Current through Reg. 49, No. 12; March 22, 2024
(a) Permit required. Any person who engages
in fluid injection operations in reservoirs productive of oil, gas, or
geothermal resources must obtain a permit from the commission. Permits may be
issued when the injection will not endanger oil, gas, or geothermal resources
or cause the pollution of freshwater strata unproductive of oil, gas, or
geothermal resources. Permits from the commission issued before the effective
date of this section shall continue in effect until revoked, modified, or
suspended by the commission.
(b)
Filing of application.
(1) Application.
(A) An application to conduct fluid injection
operations in a reservoir productive of oil, gas, or geothermal resources shall
be filed in Austin on the form prescribed by the commission accompanied by the
prescribed fee. On the same date, one copy shall be filed with the appropriate
district office. The form shall be executed by a party having knowledge of the
facts entered on the form.
(B) The
applicant shall file the freshwater injection data form if fresh water is to be
injected.
(C) The applicant for a
disposal well permit under this section shall include with the permit
application a printed copy or screenshot showing the results of a survey of
information from the United States Geological Survey (USGS) regarding the
locations of any historical seismic events within a circular area of 100 square
miles (a circle with a radius of 9.08 kilometers) centered around the proposed
disposal well location.
(D) The
commission may require an applicant for a disposal well permit under this
section to provide the commission with additional information such as logs,
geologic cross-sections, pressure front boundary calculations, and/or structure
maps, to demonstrate that fluids will be confined if the well is to be located
in an area where conditions exist that may increase the risk that fluids will
not be confined to the injection interval. Such conditions may include, but are
not limited to, complex geology, proximity of the basement rock to the
injection interval, transmissive faults, and/or a history of seismic events in
the area as demonstrated by information available from the USGS.
(2) Commercial disposal well. An
applicant for a permit to dispose of oil and gas waste in a commercial disposal
well shall clearly indicate on the application and in the notice of application
that the application is for a commercial disposal well permit. For the purposes
of this rule, "commercial disposal well" means a well whose owner or operator
receives compensation from others for the disposal of oil field fluids or oil
and gas wastes that are wholly or partially trucked or hauled to the well, and
the primary business purpose for the well is to provide these services for
compensation.
(c) Notice
and opportunity for hearing.
(1) The
applicant shall give notice by mailing or delivering a copy of the application
to affected persons who include the owner of record of the surface tract on
which the well is located; each commission-designated operator of any well
located within one half mile of the proposed injection well; the county clerk
of the county in which the well is located; and the city clerk or other
appropriate city official of any city where the well is located within the
corporate limits of the city, on or before the date the application is mailed
to or filed with the commission. For the purposes of this section, the term "of
record" means recorded in the real property or probate records of the county in
which the property is located.
(2)
In addition to the requirements of subsection (c)(1), a commercial disposal
well permit applicant shall give notice to owners of record of each surface
tract that adjoins the proposed injection tract by mailing or delivering a copy
of the application to each such surface owner.
(3) If, in connection with a particular
application, the commission or its delegate determines that another class of
persons should receive notice of the application, the commission or its
delegate may require the applicant to mail or deliver a copy of the application
to members of that class. Such classes of persons could include adjacent
surface owners or underground water conservation districts.
(4) In order to give notice to other local
governments, interested, or affected persons, notice of the application shall
be published once by the applicant in a newspaper of general circulation for
the county where the well will be located in a form approved by the commission
or its delegate. The applicant shall file with the commission in Austin proof
of publication prior to the hearing or administrative approval.
(5) Protested applications:
(A) If a protest from an affected person or
local government is made to the commission within 15 days of receipt of the
application or of publication, whichever is later, or if the commission or its
delegate determines that a hearing is in the public interest, then a hearing
will be held on the application after the commission provides notice of hearing
to all affected persons, local governments, or other persons, who express an
interest, in writing, in the application.
(B) For purposes of this section, "affected
person" means a person who has suffered or will suffer actual injury or
economic damage other than as a member of the general public or as a
competitor, and includes surface owners of property on which the well is
located and commission-designated operators of wells located within one-half
mile of the proposed disposal well.
(6) If no protest from an affected person is
received by the commission, the commission's delegate may administratively
approve the application. If the commission's delegate denies administrative
approval, the applicant shall have a right to a hearing upon request. After
hearing, the examiner shall recommend a final action by the
commission.
(d)
Subsequent commission action.
(1) An
injection well permit may be modified, suspended, or terminated by the
commission for just cause after notice and opportunity for hearing, if:
(A) a material change of conditions occurs in
the operation or completion of the injection well, or there are material
changes in the information originally furnished;
(B) fresh water is likely to be polluted as a
result of continued operation of the well;
(C) there are substantial violations of the
terms and provisions of the permit or of commission rules;
(D) the applicant has misrepresented any
material facts during the permit issuance process;
(E) injected fluids are escaping from the
permitted injection zone;
(F) for a
disposal well permit under this section, injection is likely to be or
determined to be contributing to seismic activity; or
(G) waste of oil, gas, or geothermal
resources is occurring or is likely to occur as a result of the permitted
operations.
(2) An
injection well permit may be transferred from one operator to another operator
provided that the commission's delegate does not notify the present permit
holder of an objection to the transfer prior to the date the lease is
transferred on commission records.
(3) Voluntary permit suspension.
(A) An operator may apply to temporarily
suspend its injection authority by filing a written request for permit
suspension with the commission in Austin, and attaching to the written request
the results of an MIT test performed during the previous three-month period in
accordance with the provisions of subsection (j)(4) of this section. The
provisions of this paragraph shall not apply to any well that is permitted as a
commercial injection well.
(B) The
commission or its delegate may grant the permit suspension upon determining
that the results of the MIT test submitted under subparagraph (A) of this
paragraph indicate that the well meets the performance standards of subsection
(j)(4) of this section.
(C) During
the period of permit suspension, the operator shall not use the well for
injection or disposal purposes.
(D)
During the period of permit suspension, the operator shall comply with all
applicable well testing requirements of §
RSA 3.14 of
this title (relating to plugging, and commonly referred to as Statewide Rule
14) but need not perform the MIT test that would otherwise be required under
the provisions of subsection (j)(4) of this section or the permit. Further,
during the period of permit suspension, the provisions of subsection (i)(1) -
(3) of this section shall not apply.
(E) The operator may reinstate injection
authority under a suspended permit by filing a written notification with the
commission in Austin. The written notification shall be accompanied by an MIT
test performed during the three-month period prior to the date notice of
reinstatement is filed. The MIT test shall have been performed in accordance
with the provisions and standards of subsection (j)(4) of this
section.
(e)
Area of Review.
(1) Except as otherwise
provided in this subsection, the applicant shall review the data of public
record for wells that penetrate the proposed disposal zone within a 1/4 mile
radius of the proposed disposal well to determine if all abandoned wells have
been plugged in a manner that will prevent the movement of fluids from the
disposal zone into freshwater strata. The applicant shall identify in the
application any wells which appear from such review of public records to be
unplugged or improperly plugged and any other unplugged or improperly plugged
wells of which the applicant has actual knowledge.
(2) The commission or its delegate may grant
a variance from the area-of-review requirements of paragraph (1) of this
subsection upon proof that the variance will not result in a material increase
in the risk of fluid movement into freshwater strata or to the surface. Such a
variance may be granted for an area defined both vertically and laterally (such
as a field) or for an individual well. An application for an areal variance
need not be filed in conjunction with an individual permit application or
application for permit amendment. Factors that may be considered by the
commission or its delegate in granting a variance include:
(A) the area affected by pressure increases
resulting from injection operations;
(B) the presence of local geological
conditions that preclude movement of fluid that could endanger freshwater
strata or the surface; or
(C) other
compelling evidence that the variance will not result in a material increase in
the risk of fluid movement into freshwater strata or to the surface.
(3) Persons applying for a
variance from the area-of-review requirements of paragraph (1) of this
subsection on the basis of factors set out in paragraph (2)(B) or (C) of this
subsection for an individual well shall provide notice of the application to
those persons given notice under the provisions of subsection (c)(1) of this
section. The provisions of subsection (c) of this section shall apply in the
case of an application for a variance from the area-of-review requirements for
an individual well.
(4) Notice of
an application for an areal variance from the area-of-review requirements under
paragraph (1) of this subsection shall be given on or before the date the
application is filed with the commission:
(A)
by publication once in a newspaper having general circulation in each county,
or portion thereof, where the variance would apply. Such notice shall be in a
form approved by the commission or its delegate prior to publication and must
be at least three inches by five inches in size. The notice shall state that
protests to the application may be filed with the commission during the 15-day
period following the date of publication. The notice shall appear in a section
of the newspaper containing state or local news items;
(B) by mailing or delivering a copy of the
application, along with a statement that any protest to the application should
be filed with the commission within 15 days of the date the application is
filed with the commission, to the following:
(i) the manager of each underground water
conservation district in which the variance would apply, if any;
(ii) the city clerk or other appropriate
official of each incorporated city in which the variance would apply, if
any;
(iii) the county clerk of each
county in which the variance would apply; and
(iv) any other person or persons that the
commission or its delegate determines should receive notice of the
application.
(5) If a protest to an application for an
areal variance is made to the commission by an affected person, local
government, underground water conservation district, or other state agency
within 15 days of receipt of the application or of publication, whichever is
later, or if the commission's delegate determines that a hearing on the
application is in the public interest, then a hearing will be held on the
application after the commission provides notice of the hearing to all local
governments, underground water conservation districts, state agencies, or other
persons, who express an interest, in writing, in the application. If no protest
from an affected person is received by the commission, the commission's
delegate may administratively approve the application. If the application is
denied administratively, the person(s) filing the application shall have a
right to hearing upon request. After hearing, the examiner shall recommend a
final action by the commission.
(6)
An areal variance granted under the provisions of this subsection may be
modified, terminated, or suspended by the commission after notice and
opportunity for hearing is provided to each person shown on commission records
to operate an oil or gas lease in the area in which the proposed modification,
termination, or suspension would apply. If a hearing on a proposal to modify,
terminate, or suspend an areal variance is held, any applications filed
subsequent to the date notice of hearing is given must include the
area-of-review information required under paragraph (1) of this subsection
pending issuance of a final order.
(f) Casing. Injection wells shall be cased
and the casing cemented in compliance with §
RSA
3.13 of this title (relating to Casing,
Cementing, Drilling, and Completion Requirements) in such a manner that the
injected fluids will not endanger oil, gas, or geothermal resources and will
not endanger freshwater formations not productive of oil, gas, or geothermal
resources.
(g) Special equipment.
(1) Tubing and packer. Wells drilled or
converted for injection shall be equipped with tubing set on a mechanical
packer. Packers shall be set no higher than 200 feet below the known top of
cement behind the long string casing but in no case higher than 150 feet below
the base of usable quality water. For purposes of this section, the term
"tubing" refers to a string of pipe through which injection may occur and which
is neither wholly nor partially cemented in place. A string of pipe that is
wholly or partially cemented in place is considered casing for purposes of this
section.
(2) Pressure valve. The
wellhead shall be equipped with a pressure observation valve on the tubing and
for each annulus of the well.
(3)
Exceptions. The commission or its delegate may grant an exception to any
provision of this paragraph upon proof of good cause. If the commission or its
delegate denies an exception, the operator shall have a right to a hearing upon
request. After hearing, the examiner shall recommend a final action by the
commission.
(h) Well
record. Within 30 days after the completion or conversion of an injection well,
the operator shall file in duplicate in the district office a complete record
of the well on the appropriate form which shows the current
completion.
(i) Monitoring and
reporting.
(1) The operator shall monitor the
injection pressure and injection rate of each injection well on at least a
monthly basis, or on a more frequent basis for a disposal well permitted under
this section as required by the commission under conditions described in
subsection (b)(1)(D) of this section.
(2) The results of the monitoring shall be
reported annually, or on a more frequent basis for a disposal well permitted
under this section as required by the commission under conditions described in
subsection (b)(1)(D) of this section, to the commission on the prescribed
form.
(3) All monitoring records
shall be retained by the operator for at least five years.
(4) The operator shall report to the
appropriate District Office within 24 hours any significant pressure changes or
other monitoring data indicating the presence of leaks in the well.
(j) Testing.
(1) Purpose. The mechanical integrity of an
injection well shall be evaluated by conducting pressure tests to determine
whether the well tubing, packer, or casing have sufficient mechanical integrity
to meet the performance standards of this rule, or by alternative testing
methods under paragraph (5) of this subsection.
(2) Applicability. Mechanical integrity of
each injection well shall be demonstrated in accordance with provisions of
paragraphs (4) and (5) of this subsection prior to initial use. In addition,
mechanical integrity shall be tested periodically thereafter as described in
paragraph (3) of this subsection.
(3) Frequency.
(A) Each injection well completed with
surface casing set and cemented through the entire interval of protected
usable-quality water shall be tested for mechanical integrity at least once
every five years.
(B) In addition
to testing required under subparagraph (A), each injection well shall be tested
for mechanical integrity after every workover of the well.
(C) An injection well that is completed
without surface casing set and cemented through the entire interval of
protected usable-quality ground water shall be tested at the frequency
prescribed in the injection permit.
(D) The commission or its delegate may
prescribe a schedule and mail notification to operators to allow for orderly
and timely compliance with the requirements in subparagraph (A) and
subparagraph (B) of this paragraph. Such testing schedule shall not apply to an
injection well for which an injection well permit has been issued but the well
has not been drilled or converted to injection.
(4) Pressure tests.
(A) Test pressure.
(i) The test pressure for wells equipped to
inject through tubing and packer shall equal the maximum authorized injection
pressure or 500 psig, whichever is less, but shall be at least 200
psig.
(ii) The test pressure for
wells that are permitted for injection through casing shall equal the maximum
permitted injection pressure or 200 psig, whichever is greater.
(B) Pressure stabilization. The
test pressure shall stabilize within 10% of the test pressure required in
subparagraph (A) of this paragraph prior to commencement of the test.
(C) Pressure differential. A pressure
differential of at least 200 psig shall be maintained between the test pressure
on the tubing-casing annulus and the tubing pressure.
(D) Test duration. A pressure test shall be
conducted for a duration of 30 minutes when the test medium is liquid or for 60
minutes when the test medium is air or gas.
(E) Pressure recorder. Except for tests
witnessed by a commission representative or wells permitted for injection
through casing, a pressure recorder shall be used to monitor and record the
tubing-casing annulus pressure during the test. The recorder clock shall not
exceed 24 hours. The recorder scale shall be set so that the test pressure is
30 to 70% of full scale, unless otherwise authorized by the commission or its
delegate.
(F) Test fluid.
(i) The tubing-casing annulus fluid used in a
pressure test shall be liquid for wells that inject liquid unless the
commission or its delegate authorizes use of a different test fluid for good
cause.
(ii) The tubing-casing
annulus fluid used in a pressure test shall contain no additives that may
affect the sensitivity or otherwise reduce the effectiveness of the
test.
(G) Pressure test
results. The commission or its delegate will consider, in evaluating the
results of a test, the level of pollution risk that loss of well integrity
would cause. Factors that may be taken into account in assessing pollution risk
include injection pressure, frequency of testing and monitoring, and whether
there is sufficient surface casing to cover all zones containing usable-quality
water. A pressure test may be rejected by the commission or its delegate after
consideration of the following factors:
(i)
the degree of pressure change during the test, if any;
(ii) the level of risk to usable-quality
water if mechanical integrity of the well is lost; and
(iii) whether circumstances surrounding the
administration of the test make the test inconclusive.
(5) Alternative testing methods.
(A) As an alternative to the testing required
in paragraph (2) of this subsection, the tubing-casing annulus pressure may be
monitored and included on the annual monitoring report required by subsection
(i) of this section, with the authorization of the commission or its delegate
and provided that there is no indication of problems with the well. Wells that
are approved for tubing-casing annulus monitoring under this paragraph shall be
tested in the manner provided under paragraph (3) of this subsection at least
once every ten years after January 1, 1990.
(B) The commission or its delegate grant an
exception for viable alternative tests or surveys or may require alternative
tests or surveys as a permit condition.
(6) The operator shall notify the appropriate
district office at least 48 hours prior to the testing. Testing shall not
commence before the end of the 48-hour period unless authorized by the district
office.
(7) A complete record of
all tests shall be filed in duplicate in the district office within 30 days
after the testing.
(8) In the case
of permits issued under this section prior to the effective date of this
amendment which require pressure testing more frequently than once every five
years, the commission's delegate may, by letter of authorization, reduce the
required frequency of pressure tests, provided that such tests are required at
least once every three years. The commission shall consider the permit to have
been amended to require pressure tests at the frequency specified in the letter
of authorization.
(k)
Area Permits. A person may apply for an area permit that authorizes injection
into new or converted wells located within the area specified in the area
permit. For purposes of this subsection, the term "permit area" shall mean the
area covered or proposed to be covered by an area permit. Except as
specifically provided in this subsection, the provisions of subsections (a) -
(j) of this section shall apply in the case of an area permit and all injection
wells converted, completed, operated, or maintained in accordance with that
permit. Except as otherwise specified in the area permit, once an area permit
has been issued, the operator may apply to operate individual wells within the
permit area as injection wells as specified in paragraph (3) of this
subsection.
(1) An application for an area
permit must be accompanied by an application for at least one injection well.
The applicant must:
(A) identify the maximum
number of injection wells that will be operated within the permit
area;
(B) identify the depth(s) of
usable-quality water within the permit area, as determined by the Groundwater
Advisory Unit of the Oil and Gas Division;
(C) for each existing well in the permit area
that may be converted to injection under the area permit, provide a wellbore
diagram that specifies the casing and liner sizes and depths, packer setting
depth, types and volumes of cement, and the cement tops for the well. A single
wellbore diagram may be submitted for multiple wells that have the same
configuration, provided that each well with that type of configuration is
identified on the wellbore diagram and the diagram identifies the deepest
cement top for each string of casing among all the wells covered by that
diagram.
(D) provide a wellbore
diagram(s) showing the type(s) of completion(s) that will be used for injection
wells drilled after the date the application for the area permit is filed,
including casing and liner sizes and depths and a statement indicating that
such wells will be cemented in accordance with the cementing requirements of
§
RSA
3.13 of this title (relating to Casing,
Cementing, Drilling, and Completion Requirements) (Statewide Rule
13);
(E) identify the type or types
of fluids that are proposed to be injected into any well within the permit
area;
(F) identify the depths from
top to bottom of the injection interval throughout the permit area;
(G) specify the maximum surface injection
pressure for any well in the permit area covered by the area permit;
(H) specify the maximum amount of fluid that
will be injected daily into any individual well within the permit area as well
as the maximum cumulative amount of fluid that will be injected daily in the
permit area;
(I) in lieu of the
area-of-review required under subsection (e) of this section and subject to the
area-of-review variance provisions of subsection (e) of this section, review
the data of public record for wells that penetrate the proposed injection
interval within the permit area and the area 1/4 mile beyond the outer boundary
of the permit area to determine if all abandoned wells have been plugged in a
manner that will prevent the movement of fluids from the injection interval
into freshwater strata. The applicant shall identify in the application the
wells which appear from the review of such public records to be unplugged or
improperly plugged and any other unplugged or improperly plugged wells of which
the applicant has knowledge. The applicant shall also identify in the
application the date of plugging of each abandoned well within the permit area
and the area 1/4 mile beyond the outer boundary of the permit area;
and
(J) furnish a map showing the
location of each existing well that may be converted to injection under the
area permit and the location of each well that the operator intends, at the
time of application, to drill within the permit area for use for injection. The
map shall be keyed to identify the configuration of all such wells as described
in subparagraphs (C) and (D) of this paragraph.
(2) In lieu of the notice required under
subsection (c)(1) of this section, notice of an area permit shall be given by
providing a copy of the area permit application to each surface owner of record
within the permit area; each commission-designated operator of a well located
within one-half mile of the permit area; the county clerk of each county in
which all or part of the permit area is located; and the city clerk or other
appropriate city official of any incorporated city which is located wholly or
partially within the permit area, on or before the date the application is
mailed to or filed with the commission. Notice of an application for an area
permit shall also be given in accordance with the requirements of subsection
(c)(2). If, in connection with a particular application, the commission or its
delegate determines that another class of persons, such as adjacent surface
owners or an appropriate underground water conservation district, should
receive notice of the application, the commission or its delegate may require
the applicant to mail or deliver a copy of the application to members of that
class.
(3) Once an area permit has
been issued and except as otherwise provided in the permit, no notice shall be
required when an application for an individual injection well permit for any
well covered by the area permit is filed.
(4) Prior to commencement of injection
operations in any well within the permit area, the operator shall file an
application for an individual well permit with the commission in Austin. The
individual well permit application shall include the following:
(A) the well identification and, for a new
well, a location plat;
(B) the
location of any well drilled within 1/4 mile of the injection well after the
date of application for the area permit and the status of any well located
within 1/4 mile of the injection well that has been abandoned since the date
the area permit was issued, including the plugging date if such well has been
plugged;
(C) a description of the
well configuration, including casing and liner sizes and setting depths, the
type and amount of cement used to cement each casing string, depth of cement
tops, and tubing and packer setting depths;
(D) an application fee in the amount of $100
per well; and
(E) any other
information required by the area permit.
(5) An individual well permit may be issued
by the commission or its delegate in writing or, if no objection to the
application is made by the commission or its delegate within 20 days of receipt
of the application, the individual well permit shall be deemed
issued.
(6) All individual
injection wells covered by an area permit must be permitted in accordance with
the requirements of this subsection and converted or completed, operated,
maintained, and plugged in accordance with the requirements of this section and
the area permit.
(l) Gas
storage operations. Storage of gas in productive or depleted reservoirs shall
be subject to the provisions of §
RSA
3.96 of this title (relating to Underground
Storage of Gas in Productive or Depleted Reservoirs).
(m) Plugging. Injection wells shall be
plugged upon abandonment in accordance with §
RSA 3.14 of
this title (relating to Plugging).
(n) Penalties.
(1) Violations of this section may subject
the operator to penalties and remedies specified in Title 3 of the Natural
Resources Code and any other statutes administered by the commission.
(2) The certificate of compliance for any
oil, gas, or geothermal resource well may be revoked in the manner provided in
§
RSA
3.73 of this title (relating to Pipeline
Connection; Cancellation of Certificate of Compliance; Severance) for violation
of this section.