Louisiana Administrative Code
Title 43 - NATURAL RESOURCES
Part XVII - Office of Conservation-Injection and Mining
Subpart 4 - Statewide Order No. 29-M-2
Chapter 31 - Disposal of Exploration and Production Waste in Solution-Mined Salt Caverns
Section XVII-3109 - Legal Permit Conditions

Universal Citation: LA Admin Code XVII-3109

Current through Register Vol. 50, No. 9, September 20, 2024

A. Signatories. All reports required by permit or regulation and other information requested by the Office of Conservation shall be signed as in applications by a person described in §3105. D or §3105 E

B. Financial Responsibility

1. Closure and Post-Closure. The owner or operator of a non-commercial salt cavern E& P waste disposal facility shall maintain financial responsibility and the resources to close, plug and abandon and, where necessary, for post-closure care of the salt cavern well, salt cavern, and related facility as prescribed by the Office of Conservation. Evidence of financial responsibility shall be by submission of a surety bond, a letter of credit, certificate of deposit, or other instruments acceptable to the Office of Conservation. The amount of funds available shall be no less than the amount identified in the cost estimate of the closure plan of §3141. A and, if required, post-closure plan of §3141. B Any financial instrument filed in satisfaction of these financial responsibility requirements shall be issued by and drawn on a bank or other financial institution authorized under state or federal law to operate in the state of Louisiana.

2. Insurance. All owners or operators of a salt cavern waste disposal facility shall provide evidence of sudden and accidental pollution liability insurance coverage for damages that may be caused to any property and party by the escape or discharge of any material or waste from the facility. Such evidence shall be provided to the Office of Conservation before the issuance of a permit for a salt cavern waste disposal facility.
a. Insurance responsibility may be evidenced by filing a certificate of sudden and accidental pollution liability insurance (indicating the required coverage is in effect and all deductible amounts applicable to the coverage), a letter of credit, bond, certificate of deposits issued by and drawn on Louisiana banks, or any other evidence of equivalent financial responsibility acceptable to the Office of Conservation.

b. The amount and extent of such sudden and accidental pollution liability insurance responsibility shall not be less than the face amounts per occurrence and/or aggregate occurrences as set by the Office of Conservation. The minimum coverage for sudden and accidental pollution liability insurance shall be $5,000,000. The Office of Conservation retains the right to increase the minimum amount of insurance coverage as needed to prevent waste and to protect the environment, or the health, safety and welfare of the public.

c. Insurance coverage shall be issued by a company licensed to operate in the state of Louisiana. A copy of the insurance policy subsequently issued with any certificate of insurance is to be immediately filed with the Office of Conservation upon receipt by the operator.

3. Renewal of Financial Responsibility and Insurance. Any approved instrument of financial responsibility and insurance coverage shall be renewable yearly. Documentation of renewals shall be submitted to the Office of Conservation.

C. Duty to Comply. The operator must comply with all conditions of a permit. Any permit noncompliance is a violation of the permit and these rules and regulations and is grounds for enforcement action, permit termination, revocation and possible reissuance, modification, or denial of any future permit renewal applications. It shall be the duty of the operator to prove that continued operation of the salt cavern waste disposal facility shall not endanger the environment, or the health, safety and welfare of the public.

D. Duty to Halt or Reduce Activity. It shall not be a defense for an owner or operator in an enforcement action to claim it would have been necessary to halt or reduce the permitted activity to maintain compliance with the conditions of the permit.

E. Duty to Mitigate. The owner or operator shall take all reasonable steps to minimize or correct any adverse impact on the environment resulting from a noncompliance with the permit or these rules and regulations.

F. Proper Operation and Maintenance

1. The operator shall always properly operate and maintain all facilities and systems of storage, treatment, disposal, injection, withdrawal, and control (and related appurtenances) installed or used to achieve compliance with the permit or these rules and regulations. Proper operation and maintenance include effective performance (including well/cavern mechanical integrity), adequate funding, adequate operation, staffing and training, and adequate controls. This provision requires the operation of back-up, auxiliary facilities, or similar systems when necessary to achieve compliance with the conditions of the permit or these rules and regulations.

2. The operator shall address any unauthorized escape, discharge, or release of any material or waste from the salt cavern waste disposal facility, or part thereof, with a corrective action plan. The plan shall address the cause, delineate the extent, and determine the overall effects on the environment resulting from the escape, discharge, or release. The Office of Conservation shall require the operator to formulate a plan to remediate the escaped, discharged, or released material or waste if the material or waste is thought to have entered or has the possibility of entering an underground source of drinking water.

3. The Office of Conservation may immediately prohibit further operations if it determines that continued operations at a salt cavern waste disposal facility, or part thereof, may cause unsafe operating conditions, or endanger the environment, or the health, safety and welfare of the public. The prohibition shall remain in effect until it is determined that continued operations can and shall be conducted safely. It shall be the duty of the operator to prove that continued operation of the salt cavern waste disposal facility, or part thereof, shall not endanger the environment, or the health, safety and welfare of the public.

G. Inspection and Entry. Inspection and entry at a salt cavern waste disposal facility by Office of Conservation personnel shall be allowed as prescribed in R.S. of 1950, Title 30, Section 4.

H. Notification Requirements. The operator shall give written, and where required, verbal notice to the Office of Conservation concerning activities indicated in this Subsection.

1. Any change in the principal officers, management, owner or operator of the salt cavern waste disposal facility shall be reported to the Office of Conservation in writing within 10 days of the change.

2. Planned physical alterations or additions to the salt cavern well, salt cavern, surface facility or parts thereof that may constitute a modification or amendment of the permit.

3. Whenever there has been no disposal of waste into a salt cavern for 30 consecutive days or more, the operator shall notify the Office of Conservation in writing within seven days following the thirtieth day of the salt cavern becoming inactive (out of service). The notification shall include the date on which the salt cavern was removed from service, the reason for taking the salt cavern out of service, and the expected date that the salt cavern shall be returned to waste disposal service. See §3135 for additional requirements for inactive caverns.

4. The operator of a new or converted salt cavern well or salt cavern shall not begin waste disposal operations until the Office of Conservation has been notified of the following:
a. well construction or conversion is complete, including submission of the completion report and all supporting information (e.g., as-built diagrams, records, sampling and testing results, well and cavern tests, logs, etc.) required in §3127;

b. a representative of the commissioner has inspected the well and/or facility; and

c. the operator has received written approval from the Office of Conservation clearly stating salt cavern waste disposal operations may begin.

5. Noncompliance or anticipated noncompliance with the permit or applicable regulations including a failed mechanical integrity pressure and leak test of §3129

6. Permit Transfer. A permit is not transferable to any person except after giving written notice to and receiving written approval from the Office of Conservation clearly stating that the permit has been transferred. This action may require modification or revocation and re-issuance of the permit to change the name of the operator and incorporate other requirements as may be necessary, including but not limited to financial responsibility.

7. Twenty-Four Hour Reporting
a. The operator shall report any noncompliance that may endanger the environment, or the health, safety and welfare of the public. Any information pertinent to the noncompliance shall be reported to the Office of Conservation by telephone within 24 hours from when the operator becomes aware of the circumstances. A written submission shall also be provided within five days from when the operator becomes aware of the circumstances. The written notification shall contain a description of the noncompliance and its cause, the periods of noncompliance including exact times and dates, and if the noncompliance has not been corrected, the anticipated time it is expected to continue, and steps taken or planned to reduce, eliminate and prevent recurrence of the noncompliance.

b. The following additional information must also be reported within the 24-hour period:
i. monitoring or other information (including a failed mechanical integrity test of §3129) that suggests the waste disposal operation or disposed waste may cause an endangerment to underground sources of drinking waters, oil, gas, other commercial mineral deposits (excluding the salt), neighboring salt operations of any kind, or movement outside the salt stock or salt cavern;

ii. any noncompliance with a regulatory or permit condition or malfunction of the waste injection/withdrawal system (including a failed mechanical integrity test of §3129) that may cause fluid migration into or between underground sources of drinking waters or outside the salt stock or salt cavern.

8. The operator shall give written notification to the Office of Conservation upon permanent conclusion of waste disposal operations into a salt cavern. Notification shall be given within seven days after concluding disposal operations.

9. The operator shall give written notification before abandonment (closure) of the salt cavern, salt cavern well, or related surface facility. Abandonment (closure) shall not begin before receiving written authorization from the Office of Conservation.

10. When the operator becomes aware that it failed to submit any relevant facts in a permit application or submitted incorrect information in a permit application or in any report to the Office of Conservation, the operator shall promptly submit such facts and information.

I. Duration of Permits

1. Authorization to Operate. Authorization by permit to operate a salt cavern waste disposal facility shall be valid for the life of the facility, unless suspended, modified, revoked and reissued, or terminated for cause as described in §3111 K

2. Authorization to Drill and Complete. Authorization by permit to drill and complete a new salt cavern well into an existing salt cavern shall be valid for one year from the effective date of the permit. If drilling and well completion is not completed in that time, the permit shall be null and void and the operator must obtain a new permit.

3. Authorization to Convert. Authorization by permit to convert an existing salt cavern well or salt cavern to waste disposal shall remain in effect for six months from the effective date of the conversion permit. If conversion has not begun within that time, the permit shall be null and void and the operator must obtain a new permit.

4. Extensions. The operator shall submit to the Office of Conservation a written request for an extension of the times of §3109. I.2 and §3109. I 3; however, the Office of Conservation shall approve the request only for extenuating circumstances. The operator shall have the burden of proving claims of extenuating circumstances.

J. Compliance Review. Cavern disposal facility permits shall be reviewed at least once every five years to determine compliance with applicable permit requirements and conditions. Commencement of the permit review process for each facility shall proceed as authorized by the Commissioner of Conservation.

K. Additional Conditions. The Office of Conservation may, on a case-by-case basis, impose any additional conditions or requirements as are necessary to protect the environment, the health, safety and welfare of the public, underground sources of drinking waters, oil, gas, or other mineral deposits (excluding the salt), and preserve the integrity of the salt dome.

AUTHORITY NOTE: Promulgated in accordance with R.S. 30:4 et seq.

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