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TITLE 16ECONOMIC REGULATION
PART 1RAILROAD COMMISSION OF TEXAS
CHAPTER 3OIL AND GAS DIVISION
RULE §3.81Brine Mining Injection Wells

  (5) Financial responsibility. It shall be a permit condition that the operator maintain financial responsibility and resources to plug and abandon the brine mining injection well. The operator shall show evidence of such financial responsibility to the commission by submitting a surety bond or letter of credit in a form prescribed by the commission. Such bond or letter of credit shall be maintained until the well is plugged in accordance with subsection (f)(18) of this section.

  (6) Corrective action. For all known wells that penetrate the injection zone within a 1/4 mile radius of the brine mining injection well and are improperly completed, plugged, or abandoned, the commission will consider requiring corrective action to prevent movement of fluid into fresh water strata.

    (A) In determining the need for corrective action, the commission will consider the following factors: nature and volume of injected fluid; nature of native fluids; potentially affected population; geology; hydrology; history of the injection operation; completion and plugging records; abandonment procedures in effect at the time a well was abandoned; and hydraulic connections with fresh water.

    (B) For an existing brine mining injection well requiring corrective action, any permit issued will include a compliance schedule leading to compliance with corrective action requirements. The compliance schedule will require compliance as soon as possible and in no case later than one year after the effective date of the permit. The permit will require the operator to submit a written compliance report within 30 days after all required corrective action has been taken.

    (C) For a new brine mining injection well, the operator may not begin injection operations until all required corrective action has been taken.

(h) Modification, revocation and reissuance, and termination of permits. A permit may be modified, revoked and reissued, or terminated by the commission either upon the written request of any interested person, including the operator, or upon the commission's initiative, but only for the reasons and under the conditions specified in this subsection. Except for minor modifications made under paragraph (2) of this subsection, the commission will follow the applicable procedures in subsection (i) of this section. In the case of a modification, the commission may request additional information or an updated application. In the case of a revocation and reissuance, the commission will require a new application. If a permit is modified, only the conditions subject to modification are reopened. The term of a permit may not be extended by modification. If a permit is revoked and reissued, the entire permit is reopened and subject to revision, and the permit is reissued for a new term.

  (1) Modification, or revocation and reissuance. The following are causes for modification, or revocation and reissuance:

    (A) material and substantial alterations or additions to the facility occurred after permit issuance and justify permit conditions that are different or absent in the existing permit;

    (B) the commission receives new information;

    (C) the standards or regulations on which the permit was based have been changed by promulgation of amended standards or regulations or by judicial decision after the permit was issued;

    (D) the commission determines good cause exists for modifying a compliance schedule, such as a act of God, strike, flood, materials shortage, or other event over which the operator has little or no control and for which there is no reasonably available remedy;

    (E) cause exists for terminating a permit under paragraph (3) of this subsection, and the commission determines that modification, or revocation and reissuance, is appropriate; or

    (F) a transfer of the permit is proposed.

  (2) Minor modifications. With the operator's consent, the director may make minor modifications to a permit administratively, without following the procedures of subsection (i) of this section. Minor modifications may only:

    (A) correct clerical or typographical errors, or clarify any description or provision in the permit, provided that the description or provision is not changed substantively;

    (B) require more frequent monitoring or reporting;

    (C) change construction requirements provided that any changes shall comply with the requirements of subsection (g)(4) of this section; or

    (D) allow a transfer of the permit where the director determines that no change in the permit is necessary other than a change in the name of the operator, provided that a written agreement between the current operator and the new operator containing a specific data for the transfer of permit responsibility, coverage, and liability has been submitted to the commission.

  (3) Termination. The following are causes for terminating a permit during its term, or for denying a permit renewal application:

    (A) the operator fails to comply with any condition of the permit or this section;

    (B) the operator fails to disclose fully all relevant facts in the permit application or during the permit issuance process, or misrepresents any relevant fact at any time;

    (C) a material change of conditions occurs in the operation or completion of the well, or there are material changes in the information originally furnished;

    (D) the commission determines that the permitted injection endangers human health or the environment, or that pollution of fresh water is occurring or is likely to occur as a result of the permitted injection; or

    (E) fluids are escaping from the permitted injection zone.

(i) Permitting procedures.

  (1) Review of applications. Upon receipt of an application for a permit, the director will review the application for completeness. Within 30 days after receipt of the application, the director will notify the applicant in writing whether the application is complete or deficient. A notice of deficiency will state the additional information necessary to complete the application, and a date for submitting this information. The application will be deemed withdrawn if the necessary information is not received by the specified date, unless the director has extended this date upon request of the applicant. Upon timely receipt of the necessary information, the director will notify the applicant that the application is complete. The director will not begin processing a permit until the application is complete.

  (2) Permit denial. If the director administratively denies a permit application, a notice of administrative denial will be mailed to the applicant. The applicant will have a right to a hearing on request. If the applicant requests a hearing, the notice of administrative denial will be subject to the same procedures as a draft permit prepared under paragraph (3) of this subsection.

  (3) Draft permits.

    (A) A draft permit will be prepared when the director tentatively decides:

      (i) to issue a permit;

      (ii) to modify, or revoke and reissue, a permit; or

      (iii) to terminate a permit, in which case the director will prepare a notice of intent to terminate, which is a type of draft permit.

    (B) A draft permit will contain all proposed permit conditions.

  (4) Fact sheets. The director will prepare a fact sheet to accompany every draft permit that the director finds is the subject of widespread public interest or raises important issues. The fact sheet will briefly set forth the principal facts and the significant factual, legal, methodological, and policy questions considered in preparing the draft permit. The fact sheet will include information satisfying the requirements of 40 Code of Federal Regulations §124.8(b).

  (5) Notice.

    (A) The commission will give notice when a draft permit is prepared under paragraph (3) of this subsection, and when a hearing is scheduled under paragraph (7) of this subsection.

    (B) Notice will be given by the methods specified in this subparagraph.

      (i) A copy of the notice will be mailed to the following persons:

        (I) any agency that the commission knows has issued or is required to issue a permit for the same facility under any federal or state environmental program;

        (II) the United States Environmental Protection Agency;

        (III) persons on a mailing list developed according to 40 Code of Federal Regulations §124.10(c)(1)(viii);

        (IV) any unit of local government having jurisdiction over the area where the facility is or is proposed to be located, and each state agency having any authority under state law with respect to the construction or operation of the facility;

        (V) the operator; and

Cont'd...

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