20 AAC 25.252. Underground disposal of oil field wastes and underground storage of hydrocarbons

(a) The underground disposal of oil field wastes and the underground storage of hydrocarbons are prohibited except as ordered by the commission under this section. In response to a letter of application for injection filed by an operator, the commission will issue an order authorizing the underground disposal of oil field wastes that the commission determines are suitable for disposal in a Class II well, as defined in 40 C.F.R. 144.6(b) as revised as of July 1, 1998, which is adopted by reference, or the underground storage of hydrocarbons. An order authorizing disposal or storage wells remains valid unless revoked by the commission.

(b) The operator has the burden of demonstrating that the proposed disposal or storage operation will not allow the movement of oil field wastes or hydrocarbons into sources of freshwater. Disposal or storage wells must be cased and the casing cemented in a manner that will isolate the disposal or storage zone and protect oil, gas, and freshwater sources.

(1) a plat showing the location of all proposed disposal and storage wells, abandoned or other unused wells, production wells, dry holes, and any other wells within one-quarter mile of each proposed disposal or storage well;

(2) a list of all operators and surface owners within a one-quarter mile radius of each proposed disposal or storage well;

(3) an affidavit showing that the operators and surface owners within a one-quarter mile radius have been provided a copy of the application for disposal or storage;

(4) the name, description, depth, and thickness of the formation into which fluids are to be disposed or stored and appropriate geological data on the disposal or storage zone and confining zones, including lithologic descriptions and geologic names;

(5) logs of the disposal or storage wells, if not already on file, or other similar information;

(6) a description of the proposed method for demonstrating the mechanical integrity of the casing and tubing under 20 AAC 25.412 and for demonstrating that fluids will not move behind casing beyond the approved disposal or storage zone, and a description of

(A) the casing of the disposal or storage wells, if the wells are existing; or

(B) the proposed casing program, if the disposal or storage wells are new;

(7) a statement as to the type of oil field wastes to be disposed or hydrocarbons stored, their composition, their source, the estimated maximum amounts to be disposed or stored daily, and the compatibility of fluids to be disposed or stored with the disposal or storage zone;

(8) the estimated average and maximum injection pressure;

(9) evidence to support a commission finding that the proposed disposal or storage operation will not initiate or propagate fractures through the confining zones that might enable the oil field wastes or stored hydrocarbons to enter freshwater strata;

(10) a standard laboratory water analysis, or the results of another method acceptable to the commission, to determine the quality of the water within the formation into which disposal or storage is proposed;

(11) a reference to any applicable freshwater exemption issued in accordance with 20 AAC 25.440; and

(12) a report on the mechanical condition of each well that has penetrated the disposal or storage zone within a one-quarter mile radius of a disposal or storage well.

(d) The mechanical integrity of a disposal or storage well must be demonstrated under 20 AAC 25.412 before disposal or storage operations are begun, after a well workover affecting mechanical integrity is conducted, and at least once every four years. To confirm continued mechanical integrity, the operator shall monitor the injection pressure and rate and the pressure in the casing-tubing annulus during actual disposal or storage operations. The monitored data must be reported monthly on the Monthly Injection Report (Form 10-406).

(e) If an injection rate, operating pressure observation, or pressure test indicates pressure communication or leakage in any casing, tubing, or packer, the operator shall notify the commission by the next working day and shall implement corrective action or increased surveillance as the commission requires to ensure protection of freshwater.

(f) The commission will require additional mechanical integrity tests if the commission considers them prudent for conservation purposes or protection of freshwater.

(g) Modifications of existing or pending disposal or storage operations will be approved by the commission, in its discretion, under 20 AAC 25.507, upon application containing sufficient detail to evaluate the proposed modification. No modification will be approved unless the applicant proves to the commission that the modification will not allow the movement of fluids into sources of freshwater.

(h) If wells, including freshwater wells or other borings, are located within a one-quarter mile radius of the disposal or storage well, are a possible means for oil field wastes or hydrocarbons to move into sources of freshwater, and are under the control of

(1) the operator, the operator shall ensure that the wells are properly repaired, plugged, or otherwise modified to prevent the movement of oil field wastes or hydrocarbons into sources of freshwater; or

(2) a person other than the operator, the commission will not issue an order under (a) of this section to the operator until the operator presents evidence to the commission's satisfaction that the person who controls the wells has properly repaired, plugged, or otherwise modified the wells to prevent the movement of oil field wastes or hydrocarbons into sources of freshwater.

(i) The commission will publish notice of the disposal or storage application and will provide opportunity for a hearing in accordance with 20 AAC 25.540.

(j) If disposal or storage operations are not begun within 24 months after the approval date, the injection approval will expire unless an application for extension is approved by the commission.

(k) The annular disposal of drilling wastes approved under 20 AAC 25.080 is an operation incidental to drilling a well and is not a disposal operation subject to this section.

( l ) This section does not apply to underground disposal that is regulated under 40 C.F.R. 147.101 by the United States Environmental Protection Agency.

History: Eff. 4/2/86, Register 97; am 11/7/99, Register 152

Authority: AS 31.05.030

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