Mississippi Administrative Code › Title 26 - Oil and Gas › Part 2 - WIDE RULES AND REGULATIONS (Order No. 201-51) › Chapter 1 › Rule 26-2-1.64 - UNDERGROUND STORAGE WELLS OF LIQUEFIED COMPRESSED GASES, CRUDE OILS, REFINED HYDROCARBONS, COMPRESSED AIR AND NATURAL GASES IN RESERVOIRS DISSOLVED IN SALT BEDS

Current through June 25, 2024
Permits
1. The permit for the drilling, development
				and continued operation of artificially formed underground liquefied compressed
				gas, crude oils, refined hydrocarbons, compressed air or natural gas storage
				space, where such cavity is dissolved in salt beds, may be issued only after
				notice and hearing by the State Oil and Gas Board, in the form and manner
				required by statutes and rules of this Board. Storage of lubricating oils,
				hazardous materials, nuclear, and/or radioactive materials shall not be
				permitted. Oil and Gas Board Form 2 and 2A shall accompany each permit
				application.
General Design and Construction of Underground
				  Storage Cavern
2. Prior to the design and construction of an
				underground storage cavern, an engineer and/or geologist experienced in the
				development and/or operation of a salt cavern storage facility shall perform an
				investigation to determine the feasibility of such a storage system at a
				particular site. The data obtained during the feasibility investigation shall
				be considered in the design of a solution mined underground storage system and
				such data filed with the Board.
3.
				Design shall be performed by or under the supervision of an engineer or
				geologist, as defined in paragraph 2, and shall include such factors, among
				others, as: type of storage use, location of the cavern(s), number of caverns,
				cavern capacity, and maximum development diameter of the cavern(s). The design
				shall assure that project development can be conducted in a reasonable, prudent
				and systematic manner; and shall stress physical and environmental safety and
				the prevention of waste. The design and solutioning shall be continually
				reviewed throughout the construction phase to take into consideration pertinent
				additional detailed subsurface information, and shall include provisions for
				protection from damage caused by hydraulic shock. The Board shall be advised of
				any test or surveys conducted during the construction phase and copies made
				available to the Board as soon as practicable.
4. Each solution mined storage cavern
				developed after the adoption of these rules shall be washed with a blanket
				material in place in order to prevent uncontrolled leaching of the cavern roof.
				Blanket material is defined as any non-corrosive material which is immiscible
				with water, and lighter than water, e.g. propane, diesel oil.
5. Storage operations utilizing fresh water
				to displace product shall be conducted in such a manner that the washing of the
				cavern will not result in uncontrolled increase of the cavern diameter or
				capacity, or washing the cavern roof.
Cavern Operating Pressures
6. The maximum and minimum
				operating pressure of a storage cavern shall be determined by an engineer, as
				defined in paragraph 2, after considering the geological characteristics of the
				dome. The maximum allowable operating pressure (gauge) at the production casing
				seat or cavern roof, whichever is the shallowest, shall not exceed 0.9 psi per
				foot of overburden.
7. The storage
				cavern shall not be subjected to pressures in excess of this maximum operating
				pressure even for short periods of time (including pressure pulsation peaks,
				abnormal operating condition, etc.).
Volume Verification
8. Each salt dome solution mined
				cavern developed after the adoption of these rules shall be washed to its
				initial design capacity, as approved by the Board. Such capacity shall be
				verified by a method approved by the Board, and such information shall be filed
				with the Board prior to the utilization of the cavern for storage of product.
				The cavern may be enlarged to a capacity equal to the maximum size approved by
				the Board and verified by a method approved by the Board and such information
				shall be filed with the Board within 30 days for continued operation.
9. All solution mined storage caverns in use
				at the time these rules are adopted shall have the capacity verified within one
				year from the effective date of these rules. In any event, each solution cavern
				shall have the capacity verified at least once every five (5) years. A copy of
				any and all surveys or tests run to verify capacity shall be filed with the
				Board within 30 days.
Location of Underground Storage
				  Cavern
10.
				Each solution mined cavern developed after the adoption of these rules shall be
				located as follows:
(a) The wellhead and
				borehole shall be located so that the walls of the storage cavern at maximum
				development diameter shall be no less than 100 feet from the property boundary
				of the lands included in the storage project on which the caverns are located,
				and no less than 300 feet in any direction from the edge of the salt
				mass.
(b) The minimum separation of
				adjacent walls of storage caverns as measured in any direction shall be
				established by an engineer, as defined in paragraph 2, considering
(1) the salt properties,
(2) the elevation of the top and bottom of
				the adjacent caverns,
(3) their
				maximum development diameter relative to the spacing of the caverns,
				and
(4) other considerations deemed
				appropriate for the specific site; but, in no case shall such separation at any
				time be less than 200 feet.
In the event the separation of the adjacent walls of storage
				  caverns becomes less than 200 feet, the Board will be advised and a variance
				  requested. Proof that the caverns can be safely operated with less than a
				  200-foot minimum separation between caverns must be presented to justify the
				  variance.