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TITLE 16ECONOMIC REGULATION
PART 1RAILROAD COMMISSION OF TEXAS
CHAPTER 3OIL AND GAS DIVISION
RULE §3.14Plugging

      (ii) neither the operator nor any other entity responsible for plugging the well has assets with which to plug the well.

    (B) Without a hearing if the well is a delinquent inactive well and:

      (i) the Commission has sent notice of its intention to plug the well as required by §89.043(c) of the Texas Natural Resources Code; and

      (ii) the operator did not request a hearing within the period (not less than 10 days after receipt) specified in the notice.

    (C) Without notice or hearing, if:

      (i) the Commission has issued a final order requiring that the operator plug the well and the order has not been complied with; or

      (ii) the well poses an immediate threat of pollution of surface or subsurface waters or of injury to the public health and the operator has failed to timely remediate the problem.

  (4) The Commission may seek reimbursement from the operator and any other entity responsible for plugging the well for state funds expended pursuant to paragraph (3) of this subsection.

(c) Designated operator responsible for proper plugging.

  (1) The entity designated as the operator of a well specifically identified on the most recent Commission-approved operator designation form filed on or after September 1, 1997, is responsible for properly plugging the well in accordance with this section and all other applicable Commission rules and regulations concerning plugging of wells.

  (2) As to any well for which the most recent Commission-approved operator designation form was filed prior to September 1, 1997, the entity designated as operator on that form is presumed to be the entity responsible for the physical operation and control of the well and to be the entity responsible for properly plugging the well in accordance with this section and all other applicable Commission rules and regulations concerning plugging of wells. The presumption of responsibility may be rebutted only at a hearing called for the purpose of determining plugging responsibility.

(d) General plugging requirements.

  (1) Wells shall be plugged to insure that all formations bearing usable quality water, oil, gas, or geothermal resources are protected. All cementing operations during plugging shall be performed under the direct supervision of the operator or his authorized representative, who shall not be an employee of the service or cementing company hired to plug the well. Direct supervision means supervision at the well site during the plugging operations. The operator and the cementer are both responsible for complying with the general plugging requirements of this subsection and for plugging the well in conformity with the procedure set forth in the approved notice of intention to plug and abandon for the well being plugged. The operator and cementer may each be assessed administrative penalties for failure to comply with the general plugging requirements of this subsection or for failure to plug the well in conformity with the approved notice of intention to plug and abandon the well.

  (2) Cement plugs shall be set to isolate each productive horizon and usable quality water strata. Plugs shall be set as necessary to separate multiple usable quality water strata by placing the required plug at each depth as determined by the Groundwater Advisory Unit of the Oil and Gas Division. The operator shall verify the placement of the plug required at the base of the deepest usable quality water stratum by tagging with tubing or drill pipe or by an alternate method approved by the district director or the district director's delegate.

  (3) Cement plugs shall be placed by the circulation or squeeze method through tubing or drill pipe. Cement plugs shall be placed by other methods only upon written request with the written approval of the district director or the director's delegate.

  (4) All cement for plugging shall be an approved API oil well cement without volume extenders and shall be mixed in accordance with API standards. Slurry weights shall be reported on the cementing report. The district director or the director's delegate may require that specific cement compositions be used in special situations; for example, when high temperature, salt section, or highly corrosive sections are present. An operator shall request approval to use alternate materials, other than API oil well cement without volume extenders, to plug a well by filing with the director or the director's delegate a written request providing all pertinent information to support the use of the proposed alternate material and plugging method. The director or the director's delegate shall determine whether such a request warrants approval, after considering factors which include but are not limited to whether or not the well to be plugged was used as an injection or disposal well; the well's history; the well's current bottom hole pressure; the presence of highly pressurized formations intersected by the wellbore; the method by which the alternative material will be placed in the wellbore; and the compressive strength and other performance specifications of the alternative material to be used. The director or the director's delegate shall approve such a request only if the proposed alternate material and plugging method will ensure that the well does not pose a potential threat of harm to natural resources.

  (5) Operators shall use only cementers approved by the director or the director's delegate, except when plugging is conducted in accordance with subparagraph (B)(ii) of this paragraph or paragraph (6) of this subsection. Cementing companies, service companies, or operators may apply for designation as approved cementers. Approval will be granted on a showing by the applicant of the ability to mix and pump cement or other alternate materials as approved by the director or the director's delegate in compliance with this rule. An approved cementer is authorized to conduct plugging operations in accordance with Commission rules in each Commission district.

    (A) A cementing company, service company, or operator seeking designation as an approved cementer shall file a request in writing with the district director of the district in which it proposes to conduct its initial plugging operations. The request shall contain the following information:

      (i) the name of the organization as shown on its most recent approved organizational report;

      (ii) a list of qualifications including personnel who will supervise mixing and pumping operations;

      (iii) length of time the organization has been in the business of cementing oil and gas wells;

      (iv) an inventory of the type of equipment to be used to mix and pump cement or other alternate materials as approved by the director or the director's delegate; and

      (v) a statement certifying that the organization will comply with all Commission rules.

    (B) No request for designation as an approved cementer will be approved until after the district director or the director's delegate has:

      (i) inspected all equipment to be used for mixing and pumping cement or other alternate materials as approved by the director or the director's delegate; and

      (ii) witnessed at least one plugging operation to determine if the cementing company, service company, or operator can properly mix and pump cement or other alternate materials as approved by the director or the director's delegate according to the specifications required by this rule.

    (C) The district director or the director's delegate shall file a letter with the director or the director's delegate recommending that the application to be designated as an approved cementer be approved or denied. If the district director or the director's delegate does not recommend approval, or the director or the director's delegate denies the application, the applicant may request a hearing on its application.

    (D) Designation as an approved cementer may be suspended or revoked for violations of Commission rules. The designation may be revoked or suspended administratively by the director or the director's delegate for violations of Commission rules if:

      (i) the cementer has been given written notice by personal service or by registered or certified mail informing the cementer of the proposed action, the facts or conduct alleged to warrant the proposed action, and of its right to request a hearing within 10 days to demonstrate compliance with Commission rules and all requirements for retention of designation as an approved cementer; and

      (ii) the cementer did not file a written request for a hearing within 10 days of receipt of the notice.

Cont'd...

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