Texas Regulations for Geologic Storage of Carbon Dioxide

Global CCS Institute

Austin Regional Meeting

Austin, Texas

November 8, 2011

Dave Hill, CCS Program

Railroad Commission of Texas

Texas and CO2 GS (CCS)

Overview of Legislation (Senate Bill 1387)

Class VI Wells “Phase I” of Chapter 5

Comparison of Phase I with Federal Rules

EOR/EGR Activities “Phase II” of Chapter 5

Report to the Legislature

Senate Bill 1387 (SB 1387)

• SB1387: In 2009, the Texas Legislature passed, and the governor signed a bill, “relating to the capture, injection, sequestration, or geologic storage of carbon dioxide”. This was in response to a federal draft rule creating a new class of injection wells, known as Class VI wells under the Underground Injection Control (UIC) part of the Safe Drinking Water Act SDWA). Other well classes remained unchanged.

Anthropogenic Carbon Dioxide

• SB 1387 in large measure deals with anthropogenic CO2 which is “ carbon dioxide that would otherwise be released to the atmosphere…”. This includes CO2 that has been stripped from another fluid stream (ex: gas processing plant), or captured from an emissions source. This does not include naturally occurring CO2 recaptured, recycled, or reinjected as part of enhanced oil recovery (EOR) operations

SB 1387 JURISDICTION

RRC jurisdiction over anthropogenic CO2 GS (CCS)

In reservoirs productive of oil, gas, or geothermal resources in the past, or potentially in the future

In saline formations above or below such reservoirs

RRC jurisdiction over extraction of anthropogenic CO2

No change in CO2 EOR/EGR jurisdiction

SB 1387 CO2 Ownership and Stewardship

- Stored CO2 is property of the storage

operator or his heirs, successors, or assigns

- Unless found to be abandoned, CO2 not the

property of the owner of the surface or

mineral estate

- Allows owner to extract anthropogenic CO2

SB 1387 REQUIREMENTS

RRC responsibilities regarding CO2 GS

RRC/TCEQ MOU update

RRC rules consistent with EPA rules

RRC to seek enforcement primacy

Reports to the Legislature

SB 1387 REQUIREMENTS

STATUS

RRC/TCEQ MOU adopted 08-30-2010

CCS Phase I adopted 12-20-2010

CCS w/EOR/EGR, Phase II, adopted 7-17-11

Enforcement primacy: In progress

Combined joint report published 12-01-2010

RRC CO2 GS REGULATIONS Phase I

16 TAC Chapter 5 includes the same elements as federal rules:

Site characterization

AoR and corrective action

Well construction/Plugging

Mechanical integrity/Monitoring

Emergency response

Financial Security

Post-injection facility care

Site Characterization

Maps: §5.203 (b) requires surface maps depicting property boundaries, wells, and other pertinent surface features, such as surface water bodies, roads, houses, and pipelines.

Site Characterization

Maps: §5.203 (c) requires geologic and topographic maps, cross sections, discussion of known or suspected transmissive faults.

• This section requires formation data including depth, areal extent, mineralogy, permeability, porosity, fm pressure, and basic geochemistry from sources such as logs, cores, and surveys.

• Geomechanical data on fractures, ductility, rock strength and stress.

Area of Review (AOR) and Corrective Action (CA)

• AOR & CA: §5.203 (d) requires the owner / operator (O/O) to delineate the AOR, identify wells requiring corrective action, and perform the corrective action on those wells.

• Requires computational modeling that considers properties and volumes of CO2, fm properties, and other available data. Predict lateral and vertical plume migration.

• Tabulate and document status of wells in the AOR.

Injection Well Construction

• Injection Wells: §5.203 (e) requires wells to be constructed to prevent movement of fluids that will endanger USDW’s, allows proper testing devices and continuous monitoring.

• Construction with casing and cement of sufficient strength and quality to maintain integrity during the design life of the well.

• Requires wells to have casing installed in a manner that protects USDW’s

Logging, Sampling, & Testing Before Injection

§5.203 (f) requires the applicant to submit a plan to gather data after permitting and before injection. Intent is to verify formation properties, assure conformance well specifications, and to provide baseline data. Plan has 3 major aspects.

• Logs and surveys of newly drilled wells,

• Determination of Hydro-geology of the injection and confining zones,

• Sampling to include temperature, pH, conductivity, reservoir pressure, and static fluid level of the injection zone. Core analyses that are representative are also required.

Mechanical Integrity Testing

• §5.203 (h) requires mechanical integrity testing before beginning injection operations and at least once every 5 years thereafter.

• This subsection also requires a mechanical integrity testing plan as part of the permit application. This plan should detail site specific methods and related considerations.

Operating Information & Plan

• §5.203 (i) requires an operating plan. This is to include proposed operating parameters such as CO2 injection rates and volumes, injection pressure, source of the CO2, and chemical and physical characteristics of the injectate.

• The plan is to address potential issues including mechanical failure, transmissive fractures, and impact to USDWs.

Monitoring, Sampling, & Testing After Initiation of Operation

• §5.203 (j) requires a plan to verify that the geologic storage facility is operating as permitted and that the injected fluids are confined to the injection zone.

• Requirements include continuous recording devices for pressure, rate and volume, monitoring of USDW’s, corrosion monitoring, and monitoring of geochemical and geophysical changes.

Well Plugging

• §5.203 (k) requires a plan for plugging injection and monitoring wells. This includes requirements for final reservoir and mechanical testing, flushing, as well as cement pumping and compatibility. This also includes notification requirements.

Emergency and Remedial Response Plan

• §5.203 (l) requires a plan for emergency and remedial response. This is to describe proposed actions to be taken to address escape of CO2 from the permitted interval, accounts for the entire AOR, addresses potential safety issues, and also includes emergency response, security measures, and training.

Post Injection Care and Closure

• §5.203 (m) requires a plan for post injection storage facility care and closure. This plan is to include the predicted position of the CO2 plume and associated pressure front at closure, post injection monitoring locations and their methods and frequencies, a proposed reporting schedule, and an estimated cost of plan activities.

Notice and Hearing

§5.204 describes notice and hearing requirements. This includes

• Notice by local publication,

• Placing a copy of the application in a public place in the nearest city,

• Criteria for a list of persons to be notified,

• Hearing requirements

Fees, Financial Responsibility, and Financial Assurance

§5.205 includes description of Fees, Financial Responsibility, and Financial Assurance requirements. This includes

• Fees to be paid for permit applications, and per ton injected,

• Requirements to verify financial responsibility,

• Criteria to be met for financial assurance regarding various operations and phases of the facility,

• Notice of adverse financial conditions

Permit Standards

• §5.206 states RRC may issue a permit if:

No endangerment/injury to oil, gas, other minerals

USDW’s protected from permitted activities

No endangerment/injury to human health/safety

Reservoir suitable for preventing CO2 escape/migration

Applicant meets statutory and regulatory requirements

Plans in §5.203 are approved and followed

Reporting and Record Keeping

• §5.207 includes reporting and record keeping requirements. This includes test records and operating reports. Depending on the information reported, reporting frequency may be within 24 hours, or at other intervals such as monthly, semi-annual, or annual

State-specific elements:

Letter from TCEQ Executive Director (GAU)

Use of other rules where appropriate, including

• SWR 1 – Notice of bankruptcy

• SWR 13 – Well completion

• SWR 14 – Well plugging

• SWR 46 – EOR/EGR

• SWR 78 – Financial assurance for wells

• Water Well Driller rules

Differences from EPA:

Differences from EPA regulations:

Do not imply more than one confining zone necessary

No prohibition against storage above USDW

External MIT once every 5 years

No default (50-yr) post-injection monitoring

Phased financial assurance on corrective action

5 yr (rather than 10 yr) records retention

More flexibility

ENFORCEMENT PRIMACY:

EPA

Split jurisdiction

Work Load

RRC CO2 GS REGULATIONS Phase II Associated with EOR/EGR

PURPOSE - §5.301: Provide for certification of GS

of CO2 incidental to enhanced recovery operations

for which:

there is a reasonable expectation of more than

insignificant future production volumes or rates as a result of the injection of anthropogenic CO2 ; and

operating pressures no higher than reasonably

necessary for enhanced recovery

RRC CO2 GS REGULATIONS Associated with EOR/EGR (Phase II)

Registration for Certification

§5.303 Requires registration of enhanced recovery facility for which the operator proposes to document GS of anthropogenic CO2 incidental to enhanced recovery

RRC CO2 GS REGULATIONS Associated with EOR/EGR (Phase II)

Application and Fee

§5.304 Establishes registration application requirements, including registration and certification fees for each facility.

RRC CO2 GS REGULATIONS Associated with EOR/EGR (Phase II)

Monitoring, Sampling and Testing Plan:

§5.305 requires this plan in order to allow a

determination by mass balancing or actual system

modeling of the quantities of anthropogenic CO2

permanently stored within the enhanced recovery

reservoir for documentation to RRC.

In lieu of mass balance or modeling, the O/o

may comply by submitting to the RRC a copy of

information submitted to EPA under Subparts RR or UU of 40 CFR Part 98, of GHG Rules

RRC CO2 GS REGULATIONS Associated with EOR/EGR (Phase II)

Standards for Certification under §5.306:

To verify geologic storage of CO2, operator must

maintain, and be in compliance with, approved

testing, monitoring, and reporting plan.

RRC may then annually issue a certification

provided that all other requirements are met.

SB 1387 JOINT REPORT

Two reports were required under Sections 9

and 10 of SB 1387. One by GLO, and one by

RRC & TCEQ. The UT-Bureau of Economic

Geology was directed to assist in each. A

comprehensive report was issued by the four

state agencies.

Intended to provide policy information,

discussion of technical issues, and legislative

recommendations to the Texas Legislature in

response to their requirements.

Report Highlights

• Discusses regulatory framework for leasing state lands and addressing related legal and legislative issues

• Recommends a permitting process for saline aquifers not productive of oil, gas, or geothermal resources

• Discusses procedures for public comment

• Discusses Financial Assurance options and addresses long term liability issues for post operational phases

• Discusses the means of ensuring the quality of natural and cultural resources

• Recommends criteria to identify candidate sites in seven specified geologic settings

SB 1387 JOINT REPORT

http://www.rrc.state.tx.us/

Click

o Forms, Maps & More (near the top)

Click

•Publications

First Document, pdf format

Questions?

david.hill@rrc.state.tx.us

512 463 3011