Current through Reg. 49, No. 12; March 22, 2024
Any person who disposes of saltwater or other oil and gas
waste by injection into a porous formation not productive of oil, gas, or
geothermal resources shall be responsible for complying with this section,
Texas Water Code, Chapter 27, and Title 3 of the Natural Resources Code.
(1) General. Saltwater or other oil and gas
waste, as that term is defined in the Texas Water Code, Chapter 27, may be
disposed of, upon application to and approval by the commission, by injection
into nonproducing zones of oil, gas, or geothermal resources bearing formations
that contain water mineralized by processes of nature to such a degree that the
water is unfit for domestic, stock, irrigation, or other general uses. Every
applicant who proposes to dispose of saltwater or other oil and gas waste into
a formation not productive of oil, gas, or geothermal resources must obtain a
permit from the commission authorizing the disposal in accordance with this
section. Permits from the commission issued before the effective date of this
section shall continue in effect until revoked, modified, or suspended by the
commission.
(2) Geological
requirements. Before such formations are approved for disposal use, the
applicant shall show that the formations are separated from freshwater
formations by impervious beds which will give adequate protection to such
freshwater formations. The applicant must submit a letter from the Groundwater
Advisory Unit of the Oil and Gas Division stating that the use of such
formation will not endanger the freshwater strata in that area and that the
formations to be used for disposal are not freshwater-bearing.
(3) Application.
(A) The application to dispose of saltwater
or other oil and gas waste by injection into a porous formation not productive
of oil, gas, or geothermal resources shall be filed with the commission in
Austin accompanied by the prescribed fee. On the same date, one copy shall be
filed with the appropriate district office.
(B) 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.
(C) 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.
(4) 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 published 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.
(5)
Notice and opportunity for hearing.
(A) 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 disposal 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
municipal boundaries 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.
(B) In addition to the requirements of
subsection (a)(5)(A) of this section, a commercial disposal well permit
applicant shall give notice to owners of record of each surface tract that
adjoins the proposed disposal tract by mailing or delivering a copy of the
application to each such surface owner.
(C) 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 districts.
(D) 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.
(E) Protested applications:
(i) 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.
(ii) 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.
(F) 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.
(6)
Subsequent commission action.
(A) A permit
for saltwater or other oil and gas waste disposal may be modified, suspended,
or terminated by the commission for just cause after notice and opportunity for
hearing, if:
(i) a material change of
conditions occurs in the operation or completion of the disposal well, or there
are material changes in the information originally furnished;
(ii) freshwater is likely to be polluted as a
result of continued operation of the well;
(iii) there are substantial violations of the
terms and provisions of the permit or of commission rules;
(iv) the applicant has misrepresented any
material facts during the permit issuance process;
(v) injected fluids are escaping from the
permitted disposal zone;
(vi)
injection is likely to be or determined to be contributing to seismic activity;
or
(vii) waste of oil, gas, or
geothermal resources is occurring or is likely to occur as a result of the
permitted operations.
(B) A disposal 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.
(C) Voluntary permit suspension.
(i) 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 paragraph (12)(D) of this section. The
provisions of this subparagraph shall not apply to any well that is permitted
as a commercial disposal well.
(ii)
The commission or its delegate may grant the permit suspension upon determining
that the results of the MIT test submitted under clause (i) of this
subparagraph indicate that the well meets the performance standards of
paragraph (12)(D) of this section.
(iii) During the period of permit suspension,
the operator shall not use the well for injection or disposal
purposes.
(iv) 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 paragraph (12)(D) of this section or the permit. Further,
during the period of permit suspension, the provisions of paragraph (11)(A) -
(C) of this section shall not apply.
(v) 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 paragraph (12)(D) of this
section.
(7)
Area of Review.
(A) Except as otherwise
provided in this paragraph, the applicant shall review the date 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.
(B) The commission or its delegate may grant
a variance from the area-of-review requirements of subparagraph (A) of this
paragraph 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:
(i) the area affected by pressure increases
resulting from injection operations;
(ii) the presence of local geological
conditions that preclude movement of fluid that could endanger freshwater
strata or the surface; or
(iii)
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.
(C) Persons
applying for a variance from the area-of-review requirements of subparagraph
(A) of this paragraph on the basis of factors set out in subparagraph (B)(ii)
or (iii) of this paragraph for an individual well shall provide notice of the
application to those persons given notice under the provisions of paragraph
(5)(A) of this subsection. The provisions of paragraph (5)(D) and (E) shall
apply in the case of an application for a variance from the area-of-review
requirements for an individual well.
(D) Notice of an application for an areal
variance from the area-of-review requirements under subparagraph (A) of this
paragraph shall be given on or before the date the application is filed with
the commission:
(i) 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;
(ii) 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 of the application is
filed with the commission, to the following:
(I) the manager of each underground water
conservation district(s) 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 determine should receive notice of the
application.
(E) 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.
(F)
An areal variance granted under the provisions of this paragraph 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 subparagraph (A) of this paragraph
pending issuance of a final order.
(8) Casing. Disposal 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, geothermal resources, or freshwater
resources.
(9) Special equipment.
(A) Tubing and packer. Wells drilled or
converted for disposal shall be equipped with tubing set on a mechanical
packer. Packers shall be set no higher than 100 feet above the top of the
permitted interval. 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.
(B) Pressure valve. The wellhead shall be
equipped with a pressure observation valve on the tubing and for each annulus
of the well.
(C) Exceptions. The
director may grant an exception to any provision of this paragraph upon proof
of good cause. If the director 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.
(10) Well record. Within 30 days after the
completion or conversion of a disposal 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.
(11) Monitoring and reporting.
(A) The operator shall monitor the injection
pressure and injection rate of each disposal well on at least a monthly basis,
or on a more frequent basis as required by the commission under conditions
described in paragraph (3)(C) of this section.
(B) The results of the monitoring shall be
reported annually to the commission on the prescribed form, or on a more
frequent basis as required by the commission under conditions described in
paragraph (3)(C) of this section.
(C) All monitoring records shall be retained
by the operator for at least five years.
(D) 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.
(12) Testing.
(A) Purpose. The mechanical integrity of a
disposal 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 subparagraph (E) of this paragraph.
(B) Applicability. Mechanical integrity of
each disposal well shall be demonstrated in accordance with provisions of
subparagraph (D) and subparagraph (E) of this paragraph prior to initial use.
In addition, mechanical integrity shall be tested periodically thereafter as
described in subparagraph (C) of this paragraph.
(C) Frequency.
(i) Each disposal 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.
(ii) In addition to testing
required under clause (i), each disposal well shall be tested for mechanical
integrity after every workover of the well.
(iii) A disposal 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 disposal well permit.
(iv) 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 clauses (i) and (ii) of this
subparagraph. Such testing schedule shall not apply to a disposal well for
which a disposal well permit has been issued but the well has not been drilled
or converted to disposal.
(D) Pressure tests.
(i) Test pressure.
(I) The test pressure for wells equipped to
dispose 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 disposal through casing shall equal the maximum
permitted injection pressure or 200 psig, whichever is greater.
(ii) Pressure stabilization. The
test pressure shall stabilize within 10% of the test pressure required in
clause (i) of this subparagraph prior to commencement of the test.
(iii) 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.
(iv) 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.
(v) Pressure recorder. Except for tests
witnessed by a commission representative or wells permitted for disposal
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.
(vi) 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 the 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.
(vii) 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.
(E) Alternative testing methods.
(i) As an alternative to the testing required
in subparagraph (B) of this paragraph, the tubing-casing annulus pressure may
be monitored and included on the annual monitoring report required by paragraph
(11) 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 subparagraph (B) of this paragraph at least
once every ten years after January 1, 1990.
(ii) The commission or its delegate may grant
an exception for viable alternative tests or surveys or may require alternative
tests or surveys as a permit condition.
(F) 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.
(G) A complete record of
all tests shall be filed in duplicate in the district office on the appropriate
form within 30 days after the testing.
(H) 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.
(13)
Plugging. Disposal wells shall be plugged upon abandonment in accordance with
§
RSA 3.14 of
this title (relating to Plugging).
(14) Penalties.
(A) 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.
(B) 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 Certification of Compliance; Severance) for
violation of this section.