Kan. Admin. Regs. § 28-45a-9

Current through Register Vol. 44, No. 2, January 9, 2025

Section 28-45a-9 - Financial assurance for underground natural gas storage facility closure

(a) Each permittee of an underground natural gas storage facility shall establish financial assurance for the following:

(1) Closure of the facility; and

(2) the plugging of any underground natural gas storage well.

(b) Each permittee of an existing underground natural gas storage well and each applicant for a permit for a new underground natural gas storage well shall submit proof of financial assurance with the permit application and, thereafter, annually on or before January 31 of each year. The following requirements shall apply:

(1) Each permittee and each applicant shall submit a detailed written estimate, in current dollars, of the cost to close all underground natural gas storage wells and storage caverns at the facility with closure procedures specified in K.A.R. 28-45a-18. The estimate shall be reviewed and approved by a professional engineer or licensed geologist.

(2) Each permittee and each applicant shall develop an estimate of the closure cost for all underground natural gas storage wells and storage caverns at the facility based on the cost charged by a third party to plug the underground natural gas storage wells.

(3) Each permittee shall increase the closure cost estimate and the amount of financial assurance provided if any change in the facility operation or closure plan increases the maximum cost of closure at any time.

(c) Each permittee shall provide continuous financial assurance coverage for closure until the secretary approves the facility closure.

(d) Each permittee and each applicant shall comply with the provisions of the department's document titled "procedure for demonstrating financial assurance for an underground natural gas storage well, procedure #: UICLPG-7," dated March 2003, which is hereby adopted by reference.

Kan. Admin. Regs. § 28-45a-9

Authorized by and implementing K.S.A. 2002 Supp. 55-1,117; effective, T-28-4-1-03, April 1, 2003; effective Aug. 8, 2003.