S.C. Code Regs. § § 121-8.22

Current through Register Vol. 48, No. 10, October 25, 2024

Section 121-8.22 - Underground Injection for Enhanced Recovery, Saltwater and Oil-Field Wastes, and Hydrocarbon Storage

A. The Commission, upon notice and hearing, may authorize the following activities:

(1) Operations to increase ultimate recovery, such as cycling of gas, maintenance of pressure, and the introduction of gas, water, or other substances into a producing formation;

(2) The disposal of saltwater and oil-field wastes; and

(3) Underground storage of hydrocarbons.

All injection wells associated with any such activities shall be classified as Class II wells. All Class II wells must be permitted and operated in accordance with the following paragraphs.

B. Fluids injected into Class II well shall be stored, transported and injected in such a manner as may be approved by the Commission. Underground injection that causes or allows movement of fluid into an underground source of drinking water is prohibited, unless the underground source of drinking water is an exempted aquifer.

C. Immediately following the initiation of production in any field or pool, all saltwater shall be disposed of into an approved underground formation or otherwise disposed of as approved by the Commission where such saltwater can not damage or pollute underground sources of drinking water, oil, gas, or other minerals.

D. Injection wells may be drilled for the purpose of Class II operations or existing wells may be converted to injection wells. Class II wells shall be completed in a manner that will insure injection into zones approved by the Commission.

E. Wells drilled or converted for injection purposes shall be properly constructed to prevent the loss of injected fluids into any zone not approved by the Commission. The surface casing of all Class II wells shall be seated in an aquiclude below the deepest USDW and shall be grouted from the base of the surface casing to the ground surface. All Class II wells shall be completed with a long string of casing that shall be properly cemented with neat Portland cement at a sufficient depth to adequately protect the oil-bearing stratum. Casing shall be cemented in place with a sufficient amount of cement to fill the annular space to a point at least five hundred (500) feet above either the top of the injection interval, or the top of the casing shoe, to be determined by the Commission. Cement shall be allowed to stand a total of eighteen (18) hours before pressure testing.

F. The casing shall be tested at a pressure in pounds per square inch (psi), calculated by multiplying the depth (in feet) of the mid-point of the injection interval by two-tenths ( 2/10) or any other pressure required by the Commission. The maximum test pressure required shall not exceed fifteen hundred (1,500) pounds per square inch. If, at the end of thirty (30) minutes, the pressure gauge shows a drop of ten percent (10%) of the test pressure of more, such corrective measures shall be taken as will insure that the long string of casing is so set and cemented that it will hold the pressure for thirty (30) minutes without a drop of more than ten percent (10%) of the test pressure of the gauge. Cement-bond logs or temperature logs shall be run to verify the gauge. Cement-bond logs or temperature logs shall be run to verify the seal on all wells drilled or converted for injection purposes.

G. All injections shall be through tubing anchored by a packer unless otherwise approved by the commission. The injection of fluids into an underground source of drinking water containing fluids of less than 10,000 milligrams per liter total dissolved solids is hereby prohibited, unless it can be demonstrated before the Commission after notice and hearing that the disposal zone has no use as a drinking water source due to contamination of the zone or other reasons. The injection of fluids into the annular space between strings of casing is prohibited, except as may be approved by the Commission.

H. Application for permits for Class II wells shall be considered as a two-step process. An applicant seeking the Commission's approval for the injection of fluids as described in paragraphs B through H above shall submit the following and any additional information as may be required by the Commission.

(1) Step 1:

(a) Well permit forms for the drilling or conversion of a well for injection purposes;

(b) A plat showing the location and surface elevation of the proposed injection well; all other injection wells; all water wells; and the location of all oil and gas wells, including abandoned wells and dry holes within one-fourth ( 1/4) mile of the proposed injection well. Such plat shall be drawn to a scale of one inch to five hundred feet and shall show distance from the proposed well to the nearest lease lines;

(c) A tabulation of well data for all wells within the review area which penetrate the proposed injection zone or, in the case of Class II wells operating over the fracture pressure of the injection formation, all known wells within the area of review which penetrate formations affected by the increase in pressure (to include depth, elevation, well construction and plugging data);

(d) A cross section illustrating detailed geologic structure and formation, lithology, and physical characteristics of the general area;

(e) A list of the following geologic and physical characteristics of the injection interval and confining formation:

1) Thickness;

2) Areal extent;

3) Lithology;

4) Porosity;

5) Permeability;

6) Storativity;

7) Location, extent, and effects of known or suspected faulting, fracturing, and natural solution channels;

8) Formation and fluid pressure; and

9) Fracturing gradients;

(f) A list of the following engineering data:

1) Diameter of the hole, and the total depth of the well;

2) Type, size, weight and strength of all casing strings;

3) Specifications and proposed installation of tubing and packers;

4) Proposed cementing procedures and type of cement;

5) Proposed artificial fracturing or stimulation program;

6) Plans of the surface and subsurface construction details of the system including engineering drawings and specifications;

7) Plans for monitoring;

8) Expected changes in pressure, rate of native fluid displacement by injection fluid, direction and extent of dispersion of the injected fluid; and

9) Contingency plans to cope with all shut ins or well failures in a manner that will obviate any environmental degradation;

(g) A complete electric and/or gamma log through the injection zone of the injection well, or if an injection well is to be drilled, a complete electric and/or gamma log through the injection zone from a nearby well. Such log shall be annotated to identify the estimated greatest depth of an USDW; significant aquicludes, and the injection formation;

(h) A statement specifying the proposed source of injection fluids and chemical constituents of the proposed fluids to be injected and the fluids in the injection zone (if an analysis of the water in the proposed injection zone is not available such application shall include a determination of the chlorides by accepted log interpretation methods. Such data used in that calculation and the calculation shall be included in the application), a statement specifying any proposed treatment of the injected fluids;

(i) The estimated minimum and maximum amount of fluids to be injected daily and anticipated injection pressures with resultant and anticipated bottom hole pressures and the known or calculated fracturing pressure of the injection zone. All determinations included in this application shall be supported by basic data and calculations; and

(j) Proof of public notification as set forth in Paragraph R below.

(2) Step 2:

(a) Permit application for the injection of fluids;

(b) A schematic diagram of the surface injection system and its appurtenances;

(c) A revised well-bore sketch containing the information requested in Step 1(f)(1) and 1(f)(7) above or a statement verifying that the well-bore sketch submitted in Step 1(f)(7) is accurate and unchanged; and the method and results of casing tests before use of the injection well;

(d) A complete electric and/or gamma log through the injection zone of the injection well annotated to identify the estimated greatest depth of an USDW, significant aquicludes, and the injection formation unless previously submitted in Step 1;

(e) An affidavit specifying the source of injected fluids, an analysis of the fluids to be injected and the fluids in the injection zone, and a statement specifying any proposed treatment of the injected fluids.

I. In reviewing an application for a permit to drill a Class II injection well, the extent of the area of review surrounding the well shall be 1/4 mile, unless otherwise determined by the Commission after consideration of the following:

(1) Hydrogeology of the area;

(2) Population density;

(3) Ground-water use;

(4) Previous disposal within the area;

(5) Proposed well construction;

(6) Physical and chemical characteristics of the injection fluids; and

(7) Injection volume, rate, and pressure.

J. Application for Class II permits shall be submitted in writing to the Commission in accordance with Paragraph H above. Conceptual approval may be granted by the Commission after submittal and consideration of the information required under Section H(1) above (Step 1). Approval to inject fluids may be granted by the Commission after submittal and consideration of the information required under Section H(2) above (Step 2).

K. The operator may apply for a fieldwide permit for injection wells for enhancement of oil and gas production, or for pressure maintenance. Such fieldwide application shall include all of the information required by Paragraph H above. If a permit has been issued for a fieldwide injection program, the operator will be required on each injection well, whether it be drilled or converted, to submit in an application the information required under H(1)(b), H(1)(f), H(2)(a), H(2)(b), and H(2)(c) above.

L. Applications for permits to inject fluids (Step 2) shall be approved or rejected by the Commission on the basis of the information provided in accordance with Paragraph H above in conjunction with a thorough evaluation of the endangering influences posed by any defective wells that may exist within the area of review. In the event a defective well is determined to exist within the area of review, the applicant shall submit to the Commission a plan for corrective action with the permit application. If the Commission determines that the plan is inadequate, the Commission shall require the applicant to revise the plan, prescribe a plan to be a condition of the permit, or deny the permit application. In determining the adequacy of such plan and any additional corrective actions needed to prevent the movement of fluids into or between underground sources of drinking water, the following factors shall be considered by the Commission:

(1) Formation characteristics of each formation penetrated, including porosity and permeability;

(2) Volume of injected fluids;

(3) Chemical composition of the injection fluids;

(4) Chemical composition of the formation fluids of the injection zone;

(5) Previous injection activities within the area; and

(6) Construction and plugging records of the defective well(s).

The Commission may require, as a part of corrective action, that injection pressure of the injection zone be so limited that pressure in the injection zone does not exceed the hydrostatic pressure at the site of any defective well(s). If corrective action is determined to be unfeasible, the Commission may reject the application or conditionally approve the application subject to stated constraints which will minimize the risk of fluid migration from the injection zone. In all cases, injection of fluids shall not begin until such approval is obtained.

M. A permit shall expire one (1) year from the date of issuance of same if no fluids have been injected, unless otherwise approved by the Commission.

N. The well shall be operated at all times so that mechanical integrity and injectivity of the injection operation can be verified and determined. The well shall be equipped so the injection rate, injection pressure, and tubing-casing annulus pressure data may be recorded for each well. All injection wells will be subject to a five (5) year review for mechanical integrity.

The operator of any Class II well shall submit to the Commission;

(1) Injection-volume, injection-pressure, and tubing-casing annulus pressure data for each well monthly. The injected volumes shall be recorded weekly for produced fluids disposal operations, monthly for enhanced recovery operations, and daily for other types of operations involving Class II wells. The information for each month shall be submitted to the Commission in an annual report by March 1 each year for the preceding calendar year.

A chemical analysis of the injected fluids shall be submitted by the first day of January of each year following initial approval. The Commission may extend the period of time between analyses upon receipt and approval of justification.

O. The permittee shall be responsible for maintaining surface equipment to be used in the event of malfunction, including rapid shutoff and standby facilities. The permittee shall maintain records of all shut-in periods when contingency measures are used, and shall file such records with the Commission.

P. The operator of any Class II well shall, in addition to submitting the data required under N(1) and N(2), maintain the following and any additional monitoring records as may be required by the Commission:

(1) All calibration and maintenance records and all original strip chart recordings for continuous monitoring instrumentation;

(2) Injection and tubing-casing annulus pressure data recorded on a daily or weekly basis and copies of the reports submitted to the Commission; and

(3) Nature and composition of injection fluids.

Q. All records of monitoring activities shall include for all samples:

(1) The date, place and time of sampling;

(2) The dates analyses were performed;

(3) Who performed the analyses;

(4) The analytical techniques/methods;

(5) The result of such analyses.

R. In order to afford the public an opportunity to participate in the permitting process for any of the above described wells the following shall apply:

(1) The applicant for a permit shall cause to be placed in a newspaper having general circulation in the county in which the proposed Class II well is located, a notice setting forth the details of the permit sought, and the Commission is to be provided proof of publication of such notice;

(2) The notice shall provide an adequate description of the proposed action and a description of the location of the proposed well, and the notice shall be placed one time in the newspaper at least 15 days prior to the date that the Commission may approve the permit;

(3) The notice shall state that interested parties may obtain additional information concerning the proposed well from the South Carolina Water Resources Commission;

(4) The notice shall state that a public hearing may be requested by any interested party at any time during the 15 day comment period;

(5) If no public hearing has been requested at the expiration of the 15 day period, and if the permit application meets all of the requirements of the herein above rule, the Commission may grant the permit; and

(6) If there are requests for a public hearing and in the opinion of the Commission the requests are justified, the Commission will publish a notice for public hearing. The application for the Class II well will either be granted, denied, or modified by the Commission after the hearing.

S. The operator of any Class II well shall immediately notify the Commission in the event of any mechanical or downhole problems resulting from the operation of the well which may endanger an underground source of drinking water.

T. A permit for a Class II well may be modified, suspended, or revoked in whole or in part during its term for cause including, but not limited to, the following:

(1) The underground injection endangers underground drinking water sources;

(2) Violation of any material terms or conditions of the permit;

(3) Obtaining a permit by misrepresentation or failure to disclose fully all relevant facts; or

(4) A change in any condition that may indicate failure of the underground injection system.

U. Modifications of the permit can only be made after notice in writing to and approval of the Commission. Significant modifications, as determined by the Commission, will require the operator to publish notice in accordance with Paragraph R above prior to obtaining the Commission's approval.

V. The owner and operator of any Class II injection well shall be jointly and severally liable and responsible for the plugging thereof in accordance with these rules.

W. Notification of intention to plug any Class II injection well shall be given to the Commission at least fifteen (15) days prior to the commencement of plugging operations.

X. Each plugging operation for a Class II injection well may be witnessed by a representative of the Commission. A report of the plugging operation shall be submitted by the owner or operator of the well to the Commission within thirty (30) days after the well has been plugged.

Y. The methods and procedures for plugging a Class II injection well shall be as follows:

(1) The well shall be filled from the bottom to the top with a mud-laden fluid weighing at least 9.0 pounds per gallon, with not less than thirty-six (36) viscosity API full funnel method;

(2) Each injection zone shall be sealed off with a cement plug which will extend either from the bottom of the hole or from a point twenty-five (25) feet below the base of the injection zone to a point at least fifty (50) feet above the top of each injection zone;

(3) Each production zone shall be sealed off with a cement plug which will extend either from the bottom of the hole or from a point twenty-five (25) feet below the base of the production zone to a point at least fifty (50) feet above the top of each production zone;

(4) All underground sources of drinking water shall be sealed off with a cement plug of a length not less than fifty (50) feet which will extend from a point not less than twenty-five (25) feet below the base of the surface string of casing to a point at least twenty-five (25) feet above the base of the surface string of casing;

(5) A cement plug shall be placed from the surface and extend to a depth of thirty (30) feet; and

(6) The interval between plugs shall be filled with a mud-laden fluid weighing at least 9.0 pounds per gallon, with not less than thirty-six (36) viscosity API full funnel method.

Z. The permittee shall during normal working hours allow the Commission or its authorized representative to:

(1) Enter the permitee's premises in which injection source or system is located and in which any records are required to be kept under terms and conditions of the permit;

(2) Have access to and copy records required to be kept under terms and conditions of the permit;

(3) Inspect the permittee's facilities, including any monitoring equipment or analytical devices;

(4) Sample any fluids being injected and the fluids of the injection zone.

AA. Before any person shall be granted a permit to drill an underground injection well, such person shall file with the Commission a performance bond in accordance with Section 121-8.6.

S.C. Code Regs. § 121-8.22