area over which there is
potential for endangerment of USDWs is
likely to be greater. The presence of
physical and geochemical trapping
mechanisms is likely to reduce the
mobility of CO2 over time and research
also suggests that pressure within the
storage system will drop significantly
when injection ceases, thus decreasing
the risks of induced seismic activity,
and faulting and fracturing and making
storage more secure over longer
VerDate Aug<31>2005
17:19 Jul 24, 2008
Jkt 214001
timeframes. However, the timeframe
over which this happens is difficult to
define because it is based on sitespecific considerations.
EPA considered three distinct
alternatives for determining postinjection site care and monitoring
timeframes (1) establishing a fixed
timeframe for post-injection site care; (2)
allowing a performance-based approach
to the post-injection site care time
period; and (3) a combination of fixed
timeframe and performance standard.
EPA considered the approach of
specifying a fixed duration of time after
which the post-injection site care ends.
As part of this approach, EPA evaluated
four different timeframes: 10, 30, 50,
and 100 years.
EPA reviewed studies, industry
reports and environmental programs to
determine appropriate post-injection
site care timeframes. Studies reviewed
included those done by: Flett M.,
Gurton R., and G. Weir. 2007; Obi E.I.,
and M.J. Blunt. 2006; and Doughty, C.
2007 (see USEPA, 2008d). A review of
these studies suggests that the actual
time for CO2 plume stabilization (i.e.,
slowing down or cessation of plume
movement, and/or immobilization of
most of the CO2 mass through various
trapping mechanisms) will be very site
specific, being influenced by geologic
factors such as formation permeability,
geochemistry, and the degree of
capillary trapping. In addition,
predicted results will depend on several
modeling considerations and
assumptions, and thus will be to some
degree model specific. Based on a
review of the three studies used for this
preliminary analysis, modeling results
indicate that the CO2 plume stabilized
on the time frame of 10–100 years after
the cessation of injection (USEPA,
2008d).
EPA also reviewed an IOGCC Task
Force report which suggests a 10-year
time frame for the post-injection site
care period which commences when
injection ceases until the release of the
operator from liability. Alternatively,
some environmental programs—
including the UIC Program—use a 30year period as a frame of reference.
While 10 years may be within the
timeframe suggested in some studies,
there are circumstances under which
the potential risks of endangering
USDWs will not decline within that
timeframe given that stabilization may
continue for several decades (USEPA,
2008d). Also, a 30-year timeframe can
be appropriate for the types of fluids
typically injected under the UIC
Program (i.e., fluids that are liquids at
standard pressure and temperature).
Longer timeframes may be more
PO 00000
Frm 00029
Fmt 4701
Sfmt 4702
43519
appropriate for GS wells, because the
fluid is likely to be stored in a
supercritical phase, the plume for a fullscale GS project will likely be large, and
substantial pressure increases will likely
be observed during operation. However,
once injection ceases, pressure will
likely begin to dissipate and 30 years
may be enough time for the plume and
pressure front to stabilize.
Another option considered by the
Agency is to apply a performance
standard, i.e., that post-injection site
care will continue until the plume is
stabilized and cannot endanger USDWs.
Current UIC regulations at 40 CFR
146.71 utilize a performance type
approach by requiring that the owner or
operator of a Class I hazardous well
observe and record pressure decay for a
time specified by the Director. A similar
performance standard could be
considered for GS wells. Pressure decay
data help to define the appropriate
period of regulatory concern, because
the likelihood that the injected fluid
will migrate into USDWs above or
adjacent to the injection zone decreases
as injection-induced pressures in the
formation decay. The post-injection site
care period ends when the models
predicting CO2 movement are consistent
with monitoring results demonstrating
that there is no potential threat of
endangerment to USDWs.
Combination of Fixed Timeframe and
Performance Standard: EPA is
proposing using a combination of fixed
timeframe and a performance standard
as described above. EPA is tentatively
proposing a post-injection site care
(monitoring) period of 50 years with
Director’s discretion to change that
period to lengthen or shorten the 50year period if appropriate. The default
timeframe could be lengthened by the
Director if potential for endangerment to
USDWs still exists after 50 years or if
modeling and monitoring results
demonstrate that the plume and
pressure front have not stabilized in this
period. Conversely, the Director could
reduce the 50-year time period if data
on pressure, fluid movement,
mineralization, and/or dissolution
reactions support a determination that
movement of the plume and pressure
front have ceased and the injectate does
not pose a risk to USDWs. EPA requests
comment on the proposed use of a
tentative 50-year fixed timeframe that
could be modified at the Director’s
discretion based on monitoring and
modeling data.
To ensure that the post-injection site
care monitoring timeframe is long
enough to determine that there is no
threat of endangerment to USDWs from
injection activities, EPA is proposing a
E:\FR\FM\25JYP2.SGM
25JYP2
jlentini on PROD1PC65 with PROPOSALS2
43520
Federal Register / Vol. 73, No. 144 / Friday, July 25, 2008 / Proposed Rules
default post-injection site care period of
50 years. During this 50-year period, the
owner or operator would be required to
submit periodic reports providing
monitoring results and updated
modeling results as appropriate until a
demonstration of non-endangerment to
USDWs can be made. Once the owners
or operators provide documentation that
demonstrates that the models predicting
CO2 movement are consistent with
monitoring results and that there are no
longer risks of endangerment to USDWs,
they could request that the Director
authorize site closure.
EPA is also proposing to allow the
Director to shorten or lengthen the 50year timeframe based on performance of
the site. The Director may require that
the post-injection site care period
extend beyond the 50-year time frame if
a demonstration of non-endangerment
to USDWs cannot be made. Alternately,
if the owner or operator can
demonstrate that the remaining pressure
front and plume will not endanger
USDWs, then owners or operators may
request a decreased post-injection site
care period.
While EPA considered the 10-year,
30-year, and 100-year timeframes, the
Agency is proposing a 50-year
timeframe because there are
circumstances under which the
potential risks of endangerment to
USDWs will not decline within 10
years. Furthermore, the time needed to
allow pressures to equalize within the
subsurface because of the higher levels
of mobility of injected CO2 may exceed
30 years, and EPA wishes to emphasize
that site closure cannot occur until
monitoring and modeling data establish
to the Director’s satisfaction that
potential risks of endangerment to
USDWs have ceased. EPA is not
proposing 100 years as the default
because EPA believes that in general
plume stabilization will occur before
this time. However post-injection site
care requirements could be extended for
100 years (or longer) if monitoring and
modeling information suggest that the
plume may still endanger USDWs
throughout this period. EPA considers
that a 50-year timeframe represents a
reasonable mid-point for the default
time frame, which may be modified
with the approval of the Director based
on a demonstration (by the owner or
operator) using monitoring and
modeling, that the injected CO2 will not
endanger USDWs.
Site Closure: The Director would
determine that the post-injection site
care period has ended and authorize site
closure when the following have
occurred:
VerDate Aug<31>2005
17:19 Jul 24, 2008
Jkt 214001
• The Director receives all
information required of the postinjection site care and site closure plan;
• The data demonstrate to the
satisfaction of the Director that there is
no threat of endangerment to USDWs.
Once the Director approves site
closure, the owner or operator is
required to submit a site closure report
within 90 days. The report would
provide documentation of injection and
monitoring well plugging; copies of
notifications to State and local
authorities that may have authority over
future drilling activities in the region;
and records reflecting the nature,
composition, and volume of the injected
carbon dioxide stream. The purpose of
this report would be to provide
information to potential users and
authorities of the land surface and
subsurface pore space regarding the
operation. In addition, the owner or
operator of the injection site must
record a notation on the deed to the
facility property or any other document
that is normally examined during title
search that will, in perpetuity, provide
notification to any potential purchaser
of the property information that the land
has been used to sequester CO2.
EPA is requesting comments on the
proposed requirements for well
plugging, post-injection site care, and
site closure, including the proposed
requirements for the post-injection time
period. In addition, EPA seeks comment
on whether the Director should be
allowed to shorten the timeframe based
on performance information, and
whether EPA should require a shorter or
longer post-injection period if data
suggests the time frame should be
adjusted.
9. Proposed Financial Responsibility
and Long-Term Care Requirements
Today’s proposal would require that
owners or operators demonstrate and
maintain financial responsibility, and
have the resources for activities related
to closing and remediating GS sites.
EPA is proposing that the rule only
specify a general duty to obtain
financial responsibility acceptable to the
Director, and will provide guidance to
be developed at a later date that
describes recommended types of
financial mechanisms that owners or
operators can use to meet this
requirement.
Although the SDWA does not have
explicit provisions for financial
responsibility, as included in RCRA,
EPA believes that the general authorities
provided under the SDWA authority to
prevent endangerment of USDWs
include the authority to set standards
for financial responsibility to prevent
PO 00000
Frm 00030
Fmt 4701
Sfmt 4702
endangerment of USDWs from improper
plugging, remediation, and management
of wells after site closure. The SDWA
authority does not extend to financial
responsibility for activities unrelated to
protection of USDWs (e.g., coverage of
risks to air, ecosystems, or public health
unrelated to USDW endangerment). It
also does not cover transfer of owner or
operator financial responsibility to other
entities, or creation of a third party
financial mechanism where EPA is the
trustee.
Today’s proposal would require
owners or operators to demonstrate
financial responsibility for corrective
action described in 40 CFR 146.84 of
this notice, including injection well
plugging, post-injection site care and
site closure, and emergency and
remedial response using a financial
mechanism acceptable to the Director.
The Director would determine whether
the mechanism the owner or operator
submits is adequate to pay for well
plugging, post-injection site care, site
closure, and remediation that may be
needed to prevent endangerment of
underground sources of drinking water.
Owners or operators would no longer
need to demonstrate that they have
financial assurance after the postinjection site care period has ended.
This generally occurs when the Director
approves the completed post-injection
site care and site closure plan and then
determines that the injected fluid no
longer poses a threat of endangerment to
USDWs (e.g., the fluid no longer
exhibits a propensity to move or migrate
out of the injection zone to any point
where it could endanger a USDW).
The Agency is proposing that the
owner or operator periodically update
the cost estimate for well plugging, postinjection site care and site closure, and
remediation to account for any
amendments to the area of review and
corrective action plan (40 CFR 146.84),
the plugging and abandonment plan,
and the post-injection site care and site
closure plan (40 CFR 146.93). EPA is
also proposing that the owner or
operator submit an adjusted cost
estimate to the Director if the original
demonstration is no longer adequate to
cover the cost of the injection well
plugging, post-injection site care, and
site closure. As proposed, the Director
would set the frequency for owner or
operator re-demonstration of financial
responsibility and resources. It may be
appropriate to re-demonstrate financial
responsibility on a periodic basis. Such
re-demonstration would take into
account any amendments to the area of
review and corrective action plan (40
CFR 146.84) and adjustments for
inflation. It may also be necessary to
E:\FR\FM\25JYP2.SGM
25JYP2
jlentini on PROD1PC65 with PROPOSALS2
Federal Register / Vol. 73, No. 144 / Friday, July 25, 2008 / Proposed Rules
adjust cost estimates if the Director has
reason to believe that the original
demonstration is no longer adequate to
cover the cost of the well plugging and
post-injection site care and site closure.
EPA is also proposing that the owner or
operator notify the Director of adverse
financial conditions, including but not
limited to bankruptcy proceedings,
which name the owner or operator as
debtor, within 10 business days after the
commencement of the proceeding.
EPA plans to develop guidance that is
similar to current UIC financial
responsibility guidance for Class II
owners or operators. Currently, EPA
guidance (USEPA, 1990) describes
several options owners or operators can
use to meet the requirements to
demonstrate financial responsibility for
well plugging. Financial assurance is
typically demonstrated through two
broad categories of financial
instruments: (1) Third party
instruments, including surety bond,
financial guarantee bond or performance
bond, letters of credit (the above third
party instruments must also establish a
trust fund), and an irrevocable trust
fund; (2) self-insurance instruments,
including the corporate financial test
and the corporate guarantee.
Supplemental Information: In recent
years, the EPA’s Office of the Inspector
General (OIG) and the U.S. Government
Accountability Office (GAO) have raised
issues regarding the use of financial
responsibility instruments applicable to
site closure for several EPA programs.
Information regarding these reviews and
EPA’s responses are available at https://
www.gao.gov/new.items/d03761.pdf;
https://www.epa.gov/oig/reports/2001/
finalreport330.pdf; https://www.epa.gov/
oig/reports/2005/20050926-2005-P00026.pdf. The OIG and GAO
recommendations suggest that EPA may
need to update or provide additional
guidance in the following areas: Cost
estimation methodology; pay-in period
for trust funds; the type of insurance
provider that may be used; requirements
for acceptable surety bonds and/or their
providers; and the way by which
corporations demonstrate financial
strength/credit worthiness.
In response to evaluations of financial
responsibility instruments, EPA’s RCRA
program has issued a comprehensive
financial responsibility strategy to
improve the implementation of the
financial responsibility requirements, as
well as assess whether regulatory
changes to certain mechanisms and
financial responsibility requirements are
warranted. EPA has begun
implementing this strategy by providing
additional guidance to support
implementation and oversight of RCRA
VerDate Aug<31>2005
17:19 Jul 24, 2008
Jkt 214001
financial responsibility programs,
providing training to EPA Regions and
states, and developing tools (e.g., costestimating software) to assist staff in
performing reviews of complex cost
information.
In addition, EPA’s RCRA program has
enlisted the experience and expertise of
the Environmental Finance Advisory
Board (EFAB) to evaluate specific issues
related to financial responsibility. EFAB
has completed assessments of the
corporate financial test and captive
insurance, and is currently in the
process of undertaking analyses of thirdparty insurance and uncertainties
associated with estimating costs that
must be covered by the financial
assurance requirements. In January
2006, the EFAB summarized its findings
and recommendations on the corporate
financial test, as a means of
demonstrating financial assurance.
EFAB’s recommendations in this area
were not based on specific failures of
the test, but on their ‘‘knowledge of
prudent financial practices and the
availability of existing expertise in the
financial services sector.’’ In March
2007, the EFAB summarized its
preliminary findings and conclusions
on its review of insurance, specifically
captive insurance, as a means of
demonstrating financial assurance. The
Agency plans to continue to track these
efforts by the EFAB, because they may
provide key directions for future GS
requirements with respect to financial
responsibility.
EPA is considering updating
mechanisms for demonstrating financial
responsibility for GS projects. EPA is
evaluating revising guidance to address
the current financial responsibility
requirements on the following topics:
Cost estimation for plugging, pay-in
period for trust funds, insurance
providers, surety bonds and/or their
providers, and corporate demonstration
of financial strength/credit worthiness.
Cost estimation for plugging: One of
the most critical aspects to ensuring that
owners or operators have the resources
to pay for injection well plugging is cost
estimation. Sound cost estimation
requirements ensure that sufficient
funds are set aside in the financial
assurance instrument to properly
undertake covered activities (e.g.,
plugging and post-injection site care) at
any time during the operating life of the
facility and during the post-injection
site care period.
EPA is assessing whether the cost
estimate underpinning financial
assurance should be based on the cost
of retaining an independent, third party
to conduct covered activities, such as
well plugging. EPA also is considering
PO 00000
Frm 00031
Fmt 4701
Sfmt 4702
43521
provisions for annual inflationary
adjustments and is weighing the
inclusion of a third-party certification
requirement, or provisions for a thirdparty audit, in cases where the owner or
operator self-prepares its cost estimate.
Revision in this area will reduce the
possibility of undervalued cost
estimates. EPA will also consider
EFAB’s findings on this issue when they
become available.
Pay-in period for trust funds: Current
UIC guidance describes trust funds as a
form of financial assurance. The owner
or operator may deposit funds into the
trust fund in phases; that is, either over
the term of the initial permit or over the
remaining operating life of the injection
well, as estimated in the well plugging
plan, whichever period is shorter.
Because of the possibility that the owner
or operator may face financial distress
prior to the trust being fully funded,
EPA is considering a guidance approach
that would recommend adopting a pay
in period of three years for GS projects,
consistent with other similar programs
in the Agency.
Insurance providers: Current UIC
regulations for Class I hazardous waste
injection allow for the use of insurance
for purposes of demonstrating financial
responsibility. However, insurance was
not included as part of the guidance
provided for Class II injection because
this insurance mechanism was and still
is, rarely used for the purpose of
demonstrating financial assurance for
injection wells. EPA is assessing
whether to provide guidance on the use
of insurance providers and, if so,
whether to update eligibility
requirements for insurers for GS wells
consistent with other current Federal
agency practices.
In addition, EPA is evaluating
recommendations from the Office of the
Inspector General (OIG), the
Government Accountability Office
(GAO), and EFAB on the use of
insurance as a financial responsibility
mechanism. EPA will also consider any
additional recommendations EFAB may
have on the use of third party insurance.
Surety bonds and/or their providers:
Current UIC guidance describes several
options for using surety bonds for
purposes of demonstrating financial
responsibility. The regulations at 40
CFR 144 for Class I wells stipulate that
eligible surety bond providers must be
listed by the U.S. Department of
Treasury on its Circular 570. Because
surety bonds are a specialized line of
insurance, EPA is assessing whether
additional eligibility requirements for
sureties, similar to those under
consideration for insurers, are necessary
for GS wells.
E:\FR\FM\25JYP2.SGM
25JYP2
jlentini on PROD1PC65 with PROPOSALS2
43522
Federal Register / Vol. 73, No. 144 / Friday, July 25, 2008 / Proposed Rules
Corporate demonstration of financial
strength/credit worthiness: UIC program
guidance also describes options for
owners or operators to self-assure their
obligations to plug the well. To be
approved by the Director, the owner or
operator would likely need to selfassure in the form of either a corporate
financial test filed by the owner or
operator of the injection well, or a
corporate guarantee (including a
corporate financial test) filed by the
parent corporation of the owner or
operator of the injection well. A
corporate guarantee may also be
provided by a ‘‘sibling’’ corporation
(that is a company that shares the same
higher-tier parent) or a company with
whom they have a substantial business
relationship. The guidance explains that
demonstrating self-assurance typically
includes either use of a bond rating or
a series of financial ratios. Both the UIC
financial responsibility provisions for
Class I hazardous waste injection and
the RCRA subtitle C provisions allow
the use of self-assurance through a
financial test or corporate guarantee.
EPA is assessing whether a financial
ratings threshold for all companies
using a self-guarantee, similar to those
used by other Federal agencies, is
appropriate. The Agency also is
considering what constitutes an
appropriate financial rating threshold,
and whether a financial rating greater
than BBB or Baa (i.e., the current rating
threshold established under the UIC
regulations) is appropriate for GS wells.
In addition, EPA is considering
whether adjustments should be made to
the absolute net worth threshold of $10
million currently required under the
UIC regulations. Specifically, EPA is
assessing the net worth requirements of
other Federal agencies and EPA
programs to determine whether to make
adjustments. For example, the Minerals
Management Service within the
Department of the Interior, requires a
net worth threshold at least 10 times the
amount of the obligations being assured
(see 30 CFR 253.25). Additionally, the
Agency is in the process of evaluating
potential changes to the RCRA subtitle
C financial test requirements, including
an option recommended by EFAB to
require a financial ratings threshold for
all companies using a financial test to
self-assure their environmental
obligations. EPA will consider the
outcome of that process for possible
application to GS wells guidance.
EPA is requesting comments on
whether financial responsibility
mechanisms to be recommended in EPA
guidance should be adjusted in the
manner described, whether additional
instruments should be included, and
VerDate Aug<31>2005
17:19 Jul 24, 2008
Jkt 214001
whether other adjustments to the
financial responsibility mechanisms
should be considered, all subject to
EPA’s authority under the SDWA. The
Agency is also requesting comment on
allowing separate financial
demonstrations to be submitted for the
plugging of the injection well and for
the post-injection site care
requirements. Since post-injection site
care has the potential to extend many
years into the future, subsequent to the
time a permit is issued, the Agency
believes that it may be advantageous to
require the approval of the well
plugging financial demonstration at
permit issuance and the post-injection
site care financial demonstration at a
later time (e.g., within 180 days of
notifying the Director that the well will
be plugged and abandoned). Trying to
determine the cost for post-injection site
care, possibly 30 to 50 years in the
future, could be difficult, as could the
approval of a financial demonstration.
Considerations for Long-term Care:
While EPA has authority to require
financial responsibility for well
plugging and post-injection site care
(e.g., monitoring, remediation) to ensure
the protection of USDWs, the SDWA
does not provide authority under
financial responsibility or other
provisions for coverage of risks to air,
ecosystems, or public health. Thus,
while obligation for financial
responsibility ends for owners or
operators after the post-injection site
care period has ended and the Director
has authorized site closure, owners or
operators may still be held responsible
after the post-injection site care period
has ended (e.g., for unanticipated
migration that endangers a USDW). In
addition, the SDWA does not provide
EPA with the authority to transfer
liability from one entity to another.
Trust responsibility for potential
impacts to USDWs remains with the
owner or operator indefinitely under
current SDWA provisions.
Responsibility for long-term care is
often considered an important topic
related to GS because of cost
implications of indefinite responsibility
for GS sites. Because of the focus of the
SDWA on endangerment to USDWs and
the absence of provisions to allow
transfer of liability, stakeholders have
expressed interest in alternative
instruments for addressing financial
responsibility after the post injection
care period has ended. As a result of the
interest in alternative instruments,
including indemnity programs, EPA has
compiled information on a variety of
alternative instruments not currently
available under the SDWA. This
discussion is in Approaches to GS Site
PO 00000
Frm 00032
Fmt 4701
Sfmt 4702
Stewardship After Site Closure in the
docket for this proposed rule. EPA has
not determined whether any of the
models are appropriate for GS wells,
however, EPA is aware that these
models may contain important concepts
that may become the model for future
strategies for long-term care.
B. Adaptive Approach
To meet the potentially fast pace of
implementation of GS, EPA is using an
adaptive approach to regulating CO2
injection for GS. In 2007, EPA issued
UIC Program Guidance #83, which
allows limited-scale experimental GS
projects to proceed under the Class V
experimental technology well
classification. An adaptive approach
allows regulatory development to move
ahead in time to meet the future
demand for permits, while recognizing
the need to continue to gather data from
pilot projects and other research as it
becomes available.
EPA will continue to evaluate ongoing
research and demonstration projects,
review input received on this proposal,
and gather other relevant information,
as needed, to make refinements to the
rulemaking process. If appropriate, EPA
will publish notices to collect new data
before issuing a final rule on CO2
injection for GS. EPA plans to issue a
final rule in advance of full-scale
deployment of GS. EPA will track
implementation of the final GS rule to
determine whether these requirements
continue to meet SDWA objectives and,
if not, revise them as needed. If new
information gathered during
implementation suggests the
requirements need revisions, EPA will
initiate the appropriate procedure,
including public notice and comment.
IV. How Should UIC Program Directors
Involve the Public in Permitting
Decisions for GS Projects?
Public participation has been an
important part of the UIC Program since
its inception. Public participation has a
number of benefits, including (1)
providing citizens with access to
decision-making processes that may
affect them; (2) enabling the owner/
operator and the permit writer to
educate the community about the
project; (3) ensuring that the public
receives adequate information about the
proposed injection; (4) allowing the
permitting authority to become aware of
public viewpoints, preferences and
environmental justice concerns; and (5)
ensuring that public viewpoints,
preferences and concerns have been
considered by the decision-making
officials.
E:\FR\FM\25JYP2.SGM
25JYP2
jlentini on PROD1PC65 with PROPOSALS2
Federal Register / Vol. 73, No. 144 / Friday, July 25, 2008 / Proposed Rules
GS of CO2 is a new technology that is
unfamiliar to most people, and
maximizing the public’s understanding
of the technology can result in more
meaningful public input and
constructive participation as new GS
projects are proposed and developed.
Critical to the success of GS is early and
frequent involvement through education
and information exchange. Such
exchange can provide early insight into
how the local community and
surrounding communities perceive
potential environmental, economic or
health effects.
Owners or operators and permitting
authorities can maximize the public
participation process, thereby increasing
the likelihood of success, by integrating
social, economic, and cultural concerns
of the community into the permit
decision making process.
EPA examined existing requirements
for public participation across the
Agency’s environmental programs. EPA
is proposing to adopt the requirements
at 40 CFR Part 25 and the permit
procedures at 40 CFR Part 124 for longterm storage of CO2. Under today’s
proposal, the permitting authority
would be required to provide public
notice and opportunity for public input.
This includes providing public notice of
pending actions via newspaper
advertisements, postings, or mailings to
interested parties and providing a fact
sheet or statement of basis that describes
the planned injection operation and the
principal facts and issues considered in
preparing the draft permit. Under
today’s proposal, permitting authorities
would provide a 30-day comment
period during which public hearings
may be held. At the conclusion of the
comment period, the permitting
authority would be required to prepare
a responsiveness summary that becomes
part of the public record.
EPA recognizes that advances in
information technology and the
available avenues for communication
have changed the way that people
receive news and information and that
new means of engaging stakeholders are
now available. Roundtables,
constituency meetings, charrettes
(workshops designed to involve the
public in a planning or design process),
information gathering sessions, cable
TV, and the Internet are just a few tools
the Agency has come to rely upon over
the past decade to ensure more effective
stakeholder involvement and public
participation. These technologies
provide a host of opportunities to
educate the public about and involve
them in GS technology and pending
decisions.
VerDate Aug<31>2005
17:19 Jul 24, 2008
Jkt 214001
In addition, electronic information
technology has become widely available
to inform and involve the public. Web
pages, discussion boards, list serves,
and broadcast text messages via cell
phones are all available to keep the
public informed.
EPA encourages permit applicants
and permit writers to use the Internet
and other available tools to explain
potential GS projects; describe the
technology; and post information on the
latest developments including
schedules for hearings, briefings, and
other opportunities for involvement.
EPA requests comment on adopting
the existing requirements for public
participation at 40 CFR Part 25 and 40
CFR Part 124 and whether additional
requirements should be included to
reflect the availability of new tools for
disseminating and gathering
information. Such tools include cable
networks, the Internet, and other new
technology. EPA also requests comment
on ways to enhance the public
participation process, including
engaging communities in the site
characterization process as soon as
candidate locations are identified.
V. How Will States, Territories, and
Tribes Obtain UIC Program Primacy for
Class VI Wells?
As described in section II.C above,
EPA may approve primary enforcement
authority for States, Territories, and
Tribes that wish to implement the UIC
Program. To gain authority for Class VI
wells, States, Territories, and Tribes will
be required to show that their
regulations are at least as stringent as,
and may be more stringent than, the
proposed minimum Federal
requirements (e.g., inspection,
operation, monitoring, and
recordkeeping requirements that well
owners or operators must meet). Such
Primacy States, Territories, and Tribes
are authorized under section 1422 of the
SDWA.
Historically, EPA has approved State
and Territorial UIC Program primacy in
whole or in part as follows: (1) For all
five classes of wells under section 1422
of SDWA; (2) for Classes, I, III, IV, and
V under Section 1422 of SDWA; or for
(3) Class II wells only under section
1425 of SDWA. Several States with large
Class II inventories may have primacy
for a combination of wells, i.e.,
authority under section 1425 for their
Class II wells and 1422 authority for
other well classes.
EPA is aware that some States may
wish to obtain primacy for only Class VI
wells. Section 1422 does not explicitly
allow for approval of State UIC
programs for individual well classes,
PO 00000
Frm 00033
Fmt 4701
Sfmt 4702
43523
however there appears to be no express
prohibition.
There may be benefits to parsing out
primacy for Class VI wells, however
EPA has not made a decision on this.
Allowing States, Territories, and Tribes
to acquire primacy for only Class VI
wells may encourage them to assume
the responsibility of implementation
and provide for a more comprehensive
approach to managing CCS projects
(e.g., capture, transportation, and
geologic sequestration). EPA is seeking
comment on the merits and possible
disadvantages of allowing primacy
approval for Class VI wells independent
of other well classes.
VI. What Is the Proposed Duration of a
Class VI Injection Permit?
Existing UIC regulations allow
injection wells to be permitted
individually or as part of an area permit.
Because GS projects would likely use
multiple injection wells per project, the
Agency anticipates that most owners or
operators would seek area permits for
their injection wells.
Additionally, 40 CFR 144.36 sets forth
the permit duration for the current
classes of injection wells. Permits for
Class I and Class V wells are effective
for up to 10 years. Permits for Class II
and III wells may be issued for the
operating life of the facility; however
they are subject to a review by the
permitting authority at least once every
5 years.
Implementation of the AoR and
corrective action plan as described in
today’s proposal would involve periodic
re-evaluation of site data, status of
corrective action, monitoring results and
modification of operating parameters, as
needed. These periodic evaluations
would provide the same effect and
assurances obtained through the permit
renewal process without the associated
administrative burden. Additionally, the
frequent level of ongoing interaction
between the owner or operator and the
Director as required by the AoR and
corrective action plan is more
substantial than that required for other
classes of injection wells. The periodic
evaluations and revisions driven by the
various rule-required plans and the
underlying computational model should
provide abundant opportunities for
technical reassessment by operators and
regulators, and through permit
amendments and modifications.
Therefore, EPA proposes that Class VI
injection well permits would be issued
for the operating life of the GS project
including the post-injection site care
period. EPA seeks comment on the
merits of this approach.
E:\FR\FM\25JYP2.SGM
25JYP2
43524
Federal Register / Vol. 73, No. 144 / Friday, July 25, 2008 / Proposed Rules
VII. Cost Analysis
While today’s proposed rulemaking
proposes regulations for the protection
of USDWs, it does not require entities to
sequester CO2. Thus, the costs and
benefits associated with protection of
USDWs is the focus of this proposed
rule and the costs associated with the
mitigation of climate change are not
directly attributable to this proposed
rulemaking.
To calculate the costs and benefits of
compliance for today’s proposal, EPA
selected the existing UIC program Class
I industrial waste disposal well category
as the baseline for costs and benefits.
EPA used this baseline to determine the
incremental costs of today’s proposal.
The incremental costs of the proposed
rule include elements such as geologic
characterization, well construction and
operation, monitoring equipment and
procedures, well plugging, and postinjection site care (monitoring). The
benefits of this proposed rulemaking
could include the decreased risk of
endangerment to USDWs and the
decreased potential for health-related
risks associated with contaminated
USDWs.
The scope of the Cost Analysis
includes the full range of an injection
project, from the end of the CO2
pipeline at the GS site, to the
underground injection and monitoring,
as it occurs during the time frame of the
analysis. The scope does not include
capturing or purifying the CO2, nor does
it include transporting the CO2 to the GS
site.
The 25-year timeframe of the Cost
Analysis is comparable to the
timeframes used in recent drinking
water-related economic analyses. Costs
attributed to the proposed rule are
inclusive of geologic sequestration
projects begun during the 25 years of the
analysis and all cost elements that occur
during the 25-year timeframe are
discounted to present year values. EPA
recognizes the need to revisit the Cost
Analysis prior to the promulgation of a
final rule as new data become available.
The number of GS projects projected
over the timeframe of the Cost Analysis
includes pilot projects and other
projects driven by regulations that are in
place today. Projections of GS projects
may need to be revisited in light of any
new climate change legislation prior to
promulgation of a final rule. However,
it is important to note that the proposed
rule does not require anyone to inject
CO2.
A. National Benefits and Costs of the
Proposed Rule 1
1. National Benefits Summary
This section summarizes the risk (and
benefit) tradeoffs between compliance
with existing requirements and the
preferred regulatory alternative (RA)
selected during the regulatory
development process. Evaluations in the
Cost Analysis include a nonquantitative analysis of the relative risks
of contamination to USDWs for the
regulatory alternatives under
consideration. The expected change in
risk based on promulgation of the
preferred RA and the potential
nonquantified benefits of compliance
with this RA are also discussed.
a. Relative Risk Framework—Qualitative
Analysis
Table VII–1 below presents the
estimated relative risks of the preferred
regulatory alternative selected for
compliance with the proposed rule
relative to the baseline. The term
‘‘baseline’’ in the exhibit refers to risks
as they exist under current UIC Program
regulations for Class I industrial wells.
The term ‘‘decrease’’ indicates the
change in risk relative to this baseline.
The Agency has used best professional
judgment to qualitatively estimate the
relative risk of each regulatory
alternative. This assessment was made
with contributions from a wide range of
injection well and hydrogeological
experts, ranging from scientists and well
owners or operators to administrators
and regulatory experts.
TABLE VII–1.—RELATIVE RISK OF REGULATORY COMPONENTS FOR PREFERRED PROPOSED REGULATORY ALTERNATIVE
VERSUS THE CURRENT REGULATIONS
Direction of change
in risk
(relative to baseline)
jlentini on PROD1PC65 with PROPOSALS2
Baseline
1. Geologic Characterization
Geologic system consisting of a receiving zone; trapping mechanism; and confining system to allow injection at
proposed rates and volumes.
Operators provide maps and cross sections of local and regional geology, AoR, and USDWs; characterize the
overburden and subsurface; and provide information on fractures, stress, rock strength, and in situ fluid pressures within cap rock.
2. Area of Review (AoR) Study and Corrective Action
The AoR determined as either a 1⁄4 mile radius or by mathematical formula. Identify all wells in the AoR that penetrate the injection zone and provide a description of each; identify the status of corrective action for wells in
the AoR; and remediate those posing the greatest risk to USDWs.
3. Injection Well Construction
The well must be cased and cemented to prevent movement of fluids into or between USDWs and to withstand
the injected materials at the anticipated pressure, temperature and other operational conditions.
4. Well Operation
Limit injection pressure to avoid initiating new fractures or propagate existing fractures in the confining zone adjacent to the USDWs.
5. Mechanical Integrity Testing (MIT)
Demonstrate internal and external mechanical integrity, conduct a radioactive tracer survey of the bottom-hole cement, and conduct a pressure fall-off test every 5 years.
6. Monitoring
Monitor the nature of injected fluids at a frequency sufficient to yield data representative of their characteristics;
Conduct ground water monitoring within the AoR. Report semi-annually on the characteristics of injection fluids,
injection pressure, flow rate, volume and annular pressure, and on the results of MITs, and ground water and
atmospheric monitoring.
7. Well Plugging
1 Although both estimated costs and benefits are
discussed in detail, the final policy decisions
VerDate Aug<31>2005
17:19 Jul 24, 2008
Jkt 214001
regarding this rulemaking are not premised solely
on a cost/benefit basis.
PO 00000
Frm 00034
Fmt 4701
Sfmt 4702
E:\FR\FM\25JYP2.SGM
25JYP2
Decrease.
Decrease.
Decrease.
Decrease.
Decrease.
Decrease.
43525
Federal Register / Vol. 73, No. 144 / Friday, July 25, 2008 / Proposed Rules
TABLE VII–1.—RELATIVE RISK OF REGULATORY COMPONENTS FOR PREFERRED PROPOSED REGULATORY ALTERNATIVE
VERSUS THE CURRENT REGULATIONS—Continued
Direction of change
in risk
(relative to baseline)
Baseline
Ensure that the well is in a state of static equilibrium and plugged using approved methods. Plugs shall be tagged
and tested. Conduct post-injection site care monitoring to confirm that CO2 movement is limited to intended
zones.
8. Financial Responsibility
Demonstrate and maintain financial responsibility and resources to plug the injection well and for post-injection
site care.
Overall ..................................................................................................................................................................................
Decrease.
Decrease.
Decrease.
Note: See Chapter 2 of the GS proposed rule Cost Analysis for a detailed description of the components for each regulatory alternative.
In the consideration of benefits of the
proposed GS rule, the direction of
change in risk mitigation compared to
the baseline regulatory scenario was
assessed for each component of the four
regulatory alternatives considered. An
overall assessment for each alternative
as a whole requires consideration of the
relative importance of risk being
mitigated by each component of the
proposed rule.
As shown in Table VII–1, EPA
estimates that under the Preferred
Alternative, RA3, risk will decrease
relative to the baseline for each of the
eight components assessed.
b. Other Nonquantified Benefits
Promulgation of the proposed rule
will result in direct benefits, that is,
protection of the USDWs which EPA is
required by statute to protect; and
indirect benefits, which are those
protections afforded to entities as a byproduct of protecting USDWs. Indirect
benefits are described in the Risk and
Occurrence Document for Geologic
Sequestration Proposed Rulemaking
(USEPA, 2008e) and summarized in
Chapter 4 of the GS Rule Cost Analysis.
They include mitigation of potential risk
to surface ecology and to human health
through exposure to elevated
concentrations of CO2. Potential benefits
from potential climate change
mitigation are not included in the
assessment.
2. National Cost Summary
a. Cost of Preferred Regulatory
Alternative
EPA estimated the incremental, onetime, capital, and operation and
maintenance (O&M) costs associated
with today’s proposed rulemaking. As
Table VII–2 shows, the total incremental
cost associated with the Preferred
Alternative is $15.0 million and $15.6
million, using a 3 percent and 7 percent
discount rate, respectively. These costs
are in addition to the baseline costs that
would be incurred if CO2 sequestration
was instead subject to the current rules
for UIC Class I industrial wells. As can
be seen from Table VII–2, today’s
proposed rule would increase the costs
of complying with UIC regulations for
these wells from approximately a
baseline of $32.3 million to $47.3
million using a 3 percent discount rate,
which is an increase of 46%. EPA
believes these increased costs are
needed to address the unique issues
associated with CO2 geological
sequestration. The costs of the other
regulatory alternatives considered are
detailed in the Cost Analysis, along with
a discussion of how EPA derived these
estimates.
TABLE VII–2.—INCREMENTAL COSTS OF PREFERRED REGULATORY ALTERNATIVE FOR 22 PROJECTS
[2007$, $million]
One-time
costs
Regulatory alternative
Capital
costs
O&M costs
Total
3 Percent Discount Rate
Baseline ...................................................................................................................................
Alternative 3 .............................................................................................................................
Alt 3—Incremental ...................................................................................................................
$2.5
3.8
1.3
$10.6
15.5
4.9
$19.2
28.1
8.8
$32.3
47.3
15.0
7 Percent Discount Rate
jlentini on PROD1PC65 with PROPOSALS2
Baseline ...................................................................................................................................
Alternative 3 .............................................................................................................................
Alt 3—Incremental ...................................................................................................................
Table VII–3 presents a breakout of the
incremental costs of the Preferred
Alternative by rule component.
• Monitoring activities account for 60
percent of the incremental regulatory
costs. Most of this cost is for the
construction, operation, and
maintenance of corrosion-resistant
monitoring wells. This cost also
includes tracking of the plume and
VerDate Aug<31>2005
17:19 Jul 24, 2008
Jkt 214001
pressure front as well as the cost of
incorporating monitoring results into
fluid flow models that are used to
reevaluate the AoR. These activities are
a key component of decreasing risk
associated with GS because they
facilitate early detection of unacceptable
movement of CO2 or formation fluids.
• The next largest cost component of
the Preferred Alternative is injection
PO 00000
Frm 00035
Fmt 4701
Sfmt 4702
$2.9
4.2
1.3
$12.7
18.6
5.9
$18.0
26.4
8.4
$33.6
49.2
15.6
well operation, accounting for 22
percent of the total incremental cost.
This component ensures that the wells
operate within safety parameters and
the injection does not cause
unacceptable fluid movement.
• Well plugging and post-injection
site care activities, which ensure that
the injection well is properly closed in
a way that addresses the corrosive
E:\FR\FM\25JYP2.SGM
25JYP2
43526
Federal Register / Vol. 73, No. 144 / Friday, July 25, 2008 / Proposed Rules
nature of the CO2 and does not allow it
to serve as a conduit for fluid
movement, account for 5 percent of the
total incremental cost of RA 3.
• Mechanical Integrity Testing,
including continuous pressure
monitoring, which can provide timely
warning that CO2 may have
compromised the well, accounts for an
additional 4 percent of the cost.
• Construction of GS wells using the
corrosion resistant design and materials
necessary to withstand exposure to CO2
accounts for 4 percent of the
incremental cost of the Preferred
Alternative.
TABLE VII–3.—INCREMENTAL RULE COSTS OF PREFERRED REGULATORY ALTERNATIVE FOR 22 PROJECTS BY RULE
COMPONENT
[2007$, $million]
Rule component
Regulatory
alternative
Geologic
site characterization
Monitoring
Injection
well construction
Area of
review
Well operation
MIT
Well plugging and
postinjection
site care
Financial
responsibility 1
Permitting
authority
admin
Total
3 Percent Discount Rate
Baseline ....................
Alternative 3 .............
Alt 3 Incremental ......
Incremental—% of
Total ......................
$0.7
1.2
0.4
$1.8
10.9
9.1
$10.4
11.0
0.6
$0.6
0.7
0.1
$18.5
21.8
3.3
$0.1
0.7
0.6
$0.1
0.9
0.8
$0.0
0.0
0.0
$0.1
0.1
0.0
$32.3
47.3
15.0
3%
60%
4%
1%
22%
4%
5%
0%
0%
100%
7 Percent Discount Rate
Baseline ....................
Alternative 3 .............
Alt 3 Incremental ......
Incremental—% of
Total ......................
jlentini on PROD1PC65 with PROPOSALS2
1 Costs
$0.9
1.4
0.5
$2.1
12.0
9.9
$12.5
13.3
0.8
$0.6
0.8
0.2
$17.3
20.3
3.0
$0.1
0.7
0.6
$0.1
0.7
0.6
$0.0
0.0
0.0
$0.1
0.1
0.0
$33.6
49.2
15.6
3%
63%
5%
1%
19%
4%
4%
0%
0%
100%
related to demonstration of Financial Responsibility are less than $100,000 in annualized terms.
b. Nonquantified Costs and
Uncertainties in Cost Estimates
The purpose of the GS proposed rule
is to mitigate any risk introduced by
CO2 GS activity to the quality, and
indirectly the quantity, of current and
potential future USDWs. Furthermore,
the rule proposes requirements that are
intended to provide redundant
safeguards. In the rare case where the
rule, if finalized, is non-implementable
or not readily comprehensible,
contamination could occur to a USDW.
In that case, the cost of cleaning up the
USDW or finding an alternative source
of drinking water could be attributable
to the rule. Based on data from States
regarding implementation of the UIC
program and current research, EPA
considers the likelihood of this
occurring very small, and has not
quantified this risk.
Should the final GS rule somehow
impede CO2 GS from happening, then
the opportunity costs of not capturing
the benefits associated with GS of CO2
could be attributed to the regulations;
however, the Agency has tried to
develop a proposed rule that balances
risk with practicability and economic
considerations, and believes the
probability of such impedance is very
low. If finalized, the GS rule would
ensure protection of USDWs from GS
VerDate Aug<31>2005
17:19 Jul 24, 2008
Jkt 214001
activities while also providing
regulatory certainty to industry and
permitting authorities and an increased
understanding of GS through public
participation and outreach. Thus, EPA
believes the proposed rule will not
impede CO2 GS from happening and has
not quantified such risk.
Uncertainties in the analysis are
included in some of the basic
assumptions as well as some detailed
cost items. Uncertainties related to
economic trends, the future rate of CCS
deployment, and GS implementation
choices may affect three basic
assumptions on which the analysis is
based: (1) The estimated number of
projects that will be affected by the GS
proposed rule; (2) the labor rates
applied; and (3) the estimated number
of monitoring wells to be constructed
per injection well to adequately monitor
in a given geologic setting.
First, the number of projects that will
deploy from 2012 through 2036 may be
significantly underestimated in this
analysis given the uncertainty in future
deployment of this technology. The
current baseline assumption is that 22
projects will deploy during the 25-year
period, as described in Chapter 3 of the
proposed rule Cost Analysis and
explained in detail in the Geologic CO2
PO 00000
Frm 00036
Fmt 4701
Sfmt 4702
Sequestration Activity Baseline
(USEPA, 2008f) document.
Second, the labor rate adopted for
each of the labor categories described in
Section 5.2.1 of the Cost Analysis
(Geoscientist, Geological Engineer, State
Geologist, and Agency Geologist) may
be underestimated. The practice of CO2
injection represents an activity that,
although already practiced widely in
some contexts (i.e., EOR), is expected to
expand rapidly in the coming years.
This expansion may be exponential
under certain climate legislative
scenarios, which may lead to shortages
in labor and equipment in the short
term, resulting in rapid cost escalation
for many of the cost components
discussed in this chapter. (Anecdotal
evidence based on discussions with
industry representatives suggests that
there may already be labor shortages
developing in some critical disciplines.)
Because the cost analyses presented in
this chapter are based on current
industry costs, the level and pace of
price responses as the level of CO2 GS
increases represent a highly uncertain
component in the cost estimates
presented in this chapter.
Third, the Agency assumes three
monitoring wells per injection well for
the purpose of estimating national costs;
however, the Agency recognizes that
E:\FR\FM\25JYP2.SGM
25JYP2
Federal Register / Vol. 73, No. 144 / Friday, July 25, 2008 / Proposed Rules
jlentini on PROD1PC65 with PROPOSALS2
operators and primacy agency Directors
may choose more or fewer monitoring
wells depending on project site
characteristics. Because the monitoring
wells and associated costs represent a
significant component of the Cost
Analysis, the Agency acknowledges that
this factor may be significant in the
overall uncertainty of the Cost Analysis.
EPA requests comment on whether
three monitoring wells per injection
well is an appropriate costing
assumption.
Additional uncertainties correspond
more directly to specific assumptions
made in constructing the cost model. If
the assumptions for such items are
incorrect, there may be significant cost
implications outside of the general price
level uncertainties discussed above.
These cost items are described in
section 5.9.2 of the GS proposed rule
Cost Analysis.
c. Supplementary Cost Information
To better establish the context in
which to evaluate the Cost Analysis for
this proposal, we consider three types of
costs that are not accounted for
explicitly for this proposed rule: (1)
Costs that are incurred beyond the 25year timeframe of the Cost Analysis, (2)
costs that could arise due to a higher
rate of deployment of CCS in the future,
and (3) the proportion of overall CCS
costs attributable to the proposed
requirements. Because geologic
sequestration of CO2 is in the early
phase of development, and given the
significant interest in research,
development, and eventual
commercialization of CCS, EPA
provides a preliminary discussion of the
impact of these costs below.
The Cost Analysis for this proposed
rule explores costs that might be
incurred during a 25-year timeframe.2
When analyzing costs for a commercial
size sequestration project that begins in
year one of the Cost Analysis, EPA
assumes that the first year is a
construction period, followed by 20
years of injection, followed by 50 years
of post-injection site care as indicated in
the proposal. The 20-year injection
period reflects the assumption that a
source such as a coal-fired power plant,
with a potential operational lifetime of
40 to 60 years, would plan for the
sequestration of only half of its
emissions at a time, rather than incur
those costs all at once. EPA requests
comment on this assumption. Given the
2 A detailed discussion of timeframe over which
the proposed requirements were estimated can be
found in the Cost Analysis.
3 A more detailed discussion of these projects can
be found in the Cost Analysis.
VerDate Aug<31>2005
17:19 Jul 24, 2008
Jkt 214001
43527
25-year timeframe of the analysis, only
the first four years of post-injection care
period would be captured in the Cost
Analysis for a project beginning in year
1, and fewer or no years of postinjection care for a project beginning
later in the 25-year analytical time
frame. Based on estimates of the first
four years of the post-injection care
period, EPA estimates that the average
costs for one large deep saline project
incurred beyond the 25-year timeframe
of the Cost Analysis are approximately
$0.30/t CO2 for the remaining 46 years
of post-injection site care. The full
amount of the 46 years of post-injection
site care is incremental to the baseline.
The incremental sequestration costs
above the baseline, over the full lifetime
of the sequestration project, are
estimated to be $1.20/t CO2. Thus the
25-year timeframe captures
approximately 75% of the lifetime
incremental costs associated with
implementing this rule. It should be
noted that the longer the time horizon
over which costs are estimated, the
greater the uncertainty surrounding
those estimates.
The Cost Analysis assumes that 22
projects will inject 350 Mt CO2
cumulatively over the next 25 years.3
The start years of these projects, for both
pilot and large sizes, are staggered over
the 25 years.4 Based on the assumed
deployment schedule, the analysis
captures the full injection periods for
three large-scale projects (with an
injection period of 20 years), 12 pilot
projects (with an injection period of
seven years), and partial injection
periods for the remaining seven
projects. While the baseline injection
amount represents a significant step
towards demonstrating the feasibility of
CCS, it represents a small amount of
current CO2 emissions in the U.S.
The U.S. fleet of 1,493 coal-fired
generators emits 1,932 Mt CO2 per year.
The technical or economic viability of
retrofitting these or other industrial
facilities with CCS is not the subject of
this proposed rulemaking. However, if
some percentage of these facilities
undertook CCS, they (or the owner or
operator of the CO2 injection wells)
would be subject to the UIC
requirements. For example, if 25% of
these facilities undertook CCS
(assuming a 90% capture rate and the
incremental proposed rule sequestration
costs outlined in Table VII–4) the
incremental sequestration costs
associated with meeting the proposed
Class VI requirements, assuming they
are finalized, would be on the order of
$500 million. Similarly, if 100% of
these plants undertook CCS, the
incremental costs would be on the order
of $2 billion, although it is unlikely that
all coal plants would deploy CCS
simultaneously. These preliminary cost
estimates represent the annualized
incremental cost of meeting the
additional sequestration requirements in
the proposed rule that would be
incurred over the lifetime of the
sequestration projects, assuming that all
sequestration projects begin in the same
year. These cost estimates were not
generated from a full economic analysis
or included in the Cost Analysis for this
proposal, due to the uncertainty of what
percentage, if any, of such facilities will
deploy CCS in the future. These
estimates represent a snapshot of
potential costs assuming 25% or 100%
of all plants undertake CCS beginning in
the same year, and do not take into
consideration CCS deployment rates
and project-specific costs. Actual
annualized costs incurred as CCS
deploys in the future could be higher or
lower, depending on a number of factors
including deployment rates, capital and
labor cost trends, and the shape of the
learning curve.
Based on current literature,
sequestration costs are expected to be a
small component of total CCS project
costs. Table VII–4 shows example total
CCS project costs broken down by
capture, transportation, and
sequestration components. The largest
component of total CCS project costs is
the cost of capturing CO2 ($42/t CO2 for
capture from an Integrated Gasification
Combined Cycle power plant 5).
Transportation costs vary widely
depending on the distance from
emission source to sequestration site,
but we can use a long-term average
estimate of $3/t CO2.6 We estimate total
sequestration costs for a commercial
size deep saline project to be
approximately $3.40/t CO2, of which
approximately $1.20/t CO2 is
attributable to complying with
requirements of this proposed rule
(including the full 50 years of postinjection site care). Based on the project
costs outlined in Table VII–4, the
proposed requirements amount to
approximately 3% of the total CCS
project costs.
4 A detailed table of the scheduled deployment of
projects assumed in the baseline over the 25-year
timeframe can be found in Exhibit 3.1 of the Cost
Analysis.
5 Cost and Performance Baseline for Fossil Energy
Plants, Vol. 1, DOE/NETL–2007/1281, May 2007.
6 On the Long-Term Average Cost of CO
2
Transport and Storage, JJ Dooley, RT Dahowski, CL
Davidson, Pacific Northwest National Laboratory
Operated for the U.S. Department of Energy by
Battelle Memorial Institute, PNNL–17389, March
2008.
PO 00000
Frm 00037
Fmt 4701
Sfmt 4702
E:\FR\FM\25JYP2.SGM
25JYP2
43528
Federal Register / Vol. 73, No. 144 / Friday, July 25, 2008 / Proposed Rules
TABLE VII–4.—EXAMPLE TOTAL CCS PROJECT COSTS
Example Total CCS project costs
(including capture at an IGCC plant, transportation, and deep saline reservoir at commercial scale sequestration)
Cost over lifetime of project
($/tCO2)
Percentage of
total CCS
project cost
(%)
Capture (IGCC plant) ...............................................................................................................................................
Transportation Estimate ...........................................................................................................................................
Baseline Sequestration ............................................................................................................................................
Incremental Proposed Rule Sequestration Requirements ......................................................................................
$42.00
3.00
2.20
1.20
87
6
4
3
Total CCS Project Cost ....................................................................................................................................
48.40
........................
B. Comparison of Benefits and Costs of
Regulatory Alternatives of the Proposed
Rule
jlentini on PROD1PC65 with PROPOSALS2
a. Costs Relative to Benefits;
Maximizing Net Social Benefits
Because EPA lacks the data to perform
a quantified analysis of benefits, a direct
numerical comparison of costs to
benefits cannot be done. Costs can only
be compared to qualitative relative risks
as discussed in section VII–1.
Compared to the baseline, RA3
provides greater protection to USDWs
because it is specifically tailored to the
injection of CO2. The current regulatory
requirements do not specifically
consider the injection of a buoyant
corrosive fluid. In particular, RA3
includes increased monitoring
requirements that provide the amount of
protection the Agency estimates is
necessary for USDWs. As described in
the prior section (A. National Benefits
and Costs of the Proposed Rule),
monitoring requirements account for 60
percent of the incremental regulatory
costs, of which 70 percent is incurred
for the construction, operation, and
maintenance of monitoring wells, and
the other 30 percent for tracking of the
plume and pressure front through
complex modeling at a minimum of
every 10 years for all operators (the cost
model assumes every 5 years) and
monitoring for CO2 leakage. Public
awareness of these protective measures
would be expected to enhance public
acceptance of CO2 GS.
RA1 and RA2 do not provide the
specific safeguards against CO2
migration that RA3 does because of a
significantly greater amount of
discretion allowed to Directors and
operators for interpreting requirements,
and less stringent requirements for some
compliance activities. (Only RA3 and
RA4 require the periodic complex
modeling exercise for tracking the
plume, for example.) RA4 provides
greater safeguards against CO2
migration, but at a much higher cost.
VerDate Aug<31>2005
17:19 Jul 24, 2008
Jkt 214001
b. Cost Effectiveness and Incremental
Net Benefits
RA1 and RA2 provide lower costs
than RA3 but at increased levels of risk
to USDWs. Although RA4 has more
stringent requirements, EPA does not
believe that the increased requirements
and the increased costs are necessary to
provide protection to USDWs. Therefore
EPA believes that RA3 is the best
alternative.
C. Conclusions
RA3 provides a high level of
protection to USDWs overlying injection
zones of CO2. It does so at lower costs
than the more stringent RA4 while
providing significantly more protection
than RA1 or RA2. Therefore EPA
believes RA3 is the preferred regulatory
alternative. The Agency seeks comment
on cost assumptions in today’s proposal.
VIII. Statutory and Executive Order
Reviews
A. Executive Order 12866: Regulatory
Planning and Review
Under Executive Order (EO) 12866
(58 FR 51735, October 4, 1993), this
action is a ‘‘significant regulatory
action.’’ Accordingly, EPA submitted
this action to the Office of Management
and Budget (OMB) for review under EO
12866 and any changes made in
response to OMB recommendations
have been documented in the docket for
this action.
B. Paperwork Reduction Act (PRA)
The information collection
requirements in this proposed rule have
been submitted for approval to the
Office of Management and Budget
(OMB) under the Paperwork Reduction
Act, 44 U.S.C. 3501 et seq. The
Information Collection Request (ICR)
document prepared by EPA has been
assigned EPA ICR number 2309.01.
The information collected as a result
of this proposed rule will allow EPA
and State permitting authorities to
review geologic information about a
PO 00000
Frm 00038
Fmt 4701
Sfmt 4702
proposed GS site to evaluate its
suitability for safe and effective GS. It
also allows the Agency to verify
throughout the life of the injection
project that UIC protective requirements
are in place and that USDWs are
protected. The Paperwork Reduction
Act requires EPA to estimate the burden
on owners or operators of CO2 GS wells,
and States, Territories, and Tribes with
primacy. Burden is defined at 5 CFR
1320.3(b).
For GS well operators applying for
permits, this burden includes the time,
effort, and financial resources needed to
collect information to furnish EPA with
the following information:
—UIC permit applications and
information to support the site
characterization, such as maps and
cross sections, information on the
geologic structure, hydrogeologic
properties, and baseline geochemical
data on the proposed site.
—AoR and corrective action plan.
—Testing and monitoring plan.
—Well plugging and post-injection site
care plans.
—Emergency and remedial response
plans.
—Reports of well logs and tests
performed during well construction.
—Periodic updates to the AoR models
and corrective action status.
—Demonstration of financial
responsibility and periodic updates.
—Periodic reports of monitoring and
testing.
—Reports of post-injection monitoring.
—Non-endangerment demonstrations
and the conclusion of all postinjection site care.
For the first 3 years after publication
of the final rule in the Federal Register,
the major information requirements
apply to operators of GS wells that are
submitting an application for the
construction of a CO2 GS well (or
seeking a Class VI permit for an existing
well) or monitoring and MIT data
during the operation of the GS project.
E:\FR\FM\25JYP2.SGM
25JYP2
Federal Register / Vol. 73, No. 144 / Friday, July 25, 2008 / Proposed Rules
States and Tribes with primacy will
incur burden associated with the
following activities:
—Applying for primacy.
—Reviewing permit applications and
associated data submitted by
operators (including the testing and
monitoring plan, AoR and corrective
action plan, injection well plugging
plan, post-injection site care and
closure plan, and emergency and
remedial response plan).
—Making decisions on whether to grant
or deny permits and writing permits.
—Reviewing testing and monitoring
data submitted by operators, e.g.,
continuous monitoring and MIT
results.
For the first 3 years after publication
of the final rule in the Federal Register,
preparing primacy applications will
account for the majority of primacy
agency burden. This is a one-time
burden to each State or Tribe that seeks
primacy and, in subsequent ICRs,
primacy agency burden is expected to
decrease by approximately 90 percent.
The collection requirements are
mandatory under the SDWA (42 U.S.C.
300h et seq.). Calculation of the
information collection burden and costs
associated with today’s proposal can be
found in the Information Collection
Request for the Federal Requirements
Under the Underground Injection
Control Program for Carbon Dioxide
Geologic Sequestration Wells (USEPA,
2008g), available through https://
www.regulation.gov under Docket ID
EPA–HQ–OW–2008–0390.
As shown in Table VIII–1, the total
burden associated with the proposed
rule over the 3 years following
promulgation is 62,117 hours, or an
average of 20,706 hours per year. The
total cost over this period is $7.3
million, or an average of $2.4 million
per year. The average burden per
response for each activity that requires
a collection of information is 164 hours;
the average cost per response is $19,310.
An agency may not conduct or
sponsor, and a person is not required to
respond to, a collection of information
request unless it displays a currently
valid OMB control number. The OMB
43529
control numbers for EPA’s regulations
in 40 CFR are listed in 40 CFR Part 9.
To comment on the Agency’s need for
this information, the accuracy of the
provided burden estimates, and any
suggested methods for minimizing
respondent burden, EPA has established
a public docket for this proposed rule
under Docket ID number EPA–HQ–OW–
2008–0390. Submit any comments
related to the ICR to EPA and OMB. See
ADDRESSES section at the beginning of
this notice for where to submit
comments to EPA. Send comments to
OMB at the Office of Information and
Regulatory Affairs, Office of
Management and Budget, 725 17th
Street, NW., Washington, DC 20503,
Attention: Desk Office for EPA. Since
OMB is required to make a decision
concerning the ICR between 30 and 60
days after July 25, 2008, a comment to
OMB is best assured of having its full
effect if OMB receives it by August 25,
2008. The final rule will respond to any
OMB or public comments on the
information collection requirements
contained in this proposal.
TABLE VIII–1.—ANNUAL, TOTAL, AND ANNUAL AVERAGE BURDEN HOURS AND COSTS FOR THE PROPOSED RULE
INFORMATION COLLECTION REQUEST 3-YEAR APPROVAL PERIOD
Year 1
Year 2
Year 3
Total
Annual
average
Total (Owners/Operators, Primay Agencies, and DI Programs/EPA Headquarters)
Burden (in hours) .................................................................
Respondents ........................................................................
Responses ...........................................................................
Costs ($) ..............................................................................
Labor ($) .......................................................................
Non-Labor ($) ...............................................................
Burden per Response ..........................................................
Cost per Response ..............................................................
Burden per Respondent .......................................................
Cost per Respondent ...........................................................
21,934.2
24.3
131.0
$3,412,795
$1,132,302
$2,280,493
167.4
$26,052
901.4
$140,252
18,293.7
28.2
113.0
$2,428,168
$877,087
$1,551,081
161.9
$21,488
648.4
$86,065
18,435.2
29.9
129.0
$2,702,335
$887,616
$1,814,719
142.9
$20,948
615.9
$90,278
62,117.0
47.0
378.0
$7,299,064
$3,145,843
$4,119,644
164.3
$19,310
1,321.6
$155,299
20,705.7
27.5
126.0
$2,433,021
$1,048,614
$1,373,215
164.3
$19,310
753.1
$88,495
2,228.5
5.0
65.0
$1,983,931
$169,212
$1,814,719
34.3
$30,522
445.7
$396,786
13,160.0
5.0
187.0
$5,129,006
$975,786
$4,119,644
70.4
$27,428
2,632
$1,025,801
4,386.7
4.0
62.3
$1,709,669
$325,262
$1,373,215
70.4
$27,428
1,096.7
$427,417
11,013.1
13.9
33.4
$464,374
$464,374
........................
330.0
$13,915
790.4
33,281.8
31.0
99.4
$1,403,354
$1,403,354
........................
1,010.2
$42,597
2,713.6
11,093.9
12.5
33.1
$467,785
$467,785
........................
336.7
$14,199
904.5
Operators/Owners
Burden (in hours) .................................................................
Respondents ........................................................................
Responses ...........................................................................
Costs ($) ..............................................................................
Labor ($) .......................................................................
Non-Labor ($) ...............................................................
Avg. Burden per Response .................................................
Avg. Cost per Response ......................................................
Burden per Respondent .......................................................
Cost per Respondent ...........................................................
5,359.5
3.0
63.0
$2,678,179
$397,687
$2,280,493
85.1
$42,511
1,786.5
$892,726
2,118.0
4.0
54.0
$1,711,130
$160,049
$1,551,081
39.2
$31,688
529.5
$427,783
jlentini on PROD1PC65 with PROPOSALS2
Primacy Agencies
Burden (in hours) .................................................................
Respondents ........................................................................
Responses ...........................................................................
Costs ($) ..............................................................................
Labor ($) .......................................................................
Non-Labor ($) ...............................................................
Burden per Response ..........................................................
Cost per Response ..............................................................
Burden per Respondent .......................................................
VerDate Aug<31>2005
17:19 Jul 24, 2008
Jkt 214001
PO 00000
11,278.8
10.3
36.3
$475,547
$475,547
........................
311.1
$13,117
1,091.4
Frm 00039
Fmt 4701
10,990.7
13.2
29.8
$463,433
$463,433
........................
369.1
$15,565
831.8
Sfmt 4702
E:\FR\FM\25JYP2.SGM
25JYP2
43530
Federal Register / Vol. 73, No. 144 / Friday, July 25, 2008 / Proposed Rules
TABLE VIII–1.—ANNUAL, TOTAL, AND ANNUAL AVERAGE BURDEN HOURS AND COSTS FOR THE PROPOSED RULE
INFORMATION COLLECTION REQUEST 3-YEAR APPROVAL PERIOD—Continued
Year 1
Cost per Respondent ...........................................................
Year 2
$46,021
$35,073
Year 3
Total
Annual
average
$33,328
$114,422
$38,141
5,193.6
11.0
30.6
$254,029
$254,029
........................
169.6
$8,294
472.1
$23,094
15,675.2
11.0
91.6
$766,703
$766,703
........................
171.1
$8,370
1,425.0
$69,700
5,225.1
11.0
30.5
$255,568
$255,568
........................
171.1
$8,370
475.0
$23,233
DI Programs/EPA Headquarters
Burden (in hours) .................................................................
Respondents ........................................................................
Responses ...........................................................................
Costs ($) ..............................................................................
Labor ($) .......................................................................
Non-Labor ($) ...............................................................
Burden per Response ..........................................................
Cost per Response ..............................................................
Burden per Respondent .......................................................
Cost per Respondent ...........................................................
5,296.6
11.0
31.7
$259,069
$259,069
........................
166.8
$8,161
481.5
$23,552
5,184.9
11.0
29.2
$253,605
$253,605
........................
177.4
$8,677
471.4
$23,055
Note: Numbers may not appear to add due to rounding.
jlentini on PROD1PC65 with PROPOSALS2
C. Regulatory Flexibility Act (RFA)
The Regulatory Flexibility Act (RFA)
generally requires an agency to prepare
a regulatory flexibility analysis of any
rule subject to notice and comment
rulemaking requirements under the
Administrative Procedure Act or any
other statute unless the agency certifies
that the rule will not have a significant
economic impact on a substantial
number of small entities. Small entities
include small businesses, small
organizations, and small governmental
jurisdictions. For purposes of assessing
the impacts of today’s proposed rule on
small entities, small entity is defined as:
(1) A small business as defined by the
Small Business Administration’s (SBA)
regulations at 13 CFR 121.201; (2) a
small governmental jurisdiction that is a
government of a city, county, town,
school district or special district with a
population of less than 50,000; and (3)
a small organization that is any not-forprofit enterprise which is independently
owned and operated and is not
dominant in its field.
After considering the economic
impacts of today’s proposed rule on
small entities, I certify that this action
will not have a significant economic
impact on a substantial number of small
entities. This proposed rule will not
impose any requirements on small
entities. Sequestering CO2 via injection
wells is a voluntary action that would
only be undertaken by a small entity if
it were in its interest compared to other
alternatives it may have. GS of CO2 is
still a scientifically complex activity,
the cost of which is anticipated to be
prohibitive to small entities. Therefore it
is anticipated small entities would not
elect to sequester CO2 via injection
wells. We continue to be interested in
the potential impacts of the proposed
VerDate Aug<31>2005
17:19 Jul 24, 2008
Jkt 214001
rule on small entities and welcome
comments on issues related to such
impacts.
D. Unfunded Mandates Reform Act
(UMRA)
Title II of the Unfunded Mandates
Reform Act of 1995 (UMRA), Public
Law 104–4, establishes requirements for
Federal agencies to assess the effects of
their regulatory actions on State, local,
and tribal governments and the private
sector. Under section 202 of UMRA,
EPA generally must prepare a written
statement, including a cost-benefit
analysis, for proposed and final rules
with ‘‘Federal mandates’’ that may
result in expenditures to State, local,
and tribal governments, in the aggregate,
or to the private sector, of $100 million
or more in any one year. Before
promulgating an EPA regulation for
which a written statement is needed,
section 205 of UMRA generally requires
EPA to identify and consider a
reasonable number of regulatory
alternatives and adopt the least costly,
most cost-effective or least burdensome
alternative that achieves the objectives
of the rule. The provisions of section
205 do not apply when they are
inconsistent with applicable law.
Moreover, section 205 allows EPA to
adopt an alternative other than the least
costly, most cost-effective or least
burdensome alternative if the
Administrator publishes with the final
rule an explanation why that alternative
was not adopted. Before EPA establishes
any regulatory requirements that may
significantly or uniquely affect small
governments, including tribal
governments, it must have developed
under section 203 of UMRA a small
government agency plan. The plan must
provide for notifying potentially
affected small governments, enabling
PO 00000
Frm 00040
Fmt 4701
Sfmt 4702
officials of affected small governments
to have meaningful and timely input in
the development of EPA regulatory
proposals with significant Federal
intergovernmental mandates, and
informing, educating, and advising
small governments on compliance with
the regulatory requirements.
Based on the analysis of 22 pilot
projects, EPA has determined that this
proposed rule does not contain a
Federal mandate that may result in
expenditures of $100 million or more
for State, local, and tribal governments,
in the aggregate, or the private sector in
any one year. Expenditures associated
with compliance for these projects,
defined as the incremental costs beyond
the existing regulations under which a
CO2 GS well could be permitted and
deployed, will not surpass $100 million
in the aggregate in any year. Thus,
today’s proposed rule is not subject to
the requirements of sections 202 and
205 of UMRA. However, EPA recognizes
that if CCS is used more widely, the
incremental costs of the requirements
associated with this rule could exceed
$100 million in the aggregate in some
years. EPA will determine the
applicability of UMRA for the final rule
and provide any necessary analysis.
EPA has determined that this
proposed rule contains no regulatory
requirements that might significantly or
uniquely affect small governments. Most
regulated entities are anticipated to be
private entities, not governments.
E. Executive Order 13132: Federalism
Executive Order 13132, entitled
‘‘Federalism’’ (64 FR 43255, August 10,
1999), requires EPA to develop an
accountable process to ensure
‘‘meaningful and timely input by State
and local officials in the development of
regulatory policies that have Federalism
E:\FR\FM\25JYP2.SGM
25JYP2
jlentini on PROD1PC65 with PROPOSALS2
Federal Register / Vol. 73, No. 144 / Friday, July 25, 2008 / Proposed Rules
implications.’’ ‘‘Policies that have
Federalism implications’’ is defined in
the Executive Order to include
regulations that have ‘‘substantial direct
effects on the States, on the relationship
between the national government and
the States, or on the distribution of
power and responsibilities among the
various levels of government.’’
This proposed rule does not have
Federalism implications. It will not
have substantial direct effects on the
States, on the relationship between the
national government and the States, or
on the distribution of power and
responsibilities among the various
levels of government, as specified in
Executive Order 13132. Currently,
States may gain the authority to regulate
a full or partial UIC program in their
State by applying for primacy. States
with primacy must develop a program
incorporating all new Federal
requirements for Class VI wells if they
wish to regulate CO2 GS, and all
programs will be subject to EPA
approval. Since application for primacy
is a voluntary process, the addition of
this proposed regulation to the UIC
regulations should not significantly
impact States or their right to primacy
for other classes of wells. If States do
not develop a program for Class VI
wells, EPA will oversee CO2 GS in those
States. Thus, Executive Order 13132
does not apply to this proposal.
Although section 6 of Executive Order
13132 does not apply to this rule, EPA
did consult with State and local officials
early in the process of developing this
proposed rule to permit them to have
meaningful and timely input in its
development. EPA sent letters with
background about the rulemaking and
an invitation for consultation to the
National Governors’ Association, the
National Conference of State
Legislatures, the Council of State
Governments, the National League of
Cities, the U.S. Conference of Mayors,
the National Association of Counties,
the International City/County
Management Association, the National
Association of Towns and Townships,
and the County Executives of America.
EPA held a meeting with interested
parties from these organizations in April
2008.
In the spirit of Executive Order 13132,
and consistent with EPA policy to
promote communications between EPA
and State and local governments, EPA
specifically solicits comment on this
proposed rule from State and local
officials. A summary of the concerns
raised during that consultation and
EPA’s response to those concerns will
be provided in the preamble to the final
rule.
VerDate Aug<31>2005
17:19 Jul 24, 2008
Jkt 214001
F. Executive Order 13175: Consultation
and Coordination With Indian Tribal
Governments
Executive Order 13175, entitled
‘‘Consultation and Coordination With
Indian Tribal Governments’’ (65 FR
67249, November 9, 2000), requires EPA
to develop an accountable process to
ensure ‘‘meaningful and timely input by
tribal officials in the development of
regulatory policies that have tribal
implications.’’ This proposed rule does
not have tribal implications as specified
in Executive Order 13175. Currently, no
Indian Tribes have primacy. However,
Indian Tribes may acquire authority to
regulate a partial or full UIC program in
lands under their jurisdiction by
applying for and gaining primacy from
the Agency. Tribes seeking primacy
must develop requirements at least as
stringent as the new proposed Federal
requirements for Class VI wells if they
wish to regulate CO2 GS, and all
programs will be subject to EPA
approval. If Tribes do not develop a
program for Class VI wells, EPA is
responsible for regulating the GS of CO2
on tribal lands. The application for
primacy is a voluntary process.
Furthermore, this proposal clarifies
regulatory ambiguity rather than placing
new requirements on tribal or other
governmental entities. Therefore, this
proposed rule should not change the
Tribal-Federal relationship and should
not significantly impact Tribes. Thus,
Executive Order 13175 does not apply
to this proposed rule.
Although Executive Order 13175 does
not apply to this proposed rule, EPA
consulted with tribal officials in
developing this proposed rule. EPA sent
letters with background about the
rulemaking and an invitation for
consultation to all of the federally
recognized Indian Tribes. EPA held a
meeting with interested parties from
Tribal governments in April 2008.
EPA specifically solicits additional
comment on this proposed rule from
tribal officials.
G. Executive Order 13045: Protection of
Children From Environmental Health
Risks and Safety Risks
This action is not subject to EO 13045
(62 FR 19885, April 23, 1997) because
it is not economically significant as
defined in EO 12866, and because the
Agency does not believe the
environmental health or safety risks
addressed by this action present a
disproportionate risk to children.
Moreover, this proposed rule will not
require that CO2 GS be undertaken; but
does require that if it is undertaken,
operators will conduct the activity in
PO 00000
Frm 00041
Fmt 4701
Sfmt 4702
43531
such a way as to protect USDWs from
endangerment caused by CO2. This
action’s health and risk assessments are
contained in Risk and Occurrence
Document for Geologic Sequestration
Proposed Rulemaking (USEPA, 2008e).
The public is invited to submit
comments or identify peer-reviewed
studies and data that assess the effects
of early life exposure to changes in
drinking water quality that may be
caused by geologic sequestration of
carbon dioxide.
H. Executive Order 13211: Actions That
Significantly Affect Energy Supply,
Distribution, or Use
EPA has tentatively determined that
this rule is not a ‘‘significant energy
action’’ as defined in Executive Order
13211, ‘‘Actions Concerning Regulations
That Significantly Affect Energy Supply,
Distribution, or Use’’ (66 FR 28355, May
22, 2001) because application of these
requirements to the 22 pilot projects is
not likely to have a significant adverse
effect on the supply, distribution, or use
of energy. EPA will consider the
potential effects of more widespread
application of the rule requirements and
make a final determination regarding EO
13211 applicability for the final rule
(see UMRA discussion above).
The higher degree of regulatory
certainty and clarity in the permitting
process may, in fact, have a positive
effect on the energy sector. Specifically,
if climate change legislation that
imposes caps or taxes on CO2 emissions
is passed in the future, energy
generation firms and other CO2
producing industries will have an
economic incentive to reduce emissions,
and this rule will provide regulatory
certainty in determining how to
maximize operations (for example, by
increasing production while staying
within the emissions cap or avoiding
some carbon taxes). The proposed rule
may allow some firms to extend the life
of their existing capital investment in
plant machinery or plant processes.
I. National Technology Transfer and
Advancement Act
Section 12(d) of the National
Technology Transfer and Advancement
Act of 1995 (NTTAA), Public Law No.
104–113, 12(d) (15 U.S.C. 272 note)
directs EPA to use voluntary consensus
standards in its regulatory activities
unless to do so would be inconsistent
with applicable law or otherwise
impractical. Voluntary consensus
standards are technical standards (e.g.,
materials specifications, test methods,
sampling procedures, and business
practices) that are developed or adopted
by voluntary consensus standards
E:\FR\FM\25JYP2.SGM
25JYP2
43532
Federal Register / Vol. 73, No. 144 / Friday, July 25, 2008 / Proposed Rules
jlentini on PROD1PC65 with PROPOSALS2
bodies. NTTAA directs EPA to provide
Congress, through OMB, explanations
when the Agency decides not to use
available and applicable voluntary
consensus standards.
The proposed rulemaking involves
technical standards. Therefore, the
Agency conducted a search to identify
potentially applicable voluntary
consensus standards. However, we
identified no such standards, and none
were brought to our attention. Thus the
Agency decided to convene numerous
workshops (discussed further in Chapter
2 of the Cost Analysis for the GS
proposed rule) to develop standards
based on current information available
from experts in industry, government,
and non-governmental organizations.
EPA proposes to use a combination of
technologies and standard practices that
it estimates will provide the necessary
protection to USDWs with regard to site
characterization, construction,
operation, monitoring, closure, and
post-closure requirements for CO2 GS
wells, without placing undue burden on
well operators. These methods are listed
in Chapter 2 of the Cost Analysis for the
GS proposed rule and described in
further detail in the Geologic CO2
Sequestration Technology & Cost
Analysis (USEPA, 2008h) developed in
support of this proposed rule.
EPA welcomes comments on this
aspect of the proposed rulemaking and,
specifically, invites the public to
identify potentially applicable voluntary
consensus standards and to explain why
such standards should be used in this
regulation.
J. Executive Order 12898: Federal
Actions To Address Environmental
Justice in Minority Populations and
Low-Income Populations
Executive Order (EO) 12898 (59 FR
7629 (Feb. 16, 1994)) establishes federal
executive policy on environmental
justice. Its main provision directs
federal agencies, to the greatest extent
practicable and permitted by law, to
make environmental justice part of their
mission by identifying and addressing,
as appropriate, any disproportionately
high and adverse human health or
environmental effects of their programs,
policies, and activities on minority
populations and low-income
populations in the United States.
EPA has determined that this
proposed rule will not have
disproportionately high and adverse
human health or environmental effects
on minority or low-income populations
because it increases the level of
environmental protection for all affected
populations without having any
disproportionately high and adverse
VerDate Aug<31>2005
17:19 Jul 24, 2008
Jkt 214001
human health or environmental effects
on any population, including any
minority or low-income population.
Existing electric power generation
plants that burn fossil fuels may be
more prevalent in areas with higher
percentages of people who are
minorities or have lower incomes on
average, but it is hard to predict where
new plants with CCS will be built. This
proposed rule would not require that
CO2 GS be undertaken; but does require
that if it is undertaken, operators will
conduct the activity in such a way as to
protect USDWs from endangerment
caused by CO2. Additionally, this
proposed rule if finalized will ensure
that all areas of the United States are
subject to the same minimum Federal
requirements for protection of USDWs
from endangerment from GS. Additional
detail regarding the potential risk of the
proposed rule is presented in the Risk
and Occurrence Document for Geologic
Sequestration Proposed Rulemaking
(USEPA, 2008e).
EPA believes that UIC permit writers
should consider the impact of GS on
any communities in the geographic
areas of GS sites. Permit writers can ask
specific questions to specifically
address any potentially different
impacts on minority and/or low-income
communities. Examples include: In
reviewing the application or Notice of
Intent (NOI) for a GS permit, is there
any indication that a minority and/or
low-income community would be
adversely affected? Are there measures
that should be undertaken to
understand minority and/or low-income
community concerns during the permit
drafting and development phase,
including the development of permit
conditions? If an environmental justice
issue is identified, does the program
solicit input and participation from
minority and/or low-income
populations?
EPA seeks comment on
environmental justice considerations for
GS permit writers.
IX. References
Apps, J.A. 2006. A Review of Hazardous
Chemical Species Associated with CO2
Capture from Coal-Fired Power Plants
and Their Potential Fate in CO2 Geologic
Storage. February 23, 2006. Lawrence
Berkeley National Laboratory. Paper
LBNL–59731. https://
repositories.cdlib.org/lbnl/LBNL-59731.
Benson, S.M., R. Hepple, J. Apps, C.F. Tsang,
and M. Lippmann. 2002. Lessons
Learned from Natural and Industrial
Analogues for Storage of Carbon Dioxide
in Deep Geological Formations.
Lawrence Berkeley National Laboratory.
Paper LBNL–51170.
PO 00000
Frm 00042
Fmt 4701
Sfmt 4702
Benson, S.M. and L. Myer. 2002. Monitoring
to Ensure Safe and Effective Geologic
Sequestration of Carbon Dioxide. IPCC
Workshop for Carbon Capture and
Storage 2002. Regina, Canada: IPCC.
https://arch.rivm.nl/env/int/ipcc/
ccs2002.html.
Brondel, D., R. Edwards, A. Hayman, D. Hill,
S. Mehta, and T. Semerad. 1994.
Corrosion in the Oil Industry. Oilfield
Review, 6 (2), 4–18.
Buller, A., O. Karstad, and G. de Koeijer.
2004. Carbon Dioxide Capture, Storage
and Utilization. Statoil R&D Memoir
series, Research & Technology Memoir
No. 5.
Burton, E., R. Myhre, L. Myer, and K.
Birkinshaw. 2007. Geologic Carbon
Sequestration Strategies for California.
Report to the Legislature. November,
2007. CEC–500–2007–100–SF.
Carey, J.W., M. Wigand, S.J. Chipera, G.
WoldeGabriel, R. Pawar, P.C. Lichtner,
S.C. Wehner, M.A. Raines, and G.D.
Guthrie, Jr. 2007. Analysis and
Performance of Oil Well Cement with 30
years of CO2 Exposure from the SACROC
Unit, West Texas, USA. International
Journal of Greenhouse Gas Control, 1,
75–85.
Crow, W., D.B. Williams., B. Carey, M. Celia,
and S. Gasda. 2008. CO2 Capture Project
Field Study of A Wellbore from a Natural
CO2 Reservoir. Presented at the 7th
Annual Conference on Carbon Capture
and Sequestration, May 5–8, 2008.
Pittsburgh, Pennsylvania.
DOE. 2007a. Carbon Sequestration
Technology Roadmap and Program Plan.
U.S. Department of Energy, Office of
Fossil Energy, National Energy
Technology Laboratory. April, 2007.
DOE. 2007b. Carbon Sequestration Atlas of
the U.S. and Canada. U.S. Department of
Energy, Office of Fossil Energy, National
Energy Technology Laboratory. March,
2007.
DOE–NETL. 2007. Cost and Performance
Baseline for Fossil Energy Plants, Vol. 1.
U.S. Department of Energy, Office of
Fossil Energy, National Energy
Technology Laboratory. DOE/NETL–
2007–1281.
Dooley, J.J., R.T. Dahowski, and C. Davidson.
2008. On the Long-term Average Cost of
CO2 Transportation and Storage. PNNL–
17389.
Dooley, J.J., R.T. Dahowski, C.L. Davidson,
M.A. Wise, N. Gupta, S.H. Kim, and E.L.
Malone. 2006. Carbon Dioxide Capture
and Geologic Storage: A Core Element of
a Global Energy Technology Strategy to
Address Climate Change. A Technology
Report from the Second Phase of the
Global Energy Technology Strategy
Program. April, 2006.
Doughty, C. 2007. Modeling Geologic Storage
of Carbon Dioxide: Comparison of NonHysteretic and Hysteretic Characteristic
Curves. Energy Conversion and
Management, 48, 1768–1781.
Doughty, C., Freifeld, B. M., and R.C. Trautz.
2007. Site Characterization for CO2
Geologic Storage and Vice Versa: The
Frio Brine Pilot, Texas, USA as a Case
Study. Environmental Geology, 54,
1635–1656.
E:\FR\FM\25JYP2.SGM
25JYP2
jlentini on PROD1PC65 with PROPOSALS2
Federal Register / Vol. 73, No. 144 / Friday, July 25, 2008 / Proposed Rules
Duguid, A., M. Radonjic, R. Bruant, T.
Mandecki, G. Scherer, and M. Celia.
2004. The Effect of CO2 Sequestration on
Oil Well Cements. Presented at the
Greenhouse Gas Technologies
Conference (GHGT–7), September 5–9,
2004. Vancouver, Canada.
Flett, M., R. Gurton, and G. Weir. 2007.
Heterogeneous Saline Formations for
Carbon Dioxide Disposal: Impact of
Varying Heterogeneity on Containment
and Trapping.
Fivelstad, S., R., Waagbo, F.Z. Solveig, A.C.D.
Hosfeld, A.B. Olsen, and S. Stefansson.
2003. A Major Water Quality Problem in
Smolt Farms: Combined Effects of
Carbon Dioxide, Reduced pH, and
Aluminum on Atlantic Salmon (Salmo
salar L.) Smolts: Physiology and Growth.
Aquaculture, 215, 339–357.
Garner J., K. Martin, D. McCalvin, and D.
McDaniel. 2002. At the Ready:
Subsurface Safety Valves. Oilfield
Review, 14(4), 52–64. https://
www.slb.com/media/services/resources/
oilfieldreview/ors02/win02/p52_64.pdf.
GEO–SEQ. 2004. GEO–SEQ Best Practices
Manual. Geologic Carbon Dioxide
Sequestration: Site Evaluation to
Implementation. Lawrence Berkeley
National Laboratory. Paper LBNL–56623.
https://www.netl.doe.gov/technologies/
carbon_seq/refshelf/GEOSEQ_BestPract_Rev1-1.pdf.
Harris, J.M. and R.T. Langan. 2001. Crosswell
Seismic Profiling: Principle to
Applications. Search and Discovery
Article #40030. https://
www.searchanddiscovery.net/
documents/geophysical/harris_langan/
index.htm.
IEA. 2005. IEA GHG Weyburn CO2
Monitoring and Storage Project. IEA
Greenhouse Gas R&D Programme. July
2005. https://www.ieagreen.org.uk/
glossies/weyburn.pdf.
IOGCC. 2007. Storage of Carbon Dioxide in
Geologic Structures; A Legal and
Regulatory Guide for States and
Provinces. Prepared by the Interstate Oil
and Gas Compact Commission.
September 25, 2007.
IPCC. 2005. IPCC Special Report on Carbon
Dioxide Capture and Storage. Prepared
by Working Group III of the
Intergovernmental Panel on Climate
Change. Metz, B., O. Davidson, H. C. de
Coninck, M. Loos, and L. A. Meyer
(eds.). New York: Cambridge University
Press.
IPCC. 2007. Climate Change 2007: Synthesis
Report: Summary for Policymakers.
Intergovernmental Panel on Climate
Change.
¨
Juhlin, C., C. Cosma, A. Forster, R. Giese, N.
Johojuntti, H. Kazemeini, B. Norden, and
K. Zinck-J2005
19:40 Jul 24, 2008
Jkt 214001
Energy. University of California,
Lawrence Livermore National
Laboratory: Proceedings of the First
National Conference on Carbon
Sequestration, February 2001. https://
www.netl.doe.gov/publications/
proceedings/01/carbon_seq/6a3.pdf.
Kutchko, B.G., B.R. Strazisar, D.A. Dzombak,
G.V. Lowry, and N. Thaulow. 2007.
Degradation of Well Cement by CO2
Under Geologic Sequestration
Conditions. Environmental Science and
Technology, 41, 4787–4792.
Lewicki, J.L., J.T. Birkholzer, and C.F. Tsang.
2006. Natural and Industrial Analogues
for Leakage of CO2 from Storage
Reservoirs—Identification of Features,
Events, and Processes and Lessons
Learned. Journal of Environmental
Geology, 52(3), 457–467.
Li, Q., Z. Wu, Y. Bai, X. Yin, and X. Li. 2006.
Thermo-hydro-mechanical Modeling of
CO2 Sequestration System Around Fault
Environment. Pure and Applied
Geophysics, 163(11–12), 2585–2593.
McGee, K.A. and T.M. Gerlach. 1998. Annual
Cycle of Magmatic CO2 in a Tree-Kill
Soil at Mammoth Mountain, California:
Implications for Soil Acidification.
Geology, 26(5), 463–466.
Meyer, J.P. 2007. Summary of Carbon
Dioxide Enhanced Oil Recovery (CO2
EOR) Injection Well Technology.
Prepared for the American Petroleum
Institute. https://www.api.org/
aboutoilgas/sectors/explore/upload/
07APICO2EORReportFinal.pdf.
Miles, N.L., K.J. Davis, and J.C. Wyngaard.
2005. Detecting Leaks from Belowground
CO2 Reservoirs Using Eddy Covariance.
In Carbon Dioxide Capture for Storage in
Deep Geologic Formations. Volume 2.
D.C. Thomas and S.M. Benson (eds.).
Newmark, R. 2003. Electrical Resistance
Tomography Field Trials to Image CO2
Sequestration. American Geophysical
Union Fall Meeting, abstract #H21A–08.
Nicot, J.P. and S.D. Hovorka. 2008. Role of
Geochemical Monitoring in Geologic
Sequestration. Presented at the CO2
Geologic Sequestration Technical
Workshop on Measurement, Monitoring,
and Verification, January 16, 2008. New
Orleans, LA.
Nimz, G.J. and G.B. Hudson. 2005. The Use
of Noble Gas Isotopes for Monitoring
Leakage of Geologically Stored CO2 . In
Carbon Dioxide Capture for Storage in
Deep Geologic Formations. Volume 2.
D.C. Thomas and S.M. Benson (eds.).
Nooner, S.L., M.A. Zumberge, O. Eiken, T.
Stenvold, and G.S. Sasagawa. 2003.
Seafloor Micro-gravity Survey of the
Sleipner CO2 Sequestration Site.
American Geophysical Union, Fall
Meeting, abstract # GC31A–01.
Norwegian Oil Industry Association. 2001.
Recommended Guidelines for the
Application of IEC 61508 and IEC 61511
in the Petroleum Activities on the
Norwegian Continental Shelf.
NRC. 2007. Models in Environmental
Regulatory Decision Making. National
Research Council of The National
Academies. Washington, DC.: The
National Academies Press.
PO 00000
Frm 00043
Fmt 4701
Sfmt 4702
43533
Obi, E.I., and M.J. Blunt. 2006. Streamlinebased Simulation of Carbon Dioxide
Storage in a North Sea Aquifer. Water
Resources Research, 42, W03414.
Oldenburg, C.M. 2007. Joule-Thomson
Cooling Due to CO2 Injection into
Natural Gas Reservoirs. Energy
Conversion and Management, 48(6),
1808–1815.
Pickles, W.L. and W.A. Cover. 2005.
Hyperspectral Geobotanical Remote
Sensing for CO2 Storage Monitoring. In
Carbon Dioxide Capture for Storage in
Deep Geologic Formations. Volume 2.
D.C. Thomas and S.M. Benson (eds.).
Rutqvist, J., J. Birkholzer, F. Cappa, and C.F.
Tsang. 2007. Estimating Maximum
Sustainable Injection Pressure During
Geological Sequestration of CO2 Using
Coupled Fluid Flow and Geomechanical
Fault-slip Analysis. Energy Conversion
and Management, 48(6), 1798–1807.
Sams, W.N., G. Bromhal, S. Jikich, T. Ertekin,
and D.H. Smith. 2005. Field-Project
Designs for Carbon Dioxide
Sequestration and Enhanced Coalbed
Methane Production. Energy & Fuels
2005, 19, 2287–2297.
Streit, J.E. and R.R. Hillis. 2004. Estimating
Fault Stability and Sustainable Fluid
Pressures for Underground Storage of
CO2 in Porous Rock. Energy, 29(9–10),
1445–1456.
Streit, J. E. and A.F. Siggins. 2004. Predicting,
Monitoring and Controlling
Geomechanical Effects of CO2 Injection.
Presented at the 7th International
Conference on Greenhouse Gas Control
Technologies (GHGT–7), September
2004. Vancouver, Canada.
Turley, C., J.C. Blackford, S. Widdicombe, D.
Lowe, P.D. Nightingale, and A.P. Rees.
2006. Reviewing the Impact of Increased
Atmospheric CO2 on Oceanic pH and the
Marine Ecosystem. In Avoiding
Dangerous Climate Change (2006).
Cambridge, UK, 65–70.
USEPA 1990. Federal Financial
Responsibility Demonstrations for
Owners and Operators of Class II Oiland Gas-Related Injection Wells. EPA
570/9–90–003. May, 1990.
USEPA 2008a. Climate Change—Climate
Economics. Economic Analyses. Last
updated May 7, 2008. https://
www.epa.gov/climatechange/economics/
economicanalyses.html.
USEPA 2008b. Vulnerability Evaluation
Framework for Geologic Sequestration of
Carbon Dioxide.
USEPA 2008c. Regulatory Alternatives for
Managing the Underground Injection of
Carbon Dioxide for Geologic
Sequestration.
USEPA 2008d. Computational Modeling of
Underground Injection of Carbon
Dioxide for Determination of Area-ofReview and Potential Risk to
Underground Sources of Drinking Water.
USEPA 2008e. Risk and Occurrence
Document for Geologic Sequestration
Proposed Rulemaking.
USEPA 2008f. Geologic CO2 Sequestration
Activity Baseline Document.
USEPA 2008g. Information Collection
Request for the Federal Requirements
E:\FR\FM\25JYP2.SGM
25JYP2
43534
Federal Register / Vol. 73, No. 144 / Friday, July 25, 2008 / Proposed Rules
Under the Underground Injection
Control Program for Carbon Dioxide
Geologic Sequestration Wells.
USEPA 2008h. Geologic CO2 Sequestration
Technology and Cost Analysis.
USEPA. 2007. Using the Class V
Experimental Technology Well
Classification for Pilot Carbon Geologic
Sequestration Projects—UIC Program
Guidance # 83. March 2007.
Vodnik, D., D. Kastele, H. Pfanz, I. Macek,
and B. Turk. 2006. Small-scale Spatial
Variation in Soil CO2 Concentration in a
Natural Carbon Dioxide Spring and
Some Related Plant Responses.
Geoderma, 133 (3–4), 309–319.
Westermark, R. V., D. Dauben, D., and S.
Robinowitz. 2004. Enhanced Oil
Recovery with Horizontal Waterflooding,
Osage County, Oklahoma. SPE 89373.
Presented at the 2004 SPE/DOE
Fourteenth Symposium on Improved Oil
Recovery, April 17–21, 2004. Tulsa, OK.
WRI. 2007. Logan, J., Venezia, and K. Larsen.
Issue Brief: Opportunities and
Challenges for Carbon Capture and
Sequestration. WRI Issue Brief, No. 1.
World Resources Institute. October,
2007. Washington, DC.
List of Subjects
40 CFR Part 144
Environmental protection,
Administrative practice and procedure,
Confidential business information,
Hazardous waste, Indians—lands,
Reporting and recordkeeping
requirements, Surety bonds, Water
supply.
40 CFR Part 146
Environmental protection, Hazardous
waste, Indian lands, Reporting and
recordkeeping requirements, Water
supply.
Dated: July 15, 2008.
Stephen L. Johnson,
Administrator.
(f) * * *
(1) * * *
(viii) Subpart H of this part sets forth
requirements for owners or operators of
Class VI injection wells.
*
*
*
*
*
(g) Scope of the permit or rule
requirement. The UIC Permit Program
regulates underground injections by six
classes of wells (see definition of ‘‘well
injection,’’ § 144.3). The six classes of
wells are set forth in § 144.6. All owners
or operators of these injection wells
must be authorized either by permit or
rule by the Director. * * *
*
*
*
*
*
3. Section 144.6 is amended as
follows:
a. Revising paragraph (e); and
b. Adding new paragraph (f).
§ 144.39 Modification or revocation and
reissuance of permits.
§ 144.6
Subpart E—Permit Conditions
Classification of wells.
*
*
*
*
*
(e) Class V. Injection wells not
included in Class I, II, III, IV, or VI.
Specific types of Class V injection wells
are described in § 144.81.
(f) Class VI. Wells used for geologic
sequestration of carbon dioxide beneath
the lowermost formation containing a
USDW.
Subpart B—General Program
Requirements
4. Adding § 144.15 to read as follows.
§ 144.15 Prohibition of non-experimental
Class V wells for geologic sequestration.
The construction, operation or
maintenance of any non-experimental
Class V geologic sequestration well is
prohibited.
5. Adding § 144.18 to read as follows.
§ 144.18
Requirements for Class VI wells.
For the reasons set forth in the
preamble, title 40 chapter I of the Code
of Federal Regulations is proposed to be
amended as follows:
Owners or operators of Class VI wells
must obtain a permit. Class VI wells are
not authorized by rule to inject.
PART 144—UNDERGROUND
INJECTION CONTROL PROGRAM
6. Section 144.36 is amended by
revising the first two sentences in
paragraph (a) to read as follows:
1. The authority citation for part 144
continues to read as follows:
Authority: 42 U.S.C. 300f et seq.; Resource
Conservation and Recovery Act, 42 U.S.C.
6901 et seq.
jlentini on PROD1PC65 with PROPOSALS2
Subpart A—General Provisions
2. Section 144.1 is amended as
follows:
a. Adding new paragraph (f)(1)(viii);
and
b. Revising the first two sentences in
paragraph (g) introductory text.
§ 144.1
*
*
Purpose and scope of part 144.
*
VerDate Aug<31>2005
*
*
17:19 Jul 24, 2008
Jkt 214001
Subpart D—Authorization by Permit
§ 144.36
Duration of permits.
(a) Permits for Class I and V wells
shall be effective for a fixed term not to
exceed 10 years. UIC Permits for Class
II, III and VI wells shall be issued for a
period up to the operating life of the
facility. * * *
*
*
*
*
*
7. Section 144.39 is amended by
revising the second sentence in
paragraph (a) introductory text and by
revising the second sentence in
paragraph (a)(3) introductory text to
read as follows:
PO 00000
Frm 00044
Fmt 4701
Sfmt 4702
*
*
*
*
*
(a) * * * For Class I hazardous waste
injection wells, Class II, Class III or
Class VI wells the following may be
causes for revocation and reissuance as
well as modification; and for all other
wells the following may be cause for
revocation or reissuance as well as
modification when the permittee
requests or agrees. * * *
*
*
*
*
*
(3) * * * Permits other than for Class
I hazardous waste injection wells, Class
II, Class III or Class VI wells may be
modified during their terms for this
cause only as follows: * * *
*
*
*
*
*
8. Section 144.51 is amended by
revising the first sentence in paragraph
(q)(1) and the first sentence in paragraph
(q)(2) to read as follows:
§ 144.51 Conditions applicable to all
permits.
*
*
*
*
*
(q) * * *
(1) The owner or operator of a Class
I, II, III or VI well permitted under this
part shall establish mechanical integrity
prior to commencing injection or on a
schedule determined by the Director.
Thereafter the owner or operator of
Class I, II, and III wells must maintain
mechanical integrity as defined in
§ 146.8 and the owner or operator of
Class VI wells must maintain
mechanical integrity as defined in
§ 146.89 of this chapter. * * *
(2) When the Director determines that
a Class I, II, III or VI well lacks
mechanical integrity pursuant to § 146.8
or § 146.89 for Class VI of this chapter,
he/she shall give written notice of his/
her determination to the owner or
operator. * * *
*
*
*
*
*
9. Section 144.52 is amended by
revising paragraph (a)(8) to read as
follows:
§ 144.52
Establishing permit conditions.
(a) * * *
(8) Mechanical integrity. A permit for
any Class I, II, III or VI well or injection
project which lacks mechanical integrity
shall include, and for any Class V well
may include, a condition prohibiting
injection operations until the permittee
shows to the satisfaction of the Director
under § 146.08 or § 146.89 for Class VI
that the well has mechanical integrity.
*
*
*
*
*
E:\FR\FM\25JYP2.SGM
25JYP2
Federal Register / Vol. 73, No. 144 / Friday, July 25, 2008 / Proposed Rules
10. Section 144.55 is amended by
revising the first sentence in paragraph
(a) to read as follows:
§ 144.55
Corrective action.
(a) Coverage. Applicants for Class I, II,
(other than existing), III or VI injection
well permits shall identify the location
of all known wells within the injection
well’s area of review which penetrate
the injection zone, or in the case of
Class II wells operating over the fracture
pressure of the injection formation, all
known wells within the area of review
penetrating formations affected by the
increase in pressure. Applicants for
Class VI shall perform corrective action
as specified in § 146.84.* * *
*
*
*
*
*
Subpart G—Requirements for Owners
and Operators of Class V Injection
Wells
11. Section 144.80 is amended by
revising the first sentence in paragraph
(e) and by adding paragraph (f) to read
as follows:
§ 144.80
What is a Class V injection well?
*
*
*
*
*
(e) Class V. Injection wells not
included in Class I, II, III, IV or VI.
* * *
(f) Class VI. Wells used for geologic
sequestration of carbon dioxide.
PART 146—UNDERGROUND
INJECTION CONTROL PROGRAM:
CRITERIA AND STANDARDS
12. The authority citation for part 146
continues to read as follows:
Authority: Safe Drinking Water Act 42,
U.S.C. 300f et seq.; Resource Conservation
and Recovery Act, 42 U.S.C. 6901 et seq.
13. Section 146.5 is amended as
follows:
a. Revising the first sentence in
paragraph (e) introductory text; and
b. Adding paragraph (f).
§ 146.5
Classification of injection wells.
jlentini on PROD1PC65 with PROPOSALS2
*
*
*
*
*
(e) Class V. Injection wells not
included in Class I, II, III, IV or VI.
* * *
*
*
*
*
*
(f) Class VI. Wells used for geologic
sequestration of carbon dioxide beneath
the lowermost formation containing an
underground source of drinking water
(USDW).
14. Subpart H is added to read as
follows:
Subpart H—Criteria and Standards
Applicable to Class VI Wells
Sec.
146.81 Applicability.
VerDate Aug<31>2005
17:19 Jul 24, 2008
Jkt 214001
146.82 Required Class VI permit
information.
146.83 Minimum criteria for siting.
146.84 Area of review and corrective action.
146.85 Financial responsibility.
146.86 Injection well construction
requirements.
146.87 Logging, sampling, and testing prior
to injection well operation.
146.88 Injection well operating
requirements.
146.89 Mechanical integrity.
146.90 Testing and monitoring
requirements.
146.91 Reporting requirements.
146.92 Injection well plugging.
146.93 Post-injection site care and site
closure.
146.94 Emergency and remedial response.
Subpart H—Criteria and Standards
Applicable to Class VI Wells
§ 146.81
Applicability.
(a) This subpart establishes criteria
and standards for underground injection
control programs to regulate Class VI
carbon dioxide geologic sequestration
injection wells.
(b) This subpart applies to wells used
to inject carbon dioxide specifically for
the purpose of geologic sequestration,
i.e., the long-term containment of a
gaseous, liquid or supercritical carbon
dioxide stream in subsurface geologic
formations.
(c) This subpart applies to owners and
operators of permit or rule-authorized
Class I industrial, Class II, or Class V
experimental carbon dioxide injection
projects who seek to apply for a Class
VI geologic sequestration permit for
their well or wells. If the Director
determines that USDWs will not be
endangered, such wells are exempt, at
the Director’s discretion, from the casing
and cementing requirements at
§§ 146.86(b) and 146.87(a)(1) through
(3).
(d) Definitions. The following
definitions apply to this subpart. To the
extent that these definitions conflict
with those in § 146.3 these definitions
govern:
Area of review means the region
surrounding the geologic sequestration
project that may be impacted by the
injection activity. The area of review is
based on computational modeling that
accounts for the physical and chemical
properties of all phases of the injected
carbon dioxide stream.
Carbon dioxide plume means the
underground extent, in three
dimensions, of an injected carbon
dioxide stream.
Carbon dioxide stream means carbon
dioxide that has been captured from an
emission source (e.g., a power plant),
plus incidental associated substances
derived from the source materials and
PO 00000
Frm 00045
Fmt 4701
Sfmt 4702
43535
the capture process, and any substances
added to the stream to enable or
improve the injection process. This
subpart does not apply to any carbon
dioxide stream that meets the definition
of a hazardous waste under 40 CFR part
261.
Confining zone means a geologic
formation, group of formations, or part
of a formation stratigraphically
overlying the injection zone that acts as
a barrier to fluid movement.
Corrective action means the use of
Director approved methods to assure
that wells within the area of review do
not serve as conduits for the movement
of fluids into underground sources of
drinking water (USDW).
Geologic sequestration means the
long-term containment of a gaseous,
liquid or supercritical carbon dioxide
stream in subsurface geologic
formations. This term does not apply to
its capture or transport.
Geologic sequestration project means
an injection well or wells used to
emplace a carbon dioxide stream
beneath the lowermost formation
containing a USDW. It includes the
subsurface three-dimensional extent of
the carbon dioxide plume, associated
pressure front, and displaced brine, as
well as the surface area above that
delineated region.
Injection zone means a geologic
formation, group of formations, or part
of a formation that is of sufficient areal
extent, thickness, porosity, and
permeability to receive carbon dioxide
through a well or wells associated with
a geologic sequestration project.
Post-injection site care means
appropriate monitoring and other
actions (including corrective action)
needed following cessation of injection
to assure that USDWs are not
endangered as required under § 146.93.
Pressure front means the zone of
elevated pressure that is created by the
injection of carbon dioxide into the
subsurface. For the purposes of this
subpart, the pressure front of a carbon
dioxide plume refers to a zone where
there is a pressure differential sufficient
to cause the movement of injected fluids
or formation fluids into a USDW.
Site closure the point/time, as
determined by the Director following
the requirements under § 146.93, at
which the owner or operator of a GS site
is released from post-injection site care
responsibilities.
Transmissive fault or fracture means
a fault or fracture that has sufficient
permeability and vertical extent to allow
fluids to move between formations.
E:\FR\FM\25JYP2.SGM
25JYP2
43536
Federal Register / Vol. 73, No. 144 / Friday, July 25, 2008 / Proposed Rules
jlentini on PROD1PC65 with PROPOSALS2
§ 146.82 Required Class VI permit
information.
This section sets forth the information
which the owner or operator must
submit to the Director in order to be
permitted as a Class VI well. The
application for a permit for construction
and operation of a Class VI well must
include the following:
(a) Information required in 40 CFR
144.31(e)(1) through (6);
(b) A map showing the injection
well(s) for which a permit is sought and
the applicable area of review. Within
the area of review, the map must show
the number, or name and location of all
injection wells, producing wells,
abandoned wells, plugged wells or dry
holes, deep stratigraphic boreholes,
State or EPA approved subsurface
cleanup sites, surface bodies of water,
springs, mines (surface and subsurface),
quarries, water wells and other
pertinent surface features including
structures intended for human
occupancy and roads. The map should
also show faults, if known or suspected.
Only information of public record is
required to be included on this map;
(c) The area of review based on
modeling, using data obtained during
logging and testing of the well and the
formation as required by paragraphs (l),
(r), and (s) of this section;
(d) Information on the geologic
structure and hydrogeologic properties
of the proposed storage site and
overlying formations, including:
(1) Maps and cross sections of the area
of review;
(2) Location, orientation, and
properties of known or suspected faults
and fractures that may transect the
confining zone(s) in the area of review
and a determination that they would not
interfere with containment;
(3) Information on seismic history
including the presence and depth of
seismic sources and a determination
that the seismicity would not interfere
with containment;
(4) Data on the depth, areal extent,
thickness, mineralogy, porosity,
permeability and capillary pressure of
the injection and confining zone(s);
including geology/facies changes based
on field data which may include
geologic cores, outcrop data, seismic
surveys, well logs, and names and
lithologic descriptions;
(5) Geomechanical information on
fractures, stress, ductility, rock strength,
and in situ fluid pressures within the
confining zone; and
(6) Geologic and topographic maps
and cross sections illustrating regional
geology, hydrogeology, and the geologic
structure of the local area.
VerDate Aug<31>2005
17:19 Jul 24, 2008
Jkt 214001
(e) A tabulation of all wells within the
area of review which penetrate the
injection or confining zone(s). Such data
must include a description of each
well’s type, construction, date drilled,
location, depth, record of plugging and/
or completion, and any additional
information the Director may require;
(f) Maps and stratigraphic cross
sections indicating the general vertical
and lateral limits of all USDWs, water
wells and springs within the area of
review, their positions relative to the
injection zone(s) and the direction of
water movement, where known;
(g) Baseline geochemical data on
subsurface formations, including all
USDWs in the area of review;
(h) Proposed operating data:
(1) Average and maximum daily rate
and volume of the carbon dioxide
stream;
(2) Average and maximum injection
pressure;
(3) The source of the carbon dioxide
stream; and
(4) An analysis of the chemical and
physical characteristics of the carbon
dioxide stream;
(i) The compatibility of the carbon
dioxide stream with fluids in the
injection zone and minerals in both the
injection and the confining zone(s),
based on the results of the formation
testing program, and with the materials
used to construct the well;
(j) Proposed formation testing
program to obtain an analysis of the
chemical and physical characteristics of
the injection zone and confining zone;
(k) Proposed stimulation program and
a determination that stimulation will
not interfere with containment;
(l) The results of the formation testing
program as required in paragraph (j) of
this section;
(m) Proposed procedure to outline
steps necessary to conduct injection
operation;
(n) Schematic or other appropriate
drawings of the surface and subsurface
construction details of the well;
(o) Injection well construction
procedures that meet the requirements
of § 146.86;
(p) Proposed area of review and
corrective action plan that meets the
requirements under § 146.84;
(q) The status of corrective action on
wells in the area of review;
(r) All available logging and testing
program data on the well required by
§ 146.87;
(s) A demonstration of mechanical
integrity pursuant to § 146.89;
(t) A demonstration, satisfactory to the
Director, that the applicant has met the
financial responsibility requirements
under § 146.85;
PO 00000
Frm 00046
Fmt 4701
Sfmt 4702
(u) Proposed testing and monitoring
plan required by § 146.90;
(v) Proposed injection well plugging
plan required by § 146.92(b);
(w) Proposed post-injection site care
and site closure plan required by
§ 146.93(a);
(x) Proposed emergency and remedial
response plan required by § 146.94; and
(y) Any other information requested
by the Director.
§ 146.83
Minimum criteria for siting.
(a) Owners or operators of Class VI
wells must demonstrate to the
satisfaction of the Director that the wells
will be sited in areas with a suitable
geologic system. The geologic system
must be comprised of:
(1) An injection zone of sufficient
areal extent, thickness, porosity, and
permeability to receive the total
anticipated volume of the carbon
dioxide stream;
(2) A confining zone(s) that is free of
transmissive faults or fractures and of
sufficient areal extent and integrity to
contain the injected carbon dioxide
stream and displaced formation fluids
and allow injection at proposed
maximum pressures and volumes
without initiating or propagating
fractures in the confining zone(s); and
(b) At the Director’s discretion,
owners or operators of Class VI wells
must identify and characterize
additional zones that will impede
vertical fluid movement, are free of
faults and fractures that may interfere
with containment, allow for pressure
dissipation, and provide additional
opportunities for monitoring, mitigation
and remediation.
§ 146.84
action.
Area of review and corrective
(a) The area of review is the region
surrounding the geologic sequestration
project that may be impacted by the
injection activity. The area of review is
based on computational modeling that
accounts for the physical and chemical
properties of all phases of the injected
carbon dioxide stream.
(b) The owner or operator of a Class
VI well must prepare, maintain, and
comply with a plan to delineate the area
of review for a proposed geologic
sequestration project, periodically
reevaluate the delineation, and perform
corrective action that meets the
requirements of this section and is
acceptable to the Director. As a part of
the permit application for approval by
the Director, the owner or operator must
submit an area of review and corrective
action plan that includes the following
information:
(1) The method for delineating the
area of review that meets the
E:\FR\FM\25JYP2.SGM
25JYP2
jlentini on PROD1PC65 with PROPOSALS2
Federal Register / Vol. 73, No. 144 / Friday, July 25, 2008 / Proposed Rules
requirements of paragraph (c) of this
section, including the model to be used,
assumptions that will be made, and the
site characterization data on which the
model will be based;
(2) A description of:
(i) The minimum fixed frequency, not
to exceed 10 years, the owner or
operator proposes to reevaluate the area
of review;
(ii) The monitoring and operational
conditions that would warrant a
reevaluation of the area of review prior
to the next scheduled reevaluation as
determined by the minimum fixed
frequency established in paragraph
(b)(2)(i) of this section.
(iii) How monitoring and operational
data (e.g., injection rate and pressure)
will be used to inform an area of review
reevaluation; and
(iv) How corrective action will be
conducted to meet the requirements of
paragraph (d) of this section, including
what corrective action will be
performed prior to injection and what,
if any, portions of the area of review
will have corrective action addressed on
a phased basis and how the phasing will
be determined; how corrective action
will be adjusted if there are changes in
the area of review; and how site access
will be guaranteed for future corrective
action.
(c) Owners or operators of Class VI
wells must perform the following
actions to delineate the area of review,
identify all wells that require corrective
action, and perform corrective action on
those wells:
(1) Predict, using computational
modeling, the projected lateral and
vertical migration of the carbon dioxide
plume and formation fluids in the
subsurface from the commencement of
injection activities until the plume
movement ceases, pressure differentials
sufficient to cause the movement of
injected fluids or formation fluids into
a USDW are no longer present, or after
a fixed time period as determined by the
Director. The model must:
(i) Be based on detailed geologic data
collected to characterize the injection
zone, confining zone and any additional
zones; and anticipated operating data,
including injection pressures, rates and
total volumes over the proposed life of
the geological sequestration project;
(ii) Take into account any geologic
heterogeneities, data quality, and their
possible impact on model predictions;
and
(iii) Consider potential migration
through faults, fractures, and artificial
penetrations.
(2) Using methods approved by the
Director, identify all penetrations,
including active and abandoned wells
VerDate Aug<31>2005
17:19 Jul 24, 2008
Jkt 214001
and underground mines, in the area of
review that may penetrate the confining
zone. Provide a description of each
well’s type, construction, date drilled,
location, depth, record of plugging and/
or completion, and any additional
information the Director may require;
and
(3) Determine which abandoned wells
in the area of review have been plugged
(as required by § 146.92) in a manner
that prevents the movement of carbon
dioxide or associated fluids that may
endanger USDWs.
(d) Owners or operators of Class VI
wells must perform corrective action on
all wells in the area of review that are
determined to need corrective action
using methods necessary to prevent the
movement of fluid into or between
USDWs including use of corrosion
resistant materials, where appropriate.
(e) If monitoring data indicate an
endangerment to USDWs, the owner or
operator must notify the Director and
cease operations as required by § 146.94.
(f) At the minimum fixed frequency,
not to exceed 10 years, as specified in
the area of review and corrective action
plan, or when monitoring and
operational conditions warrant, owners
or operators must:
(1) Reevaluate the area of review in
the same manner specified in paragraph
(c)(1) of this section;
(2) Identify all wells in the
reevaluated area of review that require
corrective action in the same manner
specified in paragraph (c)(2) of this
section;
(3) Perform corrective action on wells
requiring corrective action in the
reevaluated area of review in the same
manner specified in paragraph (c)(3) of
this section; and
(4) Submit an amended area of review
and corrective action plan or
demonstrate to the Director through
monitoring data and modeling results
that no amendment to the area of review
and corrective action plan is needed.
(g) The emergency and remedial
response plan (as required by § 146.94)
and a demonstration of financial
responsibility (as described by § 146.85)
must account for the entire area of
review, regardless of whether or not
corrective action in the area of review is
phased.
§ 146.85
Financial responsibility.
(a) The owner or operator must
demonstrate and maintain financial
responsibility and resources for
corrective action (that meets the
requirements of § 146.84), injection well
plugging (that meets the requirements of
§ 146.92), post-injection site care and
site closure (that meets the requirements
PO 00000
Frm 00047
Fmt 4701
Sfmt 4702
43537
of § 146.93), and emergency and
remedial response (that meets the
requirements of § 146.94) in a manner
prescribed by the Director until:
(1) The Director receives and
approves the completed post-injection
site care and site closure plan; and
(2) The Director determines that the
site has reached the end of the postinjection site care period.
(b) The owner or operator must
provide to the Director, at a frequency
determined by the Director, written
updates of adjustments to the cost
estimate to account for any amendments
to the area of review and corrective
action plan (§ 146.84), the injection well
plugging plan (§ 146.92), and the postinjection site care and site closure plan
(§ 146.93).
(c) The owner or operator must notify
the Director of adverse financial
conditions such as bankruptcy, that may
affect the ability to carry out injection
well plugging and post-injection site
care and site closure.
(d) The operator must provide an
adjustment of the cost estimate to the
Director if the Director has reason to
believe that the original demonstration
is no longer adequate to cover the cost
of injection well plugging (as required
by § 146.92) and post-injection site care
and site closure (as required by
§ 146.93).
§ 146.86 Injection well construction
requirements.
(a) General. The owner or operator
must ensure that all Class VI wells are
constructed and completed to:
(1) Prevent the movement of fluids
into or between USDWs or into any
unauthorized zones;
(2) Permit the use of appropriate
testing devices and workover tools; and
(3) Permit continuous monitoring of
the annulus space between the injection
tubing and long string casing.
(b) Casing and Cementing of Class VI
Wells.
(1) Casing and cement or other
materials used in the construction of
each Class VI well must have sufficient
structural strength and be designed for
the life of the geologic sequestration
project. All well materials must be
compatible with fluids with which the
materials may be expected to come into
contact and meet or exceed standards
developed for such materials by the
American Petroleum Institute, ASTM
International, or comparable standards
acceptable to the Director. The casing
and cementing program must be
designed to prevent the movement of
fluids into or between USDWs. In order
to allow the Director to determine and
specify casing and cementing
E:\FR\FM\25JYP2.SGM
25JYP2
jlentini on PROD1PC65 with PROPOSALS2
43538
Federal Register / Vol. 73, No. 144 / Friday, July 25, 2008 / Proposed Rules
requirements, the owner or operator
must provide the following information:
(i) Depth to the injection zone;
(ii) Injection pressure, external
pressure, internal pressure and axial
loading;
(iii) Hole size;
(iv) Size and grade of all casing strings
(wall thickness, external diameter,
nominal weight, length, joint
specification and construction material);
(v) Corrosiveness of the carbon
dioxide stream, and formation fluids;
(vi) Down-hole temperatures;
(vii) Lithology of injection and
confining zones;
(viii) Type or grade of cement; and
(ix) Quantity, chemical composition,
and temperature of the carbon dioxide
stream.
(2) Surface casing must extend
through the base of the lowermost
USDW and be cemented to the surface.
(3) At least one long string casing,
using a sufficient number of
centralizers, must extend to the
injection zone and must be cemented by
circulating cement to the surface in one
or more stages.
(4) Circulation of cement may be
accomplished by staging. The Director
may approve an alternative method of
cementing in cases where the cement
cannot be recirculated to the surface,
provided the owner or operator can
demonstrate by using logs that the
cement does not allow fluid movement
behind the well bore.
(5) Cement and cement additives must
be compatible with the carbon dioxide
stream and formation fluids and of
sufficient quality and quantity to
maintain integrity over the design life of
the geologic sequestration project. The
integrity and location of the cement
shall be verified using technology
capable of evaluating cement quality
radially and identifying the location of
channels to ensure that USDWs are not
endangered.
(c) Tubing and packer.
(1) All owner and operators of Class
VI wells must inject fluids through
tubing with a packer set at a depth
opposite a cemented interval at the
location approved by the Director.
(2) In order for the Director to
determine and specify requirements for
tubing and packer, the owner or
operator must submit the following
information:
(i) Depth of setting;
(ii) Characteristics of the carbon
dioxide stream (chemical content,
corrosiveness, temperature, and
density);
(iii) Injection pressure;
(iv) Annular pressure;
VerDate Aug<31>2005
17:19 Jul 24, 2008
Jkt 214001
(v) Injection rate (intermittent or
continuous) and volume of the carbon
dioxide stream;
(vi) Size of casing; and
(vii) Tubing tensile, burst, and
collapse strengths.
§ 146.87 Logging, sampling, and testing
prior to injection well operation.
(a) During the drilling and
construction of a Class VI injection well,
the owner or operator must run
appropriate logs, surveys and tests to
determine or verify the depth, thickness,
porosity, permeability, and lithology of,
and the salinity of any formation fluids
in, all relevant geologic formations to
assure conformance with the injection
well construction requirements under
§ 146.86, and to establish accurate
baseline data against which future
measurements may be compared. The
owner or operator must submit to the
Director a descriptive report prepared
by a knowledgeable log analyst that
includes an interpretation of the results
of such logs and tests. At a minimum,
such logs and tests must include:
(1) Deviation checks during drilling
on all holes constructed by drilling a
pilot hole which are enlarged by
reaming or another method. Such
checks must be at sufficiently frequent
intervals to determine the location of
the borehole and to assure that vertical
avenues for fluid movement in the form
of diverging holes are not created during
drilling; and
(2) Before and upon installation of the
surface casing:
(i) Resistivity, spontaneous potential,
and caliper logs before the casing is
installed; and
(ii) A cement bond and variable
density log, and a temperature log after
the casing is set and cemented.
(3) Before and upon installation of the
long string casing:
(i) Resistivity, spontaneous potential,
porosity, caliper, gamma ray, fracture
finder logs, and any other logs the
Director requires for the given geology
before the casing is installed; and
(ii) A cement bond and variable
density log, and a temperature log after
the casing is set and cemented.
(4) A series of tests designed to
demonstrate the internal and external
mechanical integrity of injection wells,
which may include:
(i) A pressure test with liquid or gas;
(ii) A tracer survey such as oxygenactivation logging;
(iii) A temperature or noise log;
(iv) A casing inspection log, if
required by the Director; and
(5) Any alternative methods that
provide equivalent or better information
and that are required of and/or
approved of by the Director.
PO 00000
Frm 00048
Fmt 4701
Sfmt 4702
(b) The owner or operator must take
and submit to the Director whole cores
or sidewall cores of the injection zone
and confining system and formation
fluid samples from the injection zone(s).
The Director may accept cores from
nearby wells if the owner or operator
can demonstrate that core retrieval is
not possible and that such cores are
representative of conditions at the well.
The Director may require the owner or
operator to core other formations in the
borehole.
(c) The owner or operator must record
the fluid temperature, pH, conductivity,
reservoir pressure and the static fluid
level of the injection zone(s).
(d) At a minimum, the owner or
operator must determine or calculate the
following information concerning the
injection and confining zone(s):
(1) Fracture pressure;
(2) Other physical and chemical
characteristics of the injection and
confining zones; and
(3) Physical and chemical
characteristics of the formation fluids in
the injection zone.
(e) Upon completion, but prior to
operation, the owner or operator must
conduct the following tests to verify
hydrogeologic characteristics of the
injection zone:
(1) A pump test; or
(2) Injectivity tests.
(f) The owner or operator must
provide the Director with the
opportunity to witness all logging and
testing by this subpart. The owner or
operator must submit a schedule of such
activities to the Director 30 days prior
to conducting the first test and submit
any changes to the schedule 30 days
prior to the next scheduled test.
§ 146.88 Injection well operating
requirements.
(a) Except during stimulation, the
owner or operator must ensure that
injection pressure does not exceed 90
percent of the fracture pressure of the
injection zone so as to assure that the
injection does not initiate new fractures
or propagate existing fractures in the
injection zone. In no case may injection
pressure initiate fractures in the
confining zone(s) or cause the
movement of injection or formation
fluids that endangers a USDW.
(b) Injection between the outermost
casing protecting USDWs and the well
bore is prohibited.
(c) The owner or operator must fill the
annulus between the tubing and the
long string casing with a non-corrosive
fluid approved by the Director. The
owner or operator must maintain on the
annulus a pressure that exceeds the
operating injection pressure, unless the
E:\FR\FM\25JYP2.SGM
25JYP2
Federal Register / Vol. 73, No. 144 / Friday, July 25, 2008 / Proposed Rules
Director determines that such
requirement might harm the integrity of
the well.
(d) Other than during periods of well
workover (maintenance) approved by
the Director in which the sealed tubingcasing annulus is of necessity
disassembled for maintenance or
corrective procedures, the owner or
operator must maintain mechanical
integrity of the injection well at all
times.
(e) The owner or operator must install
and use continuous recording devices to
monitor: The injection pressure; the
rate, volume, and temperature of the
carbon dioxide stream; and the pressure
on the annulus between the tubing and
the long string casing and annulus fluid
volume; and must install and use alarms
and automatic down-hole shut-off
systems, designed to alert the operator
and shut-in the well when operating
parameters such as annulus pressure,
injection rate or other parameters
approved by the Director diverge
beyond permitted ranges and/or
gradients specified in the permit;
(f) If a down-hole automatic shutdown
is triggered or a loss of mechanical
integrity is discovered, the owner or
operator must immediately investigate
and identify as expeditiously as possible
the cause of the shutoff. If, upon such
investigation, the well appears to be
lacking mechanical integrity, or if
monitoring required under paragraph (e)
of this section otherwise indicates that
the well may be lacking mechanical
integrity, the owner or operator must:
(1) Immediately cease injection;
(2) Take all steps reasonably
necessary to determine whether there
may have been a release of the injected
carbon dioxide stream into any
unauthorized zone;
(3) Notify the Director within 24
hours;
(4) Restore and demonstrate
mechanical integrity to the satisfaction
of the Director prior to resuming
injection; and
(5) Notify the Director when injection
can be expected to resume.
jlentini on PROD1PC65 with PROPOSALS2
§ 146.89
Mechanical integrity.
(a) A Class VI well has mechanical
integrity if:
(1) There is no significant leak in the
casing, tubing or packer; and
(2) There is no significant fluid
movement into a USDW through
channels adjacent to the injection well
bore.
(b) To evaluate the absence of
significant leaks under paragraph (a)(1)
of this section, owners or operators
must, following an initial annulus
pressure test, continuously monitor
VerDate Aug<31>2005
17:19 Jul 24, 2008
Jkt 214001
injection pressure, rate, injected
volumes, and pressure on the annulus
between tubing and long stem casing
and annulus fluid volume as specified
in § 146.88(e);
(c) At least once per year, the owner
or operator must use one of the
following methods to determine the
absence of significant fluid movement
under paragraph (a)(2) of this section:
(1) A tracer survey such as oxygenactivation logging;
(2) A temperature or noise log; or
(3) A casing inspection log, if required
by the Director.
(d) The Director may require any
other test to evaluate mechanical
integrity under paragraph (a)(1) or (a)(2)
of this section. Also, the Director may
allow the use of a test to demonstrate
mechanical integrity other than those
listed above with the written approval
of the Administrator. To obtain
approval, the Director must submit a
written request to the Administrator,
which must set forth the proposed test
and all technical data supporting its use.
The Administrator must approve the
request if it will reliably demonstrate
the mechanical integrity of wells for
which its use is proposed. Any alternate
method approved by the Administrator
will be published in the Federal
Register and may be used in all States
in accordance with applicable State law
unless its use is restricted at the time of
approval by the Administrator.
(e) In conducting and evaluating the
tests enumerated in this section or
others to be allowed by the Director, the
owner or operator and the Director must
apply methods and standards generally
accepted in the industry. When the
owner or operator reports the results of
mechanical integrity tests to the
Director, he/she shall include a
description of the test(s) and the
method(s) used. In making his/her
evaluation, the Director must review
monitoring and other test data
submitted since the previous evaluation.
(f) The Director may require
additional or alternative tests if the
results presented by the owner or
operator under paragraph (d) of this
section are not satisfactory to the
Director to demonstrate that there is no
significant leak in the casing, tubing or
packer or significant movement of fluid
into or between USDWs resulting from
the injection activity as stated in
paragraphs (a)(1) and (2) of this section.
§ 146.90 Testing and monitoring
requirements.
The owner or operator of a Class VI
well must prepare, maintain, and
comply with a testing and monitoring
plan to verify that the geologic
PO 00000
Frm 00049
Fmt 4701
Sfmt 4702
43539
sequestration project is operating as
permitted and is not endangering
USDWs. The testing and monitoring
plan must be submitted with the permit
application, for Director approval, and
must include a description of how the
owner or operator will meet the
requirements of this section. Testing
and monitoring associated with geologic
sequestration projects must, at a
minimum, include:
(a) Analysis of the carbon dioxide
stream with sufficient frequency to yield
data representative of its chemical and
physical characteristics;
(b) Installation and use, except during
well workovers as defined in
§ 146.86(d), of continuous recording
devices to monitor injection pressure,
rate and volume; the pressure on the
annulus between the tubing and the
long string casing; and the annulus fluid
volume;
(c) Corrosion monitoring of the well
materials for loss of mass, thickness,
cracking, pitting and other signs of
corrosion must be performed on a
quarterly basis to ensure that the well
components meet the minimum
standards for material strength and
performance set forth in § 146.86(b) by:
(1) Placing coupons of the well
construction materials in contact with
the carbon dioxide stream; or
(2) Routing the carbon dioxide stream
through a loop constructed with the
material used in the well; or
(3) Using an alternative method
approved by the Director;
(d) Periodic monitoring of the ground
water quality and geochemical changes
above the confining zone(s) that may be
a result of carbon dioxide movement
through the confining zone or additional
identified zones:
(1) The location and number of
monitoring wells must be based on
specific information about the geologic
sequestration project, including
injection rate and volume, geology, the
presence of artificial penetrations and
other factors;
(2) The monitoring frequency and
spatial distribution of monitoring wells
must be based on baseline geochemical
data that has been collected under
§ 146.82(a)(6) and any modeling results
in the area of review evaluation required
by § 146.84(b);
(e) A demonstration of external
mechanical integrity pursuant to
§ 146.89(c) at least once per year
throughout the duration of the geologic
sequestration project;
(f) A pressure fall-off test at least once
every five years unless more frequent
testing is required by the Director based
on site specific information;
E:\FR\FM\25JYP2.SGM
25JYP2
43540
Federal Register / Vol. 73, No. 144 / Friday, July 25, 2008 / Proposed Rules
(g) Testing and monitoring to track the
extent of the carbon dioxide plume and
the position of the pressure front by
either monitoring for pressure changes
in the first formation overlying the
confining zone or using indirect,
geophysical techniques (e.g., seismic,
electrical, gravity, or electromagnetic
surveys and/or down-hole carbon
dioxide detection tools);
(h) At the Director’s discretion,
surface air monitoring and/or soil gas
monitoring to detect movement of
carbon dioxide that could endanger a
USDW.
(1) The testing and monitoring plan
must be based on potential
vulnerabilities within the area of
review;
(2) The monitoring frequency and
spatial distribution of surface air
monitoring and/or soil gas monitoring
must reflect baseline data and the
monitoring plan must include how the
proposed monitoring will yield useful
information on the area of review
delineation and/or compliance with
standards under 40 CFR 144.12;
(i) Any additional monitoring, as
required by the Director, necessary to
support, upgrade, and improve
computational modeling of the area of
review evaluation required under
§ 146.84(b) and to determine
compliance with standards under 40
CFR 144.12; and
(j) A quality assurance and
surveillance plan for all testing and
monitoring requirements.
jlentini on PROD1PC65 with PROPOSALS2
§ 146.91
Reporting requirements.
The owner or operator must, at a
minimum, provide the following reports
to the Director, for each permitted Class
VI well:
(a) Semi-annual reports containing:
(1) Any changes to the physical,
chemical and other relevant
characteristics of the carbon dioxide
stream from the proposed operating
data;
(2) Monthly average, maximum and
minimum values for injection pressure,
flow rate and volume, and annular
pressure;
(3) A description of any event that
exceeds operating parameters for
annulus pressure or injection pressure
as specified in the permit;
(4) A description of any event which
triggers a shutdown device required
pursuant to § 146.88(e) and the response
taken;
(5) The monthly volume of the carbon
dioxide stream injected over the
reporting period and project
cumulatively;
(6) Monthly annulus fluid volume
added; and
VerDate Aug<31>2005
17:19 Jul 24, 2008
Jkt 214001
(7) The results of monitoring
prescribed under § 146.90.
(b) Report, within 30 days the results
of:
(1) Periodic tests of mechanical
integrity;
(2) Any other test of the injection well
conducted by the permittee if required
by the Director; and
(3) Any well workover.
(c) Owners or operators must submit
reports in an electronic format
acceptable to the Director. At the
discretion of the Director, other formats
may be accepted.
§ 146.92
Injection well plugging.
(a) Prior to the well plugging, the
owner or operator must flush each Class
VI injection well with a buffer fluid,
determine bottomhole reservoir
pressure, and perform a final
mechanical integrity test.
(b) Well Plugging Plan. The owner or
operator of a Class VI well must prepare,
maintain, and comply with a plan that
is acceptable to the Director. The
requirement to maintain and implement
an approved plan is directly enforceable
regardless of whether the requirement is
a condition of the permit. The well
plugging plan must be submitted as part
of the permit application and must
include the following information:
(1) Appropriate test or measure to
determine bottomhole reservoir
pressure;
(2) Appropriate testing methods to
ensure mechanical integrity as specified
in § 146.89;
(3) The type and number of plugs to
be used;
(4) The placement of each plug
including the elevation of the top and
bottom of each plug;
(5) The type and grade and quantity
of material to be used in plugging. The
material must be compatible with the
carbon dioxide stream; and
(6) The method of placement of the
plugs.
(c) Notice of intent to plug. The owner
or operator must notify the Director at
least 60 days before plugging of a well.
At this time, if any changes have been
made to the original well plugging plan,
the owner or operator must also provide
the revised well plugging plan. At the
discretion of the Director, a shorter
notice period may be allowed.
(d) Plugging report. Within 60 days
after plugging or at the time of the next
semi-annual report (whichever occurs
earlier) the owner or operator must
submit a plugging report to the Director.
If the semi-annual report is due less
than 15 days after completion of
plugging, then the report must be
submitted within 60 days after plugging.
PO 00000
Frm 00050
Fmt 4701
Sfmt 4702
The report must be certified as accurate
by the owner or operator and by the
person who performed the plugging
operation (if other than the owner or
operator.)
§ 146.93 Post-injection site care and site
closure.
(a) The owner or operator of a Class
VI well must prepare, maintain, and
comply with a plan for post-injection
site care and site closure that meets the
requirements of paragraph (a)(2) of this
section and is acceptable to the Director.
(1) The owner or operator must
submit the post-injection site care and
site closure plan as a part of the permit
application to be approved by the
Director.
(2) The post-injection site care and
site closure plan must include the
following information:
(i) The pressure differential between
pre-injection and predicted postinjection pressures in the injection zone;
(ii) The predicted position of the
carbon dioxide plume and associated
pressure front at site closure as
demonstrated in the area of review
evaluation required under § 146.84(b);
(iii) A description of post-injection
monitoring location, methods, and
proposed frequency; and
(iv) A proposed schedule for
submitting post-injection site care
monitoring results to the Director.
(3) Upon cessation of injection,
owners or operators of Class VI wells
must either submit an amended postinjection site care and site closure plan
or demonstrate to the Director through
monitoring data and modeling results
that no amendment to the plan is
needed.
(4) The owner or operator may modify
and resubmit the post-injection site care
and site closure plan for the Director’s
approval within 30 days of such change.
(b) The owner or operator shall
monitor the site following the cessation
of injection to show the position of the
carbon dioxide plume and pressure
front and demonstrate that USDWs are
not being endangered.
(1) The owner or operator shall
continue to conduct monitoring as
specified in the Director-approved postinjection site care and site closure plan
for at least 50 years following the
cessation of injection. At the Director’s
discretion, the monitoring will continue
until the geologic sequestration project
no longer poses an endangerment to
USDWs.
(2) If the owner or operator can
demonstrate to the satisfaction of the
Director before 50 years, based on
monitoring and other site-specific data,
that the geologic sequestration project
E:\FR\FM\25JYP2.SGM
25JYP2
Federal Register / Vol. 73, No. 144 / Friday, July 25, 2008 / Proposed Rules
jlentini on PROD1PC65 with PROPOSALS2
no longer poses an endangerment to
USDWs, the Director may approve an
amendment to the post-injection site
care and site closure plan to reduce the
frequency of monitoring or may
authorize site closure before the end of
the 50-year period.
(3) Prior to authorization for site
closure, the owner or operator must
submit to the Director a demonstration,
based on monitoring and other sitespecific data, that the carbon dioxide
plume and pressure front have
stabilized and that no additional
monitoring is needed to assure that the
geologic sequestration project does not
pose an endangerment to USDWs.
(4) If such a demonstration cannot be
made (i.e., if the carbon dioxide plume
and pressure front have not stabilized)
after the 50-year period, the owner or
operator must submit to the Director a
plan to continue post-injection site care.
(c) Notice of intent for site closure.
The owner or operator must notify the
Director at least 120 days before site
closure. At this time, if any changes
have been made to the original postinjection site care and site closure plan,
the owner or operator must also provide
the revised plan. At the discretion of the
Director, a shorter notice period may be
allowed.
(d) After the Director has authorized
site closure, the owner or operator must
plug all monitoring wells in a manner
which will not allow movement of
injection or formation fluids that
endangers a USDW.
(e) Once the Director has authorized
site closure, the owner or operator must
submit a site closure report within 90
days that must thereafter be retained at
a location designated by the Director.
The report must include:
(1) Documentation of appropriate
injection and monitoring well plugging
VerDate Aug<31>2005
17:19 Jul 24, 2008
Jkt 214001
as specified in § 146.92 and paragraph
(c) of this section. The owner or
operator must provide a copy of a
survey plat which has been submitted to
the local zoning authority designated by
the Director. The plat must indicate the
location of the injection well relative to
permanently surveyed benchmarks. The
owner or operator must also submit a
copy of the plat to the Regional
Administrator of the appropriate EPA
Regional Office;
(2) Documentation of appropriate
notification and information to such
State, local and tribal authorities as have
authority over drilling activities to
enable such State and local authorities
to impose appropriate conditions on
subsequent drilling activities that may
penetrate the injection and confining
zone(s); and
(3) Records reflecting the nature,
composition and volume of the carbon
dioxide stream.
(f) Each owner or operator of a Class
VI injection well must record a notation
on the deed to the facility property or
any other document that is normally
examined during title search that will in
perpetuity provide any potential
purchaser of the property the following
information:
(1) The fact that land has been used
to sequester carbon dioxide;
(2) The name of the State agency,
local authority, and/or tribe with which
the survey plat was filed, as well as the
address of the Regional Environmental
Protection Agency Office to which it
was submitted; and
(3) The volume of fluid injected, the
injection zone or zones into which it
was injected, and the period over which
injection occurred.
(g) The owner or operator must retain
for three years following site closure,
records collected during the post-
PO 00000
Frm 00051
Fmt 4701
Sfmt 4702
43541
injection site care period. The owner or
operator must deliver the records to the
Director at the conclusion of the
retention period, and the records must
thereafter be retained at a location
designated by the Director for that
purpose.
§ 146.94 Emergency and remedial
response.
(a) As part of the permit application,
the owner or operator must provide the
Director with an emergency and
remedial response plan that describes
actions to be taken to address movement
of the injection or formation fluids that
may cause an endangerment to a USDW
during construction, operation, closure
and post-closure periods.
(b) If the owner or operator obtains
evidence that the injected carbon
dioxide stream and associated pressure
front may cause an endangerment to a
USDW, the owner or operator must:
(1) Immediately cease injection;
(2) Take all steps reasonably
necessary to identify and characterize
any release;
(3) Notify the Director within 24
hours; and
(4) Implement the emergency and
remedial response plan approved by the
Director.
(c) The Director may allow the
operator to resume injection prior to
remediation if the owner or operator
demonstrates that the injection
operation will not endanger USDWs.
(d) The owner or operator must notify
the Director and obtain his approval
prior to conducting any well workover.
[FR Doc. E8–16626 Filed 7–24–08; 8:45 am]
BILLING CODE 6560–50–P
E:\FR\FM\25JYP2.SGM
25JYP2
Agencies
[Federal Register Volume 73, Number 144 (Friday, July 25, 2008)]
[Proposed Rules]
[Pages 43492-43541]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E8-16626]
[[Page 43491]]
-----------------------------------------------------------------------
Part II
Environmental Protection Agency
-----------------------------------------------------------------------
40 CFR Parts 144 and 146
Federal Requirements Under the Underground Injection Control (UIC)
Program for Carbon Dioxide (CO2) Geologic Sequestration (GS)
Wells; Proposed Rule
Federal Register / Vol. 73, No. 144 / Friday, July 25, 2008 /
Proposed Rules
[[Page 43492]]
-----------------------------------------------------------------------
ENVIRONMENTAL PROTECTION AGENCY
40 CFR Parts 144 and 146
[EPA-HQ-OW-2008-0390 FRL-8695-3]
RIN 2040-AE98
Federal Requirements Under the Underground Injection Control
(UIC) Program for Carbon Dioxide (CO2) Geologic Sequestration (GS)
Wells
AGENCY: Environmental Protection Agency (EPA).
ACTION: Proposed rule.
-----------------------------------------------------------------------
SUMMARY: EPA is proposing Federal requirements under the Safe Drinking
Water Act (SDWA) for underground injection of carbon dioxide
(CO2) for the purpose of geologic sequestration (GS). GS is
one of a portfolio of options that could be deployed to reduce
CO2 emissions to the atmosphere and help to mitigate climate
change. This proposal applies to owners or operators of wells that will
be used to inject CO2 into the subsurface for the purpose of
long-term storage. It proposes a new class of well and minimum
technical criteria for the geologic site characterization, fluid
movement, area of review (AoR) and corrective action, well
construction, operation, mechanical integrity testing, monitoring, well
plugging, post-injection site care, and site closure for the purposes
of protecting underground sources of drinking water (USDWs). The
elements of this proposal are based on the existing Underground
Injection Control (UIC) regulatory framework, with modifications to
address the unique nature of CO2 injection for GS. If
finalized, this proposal would help ensure consistency in permitting
underground injection of CO2 at GS operations across the
U.S. and provide requirements to prevent endangerment of USDWs in
anticipation of the eventual use of GS to reduce CO2
emissions.
DATES: Comments must be received on or before November 24, 2008. A
public hearing will be held during the public comment period in
September 2008. EPA will notify the public of the date, time and
location of a public hearing in a separate Federal Register notice.
ADDRESSES: Submit your comments, identified by Docket ID No. EPA-HQ-OW-
2008-0390, by one of the following methods:
www.regulations.gov: Follow the on-line instructions for
submitting comments.
Mail: Water Docket, Environmental Protection Agency,
Mailcode: 2822T, 1200 Pennsylvania Ave., NW., Washington, DC 20460.
Hand Delivery: Water Docket, EPA Docket Center (EPA/DC)
EPA West, Room 3334, 1301 Constitution Ave., NW., Washington, DC. Such
deliveries are only accepted during the Docket's normal hours of
operation, and special arrangements should be made for deliveries of
boxed information.
Instructions: Direct your comments to Docket ID No. EPA-HQ-OW-2008-
0390. EPA's policy is that all comments received will be included in
the public docket without change and may be made available online at
https://www.regulations.gov, including any personal information
provided, unless the comment includes information claimed to be
Confidential Business Information (CBI) or other information whose
disclosure is restricted by statute. Do not submit information that you
consider to be CBI or otherwise protected, through https://
www.regulations.gov or e-mail. The https://www.regulations.gov Web site
is an ``anonymous access'' system, which means EPA will not know your
identity or contact information unless you provide it in the body of
your comment. If you send an e-mail comment directly to EPA without
going through www.regulations.gov your e-mail address will be
automatically captured and included as part of the comment that is
placed in the public docket and made available on the Internet. If you
submit an electronic comment, EPA recommends that you include your name
and other contact information in the body of your comment and with any
disk or CD-ROM you submit. If EPA cannot read your comment due to
technical difficulties and cannot contact you for clarification, EPA
may not be able to consider your comment. Electronic files should avoid
the use of special characters, any form of encryption, and be free of
any defects or viruses.
Docket: All documents in the docket are listed in the https://
www.regulations.gov index. Although listed in the index, some
information is not publicly available, e.g., CBI or other information
whose disclosure is restricted by statute. Certain other material, such
as copyrighted material, will be publicly available only in hard copy.
Publicly available docket materials are available either electronically
in www.regulations.gov or in hard copy at the Water Docket, EPA/DC, EPA
West, Room 3334, 1301 Constitution Ave., NW., Washington, DC. The
Public Reading Room is open from 8:30 a.m. to 4:30 p.m., Monday through
Friday, excluding legal holidays. The telephone number for the Public
Reading Room is (202) 566-1744, and the telephone number for the EPA
Docket Center is (202) 566-2426.
FOR FURTHER INFORMATION CONTACT: Lee Whitehurst, Underground Injection
Control Program, Drinking Water Protection Division, Office of Ground
Water and Drinking Water (MC-4606M), Environmental Protection Agency,
1200 Pennsylvania Ave., NW., Washington, DC 20460; telephone number:
(202) 564-3896; fax number: (202) 564-3756; e-mail address:
whitehurst.lee@epa.gov. For general information, contact the Safe
Drinking Water Hotline, telephone number: (800) 426-4791. The Safe
Drinking Water Hotline is open Monday through Friday, excluding legal
holidays, from 10 a.m. to 4 p.m. Eastern time.
SUPPLEMENTARY INFORMATION:
I. General Information
This is a proposed regulation. If finalized, these regulations
would affect owners or operators of injection wells that will be used
to inject CO2 into the subsurface for the purposes of GS.
Regulated categories and entities would include, but are not limited
to, the following:
------------------------------------------------------------------------
Category Examples of regulated entities
------------------------------------------------------------------------
Private................................ Operators of CO2 injection
wells used for GS.
------------------------------------------------------------------------
This table is not intended to be an exhaustive list, but rather
provides a guide for readers regarding entities likely to be regulated
by this action. This table lists the types of entities that EPA is now
aware could potentially be regulated by this action. Other types of
entities not listed in the table could also be regulated. To determine
whether your facility is regulated by this action, you should carefully
examine the applicability criteria found in 146.81 of this proposed
rule. If you have questions regarding the applicability of this action
to a particular entity, consult the person listed in the preceding FOR
FURTHER INFORMATION CONTACT section.
Abbreviations and Acronyms
AASG American Association of State Geologists
AoR Area of Review
API American Petroleum Institute
CaCO3 Calcium Carbonate
CAA Clean Air Act
CCS Carbon Capture and Storage
CERCLA Comprehensive Environmental Response, Compensation, and
Liability Act
CO2 Carbon Dioxide
CSLF Carbon Sequestration Leadership Forum
DOE Department of Energy
[[Page 43493]]
ECBM Enhanced Coal Bed Methane
EFAB Environmental Finance Advisory Board
EGR Enhanced Gas Recovery
EM Electromagnetic
EOR Enhanced Oil Recovery
EPA Environmental Protection Agency
ERT Electrical Resistance Tomography
FACA Federal Advisory Committee Act
GHGs Greenhouse Gases
GS Geologic Sequestration
GWPC Ground Water Protection Council
H2S Hydrogen Sulfide
ICR Information Collection Request
IEA International Energy Agency
IOGCC Interstate Oil and Gas Compact Commission
IPCC Intergovernmental Panel on Climate Change
LBNL Lawrence Berkeley National Laboratory
LIDAR Light Detection and Ranging
MI Mechanical Integrity
MIT Mechanical Integrity Test
MMT Million Metric Tons
MMV Monitoring, Measurement, and Verification
MPRSA Marine Protection, Research, and Sanctuaries Act
NDWAC National Drinking Water Advisory Council
NETL National Energy Technology Laboratory
NGOs Non-Governmental Organizations
NODA Notice of Data Availability
NPDWR National Primary Drinking Water Regulations
NTTAA National Technology Transfer and Advancement Act
OIRA Office of Information and Regulatory Affairs
OMB Office of Management and Budget
O&M Operation and Maintenance
ORD Office of Research and Development
NOX Nitrogen Oxides
PFC Perfluorocarbon
PNNL Pacific Northwest National Laboratory
PRA Paperwork Reduction Act
PVT Pressure-Volume-Temperature
PWS Public Water Supply
RA Regulatory Alternative
RCRA Resource Conservation and Recovery Act
RCSP Regional Carbon Sequestration Partnerships
RFA Regulatory Flexibility Act
SACROC Scurry Area Canyon Reef Operators Committee
SBREFA Small Business Regulatory Enforcement Fairness Act
SDWA Safe Drinking Water Act
SOX Sulfur Oxides
TDS Total Dissolved Solids
UIC Underground Injection Control
UICPG83 Underground Injection Control Program Guidance
83
UMRA Unfunded Mandates Reform Act
USDW Underground Source of Drinking Water
VEF Vulnerability Evaluation Framework
Definitions
Annulus: The space between the well casing and the wall of the bore
hole; the space between concentric strings of casing; space between
casing and tubing.
Area of review (AoR): The region surrounding the geologic
sequestration project that may be impacted by the injection activity.
The area of review is based on computational modeling that accounts for
the physical and chemical properties of all phases of the injected
carbon dioxide stream.
Ball valve: A valve consisting of a hole drilled through a ball
placed in between two seals. The valve is closed when the ball is
rotated in the seals so the flow path no longer aligns with the well
casing.
Buoyancy: Upward force on one phase (e.g., a fluid) produced by the
surrounding fluid (e.g., a liquid or a gas) in which it is fully or
partially immersed, caused by differences in pressure or density.
Capillary force: Adhesive force that holds a fluid in a capillary
or a pore space. Capillary force is a function of the properties of the
fluid, and surface and dimensions of the space. If the attraction
between the fluid and surface is greater than the interaction of fluid
molecules, the fluid will be held in place.
Caprock: See confining zone.
Carbon Capture and Storage (CCS): The process of capturing
CO2 from an emission source, (typically) converting it to a
supercritical state, transporting it to an injection site, and
injecting it into deep subsurface rock formations for long-term
storage.
Carbon dioxide plume: The extent underground, in three dimensions,
of an injected carbon dioxide stream.
Carbon dioxide (CO2) stream: Carbon dioxide that has
been captured from an emission source (e.g., a power plant), plus
incidental associated substances derived from the source materials and
the capture process, and any substances added to the stream to enable
or improve the injection process. This subpart does not apply to any
carbon dioxide stream that meets the definition of a hazardous waste
under 40 CFR Part 261.
Casing: The pipe material placed inside a drilled hole to prevent
the hole from collapsing. The two types of casing in most injection
wells are (1) surface casing, the outer-most casing that extends from
the surface to the base of the lowermost USDW and (2) long-string
casing, which extends from the surface to or through the injection
zone.
Cement: Material used to support and seal the well casing to the
rock formations exposed in the borehole. Cement also protects the
casing from corrosion and prevents movement of injectate up the
borehole. The composition of the cement may vary based on the well type
and purpose; cement may contain latex, mineral blends, or epoxy.
Confining zone: A geologic formation, group of formations, or part
of a formation stratigraphically overlying the injection zone that acts
as a barrier to fluid movement.
Corrective action: The use of Director approved methods to assure
that wells within the area of review do not serve as conduits for the
movement of fluids into underground sources of drinking water (USDWs).
Corrosive: Having the ability to wear away a material by chemical
action. Carbon dioxide mixed with water forms carbonic acid, which can
corrode well materials.
Dip: The angle between a planar feature, such as a sedimentary bed
or a fault, and the horizontal plane. The dip of subsurface rock layers
can provide clues as to whether injected fluids may be contained.
Director: The person responsible for permitting, implementation,
and compliance of the UIC program. For UIC programs administered by
EPA, the Director is the EPA Regional Administrator; for UIC programs
in Primacy States, the Director is the person responsible for
permitting, implementation, and compliance of the State, Territorial,
or Tribal UIC program.
Ductility: The ability of a material to sustain stress until it
fractures.
Enhanced Coal Bed Methane (ECBM) recovery: The process of injecting
a gas (e.g., CO2) into coal, where it is adsorbed to the
coal surface and methane is released. The methane can be captured and
produced for economic purposes; when CO2 is injected, it
adsorbs to the surface of the coal, where it remains sequestered.
Enhanced Oil or Gas Recovery (EOR/EGR): Typically, the process of
injecting a fluid (e.g., water, brine, or CO2) into an oil
or gas bearing formation to recover residual oil or natural gas. The
injected fluid thins (decreases the viscosity) or displaces small
amounts of extractable oil and gas, which is then available for
recovery. This is also known as secondary or tertiary recovery.
Flapper valve: A valve consisting of a hinged flapper that seals
the valve orifice. In GS wells, flapper valves can engage to shut off
the flow of the CO2 when acceptable operating parameters are
exceeded.
Formation or geological formation: A layer of rock that is made up
of a certain type of rock or a combination of types.
Geologic sequestration (GS): The long-term containment of a
gaseous, liquid or supercritical carbon dioxide stream in
[[Page 43494]]
subsurface geologic formations. This term does not apply to its capture
or transport.
Geologic sequestration project: An injection well or wells used to
emplace a CO2 stream beneath the lowermost formation
containing a USDW. It includes the subsurface three-dimensional extent
of the carbon dioxide plume, associated pressure front, and displaced
brine, as well as the surface area above that delineated region.
Geophysical surveys: The use of geophysical techniques (e.g.,
seismic, electrical, gravity, or electromagnetic surveys) to
characterize subsurface rock formations.
Injectate: The fluids injected. For the purposes of this rule, this
is also known as the CO2 stream.
Injection zone: A geologic formation, group of formations, or part
of a formation that is of sufficient areal extent, thickness, porosity,
and permeability to receive carbon dioxide through a well or wells
associated with a geologic sequestration project.
Lithology: The description of rocks, based on color, mineral
composition and grain size.
Mechanical integrity (MI): The absence of significant leakage
within the injection tubing, casing, or packer (known as internal
mechanical integrity), or outside of the casing (known as external
mechanical integrity).
Mechanical Integrity Test (MIT): A test performed on a well to
confirm that a well maintains internal and external mechanical
integrity. MITs are a means of measuring the adequacy of the
construction of an injection well and a way to detect problems within
the well system before leaks occur.
Model: A representation or simulation of a phenomenon or process
that is difficult to observe directly or that occurs over long time
frames. Models that support GS can predict the flow of CO2
within the subsurface, accounting for the properties and fluid content
of the subsurface formations and the effects of injection parameters.
Packer: A mechanical device set immediately above the injection
zone that seals the outside of the tubing to the inside of the long
string casing.
Pinch-out: The location where a porous, permeable formation that is
located between overlying and underlying confining formations thins to
a zero thickness, and the confining formations are in contact with each
other.
Pore space: Open spaces in rock or soil. These are filled with
water or other fluids such as brine (i.e., salty fluid). CO2
injected into the subsurface can displace pre-existing fluids to occupy
some of the pore spaces of the rocks in the injection zone.
Post-injection site care: Appropriate monitoring and other actions
(including corrective action) needed following cessation of injection
to assure that USDWs are not endangered as required under Sec. 146.93.
Pressure front: The zone of elevated pressure that is created by
the injection of carbon dioxide into the subsurface. For GS projects,
the pressure front of a CO2 plume refers to the zone where
there is a pressure differential sufficient to cause the movement of
injected fluids or formation fluids into a USDW.
Saline formations: Deep and geographically extensive sedimentary
rock layers saturated with waters or brines that have a high total
dissolved solids (TDS) content (i.e., over 10,000 mg/L TDS). Saline
formations offer great potential CO2 storage capacity.
Shut-off device: A valve coupled with a control device which closes
the valve when a set pressure or flow value is exceeded. Shut-off
devices in injection wells can automatically shut down injection
activities when operating parameters unacceptably diverge from
permitted values.
Site closure: The point/time, as determined by the Director
following the requirements under Sec. 146.93, at which the owner or
operator of a GS site has completed their post-injection site care
responsibilities.
Sorption (absorption, adsorption): Absorption refers to gases or
liquids being incorporated into a material of a different state;
adsorption is the adhering of a molecule or molecules to the surface of
a different molecule.
Stratigraphic zone (unit): A layer of rock (or stratum) that is
recognized as a unit based on lithology, fossil content, age or other
properties.
Supercritical fluid: A fluid above its critical temperature (31.1
[deg]C for CO2) and critical pressure (73.8 bar for
CO2). Supercritical fluids have physical properties
intermediate to those of gases and liquids.
Total Dissolved Solids (TDS): The measurement, usually in mg/L, for
the amount of all inorganic and organic substances suspended in liquid
as molecules, ions, or granules. For injection operations, TDS
typically refers to the saline (i.e., salt) content of water-saturated
underground formations.
Transmissive fault or fracture: A fault or fracture that has
sufficient permeability and vertical extent to allow fluids to move
between formations.
Trapping: The physical and geochemical processes by which injected
CO2 is sequestered in the subsurface. Physical trapping
occurs when buoyant CO2 rises in the formation until it
reaches a layer that inhibits further upward migration or is
immobilized in pore spaces due to capillary forces. Geochemical
trapping occurs when chemical reactions between dissolved
CO2 and minerals in the formation lead to the precipitation
of solid carbonate minerals.
Underground Source of Drinking Water (USDW): An aquifer or portion
of an aquifer that supplies any public water system or that contains a
sufficient quantity of ground water to supply a public water system,
and currently supplies drinking water for human consumption, or that
contains fewer than 10,000 mg/l total dissolved solids and is not an
exempted aquifer.
Viscosity: The property of a fluid or semi-fluid that offers
resistance to flow. As a supercritical fluid, CO2 is less
viscous than water and brine.
Table of Contents
I. General Information
II. What Is EPA Proposing?
A. Why Is EPA Proposing To Develop New Regulations To Address GS
of CO2?
B. What Is EPA's Authority Under the SDWA To Regulate Injection
of CO2?
C. Who Implements the UIC Program?
D. What Are the Risks Associated With CO2 GS?
E. What Steps Has EPA Taken To Inform This Proposal?
F. Why Is EPA Proposing To Develop a New Class of Injection Well
for GS of CO2?
G. How Would This Proposal Affect Existing Injection Wells Under
the UIC Program?
H. What Are the Target Geologic Formations for GS of
CO2?
I. Is Injected CO2 Considered a Hazardous Waste Under
RCRA?
J. Is Injected CO2 Considered a Hazardous Substance
Under CERCLA?
III. Proposed Regulatory Alternative
A. Proposed Alternative
1. Proposed Geologic Siting Requirements
2. Proposed Area of Review and Corrective Action Requirements
3. Proposed Injection Well Construction Requirements
4. Proposed Injection Well Operating Requirements
5. Proposed Mechanical Integrity Testing Requirements
6. Proposed Plume and Pressure Front Monitoring Requirements
7. Proposed Recordkeeping and Reporting Requirements
8. Proposed Well Plugging, Post-Injection Site Care, and Site
Closure Requirements
9. Proposed Financial Responsibility and Long-term Care
Requirements
B. Adaptive Approach
[[Page 43495]]
IV. How Should UIC Program Directors Involve the Public in
Permitting Decisions for GS Projects?
V. How Will States, Territories, and Tribes Obtain UIC Program
Primacy for Class VI Wells?
VI. What Is the Proposed Duration of a Class VI Injection Permit?
VII. Cost Analysis
A. National Benefits and Costs of the Proposed Rule
B. Comparison of Benefits and Costs of Regulatory Alternatives
of the Proposed Rule
C. Conclusions
VIII. Statutory and Executive Order Reviews
A. Executive Order 12866: Regulatory Planning and Review
B. Paperwork Reduction Act (PRA)
C. Regulatory Flexibility Act (RFA)
D. Unfunded Mandates Reform Act (UMRA)
E. Executive Order 13132: Federalism
F. Executive Order 13175: Consultation and Coordination With
Indian Tribal Governments
G. Executive Order 13045: Protection of Children From
Environmental Health Risks and Safety Risks
H. Executive Order 13211: Actions That Significantly Affect
Energy Supply, Distribution, or Use
I. National Technology Transfer and Advancement Act
J. Executive Order 12898: Federal Actions To Address
Environmental Justice in Minority Populations and Low-Income
Populations
IX. References
II. What Is EPA Proposing?
EPA is proposing to create a new category of injection well under
its existing Underground Injection Control (UIC) Program with new
Federal requirements to allow for permitting of the injection of
CO2 for the purpose of GS. Today's proposal builds on
existing UIC regulatory components for key areas including siting,
construction, operation, monitoring and testing, and closure for
injection wells that address the pathways through which underground
sources of drinking water (USDWs) may be endangered. The Agency
proposes to tailor existing UIC program components so that they are
appropriate for the unique nature of injecting large volumes of
CO2 into a variety of geological formations to ensure that
USDWs are not endangered.
In addition to protecting USDWs, today's proposed rule provides a
regulatory framework to promote consistent approaches to permitting GS
projects across the U.S. and supports the development of a key climate
change mitigation technology.
This proposal does not require any facilities to capture and/or
sequester CO2; rather, this proposal focuses on underground
injection of CO2 and outlines requirements that, if
finalized, would protect USDWs under the SDWA. The SDWA provides EPA
with the authority to develop regulations to protect USDWs. The SDWA
does not provide authority to develop regulations for all areas related
to GS. These areas include, but are not limited to, capture and
transport of CO2; determining property rights (i.e., to
permit its use for GS and for possible storage credits); transfer of
liability from one entity to another; and accounting or certification
for greenhouse gas (GHG) reductions. EPA is not proposing regulations
for CO2 under the Clean Air Act (CAA) in this proposed
rulemaking.
A. Why Is EPA Proposing To Develop New Regulations To Address GS of
CO2?
1. What Is Geologic Sequestration (GS)?
GS is the process of injecting CO2 captured from an
emission source (e.g., a power plant or industrial facility) into deep
subsurface rock formations for long-term storage. It is part of a
process known as ``carbon capture and storage'' or CCS.
CO2 is first captured from fossil-fueled power plants or
other emission sources. To transport captured CO2 for GS,
operators typically compress CO2 to convert it from a
gaseous state to a supercritical fluid (IPCC, 2005). CO2
exists as a supercritical fluid at high pressures and temperatures, and
in this state it exhibits properties of both a liquid and a gas. After
capture and compression, the CO2 is delivered to the
sequestration site, typically by pipeline, or alternatively using
tanker trucks or ships (WRI, 2007).
The CO2 is then injected into deep subsurface rock
formations via one or more wells, using technologies that have been
developed and refined by the oil and gas and chemical manufacturing
industries over the past several decades. To store the CO2
as a supercritical fluid, it would likely be injected at a depth
(greater than approximately 800 meters, or 2,625 feet), such that a
sufficiently high pressure and temperature would be maintained to keep
the CO2 in a supercritical state.
When injected in an appropriate receiving formation, CO2
is sequestered by a combination of trapping mechanisms, including
physical and geochemical processes. Physical trapping occurs when the
relatively buoyant CO2 rises in the formation until it
reaches a stratigraphic zone with low fluid permeability (i.e.,
geologic confining system) that inhibits further upward migration.
Physical trapping can also occur as residual CO2 is
immobilized in formation pore spaces as disconnected droplets or
bubbles at the trailing edge of the plume due to capillary forces. A
portion of the CO2 will dissolve from the pure fluid phase
into native ground water and hydrocarbons. Preferential sorption occurs
when CO2 molecules attach onto the surfaces of coal and
certain organic-rich shales, displacing other molecules such as
methane. Geochemical trapping occurs when chemical reactions between
the dissolved CO2 and minerals in the formation lead to the
precipitation of solid carbonate minerals (IPCC, 2005). The timeframe
over which CO2 will be trapped by these mechanisms depends
on properties of the receiving formation and the injected
CO2 stream. Current research is focused on better
understanding these mechanisms and the time required to trap
CO2 under various conditions.
The effectiveness of physical CO2 trapping is
demonstrated by natural analogs worldwide in a range of geologic
settings, where CO2 has remained trapped for millions of
years. For example, CO2 has been trapped for more than 65
million years under the Pisgah Anticline, northeast of the Jackson Dome
in Mississippi and Louisiana, with no evidence of leakage from the
confining formation (IPCC, 2005).
2. Why Is Geologic Sequestration Under Consideration as a Climate
Change Mitigation Technology?
Greenhouse gases (GHGs) perform the necessary function of keeping
the planet's surface warm enough for human habitation. But, the
concentrations of GHGs continue to increase in the atmosphere, and
according to data from the National Oceanic and Atmospheric
Administration (NOAA) and National Aeronautics and Space Administration
(NASA), the Earth's average surface temperature has increased by about
1.2 to 1.4 [deg]F in the last 100 years. Eleven of the last twelve
years rank among the twelve warmest years on record (since 1850), with
the two warmest years being 1998 and 2005. The Intergovernmental Panel
on Climate Change (IPCC) has concluded that much of the warming in
recent decades is very likely the result of human activities (IPCC,
2007). The burning of fossil fuels (e.g., from coal-fired electric
plants and other sources in the electricity and industrial sectors) is
a major contributor to human-induced greenhouse gas emissions.
Fossil fuels are expected to remain the mainstay of energy
production well into the 21st century, and increased concentrations of
CO2 are expected unless energy producers reduce the
CO2 emissions to the atmosphere. The
[[Page 43496]]
capture and storage of CO2 would enable the continued use of
coal in a manner that greatly reduces the associated CO2
emissions while other safe and affordable alternative energy sources
are developed in the coming decades. Given the United States' abundant
coal resources and reliance on coal for power generation, CCS could be
a key mitigation technology for achieving domestic emissions
reductions.
Estimates based on DOE and IEA studies indicate that areas of the
U.S. with appropriate geology could theoretically provide storage
potential for over 3,000 gigatons (or 3,000,000 megatons; Mt) of
geologically sequestered CO2. Theoretically, this capacity
could be large enough to store a thousand years of CO2
emissions from nearly 1,000 coal-fired power plants. Worldwide, there
appears to be significant capacity in subsurface formations both on
land and under the seafloor to sequester CO2 for hundreds,
if not thousands of years. CCS technologies could potentially represent
a significant percentage of the cumulative effort for reducing
CO2 emissions worldwide.
While predictions about large-scale availability and the rate of
CCS project deployment are subject to considerable uncertainty, EPA
analyses of Congressional climate change legislative proposals (the
McCain-Lieberman bill S. 280, the Bingaman-Specter bill S. 1766, and
the Lieberman-Warner bill S. 2191) indicate that CCS has the potential
to play a significant role in climate change mitigation scenarios. For
example, analysis of S. 2191 indicates that CCS technology could
account for 30 percent of CO2 emission reductions in 2050
(USEPA, 2008a). It is important to note that GS is only one of a
portfolio of options that could be deployed to reduce CO2
emissions. Other options could include efficiency improvements and the
use of alternative fuels and renewable energy sources. Today's proposal
provides a regulatory framework to protect USDWs as this key climate
mitigation technology is developed and deployed. This proposal provides
certainty to industry and the public about requirements that would
apply to injection, by providing consistency in requirements across the
U.S., and transparency about what requirements apply to owners or
operators.
Establishing a supporting regulatory framework for the future
development and deployment of CCS technology can provide the regulatory
certainty needed to foster industry adoption of CCS, which is crucial
to supporting the goals of any proposed climate change legislation.
This proposed rule is consistent with and supports a strategy to
address climate change through: (1) Slowing the growth of emissions;
(2) strengthening science, technology and institutions; and (3)
enhancing international cooperation. EPA plays a significant role in
implementing this strategy through encouraging voluntary GHG emission
reductions, and working with other agencies, including DOE, to
establish programs that promote climate technology and science.
B. What Is EPA's Authority Under the SDWA To Regulate Injection of CO2?
Underground injection wells are regulated under the authority of
Part C of the Safe Drinking Water Act (42 U.S.C. 300h et seq.). The
SDWA is designed to protect the quality of drinking water sources in
the U.S. and prescribes that EPA issue regulations for State programs
that contain ``minimum requirements for effective programs to prevent
underground injection which endangers drinking water sources.''
Congress further defined endangerment as follows:
Underground injection endangers drinking water sources if such
injection may result in the presence in underground water which
supplies or can reasonably be expected to supply any public water
system of any contaminant, and if the presence of such contaminant
may result in such system's not complying with any national primary
drinking water regulation or may otherwise adversely affect the
health of persons (Section 1421(d)(2) of the SDWA, 42 U.S.C.
300h(d)(2)).
Under this authority, the Agency has promulgated a series of UIC
regulations at 40 CFR parts 144 through 148. The chief goal of any
federally approved UIC Program (whether administered by a State,
Territory, Tribe or EPA) is the protection of USDWs. This includes not
only those formations that are presently being used for drinking water,
but also those that can reasonably be expected to be used in the
future. EPA has established through its UIC regulations that USDWs are
underground aquifers with less than 10,000 milligrams per liter (mg/L)
total dissolved solids (TDS) and which contain a sufficient quantity of
ground water to supply a public water system (40 CFR 144.3). Section
1421(b)(3)(A) of the Act also provides that EPA's UIC regulations shall
``permit or provide for consideration of varying geologic,
hydrological, or historical conditions in different States and in
different areas within a State.''
EPA promulgated administrative and permitting regulations, now
codified in 40 CFR Parts 144 and 146, on May 19, 1980 (45 FR 33290),
and technical requirements, in 40 CFR Part 146, on June 24, 1980 (45 FR
42472). The regulations were subsequently amended on August 27, 1981
(46 FR 43156), February 3, 1982 (47 FR 4992), January 21, 1983 (48 FR
2938), April 1, 1983 (48 FR 14146), May 11, 1984 (49 FR 20138), July
26, 1988 (53 FR 28118), December 3, 1993 (58 FR 63890), June 10, 1994
(59 FR 29958), December 14, 1994 (59 FR 64339), June 29, 1995 (60 FR
33926), December 7, 1999 (64 FR 68546), May 15, 2000 (65 FR 30886),
June 7, 2002 (67 FR 39583), and November 22, 2005 (70 FR 70513). EPA's
authority to regulate GS was further clarified under the Energy
Independence and Security Act of 2007, which stated that all
regulations must be consistent with the requirements of the SDWA.
Under the SDWA, the injection of any ``fluid'' is subject to the
requirements of the UIC program. ``Fluid'' is defined under 40 CFR
144.3 as any material or substance which flows or moves whether in a
semisolid, liquid, sludge, gas or other form or state, and includes the
injection of liquids, gases, and semisolids (i.e., slurries) into the
subsurface. Examples of the fluids currently injected into wells
include CO2 for the purposes of enhancing recovery of oil
and natural gas, water that is stored to meet water supply demands in
dry seasons, and wastes generated by industrial users. CO2
injected for the purpose of GS is subject to the SDWA (42 U.S.C. 300f
et seq.). EPA regulates both pollutants and commodities under the UIC
provisions; however, today's proposal does not address the status of
CO2 as a pollutant or commodity. In addition, whether or not
a fluid could be sold on the market as a commodity is outside the scope
of EPA's authority under the SDWA to protect USDWs.
There are limited injection activities that are exempt from UIC
requirements including the storage of natural gas (Section
1421(b)(2)(B)) and specific hydraulic fracturing fluids. This exclusion
applies to the storage of natural gas as it is commonly defined--a
hydrocarbon--and not to injection of other matter in a gaseous state
such as CO2. The Energy Policy Act of 2005 excluded ``the
underground injection of fluids or other propping agents (other than
diesel fuels) pursuant to hydraulic fracturing operations related to
oil, gas, or geothermal producing activities.'' A more detailed summary
of EPA's authority to regulate the injection of CO2 can be
found in the docket.
Other authorities: Today's proposal applies to injection wells in
the U.S. including those in State territorial
[[Page 43497]]
waters. Wells up to three miles offshore may be subject to other
authorities or may require approval under other authorities such as the
Marine Protection, Research, and Sanctuaries Act (MPRSA). EPA recently
submitted to Congress proposed changes to MPRSA to implement the 1996
Protocol to the London Convention on ocean dumping (the ``London
Protocol''). Among the proposed changes is a provision to allow for and
regulate carbon sequestration in sub-seabed geological formations under
the MPRSA.
C. Who Implements the UIC Program?
Section 1422 of the SDWA provides that States, Territories and
federally recognized Tribes may apply to EPA for primary enforcement
responsibility to administer the UIC program; those governments
receiving such authority are referred to as ``Primacy States.'' Section
1422 requires Primacy States to meet EPA's minimum Federal requirements
for UIC programs, including construction, operating, monitoring and
testing, reporting, and closure requirements for well owners or
operators. Where States, Territories, and Tribes do not seek this
responsibility or fail to demonstrate that they meet EPA's minimum
requirements, EPA is required to implement a UIC program for them by
regulation.
Additionally, section 1425 allows States, Territories, and Tribes
seeking primacy for Class II wells to demonstrate that their existing
standards are effective in preventing endangerment of USDWs. These
programs must include requirements for permitting, enforcement,
inspection, monitoring, recordkeeping, and reporting that demonstrate
the effectiveness of their requirements.
Thirty-three States and three Territories currently have primacy to
implement the UIC program. EPA shares implementation responsibility
with seven States and directly implements the UIC Program for all well
classes in 10 states, two Territories, the District of Columbia, and
all Tribes. At the time of this proposal, no Tribes have been approved
for primacy for the UIC Program. However, at the time of this published
notice, Fort Peck Assiniboine and Sioux Tribes in EPA Region 8 and the
Navajo Nation in EPA Region 9 have pending primacy applications.
Although EPA believes that the most effective approach for the
comprehensive management of CO2 GS projects would be
achieved at the State and Tribal level, it is recognized that some
injection activities may raise cross-state boundary issues that are
beyond the scope of this rulemaking. EPA is aware that some States with
primacy for the UIC program are actively engaged in the process of
developing their own regulatory frameworks for the GS of
CO2. In some cases, these frameworks include capture,
transportation and injection requirements. While EPA encourages States
to move forward with initiatives to protect USDWs and public health, it
is important to note that States wishing to retain UIC primacy will
need to promulgate regulations that are at least as stringent as those
that will ultimately be finalized following this proposed rulemaking.
In an attempt to reduce uncertainty in this proposed rulemaking, the
Agency will keep States apprised of its efforts to establish new
Federal UIC GS requirements.
Additionally, EPA seeks comment on any aspects of the ongoing State
efforts to regulate the GS of CO2 and how these efforts
might be used to better inform a final Federal rulemaking.
D. What Are the Risks Associated With CO2 GS?
An improperly managed GS project has the potential to endanger
USDWs. The factors that increase the risk of USDW contamination are
complex and can include improper siting, construction, operation and
monitoring of GS projects. Today's proposal addresses endangerment to
USDWs by establishing new Federal requirements for the proper
management of CO2 injection and storage. Risks to USDWs from
improperly managed GS projects can include CO2 migration
into USDWs, causing the leaching and mobilization of contaminants
(e.g., arsenic, lead, and organic compounds), changes in regional
groundwater flow, and the movement of saltier formation fluids into
USDWs, causing degradation of water quality.
While the focus of today's proposal is the protection of USDWs, EPA
recognizes that injection activities could pose additional risks that
are unrelated to the protection of USDWs including risks to air, human
health, and ecosystems. The measures taken to prevent migration of
CO2 to USDWs in today's proposal will likely also prevent
the migration of CO2 to the surface. However, regulating
such surface/atmospheric releases of CO2 are outside the
scope of this proposal and SDWA authority. A more detailed discussion
follows.
Potential USDW Impacts
Injected CO2 is likely to come in contact with water in
the formation fluids of the geologic formations into which it is
injected. When CO2 mixes with water it forms a weak acid
known as carbonic acid. Over time, carbonic acid could acidify
formation waters potentially causing leaching and mobilization of
naturally occurring metals or other contaminants (e.g., arsenic, lead,
and organic compounds). CO2 may also release contaminants
into solution by replacing molecules that are sorbed to the surface of
the formation, for example, organic molecules such as polycyclic
aromatic hydrocarbons (PAHs) in coal beds. The migration of formation
fluids containing mobilized contaminants could cause endangerment of
USDWs.
Another concern for USDWs is the presence of impurities in the
CO2 stream. These impurities, although a relatively small
percentage of the total fluid, could include hydrogen sulfide and
sulfurous and nitrous oxides. Because of the volume of CO2
that could be injected, there may be a risk that co-contaminants in the
CO2 stream could endanger a USDW if the injectate migrates
into a USDW. Additionally, when fluids are injected in large
quantities, the potential exists for injection to force native brines
(naturally occurring salty water) into USDWs.
Improperly operated injection activities may cause geomechanical
and/or geochemical effects which may deteriorate the integrity of the
initially intact caprock overlying a storage reservoir. For example,
injection of CO2 at high pressure could induce fracturing or
could open existing fractures, thereby increasing movement through the
caprock and enabling CO2 to migrate out of the storage
reservoir, and potentially into USDWs.
Other Potential Impacts
Human Health: Improperly operated injection activities or
ineffective long-term storage could result in the release of injected
CO2 to the atmosphere, resulting in the potential to impact
human health and surrounding ecosystems under certain circumstances.
While CO2 is present normally in the atmosphere, at very
high concentrations and with prolonged exposure, CO2 can be
an asphyxiant. In addition, direct exposure to elevated levels of
CO2 can cause both chronic (e.g., increased breathing rate,
vision and hearing impairment) and acute health effects to humans and
animals. Wind speed and direction, topography and geographic location
can have a role in the severity of the human health impact of a
CO2 release.
EPA considers that risk of asphyxiation and other chronic and
[[Page 43498]]
acute health effects from airborne exposure resulting from
CO2 injection activities (even in the case of leakage or
accidental exposure) is minimal. This finding is based on experience
gained in the oil and gas industry, experience from international GS
projects, and evaluations of large scale releases of naturally
occurring CO2.
EPA collected information on the use of CO2 injection in
the oil and gas industry which has decades of experience in drilling
through highly pressurized formations and injecting CO2 for
the purpose of enhanced recovery. Internationally, CO2 has
been injected on very large scales at three sites: At Sleipner in the
North Sea, at In Salah in Algeria, and in the Weyburn Field in Alberta,
Canada (see section E.3 of this document). There have been no
documented cases of leakage from these projects, nor has there been
release and surface accumulation of CO2 such that
asphyxiation would have been possible.
However, some CO2 releases from injection activity have
been documented. An example of a significant CO2 leak
occurred at Crystal Geyser, Utah. CO2 and water erupted from
an abandoned oil exploration well due to improper well plugging. This
well continues to erupt periodically and discharges 12,000 kilotons of
CO2 annually. Studies indicated that within a few meters of
the well, CO2 concentrations were below levels that could
adversely affect human health (Lewicki et al., 2006).
EPA also evaluated the occurrence of natural discharges of
CO2 to determine whether such releases could be caused by
CO2 injection or whether injection could result in release
of similar magnitudes. Although natural underground CO2
reservoirs exist throughout the world in volcanically active areas,
there are very few instances of rapid discharge of large amounts of
CO2 to the surface (Lewicki et al., 2006). Unusually large
and rapid releases of CO2 from lake bottom storage
reservoirs occurred at Lake Nyos and Lake Monoun in Cameroon in the
1980s, causing asphyxiation. These catastrophic events stemmed from a
phenomenon known as ``limnic eruption.'' Prolonged high ambient
temperatures led to prolonged stratification that allowed naturally
occurring CO2 to slowly accumulate at the bottom of the
lakes over many years. Large volumes of CO2 escaped during
an abrupt lake turnover, possibly prompted by volcanic activity.
While lake turnover can bring CO2 stored in the deepest
layers of lake water to the surface almost instantaneously, geologic
confining systems do not experience this type of rapid and complete
turnover. GS would store CO2 beneath many layers of rock
with a well-defined geologic confining system. Even if a geologic
confining system were compromised, any migration of CO2
towards the surface would not be analogous to a limnic eruption.
Pathways for CO2 leakage from geologic storage reservoirs
are generally conductive faults or fractures. In some cases
CO2 may spread diffusely through overlying rocks and soils
(Lewicki et al., 2006). None of these conditions is a likely conduit
for release of CO2 on the scale of the releases at Lakes
Nyos and Monoun.
Ecosystem: Improperly operated CO2 injection activities
resulting in a release of CO2 to the atmosphere may have a
range of effects on exposed terrestrial and aquatic ecosystems. Due to
organisms' varied sensitivities to environmental and habitat changes,
certain organisms may be adversely affected at different CO2
exposure levels. Surface-dwelling animals, including mammals and birds,
could be affected similarly to humans when directly exposed to elevated
levels of CO2. The exposure could cause both chronic and
acute health effects depending on the concentration and duration of
exposure (Benson et al., 2002). Plants, while dependent upon
CO2 for photosynthesis, could also be adversely affected by
elevated CO2 levels in the soil because the CO2
will inhibit respiration (Vodnik et al., 2006). Soil acidity changes
resulting from increased CO2 concentrations may adversely
impact both plant (McGee and Gerlach, 1998) and soil dwelling organisms
(Benson et al., 2002). Elevated CO2 concentrations in
aquatic ecosystems can impede fish respiration resulting in suffocation
(Fivelstad et al., 2003), decrease pH to lethal levels and reduce the
calcification in shelled organisms, and may adversely affect
photosynthesis of some aquatic organisms (Turley et al., 2006). The
risk of adverse impacts to ecosystems from properly managed
CO2 injection activities is minimal.
Seismic events: Improperly operated injection of CO2
could raise pressure in the formation, and if too high, injection
pressure could ``re-activate'' otherwise dormant faults, potentially
inducing seismic events (earthquakes). Rarely, small induced seismic
events have been associated with past injection. Before a Federal UIC
Program was formed, injection activities at the Rocky Mountain Arsenal
in Colorado from 1963 to 1968 induced measurable seismic activity. This
incident was the result of poor site characterization and well
operation and was among the primary drivers that prompted Congress to
pass legislation establishing the UIC Program. Recently, the IPCC
(2005) concluded that the risks of induced seismicity are low.
Today's proposal contains safeguards to ensure that potential
endangerment to USDWs from CO2 injection is addressed before
the commencement of full-scale GS projects. While preventing releases
of CO2 to the atmosphere is not within the scope of this
proposal, today's proposed rulemaking also addresses the risks posed by
releases to the atmosphere by ensuring that injected CO2
remains in the confining formations. The measures outlined in today's
proposed rulemaking to prevent endangerment of USDWs may also prevent
migration of CO2 to the surface. A more complete discussion
of the potential risks posed by GS is in the Vulnerability Evaluation
Framework for Geologic Sequestration of Carbon Dioxide (VEF) (USEPA,
2008b).
E. What Steps Has EPA Taken To Inform This Proposal?
EPA has taken a number of steps to support today's proposal
including: (1) Building on the experience of the UIC Program; (2)
identifying the risks to USDWs from GS activities; (3) tracking the
results on ongoing research; (4) identifying technical and regulatory
issues associated with pilot and full-scale GS projects; (5)
coordinating with stakeholders on the rulemaking process; and (6)
providing guidance and reviewing permits for initial pilot-scale
projects.
1. Building on the Existing UIC Program Framework To Specifically
Address CO2 Injection
EPA's UIC regulations prohibit injection wells from causing ``the
movement of fluid containing any contaminant into an underground source
of drinking water, if the presence of that contaminant may cause a
violation of any primary drinking water regulation * * * or may
otherwise adversely affect the health of persons'' (40 CFR 144.12(a)).
The federal UIC Program has been implemented since 1980 and has
responsibility for managing over 800,000 injection wells. The
programmatic components of the UIC Program are designed to prevent
fluid movement into USDWs by addressing the potential pathways through
which injected fluids can migrate into USDWs. These programmatic
components are described in general below:
Siting: EPA requires injection wells to be sited to inject
into a zone capable
[[Page 43499]]
of storing the fluid, and to inject below a confining system that is
free of known open faults or fractures that could allow upward fluid
movement that endangers USDWs.
Area of Review (AoR) and Corrective Action: The Agency
requires examination of both the vertical and horizontal extent of the
area that will potentially be influenced by injection and storage
activities and identification of all artificial penetrations in the
area that may act as conduits for fluid movement into USDWs (e.g.,
active and abandoned wells) and, as needed, perform corrective action
to these open wells (i.e., artificial penetrations).
Well Construction: EPA requires injection wells to be
constructed using well materials and cements that can withstand
injection of fluids over the anticipated life span of the project.
Operation: Injection pressures must be monitored so that
fractures that could serve as fluid movement conduits are neither
propagated into the layers in which fluids are injected or initiated in
the confining systems above.
Mechanical Integrity Testing (MIT): The integrity of the
injection well system must be monitored at an appropriate frequency to
provide assurance that the injection well is operating as intended and
is free of significant leaks and fluid movement in the well bore.
Monitoring: Owners or operators must monitor the injection
activity using available technologies to verify the location of the
injected fluid, the pressure front, and demonstrate that injected
fluids are confined to intended storage zones (and, therefore,
injection activities are protective of USDWs).
Well Plugging and Post-Injection Site Care: At the end of
the injection project, EPA requires injection wells to be plugged in a
manner that ensures that these wells will not serve as conduits for
future fluid movement into USDWs. Additionally, owners or operators
must monitor injection wells to ensure fluids in the storage zone do
not pose an endangerment to USDWs.
Today's proposal builds upon these longstanding UIC programmatic
components and tailors them based on the current state of knowledge
about the injection of CO2 for GS purposes. The timeframes
involved in preparing and completing each of these components are, in
general, project specific (i.e., dependent upon regional geology;
location; cumulative injection volumes; additional state and local
requirements; industry specificity).
2. Identifying the Risks to USDWs From Injection of CO2
The existing UIC program provides a foundation for designing a
regulatory framework for GS projects that prevents endangerment to
USDWs. The Agency has evaluated the risks of CO2 injection
to USDWs to determine how best to tailor the existing UIC regulations
to address the buoyant and viscous properties of CO2 and the
large volumes that could be injected.
EPA developed the Vulnerability Evaluation Framework (VEF), an
analytical framework that identifies and offers approaches to evaluate
the potential for a GS project to experience CO2 leakage and
associated adverse impacts. The VEF is a high-level screening approach
that can be used to identify key GS system attributes that should be
evaluated further to establish site suitability and targeted monitoring
programs. The VEF is focused on the three main parts of GS systems: The
injection zone, the confining system, and the CO2 stream.
The VEF first identifies approaches to evaluate key geologic attributes
of GS systems that could influence vulnerability to leakage or pressure
changes. It then describes an approach to define the area that should
be evaluated for adverse impacts associated with leakage or pressure
changes. Finally, the VEF identifies receptors that could be adversely
impacted if leakage or pressure changes were to occur. The assessment
of vulnerabilities to leakage and pressure changes, and of the
potential impacts to receptors, is described in a series of detailed
decision-support flowcharts. (Some of the impacts addressed in the VEF,
e.g., to the atmosphere or ecological receptors, are outside of the
scope of today's proposal.) The VEF report (USEPA, 2008b) is included
in the docket for this proposed rulemaking.
EPA and the Department of Energy (DOE) are jointly funding the
Lawrence Berkeley National Laboratory (LBNL) to study potential impacts
of CO2 injection on ground water aquifers and drinking water
sources. As part of the same study, LBNL is also assessing potential
changes in regional ground water flow, including displacement of pre-
existing saline water or hydrocarbons that could impact USDWs or other
resources. EPA and DOE are also jointly funding the Pacific Northwest
National Laboratory (PNNL) to perform technical analyses on conducting
site assessments, evaluating reservoir suitability, and modeling the
flow of injected CO2 in geologic formations.
3. Tracking the Results of CO2 GS Research Projects
EPA is tracking the progress and results of national and
international GS research projects. DOE leads experimental field
research on GS in the U.S. in conjunction with the Regional Carbon
Sequestration Partnerships (RCSPs) program. Collectively, the seven
RCSPs represent regions encompassing 97 percent of coal-fired
CO2 emissions, 97 percent of industrial CO2
emissions, 96 percent of the total U.S. land mass, and nearly all the
GS sites in the U.S. potentially available for carbon storage.
Approximately 400 organizations, including State geologists, industry
and environmental organizations, and national laboratories are involved
with the RCSPs.
DOE's 2007 Roadmap (DOE, 2007a) describes DOE-sponsored research
designed to gather data on the effectiveness and safety of
CO2 GS in various geologic settings through the RSCPs. The
Roadmap describes three phases of research, each of which builds upon
the previous phase. During the Characterization Phase (2003 to 2005),
the partnerships studied regionally-specific sequestration approaches
as well as potentially needed regulations and infrastructure
requirements for GS deployment. During the Validation Phase (2005-
2009), approximately 25 pilot tests will be performed to validate the
most promising GS technologies, evaluate regional CO2
repositories, and identify best management practices for future
deployment. During the Deployment Phase (2008-2017), the partnerships
will conduct large volume carbon storage tests to demonstrate that
large-scale CO2 injection and storage can be achieved safely
and economically. EPA will use the data collected from these projects
to support decisions in the final GS rule. Additional information on
DOE's research and the partnerships is available at https://
www.fossil.energy.gov/sequestration/partnerships/.
EPA is also communicating with other research organizations and
academic institutions conducting GS research. These institutions
include Princeton University, which has a research program for
assessing potential problems with degradation of well material from the
geologic sequestration of CO2, and the Massachusetts
Institute of Technology, which has a CCS program emphasizing safe and
effective future use of coal as a prime energy source.
EPA is also monitoring the progress of international GS efforts.
Three projects of note are underway in the North Sea,
[[Page 43500]]
Algeria, and Canada, whose results are being used to inform today's
proposal.
The Sleipner Project, located off the Norwegian coast in the North
Sea, is the first commercial scale GS project into a saline formation.
Approximately 1 Million tones (Mt) CO2 is removed annually
from the natural gas produced in the Sleipner West Gas Field and
injected approximately 800 m (2,625 ft) below the seabed. Injection
began in August 1996, and operators expect to store 20 Mt
CO2 over the expected 25-year life of the project.
Activities include baseline data gathering and evaluation, reservoir
characterization and simulation, assessment of the need and cost for
monitoring wells, and geophysical modeling. Seismic time-lapse surveys
have been used to monitor movement of the CO2 plume and
demonstrate effectiveness of the cap rock (IPCC, 2005).
The In Salah Gas Project, in the central Saharan region of Algeria,
is the world's first large-scale CO2 storage project in a
gas reservoir. CO2 is stripped from natural gas produced
from the Krechba Field and re-injected via three horizontal injection
wells into a 1,800 meter-deep (5,906 ft) sandstone reservoir.
Approximately 1.2 Mt CO2 have been injected annually since
April 2004 and it is estimated that 17 Mt CO2 will be stored
over the life of the project. To characterize the site, 3-D seismic
surveys and well data have been used to map the field, identify deep
faults, establish a baseline, and conduct a risk assessment of storage
integrity. Monitoring at the site includes use of noble gas tracers,
pressure surveys, tomography, gravity baseline studies, microbiological
studies, four-dimensional seismic surveys, and geomechanical monitoring
(IPCC, 2005).
Weyburn is an EOR project where the CO2 produced at a
coal gasification plant in Beulah, ND is piped to Weyburn in
southeastern Saskatchewan for EOR. Approximately 1.5 Mt CO2
are injected annually via a combination of vertical and horizontal
injection wells. It is expected that 20 Mt CO2 will be
stored in the field over the 20 to 25 year life of the CO2-
EOR project. The monitoring regime at the site includes high-resolution
seismic surveys and surface monitoring to determine any potential
leakage (IPCC, 2005). The conclusions of Phase I of the project are
that depleted oil and gas reservoirs from EOR operations are a
promising CO2 storage option and that 4-D seismic monitoring
is a valuable tool for plume tracking (IEA, 2005).
Other ongoing GS projects include the Gorgon Gas Development
project, a deep saline formation project in Barrow Island, Western
Australia; the Otway (Australia) Project, where GS is taking place in a
saline formation within a depleted natural gas reservoir; the South
Quinshu Basin, China Enhanced Coalbed Methane (ECBM)/CO2
sequestration project; the CO2 SINK project in Ketzin,
Germany (a sandstone saline formation); and testing of CO2
GS in the Deccan Trap basalts of India.
4. Identifying Technical and Regulatory Issues Associated With
CO2 GS
EPA has conducted a series of technical workshops with regulators,
industry, ut