Louisiana Administrative Code › Title 43 - NATURAL RESOURCES › Part XVII - Office of Conservation-Injection and Mining › Subpart 3 - Statewide Order No. 29-M › Chapter 3 - Hydrocarbon Storage Wells in Salt Dome Cavities › Section XVII-303 - General Provisions

Current through Register Vol. 50, No. 6, June 20, 2024
A.
				  Applicability
1. These rules and regulations
				  shall apply to applicants, owners, or operators of a solution-mined salt cavern
				  to store liquid, liquefied, or gaseous hydrocarbons.
2. That except as to liquid, liquefied, or
				  gaseous hydrocarbon storage projects begun before October 1, 1976, no such
				  project to develop or use a salt dome in the state of Louisiana for the
				  injection, storage and withdrawal of liquid, liquefied, or gaseous hydrocarbons
				  shall be allowed until the commissioner has issued an order following a public
				  hearing after 30-day notice, under the rules covering such matters, which order
				  shall include the following findings of fact:
a. that the area of the salt dome sought to
				  be used for the injection, storage, and withdrawal of liquid, liquefied, or
				  gaseous hydrocarbons is suitable and feasible for such use as to area, salt
				  volume, depth and other physical characteristics;
b. that the use of the salt dome cavern for
				  the storage of liquid, liquefied, or gaseous hydrocarbons will not contaminate
				  other formations containing fresh water, oil, gas, or other commercial mineral
				  deposits, except salt;
c. that the
				  proposed storage, including all surface pits and surface storage facilities
				  incidental thereto which are used in connection with the salt dome cavern
				  storage operation, will not endanger lives or property and is environmentally
				  compatible with existing uses of the salt dome area, and which order shall
				  provide that:
i. liquid, liquefied, or
				  gaseous hydrocarbons, which are injected and stored in a salt dome cavern,
				  shall at all times be deemed the property of the injector, his successors or
				  assigns, subject to the provisions of any contract with the affected land or
				  mineral owners; and
ii. in no event
				  shall the owner of the surface of the lands or water bottoms or of any mineral
				  interest under or adjacent to which the salt dome cavern may lie, or any other
				  person, be entitled to any right of claim in or to such liquid, liquefied, or
				  gaseous hydrocarbons stored unless permitted by the injector;
d. that temporary loss of jobs
				  caused by the storage of liquid, liquefied, or gaseous hydrocarbons will be
				  corrected by compensation, finding of new employment, or other provisions made
				  for displaced labor.
3.
				  That in presenting evidence to the commissioner to enable him to make the
				  findings described above, the applicant shall demonstrate that the proposed
				  storage of liquid, liquefied, or gaseous hydrocarbons will be conducted in a
				  manner consistent with established practices to preserve the integrity of the
				  salt stock and the overlying sediments. This shall include an assessment of the
				  stability of the proposed cavern design, particularly with regard to the size,
				  shape and depth of the cavern, the amount of separation among caverns, the
				  amount of separation between the outermost cavern wall and the periphery of the
				  salt stock, and any other requirements of this Rule.
4. That these regulations shall apply to all
				  liquid, liquefied, or gaseous hydrocarbon storage projects begun before October
				  1, 1976, as specified in
				  §303.
				  A 2, except for the requirements under
				  §307 and
				  §311 A-H. Any
				  liquid, liquefied, or gaseous hydrocarbon storage projects begun before October
				  1, 1976 shall fulfill the requirements of
				  §309.
				  K within one year of the effective date of
				  these regulations.