N.M. Admin. Code § 19.11.2.10

Current through Register Vol. 35, No. 21, November 5, 2024

Section 19.11.2.10 - APPLICATION TO DRILL, MODIFY OR OPERATE WELLS OR FACILITIES IN A GEOTHERMAL RESOURCE

A.Application for a permit to drill an exploratory well or to drill or operate a production or observation well. Any person who proposes to drill or operate an exploratory, production or observation well shall first apply for a permit by filing a written application with the division. The applicant shall submit two paper copies and one electronic copy of the application. The applicant shall submit the information listed below in the application:

(1) name and contact information of the owner or operator of the well and the drilling contractor and whether the owner or operator is a corporation, partnership, single proprietorship, association or other business entity and the names of the applicant's officers and directors;

(2) name and contact information of the applicant's registered agent;

(3) location of the proposed or existing well (UTM coordinates or latitude-longitude) and a map showing location and distances to property lines;

(4) estimated or actual (if existing) top of well-elevation;

(5) name and contact information of the surface land owner;

(6) signature of a responsible official or designated agent of the applicant;

(7) name and contact information of the geothermal resource owner and documentation such as deeds, leases, permits or other documentation showing applicant has the authority or right to produce the geothermal resource;

(8) for production wells, actual (when available) or estimated data regarding the physical characteristics of the geothermal resource including volume, temperature, permeability, thermal capacity and water quality of both the geothermal resource waters and any fresh water resources in the proposed drilling area;

(9) whether the applicant proposes to reinject all ground water as soon as practicable into the same ground water source from which it was diverted, resulting in no new depletion to the source and information regarding the proposed diversion and reinjection;

(10) a map and accompanying list showing the names, addresses and locations of adjacent landowners within one-half mile of the proposed geothermal well or facility; the location of water wells within one mile of the proposed geothermal well or facility; the names, addresses and locations of any geothermal resource owners or lessees currently owning or leasing a geothermal resource within five miles of the proposed geothermal well or facility; and the names, addresses and locations of any local, state, federal or tribal government property within five miles of the proposed geothermal well or facility;

(11) a statement of the purpose and estimated or actual (if existing) depth of the well;

(12) for production wells, the proposed production rate of geothermal resource waters;

(13) a description of the geothermal well construction, BOPE and the drilling rig;

(14) a description of the logging, coring and testing program;

(15) plans for providing financial assurance prior to permit issuance pursuant to 19.11.2.18 NMAC;

(16) pit information pursuant to 19.11.4.17 NMAC;

(17) methods for disposal of geothermal resources, residue of geothermal resources or nondomestic waste from the exploration, development or production of geothermal resources pursuant to 19.11.4.20 NMAC;

(18) a geothermal well plugging and abandonment plan, including a responsible third-party contractor's cost estimate, sufficient to plug and abandon the wells in a manner that will protect life, health, property, natural resources, the environment and the public welfare, and comply with the requirements contained in 19.11.4.16 NMAC;

(19) a statement of whether the applicant or any subsidiary, affiliate or person controlled by or under common control with the applicant

(a) has had a federal or state UIC or geothermal drilling or operating permit suspended or revoked in the five years preceding the date of the application's submission; or

(b) has forfeited a performance bond or similar security deposited in lieu of bond; and

(c) a brief explanation of the facts involved if any such suspension, revocation or forfeiture referred to in Subparagraphs (a) and (b) of Paragraph (19) of Subsection A of 19.11.2.10 NMAC has occurred, including:

(i) the permit's identification number and issuance date, and the date and amount of bond or similar security involved;

(ii) identification of the authority that suspended or revoked the permit or forfeited the bond or similar security and the stated reasons for the action;

(iii) the status of the permit, bond or other security involved;

(iv) the date, location and type of any administrative or judicial proceedings initiated concerning the suspension, revocation or forfeiture; and

(v) the proceeding's status; and

(20) a listing of all violation notices the applicant has received relating to any UIC or geothermal drilling or operation during the three-year period before the application date; for each violation notice reported include the following information as applicable:

(a) any identifying number for the operation including the federal or state permit number, the violation notice's issuance date, the name of the person or entity to whom the violation notice was issued and the name of the issuing regulatory authority, department or agency;

(b) a brief description of the violation alleged in the notice;

(c) the date, location and type of any administrative or judicial proceedings initiated concerning the violation, including proceedings initiated by any person or entity to obtain administrative or judicial review of the violation;

(d) the status of the proceedings and of the violation notice; and

(e) the actions, if any, taken by any person identified in Paragraph (20) of Subsection A of 19.11.2.10 NMAC to abate the violation.

B.Application for permit to drill or operate an injection well. Any person who proposes to drill or operate an injection well shall first apply for a permit by filing a written application with the division. The applicant shall submit two paper copies and one electronic copy of the application. The items listed below along with the items listed in Subsection A of 19.11.2.10 NMAC are required:

(1) a description of the well construction, or proposed well construction, and the proposed method for testing the well before the well is used for injection;

(2) the estimated maximum injection pressure, mass flowrate and temperature;

(3) an analysis of the proposed injection fluid; and

(4) a description of the proposed pipelines, metering equipment and safety devices that will be used to prevent accidental pollution.

C.Application for a geothermal facility with multiple geothermal wells. Any person who proposes to drill or operate multiple geothermal wells and operate a geothermal facility on an applicant's geothermal lease shall apply for a multi-well geothermal facility permit. The applicant shall submit two paper copies and one electronic copy of the application. The items listed below along with the items listed in Subsections A and B of 19.11.2.10 NMAC are required:

(1) a description of surface equipment and site plan, with proposed topography, of the power generating facility and associated well field with proposed and existing wells identified; and

(2) a facility closure plan, including a responsible third-party contractor's cost estimate, sufficient to close the facility in a manner that will protect life, health, property, natural resources, the environment and the public welfare, and comply with the closure requirements contained in 19.11.4 NMAC.

D.Application to modify or renew a permit. Any permittee who proposes to modify an individual geothermal well permit or a geothermal facility permit or renew an existing permit (individual or facility) shall first apply for a permit modification or permit renewal by filing a written application with the division. The permittee shall file an application to renew a permit one year prior to the expiration date of the current permit. All applications to modify or renew a permit shall follow the applicable requirements listed in Subsections A, B or C of 19.11.2.10 NMAC unless the modification is a minor permit modification or is approved under the permittee's notification requirements and requests for approval to division conditions listed in 19.11.4.9 NMAC. A minor permit modification includes:

(1) change in owner of the geothermal lease or geothermal interest;

(2) change in well name;

(3) change in previously proposed location of a well that is within the approved area of a geothermal well or facility permit;

(4) change in status of an injection well to another type of well;

(5) changing the construction of an injection well, including placing a plug in the hole or well and recovering or altering the casing;

(6) adding wells to a geothermal facility permit that have been approved previously per Subsections A or B of 19.11.2.10 NMAC;

(7) creation of a geothermal facility permit that includes only wells and equipment permitted previously under 19.11.2 NMAC;

(8) permitting of equipment that has been permitted or approved prior to the promulgation of 19.11.2 NMAC; the permittee may, upon promulgation of 19.11.2 NMAC, apply to permit all currently operating and previously approved geothermal wells and facilities under 19.11.1 through 19.11.4 NMAC pursuant to the minor permit modification procedures in Subsection E of 19.11.2.10 NMAC; and

(9) for an injection well permit or for that portion of a geothermal facility permit that pertains to injection wells, a modification listed under 40 CFR 144.41.

E.Notification of application for minor permit modification or activity taken pursuant to 19.11.4.9 NMAC. When requesting approval of a minor permit modification or prior to taking an action listed in Paragraph (3) of Subsection A or Paragraphs (3), (6), (8) or (10) of Subsection B of 19.11.4.9 NMAC, the permittee shall provide written notification to tshe adjacent surface owners within one-half mile, water rights owners with a well that is within one mile and any geothermal resource owners or lessees within five miles of the geothermal well or facility.

F.Application for a minor permit modification. Any permittee who proposes a minor permit modification shall submit a written request, to the division, that fully explains the proposed modification and all information required to implement the requested change. The permittee may apply for approval of the activity listed in Paragraph (3) of Subsection D of 19.11.2.10 NMAC up to 30 days after the action.

G.Pre-application meeting. Any person who proposes to submit a permit application to the division may request a pre-application meeting with division staff.

H.Transfer of a permit.

(1) The permittee shall not transfer a permit without the division's prior written approval. If the transferee wants to change the conditions of the original permit, it shall apply for a new permit pursuant to 19.11.2.10 NMAC. Unless the division otherwise orders, public notice or hearing are not required for the division to approve a transfer request. If the division denies the transfer request, it shall notify the permittee and the proposed transferee of the denial by certified mail, return receipt requested and either the permittee or the proposed transferee may request a hearing within 10 days after receipt of the notice. Until the division approves the transfer and the required financial assurance is in place, the division shall not release the transferor's financial assurance.

(2) If the transferee will conduct operations in full compliance with the terms and conditions of the original permit, the transferee shall provide the division with the following information:

(a) name and contact information of the owner or operator of the well or facility and a statement as to whether the applicant is a corporation, partnership, single proprietorship, association or other business entity and the names of the transferee's officers and directors;

(b) name and contact information of the transferee's registered agent;

(c) the signature of a responsible official or designated agent of the transferee on the transfer request;

(d) proof that the transfer complies with the terms of any deed, lease or permit;

(e) a statement that the transferee will continue to conduct the operations involved in full compliance with the terms and conditions of the original permit, unless the transferee applies for a new permit; and

(f) plans for providing sufficient financial assurance to cover the original permit in its entirety from inception to completion of plugging and abandonment prior to the transfer.

(3) Nothing in 19.11.2 NMAC shall be construed to relieve any person of responsibility or liability for any act or omission that occurred while that person owned, controlled or was in possession of the well or facility.

N.M. Admin. Code § 19.11.2.10

Adopted by New Mexico Register, Volume XXIX, Issue 04, February 27, 2018, eff. 2/27/2018