Tenn. Comp. R. & Regs. 0400-45-06-.11

Current through October 22, 2024

Section 0400-45-06-.11 - CLASS II WELLS

A permit must be obtained from the Commissioner prior to the operation of any Class II injection well except for existing Class II enhanced recovery wells and hydrocarbon storage wells. This requirement is in addition to and separate from any approval or regulatory procedure required by the Tennessee Oil and Gas Board, Department of Environment and Conservation.

(1) Permit Applications

(a) For Class II wells, the Commissioner shall require an applicant to furnish a demonstration of commercial producibility which shall be made as follows:

1. For a Class II well to be used for enhanced oil recovery processes in a field or project containing aquifers from which hydrocarbons were previously produced , commercial producibility shall be presumed by the Commissioner upon evidence that production has occurred in the project area or field.

2. For Class II wells not located in a field or project from which hydrocarbons were previously produced, information such as logs, core data, formation description, formation depth, formation thickness, and formation parameters such as permeability and porosity shall be considered by the Commissioner to the extent such information is available.

(b) Permit applications for Class II wells shall be submitted by the applicant using the appropriate permit application form promulgated by the Department and shall contain any attachments necessary to provide:

1. facility name and location;

2. name and address of legal contacts (agents of process);

3. ownership of facility, including address;

4. a map and a tabulation of data as required by part (3)(b)1 of Rule 0400-45-06-.10.

5. a description of the proposed injection system including type and construction of injection wells, nature of injected fluid and any proposed pretreatment;

6. a statement of estimated daily volume of fluid to be injected and maximum injection pressure;

7. appropriate logs of the well with the proposed injection zone marked, in the case of a well already drilled, or; in the case of undrilled wells a statement of the proposed zone to be used for disposal and the approximate depth of said zone;

8. a schematic diagram of the proposed Class II well showing the casing and cementing program together with an explanation thereof; and

9. a statement by the applicant that the proposed Class II well(s) will be completed in such a manner to insure that the injected substances are injected into the proposed injection zone and that provisions have been made for adequate protection of formation(s) containing USDWs and any other zone of commercial value.

10. proposed formation testing program to obtain the information required by subparagraph (5)(b) of this rule.

11. proposed stimulation program.

12. proposed injection procedure.

13. proposed contingency plans, if any, to address well failures so as to prevent migration of contaminating fluids into a USDW.

14. plans for meeting the monitoring requirements of paragraph (6) of this rule.

(c) Reserved

(d) Additional requirements for Class II enhanced recovery wells Applications for Class II enhanced recovery wells must include a description of the reservoir to be enhanced and a state statement relative to the necessity for the use of wells to enhance production of oil or natural gas.

(e) Additional Requirements for Class II Hydrocarbon Storage Wells Applications for Class II hydrocarbon storage wells must include the following:

1. a map showing the known areal extent of the reservoir to be used for storage and the location of all wells or test holes known to extend into or through the proposed reservoir.

2. a series of maps and geologic cross-sections showing the known subsurface position and structure of the reservoir, the nature of the horizontal and vertical boundaries of the reservoir, and the thickness of the reservoir.

3. a tabulation of the type, construction, depth and current condition of each well or test hole located within the area covered by the reservoir map required in part 1 of this subparagraph.

4. a description of the procedures to be used to plug or work over existing wells or test holes to prevent migration of injected substances into any aquifer other than the proposed storage reservoir.

5. a description of the method, procedures and devices for testing the integrity of the proposed reservoir to contain the injected substances within the bounds of the reservoir.

(f) The Commissioner may issue a permit on an area basis rather than for each Class II well individually provided that the injection wells are:

1. described and identified by location in permit application(s) if they are existing wells, except that the Commissioner may accept a single description of wells with substantially the same characteristics;

2. within the same well field, facility site, reservoir, project, or similar unit in the same State;

3. operated by a single owner or operator; and

4. used to inject other than hazardous waste.

(g) Area permits shall specify:

1. the area within which underground injections are authorized; and

2. the requirements for construction, monitoring, reporting, operation, and abandonment, for all wells authorized by the permit.

(h) The area permit may authorize the permittee to construct and operate, convert, or plug and abandon wells within the permit area provided:

1. the permittee notifies the Commissioner at such time as the permit requires; .

2. the additional well satisfies the criteria in subparagraph (f) of this paragraph and meets the requirements specified in the permit under subparagraph (g) of this paragraph; and

3. the cumulative effects of drilling and operation of additional injection wells are considered by the Commissioner during evaluation of the area permit application and are acceptable to the Commissioner.

(i) If the Commissioner determines that any well constructed under an area permit does not satisfy any of the requirements of this paragraph, the Commissioner may modify the permit, terminate, or take enforcement action. If the Commissioner determines that cumulative effects of additional wells are unacceptable, the permit may be modified or revoked.

(2) Construction of Class II Wells

(a) All Class II wells shall be cased and cemented to prevent the movement of fluids into or between USDWs and to maintain the quality of aquifers above the injection zone that may be used for monitoring or other purposes.

(b) All Class II wells shall be designed and constructed in such a fashion that they inject into a formation which is beneath the lower-most formation(s) containing USDWs. Class II wells shall be sited in such a fashion that they inject into a formation which is separated from any formation(s) containing USDWs by a confining zone that is free of known open faults or fractures within the area of review.

(c) In the design specifications for Class II wells, the applicant shall address the problem of corrosion, proposed protective measure(s), and if appropriate, proposed methods of monitoring the extent of corrosion subject to Commissioner approval. The applicant shall consider thickness and type of cement, number and thickness of casings, casing material, casing coatings, native fluid quality, injection fluid quality and life expectancy of the well.

(d) Class II wells shall inject fluids through tubing with a packer set immediately above the injection zone, or tubing with an approved fluid seal as an alternative. The tubing, packer, and fluid seal shall be designed for the expected service.

1. The use of other alternatives may be allowed with the written approval of the Commissioner and if the Commissioner receives authority from U.S. E.P.A. for an underground injection control program, the EPA Administrator or his designee. To obtain approval, the applicant shall submit a written request to the Commissioner, which shall set forth the proposed alternative and all technical data supporting its use. The Commissioner will approve the request if the alternative method is deemed capable of providing a comparable level of protection to USDWs.

2. In determining and specifying requirements for tubing, packer, or alternatives, the following factors shall be considered:

(i) depth of setting;

(ii) characteristics of injection fluid (chemical content and corrosiveness);

(iii) injection rate and pressure;

(iv) annular pressure; .

(v) temperature, volume, viscosity, and density of injected fluid; and

(vi) type and size of casing.

(e) Commissioner approval is required prior to any remedial procedures that alter the basic design specifications, materials, or character of the well.

(3) Casings

(a) The casings used in the construction of each newly drilled Class II well shall be designed for the life expectancy of the well.

(b) The number, thickness, type of materials, and length of casing shall be sufficient to protect the quality of drinking water resources and the integrity of the well and the confining strata.

(c) Exact setting depths for all casings shall be determined in the field, based on all available information, and subject to the Commissioner's approval.

(4) Cementing

(a) The cementitious material used in the construction of each newly drilled well shall be designed for the life expectancy of the well. In determining and specifying casing and cementing requirements, the following factors shall be considered:

1. depth to the injection zone;

2. depth to the bottom of all formation(s) containing USDWs;

3. injection pressure and external loading;

4. hole size;

5. size and grade of all casing strings (wall thickness, diameter, nominal weight, length, joint specification and construction material);

6. corrosiveness of injected fluid, formation fluids, and temperatures;

7. lithology of injection and confining zones; and

8. type or grade of cementitious material.

(b) In addition, the Commissioner may consider the following factors:

1. nature of formation fluids, and

2. external pressures, internal pressure and axial loading.

(c) Cementitious material must be compatible with the injected fluid, native fluids, and the formation.

(d) Use of the cementitious materials used for mixing shall be determined by the applicant, provided the integrity, containment, corrosion protection, and structural strength of the cement are not significantly affected. Accurate records shall be kept and recorded of all additives used.

(e) Prior to cementing, the hole shall be conditioned in such a way as to optimize bonding of the cement to the casing and formation, and to prevent channeling.

(f) Placement of cementitious material shall be in such a manner that the purposed and characteristics of the cement are retained, and shall be subject to Commissioner approval.

(g) The applicant shall submit his cement testing program with the permit application for Commissioner approval. The purpose of the cement testing program is to insure that the cement seal is adequate to prevent migration of fluids in channels, microannular space, or voids in the cement. The following methods of testing, as a minimum, shall be considered:

1. pressure testing of casing - to not less than 1.5 times the expected injection pressure;

2. temperature log; and

3. cement bond log.

(5) Testing for Class II Wells

(a) Appropriate logs and other tests shall be conducted during the drilling and construction of new Class II wells. A descriptive report interpreting the results of that portion of those logs and tests which specifically relate to (1) a USDW and the confining zone adjacent to it, and (2) the injection zone and adjacent formations shall be prepared by a knowledgeable log analyst and submitted to the Commissioner. At a minimum, these logs and tests shall include:

1. Deviation checks on all holes constructed by first drilling a pilot hole and then enlarging the pilot hole, by reaming or another method. Such checks shall be at sufficiently frequent intervals to assure that vertical avenues for fluid movement in the form of diverging holes are not created during drilling.

2. Such other logs and tests as may be needed after taking into account the availability of similar data in the area of the drilling site, the construction plan, and the need for additional information that may arise from time to time as the construction of the well progresses. In determining which logs and tests shall be required, the following shall be considered by the Commissioner in setting logging and testing requirements:

(i) For surface casing intended to protect USDWs in areas where the lithology has not been determined:

(I) electric and caliper logs before casing is installed; and

(II) a cement bond, temperature, or density log after the casing is set and cemented.

(ii) For intermediate and long strings of casing intended to facilitate injection:

(I) electric, porosity and gamma ray logs before the casing is installed;

(II) fracture finder logs; and

(III) a cement bond, temperature, or density log after the casing is set and cemented.

(b) At a minimum, the following information concerning the injection formation shall be determined or calculated for new Class II wells or projects:

1. fluid pressure;

2. estimated fracture pressure; and

3. physical and chemical characteristics of the injection zone.

(c) Prior to commencement of injection, wells shall be tested to assure the initial integrity of the casing, tubing and packer, if used, including pressure testing of the casing-tubing annulus.

(d) At least once every five years thereafter, injection wells shall be tested to assure their continued mechanical integrity. The results of these tests shall be reported to the Commissioner. Tests demonstrating continued mechanical integrity shall include the following:

1. measurement of annular pressures in wells injecting at positive pressures under a packer or a balanced-fluid seal;

2. pressure testing of the casing-tubing annulus for wells injecting under vacuum conditions; and

3. such other tests which are demonstrably effective and which may be approved for use by the Commissioner.

(e) Notwithstanding the test procedures of subparagraph (d) of this paragraph, the Commissioner may require more comprehensive testing of the injection wells when deemed advisable, including the use of tracer surveys, noise logs, temperature logs, or other test procedures or devices.

(f) The Commissioner may order special tests to be conducted prior to the expiration of five years if conditions are believed to so warrant. Any such special test which demonstrates continued mechanical integrity of a well shall be considered the equivalent of an initial test for test scheduling purposes, and the regular five-year testing schedule shall be applicable thereafter.

(g) The injection well operator shall advise the Commissioner of the date and the time that initial, a five-year, or special tests are to commence in order that such tests may be witnessed.

(h) Injection pressure at the wellhead shall not exceed a maximum which shall be calculated so as to assure that the pressure during injection does not initiate new fractures or propagate existing fractures in the confining zone adjacent to USDWs. In no case shall injection pressure cause the movement of injection or formation fluids into USDWs.

(i) Injection between the outermost casing protecting USDWs and the well bore is prohibited.

(6) Monitoring requirements

(a) Class II wells shall be so equipped that the flow rate, injection pressure and annular pressure can be determined at any time for each well.

(b) The permittee shall monitor the nature of injected fluids at time intervals sufficiently frequently to yield data representative of their characteristics;

(c) The permittee shall make observation of injection pressure, flow rate, and cumulative volume at least daily.

(d) The results of all monitoring shall be maintained by the operator and made available to the Commissioner upon request.

(e) The Commissioner may grant administrative exception to the requirement set forth in subparagraph (c) of this paragraph.

(f) Hydrocarbon storage and enhanced recovery may be monitored on a field or project basis rather than on an individual well basis by manifold monitoring. Manifold monitoring may be used in cases of facilities consisting of more than one injection well, operating with a common manifold. Separate monitoring systems for each well are not required provided the owner/operator demonstrates that manifold monitoring is comparable to individual well monitoring.

(g) Monitoring requirements shall, at a minimum, include:

1. Monitoring of the nature of injected fluids at time intervals sufficiently frequent to yield data representative of their characteristics;

2. Observation of injection pressure, flow rate, and cumulative volume at least with the following frequencies:

(i) Weekly for produced fluid disposal operations;

(ii) Monthly for enhanced recovery operations;

(iii) Daily during the injection of liquid hydrocarbons and injection for withdrawal of stored hydrocarbons;

(iv) Daily during the injection phase of cyclic steam operations; and

(v) Recording of one observation of injection pressure, flow rate and cumulative volume at reasonable intervals no greater than 30 days.

3. Maintenance of the results of all monitoring until the next permit review.

(7) Commencement, Discontinuance, and Abandonment of Injection Operations

The following provisions shall apply to all Class II wells.

(a) Notice of Commencement and Discontinuance

1. Immediately upon the commencement of injection operations in any well, the operator shall notify the Division of the date such operations began.

2. Within 30 days after permanent cessation of hydrocarbon storage operations or within 30 days after discontinuance of injection operations into any other well, the operator shall notify the Commissioner of the date of such discontinuance and the reasons therefore. No injection well may be temporarily abandoned for a period exceeding six months unless the owner/operator demonstrates to the satisfaction of the Commissioner that there is a continuing need for such a well, that the well exhibits mechanical integrity, and that continued temporary abandonment will not endanger USDWs. Written permission is required.

(b) Abandonment of Injection Operations

1. Whenever there is a continuous two year period of non-injection into any Class II well, such project or well must be plugged and abandoned, and the authority for injection shall automatically terminate, unless the owner/operator demonstrates to the satisfaction of the Commissioner that there is a continuing need for such a well, that the well exhibits mechanical integrity, and that continued temporary abandonment will not endanger USDWs. Written permission is required.

2. Before any injection well is plugged, the operator shall obtain approval for the well's plugging program from the Commissioner.

3. For good cause shown, the Commissioner may grant an administrative extension or extensions of injection authority as an exception to part 1 of this subparagraph.

(c) Prior to granting approval for the plugging and abandonment of a Class II well the Commissioner shall consider the following information:

1. The type, and number of plugs to be used;

2. The placement of each plug including elevaton top and bottom;

3. The type, grade, and quantity of cement to be used; and

4. The method of placement of the plugs.

5. The procedure used to meet the requirements of Rule 0400-45-06-.04.

(8) Reporting Requirements

(a) Annual reporting to the Commissioner summarizing the results of monitoring required under paragraph (6) of this rule is required. Such summary shall include monthly records of injected fluid, and any major changes in characteristics or sources of injected fluid.

(b) Owners or operators of hydrocarbon storage and enhanced recovery projects may report on a field or project basis rather than an individual field basis where manifold monitoring is used.

(c) The Commissioner may require a demonstration of mechanical integrity prior to approving transfer of authority to inject. Prior to approval to inject, the permittee must supply to the Commissioner the following:

1. the anticipated maximum pressure and flow rate at which the well will operate;

2. the results of the formation testing program;

3. the actual injection procedure; and

4. for new wells, the status of corrective action on defective wells in the area of review.

(9) Removal of Produced Water from Leases and Field Facilities

(a) Produced water shall not be stored or disposed of in any unlined pit, pond, lake or depression or in any other place in a manner that will constitute a hazard to USDWs.

(b) Transportation of any produced water by motor vehicle from any lease, central tank battery, or other facility, without approval of the Commissioner is prohibited.

(c) Authorization to transport produced water may be obtained by submitting a request to the Commissioner.

(d) No owner or operator shall permit produced water to be removed from its leases or field facilities by motor vehicle except by a person possessing Commissioner approval.

(10) Disposition of Transported Produced Water

(a) No person transporting produced water may dispose of such water on the surface of the ground, or in any pit, pond, lake, depression, draw, or in any watercourse, or in any other place or in any manner which will constitute a hazard to any USDW.

(b) Delivery of produced water to approved wastewater disposal facilities, enhanced recovery injection facilities, or to a drill site for use in drilling fluid will not be construed as constituting a hazard to USDWs provided the produced waters are placed in tanks or other impermeable storage at such facilities.

(c) The Commissioner may grant temporary exceptions for emergency situations, for use of produced water in road construction or maintenance or for use of produced waters for other construction purposes upon request and a proper showing by a holder of a Commissioner approval to move produced water.

(11) Existing Class II enhanced recovery wells and hydrocarbon storage wells.

Class II wells in current operation upon the effective date of this rule shall file an application within 6 months of the effective date of this rule. No application fee will be required. Failure to file an application by the required date shall make the wells in violation of this Chapter and subject to the new application fee or closure.

(a) An existing Class II enhanced recovery or hydrocarbon storage injection well is authorized by rule, if the owner or operator injects into the existing well within one year after the date which the State of Tennessee's UIC program is authorized under the Federal Safe Drinking Water Act and becomes effective. An owner or operator of a well which is authorized by rule pursuant to this paragraph shall re-work, operate, maintain, plug, abandon or inject into the well in compliance with applicable regulations.

(b) Duration of well authorization by rule

Well authorization under this paragraph expires upon the effective date of a permit issued after plugging and abandonment in accordance with an approved plugging and abandonment plan pursuant to these rules and upon submission of a plugging and abandonment report.

(c) Prohibitions on injection

An owner or operator of a well authorized by rule pursuant to this paragraph is prohibited from injecting into the well:

1. Upon the effective date of an applicable permit denial;

2. Upon failure to submit a permit application in a timely manner;

3. Upon failure to submit inventory information in a timely manner;

4. Upon failure to comply with a request for information in a timely manner;

5. Upon failure to provide alternative financial assurance;

6. Forty-eight hours after receipt of the determination by the Commissioner that the well lacks mechanical integrity, unless the Commissioner requires immediate cessation; or

7. Upon receipt of notification from the Commissioner that the transferee has not demonstrated financial responsibility.

(d) Requirements

The owner or operator of a well authorized under this paragraph shall comply with the applicable requirements of this rule. Such owner or operator shall comply with the casing and cementing requirements no later than 1 year and other requirements no later than 1 year after authorization.

Tenn. Comp. R. & Regs. 0400-45-06-.11

Original rule filed September 12, 2012; effective December 11, 2012. Rule renumbered from 1200-04-06.

Authority: T.C.A. §§ 69-3-101 et seq. and 4-5-201 et seq.