2 Colo. Code Regs. § 404-1-803

Current through Register Vol. 47, No. 20, October 25, 2024

Section 2 CCR 404-1-803 - APPLICATION REQUIREMENTS FOR CLASS II UNDERGROUND INJECTION CONTROL WELLS

a. Unless otherwise noted in this Rule 803, the requirements of this Rule 803 apply to all new Class II UIC Wells, including disposal Wells, enhanced recovery Wells, Simultaneous Injection Wells, and Commercial Disposal Well Facilities.

b.Related Permitting Requirements.

(1) An Operator will submit an application for a Class II UIC Well at the same time it submits any permit applications required by the Commission's 300 Series Rules, including an Oil and Gas Development Plan, a Form 2A, Oil and Gas Location Assessment, or Form 2, Application for Permit to Drill.

(2) For proposals to convert an existing production Well into an injection Well that would not otherwise require the submission of an Oil and Gas Development Plan or Form 2A, the Operator will:

A. Submit a partial Form 2B, Cumulative Impacts Data Identification documenting the incremental adverse and beneficial impacts of the proposed conversion pursuant to Rules 303.a.(5).B.i, ii, & vi; and

B. If requested by the Director, submit a subset of the information or plans required by Rule 304 necessary to consider the incremental adverse and beneficial impacts of the conversion.

c.Multiple Disposal Well Applications. The Injection Zone radius for disposal Wells will not interfere with the Injection Zone radius of any other disposal Wells. This Rule 803.c will not apply to enhanced recovery floods.

d. Neither construction of nor operation of a Class II UIC Well will occur without the Director's approval of a Form 31, Underground Injection Formation Permit Application, and Form 33, Injection Well Permit Application.

(1)Form 31, Underground Injection Formation Permit Application. A Form 31 permits the Injection Zone and will be approved prior to completing an Injection Zone. A Form 31, Underground Injection Formation Permit Application - Intent, will be approved prior to sampling, Stimulating, and testing the Well(s). A Form 31, Underground Injection Formation Permit Application - Subsequent, will be approved prior to injection.

(2)Form 33, Injection Well Permit Application. A Form 33 permits the injection Well and will be approved prior to completing the Well. A Form 33, Injection Well Permit Application - Intent, will be approved prior to sampling, Stimulating, and testing the Well(s). A Form 33, Underground Injection Formation Permit Application - Subsequent, will be approved prior to injection.

e.Denial of Underground Disposal of Class II Exploration and Production Waste. If the Director determines that a proposed Class II UIC Well is not protective of public health, safety, welfare, applicable Colorado water quality standards, the environment, and wildlife resources, and will not protect against adverse environmental impacts on any air, water, soil, or biological resource resulting from Oil and Gas Operations, the Director will deny the Form 31 and any related Form 33 in writing. Pursuant to Rule 503.g.(10), the Operator may seek the Commission's review of the Director's rejection of a Form 31 and Form 33.

f.Maximum Allowable Injection Rate, Total Volume, and Surface Injection Pressure. The Director will set the maximum allowable injection rate, total volume, and surface injection pressure in the approved Form 31 - Subsequent and Form 33 - Subsequent.

(1) The Operator will perform seismic monitoring if the permitted injection rate for a disposal Well exceeds 10,000 Barrels of water per day. If requested by the Commission or Director, the Operator will perform seismic monitoring as reasonable and necessary for other injected Fluids. A traffic light protocol for seismicity associated with injection activities may be applied as a condition of approval.

(2) Except during hydraulic fracturing, the maximum allowable injection pressure will be set below the fracture gradient of the Injection Zone, as determined by a step-rate injection test in the Class II UIC Well, a step rate injection test in an offset Well completed in the same Injection Zone, or other test acceptable to the Director. The maximum allowable injection pressure will assure that the pressure in the Injection Zone during injection does not initiate new fractures or propagate existing fractures. Until a step-rate injection test is performed, the maximum allowable injection pressure will be set consistent with a formation pressure gradient of 0.6 pounds per square inch ("psi") per total vertical foot from surface to the uppermost injection perforation.

(3) Disposal Wells will initially be permitted for an injection volume based on a 1/4 mile radius from the completed interval in the Injection Zone. The 1/4 mile radius will be measured from the surface location(s) for proposed vertical disposal Well(s), or the completed portion of the wellbore(s) in the Injection Zone in drifted, directional, or horizontal disposal Wells. This Rule 803.f.(3) does not apply to enhanced oil recovery projects.

(4) Operators may submit a Form 4, Sundry Notice, requesting a disposal Well volume increase, such that the radius will increase to an injection volume based on a 1/2 mile radius from the completed interval in the Injection Zone. This Rule 803.f.(4) does not apply to enhanced oil recovery projects.

g.Form 31, Underground Injection Formation Permit Application - Intent. An application for a Class II UIC Well will include the following information:

(1)Operator. The Operator of the Class II UIC Well or the designated Operator of a unitized or cooperative project will execute the application.

(2)Map and List of Addresses. The parties listed in Rules 803.g.(2).A-B will be specifically outlined and identified on a base map, and a related list of addresses will be provided with the application.

A. All Surface Owners:

i. Within 1/2 mile of the surface location(s) for proposed vertical disposal Well(s);

ii. Within 1/2 mile of the completed portion of the wellbore(s) in the Injection Zone in directional, or horizontal disposal Wells; or

iii. If a Field-wide disposal system is proposed, all Surface Owners of record in the Field and within 1/2 mile of the unit or project boundary.

iv. For enhanced recovery projects, a map meeting the requirements of Rule 811.b.(8).

B. All mineral Owners:

i. Of all oil and gas Wells currently producing from the proposed Injection Zone within 1/2 mile of the surface location(s) for proposed vertical disposal Well(s);

ii. Within 1/2 mile of the completed portion of the wellbore(s) in the Injection Zone in drifted, directional, or horizontal disposal Wells; or

iii. For enhanced recovery projects, a map meeting the requirements of Rule 811.b.(8).

(3)Authorization for Surface Use.

A. To construct or recomplete a disposal Well or Simultaneous Injection Well at a surface location, the Operator will provide a Surface Use Agreement, unless the Owner or Operator of the disposal Well or Simultaneous Injection Well is also the Surface Owner.

B. To construct or recomplete an Enhanced Recovery Well at a surface location, the Operator will provide a Surface Use Agreement, a copy of a lease, or a unit operating agreement, unless the Owner or Operator of the Enhanced Recovery Well is also the Surface Owner.

C. For all Class II UIC Wells, Surface Use Agreement(s), leases, or unit operating agreements will state explicitly that the injected Fluids may contain E&P Waste from Oil and Gas Operations.

(4)Surface Facility Diagram and Process Flow Diagram. A diagram of the surface facility showing all Pipelines and Tanks associated with the system and a process flow diagram.

(5)Proposed Injection Program. The application will include a proposed injection program with the following:

A. An overall summary of the proposed injection program.

B.Geologic Formation Summary. A geologic formation summary for all Wells being converted to injection and all new injection Wells. For a new injection Well, the application may reference any available geophysical logging data from offset Well(s) within 1 mile of the proposed injection Well to estimate formation depths and thickness. Where there is limited available data from the local basin below the target formations, the Operator will provide a best estimate to the depth of the Precambrian basement. The geologic formation summary may consist of a stratigraphic chart starting from the surface, down to the proposed total depth of the Well, that includes the geologic formations present, along with the names, descriptions, depths, and thickness from the surface to the top of Precambrian basement of the following:

i. The formations which will receive any Fluids to be injected or zones that have already received injected Fluids;

ii. The overlying and underlying Confining Layers capable of limiting the movement of any Fluids to be injected;

iii. The formations from which oil and gas Wells are producing or have produced; and

iv. All Underground Sources of Drinking Water.

C.Injected Water Analysis. Laboratory analytical results from a representative water sample collected from the Fluid to be injected, addressing all analytes listed in and following all procedures required by Rules 909.j.(1)-(5). For an injection Well intended to serve production Wells not yet completed, the applicant may submit other available data regarding the expected quality of the Fluid to be injected. Within 90 days after the date of first production of a production Well that will send Fluids to the injection Well, the applicant will submit a laboratory analysis of a representative sample collected from the fluid to be injected.

D.Injection Zone Analysis. Laboratory analytical results from a representative water sample collected from the Injection Zone, addressing all analytes listed in and following all procedures required by Rules 909.j.(1)-(5). If the total dissolved solids of the Injection Zone is determined to be less than 10,000 mg/l, the Operator will seek a UIC Aquifer exemption pursuant to Rule 802. The Operator will evaluate disposal zones for hydrocarbon potential pursuant to Rule 408.q. For a new Class II UIC Well, the Applicant may provide any available representative water analysis from offset Well(s) completed in the same Injection Zone within 1 mile of the proposed injection Well for submission with a Form 31 - Intent. The Operator will submit a water analysis from the Injection Zone, collected from the disposal Well(s) in the application with the Form 31 - Subsequent after the Well(s) are completed.

E. A description of the compatibility of the injection Fluid with the Injection Zone.

F. A description of the source(s) of the Fluid and a description of the transport method from the source(s) to the injection Well(s).

G. A general description of the surface facilities, separation, and treatment processes.

H. The estimated volume to be injected daily.

I. The anticipated injection pressures and known or calculated fracture gradient.

(6)Seismicity Evaluation. The application will include a seismicity evaluation with the following information:

A. A geological and geophysical evaluation of known transmissive or sealing faults or shear zones within 12 miles of the proposed Class II UIC Well and the potential for induced seismicity during injection operations;

B. An exhibit of the historical seismic activity within 12 miles of the proposed injection Well;

C. An exhibit showing the potential for seismic activity within 12 miles of the proposed injection Well; and

D. A wellbore diagram of the Injection Zone depicting the Well's bottomhole location relative to the Precambrian basement.

(7)Oil and Gas Well Map and List.

A. The application will include a base map covering the area within 1 mile, as measured from the surface location(s) for proposed vertical disposal Well(s), or within 1 mile of the completed portion of the wellbore(s), projected to surface in plan view in the Injection Zone in drifted, directional, or horizontal disposal Wells. The base map will show the proposed injection wellbore(s), wellbore path(s), and all oil and gas Wells within a 1 mile radius of the injection wellbore(s). Labels on the map will identify all oil and gas Wells within 1 mile of the proposed injection wellbore(s) that are producing from the proposed Injection Zone at the time of the application.

B. For enhanced recovery projects, a map meeting the requirements of Rule 811.b.(8).

C. A list will provide additional details for all oil and gas Wells shown on the oil and gas Well map and their total depth, completed interval depths, completed formation names, and producing or injecting status at the time of application.

(8)Water Wells Map and List. The application will include a map and list of all water wells registered with the Division of Water Resources, within 1 mile of the proposed Class II UIC Well(s), including their location and depth.

(9)Area of Review. The application will include a review of all offset oil and gas Wells within 1/2 mile of proposed injection wellbore(s), describing existing isolation of Injection Zones, oil and gas production formations, Confining Layers, and Underground Sources of Drinking Water.

(10)Remedial Corrective Action Plan. The Applicant will include a remedial corrective action plan for any offset Well(s) within 1/4 mile of the proposed injection wellbore(s) in which the Injection Zone is not adequately plugged or otherwise isolated with cement to prevent flow into the offset Well(s). The remedial corrective action plan will describe the Applicant's plan for performance of any such remedial work to plug, re-plug, or provide remedial cement for the offset Wells, which the Applicant may or may not operate.

A. For a volume increase request pursuant to Rule 803.f.(1).C, the Applicant will provide a remedial corrective action plan for offset Wells within 1/2 mile of the proposed injection wellbore(s).

B. This Rule 803.g.(10) does not apply to enhanced oil recovery projects where an offset production Well is part of the enhanced oil recovery project.

(11)Stimulation Program. The application will include a summary of any proposed stimulation program.

(12)Disposal Formation Hydrocarbon Evaluation. For disposal Wells, the application will include the Operator's proposed method of evaluating hydrocarbon production potential of the proposed Injection Zone. This Rule 803.g.(12) will not apply to enhanced recovery wells.

(13)Class II Waste Source List. The application will include a listing of all potential sources of Class II E&P Waste to be injected on a Form 26, Source of Produced Water for Disposal, and Form 14A, Authorization of Source of Class II Waste for Disposal, as applicable.

(14)Notice of Application. A notice of application for an injection Well will be given by the Applicant by registered or certified mail or by personal delivery to the persons listed below. The application will include a certificate of service demonstrating that the Applicant served a copy of the application on all persons entitled to notice pursuant to the Commission's Rules. The certificate of service will include the names and addresses of those persons the Applicant notified, and the Applicant will certify that notice was given by registered or certified mail, or by personal delivery. The Applicant will provide notice to:

A. Surface Owners and mineral Owners with recorded ownership interests within 1/2 mile of the surface location of the proposed Class II UIC Well(s), the Relevant Local Government in which the injection Well(s) are located and any Local Government with land use authority within 1/2 mile of the surface location(s) for proposed vertical Well(s), or within 1/2 mile of the completed portion of the wellbore(s), projected to surface in plan view in the Injection Zone in drifted, directional, or Horizontal Wells.

B. For a volume increase request pursuant to Rule 803.f.(3), all persons and entities listed in Rule 803.g.(14).A within a 3/4 mile radius of the proposed injection wellbore(s).

C.Disposal Wells and Simultaneous Injection Wells. Owners and Operators of oil and gas Wells producing from the Injection Zone and the recorded mineral Owner of the Injection Zone within 1/2 mile of the surface location(s) for proposed vertical disposal Well(s), or within 1/2 mile of the completed portion of the wellbore(s), projected to surface in plan view in the Injection Zone in drifted, directional, or horizontal disposal Wells, and to mineral Owners of Cornering and Contiguous Units where injection will occur into the producing zones, whichever is the greater distance.

D.Enhanced Recovery Wells. If injection of Fluids is proposed for an enhanced recovery project, the Applicant will provide an entire copy of the application, by registered or certified mail or by personal delivery, to each mineral Owner of record of the reservoir involved within the unit and within 1/2 mile of the proposed unit boundary.

(15)Notice of Application Requirements. The notice of application will briefly describe the injection application and include legal location, proposed Injection Zone(s), depth of injection, and other relevant information.

A. The notice will specifically state that pursuant to Rule 507.a, any person who may be directly and adversely affected or aggrieved by the authorization of the underground injection into the proposed Injection Zone is entitled to file, within 30 days of notification, a written request for a public hearing before the Commission, provided such request meets the petition requirements specified in Rule 804.b.

B. The notice will state that additional information about the operation of the proposed Class II UIC Well may be obtained at the Commission's office and on the Commission's website. The notice will provide the appropriate Commission Staff contact information.

C. A copy of the notice of application will be included with the Form 31 - Intent filed with the Commission.

h.Form 31, Underground Injection Formation Permit Application - Subsequent. Within 30 days of a successful mechanical integrity test for a Class II UIC Well, the Operator will file a Form 31 - Subsequent, which will include the following information:

(1)Injection Zone Water Analysis. A water analysis from the Injection Zone, collected from the Class II UIC Well(s) in the application, addressing all analytes listed in and following all procedures required by Rules 909.j.(1)-(5).

(2)Geophysical Logs. Openhole resistivity and neutron/density Logs from the bottom of the surface casing to total depth of the Class II UIC Well, unless otherwise specified as a condition of approval on the Form 31 - Intent for the injection Well.

(3)Step Rate or Injectivity Test Documentation. If the Operator performs a step rate test or injectivity test, the Operator will submit the test results.

(4)Disposal Well Hydrocarbon Evaluation Results. Summary of the Operator's evaluation of Productivity Test results in the Injection Zone. This Rule 803.h.(4) will not apply to enhanced recovery wells.

i.Form 33, Injection Well Permit Application - Intent. The Operator will file a Form 33 - Intent, which will include the following information:

(1)Wellbore Diagram. An existing and proposed schematic drawing showing all casing strings with cement volumes and tops, plug back total depth, isolation devices, remedial cement work, depth of any existing open or squeezed perforations, setting depths of any existing or proposed bridge plugs, formation tops, planned perforations in the Injection Zone, tubing and packer size, and setting depth.

(2)Casing and Cementing Plan. The application will include a proposed casing and cement plan for the injection Well meets the requirements of Rule 308.b.(6). This will include any previous and proposed remedial cement work.

(3)Casing Integrity. For existing Wells proposed for conversion to a Class II UIC Well, the Operator will check the condition of the casing with a pipe analysis Log or a caliper Log and include a copy of the Log with the application.

j.Form 33, Injection Well Permit Application - Subsequent. After a Class II UIC Well is completed, recompleted, or after Injection Zones are temporarily abandoned, the Operator will file a Form 33 - Subsequent.

(1) The Form 33 - Subsequent will include the following as-constructed details:

A.Wellbore Diagram. A final schematic drawing showing all casing strings with cement volumes and tops, plug back total depth, isolation devices, depth of any existing open or squeezed perforations, setting depths of any bridge plugs, formation tops, perforations in the Injection Zone, tubing and packer size, and setting depths.

B.Casing and Cementing. Documentation of the final casing and cement in the Class II UIC Well, any existing remedial cement confirmed during the work, and remedial cement placed during the work.

C.Cement Bond Log. Unless already provided to the Commission, to determine if the cement has been placed to adequately isolate the Injection Zone, production zones, and Groundwater, a cement bond or other cement evaluation Log will be run and provided with this report as a means of verifying cementing records.

(2)Mechanical Integrity Testing Requirement. Prior to application approval, the proposed Class II UIC Well will satisfactorily pass a mechanical integrity test pursuant to Rule 417 and be witnessed by the Director.

k.Injection Application Deadlines. After a Form 31 - Intent and any related Form 33 - Intents have been approved, the Operator will submit all of the data or information necessary to approve the Form 31 - Subsequent or any related Form 33 - Subsequents within 6 months, or the application for a Form 31 - Subsequent or any related Form 33 - Subsequents will be withdrawn from consideration. However, for good cause shown, a 90-day extension may be granted, if requested in writing to the Director on a Form 4 prior to the date of expiration.

l.Notice of Commencement. Within 30 days after the commencement of injection operations, the Operator will submit a Form 5A, Completed Interval Report, to notify the Commission of the injection date.

m.Notice of Discontinuance. Within 10 days after the discontinuance of injection operations, the Operator will submit a Form 4 to notify the Commission of the date of such discontinuance, the reasons for the discontinuance, and the Operator's future plans for the Class II UIC Well. An Operator need not submit a notice of discontinuance for status changes to or from injection to production in enhanced recovery projects, and instead should submit a notice of status change pursuant to Rule 811.d.

n. Before plugging any Class II UIC Well, the Owner of the Well will provide notice to the Commission and will follow the same procedures for plugging a Class II UIC Well as the procedures for plugging oil and gas Wells pursuant to Rule 434.a.

2 CCR 404-1-803

37 CR 16, August 25, 2014, effective 9/30/2014

38 CR 01, January 10, 2015, effective 2/14/2015

38 CR 03, February 10, 2015, effective 3/2/2015

38 CR 07, April 10, 2015, effective 4/30/2015

38 CR 16, August 25, 2015, effective 9/14/2015

39 CR 04, February 25, 2016, effective 3/16/2016

41 CR 05, March 10, 2018, effective 4/1/2018

41 CR 06, March 25, 2018, effective 5/1/2018

41 CR 23, December 10, 2018, effective 12/30/2018

42 CR 02, January 25, 2019, effective 2/14/2019

42 CR 17, September 10, 2019, effective 9/30/2019

42 CR 24, December 25, 2019, effective 1/14/2020

43 CR 17, September 10, 2020, effective 9/30/2020

43 CR 13, July 10, 2020, effective 11/2/2020

43 CR 24, December 25, 2020, effective 1/15/2021

45 CR 07, April 10, 2022, effective 4/30/2022

45 CR 09, May 10, 2022, effective 5/30/2022

45 CR 13, July 10, 2022, effective 7/30/2022