La. Admin. Code tit. 43 § XVII-3141

Current through Register Vol. 50, No. 11, November 20, 2024

Section XVII-3141 - Closure and Post-Closure

A. Closure. The owner or operator shall close the salt cavern well, salt cavern, surface facility or parts thereof as approved by the Office of Conservation. Closure shall not begin without written authorization from the Office of Conservation.

1. Closure Plan. Plans for closure of the salt cavern well, salt cavern, and related surface facility shall be submitted as part of the permit application. The closure plan shall meet the requirements of these rules and regulations and be acceptable to the Office of Conservation. The obligation to implement the closure plan survives the termination of a permit or the cessation of salt cavern waste disposal operations or related activities. The requirement to maintain and implement an approved plan is directly enforceable regardless of whether the requirement is a condition of the permit. The Office of Conservation may modify a closure plan where necessary.

2. Closure Plan Requirements. The owner or operator shall review the closure plan annually to determine if the conditions for closure are still applicable to the actual conditions of the salt cavern well, salt cavern, or surface facility. Any revision to the plan shall be submitted to the Office of Conservation for approval. At a minimum, a closure plan shall address the following:

a. assurance of financial responsibility as required in §3109. B.1 All instruments of financial responsibility shall be reviewed each year before its renewal date according to the following process:

i. a detailed cost estimate for adequate closure of the entire salt cavern waste disposal facility (salt cavern well, salt cavern, surface appurtenances, etc.) shall be prepared by a qualified, independent third party and submitted to the Office of Conservation by the date specified in the permit;

ii. the closure plan and cost estimate shall include provisions for closure acceptable to the Office of Conservation and shall reflect the costs for the Office of Conservation to complete the approved closure of the facility;

iii. after reviewing the closure cost estimate, the Office of Conservation may increase, decrease or allow the amount to remain the same;

iv. documentation from the operator showing that the required financial instrument has been renewed shall be received each year by the date specified in the permit. When an operator is delinquent in submitting documentation of financial instrument renewal, the Office of Conservation shall initiate procedures to take possession of funds guaranteed by the financial instrument and suspend or revoke the operating permit. Permit suspensions shall remain in effect until renewal documentation is received and accepted by the Office of Conservation;

b. a prediction of the pressure build-up in the salt cavern following closure;

c. an analysis of potential pathways for leakage from the salt cavern, cemented casing shoe, and wellbore. Consideration shall be given to site specific elements of geology, waste characteristics, salt cavern geometry and depth, salt cavern pressure build-up over time due to salt creep and other factors inherent to the salt stock and/or salt dome;

d. procedures for determining the mechanical integrity of the salt cavern well and salt cavern before closure;

e. removal and proper disposal of any waste or other materials remaining at the facility;

f. closing, dismantling, and removing all equipment and structures located at the surface (including site restoration) if such equipment and structures will not be used for another purpose at the same disposal facility;

g. the type, number, and placement of each wellbore or salt cavern plug including the elevation of the top and bottom of each plug and the method of placement of the plugs;

h. the type, grade, and quantity of material to be used in plugging;

i. a description of the amount, size, and location (by depth) of casing and any other well construction materials to be left in the salt cavern well;

j. any proposed test or measurement to be made before or during closure.

3. Notice of Intent to Close

a. The operator shall review the closure plan before seeking authorization to begin closure activities to determine if the conditions for closure are still relevant to the actual conditions of the salt cavern well, salt cavern, or surface facility. Revisions to the method of closure reflected in the plan shall be submitted to the Office of Conservation for approval no later than the date on which the notice of closure is required to be submitted as shown in the subparagraph below.

b. The operator shall notify the Office of Conservation in writing at least 30 days before the expected closure of a salt cavern well, salt cavern, or surface facility. Notification shall be by submission of a request for a work permit. At the discretion of the Office of Conservation, a shorter notice period may be allowed.

4. Standards for Closure. The following are minimum standards for closing the salt cavern well or salt cavern. The Office of Conservation may require additional standards prior to actual closure.

a. After permanently concluding waste disposal operations into the salt cavern but before closing the salt cavern well or salt cavern, the owner or operator shall:

i. observe and accurately record the shut-in salt cavern pressures and salt cavern fluid volume for an appropriate time or a time specified by the Office of Conservation to provide information regarding the salt cavern's natural closure characteristics and any resulting pressure buildup;

ii. using actual pre-closure monitoring data, show and provide predictions that closing the salt cavern well or salt cavern as described in the closure plan will not result in any pressure buildup within the salt cavern that could adversely effect the integrity of the salt cavern well, salt cavern, or any seal of the system.

b. Before closure, the owner or operator shall do mechanical integrity pressure and leak tests to ensure the integrity of both the salt cavern well and salt cavern.

c. Before closure, the owner or operator shall remove and properly dispose of any free oil or blanket material remaining in the salt cavern well or salt cavern.

d. Upon permanent closure, the owner or operator shall plug the salt cavern well with cement in a way that will not allow the movement of fluids into or between underground sources of drinking water or outside the salt stock. Placement of cement plugs shall be accomplished by using standard petroleum industry practices for downhole well abandonment. Each plug shall be appropriately tagged and pressure tested for seal and stability before closure is completed.

e. Upon successful completion of the closure, the owner or operator shall identify the surface location of the abandoned well with a permanent marker inscribed with the operator's name, well name and number, serial number, section-township-range, date plugged and abandoned, and acknowledgment that the well and salt cavern were used for disposal of E&P waste.

5. Closure Report. The owner or operator shall submit a closure report to the Office of Conservation within 30 days after closure of the salt cavern well, salt cavern, surface facility, or part thereof. The report shall be certified as accurate by the owner or operator and by the person charged with overseeing the closure operation (if other than the owner or operator). The report shall contain the following information:

a. detailed procedures of the closure operation. Where actual closure differed from the plan previously approved, the report shall include a written statement specifying the differences between the previous plan and the actual closure;

b. all state regulatory reporting forms relating to the closure activity; and

c. any information pertinent to the closure activity including test or monitoring data.

B. Post-Closure. Plans for post-closure care of the salt cavern well, salt cavern, and related surface facility shall be submitted as part of the permit application. The post-closure plan shall meet the requirements of these rules and regulations and be acceptable to the Office of Conservation. The obligation to implement the post-closure plan survives the termination of a permit or the cessation of salt cavern waste disposal operations or related activities. The requirement to maintain and implement an approved post-closure plan is directly enforceable regardless of whether the requirement is a condition of the permit. The Office of Conservation may modify a post-closure plan where necessary.

1. The owner or operator shall review the post-closure plan annually to determine if the conditions for post-closure are still applicable to actual conditions. Any revision to the plan shall be submitted to the Office of Conservation for approval. At a minimum, a post-closure plan shall address the following:

a. assurance of financial responsibility as required in §3109. B.1 All instruments of financial responsibility shall be reviewed each year before its renewal date according to the following process:

i. a detailed cost estimate for adequate post-closure care of the entire salt cavern waste disposal facility shall be prepared by a qualified, independent third party and submitted to the Office of Conservation by the date specified in the permit;

ii. the post-closure care plan and cost estimate shall include provisions acceptable to the Office of Conservation and shall reflect the costs for the Office of Conservation to complete the approved post-closure care of the facility;

iii. after reviewing the post-closure cost estimate, the Office of Conservation may increase, decrease or allow the amount to remain the same;

iv. documentation from the operator showing that the required financial instrument has been renewed must be received each year by the date specified in the permit. When an operator is delinquent in submitting documentation of financial instrument renewal, the Office of Conservation shall initiate procedures to take possession of the funds guaranteed by the financial instrument and suspend or revoke the operating permit. Any permit suspension shall remain in effect until renewal documentation is received and accepted by the Office of Conservation;

b. any plans for monitoring, corrective action, site remediation, site restoration, etc., as may be necessary.

2. Where necessary and as an ongoing part of post-closure care, the owner or operator shall continue the following activities:

a. complete any corrective action or site remediation resulting from the operation of a salt cavern waste disposal facility;

b. conduct any groundwater monitoring or subsidence monitoring required by the permit until pressure in the salt cavern displays a trend of behavior that can be shown to pose no threat to salt cavern integrity, underground sources of drinking water, or other natural resources of the state;

c. complete any site restoration.

3. The owner or operator shall retain all records as required in §3139 for five years following conclusion of post-closure requirements.

La. Admin. Code tit. 43, § XVII-3141

Promulgated by the Department of Natural Resources, Office of Conservation, LR 29:935 (June 2003).

AUTHORITY NOTE: Promulgated in accordance with R.S. 30:4 et seq.