Code of Colorado Regulations
400 - Department of Natural Resources
404 - Oil and Gas Conservation Commission
2 CCR 404-1 - PRACTICE AND PROCEDURE
Section 608 - OIL AND GAS FACILITIES

Universal Citation: 2 CO Code Regs 404-1 ยง 608

Current through Register Vol. 47, No. 17, September 10, 2024

a. Production Liquid Storage Tanks.

(1) Atmospheric Tanks used for produced Fluids storage will be built in accordance with the following standards as applicable. Only those editions of standards incorporated by reference in Rules 608.a.(1).A-F apply; later amendments do not apply. All materials incorporated by reference in this Rule 608.a.(1) are available for public inspection during normal business hours from the Public Room Administrator at the office of the Commission, 1120 Lincoln Street, Suite 801, Denver, CO 80203. In addition, these materials are available from API, 1220 L Street, NW, Washington, DC 20005-4070, and from Underwriters Laboratories, Inc., 100 Technology Drive, Broomfield, CO 80021.
A. Underwriters Laboratories, Inc., No. UL-142, Standard for Steel Above Ground Tanks for Flammable and Combustible Liquids, 10th Edition (May 17, 2019);

B. API Standard No. 650, Welded Steel Tanks for Oil Storage, 13th Edition (March 2020);

C. API Standard No. 12B, Bolted Tanks for Storage of Production Liquids, 16th Edition (November 2014);

D. API Standard No. 12D, Field Welded Tanks for Storage of Production Liquids, 12th Edition (June 2017);

E. API Standard No. 12F, Shop Welded Tanks for Storage of Production Liquids, 13th Edition (January 2019); or

F. API Standard No. 12P, Specification for Fiberglass Reinforced Plastic Tanks, 4th edition (August 2016), only for produced water.

(2) Tanks used for produced Fluids storage will be located at least 2 diameters from the boundary of the property on which the Tank is built. Where the property line is a public right of way, the Tanks will be 2/3 of the diameter from the nearest side of the public right of way or easement.
A. Tanks with less than 3,000 Barrels capacity will be located at least 3 feet apart.

B. Tanks with 3,000 or more Barrel capacity will be located at least 1/6 the sum of the diameters apart. When the diameter of one Tank is less than 1/2 the diameter of the adjacent Tank, the Tanks will be located at least 1/2 the diameter of the smaller Tank apart.

(3) All production Tanks greater than 60 gallons will conform to minimum standards of NFPA Code 30, 2018 Edition unless otherwise specified. Only the 2018 version of NFPA Code 30 applies to this Rule; later amendments do not apply. All materials incorporated by reference in this Rule are available for public inspection during normal business hours from the Public Room Administrator at the office of the Commission, 1120 Lincoln Street, Suite 801, Denver, CO 80203. In addition, these materials are available from the NFPA, 1 Batterymarch Park, Quincy, MA, 02169-7471.

(4) At the time of installation, Tanks will be a minimum of 200 feet from any building.

(5) Unless equipped with a fired heater, Tanks will be a minimum of 75 feet from a FV or heater-treater ("HT"). No ancillary equipment that has potential ignition sources will be installed or used inside the secondary containment area.

(6) Tanks will be a minimum of 50 feet from a separator, Well test unit, or other non-fired equipment. Non-fired vapor recovery towers, transfer pumps, vapor line knockouts, and LACT units are exempt from this requirement.

(7) Tanks will be a minimum of 75 feet from a compressor with a rating of greater than or equal to 200 horsepower.

(8) Tanks will be a minimum of 75 feet from a wellhead.

(9) Gauge hatches on atmospheric Tanks used for crude oil storage will be closed, latched, and sealed at all times when not being actively accessed by trained personnel. Tanks will function as sealed and ventless with gas released only through a vapor control system or properly sized pressure relief valve.

(10) Tank Venting Standards.
A. All Tank Venting systems will be designed, constructed, and operated in accordance with API Standard 2000, Venting Atmospheric and Low Pressure Storage Tanks, 7th edition, March 2014. Only the 7th Edition of the API standard applies to this Rule; later amendments do not apply. All materials incorporated by reference in this Rule are available for public inspection during normal business hours from the Public Room Administrator at the office of the Commission, 1120 Lincoln Street, Suite 801, Denver, CO 80203. In addition, these materials are available from API at 1220 L Street, NW Washington, DC 20005-4070.

B. Except for individual blowdown lines used to depressurize Tanks prior to opening gauge hatches, vent lines from individual Tanks will be joined and ultimate discharge will be directed away from the loading racks and FV pursuant to API RP 12R-1, Installation, Operation, Maintenance, Inspection, and Repair of Tanks in Production Service, 6th Edition, March 2020. Only the 6th Edition of API RP 12R-1 applies to this Rule; later amendments do not apply. All materials incorporated by reference in this Rule are available for public inspection during normal business hours from the Public Room Administrator at the office of the Commission, 1120 Lincoln Street, Suite 801, Denver, CO 80203. In addition, these materials are available from API, 1220 L Street, NW, Washington, DC 20005-4070.

C. During drilling, completion, production, and storage operations, all sealed Tanks will be designed for a minimum of 4 ounces of backpressure. Vent/back pressure valves, the combustor, lines to the combustor, and knock-outs will be sized and maintained so as to safely accommodate any surge the system may encounter. Operators will properly maintain, and periodically test, Tank seals to ensure that they provide the required back pressure and prevent emissions.

(11) During hot oil treatments on Tanks containing 35 degrees or higher API gravity oil, hot oil units will be located a minimum of 100 feet from any Tank being serviced.

(12) Labeling of Tanks. All Tanks and Containers will be labeled pursuant to Rule 605.h.

(13) All open-topped Tanks will be equipped with screens or other appropriate equipment to prevent entry by wildlife, including birds and bats.

(14) Change in Service. Tanks undergoing change in service will be emptied, cleaned, and re-labeled for the new use (if any). Operators will manage all waste generated during change in service pursuant to Rule 906.

b. Fired Vessel, Heater-Treater, and Separation Equipment.

(1) Fired vessels ("FV") including heater-treaters ("HT") will be minimum of 50 feet from separators or Well test units.

(2) FV-HT will be a minimum of 50 feet from a lease automatic custody transfer unit ("LACT").

(3) FV-HT will be a minimum of 40 feet from a pump.

(4) FV-HT will be a minimum of 75 feet from a Well.

(5) At the time of installation, FV-HT will be a minimum of 200 feet from a Residential Building Unit.

(6) Vents on pressure safety devices will terminate in a manner so as not to endanger the public or adjoining facilities. They will be designed to be clear and free of debris and water at all times.

(7) All stacks, vents, or other openings will be equipped with screens or other appropriate equipment to prevent entry by wildlife, including birds and bats.

(8) All separation equipment will be designed, constructed and maintained according to API Spec 12J, Specification for Oil and Gas Separators, 8th edition, October 2008. Only the 8th Edition (2008) of API Spec 12J applies to this Rule; later amendments do not apply. All materials incorporated by reference in this Rule are available for public inspection during normal business hours from the Public Room Administrator at the office of the Commission, 1120 Lincoln Street, Suite 801, Denver, CO 80203. In addition, these materials and are available from API, 1220 L Street, NW, Washington, DC 20005-4070.

c. Special Equipment. The Director may require an Operator to employ special equipment to protect public safety.

(1) All Wells located within 500 feet of a Residential Building Unit will be equipped with an automatic isolation valve that will shut the Well in when a sudden change of pressure, either a rise or drop, occurs. Automatic isolation valves will be designed so they are fail safe.

(2) Isolation valves required by Rule 608.c.(1) will be electronic or activated by a secondary gas source supply, and will be inspected at least every 3 months to ensure the valves are in good working order and that the secondary gas supply has volume and pressure sufficient to activate the isolation valve.

d. Static Charge, Lightning, and Stray Current Requirements. All equipment will be designed and operated in a manner to prevent accumulation of static charge pursuant to API RP 2003, Protection Against Ignitions Arising Out of Static, Lightning, and Stray Currents, 8th Edition, September 2015. Only the 8th Edition (2015) of API RP 2003 applies to this Rule; later amendments do not apply. All materials incorporated by reference in this Rule are available for public inspection during normal business hours from the Public Room Administrator at the office of the Commission, 1120 Lincoln Street, Suite 801, Denver, CO 80203. In addition, these materials are available from API, 1220 L Street, NW, Washington, DC 20005-4070.

e. Mechanical Conditions. All Production Facilities, valves, pipes, fittings, and vessels will be securely fastened or sealed, inspected at regular intervals, and maintained in good mechanical condition. All equipment will be engineered, operated, and maintained within the manufacturer's recommended specifications.

f. Buried or Partially Buried Tanks, Vessels, or Structures.

(1) Buried or partially buried Tanks, vessels, or structures used for storage of produced Fluids and E&P Waste will be properly designed, constructed, installed, and operated in a manner to prevent leaks, contain materials safely, and according to manufacturer specifications.

(2) Buried or partially buried Tanks, vessels, or structures will be underlain by an impermeable synthetic or engineered liner that extends to the surface and ties into the secondary containment. In lieu of an impermeable liner, double walled Tanks may be used to meet the requirements of this Rule 608.f.(2).

(3) Operators will inspect or test buried or partially buried Tanks, vessels, or structures for leaks at least annually. Operators will maintain records documenting tests conducted pursuant to this Rule 608.f.(3) for 5 years, and provide the records to the Director upon request.

(4) If any leaks are detected, Operators will repair or replace the Tank, vessel, or structure to prevent future Spills or Releases of E&P Waste. Operators will report, investigate, and remediate any Spill or Release pursuant to Rules 912 & 913.

g. Fluid Handling Equipment. Any piece of Fluid handling equipment that is not a Tank or Flowline, including temporary equipment, and regardless of the volume the equipment is designed to hold, will have either general secondary containment around the equipment, or a written Spill contingency plan. The written Spill contingency plan will include at least the following standards:

(1) A written commitment of manpower, equipment, and materials required to expeditiously control and contain all discharged Fluids;

(2) A schedule and protocol for periodic visual inspection or testing flow-through process vessels and associated components (such as dump valves) for leaks, corrosion, or other conditions that could lead to a discharge;

(3) Procedures for taking corrective action or making repairs to flow-through process vessels and any associated components as indicated by regularly scheduled visual inspections, tests, or evidence of a discharge; and

(4) Procedures for prompt removal, Remediation, and reporting, if required, for any accumulations of discharges.

Disclaimer: These regulations may not be the most recent version. Colorado 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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