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TITLE 16ECONOMIC REGULATION
PART 1RAILROAD COMMISSION OF TEXAS
CHAPTER 3OIL AND GAS DIVISION
RULE §3.9Disposal Wells

      (iv) During the period of permit suspension, the operator shall comply with all applicable well testing requirements of §3.14 of this title (relating to plugging, and commonly referred to as Statewide Rule 14) but need not perform the MIT test that would otherwise be required under the provisions of paragraph (12)(D) of this section or the permit. Further, during the period of permit suspension, the provisions of paragraph (11)(A) - (C) of this section shall not apply.

      (v) The operator may reinstate injection authority under a suspended permit by filing a written notification with the commission in Austin. The written notification shall be accompanied by an MIT test performed during the three-month period prior to the date notice of reinstatement is filed. The MIT test shall have been performed in accordance with the provisions and standards of paragraph (12)(D) of this section.

  (7) Area of Review.

    (A) Except as otherwise provided in this paragraph, the applicant shall review the date of public record for wells that penetrate the proposed disposal zone within a 1/4 mile radius of the proposed disposal well to determine if all abandoned wells have been plugged in a manner that will prevent the movement of fluids from the disposal zone into freshwater strata. The applicant shall identify in the application any wells which appear from such review of public records to be unplugged or improperly plugged and any other unplugged or improperly plugged wells of which the applicant has actual knowledge.

    (B) The commission or its delegate may grant a variance from the area-of-review requirements of subparagraph (A) of this paragraph upon proof that the variance will not result in a material increase in the risk of fluid movement into freshwater strata or to the surface. Such a variance may be granted for an area defined both vertically and laterally (such as a field) or for an individual well. An application for an areal variance need not be filed in conjunction with an individual permit application or application for permit amendment. Factors that may be considered by the commission or its delegate in granting a variance include:

      (i) the area affected by pressure increases resulting from injection operations;

      (ii) the presence of local geological conditions that preclude movement of fluid that could endanger freshwater strata or the surface; or

      (iii) other compelling evidence that the variance will not result in a material increase in the risk of fluid movement into freshwater strata or to the surface.

    (C) Persons applying for a variance from the area-of-review requirements of subparagraph (A) of this paragraph on the basis of factors set out in subparagraph (B)(ii) or (iii) of this paragraph for an individual well shall provide notice of the application to those persons given notice under the provisions of paragraph (5)(A) of this subsection. The provisions of paragraph (5)(D) and (E) shall apply in the case of an application for a variance from the area-of-review requirements for an individual well.

    (D) Notice of an application for an areal variance from the area-of-review requirements under subparagraph (A) of this paragraph shall be given on or before the date the application is filed with the commission:

      (i) by publication once in a newspaper having general circulation in each county, or portion thereof, where the variance would apply. Such notice shall be in a form approved by the commission or its delegate prior to publication and must be at least three inches by five inches in size. The notice shall state that protests to the application may be filed with the commission during the 15-day period following the date of publication. The notice shall appear in a section of the newspaper containing state or local news items;

      (ii) by mailing or delivering a copy of the application, along with a statement that any protest to the application should be filed with the commission within 15 days of the date of the application is filed with the commission, to the following:

        (I) the manager of each underground water conservation district(s) in which the variance would apply, if any;

        (II) the city clerk or other appropriate official of each incorporated city in which the variance would apply, if any;

        (III) the county clerk of each county in which the variance would apply; and

        (IV) any other person or persons that the commission or its delegate determine should receive notice of the application.

    (E) If a protest to an application for an areal variance is made to the commission by an affected person, local government, underground water conservation district, or other state agency within 15 days of receipt of the application or of publication, whichever is later, or if the commission's delegate determines that a hearing on the application is in the public interest, then a hearing will be held on the application after the commission provides notice of the hearing to all local governments, underground water conservation districts, state agencies, or other persons, who express an interest, in writing, in the application. If no protest from an affected person is received by the commission, the commission's delegate may administratively approve the application. If the application is denied administratively, the person(s) filing the application shall have a right to hearing upon request. After hearing, the examiner shall recommend a final action by the commission.

    (F) An areal variance granted under the provisions of this paragraph may be modified, terminated, or suspended by the commission after notice and opportunity for hearing is provided to each person shown on commission records to operate an oil or gas lease in the area in which the proposed modification, termination, or suspension would apply. If a hearing on a proposal to modify, terminate, or suspend an areal variance is held, any applications filed subsequent to the date notice of hearing is given must include the area-of-review information required under subparagraph (A) of this paragraph pending issuance of a final order.

  (8) Casing. Disposal wells shall be cased and the casing cemented in compliance with §3.13 of this title (relating to Casing, Cementing, Drilling, and Completion Requirements) in such a manner that the injected fluids will not endanger oil, gas, geothermal resources, or freshwater resources.

  (9) Special equipment.

    (A) Tubing and packer. Wells drilled or converted for disposal shall be equipped with tubing set on a mechanical packer. Packers shall be set no higher than 100 feet above the top of the permitted interval. For purposes of this section, the term "tubing" refers to a string of pipe through which injection may occur and which is neither wholly nor partially cemented in place. A string of pipe that is wholly or partially cemented in place is considered casing for purposes of this section.

    (B) Pressure valve. The wellhead shall be equipped with a pressure observation valve on the tubing and for each annulus of the well.

    (C) Exceptions. The director may grant an exception to any provision of this paragraph upon proof of good cause. If the director denies an exception, the operator shall have a right to a hearing upon request. After hearing, the examiner shall recommend a final action by the commission.

  (10) Well record. Within 30 days after the completion or conversion of a disposal well, the operator shall file in duplicate in the district office a complete record of the well on the appropriate form which shows the current completion.

  (11) Monitoring and reporting.

    (A) The operator shall monitor the injection pressure and injection rate of each disposal well on at least a monthly basis, or on a more frequent basis as required by the commission under conditions described in paragraph (3)(C) of this section.

    (B) The results of the monitoring shall be reported annually to the commission on the prescribed form, or on a more frequent basis as required by the commission under conditions described in paragraph (3)(C) of this section.

    (C) All monitoring records shall be retained by the operator for at least five years.

    (D) The operator shall report to the appropriate District Office within 24 hours any significant pressure changes or other monitoring data indicating the presence of leaks in the well.

  (12) Testing.

    (A) Purpose. The mechanical integrity of a disposal well shall be evaluated by conducting pressure tests to determine whether the well tubing, packer, or casing have sufficient mechanical integrity to meet the performance standards of this rule, or by alternative testing methods under subparagraph (E) of this paragraph.

    (B) Applicability. Mechanical integrity of each disposal well shall be demonstrated in accordance with provisions of subparagraph (D) and subparagraph (E) of this paragraph prior to initial use. In addition, mechanical integrity shall be tested periodically thereafter as described in subparagraph (C) of this paragraph.

Cont'd...

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