Header:
KANSAS ADMINISTRATIVE REGULATIONS
AGENCY 82 KANSAS CORPORATION COMMISSION
ARTICLE 3. PRODUCTION AND CONSERVATION OF OIL AND GAS
Date:
08/31/2009
Document:
82-3-1101. CO[2] storage facility; permit application.
(a) No entity shall operate a CO[2] storage facility without a permit to operate the facility.
(b) Each applicant for a permit shall submit the application on a form provided by the conservation division. The applicant shall sign and verify the application. The applicant shall file the original and two copies of the application with the conservation division.
(c) Each application shall contain the following information:
(1) The applicant's name and license number;
(2) the name of the proposed CO[2] storage facility;
(3) the name, description, and average depth of the CO[2] storage reservoir or reservoirs proposed to be utilized for CO[2] storage;
(4) a generalized stratigraphic column of the geologic formations encountered at the proposed CO[2] storage facility supported with geophysical logs:
(A) Each generalized stratigraphic column and geophysical log shall identify the geologic formations from the surface through the first formation below the storage reservoir and clearly label all fresh and usable water aquifers and all known active and inactive oil and gas producing horizons within the CO[2] storage facility and within a one-mile radius around the CO[2] storage facility; and
(B) minimum required geophysical logging analysis curves for each CO[2] storage well shall be on a scale of 5"=100' and shall include the following: correlation gamma ray, formation density, porosity curves, spontaneous potential, cement bond log and temperature log;
(5) a geologic, hydrogeologic, and reservoir evaluation of the proposed CO[2] storage facility, including the predicted amount of CO[2] that will be stored in the reservoir. The evaluation shall describe the geologic, geomechanic, hydrogeologic, and reservoir characteristics of the proposed CO[2] storage reservoir or reservoirs, the adjacent confining layer or layers, and the reservoir conditions that control the trapping mechanism. The evaluation shall consist of written text as specified in this paragraph and shall be illustrated with maps and cross sections. In addition, the evaluation shall identify any petroleum and water resources that have the potential to impact or be impacted by CO[2] storage operations. The evaluation under this paragraph, including all written materials and all accompanying maps, shall be certified by a licensed engineer or licensed geologist. This evaluation shall include the following:
(A) An assessment of the regional and local geological setting, including regional or local faulting and structural or stratigraphic features;
(B) the geological characterization of the trapping and containment mechanisms of the proposed CO[2] storage reservoir and adjacent confining layers, using all available geophysical data;
(C) a geochemistry evaluation to quantitatively predict water-CO[2]-rock reactions and their effects on the storage reservoir;
(D) an evaluation of the CO[2] concentrations in the proposed storage reservoir and adjacent formations;
(E) reservoir evaluation and modeling for long-term distribution of CO[2] in the subsurface, including the rate of dissolution of the CO[2] in the formation water, miscibility, migration rates, direction, and the monitoring of the CO[2] reservoir pressure and migration;
(F) reservoir modeling of long-term movement of brine displaced by the injection of CO[2];
(G) exhibits and plan view maps showing the following:
(i) All CO[2] storage wells;
(ii) all water, oil, and natural gas exploration and development wells and other man-made surface structures and activities within one mile outside of the storage facility boundary;
(iii) all regional or local faulting;
(iv) an isopach map of the CO[2] storage reservoir or reservoirs;
(v) an isopach map of the adjacent confining layer or layers;
(vi) a structure map of the top and base of the CO[2] storage reservoir or reservoirs;
(vii) the extent of the area of maximum volume and all structural spill points or stratigraphic anomalies controlling the containment of stored CO[2] or associated fluids. The base for this map shall be a structure map on top of the storage reservoir;
(viii) structural and stratigraphic cross sections that depict the geologic conditions at the proposed CO[2] storage facility;
(ix) a detailed plan that outlines timely and permanent monitoring of soil, usable water, and the first porous zone immediately above the CO[2] reservoir's confining layer; and
(x) a saline fluid flow map of the storage reservoir showing local and regional fluid flow direction; and
(H) an evaluation of all potential migration pathways that could lead to any potential loss of containment;
(6) a closure plan, which shall include the following:
(A) Pressure in the injection zone before injection began and the anticipated pressure in the injection zone at the time of closure;
(B) the predicted time when pressure in the storage reservoir will decrease to a point at which the storage reservoir's static fluid level will be below the base of the lowermost usable water formation;
(C) the predicted position of the leading edge of CO[2] plume at closure; and
(D) monitoring of the CO[2] plume and the lowest usable water zone;
(7) an area of review evaluation, which shall be certified by a licensed geologist or licensed engineer and shall include the following:
(A) A review of the data of public record and all available records for all wells that penetrate the CO[2] storage reservoir and those wells that penetrate the CO[2] storage reservoir within one-fourth mile of the boundary of the CO[2] storage facility. This review shall determine if all the abandoned wells have been plugged in a manner that prevents the movement of CO[2] or associated fluids from the CO[2] storage reservoir and if all unplugged wells that penetrate the CO[2] storage reservoir have adequate cement to isolate the storage interval from other reservoirs in the well and from behind the casing; and
(B) identification of any wells that appear from a review of public records to be unplugged or improperly plugged or any unplugged or improperly plugged wells of which the applicant has actual knowledge;
(8) the actual maximum injection rate per day for the injection of CO[2] certified by a licensed engineer or licensed geologist;
(9) a report characterizing the maximum storage facility operating pressure as a function of the fracture gradient of the storage reservoir. The fracture gradient of the storage reservoir shall be determined by a step rate test or calculated by other methods approved by the director and certified by a licensed engineer or licensed geologist. The operating pressure of a CO[2] storage facility shall not be greater than 75 percent of the fracture gradient for the storage reservoir as measured in PSIG;
(10) the calculated maximum surface and bottom hole injection pressure of the CO[2] and water to be injected;
(11) the results of multiple water quality tests of fluid recovered from the CO[2] storage reservoir or reservoirs. The amount of chlorides and total dissolved solids of the fluid in milligrams per liter shall be reported. Water analysis shall be performed by a Kansas certified laboratory. No CO[2] storage shall be permitted in a usable water formation;
(12) a site map showing the boundaries of the CO[2] storage facility, the location and well number of all proposed CO[2] storage wells, including all observation wells, the location of cathodic protection boreholes or ground bed systems, and the location of all pertinent surface facilities within the boundary of the storage facility and within one-fourth mile of the outside of the proposed storage facility boundary. The applicant shall verify this site map;
(13) a statement confirming that the applicant holds the necessary property and mineral rights for construction and operation of the CO[2] storage facility;
(14) a storage facility safety plan. This plan shall include the following:
(A) Emergency response procedures and provisions to provide security against unauthorized entry;
(B) details for the safety procedures concerning residential, commercial, and public land use in the proximity of the storage facility;
(C) details for notifying all residents, commercial businesses, and areas of public use that could be impacted if an emergency occurs;
(D) emergency response procedures and contingency plans for CO[2] storage well leaks;
(E) emergency response procedures and contingency plans for a loss of containment from the CO[2] storage facility;
(F) specific contractors and equipment vendors capable of providing necessary services and equipment to respond to CO[2] storage well leaks or loss of containment from the CO[2] storage facility;
(G) a review of the safety plan with county emergency management, to determine how emergencies will be prevented, prepared for, and responded to;
(H) a schedule for updating county emergency management agencies; and
(I) a monitoring plan to ensure containment of the CO[2] within the CO[2] storage facility boundaries. This shall include monitoring wells to monitor for CO[2] migration vertically and horizontally;
(15) a demonstration of financial responsibility to ensure proper operation and closure of the CO[2] storage facility. The form and amount of financial responsibility shall be approved by the director. Adjustments to the financial responsibility may be required by the director;
(16) any other relevant information that the conservation division requires; and
(17) payment of the application fee required by K.A.R. 82-3-1119.
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