20 AAC 25.080. Annular disposal of drilling waste

(a) A person may not dispose of drilling waste through the annular space of a well unless authorized by the commission under this section. The operator of a well permitted under AS 31.05.090 may request authorization for the disposal of drilling waste through the well's annular space by filing with the commission an Application for Sundry Approvals (Form 10-403) supplemented with additional information as required under this section.

(b) A request for authorization under this section must include the following information or refer to that information if that information is already on file with the commission:

(1) the annulus to be used for disposal;

(2) the depth to the base of freshwater aquifers and permafrost, if present;

(3) a stratigraphic description of the interval exposed to the open annulus and other information sufficient to support a commission finding that the waste will be confined and will not come to the surface or, except to the extent allowed under (e)(1) of this section, contaminate freshwater;

(4) a list of all publicly recorded wells within one-quarter mile, and all publicly recorded water wells within one mile, of the well that will receive drilling waste;

(5) the types and maximum volume of waste to be disposed of and the estimated density of the waste slurry;

(6) a description of any waste sought to be determined as drilling waste under (h)(3) of this section;

(7) an estimate of the maximum anticipated pressure at the outer casing shoe during disposal operations and calculations showing how this value was determined;

(8) details that show that the shoe of the outer casing is set below the base of permafrost, if present, and any freshwater aquifer, other than freshwater excepted under (e)(1) of this section, and is adequately cemented to provide zone isolation; the information relied upon and submitted must include

(A) cementing records; and

(B) a cement quality log or formation integrity test records;

(9) details that show that the inner and outer casing strings have sufficient strength in collapse and burst to withstand the anticipated pressure of disposal operations;

(10) the downhole pressure obtained during a formation integrity test conducted below the outer casing shoe;

(11) identification of the hydrocarbon zones, if any, above the depth to which the inner casing is cemented;

(12) the duration of the disposal operation, not to exceed 90 days;

(13) whether drilling waste has previously been disposed of in the annular space of the well and, if so, a summary of the dates of the disposal operations, the volumes of waste disposed of, and the wells where the drilling waste was generated;

(14) the well where the drilling waste to be disposed of was or will be generated;

(15) if the operator proposes not to comply with a limitation established in (d) of this section, an explanation of why compliance would be imprudent;

(16) any additional data required by the commission to confirm containment of drilling waste.

(c) The commission will authorize an annular disposal operation described in the Application for Sundry Approvals, as that application has been supplemented under this section, and subject to any modifications prescribed by the commission, if the commission determines that the

(1) waste will be adequately confined;

(2) disposal will not

(A) contaminate freshwater, except to the extent allowed under (e)(91) of this section;

(B) cause drilling waste to surface;

(D) damage a producing or potentially producing formation or impair the recovery of oil or gas from a pool; and

(3) disposal will not circumvent 20 AAC 25.252 or 20 AAC 25.412.

(d) Unless the operator demonstrates that compliance with a limitation established in (1) - (4) of this subsection is imprudent, the commission will not authorize disposal of drilling waste

(1) in a volume greater than 35,000 barrels through the annular space of a single well;

(2) for a period longer than one year through the annular space of a single well;

(3) into a hydrocarbon-bearing stratum; or

(4) through the annular space of a well not located on the same drill pad or platform as the drilling operation generating the drilling waste.

(e) On a case-by-case basis, and as the commission considers necessary to ensure that the standards in (c) of this section are met, the commission will impose conditions upon an authorization to dispose of drilling waste under this section. In addition, an authorization to dispose of drilling waste under this section is subject to the following conditions:

(1) drilling waste may not be disposed of into freshwater, unless the

(A) freshwater is identified in the Application for Sundry Approvals; and

(B) commission finds that the freshwater has a total dissolved solids content of more than 3,000 mg/l, and is not reasonably expected to supply a public water system; the commission will, in its discretion, provide 15 days notice and the opportunity for a public hearing in accordance with 20 AAC 25.540 before making that finding;

(2) the downhole disposal pressure may not exceed the downhole pressure obtained during the formation integrity test conducted below the outer casing shoe, or a higher pressure specified in the authorization upon the commission's finding that the higher pressure will not cause drilling waste to migrate above the confining zone;

(3) if drilling waste appears above the confining zone, the operator shall immediately cease disposal, notify the commission, and take appropriate remedial action;

(4) if the commission notifies the operator that disposal operations pose a threat to well integrity, safety, oil or gas recovery, or freshwater, except to the extent allowed under (1) of this subsection, the operator shall immediately cease disposal and take appropriate remedial action as approved or required by the commission.

(f) For each annular disposal operation authorized under this section, the operator shall report the following information to the commission on a Report of Annular Disposal (Form 10-423) not later than 30 days after the end of the period authorized for the disposal operation:

(1) the dates when disposal began and ended;

(2) the volume of drilling waste disposed of in each of the following categories:

(A) the aggregate of drilling wastes described in (h)(1) of this section;

(B) the aggregate of drilling wastes described in (h)(2) of this section; and

(g) The provisions of 20 AAC 25.252 and 20 AAC 25.402 - 20 AAC 25.460 do not apply to the disposal of drilling waste authorized under this section.

(h) In this section, "drilling waste" means the following substances, unless identified as a hazardous waste in 40 C.F.R. 261:

(1) drilling mud, drilling cuttings, reserve pit fluids, cement-contaminated drilling mud, completion fluids, formation fluids associated with the act of drilling a well permitted under 20 AAC 25.005, and any added water needed to facilitate pumping of drilling mud or drilling cuttings;

(2) drill rig wash fluids and drill rig domestic waste water; and

(3) other substances that the commission determines upon application are wastes associated with the act of drilling a well permitted under 20 AAC 25.005.

(i) For purposes of this section, in AS 31.05.030 (e)(2), "oil or gas well" means a well permitted under AS 31.05.090 , other than a water well associated with oil or gas exploration and production.

History: Eff. 9/22/96, Register 139; am 11/7/99, Register 152

Authority: AS 31.05.030

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