Current through Register Vol. 51, No. 3, September 1, 2024
RELATES TO: KRS 353.180(3), 353.510, 353.520, 353.550,
353.570(1), (2), 353.590, 353.992, 40 C.F.R. 146.6, 42 U.S.C. 300j-6
NECESSITY, FUNCTION, AND CONFORMITY: KRS 353.540 authorizes the
Department for Natural Resources to administer and enforce the provisions of
KRS 353.500 through 353.720. KRS 353.520 prohibits the waste of oil and gas;
the unreasonable damage to underground fresh or mineral water supply, workable
coal seams, or other mineral deposits in the operations for the discovery,
development, production, or handling of oil and gas; the unnecessary or
excessive surface loss or destruction of oil or gas or their constituents; and
the drowning with water of any stratum or part thereof capable of providing oil
or gas in paying quantities, except for secondary recovery or disposal purposes
or in hydraulic fracturing or other completion practices. KRS 353.592
authorizes the department to develop a regulatory program for the purpose of
accepting primary responsibility for the administration of the Underground
Injection Control Program. This administrative regulation establishes
requirements for the drilling, casing, operation, plugging, construction,
conversion, and maintenance of Class II wells and the protection of fresh water
zones from contamination associated with the production of oil and gas.
Section 1. Definitions. Terms defined by KRS 353.510 and this section shall apply to this administrative regulation.
(1) "Administrator" means the regional
administrator for Region IV of U.S. EPA.
(2) "Aquifer" means an underground geological
formation, group of formations, or part of a formation that is capable of
yielding a significant amount of water to a well or spring.
(3) "Area of review" means that area within
not less than a fixed radius of one-fourth (1/4) mile around an injection well,
except that at the request of the permit applicant and approval of the
director, the area of review may be deemed to be the zone of endangering
influence calculated in accordance with 40 C.F.R. 146.6.
(4) "Casing" means a pipe or tubing of
appropriate material, of varying diameter and weight, lowered into a borehole
during or after drilling in order to support the sides of the hole and prevent
the walls from caving, to prevent loss of drilling mud or fluids into porous
ground, or to prevent water, gas, or other fluid from entering or leaving the
hole.
(5) "Cementing" means the
operation in which a cement slurry is displaced around the casing's
annulus.
(6) "Class II well" means
a well that injects fluids:
(a) Brought to the
surface in connection with natural gas storage operations, or conventional oil
or natural gas production and could be commingled with waste waters from gas
plants, which are an integral part of production operations, unless those
waters are classified as a hazardous waste upon injection;
(b) For enhanced recovery of oil or natural
gas;
(c) For permanent disposal of
produced brine water; or
(d) For
storage of hydrocarbons that are liquid at standard temperature and
pressure.
(7)
"Commercially producible" means a well that could be used commercially for the
production of oil and gas or for Class II injection.
(8) "Confining zone" means a geological
formation, group of formations, or part of a formation that is capable of
limiting fluid movement above an injection zone.
(9) "Contaminant" means any physical,
chemical, biological, or radiological substance or matter in water.
(10) "Date of primacy" means the effective
date of the Administrator's approval of Kentucky's Underground Injection
Control (UIC) Program made pursuant to 42 U.S.C. 300h-4, Section 1425.
(11) "Division" means the
Kentucky Division of Oil and Gas.
(12) "Endangerment" means that an injection
operation could result in the presence of a contaminant in ground water, which
supplies or could reasonably be expected to supply any public water system, and
the presence of that contaminant, or any contaminant, could result in violation
of any national primary drinking water regulation or could adversely affect the
health of persons.
(13) "EPA" means
the United States Environmental Protection Agency.
(14) "Flow rate" means the volume per time
unit given to the flow of gases or other fluid substance that emerges from an
orifice, pump, or turbine or passes along a conduit or channel.
(15) "Fluid" means any material or substance
that flows or moves in a semisolid, liquid, sludge, gas, or other form or
state.
(16) "Formation breakdown
pressure" means indicated values from data recorded prior to and during squeeze
cementing, acidizing, or hydraulic fracturing treatments performed by service
companies. These breakdown pressure values are frequently reported as the
surface gauge pressure that shall, through appropriate engineering
calculations, be modified to reflect the pressure at which an exposed formation
fractures and allows fluid to be injected into the formation.
(17) "Freshwater zone" means an underground
source of drinking water.
(18)
"Ground water" means water below the land surface in an aquifer's zone of
saturation.
(19) "Injection well'
means a well into which fluids are being injected.
(20) "Injection zone" means a geological
formation, group of formations, or part of formation receiving fluids through a
well.
(21) "Mechanical integrity"
means a condition of injection wells that exists if there is not leakage in the
well's casing, tubing, or packer and if there is not fluid movement into an
underground source of drinking water through vertical channels adjacent to the
well bore.
(22) "Owner or operator"
means the company or person having secured a permit for:
(a) A new or converted well; or
(b) A rule authorized well in operation prior
to the effective date or primacy, as defined by subsection (10) of this
section.
(23) "Packer"
means a device lowered into a well to produce a fluid-tight seal.
(24) "Plugging" means the act or process of
stopping the flow of water, oil, or gas into or out of a formation through a
borehole or well penetrating that formation by the placement of cement plugs in
the wellbore.
(25) "Project" means
a group of wells in a single operation.
(26) "Public water system" means a system for
the provision to the public of piped water for human consumption, if the system
has at least fifteen (15) service connections or regularly serves at least
twenty-five (25) individuals.
(27)
"Underground source of drinking water or "USDW" means an aquifer or its
portion, which is not an exempted aquifer and that:
(a)
1.
Supplies any public water system; or
2. Contains a sufficient quantity of
groundwater to supply a public system; and
(b)
1.
Currently supplies drinking water for human consumption; or
2. Contains less than 10,000 mg/l total
dissolved solids.
(28) "Well" means a borehole drilled, or
proposed to be drilled, for the purpose of:
(a) Producing natural gas or petroleum, or
one through which natural gas or petroleum is being produced; or
(b) Injecting water, gas, or other fluid or
one into which water, gas, or other fluid is being produced.
Section 2. General.
(1) A person shall not drill a Class II well
without first obtaining a permit to drill pursuant to KRS 353.570(1) and (2).
(2) A person shall not inject
fluids to the subsurface through a Class II well without the authorization of
the division in the form of a permit issued pursuant to Section 11 of this
administrative regulation.
(3) The
owner or operator of a Class II well shall maintain financial responsibility
and resources to close, plug, and abandon the underground injection operation
pursuant to the requirements in Section 8 of this administrative
regulation.
(4) The fee
requirements for an application to drill a new Class II injection well pursuant
to KRS 353.590(2)(a) and a fifty (50) dollar fee pursuant to KRS 353.590(2)(b)
shall suffice for and be applicable to the permit to inject.
(5) The permit to operate any Class II well
may be transferred to a successor only after notice is given to the division on
the Well Transfer for UIC Wells, Form OG-26, and shall include at least:
(a) The original operator's company name and
address;
(b) The successor's
company name and address;
(c) The
permit number of the well;
(d) The
Carter Coordinate location;
(e) The
farm name and well number;
(f)
Signatures of the original operator and the successor or that of their official
representatives; and
(g) A
statement that the successor assumes all responsibility for the well and
provides financial responsibility pursuant to Section 8 of this administrative
regulation.
(6) A Class
II well with an outstanding noncompliance shall not be transferred, unless the
successor is willing to correct deficiencies and submit a corrective action
plan approved by the division pursuant to subsection (11) of this
section.
(7) A Class II well shall
be plugged in the manner established in 805 KAR 1:060.
(8) An injection permit shall not be issued
unless the applicant demonstrates that the Class II well shall not cause the
endangerment of a USDW.
(9)
(a) If the casing and cementing of a Class II
well is inadequate and movement of fluids cause the endangerment of a USDW, the
division shall require the owner or operator of a well to take necessary
corrective action.
(b) Corrective
action shall be completed within ninety (90) days of notification from the
division to the owner or operator.
(c) Injection shall not be authorized until
the corrective action has been completed and mechanical integrity has been
demonstrated.
(10)
(a) In administering and applying this
administrative regulation, the division shall, as practicable, take into
account the varying geologic, hydrological, and historical conditions in
different areas within the state.
(b) The division may, if consistent with
other provisions of this section, upon submittal of the Class II Well Permit
Application for Underground Injection Control, Form OG-14 and after notice and
hearing, grant a variance from any requirement established in subsection (8) of
this section upon a demonstration that alternate prudent engineering practices
shall protect a USDW.
(11) The division may modify, suspend, or
revoke a Class II well permit if the injection operation is altered in a way
that does not adequately protect the USDW or if a mechanical integrity failure
or downhole condition compromises the injection system.
Section 3. Exempted Aquifers. An aquifer or a
portion thereof that complies with the criteria established in this section for
a USDW may be determined by the division to be an "exempted aquifer" if it:
(1) Does not currently serve as a source of
drinking water; and
(2) Cannot now
and shall not in the future serve as a source of drinking water because:
(a) It is mineral, hydrocarbon, or geothermal
energy producing, or could be demonstrated to contain minerals or hydrocarbons
that, considering their quantity and location, are expected to be commercially
producible;
(b) It is situated at a
depth or location that makes recovery of water for drinking water purposes
economically or technologically impractical;
(c) It is so contaminated that it would be
economically or technologically impractical to render that water fit for human
consumption; or
(d) The total
dissolved solids content of the groundwater is more than 3,000 mg/l, and less
than 10,000 mg/l and it is not reasonably expected to supply a public water
system.
Section
4. Requirements Applicable to Class II Well Permits. Authorization
to inject fluids through a Class II well shall be conditioned upon compliance
with the requirements established in subsections (1) through (5) of this
section:
(1)
(a) The owner or operator shall promptly
notify the director in writing of any modification in the manner in which the
injection operation is conducted or of any mechanical failure or downhole
problem encountered in the operation of the Class II well or upon recognition
of a failure in an injection system.
(b) A well or wells that appear to be leaking
shall be shut down immediately and correction procedures shall be initiated
within fifteen (15) days, or the permit to inject may be revoked.
(c) The notice to the director shall describe
all proposed modifications or corrective actions and shall be subject to the
approval of the director based on the requirements of this administrative
regulation.
(2) The
owner or operator shall give the division upon presentation of credentials,
access to Class II wells and related facilities for the purpose of conducting
inspections, witnessing mechanical integrity tests, implementing corrective
action operations and plugging procedures, and testing samples of injected
fluids.
(3)
(a) The owner or operator shall regulate the
injection pressure so that the pressure in the injection zone does not initiate
new fractures or propagate existing fractures in the confining zone that would
cause the movement of injected fluids into a USDW.
(b) The division may, if necessary to ensure
compliance with this requirement, establish limitations on the wellhead
pressure at which a Class II well shall be operated.
(c) Any limitation shall be included as a
permit condition or through an order issued after notice and opportunity for
hearing.
(4)
(a) The owner or operator shall provide for
the mechanical integrity of the well by operating without leaks in the casing,
tubing, or packer and without fluid movement into a USDW through vertical
channels adjacent to the well bore.
(b) The owner or operator shall, upon request
of the division, conduct tests of the mechanical integrity of the Class II
well, utilizing a method approved by the division as required in Section 6 of
this administrative regulation.
(c)
Each Class II well shall be tested for mechanical integrity at least every five
(5) years pursuant to Section 6(6) of this administrative regulation.
(d) An alternative mechanical integrity test
authorized by the division in accordance with the requirements established in
this administrative regulation shall be approved by the division.
(5)
(a) The owner or operator shall monitor and
record injection pressures rates and volumes at least monthly and shall submit
on a completed and notarized Annual Disposal or Injection Well Monitoring
Report, Form OG-18 provided by the division, an annual report of the results of
monitoring to the division.
(b) The
owner or operator shall retain all of the records on file for a period of at
least five (5) years.
(c) The owner
or operator of hydrocarbon storage or enhanced recovery wells may monitor them
by manifold monitoring on a field or project basis rather than on an individual
well basis if the facilities consist of more than one (1) injection well,
operated with a common manifold, and if the owner or operator demonstrates to
the division that manifold monitoring is equivalent to individual well
monitoring.
Section
5. Construction Requirements for Class II Wells.
(1)
(a) A
class II injection well proposed to be constructed after the effective date of
primacy shall be constructed in accordance with applicable provisions of KRS 353.570(1) and (2) and 805 KAR 1:020 in a manner that shall prevent injected
fluids from escaping to a USDW.
(b)
Existing Class II wells authorized by EPA shall be exempt from this requirement
unless the division determines in accordance with the requirements of this
administrative regulation that corrective action is necessary to prevent
injected fluids from escaping into a USDW.
(c)
1. A
freshwater string of casing shall extend at least fifty (50) feet below the
freshwater depth stated on the permit or the base of the deepest fresh water,
whichever is greater.
2. All
freshwater casing strings shall have cement circulated to fill the annular
space of the casing.
3. This casing
shall be cemented to assure the circulation of the cement to the
surface.
4. The long string of
casing shall extend at least from the surface to immediately above the
injection interval, and shall have a minimum of 300 feet of cement behind the
lowermost 300 feet of casing.
5. If
the fresh water is not protected by a separate string of casing, then the long
string shall be cemented with circulation of cement back to surface.
(d) Tubing shall be installed in
the casing with a packer set at a depth not to exceed fifty (50) feet above the
injection zone.
(e) The owner or
operator shall provide a detailed description of the casing plan on the Casing
and Cementing Plan for UIC Wells, Form OG-25, and submitted with the Class II
Well Permit Application for Underground Injection Control, Form OG-14 for
permit to inject.
(f) The casing
plan shall be approved by the director and shall include a listing of the
casing size, type, grade, depth of each casing string, and the class and volume
of the cement to be used.
(2)
(a) An
active oil and gas well or an abandoned or plugged well reopened for the
purpose of conversion to a Class II injection well shall satisfy the
requirements for cementing of a Class II well.
(b) If perforation of existing casing is
required to satisfy the cementing requirements during the conversion of the
well to a Class II well, a tubing and packer shall be installed in the existing
casing to the area immediately above the injection interval, not to exceed
fifty (50) feet above the injection interval.
(3) A Class II disposal well shall be
designed to ensure that disposal zones are hydraulically isolated from
USDW.
(4) The owner or operator
shall provide the division with all required geophysical logs and results of
tests conducted during the drilling and completion of a Class II well that
specifically relate to the USDW, the confining zone adjacent to it, and the
injection and adjacent formations, and shall include a:
(a) Geophysical log marked to indicate all
fresh water zones, the confining zone and the injection interval;
(b) Geologic description of the confining and
injection zone that shall include the lithologic description, geologic name,
and thickness; and
(c)
1. Report describing the nature of fluids and
formation pressure in the injection zone.
2. This information shall be obtained from
geophysical logs, physical examinations of samples and cores, and chemical
analysis, and shall be prepared by a professional geologist registered by the
state of Kentucky.
3. The owner or
operator may substitute information from nearby wells if comparable to the
injection well, and in the case of an area permit, if sufficient information is
available from wells within the field to adequately describe the whole
field.
Section
6. Mechanical Integrity Requirements for Class II Injection Wells.
(1)
(a)
Operators shall demonstrate mechanical integrity of new and existing Class II
injection wells.
(b) The owner or
operator shall submit a plan to demonstrate mechanical integrity with the
application for permit to inject.
(2) An injection well shall be determined to
have mechanical integrity if:
(a) There are
not leaks in the casing, tubing, or packer; and
(b) There is not fluid movement into an
underground source of drinking water through vertical channels adjacent to the
injection well bore.
(3)
One (1) of the following methods shall be used to evaluate the absence of
significant leaks as established in subsection (2)(a) of this section:
(a) Following an initial pressure test,
performed with liquid or gas, monitoring of the tubing and casing annulus
pressure with sufficient frequency to be representative, as determined by the
division in accordance with subsection (5)(c) of this section, while
maintaining an annulus pressure different from atmospheric pressure measured at
the surface; or
(b) Records of
monitoring demonstrating the absence of significant changes in the relationship
between injection pressure and injection flow rate for the following Class II
enhanced recovery wells:
1. Existing wells
completed without a packer if a pressure test has been performed and the data
is available and if more than one (1) pressure test shall be performed at a
time when the well is shut down and if the running of the test does not cause
further loss of significant amounts of oil or gas; or
2. Existing wells constructed without a long
string casing but with surface casing, which terminates at the base of fresh
water, if local geological and hydrological features allow this construction
and provided further that the annular space shall be visually inspected. For
these wells, the division shall establish a monitoring program, which shall
verify the absence of significant fluid movement from the injection zone into
an USDW.
(4)
One (1) of the following methods shall be used to confirm the absence of fluid
movement as established in subsection (2)(b) of this section:
(a) The results of a temperature log, noise
log, or cement bond log;
(b)
Cementing records demonstrating the presence of adequate cement to prevent a
migration; or
(c) other methods
approved by the director, which comply with the requirements of this
administrative regulation.
(5)
(a) The
mechanical integrity test shall be performed on the annulus of the tubing and
casing.
(b) A minimum pressure of
300 psi shall be applied to the annulus of the tubing and casing.
(c) The well shall be considered to have
mechanical integrity if, at the end of thirty (30) minutes, there is no more
than a plus or minus of three (3) percent change of the test pressure on the
gauge.
(d) A mechanical integrity
test shall be witnessed by division field inspector, who shall determine if the
mechanical integrity test was successful.
(e) The division may require higher test
pressures to be used if the anticipated injection pressure will be
high.
(f) In the event a mechanical
integrity test failure occurs, the owner or operator shall initiate corrective
measures within thirty (30) days of the initial failure and perform a follow-up
test within thirty (30) days after the completion of corrective measures. If
the corrective measures require removal of the packer from the wellbore, the
owner or operator shall submit a completed and notarized Class II Well Re-Work
Report, Form OG-4 documenting the work performed.
(g) The test results shall be filed on the
Certification of Mechanical Integrity, Form OG-22.
(6)
(a) The
owner or operator of a Class II well shall schedule at five (5) year intervals
or less, a mechanical integrity test as established in subsection (5) of this
section.
(b) The owner or operator
shall certify the test results to the division in writing within fifteen (15)
days of completion of the test.
(7)
(a) The
owner or operator shall not perform a mechanical integrity test of a Class II
well without giving written notice to the division on the Application for Class
II Internal Mechanical Integrity Test, From OG-44 within fifteen (15) calendar
days prior to the proposed test date.
(b)The division shall then notify the owner
or operator of the earliest possible date available to test the well.
Section 7. Area of
Review for Class II Wells. The owner or operator shall supply the following
information if applying for a permit to inject pursuant to Section 11 of this
administrative regulation:
(1) A description
of the area of review, which shall be determined by:
(a) A fixed radius of one-fourth (1/4) mile
around the injection well, or one-fourth (1/4) mile around the permit area
boundary; or
(b) The zone of
endangering influence calculated in accordance with 40 C.F.R. 146.6 for an area
of review less than one-fourth (1/4) mile;
(2) A map showing the following information
within the area of review:
(a) Existing
producing wells, injection wells, abandoned wells, dry holes, and water
wells;
(b) Surface and subsurface
mines, quarries, and other pertinent surface features including residences,
roads, and faults; and
(c) The
distribution manifold applying injection fluid to all wells in the area of
review including all system monitoring points, for those injection wells, if
operating from a common manifold;
(3) The following data for wells within the
area of review:
(a) A tabulation of data,
reasonably available from public records or otherwise known to the applicant,
including a description of well type, construction, date drilled, location,
depth, record of plugging or completion, and applicable additional information;
and
(b) The record of completion
and plugging for each well that penetrates the injection zone, and any other
wells within the area of review wells that would be affected by any proposed
increase in pressure if the injection well is to be operated over the fracture
pressure of the injection formation; and
(4)
(a) For
wells in the area of review that are improperly sealed, completed, or
abandoned, a corrective action plan that consists of steps or modifications as
necessary to prevent movement of fluid into underground sources of drinking
water.
(b) The division shall
consider the following criteria and factors during evaluation of the corrective
action plan:
1. Nature and volume of injected
fluids;
2. Nature of native fluids
or by-products of injection;
3.
Potentially affected population;
4.
Geology;
5. Hydrology;
6. History of injection operations;
7. Completion and plugging records;
8. Plugging procedures upon abandonment;
and
9. Hydraulic connections with
underground sources of drinking water.
Section 8. Financial
Responsibility.
(1) The owner or operator of a
Class II well shall demonstrate financial responsibility to plug and abandon a
well based on projected plugging cost estimates on the Class II Plugging and
Abandonment Plan, Form OG-41. The form shall be reviewed for completeness and
adequacy to protect the USDW.
(a) Financial
responsibility of existing Class II wells prior to the date of primacy shall be
submitted to the division pursuant to Section 9 of this administrative
regulation.
(b) The owner or
operator of a Class II well authorized by a permit to inject pursuant to this
administrative regulation shall, upon application, demonstrate financial
responsibility and submit the plugging abandonment plan in accordance with 805 KAR 1:060.
(2)
(a) If the division issues a letter of
violation, forfeits the individual bond, and subsequently plugs the well, the
owner or operator shall be responsible for any additional costs expended by the
division for plugging the well that exceeds the bond amount.
(b) These costs, if not paid, shall be
recovered by civil suit pursuant to KRS 353.180(3).
(c) In addition to the recovery of costs, the
owner or operator shall be subject to penalties as established in KRS 353.992.
Section
9. Transitional Requirements for Owner or Operators of Class II
Wells.
(1)
(a) The division shall accept a Class II well
permit, including rule authorized wells, issued under the authority of the EPA
administered program. Rule authorized wells shall be deemed permitted by the
division, if the owner or operator satisfies the requirements this
section.
(b) The division shall:
1. Accept records from EPA of all authorized
wells; and
2. Create an inventory
of approved existing wells.
(c) The financial responsibility
demonstration required in Section 8 of this administrative regulation and the
submission of the plugging and abandonment plan in Section 10 of this
administrative regulation shall be completed within ninety (90) days following
the effective date of primacy.
(d)
If the existing bond posted with EPA complies with the requirements of Section
8 of this administrative regulation and is transferable to the division, the
transfer of the bond shall be accepted by the division.
(2)
(a) The
owner or operator of a Class II well having a mechanical integrity test
approved by EPA shall remain on the same schedule of mechanical integrity tests
upon the effective date of primacy.
(b) A copy of all documents showing approval
by EPA of the well's mechanical integrity and a copy of all forms, test data,
and logs required by and submitted to EPA shall be submitted to the division
within ninety (90) days of the effective date of primacy.
(3) The owner or operator with a pending
application submitted for Class II wells under the EPA program may transfer a
pending application to the division and shall satisfy the permitting
requirements in Section 11 of this administrative regulation upon the effective
date of primacy.
Section
10. Plugging and Abandonment of Class II Wells.
(1) A Class II well shall be plugged in
accordance with 805 KAR 1:060.
(2)
The owner or operator shall provide a detailed description of the proposed
plugging procedure and costs on the Class II Plugging and Abandonment Plan,
Form OG-41, and submitted for approval with a completed and notarized Class II
Well Permit Application for Underground Injection Control, Form OG-14 for
permit to inject.
(3) The owner or
operator shall notify the division in writing thirty (30) days prior to
plugging and shall schedule with the division inspector a time and date for
performing the plugging procedure.
(4) The inspector shall schedule the earliest
date available.
(5) Upon completion
of the plugging, the owner or operator shall file a plugging affidavit on
Affidavit to Time and Manner of Plugging and Filling Well, Form OG-38,
incorporated by reference in 805 KAR 1:060.
(6) After cessation of operations of two (2)
years, the owner or operator shall plug and abandon the well in accordance with
the plan, unless a notice is sent to the division describing actions or
procedures that the owner or operator shall take to ensure that the well shall
not cause the endangerment of a USDW during the period of temporary
abandonment. These actions and procedures shall include compliance with the
technical requirements applicable to active injection wells.
Section 11. Requirements for a
Permit to Inject into a Class II Well. All persons seeking a permit to inject
into a Class II well shall, after the effective date of primacy, comply with
the requirements of this section.
(1) A person
shall not inject fluids into the subsurface through a Class II well without
obtaining a permit to inject.
(2)
An application for a permit to inject shall be submitted on a notarized Class
II Plugging and Abandonment Plan, Form OG-14, and shall include:
(a) A statement by the owner or operator as
to whether the well will be used for enhanced recovery, hydrocarbon storage, or
for disposal purposes;
(b) The
approximate depth of the deepest known freshwater zone;
(c) In accordance with 805 KAR 1:030, a
location plat for a permit to inject into a Class II injection well;
(d) An area of review map prepared on a 7.5
minute quadrangle topographic map and including:
1. The location of all known freshwater
wells;
2. The location and
completion or plugging record of all wells, whether producing or
plugged;
3. The location of
hazardous waste treatment or disposal facilities;
4. The location of rivers or
streams;
5. The location of
quarries and surface and subsurface mines;
6. The location of faults; and
7. The location of permanent
residences;
(e) A
schematic diagram of the well showing the:
1.
Total depth of the plugback of the well;
2. Depth of the injection or disposal
interval;
3. Geological name of the
injection or disposal zone;
4.
Geological name, thickness, and description of the confining zone;
5. Vertical distance separating the uppermost
extremity of the injection zone from the base of the lowest USDW;
6. Depth of the top and the bottom of the
casing and the cement;
7. Size of
the casing and tubing and the depth of the packer; and
8. Depth to the base of the lowermost
underground source of drinking water;
(f) For the conversion of an existing well, a
copy of the completion report and any available geophysical log of the
well;
(g) Proposed operating data,
including:
1. The geological name, depth, and
location of the source of the injection fluid;
2. A standard laboratory analysis of a
representative sample of the fluid to be injected in accordance with the
proposed Class II permit, with the following parameters, as established in 40 C.F.R. 136.3 and 40 C.F.R. Part 261 Appendix III:
a. Barium if sulfate is less than 500
mg/l;
b. Calcium;
c. Total Iron;
d. Magnesium;
e. Sodium;
f. Bicarbonate;
g. pH;
h. Specific Gravity;
i. Carbon Dioxide;
j. Total Dissolved Solids; and
k. Hydrogen Sulfide if H2S odor is
detected;
3. A material
safety data sheet for inhibitors if added to the injection fluid for control of
scaling, corrosion, or bacterial growth;
4.
a. The
nature of the annulus fluid to be used in the annulus between the tubing and
casing.
b. This description shall
include the type of fluid to be used and the corrosivity of the annulus
fluid.
c. The amount of inhibitor
to be added shall be listed; and
5. The proposed maximum injection rate and
pressure. The owner or operator shall limit injection pressure to either a
value:
a. That does not exceed a maximum
injection pressure at the wellhead calculated to assure that the pressure
during injection does not initiate new fractures or propagate existing
fractures in the confining zone adjacent to an underground source of drinking
water and shall not cause the movement or injection of fluids into an
underground source of drinking water; or
b. For wellhead pressure calculated by using
the following formula: Pmax = (0.733 psi/ft -(.433 psi/ft (Sg)))d, Where: Pmax
= Maximum injection pressure (psia) at the wellhead; Sg = Specific gravity of
the injected fluid; and d = Depth to the top of the injection zone in
feet;
c. Alternate maximum
injection pressures calculations may be utilized using instantaneous shut-in
pressures recorded after stimulation treatments in adjacent wells in the same
formation as the proposed injection zone;
(h) The location and description of each
underground source of drinking water through which the well would
penetrate;
(i) A description of the
current or proposed casing program on the Casing and Cementing Plan for UIC
Wells, Form OG-25, including the:
1. Casing
size, weight, and type;
2. Cement
volume and type; and
3. Packer
type;
(j) A description
of all proposed stimulation programs;
(k) A description of proposed plans to cope
with all shut-ins or well failures, so as to prevent migration of fluids into
any underground source of drinking water;
(l) If a manifold monitoring program is
utilized, a description of the program and a demonstration equivalence to
individual well monitoring;
(m) A
corrective action plan, which shall be submitted for all wells within the area
of review as required in Section 7(4) of this administrative
regulation;
(n) A demonstration of
financial responsibility as required in Section 8(2) of this administrative
regulation and a plugging and abandonment plan as required in Section 10 of
this administrative regulation; and
(o) The plan by the owner or operator of
mechanical integrity. Each well shall be tested for mechanical integrity using
the method as established in Section 6(5) of this administrative
regulation.
(3) An
application for permit shall be signed by the owner or operator of the
injection well, including corporate officers, general partners, sole
proprietors, or other persons authorized to execute documents on behalf of the
applicant.
(4) With respect to an
application, a Class II Well Permit Application for Underground Injection
Control, Form OG-14, for a Class II well, an applicant shall personally or by
certified mail submit a written notification describing the proposed well to
each of the following persons, if the described property is located within
one-quarter (1/4) mile of the proposed well:
(a) The owner or operator of each well for
oil and gas purposes, including a well having temporary abandonment status as
established in this administrative regulation or not yet in
production;
(b) The permittee of an
underground mine permitted under KRS Chapter 350; and
(c) Each owner of rights to surface or
subsurface property that the well penetrates.
(5)
(a)
1. The notification required pursuant to this
subsection shall state that a person who wishes to object to issuance of the
permit shall, within thirty (30) days of receipt of the notification, submit
written comments or request a hearing.
2. The notification shall include the address
to which written comments or the hearing request shall be forwarded and where
additional information may be obtained.
(b)
1. In
addition to the notification required pursuant to this subsection, the
applicant shall cause a notice of a permit application to be placed in a
newspaper of general circulation in the county where the proposed well is
located.
2. Individual and
publication notices shall include:
a. The name
and address of the applicant;
b.
The location of the proposed well;
c. The geological name and depth of the
injection zone;
d. The maximum
injection pressure; and
e. The
maximum rate of barrels each day.
3. The notice shall state that a person who
wishes to object to issuance of the permit may, within thirty (30) days of
publication of the notification, submit written comments or request a
hearing.
4. The notification shall
include the address to which the written comments or hearing requests shall be
forwarded, how a person may receive written notice of the proceedings, and
where additional information concerning the proposed permit may be
obtained.
5. Proof of service of
the notification required in this subsection shall be delivered to the division
before a permit for a Class II well shall be issued.
(6)
(a) The owner or operator shall verbally
notify field inspectors at least five (5) days before all mechanical integrity
tests are performed.
(b) A written
notice shall be given to the division at least fifteen (15) days before the
tests are performed as established in Section 6(7) of this administrative
regulation.
(7)
(a) The permit to inject into a Class II
injection well shall remain valid for the life of the well or
project.
(b) The permit may be
terminated if the well or project is in violation of this administrative
regulation and applicable provisions of KRS Chapter 353.
(c) The owner or operator shall comply with
the requirements of all applicable administrative regulations.
Section 12. Completion
and Monitoring Reports.
(1) The owner or
operator shall upon completion of construction of a Class II well, file with
the division a completed and notarized Certificate of Completion for an
Injection Well, Form OG-23, within ninety (90) days of final
construction.
(2)
(a) The owner or operator shall file an
annual report of monthly monitoring of injection fluid volumes, injection
pressure, and casing annulus pressure on Annual Disposal or Injection Well
Monitoring Report, Form OG-18, on the twenty-eighth day of January for the
previous twelve (12) months.
(b)
The owner or operator shall retain all records on file for a period of at least
five (5) years.
(c) The owner or
operator of a liquid hydrocarbon storage or enhanced recovery well may monitor
them by manifold monitoring on a field or project basis rather than on an
individual well basis if the facilities:
1.
Consist of more than one (1) injection well;
2. Operate with a common manifold;
and
3. If the owner or operator
demonstrates to the director that manifold monitoring is equivalent to
individual monitoring.
(3) The owner or operator of a Class II
injection well shall notify the director in writing within thirty (30) days of
the termination of operations at which time the permit to inject shall
expire.
Section 13.
Workover of Class II Wells.
(1) The owner or
operator shall notify the division within ninety (90) days of a well workover,
logging, or testing that could reveal downhole conditions.
(2) The owner or operator shall submit a Well
Rework Report, Form OG-4, documenting the activity within thirty (30) days
following the completion of the rework.
(3) If the packer unseats during the
workover, a mechanical integrity test shall be conducted as established in
Section 6 of this administrative regulation.
(4) Injection shall not be allowed until an
approved mechanical integrity test has been performed.
Section 14. Procedures for Public
Participation in Enforcement Actions. Upon receiving a complaint from the
public, interested parties or others, the division shall:
(1) Investigate and provide written response
to all citizen complaints submitted regarding any concerns for the endangerment
of an underground source of drinking water;
(2) Not oppose intervention by any citizen if
permissive intervention is authorized pursuant to KRS 353.180(3); and
(3) Publish notice of and provide at least
thirty (30) days for public comment on any proposed settlement of a division
enforcement action beyond the forfeiture of a bond for a Class II
well.
Section 15.
Confidentiality of Information.
(1)
Information submitted to the division pursuant to this administrative
regulation may be claimed as confidential by the submitter. A claim of
confidentiality shall be asserted upon submission in the manner on the
application form or instructions. Other submissions shall be stamped with the
words "confidential business information" on each page containing confidential
information. If a claim is not made at the time of submission, the division may
make the information available to the public without further notice.
(2) Claims of confidentiality shall not apply
to:
(a) The name and address of any permit
applicant or permittee;
(b)
Information regarding the existence, absence, or level of contaminants in
drinking water; and
(c) Records
directed by statute to be disclosed or published.
Section 16. Penalties. An owner or
operator in violation of the requirements of this administrative regulation
shall be subject to the penalties established in KRS 353.992.
Section 17. Primacy. The provisions of this
administrative regulation shall become effective upon the date of primacy, on
or after which a Class II well shall be subject to the requirements of this
administrative regulation and shall be exempt from 805 KAR 1:020, Sections 4,
5, and 6.
Section 18. Incorporation
by Reference.
(1) The following material is
incorporated by reference:
(a) "Class II Well
Rework Report," Form OG-4, June 2019;
(b) "Class II Well Permit Application for
Underground Injection Control," Form OG-14, June 2019;
(c) "Annual Disposal or Injection Well
Monitoring Report," Form OG-18, June 2019;
(d) "Certification of Mechanical Integrity,"
Form OG-22, June 2019;
(e)
"Certificate of Completion for an Injection Well," Form OG-23, June
2019;
(f) "Casing and Cementing
Plan for UIC Wells," Form OG-25, June 2019;
(g) "Well Transfer for UIC Wells," Form
OG-26, June 2019
(h) "Class II
Plugging and Abandonment Plan", Form OG-41, June 2019; and
(i) "Application for Class II Internal
Mechanical Integrity Test, Form OG-44, June 2019.
(2) These forms may be inspected, copied, and
obtained, subject to applicable copyright law, at the Division of Oil and Gas,
300 Sower Boulevard, Frankfort, Kentucky 40601, Monday through Friday, 8 a.m.
to 4:30 p.m., Eastern Prevailing Time.
STATUTORY AUTHORITY: KRS 353.540, 353.550, 353.560,
353.592