North Dakota Administrative Code
Title 43 - Industrial Commission
Article 43-02 - Mineral Exploration and Development
Chapter 43-02-14 - GEOLOGICAL STORAGE OF OIL OR GAS
Section 43-02-14-08 - Permit requirements - Storage in salt cavern

Current through Supplement No. 392, April, 2024

An application for a geological storage facility permit must include at least the following:

1. The name and address of the operator of the storage facility.

2. Address surface, pore space, and salt mineral ownership by filing the following:

a. An affidavit of mailing, including the name and address of each owner, certifying that all surface owners of record within the salt cavern and one-half mile [.80 kilometer] adjacent have been notified of the proposed geological storage project.

b. An affidavit of mailing, including the name and address of each owner, certifying that all salt mineral lessees, salt mineral owners of record, pore space owners and pore space lessees of record within the salt cavern and one-half mile [.80 kilometer] adjacent have been notified of the proposed geological storage project.

c. Legal descriptions of surface ownership of record within the salt cavern and one-half mile [.80 kilometer] adjacent.

d. Legal descriptions of salt mineral lessees and salt mineral owners of record within the salt cavern and one-half mile [.80 kilometer] adjacent.

e. Legal descriptions of pore space owners and pore space lessees of record within the salt cavern and one-half mile [.80 kilometer] adjacent.

3. Applicant shall request a permit for all oil or gas injection wells, monitoring wells, and surface facilities by filing an application for permit to inject filed on a form provided by the director, including at least the following:

a. The name and address of the operator of the injection well.

b. The estimated bottom hole fracture pressure of the upper confining zone.

c. Average maximum daily rate of oil or gas to be injected.

d. Average and maximum requested surface injection pressure.

e. Current capacity and geometry of the cavern.

f. Tools used to confirm capacity and geometry of cavern.

g. Current thickness of remaining salt at top and bottom of cavern.

h. Geological name and depth to base of the lowermost underground source of drinking water which may be affected by the injection.

i. Existing or proposed casing, tubing, and packer data.

j. Existing or proposed cement specifications, including amounts and actual or proposed top of cement.

k. A plat and maps depicting the area of review, based on the associated geological storage facility permit, and detailing the location, well name, and operator of all wells in the area of review. The plat and maps must include all injection wells, producing wells, plugged wells, abandoned wells, drilling wells, dry holes, permitted wells, water wells, surface bodies of water, and other pertinent surface features, such as occupied dwellings and roads.

l. A review of the surficial aquifers within one mile [1.61 kilometer] of the proposed injection well site or surface facilities.

m. Proposed injection program, including method of transportation of the oil or gas to the injection facility and the injection well.

n. List identifying all source wells or sources of injectate.

o. All logging and testing data on the well which has not been previously submitted.

p. Schematic or other appropriate drawings and tabulations of the wellhead and surface facilities, including the size, location, construction, and purpose of all tanks, the height and location of all dikes and containment, including a calculated containment volume, all areas underlain by a synthetic liner, the location of all flow lines, and a tabulation of any pressurized flow line specifications. It must also include the proposed road access to the nearest existing public road and the authority to build such access.

q. A schematic drawing of the well detailing the proposed well bore construction, including the size of the borehole; the total depth and plug back depth; the casings and tubing sizes, weights, grades, and top and bottom depths; the perforated interval top and bottom depths; the packer depth; the injection zone; and upper and lower confining zones top and bottom depths.

r. A detailed description of the proposed completion or conversion procedure.

s. Any other information required by the director to evaluate the proposed well.

4. Anticipated capacity and geometry of the cavern.

5. Minimum and maximum capacity of the cavern to be utilized.

6. Tools used to confirm capacity and geometry of the cavern.

7. Current thickness of remaining salt at the top and bottom of the cavern.

8. Description and schematics for brine management at the surface.

9. Description of measures in place to prevent unintended flowback.

10. A map showing the extent of the pore space that will be occupied by the injection and geological storage of oil or gas over the life of the project.

11. A map showing the outside boundary of the oil or gas facility area, its delineated area of review, and the surface and bottom hole location of all proposed injection wells, monitoring wells, cathodic protection boreholes, and surface facilities.

12. Structural and stratigraphic cross sections that describe the geological conditions of the salt cavern.

13. A structure map of the top and base of the salt formation being utilized.

14. An isopach map of the salt formation being utilized.

15. Geomechanical analysis of the cavern used to determine cavern stability, using the following:

a. Geological characteristics.

b. Petrophysical properties.

c. Rock mechanical properties.

d. In situ stresses.

e. Any other input data acquired and utilized.

16. Address the following cavern stability issues at minimum:

a. Salt creep and mitigation measures.

b. Minimum salt roof thickness.

c. Roof collapse.

d. Maximum cavern diameter.

e. Spacing between offsetting caverns.

f. Minimum setback for drilling in the vicinity.

g. Salt thinning due to any stratigraphic change.

h. Any dissolution zones in the salt.

i. Minimum operating pressures and capacity volumes, roof geometry, and height/diameter ratios used to prevent any of the above or other pertinent stability issues.

17. Any known regional or local faulting. If faults are known or suspected, a cross section that includes a depiction of the fault at depth.

18. A method for delineating the area of review, including the geomechanical model to be used, assumptions that will be made, and the site characterization data on which the model will be based.

19. A map of all wells, including all injection wells, producing wells, plugged wells, abandoned wells, drilling wells, dry holes, water wells, and other subsurface structures within the oil or gas facility area and its delineated area of review.

20. A determination that all abandoned wells have been properly plugged and all operating wells have been constructed in a manner that prevents the oil or gas or associated fluids from escaping the salt cavern.

21. A tabular description and well bore diagram of each well's type, construction, date drilled, location, depth, record of plugging, and completion.

22. Quantitative analysis from a state-certified laboratory of freshwater from all available freshwater wells within the geological storage facility. The location of all wells by quarter-quarter, section, township, and range must also be submitted. This requirement may be waived by the director in certain instances.

23. Quantitative analysis from a third-party laboratory of a representative sample of the oil or gas to be injected. A compatibility analysis with the receiving formation may also be required.

24. A map showing all occupied dwellings within the oil or gas facility area, including the delineated area of review.

25. Corrective action plan pursuant to section 43-02-14-05.1.

26. Identify whether the area of review extends across state jurisdiction boundary lines.

27. An emergency and remedial response plan pursuant to section 43-02-14-15.

28. A corrosion monitoring and prevention plan for all wells and surface facilities.

29. A leak detection and monitoring plan for all surface facilities.

30. A leak detection and monitoring plan to monitor any movement of the oil or gas outside of the salt cavern. This may include monitoring wells and the collection of baseline information of oil or gas background concentrations in ground water, surface soils, and chemical composition of in situ waters within the oil or gas facility area and its delineated area of review.

31. Any additional information the director may require.

General Authority: NDCC 38-08-04

Law Implemented: NDCC 38-25

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