California Code of Regulations › Title 14 - Natural Resources › Division 2 - Department of Conservation › Chapter 4 - Development, Regulation, and Conservation of Oil and Gas Resources › Subchapter 1 - Onshore Well Regulations › Article 5 - Requirements for Underground Gas Storage Projects › Section 1726.4 - Underground Gas Storage Project Data Requirements

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a) For all underground gas storage projects,
					 the operator shall provide the Division with data, analysis, and interpretation
					 that demonstrate that stored gas will be confined to the approved zone(s) of
					 injection and that the underground gas storage project will not cause damage to
					 life, health, property, the environment, or natural resources. The operator
					 shall provide the data specified in this section and any data that, in the
					 judgment of the Division on a case-by-case basis, are pertinent and necessary
					 for the proper evaluation of the project. The operator shall ensure that
					 required data is complete, current, and accurate, regardless of the date of
					 approval of the gas storage project. The data submitted to the Division shall
					 include at least the following:
(1) Oil and
					 gas reserves of all storage zones prior to start of injection, including
					 calculations, to indicate the storage capacity of the reservoir being
					 considered for gas storage.
(2)
					 Description of existing surface and subsurface safety devices, tests, and
					 precautions to be taken to ensure safety of the project.
(3) Produced water disposal method.
(4) Maximum and minimum reservoir pressure
					 for the underground gas storage project and the data and calculations
					 supporting the bases for the pressure limits. The pressure limits shall account
					 for the following:
(A) The pressure required
					 to inject fluids, particularly at total inventory, shall not exceed the design
					 pressure limits of the wells, well heads, pipelines, or other associated
					 facilities; or the fracture pressure of the reservoir or confining
					 strata.
(B) The minimum reservoir
					 pressure shall take into account the historic minimum operating pressure and
					 reservoir geomechanical competency. The impacts of intended minimum reservoir
					 pressure shall be accounted for as it relates to geomechanical stress and
					 liquid influx.
(5) An
					 engineering and geological study demonstrating that injected gas will not
					 migrate out of the approved zone or zones, such as through another well,
					 geologic structure, faults, fractures or fissures, or holes in casing. The
					 study shall include, but is not limited to:
(A) Statement of primary purpose of the
					 project.
(B) Reservoir
					 characteristics of each storage zone, such as porosity, permeability, average
					 thickness, areal extent, fracture gradient, original and present temperature
					 and pressure, and original and residual oil, gas, and water
					 saturations.
(C) A comprehensive
					 geologic characterization of the gas storage project including lithology of the
					 storage zone or zones and sealing mechanisms as well as all formations
					 encountered from surface to the deepest well in the project. The geologic
					 characterization shall include any information that may be required to ensure
					 injected or withdrawn gas and other reservoir fluids do not have an adverse
					 effect on the project or pose a threat to life, health, property, the
					 environment, or natural resources. The geologic characterization shall include
					 potential pathways for fluid migration and areas or formations where potential
					 entrapment of migrated fluid could occur. Information to accompany the geologic
					 characterization shall include, but is not limited to:
(i) Structure contour maps drawn on a
					 geologic marker at or near the top of each gas storage zone in the project
					 area, indicating faults and other lateral containment features.
(ii) Isopach map of each gas storage
					 reservoir or subzone and the confining strata in the project area.
(iii) At least two geologic cross sections,
					 one on strike and one on dip, through at least four gas storage wells in the
					 project area and the areas immediately adjacent.
(iv) A representative geophysical log to a
					 depth below the deepest gas storage zone identifying all geologic units,
					 formations, groundwater that has 10,000 or less milligrams per liter of total
					 dissolved solids content, groundwater that has 3,000 or less milligrams per
					 liter of total dissolved solids content, oil or gas zones, and gas storage
					 reservoirs.
(v) Additional
					 information may be requested by the Division on a case-by-case basis, and may
					 include, but is not limited to: additional isopach maps, three-dimensional
					 modeling, oil-water, gas-water, or oil-gas contact maps of the project, or
					 other information which would delineate known features such as faults and
					 fractures within the area of review for the underground gas storage
					 project.
(D) Reservoir
					 fluid data for each gas storage zone, such as oil gravity and viscosity, water
					 quality, presence and concentrations of non-hydrocarbon components in the
					 associated gas (e.g. hydrogen sulfide, helium, etc.), and specific gravity of
					 gas.
(E) A map of the area of
					 review showing the location and status of all wells within and adjacent to the
					 boundary of the area of review. The wellbore path of directionally drilled
					 wells shall be shown, with indication of the interval penetrating the gas
					 storage zone(s) of the underground gas storage project.
(F) All data specified in Section
					 1726.4.1, provided in the form of
					 graphical casing diagrams or flat file data sets, for all wells that are within
					 the area of review and that are in the same or a deeper zone as the gas storage
					 reservoir, including directionally drilled wells that intersect the area of
					 review in the same or deeper zone.
(G) Identification of all wells associated
					 with oil and gas production that are within the area of review but that are not
					 in the same or a deeper zone as the underground gas storage project, including
					 description of the total depth of the well and the estimated top of the gas
					 storage reservoir below the well.
(H) Wells completed in or penetrating through
					 the intended gas storage reservoir shall be identified and evaluated for
					 containment assurance for the design of gas storage operation volumes,
					 pressures, and flow rates. The operator shall identify, and the Division
					 confirm, wells which may require integrity testing or well logging in order to
					 meet the integrity demonstration. The Division may select plugged and abandoned
					 wells to be re-entered, examined, re-plugged and abandoned, or monitored to
					 manage identified containment assurance issues prior to approval of gas storage
					 operations.
(I) The planned or
					 estimated well drilling and plugging and abandonment program to complete the
					 project, showing all gas storage wells, plugged and abandoned wells, other
					 wells related to the project, and the boundaries of the underground gas storage
					 project.
(J) Maps of the locations
					 of injection wells and zones, mining, and other subsurface industrial
					 activities not associated with oil and gas production or gas storage operations
					 within the area of review, to the extent it is publicly
					 available.
(6) A gas
					 storage injection and withdrawal plan that includes at least the following:
(A) Maximum anticipated surface injection
					 pressure and maximum anticipated daily rate of injection, by well.
(B) Monitoring system or method to be
					 utilized to ensure the gas injected is confined to the intended approved
					 zone(s) of injection.
(C) A
					 wellhead monitoring system for the detection of leaks.
(D) A list of cathodic protection measures
					 where employed.
(E) Analysis of the
					 gas injected, submitted to the Division on an annual basis.
(7) The name and API number of all gas
					 storage wells and other wells that are part of the underground gas storage
					 project.
(8) Any data that, in the
					 judgment of the Division on a case-by-case basis, are pertinent and necessary
					 for the proper evaluation of the underground gas storage
					 project.