Arkansas Administrative Code
Agency 178 - Arkansas Oil and Gas Commission
Division 01 - Energy and Environment
Rule 178.01.20-001 - General Rule D-23 Regulation of Underground Natural Gas Storage Projects
Universal Citation: AR Admin Rules 178.01.20-001
Current through Register Vol. 49, No. 9, September, 2024
a) Authority and Applicability
1) The underground storage
of Natural Gas promotes conservation, permits the building of reserves for
orderly withdrawal in periods of peak demand, makes more readily available and
economical natural gas resources to the domestic, commercial, and industrial
consumers, and promotes the public interest and welfare of the State of
Arkansas. Therefore, the Arkansas Oil and Gas Commission may find and
determine, in accordance with Ark. Code Ann. §
15-72-603,
that the underground storage of natural gas is in the public
interest.
2) All Natural Gas Public
Utilities engaged in the process of the storage of natural gas in underground
reservoirs within the State of Arkansas, as specified in Ark Code Ann. §
15-72-601, et
seq., are subject to the provisions of this rule. This rule does not apply to
gas injection or withdrawal operations conducted as a part of, or in
conjunction with, any secondary or tertiary recovery methods utilized in a
unitized pool or unit area established by the Commission.
3) Underground Storage Facilities established
by the Commission, which are in existence at the time of the adoption of this
rule, are not subject to the provisions contained herein with the exception of
subparagraph (m) below.
4) All
Underground Natural Gas Storage Facilities are subject to the provisions of
this rule unless any provision contained herein are less stringent than any
applicable federal requirement enumerated in subparagraph (m).
b) Definitions
1) "Certificate of Storage" shall mean an
order issued by the Commission that:
A)
Identifies an underground stratum or formation that is suitable for the
underground storage of natural gas and that its use for such purposes is in the
public interest;
B) Designates the
horizontal and vertical boundaries of the storage facility, such boundaries to
include any necessary or reasonable buffer zone for the purpose of ensuring the
safe operation of the storage facility and to protect the storage facility from
pollution or invasion, or escape or migration of gas therefrom;
C) Designates the minimum and maximum
operating pressures of the storage facility;
D) Designates the storage operator for said
facility; and
E) Adopts special
rules for the operation of the facility.
2) "Commission" shall mean the Oil and Gas
Commission.
3) "Cushion Gas" shall
mean the volume of gas required as permanent storage inventory to maintain
adequate reservoir pressure to meet minimum gas deliverability demand (also
called "base gas").
4) "Gathering
Line" shall mean a pipeline that transports gas from a current production
facility to a transmission line or main.
5) "Native Gas" shall mean gas which has not
been previously withdrawn from the earth;
6) "Natural Gas" shall mean all natural gas,
casinghead gas, and occluded natural gas found in coalbeds, and all other
hydrocarbons not defined as oil in General Rule A-4, but not including liquid
petroleum gas.
7) "Natural Gas
Public Utility" shall mean any person, firm, corporation or entity engaged in
the business of producing, transporting, or distributing Natural Gas by means
of pipelines into, within, or through this State for ultimate public
consumption.
8) "Observation Well"
shall mean any well drilled or converted for the purpose of monitoring
reservoir pressures, temperatures, or integrity of a USR.
9) "Storage Operations" shall mean the
process of injecting Natural Gas into a USR.
10) "Storage Operator" shall mean any
company, person, corporation, partnership, limited partnership, association of
persons, municipality, association of municipalities, public utility, gas
district, or any other entity, authorized by the Commission to operate any
USF.
11) "Storage Well" shall mean
any well drilled or converted, within a USF, for the purpose of Natural Gas
injection and Natural Gas withdrawal.
12) "Underground Storage" shall mean the
storage of Natural Gas in an USR.
13) "Underground Storage Facility" (USF)
shall mean a USR, the injection and withdrawal wells and well tubular goods,
the wellhead, and related equipment to the last positive shut-off valve before
the gathering line that is used or to be used for the underground storage of
Natural Gas, and all surface and subsurface rights and appurtenances necessary
or useful in the operation of the facility for the underground storage of
Natural Gas, including any necessary or reasonable buffer zone as identified
and recommended by the Storage Operator and approved by the Commission for the
purpose of ensuring the safe operation of the storage of Natural Gas, and to
protect the storage facility against pollution or invasion, or escape or
migration of Natural Gas therefrom.
14) "Underground Storage Reservoir" (USR)
shall mean any porous subsurface sand, stratum, or formation which is
completely separated from any other porous zone and is suitable for, or capable
of, being made suitable for the injection and storage and withdrawal of Natural
Gas.
15) "Working Gas" shall mean
the portion of the storage volume that can be removed from a USR for
deliveries, and still maintain pressure sufficient to meet design
deliverability.
c) Eminent Domain
1) Any Natural Gas Public
Utility desiring to exercise the right of eminent domain in accordance with
Ark. Code Ann. §
15-72-606,
to acquire or take any property for the Underground Storage of Natural Gas,
shall first obtain from the Commission a Certificate of Storage setting forth
the following:
A) The amount of recoverable
oil and Native Gas, if any, remaining in the USR and a determination as to
proper allocation of that amount;
B) That the property to be taken or acquired
is suitable for the Underground Storage of Natural Gas; and
C) That the use of the USR for storage of
Natural Gas is in the public interest.
2) The Natural Gas Public Utility shall
present to the circuit court of the county wherein the land is situated, or to
the judge thereof, a petition setting forth the purpose for taking the
property, a legal description of the property to be taken, and the names of the
title owners thereof as shown in the public record of the county.
3) The petitioner shall file the Certificate
of Storage issued by the Commission as a part of its petition, and no order by
the court granting the petition shall be entered without the Certificate of
Storage being filed therewith.
d) Issuance Certificate of Storage
1) Any Natural Gas Public Utility may file an
application to have the Commission issue a Certificate of Storage for the
Underground Storage of Natural Gas in a USR.
2) The Commission shall publish notice at
least once each week for two (2) successive weeks in a newspaper of general
circulation in the county or counties where the proposed USR is to be located.
The first publication of the notice must be at least ten (10) days prior to the
date of the hearing.
3) Only the
area of the USR that may reasonably be expected to be penetrated by Natural Gas
displaced or injected into the USR, as determined by the Commission, may be
covered by the Certificate of Storage.
4) The Certificate of Storage granted in this
section shall not prejudice the rights of the owner or owners of the lands (or
of other rights or interests therein), to drill or bore through the USR as
established by rules of the Commission, and shall not prejudice to the rights
of the owner or owners of the lands (or other rights or interests therein) as
to all other uses of the lands not inconsistent with the operation of the
USF.
5) All Natural Gas which has
been reduced to possession and which is subsequently injected into a USR shall
at all times be deemed the property of the Storage Operator, or his or her
heirs, successors, or assigns. This Natural Gas shall not be in any manner
subject to the right of the surface owner of the lands or the owner of any
mineral interest under or above the USF, or subject to the right of any other
person or entity. The Storage Operator, or his or her heirs, successors, and
assigns, has the sole and only right to produce, take, or reduce to possession
this Natural Gas in the USR, and no other person may waste, or otherwise
interfere with or exercise any control over the USR or any Natural Gas therein.
The Storage Operator, or his or her heirs, successors, and assigns, shall have
no right to Natural Gas in any other underground reservoir that is not subject
to the Certificate of Storage.
6)
After notice and hearing, the Commission may issue a Certificate of Storage if
it affirmatively finds, based upon substantial evidence, that the proposed USR
is geologically suitable and has a greater value or utility as a USR for the
purpose of ensuring an adequate supply of Natural Gas for any particular class
or group of consumers of Natural Gas, or for the conservation of Natural Gas,
than for the production of relatively small volumes of Native Gas which may
remain therein. The Commission shall not issue a Certificate of Storage if the
proposed USR is capable of producing oil, in paying quantities, through any
known recovery method, or is a USDW as defined in General Rule H-1.
e) Contents of Application for Certificate of Storage
1) No USF shall be
constructed or operated without the Storage Operator obtaining or holding the
necessary and sufficient property rights for construction and operation of the
USF. The Storage Operator shall provide evidence of holding such rights for any
real or personal property, or evidence the Storage Operator can obtain such
property through eminent domain proceedings related to that property. A
Certificate of Storage shall expire twelve (12) months from the date of
issuance if the Storage Wells have not been drilled and completed, or within
twenty-four (24) months if the Storage Wells have been drilled and completed
and if Storage Operations have not commenced.
2) Application for a Certificate of Storage
shall include the following:
A) A plan view
map showing:
i) The surface and extent of the
USF, indicating the proposed location of Storage Wells, Observation Wells, and
the location of all proposed pipelines and other surface facilities within the
boundary of the USF;
ii) Locations
of all other wells or boreholes, including but not limited to, water wells, oil
and natural gas exploration and development wells within the boundary of the
USF and extending 1/4 mile outside the boundary of the USF;
iii) The subsurface extent of the USR and any
buffer zone.
B) Applicant
shall submit evidence and/or information showing that the proposed USR is not a
USDW, and identify any freshwater bearing horizons known to be developed in the
immediate vicinity of the USR.
C)
Applicant shall conduct an evaluation to identify any productive oil and
natural gas zones occurring stratigraphically above, below, or within the USR,
and if productive natural gas zones are present within the USR, the applicant
shall identify and determine the remaining reserves of Native Gas within the
USR.
D) A geologic evaluation of
the USR, including an isopach map of the USR, a structure map of the top and
base of the USR, identification of all structural spill points or stratigraphic
discontinuities controlling the isolation of stored Natural Gas, and a
structural and stratigraphic cross-section that describes the geologic
conditions of the USR.
E) A
geologic evaluation of all existing information on all geologic strata
overlying the USR, including the immediate containment formation (caprock)
characteristics and all designated subsurface monitoring zones. The evaluation
shall focus on the proposed USR and provide a description of mechanisms of
geologic confinement with regard to the ability of that confinement to prevent
migration of Natural Gas beyond the proposed USR. The evaluation shall include
any available geophysical data and assessments of any regional tectonic
activity, local seismicity and regional or local fault zones, and a
comprehensive description of local and regional structural or stratigraphic
features which may impact confinement.
F) A review of all wells within the proposed
USR, which penetrate the USR or primary and/or secondary confining layers
overlying the USR, and all the wells, within one mile of the USR, which
penetrate the geologic formation to be used for storage. This review shall
determine if all abandoned wells have been plugged, and whether all unplugged
wells are constructed in a manner that prevents the movement of Natural Gas
from the USR.
G) The proposed
calculated maximum volume of the USR to be used for storage, shall include
Working Gas, Native Gas, and Cushion Gas volumes. In the event the Storage
Operator of a USF recalculates the actual reservoir volume determined and
identified to the Commission after continued operation of the Storage Facility,
then the Storage Operator shall file an application for a redetermination of
the allowed volume.
H) The proposed
maximum bottom-hole injection pressure to be utilized for the USR shall be
measured in psig, shall be no greater than ninety percent (90%) of the
formation fracture pressure as determined by a step-rate test (or other
approved method), unless a higher percentage is approved by the Commission. The
USR shall not be subjected to injection pressures in excess of the calculated
fracture pressure. The maximum allowable stabilized reservoir pressure (gauge)
shall be no greater than seventy-five percent (75%) of the fracture pressure of
the USR, as determined by a step rate test or as calculated by a method
acceptable to the Commission. The average USR pressure shall be no greater than
ninety percent (90%) of the fracture pressure.
I) A corrosion monitoring and prevention plan
for all wells and surface facilities, and a leak detection and monitoring plan
for surface facilities and wells, which shall include subsurface observation
wells to monitor any movement of Natural Gas from the USR.
J) A detailed description of the proposed
public safety and emergency response plan. The response plan shall detail the
safety procedures concerning the USF and any residential, commercial, and
public land use within one (1) mile, or any other distance as deemed necessary
by Commission beyond the outside boundary of the USF. The plan shall include
contingency plans should Natural Gas leak from any well, flow line, or any
other USF. These emergency response procedures should be updated as necessary
throughout the operational life of the USF.
K) Authority to conduct an injectivity test,
step rate test, or other injection test to determine the suitability of the
USR, prior to the issuance of the Certificate of Storage. This authority may be
approved by the Director upon issuance of the test well permit in accordance
with subsection (f) below. The Director shall establish the parameters of the
test for the protection of public safety, the USDW, and any oil and gas
resources potentially impacted by the test, and may require the submission of
any information or test data deemed necessary.
f) Permitting Storage Wells
1) No person shall drill, deepen, re-enter,
recomplete or operate any Storage or Observation Well until a Certificate of
Storage and applicable well permits have been issued by the Commission,
application for which shall be made on forms prescribed by the Director.
Permits are valid only for the permit holder stated on the permit, and shall
remain valid only if the permit holder is in compliance with established
operating requirements specified in this rule. Permits to drill, deepen, or
re-enter shall automatically expire six (6) months from the date of issuance,
unless commencement of the drilling, deepening or re-entry of plugged well
operations authorized by the permit has occurred and are continued with due
diligence, but not to exceed one (1) year from the date of commencement of the
drilling, deepening or re-entry of plugged well operations authorized by the
permit. If the activity authorized in the permit is not completed within one
(1) year, the well shall be plugged, casing set, or a new permit application,
along with a new permit fee and plat, must be filed. Failure to comply with the
operating requirements in this rule may result in revocation of the Storage or
Observation Well permit in accordance with General Rule B-1 (c).
2) No Storage Well or Observation Well may be
drilled at a surface location other than that specified on the permit. However,
if a permit holder has commenced drilling operations and the Storage or
Observation well is lost due to adverse drilling conditions prior to surface
casing being set, the permit holder may request an amendment of the permit
without a fee for the new location, provided the Storage or Observation Well
remains on the same property where the Storage or Observation Well was
originally permitted, and all other aspects of the permit request remain the
same. Movement of the Storage or Observation Well location off the original
surface owners' property, or after surface casing has been set, will require
the filing of a new permit application, along with a new permit fee and plat.
Drilling may not commence prior to the issuance of a new permit.
3) Upon issuance of a permit, a copy of the
permit shall be displayed at the site where the Storage Well or Observation
Well is being drilled for review by Commission staff.
4) The application to drill, deepen, re-enter
or recomplete a Storage Well or Observation Well shall include, at a minimum:
A) The information required by subparagraph
(f)(6) below, for the existing or proposed well, and any additional information
deemed necessary by the Director for public safety and the protection of
USDWs;
B) A permit fee in the
amount of three hundred dollars ($300.00), if the Storage Well or Observation
Well is drilled, deepened, or re-entered;
C) The minimum financial assurance of
thirty-five thousand dollars ($35,000) per well. The Director is authorized,
however, to require additional financial assurance based on, but not limited
to, how long a permit holder has operated in the State of Arkansas,
environmental consideration of the well location, other factors impacting the
cost of plugging the well and restoring the associated well site, and the
compliance history of the permit holder. The required financial assurance shall
be submitted in accordance with General Rule B-2;
D) A Form 1 Organizational Report in
accordance with General Rule B-13;
E) An oath that the application is executed
under penalty for perjury;
F) If
the applicant is a corporation, limited liability company, limited liability
partnership or other business entity, it must be incorporated, organized, or
authorized to do business in the State of Arkansas. The applicant must state
that by filing an application, the applicant irrevocably waives, to the fullest
extent permitted by law, any objection to the jurisdiction of the Commission or
to a hearing before the Commission, or in a court of competent jurisdiction in
the State of Arkansas; and
G) If
the applicant is an individual, partnership, or other entity that is not
domiciled in the State of Arkansas, the applicant must be authorized to do
business in the State of Arkansas. By filing an application, the applicant
irrevocably waives, to the fullest extent permitted by law, any objection to
the jurisdiction of the Commission or to a hearing before the Commission, or in
a court of competent jurisdiction in the State of Arkansas.
5) If the application does not
contain all of the required information or documents, the Director shall notify
the applicant in writing. The notification shall specify what additional
information or documents are necessary for an evaluation of the application and
shall state to the applicant that the application will be deemed denied unless
the information or documents are submitted within sixty (60) days following the
date of notification.
6) The
application for a Storage Well shall include the following:
A) On a form prescribed by the Director, the
applicant shall provide the name, address, phone, fax, and e-mail (if
available) of the local or on-site supervisory or field personnel responsible
for the Storage Well;
B) A survey
plat of the location and ground elevation of the proposed Storage Well or
existing well. The survey plat shall include all wells within 1/4 mile of
the proposed or existing well and the current well status of each
well;
C) The name and the
approximate top and bottom elevation, from sub-sea, of the formation
(indicating the perforated or open hole interval) into which Natural Gas will
be injected. If an existing well is to be converted, a geophysical log of the
well shall be submitted showing the above information. For a proposed well, an
induction log from a well in the immediate vicinity of the proposed disposal
well shall be submitted; and
D) A
well bore diagram of the proposed or existing well showing casing for the
Storage Well, indicating from the well head to total depth of the well, all
casings and cementing of casings, tubing and packer setting depth, and all
perforations and or open hole intervals. If application is for an existing
well, a cement bond log shall be submitted with the application, or if
submitted after the application is filed, the cement bond log shall be
submitted prior to commencement of operations as a condition of the permit. If
a cement bond log must be run, it shall be witnessed by a Commission
representative.
7) If
the application does not satisfy the requirements of this rule, the application
shall be denied. If the application is denied under this section, the applicant
may request to have the application referred to the Commission for
determination in accordance with General Rules A-2, A-3, and other applicable
hearing procedures.
g) New Non-Storage Wells Drilled, Re-Entered or Deepened Through the Storage Reservoir
1) Any new well drilled, after the
effective date of this rule, through the USR within a USF, for any purpose
other than storage shall comply with the casing programs contained in (i)(1)
below.
2) Any new well re-entered
or deepened, after the effective date of this rule, through a USR within a USF,
shall be evaluated for compliance with (i)(2) below. Wells not in compliance
shall be reworked and cemented, in accordance with (i)(2), to achieve the
necessary isolation of the USR.
3)
Well plugging requirements of a non-storage well located within the USF area
shall be the same as for a Storage Well as outlined in (k) below, and any other
additional requirements in General Rule B-9.
h) Existing Non-Storage Wells
1) Any non-storage well penetrating a USR, in
existence on or after the effective date of this rule, shall be evaluated to
determine adequate isolation of the USR. The Director may require a cement bond
log, cement evaluation log or other logs, to determine adequate isolation of
the USR. Non-storage wells which the Director has determined do not provide
adequate isolation of the USR, may be required by the Commission, after notice
and hearing, to be reworked to properly isolate the USR.
2) All casing strings or liner strings run in
any existing well, which extends through the USR, shall be cemented in
accordance with (i)(2) below.
3)
Well plugging requirements of a non-storage well located within the USF area
shall be the same as for a Storage Well as outlined in subsection (k) below,
and any other additional requirements in General Rule B-9.
i) Storage Well Construction, Operation, Maintenance and Decommissioning Requirements
1) All Storage Wells drilled after the
effective date of this rule, for the purpose of Underground Storage, shall
comply with the following requirements:
A)
All casing used in Storage Wells shall meet American Petroleum Institute
standards, shall be rated for the pressures to be encountered during the
operational life of the well, and shall either be new casing or reconditioned
casing of new quality;
B) All
casing strings shall be centralized throughout the intervals to be cemented,
and all casings shall be cemented to surface. Casing set through the USR shall
have centralizers placed near the top and bottom of the USR;
C) All cement used for casing cement shall
meet or exceed current American Petroleum Institute standards or recommended
practices. Cement should be of the appropriate type and class of cement for the
intended use and mixed to the appropriate weight. Cement pumping pressures
shall not exceed the fracture pressure of the USR. Cement slurry samples shall
be taken and properly labeled and stored by the Storage Operator for further
testing as necessary;
D) Surface
casing shall be:
i) Set at a depth of one
hundred (100) feet below any known USDW within 1/2 mile of the USF, or at
a depth of five hundred (500) feet, whichever is greater, and
ii) Cemented with a minimum of one hundred
fifty percent (150%) of the calculated annular volume to circulate cement to
the surface;
E) All wells
shall be completed with tubing and packer.
2) Any non-storage well converted for the
purpose of underground storage shall comply with the following requirements:
A) The top of cement and the degree of
bonding of the cement used to anchor the existing production casing or liner
string shall be verified by cement bond log, cement evaluation log or other
logs approved by the Director;
B)
The injection of Natural Gas shall not result in the movement of Natural Gas or
other fluids into a USDW, or other oil or Natural Gas reservoir;
C) New casing liners shall be cemented with
sufficient volume to fill the annular space to the surface; and
D) All wells shall be completed with tubing
and packer.
j) Mechanical Integrity Requirements for New and Existing Storage Wells:
1) Each Storage
Operator of a Storage Well equipped with a tubing and packer completion, shall
prove mechanical integrity of the well before placing it into service.
Mechanical integrity shall be demonstrated by pressure testing the annulus to
the permitted Storage Well injection pressure, with a minimum test pressure of
five hundred (500) psig. Following successful demonstration of mechanical
integrity, the Storage Well shall be re-tested at least every three (3)
years.
2) Each Storage Operator of
a Storage Well not equipped with a tubing and packer completion, shall prove
mechanical integrity within thirty (30) days after the effective date of this
rule. Mechanical integrity shall be demonstrated by setting a retrievable plug
within the production casing at a point fifty (50) feet above the uppermost
perforation, and pressure test the casing up to the permitted Storage Well
maximum injection pressure, with a minimum test pressure of five hundred (500)
psig. Following successful demonstration of mechanical integrity, the Storage
Well shall be re-tested at least every five (5) years.
3) The pressure test shall be continued for
thirty (30) minutes and shall not decrease by more than 10 percent (10%) of the
initial pressure over the length of the test.
4) Upon request, the Director may approve
alternate test methods, including tracer survey, temperature survey, gamma ray
log, neutron log, noise log, casing inspection log or a combination of these
methods to demonstrate mechanical integrity. All mechanical integrity alternate
test methods shall be witnessed by a Commission representative.
5) If a Storage Well fails to demonstrate or
maintain mechanical integrity, the well shall be removed from service
immediately. The Storage Operator shall notify the Commission's regional office
within four (4) hours of any well that fails or loses mechanical integrity. The
Storage Operator must take action to isolate the cause of the failure and
demonstrate to the Director that the well does not pose a threat to a USDW or
public safety.
6) Storage Wells
which fail to demonstrate mechanical integrity shall be repaired within one
hundred eighty (180) days, and successfully pass a mechanical integrity test or
be plugged.
k) Monitoring and Reporting
1) Each Storage Well
shall be monitored, on a weekly basis, for wellhead and casing annulus
pressure. All monitoring records shall be retained by the Storage Operator for
five (5) years and be available to Commission staff for review upon
request.
2) The operator of the USF
shall notify the Commission regional office of any potential leak discovered
within four (4) hours of the discovery of the leak.
3) The Storage Operator shall file, on a form
prescribed by the Director, the monthly volumes of Natural Gas injected and
withdrawn from the USR.
4) Prior to
performing any well servicing activity, cementing, or any wireline logging
activities, the Storage Operator of the USF shall provide notice to the
Commission regional office where the Storage Well is located so as to allow
Commission staff to be present to observe the activity. Any well servicing
which requires the resetting of the packer shall require that an internal
mechanical integrity test be conducted in accordance with subparagraph (j)
above, prior to recommencement of injection.
l) Storage Well Abandonment
1) A well plugging plan shall be filed with
the Commission regional office thirty (30) days prior to any planned well
plugging activity. All Storage Wells shall be plugged in a manner to
permanently isolate the USR from all other oil and Natural Gas reservoirs and
any existing USDWs within the USF area.
2) The minimum well plugging requirements are
as follows:
A) The Storage Well shall be
plugged as follows:
i) Utilizing a cement
retainer set fifty (50) feet above the top perforation in the Storage Well,
adequate cement shall be pushed into the USR to prevent pressure channeling
while the subsequent Storage Well cement plug is setting.
ii) Following completion of the Storage Well
cementing operation, an additional one-hundred fifty (150) feet of cement shall
be placed on top of the cement retainer utilized in the Storage Well cementing
operation.
B) If cement
is not present on the backside of the production casing at the required plug
depths specified in A) above, cement shall be placed on the backside of the
production casing during the Storage Well plugging operations.
C) Following the completion of the Storage
Well plugging operation, a pressure test shall be run on the casing to
determine cement integrity. If the casing fails this test, it shall be repaired
and retested prior to the subsequent plugs being set as required in accordance
with D) below.
D) Subsequent plugs
shall be set to satisfy the requirements of Rule B-9.
E) If wellbore conditions preclude the
setting of a cement retainer for the Storage Well plugging operation, an
alternative plugging method may be approved or required by the Director. In
determining whether to approve an alternative plugging method, the Director
shall consider the time and cost associated with the alternative plugging
method, the potential for damage to USDWs or other oil or gas reservoirs, the
depth of the reservoir in relation to the depth of the USDWs, well construction
characteristics, and the potential for upward migration of wellbore fluids into
a USDW.
m) Decommissioning of Underground Storage Facility
1) The Storage Operator of a USF shall file a
plan for decommissioning a USF six (6) months prior to commencement of the
decommissioning activity. The plan shall include:
A) The anticipated date of commencement and
final completion of the decommissioning activities;
B) A detailed plan and timeline for the
activities, including well plugging operations, equipment removal from the well
sites and all central or remote facilities in the USF, abandonment of
pipelines, and restoration of property as necessary;
C) The names and contact information for the
persons, consultants, contractors and firms used in the decommissioning
activity; and
D) The anticipated
reservoir pressure at abandonment.
2) The Storage Operator shall file a monthly
report on the 15th of each month indicating the work
completed for the preceding month during the decommissioning
activity.
3) At the completion of
the decommissioning, the Storage Operator shall submit a final decommissioning
report and termination of storage operations. Upon receipt of the final report
and completion of a final inspection of the USF, and all wells and facilities
by the Commission staff, the Storage Operator's Certificate of Storage shall be
terminated.
n) Federal Requirements
1) The USF is additionally
subject to and required to be in compliance with the following federal
requirements, unless the following federal requirements are less stringent than
any other applicable requirements of General Rule D-23.
2) Required federal requirements are as
follows:
A) Operation and maintenance
requirements in Federal Regulations 49 CFR, Part 192, as amended;
B) Applicable enforcement provisions of
Federal Regulation 49 CFR, Part 190, as amended;
C) Applicable incident and other reporting
requirements contained in Federal Regulation 49 CFR, Part 191, as amended (and
all such reports shall be submitted to the Oil and Gas Commission);
and
D) All Storage Operators of a
USF shall be subject to the applicable drug and alcohol testing requirements
contained in Federal Regulation 49 CFR, Part 199, as amended.
Disclaimer: These regulations may not be the most recent version. Arkansas may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
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