Texas Administrative Code
Title 16 - ECONOMIC REGULATION
Part 1 - RAILROAD COMMISSION OF TEXAS
Chapter 3 - OIL AND GAS DIVISION
Section 3.82 - Brine Production Projects and Associated Brine Production Wells and Class V Spent Brine Return Injection Wells
Universal Citation: 16 TX Admin Code § 3.82
Current through Reg. 50, No. 13; March 28, 2025
(a) Scope and purpose.
(1) This section contains
the regulations for:
(A) brine production
projects and the associated brine production wells for the extraction of
elements, minerals, mineral ions, salts, or other useful substances, including,
but not limited to, lithium, lithium ions, lithium chloride, halogens or
halogen salts, from a subsurface formation but not including oil, gas, or any
product of oil or gas, as defined by Section
85.001 of the
Natural Resources Code, or fluid oil and gas waste, as defined by Section
122.001 of the
Natural Resources Code; and
(B)
Class V spent brine return injection wells used in association with brine
production projects for the reinjection of the spent brine.
(2) This section applies
regardless of whether the well was initially completed for the purpose of brine
production or Class V spent brine return injection or was initially completed
for another purpose and is converted for brine production or Class V spent
brine return injection.
(3) The
operator of a brine production project, including associated brine production
wells and Class V spent brine return injection wells, shall comply with the
requirements of this section as well as with all other applicable Commission
rules and orders.
(4) Any
pipelines, flowlines, storage, or any other brine containers at the brine
production project shall be constructed, operated, and maintained such that
they will not leak or cause an unauthorized discharge to surface or subsurface
waters.
(5) This section does not
apply to Class III brine mining injection wells regulated under §
3.81 of this title (relating to
Class III Brine Mining Injection Wells).
(6) This section does not apply to the
creation, operation, or maintenance of an underground hydrocarbon storage
cavern in a salt formation regulated under §
3.95 of this title (relating to
Underground Storage of Liquid or Liquefied Hydrocarbons in Salt Formations) and
§
3.97 of this title (relating to
Underground Storage of Gas in Salt Formations).
(7) This section does not apply to the
injection of fluids that meet the definition of a hazardous waste under 40 CFR
Part 261.
(8) Subsection (d) of
this section establishes statewide field rules for brine production fields
including assignment of acreage, well spacing, and density provisions to
promote the regular development of brine resources in a manner that does not
damage the reservoir.
(9) If a
provision of this section conflicts with any provision or term of a Commission
order or permit, the provision of such order or permit controls, provided that
the provision satisfies the minimum requirements for EPA's Class V Underground
Injection Control (UIC) program.
(10) If a provision of this section conflicts
with a provision of another Commission rule referenced in this section, the
provision of this section controls.
(b) Definitions. The following words and terms when used in this section shall have the following meanings, unless the context clearly indicates otherwise.
(1)
Affected person--A person who, as a result of activity sought to be permitted,
has suffered, or faces a substantial risk of suffering, concrete or actual
injury or economic damage other than as a member of the general public. A
competitor is not an affected person unless it has suffered, or faces a
substantial risk of suffering, actual harm to its interest in real property or
waste of substantial recoverable substances.
(2) Application--The Commission form for
applying for a permit, including any additions, revisions or modifications to
the forms, and any required attachments.
(3) Aquifer--A 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.
(4) Area of review (AOR)--The brine
production project area unless an exception obtained pursuant to this section
results in an injection well location closer than one-half mile to the boundary
of the brine production project area, in which case the area of review is a
one-half mile radius around the injection well location.
(5) Brine--Saline water, whether contained in
or removed from an aquifer, which may contain brine resources or other
naturally-occurring substances such as entrained oil or gas, including hydrogen
sulfide gas. The term does not include brine produced as an incident to the
production of oil and gas.
(6)
Brine field--A formation or the correlative depth interval designated in the
field designation or rules that contains brine resources.
(7) Brine production project--A project the
purpose of which is the extraction of brine resources from a brine field. The
term includes brine production wells, Class V spent brine return injection
wells, monitoring wells, brine flowlines, and any equipment associated with the
project.
(8) Brine production
project area--The surface extent of the land assigned to a brine production
project, as indicated on the plat required by subsection (e)(3)(N) of this
section.
(9) Brine production
project permit--A permit authorizing a brine production project issued by the
Commission pursuant to this section.
(10) Brine production well--A well drilled or
recompleted for the exploration or production of brine resources that is part
of a brine production project.
(11)
Brine resource--Elements, minerals, salts, or other useful substances dissolved
or entrained in brine, including, but not limited to, lithium, lithium ions,
lithium chloride, halogens, or other halogen salts, but not including oil, gas,
or any product of oil or gas. The term does not include brine extracted
pursuant to §
3.81 of this title (relating to
Class III Brine Mining Injection Wells).
(12) Cementing--The operation whereby a
cement slurry is pumped into a drilled hole and/or forced behind
casing.
(13) Class V spent brine
return injection well--A well into which brine produced by a brine production
project is re-injected into the same brine field from which it was withdrawn
after the brine resources have been extracted. The term does not include a
Class I, II, III, IV, or VI UIC well.
(14) Code of Federal Regulations (CFR)--The
codification of the general and permanent rules published in the
Federal Register by the executive departments and agencies of
the federal government.
(15)
Commission--The Railroad Commission of Texas.
(16) Confining zone--A geological formation,
group of formations, or part of a formation that is capable of limiting fluid
movement above or below the brine field.
(17) Contaminant--Any physical, chemical,
biological, or radiological substance or matter in water.
(18) Corrective action--Methods to assure
that wells within the area of review do not serve as conduits for the movement
of fluids from the brine field and into or between USDWs, including the use of
corrosion resistant materials where appropriate.
(19) Director--The Director of the Oil and
Gas Division of the Railroad Commission of Texas or the Director's
delegate.
(20) Electric log--A
density, sonic, or resistivity (except dip meter) log run over the entire
wellbore.
(21) EPA--The United
States Environmental Protection Agency.
(22) Exempted aquifer--An aquifer or its
portion that meets the criteria in the definition of USDW but which has been
exempted according to the procedures in
40 CFR §
144.7.
(23) Fault--A surface or zone of rock
fracture along which there has been displacement.
(24) Flow rate--The volume per time unit
given to the flow of gases or other fluid substance which emerges from an
orifice, pump, turbine or passes along a conduit or channel.
(25) Fluid--Any material or substance which
flows or moves whether in a semisolid, liquid, sludge, gas, or any other form
or state.
(26) Formation--A body of
consolidated or unconsolidated rock characterized by a degree of lithologic
homogeneity which is prevailingly, but not necessarily, tabular and is mappable
on the earth's surface or traceable in the subsurface.
(27) Formation fluid--Fluid present in a
formation under natural conditions as opposed to introduced fluids such as
drilling mud.
(28) Fracture
pressure--The pressure that, if applied to a subsurface formation, would cause
that formation to physically fracture or result in initiation or propagation of
fractures.
(29) Good faith claim--A
factually supported claim based on a recognized legal theory to a continuing
possessory right in an estate that includes the brine resources sought to be
extracted through a brine production well.
(30) Injection well--A well into which fluids
are being injected.
(31) Interested
person--Any person who expresses an interest in an application, permit, or
Class V spent brine return injection well.
(32) Limited English-speaking household--A
household in which all members 14 years and older have at least some difficulty
with English.
(33) Lithology--The
description of rocks on the basis of their physical and chemical
characteristics.
(34) Mechanical
integrity--A Class V spent brine return injection well has mechanical integrity
if:
(A) there is no significant leak in the
casing, tubing, or packer (internal mechanical integrity); and
(B) there is no significant fluid movement
into a USDW through channels adjacent to the injection well bore as a result of
operation of the injection well (external mechanical integrity).
(35) Operator--A person, acting
for itself or as an agent for others and designated to the Commission as the
one who has the primary responsibility for complying with its rules and
regulations in any and all acts subject to the jurisdiction of the
Commission.
(36) Packer--A device
lowered into a well to produce a fluid-tight seal.
(37) Person--A natural person, corporation,
organization, government or governmental subdivision or agency, business trust,
estate, trust, partnership, association, or any other legal entity.
(38) Plugging--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.
(39) Plugging record--A systematic listing of
permanent or temporary abandonment of water, oil, gas, test, exploration and
waste injection wells. The listing may contain a well log, description of
amounts and types of plugging material used, the method employed for plugging,
a description of formations which are sealed and a graphic log of the well
showing formation location, formation thickness, and location of plugging
structures.
(40) Pollution--The
alteration of the physical, chemical, or biological quality of, or the
contamination of, water that makes it harmful, detrimental, or injurious to
humans, animal life, vegetation or property or to public health, safety, or
welfare, or impairs the usefulness or the public enjoyment of the water for any
lawful or reasonable purpose.
(41)
Pressure--The total load or force per unit area acting on a surface.
(42) Schedule of compliance--A schedule of
remedial measures included in a permit, including an enforceable sequence of
interim requirements (for example, actions, operations, or milestone events)
leading to compliance with the applicable statutes and regulations.
(43) Spent brine--Brine produced from a brine
production well from which brine resources have been extracted. Spent brine may
include non-hazardous process water and other additives used to facilitate
brine resource extraction or reinjection.
(44) Surface casing--The first string of well
casing to be installed in the well.
(45) Total dissolved solids--The total
dissolved (filterable) solids as determined by use of the method specified in
40 CFR part 136.
(46) Transmissive
fault or fracture--A fault or fracture that has sufficient permeability and
vertical extent to allow fluids to move beyond the confining zone.
(47) Underground injection--Well
injection.
(48) UIC--Underground
injection control.
(49) UIC
Program--The Underground Injection Control program under Part C of the Safe
Drinking Water Act, including an "approved State program" as defined in
40 CFR §
144.3.
(50) Underground source of drinking water
(USDW)--An aquifer or its portion which is not an exempted aquifer and which:
(A) supplies any public water system;
or
(B) contains a sufficient
quantity of ground water to supply a public water system and either:
(i) currently supplies drinking water for
human consumption; or
(ii) contains
fewer than 10,000 milligrams per liter total dissolved solids.
(51) Well--A bored,
drilled, or driven shaft whose depth is greater than the largest surface
dimension, or a dug hole whose depth is greater than the largest surface
dimension.
(52) Well injection--The
subsurface emplacement of fluids through a well.
(53) Well plug--A watertight and gastight
seal installed in a borehole or well to prevent movement of fluids.
(54) Workover--An operation in which a
down-hole component of a well is repaired or the engineering design of the well
is changed. Workovers include operations such as sidetracking, the addition of
perforations within the permitted injection interval, and the addition of
liners or patches. For the purposes of this section, workovers do not include
well stimulation operations.
(c) General requirements.
(1) A brine production project and all
associated brine production wells and Class V spent brine return injection
wells shall be permitted in accordance with the requirements of this section.
No person may construct or operate such wells without a permit under this
section.
(2) Applications and
reports shall be signed in accordance with this paragraph.
(A) Applications. All applications shall be
signed as follows:
(i) for a corporation, by a
responsible corporate officer. A responsible corporate officer means a
president, secretary, treasurer, or vice-president of the corporation in charge
of a principal business function, or any other person who performs similar
policy-making or decision-making functions for the corporation; or
(ii) for a partnership or sole
proprietorship, by a general partner or the proprietor, respectively.
(B) Reports. All reports required
by permits and other information requested by the Commission shall be signed by
a person described in subparagraph (A) of this paragraph or by a duly
authorized representative of that person. A person is a duly authorized
representative only if:
(i) the authorization
is made in writing by a person described in subparagraph (A) of this
paragraph;
(ii) the authorization
specifies an individual or position having responsibility for the overall
operation of the regulated brine production project; and
(iii) the authorization is submitted to the
Commission before or together with any report of information signed by the
authorized representative.
(C) Certification. Any person signing a
document under subparagraph (A) or (B) of this paragraph shall make the
following certification: "I certify under penalty of law that this document and
all attachments were prepared under my direction or supervision in accordance
with a system designed to assure that qualified personnel properly gathered and
evaluated the information submitted. Based on my inquiry of the person or
persons who manage the system, or who are directly responsible for gathering
the information, the information submitted is, to the best of my knowledge and
belief, true, accurate, and complete. I am aware that there are significant
penalties for submitting false information."
(3) Operators of all Class V spent brine
return injection wells shall re-inject spent brine into the brine field from
which the brine was produced.
(4)
All brine production wells and Class V spent brine return injection wells shall
be drilled and completed or recompleted, operated, maintained, and plugged in
accordance with the requirements of this section and the brine production
project permit.
(5) The Commission
shall assign each brine production project a Commission lease number. All brine
project operators shall ascertain from the appropriate schedule the lease
number assigned to each separate brine production project, and thereafter
include on each Commission-required form or report the exact brine production
project name and its assigned number as they appear on the current schedule for
all leases.
(6) An applicant for or
permittee of a brine production project and associated wells shall comply with
the requirements of this chapter, including but not limited to:
(A)
§
3.1 of this title (relating to
Organization Report; Retention of Records; Notice Requirements);
(B)
§
3.5 of this title (relating to
Application To Drill, Deepen, Reenter, or Plug Back);
(C)
§
3.11 of this title (relating to
Inclination and Directional Surveys Required);
(D)
§
3.12 of this title (relating to
Directional Survey Company Report);
(E)
§
3.16 of this title (relating to
Log and Completion or Plugging Reports)
(F)
§
3.17 of this title (relating to
Pressure on Bradenhead)
(G)
§
3.18 of this title (relating to
Mud Circulation Required);
(H)
§
3.19 of this title (relating to
Density of Mud-Fluid);
(I)
§
3.36 of this title (relating to
Oil, Gas, Brine, or Geothermal Resource Operation in Hydrogen Sulfide
Areas);
(J)
§
3.80 of this title (relating to
Commission Oil and Gas Forms, Applications, and Filing Requirements);
and
(K) Chapter 4 of this title
(relating to Environmental Protection).
(7) In addition to the requirements of §
3.13 of this title (relating to
Casing, Cementing, Drilling, Well Control, and Completion Requirements), all
wells associated with a brine production project shall use casing and cement
designed to withstand the anticipated pressurization and formation fluids that
are capable of negatively impacting the integrity of casing and/or cement such
that it presents a threat to USDWs or oil, gas, or geothermal
resources.
(8) All operators of
wells drilled and operated in association with a brine production project shall
comply with the requirements of §
3.14 of this title (relating to
Plugging), §3.15 (relating to Surface Equipment Removal Requirements and
Inactive Wells), and §3.35 (relating to Procedures for Identification and
Control of Wellbores in Which Certain Logging Tools Have Been Abandoned),
except that the operator shall plug all wells associated with a brine
production project and remove all wastes, storage vessels, and equipment from
the site within one year of cessation of brine production project
operations.
(9) All operators of
wells drilled and operated in association with a brine production project shall
comply with the requirements of §
3.78 of this title (relating to
Fees and Financial Security Requirements), as the requirements are applicable
to brine production projects, except that, prior to spudding, the operator
shall provide financial security in an amount estimated to plug each well in
the brine production project after cessation of brine production project
operations. Notwithstanding the provisions of §
3.78(i) of this
title, for an operator of a brine production project who has satisfied its
financial security requirements by filing a cash deposit, the Commission shall
refund to the operator the amount estimated to plug each well following its
plugging if the amount of the deposit remaining after the refund would be
sufficient to plug all remaining wells in the brine production
project.
(10) No person may
knowingly make any false statement, representation, or certification in any
application, report, record, or other document submitted or required to be
maintained under this section or under any permit issued pursuant to this
section, or falsify, tamper with, or knowingly render inaccurate any monitoring
device or method required to be maintained under this section or under any
permit issued pursuant to this section.
(d) Spacing, acreage, density and field rules; exceptions.
(1) Spacing. All brine
production wells and Class V spent brine return injection wells shall be
completed within the brine production project area and no less than one-half
mile from the boundary of the brine production project area and no less than
one-half mile from any interest within the brine production project area that
is not participating in the project, unless special field rules provide
different spacing requirements or the applicant obtains an exception to this
paragraph pursuant to paragraph (4) of this subsection.
(2) Acreage and density.
(A) An applicant for a brine production
project permit shall designate and assign to the project acreage within the
applicable brine field and indicate the total number of acres in the permit
application required by subsection (e)(3) of this section. The minimum acreage
is 1,280 acres per brine production well included in the brine production
project unless special field rules provide different well density requirements
or the applicant obtains an exception to this paragraph pursuant to paragraph
(4) of this subsection.
(B) Upon
completion of a brine production well in a brine production project area and
filing the completion report with the Commission, the applicant shall file a
plat assigning acreage in the brine production project area to each brine
production well. The total number of acres assigned to the brine production
project area divided by the total number of brine production wells shall equal
or exceed 1,280 acres unless special field rules provide different well density
requirements or the applicant obtains an exception to the density requirements
pursuant to paragraph (4) of this subsection.
(C) An applicant shall not assign more than
5,120 acres in a brine field to a brine production well unless special field
rules provide for different limits.
(D) The two farthermost points of acreage
assigned to a well shall not exceed 23,760 feet unless special field rules
provide for a different limit, and the acreage assigned shall include all
productive portions of the wellbore.
(E) Multiple assignment of the same acreage
in a brine field to more than one brine production well is not permitted.
However, this limitation shall not prevent the reformation of brine production
projects so long as:
(i) no multiple
assignment of acreage occurs; and
(ii) such reformation does not violate other
regulations.
(F) The
acreage included in a brine production project area shall consist of acreage
for which the operator has a good faith claim to produce brine resources.
(i) Non-contiguous acreage included in the
same brine production project area may not be separated by greater than the
minimum spacing distance for wells provided by paragraph (1) of this
subsection, as altered by any applicable special field rules.
(ii) An operator may obtain an exception to
the contiguity requirements of clause (i) of this subparagraph pursuant to
paragraph (4)(C) of this subsection.
(G) The acreage limits provided by this
paragraph are the minimum and maximum amounts of acreage in a brine field that
may be assigned to an individual well at the operator's election and shall not
be construed as a limit on the sizes of either a brine production project area
or a pooled unit for production of brine resources.
(3) Brine field designation and field rules.
(A) Application for new brine field
designation. A new brine field designation may be made by the Commission after
a hearing after notice to all operators of brine production wells within a
two-and one-half-mile radius of the brine discovery well. The applicant shall
provide proper evidence proving that a well is completed in a new field.
(i) The applicant shall submit a legible area
map, drawn to scale, which shows the following:
(I) all oil, gas, brine production, and
abandoned wells within at least a two-and one-half-mile radius of the brine
well claimed to be a discovery well;
(II) the producing intervals of all wells
identified in subclause (I) of this clause;
(III) all Commission-recognized fields within
a two and one-half mile radius of the brine well claimed to be a discovery well
identified by Commission-assigned field names, names of the producing
formations, and approximate average depth of the producing interval;
(IV) the total depth of all wells identified
in subclause (I) of this clause that penetrated the top of the proposed new
field; and
(V) scale, legend, and
name of person who prepared the map.
(ii) The applicant shall submit a list of the
names and addresses of all operators of wells within a two-and one-half-mile
radius of the brine discovery well.
(iii) The applicant shall submit a complete
electric log of the brine well. If the applicant contends the electric log is
confidential by law, the applicant shall mark the log confidential. If the
Commission receives a request under the Texas Public Information Act (PIA),
Texas Government Code, Chapter 552, for logs that have been designated
confidential, the Commission will notify the filer of the request in accordance
with the provisions of the PIA so that the filer can take action with the
Office of the Attorney General to oppose release of the log.
(iv) The applicant shall submit a bottom-hole
pressure for brine production wells submitted on the appropriate form. This
bottom-hole pressure may be determined by a pressure build-up test, drill stem
test, or wire-line formation tester. Calculations based on fluid level surveys
or calculations made on flowing wells using shut-in wellhead pressures may be
used if no test data is available.
(v) The applicant shall submit a subsurface
structure map and/or cross sections, if separation is based on structural
differences, including faulting and pinch-outs. The structure map shall show
the contour of the top of the brine field and the lines of cross section. The
cross sections shall be prepared from comparable electric logs (not tracings)
with the wells, producing formation, and brine field identified. The engineer
or geologist who prepared the map and cross section shall sign and seal
them.
(vi) The applicant shall
submit reservoir pressure measurements or calculations, if separation is based
on pressure differentials.
(vii)
The applicant shall submit core data, drillstem test data, cross sections of
nearby wells, and/or production data estimating the fluid level, if separation
is based on differences in fluid levels. The applicant shall obtain the fluid
level data within 10 days of the potential test date.
(viii) The applicant shall submit evidence
that demonstrates that the new brine field is effectively separated from any
other brine field or oil or gas field previously shown to be commercially
productive.
(B) Temporary
brine field rules.
(i) The Commission will
accept applications for temporary brine field rule hearings for brine fields
after the first well has been completed in a brine field.
(ii) When requesting such hearings, the
applicant shall furnish the Commission with a list of the names and addresses
of all operators of wells within a two-and one-half-mile radius of the brine
discovery well.
(iii) At the
hearing on the adoption of temporary brine field rules, the applicant bears the
burden of establishing that each of the proposed temporary brine field rules is
reasonably expected to protect freshwater resources, protect correlative
rights, prevent waste of recoverable brine resources, and promote the
production of additional brine resources in an orderly and efficient
manner.
(iv) Temporary brine field
rules shall remain effective until:
(I) 18
months after adoption; or
(II)
permanent brine field rules are adopted.
(C) Permanent brine field rules.
(i) After temporary brine field rules have
been effective in a brine field for at least 12 months, the operator of a brine
production well in the brine field subject to temporary brine field rules or
the Commission may request a hearing to adopt permanent brine field rules for
the brine field in which the operator's well is located.
(ii) An operator requesting a hearing to
adopt permanent brine field rules shall furnish the Commission a list of all
operators within a two-and one-half-mile radius of the brine discovery
well.
(iii) If permanent field
rules are not adopted, temporary field rules adopted under subparagraph (B) of
this paragraph expire after 18 months and the statewide field requirements of
this section apply to operations within the applicable brine field.
(4) Exceptions to
spacing, density, and contiguity requirements.
(A) An exception to paragraph (1) of this
subsection or paragraph (2)(A) - (C) of this subsection may be granted after at
least 21 days' notice to all persons described in subparagraph (B) of this
paragraph. An exception to paragraph (2)(F) of this subsection may be granted
after at least 21 days' notice to all persons described in subparagraph (C) of
this paragraph. If no person entitled to notice protests the request for an
exception, the Commission may grant the exception administratively. If the
Commission receives a timely protest, the Director shall forward the request
for an exception to the Hearings Division to conduct a hearing. At a hearing on
an exception, the burden shall be on the applicant to establish that an
exception to this section is necessary either to prevent waste or to protect
correlative rights.
(B) In addition
to the notice required under subsection (f) of this section, an applicant
seeking an exception to the spacing or density requirements shall file with its
application the names and mailing addresses of the following persons for tracts
within the minimum spacing distance for the proposed well and the brine field:
(i) the designated operator;
(ii) all lessees of record for tracts with no
designated operator; and
(iii) all
owners of record of unleased mineral interests.
(C) In addition to the notice required under
subsection (f) of this section, an applicant seeking an exception to the
contiguity requirements of paragraph (2)(F) of this subsection shall file with
its application the names and mailing addresses of the following persons for
tracts located between the non-contiguous portions of its proposed project area
that are farther apart than the minimum spacing distance for wells in the brine
field:
(i) the designated operator;
(ii) all lessees of record for tracts with no
designated operator; and
(iii) all
owners of record of unleased mineral interests.
(D) If, after diligent efforts, the applicant
is unable to ascertain the name and address of one or more persons required by
this paragraph to be notified, then the applicant shall notify such persons by
publishing notice of the application in a form approved by the Commission. The
applicant shall publish the notice once each week for two consecutive weeks in
a newspaper of general circulation in the county or counties in which the brine
production project well will be located. The first publication shall be
published at least 14 days before the protest deadline in the notice of
application.
(e) Brine production project permit application.
(1) Any person who proposes to
operate a brine production project shall submit to the Director an application
for a brine production project permit. The application shall be made under this
section or under special field rules governing the particular brine field, or
as an exception thereto, and filed with the Commission on a form approved by
the Commission.
(2) An application
for a brine production project permit shall be accompanied by an application
for at least one injection well and shall include the information required by
paragraph (3) of this subsection, as applicable. The applicant is not required
to submit permit applications for the other individual brine production and
Class V spent brine return injection wells at the time the applicant submits
its application for a brine production project permit. Unless otherwise
specified in the brine production project permit, once the brine production
project permit has been issued, the operator may operate additional brine
production wells and Class V spent brine return injection wells as part of the
brine production project. The operator shall obtain permits for those wells
prior to commencing operations. Requirements for obtaining a Class V spent
brine return injection well permit are specified in paragraph (4) of this
subsection. Notice in addition to the notice required for the brine production
project by subsection (f) of this section is not required for the individual
wells unless the operator requests an exception to the spacing, density, or
acreage requirements or additional notice is required by the permit.
(3) An application for a brine production
project permit shall comply with the requirements of this paragraph.
(A) The application shall include the name,
mailing address, and physical location of the brine production project for
which the application is submitted.
(B) The application shall include the
applicant's name, mailing address, telephone number, P-5 Organization Report
number, and a statement indicating whether the applicant operator is the owner
of the brine production project.
(C) The application shall specify the
proposed use or uses for the brine produced by the project.
(D) The application shall specify the
estimated maximum number of brine production wells and Class V spent brine
return injection wells that will be operated within the brine production
project.
(E) The application shall
designate the total number of acres included in the proposed brine production
project area, which shall equal not less than 1,280 acres per brine production
well unless special field rules provide otherwise.
(F) The application shall specify the brine
field from which the brine will be produced and spent brine reinjected,
including the top and bottom depths of the field throughout the area of
review.
(G) The application shall
include complete electric logs of representative brine production wells and
Class V spent brine return injection wells or complete electric logs of
representative nearby wells. On the logs, the applicant shall identify and
indicate the depths of the geologic formations between the land surface and the
top of the brine field.
(H) The
application shall include wellbore diagrams showing the completions that will
be used for brine production wells and Class V spent brine return injection
wells, including casing and liner sizes and depths and a statement indicating
that such wells will be drilled, cased, cemented, and completed in accordance
with the requirements of §
3.13 of this title as those
requirements may be revised by this section. The statement shall also include
information to demonstrate that the casing and cement used in the completion of
each brine production well and each Class V spent brine return injection well
is designed to withstand the anticipated pressurization and formation fluids
that are capable of negatively impacting the integrity of casing and/or cement
such that it presents a threat to USDWs or oil, gas, or geothermal resources.
The wellbore diagrams shall show the proposed arrangement of the downhole well
equipment and specifications of the downhole well equipment. 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.
(I) The application shall include information
to characterize the brine field from which the brine will be produced and into
which the spent brine will be reinjected, including the following:
(i) an isopach map showing thickness and
areal extent of the brine field;
(ii) lithology, grain mineralogy, and matrix
cementing of the brine field;
(iii)
effective porosity of the brine field and the method used to determine
effective porosity;
(iv) vertical
and horizontal permeability of the brine field and the method used to determine
permeability;
(v) the occurrence
and extent of natural fractures and solution features within the brine
production project;
(vi) chemical
and physical characteristics of the fluids contained in the brine field that
may potentially impact casing or cement;
(vii) the bottom hole temperature and
pressure of the brine field;
(viii)
formation fracture pressure of the brine field, the method used to determine
fracture pressure and the expected direction of fracture propagation.
Calculations demonstrating injection of spent brine into the proposed brine
field shall not exceed the fracture pressure gradient and information showing
injection into the brine field will not initiate fractures through the
confining zone;
(ix) a description
of the proposed well stimulation program, if applicable, including a
description of the stimulation fluids, and a determination that the well
stimulation will not compromise containment of the brine field;
(x) the vertical distance separating the top
of the brine field from the base of the lowest USDW;
(xi) a demonstration, such as geologic maps
and cross-sections, that the brine field into which the spent brine will be
injected is the same formation from which the brine will be produced;
and
(xii) any other information
necessary to characterize the brine field.
(J) The application shall include information
to characterize the proposed confining zone, including the following:
(i) the geological name and the top and
bottom depths of the formation making up the confining zone;
(ii) an isopach map showing thickness and
areal extent of the confining zone;
(iii) lithology, grain mineralogy, and matrix
cementing of the confining zone;
(iv) the vertical distance separating the top
of the confining zone from the base of the lowest USDW; and
(v) any other information necessary to
characterize the confining zone.
(K) The application shall include the
proposed operating data, including the following:
(i) the maximum daily brine production
rate;
(ii) the maximum daily
injection rate and maximum injection pressure; and
(iii) the proposed test procedure to be used
to determine mechanical integrity of the Class V spent brine return injection
wells.
(L) The
application shall include a letter from the Geologic Advisory Unit of the
Commission's Oil and Gas Division stating that the use of the brine field for
the injection of spent brine will not endanger usable quality water or
USDWs.
(M) The application shall
include an accurate plat with surveys of a scale sufficient to legibly show the
entire extent of the area of review. The plat shall include the following:
(i) the area of review outlined on the plat
using either a heavy line or crosshatching;
(ii) the location, to the extent anticipated
at the time of the application, of each well within the brine production
project area that the applicant intends to use for the brine production project
including each existing well that may be converted to brine production or Class
V spent brine return injection, each well the applicant intends to drill for
brine production, each well the applicant intends to drill for project
monitoring, and each Class V spent brine return injection well. If the wells
are horizontal or deviated wells, the plat shall include the surface location
of the proposed drilling site, penetration point, perforated casing or open
hole through which brine will be produced or reinjected, terminus location, and
a line showing the distance in feet from the perimeter of the area of review to
the nearest point of extraction or injection on the lateral leg of the
horizontal well;
(iii) the type,
location, and depth of all wells of public record within the area of review
that penetrate the top of the brine field. The applicant shall include the
following information with the map:
(I) a
tabulation of the wells showing the dates the wells were drilled and the
current status of the wells;
(II)
completion records for all wells and plugging records for plugged and abandoned
wells; and
(III) a corrective
action plan for any known wells in the area of review that penetrate the brine
field and that may allow fluid migration into USDWs from the brine field for
which the applicant cannot demonstrate proper completion, plugging, or
abandonment. The Director may approve a phased corrective action
plan;
(iv) the geographic
location information of the wells, including the Latitude/Longitude decimal
degree coordinates in the WGS 84 coordinate system, a labeled scale bar, and
indication of the northerly direction; and
(v) a certification by a person knowledgeable
of the facts pertinent to the application that the plat is accurately drawn to
scale and correctly reflects all pertinent and required data.
(N) The application shall include
a plat showing:
(i) the outline of the brine
production project area;
(ii) the
operators of tracts in the brine production project area and tracts adjacent to
the brine production project area;
(iii) owners of all leases of record for
tracts that have no designated operator in the brine production project area
and within the brine field;
(iv)
owners of record of unleased mineral interests within the brine field for
tracts in the brine production project area;
(v) surface owners of tracts in the brine
production project area; and
(vi)
the names and addresses of all persons listed in clause (ii) through (v) of
this subparagraph. If the names and addresses of the persons in clause (ii)
through (v) of this subparagraph cannot be included on the plat, the applicant
shall include the names and addresses on a separate sheet attached to the plat.
The applicant shall determine the names and addresses of the surface owners
from the current county tax rolls or other reliable sources and shall identify
the source of the list. If the Director determines that, after diligent
efforts, the applicant has been unable to ascertain the name and address of one
or more surface owners, the Director may waive the requirements of this
subparagraph with respect to those surface owners.
(O) The application shall include a
subsurface structure map and/or cross sections, including faulting and
pinch-outs. The structure map shall show the contour of the top of the brine
field and the lines of cross section. The cross sections shall be prepared from
comparable electric logs (not tracings) and shall identify the wells, brine
field, and any hydrocarbon reservoir.
(P) The application shall include 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 injection well
location.
(Q) The application shall
include a certification that the applicant has a good faith claim to produce
the brine resources for the tracts included in the brine production project
area.
(R) The application shall
include a proposed plugging and abandonment plan.
(S) The applicant shall ensure that, if
required under Texas Occupations Code, Chapter 1001, relating to Texas
Engineering Practice Act, or Chapter 1002, relating to Texas Geoscientists
Practice Act, respectively, the geologic and hydrologic evaluations required
under this section are conducted by a licensed professional engineer or
geoscientist who shall affix the appropriate seal on the resulting report of
such evaluations.
(T) The
application shall include any other information the Director may reasonably
require to enable the Commission to determine whether to issue a permit for the
brine production project, including the associated brine production wells and
Class V spent brine return injection wells.
(4) Prior to commencement of injection
operations into any Class V spent brine return injection well within the brine
production project 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 one-half mile of the injection well after
the date of application for the brine production project permit and the status
of any well located within one-half mile of the injection well that has been
abandoned since the date the brine production project 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) a
description of any additives used in the brine production project and
reinjected with the spent brine into the Class V spent brine return
well;
(E) an application fee in the
amount of $100 per well; and
(F)
any other information required by the brine production project
permit.
(5) Criteria for
exempted aquifers. An aquifer or a portion thereof which meets the criteria for
an "underground source of drinking water" may be determined under
40 CFR §
144.7 to be an "exempted aquifer" if it meets
the criteria in paragraphs (a) through (c) of
40 CFR §
146.4. The Commission adopts
40 CFR §
144.7 and §
146.4 by reference, effective
February 18, 2025.
(6) All
individual Class V spent brine return injection wells covered by a brine
production project permit shall be completed, operated, maintained, and plugged
in accordance with the requirements of subsection (j) of this section and the
brine production project permit.
(f) Notice and hearing.
(1) Notice to certain communities. The
applicant shall identify whether any portion of the AOR encompasses an
Environmental Justice (EJ) or Limited English-Speaking Household community
using the most recent U.S. Census Bureau American Community Survey data. If the
AOR incudes an EJ or Limited English-Speaking Household community, the
applicant shall conduct enhanced public outreach activities to these
communities, including a public meeting. Efforts to include EJ and Limited
English-Speaking Household communities in public involvement activities in such
cases shall include:
(A) published meeting
notice in English and the identified language (e.g., Spanish);
(B) comment forms posted on the applicant's
webpage and available at the public meeting in English and the identified
language;
(C) interpretation
services accommodated upon request;
(D) English translation of any comments made
during any comment period in the identified language; and
(E) to the extent possible, public meeting
venues near public transportation.
(2) Notice. The applicant for a brine
production project permit shall give notice of the application as follows.
(A) Persons to notify. The applicant for a
brine production project permit shall notify:
(i) operators on tracts adjacent to the brine
production project area;
(ii)
owners of all leases of record for tracts that have no designated operator in
the brine production project area and within the brine field;
(iii) owners of record of unleased mineral
interests in the brine production project area and within the brine
field;
(iv) all surface owners
identified on the plat described in subsection (e)(3)(N)(v) of this
section;
(v) the city clerk or
other appropriate city official of a city for which any portion falls within
the brine production project area;
(vi) the county clerk of any county or
counties for which any portion falls within the brine production project area;
and
(vii) any other person
designated by the Director.
(B) Method of notice.
(i) The applicant for a brine production
project permit shall mail or deliver to persons listed in subparagraph (A) of
this paragraph notice of the brine production project permit application in a
form approved by the Commission. The applicant shall provide notice after staff
determines than an application is complete pursuant to subsection (g)(1) of
this section.
(ii) The applicant
shall publish notice of the brine production project permit application in a
form approved by the Commission. The applicant shall publish the notice once
each week for two consecutive weeks in a newspaper of general circulation of
any county or counties for which any portion falls within the brine production
project area. The first notice shall be published at least 14 days before the
protest deadline in the notice of application. The applicant shall file with
the Commission a publisher's affidavit or other evidence of
publication.
(C) Contents
of notice. The notice shall be made using the form prescribed by the
Commission, which shall include the following information:
(i) the county or counties within which the
brine production project area is located;
(ii) a copy of the plat required by
subsection (e)(3)(M) of this section;
(iii) the name of the brine field;
(iv) the depth to the top of the brine
field;
(v) the proposed life of the
brine production project; and
(vi)
a statement that an affected person may file a protest within 30 days of the
date of the notice and any interested person may submit comments to the
Commission within 30 days of the date of the notice.
(D) Notice of Class V spent brine return
injection wells. Once an applicant complies with the notice required to obtain
a brine production project permit and the permit has been issued, no notice
shall be required when filing an application for an individual injection well
permit for any Class V spent brine return injection well covered by the brine
production permit unless otherwise provided in the permit or unless the
individual injection well has an exception such that the injection well is
located closer than one-half mile from the boundary of the brine production
project, in which case notice shall be provided to any new entity located
within the area of review for the injection well.
(E) Notice of brine production well. Once an
applicant complies with the notice required to obtain a brine production permit
and the permit has been issued, no notice shall be required when filing an
application for an individual brine production well permit for any brine
production well covered by the brine production permit unless otherwise
provided in the permit or unless an exception is requested.
(3) Comments, protests, and
requests for hearing. Notice of an application will allow at least 30 days for
public comment. Beginning on the date of the notice, any affected person has 30
days to protest the application, and any interested person has 30 days to
submit written comments.
(4)
Hearings.
(A) The Commission shall hold a
hearing when:
(i) the Commission receives a
written protest from an affected person within 30 days after notice of the
application is given in accordance with this subsection;
(ii) the Director denies the application and
the operator requests a hearing within 30 days of the notice of administrative
denial;
(iii) the Director issues
the permit and the operator requests a hearing to contest certain permit
conditions; or
(iv) the Director
determines that a hearing is in the public interest.
(B) Notice of a hearing will be given at
least 30 days before the hearing. The public comment period under paragraph (3)
of this subsection will automatically be extended to the close of any hearing
under this paragraph.
(C) At any
hearing, the burden shall be on the applicant.
(D) After hearing, the administrative law
judge and technical examiner shall recommend final Commission action.
(g) Commission action on permit applications.
(1) Permitting
procedures.
(A) Initial permit application
review. Upon receipt of an application for a permit, the Director will review
the application for completeness. Within 30 days after receipt of the
application, the Director will notify the applicant in writing whether the
application is complete or deficient. A notice of deficiency will state the
additional information necessary to complete the application, and a date for
submitting this information. The application will be deemed withdrawn if the
necessary information is not received by the specified date, unless the
Director has extended this date upon request of the applicant. Upon timely
receipt of the necessary information, the Director will notify the applicant
that the application is complete. The Director will not begin processing a
permit until the application is complete.
(B) Administrative action on application.
When no timely protest is received from an affected person, the Director may
administratively grant an application for a brine production project permit,
including the associated wells, if the applicant provides sufficient evidence
to demonstrate that the brine production project will not endanger USDWs or
human health or the environment.
(2) Application for an amended permit. The
permittee shall file an application to amend a brine production project permit
if the permittee wishes to make substantial changes such as change the exterior
boundaries of, or maximum number of wells authorized in, the brine production
project area or alter permit conditions.
(3) Permit application denial. If the
Director administratively denies a permit application, a notice of
administrative denial will be mailed to the applicant. The applicant will have
a right to a hearing on request. At any such hearing, the burden shall be on
the applicant. After hearing, the administrative law judge and technical
examiner shall recommend final Commission action.
(h) Modification, revocation and reissuance, and termination of permits. A permit may be modified, revoked and reissued, or terminated by the Commission either upon the written request of the operator or upon the Commission's initiative, but only for the reasons and under the conditions specified in this subsection. Except for minor modifications made under paragraph (2) of this subsection, the Commission will follow the applicable procedures in paragraph (1) of this subsection. In the case of a modification, the Commission may request additional information or an updated application. In the case of a revocation and reissuance, the Commission will require a new application. If a permit is modified, only the conditions subject to modification are reopened. The term of a permit may not be extended by modification. If a permit is revoked and reissued, the entire permit is reopened and subject to revision, and the permit is reissued for a new term.
(1) Modification, or revocation and
reissuance. The following are causes for modification, or revocation and
reissuance:
(A) when material and substantial
alterations or additions to the brine production project occur after permit
issuance and justify permit conditions that are different or absent in the
existing permit;
(B) the Commission
receives new information;
(C) the
standards or regulations on which the permit was based have been changed by
promulgation of amended standards or regulations or by judicial decision after
the permit was issued;
(D) the
Commission determines good cause exists for modifying a compliance schedule,
such as an act of God, strike, flood, materials shortage, or other event over
which the operator has little or no control and for which there is no
reasonably available remedy;
(E)
cause exists for terminating a permit under paragraph (3) of this subsection,
and the Commission determines that modification, or revocation and reissuance,
is appropriate; or
(F) a transfer
of the permit is proposed.
(2) Minor modifications. With the permittee's
consent, the Director may make minor modifications to a permit
administratively, without following the procedures of paragraph (1) of this
subsection. Minor modifications may only:
(A)
correct clerical or typographical errors, or clarify any description or
provision in the permit, provided that the description or provision is not
changed substantively;
(B) require
more frequent monitoring or reporting;
(C) change construction requirements provided
that any changes shall comply with the requirements of subsection (j)(4) of
this section; or
(D) allow a
transfer of the permit where the Director determines that no change in the
permit is necessary other than a change in the name of the permittee, provided
that a written agreement between the current permittee and the new permittee
containing a specific date for the transfer of permit responsibility, coverage,
and liability has been submitted to the Commission.
(3) Termination. The following are causes for
terminating a permit during its term, or for denying a permit renewal
application:
(A) the permittee fails to comply
with any condition of the permit or this section;
(B) the permittee fails to disclose fully all
relevant facts in the permit application or during the permit issuance process,
or misrepresents any relevant fact at any time;
(C) a material change of conditions occurs in
the operation or completion of the well, or there are material changes in the
information originally furnished; or
(D) the Commission determines that the
permitted injection endangers human health or the environment, or that
pollution of USDWs is occurring or is likely to occur as a result of the
permitted injection.
(4)
Duty to provide information. The permittee shall also furnish to the
Commission, within a time specified by the Commission, any information that the
Commission may request to determine whether cause exists for modifying,
revoking and reissuing, or terminating the permit, or to determine compliance
with the permit. The permittee shall also furnish to the Commission, upon
request, copies of records required to be kept under the conditions of the
permit.
(i) Permit conditions.
(1) Access by Commission. The
permittee shall allow any member or employee of the Commission, on proper
identification, to:
(A) enter upon the
premises where a regulated activity is conducted or where records are kept
under the conditions of the permit;
(B) have access to and copy, during
reasonable working hours, any records required to be kept under the conditions
of the permit;
(C) inspect any
facilities, equipment (including monitoring and control equipment), practices,
or operations regulated or required under the permit; and
(D) sample or monitor any substance or
parameter for the purpose of assuring compliance with the permit or as
otherwise authorized by the Texas Water Code, §
27.071, or the Texas
Natural Resources Code, §
91.1012.
(2) Commission testing. The
Commission may make any tests on any well at any time necessary for regulation
of wells under this section, and the operator of such wells shall comply with
any directives of the Commission to make such tests in a proper
manner.
(3) Duty to comply. The
permittee shall comply with all conditions of the permit. Any permit
noncompliance is grounds for enforcement action, for permit termination,
revocation and reissuance, or modification, or for denial of a permit renewal
application.
(4) Need to halt or
reduce activity not a defense. It is not a defense for a permittee in an
enforcement action that it would have been necessary to halt or reduce the
permitted activity in order to maintain compliance with the conditions of the
permit.
(5) Duty to mitigate. The
permittee shall take all reasonable steps to minimize and correct any adverse
effect on the environment resulting from noncompliance with the
permit.
(6) Proper operation and
maintenance. The permittee shall at all times properly operate and maintain all
facilities and systems of treatment and control, and related appurtenances,
that are installed or used by the permittee to achieve compliance with the
conditions of the permit. Proper operation and maintenance includes effective
performance, adequate funding, adequate permittee staffing and training, and
adequate laboratory and process controls, including appropriate quality
assurance procedures. This provision requires the operation of back-up and
auxiliary facilities or similar systems only when necessary to achieve
compliance with the conditions of the permit.
(7) Property rights. The permit does not
convey any property rights of any sort, or any exclusive privilege. However, a
valid permit is a property interest that may not be modified, suspended, or
revoked without due process of law.
(8) Financial assurance. The permit shall
require the permittee to maintain financial responsibility and resources to
plug and abandon all brine mining production wells and Class V spent brine
return injection wells and to remove all wastes, storage vessels, and equipment
from the site within one year of cessation of brine production operations. The
permittee shall show evidence of such financial responsibility to the Director
in accordance with the requirements of §
3.78 of this title by submitting a
cash deposit, an individual performance bond, a blanket performance bond, or
letter of credit in a form prescribed by the Commission. Such cash deposit,
bond, or letter of credit shall be maintained until the well is plugged in
accordance with paragraph (16) of this subsection.
(9) Duration. A permit issued under this
section is effective for the duration of the brine production project. The
Commission will review each permit issued pursuant to this section at least
once every five years to determine whether just cause exists for modification,
revocation and reissuance, or termination of the permit. The Commission may
modify, revoke and reissue, or terminate a permit for just cause only after
notice and opportunity for a hearing.
(10) Transfers. A brine production project
permit is not transferable to any person except by modification, or revocation
and reissuance of the permit to change the name of the permittee and
incorporate other necessary requirements associated with the permittee name
change.
(11) Permit renewal. Any
person who has obtained a permit under this section and who wishes to continue
to operate the brine production project and brine production wells after the
permit expires shall file an application for a new permit at least 180 days
before the existing permit expires, unless a later date has been authorized by
the Director.
(12) Permit actions.
The permit may be modified, revoked and reissued, or terminated for cause. The
filing of a request by the permittee for a permit modification, revocation and
reissuance, or termination, or a notification of planned changes or anticipated
noncompliance does not stay any permit condition.
(13) Compliance with permit. All brine
production wells and Class V spent brine return injection wells shall be
drilled, converted, completed, operated, or maintained in accordance with the
brine production project permit.
(14) Monitoring and records.
(A) Samples and measurements taken for the
purpose of monitoring shall be representative of the monitored
activity.
(B) The permittee shall
retain records of all monitoring information, including all calibration and
maintenance records and all original chart recordings for continuous monitoring
instrumentation, copies of all reports required by the permit, and records of
all data used to complete the permit application, for at least five years from
the date brine production ceases. This period may be extended by the Commission
at any time.
(C) Records of
monitoring information shall include the date, exact place, and time of the
sampling or measurements; the individuals who performed the sampling or
measurements; the dates analyses were performed; the individuals who performed
the analyses; the analytical techniques or methods used; and the results of the
analyses.
(15) Reporting
and record retention.
(A) The permittee shall
submit to the Director, within the time specified by the Director, any
information that the Director may reasonably request to determine whether cause
exists for modifying, revoking and reissuing, or terminating the permit, or to
determine compliance with the permit. The permittee shall also furnish to the
Director, upon request, copies of records required to be kept under the
conditions of the permit.
(B) The
permittee shall retain records of all information required by the permit for at
least five years from the date brine production ceases. This period may be
extended by request of the Commission at any time.
(C) The permittee shall file a report of the
volumes of brine, oil, and gas produced by each brine production well during
the preceding month. The permittee shall report the volumes of brine production
on a form designated by the Commission. The permittee shall report oil or gas
volumes on the Form PR, Monthly Production Report. Each report shall be filed
with the Commission on or before the last day of the month following the period
covered by the report.
(D) The
permittee shall notify the Director at such times as the permit requires before
conversion or abandonment of a well associated with a brine production
project.
(E) The permittee shall
report to the Commission any noncompliance, including any spills or leaks from
brine receptacles or pipelines, that may cause waste or confiscation of
property or endanger surface or subsurface water, human health or the
environment.
(i) An oral report shall be made
to the appropriate district office immediately after the permittee becomes
aware of the noncompliance.
(ii) A
written report shall be filed with the Director and the appropriate district
office within five days of the time the permittee becomes aware of the
noncompliance. The written report shall contain the following information:
(I) a description of the noncompliance and
its cause;
(II) the period of
noncompliance, including exact dates and times, and, if the noncompliance has
not been corrected, the anticipated time it is expected to continue;
and
(III) steps planned or taken to
reduce, eliminate, and prevent recurrence of the noncompliance.
(F) If the permittee
becomes aware that it failed to submit any relevant facts or submitted
incorrect information in a permit application or a report to the Commission,
the permittee shall promptly submit the relevant facts or correct
information.
(16)
Plugging. The operator of a brine production project shall plug all wells
associated with the brine production project in accordance with the provisions
of §
3.14 of this title, except that
the well shall be plugged within one year after cessation of the brine
production project. For good cause, the Director may grant a reasonable
extension of time in which to plug the wells if the operator submits a proposal
that describes actions or procedures to ensure that the wells will not endanger
USDWs during the period of the extension.
(17) Identification. Each property that
produces brine resources and each well associated with a brine production
project and tank shall at all times be clearly identified as follows.
(A) A sign shall be posted at the principal
entrance to each such property which shall show the name by which the property
is commonly known and is carried on the records of the Commission, the name of
the permittee, and the number of acres in the property.
(B) A sign shall be posted at each well site
which shall show the name of the property, the name of the permittee, and the
well number.
(C) A sign shall be
posted at or painted on each tank that is located on or serving each property,
which signs shall show, in addition to the information provided for in
subparagraph (A) of this paragraph, the Commission lease number for the
formation from which brine in the tank is produced.
(D) The signs and identification required by
this section shall be in the English language, clearly legible, and in the case
of the signs required by subparagraphs (A), (B), and (C) of this paragraph
shall be in letters and numbers at least one inch in height.
(18) Dikes or berms. Dikes or
berms shall be erected and maintained around all permanent tanks, or battery of
tanks, that are:
(A) within the corporate
limits of any city, town, or village;
(B) closer than 500 feet to any highway or
inhabited dwelling;
(C) closer than
1,000 feet to any school or church; or
(D) so located as to be deemed by the
Commission to be an objectionable hazard.
(19) Additional conditions. The Commission
reserves the right to include additional permit conditions if it determines the
conditions are necessary to ensure compliance with the requirements in this
section and to prevent waste, prevent the confiscation of property, or prevent
pollution.
(j) Additional permit conditions for Class V spent brine return injection wells. In addition to the conditions in subsection (i) of this section, Class V spent brine return injection wells shall be subject to the following.
(1) Unauthorized injection prohibited. No
person may operate a Class V spent brine return injection well without
obtaining a permit from the Commission under this section. No person may begin
constructing a new Class V spent brine return injection well until the
Commission has issued a permit to drill, deepen, plug back, or reenter the well
under §
3.5 of this title and a permit to
operate the injection well under this section.
(2) Injected fluid restricted to brine field.
No person may operate a Class V spent brine return injection well in a manner
that allows fluids to escape into USDWs from the brine field from which it was
produced. If fluids from a Class V spent brine return injection well are
migrating out of the brine field into USDWs, the permittee shall immediately
cease injection operations in the well or wells most proximate to the location
where fluids have been detected in USDWs and perform the necessary corrective
action or plug the injection well.
(3) Permit standards. No person may operate a
Class V spent brine return injection well in a manner that allows fluid to
escape from the permitted brine field or the movement of fluids containing any
contaminant into USDWs, if the presence of that contaminant may cause a
violation of any primary drinking water regulation or may otherwise adversely
affect the health of persons. If injected fluids migrate into USDWs, or cause
formation fluid to migrate into USDWs, the permittee shall immediately cease
injection operations. All permits for Class V spent brine return injection
wells issued under this section shall include the conditions required by this
section and any other conditions reasonably necessary to prevent the pollution
of USDWs.
(4) Construction
requirements for Class V spent brine return injection wells. All Class V spent
brine mining injection wells shall be drilled and completed or recompleted,
operated, maintained, and plugged in accordance with the requirements of this
section and the Class V spent brine return injection well permit.
(A) Permits shall specify drilling and
construction requirements to assure that the injection operations shall not
endanger USDWs. No changes to the construction of a well may be physically
incorporated into the construction of the well prior to approval of the
modifications by the Director.
(B)
In addition to the casing and cementing requirements of §
3.13 of this title, the operator
shall:
(i) for all newly drilled Class V spent
brine return injection wells, drill a sufficient depth into the brine field to
ensure that when the well is logged prior to setting the long string the
operator will be able to identify the top of the brine field and verify that
the fluid will be injected only into the brine field;
(ii) set and cement surface casing from at
least 100 feet below the lowermost base of usable quality water as defined by
the Geologic Advisory Unit to the surface, regardless of the total depth of the
well;
(iii) set and cement long
string casing at a minimum from the top of the brine field to the surface
unless the Director approves an alternate completion for good cause;
and
(iv) determine the integrity of
the cement by a cement bond log.
(C) In order to provide the Commission with
an opportunity to witness the setting and cementing of the surface casing and
production casing (long string) and running of cement bond logs, the operator
shall provide at least 48 hours' notice to the appropriate Commission district
office.
(D) Appropriate logs and
other tests shall be conducted during the drilling and construction of a Class
V spent brine return injection well to verify the depth to the top of the brine
field, adequacy of cement behind the casing strings, and injectivity and
fracture pressure of the brine field. A descriptive report interpreting the
results of such logs and tests shall be prepared by a knowledgeable log analyst
and submitted to the Director. The logs and tests appropriate to each well
shall be determined based on the depth, construction, and other characteristics
of the well, the availability of similar data in the area, and the need for
additional information that may arise as the construction of the well
progresses.
(E) The well shall be
equipped with tubing and packer set within 100 feet of the top of the brine
field.
(F) The wellhead shall be
equipped with a pressure observation valve on the tubing and for each annulus
of the well.
(G) Injection
operations may not begin in any new Class V spent brine return injection well
until the operator has submitted a completion report to the Director, and the
Director has reviewed the completion report and found the well to be in
compliance with this section and the conditions of the permit. If the permittee
has not received notice from the Director that the well is in compliance with
this section and the permit within 45 days of submission of the completion
report, the permittee may begin injection operations.
(5) Operating requirements. Class V spent
brine return injection well permits will prescribe operating requirements,
which shall at a minimum specify the following.
(A) All Class V spent brine return injection
shall be into the same brine field from which the brine was extracted by the
brine production wells.
(B) All
injection shall be through tubing set on a packer. The packer shall be set
within 100 feet of the top of the permitted injection interval. The Director
will consider granting exceptions to this requirement for good cause and when
the proposed completion of the well would still result in the protection of
underground sources of drinking water and confinement of injected fluids. For
wells that are approved for casing injection, the operator shall perform a
casing pressure test against a temporary packer/plug to demonstrate mechanical
integrity of the long string casing.
(C) Except during well stimulation, injection
pressure at the wellhead shall not exceed the maximum pressure calculated to
assure that the injection pressure does not initiate new fractures or propagate
existing fractures in the brine field and in no case may the injection pressure
initiate fractures in the confining zone or cause the escape of injection or
formation fluids from the brine field.
(D) The operator shall fill the annulus
between the tubing and long string casing with a corrosion inhibiting fluid.
All injection wells shall maintain an annulus pressure sufficient to indicate
mechanical integrity unless the Director determines that such requirement might
harm the integrity of the well or endanger USDWs. The annulus pressure shall be
monitored by a pressure chart or digital pressure gauge. The operator shall
provide the Director with a written report and explanation of any change in
annulus pressure that would indicate a leak or lack of mechanical integrity
within 15 days of detecting the change in pressure. The Commission will
consider any deviations that cannot be explained by factors such as temperature
fluctuations or a reasonable margin of error to be an indication of the
possibility of a significant leak and/or the possibility of significant fluid
movement into a formation containing a USDW. An unsatisfactory explanation may
result in a requirement that the well be tested for mechanical
integrity.
(E) For each workover of
an injection well, the operator shall notify the appropriate Commission
district office at least 48 hours prior to the beginning of the workover or
corrective maintenance operations that involve the removal of the tubing or
well stimulation, and a mechanical integrity test shall be run on the well
after the workover is completed if the packer is unseated during the
workover.
(6) Corrective
action. For all known wells in the area of review that penetrate the top of the
brine field for which the operator cannot demonstrate proper completion,
plugging, or abandonment, the Director will require corrective action if
necessary to prevent movement of fluid into USDWs. Corrective action may be
phased, if a phased corrective action plan has been approved by the
Director.
(7) Mechanical integrity
of Class V spent brine return injection wells.
(A) Mechanical integrity required. No person
may perform injection operations in a Class V spent brine return injection well
that lacks mechanical integrity. A well has mechanical integrity if:
(i) there is no significant leak in the
casing (internal mechanical integrity); and
(ii) there is no significant fluid movement
into a USDW through vertical channels adjacent to the wellbore (external
mechanical integrity).
(B) Mechanical integrity shall be
demonstrated to the satisfaction of the Director. In conducting and evaluating
the results of a mechanical integrity test, the operator and the Director shall
apply procedures and standards generally accepted in the industry. In reporting
the results of a mechanical integrity test, the operator shall include a
description of the method and procedures used. In evaluating the results, the
Director will review monitoring and other test data submitted since the
previous mechanical integrity test.
(C) Internal mechanical integrity. The
permittee shall provide for a demonstration of internal mechanical integrity of
the wellhead, casing, tubing, and annular seal assembly if present, using
either a pressure test at a surface pressure of not less than 100 psig above
the maximum expected operating surface pressure of the well or an equivalent
test approved by the Director. The permittee shall provide a recording device
to record the pressures measured during a mechanical integrity test.
(D) External mechanical integrity. The
permittee shall use one of the following methods to demonstrate the absence of
significant fluid movement into USDWs through vertical channels adjacent to the
Class V spent brine return injection wellbore:
(i) the results of a temperature or noise
log; or
(ii) where the nature of
the casing precludes the use of the logging techniques prescribed in clause (i)
of this subparagraph, cementing records demonstrating the presence of adequate
cement to prevent such movement.
(E) Alternate methods. The Director may allow
the use of a method of demonstrating mechanical integrity other than the
methods listed in subparagraphs (C) and (D) of this paragraph with the approval
of the administrator of EPA obtained pursuant to
40 CFR §
146.8(d).
(F) Calibration of pressure gauges. A
permittee shall calibrate all pressure gauges used in mechanical integrity
demonstrations according to the manufacturer's recommendations. A copy of the
calibration certificate shall be submitted to the Director at the time of
demonstration and every time the gauge is calibrated. A pressure gauge shall
have a resolution so as to allow detection of at least one-half of the maximum
allowable pressure change.
(G)
Timing of mechanical integrity testing.
(i)
Both internal and external mechanical integrity shall be demonstrated before
injection operations begin.
(ii)
Internal mechanical integrity shall be demonstrated annually thereafter and
after any workover that involves the removal of the tubing.
(iii) External mechanical integrity shall be
demonstrated every five years.
(iv)
The Director may require mechanical integrity testing if the Director has
reason to believe that the well lacks mechanical integrity.
(H) Notice of testing. The
permittee shall notify the appropriate Commission district office orally at
least 48 hours before performance of a mechanical integrity test.
(I) Reporting of testing. The permittee shall
file a complete record of the test with the Commission in Austin within 30 days
after the test. A copy of the pressure record shall accompany the report. The
report shall include evaluation of the test results by a person qualified to
provide such an evaluation. Reports of mechanical integrity demonstrations
using downhole logs shall be accompanied by an interpretation of the log by a
person qualified to make such interpretations.
(J) Failure to demonstrate mechanical
integrity.
(i) A well shall maintain
mechanical integrity. If the permittee or the Director finds that the well
fails to demonstrate mechanical integrity during a test, fails to maintain
mechanical integrity during operation, or that a loss of mechanical integrity
is suspected during operation, the permittee shall halt injection immediately
unless the Director allows continued injection because the permittee
establishes that injection can continue without endangering USDWs. Report of
the failure of mechanical integrity shall be made orally to the Director within
24 hours from the time the permittee becomes aware of the failure.
(ii) A written plan to restore mechanical
integrity shall be submitted to the Director within 15 days of the failure to
demonstrate mechanical integrity. The plan shall include a schedule and
description of corrective action and a schedule for re-testing or plugging the
well. The corrective action proposed in the plan shall be designed such that
the completion of the well will comply with this section. The Director may
witness any mechanical integrity demonstration.
(iii) All wells that fail to pass a
mechanical integrity test shall be repaired or plugged and abandoned within 90
days of the failure date. The 90-day timeline may be extended by the Director
for good cause. The well shall be shut-in immediately after failure to pass the
mechanical integrity test and shall remain shut-in until it passes a mechanical
integrity test or is plugged and abandoned.
(K) Testing deviations. The Commission will
consider any deviations during testing that cannot be explained by factors such
as temperature fluctuations or by the margin of error for the test used to
determine mechanical integrity to be an indication of the possibility of a
significant leak and/or the possibility of significant fluid movement into a
formation containing a USDW.
(8) Monitoring and records.
(A) Monitoring requirements. Permits shall
specify the following monitoring requirements:
(i) the proper use, maintenance, and
installation of monitoring equipment or methods;
(ii) the type, intervals, and frequency of
monitoring sufficient to yield data representative of the monitored activity,
including continuous monitoring when appropriate;
(iii) the reporting of monitoring results
with a frequency dependent on the nature and effect of the monitored activity,
but in no case less than annually; and
(iv) any samples and measurements taken for
the purpose of monitoring shall be representative of the monitored
activity.
(B) Record
retention. The operator shall retain records of all monitoring information,
including all calibration and maintenance records and all original chart
recordings for continuous monitoring instrumentation, copies of all reports
required by the permit, and records of all data used to complete the permit
application, for at least five years from the date brine production ceases.
This period may be extended by request of the Commission at any time.
(C) Monitoring record contents. Records of
monitoring information shall include the date, exact place, and time of the
sampling or measurements; the individuals who performed the sampling or
measurements; the dates analyses were performed; the individuals who performed
the analyses; the analytical techniques or methods used for the analyses; and
the results of the analyses.
(D)
Signatory requirements. All reports and other information submitted to the
Commission shall be signed and certified in accordance with subsection (c)(2)
of this section.
(E) Reporting
requirements.
(i) The operator shall notify
the Commission and obtain Commission approval in advance of any planned changes
to the brine production project, including any physical alternation or addition
to the project and any change that may result in non-compliance with permit
conditions.
(ii) Monitoring results
shall be reported at the intervals specified in the permit.
(iii) Reports of compliance or noncompliance
with the requirements contained in any schedule of compliance shall be
submitted no later than 30 days after each scheduled date.
(iv) The operator shall report to the
Commission any noncompliance that may endanger USDWs, human health, or the
environment.
(I) An oral report shall be made
to the appropriate Commission district office immediately after the operator
becomes aware of the noncompliance.
(II) A written report shall be filed with the
Director within five days of the time the operator becomes aware of the
noncompliance. The written report shall contain the following information:
(-a-) a description of the noncompliance and
its cause;
(-b-) the period of
noncompliance, including exact dates and times, and, if the noncompliance has
not been corrected, the anticipated time it is expected to continue;
and
(-c-) steps taken or planned to
reduce, eliminate, and prevent recurrence of the noncompliance.
(v) Information that
shall be reported under this subparagraph includes the following:
(I) any monitoring or any other information
that indicates that any contaminant may endanger USDWs; and
(II) any noncompliance with a permit
condition or malfunction of the injection system that may cause fluid migration
into or between USDWs.
(F) Reporting errors. If the operator becomes
aware that it failed to submit any relevant facts or report any noncompliance,
or that it submitted incorrect information in a permit application or a report
to the Director, then the operator shall promptly submit the relevant facts,
report of noncompliance, or correct information as applicable. A report of
noncompliance shall contain the information listed in subparagraph (E) of this
paragraph.
(9) Notice of
workovers. The operator shall notify the appropriate Commission district office
at least 48 hours before performing any workover or corrective maintenance
operations that involve the unseating of the packer or well
stimulation.
(10) Additional
conditions. The Commission may establish additional conditions on a
case-by-case basis as required to provide for and assure compliance with the
requirements specified in this section.
(k) Violations; penalties.
(1) Any well drilled or operated in violation
of this section without a permit issued under this section shall be
plugged.
(2) Violations of this
section may subject the operator to penalties and remedies specified in the
Texas Water Code, Chapter 27, and the Natural Resources Code, Title
3.
(3) The certificate of
compliance for a brine production well may be revoked in the manner provided in
subsections §
3.73(d)-(g),
(i)-(k) of this title (relating to Pipeline
Connection; Cancellation of Certification of Compliance; Severance) for
violations of this section.
(l) Commission review of administrative actions. Administrative actions performed by the Director or Commission staff pursuant to this section are subject to review by the commissioners.
(m) Federal regulations. All references to the CFR in this section are references to the 1987 edition of the Code. The following federal regulations are adopted by reference and can be obtained at the William B. Travis Building, 1701 North Congress Avenue, Austin, Texas 78711: 40 CFR §§ 124.8(b), 124.10(c)(1) (viii), 124.10(d), and 146.8(d). Where the word "director" is used in the adopted federal regulations, it should be interpreted to mean "commission."
(n) Effective date. For the regulations pertaining to Class V spent brine return injection wells, this section becomes effective upon approval of the Commission's Class V Underground Injection Control (UIC) Program for spent brine return injection wells by the USEPA under the Safe Drinking Water Act, §1422 (42 United States Code § 300h-1). For all other regulations, this section becomes effective as provided in Section 2001.001 et seq. of the Texas Government Code.
Disclaimer: These regulations may not be the most recent version. Texas 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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