Louisiana Administrative Code › Title 43 - NATURAL RESOURCES › Part XVII - Office of Conservation-Injection and Mining › Subpart 4 - Statewide Order No. 29-M-2 › Chapter 31 - Disposal of Exploration and Production Waste in Solution-Mined Salt Caverns › Section XVII-3141 - Closure and Post-Closure

Current through Register Vol. 50, No. 6, June 20, 2024
A. Closure.
				  The owner or operator shall close the salt cavern well, salt cavern, surface
				  facility or parts thereof as approved by the Office of Conservation. Closure
				  shall not begin without written authorization from the Office of Conservation.
1. Closure Plan. Plans for closure of the
				  salt cavern well, salt cavern, and related surface facility shall be submitted
				  as part of the permit application. The closure plan shall meet the requirements
				  of these rules and regulations and be acceptable to the Office of Conservation.
				  The obligation to implement the closure plan survives the termination of a
				  permit or the cessation of salt cavern waste disposal operations or related
				  activities. The requirement to maintain and implement an approved plan is
				  directly enforceable regardless of whether the requirement is a condition of
				  the permit. The Office of Conservation may modify a closure plan where
				  necessary.
2. Closure Plan
				  Requirements. The owner or operator shall review the closure plan annually to
				  determine if the conditions for closure are still applicable to the actual
				  conditions of the salt cavern well, salt cavern, or surface facility. Any
				  revision to the plan shall be submitted to the Office of Conservation for
				  approval. At a minimum, a closure plan shall address the following:
a. assurance of financial responsibility as
				  required in §3109. B.1 All instruments of financial responsibility shall
				  be reviewed each year before its renewal date according to the following
				  process:
i. a detailed cost estimate for
				  adequate closure of the entire salt cavern waste disposal facility (salt cavern
				  well, salt cavern, surface appurtenances, etc.) shall be prepared by a
				  qualified, independent third party and submitted to the Office of Conservation
				  by the date specified in the permit;
ii. the closure plan and cost estimate shall
				  include provisions for closure acceptable to the Office of Conservation and
				  shall reflect the costs for the Office of Conservation to complete the approved
				  closure of the facility;
iii. after
				  reviewing the closure cost estimate, the Office of Conservation may increase,
				  decrease or allow the amount to remain the same;
iv. documentation from the operator showing
				  that the required financial instrument has been renewed shall be received each
				  year by the date specified in the permit. When an operator is delinquent in
				  submitting documentation of financial instrument renewal, the Office of
				  Conservation shall initiate procedures to take possession of funds guaranteed
				  by the financial instrument and suspend or revoke the operating permit. Permit
				  suspensions shall remain in effect until renewal documentation is received and
				  accepted by the Office of Conservation;
b. a prediction of the pressure build-up in
				  the salt cavern following closure;
c. an analysis of potential pathways for
				  leakage from the salt cavern, cemented casing shoe, and wellbore. Consideration
				  shall be given to site specific elements of geology, waste characteristics,
				  salt cavern geometry and depth, salt cavern pressure build-up over time due to
				  salt creep and other factors inherent to the salt stock and/or salt
				  dome;
d. procedures for determining
				  the mechanical integrity of the salt cavern well and salt cavern before
				  closure;
e. removal and proper
				  disposal of any waste or other materials remaining at the facility;
f. closing, dismantling, and removing all
				  equipment and structures located at the surface (including site restoration) if
				  such equipment and structures will not be used for another purpose at the same
				  disposal facility;
g. the type,
				  number, and placement of each wellbore or salt cavern plug including the
				  elevation of the top and bottom of each plug and the method of placement of the
				  plugs;
h. the type, grade, and
				  quantity of material to be used in plugging;
i. a description of the amount, size, and
				  location (by depth) of casing and any other well construction materials to be
				  left in the salt cavern well;
j.
				  any proposed test or measurement to be made before or during closure.
3. Notice of Intent to Close
a. The operator shall review the closure plan
				  before seeking authorization to begin closure activities to determine if the
				  conditions for closure are still relevant to the actual conditions of the salt
				  cavern well, salt cavern, or surface facility. Revisions to the method of
				  closure reflected in the plan shall be submitted to the Office of Conservation
				  for approval no later than the date on which the notice of closure is required
				  to be submitted as shown in the subparagraph below.
b. The operator shall notify the Office of
				  Conservation in writing at least 30 days before the expected closure of a salt
				  cavern well, salt cavern, or surface facility. Notification shall be by
				  submission of a request for a work permit. At the discretion of the Office of
				  Conservation, a shorter notice period may be allowed.
4. Standards for Closure. The following are
				  minimum standards for closing the salt cavern well or salt cavern. The Office
				  of Conservation may require additional standards prior to actual closure.
a. After permanently concluding waste
				  disposal operations into the salt cavern but before closing the salt cavern
				  well or salt cavern, the owner or operator shall:
i. observe and accurately record the shut-in
				  salt cavern pressures and salt cavern fluid volume for an appropriate time or a
				  time specified by the Office of Conservation to provide information regarding
				  the salt cavern's natural closure characteristics and any resulting pressure
				  buildup;
ii. using actual
				  pre-closure monitoring data, show and provide predictions that closing the salt
				  cavern well or salt cavern as described in the closure plan will not result in
				  any pressure buildup within the salt cavern that could adversely effect the
				  integrity of the salt cavern well, salt cavern, or any seal of the
				  system.
b. Before
				  closure, the owner or operator shall do mechanical integrity pressure and leak
				  tests to ensure the integrity of both the salt cavern well and salt
				  cavern.
c. Before closure, the
				  owner or operator shall remove and properly dispose of any free oil or blanket
				  material remaining in the salt cavern well or salt cavern.
d. Upon permanent closure, the owner or
				  operator shall plug the salt cavern well with cement in a way that will not
				  allow the movement of fluids into or between underground sources of drinking
				  water or outside the salt stock. Placement of cement plugs shall be
				  accomplished by using standard petroleum industry practices for downhole well
				  abandonment. Each plug shall be appropriately tagged and pressure tested for
				  seal and stability before closure is completed.
e. Upon successful completion of the closure,
				  the owner or operator shall identify the surface location of the abandoned well
				  with a permanent marker inscribed with the operator's name, well name and
				  number, serial number, section-township-range, date plugged and abandoned, and
				  acknowledgment that the well and salt cavern were used for disposal of E&P
				  waste.
5. Closure
				  Report. The owner or operator shall submit a closure report to the Office of
				  Conservation within 30 days after closure of the salt cavern well, salt cavern,
				  surface facility, or part thereof. The report shall be certified as accurate by
				  the owner or operator and by the person charged with overseeing the closure
				  operation (if other than the owner or operator). The report shall contain the
				  following information:
a. detailed procedures
				  of the closure operation. Where actual closure differed from the plan
				  previously approved, the report shall include a written statement specifying
				  the differences between the previous plan and the actual closure;
b. all state regulatory reporting forms
				  relating to the closure activity; and
c. any information pertinent to the closure
				  activity including test or monitoring data.