COMMONWEALTH OF KENTUCKY

Division of Oil and Gas

Program Description

Application for Primary Enforcement Responsibility for 

Class II Injection Wells

Under 

Section 1425, Safe Drinking Water Act

March, 2015
Table of Contents

 PAGE

SECTION I. Introduction 1

SECTION II. Program Scope, Structure, and Coverage 2

SECTION III. Class II Permitting Process 3

A. Permit Application 4

B. Permit Conditions of Class II Wells 7

C. Inspection-Compliance Schedules 8

D. Transfer of Class II Permits 8

E. Termination of Class II Permits 8

F. Types of Class II Permits 9

G. Procedures for Modifications of Permits 9

H. Emergency Class II Permits 9

I. Variance on Class II Permits 9

SECTION IV. Transitional Requirements 9

SECTION V. Operation of State Regulations for Class II Wells 10

SECTION VI. Technical Requirements Applied to Operators 10

A. Casing and Cementing Requirements 11

B. Mechanical Integrity Requirements 11

C. Plugging and Abandonment Requirements 12

D. Corrective Action Plans 13

E. Hydraulic Fracturing (Use of Diesel Fuel) 14

SECTION VII. Inspections 14

SECTION VIII. Reporting Requirements 15

SECTION IX. Penalties/Enforcement 15

SECTION X. Financial Responsibility 17

SECTION XI. Staffing and Resources 19

Work Plan Component 20

SECTION XII. Additional Agencies 21

SECTION XIII. Class II Well Inventory 21
SECTION XIV. Exempt Aquifers 21

SECTION XV. Public Participation in Permit Issuance 22

SECTION XVI. Public Complaints 23

APPENDIX A Class II Permit Checklist 24

APPENDIX B Class II Well Inventory/DOG District and County 28

APPENDIX C DOG Public Notice Example 29

APPENDIX D DOG Regulations and Statutes 31

APPENDIX E Class II Forms 32

Letter from Governor Steve Beshear
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I. INTRODUCTION

One of the Commonwealth of Kentucky’s most precious resources is groundwater, 

approximately 900,000 Kentuckians depend on groundwater for domestic water supplies and use 

205 million gallons of groundwater daily. Protection of underground sources of drinking water

(USDW) has been a primary goal of the Kentucky Department for Natural Resources; Division 

of Oil and Gas. A major concern of potential groundwater contamination sources are orphan or 

abandoned oil and gas wells and Class II injection wells in the Commonwealth. To that end, the 

Commonwealth of Kentucky, Department for Natural Resources (DNR) Division of Oil and Gas

(DOG) is applying for primary enforcement authority of the Underground Injection Control 

(UIC) program pursuant to Section 1425 of the Safe Drinking Water Act (SDWA) for Class II 

injection wells in the Commonwealth. The Safe Drinking Water Act (SDWA), passed by 

Congress in 1974, and amended in 1977, 1980, 1986, and 1996 requires Underground Injection 

Control (UIC) activities to be regulated in all states. Statutory authority for the Division to 

administer the UIC-Class II program is provided under Kentucky Revised Statute Chapter 353, 

specific statutory authority is addressed in statutes: 353.590(2), 353.591, 353.592 and 353.593. 

These statutes state the Division of Oil and Gas “is authorized but not obligated to develop and 

promulgate a regulatory program for the purpose of accepting primary responsibility for 

administration of the Underground Injection Control Program under Section 1425 of the Safe 

Drinking Water Act (Public Law 93-523 as amended)." The administrative regulations were 

promulgated and adopted by the DOG, effective on April 4, 2008 and can be found under 

Kentucky Administrative Regulation (KAR) 805 KAR 1:110. The regulation further provides the 

Division regulatory oversight for the drilling, casing, operation, plugging, construction, 

conversion and maintenance of Class II wells.

The Commonwealth of Kentucky is requesting primary responsibility for administration of the 

Class II-Underground Injection Control Program in Kentucky. The following information shall 

show that the Commonwealth has the regulatory authority, personnel and resources to effectively 

administer this program.
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II. PROGRAM SCOPE, STRUCTURE, AND COVERAGE

The Commonwealth of Kentucky ratified the Interstate Oil Compact in 1942, the compact was 

later repealed, amended and re-enacted by joint resolution of the General Assembly in 1948. 

The Department of Mines and Minerals (now the Office of Mine Safety and Licensing) began 

permitting oil and gas wells in coal producing regions that same year. The Division of Oil & 

Gas was created as a division of Department of Mines and Minerals by the General Assembly in 

1960 and began permitting all oil and gas wells in the Commonwealth, additional regulatory 

authority was provided to include the following: foster conservation of crude oil and natural gas 

resources, encourage crude oil and natural gas exploration and development, and protection of 

correlative rights. 

The Division of Oil & Gas (DOG) is granted authority under KRS Chapter 353.520 to regulate 

wells on all lands located in the Commonwealth including any lands owned or administered by 

any government, including Federal lands.

In 1961, the Division of oil & Gas enacted regulation for the proper plugging and abandonment 

procedures for wells drilled in both coal-bearing and non coal-bearing strata. The Division 

established well bonding requirements in 1966, additional bonding requirements and penalty 

provisions were in established in 1990. In 2006, the Kentucky General Assembly established a 

new tiered blanket bonding structure and is described in further detail in the program description. 

In 1978, Kentucky Department for Natural Resources (DNR) enacted administrative regulation 

805 KAR 1:020 establishing requirements to protect fresh water zones from contamination 

associated with the production of oil and gas. For purposes of nomenclature clarification, “fresh 

water zones” are synonymous with “underground sources of drinking water” which is defined in 

KRS Chapter 353.510 (20) and in 805 KAR 1:110 (1) (18) and (28). Regulation 805 KAR 1:020 

requires all oil and gas wells be cased and cemented in such a manner to protect fresh water

zones during drilling and plugging operations; 805 KAR 1:020 (4-6) addresses protection of 

fresh water zones associated with wells used for injection of fluids. Kentucky DNR enacted 805 

KAR 1:110 in 2008, which required additional protection of fresh water zones (or USDW’s) by 

requiring all proposed Class II well construction includes a freshwater casing string extending 

fifty (50) feet below the deepest freshwater depth referenced in 805 KAR 1:110 (5)(1)(c)(1). If 

the fresh water is not protected by a separate casing string, the long casing string shall be 

installed with cement circulated to surface as directed by 805 KAR 1:110 (5)(1)(c)(5). As a 

result of these additional freshwater protection measures required in proposed Class II wells, 805 

KAR 1:110 (17) exempted 805 KAR 1:020 (4-6). The language in 805 KAR 1:110 (17) states 

“The provisions of 805 KAR 1:110 shall become effective upon the date of primacy, on or after 

which a Class II well shall be subject to the requirements of 805 KAR 1:110 and shall be exempt 

from 805 KAR 1:020 (4-6).”

Kentucky DNR was given authority to develop a regulatory program for the purpose of accepting 

primary responsibility for administration of the UIC program for Class II wells by KRS 353.592, 

created in 1986 and amended in 2006. The statute authorizes the department to promulgate 

administrative regulations to establish a program for regulating the permitting, drilling, casing, 

operation, plugging, construction, conversion, maintenance, plugging and abandonment of Class 

II wells to protect underground sources of drinking water and to prevent their endangerment. 
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Kentucky DNR promulgated 805 KAR 1:110 authorizing DNR to accept primary responsibility 

for the administration of the UIC Program and established requirements for the permitting, 

drilling, casing, operation, plugging, construction, conversion and maintenance of Class II wells 

and the protection of underground sources of drinking water (USDW’s). The regulation further 

provides DNR (specifically DOG) the ability to address any contamination associated with 

injection activity.

With the adoption of 805 KAR 1:110 effective April 4, 2008, the Kentucky Department for 

Natural Resources-Division of Oil and Gas (DOG) has shown a commitment to the protection of 

underground sources of drinking water in the Commonwealth and is positioned to assume 

primacy of the UIC Class II program pending approval by USEPA. 

III. CLASS II PERMITTING PROCESS

Any person who desires to drill a Class II well in Kentucky, or inject approved Class II fluids

(produced fluids or fresh water) for enhanced oil recovery into a Class II injection well must 

obtain a permit from DOG pursuant to KRS 353.570, 353.590, 353.592 and 805 KAR 1:110 

(2)(1-2). All Class II well permit applications must comply with well construction, operation, 

monitoring and reporting requirements prescribed in 805 KAR 1:110. Class II (EOR) wells in 

operation prior to the effective date of primacy approval will be designated as “rule authorized 

wells” and deemed permitted by DOG and will be operated under the current DOG and EPA 

permit numbers assigned. USEPA currently has approximately forty (40) Class II disposal wells 

permitted in Kentucky, these wells will be required to be permitted by DOG upon primacy 

approval. Owner/operators of disposal wells will be directed to submit a Class II permit

application for those wells within ninety (90) days following the effective date of primacy. 

Upon receipt of a Class II permit application DOG shall perform a review of the application for 

accuracy and completeness. If any permit application is incomplete, the well owner/operator 

will receive an “administratively incomplete” notification via email or letter. In addition, the

applicant’s compliance history will be reviewed for unabated violations, no Class II permit will 

be approved if the owner/operator has unabated violations. DOG will not process the permit

until the outstanding violations are brought into compliance. A Permit Checklist (Included in 

Appendix A) will be used by DOG to perform a review of the Class II application and the Area 

of Review (AOR). DOG will perform a comprehensive review of well records, geophysical 

logs, cement bond/cased-hole logs and plugging affidavits of all active, abandoned or plugged 

wells penetrating the injection zone within the AOR. If any well within the AOR is deemed an 

endangerment to a USDW due to insufficient casing, improper cementing and/or lack of well 

data, DOG will notify the owner/operator via a technical deficiency letter to address those 

technical deficiencies to ensure protection of USDW’s. DOG will also review the well 

construction plan of the proposed well to ensure casing strings will be set at sufficient depths and 

cemented properly to prevent injected fluids from escaping into a USDW. Corrective action 

plans to address deficiencies in a Class II permit application is discussed in further detail in 

Section VI (D).
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DOG will review applicant’s submitted maximum injection pressure and verify the pressure is 

accurate based on the formula referenced in 805 KAR 1:110 (11) (2)(g)(5):

Pmax=(.733 psi/ft – (.433 psi/ft (Sg))(d)

Whereas, .733 psi/ft. is the default fracture closure pressure gradient, .433 psi/ft. is the density of 

fresh water, (Sg) is the specific gravity of the injected fluid and (d) is the depth to the top of the 

injection zone. Should the applicant’s submitted pressure exceed the calculated pressure and in 

the opinion of DOG could initiate new fractures or propagate existing fractures into the confining 

zone adjacent to a USDW; DOG will direct the applicant to make appropriate changes on the 

permit application. DOG will also review formation breakdown pressure data in the form of 

step-rate tests, or historical fracturing/stimulation field data in the injection zone from adjacent 

wells or instantaneous shut-in pressure (ISIP).

DOG will verify financial assurance in the form of proper bonding is established to properly plug 

and abandon the proposed Class II well. Applicant’s projected plugging and abandonment costs 

will be compared to actual costs DOG has incurred from operation of DOG’s “state-bid” 

plugging program to verify financial assurance will adequately plug the injection well.

 

Upon application approval, DOG shall assign a sequential permit number for the proposed 

injection well; the number sequence will be consistent with current DOG permitting criteria for 

all wells. In addition to the sequential permit number assigned, DOG will also assign a UIC

permit number (KY-UIC No.) designated specifically for tracking Class II permits. The permit 

to inject for all Class II wells shall remain valid for the duration of the injection operation. After 

a Class II permit is issued and well drilled, the permit cannot expire or be terminated until the 

well has been plugged and abandoned under the direction of a DOG inspector.

Class II permit applications will be reviewed by a registered professional geologist in the 

Commonwealth of Kentucky currently employed by DOG. DOG anticipates the review process 

for Class II permits will be approximately two (2) weeks for complete and accurate applications, 

DOG also anticipates issuing approximately twenty (20) Class II permits annually, fluctuations 

in permitting activity will depend on crude oil market conditions. DOG currently processes 

conventional oil and gas permit applications within seven (7) to ten (10) days assuming 

information on the permit application is correct and complete. DOG issued 920 permits in 2012,

895 permits in 2013 and 936 in 2014. 

A. Permit Application

Pursuant to 805 KAR 1:110, Form ED-14 has been incorporated as “CLASS II WELL PERMIT 

APPLICATION FOR UNDERGROUND INJECTION CONTROL”. Attached in Appendix A is 

a Class II Permit Checklist that will be used in the permit review process. The application shall 

include:

 Statement by the owner/operator as to whether the well will be used for enhanced oil 

recovery, hydrocarbon storage or brine disposal.
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 Designation for drilling (new well), deepening or conversion of an existing well to a 

class II injection well.

o For conversion of an existing well, a copy of the completion report and any 

geophysical logs of the wellbore shall be included with the permit application.

 The approximate depth of the deepest freshwater zone (USDW).

 Well owner/operator.

 Permanent address of applicant.

 Continuation of applicant address/email.

 Mineral tract owner (lessor) and well number.

 Address of lessor.

 Carter coordinate location of Class II wellhead.

 Name of oil field (designated by Ky. Geological Survey).

 Injection formation (perforation/open-hole interval depth).

 Proposed total depth, or plug-back depth.

 Injection method (through perforations or open-hole).

 Depth of packer.

 Estimated formation breakdown pressure (step-rate tests or historical field data).

 Identification of material injected with additives.

 Surface owner (if different from mineral owner).

 7.5’ USGS topographic quadrangle with date of map.

 Area of Review Map encompassing one-quarter (1/4) mile radius circle around the 

proposed Class II well prepared on a 7.5” topographic quadrangle map including:

o Location and completion or plugging records of all wells penetrating a 

USDW, whether producing or plugged.

o Location of all known fresh water wells.

o Location of hazardous waste treatment or disposal facilities.

o Location of rivers and streams.

o Location of quarries, surface and subsurface mines.

o Location of geologic faults.

o Location of permanent residences.
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 Wellbore schematic of the Class II injection well that shall contain the following:

o Total depth of the well (or plug-back depth of existing well).

o Depth of the injection or disposal interval.

o Geologic name of the injection or disposal zone.

o Geologic name, thickness, and description of the confining zone.

o The vertical distance separating the uppermost extremity of the injection 

zone from the base of the lowest USDW.

o Depth of the top and bottom of the casing and cement displaced (in sacks).

o Size of the casing and tubing and depth of the packer.

o Depth to the base of the lowermost USDW.

 A standard laboratory analysis of a representative sample of the injected fluid identifying

the parameters identified in 805 KAR 1:110 (11)(2)(g)(2) and contained in 40 CFR 136.3 

and 40 CFR Part 261 Appendix III.

 An MSDS (material safety data sheet) for inhibitors added to injection fluids to control 

scaling, corrosion, or bacterial growth.

 Proposed maximum injection rate and pressure.

 Description of current or proposed casing program included on Form ED-25 “CASING 

AND CEMENTING PLAN FOR UIC WELLS”.

 Location and description of USDW through which the proposed well would penetrate.

 Corrective action plan for all abandoned, completed or improperly sealed wells within the 

AOR to insure USDW’s are properly isolated from the injection zone shall be included 

with the permit application. See Section on Technical Requirements-Corrective Action 

Plans (Section VI-D).

 Applicant state of incorporation.

 Notarized signature of well owner/operator or authorized agent.

 In accordance with 805 KAR 1:030, a well location plat of the proposed Class II well.

 Proof of notification (personally or via certified mail) is required to owners of surface or 

subsurface property that the well penetrates, providing the property owners thirty (30) 

days to submit written comments or request a hearing. See Section on Public 

Participation in Permit Issuance (Section XV). In addition, owner/operators of 

producing oil/gas wells and permittees of underground mines under KRS Chapter 350

within the AOR shall be notified personally or by certified mail pursuant to 805 KAR 

1:110 (11)(4).
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B. Permit Conditions of Class II Wells

Well owners/operators must comply with all permit conditions authorizing injection of fluids 

through Class II wells referenced in 805 KAR 1:110 including the following requirements:

 Well owner/operator shall notify DOG in writing of any modification in the manner in 

which the injection operation is conducted or of any mechanical failure or down-hole 

problem encountered in the operation of a Class II well or upon recognition of a failure in 

an injection system, failure to notify DOG within twenty-four (24) hours will result is 

suspension of the Class II permit and issuance of a notice of violation.

 Well owner/operator must maintain and properly operate all production and injection 

facilities to achieve and maintain compliance with permit conditions.

 Well owner/operator shall take all prudent steps to minimize or correct adverse impacts 

on the environment resulting from noncompliance with permit conditions.

 Any class II well which appears to be leaking shall be shut down immediately and 

corrective action procedures shall be initiated within fifteen (15) days, or the permit may 

be revoked under appropriate conditions.

 Well owner/operators shall provide DOG authorized personnel unlimited access to all 

Class II wells and associated production facilities for the purpose of conducting 

inspections, witnessing mechanical integrity tests, corrective action operations, plugging 

supervision, and testing samples of injected fluids at any time during the injection 

operation pursuant to 805 KAR 1:110 (4)(2).

 Well owner/operator shall regulate the injection pressure in a manner so that the pressure 

in the injection zone does not initiate new fractures or propagate existing fractures in the 

confining zone that would cause movement of injected fluids into a USDW. DOG will 

approve maximum injection pressure and use formula stipulated in 805 KAR 1:110 (11) 

(2)(g)(5) to establish maximum pressure. Well owner/operators will be required provide 

formation breakdown pressure test derived from the following: step-rate testing

(preferably several steps and breakdown pressure), historical fracturing/stimulation data

from adjacent wells completed in the injection zone, instantaneous shut-in pressure (ISIP)

data or other approved testing methods. 

 Well owner/operator shall provide for the internal and external mechanical integrity of 

the well by operating without leaks in the casing/tubing/packer assembly and without 

fluid movement into a USDW through vertical channels adjacent to the wellbore.

 Each Class II well shall be tested for mechanical integrity at least every five (5) years 

pursuant to 805 KAR 1:110 (6)(6).

 Well owner/operator shall monitor and record injection pressure rates and volumes at 

least monthly and shall submit the Form ED-18 “ANNUAL DISPOSAL OR INJECTION 

WELL MONITORING REPORT” and shall retain these records on file for a period of 

five (5) years.

 DOG must establish limitations on the wellhead pressure at which a Class II well may be 

operated using formula referenced in 805 KAR 1:110 (11) or historical field data. Any 

limitations shall be included as a permit condition or through an order after notice and 

opportunity of hearing.

 Well owner/operators of in-active or “shut-in” Class II wells (not injecting) must obtain a 

“TEMPORARY ABANDONMENT PERMIT” (Form ED-12) with DOG. During the 

temporary abandonment period, the well owner/operator must describe procedures to 

ensure the inactive well will not endanger a USDW. If the well is abandoned for a 
8

period of two (2) or more years, the well owner/operator shall plug the well in accordance

805 KAR 1:110 (10) under the direction of a DOG inspector. Prior to placing an inactive well back into injection operation, DOG may require an MIT to insure USDW 

protection.

 Any well owner/operator may re-apply for a Class II permit after deficiencies or DOGdirected corrective action plan have been completed and the applicant demonstrates the 

Class II well will not endanger a USDW and mechanical integrity has been demonstrated.

 DOG may modify, halt, suspend or revoke a Class II permit if the injection operation is 

altered in a way that does not protect a USDW or down-hole failure comprises the 

injection system.

C. Inspection-Compliance Schedules

Class II well owner/operators shall provide DOG inspectors, or representatives of the DOG 

director unlimited access to Class II wells, related facilities and well data for the purpose of 

performing inspections, witnessing mechanical integrity tests, corrective action plans, supervise 

plugging operations and for testing injection fluids. DOG is granted authority in KRS 353.592 

and 805 KAR 1:110 to require Class II well owners/operators to maintain compliance with all 

UIC regulations relating to schedule of compliance and reporting as required in 40 CFR § 

144.53.

D. Transfer of Class II Permits

Transfer of Class II permits to a successor may occur after notice is given to DOG on Form ED26 “WELL TRANSFER FOR UIC WELLS”. Information required for the transfer includes:

 Original operator’s company name and address.

 Successor company’s name and address.

 Permit number of the well.

 Carter Coordinate location of the well(s).

 Farm (lease) name and well number.

 Signatures of the original operator and the successor or that of their authorized 

representative.

 A statement that the successor assumes all responsibility for the well and provides 

financial responsibility pursuant to 805 KAR 1:110 (8).

A Class II well with an outstanding non-compliance shall not be transferred, unless the successor 

owner/operator corrects the deficiencies or submits a corrective action plan approved by DOG

prior to transferring and commencing injection operations.

E. Termination of Class II Permits

Injection permits may be terminated or suspended by DOG for failure to comply with any 

portion of 805 KAR 1:110, alteration of an injection system or failure to comply with a 

corrective action plan that may endanger or compromise a USDW. Termination of a Class II 

permit requires the owner/operator to notify DOG in writing thirty (30) days prior to termination 

of operations pursuant to 805 KAR 1:110 (12)(3). Termination of injection operations will 

require plugging and abandonment, a Class II well permit cannot expire until the well has been 

properly plugged and abandoned under the direction of a DOG inspector.
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F. Types of Class II Permits

Class II injection permit types include enhanced oil recovery (EOR), brine disposal, and 

hydrocarbon storage which are liquid at standard temperature and pressure (does not include 

injection or withdrawal of natural gas in storage fields). Class II permits will be limited to 

individual well permits, not area permits.

G. Procedures for Modification of Class II Permits

Modification of injection permits shall be done pursuant to KRS 353.592 and 805 KAR 1:110 

and under the direction and supervision of DOG and may require testing of mechanical integrity 

to insure the underground injection of fluid will not endanger underground sources of drinking 

water. These include minor permit modifications as prescribed in 40 CFR § 144.41 such as 

correction of typographical errors, change in permittee reporting schedule, change in the nature

or sampling of injection fluid, minor modifications of well construction requirements 

(modifications must provide protection of USDW), amend a plugging & abandonment plan and 

well transfer.

H. Emergency Class II Permits

Class II permits will normally be processed in a sufficient amount of time to avoid the necessity 

of an operator having to request an emergency permit, although DOG may consider such a 

request if the applicant made a request in writing with adequate supporting documentation. An 

emergency order would only be issued for short duration and be applicable to situations that 

would prevent waste of natural resource or contamination of a USDW.

I. Variance of Class II Permits

DOG may grant a variance by authority of 805 KAR 1:110 (2)(10)(b) if application is made and 

after notice of hearing, and demonstrating to the satisfaction of DOG that alternate prudent 

engineering practices will prevent fluid movement into a USDW. Permitting requirements do 

not provide a variance from protection of a USDW. No Class II permits will be issued if 

variance causes endangerment of a USDW.

IV. TRANSITIONAL REQUIREMENTS

DOG shall accept a Class II well permit, including rule authorized wells, issued under the 

authority of USEPA. Rule authorized wells are defined as a Class II well in operation prior to 

the effective date of primacy and shall be deemed permitted by DOG provided the owner or 

operator satisfies requirements of 805 KAR 1:110 (9). DOG will accept records from USEPA on 

all authorized Class II wells. Copies of all documentation showing USEPA approval of Class II 

well’s mechanical integrity and a copy of all forms, test data and logs submitted to USEPA shall 

be submitted to DOG within ninety (90) days of the effective date of primacy. The 

owner/operator with a pending application submitted for Class II wells under the USEPA 

program may transfer a pending application to DOG and shall satisfy the permitting 

requirements of 805 KAR 1:110 (11) upon effective date of primacy.
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DOG will create an inventory of existing Class II wells and implement a comprehensive review 

of all injection wells within the first five (5) years of the effective date of primacy approval with 

active injection wells receiving top priority. Active injection wells are defined as wells currently 

injecting at the time of wellsite inspection or as documented by documentation provided by 

USEPA at the effective date of primacy approval. The comprehensive review will include a field 

inspection of the injection well to capture a global positioning system (GPS) wellhead location, 

review of well construction records to insure USDW protection, incorporate existing mechanical 

integrity test (MIT) schedule into DOG-RBDMS database (MIT schedule will be based on data 

provided by EPA), verifying EPA-Class II identification number, and documentation of related 

production facilities at the wellsite. DOG will perform a minimum of seven hundred-fifty (750) 

Class II wellsite inspections annually during the first five (5) years of the effective date of 

primacy approval. Abandoned or “shut-in” injection wells identified as a result of the DOG 

inspection and review process, will result in the well owner/operator being cited for improper 

abandonment pursuant to KRS 353.550 and a notice of violation will be issued and further 

defined in Sec. III(B). 

DOG will comply with all oversight requirements and adhere to reporting requirements in the 

administration of the UIC-Class II program to USEPA Region 4. Specifics regarding annual 

reporting are addressed in the attached Memorandum of Agreement.

V. OPERATION OF STATE REGULATIONS FOR CLASS II WELLS

The state statutes that govern the UIC program are KRS 353.570, 353.590 and 353.592. KRS 

353.592 authorizes the department to develop an underground injection control program. This 

authorization includes the development of administrative regulations to establish a permitting 

program, protect underground water resources, develop financial responsibility to cover the costs 

of plugging and abandonment, establish a public notification process for the application for 

permits, and establish fees for the mechanical integrity testing and periodic registration of Class 

II wells to cover the costs of the program. 

Administrative regulation 805 KAR 1:110 was promulgated and became effective April 4, 2008

in order to introduce the statutory items and provide the necessary detail to implement the Class 

II-UIC program. 

VI. TECHNICAL REQUIREMENTS APPLIED TO OPERATORS

Class II injection wells proposed to be constructed after the effective date of primacy will be 

constructed in accordance with 805 KAR 1:020 and 805 KAR 1:110 (5) which prevents injected 

fluids from escaping into a USDW. Wellbore construction of “rule-authorized” wells, as 

determined by USEPA are exempt from construction requirements for Class II wells unless DOG 

determines that corrective action is necessary to prevent injected fluids from escaping to a 

USDW. The owner/operator shall provide DOG with all required geophysical logs and results of 

tests conducted during the drilling and completion of a Class II well that relate to the USDW, the 

adjacent confining zone, injection zone and adjacent formations. The logs and test data shall 

include a geophysical log marked to indicate all fresh water zones, the confining zone and the 

injection interval. Submittal of logs and tests data must be submitted to DOG within ninety (90) 
11

days following completion of testing. A geologic description of the confining and injection zone 

shall include the lithologic description, geologic name and thickness and a report describing the 

nature of fluids and formation pressure in the injection zone shall also be provided to DOG.

DOG will review all the geophysical logs, test data and reports to verify the USDW will be 

protected prior to giving authorization to inject.

A. Casing and Cementing Requirements

All Class II wells shall be constructed in such a manner to prevent migration of injected 

fluids into USDW’s. If the well construction is determined to be inadequate and movement 

of fluid endangers a USDW, DOG shall require the well operator to take necessary corrective 

action and be completed within ninety (90) days of notification. A freshwater casing string 

shall extend fifty (50) feet below the freshwater depth stated on the permit or the depth of the 

deepest USDW. All freshwater casing strings shall have cement circulated to fill the annular 

space, to surface using approved engineering methods. The production casing (long) string

must extend from the surface to immediately above the injection interval and must have a 

minimum of three-hundred (300) feet of cement behind the lowermost three-hundred (300) 

feet of casing. If the fresh water is not protected by a separate casing string, then the long 

string shall be cemented with circulation of cement back to surface. Tubing shall be installed 

in the casing with a packer set at a depth not to exceed fifty (50) feet above the injection 

zone.

The well owner/operator shall provide a detailed description of the casing plan on Form ED25 “CASING AND CEMENTING PLAN FOR UIC WELLS “, and submitted with the Class 

II Well Permit Application for UIC. If the casing and cementing plan is inadequate and 

movement of fluids causes the endangerment of a USDW, DOG shall require the 

owner/operator to take corrective action within ninety (90) days of notification. Injection 

will not be authorized until the corrective action has been completed to the satisfaction of 

DOG and mechanical integrity has been demonstrated. Failure of well owner/operator to 

comply with DOG corrective action plans will result in citation of violation and potentially 

bond forfeiture. Additional civil penalties may also apply as referenced in Sec. IX.

B. Mechanical Integrity Requirements

Owners/operators of Class II wells shall demonstrate mechanical integrity of new and 

existing injection wells pursuant to 805 KAR 1:110 (6). The well owner/operator shall 

verbally notify the appropriate DOG inspector five (5) days prior to performing any 

mechanical integrity test. The well owner/operator shall submit a plan to demonstrate 

mechanical integrity with the application for permit to inject and file Form ED-22 

“CERTIFICATION OF MECHANICAL INTEGRITY” with DOG within fifteen (15) days

upon successful completion of the test. Demonstration of both internal and external 

mechanical integrity is required and described below:

Internal Mechanical Integrity

The internal mechanical integrity pressure test (MIT) shall be performed on the 

tubing/casing/packer assembly using pressurized, corrosion-inhibiting liquid (water) and/or 
12

gas (nitrogen) on the tubing and casing annular space and monitored over a given interval of 

at least thirty (30) minutes. A minimum pressure of three-hundred (300) psi shall be applied 

to the annular space between the tubing and casing. The well is considered to have internal 

mechanical integrity if, at the end of thirty (30) minutes, there is no more than a plus or

minus of three (3) percent change in the pressure. DOG may require higher test pressures be 

used when the anticipated injection pressure will be high. In some cases, injection wells in 

Kentucky inject via gravity, DOG will require a minimum test pressure of three-hundred 

(300) psi be applied on tubing annulus on those wells and pressure monitored as described 

above.

Calibrated DOG-owned pressure gauges and rate sensitive devices will be used to ensure 

there are no significant changes in pressure or volume of liquid/gas injected. 

An injection well is determined to have mechanical integrity if: 

 There are no leaks in the casing, tubing, or packer assembly.

 There is no fluid movement into a USDW through vertical channels adjacent to 

the wellbore.

External Mechanical Integrity

Acceptable methods to demonstrate the absence of fluid movement into a USDW through 

vertical channels adjacent to the wellbore in 805 KAR 1:110 (6)(4) include:

 Temperature, noise, radioactive tracer or cement bond logs.

 Cementing records and casing strings set at sufficient depths and sufficient cement 

slurries displaced to prevent migration of injected fluids into a USDW.

DOG inspectors will witness all mechanical integrity tests performed on any Class II well in 

Kentucky upon primacy approval. DOG inspectors have routinely witnessed and approved

MIT’s on Class II wells as a courtesy to USEPA Region 4. In addition, inspectors have 

witnessed MIT’s on Class V wells (including CO2 sequestration test well in Boone Co., KYpermitted as a Class V experimental technology well).

DOG will review existing Class II wells with USEPA-approved integrity tests and maintain 

the five (5) year MIT testing cycle or require a test in the event of any down-hole equipment 

failures, modifications such as unseating of a packer or if the injection well is near a 

domestic water well for which a USDW contamination complaint has been received.

 C. Plugging and Abandonment Requirements

After cessation of operations for two (2) years, the owner/operator shall plug and abandon 

the well unless a notice is sent to DOG describing actions or procedures that the 

owner/operator shall take to ensure that the well will not cause the endangerment of a USDW 

during the period of temporary abandonment. The well owner/operator will be required to 

secure a Temporary Abandonment Permit (Form ED-12) for the well approved by a DOG 

inspector for the period of non-injection. A mechanical integrity test will be required should 

the well owner/operator elect to place the abandoned well back in operation. 

All Class II wells shall be plugged under the direction and supervision of a DOG inspector in 

accordance with 805 KAR 1:060, 805 KAR 1:070 and 805 KAR 1:110. Class II wells will 
13

be plugged in such a manner which will not allow the movement of fluids into or between 

USDW’s by displacing cement slurry through tubing using approved engineering methods 

for cement calculations. Cement slurry plugs will be placed across the injection zone

extending from at least fifty (50) feet above and fifty (50) feet below the injection zone,

cement plug extending at least fifty (50) feet above and fifty (50) feet below all USDW’s, 

cement plugs shall also be placed across coal seams and any additional intervals deemed 

appropriate by the DOG inspector. 

Pursuant to 805 KAR 1:110 (10), the owner or operator shall notify DOG in writing within 

thirty (30) days prior to plugging the well and schedule the time and date of the plugging 

procedure with the DOG field inspector. Upon successful completion of plugging the 

operator shall file Form ED-38 “PLUGGING AFFIDAVIT”. The performance bond shall 

not be released until the well is plugged according to instructions given by the inspector and 

all records have been submitted and approved by DOG.

For point of clarification, Form ED-38 (Plugging Affidavit) requires the signature of an 

authorized agent of the well owner/operator as that person being the responsible party should 

the plugging procedure be determined to be insufficient to isolate all zones in the wellbore. 

The optional signature is for the plugging contractor employed the well owner/operator and 

typically performs the plugging operation as directed by the well owner/operator.

 D. Corrective Action Plans

Corrective action plans shall be completed within ninety (90) days of notification from DOG

to the owner/operator. This may include corrective plans on existing wells within the area of 

review which are improperly sealed, completed, or plugged and abandoned. DOG shall 

consider the following criteria and factors during evaluation of a corrective action plan:

 Nature and volume of injected fluids.

 Nature of native fluids or by-products of injection.

 Potentially affected population (landowners within AOR that depend on domestic 

water wells for primary source of fresh water).

 Geology.

 Hydrology.

 History of injection operations.

 Completion and plugging records.

 Plugging and abandonment procedure.

 Hydraulic connections with USDW’s.

If DOG establishes a Class II well casing program to be inadequate and providing fluid 

movement into a USDW, the owner/operator will be required to take necessary corrective 

action before any injection can occur pursuant to 805 KAR 1:110 (9)(b)(c).

Class II wells with outstanding violations shall not be transferred, unless the successor is 

willing to submit a corrective action plan approved by DOG prior to transferring and

injecting.
14

E. Hydraulic Fracturing (Use of Diesel Fuel)

The use of diesel fuel as an additive in fracturing fluids shall be regulated under the UIC 

program pursuant to the Safe Drinking Water Act. Any well owner/operator that contracts 

with a well service company to use diesel fuel as a fracturing fluid or an additive must first 

obtain a Class II permit from DOG prior to performing the fracturing treatment. Currently in 

Kentucky, there are no documented uses of diesel fuel being used as a fracturing fluid

additive. Fracturing treatments using sand as a proppant employ water-based fluids as a 

transporting agent. Hydraulic fracturing/stimulation in Kentucky vary from using nitrogen 

(N2) used in amounts averaging one-million (1,000,000) sft3in multiple stage treatments in 

the Devonian Shale to other types of fracturing treatments including “slick” water-fracs, 

cross-link, gelled or foam-frac treatments. Acidizing treatments are used in carbonate 

reservoirs throughout Kentucky, treatments are at different volumes using hydrochloric and 

hydrofluoric acid in concentrations of fifteen percent (15%) to twenty-eight percent (28%). 

Any subsequent changes to requirements on hydraulic fracturing additives will be 

incorporated upon final action by USEPA.

VII. INSPECTIONS 

The Division of Oil and Gas (DOG) currently has seventeen (17) field inspectors strategically 

located throughout the Commonwealth reporting to four (4) regional offices in Pikeville, 

Barbourville, Glasgow and Madisonville. 

Inspectors report to regional supervisors to coordinate daily inspection schedules and review 

inspector activities and reports. Division inspectors perform electronic inspections using 

Microsoft XP-Xplore IX104-PC tablets with mounted global positioning system (GPS) units, 

these tablets contain geographic information system (GIS) software including topographic maps 

of the inspector’s assigned counties. The tablets also include Risk-Based Data Management 

System (RBDMS) software containing DOG well data. DOG inspectors also use hand-held, 

Garmin 76S GPS units to capture wellhead locations. This process has increased inspector 

efficiency and productivity. In 2012 DOG inspectors performed 11,550 well-site inspections. 

DOG inspectors conducted 13,606 well-site inspections and 1,167 gathering line inspections in 

2013, in 2014 11,477 well-site inspections were performed along 700 gathering line inspections. 

Inspectors create inspection databases of recently completed inspections and submit to the 

supervisor for review. Upon approval by the supervisor, the inspection database is forwarded to 

the Frankfort, KY central office to be incorporated into the RBDMS database.

DOG Inspectors perform inspections as directed by the Division’s “Oil & Gas Inspector’s 

Manual”, the manual will be updated to include Class II inspector responsibilities, procedures 

and guidelines. This includes prioritizing of daily work schedules based on 

drilling/workover/plugging activity, and complaints received, with public complaints receiving 

the highest priority. The frequency of individual well inspections will be determined by operator 

compliance or as deemed necessary by the inspector’s supervisor or assistant director. 
15

Class II well inspections will include inspection of injection facilities and wells to insure 

compliance, investigation of wells within AOR’s, verifying and witnessing mechanical integrity 

tests, supervising corrective active plans and supervising plugging/abandonment operations. 

DOG will prioritize Class II well inspections to include:

a. Receipt of complaints of USDW contamination, degradation or adverse 

impact (USDW complaints will receive top priority).

b. Location with respect to wellhead protection area, existing USDW’s and 

active domestic water supply wells.

c. Compliance history of the well operator.

d. Mechanical Integrity Testing Schedule.

DOG currently has a schedule to inspect every active oil and gas well in the Commonwealth on a 

five (5) year cycle. The inspection frequency on active Class II wells will be every two (2) 

years, the term “active injection well” has previously been defined as in Sec. IV. Changes in 

Class II well status will be determined at the time of wellsite inspection.

VIII. REPORTING REQUIREMENTS

The well owner/operator shall promptly notify DOG in writing within twenty-four (24) hours of 

any modification in the manner in which the injection operation is conducted or of any 

mechanical failure, injection system failure or down-hole problem encountered in the operation 

of a Class II well as required in 805 KAR 1:110 (4)(1)(a). Leaking wells will be shut down 

immediately and corrective action shall be initiated with fifteen (15) days or the permit to inject 

may be revoked. 

The owner/operator shall upon completion of construction of a Class II wells file with DOG 

Form ED-23 “CERTIFICATION OF COMPLETION FOR AN INJECTION WELL” within 

ninety (90) days of final construction.

The owner or operator shall notify DOG within ninety (90) days of a well workover, logging or 

testing that may reveal down-hole conditions and file Form ED-4 “WELL RE-WORK 

REPORT” within thirty (30) days following the completion of the rework activity.

Well owner/operator shall monitor and file an annual report of monthly monitoring of injection 

fluid volumes, injection pressure, and casing annulus pressure rates and shall submit data on

Form ED-18 “ANNUAL DISPOSAL OR INJECTION WELL MONITORING REPORT”. The 

report shall be filed on or before the twenty-eighth (28th) day of January for the previous twelve 

(12) months. The owner/operator shall retain all records on file for a period of five (5) years, 

DOG will permanently retain microfilm copies of all reports submitted by Class II well 

owner/operators and will be readily accessible in DOG’s database management system. 

IX. PENALTIES/ENFORCEMENT

DOG is granted statutory enforcement authority to administer the Class II-UIC program under

KRS 353.592. As stipulated in KRS 353.992, any well owner/operator who violates any class II 

permit, rule or regulation shall be subject to a civil penalty of not more than five-thousand 
16

dollars ($5,000) for each day of such violation. If the violation is deemed to be willful or 

negligent by DOG, the civil penalty may not exceed more than ten-thousand dollars ($10,000) 

for each day of such violation. The civil penalties shall be assessed by the Circuit Court of the 

county in which the violation occurred. DOG and DNR-Legal Services work with local county 

attorneys to issue arrest warrants for owner/operators in negligent cases or habitual noncompliance issues for conventional oil and gas wells and will use the same procedure for any 

violation which would endanger a USDW or violation of KRS Chapter 353. DOG may also 

suspend a Class II permit if the injection operation is altered in a way that may endanger a 

USDW pursuant to 805 KAR 1:110 (2)(11).

Enforcement actions taken by DOG which will require semi-annual reporting to EPA-Region 4 

shall include:

 Notice of violations identified by DOG inspection staff citing the appropriate violation, 

the inspection report will be forward to central office for notice of violation issuance. 

The owner/operator will receive a notice of violation via certified mail citing the 

violation, corresponding statute and directing the operator to contact the inspector or the 

UIC Manager to bring the well into compliance. If the violation is not corrected within 

forty-five (45) days, DOG may proceed with forfeiture of the operator’s bond and may 

recover plugging and abandonment costs of the injection well pursuant to 805 KAR 

1:110 (8). The well owner/operator may be subject to additional penalties as prescribed 

in KRS 353.991 and 353.992 including imprisonment for a term not exceeding one 

hundred and eighty (180) days. 

 Consent agreements and administrative orders shall be established by DOG and the Class 

II owner/operator to bring the well into compliance after completion of corrective action 

plans as defined in Sec. VI (D).

 Civil referrals from the general public or local, state or federal agencies shall be given top 

priority as described in Sec. VII.

 Criminal referrals will occur in the event DOG identifies illegal Class II injection activity 

or gross negligence leading to USDW endangerment which will subject the 

owner/operator to penalties prescribed in KRS 353.991 and 353.992.

 Class II wells identified as in-active or “shut-in” by DOG will be cited for improper 

abandonment pursuant to KRS 353.550 and require the well to be placed back into 

operation, plugged or the well owner/operator must obtain a temporary abandonment 

permit previously described in Sec. III (B). 

 Pipeline severance may be done by DOG in conjunction with additional measures which 

include directing the well owner/operator to close or shut-in the well by placing a “redtag” on the wellhead thereby suspending the Class II permit until the well is brought into 

compliance. If the well owner/operator continues operation despite the “red-tag” order, 

DOG would seek injunctive relief in the local circuit court. Initially, the court could 

grant a temporary restraining order. That would be effective for a limited period of time. 
17

An evidentiary hearing would then be necessary for a temporary injunction to be issued, 

which would provide a court ordered “shut-in” of the injection well until a trial is held.

DOG proposes to implement violations listed below that deal specifically with Class II injection 

wells:

 Injection without a Class II permit/failure to obtain a Class II permit.

 Failure to protect the Underground Source of Drinking Water (USDW).

 Failure to run a Mechanical Integrity Test.

 Mechanical Integrity Failure.

 Injection with a higher pressure than assigned to well.

 Injection at a higher rate than assigned to permitted well.

 Injection of a non-authorized substance.

 Failure to confine injected fluid to the permitted zone.

 Failure to Maintain Class II Financial Responsibility.

 Failure to file well records.

Note: The above referenced list of violations are some; but not all of the violations that are 

applicable to Class II wells.

X. FINANCIAL RESPONSIBILITY

The owner or operator of all Class II wells shall demonstrate financial responsibility to plug and 

abandon a well to DOG requirements. If DOG issues a notice of violation, forfeits the bond, and 

subsequently plugs the well, the owner or operator shall be responsible for any additional 

plugging and abandonment costs which exceeds the bond amount. These costs, if not paid shall 

be recovered by civil suit pursuant to KRS 353.180 (3). In addition to recovery costs, the owner 

or operator shall be subject to penalties as prescribed in KRS 353.992.

In 1966, DOG began requiring well operators to post performance bonds on wells operated in 

Kentucky. Conventional oil and gas wells drilled prior to 1966 being produced by the original 

operator do not require bonding [those wells fall under “grandfather status”]. This designation of 

“grandfather status” for older wells will not apply to Class II injection wells, all injection wells 

must demonstrate financial responsibility pursuant to 805 KAR 1:110 (8)(1).

Blanket bonds in the amount of $10,000.00 cover all wells operated by a company and shall be 

on file with the DOG prior to permitting or acquiring wells. A violation against a blanket bond 

may prevent the operator from permitting or acquiring additional wells.

Individual Bonds must accompany the permit application when it is submitted to the DOG or be 

on file before wells are transferred.

Individual bonds are available on wells based on the wells’ depth as follows:

DEPTH (FT) BOND AMOUNT ($)

0-500’ $500.00

501’-1,000’ $1,000.00

1,001’-1,500’ $1,500.00

1.501’-2,000’ $2,000.00

2,001’-2,500’ $2,500.00
18

2,501’-3,000’ $3,000.00

3,001’-3,500’ $3,500.00

3,501’-4,000’ $4,000.00

4,001’ or Deeper $5,000.00 or an amount set by the

Oil and Gas Conservation Commission

Types of bonds are listed below:

CASH-Certified Bank Check, Money Order or CASH.

SURETY-Obtained from an insurance company. Division assigned “Power of Attorney” from 

insurance company.

LETTER OF CREDIT-Obtained from bank or other financial institution.

CERTIFICATE OF DEPOSIT-Operator must have $5,000.00 bonding on file with Division in 

another form. The Division cannot accept a $10,000.00 Certificate of Deposit. Original must be 

on file with Division along with verification form.

BONDING AMENDMENT

KRS 353.590 was amended due to legislative action to include a Blanket Bond Tier Schedule 

Effective July 15, 2006 based on the well operator being classified as “Qualified” or “NonQualified” as described below:

Qualified

 Operator must have a blanket bond on file prior to July 15, 2006 and have no outstanding, 

unabated violations.

 Operator must have a record on compliance with all DOG statutes and regulations for a 

period of thirty-six (36) months.

 Provide proof of financial ability to plug and abandon wells covered by the blanket bond.

Qualified Blanket-Bond Tier Schedule

No. of Wells Bond Amount

1-25 Wells $10,000

26-100 Wells $25,000

101-500 Wells $50,000

501+ Wells $100,000

Operators operating more than twenty-five (25) wells under an existing blanket bond prior 

to this amendment will continue to operate under the $10,000 bond; if new acquisitions or 

permitting places the operator in a new tier the bonding guidelines for that tier will apply.

Non-Qualified

 Operator has more than ten (10) violations of KRS chapter 353 within a thirty-six (36) 

consecutive month period.

 Operator has outstanding, unabated violations which have not been appealed.

 Operator has had a forfeiture of an individual bond or partial forfeiture of a blanket bond. 

And has no agreement with DOG for plugging of the well(s).

 Operator has a permit or permits upon which a portion, or all of the bond has been 

forfeited and the proceeds have been spent by DOG to plug the well(s).
19

Non-Qualified Blanket-Bond Tier Schedule

No. of Wells Bond Amount

1-100 Wells $50,000

101 + Wells $100,000

XI. STAFFING AND RESOURCES

Current DOG staff will manage the Class II UIC program; the DOG Assistant Director will 

assume the role as UIC Manager and initially administer the UIC program and process Class II 

permit applications, inspection duties will be assumed by existing field staff. Administration and 

coordination of the UIC program will include, but is not limited to, permit review, coordination 

of field inspection activity, reporting to USEPA, and UIC enforcement and compliance matters. 

Existing administrative specialists will provide assistance as needed on permit issuance, 

processing Class II inspections and enforcement actions. DOG’s IT-Programmer has 

incorporated changes in the database system to accommodate UIC data tables, forms and reports 

to implement Class II primacy that is compatible with current DOG well permitting, financial 

responsibility, inspection capability and violation data. The changes will also provide for EPAClass II form 7520 reporting. Changes in DOG’s database system are currently used by other 

Class II primacy states including Utah, North Dakota and Nebraska. Along with Kentucky, these 

states use Microsoft Access connected to a Microsoft SQL Server using Ground Water 

Protection Risk Based Data Management System (RBDMS). 

DOG proposes to hire an additional environmental inspector to accommodate the additional 

duties upon USEPA primacy approval. DOG inspectors are trained to conduct UIC inspections, 

types of inspections will include, but are not limited to, mechanical integrity tests (MIT), 

cementing of casing, supervising corrective action plans and plugging of Class II wells. DOG

inspectors currently review proposed plugging and abandonment of Class II wells to ensure 

USDW’s and minable coal seams are isolated with placement of cement plugs, and in some cases 

witnesses the plugging and abandonment of Class II wells in Kentucky. Upon request from 

USEPA, DOG inspectors have sent inspection reports for plugging operations to Region 4 or 

delivered to USEPA contractors. In addition, Division inspectors have witnessed and approved 

mechanical integrity tests in the past as a courtesy to USEPA. DOG anticipates the hiring of one 

(1) additional field inspector within the first year of primacy approval. 

Funding for administration of the Class II program will be provided by the Class II Federal grant 

allotment from USEPA anticipated to be approximately $175,000 and the Commonwealth of 

Kentucky General and Restricted Funds required match of twenty-five (25%) of approximately 

$59,000. A work-plan component (program element budget) template is included on the 

following page showing the estimated annual costs (federal and state), and a breakdown of DOG 

employee positions and time allocated for each phase required for implementation of the Class II 

program. Estimated costs include the initial year and second year associated with Class II 

implementation.
20

WORK PLAN COMPONENTS (PROGRAM ELEMENT BUDGET)

WORK PLAN 

COMPONENT FEDERAL 

FUNDS

STATE 

FUNDS

COMBINED 

FEDERAL 

& STATE 

FUNDS

DOG 

EMPLOYEE 

POSITION

TITLE

TIME

ALLOCATED

(%)

ADMINISTRATION $ 11,653.65 $ 3,884.55 $ 15,538.20 (1) ADMIN SP. 

UIC MGR.

15%

10%

PERMITTING $ 40,333.04 $ 13,444.34 $ 53,777.38 UIC MGR. 72%

SURVEILLANCE, 

INSPECTIONS, & QUALITY 

ASSURANCE

$ 59,631.55 $ 19,543.70 $ 79,175.25

(5) INSPECTORS 30%

ENFORCEMENT $ 8,301.02 $ 2,700.68 $ 11,001.70 (1) ADMIN SP. 

UIC MGR.

12%

8%

AQUIFER IDENTIFICATION 

AND EXEMPTION $ 5,266.51 $ 2,188.67 $ 7,455.18

UIC MGR. 10%

CLASS V ASSESSMENT N/A N/A N/A N/A N/A

DATA MANAGEMENT $ 27,092.25 $9,030.75 $ 36,123.00 IT –DATABASE

PROGRAMMER

60%

PUBLIC INFORMATION, 

TRAINING, AND 

TECHNICAL ASSISTANCE

$ 3,377.07 $ 1,092.35 $ 4,469.42

ADMIN. SP. 5%

OTHER* $ 20,824.77 $ 6,941.59 $ 27,766.36 .

TOTALS $ 176,479.86 $ 58,826.63 $ 235,306.49

FIRST 2 YEARS CLASS 

II PROGRAM 

IMPLEMENTATION 

COSTS

$ 352,959.72 $ 117,653.26 $ 470,612.98

*Other costs included vehicle usage/maintenance, inspector purchases (gauges, wrenches, etc.).

Inspector Equipment Requirements

1. 4-wheel drive vehicle

2. 500 p.s.i. Wika, fluid filled pressure gauge

3. Crescent wrench

4. 24-inch pipe wrench

5. PC Tablet computer with Risk Based Data Management System (RBDMS)

6. Steel-toed boots

7. Hardhat
21

8. Safety glasses

9. Hearing protection

10. Uniforms

11. Digital camera

12. First-aid kit

XII. ADDITIONAL AGENCIES

Administration of the Class II program will not involve other Kentucky state regulatory agencies.

XIII. CLASS II WELL INVENTORY

An inventory of Class II wells in the Commonwealth has been provided by USEPA Region IV

(see below). A review of active and abandoned Class II wells will be completed by DOG and 

inspections will be performed to ensure the wells are in compliance with DOG regulations and 

statutes and injection operations can be done without endangering USDW’s. Injection wells that 

have been granted a temporary abandonment permit may require an MIT prior to injecting if 

there has been any remedial work involving pulling the tubing or ”un-seating” the packer during 

the shut-in period. If the well is abandoned for a period of two (2) or more years, the well 

owner/operator shall plug the well in accordance 805 KAR 1:110 (10) under the direction of a 

DOG inspector.

A summary of Class II wells broken down by DOG districts and county is included 

in Appendix B.

CLASS II WELL INVENTORY

STATUS NUMBER OF PERMITS

Active, abandoned, shut-in or 

temporarily abandoned

2,850

Proposed, under const. or converted 521

Converted injection to production 277

Plugged and Abandoned 2,901

TOTAL 6,549

XIV. EXEMPT AQUIFERS

If an owner/operator desires an exempted aquifer status, he must submit adequate data to DOG

using the criteria established in 805 KAR 1:110 (3) which defines an exempted aquifer as:

1. It does not currently serve as a source of drinking water; and

2. It cannot now and will not in the future serve as a source of drinking water because:

a. It is a mineral, hydrocarbon, or geothermal energy producing, or may be 

 demonstrated to contain minerals or hydrocarbons that, considering their 

 quantity and location, are expected to be commercially producible.

b. It is situated at a depth or location which makes recovery of water for 

 drinking water purposes economically or technologically impractical.

c. It is so contaminated that it would be economically or technologically 
22

 impractical to render that water fit for human consumption.

d. The total dissolved solids content of the groundwater is more than 

 3,000 mg/l, and less than 10,000 mg/l and it is not reasonably expected to 

 supply a public water system.

If an aquifer exemption is required after technical review of the permit application, it will be 

submitted to EPA for exemption approval. Upon approval by the EPA Regional Administrator;

the well owner/operator will receive written notification of the exempted aquifer designated the 

geologic formation and the subsurface interval that is exempted as an underground source of 

drinking water. Based on documentation provided by EPA, there have been eight (8) exempted 

aquifers in Kentucky. In addition, a public notice is required for a “Proposed Aquifer Exemption 

in Conjunction with the Proposed Issuance of Underground Injection Control Permit”. Attached 

to the public notice will be a fact sheet explaining the aquifer exemption and is part of the Class 

II permit issuance process and is subject to public comment and/or objection.

XV. PUBLIC PARTICIPATION IN PERMIT ISSUANCE

Pursuant to 805 KAR 1:110, a notice of Class II permit application will be served on all surface 

property and subsurface property owners within the one-quarter (1/4) mile area of review of the 

proposed injection well. Notification shall be personal or via certified mail. DOG will require 

owner/operators of any Class II permit application place a notice in a newspaper of general 

circulation in the county where the proposed well is located. The notice shall include the name 

and address of applicant, location of the proposed well, geologic name and depth of injection 

zone, maximum injection pressure and maximum rate of barrels each day. The notice shall also 

provide a period of thirty (30) days for written comments or request for a hearing. The 

notification shall include the address to which the written comments or hearing requests shall be 

forwarded, how a person may receive written notice of the proceedings and where additional 

information concerning the proposed permit may be obtained. Proof of service of the 

notification shall be delivered to DOG before a permit for a Class II well is issued.

DOG conducts hearings under the Administrative Procedures Act KRS Chapter 13B, Class II 

well permit hearings will be conducted by the Kentucky Energy and Environment Cabinet-Office 

of Administrative Hearings.

Section 14 of 805 KAR 1:110 provides for published notice of at least thirty (30) days for public 

comment of any enforcement action beyond bond forfeiture of a Class II well. A bond may be 

forfeited by the Division of Oil & Gas for any violation of oil and gas statutes and regulations. 

To initiate bond forfeiture, DOG sends a notice of violation via certified mail to the well 

owner/operator. If the violation isn’t corrected within forty-five (45) days, bond forfeiture 

proceedings may begin pursuant to KRS 353.590 (7). An order of forfeiture letter will be mailed 

to the well owner/operator and the surety company, should the owner or surety company 

disagree with the order of forfeiture, both parties have the right to bring an action for review in 

the local circuit court or the Franklin County Circuit Court within thirty (30) days from the date 

the order of forfeiture was issued. Failure to file a request for review shall result in the order of 

forfeiture becoming final and non-appealable. Once the thirty (30) days have lapsed, DOG will 
23

take the necessary steps to obtain the bond money from the appropriate bond surety company, 

bank or other financial institution.

DOG will also prepare a Notice of Proposed Issuance of Underground injection Control (Class 

II) Permit and send the notice to all landowners within the AOR and all concerned parties that 

have contacted DOG to receive copies of all public notices. An example of the notice is attached 

in Appendix C.

XVI. PUBLIC COMPLAINTS

As standard operating procedure, all complaints received by the general public are designated as 

high-priority and immediately investigated by DOG field inspection staff. Inspectors follow 

complaint response and documentation procedure as outlined in the “Inspector’s Manual”. A 

report of the investigation is filed with the Inspector Supervisor and forwarded to the Frankfort 

office. Corrective measures are identified or violations cited if appropriate. Should the 

complaint involve another state or federal agency, the inspector will contact the appropriate state 

or federal agency. Pursuant to section 805 KAR 1:110 (14), DOG will investigate and provide 

written response to all citizens filing complaints regarding any concerns for the endangerment of 

an underground source of drinking water from a Class II well. As referenced in previously in 

Sec. VII, a complaint regarding a USDW contamination or degradation suspected of being 

impacted by a Class II injection operation will receive top priority and will be inspected 

immediately by DOG inspectors.
24

APPENDIX A

KENTUCKY DIVISION OF OIL & GAS

CLASS II PERMIT APPLICATION CHECKLIST

OPERATOR: _____________________________________________________________

WELL NAME: ___________________________________ WELL NUMBER: ___________

NEW WELL  EXISTING WELL (PROPOSED CONVERSION) 

DATE APPLICATION RECEIVED: _______________ DOG FILE NO. : _________________

 DOG Class II permit application (Form ED- 14) completed and properly filled out and 

signed by an authorized agent of the applicant. 805 KAR 1:110 (2), KRS 353.570 (1) and 

(2).

 A well location plat map included with the permit application in accordance with 805 

KAR 1:030.

Area of Review (AOR) (805 KAR 1:110 (7)

 A 7.5’ topographic map with the Area of Review (AOR) clearly marked and 

circumscribing a distance of 1⁄4 mile around the proposed injection well. 

The map shall also show:

 The number or name and location of existing producing wells, injection wells, 

abandoned wells, dry holes, plugged wells and domestic water wells. 

 Surface and subsurface mines, quarries and other pertinent surface features including 

permanent residences and all primary/secondary roads.

 Known or suspected faults (identified on USGS 7.5’ quads). 

 Location of hazardous waste treatment or disposal facilities. 

 Location of all surface and subsurface mines, quarries, residences, roads, and known or 

suspected faults within the AOR. Only information of public record and pertinent 

information known to the applicant is required. 

 Location of distribution manifold applying injection fluid to wells in the AOR including all 

system monitoring points.

 Location of all rivers and streams.

 Location, names and mailing addresses of all permanent residences.

Additional supplemental information required for AOR:

 Tabulation of well data including a description of well type, wellbore construction, date 

drilled, location, total depth, producing horizon(s), record of plugging or well 

completion.
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 Record of completion and plugging for each well which penetrates the injection zone, 

and any other wells within the AOR which would be affected by proposed increase in 

pressure if the injection well is operated over the fracture pressure of the injection 

formation.

 For wells in the AOR which are improperly sealed, completed, or abandoned, a 

corrective action plan which consists of steps or modifications to prevent movement of 

fluid into a USDW is required.

Wellbore Schematic of the Proposed Class II Well (805 KAR 1:110 (11)(d)(e)

 Total Depth (or plug-back depth) of well.

 Depth of injection or disposal interval.

 Geologic name of the injection zone or disposal zone.

 Vertical distance separating the top of the injection zone from the base of the USDW.

 Depth of the top and the bottom of all casing strings and cement displaced.

 Size of the production casing and tubing and the depth of the packer.

 Depth to the base of the deepest USDW.

Laboratory Sample Analysis of Parameters in Injected Fluid (805 KAR 1:110 (11)(2)(e)(2)

 Barium (If Sulfate is less than 500 mg/l)  Calcium  Total Iron

 Magnesium  Sodium  Bicarbonate  pH

 Specific Gravity  Carbon Dioxide  TDS  H2S

Operating Data (805 KAR 1:110 (11)(2)(g)(5)

 Estimated maximum injection pressure.

 Estimated average injection pressure.

 Estimated maximum daily injection rate and volume.

 Estimated average daily injection rate and volume.

 Material Safety Data Sheet (MSDS) for all inhibitors added to injection fluid.

 Nature of the annulus fluid between the tubing and casing.

 Amount of inhibitor.

 Pressure at which the annulus will be maintained.

Geologic Data on the Injection and Confining Zones (805 KAR 1:110 (5)(4)

 A description of the injection zone including: lithologic description, geologic name, 

thickness, & depth.

Underground Sources of Drinking Water (USDW) (805 KAR 1:110 (11)(2)(h)

 All USDW’s within the AOR shall be described through which the well would penetrate:

o Geologic Description and Name.

o Depth to bottom of USDW.
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Construction Procedures (805 KAR 1:110(11)(2)(i)

Description of the current or proposed casing program on the Casing and Cementing Plan for 

UIC Wells (Form ED-25) and shall include the following:

 Casing size, weight, and type.

 Cement volume (sacks, bbls, or ft3) and type.

 Packer type.

Stimulation Program (805 KAR 1:110 (11)(2)(j)

 Proposed stimulation (fracturing or acidizing) program, if no program is proposed, then 

state so.

Plan for Shut-ins and Well Failures (805 KAR 1:110 (11)(2)(k)

 Description of proposed contingency plans to cope with all shut-ins or well failures so as 

to prevent migration of fluids into USDWs.

Injection Procedures (805 KAR 1:110 (11)(2)(l)

 If a manifold monitoring program is utilized, a description of the program and a 

demonstration equivalence to individual well monitoring.

Plugging and Abandonment Plan (805 KAR 1:110 (10) (805 KAR 1:060 or 805 KAR 1:070)

 Proposed plugging and abandonment plan

 Current Cost needed to properly, close, plug and abandon the well(s).

Financial Responsibility (805 KAR 1:110 (8) 

Demonstration of financial responsibility is required to properly plug and abandon the well to the 

satisfaction of DOG.

Aquifer Exemption (805 KAR 1:110 (3)

If an aquifer exemption is requested, necessary data must be submitted to verify the exemption 

meets the following criteria:

 It does not currently serve as a source of drinking water.

 It cannot now and will not in the future serve as a source of drinking water:

o It is a mineral, hydrocarbon, or geo-thermal energy producing, or may be 

demonstrated to contain minerals or hydrocarbons that, considering 

their quantity and location, are expected to be commercially producible.

o It is situated as a depth or location which makes recovery of water for 

drinking water purposes economically or technologically impractical.

o It is so contaminated that it would be economically or technologically 

impractical to render the water fit for human consumption.
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o The TDS (total dissolved solids) content of the groundwater is more than 

3,000 mg/l, and less than 10,000 mg/l and it is not reasonably expected 

to supply a public water system.

Corrective Action Plans for Wells in the AOR (805 KAR 1:110 (7)(4)(a)(b)

Wells in the AOR which are improperly sealed, completed or abandoned require a corrective 

action plan which will include procedures to prevent vertical migration of fluid into USDW’s. 

DOG will review the well type, well construction, date drilled, carter coordinate location, depth, 

record of completion and/or plugging affidavits for each well in the AOR that penetrates the 

injection zone. DOG will consider following factors during evaluation of corrective action plan:

 Nature and volume of injected fluids.

 Nature of native fluids or by-products of injection.

 Potentially affected population.

 Geology

 Hydrology.

 History of injection operations.

 Well Log and Completion Reports.

 Plugging Affidavits and plugging records upon abandonment.

 Hydraulic connections with USDW’s.

Notification Process (805 KAR 1:110 (11)(4)

Applicant shall personally or by certified mail, submit written notification to:

 Each owner of rights to the surface or subsurface property that the well penetrates.

 Owner of any property within the AOR.

 Owner/operator of any oil/gas well (producing or shut-in) within AOR.

 Permittee of any underground mine within AOR.

In addition, applicant shall place a “Notice of Permit Application” in a newspaper of general 

circulation in the county the proposed well is located. Individual and publication notices shall 

include:

 Name and address of applicant.

 Location of proposed well.

 Geological name and depth of the injection zone.

 Maximum injection pressure.

 Maximum rate of barrels each day.

The notice shall specify that a person who wishes to object to the issuance of a Class II permit 

may submit written comments or request a hearing.
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APPENDIX – B

Kentucky Class II Well Inventory by County

COUNTY NUMBER OF COUNTY NUMBER OF

Barbourville District CLASS II WELLS Madisonville District CLASS II WELLS

Bell 1 Caldwell 1

Breathitt 1 Christian 138

Clay 1 Daviess 402

Harlan 1 Henderson 578

Laurel 1 Hopkins 158

Lee 1363 McLean 205

Leslie 32 Muhlenberg 216

Perry 3 Todd 2

Whitley 2 Union 258

Total 1405 Webster 169

Total 2127

Frankfort District

Estill 115 Pikeville District

McCreary 4 Boyd 3

Powell 330 Carter 1

Total 449 Elliott 18

Greenup 3

Glasgow District Johnson 617

Adair 45 Lawrence 328

Allen 12 Magoffin 286

Barren 8 Menifee 30

Breckinridge 8 Pike 1

Butler 120 Wolfe 102

Casey 1 Total 1389

Clinton 12

Cumberland 21 CLASS II SUMMARY WELLS

Edmonson 4 Barbourville 1405

Green 56 Frankfort 449

Hancock 243 Glasgow 1179

Hart 17 Madisonville 2127

Logan 2 Pikeville 1389

Meade 7 TOTAL 6549

Metcalfe 15

Monroe 10

Ohio 519

Russell 1

Simpson 4

Taylor 12

Warren 60

Wayne 2

Total 1179

Inventory obtained from EPA Region 4 
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APPENDIX C

PUBLIC NOTICE

KENTUCKY DIVISION OF OIL & GAS

P.O. BOX 2244

FRANKFORT, KY 40602

502-573-0157

Contact: marvin.combs@ky.gov

Public Notice No. Date

NOTICE OF PROPOSED ISSUANCE OF UNDERGROUND INJECTION CONTROL 

(CLASS II) PERMIT

The Kentucky Division of Oil & Gas intends to issue a Underground Injection Control (Class II) 

permit under authority of 805 KAR 1:110 to:

Company Name and Address

 The proposed Class II permit will authorize the drilling, conversion, operation, injection, 

plugging and abandonment of the (well name & number) enhanced recovery well in the (oil 

field) located in (county), Carter Coordinate location.

 The permitted well will be used to inject (water/N2/CO2) in the (formation) in (depths) below 

the surface.

 The proposed UIC permit was drafted in accordance with the provisions of the Safe Drinking 

Water Act, Kentucky Administrative Regulation 805 KAR 1:110 and other lawful standards and 

regulations. The permit limitations and conditions are tentative and open to comment from the 

public. Persons wishing to comment upon or object to any aspects of the permit issuance are 

invited to submit same in writing within thirty (30) days of this notice to: Kentucky Division of 

Oil & Gas, P.O. Box 2244 Frankfort, KY 40602 (502) 573-0147, ATTENTION: Marvin Combs 

(marvin.combs@ky.gov). The public notice number and the UIC permit number should be 

included in the first page of comments. All comments received during the public notice period 

will be made a part of the administrative record of this permit and will be available for public 

review.

 All comments received within the thirty (30) day period will be considered in the formulation 

of the final determination regarding the permit issuance. Any interested person may, within the 

thirty (30) day period, request a public hearing. Where there is a significant degree of public 

interest in the proposed permit issuance, the Division of Oil & Gas will hold a public hearing. 

Any request for a hearing must be in writing to the address given above and must state the nature 

of the issues proposed to be raised in the hearing.

 After consideration of all timely comments, the requirements and policies in the Safe 

Drinking Water Act and appropriate regulations, and, if a hearing is held, after consideration of 
30

all comments, statements and data presented at the hearing, the Division of Oil & Gas will make 

final determinations regarding the permit issuance. If the final determinations are substantially 

unchanged from the tentative determinations outlined above, the Division of Oil & Gas will so 

notify all persons who submitted written comments or participated in the hearing, if any is held. 

If the final determinations are substantially changed, the Division of Oil & Gas will issue a 

public notice indicating the revised determinations.

 Within thirty (30) days after the Division of Oil & Gas serves notice of the above final permit 

decision, any person who filed comments or participated in the public hearing, if any, may 

petition the Division of Oil & Gas to review the permit decision or any condition therein. Any 

person, who failed to file comments or failed to participate in the public hearing, if any, may 

petition for administrative review only to the extent of the changes from the draft to the final 

permit decision. Additional information regarding administrative review is available by 

contacting Larry Moscoe of the Department for Natural Resources-Office of Legal Services at 

(502) 564-6940. Technical information regarding the permit review is available by contacting 

Marvin Combs of the Division of Oil & Gas at (502) 573-0147.

 The administrative record, including application, statement of basis, draft permit, comments 

received and additional information on hearing procedures is available by writing the Division of 

Oil & Gas at the above address or for review and copying at 1025 Capital Complex East, 

Frankfort, KY 40602 between the hours of 8:00 am and 4:30 pm, Monday through Friday. 

Copies will be provided at a cost of __ per page.
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APPENDIX D

DIVISION OF OIL & GAS

REGULATIONS (KAR Chapter 805)

and

STATUTES (KRS Chapter 353)
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APPENDIX E

CLASS II FORMS