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CHAPTER 43-05-01 

GEOLOGIC STORAGE OF CARBON DIOXIDE 

 43-05-01-01. DEFINITIONS. The terms used throughout this chapter have the same 

meaning as in chapter 43-02-03 and North Dakota Century Code chapter 38-08 except: 

1. "Abandoned well" means a well whose use has been permanently discontinued or 

which is in a state of disrepair such that it cannot be used for its intended purpose or 

for observation purposes. 

2. “Activity” means any activity related to the geologic storage of carbon dioxide 

subject to regulation under this chapter and North Dakota Century Code chapter 

38-22. 

3. "Aquifer" means a geological formation, group of formations, or part of a formation 

that is capable of yielding a significant amount of water to a well, spring, or other 

point of discharge. 

4. “Area of review” means the region surrounding the geologic sequestration project 

where underground sources of drinking water may be endangered by the injection 

activity. 

5. “Bond rating” means a rating assigned to any long-term senior secured indebtedness 

issued by or on behalf of the storage operator, including any indebtedness issued by 

any governmental authority with respect to which the storage operator is obligor. 

6. “Carbon dioxide plume” means the extent underground, in three dimensions, of an 

injected carbon dioxide stream. 

7. “Carbon dioxide stream” means carbon dioxide that has been captured from an 

emission source (e.g., a coal-burning power plant), plus incidental associated 

substances derived from the source materials and the capture process, and any 

substances added to the stream to enable or improve the injection process. This does 

not apply to any carbon dioxide stream that meets the definition of a hazardous 

waste. 

8. "Casing" means a pipe or tubing of varying diameter and weight, which is installed 

into a well to maintain the structural integrity of that well. 

9. “Cementing” means the operation whereby a cement slurry is pumped into a drilled 

hole and forced behind the casing. 

10. "Closure period" means that period from permanent cessation of carbon dioxide 

injection until the commission issues a certificate of project completion. 
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11. “Confining zone” means a geologic formation, group of formations, or part of a 

formation stratigraphically overlying the injection zone that acts as a barrier to fluid 

movement. For injection wells operating under an injection depth waiver, confining 

zone means a geologic formation, group of formations, or part of a formation 

stratigraphically overlying and underlying the injection zone. 

12. "Contaminant" means any physical, chemical, biological, or radiological substance 

or matter in water. 

13. “Corrective action” means the use of commission-approved methods to ensure that 

wells within the area of review do not serve as conduits for the movement of fluids 

into underground sources of drinking water. 

14. “Draft permit” means a document prepared under section 43-05-01-07.2 indicating 

the commission’s tentative decision to issue a storage facility permit or modify, 

revoke and reissue, or terminate an existing storage facility permit. 

15. “Exempted aquifer” means an “aquifer” or its portion that meets the criteria in the 

definition of “underground sources of drinking water” but which has been exempted 

according to the procedures in section 43-05-01-02.4. 

16. “Facility area” means the areal extent of the storage reservoir. 

17. “Fault” means a surface or zone of rock fracture along which there has been 

displacement. 

18. “Flow lines” means pipelines transporting carbon dioxide from the carbon dioxide 

injection facilities to the wellhead. 

19. "Fluid" means any material or substance which flows or moves, whether in a 

semisolid, liquid, sludge, gas, or any other form or state. 

20. “Formation” means a body of rock characterized by a degree of lithologic 

homogeneity which is prevailingly, but not necessarily, tabular and is mappable on 

the earth’s surface or traceable in the subsurface. 

21. "Formation fluid" means fluid present in a formation under natural conditions as 

opposed to introduced fluids. 

22. “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. 

23. “Geologic sequestration” means the geologic storage of a gaseous, liquid, or 

supercritical carbon dioxide stream in a storage reservoir. This term does not apply 

to carbon dioxide capture or transport. 
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24. “Geologic sequestration project” means an injection well or wells used to emplace a 

carbon dioxide stream beneath the lowermost formation containing underground 

sources of drinking water; or, wells used for geologic sequestration that have been 

granted a waiver of the injection depth requirements; or, wells used for geologic 

sequestration that have received an expansion to the areal extent of an existing 

enhanced oil or gas recovery aquifer exemption. It includes the subsurface 

three-dimensional extent of the carbon dioxide plume, as well as the associated 

pressure front. 

25. "Ground water" means water occurring beneath the surface of the ground that fills 

available openings in rock or soil materials such that they may be considered 

saturated. 

26. “Injection well” means a nonexperimental well used to inject carbon dioxide into or 

withdraw carbon dioxide from a reservoir. 

27. “Injection zone” means a geologic formation, group of formations, or part of a 

formation that is of sufficient areal extent, thickness, porosity, and permeability to 

receive carbon dioxide through a well or wells associated with a geologic 

sequestration project. 

28. “Mechanical integrity” means the absence of significant leakage within an injection 

well’s tubing, casing, or packer (internal mechanical integrity), or outside of the 

casing (external mechanical integrity). 

29. "Minerals" means coal, oil, and natural gas. 

30. “Model” means a representation or simulation of a phenomenon or process that is 

difficult to observe directly or that occurs over long timeframes. Models that 

support geologic sequestration can predict the flow of carbon dioxide within the 

subsurface, accounting for the properties and fluid content of the subsurface 

formations and the effects of injection parameters. 

31. "Operational period" means the period during which injection occurs. 

32. "Packer" means a device lowered into a well, which can be expanded or compressed 

to produce a fluid-tight seal. 

33. “Person” means an individual, association, partnership, corporation, municipality, 

state, federal, or tribal agency, or an agency or employee thereof. 

34. "Plug or plugging" means the act or process of sealing the flow of fluid into or out of 

a formation through a borehole or "well" penetrating that formation. 
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35. “Postclosure period” means that period after the commission has issued a certificate 

of project completion. 

36. “Postinjection site care” means appropriate monitoring and other actions, including 

corrective action, needed following cessation of injection to ensure that underground 

sources of drinking water are not endangered. Postinjection site care may occur in 

the closure or postclosure periods. 

37. "Pressure" means the total load or force per unit area acting on a surface. 

38. “Pressure front” means the zone of elevated pressure and displaced fluids created by 

the injection of carbon dioxide into the subsurface. The pressure front of a carbon 

dioxide plume refers to a zone where there is a pressure differential sufficient to 

cause the movement of injected fluids or formation fluids into underground sources 

of drinking water. 

39. “Project completion” means the point in time, as determined by the commission at 

which the certificate of project completion is issued and the storage operator is 

released from all regulatory requirements associated with the storage facility. 

40. "Stratum" (strata plural) means a single sedimentary bed or layer, regardless of 

thickness, that consists of generally the same kind of rock material. 

41. "Subsurface observation well" means a well used to observe subsurface phenomena, 

including the presence of carbon dioxide, pressure fluctuations, fluid levels and 

flow, temperature, and in situ water chemistry. 

42. “Surface casing” means the first string of well casing to be installed in the well. 

43. “Transmissive fault or fracture” means a fault or fracture that has sufficient 

permeability and vertical extent to allow fluids to move between formations. 

44. “Trapping” means the physical and geochemical processes by which injected carbon 

dioxide is sequestered in the subsurface. Physical trapping occurs when buoyant 

carbon dioxide rises in the formation until it reaches impermeable strata that inhibits 

further upward and lateral migration or is immobilized in pore spaces due to 

capillary forces. Geochemical trapping occurs when chemical reactions between the 

injected carbon dioxide and natural occurring minerals in the formation lead to the 

precipitation of solid carbonate minerals or dissolution in formation fluids. 

45. "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. 
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46. “Well” means a bored, drilled or driven shaft, or a dug hole, whose depth is greater 

than the largest surface dimension; or an improved sinkhole; or a subsurface fluid 

distribution system. 

History: Effective April 1, 2010; amended effective April 1, 2013. 

General Authority Law Implemented 

NDCC 28-32-02 NDCC 38-22 

43-05-01-02. SCOPE OF CHAPTER. This chapter governs the geologic storage of 

carbon dioxide. This chapter does not apply to applications filed with the commission proposing 

to use carbon dioxide for an enhanced oil or gas recovery project, rather such applications will be 

processed under chapter 43-02-05. 

History: Effective April 1, 2010; amended effective April 1, 2013. 

General Authority Law Implemented 

NDCC 28-32-02 NDCC 38-22 

43-05-01-02.1. APPLICATION OF RULES FOR GEOLOGIC STORAGE OF 

CARBON DIOXIDE. In addition to the provisions in this chapter, injection wells utilized for 

geologic storage are subject to the provisions of chapters 43-02-03 and 43-02-05 when 

applicable. 

History: Effective April 1, 2013. 

General Authority Law Implemented 

NDCC 28-32-02 NDCC 38-22 

43-05-01-02.2. INJECTION INTO UNDERGROUND SOURCE OF DRINKING 

WATER PROHIBITED. Underground injection of carbon dioxide for geologic storage that 

causes or allows movement of fluid into an underground source of drinking water is prohibited, 

unless the underground source of drinking water is an exempted aquifer under section 

43-02-05-03. 

 No storage operator shall construct, operate, maintain, convert, plug, abandon, or conduct 

any injection activity in a manner that allows the movement of fluid containing any contaminant 

into underground sources of drinking water, if the presence of that contaminant may endanger 

underground sources of drinking water or may adversely affect the health of persons. The 

applicant must show that the objectives of this section are fulfilled. 

 Notwithstanding any other provision of this section, the commission may take emergency 

action upon receipt of information that a contaminant which is present in or likely to enter a 
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public water system or underground source of drinking water may present an imminent and 

substantial endangerment to the health of persons. 

History: Effective April 1, 2013. 

General Authority Law Implemented 

NDCC 28-32-02 NDCC 38-22 

43-05-01-02.3. TRANSITIONING FROM ENHANCED OIL OR GAS 

RECOVERY TO GEOLOGIC SEQUESTRATION. A storage operator injecting carbon 

dioxide for the primary purpose of geologic sequestration into an oil and gas reservoir shall 

apply for and obtain storage facility and injection well permits when there is an increased risk to 

underground sources of drinking water compared to enhanced oil or gas recovery operations. In 

determining if there is an increased risk to underground sources of drinking water, the 

commission shall consider the following factors:

1. Increase in reservoir pressure within the injection zone; 

2. Increase in carbon dioxide injection rates; 

3. Decrease in reservoir production rates; 

4. Distance between the injection zone and underground sources of drinking water; 

5 Suitability of the enhanced oil or gas recovery area of review delineation; 

6. Quality of abandoned well plugs within the area of review; 

7. The storage operator’s plan for recovery of carbon dioxide at the cessation of 

injection; 

8. The source and properties of injected carbon dioxide; and 

9. Any additional site-specific factors as determined by the commission. 

History: Effective April 1, 2013. 

General Authority Law Implemented 

NDCC 28-32-02 NDCC 38-22 
 (XI-7) 04/2013 

43-05-01-02.4. EXEMPTED AQUIFERS AND EXPANSIONS OF AREAL 

EXTENT OF EXISTING AQUIFER EXEMPTIONS. 

1. The commission may identify by narrative description, illustrations, maps, or other 

means and shall implement these rules to protect as underground sources of drinking 

water, all aquifers and parts of aquifers that meet the definition of ‘‘underground 

source of drinking water’’. Even if an aquifer has not been specifically identified by 

the commission, it is an underground source of drinking water if it meets the 

definition of “underground source of drinking water”. Other than United States 

environmental protection agency-approved aquifer exemption expansions, new 

aquifer exemptions shall not be issued for injection wells. 

2. The commission shall identify, by narrative description, illustrations, maps, or other 

means, and describe in geographic and geometric terms, such as vertical and lateral 

limits and gradient, which are clear and definite, all aquifers or parts of aquifers that 

the commission proposes to designate as exempted aquifers using the criteria in 

section 43-02-05-03. No designation of an exempted aquifer submitted as part of the 

underground injection control program is final until approved by the United States 

environmental protection agency administrator as part of the underground injection 

control program. 

3. A storage operator of enhanced oil or gas recovery wells may apply to the 

commission for approval to expand the areal extent of an aquifer exemption already 

in place for an enhanced oil or gas recovery well for the exclusive purpose of carbon 

dioxide injection for geologic sequestration. Such applications are considered a 

revision to the applicable federal underground injection control program or a 

substantial program revision to an approved state underground injection control 

program and are not final until approved by the United States environmental 

protection agency. 

 a. A storage operator’s application must define by narrative description, 

illustrations, maps, or other means and describe in geographic or geometric 

terms, such as vertical and lateral limits and gradient that are clear and definite, 

all aquifers or parts thereof that are requested to be designated as exempted 

under section 43-02-05-03. 

 b. In evaluating an application, the commission shall determine that it meets the 

criteria for exemptions in section 43-02-05-03. In making the determination, 

the commission shall consider: 

(1) Current and potential future use of the underground sources of drinking 

water to be exempted as drinking water resources; 

(2) The predicted extent of the injected carbon dioxide plume, and any 

mobilized fluids that may result in degradation of water quality, over the 

lifetime of the geologic sequestration project, as informed by 
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computational modeling performed pursuant to subdivision a of subsection 

2 of section 43-05-01-05.1, in order to ensure that the proposed injection 

operation will not at any time endanger underground sources of drinking 

water, including nonexempted portions of the injection formation; 

 (3) Whether the areal extent of the expanded aquifer exemption is sufficient to 

account for any possible revisions to the computational model during 

reevaluation of the area of review; and 

 (4) Information submitted to support a waiver request made by the applicant 

under section 43-05-01-11.6, if appropriate. 

History: Effective April 1, 2013. 

General Authority Law Implemented 

NDCC 28-32-02 NDCC 38-22 

43-05-01-02.5. PROHIBITION OF UNAUTHORIZED INJECTION. Any 

underground injection of carbon dioxide for the purpose of geologic storage, except into a well 

authorized by permit issued under this chapter, is prohibited. The construction of any well 

required to have a permit is prohibited until the permit authorizing construction of the well has 

been issued. 

History: Effective April 1, 2013. 

General Authority Law Implemented 

NDCC 28-32-02 NDCC 38-22 

43-05-01-02.6. EXISTING WELL CONVERSION. Storage operators seeking to 

convert an existing well to an injection well for the purpose of geologic storage of carbon 

dioxide must demonstrate to the commission that the well is constructed in a manner that will 

ensure the protection of underground sources of drinking water. 

History: Effective April 1, 2013. 

General Authority Law Implemented 

NDCC 28-32-02 NDCC 38-22 

 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 until project completion, covering their operations in North 
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Dakota from which they may be able to make and substantiate the reports required by this 

chapter. 

History: Effective April 1, 2010; amended effective April 1, 2013. 

General Authority Law Implemented 

NDCC 28-32-02 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 filed with the 

commission. 

History: Effective April 1, 2010. 

General Authority Law Implemented 

NDCC 28-32-02 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 area; 

 

 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 confinement, including rock 
 (XI-10) 04/2013 

properties, regional pressure gradients, structural features, and adsorption 

characteristics with regard to the ability of that confinement 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 underground sources of 

drinking water 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) Identification of all structural spill points or stratigraphic 

discontinuities controlling the isolation of stored carbon dioxide and 

associated fluids within the storage reservoir; 

 (h) Evaluation of the pressure front and the potential impact on 

underground sources of drinking water, if any; 

(i) Structural and stratigraphic cross sections that describe the geologic 

conditions at the storage reservoir; 

(j) The location, orientation, and properties of known or suspected faults 

and fractures that may transect the confining zone in the area of 

review, and a determination that they would not interfere with 

containment; 

(k) Data on the depth, areal extent, thickness, mineralogy, porosity, 

permeability, and capillary pressure of the injection and confining 

zone, including facies changes based on field data, which may include 
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geologic cores, outcrop data, seismic surveys, well logs, and names 

and lithologic descriptions; 

(l) Geomechanical information on fractures, stress, ductility, rock 

strength, and in situ fluid pressures within the confining zone. The 

confining zone must be free of transmissive faults or fractures and of 

sufficient areal extent and integrity to contain the injected carbon 

dioxide stream; 

(m) Information on the seismic history, including the presence and depth 

of seismic sources and a determination that the seismicity would not 

interfere with containment; 

(n) Geologic and topographic maps and cross sections illustrating 

regional geology, hydrogeology, and the geologic structure of the 

facility area; and 

(o) Identify and characterize additional strata overlying the storage 

reservoir that will prevent vertical fluid movement, are free of 

transmissive faults or fractures, allow for pressure dissipation, and 

provide additional opportunities for monitoring, mitigation, and 

remediation. 

(3) A review of the data of public record, conducted by a geologist or 

engineer, 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 distance as deemed necessary by the commission, of the facility area 

boundary. The review must include the following: 

(a) A determination that all abandoned wells have been plugged and all 

operating wells have been constructed in a manner that prevents the 

carbon dioxide or associated fluids from escaping from the storage 

reservoir; 

(b) A description of each well’s type, construction, date drilled, location, 

depth, record of plugging, and completion; 

(c) Maps and stratigraphic cross sections indicating the general vertical 

and lateral limits of all underground sources of drinking water, water 

wells, and springs within the area of review; their positions relative to 

the injection zone; and the direction of water movement, where 

known; 

(d) Maps and cross sections of the area of review; 
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(e) A map of the area of review showing the number or name and 

location of all injection wells, producing wells, abandoned wells, 

plugged wells or dry holes, deep stratigraphic boreholes, 

state-approved or United States environmental protection 

agency-approved subsurface cleanup sites, surface bodies of water, 

springs, mines (surface and subsurface), quarries, water wells, other 

pertinent surface features, including structures intended for human 

occupancy, state, county, or Indian country boundary lines, and roads; 

(f) A list of contacts, submitted to the commission, when the area of 

review extends across state jurisdiction boundary lines; 

(g) Baseline geochemical data on subsurface formations, including all 

underground sources of drinking water in the area of review; and 

(h) Any additional information the commission may require. 

 (4) The proposed calculated average and maximum daily injection rates, daily 

volume, and the total anticipated volume of the carbon dioxide stream 

using a method acceptable to and filed with the commission; 

(5) The proposed average and 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 specified 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 confining zone or cause the movement of injection 

or formation fluids into an underground source of drinking water; 

(6) The proposed preoperational formation testing program to obtain an 

analysis of the chemical and physical characteristics of the injection zone 

and confining zone pursuant to section 43-05-01-11.2; 

(7) The proposed stimulation program, a description of stimulation fluids to 

be used, and a determination that stimulation will not interfere with 

containment; and 

(8) The proposed procedure to outline steps necessary to conduct injection 

operations. 

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 must include various computational 
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models for reservoir characterization, and the projected response of the carbon 

dioxide plume and storage capacity of the storage reservoir. The 

computational model must be based on detailed geologic data collected to 

characterize the injection zones, confining zones, and any additional zones; 

 d. An emergency and remedial response plan pursuant to section 43-05-01-13; 

 e. A detailed worker safety plan that addresses carbon dioxide safety training and 

safe working procedures at the storage facility pursuant to section 43-05-01-13; 

 f. A corrosion monitoring and prevention plan for all wells and surface facilities 

pursuant to section 43-05-01-15; 

 g. A leak detection and monitoring plan for all wells and surface facilities 

pursuant to section 43-05-01-14. 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 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; 
 (XI-14) 04/2013 

 j. An area of review and corrective action plan that meets the requirements 

pursuant to section 43-05-01-05.1; 

 k. The storage operator shall comply with the financial responsibility 

requirements pursuant to section 43-05-01-09.1; 

 l. A testing and monitoring plan pursuant to section 43-05-01-11.4; 

 m. A plugging plan that meets requirements pursuant to section 43-05-01-11.5; 

 n. A postinjection site care and facility closure plan pursuant to section 

43-05-01-19; and 

o. Any other information that the commission requires. 

 2. Any person filing 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 final 

statement will be sent to the applicant. The full processing fee must be paid 

before the commission issues its final 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 final decision regarding the application. 

History: Effective April 1, 2010; amended effective April 1, 2013. 

General Authority Law Implemented 

NDCC 28-32-02 NDCC 38-22 

43-05-01-05.1. AREA OF REVIEW AND CORRECTIVE ACTION. 

1. The storage operator shall prepare, maintain, and comply with a plan to delineate the 

area of review for a proposed geologic sequestration project, periodically reevaluate 
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the delineation, and perform corrective action that meets the requirements of this 

section and is acceptable to the commission. The requirement to maintain and 

implement a commission-approved plan is directly enforceable regardless of 

whether the requirement is a condition of the permit. As a part of the storage facility 

permit application, the storage operator shall submit an area of review and corrective 

action plan that includes the following: 

a. The method for delineating the area of review, including the model to be used, 

assumptions that will be made, and the site characterization data on which the 

model will be based; 

 b. A description of: 

(1) The reevaluation date, not to exceed five years, at which time the storage 

operator shall reevaluate the area of review; 

(2) The monitoring and operational conditions that would warrant a 

reevaluation of the area of review prior to the next scheduled reevaluation 

date; 

(3) How monitoring and operational data (e.g., injection rate and pressure) 

will be used to inform an area of review reevaluation; and 

(4) How corrective action will be conducted to meet the requirements of this 

section, including what corrective action will be performed prior to 

injection and what, if any, portions of the area of review will have 

corrective action addressed on a phased basis and how the phasing will be 

determined; how corrective action will be adjusted if there are changes in 

the area of review; and how site access will be guaranteed for future 

corrective action. 

2. The storage operator shall perform the following actions to delineate the area of 

review and identify all wells that require corrective action: 

a. Predict, using existing site characterization, monitoring and operational data, 

and computational modeling, the projected lateral and vertical migration of the 

carbon dioxide plume and its associated pressure front in the subsurface from 

the commencement of injection activities until the plume movement ceases, or 

until the end of a fixed time period as determined by the commission. The 

model must: 

(1) Be based on detailed geologic data collected to characterize the injection 

zone, confining zone, and any additional zones; and anticipated operating 

data, including injection pressures, rates, and total volumes over the 

proposed life of the geologic sequestration project; 
 (XI-16) 04/2013 

(2) Take into account any geologic heterogeneities, other discontinuities, data 

quality, and their possible impact on model predictions; and 

(3) Consider potential migration through faults, fractures, and artificial 

penetrations. 

b. Using methods approved by the commission, identify all penetrations, 

including active and abandoned wells and underground mines, in the area of 

review that may penetrate the confining zone. Provide a description of each 

well’s type, construction, date drilled, location, depth, record of plugging and 

completion, and any additional information the commission may require; and 

c. Determine which abandoned wells have been plugged or operating wells have 

been constructed in the area of review in a manner that prevents the movement 

of the injected carbon dioxide or other fluids that may endanger underground 

sources of drinking water, including use of materials compatible with the 

carbon dioxide stream. 

3. The storage operator shall perform corrective action on all wells in the area of 

review that are determined to need corrective action, using methods designed to 

prevent the movement of fluid into or between underground sources of drinking 

water, including use of materials compatible with the carbon dioxide stream, where 

appropriate. 

4. At the reevaluation date, not to exceed five years, as specified in the area of review 

and corrective action plan, or when monitoring and operational conditions warrant, 

the storage operator shall: 

a. Reevaluate the area of review in the same manner specified in subdivision a of 

subsection 2; 

b. Identify all wells in the reevaluated area of review that require corrective action 

in the same manner specified in subsection 2; 

c. Perform corrective action on wells requiring corrective action in the 

reevaluated area of review in the same manner specified in subsection 3; and 

d. Submit an amended area of review and corrective action plan or demonstrate to 

the commission through monitoring data and modeling results that no 

amendment to the plan is needed. Any amendments to the plan are subject to 

the commission’s approval, must be incorporated into the permit, and are 

subject to the permit modification requirements. 

5. The emergency and remedial response plan and the demonstration of financial 

responsibility must account for the area of review, regardless of whether or not 

corrective action in the area of review is phased. 
 (XI-17) 04/2013 

6. All modeling inputs and data used to support area of review delineations and 

reevaluations must be retained until project completion. Upon project completion, 

the storage operator shall deliver the records to the commission. 

History: Effective April 1, 2013. 

General Authority Law Implemented 

NDCC 28-32-02 NDCC 38-22 

 43-05-01-06. STORAGE FACILITY PERMIT TRANSFER. 

 1. Notification. 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 within the facility area. 

 c. The date that the storage operator desires the proposed transfer to occur. 

 d. A demonstration of financial assurance as required by section 43-05-01-09.1. 

 

 2. Transfers by modification. A storage facility permit may be transferred by the 

storage operator to a new storage operator only if the storage facility permit is 

modified, or revoked and reissued, or a minor modification made, to identify the new 

storage operator and incorporate such other requirements as may be necessary under 

state and federal law. 

 3. 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. 

 4. Commission approval required. A permit transfer can occur only upon the 

commission’s written order. The transferor of a permit shall receive notice from the 

commission that the approved new storage operator has demonstrated financial 

responsibility for the storage facility. 

History: Effective April 1, 2010; amended effective April 1, 2013. 

General Authority Law Implemented 

NDCC 28-32-02 NDCC 38-22 
 (XI-18) 04/2013 

43-05-01-07. AMENDING STORAGE FACILITY PERMIT. Repealed effective 

April 1, 2013. 

43-05-01-07.1. PERMITTING. 

1. Application for a permit under this chapter: 

a. Any person who is required to have a permit shall complete, sign, and submit a 

permit application to the commission. 

b. When the owner and storage operator are different, it is the storage operator’s 

duty to obtain a permit. 

c. The commission shall not begin processing a permit until the applicant has 

fully complied with the application requirements for that permit. 

d. The application must be complete before the permit is issued. An application 

for a permit is complete when the commission receives an application form and 

any supplemental information which are completed to the commission’s 

satisfaction. 

2. All permit applications, reports, or information submitted to the commission must 

comply with the following signature and certification requirements: 

a. All permit applications must be signed as follows: 

(1) For a corporation by a principal executive officer of at least the level of 

vice president; 

(2) For a partnership or sole proprietorship by a general partner or the 

proprietor, respectively; or 

(3) For a municipality, state, federal, or other public agency by either a 

principal executive officer or ranking elected official. 

b. All reports required by permits and other information requested by the 

commission must be signed by a person described in subdivision a, or by a 

duly authorized representative of that person. A person is a duly authorized 

representative only if: 

(1) The authorization is made in writing by a person described in 

subdivision a; 

(2) The authorization specifies either an individual or a position having 

responsibility for the overall operation of the regulated facility or activity, 
 (XI-19) 04/2013 

such as the position of plant manager, operator of a well or well field, 

superintendent, or position of equivalent responsibility. A duly authorized 

representative may thus be either a named individual or any individual 

occupying a named position; and 

(3) The written authorization is submitted to the commission. 

c. If an authorization under subdivision b is no longer accurate because a 

different individual or position has responsibility for the overall operation of 

the storage facility, a new authorization pursuant to subdivision b must be 

submitted to the commission prior to or together with any reports, information, 

or applications to be signed by an authorized representative. 

d. Any person signing a document under subdivision a or b shall make 

certification under penalty of law that that person has personally examined and 

is familiar with the information submitted in the document and all attachments 

and that, based on inquiry of those individuals immediately responsible for 

obtaining the information, the person believes that the information is true, 

accurate, and complete. Further, the person shall certify awareness that there 

are significant penalties for submitting false information, including the 

possibility of a fine and imprisonment. 

3. Applicants shall provide the following information to the commission: 

 a. The activities conducted by the applicant which require it to obtain a storage 

facility permit or other federal, state, or local permits; 

 b. Name, mailing address, and location of the storage facility for which the 

application is submitted; 

 c. Up to four standard industrial classification codes which best reflect the 

principal products or services provided by the facility; 

 d. The storage operator's name, address, telephone number, ownership status, and 

status as federal, state, private, public, or other entity; 

 e. Whether the storage facility is located on Indian lands, historic or 

archaeological sites; and 

 f. A listing of all environmental permits, construction approvals, or any other 

relevant permit received or applied for from the commission or any other 

federal, state, or local regulatory agency. 

4. Applicants shall retain records of all data used to complete permit applications and 

supplemental information until project completion. Upon project completion, the 

storage operator shall deliver any records required in this section to the commission. 
 (XI-20) 04/2013 

5. Storage operators applying to drill a new injection well shall submit an application 

within a reasonable time before construction is expected to begin. 

History: Effective April 1, 2013. 

General Authority Law Implemented 

NDCC 28-32-02 NDCC 38-22 

43-05-01-07.2. DRAFT PERMITS AND FACT SHEETS. 

1. Draft permits. 

a. When a storage facility permit application is complete, the commission shall 

either prepare a draft permit or deny the application. 

b. Before preparing the draft permit, the commission shall consult the state 

department of health. 

c. The draft permit must contain the permit conditions required under sections 

43-05-01-07.3 and 43-05-01-07.4. 

2. Fact sheets. 

a. A fact sheet must be prepared for each draft permit. 

b. The fact sheet and draft permit must be sent to the applicant and, upon request, 

to any other person. 

c. The fact sheet must include: 

(1) A brief description of the type of facility or activity which is the subject of 

the draft permit; 

(2) The quantity and quality of the carbon dioxide which is proposed to be 

injected and stored; 

(3) A brief summary of the basis for the draft permit conditions, including 

references to applicable statutory or regulatory provisions; 

(4) The reasons why any requested variances or alternatives to required 

standards do or do not appear justified; 

(5) A description of the procedures for reaching a final decision on the draft 

permit, including: 
 (XI-21) 04/2013 

(a) The beginning and ending dates of the comment period; 

(b) The address where comments will be received; 

(c) The date, time, and location of the storage facility permit hearing; and 

(d) Any other procedures by which the public may participate in the final 

decision. 

(6) The name and telephone number of a person to contact for additional 

information. 

History: Effective April 1, 2013. 

General Authority Law Implemented 

NDCC 28-32-02 NDCC 38-22 

 43-05-01-07.3. PERMIT CONDITIONS. The following conditions apply to all storage 

facility permits: 

1. The storage operator shall comply with all conditions of the permit. Any 

noncompliance with the permit constitutes a violation and is grounds for 

enforcement action, including permit termination, revocation, or modification 

pursuant to section 43-05-01-12. 

2. In an administrative action, it shall not be a defense that it would have been 

necessary for the storage operator to halt or reduce the permitted activity in order to 

maintain compliance with the conditions of the permit. 

3. The storage operator shall take all reasonable steps to minimize or correct any 

adverse impact on the environment resulting from noncompliance with the storage 

facility permit. 

4. The storage operator shall develop and implement an emergency and remedial 

response plan pursuant to section 43-05-01-13. 

5. The storage operator shall at all times properly operate and maintain all storage 

facilities which are installed or used by the storage operator to achieve compliance 

with the conditions of the storage facility permit. Proper operation and maintenance 

includes effective performance, adequate funding, adequate operator staffing and 

training, and adequate laboratory and process controls, including appropriate quality 

assurance procedures. This provision requires the operation of backup or auxiliary 

facilities or similar systems only when necessary to achieve compliance with the 

conditions of the storage facility permit. 
 (XI-22) 04/2013 

6. The permit may be modified, revoked and reissued, or terminated pursuant to section 

43-05-01-12. The filing of a request by the storage operator for a permit 

modification, revocation and reissuance, or termination, or a notification of planned 

changes or anticipated noncompliance, does not stay any permit condition. 

7. The injection well permit or the permit to operate an injection well does not convey 

any property rights of any sort or any exclusive privilege. 

8. The storage operator shall furnish to the commission, within a time specified by the 

commission, any information which the commission may request to determine 

whether cause exists for modifying, revoking and reissuing, or terminating the 

permit, or to determine compliance with the permit. The storage operator shall also 

furnish to the commission, upon request, copies of records required to be kept by the 

storage facility permit. 

9. The storage operator shall allow the commission, or an authorized representative, 

upon the presentation of credentials and other documents as may be required by law, 

to: 

a. Enter upon the storage facility premises where records must be kept under the 

conditions of the permit; 

b. At reasonable times, have access to and copy any records that must be kept 

under the conditions of the permit; 

c. At reasonable times, inspect any facilities, equipment, including monitoring 

and control equipment, practices, or operations regulated or required under the 

permit; and 

d. At reasonable times, sample or monitor for the purposes of assuring permit 

compliance, any substances or parameters at any location. 

10. The storage operator shall prepare, maintain, and comply with a testing and 

monitoring plan pursuant to section 43-05-01-11.4. 

11. The storage operator shall comply with the reporting requirements provided in 

section 43-05-01-18. 

12. The storage operator must obtain an injection well permit under section 43-05-01-10 

and injection wells must meet the construction and completion requirements in 

section 43-05-01-11. 

13. The storage operator shall prepare, maintain, and comply with a plugging plan 

pursuant to section 43-05-01-11.5. 
 (XI-23) 04/2013 

14. The storage operator shall establish mechanical integrity prior to commencing 

injection and maintain mechanical integrity pursuant to section 43-05-01-11.1. 

15. The storage operator shall implement the worker safety plan pursuant to section 

43-05-01-13. 

16. The storage operator shall comply with leak detection and reporting requirements 

pursuant to section 43-05-01-14. 

17. The storage operator shall conduct a corrosion monitoring and prevention program 

pursuant to section 43-05-01-15. 

18. The storage operator shall prepare, maintain, and comply with the area of review and 

corrective action plan pursuant to section 43-05-01-05.1. 

19. The storage operator shall maintain financial responsibility pursuant to section 

43-05-01-09.1. 

20. The storage operator shall maintain and comply with the postinjection site care and 

facility closure plan pursuant to section 43-05-01-19. 

History: Effective April 1, 2013. 

General Authority Law Implemented 

NDCC 28-32-02 NDCC 38-22 

43-05-01-07.4. ESTABLISHING PERMIT CONDITIONS. 

1. In addition to conditions required in section 43-05-01-07.3, the commission shall 

establish conditions, as required on a case-by-case basis. Storage facility permits 

shall include conditions meeting the requirements of this chapter and such additional 

conditions as are necessary to prevent the endangerment of underground sources of 

drinking water. 

2. The commission shall establish conditions in any permit as required on a 

case-by-case basis, to provide for and assure compliance with all statutory or 

regulatory requirements which take effect prior to final administrative disposition of 

the permit. 

3. New or reissued permits, and to the extent allowed under section 43-05-01-12 

modified or revoked and reissued permits, shall incorporate each of the applicable 

requirements referenced in this section. 
 (XI-24) 04/2013 

4. All permit conditions shall be incorporated either expressly or by reference. If 

incorporated by reference, a specific citation to the applicable regulations or 

requirements must be given in the permit. 

History: Effective April 1, 2013. 

General Authority Law Implemented 

NDCC 28-32-02 NDCC 38-22 

 43-05-01-08. STORAGE FACILITY PERMIT HEARING.

 1. The commission shall hold a public hearing before issuing a storage facility permit. 

At least forty-five days prior to the hearing, the applicant shall give notice of the 

hearing to the following: 

 a. Each operator of mineral extraction activities within the facility area and within 

one-half mile [.80 kilometer] of its outside boundary; 

 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 facility 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 given by the applicant must contain: 

 a. A legal description of the land within the facility area. 

 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 and draft permit may be 

obtained from the commission. 
 (XI-25) 04/2013 

 d. A statement that all comments regarding the storage facility permit application 

must be in writing and submitted to the commission prior to the hearing or 

presented at the hearing. 

 e. A statement that amalgamation of the storage reservoirs pore space is required 

to operate the storage facility, that the commission may require that the pore 

space owned by nonconsenting owners be included in the storage facility and 

subject to geologic storage, and the amalgamation of pore space will be 

considered at the hearing. 

 3. The commission shall give at least a thirty-day public notice and comment period for 

a draft storage facility permit, except in an emergency, including notice 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 filed 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 and draft permit will be considered. 

4. The public notice given by the commission must contain the following: 

 a. Name and address of the commission; 

b. Name and address of the applicant; 

 c. A brief description of the nature and purpose of the hearing, including the 

applicable rules and procedures; 

 d. A brief description of the activity described in the storage facility permit 

application or the draft storage facility permit; 

 e. Name, address, and telephone number of a person from whom interested 

persons may obtain further information, including copies of the draft storage 

facility permit, fact sheet, and the storage facility permit application; 

 f. A brief description of the comment procedures and other procedures by which 

the public may participate in the final permit decision; 

 g. The date of any previous public notices relating to the storage facility; and 

 h. Any additional information that the commission requires. 
 (XI-26) 04/2013 

5. Public notice shall be given by the following methods: 

 a. By mailing or e-mailing a copy of the notice, the fact sheet, the storage facility 

permit application, and draft permit to the following: 

 (1) The applicant; 

 (2) The state department of health; 

 (3) The state geological survey; 

 (4) The state water commission; 

 (5) The United States environmental protection agency; and 

 (6) Federal and state agencies with jurisdiction over fish and wildlife 

resources, the advisory council on historic preservation, and state historic 

preservation officers, including any affected Indian tribes and the bureau 

of Indian affairs. 

 b. By mailing or e-mailing a copy of the public notice to the following: 

 (1) To any unit of local government having jurisdiction over the area where 

the storage facility is proposed to be located and to each state agency 

having any authority under state law with respect to the construction or 

operation of such facility. 

 (2) Any other person or group either upon request or on a departmental 

mailing list to receive geologic storage of carbon dioxide public notices: 

 (a) Including those who request in writing to be on the list; 

(b) Persons on ‘‘area lists’’ from past permit proceedings in that area; 

and 

(c) Notifying the public of the opportunity to be put on the mailing list 

through periodic publication in the public press and in such 

publications as state-funded newsletters, environmental bulletins, or 

state law journals. The commission may update the mailing list 

from time to time by requesting written indication of continued 

interest from those listed. The commission may delete from the list 

the name of any person who fails to respond to such a request. 

 6. During the public comment period any interested person may submit written 

comments on the draft storage facility permit or the storage facility permit 
 (XI-27) 04/2013 

application. All comments shall be considered in making the final decision and shall 

be answered when a final storage facility permit is issued. The response to 

comments must include: 

 a. Provisions, if any, of the draft permit that have been changed in the final 

permit decision, and the reasons for the change; and 

 b. A brief description and response to all significant comments on the draft permit 

or the permit application. 

 7. The response to all applicable comments shall be available to the public. 

History: Effective April 1, 2010; amended effective April 1, 2013. 

General Authority Law Implemented 

NDCC 28-32-02 NDCC 38-22 

 43-05-01-09. WELL PERMIT APPLICATION REQUIREMENTS. 

 1. Following receipt of a storage facility permit, the storage operator shall obtain a 

permit 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 form 25 provided by the commission and must include at a minimum: 

 a. An accurate plat certified by a registered 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 facility area boundary. The plat must 

show the latitude and longitude of the proposed well location to the nearest 

tenth of a second. 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 
 (XI-28) 04/2013 

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 confining strata above the reservoirs 

and the stratigraphic position and thickness of the reservoir; and 

 e. The proposed pad layout, including cut and fill diagrams. 

 3. Within thirty days after 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 final 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 confining 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 affidavit specifying the chemical constituents, their relative proportions and 

the physical properties of the carbon dioxide stream, and the source of the 

carbon dioxide stream; 

 e. Proof that the long string of casing of the well is cemented adequately so that 

the carbon dioxide is confined to the storage reservoirs. Such proof must be 

provided in the form of a cement bond log or the results of a fluid movement 

study or such other method specified by the commission; 

 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 
 (XI-29) 04/2013 

was run within one calendar year preceding the request for a conversion permit 

for a previously drilled well; 

g. The final area of review based on modeling, using data obtained during logging 

and testing of the well and the formation, including any relevant updates on the 

geologic structure and hydrogeologic properties of the proposed storage 

reservoir and overlying formations; 

h. Information on the compatibility of the carbon dioxide stream with fluids in the 

injection zone and minerals in both the injection and the confining zone, based 

on the results of the formation testing program, and with the materials used to 

construct the well; 

i. The results of the formation testing program; 

j. The status of corrective action on wells in the area of review; 

k. All available logging and testing program data on the well; 

l. Any updates to the proposed area of review and corrective action plan, testing 

and monitoring plan, injection well plugging plan, postinjection site care and 

facility closure plan, and the emergency and remedial response plan, which are 

necessary to address new information collected during logging and testing of 

the well; and 

m. Any other information that the commission requires. 

History: Effective April 1, 2010; amended effective April 1, 2013. 

General Authority Law Implemented 

NDCC 28-32-02 NDCC 38-22 

43-05-01-09.1. FINANCIAL RESPONSIBILITY. 

 1. The storage operator shall demonstrate and maintain financial responsibility as 

determined by the commission that meets the following conditions: 

a. The qualifying financial responsibility instrument used must be from the 

following list of qualifying instruments: 

(1) Trust funds; 

(2) Surety or cash bonds; 

(3) Letter of credit; 
 (XI-30) 04/2013 

(4) Insurance; 

(5) Self-insurance (i.e., financial test and corporate guarantee); 

(6) Escrow account; or 

(7) Any other instrument the commission finds satisfactory. 

b. The qualifying financial responsibility instrument must be sufficient to cover 

the cost of: 

(1) Corrective action that meets the requirements of section 43-05-01-05.1; 

(2) Injection well plugging that meets the requirements of section 

43-05-01-11.5; 

(3) Postinjection site care and facility closure that meets the requirements of 

section 43-05-01-19; and 

(4) Emergency and remedial response that meets the requirements of section 

43-05-01-13. 

c. The qualifying financial responsibility instrument must be sufficient to address 

endangerment of underground sources of drinking water. 

d. The qualifying financial responsibility instrument must comprise protective 

conditions of coverage. 

(1) Protective conditions of coverage must include at a minimum cancellation, 

renewal, and continuation provisions; specifications on when the provider 

becomes liable following a notice of cancellation if there is a failure to 

renew with a new qualifying financial responsibility instrument; and 

requirements for the provider to meet a minimum rating, minimum 

capitalization, and ability to pass the bond rating when applicable. 

 

(2) Cancellation. The storage operator shall provide that its financial 

mechanism may not cancel, terminate, or fail to renew except for failure to 

pay such financial instrument. If there is a failure to pay the financial 

instrument, the financial institution may elect to cancel, terminate, or fail 

to renew the instrument by sending notice by certified mail to the storage 

operator and the commission. The cancellation must not be final for one 

hundred twenty days after receipt of cancellation notice. The storage 

operator shall provide an alternate qualifying financial responsibility 

demonstration within sixty days of notice of cancellation, and if it is not 

acceptable or possible, any funds from the instrument being canceled must 
 (XI-31) 04/2013 

be released to the commission within sixty days of notification by the 

commission. 

(3) Renewal. The storage operator shall renew all qualifying financial 

responsibility instruments, if an instrument expires, for the entire term of 

the geologic sequestration project. The instrument must be automatically 

renewed as long as the storage operator has the option of renewal at the 

face amount of the expiring instrument. The automatic renewal must, at a 

minimum, provide the storage operator with the option of renewal at the 

face amount of the expiring financial instrument. 

(4) Cancellation, termination, or failure to renew may not occur and the 

financial instrument will remain in full force and effect in the event that on 

or before the date of expiration: 

 (a) The commission deems the facility abandoned; 

 (b) The permit is terminated or revoked or a new permit is denied; 

 (c) Closure is ordered by the commission or a United States district 

court or other court of competent jurisdiction; 

 (d) The storage operator is named as debtor in a voluntary or involuntary 

proceeding under title 11 (bankruptcy), United States Code; or 

 (e) The amount due is paid. 

e. The qualifying financial responsibility instrument is subject to the 

commission’s approval. 

(1) The commission shall consider and approve the qualifying financial 

responsibility demonstration for all the phases of the geologic 

sequestration project prior to issuing a storage facility permit. 

(2) The storage operator shall provide any updated information related to its 

qualifying financial responsibility instrument on an annual basis and, if 

there are any changes, the commission must evaluate, within a reasonable 

time, the qualifying financial responsibility demonstration to confirm that 

the instrument used remains adequate. The storage operator shall maintain 

financial responsibility requirements regardless of the status of the 

commission’s review of the financial responsibility demonstration. 

(3) The commission may disapprove the use of a financial instrument if it 

determines that it is not sufficient to meet the requirements of this section. 
 (XI-32) 04/2013 

f. Upon the commission’s approval, the storage operator may demonstrate 

financial responsibility by using one or multiple qualifying financial 

responsibility instruments for specific phases of the geologic sequestration 

project. 

If the storage operator combines more than one instrument for a specific 

geologic sequestration phase (e.g., well plugging), such combination must be 

limited to instruments that are not based on financial strength or performance 

(i.e., self-insurance or performance bond), for example trust funds, surety 

bonds guaranteeing payment into a trust fund, letters of credit, escrow account, 

and insurance. In this case, it is the combination of mechanisms, rather than 

the single mechanism, which must provide financial responsibility for an 

amount at least equal to the current cost estimate. 

g. When using a third-party instrument to demonstrate financial responsibility, the 

storage operator shall provide proof that the third-party providers either have 

passed financial strength requirements based on credit ratings; or have met a 

minimum rating, minimum capitalization, and ability to pass the bond rating 

when applicable. 

h. The storage operator using certain types of third party instruments shall 

establish a standby trust to enable the commission to be party to the financial 

responsibility agreement without the commission being the beneficiary of any 

funds. The standby trust fund must be used along with other qualifying 

financial responsibility instruments (e.g., surety bonds, letters of credit, or 

escrow accounts) to provide a location to place funds if needed. 

i. If the storage operator uses a surety bond or cash bond to satisfy its financial 

responsibility requirements, the storage operator shall be the principal on the 

bond and each surety bond must be executed by a responsible surety company 

authorized to transact business in North Dakota. 

 j. If the storage operator uses an escrow account to satisfy its financial 

responsibility requirements, the account must segregate funds sufficient to 

cover estimated costs for geologic sequestration financial responsibility from 

other accounts and uses. 

 k. If the storage operator or its guarantor uses self-insurance to satisfy its financial 

responsibility requirements, the storage operator shall: 

 (1) Meet a tangible net worth of an amount approved by the commission; 

 (2) Have a net working capital and tangible net worth each at least six times 

the sum of the current well plugging, postinjection site care, and facility 

closure cost; 
 (XI-33) 04/2013 

 (3) Have assets located in the United States amounting to at least ninety 

percent of total assets or at least six times the sum of the current well 

plugging, postinjection site care, and facility closure cost; and 

 (4) Must submit a report of its bond rating and financial information annually. 

 l. In addition to the requirements in subdivision k, the storage operator shall 

either: 

(1) Have a bond rating test of AAA, AA, A, or BBB as issued by Standard & 

Poor’s, or Aaa, Aa, A, or Baa as issued by Moody’s; or 

(2) Meet all of the following five financial ratio thresholds: 

 (a) A ratio of total liabilities to net worth less than 2.0; 

 (b) A ratio of current assets to current liabilities greater than 1.5; 

 (c) A ratio of the sum of net income plus depreciation, depletion, and 

amortization to total liabilities greater than 0.1; 

 (d) A ratio of current assets minus current liabilities to total assets 

greater than -0.1; and 

 (e) A net profit (revenues minus expenses) greater than zero. 

 m. The storage operator who is not able to meet corporate financial test criteria in 

the preceding provision, may arrange a corporate guarantee by demonstrating 

that its corporate parent meets the financial test requirements on its behalf. The 

parent’s demonstration that it meets the financial test requirement is insufficient 

if it has not also guaranteed to fulfill the obligations for the storage operator. 

n. If the storage operator uses an insurance policy to satisfy its financial 

responsibility requirements, the insurance policy must be obtained from a 

third-party provider. 

2. The requirement to maintain commission-approved qualifying financial 

responsibility and resources is directly enforceable regardless of whether the 

requirement is a condition of the permit. 

a. The storage operator shall maintain qualifying financial responsibility and 

resources until the commission approves project completion. 

b. The storage operator may be released from a financial instrument in the 

following circumstances: 
 (XI-34) 04/2013 

(1) The storage operator has completed the phase of the geologic 

sequestration project for which the financial instrument was required and 

has fulfilled all its financial obligations as determined by the commission, 

including obtaining financial responsibility for the next phase of the 

geologic sequestration project, if required; 

(2) The storage operator has submitted a replacement financial instrument and 

received written approval from the commission accepting the new 

financial instrument and releasing the storage operator from the previous 

financial instrument; or 

(3) The commission approves project completion. 

3. The storage operator shall have a detailed written estimate, in current dollars, of the 

cost of performing corrective action on wells in the area of review, plugging the 

injection well, postinjection site care and facility closure, and emergency and 

remedial response. 

 

a. The cost estimate must be performed for each phase separately and must be 

based on the costs to the commission of hiring a third party to perform the 

required activities. A third party is a party who is not within the corporate 

structure of the storage operator; 

b. During the active life of the geologic sequestration project, the storage operator 

shall adjust the cost estimate for inflation within sixty days prior to the 

anniversary date of the establishment of the financial instrument used to 

comply with this section and provide this adjustment to the commission. The 

storage operator shall also provide to the commission written updates of 

adjustments to the cost estimate within sixty days of any amendments to the 

area of review and corrective action plan, the injection well plugging plan, the 

postinjection site care and facility closure plan, and the emergency and 

remedial response plan; 

c. Any decrease or increase to the initial cost estimate is subject to the 

commission’s approval. During the active life of the geologic sequestration 

project, the storage operator shall revise the cost estimate no later than sixty 

days after the commission has approved the request to modify the area of 

review and corrective action plan, the injection well plugging plan, the 

postinjection site care and facility closure plan, and the emergency and 

remedial response plan, if the change in the plan increases the cost. If the 

change to the plans decreases the cost, any withdrawal of funds is subject to the 

commission’s approval. Any decrease to the value of the financial 

responsibility instrument must first be approved by the commission. The 

revised cost estimate must be adjusted for inflation; and 
 (XI-35) 04/2013 

d. Whenever the current cost estimate increases to an amount greater than the face 

amount of a financial instrument currently in use, the storage operator, within 

sixty days after the increase, shall either cause the face amount to be increased 

to an amount at least equal to the current cost estimate and submit evidence of 

such increase to the commission, or obtain other qualifying financial 

responsibility instruments to cover the increase. Whenever the current cost 

estimate decreases, the face amount of the financial assurance instrument may 

be reduced to the amount of the current cost estimate only after the storage 

operator has received written approval from the commission. 

4. The storage operator shall notify the commission by certified mail of adverse 

financial conditions that may affect the operator’s ability to carry out its obligations 

under state and federal laws. 

a. If the storage operator or the third-party provider of a qualifying financial 

responsibility instrument is named as the debtor in a bankruptcy proceeding, 

the notice to the commission must be made within ten days after 

commencement of the proceeding; 

b. A guarantor of a corporate guarantee shall make the notification required in 

subdivision a if the guarantor is named as debtor, as required under the terms of 

the corporate guarantee; and 

c. The storage operator who fulfills its financial responsibility requirements by 

obtaining a trust fund, surety bond, letter of credit, escrow account, or 

insurance policy will be deemed to be without the required financial assurance 

in the event of bankruptcy of the trustee or issuing institution, or a suspension 

or revocation of the authority of the trustee institution to act as trustee of the 

institution issuing the trust fund, surety bond, letter of credit, escrow account, 

or insurance policy. The storage operator shall establish other financial 

assurance within sixty days after such an event. 

5. The storage operator shall provide an adjustment of the cost estimate to the 

commission within sixty days of notification by the commission, if the commission 

determines during the annual evaluation of the qualifying financial responsibility 

instrument that the most recent demonstration is no longer adequate to cover the 

operator’s obligations under state and federal laws. 

6. The use and length of pay-in periods for trust funds or escrow accounts are subject to 

the commission’s approval. The storage operator may make periodic deposits into a 

trust fund or escrow account throughout the operational period in order to ensure 

sufficient funds are available to carry out the required activities on the date on which 

they may occur. The commission shall take into account project-specific risk 

assessments, projected timing of activities (e.g., postinjection site care), and interest 
 (XI-36) 04/2013 

accumulation in determining whether sufficient funds are available to carry out the 

required activities. 

History: Effective April 1, 2013. 

General Authority Law Implemented 

NDCC 28-32-02 NDCC 38-22 

 43-05-01-10. INJECTION 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. 

3. Injection well permits must be issued for the operating life of the storage facility and 

the closure period. 

4. The commission shall review each issued injection well permit at least once every 

five years to determine whether it should be modified, revoked, or a minor 

modification made. 

5. On a case-by-case basis when required by the commission, the storage operator shall 

submit a schedule of compliance leading to full compliance with all provisions of 

this chapter and North Dakota Century Code chapter 38-22. 

a. Any schedules of compliance shall require compliance as soon as possible, and 

in no case later than three years after the effective date of the permit. 

b. If the schedule of compliance is for a duration of more than one year from the 

date of permit issuance, then interim requirements and completion dates (not to 

exceed one year) must be incorporated into the compliance schedule and 

permit. 

c. No later than thirty days following each interim and final date, the storage 

operator shall submit progress reports to the commission. 

6. For the purposes of enforcement, compliance with an injection well permit during its 

term means compliance with this chapter and North Dakota Century Code chapter 

38-22. However, a permit may be modified, revoked, or terminated during its term 

pursuant to section 43-05-01-12. 
 (XI-37) 04/2013 

7. The issuance of an injection well permit does not convey any property rights of any 

sort or any exclusive privilege. 

8. The issuance of an injection well permit does not authorize any injury to persons or 

property or invasion of other private rights or any infringement of state or local law 

or regulations. 

9. Injection is prohibited until construction is complete, and 

a. The storage operator has submitted notice of completion of construction to the 

commission; 

b. The commission has issued an approved permit to operate an injection well; 

and 

c. The commission has inspected or otherwise reviewed the injection well and 

finds it is in compliance with the conditions of the permit; or 

d. The storage operator has not received notice from the commission of its intent 

to inspect the injection well within fourteen days of the date of the notice in 

subdivision a, in which case prior inspection or review is waived and the 

storage operator may commence permitted injection. The commission shall 

include in the notice a reasonable time period in which it shall inspect the well. 

10. The permit shall establish any maximum injection volumes and pressures necessary 

to assure that fractures are not initiated in the confining zone, that injected fluids do 

not migrate into any underground source of drinking water, that formation fluids are 

not displaced into any underground source of drinking water, and to assure 

compliance with section 43-05-01-11.3. 

History: Effective April 1, 2010; amended effective April 1, 2013. 

General Authority Law Implemented 

NDCC 28-32-02 NDCC 38-22 

 43-05-01-11. INJECTION WELL CONSTRUCTION AND COMPLETION 

STANDARDS. 

1. The storage operator shall ensure that all injection wells are constructed and 

completed to prevent movement of the carbon dioxide stream or fluids into 

underground sources of drinking water or outside the authorized storage reservoir. 

The injection wells must be constructed and completed in a way that allows the use 

of appropriate testing devices and workover tools. The casing and cement or other 

materials used in the construction of each new injection well must be designed for 
 (XI-38) 04/2013 

the well’s life expectancy. In determining and specifying casing and cementing 

requirements, all of the following factors must be considered: 

a. Depth to the injection zone; 

b. Injection pressure, external pressure, internal pressure, and axial loading; 

c. Hole size; 

d. Size and grade of all casing strings (wall thickness, external diameter, nominal 

weight, length, joint specification, and construction material); 

e. Corrosiveness of the carbon dioxide stream and formation fluids; 

f. Down-hole temperatures; 

g. Lithology of injection and confining zone; 

h. Type or grade of cement and cement additives; and 

i. Quantity, chemical composition, and temperature of the carbon dioxide stream. 

 2. Surface casing in all newly drilled carbon dioxide injection and subsurface 

observation wells drilled below the underground source of drinking water must be 

set fifty feet [15.24 meters] below the base of the lowermost underground source of 

drinking water and cemented pursuant to section 43-02-03-21. 

 3. The long string casing in all injection and subsurface observation wells must be 

cemented pursuant to section 43-02-03-21. Sufficient cement must be used on the 

long string casing to fill the annular space behind the casing to the surface of the 

ground and a sufficient number of centralizers shall be used to assure a good cement 

job. The long string casing must extend to the injection zone. 

 4. Any liner set in the well bore must be cemented with a sufficient volume of cement 

to fill the annular space. 

 5 All cements used in the cementing of casings in injection and subsurface observation 

wells must be of sufficient quality to maintain well integrity in the carbon dioxide 

injection environment. Circulation of cement may be accomplished by staging. The 

commission may approve an alternative method of cementing in cases where the 

cement cannot be recirculated to the surface, provided the storage operator can 

demonstrate by using logs that the cement does not allow fluid movement behind the 

well bore. 

 6. All casings must meet the standards specified in any of the following documents, 

which are hereby adopted by reference: 
 (XI-39) 04/2013 

 a. The most recent American petroleum institute bulletin on performance 

properties of casing, tubing, and drill pipe; 

 b. Specification for casing and tubing (United States customary units), American 

petroleum institute specification 5CT, as published by the American petroleum 

institute; 

 c. North Dakota Administrative Code Section 43-02-03-21; or 

 d. Other equivalent casing as approved by the commission. 

 7. 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 6. For new casings, the pressure test conducted 

at the manufacturing mill or fabrication plant may be used to fulfill the requirements 

of subsection 6. 

 8. The location and amount of cement behind casings must be verified by an evaluation 

method approved by the commission. The evaluation method must be capable of 

evaluating cement quality radially and identifying the location of channels to ensure 

that underground sources of drinking water are not endangered. 

 9. All injection wells must be completed with and injection must be through tubing and 

packer. In order for the commission to determine and specify requirements for 

tubing and packer, the storage operator shall submit the following information: 

a. Depth of setting; 

b. Characteristics of the carbon dioxide stream (chemical content, corrosiveness, 

temperature, and density) and formation fluids; 

c. Maximum proposed injection pressure; 

d. Maximum proposed annular pressure; 

e. Proposed injection rate (intermittent or continuous) and volume and mass of 

the carbon dioxide stream; 

f. Size of tubing and casing; and 

g. Tubing tensile, burst, and collapse strengths. 

10. All tubing strings must meet the standards contained in subsection 6. All tubing 

must be new tubing or reconditioned tubing of a quality equivalent to new tubing 
 (XI-40) 04/2013 

and that has been pressure-tested. For new tubing, the pressure test conducted at the 

manufacturing mill or fabrication plant may be used to fulfill this requirement. 

 11. All wellhead components, including the casinghead and tubing head, valves, and 

fittings, must be made of steel having operating pressure ratings sufficient to exceed 

the maximum injection pressures computed at the wellhead and to withstand the 

corrosive nature of carbon dioxide. Each flow line connected to the wellhead must 

be equipped with a manually operated positive shutoff valve located on or near the 

wellhead. 

12. 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. 

 13. 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. 

 14. All newly drilled wells must establish internal and external mechanical integrity as 

specified 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 specified 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 fifty 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. 

15. The commission has the authority to witness all mechanical integrity tests conducted 

by the storage operator. 

16. 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, 
 (XI-41) 04/2013 

within ninety days or as otherwise directed by the commission, perform one of the 

following: 

 a. Repair and retest the well to demonstrate mechanical integrity; or 

 b. Properly plug the well. 

17. All injection wells must be equipped with shutoff systems designed to alert the 

operator and shut in wells when necessary. 

18. Additional requirements may be required by the commission to address specific 

circumstances and types of projects. 

History: Effective April 1, 2010; amended effective April 1, 2013. 

General Authority Law Implemented 

NDCC 28-32-02 NDCC 38-22 

43-05-01-11.1. MECHANICAL INTEGRITY - INJECTION WELLS. 

 1. An injection well has mechanical integrity if: 

 a. There is no significant leak in the casing, tubing, or packer; and 

 b. There is no significant fluid movement into an underground source of drinking 

water through channels adjacent to the well bore. 

 2. To evaluate the absence of significant leaks, the storage operator shall, following an 

initial annulus pressure test, continuously monitor injection pressure, rate, injected 

volumes, pressure on the annulus between tubing and long string casing, and 

annulus fluid volume. 

3. On a schedule determined by the commission, but at least annually, the storage 

operator shall use one of the following methods to determine the absence of 

significant fluid movement: 

 a. An approved tracer survey; or 

 b. A temperature or noise log. 

4. If required by the commission, at a frequency specified in the testing and monitoring 

plan, the storage operator shall run a casing inspection log to determine the presence 

or absence of corrosion in the long string casing. 
 (XI-42) 04/2013 

5. The commission may require alternative and additional methods to evaluate 

mechanical integrity. Also, the commission may allow the use of an alternative 

method to demonstrate mechanical integrity other than those listed above with the 

written approval of the United States environmental protection agency administrator. 

To obtain approval for a new mechanical integrity test, the commission shall submit 

a written request to the United States environmental protection agency administrator. 

 

6. To conduct and evaluate mechanical integrity, the storage operator shall apply 

methods and standards generally accepted in the industry. When the storage 

operator reports the results of mechanical integrity tests to the commission, the 

storage operator shall include a description of the test and the method used. 

 7. The commission may require additional or alternative tests if the results presented 

by the storage operator are not satisfactory to the commission to demonstrate 

mechanical integrity. 

8. If the commission determines that an injection well lacks mechanical integrity 

pursuant to this section, the commission shall give written notice of its 

determination to the storage operator. Unless the commission requires immediate 

cessation of injection, the storage operator shall cease injection into the well within 

forty-eight hours of receipt of the commission’s determination. The commission 

may allow plugging of the well pursuant to the requirements of section 

43-05-01-11.5 or require the storage operator to perform such additional 

construction, operation, monitoring, reporting, and corrective action as is necessary 

to prevent the movement of fluid into or between underground sources of drinking 

water caused by the lack of mechanical integrity. The storage operator may resume 

injection upon written notification from the commission that the storage operator has 

demonstrated mechanical integrity pursuant to this section. 

9. The commission may allow the storage operator of an injection well that lacks 

mechanical integrity pursuant to this section to continue or resume injection, if the 

storage operator has made a satisfactory demonstration that there is no movement of 

fluid into or between underground sources of drinking water. 

History: Effective April 1, 2013. 

General Authority Law Implemented 

NDCC 28-32-02 NDCC 38-22 

43-05-01-11.2. LOGGING, SAMPLING, AND TESTING PRIOR TO INJECTION 

WELL OPERATION. 

 1. During the drilling and construction of an injection well, the storage operator shall 

run appropriate logs, surveys, and tests to determine or verify the depth, thickness, 

porosity, permeability, lithology, and salinity of any formation fluids in all relevant 
 (XI-43) 04/2013 

geologic formations to ensure conformance with the injection well construction 

requirements under section 43-05-01-11, and to establish accurate baseline data 

against which future measurements may be compared. The storage operator shall 

submit to the commission a descriptive report prepared by a log analyst that includes 

an interpretation of the results of such logs and tests. At a minimum, such logs and 

tests must include: 

 a. Deviation checks during drilling on all holes constructed by drilling a pilot hole 

which is enlarged by reaming or another method. Such checks must be at 

sufficiently frequent intervals to determine the location of the borehole and to 

ensure that vertical avenues for fluid movement in the form of diverging holes 

are not created during drilling. 

 b. Before and upon installing the surface casing: 

 (1) Resistivity, spontaneous potential, and caliper logs before the casing is 

installed; and 

 (2) A cement bond and variable density log to evaluate cement quality 

radially and a temperature log after the casing is set and cemented. 

 c. Before and upon installation of the long string casing: 

 (1) Resistivity, spontaneous potential, porosity, caliper, gamma ray, fracture 

finder logs, and any other logs the commission requires for the given 

geology before the casing is installed; and 

 (2) A cement bond and variable density log, and a temperature log after the 

casing is set and cemented. 

 d. A series of tests designed to demonstrate the internal and external mechanical 

integrity of injection wells, which may include: 

 (1) A pressure test with liquid or gas; 

 (2) A tracer survey; 

 (3) A temperature or noise log; 

 (4) A casing inspection log; and 

 e. Any alternative methods that provide equivalent or better information and that 

the commission requires or approves. 

 

 2. The storage operator shall take whole cores or sidewall cores of the injection zone 

and confining zone and formation fluid samples from the injection zone, and shall 
 (XI-44) 04/2013 

submit to the commission a detailed report prepared by a log analyst that includes 

well log analyses (including well logs), core analyses, and formation fluid sample 

information. The commission may accept information on cores from nearby wells if 

the storage operator can demonstrate that core retrieval is not possible and that such 

cores are representative of conditions at the well. The commission may require the 

storage operator to core other formations in the borehole. 

 3. The storage operator shall record the fluid temperature, pH, conductivity, reservoir 

pressure, and static fluid level of the injection zone. 

 4. At a minimum, the storage operator shall determine or calculate the following 

information concerning the injection and confining zone: 

 a. Fracture pressure; 

 b. Other physical and chemical characteristics of the injection and confining zone; 

and 

 c. Physical and chemical characteristics of the formation fluids in the injection 

zone. 

 5. Upon completion, but prior to operation, the storage operator shall conduct the 

following tests to verify hydrogeologic characteristics of the injection zone: 

 a. Pressure fall-off test; and 

 b. Pump test; or 

 c. Injectivity test. 

 6. The storage operator shall provide the commission with the opportunity to witness 

all logging and testing carried out under this section. The storage operator shall 

submit a schedule of such activities to the commission thirty days prior to 

conducting the first test and submit any changes to the schedule thirty days prior to 

the next scheduled test. 

History: Effective April 1, 2013. 

General Authority Law Implemented 

NDCC 28-32-02 NDCC 38-22 
 (XI-45) 04/2013 

43-05-01-11.3. INJECTION WELL OPERATING REQUIREMENTS. 

 1. Except during stimulation, the storage operator shall ensure that injection pressure 

does not exceed ninety percent of the fracture pressure of the injection zone so as to 

ensure that the injection does not initiate new fractures or propagate existing 

fractures in the injection zone. Injection pressure must never initiate fractures in the 

confining zone or cause the movement of injection or formation fluids that endanger 

an underground source of drinking water. All stimulation programs are subject to 

the commission’s approval as part of the storage facility permit application and 

incorporated into the permit. 

 2. Injection between the outermost casing protecting underground sources of drinking 

water and the well bore is prohibited. 

 3. The storage operator shall fill the annulus between the tubing and the long string 

casing with a noncorrosive fluid approved by the commission. The storage operator 

shall maintain on the annulus a pressure that exceeds the operating injection 

pressure, unless the commission determines that such requirement might harm the 

integrity of the well or endanger underground sources of drinking water. 

 

 4. Other than during periods approved by the commission in which the sealed 

tubing-casing annulus is disassembled for maintenance or corrective procedures, the 

storage operator shall maintain mechanical integrity of the injection well at all times. 

 5. The storage operator shall install and use: 

 a. Continuous recording devices to monitor the injection pressure; the rate, 

volume or mass, and temperature of the carbon dioxide stream; and the 

pressure on the annulus between the tubing and the long string casing and 

annulus fluid volume; and 

 b. Alarms and automatic surface shutoff systems or, at the discretion of the 

commission, down-hole shutoff systems (e.g., automatic shutoff, check valves) 

or, other mechanical devices that provide equivalent protection that are 

designed to alert the operator and shut-in the well when operating parameters 

diverge beyond permitted ranges or gradients specified in the permit. 

 6. If a shutdown (down-hole or at the surface) is triggered or a loss of mechanical 

integrity is discovered, the storage operator shall immediately investigate and 

identify the cause as expeditiously as possible. If, upon such investigation, the well 

appears to be lacking mechanical integrity, or if monitoring required under 

subsection 5 indicates that the well may lack mechanical integrity, the storage 

operator shall: 

 a. Immediately cease injection; 
 (XI-46) 04/2013 

b. Take all steps reasonably necessary to determine whether there may have been 

a release of the injected carbon dioxide stream or formation fluids into any 

unauthorized zone; 

 c. Notify the commission within twenty-four hours; 

 d. Restore and demonstrate mechanical integrity to the satisfaction of the 

commission prior to resuming injection; and 

 e. Notify the commission when injection can be expected to resume. 

 7. If any monitoring indicates the movement of injection or formation fluids into 

underground sources of drinking water, the commission shall prescribe such 

additional requirements for construction, corrective action, operation, monitoring, or 

reporting as are necessary to prevent such movement. These additional 

requirements must be imposed by modifying or terminating the permit in accordance 

with section 43-05-01-12 if the commission determines that cause exists, or 

appropriate enforcement action may be taken if the permit has been violated. 

History: Effective April 1, 2013. 

General Authority Law Implemented 

NDCC 28-32-02 NDCC 38-22 

 43-05-01-11.4. TESTING AND MONITORING REQUIREMENTS. The storage 

operator shall prepare, maintain, and comply with a testing and monitoring plan to verify that the 

geologic sequestration project is operating as permitted and is not endangering underground 

sources of drinking water. The requirement to maintain and implement a commission-approved 

plan is directly enforceable regardless of whether the requirement is a condition of the permit. 

The plan must be submitted with the storage facility permit application for commission approval 

and must include a description of how the storage operator will meet the requirements of this 

section, including accessing sites for all necessary monitoring and testing during the life of the 

project. 

 1. The testing and monitoring plan must include: 

 a. Analysis of the carbon dioxide stream in compliance with applicable analytical 

methods and standards generally accepted by industry and with sufficient 

frequency to yield data representative of its chemical and physical 

characteristics; 

 b. Installation and use, except during well workovers, of continuous recording 

devices to monitor injection pressure, rate, and volume; the pressure on the 

annulus between the tubing and the long string casing; and the annulus fluid 

volume added; 
 (XI-47) 04/2013 

 c. Corrosion monitoring of the well materials for loss of mass, thickness, 

cracking, pitting, and other signs of corrosion, which must be performed on a 

quarterly basis to ensure that the well components meet the minimum standards 

for material strength and performance by: 

 (1) Analyzing coupons of the well construction materials placed in contact 

with the carbon dioxide stream; 

 (2) Routing the carbon dioxide stream through a loop constructed with the 

material used in the well and inspecting the materials in the loop; or 

 (3) Using an alternative method approved by the commission; 

 d. Periodic monitoring of the ground water quality and geochemical changes 

above the confining zone that may be a result of carbon dioxide movement 

through the confining zone or additional identified zones, including: 

 (1) The location and number of monitoring wells based on specific 

information about the geologic sequestration project, including injection 

rate and volume, geology, the presence of artificial penetrations, and other 

factors; and 

 (2) The monitoring frequency and spatial distribution of monitoring wells 

based on baseline geochemical data and on any modeling results in the 

area of review evaluation. 

 e. A demonstration of external mechanical integrity at least once per year until the 

injection well is plugged; and, if required by the commission, a casing 

inspection log at a frequency established in the testing and monitoring plan; 

 f. A pressure fall-off test at least once every five years unless more frequent 

testing is required by the commission based on site-specific information; 

 g. Testing and monitoring to track the extent of the carbon dioxide plume and the 

presence or absence of elevated pressure (e.g., the pressure front) by using: 

 (1) Direct methods in the injection zone; and 

 (2) Indirect methods (e.g., seismic, electrical, gravity, interferometric 

synthetic aperture radar or electromagnetic surveys and down-hole carbon 

dioxide detection tools), unless the commission determines, based on sitespecific geology, that such methods are not appropriate; 
 (XI-48) 04/2013 

 h. The commission may require surface air monitoring and soil gas monitoring to 

detect movement of carbon dioxide that could endanger an underground source 

of drinking water. Regarding these requirements: 

 

 (1) Design of surface air and soil gas monitoring must be based on potential 

risks to underground sources of drinking water within the area of review; 

 (2) The monitoring frequency and spatial distribution of surface air 

monitoring and soil gas monitoring must be based on using baseline data, 

and the monitoring plan must describe how the proposed monitoring will 

yield useful information on the area of review; and 

 (3) Surface air monitoring and soil gas monitoring methods are subject to the 

commission’s approval; 

 

 i. Any additional monitoring, as required by the commission, necessary to 

support, upgrade, and improve computational modeling of the area of review 

evaluation; 

 j. Periodic reviews of the testing and monitoring plan by the storage operator to 

incorporate monitoring data collected, operational data collected, and the most 

recent area of review reevaluation performed. The storage operator shall 

review the testing and monitoring plan at least once every five years. Based on 

this review, the storage operator shall submit an amended testing and 

monitoring plan or demonstrate to the commission that no amendment to the 

testing and monitoring plan is needed. Any amendments to the testing and 

monitoring plan are subject to the commission’s approval, must be incorporated 

into the permit, and are subject to the permit modification requirements. 

Amended plans or demonstrations must be submitted to the commission as 

follows: 

 (1) Within one year of an area of review reevaluation; 

 (2) Following any significant changes to the facility, such as addition of 

monitoring wells or newly permitted injection wells within the area of 

review, on a schedule determined by the commission; or 

 (3) When required by the commission; and 

 k. A quality assurance and surveillance plan for all testing and monitoring 

requirements. 

 2. Samples and measurements taken for the purpose of monitoring shall be 

representative of the monitored activity. 

 

 3. Records of monitoring information shall include: 
 (XI-49) 04/2013 

 a. The date, exact place, and time of sampling or measurements; 

 b. The individual who performed the sampling or measurements; 

 c. The date analyses were performed; 

 d. The individual who performed the analyses; 

 e. The analytical techniques or methods used; and 

 f. The results of such analyses. 

 4. All permits shall specify: 

 a. Requirements concerning the proper use, maintenance, and installation, when 

appropriate, of monitoring equipment or methods, including biological 

monitoring methods when appropriate; 

 b. Required monitoring, including type, intervals, and frequency sufficient to 

yield data, which are representative of the monitored activity, including when 

appropriate, continuous monitoring; and 

 c. Applicable reporting requirements based upon the impact of the regulated 

activity and as specified throughout this chapter. Reporting shall be no less 

frequent than specified in section 43-05-01-18. 

History: Effective April 1, 2013. 

General Authority Law Implemented 

NDCC 28-32-02 NDCC 38-22 

43-05-01-11.5. INJECTION WELL PLUGGING. 

 1. Prior to the well plugging, the storage operator shall flush each injection well with a 

buffer fluid, determine bottom hole reservoir pressure, and perform a final external 

mechanical integrity test. 

 2. The storage operator shall prepare, maintain, and comply with a plugging plan that is 

acceptable to the commission. The requirement to maintain and implement a 

commission-approved plan is directly enforceable regardless of whether the 

requirement is a condition of the permit. The plan must be submitted as part of the 

storage facility permit application and must include the following: 

 a. Appropriate tests or measures for determining bottom hole reservoir pressure; 
 (XI-50) 04/2013 

 b. Appropriate testing methods to ensure external mechanical integrity; 

 c. The type and number of plugs to be used; 

 d. The placement of each plug, including the elevation of the top and bottom of 

each plug; 

 e. The type, grade, and quantity of material to be used in plugging. The material 

must be compatible with the carbon dioxide stream; and 

 f. The method of placement of the plugs. 

 3. The storage operator shall notify the commission in writing, at least sixty days 

before plugging a well, although the commission may allow a shorter period. At this 

time, if any changes have been made to the original well plugging plan, the storage 

operator shall also provide the revised well plugging plan. Any amendments to the 

plan are subject to the commission’s approval and must be incorporated into the 

storage facility permit and are subject to the permit modification requirements. 

 4. Within sixty days after plugging, the storage operator shall submit a plugging report 

to the commission. The report must be certified as accurate by the storage operator 

and by the person who performed the plugging operation if other than the storage 

operator. The storage operator shall retain the well plugging report until project 

completion. Upon project completion the storage operator shall deliver the records 

to the commission. 

History: Effective April 1, 2013. 

General Authority Law Implemented 

NDCC 28-32-02 NDCC 38-22 

43-05-01-11.6. INJECTION DEPTH WAIVER REQUIREMENTS. 

 1. In seeking a waiver of the requirement to inject below the lowermost underground 

sources of drinking water, the storage operator shall submit a supplemental report 

concurrent with the storage facility permit application. The supplemental report 

must: 

 a. Demonstrate that the injection zone is laterally continuous, is not an 

underground source of drinking water, and is not hydraulically connected to 

underground sources of drinking water; does not outcrop; has adequate 

injectivity, volume, and sufficient porosity to safely contain the injected carbon 

dioxide and formation fluids; and has appropriate geochemistry; 
 (XI-51) 04/2013 

 b. Demonstrate that the injection zone is bounded by laterally continuous, 

impermeable confining units above and below the injection zone adequate to 

prevent fluid movement and pressure buildup outside of the injection zone; and 

that the confining unit is free of transmissive faults and fractures. The report 

shall further characterize the regional fracture properties and demonstrate that 

such fractures will not interfere with injection, serve as conduits, or endanger 

underground sources of drinking water; 

 c. Demonstrate, using computational modeling, that underground sources of 

drinking water above and below the injection zone will not be endangered as a 

result of fluid movement. This modeling must be conducted in conjunction 

with the area of review determination, and is subject to requirements and 

periodic reevaluation; 

 d. Demonstrate that well design and construction, in conjunction with the waiver, 

will ensure isolation of the injectate in lieu of requirements and will meet well 

construction requirements; 

 e. Describe how the monitoring and testing and any additional plans will be 

tailored to the geologic sequestration project to ensure protection of 

underground sources of drinking water above and below the injection zone, if a 

waiver is granted; 

 

 f. Provide information on the location of all the public water supplies affected, 

reasonably likely to be affected, or served by underground sources of drinking 

water in the area of review; and 

 

 g. Provide any other information requested by the commission that the United 

States environmental protection agency regional administrator might find 

useful in making the decision whether to issue a waiver. 

 2. To assist the United States environmental protection agency regional administrator 

in making the decision whether to grant a waiver of the injection depth 

requirements, the commission shall submit to the regional administrator 

documentation of the following: 

 a. An evaluation of the following information as it relates to siting, construction, 

and operation of a geologic sequestration project with a waiver: 

 (1) The integrity of the upper and lower confining units; 

 (2) The suitability of the injection zone (e.g., lateral continuity; lack of 

transmissive faults and fractures; knowledge of current or planned 

artificial penetrations into the injection zone or formations below the 

injection zone); 
 (XI-52) 04/2013 

 (3) The potential capacity of the geologic formation to sequester carbon 

dioxide, accounting for the availability of alternative injection sites; 

 (4) All other site characterization data, the proposed emergency and remedial 

response plan, and a demonstration of financial responsibility; 

 (5) Community needs, demands, and supply from drinking water resources; 

 (6) Planned needs, potential and future use of underground sources of 

drinking water and nonunderground sources of drinking water in the area; 

 (7) Planned or permitted water, hydrocarbon, or mineral resource exploitation 

potential of the proposed injection formation and other formations both 

above and below the injection zone to determine if there are any plans to 

drill through the formation to access resources in or beneath the proposed 

injection zone; 

 (8) The proposed plan for securing alternative resources or treating 

underground sources of drinking water in the event of contamination 

related to the carbon dioxide injection well activity; and 

 (9) Any other applicable considerations or information requested by the 

commission. 

 b. A review of the commission’s consultation with the state department of health 

and federally recognized Indian tribes having jurisdiction over lands within the 

area of review for the injection well for which a waiver is sought. 

 c. Any written waiver-related information submitted by the state department of 

health to the commission. 

 3. The commission shall give public notice that a waiver application has been 

submitted. The notice must include a map of the area of review and state: 

 a. The depth of the proposed injection zone; 

 b. The location of the injection well; 

 c. The name and depth of all underground sources of drinking water within the 

area of review; 

 d. The names of any public water supplies affected, reasonably likely to be 

affected, or served by underground sources of drinking water in the area of 

review; and 

 

 e. The results of the consultation with the state department of health. 
 (XI-53) 04/2013 

 4. Following public notice, the commission shall provide all information received 

through the waiver application process to the United States environmental protection 

agency regional administrator. 

 a. If the regional administrator determines that additional information is required 

to support a decision, the commission shall request that the applicant for the 

waiver provide the information. 

 b. The commission may not issue a waiver without written concurrence from the 

regional administrator. 

 5. Upon receipt of a waiver, the storage operator shall comply with: 

 a. All requirements in sections 43-05-01-5.1, 43-05-01-9.1, 43-05-01-11.1, 

43-05-01-11.2, 43-05-01-11.3, 43-05-01-11.5, 43-05-01-13, and 43-05-01-18. 

 b. All requirements in section 43-05-01-11 with the following modifications: 

 (1) Injection wells must be constructed and completed to prevent movement 

of fluids into any unauthorized zones, including underground sources of 

drinking water. 

 (2) The casing and cementing program must be designed to prevent the 

movement of fluids into any unauthorized zones, including underground 

sources of drinking water in lieu of requirements in section 43-05-01-11. 

 (3) The surface casing must extend through the base of the nearest 

underground source of drinking water directly above the injection zone 

and be cemented to the surface; or, at the commission’s discretion, another 

formation above the injection zone and below the nearest underground 

source of drinking water above the injection zone. 

 c. All requirements in section 43-05-01-11.4 with the following modifications: 

 (1) Ground water quality, geochemical changes, and pressure in the first 

underground source of drinking water immediately above and below the 

injection zone, and in any other formations at the discretion of the 

commission, must be monitored. 

 

 (2) Test and monitor to track the extent of the carbon dioxide plume and the 

presence or absence of elevated pressure (e.g., the pressure front) by using 

direct methods to monitor for pressure changes in the injection zone, and 

indirect methods (e.g., seismic, electrical, gravity, or electromagnetic 

surveys or down-hole carbon dioxide detection tools), unless the 
 (XI-54) 04/2013 

commission determines based on site-specific geology that such methods 

are not appropriate. 

 d. All requirements in section 43-05-01-19 with the following modifications for 

postinjection site care monitoring requirements: 

 (1) Ground water quality, geochemical changes and pressure in the first 

underground source of drinking water immediately above and below the 

injection zone, and in any other formations at the discretion of the 

commission, must be monitored. 

 

 (2) Test and monitor to track the extent of the carbon dioxide plume and the 

presence or absence of elevated pressure (e.g., the pressure front) by using 

direct methods in the injection zone, and indirect methods (e.g., seismic, 

electrical, gravity, or electromagnetic surveys or down-hole carbon 

dioxide detection tools), unless the commission determines based on sitespecific geology that such methods are not appropriate. 

e. Any additional requirements requested by the commission to ensure protection 

of underground sources of drinking water above and below the injection zone. 

History: Effective April 1, 2013. 

General Authority Law Implemented 

NDCC 28-32-02 NDCC 38-22 

43-05-01-12 MODIFICATION, REVOCATION, AND REISSUANCE OR 

TERMINATION OF PERMITS. 

1. Permits are subject to review by the commission. Any interested person (i.e., the 

storage operator, local governments having jurisdiction over land within the area of 

review, and any person who has suffered or will suffer actual injury or economic 

damage) may request that the commission review permits issued under this chapter 

for one of the reasons set forth below. All requests must be in writing and must 

contain facts or reasons supporting the request. If the commission determines that 

the request may have merit or at the commission’s initiative for one or more of the 

reasons set forth below, the commission may review the permit. After review, the 

commission may modify or revoke a permit. Permits may be modified or revoked 

and reissued when the commission determines one of the following events has 

occurred: 

a. Changes to the facility area; 

 b. Injecting into a reservoir not specified in the permit; 
 (XI-55) 04/2013 

 c. Any increase greater than the permitted carbon dioxide storage volume; 

 d. Changes in the chemical composition of the carbon dioxide stream; 

e. Area of review reevaluations under subdivision a of subsection 4 of section 

43-05-01-05.1; 

f. Amendment to the testing and monitoring plan under subdivision j of 

subsection 1 of section 43-05-01-11.4; 

g. Amendment to the injection well plugging plan under subsection 3 of section 

43-05-01-11.5; 

h. Amendment to the postinjection site care and facility closure plan under 

subsection 3 of section 43-05-01-19; 

i. Amendment to the emergency and remedial response plan under subsection 4 

of section 43-05-01-13; 

j. Review of monitoring and testing results conducted in accordance with 

injection well permit requirements; 

k. The commission receives information that was not available at the time of 

permit issuance. Permits may be modified during their terms for this cause 

only if the information was not available at the time of permit issuance (other 

than revised regulations, guidance, or test methods) and would have justified 

the application of different permit conditions at the time of issuance; 

l. The standards or regulations on which the storage facility permit was based 

have been changed by promulgation of new or amended standards or 

regulations or by judicial decision after the permit was issued; 

m. The commission determines good cause exists for modification of a 

compliance schedule, such as an act of God, strike, flood, or materials shortage 

or other events over which the storage operator has little or no control and for 

which there is no reasonably available remedy; or 

n. There are material and substantial alterations or additions to the permitted 

facility or activity which occurred after permit issuance which justify the 

application of permit conditions that are different or absent in the existing 

permit. 

2. If the commission tentatively decides to modify or revoke and reissue a permit, the 

commission shall prepare a draft permit incorporating the proposed changes. The 

commission may request additional information and, in the case of a modified 

permit, may require the submission of an updated application. In the case of a 
 (XI-56) 04/2013 

revoked and reissued permit, the commission shall require the submission of a new 

permit application. 

3. In a permit modification under this section, only those conditions to be modified 

shall be reopened when a new draft permit is prepared. All other aspects of the 

existing permit shall remain in effect for the duration of the unmodified permit. 

When a permit is revoked and reissued, the entire permit is reopened just as if the 

permit had expired and was being reissued. During any revocation and reissuance 

proceeding, the storage operator shall comply with all conditions of the existing 

permit until a new final permit is reissued. 

4. Suitability of the storage facility location will not be considered at the time of permit 

modification or revocation unless new information or standards indicate that a threat 

to human health or the environment exists which was unknown at the time of permit 

issuance. 

5. The commission has received notification of a proposed transfer of the storage 

facility permit. 

6. The following are causes for terminating an injection well permit during its term: 

a. Noncompliance by the storage operator with any permit condition; 

b. Failure by the storage operator to fully disclose all relevant facts or 

misrepresentation of relevant facts to the commission; or 

c. A determination that the permitted activity endangers human health or the 

environment. 

7. If the commission tentatively decides to terminate a permit, the commission shall 

issue notice of intent to terminate. A notice of intent to terminate is a type of draft 

permit which follows the same procedures as any draft permit prepared under section 

43-05-01-07.2. 

History: Effective April 1, 2010; amended effective April 1, 2013. 

General Authority Law Implemented 

NDCC 28-32-02 NDCC 38-22 

43-05-01-12.1. MINOR MODIFICATIONS OF PERMITS. Upon agreement between 

the storage operator and the commission, the commission may modify a permit to make the 

corrections or allowances without the storage operator filing an application to amend a permit. 

Any permit modification not processed as a minor modification under this section must be filed 

as an application to amend an existing permit under section 43-05-01-12. Minor modifications 

may include: 
 (XI-57) 04/2013 

1. Correct typographical errors; 

2. Require more frequent monitoring or reporting by the storage operator; 

3. Change an interim compliance date in a schedule of compliance, provided the new 

date is not more than one hundred twenty days after the date specified in the existing 

permit and does not interfere with attainment of the final compliance date 

requirement; 

4. Allow for a change in ownership or operational control of a facility where the 

commission determines that no other change in the storage facility permit is 

necessary, provided that a written agreement containing a specific date for transfer of 

permit responsibility, coverage, and liability between the current and new storage 

operator has been submitted to the commission pursuant to section 43-05-01-06; 

5. Change quantities or types of fluids injected which are within the capacity of the 

facility as permitted and, in the judgment of the commission, would not interfere 

with the operation of the facility or its ability to meet conditions described in the 

permit and would not change its classification; 

6. Change construction requirements approved by the commission, provided that any 

such alteration shall comply with the requirements of this chapter and no such 

changes are physically incorporated into construction of the well prior to approval of 

the modification by the commission; or 

7. Amend the testing and monitoring plan, plugging plan, postinjection site care and 

facility closure plan, emergency and remedial response plan, worker safety plan, or 

corrosion monitoring and prevention program where the modifications merely 

clarify or correct the plan, as determined by the commission. 

History: Effective April 1, 2013. 

General Authority Law Implemented 

NDCC 28-32-02 NDCC 38-22 

43-05-01-13. EMERGENCY AND REMEDIAL RESPONSE PLAN. The storage 

operator shall implement the commission-approved emergency and remedial 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 

office. 
 (XI-58) 04/2013 

1. The emergency and remedial response plan requires a description of the actions the 

storage operator shall take to address movement of the injection or formation fluids 

that may endanger an underground source of drinking water during construction, 

operation, and postinjection site care periods. The requirement to maintain and 

implement a commission-approved plan is directly enforceable regardless of 

whether the requirement is a condition of the permit. The plan must also detail:

 a. 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 facility area; and 

 b. Contingency plans for addressing carbon dioxide leaks from any well, flow 

lines, or other facility, and loss of containment from the storage reservoir, and 

identify specific contractors and equipment vendors capable of providing 

necessary services and equipment to respond to such leaks or loss of 

containment. 

 2. If the storage operator obtains evidence that the injected carbon dioxide stream and 

associated pressure front may endanger an underground source of drinking water, 

the storage operator shall: 

 a. Immediately cease injection; 

 

 b. Take all steps reasonably necessary to identify and characterize any release; 

 c. Notify the commission within twenty-four hours; and 

 d. Implement the emergency and remedial response plan approved by the 

commission. 

 3. The commission may allow the operator to resume injection prior to remediation if 

the storage operator demonstrates that the injection operation will not endanger 

underground sources of drinking water. 

 4. The storage operator shall review annually the emergency and remedial response 

plan developed under subsection 1. Based on this review, the storage operator shall 

submit to the commission an amended plan or demonstrate to the commission that 

no amendment to the plan is needed. Any amendments to the plan are subject to the 

commission’s approval, must be incorporated into the storage facility permit, and are 

subject to the permit modification requirements. Amended plans or demonstrations 

that amendments are not needed shall be submitted to the commission as follows: 

 a. Within one year of an area of review reevaluation; 

 b. Following any significant changes to the facility, such as addition of injection 

or monitoring wells, on a schedule determined by the commission; or 
 (XI-59) 04/2013 

 c. When required by the commission. 

History: Effective April 1, 2010; amended effective April 1, 2013. 

General Authority Law Implemented 

NDCC 28-32-02 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 ten years, and must be made available to the commission upon request. 

 2. The storage operator shall immediately report to the commission any leak detected at 

any well or surface facility. 

 3. The storage operator shall 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 shall 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; amended effective April 1, 2013. 

General Authority Law Implemented 

NDCC 28-32-02 NDCC 38-22
 (XI-60) 04/2013 

 43-05-01-15. STORAGE FACILITY CORROSION MONITORING AND 

PREVENTION REQUIREMENTS. The storage operator shall conduct a corrosion 

monitoring and prevention program approved by the commission. 

History: Effective April 1, 2010; amended effective April 1, 2013. 

General Authority Law Implemented 

NDCC 28-32-02 NDCC 38-22 

 43-05-01-16. STORAGE FACILITY IDENTIFICATION REQUIREMENTS. 

Identification signs must be placed at each storage facility in a centralized location and at each 

well site. The signs must show the name of the operator, the facility name, and the emergency 

response number to contact the operator. 

History: Effective April 1, 2010. 

General Authority Law Implemented 

NDCC 28-32-02 NDCC 38-22 

 43-05-01-17. STORAGE FACILITY FEES. 

 1. The storage operator shall pay the commission a fee of one cent on each ton of 

carbon dioxide injected for storage. The fee must be deposited in the carbon dioxide 

storage facility administrative fund. 

 2. The storage operator shall pay the commission a fee of seven cents on each ton of 

carbon dioxide injected for storage. The fee must be deposited in the carbon dioxide 

storage facility trust fund. 

 3. Moneys from the carbon dioxide storage facility trust fund, including accumulated 

interest, may be relied upon to satisfy the financial assurance requirements pursuant 

to section 43-05-01-09.1 for the postclosure period. If sufficient moneys are not 

available in the carbon dioxide storage facility trust fund at the end of the closure 

period, the storage operator shall make additional payments into the trust fund to 

ensure that sufficient funds are available to carry out the required activities on the 

date at which they may occur. The commission shall take into account 

project-specific risk assessments, projected timing of activities (e.g., postinjection 

site care), and interest accumulation in determining whether sufficient funds are 

available to carry out the required activities. 

History: Effective April 1, 2010; amended effective April 1, 2013. 

General Authority Law Implemented 

NDCC 28-32-02 NDCC 38-22 
 (XI-61) 04/2013 

 43-05-01-18. REPORTING REQUIREMENTS. 

 1. The storage operator shall file with the commission all reports, submittals, 

notifications, and any other information that the commission requires. 

 2. The storage operator shall give notice to the commission as soon as possible of any 

planned physical alterations or additions to the permitted storage facility or any other 

planned changes in the permitted storage facility or activity which may result in 

noncompliance with permit requirements. 

 3. Reports of compliance or noncompliance with, or any progress reports on, interim 

and final requirements contained in any compliance schedule of this permit shall be 

submitted no later than thirty days following each schedule date. 

 4. The storage operator shall file 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 down-hole temperature and pressure data or 

calculations, or other pertinent operational parameters as required by the 

commission. 

 5. The storage operator shall submit all required reports, submittals, and notifications 

under chapter 43-05-01 to the United States environmental protection agency in an 

electronic format approved by that agency. 

6. The quarterly report is due thirty days after the end of the quarter. The report must: 

a. Describe any changes to the physical, chemical, and other relevant 

characteristics of the carbon dioxide stream from the proposed operating data; 

b. State the monthly average, maximum, and minimum values for injection 

pressure, flow rate and volume, and annular pressure; 

c. Describe any event that exceeds operating parameters for annulus pressure or 

injection pressure specified in the permit; 

d. Describe any event which triggers a shutoff device required pursuant to 

subsection 5 of section 43-05-01-11.3 and the response taken; 

e. State the monthly volume and mass of the carbon dioxide stream injected over 

the reporting period and the volume injected cumulatively over the life of the 

project to date; 

f. State the monthly annulus fluid volume added; and 

g. State the results of monitoring prescribed under section 43-05-01-11.4. 
 (XI-62) 04/2013 

 7. The storage operator shall file 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 43-05-01-12. The annual 

report is due forty-five days after the end of the year. 

8. The storage operator shall report, within thirty days, the results of: 

a. Periodic tests of mechanical integrity; 

b. Any well workover; and 

c. Any other test of the injection well conducted by the storage operator if 

required by the commission. 

 9. The storage operator shall report the following, within twenty-four hours: 

a. Any evidence that the injected carbon dioxide stream or associated pressure 

front may cause an endangerment to an underground source of drinking water; 

 

b. Any noncompliance which may endanger health and safety of persons or cause 

pollution of the environment, including: 

 (1) Any monitoring or other information which indicates that any contaminant 

may cause an endangerment to underground sources of drinking water; or 

 (2) Any noncompliance with a permit condition or malfunction of the 

injection system which may cause fluid migration into or between 

underground sources of drinking water shall be provided verbally within 

twenty-four hours from the time the storage operator becomes aware of 

the circumstances. A written submission shall also be provided within 

five days of the time the storage operator becomes aware of the 

circumstances. The written submission shall contain a description of the 

noncompliance and its cause; the period of noncompliance, including 

exact dates and times; and if the noncompliance has not been corrected, 

the anticipated time it is expected to continue; and steps taken or planned 

to reduce, eliminate, and prevent reoccurrence of the noncompliance. 

c. Any triggering of a shutoff system (e.g., down-hole or at the surface); 

d. Any failure to maintain mechanical integrity; or 
 (XI-63) 04/2013 

e. Any release of carbon dioxide to the atmosphere or biosphere in compliance 

with the requirement under subdivision h of subsection 1 of section 

43-05-01-11.4 for surface air and soil gas monitoring, or other monitoring 

technologies required by the commission. 

 10. The storage operator shall notify the commission in writing thirty days in advance 

of: 

a. Any planned well workover; 

b. Any planned stimulation activities, other than stimulation for formation testing 

conducted; 

c. Any other planned test of the injection well conducted by the storage operator; 

and 

d. The conversion or abandonment of any well used or proposed to be used in a 

geologic storage operation. 

11. The storage operator shall retain the following records until project completion: 

a. All data collected for the applications of the storage facility permit, injection 

well permit, and operation of injection well permit; 

b. Data on the nature and composition of all injected fluids collected pursuant to 

subdivision a of subsection 1 of section 43-05-01-11.4; and 

 c. All records from the closure period, including well plugging reports, 

postinjection site care data, and the final assessment. 

 d. Upon project completion, the storage operator shall deliver any records 

required in this section to the commission. 

 12. The storage operator shall retain the following records for a period of at least ten 

years from the date of the sample, measurement, or report: 

a. Monitoring data collected pursuant to subdivisions b through i of subsection 1 

of section 43-05-01-11.4; and 

b. Calibration and maintenance records and all original strip chart recordings for 

continuous monitoring instrumentation, and copies of all reports required by 

the storage facility permit. 

c. This period may be extended by request of the commission at any time. 
 (XI-64) 04/2013 

 13. The storage operator shall report all instances of noncompliance not otherwise 

reported under this section, at the time monitoring reports are submitted. The reports 

shall contain the information listed in subsection 9. 

 14. Where the storage operator becomes aware that it failed to submit any relevant facts 

in a permit application, or submitted incorrect information in a permit application or 

in any report to the commission, such facts or information shall be promptly 

submitted to the commission. Failure to do so may result in revocation of the 

permit, depending on the nature of the information withheld. 

History: Effective April 1, 2010; amended effective April 1, 2013. 

General Authority Law Implemented 

NDCC 28-32-02 NDCC 38-22 

43-05-01-18.1. ABANDONMENT OF WELLS. 

 1. The removal of injection equipment or the failure to operate an injection well for one 

year constitutes abandonment of the well. An abandoned well must be plugged in 

accordance with the plugging plan and its site must be reclaimed. 

 2. The commission may waive for one year the requirement to plug and reclaim an 

abandoned well by giving the well temporarily abandoned status. This status may 

only be given to wells that are to be used for purposes related to the geologic storage 

of carbon dioxide. If a well is given temporarily abandoned status, the well's 

perforations must be isolated, the integrity of its casing must be proven, and its 

casing must be sealed at the surface, all in a manner approved by the commission. 

The commission may extend a well's temporarily abandoned status beyond one year. 

A fee of one hundred dollars shall be submitted for each application to extend the 

temporary abandonment status of any well. 

3. In addition to the waiver in subsection 2, the commission may also waive the duty to 

plug and reclaim an abandoned well for any other good cause found by the 

commission. If the commission exercises this discretion, the commission shall set a 

date or circumstance upon which the waiver expires. 

History: Effective April 1, 2013. 

General Authority Law Implemented 

NDCC 28-32-02 NDCC 38-22 

 43-05-01-19. POSTINJECTION SITE CARE AND FACILITY CLOSURE. The 

storage operator shall submit and maintain the postinjection site care and facility closure plan as 

a part of the storage facility permit application to be approved by the commission. The 
 (XI-65) 04/2013 

requirement to maintain and implement a commission-approved plan is directly enforceable 

regardless of whether the requirement is a condition of the permit. 

 1. The postinjection site care and facility closure plan must include the following 

information: 

a. The pressure differential between preinjection and predicted postinjection 

pressures in the injection zone; 

b. The predicted position of the carbon dioxide plume and associated pressure 

front at cessation of injection as demonstrated in the area of review evaluation; 

c. A description of postinjection monitoring location, methods, and proposed 

frequency; 

d. A schedule for submitting postinjection site care monitoring results to the 

commission; and 

e. The duration of the postinjection site care monitoring timeframe that ensures 

nonendangerment of underground sources of drinking water. 

 2. The storage operator shall specify in the postinjection site care and facility closure 

plan which wells will be plugged and which will remain unplugged to be used as 

subsurface observation wells. Subsurface observation and ground water monitoring 

wells as approved in the plan must remain in place for continued monitoring during 

the closure and postclosure periods. 

3. Upon cessation of injection, the storage operator shall either submit an amended 

postinjection site care and facility closure plan or demonstrate to the commission 

through monitoring data and modeling results that no amendment to the plan is 

needed. Any amendments to the postinjection site care and facility closure plan are 

subject to the commission’s approval and must be incorporated into the storage 

facility permit. 

4. At any time during the life of the geologic sequestration project, the storage operator 

may modify and resubmit the postinjection site care and facility closure plan for the 

commission’s approval within thirty days of such change. 

5. Upon cessation of injection, all wells not associated with monitoring must be 

properly plugged and abandoned in a manner which will not allow movement of 

injection or formation fluids that endanger underground sources of drinking water in 

accordance with section 43-05-01-11.5. All storage facility equipment, 

appurtenances, and structures not associated with monitoring must be removed. 

Following well plugging and removal of all surface equipment, the surface must be 

reclaimed to the commission’s specifications that will, in general, return the land as 

closely as practicable to original condition. 
 (XI-66) 04/2013 

 6. The well casing must be cut off at a depth of five 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 storage. 

7. The commission shall develop in conjunction with the storage operator a continuing 

monitoring plan for the postclosure period, including a review and final approval of 

wells to be plugged. 

8. The storage operator shall continue to conduct monitoring during the closure period 

as specified in the commission-approved postinjection site care and facility closure 

plan. The storage operator may apply for project completion with an alternative 

postinjection site care monitoring timeframe pursuant to North Dakota Century Code 

section 38-22-17. Once it is demonstrated that underground sources of drinking 

water are no longer endangered, the final assessment under subsection 9 is complete, 

and upon full compliance with North Dakota Century Code section 38-22-17, the 

storage operator may apply to the commission for a certificate of project completion. 

If the storage operator is unable to meet the requirements of North Dakota Century 

Code section 38-22-17 and is unable to demonstrate that underground sources of 

drinking water are no longer being endangered, the storage operator shall continue 

monitoring the storage facility for fifty years or until full compliance is met and such 

demonstration can be made. 

 9. Before project completion, the storage operator shall provide a final assessment of 

the stored carbon dioxide’s location, characteristics, and its future movement and 

location within the storage reservoir. The storage operator shall submit the final 

assessment to the commission within ninety days of completing all postinjection site 

care and facility closure requirements. 

a. The final assessment must include: 

(1) The results of computational modeling performed pursuant to delineation 

of the area of review under section 43-05-01-05.1; 

(2) The predicted timeframe for pressure decline within the injection zone, 

and any other zones, such that formation fluids may not be forced into 

any underground sources of drinking water or the timeframe for pressure 

decline to preinjection pressures; 

(3) The predicted rate of carbon dioxide plume migration within the injection 

zone and the predicted timeframe for the cessation of migration; 

(4) A description of the site-specific processes that will result in carbon 

dioxide trapping, including immobilization by capillary trapping, 

dissolution, and mineralization at the site; 
 (XI-67) 04/2013 

(5) The predicted rate of carbon dioxide trapping in the immobile capillary 

phase, dissolved phase, or mineral phase; 

(6) The results of laboratory analyses, research studies, or field or 

site-specific studies to verify the information required in paragraphs 4 

and 5; 

(7) A characterization of the confining zone, including a demonstration that 

it is free of transmissive faults, fractures, and microfractures, and an 

evaluation of thickness, permeability, and integrity to impede fluid (e.g., 

carbon dioxide, formation fluids) movement; 

(8) Any other projects in proximity to the predictive modeling of the final 

extent of the carbon dioxide plume and area of elevated pressures. The 

presence of potential conduits for fluid movement, including planned 

injection wells and project monitoring wells associated with the proposed 

geologic sequestration project; 

(9) A description of the well construction and an assessment of the quality of 

plugs of all abandoned wells within the area of review; 

(10) The distance between the injection zone and the nearest underground 

source of drinking water above and below the injection zone; 

(11) 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 postclosure period; 

(12) An assessment of the funds in the carbon dioxide storage facility trust 

fund to ensure that sufficient funds are available to carry out the required 

activities on the date on which they may occur, taking into account 

project-specific risk assessments, projected timing of activities (e.g., 

postinjection site care), and interest accumulation in the trust fund; and 

(13) Any additional site-specific factors required by the commission. 

b. Information submitted to support the demonstration in subdivision a must meet 

the following criteria: 

(1) All analyses and tests for the final assessment must be accurate, 

reproducible, and performed in accordance with the established quality 

assurance standards. An approved quality assurance and quality control 

plan must address all aspects of the final assessment; 
 (XI-68) 04/2013 

(2) Estimation techniques must be appropriate and test protocols certified by 

the United States environmental protection agency must be used where 

available; 

(3) Predictive models must be appropriate and tailored to the site conditions, 

composition of the carbon dioxide stream, and injection and site 

conditions over the life of the geologic sequestration project; 

(4) Predictive models must be calibrated using existing information when 

sufficient data are available; 

(5) Reasonably conservative values and modeling assumptions must be used 

and disclosed to the commission whenever values are estimated on the 

basis of known, historical information instead of site-specific 

measurements; 

(6) An analysis must be performed to identify and assess aspects of the 

postinjection monitoring timeframe demonstration that contribute 

significantly to uncertainty. The storage operator shall conduct 

sensitivity analyses to determine the effect that significant uncertainty 

may contribute to the modeling demonstration; and 

(7) Any additional criteria required by the commission. 

 10. The storage operator shall provide a copy of an accurate plat certified by a registered 

surveyor which has been submitted to the county recorder’s office designated by the 

commission. The plat must indicate the location of the injection well relative to 

permanently surveyed benchmarks. The storage operator must also submit a copy of 

the plat to the United States environmental protection agency regional administrator 

office. 

 11. The storage operator shall record a notation on the deed to the property on which the 

injection well was located, or any other document that is normally examined during 

title search, that will in perpetuity provide any potential purchaser of the property the 

following information: 

 a. The fact that land has been used to sequester carbon dioxide; 

 b. The name of the state agency, local authority, or tribe with which the survey 

plat was filed, as well as the address of the United States environmental 

protection agency regional office to which it was submitted; and 
 (XI-69) 04/2013 

 c. The volume of fluid injected, the injection zone or zones into which it was 

injected, and the period over which injection occurred. 

History: Effective April 1, 2010; amended effective April 1, 2013. 

General Authority Law Implemented 

NDCC 28-32-02 NDCC 38-22 

 43-05-01-20. DETERMINING STORAGE AMOUNTS. 

 1. Upon application by an enhanced oil or gas recovery unit operator or a storage 

operator, 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. The applicant shall pay a processing fee for a storage amount determination. 

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. 

c. After the commission’s work on the application has concluded, a final 

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; amended effective April 1, 2013. 

General Authority Law Implemented 

NDCC 28-32-02 NDCC 38-22