Or. Admin. Code § 632-010-0196

Current through Register Vol. 63, No. 12, December 1, 2024

Section 632-010-0196 - Gas Injection of Oil and Gas Properties

In addition to the requirements of ORS 520.095(1), OAR 632-010-0002 through 632-010-0240 and any other applicable statutes, orders, or rules, wells drilled for the purpose of storing natural gas in an underground reservoir must be drilled in a manner that protects the underground reservoir against contamination and against waste of natural gas.

(1) Application and Approval: After applying for and receiving approval, the permittee of any well or proposed well may inject gas under pressure into the formation containing water, oil or gas for the purpose of increasing production of oil or gas from the reservoir or for storing natural gas.

(2) Casing and Cement: Wells used for the injection of gas into the producing formation must be cased with sound casing so as not to permit leakage, and the casing must be cemented in a manner such that damage will not be caused to oil, gas, or freshwater resources. All injection of gas must be through tubing with a casing packer set at the lower end above the zone of injection, and the annular space between tubing and casing must be monitored to be sure the packer is holding. The requirement for a casing packer may be waived by the department for temporary test injection into a depleted or partially depleted gas pool when an existing well is utilized as the temporary injection well. Prior to temporary injection, the casing must be tested for mechanical integrity to verify that there are no leaks in the casing. The department must be notified of all mechanical integrity tests.

(3) Application, Contents, Notice, Objection, Hearing, and Approval:

(a) No gas may be injected into a well until approved by the department pursuant to application and notice as herein required;

(b) A written request for gas injection of oil and gas properties must be submitted to the department and include the following:

(A) The location of the injection well;

(B) The location and depth of all oil and gas wells and the names of mineral rights owners within a one-half mile radius of the injection well;

(C) The name, description, and depth of the formations from which wells are producing or have produced;

(D) The name, description, and depth of the formations to be injected;

(E) The depths of each formation into which gas is to be injected;

(F) The elevations of the top of the oil- or gas-bearing formation in the injection well and the wells producing from the same formation within one-half mile of the injection well;

(G) The log of the injection well, or similar available information;

(H) Description of the injection well casing;

(I) The estimated amounts to be injected daily and the proposed injection pressure;

(J) An engineering and geological study of the proposed injection site including:

(i) Characteristics of reservoir and caprock, including areal extent, thickness, and lithology;

(ii) Remaining gas or oil reserves of storage zones, including calculations, if applicable;

(iii) If an aquifer is to be injected, known water wells, aquifer extent, thickness, and water quality; and

(iv) Proposed use of monitor wells for the project;

(K) The names and addresses of the permittees; and

(L) Other information the department may require to ascertain whether the gas injection plan meets the requirements of law and does not pose a significant risk to human health or the environment.

(c) Applications may be made to include the use of more than one injection well on the same spacing unit or on more than one spacing unit; and

(d) Applications must be executed by all permittees who are to participate in the proposed gas injection plan.

(4) Notice of Commencement and Discontinuance of Gas Injection.

(a) The permittee must notify the department at least 10 days prior to the commencement of gas injection operations.

(b) Within 10 days after the discontinuance of gas injection operations, the permittee must notify the department of the date of discontinuance and the reasons for the discontinuance.

(c) Before any injection well is decommissioned, the permittee must submit an application to the department per OAR 632-010-0198.

(d) The above notification requirements do not apply to a gas storage facility except for the initial injection and filling of the reservoir and for the decommission of the storage reservoir.

(5) Records: The permittee must keep the following records and make them available to the department:

(a) The amount of gas injected into the injection wells;

(b) The amount of gas produced;

(c) The amount of oil produced from leases affected by the gas injection; and

(d) The well-head injection pressures.

Or. Admin. Code § 632-010-0196

GMI 1, f. 1-27-54; GMI 1-1979, f. & ef. 1-25-79; GMI 1-1982, f. & ef. 6-25-82; GMI 4-1985, f. & ef. 11-20-85; GMI 6-1990, f. & cert. ef. 12-5-90; GMI 2-1995, f. & cert. ef. 3-10-95; GMI 2-1996, f. & cert. ef. 7-10-96; DGMI 1-2013, f. & cert. ef. 3-21-13

Stat. Auth.: ORS 520

Stats. Implemented: ORS 520.095