Current through Register Vol. 50, No. 9, September 20, 2024
A.
Closure. The owner or operator shall close the storage well, cavern, and
associated parts as approved by the Office of Conservation. Closure shall not
begin without written authorization from the Office of Conservation.
1. Notice of Intent to Close
a. The operator shall review the closure plan
before seeking authorization to begin closure activities to determine if the
conditions for closure are still relevant to the actual conditions of the
storage well, cavern, or facility. Revisions to the method of closure reflected
in the plan shall be submitted to the Office of Conservation for approval no
later than the date on which the notice of closure is required to be
submitted.
b. The operator shall
notify the Office of Conservation in writing at least 30 days before the
expected closure of the storage well, cavern, or surface facility. Notification
shall be by submission of a request for a work permit. At the discretion of the
Office of Conservation, a shorter notice period may be allowed.
2. Closure Plan. Plans to close
the storage well, cavern, and related surface facility shall be submitted as
part of the permit application. The closure plan shall meet the requirements of
these rules and regulations, shall use accepted industry practices, and be
acceptable to the Office of Conservation. The obligation to implement the
closure plan survives the termination of a permit or the cessation of storage
operations or related activities. The requirement to maintain and implement an
approved plan is directly enforceable regardless of whether the requirement is
a condition of the permit. The Office of Conservation may modify a closure plan
where necessary.
3. Closure Plan
Requirements. The owner or operator shall review the closure plan at least
every five years to determine if the conditions for closure are still
applicable to the actual conditions. Any revision to the plan shall be
submitted to the Office of Conservation for approval. At a minimum, a closure
plan shall address the following:
a. assurance
of financial responsibility as required in
§3709.B.1 All
instruments of financial responsibility shall be reviewed according to the
following process:
i. a detailed cost
estimate for closure of the well and related appurtenances (well, cavern,
surface appurtenances, etc.) as prepared by a qualified professional. The
closure plan and cost estimate shall include provisions for closure acceptable
to the Office of Conservation;
ii.
after reviewing the required closure cost estimate, the Office of Conservation
may amend the required financial surety to reflect the estimated costs to the
Office of Conservation to complete the approved closure of the
facility;
iii. documentation from
the operator showing that the required financial instrument has been renewed
shall be received each year by the date specified in the permit. When an
operator is delinquent in submitting documentation of financial instrument
renewal, the Office of Conservation shall initiate procedures to take
possession of funds guaranteed by the financial instrument and suspend or
revoke the operating permit. Permit suspensions shall remain in effect until
renewal documentation is received and accepted by the Office of
Conservation;
b. a
prediction of the pressure build-up in the cavern following closure;
c. an analysis of potential pathways for
leakage from the cavern, cemented casing shoe, and wellbore. Consideration
shall be given to site specific elements of geology, salt cavern geometry and
depth, cavern pressure build-up over time due to salt creep and other factors
inherent to the salt stock and/or salt dome;
d. procedures for determining the mechanical
integrity of the well and cavern before closure;
e. removal and proper disposal of any waste
or other materials remaining at the facility;
f. closing, dismantling, and removing all
equipment and structures located at the surface (including site
restoration);
g. the type, number,
and placement of each wellbore or cavern plug including the elevation of the
top and bottom of each plug;
h. the
type, grade, and quantity of material to be used in plugging;
i. a description of the amount, size, and
location (by depth) of casing and any other well construction materials to be
left in the well;
j. any proposed
test or measurement to be made before or during closure.
4. Standards for Closure. The following are
minimum standards for closing the storage well or cavern. The Office of
Conservation may require additional standards prior to actual closure.
a. After permanently concluding storage
operations with the cavern but before closing the well or cavern, the owner or
operator shall:
i. observe and accurately
record the shut-in salt cavern pressures and cavern fluid volume for no less
than five years or a time period specified by the Office of Conservation to
provide information regarding the cavern's natural closure characteristics and
any resulting pressure buildup;
ii.
using actual pre-closure monitoring data, show and provide predictions that
closing the well or cavern as described in the closure plan will not result in
any pressure buildup within the cavern that could adversely affect the
integrity of the well, cavern, or any seal of the system.
b. Unless the well is being plugged and
abandoned due to a failed mechanical integrity test and the condition of the
casing and cavern are known, before closure, the owner or operator shall
confirm the mechanical integrity of both the well and cavern by well/cavern
test methods or analysis of the data collected during the period between the
end of storage operations and well/cavern closure.
c. Before closure, the owner or operator
shall remove and properly manage any stored product remaining in the well or
cavern, with the exception of the materials included in the approved closure
plan.
d. Upon permanent closure,
the owner or operator shall plug the well with cement, resin, or other approved
mechanical plugs in a way that will not allow the movement of fluids into or
between underground sources of drinking water or outside the salt
stock.
5. Plugging and
Abandonment
a. The well and cavern shall be in
a state of static equilibrium before plugging and abandoning.
b. A continuous column of cement or other
approved material shall fill the deepest cemented casing from its shoe to the
surface via a series of balanced cement plugs:
i. each plug shall be tagged to verify the
top of cement and pressure tested to at least 300 PSI for 30 minutes before
setting the next plug;
ii. an
attempt shall be made to place a plug in the open borehole below the deepest
cemented casing;
iii. unless
specifically exempted by the commissioner, a balanced cement plug, or other
approved plug, shall be placed across the shoe of the deepest cemented casing;
and
iv. subsequent balanced cement
plugs, or other approved plugs, shall be spotted immediately on top of the
previously placed plug.
c. After placing the top plug, the operator
shall:
i. on land locations cut and pull the
casings a minimum of 5 feet below ground level. A 1/2 inch thick steel plate
shall be welded across the top of all casings. The well's plug and abandonment
date and well serial number shall be inscribed on top of the steel plat;
and
ii. on water locations cut and
pulled the casings a minimum of 15 feet below the mud line.
d. The operator may alter the plan
of abandonment if new or unforeseen conditions arise during the well work, but
only after approval by the Office of Conservation.
6. Closure Report. The owner or operator
shall submit a closure report to the Office of Conservation within 60 days
after closing the storage well, cavern, facility, or part thereof. The report
shall be certified as accurate by the owner or operator and by the person
charged with overseeing the closure operation (if other than the owner or
operator). The report shall contain the following information:
a. detailed procedures of the closure
operation. Where actual closure differed from the plan previously approved, the
report shall include a written statement specifying the differences between the
previous plan and the actual closure;
b. one original of the appropriate Office of
Conservation plug and abandon report form (Form UIC- P and A or successor);
and
c. any information pertinent to
the closure activity including test or monitoring data.
B. Post-Closure. Plans for
post-closure care of the storage well, cavern, and related facility shall be
submitted as part of the permit application. The post-closure plan shall meet
the requirements of these rules and regulations and be acceptable to the Office
of Conservation. The obligation to implement the post-closure plan survives the
termination of a permit or the cessation of storage operations or related
activities. The requirement to maintain and implement an approved post-closure
plan is directly enforceable regardless of whether the requirement is a
condition of the permit. The Office of Conservation may modify a post-closure
plan where necessary.
1. The owner or operator
shall review the post-closure plan at least every five years to determine if
the conditions for post-closure are still applicable to actual conditions. Any
revision to the plan shall be submitted to the Office of Conservation for
approval. At a minimum, a post-closure plan shall address the following:
a. assurance of financial responsibility as
required in
§3709.B.1 All
instruments of financial responsibility shall be reviewed according to the
following process:
i. detailed cost estimate
for adequate post-closure care of the well and cavern shall be prepared by a
qualified, independent third party. The post-closure care plan and cost
estimate shall include provisions acceptable to the Office of
Conservation;
ii. after reviewing
the closure cost estimate, the Office of Conservation may amend the amount to
reflect the costs to the Office of Conservation to complete the approved
closure of the facility;
iii.
documentation from the operator showing that the required financial instrument
has been renewed must be received each year by the date specified in the
permit. When an operator is delinquent in submitting documentation of financial
instrument renewal, the Office of Conservation shall initiate procedures to
take possession of the funds guaranteed by the financial instrument and suspend
or revoke the operating permit. Any permit suspension shall remain in effect
until renewal documentation is received and accepted by the Office of
Conservation.
b. any
plans for monitoring, corrective action, site remediation, site restoration,
etc., as may be necessary.
2. Where necessary and as an ongoing part of
postclosure care, the owner or operator shall continue the following
activities:
a. conduct subsidence monitoring
for a period of no less than 10 years after closure of the facility;
b. complete any corrective action or site
remediation resulting from the operation of a storage well;
c. conduct any groundwater monitoring if
required by the permit or approved corrective action plan;
d. complete any site restoration.
3. The owner or operator shall
retain all records as required in
§3737 for five years following
conclusion of post-closure requirements.
AUTHORITY
NOTE: Promulgated in accordance with
R.S.
30:4 et seq. and
R.S.
30:23 et seq.