North Dakota Administrative Code Chapter 43-05 Geologic Storage of Carbon Dioxide (North Dakota Storage Administration Statute)

Jurisdiction(s)
Instrument Date
Effective Date
Instrument Type
Primary
Relevant Regulatory Authority
North Dakota Industrial Commission
Purpose and Context
The North Dakota Storage Administration Statute sets out important administrative details for the regulation of CO2 injection and storage, relating in particular to: permit applications and issuance; monitoring requirements; detection of leakages; and site closure. 
Instrument Access Date
6 September 2012
I. Regulatory scope and definitions
Definitions

Article/Section No.

Section 43-05-01-01

Associated legislation:
North Dakota Administrative Code Chapter 43-02-03
North Dakota Century Code Chapter 38-08

Instrument Text

3-05-01-01. Denitions. Terms used in this chapter have the same meaning as in chapter 43-02-03 and North Dakota Century Code chapter 38-08. Further, in this chapter:
1. "Carbon dioxide" means carbon dioxide produced by anthropogenic sources which is of such purity and quality that it will not compromise the safety of geologic storage and will not compromise those properties of a storage reservoir which allow the reservoir to effectively enclose and contain a stored gas.
2. "Closure period" means that period from permanent cessation of carbon dioxide injection until the commission issues a certicate of project completion.
3. "Commission" means industrial commission.
4. "Flow lines" means pipelines transporting carbon dioxide from the carbon dioxide facility injection facilities to the wellhead.
5. "Formation fracture pressure" means the pressure, measured in pounds per square inch, which, if applied to a subsurface formation, will cause that formation to fracture.
6. "Freshwater" means an underground source of drinking water unless otherwise dened by the commission.
7. "Geologic storage" means the permanent or short-term underground storage of carbon dioxide in a storage reservoir.
8. "Injection well" means a well used to inject carbon dioxide into or withdraw carbon dioxide from a reservoir.
9. "Minerals" means coal, oil, and natural gas.
10. "Operational period" means the period during which injection occurs.
11. "Permit" means a permit issued by the commission allowing a person to operate a storage facility.
12. "Postclosure period" means that period after the commission has issued a certicate of completion.
13. "Reservoir" means a subsurface sedimentary stratum, formation, aquifer, cavity, or void, whether natural or articially created, including oil and gas reservoirs, saline formations, and coal seams suitable for or capable of being made suitable for injecting and storing carbon dioxide.
14. "Storage facility" means the reservoir, underground equipment, and surface facilities and equipment used or proposed to be used in a geologic storage operation. It does not include pipelines used to transport carbon dioxide to the storage facility.
15. "Storage operator" means a person holding or applying for a permit.
16. "Storage reservoir" means a reservoir proposed, authorized, or used for storing carbon dioxide.
17. "Subsurface observation well" means a well used to observe subsurface phenomena, including the presence of carbon dioxide, pressure uctuations, uid levels and ow, temperature, and in situ water chemistry.
18. "Underground source of drinking water" means an aquifer or any portion of an aquifer that supplies drinking water for human consumption, or in which the ground water contains fewer than ten thousand milligrams per liter total dissolved solids and is not an exempted aquifer as determined by the commission under section 43-02-05-03.
History: Effective April 1, 2010. General Authority: NDCC 28-32-02 Law Implemented: NDCC 38-22

Composition of CO2 stream

Summary

Carbon dioxide is defined in section 43-05-01-01 of the North Dakota Storage Administration Statute as CO2 from anthropogenic sources that is of such purity and quality that it will not compromise:

  1. the safety of geologic storage; or
  2. the properties of a reservoir that allow the reservoir to effectively enclose and contain stored gas.

                                  

This definition may allow scope for the presence of incidental or associated substances in CO2 streams, provided they do not breach the conditions specified above. 

Article/Section No.

Section 43-05-01-01

Instrument Text

43-05-01-01. Denitions. Terms used in this chapter have the same meaning as in chapter 43-02-03 and North Dakota Century Code chapter 38-08. Further, in this chapter:
1. "Carbon dioxide" means carbon dioxide produced by anthropogenic sources which is of such purity and quality that it will not compromise the safety of geologic storage and will not compromise those properties of a storage reservoir which allow the reservoir to effectively enclose and contain a stored gas.
[…]

II. The scope and management of rights
Public participation

Summary

<p>Section 43-05-01-08 of the North Dakota Storage Administration Statute provides that, on or before the date of making an application for a permit to operate a storage facility, applicants must first notify a number of different parties, including surface land owners, mineral rights holders and other pore space rights holders, within or proximate to the relevant area.</p> <p>The North Dakota Industrial Commission must also publish a notice specifying details of the permit application and the time and place that the Commission will hold a hearing on it.</p> <p>Any objections to the application must be made to the Commission in writing.</p>

Article/Section No.

Section 43-05-01-08

Instrument Text

43-05-01-08. Amalgamation of subsurface rights to operate geological storage unit.

1. On or before the date a permit application is led with the commission, the applicant shall give the following notice that it has led the application:
a. Each operator of mineral extraction activities within the facility and within one-half mile [.80 kilometer] outside of the facility area;
b. Each mineral lessee of record within the facility area and within one-half mile [.80 kilometer] of its outside boundary;
c. Each owner of record of the surface within the facility area and one-half mile [.80 kilometer] of its outside boundary;
d. Each owner of record of minerals within the project area and within one-half mile [.80 kilometer] of its outside boundary;
e. Each owner and each lessee of record of the pore space within the storage reservoir and within one-half mile [.80 kilometer] of the reservoir’s boundary; and
f. Any other persons as required by the commission.
2. The notice must contain:
a. A legal description of the land overlying the storage reservoir.
b. The date, time, and place that the commission will hold a hearing on the permit application.
c. A statement that a copy of the permit application may be obtained from the commission.
d. A notice of the right to le comments.
3. The commission shall give at least fteen days’ notice, except in an emergency, of the time and place of hearing thereon by one publication of such notice in a newspaper of general circulation in Bismarck, North Dakota, and in a newspaper of general circulation in the county where the land affected or some part thereof is situated, unless in some particular proceeding a longer period of time or a different method of publication is required by law, in which event such period of time and method of publication shall prevail. The notice shall issue in the name of the commission and shall conform to the other requirements provided by law. The public notice must state that an application has been led with the commission for permission to store carbon dioxide and describe the location of the proposed facility area and the date, time, and place of the hearing before the commission at which time the merits of the application will be considered.
4. Objections received by the commission shall be in writing and specify the nature of the objection.
History: Effective April 1, 2010. General Authority: NDCC 28-32-02 Law Implemented: NDCC 38-22

III. Permitting storage site exploration, project development and CO2 injection
Environmental protection and impact assessment

Summary

Section 43-05-01-13 of the North Dakota Storage Administration Statute requires operators to implement the public safety and emergency response plan and the worker safety plan proposed in the relevant permit application. Plans must include emergency response and security procedures and be updated as necessary. Copies of the plan must be available at the storage facility and at the operator’s nearest operational office. 

Article/Section No.

Section 43-05-01-13

Instrument Text

43-05-01-13. Storage facility operational safety plans. Each storage operator shall implement the commission-approved storage facility public safety and emergency response plan and the worker safety plan proposed in section 43-05-01-05. This plan must include emergency response and security procedures. The plan, including revision of the list of contractors and equipment vendors, must be updated as necessary or as the commission requires. Copies of the plans must be available at the storage facility and at the storage operator’s nearest operational ofce.
History: Effective April 1, 2010. General Authority: NDCC 28-32-02 Law Implemented: NDCC 38-22

Permitting CO2 injection and storage

Summary

Under section 43-05-01-05 of the North Dakota Storage Administration Statute, applications for permits to operate storage facilities must include, among other things:

  1. a site map of the storage reservoir and technical evaluation of the storage facility;
  2. a leak detection and monitoring plan for wells and surface facilities;
  3. a leak detection and monitoring plan utilizing subsurface wells to monitor CO2 movement outside the reservoir;
  4. a performance bond to provide the North Dakota Industrial Commission with funds sufficient to satisfy any regulatory obligation the operator fails to fulfill; and
  5. a closure plan.

 

The Commission must make a final decision regarding an application within one year after the application being deemed complete.

 

Section 43-05-01-08 requires applicants to notify a number of different parties with details of the application on or before the date the application is submitted, including surface land owners, mineral rights holders and other pore space rights holders, within or proximate to the relevant area.

 

The Commission must also publish a public notice specifying details of the application and the time and place that the Commission will hold a hearing on the permit application. Any objections to the application must be made to the Commission in writing.

 

Following receipt of a storage facility permit, section 43-05-01-09 requires the permit holder to apply for an additional permit to drill, deepen, convert or operate a well, or to re-enter a plugged and abandoned well, for storage purposes.

 

No later than the conclusion of well drilling and completion activities, the permit holder must apply for a further permit to operate the injection well.

 

These permits must be issued by the Commission following review and approval of the applications, and will be valid for twelve months from the date of issue. 

Article/Section No.

Section 43-05-01-05
Section 43-05-01-06
Section 43-05-01-07
Section 43-05-01-08
Section 43-05-01-09
Section 43-05-01-10
Section 43-05-01-12

Instrument Text

43-05-01-05. Storage facility permit.
1.
An application for a permit must include the following:
a.
A site map showing the boundaries of the storage reservoir and the location of all proposed wells, proposed cathodic protection boreholes, and surface facilities within the carbon dioxide storage facility;
b.
A technical evaluation of the proposed storage facility, including the following.
(1) The name, description, and average depth of the storage reservoirs;
(2) A geologic and hydrogeologic evaluation of the facility area, including an evaluation of all existing information on all geologic strata overlying the storage reservoir, including the immediate caprock containment characteristics and all subsurface zones to be used for monitoring. The evaluation must include any available geophysical data and assessments of any regional tectonic activity, local seismicity and regional or local fault zones, and a comprehensive description of local and regional structural or stratigraphic features. The evaluation must describe the storage reservoir’s mechanisms of geologic connement, including rock properties, regional pressure gradients, structural features, and adsorption characteristics with regard to the ability of that connement to prevent migration of carbon dioxide beyond the proposed storage reservoir. The evaluation must also identify any productive existing or potential mineral zones occurring within the facility area and any freshwater in the facility area and within one mile [1.61 kilometers] of its outside boundary. The evaluation must include exhibits and plan view maps showing the following:
(a) All wells, including water, oil, and natural gas exploration and development wells, and other manmade subsurface structures and activities, including coal mines, within the facility area and within one mile [1.61 kilometers] of its outside boundary;
(b) All manmade surface structures that are intended for temporary or permanent human occupancy within the facility area and within one mile [1.61 kilometers] of its outside boundary;
(c) Any regional or local faulting;
(d) An isopach map of the storage reservoirs;
(e) An isopach map of the primary and any secondary containment barrier for the storage reservoir;
(f) A structure map of the top and base of the storage reservoirs;
(g) Identication of all structural spill points or stratigraphic discontinuities controlling the isolation of stored carbon dioxide and associated uids;
(h) Evaluation of the potential displacement of in situ water and the potential impact on ground water resources, if any; and
(i) Structural and stratigraphic cross sections that describe the geologic conditions at the storage reservoir or reservoirs;
(3) A review of the data of public record for all wells within the facility area, which penetrate the storage reservoir or primary or secondary seals overlying the reservoir, and all wells within the facility area and within one mile [1.61 kilometers], or any other distances deemed necessary by the commission, of the facility area’s boundary. This review must determine if all abandoned wells have been plugged in a manner that prevents the carbon dioxide or associated uids from escaping from the storage reservoir. The review required under this paragraph shall be conducted by a geologist or engineer;
(4) The proposed calculated maximum volume and areal extent for the storage reservoir using a method acceptable to and led with the commission; and
(5) The proposed maximum bottom hole injection pressure to be utilized at the reservoir. The maximum allowed injection pressure, measured in pounds per square inch gauge, shall be approved by the commission and specied in the permit. In approving a maximum injection pressure limit, the commission shall consider the results of well tests and other studies that assess the risks of tensile failure and shear failure. The commission shall approve limits that, with a reasonable degree of certainty, will avoid initiating a new fracture or propagating an existing fracture in the conning zone or cause the movement of injection or formation uids into an underground source of drinking water;
c. The extent of the pore space that will be occupied by carbon dioxide as determined by utilizing all appropriate geologic and reservoir engineering information and reservoir analysis, which may include various computational models if appropriate for reservoir characterization, and the projected response and storage capacity of the geologic storage unit;
d. A detailed description of the storage facility’s public safety and emergency response plan. The plan must detail the safety procedures concerning the facility and residential, commercial, and public land use within one mile [1.61 kilometers], or any other distance set by the commission, of the outside boundary of the area. The public safety and emergency response procedures must include contingency plans for carbon dioxide leakage from any well, ow lines, or other facility and identify specic contractors and equipment vendors capable of providing necessary services and equipment to respond to such leaks or loss of containment from the storage reservoir. These emergency response procedures must be reviewed and updated annually;
e.
A detailed worker safety plan that addresses carbon dioxide safety training and safe working procedures at the storage facility;
f. A corrosion monitoring and prevention plan for all wells and surface facilities;
g.
A leak detection and monitoring plan for all wells and surface facilities. The plan must:
(1) Identify the potential for release to the atmosphere;
(2) Identify potential degradation of ground water resources with particular emphasis on underground sources of drinking water; and
(3) Identify potential migration of carbon dioxide into any mineral zone in the facility area;
h. A leak detection and monitoring plan utilizing subsurface observation wells to monitor any movement of the carbon dioxide outside of the storage reservoir. This may include the collection of baseline information of carbon dioxide background concentrations in ground water, surface soils, and chemical composition of in situ waters within the facility area and the storage reservoir and within one mile [1.61 kilometers] of the facility area’s outside boundary. Provisions in the plan will be dictated by the site characteristics as documented by materials submitted in support of the permit application but must:
(1) Identify the potential for release to the atmosphere;
(2) Identify potential degradation of ground water resources with particular emphasis on underground sources of drinking water; and
(3) Identify potential migration of carbon dioxide into any mineral zone in the facility area;
i. The proposed well casing and cementing program detailing compliance with section 43-05-01-09;
j. A performance bond in an amount and under terms set by the commission to provide it with funds sufcient to satisfy any regulatory obligation that the storage operator fails to fulll. If the commission uses a part of the bond, the storage operator shall immediately replenish the bond or secure a new bond to ensure that the full bond amount set by the commission is maintained;
k. Any other information that the commission requires; and l. A closure plan.
2. Any person ling a permit application or an application to amend an existing permit shall pay a processing fee. The fee will be based on actual processing costs, including computer data processing costs, incurred by the commission.
a.
A record of all application processing costs incurred must be maintained by the commission.
b. Promptly after receiving an application, the commission shall prepare and submit to the applicant an estimate of the processing fee and a payment billing schedule.
c.
After the commission’s work on the application has concluded, a nal statement will be sent to the applicant. The full processing fee must be paid before the commission issues its nal decision on an application.
d. The applicant must pay the processing fee regardless of whether a permit is issued or denied, or the application withdrawn.
3. The commission has one year from the date an application is deemed complete to issue a nal decision regarding the application.
History: Effective April 1, 2010. General Authority: NDCC 28-32-02 Law Implemented: NDCC 38-22
43-05-01-06. Storage facility permit transfer.
1. Notication. The storage operator and proposed transferee shall notify the commission in writing of any proposed permit transfer. The notice must contain the following:
a.
The name and address of the person to whom the permit is to be transferred.
b. The name of the permit subject to transfer and location of the storage facility and a description of the land upon which the storage facility is situated.
c. d. Performance bonds required by section 43-05-01-05.
The date that the storage operator desires the proposed transfer to occur.
2. Commission review. The commission shall review the proposed transfer to ensure that the purposes of North Dakota Century Code chapter 38-22 are not compromised but are promoted. For good cause, the commission may deny a transfer request, delay acting on it, and place conditions on its approval.
3. Commission approval required. A permit transfer can occur only upon the commission’s written order.
History: Effective April 1, 2010. General Authority: NDCC 28-32-02 Law Implemented: NDCC 38-22
43-05-01-07. Amending storage facility permit.
1. The following changes to a permit require compliance with all the provisions of section 43-05-01-05:
a. Any change in the areal extent of the storage facility;
b. Using a reservoir not specied in the permit;
c. Any increase in the carbon dioxide storage volume; and
d. Any change in the chemical composition of the injected carbon dioxide.
2. Signicant changes to operational methods and procedures contained in the permit or upon which the permit was based will require compliance with subsection 2 of section 43-05-01-05.
History: Effective April 1, 2010. General Authority: NDCC 28-32-02 Law Implemented: NDCC 38-22
43-05-01-08. Amalgamation of subsurface rights to operate geological storage unit.
1. On or before the date a permit application is led with the commission, the applicant shall give the following notice that it has led the application:
a. Each operator of mineral extraction activities within the facility and within one-half mile [.80 kilometer] outside of the facility area;
b. Each mineral lessee of record within the facility area and within one-half mile [.80 kilometer] of its outside boundary;
c. Each owner of record of the surface within the facility area and one-half mile [.80 kilometer] of its outside boundary;
d. Each owner of record of minerals within the project area and within one-half mile [.80 kilometer] of its outside boundary;
e. Each owner and each lessee of record of the pore space within the storage reservoir and within one-half mile [.80 kilometer] of the reservoir’s boundary; and
f. Any other persons as required by the commission.
2. The notice must contain:
a. A legal description of the land overlying the storage reservoir.
b. The date, time, and place that the commission will hold a hearing on the permit application.
c. A statement that a copy of the permit application may be obtained from the commission.
d. A notice of the right to le comments.
3. The commission shall give at least fteen days’ notice, except in an emergency, of the time and place of hearing thereon by one publication of such notice in a newspaper of general circulation in Bismarck, North Dakota, and in a newspaper of general circulation in the county where the land affected or some part thereof is situated, unless in some particular proceeding a longer period of time or a different method of publication is required by law, in which event such period of time and method of publication shall prevail. The notice shall issue in the name of the commission and shall conform to the other requirements provided by law. The public notice must state that an application has been led with the commission for permission to store carbon dioxide and describe the location of the proposed facility area and the date, time, and place of the hearing before the commission at which time the merits of the application will be considered.
4. Objections received by the commission shall be in writing and specify the nature of the objection.
History: Effective April 1, 2010. General Authority: NDCC 28-32-02 Law Implemented: NDCC 38-22
43-05-01-09. Well permit application requirements.
1. Following receipt of a storage facility permit, the storage operator shall submit applications to drill, deepen, convert, operate, or, upon demonstration of mechanical integrity, reenter a previously plugged and abandoned well for storage purposes.
2. Application for permits to drill, deepen, convert, operate, or reenter a well must be submitted on a form prescribed by the commission and must include at a minimum:
a.
A plat prepared by a licensed land surveyor showing the location of the proposed injection or subsurface observation well. The plat must be drawn to the scale of one inch [25.4 millimeters] equals one thousand feet [304.8 meters], unless otherwise directed by the commission and must show distances from the proposed well to the nearest storage reservoir boundary. The plat must show the latitude and longitude of the well in decimal degrees to ve signicant digits. The plat must also show the location and status of all other wells that have been drilled within one-fourth mile [402.34 meters], or any other distance deemed necessary by the commission, of the proposed injection or subsurface observation well;
b. The drilling, completion, or conversion procedures for the proposed injection or subsurface observation well;
c.
A well bore schematic showing the name, description, and depth of the storage reservoirs and the depth of the deepest underground source of drinking water; a description of the casing in the injection or subsurface observation well, or the proposed casing program, including a full description of cement already in place or as proposed; and the proposed method of testing casing before use of the injection well;
d. A geophysical log, if available, through the storage reservoir to be penetrated by the proposed injection well or if an injection or subsurface observation well is to be drilled, a complete log through the reservoir from a nearby well is permissible. Such log must be annotated to identify the estimated location of the base of the deepest underground source of drinking water, showing the stratigraphic position and thickness of all conning strata above the reservoirs and the stratigraphic position and thickness of the reservoir.
3. No later than the conclusion of well drilling and completion activities, a permit application shall be submitted to operate an injection well and must include at a minimum:
a.
A schematic diagram of the surface injection system and its appurtenances;
b. A nal well bore diagram showing the name, description, and depths of the storage reservoir and the base of the deepest underground source of drinking water and a diagram of the well depicting the casing, cementing, perforation, tubing, and plug and packer records associated with the construction of the well;
c.
The well’s complete dual induction or equivalent log through the storage reservoir. Such a log shall be run prior to setting casing through the storage reservoir. Logs must be annotated to identify the estimated location of the base of the deepest underground source of drinking water, showing the stratigraphic position and thickness of all conning strata above the storage reservoir and the reservoir’s stratigraphic position and thickness unless that information has been previously submitted. When approved in advance by the commission, this information can be demonstrated with a dual induction or equivalent log run in a nearby well or by such other method acceptable to the commission;
d. An afdavit specifying the chemical constituents of the injection stream other than carbon dioxide and their relative proportions;
e.
Proof that the long string of casing of the well is cemented adequately so that the carbon dioxide is conned to the storage reservoirs. Such proof must be provided in the form of a cement bond log or the results of a uid movement study or such other method specied by the commission; and
f. The results of a mechanical-integrity test, if applicable to well type, of the casing in accordance with the pressure test requirements of this section if a test was run within one calendar year preceding the request for a conversion permit for a previously drilled well.
History: Effective April 1, 2010. General Authority: NDCC 28-32-02 Law Implemented: NDCC 38-22
43-05-01-10. Well permit.
1. Upon review and approval of the application to drill, deepen, convert, reenter, or operate an injection well, submitted in accordance with section 43-05-01-09, the commission shall issue permits to drill and operate.
2. A permit shall expire twelve months from the date of issue if the permitted well has not been drilled, deepened, reentered, operated, or converted.
History: Effective April 1, 2010. General Authority: NDCC 28-32-02 Law Implemented: NDCC 38-22
[…]
3-05-01-12. Amendment to carbon dioxide storage facility well permits.
1. An amendment to a well permit for a change in injection formation, or modifying the maximum allowable injection rate and pressure, must comply with the provisions of section 43-05-01-05.
2. Modifying well construction must comply with section 43-05-01-09.
History: Effective April 1, 2010. General Authority: NDCC 28-32-02 Law Implemented: NDCC 38-22

IV. Operating and closing storage facilities
Monitoring, reporting and verification

Summary

Section 43-05-01-03 of the North Dakota Storage Administration Statute requires a range of parties including, among others, owners, operators, drilling contractors and service companies to keep, for at least six years, appropriate books and records covering their storage-related operations in North Dakota, from which those parties can make and substantiate the reports required by the Statute.

The North Dakota Industrial Commission and its authorised agents are entitled under section 43-05-01-04 to access all storage facility records, wherever located.

Under section 43-05-01-05, applications for permits to operate storage facilities must include, among other things:
1. a leak detection and monitoring plan for wells and surface facilities; and
2. a leak detection and monitoring plan utilizing subsurface wells to monitor CO2 movement outside the reservoir.

Section 43-05-01-18 requires operators to submit:
1. quarterly reports specifying, among other things, CO2 injection volumes, rates and composition; and
2. annual reports summarizing the quarterly reports, updating the projected storage reservoir response and capacity and explaining any anomalies relative to predicted behaviour.

The operator must also, under section 43-05-01-19, submit a monitoring plan for the closure period, while the Commission, in conjunction with the operator, must develop a continuing monitoring plan for the post-closure period. All approved subsurface observation and ground water monitoring wells must remain in place for continued monitoring during the closure period.

Article/Section No.

Section 43-05-01-03
Section 43-05-01-04
Section 43-05-01-05
Section 43-05-01-18
Section 43-05-01-19

Instrument Text

43-05-01-03. Books and records to be kept to substantiate reports. All owners, operators, drilling contractors, drillers, service companies, or other persons engaged in drilling, completing, operating, or servicing storage facilities shall make and keep appropriate books and records for a period of not less than six years, covering their operations in North Dakota from which they may be able to make and substantiate the reports required by this chapter.
History: Effective April 1, 2010. General Authority: NDCC 28-32-02 Law Implemented: NDCC 38-22
43-05-01-04. Access to records. The industrial commission and the commission’s authorized agents shall have access to all storage facility records wherever located. All owners, operators, drilling contractors, drillers, service companies, or other persons engaged in drilling, completing, operating, or servicing storage facilities shall permit the industrial commission, or its authorized agents, to come upon any lease, property, well, or drilling rig operated or controlled by them, complying with state safety rules and to inspect the records and operation of wells and to conduct sampling and testing. Any information so obtained shall be public information. If requested, copies of storage facility records must be led with the commission.
History: Effective April 1, 2010. General Authority: NDCC 28-32-02 Law Implemented: NDCC 38-22
43-05-01-05. Storage facility permit.
1.
An application for a permit must include the following:
a.
A site map showing the boundaries of the storage reservoir and the location of all proposed wells, proposed cathodic protection boreholes, and surface facilities within the carbon dioxide storage facility;
b.
A technical evaluation of the proposed storage facility, including the following.
(1) The name, description, and average depth of the storage reservoirs;
(2) A geologic and hydrogeologic evaluation of the facility area, including an evaluation of all existing information on all geologic strata overlying the storage reservoir, including the immediate caprock containment characteristics and all subsurface zones to be used for monitoring. The evaluation must include any available geophysical data and assessments of any regional tectonic activity, local seismicity and regional or local fault zones, and a comprehensive description of local and regional structural or stratigraphic features. The evaluation must describe the storage reservoir’s mechanisms of geologic connement, including rock properties, regional pressure gradients, structural features, and adsorption characteristics with regard to the ability of that connement to prevent migration of carbon dioxide beyond the proposed storage reservoir. The evaluation must also identify any productive existing or potential mineral zones occurring within the facility area and any freshwater in the facility area and within one mile [1.61 kilometers] of its outside boundary. The evaluation must include exhibits and plan view maps showing the following:
(a) All wells, including water, oil, and natural gas exploration and development wells, and other manmade subsurface structures and activities, including coal mines, within the facility area and within one mile [1.61 kilometers] of its outside boundary;
(b) All manmade surface structures that are intended for temporary or permanent human occupancy within the facility area and within one mile [1.61 kilometers] of its outside boundary;
(c) Any regional or local faulting;
(d) An isopach map of the storage reservoirs;
(e) An isopach map of the primary and any secondary containment barrier for the storage reservoir;
(f) A structure map of the top and base of the storage reservoirs;
(g) Identication of all structural spill points or stratigraphic discontinuities controlling the isolation of stored carbon dioxide and associated uids;
(h) Evaluation of the potential displacement of in situ water and the potential impact on ground water resources, if any; and
(i) Structural and stratigraphic cross sections that describe the geologic conditions at the storage reservoir or reservoirs;
(3) A review of the data of public record for all wells within the facility area, which penetrate the storage reservoir or primary or secondary seals overlying the reservoir, and all wells within the facility area and within one mile [1.61 kilometers], or any other distances deemed necessary by the commission, of the facility area’s boundary. This review must determine if all abandoned wells have been plugged in a manner that prevents the carbon dioxide or associated uids from escaping from the storage reservoir. The review required under this paragraph shall be conducted by a geologist or engineer;
(4) The proposed calculated maximum volume and areal extent for the storage reservoir using a method acceptable to and led with the commission; and
(5) The proposed maximum bottom hole injection pressure to be utilized at the reservoir. The maximum allowed injection pressure, measured in pounds per square inch gauge, shall be approved by the commission and specied in the permit. In approving a maximum injection pressure limit, the commission shall consider the results of well tests and other studies that assess the risks of tensile failure and shear failure. The commission shall approve limits that, with a reasonable degree of certainty, will avoid initiating a new fracture or propagating an existing fracture in the conning zone or cause the movement of injection or formation uids into an underground source of drinking water;
c. The extent of the pore space that will be occupied by carbon dioxide as determined by utilizing all appropriate geologic and reservoir engineering information and reservoir analysis, which may include various computational models if appropriate for reservoir characterization, and the projected response and storage capacity of the geologic storage unit;
d. A detailed description of the storage facility’s public safety and emergency response plan. The plan must detail the safety procedures concerning the facility and residential, commercial, and public land use within one mile [1.61 kilometers], or any other distance set by the commission, of the outside boundary of the area. The public safety and emergency response procedures must include contingency plans for carbon dioxide leakage from any well, ow lines, or other facility and identify specic contractors and equipment vendors capable of providing necessary services and equipment to respond to such leaks or loss of containment from the storage reservoir. These emergency response procedures must be reviewed and updated annually;
e.
A detailed worker safety plan that addresses carbon dioxide safety training and safe working procedures at the storage facility;
f. A corrosion monitoring and prevention plan for all wells and surface facilities;
g.
A leak detection and monitoring plan for all wells and surface facilities. The plan must:
(1) Identify the potential for release to the atmosphere;
(2) Identify potential degradation of ground water resources with particular emphasis on underground sources of drinking water; and
(3) Identify potential migration of carbon dioxide into any mineral zone in the facility area;
h. A leak detection and monitoring plan utilizing subsurface observation wells to monitor any movement of the carbon dioxide outside of the storage reservoir. This may include the collection of baseline information of carbon dioxide background concentrations in ground water, surface soils, and chemical composition of in situ waters within the facility area and the storage reservoir and within one mile [1.61 kilometers] of the facility area’s outside boundary. Provisions in the plan will be dictated by the site characteristics as documented by materials submitted in support of the permit application but must:
(1) Identify the potential for release to the atmosphere;
(2) Identify potential degradation of ground water resources with particular emphasis on underground sources of drinking water; and
(3) Identify potential migration of carbon dioxide into any mineral zone in the facility area;
i. The proposed well casing and cementing program detailing compliance with section 43-05-01-09;
j. A performance bond in an amount and under terms set by the commission to provide it with funds sufcient to satisfy any regulatory obligation that the storage operator fails to fulll. If the commission uses a part of the bond, the storage operator shall immediately replenish the bond or secure a new bond to ensure that the full bond amount set by the commission is maintained;
k. Any other information that the commission requires; and l. A closure plan.
2. Any person ling a permit application or an application to amend an existing permit shall pay a processing fee. The fee will be based on actual processing costs, including computer data processing costs, incurred by the commission.
a.
A record of all application processing costs incurred must be maintained by the commission.
b. Promptly after receiving an application, the commission shall prepare and submit to the applicant an estimate of the processing fee and a payment billing schedule.
c.
After the commission’s work on the application has concluded, a nal statement will be sent to the applicant. The full processing fee must be paid before the commission issues its nal decision on an application.
d. The applicant must pay the processing fee regardless of whether a permit is issued or denied, or the application withdrawn.
3. The commission has one year from the date an application is deemed complete to issue a nal decision regarding the application.
History: Effective April 1, 2010. General Authority: NDCC 28-32-02 Law Implemented: NDCC 38-22
[…]
43-05-01-18. Quarterly and annual reporting requirements.
1. The storage operator shall le with the commission quarterly, or more frequently if the commission requires, a report on the volume of carbon dioxide injected into or withdrawn since the last report, the average injection rate, average composition of the carbon dioxide stream, wellhead and downhole temperature and pressure data, or other pertinent operational parameters as required by the commission.
2. The quarterly report is due thirty days after the end of the quarter.
3. The storage operator shall le with the commission an annual report that summarizes the quarterly reports and that provides updated projections of the response and storage capacity of the storage reservoir. The projections must be based on actual reservoir operational experience, including all new geologic data and information. All anomalies in predicted behavior as indicated in permit conditions or in the assumptions upon which the permit was issued must be explained and, if necessary, the permit conditions amended in accordance with section 43-05-01-07. The annual report is due forty-ve days after the end of the year.
History: Effective April 1, 2010. General Authority: NDCC 28-32-02 Law Implemented: NDCC 38-22
43-05-01-19. Facility closure.
1. Prior to the conclusion of the operational period, and at a time set by the commission, the storage operator must provide an assessment of the operations conducted during the operational period, including the volumes injected, volumes extracted, all chemical analyses conducted, and a summary of all monitoring efforts. The report must also document the stored carbon dioxide’s location and characteristics and predict how it might move during the closure period.
2. The storage operator shall submit a monitoring plan for the closure period for approval by the commission, including a proposal specifying which wells will be plugged and which will remain unplugged to be used as subsurface observation wells.
3. Following well plugging and removal of all surface equipment, the surface must be reclaimed to the commission’s specications that will, in general, return the land as closely as practicable to original condition.
4. The well casing must be cut off at a depth of ve feet [1.52 meters] below the surface and a steel plate welded on top identifying the well name and that it was used for carbon dioxide injection.
5. The commission shall develop in conjunction with the storage operator a continuing monitoring plan for the postclosure period, including a review and nal approval of wells to be plugged.
6. Upon project closure, all wells designated by the commission must be properly plugged and abandoned; all storage facility equipment, appurtenances, and structures removed; and the project area reclaimed to the commission’s specications that will, in general, return the land as closely as practicable to original condition.
7. All subsurface observation and ground water monitoring wells as approved in the closure plan must remain in place for continued monitoring during the closure period.
8. Before the closure period ends and at a time set by the commission, the storage operator shall provide a nal assessment of the stored carbon dioxide’s location, characteristics, and its future movement and location within the storage reservoir.
9. Wells other than those deemed as subsurface observation wells per subsection 2 shall be plugged by the storage operator in accordance with section 43-02-03-34.
History: Effective April 1, 2010. General Authority: NDCC 28-32-02 Law Implemented: NDCC 38-22

Inspections

Summary

Under section 43-05-01-04 of the North Dakota Storage Administration Statute, the North Dakota Industrial Commission and its authorised agents are entitled to access all storage facility records, wherever located. Owners, operators and other parties engaged in activities with storage facilities must permit the Commission and its agents to enter and inspect any lease, property, well or drilling rig, and inspect records and operations and take samples. 

Article/Section No.

Section 43-05-01-04

Instrument Text

43-05-01-04. Access to records. The industrial commission and the commission’s authorized agents shall have access to all storage facility records wherever located. All owners, operators, drilling contractors, drillers, service companies, or other persons engaged in drilling, completing, operating, or servicing storage facilities shall permit the industrial commission, or its authorized agents, to come upon any lease, property, well, or drilling rig operated or controlled by them, complying with state safety rules and to inspect the records and operation of wells and to conduct sampling and testing. Any information so obtained shall be public information. If requested, copies of storage facility records must be led with the commission.
History: Effective April 1, 2010. General Authority: NDCC 28-32-02 Law Implemented: NDCC 38-22

Corrective and remedial measures

Summary

Under section 43-05-01-05 of the North Dakota Storage Administration Statute, applications for permits to operate storage facilities must include, among other things:

  1. a leak detection and monitoring plan for wells and surface facilities; and
  2. a leak detection and monitoring plan utilizing subsurface wells to monitor CO2 movement outside the reservoir.

Section 43-05-01-14 requires the fitting of leak detection equipment to wells and obliges operators to immediately report any leak detected at a well or surface facility, pressure changes or other data that may indicate a leak in a storage reservoir, or any other indication that a facility is not containing CO2

Article/Section No.

Section 43-05-01-05
Section 43-05-01-14

Instrument Text

43-05-01-05. Storage facility permit.
1.
An application for a permit must include the following:
a.
A site map showing the boundaries of the storage reservoir and the location of all proposed wells, proposed cathodic protection boreholes, and surface facilities within the carbon dioxide storage facility;
b.
A technical evaluation of the proposed storage facility, including the following.
(1) The name, description, and average depth of the storage reservoirs;
(2) A geologic and hydrogeologic evaluation of the facility area, including an evaluation of all existing information on all geologic strata overlying the storage reservoir, including the immediate caprock containment characteristics and all subsurface zones to be used for monitoring. The evaluation must include any available geophysical data and assessments of any regional tectonic activity, local seismicity and regional or local fault zones, and a comprehensive description of local and regional structural or stratigraphic features. The evaluation must describe the storage reservoir’s mechanisms of geologic connement, including rock properties, regional pressure gradients, structural features, and adsorption characteristics with regard to the ability of that connement to prevent migration of carbon dioxide beyond the proposed storage reservoir. The evaluation must also identify any productive existing or potential mineral zones occurring within the facility area and any freshwater in the facility area and within one mile [1.61 kilometers] of its outside boundary. The evaluation must include exhibits and plan view maps showing the following:
(a) All wells, including water, oil, and natural gas exploration and development wells, and other manmade subsurface structures and activities, including coal mines, within the facility area and within one mile [1.61 kilometers] of its outside boundary;
(b) All manmade surface structures that are intended for temporary or permanent human occupancy within the facility area and within one mile [1.61 kilometers] of its outside boundary;
(c) Any regional or local faulting;
(d) An isopach map of the storage reservoirs;
(e) An isopach map of the primary and any secondary containment barrier for the storage reservoir;
(f) A structure map of the top and base of the storage reservoirs;
(g) Identication of all structural spill points or stratigraphic discontinuities controlling the isolation of stored carbon dioxide and associated uids;
(h) Evaluation of the potential displacement of in situ water and the potential impact on ground water resources, if any; and
(i) Structural and stratigraphic cross sections that describe the geologic conditions at the storage reservoir or reservoirs;
(3) A review of the data of public record for all wells within the facility area, which penetrate the storage reservoir or primary or secondary seals overlying the reservoir, and all wells within the facility area and within one mile [1.61 kilometers], or any other distances deemed necessary by the commission, of the facility area’s boundary. This review must determine if all abandoned wells have been plugged in a manner that prevents the carbon dioxide or associated uids from escaping from the storage reservoir. The review required under this paragraph shall be conducted by a geologist or engineer;
(4) The proposed calculated maximum volume and areal extent for the storage reservoir using a method acceptable to and led with the commission; and
(5) The proposed maximum bottom hole injection pressure to be utilized at the reservoir. The maximum allowed injection pressure, measured in pounds per square inch gauge, shall be approved by the commission and specied in the permit. In approving a maximum injection pressure limit, the commission shall consider the results of well tests and other studies that assess the risks of tensile failure and shear failure. The commission shall approve limits that, with a reasonable degree of certainty, will avoid initiating a new fracture or propagating an existing fracture in the conning zone or cause the movement of injection or formation uids into an underground source of drinking water;
c. The extent of the pore space that will be occupied by carbon dioxide as determined by utilizing all appropriate geologic and reservoir engineering information and reservoir analysis, which may include various computational models if appropriate for reservoir characterization, and the projected response and storage capacity of the geologic storage unit;
d. A detailed description of the storage facility’s public safety and emergency response plan. The plan must detail the safety procedures concerning the facility and residential, commercial, and public land use within one mile [1.61 kilometers], or any other distance set by the commission, of the outside boundary of the area. The public safety and emergency response procedures must include contingency plans for carbon dioxide leakage from any well, ow lines, or other facility and identify specic contractors and equipment vendors capable of providing necessary services and equipment to respond to such leaks or loss of containment from the storage reservoir. These emergency response procedures must be reviewed and updated annually;
e.
A detailed worker safety plan that addresses carbon dioxide safety training and safe working procedures at the storage facility;
f. A corrosion monitoring and prevention plan for all wells and surface facilities;
g.
A leak detection and monitoring plan for all wells and surface facilities. The plan must:
(1) Identify the potential for release to the atmosphere;
(2) Identify potential degradation of ground water resources with particular emphasis on underground sources of drinking water; and
(3) Identify potential migration of carbon dioxide into any mineral zone in the facility area;
h. A leak detection and monitoring plan utilizing subsurface observation wells to monitor any movement of the carbon dioxide outside of the storage reservoir. This may include the collection of baseline information of carbon dioxide background concentrations in ground water, surface soils, and chemical composition of in situ waters within the facility area and the storage reservoir and within one mile [1.61 kilometers] of the facility area’s outside boundary. Provisions in the plan will be dictated by the site characteristics as documented by materials submitted in support of the permit application but must:
(1) Identify the potential for release to the atmosphere;
(2) Identify potential degradation of ground water resources with particular emphasis on underground sources of drinking water; and
(3) Identify potential migration of carbon dioxide into any mineral zone in the facility area;
i. The proposed well casing and cementing program detailing compliance with section 43-05-01-09;
j. A performance bond in an amount and under terms set by the commission to provide it with funds sufcient to satisfy any regulatory obligation that the storage operator fails to fulll. If the commission uses a part of the bond, the storage operator shall immediately replenish the bond or secure a new bond to ensure that the full bond amount set by the commission is maintained;
k. Any other information that the commission requires; and l. A closure plan.
2. Any person ling a permit application or an application to amend an existing permit shall pay a processing fee. The fee will be based on actual processing costs, including computer data processing costs, incurred by the commission.
a.
A record of all application processing costs incurred must be maintained by the commission.
b. Promptly after receiving an application, the commission shall prepare and submit to the applicant an estimate of the processing fee and a payment billing schedule.
c.
After the commission’s work on the application has concluded, a nal statement will be sent to the applicant. The full processing fee must be paid before the commission issues its nal decision on an application.
d. The applicant must pay the processing fee regardless of whether a permit is issued or denied, or the application withdrawn.
3. The commission has one year from the date an application is deemed complete to issue a nal decision regarding the application.
History: Effective April 1, 2010. General Authority: NDCC 28-32-02 Law Implemented: NDCC 38-22
[…]
43-05-01-14. Leak detection and reporting.
1. Leak detectors or other approved leak detection methodologies must be placed at the wellhead of all injection and subsurface observation wells. Leak detectors must be integrated, where applicable, with automated warning systems and must be inspected and tested on a semiannual basis and, if defective, shall be repaired or replaced within ten days. Each repaired or replaced detector must be retested if required by the commission. An extension of time for repair or replacement of a leak detector may be granted upon a showing of good cause by the storage operator. A record of each inspection must include the inspection results, must be maintained by the operator for at least six years, and must be made available to the commission upon request.
2. The storage operator must immediately report to the commission any leak detected at any well or surface facility.
3. The storage operator must immediately report to the commission any pressure changes or other monitoring data from subsurface observation wells that indicate the presence of leaks in the storage reservoir.
4. The storage operator must immediately report to the commission any other indication that the storage facility is not containing carbon dioxide, whether the lack of containment concerns the storage reservoir, surface equipment, or any other aspect of the storage facility.
History:Effective April 1, 2010.
General Authority: NDCC 28-32-02
Law Implemented: NDCC 38-22

Operational liabilities

Summary

Section 43-05-01-11 of the North Dakota Storage Administration Statute specifies a number of standards that must be complied with in well establishment and operation, as well as tests required to be undertaken in order to verify compliance with these standards.

If a well fails to demonstrate mechanical integrity, the operator must immediately:

  1. shut in the well;
  2. report the failure to the North Dakota Industrial Commission; and
  3. commence isolation and repair of the leak;

and within ninety days or as directed by the Commission, either:

  1. repair and retest the well to demonstrate mechanical integrity;
  2. plug the well; or

comply with an alternative plan approved by the Commission. 

Article/Section No.

Section 43-05-01-11

Instrument Text

43-05-01-11. Well operational standards.
1. Surface casing in all newly drilled carbon dioxide injection and subsurface observation wells drilled below the underground source of drinking water must be set fty feet [15.24 meters] below the base of the Fox Hills formation and cemented pursuant to section 43-02-03-21.
2. The long string casing in all injection and subsurface observation wells must be cemented pursuant to section 43-02-03-21.
3. Any liner set in the well bore must be cemented with a sufcient volume of cement to ll the annular space.
4. All cements used in the cementing of casings in injection and subsurface observation wells must be of sufcient quality to maintain well integrity in the carbon dioxide injection environment.
5. All casings must meet the standards specied in either of the following documents, which are hereby adopted by reference:
a.
The most recent American petroleum institute bulletin on performance properties of casing, tubing, and drill pipe;
b. Specication for casing and tubing (United States customary units), American petroleum institute specication 5CT, as published by the American petroleum institute in October 1998;
c.
North Dakota Administrative Code section 43-02-03-21; or d. Other casing as approved by the commission.
6. All casings used in new wells must be new casing or reconditioned casing of a quality equivalent to new casing and that has been pressure-tested in accordance with the requirements of subsection 5.
For new casings, the pressure test conducted at the manufacturing mill or fabrication plant may be used to fulll the requirements of subsection 5.
7. The location and amount of cement behind casings must be veried by a cement bond log, cement evaluation log, or any other evaluation method approved by the commission.
8. All injection wells must be completed with and injection must be through tubing and packer.
9. All tubing strings must meet the standards contained in subsection 5. All tubing must be new tubing or reconditioned tubing of a quality equivalent to new tubing and that has been pressure-tested. For new tubing, the pressure test conducted at the manufacturing mill or fabrication plant may be used to fulll this requirement.
10. All wellhead components, including the casinghead and tubing head, valves, and ttings, must be made of steel having operating pressure ratings sufcient to exceed the maximum injection pressures computed at the wellhead and to withstand the corrosive nature of carbon dioxide. Each ow line connected to the wellhead must be equipped with a manually operated positive shutoff valve located on or near the wellhead.
11. All packers, packer elements, or similar equipment critical to the containment of carbon dioxide must be of a quality to withstand exposure to carbon dioxide.
12. All injection wells must have at all times an accurate, operating pressure gauge or pressure recording device. Gauges must be calibrated as required by the commission and evidence of such calibration must be available to the commission upon request.
13. All newly drilled wells must establish internal and external mechanical integrity as specied by the commission and demonstrate continued mechanical integrity through periodic testing as determined by the commission. All other wells to be used as injection wells must demonstrate mechanical integrity as specied by the commission prior to use for injection and be tested on an ongoing basis as determined by the commission using these methods:
a.
Pressure tests. Injection wells, equipped with tubing and packer as required, must be pressure-tested as required by the commission. A testing plan must be submitted to the commission for prior approval. At a minimum, the pressure must be applied to the tubing casing annulus at the surface for a period of thirty minutes and must have no decrease in pressure greater than ten percent of the required minimum test pressure. The packer must be set at a depth at which the packer will be opposite a cemented interval of the long string casing and must be set no more than fty feet [15.24 meters] above the uppermost perforation or open hole for the storage reservoirs; and
b. The commission may require additional testing, such as a bottom hole temperature and pressure measurements, tracer survey, temperature survey, gamma ray log, neutron log, noise log, casing inspection log, or a combination of two or more of these surveys and logs, to demonstrate mechanical integrity.
14. The commission has the authority to witness all mechanical integrity tests conducted by the storage operator.
15. If an injection well fails to demonstrate mechanical integrity by an approved method, the storage operator shall immediately shut in the well, report the failure to the commission, and commence isolation and repair of the leak. The operator shall, within ninety days or as otherwise directed by the commission, perform one of the following:
a. Properly plug the well; or
b.Comply with an alternative plan approved by the commission.
c. Repair and retest the well to demonstrate mechanical integrity;
16. All injection wells must be equipped with shutoff systems designed to alert the operator and shut in wells when necessary.
17. Additional requirements may be required by the commission to address specic circumstances and types of projects.

Financial security

Summary

Under section 43-05-01-05 of the North Dakota Storage Administration Statute, applications for permits to operate storage facilities must include, among other things, a performance bond to provide the North Dakota Industrial Commission with funds sufficient to satisfy any regulatory obligation the operator fails to fulfill.

Article/Section No.

Section 43-05-01-05

Instrument Text

43-05-01-05. Storage facility permit.
1.
An application for a permit must include the following:
a.
A site map showing the boundaries of the storage reservoir and the location of all proposed wells, proposed cathodic protection boreholes, and surface facilities within the carbon dioxide storage facility;
b.
A technical evaluation of the proposed storage facility, including the following.
(1) The name, description, and average depth of the storage reservoirs;
(2) A geologic and hydrogeologic evaluation of the facility area, including an evaluation of all existing information on all geologic strata overlying the storage reservoir, including the immediate caprock containment characteristics and all subsurface zones to be used for monitoring. The evaluation must include any available geophysical data and assessments of any regional tectonic activity, local seismicity and regional or local fault zones, and a comprehensive description of local and regional structural or stratigraphic features. The evaluation must describe the storage reservoir’s mechanisms of geologic connement, including rock properties, regional pressure gradients, structural features, and adsorption characteristics with regard to the ability of that connement to prevent migration of carbon dioxide beyond the proposed storage reservoir. The evaluation must also identify any productive existing or potential mineral zones occurring within the facility area and any freshwater in the facility area and within one mile [1.61 kilometers] of its outside boundary. The evaluation must include exhibits and plan view maps showing the following:
(a) All wells, including water, oil, and natural gas exploration and development wells, and other manmade subsurface structures and activities, including coal mines, within the facility area and within one mile [1.61 kilometers] of its outside boundary;
(b) All manmade surface structures that are intended for temporary or permanent human occupancy within the facility area and within one mile [1.61 kilometers] of its outside boundary;
(c) Any regional or local faulting;
(d) An isopach map of the storage reservoirs;
(e) An isopach map of the primary and any secondary containment barrier for the storage reservoir;
(f) A structure map of the top and base of the storage reservoirs;
(g) Identication of all structural spill points or stratigraphic discontinuities controlling the isolation of stored carbon dioxide and associated uids;
(h) Evaluation of the potential displacement of in situ water and the potential impact on ground water resources, if any; and
(i) Structural and stratigraphic cross sections that describe the geologic conditions at the storage reservoir or reservoirs;
(3) A review of the data of public record for all wells within the facility area, which penetrate the storage reservoir or primary or secondary seals overlying the reservoir, and all wells within the facility area and within one mile [1.61 kilometers], or any other distances deemed necessary by the commission, of the facility area’s boundary. This review must determine if all abandoned wells have been plugged in a manner that prevents the carbon dioxide or associated uids from escaping from the storage reservoir. The review required under this paragraph shall be conducted by a geologist or engineer;
(4) The proposed calculated maximum volume and areal extent for the storage reservoir using a method acceptable to and led with the commission; and
(5) The proposed maximum bottom hole injection pressure to be utilized at the reservoir. The maximum allowed injection pressure, measured in pounds per square inch gauge, shall be approved by the commission and specied in the permit. In approving a maximum injection pressure limit, the commission shall consider the results of well tests and other studies that assess the risks of tensile failure and shear failure. The commission shall approve limits that, with a reasonable degree of certainty, will avoid initiating a new fracture or propagating an existing fracture in the conning zone or cause the movement of injection or formation uids into an underground source of drinking water;
c. The extent of the pore space that will be occupied by carbon dioxide as determined by utilizing all appropriate geologic and reservoir engineering information and reservoir analysis, which may include various computational models if appropriate for reservoir characterization, and the projected response and storage capacity of the geologic storage unit;
d. A detailed description of the storage facility’s public safety and emergency response plan. The plan must detail the safety procedures concerning the facility and residential, commercial, and public land use within one mile [1.61 kilometers], or any other distance set by the commission, of the outside boundary of the area. The public safety and emergency response procedures must include contingency plans for carbon dioxide leakage from any well, ow lines, or other facility and identify specic contractors and equipment vendors capable of providing necessary services and equipment to respond to such leaks or loss of containment from the storage reservoir. These emergency response procedures must be reviewed and updated annually;
e.
A detailed worker safety plan that addresses carbon dioxide safety training and safe working procedures at the storage facility;
f. A corrosion monitoring and prevention plan for all wells and surface facilities;
g.
A leak detection and monitoring plan for all wells and surface facilities. The plan must:
(1) Identify the potential for release to the atmosphere;
(2) Identify potential degradation of ground water resources with particular emphasis on underground sources of drinking water; and
(3) Identify potential migration of carbon dioxide into any mineral zone in the facility area;
h. A leak detection and monitoring plan utilizing subsurface observation wells to monitor any movement of the carbon dioxide outside of the storage reservoir. This may include the collection of baseline information of carbon dioxide background concentrations in ground water, surface soils, and chemical composition of in situ waters within the facility area and the storage reservoir and within one mile [1.61 kilometers] of the facility area’s outside boundary. Provisions in the plan will be dictated by the site characteristics as documented by materials submitted in support of the permit application but must:
(1) Identify the potential for release to the atmosphere;
(2) Identify potential degradation of ground water resources with particular emphasis on underground sources of drinking water; and
(3) Identify potential migration of carbon dioxide into any mineral zone in the facility area;
i. The proposed well casing and cementing program detailing compliance with section 43-05-01-09;
j. A performance bond in an amount and under terms set by the commission to provide it with funds sufcient to satisfy any regulatory obligation that the storage operator fails to fulll. If the commission uses a part of the bond, the storage operator shall immediately replenish the bond or secure a new bond to ensure that the full bond amount set by the commission is maintained;
k. Any other information that the commission requires; and l. A closure plan.
2. Any person ling a permit application or an application to amend an existing permit shall pay a processing fee. The fee will be based on actual processing costs, including computer data processing costs, incurred by the commission.
a.
A record of all application processing costs incurred must be maintained by the commission.
b. Promptly after receiving an application, the commission shall prepare and submit to the applicant an estimate of the processing fee and a payment billing schedule.
c.
After the commission’s work on the application has concluded, a nal statement will be sent to the applicant. The full processing fee must be paid before the commission issues its nal decision on an application.
d. The applicant must pay the processing fee regardless of whether a permit is issued or denied, or the application withdrawn.
3. The commission has one year from the date an application is deemed complete to issue a nal decision regarding the application.
History: Effective April 1, 2010. General Authority: NDCC 28-32-02 Law Implemented: NDCC 38-22

Site closure

Summary

Under section 43-05-01-05 of the North Dakota Storage Administration Statute, applications for permits to operate storage facilities must include, among other things, a closure plan.

Section 43-05-01-19 imposes a number of requirements to be met as part of the closure of a storage facility.

Before the end of the operational period the operator must provide an assessment of operations specifying, among other things, the volume of CO2 injected, its location and characteristics and how it might move during the post closure period.

The operator must also submit a monitoring plan for the closure period, while the North Dakota Industrial Commission, in conjunction with the operator, must develop a continuing monitoring plan for the post-closure period. All approved subsurface observation and ground water monitoring wells must remain in place for continued monitoring during the closure period.

The surface must be reclaimed following well plugging and removal of surface equipment. Upon project closure all wells designated by the Commission must be properly plugged and abandoned, all storage facility equipment removed and the project area reclaimed in accordance with the Commission’s specifications, in order to return the land as closely as practicable to its original condition.

Before the closure period ends the operator must provide a final assessment of the stored CO2’s location, characteristics and future movement and location with the reservoir.

Article/Section No.

Section 43-05-01-05
Section 43-05-01-19

Instrument Text

43-05-01-19. Facility closure.
1. Prior to the conclusion of the operational period, and at a time set by the commission, the storage operator must provide an assessment of the operations conducted during the operational period, including the volumes injected, volumes extracted, all chemical analyses conducted, and a summary of all monitoring efforts. The report must also document the stored carbon dioxide’s location and characteristics and predict how it might move during the closure period.
2. The storage operator shall submit a monitoring plan for the closure period for approval by the commission, including a proposal specifying which wells will be plugged and which will remain unplugged to be used as subsurface observation wells.
3. Following well plugging and removal of all surface equipment, the surface must be reclaimed to the commission’s specications that will, in general, return the land as closely as practicable to original condition.
4. The well casing must be cut off at a depth of ve feet [1.52 meters] below the surface and a steel plate welded on top identifying the well name and that it was used for carbon dioxide injection.
5. The commission shall develop in conjunction with the storage operator a continuing monitoring plan for the postclosure period, including a review and nal approval of wells to be plugged.
6. Upon project closure, all wells designated by the commission must be properly plugged and abandoned; all storage facility equipment, appurtenances, and structures removed; and the project area reclaimed to the commission’s specications that will, in general, return the land as closely as practicable to original condition.
7. All subsurface observation and ground water monitoring wells as approved in the closure plan must remain in place for continued monitoring during the closure period.
8. Before the closure period ends and at a time set by the commission, the storage operator shall provide a nal assessment of the stored carbon dioxide’s location, characteristics, and its future movement and location within the storage reservoir.
9. Wells other than those deemed as subsurface observation wells per subsection 2 shall be plugged by the storage operator in accordance with section 43-02-03-34.
History: Effective April 1, 2010. General Authority: NDCC 28-32-02 Law Implemented: NDCC 38-22

V. Management of long-term responsibilities and liabilities
VI. Additional Issues
Additional Issues

Article/Section No.

Section 43-05-01-20

Instrument Text

43-05-01-20. Determining storage amounts.

1. The commission, after notice and hearing, shall issue an order determining the amount of injected carbon dioxide stored in a reservoir that has been or is being used for an enhanced oil or gas recovery project or in a storage reservoir that has been or is being used for storage under a permit issued pursuant to North Dakota Century Code chapter 38-22.

2.      Any person applying for a storage amount determination shall pay a processing fee.

Processing fee. The applicant shall pay a processing fee based on the commission’s actual processing costs, including computer data processing costs, as determined by the commission. The following procedures and criteria will be utilized in establishing the fee:

a.

A record of all application processing costs incurred must be maintained by the commission.

b. Promptly after receiving an application, the commission shall prepare and submit to the applicant an estimate of the processing fee and a payment billing schedule.

c.

After the commission’s work on the application has concluded, a nal statement will be sent to the applicant . The full processing fee must be paid before the commission issues its decision on the application.

d.      The applicant must pay the processing fee even if the application is denied or withdrawn.

History: Effective April 1, 2010. General Authority: NDCC 28-32-02 Law Implemented: NDCC 38-22