Induced Seismicity f rom Oil and Gas Wastewater Injectionoilandgasbmps.org/docs/GEN472_Mutz_IS_Law_Comparison.pdf · Induced Seismicity Associated with Oil & Gas Development: A Primer

InducedSeismicityfromOilandGasWastewaterInjection

AComparisonofStateandFederalLawRegardingClassIIUndergroundInjectionControl(UIC)Wells

KathrynMutzandCodyPhillips

ColoradoCollaboratoryforInducedSeismicity,UniversityofColorado–Boulder

KathrynMutzisaresearcherwiththeColoradoCollaboratoryforInducedSeismicityattheUniversityofColorado–Boulder,DirectoroftheIntermountainOilandGasBMPProject,andprincipalofNaturalResources,LLC.SeetheCollaboratoryathttps://www.colorado.edu/research/induced-seismicity/SeetheBMPProjectathttp://www.oilandgasbmps.org/CodyPhillipsisalawstudentatUniversityofColorado–BoulderLawSchool.

TheLawAtlasInducedSeismicitydataset,whichisthebasisofthisdocument,isavailableonthePolicySurveillanceProgramwebsite.Seehttp://lawatlas.org/datasets/IS-oil-gas-wastewaterOrgotohttp://lawatlas.org/topics(chooseEnvironmentalHealth,then“InducedSeismicityfromOilandGasWastewaterInjection”)

InformationontheColoradoCollaboratoryforInducedSeismicityanditsproject:HazardsSEES:TheRiskLandscapeofEarthquakesInducedbyDeepWastewaterInjection,isavailableat:https://www.colorado.edu/research/induced-seismicity/

Acknowledgements

ThankstotheNationalScienceFoundation(NSF)asthismaterialisbaseduponworksupportedbytheNSFundergrantno.1520846totheColoradoCollaboratoryforInducedSeismicity.

ThankstothefacultyresearchersandgraduatestudentsoftheColoradoCollaboratoryforInducedSeismicitywhowelcomedalawschoolresearcherintotheirengineeringandsocialscienceworld.

ThankstotheNaturalResourcesLawCenter,nowtheGetches-WilkinsonCenter,attheUniversityofColoradoLawSchoolthatgavemyresearchandcommunityengagementprojectsahomeforalmost20years.

ThankstothestaffoftheCenterforPublicHealthLawResearchatTempleUniversity’sBeasleySchoolofLawandLegalScience,LLCfortheirencouragementandhelptohostourresearchintheirLawAtlasdatabaseandMonQcleplatform.

Thankstothecontractattorneys,lawstudentsandundergraduateinternswhohaveworkedonthisprojectoveritsfour-yearlifespan:TrevorAdkins,ShelbyAnderson,ShaulaEakins,KayleenGlaser,ValerieGooch,CharlesGoodson,ConnerKingsley,KyleShaby,KatherineStruthers,JodiWallace,BruceWalters,TaberWard,andMichelleWhite.SpecialthankstoMichaelMazottiwhostuckwiththeprojectlongaftertheenthusiasmofotherstudentswaned.

TableofContentsEXECUTIVESUMMARY....................................................................................................................................................1INTRODUCTION................................................................................................................................................................3REGULATINGFORINDUCEDSEISMICITY...................................................................................................................61.REGULATORYAUTHORITY(Q1-Q3)............................................................................................................................................72.WELLPERMITTINGANDSITING(Q4–Q5)................................................................................................................................11WellPermitting(Q4)....................................................................................................................................................................................11WellSiting(Q5)...............................................................................................................................................................................................14

3.WELLCONSTRUCTIONANDOPERATION(Q6–Q11)...............................................................................................................18CasingandCementing(Q6).......................................................................................................................................................................18MechanicalIntegrity(Q7)..........................................................................................................................................................................18FluidInjectionProcesses(Q8)..................................................................................................................................................................19Monitoring,RecordKeeping,andReporting(Q9–Q10)............................................................................................................23AdaptiveManagement(Q11)...................................................................................................................................................................30

4.PUBLICPARTICIPATION,FINANCIALASSURANCES,FEES,ANDLIABILITY(Q12-Q16).........................................................35PublicParticipation(Q12).........................................................................................................................................................................35FinancialAssurances(Q13).......................................................................................................................................................................39Fees(Q14)...........................................................................................................................................................................................................42Liability(Q15–Q16).....................................................................................................................................................................................43

CONCLUSION....................................................................................................................................................................46APPENDICES.....................................................................................................................................................................48APPENDIXA:STATUTESANDREGULATIONSCITEDINTHELAWATLASDATASET.......................................................................48APPENDIXB:SUMMARYOFREGULATORYISSUESADDRESSEDINTHELAWATLASDATASET,QS1–16..................................58APPENDIXC:LAWATLASDATASETSTATISTICALREPORT:QSANDAS........................................................................................60APPENDIXD:LAWATLASDATASETSTANDARDREPORT:ANSWERS,SUPPORTINGCITATIONS,ANDCAUTIONFLAGS............60

1

ExecutiveSummaryThisdocumentcomparesthelawsandregulationsofsevenstatesandthefederalgovernmenttocontrolthedisposalofoilandgaswastewaterintoClassIIUndergroundInjectionControl(UIC)wells.Thebasisofthiscomparisonisacompilationofapplicablestatutesandregulationsintoapubliclyavailable,on-line,free-accessdatasetonLawAtlas.org,hostedbythePolicySurveillanceProgramattheCenterforPublicHealthLawResearchatTempleUniversity’sBeasleySchoolofLaw.MostofthefederalandstatelawdisplayedintheLawAtlasdatasetandadditionalmaterialsgleanedfromstateagenciesweredesignedtoprotectundergroundsourcesofdrinkingwater(USDWs),althoughsomearespecifictocontrollinginducedseismicity.Thefocusofthedatasetandthiscomparisonistohighlightwhichjurisdictionshaveregulatorytoolstoaddressthehazardsandrisksofinducedseismicity.

Theregulatorytools,citedinanswering16LawAtlasquestions(Qs),address:

(1) RegulatoryAuthority(Q1-Q3)(2) WellPermittingandSiting(Q4-Q5)(3) WellConstructionandOperation(Q6-Q11)(4) PublicParticipation,FinancialAssurances,andLiability(Q12-16)

Mostofthelawdiscussedinthefirstthreesectionsaddressesthepotentialhazardsofinducedseismicity.Thelawdiscussedinthefourthandfinalsectionismoreapplicabletoamelioratingoratleastredirectingriskawayfromthepublicandinternalizingittotheoilandgasindustry.

(1)RegulatoryAuthority:Alljurisdictionssurveyedallowoilandgasdevelopmentstodisposeofwastewaterbyinjection(seeQ1).Sixofthesevenstatessurveyedhaveprimaryresponsibility(primacy)forregulatingundergrounddisposalofwastewater(seeQ2).Fourstateshaveregulationsspecifictocommercialdisposalwells.

(2)WellPermittingandSiting:Allofthejurisdictionsrequireoilandgasfluidinjectionwellstobepermittedandallrequiretheapplicanttosubmitinformationonsubsurfacefeatureswiththeirpermitapplication(seeQ4).Whilemultipleregulationsrequireapplicantstosubmitinformationduringthepermittingprocess,onlyafewregulatoryprovisionsexplicitlyprohibitorseverelyrestrictthesitingofawellbasedonspecificcriteria(seeQ5).SomeoftheserestrictionsarespecifictoprotectingwaterqualityofUSDWs;otherscouldbemoregenerallyapplicable.

(3)WellConstructionandOperations:Beyondestablishingsitingrestrictions,alljurisdictionswithprimacyforClassIIwellsregulatebyspecifyingwellconstructionrequirementsand/orrestrictingtheoperationofthewell.AlljurisdictionsrequirecasingandcementingofClassIIinjectionwells(seeQ6)andrequiremechanicalintegritytestingbothbeforeinjectionoperationsbeginandthroughoutthelifeoftheinjectionwell(seeQ7).Alljurisdictionsregulatethefluidinjectionprocess,includinginjectionpressure.Someregulatethevolumeorrateofinjection(seeQ8).Allofthejurisdictionsalsorequiremonitoring,recordkeeping,andreportingtoverifycompliancewithpermitrequirementsandidentifypotentialproblems(seeQ10),althoughonlyonestatehasspecificregulationsregardingoperatormonitoringforseismicity(seeQ9).All

2

jurisdictionshaveauthoritytorequirecorrectiveactionundercertaincircumstances(seeQ11).Theseactionsincludemodifyingpermitsorshuttinginwells.

(4)PublicParticipation,FinancialAssurances,FeesandLiability:Althoughnoneofthejurisdictionssurveyedhavepublicnotice/comment/hearingregulatoryrequirementsspecifictoseismicevents,allofthemrequirepublicnoticeandopportunitiesforpublichearingsregardingClassIIwellpermitapplications.Publicparticipationopportunitiesare,however,morelimitedonceinjectionwellsareoperating(seeQ12).Alljurisdictionsrequiretheoperatortopostfinancialassurances,generallysuretybonds,forinjectionwells,althoughthepurposeandamountoftheseinstrumentsvaries(seeQ13).Thestatesalsochargevariouscombinationsofpermitprocessingfeesandannualoperating(licensure)fees(seeQ14)thatcanoffsetthecostsofregulation.Mostofthejurisdictionsdonotdirectlyaddressliabilityorburdenofproofregardingeitherthecauseofseismicityorfordamagescausedbyinducedseismicity(seeQ15).Onlytwoofthesevenstatesrequireoperatorstoholdliabilityinsurance(Q16).

3

IntroductionHazardouswasteinjectionintodeepwellsattheRockyMountainArsenalnearDenver,COwasrecognizedasthecauseofearthquakesintheearly1960s,1butverylittleinducedseismicityhasbeenattributedtooilandgaswastewaterdisposaluntilrecently.2Inthelastdecade,however,disposalofoilandgasproductionwastewaterbyinjectionintodeepwellshasbeenimplicatedinhundredsofsmallearthquakesandseveral,largerdamagingearthquakesinseveralstates.3ThisdocumentisacomparisonofthelawsandregulationsavailabletostatesandthefederalgovernmenttocontrolthedisposalofoilandgaswastewaterintoClassIIUndergroundInjectionControl(UIC)wells.Thebasisofthiscomparisonisacompilationofapplicablestatutesandregulationsintoapubliclyavailable,on-line,free-accessdatasetonLawAtlas.org,hostedbythePolicySurveillanceProgramattheCenterforPublicHealthLawResearchatTempleUniversity’sBeasleySchoolofLaw.4

WastewaterdisposalbyinjectionwaslargelyunregulateduntilthepassageoftheSafeDrinkingWaterAct(SDWA)in1974.5WhiletheSDWAandmostofthestatelawthatcontrolsClassIIUICwellsisintendedtoprotectundergroundsourcesofdrinkingwater(USDWs)fromcontamination,6ourdatasetprovidesacross-sectionalcomparisonofthestateandfederallawsthatmightalsobeusedtomanageinducedseismicity.ThedatasetiscurrentasofAugust16,2019forregulationsoftheU.S.EnvironmentalProtectionAgency(EPA)thatimplementtheSDWAandstatutesandregulationsofsevenstateswithsignificantoilandgasdevelopment.Ofthesevenstates–Arkansas

1DavidM.Evans,TheDenverAreaEarthquakes&TheRockyMountainArsenalDisposalWell,3TheMountainGeologist.23(1966),availableat:https://scits.stanford.edu/sites/default/files/evans_0.pdf

2See,NationalResearchCouncil,InducedSeismicityPotentialinEnergyTechnologies,2013(NRC,2013),at88andAppendixC(listinginducedeventsasof2011),availableat:https://www.nap.edu/read/13355/chapter/1.

3See,GroundWaterProtectionCouncilandInterstateOilandGasCompactCommission,PotentialInjection-InducedSeismicityAssociatedwithOil&GasDevelopment:APrimeronTechnicalandRegulatoryConsiderationsInformingRiskManagementandMitigation.SecondEdition,2017(GWPCISPrimer),at3and23,availableat:http://www.gwpc.org/sites/default/files/ISWG%20Primer%20Second%20Edition%20Final%2011-17-2017.pdf

4TheLawAtlasInducedSeismicitydatasetisavailableat:http://lawatlas.org/datasets/IS-oil-gas-wastewaterOrseehttp://lawatlas.org/topics(chooseEnvironmentalHealth,then“InducedSeismicityfromOilandGasWastewaterInjection”.Seealsohttps://monqcle.com/forinformationonthedatabaseplatform.

5SafeDrinkingWaterActof1974,42U.S.C.§300h(2016);https://www.govinfo.gov/content/pkg/USCODE-2010-title42/pdf/USCODE-2010-title42-chap6A-subchapXII.pdf.Seealso,L.Warner,Deep-WellInjectionofLiquidWaste:AReviewofExistingKnowledgeandanEvaluationofResearchNeeds,U.S.Dept.ofHealth,Education,andWelfare.36-37(1965),availableat:https://nepis.epa.gov/Exe/ZyPDF.cgi?Dockey=94003ZVN.PDFlso

6NRC,2013,at118.

4

(AR),Colorado(CO),Kansas(KS),Ohio(OH),Oklahoma(OK),Pennsylvania(PA),andTexas(TX),onlyPA7hasnotexperiencedinducedseismicity.8Thelawofthreestates,AR,COandOK,canalsobeviewedovertime(longitudinally)includinglawchangesin2019.

LawAtlas.orgorganizestheapplicableClassIIUICwellregulationsinaseriesof16questions(Qs)andanswers(As)withanswerselection(coding)basedsolelyonstatutoryorregulatorylanguagethatisinterpretedliterally.Ratherthaninferringhowaregulationmightbeinterpretedbytheagency,onlyexplicitlanguageofalaworregulationiscodedasarequirementinthatjurisdiction.9Similarly,astate’sbroadauthorityregardinganissue,e.g.,totakenecessaryactiontoabateaproblem,isnotcodedtoincludetheindividualoptionsforaction,e.g.,shuttinginawell.Wherethereisambiguityinananswer,theanswerchoiceorapplicablelawtextisexplainedorqualifiedwithcautionflags.

Whileeachjurisdictionhasrulesspecifictodisposalwells,10EPA,CO,OH,KS,andPAhaveadditionaloilandgasregulationsthatapplymorebroadly.Theseadditionalregulationsapplytoinjection/disposalwellsbecause“injectionwell”or“disposalwell”isincludedinthejurisdiction’sdefinitionof“well”.11Incontrast,AR,OKandTXdonothaveinclusivedefinitionsof“well,”butmaydefinewelltypesindividually.12Thedatasetfocusesonregulationsofthejurisdiction’soilandgasregulatoryagency,e.g.,theCOOilandGasConservationCommission,withafewregulationsor

7See,PennsylvaniaDepartmentofEnvironmentalProtection,InjectionWellsforEnhancedRecoveryandDisposal(Apr.2018)(PADEP,2018)(“noinducedseismiceventshavebeenobservedinPennsylvaniainassociationwithinjectionwellsatthetimeofthispublication.”),at2,availableat:http://www.depgreenport.state.pa.us/elibrary/GetDocument?docId=1419032&DocName=INJECTION%20WELLS%20FOR%20ENHANCED%20RECOVERY%20AND%20DISPOSAL.PDF%20%20%3cspan%20style%3D%22color:blue%3b%22%3e%3c/span%3e%2011/15/2020

8Inthisdocument,thesevenstatessurveyedarereferredtoas“thestates”;whenEPAisincluded,theeightentitiesarereferredtoas“thejurisdictions”.

9Forexample,neitheraregulationthatrequiresthepermitapplicanttoreportthemaximumvolumeofwaterexpectedtobeinjected(e.g.,CO),noraregulationrequiringtheoperatortoreporttheamountinjected(allstates)isinterpretedasthejurisdiction“restricting”thevolumeinjected.

10Forexample,2Colo.CodeRegs.§404-1-325UNDERGROUNDDISPOSALOFWATER.

11Forexample,COdefines“well”as:“WELLwhenusedaloneintheseRulesandRegulations,shallmeananoilorgaswell,aholedrilledforthepurposeofproducingoilorgas,awellintowhichfluidsareinjected,astratigraphicwell,agasstoragewell,orawellusedforthepurposeofmonitoringorobservingareservoir.”2Colo.Code.Regs.§404-1-100DEFINITIONS(italicsadded)

12Forexample,TXdefines“gaswell”,“oilwell”,“exploratorywell,”etc.intheirAdministrativeCode(16Tex.Admin.Code§3.79Definitions)and“disposalwell”and“injectionwell”intheirWaterCode(2Tex.WaterCodeAnn.§27.002[InjectionWells]Definitions).ARdistinguishesbetweenClassIIDisposalWells(a.k.a.privateornon-commercialwells),ClassIICommercialDisposalWells,and,asof2019,hasaddedthedefinitionofa“highvolumedisposalsystem”basedonon-sitestoragecapacityofgreaterthan1000barrelsofClassIIfluids.(Ark.CodeR.RULEH-1(a)(1),(8),and(11))

5

commentsofotherstateenvironmentalagencies,e.g.,theARDepartmentofEnvironmentalQuality(ARDEQ)thatregulatessurfacefacilitiesofbothcommercialandhighvolume,non-commercialdisposalwells.

Thefocusofthissummaryistocomparemanagementofoilandgaswastewaterinjectionbasedontheanswerstothedatasetquestions(e.g.,Q1–Q16)andthetextofthestatutesandregulationsincludedintheLawAtlasdataset.13Whileonlyrequirementsspecifiedinthesestatutesandregulationareusedtoselectanswerstodatasetquestions,thissummaryalsoincludesdisposalwellregulationreflectedin(1)agencyforms,(2)agencyactionsandpolicies,and(3)afewlegislativeandregulatoryproposals.Forexample:

(1) Somejurisdictionshaverequirementsinpermittingorreportingforms,notexplicitlyincludedinregulations,thatoperatorsmustusetoapplyforapermitand/oroperateaninjectionwell.Theseformsareidentifiedinthedatasetthroughcautionflagsandincludedinthissummarywithparentheticalreferencesinthetext(e.g.,Form2).

(2) Jurisdictionsalsorequestorrequireinformationoruseagencydiscretioninevaluatingpermitapplicationsortoimposeconditionsofapprovalforoperatinginjectionwells.Thissummaryincludesexamplesoftheseagencyactionsandpolicystatements,e.g.,orders,directives,permitconditions,protocols,andguidancedocuments,thataddnuancetothestates’regulationofClassIIUICwells.Thesourcesoftheseactionsandpoliciesarecitedinfootnotes.

(3) Andfinally,thissummaryoutlines,attheendofeachapplicablesection,afewpertinentlegislativeproposalsandagencyproposedrulesorrulerecommendationsconsidered,butrejected,byKSlegislatorsandtheTXRailroadCommissioninthelastfewyears(seethe“REJECTEDLEGISLATION/RULES”boxes).

Whilethissummaryprovidesverylittleanalysisandcommentonthelaw,itprovideseasyaccesstothepertinentprovisionsofeachjurisdiction,andourhopeisthatthisstimulatesevaluationanddiscussionofthevariousjurisdictions’approachestoClassIIUICwellmanagementasitrelatestoinducedseismicity.Theprojectteamwelcomesotherresearchers,regulators,industryandindividualstoutilizethedatasetinitscurrentform,toupdateit,ortoexpandittoincludeadditionalstatesortoaddressadditionalissues.14

13ThefulltextofapplicablestatutesandregulationsareincludedintheLawAtlasdatasetascitations.Specificcitationtothesestatutesandregulationsarenotincludedinthissummaryunlessthediscussionincludesaquotedpassage.SeetheLawAtlas.orgdatasetforindividualcitations,availableat:http://lawatlas.org/datasets/IS-oil-gas-wastewater

14Forcomments,correctionsorquestionscontactKathrynMutz,NaturalResources,[email protected]@gmail.com.

6

RegulatingforInducedSeismicityBothstateandfederallawcanpromotereductioninboththehazardandtherisk15ofearthquakesinducedbyfluidinjectionbyregulatingwastewaterinjectioninanumberofways.Waysinwhichinducedseismicityhazardcanbereducedoravoidedinclude:

• Sitingdisposalwellstoavoidareassusceptibletoearthquakes,thatisareaswithsitespecificearthquaketriggeringfeatures,e.g.,faults.Sitingdecisionsincludeboththeareallocationofthewellandthelocationofthefluiddisposalzone.Avoidanceofproblematiclocationscanbethrougheitherablanketmoratoriumorwell-by-wellsitingdecisions.

• Constructingdisposalwellstooperateasdesigned,i.e.,injectingandkeepingfluidsinthetargetformation.

• Operatingdisposalwellstomaintaintheconstructedsafeguardsandtoidentifyanyunexpectedproblems.Essentialcomponentsofproperoperationsaremonitoringandreportingofoperatingparameters,includinginjectionvolume/rateandpressure,andmaintainingmechanicalintegrityofthewell.

• Implementingadaptivemanagementstrategies,i.e.,requiringchangestoeitherthewellsite(depthofwellandinjectionformation),oroperationalparametersinresponsetoareaseismicity.

Inadditiontothesemeansofreducinghazard,inducedseismicityriskcanbeamelioratedorredirectedby:

• Sitingdisposalwellstoavoidpopulationareasorsensitivestructures;• Involvingtheaffectedpublicinsiting,constructionandoperationsdecisionmaking;• Internalizingthefullcostofagency(i.e.,taxpayer)costsinpermitting,monitoringand

regulatingdisposalwells;and• Compensatingimpactedindividualsfordamagesfrominducedearthquakes.

ThefederalandstatelawsdisplayedintheLawAtlasdatasetarecomparedinthissummarytohighlightwhichjurisdictionshaveregulatorytools–whethertheybedesignedtoprotectUSDWsorspecifictoinducedseismicity–toaddressthesehazardsandrisksofseismicevents.

Theregulatorytools,citedinanswering16LawAtlasquestions,address:

1. RegulatoryAuthority(Q1-Q3)

2. WellPermittingandSiting(Q4-Q5)

3. WellConstructionandOperation(Q6-Q11)

15See,GWPC IS Primer, at 38 (Ahazardisanysourceofpotentialdamage,harm,oradverseimpactonsomethingorsomeone.Ariskisthechanceorprobabilitythatapersonorpropertywillbeharmedifexposedtoahazard.).

7

4. PublicParticipation,FinancialAssurances,andLiability(Q12-16)

AppendixAliststhelawsandregulationthatarethebasisofthissummaryandarecitedinthedataset.

AppendixBliststheissuesorquestions(Qs)addressedinthedatasetandtheirpotentialanswers(As).

AppendixCprovidesaStatisticalreport,generatedbytheLawAtlasdataset,thatsummarizesthequestionsandanswersforEPAandthesevenstates.

AppendixDprovidesaStandardreport,generatedbytheLawAtlasdataset,thatincludestheanswerstothequestions,supportingcitations,andthetextofanycautionflags.

1.RegulatoryAuthority(Q1-Q3)Alljurisdictionssurveyedallowoilandgasdevelopmentstodisposeofwastewaterbyinjection(seeQ1).Fourstates(AR,CO,OK,andTX)haveregulationsspecifictocommercialdisposalwells,andtheEPAdefinescommercialdisposalwellsinitspermittingprocess(Form7520-06)(seeQ3).Thesejurisdictionsalldefineacommercialwellas(1)acceptingfluidsfrommultipleoilorgaswelloperators(thirdparties)and(2)chargingafeefordisposal.OK16andTXincludetheadditionalcriterionthattheoperator'sorwell’sprimarybusinessobjectiveistoprovidetheseservices.17

DisposalwellsforoilandgasdevelopmentareclassifiedasClassIIinjectionwellsundertheFederalUndergroundInjectionControl(UIC)programimplementingtheFederalSafeDrinkingWaterAct.18Sixofthesevenstatessurveyedhaveprimaryresponsibility(primacy)forregulatingthisundergrounddisposalofwastewater(seeQ2).Ofthestatessurveyed,onlyPAhasnotappliedforprimacyanddependsonEPAtoregulatethepermittingandoperationofthesewells,althoughPAhasstateregulationsthatalsoapplytoUICClassIIwells.WhenPAlawisdisplayedinthedatasetanddescribedinthissummary,itreferstoPAprovisionsoflawandregulationandafew

16InAugust2019,OKproposedtochangeitsdefinitionof“commercialdisposalwell”toremovethisadditionalcriterion.See,OKLAHOMACORPORATIONCOMMISSION,DRAFTAMENDMENTSASOFAUGUST15,2019,TITLE165.CORPORATIONCOMMISSION,CHAPTER10.OIL&GASCONSERVATION,availableat:https://content.govdelivery.com/attachments/OKOCC/2019/09/11/file_attachments/1283601/Ch10DraftProposals8-15-19.pdf

17Thedatasethighlightsdistinctionsbetweenrequirementsforcommercialandnon-commercialdisposalwells.Regulatoryprovisionsforbothcommercialandnon-commercialwellsareincludedthroughoutthedataset,e.g.,regardingMITs(Q9)orspecificreportingrequirements(Q7).Additionalcommercialwellregulatoryprovisions,i.e.,notspecifictootherquestions,arecitedinanswertoQ3.Theseincludeadditionalpermitting,wellconstruction,surfacefacility,andmonitoring/reportingrequirements.

18SafeDrinkingWaterActof1974,42U.S.C.§300h(2016);https://www.govinfo.gov/content/pkg/USCODE-2010-title42/pdf/USCODE-2010-title42-chap6A-subchapXII.pdf

8

PA-specificEPAregulations.TounderstandthecompleteregulatoryregimeforClassIIUICwellsinPArequiresaddingthecitedPAlawtotherequirementsandrestrictionsofEPAUICregulations.19

ToqualifyforprimacyunderSDWA§1422,astatemustshowit:

(i)hasadoptedafterreasonablenoticeandpublichearings,andwillimplement,anundergroundinjectioncontrolprogramwhichmeetstherequirementsofregulationsineffectundersection1421;and

(ii)willkeepsuchrecordsandmakesuchreportswithrespecttoitsactivitiesunderitsundergroundinjectioncontrolprogramastheAdministratormayrequirebyregulation.SDWASec.1422(b)(1)(A).20

WhilemanystatesreceivedprimacyforClassIIwellsunder§1422,allofoursurveyedstates(excludingPennsylvania)obtainedprimacyunderSDWA§1425.21ThissectionwasaddedtotheSDWAbya1980amendmentforthepurposeofallowingstateswithpre-existingUICregulatoryprogramstocontinuetheirprogramswithouttheadditionalburdensoffederalrequirementssolongasthestateprogramfulfillsthepurposeandmeetstherequirementsoftheSDWA.22§1425provides,inlieuofthe§1422showings,that:

theStatemaydemonstratethatsuchportionoftheStateprogrammeetstherequirementsofsubparagraphs(A)through(D)ofsection1421(b)(1)23andrepresentsaneffective

19AnexampleofaPA-specificEPAregulationis40CFR§147.1951EPA-administeredprogram,thatstatesthat“TheUICprogramfortheStateofPennsylvania,includingallIndianlands,isadministeredbyEPA.”GeneralEPAUICregulationsincludealloftheEPAregulationsthatdefinetheUICprogram,i.e.,40CFRparts124,144,145,146,and148.

20Ifforoneofseveralreasons,theAdministratordisapprovesallorpartofaState’sprogram,theAdministratormay(SDWA§1422(c):“...prescribe(andmayfromtimetotimebyregulationrevise)aprogramapplicabletosuchStatemeetingtherequirementsofsection1421(b).Suchprogrammaynotincluderequirementswhichinterferewithorimpede—

(1)theundergroundinjectionofbrineorotherfluidswhicharebroughttothesurfaceinconnectionwithoilornaturalgasproductionornaturalgasstorageoperations,or

(2)anyundergroundinjectionforthesecondaryortertiaryrecoveryofoilornaturalgas,unlesssuchrequirementsareessentialtoassurethatundergroundsourcesofdrinkingwaterwillnotbeendangeredbysuchinjection.”

21SeeStates’Tribes’andTerritories’ResponsibilityfortheUICProgram,availableat:https://www.epa.gov/sites/production/files/2019-04/documents/primacy_status_revised_april17_2019_508c.pdf

22H.R.RepNo.96-1348,at5(1980)

23SDWA§1421(b)(1):Regulationsundersubsection(a)forStateundergroundinjectionprogramsshallcontainminimumrequirementsforeffectiveprogramstopreventundergroundinjectionwhichendangers

9

program(includingadequaterecordkeepingandreporting)topreventundergroundinjectionwhichendangersdrinkingwatersources.SDWA§1425(a).

Consequently,thesevenstatesconsideredinthissummarywerenotrequiredtoadoptstatutoryorregulatoryprovisionsidenticaltotheEPA’s.Rathertheywererequiredtodemonstrateprovisionsaseffectiveasthefederalstandards.ARisanexampleofastatewho’spre-SDWAundergroundinjectioncontrolprogramlawsandregulationswereadoptedforthefederalprimacyprogram.24Somestates,seee.g.,OH,haverulesthatprecludetheiroilandgasrulesfrombeingmorestringent

drinkingwatersourceswithinthemeaningofsubsection(d)(2).SuchregulationsshallrequirethataStateprogram,inordertobeapprovedundersection1422—

(A)shallprohibit,effectiveonthedateonwhichtheapplicableundergroundinjectioncontrolprogramtakeseffect,anyundergroundinjectioninsuchStatewhichisnotauthorizedbyapermitissuedbytheState(exceptthattheregulationsmaypermitaStatetoauthorizeundergroundinjectionbyrule);

(B)shallrequire(i)inthecaseofaprogramwhichprovidesforauthorizationofundergroundinjectionbypermit,thattheapplicantforthepermittoinjectmustsatisfytheStatethattheundergroundinjectionwillnotendangerdrinkingwatersources,and(ii)inthecaseofaprogramwhichprovidesforsuchanauthorizationbyrule,thatnorulemaybepromulgatedwhichauthorizesanyundergroundinjectionwhichendangersdrinkingwatersources;

(C)shallincludeinspection,monitoring,recordkeeping,andreportingrequirements;and

(D)shallapply(i)asprescribedbysection1447(b)1,toundergroundinjectionsbyFederalagencies,and(ii)toundergroundinjectionsbyanyotherpersonwhetherornotoccurringonpropertyownedorleasedbytheUnitedStates.

24SeeArkansasOilandGasCommission;UndergroundInjectionControl;ProgramApprovalat49Fed.Reg.11179.

10

thanthefederalrules25oratleastrequiretheagencytoevaluateandjustifyamorestringentrule(e.g.,OH,26PA27andOK28).29

25OhioRev.Code§1509.22Storageordisposalofbrine,crudeoil,naturalgas,orotherfluids

(D)(5):Thisdivisionandrules,orders,andtermsandconditionsofpermitsadoptedorissuedunderitshallbeconstruedtobenomorestringentthanrequiredforcompliancewiththeSafeDrinkingWaterActunlessessentialtoensurethatundergroundsourcesofdrinkingwaterwillnotbeendangered.

26OhioRev.CodeAnn.§121.39Identifyingdocumentationthatisbasisforlegislationdealingwithenvironmentalprotection.[applicabletorulesafter3-5-1996]

...

(B)Exceptasotherwiseprovidedindivision(E)ofthissection,whenproposedlegislationdealingwithenvironmentalprotectionorcontainingacomponentdealingwithenvironmentalprotectionisreferredtoacommitteeofthegeneralassembly...,thesponsor...shallsubmittothemembersofthecommitteeawrittenstatementidentifyingeitherthedocumentationthatisthebasisofthelegislationorthefederalrequirementorrequirementswithwhichthelegislationisintendedtocomply.Ifthelegislationisnotbasedondocumentationorhasnotbeenintroducedtocomplywithafederalrequirementorrequirements,thewrittenstatementfromthesponsorshallsoindicate.

...

(D)Exceptasotherwiseprovidedindivision(E)ofthissection,priortoadoptingaruleoranamendmentproposedtoaruledealingwithenvironmentalprotectionorcontainingacomponentdealingwithenvironmentalprotection,astateagencyshalldoallofthefollowing:

(1)Consultwithorganizationsthatrepresentpoliticalsubdivisions,environmentalinterests,businessinterests,andotherpersonsaffectedbytheproposedruleoramendment;

(2)Considerdocumentationrelevanttotheneedfor,theenvironmentalbenefitsorconsequencesof,otherbenefitsof,andthetechnologicalfeasibilityoftheproposedruleoramendment;

(3)Specificallyidentifywhethertheproposedruleoramendmentisbeingadoptedoramendedtoenablethestatetoobtainormaintainapprovaltoadministerandenforceafederalenvironmentallawortoparticipateinafederalenvironmentalprogram,whethertheproposedruleoramendmentismorestringentthanitsfederalcounterpart,and,iftheproposedruleoramendmentismorestringent,therationalefornotincorporatingitsfederalcounterpart;

(4)Includewiththeproposedruleoramendmentandtherulesummaryandfiscalanalysis[informationfrom(D)(2)and/or(D)(3),asapplicable]

...Division(D)ofthissectiondoesnotapplytoanyemergencyruleadoptedunderdivision(B)(2)ofsection111.15ordivision(G)ofsection119.03oftheRevisedCode,butdoesapplytoanysuchrulethatsubsequentlyisadoptedasanonemergencyruleundereitherofthosedivisions.

274Pa.Admin.Code§1.371Generalrequirements

11

2.WellPermittingandSiting(Q4–Q5)WellPermitting(Q4)Allofthejurisdictionsrequireoilandgasfluidinjectionwellstobepermitted30andallrequiretheapplicanttosubmitinformationonsubsurfacefeatureswiththepermitapplication(seeQ4).

• Alljurisdictionsrequirethepotentialpermitteetoprovideinformationonaquifersandgeologicstrataattheproposedwelllocationandtoidentifythelocationofnearbywells.In2019,OKincreasedtheareaofreviewforidentifyingthelocationofexistingwellsnearproposedhigh-volume,non-commercialdisposalwells(wellsinjecting20,000barrelsperdayorgreater)fromone-quartertoone-halfmile.ThisbroughtOK’sareaofreviewcriterionforhighvolume,non-commercialwellsuptothestandardforcommercialwells,whichisone-halfmileregardlessofinjectionvolume.InDecember2019,OKproposedadditionalchangestorulesonidentifyingthelocationofwellsandnotifyingsurfaceownersandoperators.Ifpromulgated,thesechangeswouldrequirecomparableinformationforcommercialandnon-commercialwellsandonlydistinguishbetweenwellsoflessthanorgreaterthan5,000barrelsperday.Theproposedrulewouldexpandtherequiredareaofreviewtotwomilesforallwellsofgreaterthanthe5,000barrelsperdayvolume.31

Inthedraftingandpromulgatingofnewregulationsandtheapplicationandreviewofexistingregulations,agenciesshalladheretothefollowingprinciples:

...

(5)IfFederalregulationsexist,regulationsoftheCommonwealthmaynotexceedFederalstandardsunlessjustifiedbyacompellingandarticulablePennsylvaniainterestorrequiredbyStatelaw.

28Okla.Stat.tit.§27A,1-1-206.Economicimpactandenvironmentalbenefitstatements

A.Eachstateenvironmentalagency[CorporationCommissionincludedindefinitioninOkla.Stat.tit.§27A,1-1-201]inpromulgationofpermanentruleswithinitsareasofenvironmentaljurisdiction,priortothesubmittaltopubliccommentandreviewofanyrulethatismorestringentthancorrespondingfederalrequirements,unlesssuchstringencyisspecificallyauthorizedbystatestatute,shalldulydeterminetheeconomicimpactandtheenvironmentalbenefitofsuchruleonthepeopleoftheStateofOklahomaincludingthoseentitiesthatwillbesubjecttotherule.

29TheenvironmentalagenciesofCO(CODepartmentofPublicHealthandEnvironment)andTX(TXCommissiononEnvironmentalQuality)havesimilarqualifiedrestrictionsregardingwaterpollutioncontrolregulations.Colo.Rev.Stat.§25-8-202(8)(a)(Dutiesofcommission—rules)andTex.WaterCodeAnn.§26.017(5)(Cooperation).

30Jurisdictionsmayallowtemporaryinjectionwithoutapermit.Forexample,Ohio'sregulationsallowthechieftoauthorizetemporaryinjection(48hours)withoutapermitinordertoevaluatepotentialforinjection.(OhioAdmin.Code§1501:9-3-06(A))

31See,OKLAHOMACORPORATIONCOMMISSION,REVISEDDRAFTAMENDMENTSASOFDECEMBER2,2019,TITLE165.CORPORATIONCOMMISSION,CHAPTER10.OIL&GASCONSERVATION(OK12-2-19DraftChapter10Amendments),at60,availableat:

12

• Halfofthejurisdictions(AR,OH,TX,andEPA)specificallyrequireidentificationofareafaults.ButonlyTXregulationsrequireUICwellapplicantstosubmitinformationonhistoricearthquakes.32

• Variationamongthejurisdictionsregardingsubmittalofsubsurfacefeatureinformationincludes:

• EPAregulationsdonotrequireareviewofareaseismicity,buttheirUICClassIIPermitApplication,Form7520-6,does.PAreliesonEPA’spermitinformationrequirementsandPAperformsareviewthatincludesageologicanalysisbasedondisposalwellsfunctioningasapollutionabatementprocess.33

• WhileCOandOKregulationsdonotrequirefaultlocationorhistoricseismicityinformationfromUICwellapplicants,CO34andOK’s35agencystaffreviewpermitapplicationsforproximityofproposedwellstofaultsandpotentialareaseismicity.OKrequiresspecialpermittingifawellisproposedwithinthreemilesofastressedfault,evenintheabsenceofhistoricseismicity.36

• TXistheonlyjurisdictionwithregulationsrequiringinformationonbedrock/basementrock,althoughEPA’spermitapplicationformalsorequiresthisinformation(Form

https://content.govdelivery.com/attachments/OKOCC/2019/12/03/file_attachments/1335811/Ch10DraftProposals12-2-19.pdf

32ATXdisposalwellapplicationmustincludeaUSGSEarthArchivesearch,beginningasfarbackas1973,within100squaremiles(acircularareawitharadiusof9.08kilometers)oftheproposedwellsite.See16Tex.Admin.Code§3.9(3)(B).Inaddition,TXregulationsnotonlyauthorize,butrequiretheTexasRailroadCommissiontorequireapplicantstosubmitanyinformationitconsidersnecessarytodischargeitsduties.33See,PADEP,2018,at2citing25Pa.Code§91.5.

34ColoradoOilAndGasConservationCommission(COGCC)2017AnnualReport,(COGCC2017AnnualReport)availableat:https://cogcc.state.co.us/documents/library/technical/wqcc_wqcdannualreports/2017annualreportwqcc_final_12302017.pdf(COGCC’sstaffgeologicexpertsreviewUICpermitsforsitespecificmatters,suchastheoccurrenceoffaultsandpotentialseismicissues.)

35EarthquakesinOklahoma,OklahomaCorporationCommissionathttp://earthquakes.ok.gov/what-we-are-doing/oklahoma-corporation-commission/(TheCommissionhasadopteda“trafficlight”system...whichdirectsstafftoreviewdisposalwellpermitsforproximitytofaults,seismicityintheareaandotherfactors.Allproposeddisposalwells,regardlessoflocation,nowundergoaseismicityreview.)

36OKMediaAdvisory–OngoingOCCEarthquakeResponse,March25,2015(OKMediaAdvisory,3/25/15),availableat:http://www.occeweb.com/News/2015/03-25-15%20Media%20Advisory%20-%20TL%20and%20related%20documents.pdf

13

7520-6).37andCO’spermitreviewprocessconsiderstheproximityofinjectionintobasementrocks.38Inareasofhistoricearthquakesorfaulting,OHlooksatwhethertheinjectionwellisdrilleddeepenoughtohaveapathofcommunicationwiththefaultinthecrystallinebedrock.39

• Allstateshaveadditionalregulatoryrequirementsforprovidingresultsofdownholeteststhatmayaidinidentifyingfaultsandcharacterizingpotentialproblems(e.g.,electric,resistivity,andconductivitylogs).

TheseprovisionsaregenerallyintendedtominimizethepotentialforUSDWcontaminationbyevaluatingthelocationofaquifers,suitabilityofconfininglayers,andthepotentialforexistingfaultsandwellstoconductcontaminatedfluidsbeyondtheirintendedinjectionzone.40ZoneofEndangeringInfluence(ZEI)41testsalsoprovideinformationforevaluatingthevolumeofwastefluidsthataformationisexpectedtosafelyaccept(basedonformationpressure)aswellastheinjectionpressurethatwillnotcausefractures(basedonfracturegradient).WhilethesetestsmaybeintendedtoprotectUSDWs,theinformationtheyprovidecanalsobeusefulinmakingwellsitingdecisionsanddevelopingoperatingconditionstoavoidorminimizeinducingseismicity.

37EPA,InstructionsforForm7520-6UndergroundInjectionControlPermitApplicationforaClassIIWell,availableat:https://www.epa.gov/sites/production/files/2019-05/documents/owner_or_operator_permit_application_for_a_class_ii_well_form_7520-6_class_11.pdf.

38ColoradoOilandGasCommission,EngineeringUnitSeismicityReviewForClassIIUndergroundInjectionControlWells,Governor’sTaskForceSummary(COGovernor’sTaskForce,2014),availableathttp://cogcc.state.co.us/documents/about/tf_summaries/govtaskforcesummary_sesimicity_review_for_class_ii_underground_injection_control_wells.pdf.39PreliminaryReportontheNortstarIClassIIInjectionWellandSeismicEventsintheYoungstown,Ohio,Area,availableat:http://oilandgas.ohiodnr.gov/portals/oilgas/downloads/northstar/reports/northstar-preliminary_report.pdf

40NRC,2013at118(“UICregulationsrequiringinformationonlocatinganddescribingfaultsintheareaofaproposeddisposalwellareconcernedwithcontainmentoftheinjectedfluid,notthepossibilityofinducedseismicity.”).

41 J.DanielArthuretal.,ClassIIDisposalWellBestManagementPracticesWorkshop,GWPC.org(2016),availableat:http://www.gwpc.org/sites/default/files/event-sessions/Tomastik_Tom_ClassIIWorkshop.pdf.

14

REJECTEDLEGISLATION/RULES:

Kansas:In2018,abillbeforetheKSlegislature(HB267242)wouldhaverequiredpermitapplicantstoprovideinformationregardingpotentialseismicconcernsandariskassessmentofthepotentialforinducedseismicitybasedontheproposedlocation,depthofthewell,andproposeddailyinjectionvolume.

Texas:In2014,TXproposedrequiringcalculationoftheestimatedfivepoundspersquareinch(psi),10-yearpressurefrontboundaryanduseofthatareaforevaluatinghistoricseismicactivity.43Theyoptedinsteadtohavealloperatorsusea100squaremilesearchareaalthoughanindustrygrouprecommendedasmallersearchareaforalloperatorsandanevensmallersearchareasforsmallvolumedisposalwells(<5000barrelsperday).Inadditiontothischange,theRailroadCommissionincludedthecalculationofpressurefrontboundariesinthelistofadditionalinformationthattheycouldrequireanapplicanttoprovideiftheydeterminedthattherewerecomplexgeology,proximityoftheinjectionintervaltothebasementrock,presenceoftransmissivefaults,and/orahistoryofseismicevents.

Onegroupofcommentersrecommendedmorestringentrequirements:suggestingthattherulestatethattheCommission“will”ratherthan“may”requestadditionalinformationandwouldhaverequiredanapplicanttoavoidanypressuredevelopmentnearamajorfaultsystemthatisactiveorappearscriticallystressedandtorequireannualmeasurementandreportingofbottomholeshut-inpressuretodetermineifinjectedfluidsarehavingfar-reachingeffectsonsubsurfacestress.Anothercommenterrecommendedmorediscussionintheregulationsonthetypesofinformationneededforpermitting,includingbutnotlimitedtoadiscussionofradioactivetracerorspinnersurveys,welllogs,andgeologicalinvestigationofpotentialfaulting.OthercommentersrecommendedmoreCommissionflexibilitysuchthattheCommissionrequiredifferentactionsindifferentareasofthestateoraddressseismicityinfieldrulesratherthanthroughstatewiderulemakingssinceseismicityappearstobeconcentratedincertainareasofthestate.

WellSiting(Q5)Whilemultipleregulationsrequireapplicantstosubmitinformationforthepermittingprocess,onlyafewregulatoryprovisionsexplicitlyprohibit(i.e.,wouldcauseanagencytorejectapermitapplicationforaspecificinjectionwelllocation)orseverelyrestrictthesitingofawell(eitheritssurfacelocationortheinjectionformation),basedonspecificcriteria(seeQ5).Someofthese

42HouseBillNo.2672(2018)(HB2672),availableat:http://kslegislature.org/li_2018/b2017_18/measures/documents/hb2672_00_0000.pdf.

43ChristinaSelf,GeneralCounseltotheRailroadCommissionofTexas,16TACChapter3--OilandGasDivision,reviewbylegalcounseloftheagency’slegalauthoritytoadoptamendmentsto§3.9and§3.46August29,2014(TXLegalCounselReview,2014),availableat:https://www.rrc.state.tx.us/media/24613/adopt-amend-3-9and3-46-seismic-activity-102814-sig.pdf

15

restrictionsarespecifictoprotectingwaterqualityofUSDWs;otherscouldbemoregenerallyapplicable.

EPAsitingrulesarespecifictoprotectingUSDWwaterquality.EPArulesrestrictsitingClassIIUICwellsnearfaults,butonlyiftheconfiningzonebetweentheproposedinjectionformationandaUSDWhasanopenfaultorfracture.HealthisanotherEPAsitingcriterion,butonlytotheextentthathealthwouldbeadverselyaffectedbycontaminationofUSDWs.AR,KS,OK,andTXallhaverestrictionsrelatedtotheinjectionformationanditsconfininglayersinordertoprotectfreshwaterresources.Beyondtheseinjectionformationrestrictions,statesalsohavespecificsitingcriteriatoprotectUSDWs.Forexample,OKregulationsprohibitcommercialdisposalwellsinadesignatedwellheadprotectionarea(forpublicwatersupplywells).

Otherstaterestrictionsallowagencydiscretioninwater-relatedcircumstances.

• OKoperatorscansiteanon-commercialdisposalwellwithinhalfmileofamunicipalwatersupplyiftheyprovide“substantialevidence”thatthedisposalwellwillnotpollutethewatersupplywell.OKregulationsalsohavesitingrestrictionsbasedonthicknessofoverlyingstrata,althoughtheagencyhasdiscretionregardingthicknessoftheconfininglayerthatprotectsUSDWsfrompollutionforwellsinjectinglessthan10,000barrelsperdayorequivalent.In2019,however,anOKrulechangespecifiedanincreaseinthethicknessofaconfininglayer(from500to3000feet)consideredsufficienttoprotectfreshwaterfromwellsinjectingat10,000barrelsperdayormoreequivalentrate.Thisrulechangeeffectivelyremovedagencydiscretiononwaiversforwellswiththesehigherinjectionrates.

• CO’scansiteaE&PWasteManagementFacility,thatcouldincludedisposalbyinjection,ina“sensitivearea”iftherewillbe“adequatemeasuresandcontrols”toprotecttheareaduringoperations.

AfewstateshaveregulationsthatexplicitlygobeyondUSDWswitheitherspecific,non-waterrelatedregulationsorwithmoregeneralorcomprehensiveregulationsthatcouldbeappliedtominimizepotentialforinducedseismicity.

• InamoratoriumarearelatedtotheGuy-GreenbrierEarthquakeSwarm,ARrestrictssitingbasedonproximitytofaults,otherinjectionwells,andseismiceventsthatdefinethemoratoriumarea.Theserestrictionsonbothcommercialandnon-commercialinjectionwellscanallbewaivedbytheCommissionafternoticeandhearing.

• OHregulationsrequireasetbackfromcertainstructures–thestatedoesnotallowUICwellswithindesignateddistancesfromvariouscategoriesofbuildingsandtransportationinfrastructure.Whileintendedtoprotectpublicsafety,theseshortsetbackdistances(50–100feet)wouldfallshortofprotectingindividualsandtheirpropertyfrominducedseismicityimpactswhichmaybefeltmanymilesfromaproblematicinjectionwell.

16

• Moregenerally,COregulationsallowUICpermitdenialiftheDirectorhas“reasonablecausetobelievethattheproposeddisposalwellcouldresultinasignificantadverseimpactontheenvironmentorpublichealth,safetyandwelfare.”44

REJECTEDLEGISLATION/RULES:In2018,abillbeforetheKSlegislature(HB267245)proposedprohibitingClassIIdisposalwellswithin10milesofanyknownorsuspectedfaultline.

Beyondregulation,afewjurisdictionshavepolicies,guidelinesorrecommendations,orhaveissuedspecificorders/directivesforrestrictingthesitingofUICwellsthatcanhelpreduceinducedseismicity.

• EPAhasadecision-treemodelforwellpermittingwhichrecommendsrestrictingwellsitingifthepotentialforinducedseismicityisfoundandtherearenosuitablemitigationmeasuresavailable.Seismicpotentialisdeterminedbypresenceofdeep-seatedtransmissivefaultsthatintersecttheproposedinjectionzone.46

• COstaffreviewpermitapplicationsforsitespecificmatters,suchasfaultsandpotentialseismicissues.IfhistoricseismicityisidentifiedinthevicinityofaproposedClassIIUICwell,theCOOilandGasConservationCommission(COGCC)requirestheoperatortocharacterizetheseismicpotentialwithrespecttotheproximityofinjectionintobasementrocksandknownfaults.47

• KShadnot,asofearly2017,eliminatedexisting,norprohibitednewwellsintheArbuckleFormation,buthasrestrictedsitingofnewhighvolumewellswithin¼mileofexistinghighvolumeinjectionwellsinordertorestrictthetotalvolumeinjectedinanarea.48

442Colo.CodeRegs.404-1-325(b)-UndergroundDisposalofWater–Withholdingapprovalofundergrounddisposalofwater.

45HB2672.

46EPA,UndergroundInjectionControlNationalTechnicalWorkgroup,RecommendedDecision-TreeModel,MinimizingAndManagingPotentialImpactsOfInjection-InducedSeismicityFromClassIIDisposalWells:PracticalApproaches(2014),availableat:https://www.epa.gov/sites/production/files/2015-08/documents/induced-seismicity-201502.pdf

47COGovernor’sTaskForce,2014.

48KansasCorporationCommission.ReportandRecommendation,ConservationDivision,RE:StaffRecommendationDocketNo.15-CONS-770-CMSC.33117,availableat:http://estar.kcc.ks.gov/estar/ViewFile.aspx/20170331164547.pdf?Id=cffb006f-cb05-4cbf-9a20-35db76d8ce46(limitedinjectionduetoearthquakeslinkedtodisposalintotheArbuckleFoundation;analysisoflargevolumewellswithin¼mileofnewlargevolumewellpermitapplications).

17

• OHpolicyistoprohibitallinjectionintothePrecambrianbasementtoavoiddrillingnearanypossiblefaultlinesinthecrystallinerock49andavoidareaswithhistoricearthquakes.50Morerecently,OHreportedlypreventsuseoftheMountSimon(basalsandnearthebasement)ineasternOhio.51

• Asofearly2016,OKhadnotprohibitedthesitingofnewdisposalwellsintheArbuckleFormation,butnewwellsintothisformationcouldnolongerbeadministrativelyapproved.Applicationsrequire“fullcourtprocess”andapprovalgrantedbyamajorityvotebyCommissioners.Theresultingpermitislimitedtosixmonths,hasrequirementsforseismicitymonitoring,andthewellcanbeshut-inwithoutacourthearing.Inaddition,allexistingwellsfoundtobeincontactorcommunicationwiththecrystallinebasementrockwereorderedtobepluggedback.52

• TXhasadministrativeguidelinesthatindicatehowtheRailroadCommissionevaluatesinformationinthepermittingprocess.Currentguidelinesindicatethatawellpermitwillnotbeapprovediftherearefaults,fractures,structure,orothergeologicfactorsthatindicatethatisolationofthedisposalzoneisjeopardized.WhilethisprovisionisapparentlyintendedtopreventwaterqualitycontaminationofUSDWs,itcouldalsoservetoavoidsitingwellswhereslippageoffaultsmaytriggerearthquakes.53

49OhionotesthisnewwellsitingrestrictioninitsresponsetoinducedEarthquakesinYoungstown.SeeODNRDivisionofOilandGasResources,ClassIIDisposalWellReforms/YoungstownSeismicActivityQuestionsandAnswers(nodate)(YoungstownFAQs),availableat:http://oilandgas.ohiodnr.gov/portals/oilgas/pdf/YoungstownFAQ.pdf.

50DenialofaPermittoInjectBrineorOtherWasteSubstancespursuanttoOhioRevisedCode1509.22,OrderNo.2014-421,availableat:http://www.frackfreeamerica.org/uploads/1/2/4/0/12404661/2014_421_r.e._disposal_llc_denial_of_permit_to_inject.pdf

51GroundwaterProtectionCouncil,StateofOhioClassIIUICProgramPeerReview,January,2017(OHPeerReview),availableat:http://www.gwpc.org/sites/default/files/2017OhioClassIIPeerReviewFinal_0.pdf

52OKMediaAdvisory–RegionalEarthquakeResponsePlanforCentralOklahomaandExpansionoftheAreaofInterest,March7,2016(OKMediaAdvisory,3/7/16),availableat:http://www.occeweb.com/News/2016/03-07-16ADVISORY-AOI,%20VOLUME%20REDUCTION.pdf

53RailroadCommissionofTexas,Injection/DisposalWellPermitting,Testing,andMonitoringManual,ChapterIII–StandardsandProceduresforClassIIWells,availableat:https://www.rrc.state.tx.us/oil-gas/publications-and-notices/manuals/injectiondisposal-well-manual/chapter-iii/.Butsee,OilandGasDocketNo.08-0297874;ApplicationofPrimexxoperatingcorporation...foracommercialpermittodisposeofoilandgaswastebyinjectionintoaporousformationnotproductiveofoilorgas.;ProposalforDecision,2016(PrimexxPermitApplication,2016)(Examinersin2016approvedsitingofadisposalwellinanareaofrecent(2011and2015)seismicactivity,againsttheobjectionsofanadjacentlandownerwhofeareddegradationofhisfarm’swater.),availableat:https://www.rrc.texas.gov/media/34222/08-97874-r9p-pfd.pdf.SeeQ16discussionforfurtherdiscussionofthispermit.

18

3.WellConstructionandOperation(Q6–Q11)Beyondestablishingsitingrestrictions,alljurisdictionswithprimacyforClassIIwellsregulatebyspecifyingwellconstructionrequirements(seee.g.,casingandcementingatQ6),and/orrestrictingtheoperationofthewell(seee.g.,settingfluidvolumeorpressurelimitsatQ8).Thedatasetcapturesregulationsonfiveaspectsofwellconstructionandoperation:

• Casingandcementing;• Mechanicalintegritytesting;• Fluidinjectionprocesses,specificallyinjectionpressureandvolume;• Monitoring,recordkeeping,andreportingonoperations;and• Adaptivemanagementinresponsetoseismicity.

CasingandCementing(Q6)AlljurisdictionsrequirecasingandcementingofClassIIinjectionwells(seeQ6).ThiswellconstructiontechniqueisprimarilyintendedtokeepinjectedfluidsintheirintendeddisposalformationinordertoprotectthequalityofUSDWs.Mostjurisdictionshavecasing/cementingprovisionsforbothnewUICwellsandforconversionofexistingwellstoinjectionwells(AR,KS,OH,OK,54COandEPA).

MechanicalIntegrity(Q7)Similarly,alljurisdictionsrequiremechanicalintegritytesting(MIT)totesttheintegrityofthewellconstructionbothbeforeinjectionoperationsbeginandthroughoutthelifeoftheinjectionwell(seeQ7).Whilepoormechanicalintegritymaynotcauseaninducedseismicevent,routineMITscouldensurethatawellisnotexceedingitspermittedinjectionpressure.

• Alljurisdictionsrequirebothaninitialtest(afterwellcompletionasaninjectionwell,conversionofanexistingwelltoaninjectionwell,ortransferofownership)androutinetestingatleastonceevery5years.PArequiresreportingonmechanicalintegrityonanannualbasisandOKrequiresannualtestingorcontinuouspressuremonitoringonwellsinjectinggreaterthan20,000barrelsperday.

54OKistheonlyjurisdictionwenotedtohavedifferentcasingandcementingregulationsforannularinjectionwells,wherefluidsareinjectedbetweentheuppersurfacecasingsandthelowerinjectioncasings,usuallyatlowerpressuresandvolumes.SeeOkla.Admin.Code§165:10-3-4(c)(4)(ifoperatorintendstodisposeoffluidsbyannularinjection,operatorshallcomplywith165:10-5-13whichrequiressurfacecasingstringtobesetnotlessthan200ftbelowbaseoftreatablewater.)Annularinjectionwellsarenotlikelytocauseseismicity,butitisnotimpossible.Theyinjectabovethebedrock,andareusuallymuchmorestringentlycontrolledalthough,thereisamuchhigherchanceofcontaminatingdrinkingwaters.Differentjurisdictionsallowforinjectionpressuresrangingfromgravitytoregularinjectionwellpressure.Someonlyallowfortheinjectionoffluidsourcedfromthesamewellitisbeinginjectedinto.Alaska,ononeendofthespectrum,definesitas"incidentaltothedrillingofawell"andnotadisposaloperationinitself.Ohio,severelylimitsit.Seealso,JosephWilliFriedman,Fracking:FormulationofAppropriateStateRegulationofWasteDisposal,UniversityofMichigan:DepartmentofEarthandEnvironmentalSciences.27(2013),availableat:https://deepblue.lib.umich.edu/bitstream/handle/2027.42/97755/Friedmann_Joey_MS_2013.pdf?seq

19

• AR,CO,andOKspecifyMITsfollowingvariouswellmaintenanceoperationswhichinvolveresettingormovingthepackerortubing.COalsorequiresanMITaftercasingrepairsandTXrequiresoneaftereveryworkoverofthewell.

• AR,OK,PA,andEPAspecifyMITsfollowingproblemswiththewell,althoughnojurisdictiondefinesseismiceventsrelatedtothewellassucha“problem.”Identifiedproblemsinclude:

• AR–WhentheDirectorhasreasontobelieveadisposalwellisleakingorimproperlyconstructed;

• OK55–Whenameasurablepositivepressureisnotbeingmaintainedatthecasingvalve;

• PA–Whenthereareanysignsofequipmentdeterioration;and

• EPA–WhenthereisnotasufficientshowingbytheoperatorthatthereisnofluidmovementintoorbetweenUSDWs.

FluidInjectionProcesses(Q8)Inadditiontotheseessentialrequirementsforproperlyconstructingawellandverifyingitsintegrity,alljurisdictionsregulatethefluidinjectionprocess.Alljurisdictionshaverestrictionsoninjectionpressurebasedonfracturegradientoftheunderlyingrock,andafewaddressthevolumeorrateofinjection(seeQ8).

InjectionPressureRestrictionsoninjectionpressurevarybyjurisdiction:

• FederalprimacyregulationsprovidemaximumpressureformulasforCOandPA.EPA’srequirementofmaximuminjectionpressureisspecifictoprotectingUSDWs.It'sformulacreatesamaximuminjectionpressure,specifictoeachwell,toassurethatthepressureduringinjectiondoesnotinitiatenewfracturesorpropagateexistingfracturesintheconfiningzoneadjacenttotheUSDWs.TocomplywiththeSDWA,injectionpressuremaynotcausethemovementofinjectionorformationfluidsintoaUSDW.Inaddition,thefederalregulationapprovingCO’sprimacyregardingClassIIwellsincludescriteriaandaformulaforcalculatingthemaximuminjectionpressure,withthepurposeofkeepingthemaximumpressurebelowthefracturegradientoftheformation.

• ARprovidesformulaeforcalculatingthemaximuminjectionpressureforspecificareasofthestatebasedon90%ofamaximumfracturegradientwhichvariesbylocationandformation.

• COregulationsprovidethattheDirectorwillsetamaximuminjectionpressure.COwillgrantadefaultfracturegradientof0.6psi/ft,orallowanoperatortouseastep-ratetestto

552019revisionstoOKregulationsrequirethatawellwithamechanicalfailureordown-holeproblemmustbe“broughtintocompliancewithinninetydaysafterdiscoveryoftheproblem”.Okla.Admin.Code§165:10-5-7(f)(1)(C).

20

determineifthereisahigherfracturegradientthanthedefaultandapplyforahigherinjectionpressure.56ThemaximumpressureallowedisreportedintheapprovalsectionofForm33,CO’sInjectionWellPermitApplication.ForsimultaneousinjectionwellsinCO,thereisnospecificationforhowthemaximuminjectionpressurewillbedetermined,onlyarequirementthatthemaximumdischargepressurebecalculated.

• KSregulationsdonotprovideaformulaformaximumpressureatallinjectionwells,butKSspecifiesamaximuminjectionpressureoflessthanthefracturegradientforsimultaneousinjectionwells.InKS,aninjectionwellpermitapplicationmustincludetheestimatedmaximuminjectionpressure.Theconservationdivisionthenconsiders,amongotherfactors,maximumsurfacepressure,formationpressure,andpressureattheformationface.

• OHspecifiesaformulafordeterminingthemaximum,butwillalsoevaluateaformulaortestproposedbytheinjectionwellpermitapplicantandmayimplementgraduatedmaximumallowableinjectionpressurerequirements.OHregulationsrequireadditionalcontrolsoninjectionpressurebyrequiringanautomaticshut-offvalvetotriggerifthemaximumallowedisexceeded.

• OKwillnotpermitcommercialdisposalwellswhoseinjectionpressureevenapproachesthedemonstratedfracturegradientoftheinjectionzonesandthestatespecifiesamaximuminjectionpressureoflessthanthefracturegradientforsimultaneousinjectionwells.AnOKrulechangein2019specifiesthat“Themaximumpermittedsurfaceinjectionpressurewillbethepressurerequestedintheapplicationor0.5psiperfootofdepthtothetopoftheinjection/disposalinterval,whicheverisless,unlesstheresultsofafracturepressurestep-ratetestsupportahigherpressure.”57Aproposedrulechangein2019wouldeliminatethis0.5psiperfoot-provisionandallowtheUICDepartmenttorequestafracturepressurestep-ratetest.58

• TXdoesnothaveamaximumpressureformulae,butexistenceofmaximumlimitscanbeinferredfromstaterulesthatrequiretestingbasedonthemaximumpressureorreportingofthemaximumauthorizedpressure.TXalsocontrolsinjectionpressurethroughpermitting.TXhasadefaultmaximuminjectionpressureof0.5psiperfootofdepth,though

56 ColoradoOilandGasCommission,StepRate/InjectivityTestDocumentation,COGCCForm31AttachmentGuidance(2015),availableat:http://cogcc.state.co.us/documents/reg/forms/instructions/attachment_guidance/form_31/step%20rate-injectivity%20test%20documentation.pdf

57Okla.Admin.Code§165:10-5-5(b)(5).

58OK12-2-19DraftChapter10Amendments,at62.

21

anoperatorcanrequestanincreasedinjectionpressureifastep-ratetestshowsahigherpressurewillnotexceedthefracturegradientoftheformation.59

REJECTEDLEGISLATION/REGULATIONS:Incommentsona2014rulemaking60inTX,onecommenterrecommendedincludingintheruletherightoftheCommissiontoimplementgraduatedmaximumallowableinjectionpressure.

InjectionVolumeRegulatoryrestrictiononthevolumeoffluidinjectionismuchmorelimited.Noneofthejurisdictions’regulationsexplicitlylimitthetotalinjectionvolumefordisposalwells,nordotheyprovideaformulaformakingamaximumvolumedetermination(seeQ8).Nevertheless,allofthejurisdictionsconsidermaximumvolumeorinjectionrate(volumepertimeperiod)intheirpermitting.

• TheAROilandGasCommissionrequiresaproposeddailyinjectionrate(Form36).Additionally,thoughtheARDEQdoesnotregulatetheUICprogramforClassIIwells,itregulatesthesurfacefacilitiesforinjectionwellsandrequiresmaximumdailyinjectionvolumeinformationinitspermittingforthesurfacestructuresofaninjectionwell(NoticeofIntent,GeneralDischargePermit0000-WG-SW).

• WhileCOregulationsdonotspecifyamaximumvolume,itisdeterminedduringthepermittingprocessbasedonzone-thickness,reservoirheight,andporositywiththepurposeofconstrainingthelifeofthewell.61Porosityisacontributingfactortoinducedseismicityasitaffectstheamountoffluidneededtoincreasetheporepressureofarock,andhighpressurefluidinafaultzonecanreducethefrictionalstrengthofafaultandcauseslippage.62Thestaterequiresthatthemaximuminjectionratefornormaloperationsbereportedonthepermitapplication(Form31)andtheapprovalsectionoftheInjectionWellPermitApplication(Form33)specifiesamaximuminjectionvolumelimit.

• InKS,aninjectionwellpermitapplicationmustincludetheaveragedailyrateofinjectioninbarrelsperdayandregulationsimplythatamaximuminjectionrateisdeterminedbecause

59RailroadCommissionofTexas,Injection/DisposalWellTechnicalReview,InjectionPressureRequirements,availableat:https://www.rrc.state.tx.us/oil-gas/publications-and-notices/manuals/injectiondisposal-well-manual/summary-of-standards-and-procedures/technical-review/

60TXLegalCounselReview,2014

61COGCCUndergroundInjectionControlandSeismicityinColorado,January19,2011,availableat:http://cogcc.state.co.us/documents/library/Technical/Induced%20Seismicity/Underground%20Injection%20Control%20and%20Seismicity.pdf;

62TheNationalAcademyofSciences,InducedSeismicityPotentialinEnergyTechnologies:Chapter2,TypesandCauseofInducedSeismicity,48,availableat:https://www.nap.edu/read/13355/chapter/5#48

22

KSchargesafeeforchangingthemaximumrate.KShadnot,asofearly2017,eliminatedexisting,norprohibitednewwellsintheArbuckleFormation,buthasrestrictedinjectionvolumesforwellsandrestrictedsitingofnewhighvolumewellswithin¼mileofexistinghighvolumeinjectionwellsinordertorestrictthetotalvolumeinjectedinanarea.63

• OHdoesnotspecifyamaximumdisposalvolumeforallwells,butpermittingrequirements(thesizesoftheareaofreview)differforinjectionwellswithaveragedailyvolumesoflessthanandgreaterthantwohundredbarrelsperday.OHrequiresaproposeddailyaverageandmaximumvolumeforsaltwaterinjectionwells(Form210),butallowsonly10barrelsperdayincertainannulardisposalwells.FollowingseismicactivityconnectedtodisposalwellsintheYoungstown,OHarea,allOHdisposalwelloperatorsarerequiredtoinstallanelectronicrecordingsystemtoeffectivelytrackallfluidsbroughttothesite.64

• OKregulationsdonotspecifyamaximumvolumeorinjectionrate,butadjustotherpermittingoroperationalrequirementstovariousexpectedinjectionvolumes.See,forexample,wellpermittinginformation(Q4)andthicknessofgeologicstratarequiredinsitingdecisions(Q5).OKhasalsodeclaredbydirectiveseveraladhocinjectionvolumereductionsinordertoreducetheoccurrenceofseismicity(Q11).

• PArequiresaproposedmaximumandaveragedailyvolumeinthepermittingprocess.Thesecanbedeterminedbasedoneitherhistoricalinjectionvolumeintotherelevantgeologicformationortheinjectionrateusedtodeterminethefracturegradientoftheformation.65

• Intheirpermittingprocesses,TX(FormH1-A)andEPA(Form7520-B)requireoperatorstoproposeanaverageandmaximumdailyfluidvolumetobeinjected,thoughitisunclearwhetherapermitwouldbedeniedbasedonthisfactor.

63KansasCorporationCommission.ReportandRecommendation,ConservationDivision,RE:StaffRecommendationDocketNo.15-CONS-770-CMSC.33117,availableat:http://estar.kcc.ks.gov/estar/ViewFile.aspx/20170331164547.pdf?Id=cffb006f-cb05-4cbf-9a20-35db76d8ce46(limitedinjectionduetoearthquakeslinkedtodisposalintotheArbuckleFoundation;analysisoflargevolumewellswithin¼mileofnewlargevolumewellpermitapplications)

64YoungstownFAQs.

65PennsylvaniaDepartmentofEnvironmentalProtection,AssessmentoftheMechanicalIntegrity,fordrillinganewundergroundinjectionwell,byWindfallOil&GasInc.(2017),OperationData,availableat:http://files.dep.state.pa.us/RegionalResources/SWRO/SWROPortalFiles/Windfall%20Injection%20Well%20Permit%20Documents/Permit/FINAL%20Zelman%20Mechanical%20Integrity%20Review.pdf

23

REJECTEDLEGISLATION/RULES:In2018,twobillsbeforetheKSlegislature(HB264166andHB267267)proposedprohibitinginjectionofmorethan8,000barrelsofsaltwaterorotherfluidperdayintoanyClassIIinjectiondisposalwell.

Monitoring,RecordKeeping,andReporting(Q9–Q10)Allofthejurisdictionsrequiresometype(s)ofmonitoring,recordkeeping,andreportingtoverifytheircompliancewithpermitrequirementsandidentifypotentialproblems.Thesedatacanprovideagencieswithvaluableinformationformanaginginducedseismicity.Thetypesofprocessesoreventsmonitoredvariesamongthejurisdictions.

SeismicityMonitoringPerhapsmostpertinenttolimitingorrespondingtoinducedseismicityisthemonitoringofearthquakesduringinjection.Yetofallthejurisdictionsreviewed,onlyOHhasaspecificregulationonseismicitymonitoring(seeQ9).Someotherjurisdictionsadministrativelyrequireoperatorstomonitorforearthquakes;othersrequestvoluntaryseismicmonitoring.

OperatorSeismicityMonitoringOHmayrequireoperators,onacase-by-casebasis,topreparea“planformonitoringseismicactivity”nearwells,basedongeologyandproximityoftheinjectionzonetothePrecambriumbasementrock.68And,accordingtoGroundwaterProtectionCouncilpeerreviewers,OHcanalsorequireadditionalseismicmonitoringbasedontheirregulationauthorizinggeologicalinvestigationstoidentifypotentialfaulting.69

Thefollowingareexamplesofoperatorrequiredmonitoringnotspecifiedinregulation:

• ARhasrequiredanoperator,throughpermitconditions,toinstallaseismicmonitoringarrayandshareallacquireddatawiththeCommission.70

66HouseBillNo.2641(2018)(HB2641),availableat:http://kslegislature.org/li_2018/b2017_18/measures/documents/hb2641_00_0000.pdf

67HB2672.

68OhioAdmin.Code§1501:9-3-06(C)(3);seeGWPCISPrimer.

69OHPeerReview,at36(2017),citingOhioAdmin.Code§1501:9-3-06(C)(2)(regardinggeologicalinvestigationsofpotentialfaulting).

70Theresearchteamhasnotattemptedtodetermineifthisisananomalousrequirementorstandardpractice.See,ArkansasOilandGasCommission,OrderNo.63-2008-01,CommissionReviewofApplicant'sRequest(Feb.2008)(AROrder63-2008-01),availableat:http://www.aogc2.state.ar.us/Hearing%20Orders/2008/Feb/63-2008-01.pdf

24

• CO,throughtheuseofpermitconditions,requirestheinstallationofseismicmonitoringatproposedcommercialwellsandallwellsiteswhichplanoninjectingover10,000barrelsperday.

• OK,throughagencyaction,requiredproposedwellsthatdidnotrisetotheir“redlight”standards,butwerestillofconcern,tohaveseismometersonlocationinordertobepermitted.71

• PAcanrequireinjectionwelloperators,throughspecialpermitconditions,todevelopandimplementacomprehensiveseismicmonitoringprogram.Ifthegeologicreviewconductedoftheareauncoversseismicitypotential,theDepartmentofEnvironmentalProtection(PADEP)willimposeaseismicmonitoringprogramonoperatorsthroughspecialpermitconditions.Theplanrequirestheinstallationofseismicmonitoringequipment,andtheimmediatenotificationofallseismiceventsrecordedtobetterunderstandandmitigateallinducedevents.72

Federal/StateSeismicityMonitoringInadditiontotheminimaloperatorseismicmonitoring,allofthestateshaveagenciesthatconduct,toagreaterorlesserextent,state-wideortargetedseismicmonitoringfornaturalandinducedseismicity.

• ARhasasmallnetworkofninepermanentbroadbandseismicstationsstrategicallyplacedwithinselectedstateparksacrossArkansas.ThisArkansasSeismicNetwork(ASN)73wasestablishedtoachievebetterandmoreuniformearthquakedetectionoutsideoftheNewMadridseismiczone.Thenetwork,installedinspringof2010,isintegratedwiththeregionalandnationalseismicnetworks.ItisoperatedandmaintainedincooperationwiththeArkansasGeologicalSurvey,CenterforEarthquakeResearchandInformationattheUniversityofMemphisandArkansasStateParks.

• COhasaseismometernetwork,butreliesheavilyuponUSGSseismicobservationstosupplementoperatorseismicmonitoring74andto“activelymanage”injectionoperationsin

71SeeOKDirectiveAugust3,2015.http://www.occeweb.com/News/08-03-15VOLUME%20ADVISORY%20RELEASE.pdf

72See,e.g.,PennsylvaniaDepartmentofEnvironmentalProtection,SenecaResourcesCorporation,ClassIIDisposalWellSeismicMonitoringandMitigationPlan(Mar.2017)(SenecaMitigationPlan),availableat:http://files.dep.state.pa.us/OilGas/BOGM/BOGMPortalFiles/Underground%20Injection%20Wells/Seneca/Class%20II%20Disposal%20Well%20Seismic%20Monitoring%20Plan%20and%20Mitigation%20Plan.pdf

73ArkansasSeismicNetwork,ArkansasGeologicalSurvey,availableat:https://www.geology.arkansas.gov/geohazards/arkansas-seismic-network.html

74COGovernor’sTaskForce,2014.Seealso,ColoradoGeologicalSurvey,SeismometerNetworks,availableat:http://coloradogeologicalsurvey.org/geologic-hazards/earthquakes/seismometer-networks/

25

areasofthestate(RatonBasinandWeldCounty)thathaveexperiencedseismicitythoughttoberelatedtowastewaterinjection.75

• KS--TheKansasGeologicalSurvey(KGS)monitorsseismicactivitywithbothapermanent,regionalnetworkandtemporarymonitoringstationscurrentlyfocusedontheseismicallyactivesouth-centralareaofthestate.Networkinstallation,partofastateSeismicActionPlan,beganin2014,promptedbyescalationofearthquakeactivityin2013.TheKGScanrecommenddeployingportableseismicarraysintheareasofhighinterestdisposalwellsbasedonphysicalattributesofthewellsandinjectionwelldataprovidedbytheKansasCorporationCommission.

• MonitoringrequiredofinjectionwelloperatorsiscomplementedinOHbytheDivisionofGeologicalSurveyOhioSeismonitoringnetwork.76

• TheOKGeologicalSurveyoperatesaseismicmonitoringsystemthroughouttheseismicallyactiveregionsofthestate.77

• PAhasitsownseismicnetwork–nearlytripledinsizeto30stationsin2016–andalsousesdatafromnearbystatestoprovidefairlyevendatacoverageacrossPA.78

• TX–TheBureauofEconomicGeologyoperatestheTexNetseismicmonitoringprogramfocusedonlocatinganddeterminingtheoriginsofearthquakeswithinthestate.Theprogramofmonitoringandresearch,createdin2016andoperatedwithstatefunding,isalsosupportedbymultipleindustrysponsors.79

• EPAdoesnotmonitorforseismicityrelatedtoClassIIwells,buttheU.S.GeologicalSurveyoperatesanationalseismicmonitoringarrayandmaydeploytemporaryseismicstationstobetterunderstandearthquakesthatmaybeinducedbyhumanactivity,includingoilandgasdevelopment.80

75COGCC2017AnnualReport.

76OhioDepartmentofNaturalResourcesDivisionofGeologicalSurvey,OhioSeis:Ohio’searthquakemonitoringnetwork,availableat:http://geosurvey.ohiodnr.gov/earthquakes-ohioseis/ohioseis-home

77See,OklahomaGeologicalSurvey,SeismicMonitoringProgram,availableat:http://www.ou.edu/ogs/research/earthquakes/seismicstations

78ThePennsylvaniaStateSeismicNetwork,availableat:http://paseis.geosc.psu.edu/about.html

79BureauofEconomicGeology,TexNetSeismicMonitoringProgram,availableat:https://www.beg.utexas.edu/texnet-cisr/texnet;seealso2018BiennialReportonSeismicMonitoringandResearchinTexas,November28,2018,availableat:https://www.beg.utexas.edu/files/texnet/docs/TexNet_Biennial%20Report2018.pdf

80SeeInducedEarthquakes:ObservationalStudiesandrelatedwebpagesat:https://earthquake.usgs.gov/research/induced/studies.php

26

REJECTEDLEGISLATION/REGULATION:Incommentsona2014rulemakinginTX,81onecommentergenerallysuggestedreducingtheburdenonapplicantsandoperatorsofinjectionwellsregardinginformationtojustifyissuanceofapermitortobetterunderstandseismicityissuesand,instead,solicitfundingfromthelegislaturetofundstudies.Alternatively,anothercommenterrecommendedrequiringaseismicmonitoringplan,suchaspre-andpost-monitoringoftheregionforearthquakesandrequiringmonitoringbeforeinjectionandtestingandrecordingoforiginalbottomholeinjectionintervalpressure.Thiscommentersuggestedthatseismicmonitoringplansshouldassessinducedseismicityforexistingpermitsaswell.

OperationalParametersMonitoringAsidefrommonitoringseismicactivitynearinjectionwells,allofthejurisdictionsrequiremonitoring,recordkeeping,andreportingofvariousparametersrelatedtowelloperations(seeQ10).Alljurisdictionsrequiremonitoring/reportingoffluidvolumesorinjectionrate.Somestates(e.g.,ARandOK)havespecialrulesforseismicallyactiveareasorcommercialdisposalwells.

FluidVolumes• InAR,operatorsmustreport,onaquarterlybasis,maximummonthlyfluidvolumes(Form

14),whileoperatorswithinlandsassociatedwiththeGuy-GreenbrierEarthquakeSwarm,mustmeasureinjectionvolumeatleastdaily(Form14B).Commercialwellsarerequiredtofilemonthlyreportswithmaximumdailyinjectionrates,dailyvolumesinjected,andcumulativevolumesinjectedsincethecommencementofoperations(Form14A).

• InCO,operatorsmustreportvolumeofproducedwater(Form7)andotherClassIIfluids(Form14)injectedintothewellmonthly,within45daysoftheendofthemonth.COrulesspecifythemannerinwhichvolumesaremeasured,computedandreported.

• InKS,operatorsmustreportonayearlybasisthetotalvolumeoffluidinjected(FormU3C).

• InOH,saltwaterinjectionwelloperatorsmustmonitorinjectionvolumesonadailybasisandannuallyreportthetotalvolumeinjected(Form204).Annulardisposalwellsmustannuallyreportthetotalvolumeoffluidinjected(Form205).

• InOK,monitoringandreportingrequirementshaveevolvedduringtheperiodofincreasedseismicactivityassociatedwithwastewaterdisposal.SeveralchangeswereinstitutedforspecificareasthroughOKCorporationCommissiondirectivesfollowedbyformalrulemakings.Currently,operatorsofnon-commercialwellsmustmonitorinjectionrateandannuallyreporttotalfluidvolumeinjectedaswellasmonthlysubtotals(Form1012);commercialwellsreportsemi-annually(Form1012C).OperatorsofArbuckleformationdisposalwellsmustrecordthedailyfluidvolumeinjectedandreportitupontheCommission’srequest.IfrequestedbythePollutionAbatementDepartment,operatorsofwellswithinseismicityareasofinterestmustmonitorvolumesonadailybasisandreport

81TXLegalCounselReview,2014.

27

atleastweekly(Form1012D).Areasofinterest(AOI)inOKhavealsoevolvedandexpandedoverthelastseveralyears.AnAOIwasdefinedasa10kilometer(about122squaremiles)areasurroundinga4.0magnitudeearthquake,82andthenthecentermassofanearthquake“cluster”(August,2015).83Byearly2016,theareasofinterestincentralandwesternOKcoveredmorethan10,000squaremiles84andinMay,2018,15,000squaremiles.85AsofMarch,2016allwellsinAOIswererequestedbydirectivetomonitordailyandreportweekly.86

• OperatorsinPAmustsubmitacopyoftheEPAannualmonitoringreporttothePADEP.

• InTX,operatorsmustmonitorinjectionrateonamonthlybasis.Annually,operatorsmustreportthetotalvolumeofliquidand/orgasinjectedforeachmonth(FormH-10).

• EPAregulationsrequireobservationofflowrateandcumulativevolumeweeklyforfluiddisposal.Theseobservationsmustberecordedevery30days,thoughoperatorsareonlyrequiredtoreport,ataminimum,annuallytheaveragetotalvolumeinjected(Form7520-11).However,therearequarterlyreportingforms(7520-8)fortheminimum,maximum,andaverageinjectionrateforeachmonthandcumulativemonthlytotalvolumeinjected.

InjectionPressureAlljurisdictionsalsorequiremonitoring/reportingofinjectionpressure(seeQ10).

• ARoperatorsmustreportonaquarterlybasis87themaximumdailyinjectionpressurerequiredtoinjectwaterintotheformationeachmonth(Form14);commercialwells(Form14A)andwellssituatedinareasassociatedwiththeGuy-Greenbriarearthquakeswarm(Form14B)filemonthlyreportsofdailyrecorded,dailymaximumwellpressures.

• COrulesdonotspecifymeasuringandreportingofinjectionpressure,buttherequiredmonthlyreportingform(Form7)includessurfaceinjectionpressure(psig)fortubingand/orcasing.

82OKMediaAdvisory,3/25/15(changeexpectedtomorethandoublethenumberofdisposalwellsintheAOI).

83OKMediaAdvisory–OilandGasDisposalWellVolumeReductionPlan,August3,2015(OKMediaAdvisory,8/3/15).http://www.occeweb.com/News/08-03-15VOLUME%20ADVISORY%20RELEASE.pdf

84OKMediaAdvisory,3/7/16.

85OKMediaAdvisory–Medfordareaearthquake,May17,2019,availableat:http://www.occeweb.com/News/2019/05-17-19-Medford_EQ_Advisory.pdf

86OKMediaAdvisory,3/7/16.

87WhiletheregulationArk.CodeR.RULEH-3(n)indicatesquarterlyfiling,ARForm14isamonthlyformtobefilednolaterthanthe15thofthemonthfollowingthemonthcoveredinthereport.

28

• KSoperatorsmustannuallyreportthemonthlyaverageinjectionpressureandmaximuminjectionpressureofthatyear(FormU3C).

• OHsaltwaterinjectionwelloperatorsmustmonitorinjectionpressuresonadailybasis.Annually,operatorsmustreportthemaximuminjectionpressureandaveragedailyinjectionpressure(Form204).

• OKhasregulationsforboth“required”and“requested”monitoringparameters.Alldisposalwelloperatorsmustmonitorsurfaceinjectionpressureandannuallyreporttheirmonthlydataondailyaveragepressurerates(Form1012);commercialwellsreportsemi-annually(Form1012C).OperatorsofcommercialsaltwaterdisposalwellsandoperatorsofArbuckleformationdisposalwellsmustrecordthedailycasingtubingannuluspressureandsurfaceinjectionpressureandreportthemupontheCommission’srequest.IfrequestedbythePollutionAbatementDepartment,operatorsofwellswithinseismicityareasofinterestmustmonitorpressuresonadailybasisandreportatleastweekly(Form1012D)andsupplytheDepartmentwithbottomholepressuredata.88Further,operatorswith"yellowlight"permitsintheCommission’strafficlightsystemarerequiredtoshutdownwellsevery60daysforbottomholepressurereadings.89

• OperatorsinPAmustsubmitacopyoftheEPAannualmonitoringreporttothePADEP.

• TXoperatorsmustmonitorinjectionpressureonamonthlybasis.Annually,operatorsmustreporttheaverageandmaximumpressures(FormH-10).

• EPAregulationsrequireoperatorstoobserveinjectionpressureandrecordtheaverageinjectionpressuremonthly.EPA’sQuarterlyInjectionMonitoringReport(Form7520-8)requiresoperatorstoreporttheminimum,maximum,andaverageinjectionpressurethatoccurredeachmonthduringthequarter.Operatorsareonlyrequiredtoreportannuallytheaverageinjectionpressureandhavetheoptiontoreporttheminimumandmaximumpressuresfromeachmonth(Form7520-11).Injectionpressuremustbeobservedweeklyforfluiddisposalwells.Theseobservationsmustberecordedevery30days.

88Seealso,OKMediaAdvisory,3/7/16(Alloperatorswererequestedinadirectivetodoso).

89OKMediaAdvisory,8/3/15(includingotherconditionsforproposedwellsnotmeeting“redlight”(stop)standards,butstillofconcern).ThetrafficlightsystemhasevolvedinOK,butin2015,yellowlightpermittingincludedspecialpermittingforanywellproposedwithinthreemilesofastressedfault,evenintheabsenceofseismicityandforanywellproposedwithinsixmilesofanearthquakeswarmormagnitude4.0event.

SeealsoOK12-2-19DraftChapter10Amendments,at73(Aproposedrulechangein2019wouldadd“requestedmonitoring”requirementsforareasofinterestdesignatedfor“potentialenvironmentalorpublicsafetyimpacts”andchangetherepositoryofthesedatatotheManageroftheInducedSeismicityDepartment).

29

WaterQualityWhilethequalityofinjectedwastewaterhasnotbeenandisnotlikelytobeimplicatedininducingseismicity,understandingthesourceand/orqualityofwastewatermaybeusefulinfindingdisposalorreusealternativesifundergroundinjectionneedstobeseverelycurtailed.OnlyCO,KS,PA,andEPAspecificallyrequirereportingonthequalityortypeofinjectedfluids(seeQ10).

• COrequiresinformationonthetypeofnon-producedwaterwastesreceivedfromtransporters(e.g.,groundwaterrecoveredduringaremediationproject).

• KSrequiresreportingonthekindoffluidinjectedandconsidersitwhenmakingpermittingdecisions.

• PAandEPArequiremonitoringthenatureofinjectedfluidsandreportinganymajorchangesincharacteristicsorsources.

• ARandOKregulationsonlyrequireinformationonthegeneratororsourceofinjectionfluidsforcommercialdisposalwells(ARForm14AandOKForm1012C).Fornon-commercialwells,OKoperatorsmustsubmitayearlyreportonthetypeoffluidinjectedandthesourceofallfreshwaterfluids(OKForm1012).

• OHoperatorsdonothavetoreportthequalityortypeoffluid,butregulatorshavetheauthoritytosampleinjectionfluidsatanytimeduringinjectionoperations.

• OnlyTXlacksregulationsregardingthequalityortypeoffluidinjected,thoughFormH-10requiresreportingofallfluidtypesinjectedduringthereportingcycle.

OtherParametersOtherrequirementsforreportingrelatedtoinjection(SeeQ10)include:

• Identifyingtheinjectioninterval(AR;TXonFormH-5),mechanicalfailures(OH;OK),anysignificantpressurechange(TX),andaccidents(PA).TheseandotherstatesmayrequiresimilarinformationonUICpermitoroperationformsor,moregenerally,relatedtooperationofallwells.

• KShasthepotentialtohavethemostcomprehensivereportingrequirementspecifyingthatoperatorsmustreport“anyotherperformanceinformationthatmayberequiredbytheconservationdivision,”althoughthereportneednotbefileduntilMarchofthefollowingyear.

Theabilityofanagencytoreceiveinjectiondatainatimelymannerisimportanttoeffectivemanagementofinducedseismicity.Requirementsfordatacompilationandreportingvaryfromdaily-to-annualcompilationandmonthly-to-annualreporting.Somestates(e.g.,ARandOK)havespecialrulesforseismicallyactiveareasorcommercialdisposalwells,e.g.,OKcanrequirereporting‘on-demand’fordatafromArbuckleformationdisposalwells.

30

REJECTEDLEGISLATION/REGULATIONS:Acommenteronthe2014rulemakinginTX90recommendedthattheCommissionreviseTXrulestorequiremonthlyreportingofinjectionvolumesandpressuresalongwithmaintainingdailyinjectionvolumesandpressuresthatmayberequestedatanytime.

AdaptiveManagement(Q11)Alljurisdictionshaveauthoritytorequirecorrectiveactionundercertaincircumstances(seeQ11).Theseactionsincludemodifyingorpreventinginjectionoperations.Atleastfourstateshaverespondedtoinducedseismicitybyshuttinginwellsoratleasttemporarilyreducingfluidinjectionvolumes(CO,KS,OH,andOK).Atleastonestate,OH,hasrequiredoperatorstomodifyinjectionpressuresinresponsetosuspectedinducedseismicity.Theauthoritytotakethesecorrectiveactionsiscrucialfortimelyresponsetoinducedevents.Theregulatorylanguageallowingforcorrectiveactionsvariesbyjurisdictionwithsomeactionsexplicitlyauthorizedandothersmadepossiblebygeneralauthority.

ProhibitInjection–Shut-inWellsAlljurisdictionsexceptTXspecificallyallowtheregulatoryagencytoprohibitinjection(e.g.,suspendoperations,shut-inthewell),butevenTXcaneffectivelyshut-inawellbyrevokingtheoperatingpermit(seebelow).AlthoughonlyOKcanspecificallyshut-inawellduetoseismicity,allotherjurisdictionshaveagencydiscretionwhenthereispotentialharmtothepublicoranemergencysituationexists.Regulatoryrationalesforprohibitinginjection,include:

• AR–Ifawellisleaking,ifthereisanyfluidmigrationintoUSDWs,orifthereisimminentdangertothehealthorsafetyofthepublic.

• CO–Ifthewelllacksmechanicalintegrityor,if,byviolatingarule,order,orpermitrequirement,awelloperatorcreatesanemergencysituation.

• KS–Ifthereisafailureinmechanicalintegrity,andifawelloperatorviolatesanyprovisions,rules,orregulationsandshut-inisnecessarytopreventpollutionandprotectwaterquality.Also,ifdamagemayresultifimmediateremedialactionisnottaken,anemergencyadjudicativeproceedingcanauthorizeshut-in.

• OH–Ifanoperator'sfailuretocomplywithanordercreatesanimminentdangertohealthorsafetyofthepublicorislikelytoresultinimmediateandsubstantialdamagetothenaturalresourcesofthestate.Additionally,awellcanbeshut-iniftherearemechanicalfailuresthatreasonablycouldoractuallyhavecausedthecontaminationofland,surfacewaters,orsubsurfacewaters.

• OK–Asamendedin2017,OKregulationsspecifythattheConservationDivisionmay“shutdownortakeotheractionincludingtheissuanceorexecutionofadministrativeagreements,


31

...toaddressmattersincluding,butnotlimitedtoseismicactivity....”91ThefirstArbuckledisposalwellwasshut-induetoearthquakeconcernsinSeptember,2013.AsofMarch,2016,whenOKlawonCorporationCommissionauthoritywasamended,therewere27.92

• PA–Ifthewelloperatorisengaginginunlawfulconductorconductthatcausesimmediateandirreparableharmtothepublic.

• EPAcanprohibitinjectionifapermitorinventoryinformationwasnotsubmittedtimely,orifawelloperatorfailstocomplywitharequestforinformationordoesnotprovidefinancialassuranceinformation,orifthewelllacksmechanicalintegrity.

RevokePermitAlljurisdictionsexceptOKexplicitlyprovideforrevokingapermit,althoughTXistheonlystatethatexplicitlyallowsforrevokingapermitifawelliscontributingtoseismicactivity.

• ARcanrevokeapermitiftheholderfailstomeetpermitconditions,thepermitwasissuedinerror,ortheholderfalsifiedorotherwisemisstatedanymaterialinformationintheapplicationform.In2019,ARamendeditsregulationstoexplicitlystatethattheagencycouldrevokeaUICWellpermitforfailuretocomplywiththeagency’soperatingrequirementsforcommercialandnon-commercialinjectionwells.Additionally,theARDEQcanrevokeasurfacefacilitiespermitforClassIIwellsiftheydeterminethattheactivityendangershumanhealthortheenvironment.932019ARregulationsspecifythat

91Okla.Admin.Code§165:10-5-7(g)(1).Administrativeshutdownorotheractionregardingawell.Thisregulatoryadditionfollowedastatutorychangein2016:Okla.Stat§17-52(D)CorporationCommission-Jurisdiction,powerandauthority-EnvironmentalJurisdictionofDepartmentofEnvironmentalQuality,effective41816(Ifawellcreatesanemergencysituationthathas“potentiallycriticalenvironmentalorpublicsafetyimpact...theCommissionmaytakewhateveractionisnecessary,withoutnoticeandhearing,includingwithoutlimitationtheissuanceorexecutionofadministrativeagreementsbytheOilandGasConservationDivisionoftheCorporationCommission,topromptlyrespondtotheemergency.”).

92Gov.MaryFallin,PressRelease-Gov.FallinSaysUSGSEarthquakeHazardMapShowsStateRegulatorsAreTakingCorrectAction(March28,2016),availableat:http://services.ok.gov/triton/modules/newsroom/newsroom_article.php?id=223&article_id=19739(Therearecurrently[asofMarch2016]27ArbuckledisposalwellsshutinasaresultofOGCDactions.)Seealso,Mack,J.,AHandy,J.Barrett,andK.Jones.2016.OilandGasIndustryMayFaceIncreasedRegulatory,Transactional,andLitigationRisks.Oil&GasJournal13(7),availableat:http://www.ogfj.com/articles/print/volume-13/issue-7/features/seismicity-triggering-more-regulation.html(“Untilnow[2016],companiescouldsuccessfullyresisttheOCC'sdirectivessincethetrafficlightsystemwasnotapartofthestate'sofficialregulations.Inresponse,HouseBill3158wasdraftedtoclarifytheOCC'sauthorityto"takewhateveractionnecessarywithoutnoticeandhearing"torespondtoemergencysituations.HB3158receivedunanimoussupportinbothchambersoftheOklahomaStateLegislature,anditwassignedintolawbyGovernorMaryFallinonApril18,2016.”).

93SeeA.C.A.§8-4-101,etseq;Seealso,AuthorizationToConstructAndOperateTheSurfaceAssociatedWithADisposalSystemForSubsurfaceInjectionOfSaltWaterAndOtherOilFieldWastesUnderThe

32

theARDEQhasjurisdictionoversurfacefacilitiesofbothcommercialClassIIwellsandhighvolume,non-commercialdisposalwells.

• InCO,theCommissionmayrevokeapermitiftheholderfailstoperformanyrequiredcorrectiveaction/abatementorfailstocomplywithaceaseanddesistorderwithregardtoviolationofapermitprovision.

• KScanrevokeapermitforjustcauseafterahearing.

• InOH,thechiefcanrevokeanunusedpermitbyorderiftheownerofawellhasfailedtocomplywithanorderoriscausing,engagingin,ormaintainingaconditionoractivitythatisanimminentdangertohealthorsafetyofthepublicordamagetothestate'snaturalresources.

• PAcanrevokeapermitiftheholderviolatestheCleanStreamsLaw,theSolidWasteManagementAct,anyotherstatuteadministeredbythedepartmentofoilandgasandtheresultofsuchaviolationisunsafeoperationorenvironmentaldamage.

• TXcanrevokeapermitifinjectionislikelytobecontributingtoseismicactivityandforseveralotherspecifiedreasons.94

• EPAcanrevokeapermitfornoncompliancebythepermitteewithanyconditionofthepermit,forfailuretodiscloseallrelevantfacts/misrepresentationofanyrelevantfactsintheapplicationorduringthepermitissuanceprocess,orifadeterminationfindsthatthepermittedactivityendangershumanhealthortheenvironmentandcanonlyberegulatedtoacceptablelevelsbyterminationofthepermit.

ModifyPermitsStateandfederalregulationsdonotexplicitlystatethattheagencycanreduceinjectionpressure,injectionrate,orvolumeoffluids,butCO,TXandEPAcaneffectivelydosowiththemoregeneralauthoritytomodifypermitterms.Thejustificationnecessaryformodifyingapermitvariesamongthesejurisdictions,but,arguably,allthejustificationscouldbeusedtoreduceinjectionpressure,ratesorvolumes.Otherstateshavereducedeithervolumeorinjectionpressurewithadministrativeactions.

• COcanmodifyapermitiftheoperatorfailstotakecorrectiveactionorabateaproblemorcomplywithaceaseanddesistorderregardingapermitviolation,oriffailuretotakerequiredactionresultsinanemergencysituation.COusesatrafficlightsystemasaguide

ProvisionsOfTheArkansasWaterAndAirPollutionControlAct.SectionB,StandardPermitConditions,at17,availableat:https://www.adeq.state.ar.us/water/permits/nodischarge/pdfs/sw/0000-wg-sw.pdf

94Otherreasonsinclude:thereisamaterialchangetotheconditionsofoperationorcompletionofadisposalwell,thereisalikelihoodthatfreshwaterwillbepolluted,anysubstantialviolationsofthepermit,thepermitholderhasmisrepresentedmaterialfactsinobtainingthepermit,ifinjectedfluidsareescapingthedisposalzone,orthereiswasteofnaturalresources.

33

inmanagingseismicityatinjectionwells,whichrecommendsatleastmodificationofoperationsifaML2.5earthquakeisfeltnearthewellsite.95Ifanoperatorfailstomodifyoperationsaftersuchanevent,COcouldviewthisasapermitviolation.

• TXcanmodify(orsuspendorterminate)apermitforjustcauseandafternoticeandopportunityforahearingforvariousreasons,including,asof2014,thatinjectionis“likelytobeordeterminedtobecontributingtoseismicactivity.”96

• EPAmaymodifypermitsforvariousreasonsincludingobtaininginformationthatwouldhavejustifiedadifferentpermitconditionatthetimeofpermitissuance.

ModifyOperationsOtherstatesuseadministrativeauthoritywithoutexplicitlychangingpermitterms:

• WhileARdoesnothaveexplicitregulatoryauthoritytomodifypermits,ithasassertedthisauthorityonacase-by-casebasisasaUICwellpermitcondition.97

• Whilea“changeinpermit”wasnotexplicitlyaddressed,in2017,theCourtofCommonPleas,FranklinCounty,OH,adoptedaplanoftheDivisionofOilandGasResourcesManagementtoallowtheAWMS#2welltoresumeoperationsofitsinjectionwell.Theplanincludedascheduleforstartingwithreducedinjectionpressureandvolumeandincreasingbothpressureandvolumedependentonresultsofseismicitymonitoring.98

95COGovernor’sTaskForce,2014.

96See16Tex.Admin.Code§3.46(d)(1)(F);RailroadCommissionofTexas,RailroadCommissionAdoptsDisposalWellRuleAmendmentsToday,10/28/2014(TXDisposalRuleAmendments,2014)(Ruleamendmentin2014clarifies“Commission’sstaffauthoritytomodifyorsuspendorterminateadisposalwellpermit,includingmodifyingdisposalvolumesandpressuresorshuttinginawell,ifscientificdataindicatesadisposalwellislikelytobeordeterminedtobecontributingtoseismicactivity),availableat:https://rrc.texas.gov/all-news/102814b/

97AROrder63-2008-01(“ThattheDirectorshallissueapermit...subjecttothefollowingconditions:...b.ThattheDirectorshallhaveongoingauthoritytoamend,revoke,orotherwisemodifyanyaspectoftheinjectionpermitasdeemednecessary...”)98See,AmericanWaterManagementServices,LLCv.DivisionofOilandGasResourcesManagement,PM-16CV006218OD423-R87,availableat:https://vindy.media.clients.ellingtoncms.com/news/documents/2017/01/25/16-CV-006218.pdf

34

REJECTEDLEGISLATION/REGULATIONS:InconsideringtheTXCommission’sauthoritytomodifypermitterms,theoriginallanguageoftheproposed2014rulegavetheCommissionauthoritytomodifythepermit"ifinjectionissuspectedoforshowntobecausingseismicactivity"99(emphasisadded).Twocommentersrecommendedrequiringthatinjectionshouldbe“demonstratedbyreliablescientificandengineeringdata”tobecausingseismicactivitybeforeapermitismodified,suspendedorterminatedforseismicactivity.

BroadAuthorityBesidesauthorizationtotakespecificactions,somejurisdictionshavebroadauthoritytotakecorrectiveactionseitherinanemergencyorwhennecessarytoprotectthepublicortheenvironment.Forexample,KSandOKagenciescantake“otheractions”incertainemergencysituations.

• TheKScodeprovidesthatthecommission,onthebasisofemergencyadjudicativeproceedings,“mayauthorizeitsagentstoenteruponthelandwherethewellislocatedandtakesuchremedialactionnecessary....”ifdamagemayresultifimmediateremedialactionisnottaken.100

• Inadditiontoshutting-inwells,OKregulationsspecifythattheConservationDivisionmay“...takeotheractionincludingtheissuanceorexecutionofadministrativeagreements,...toaddressmattersincluding,butnotlimitedtoseismicactivity....”101Bothbeforeandafterthisregulationwasformalized,OKhasrequired,bydirective,thepluggingbackofwellstoabovebasementrockandmanyinjectionvolumereductions,rangingfromsignificantpercentagereductionsbymultiplewells102toa70percentreductionbyanindividualwell.103

• PAcancreateamandatorypreliminaryinjunctionifitfindsthatawelloperatorisengagingin"conductcausingimmediateandirreparableharmtothepublic."PAalsousesatrafficlightsystemtomitigateinducedseismicityfrominjectionwells.Inoneexamplemitigationplan,ifawellinared-lightarearecordsamagnitude2orgreaterearthquakewithin2miles

99TXLegalCounselReview,2014),at2.

100Kan. Stat. § 55-162 (b). Finding reasonable cause to believe that person has violated act or rules and regulations; hearing; procedure; order; immediate remedial action; reconsideration and judicial review; investigations; sealing of well; removal of seal, penalty.

101Okla.Admin.Code§165:10-5-7(g)(1).Administrativeshutdownorotheractionregardingawell).

102SeeOKDirectivesandMediaAdvisories2015-2019,availableinOCCNewsat:http://www.occeweb.com/News/news.htm.Forexample,OKMediaAdvisory,3/25/15(Over300wells,overone-thirdofwellsintheArbuckleformation,mustbepluggedbacktoshallowerdepthorreduceinjectionvolumesby50%).

103SeeOKDirective,April9,2018–DirectivefordisposalwellinCovingtonareatoreducevolumeby70percent;availableat:http://www.occeweb.com/News/2018/04-09-18ADVISORY.pdf

35

ofthewell,PADEPwillorderinjectionoperationstoceaseuntilitauthorizesinjection.Inayellow-lightarea,PADEPwillordertheinjectionratetobereducedby50%untilotherwiseauthorizedwheneverthreeormoreconsecutiveseismiceventsbetweenmagnitude1and2arefeltwithin2milesandwithina7-dayperiod.104

• InTX,thecommissionneedonlyfindthatanemergencyexiststocreateanorderwithoutnoticeorhearingtoprotectpublichealth,safety,orwelfareinthecaseofanemergency,thoughthatemergencyordercanonlyremaininforcefor15daysfromitseffectivedate.

• EPAregulationsrequirestateprograms(authorizedunderSDWA§1422)tohavespecificremedies,includingrestrainingunauthorizedactivity“endangeringorcausingdamagetopublichealthorenvironment.”ButnoneofthestatesinthissurveywereawardedClassIIwellprimacyunderSDWA§1422.

4.PublicParticipation,FinancialAssurances,Fees,andLiability(Q12-Q16)Mostofthelawdiscussedintheprevioussectionsaddressesthepotentialhazardsofinducedseismicity.Thelawdiscussedinthisfinalsectionismoreapplicabletoamelioratingoratleastredirectingrisk.Thedatasetpresentsfourtypesofregulationsthatcouldengagethepublicinhelpingtomanagewastewaterinjectionorhelptoensurethattheindustryinternalizesmoreofthecostsofinducedseismicity:

• Q12comparesregulationsthatrequiregivingnotice,seekingpubliccomments,orofferingpublichearingsoninjectionwellpermitsandoperationofwells;

• Q13addressesthetypesandamountsoffinancialassurancesthatoperatorsarerequiredtoposttopermitandoperateadisposalwell;

• Q14reportsadministrativefeeschargedbythejurisdictionseitherforpermittingorannualoperationsofdisposalwells;and

• Q15andQ16addressthemannerinwhichjurisdictionsaddressliabilityissuesrelatedtoinjectionwells.

PublicParticipation(Q12)Requirementsforpublicparticipation,includingprovidingthepublicwithnotice,opportunitytocommentonorprotestaproposedpermissionoraction,oropportunitytoobserveorparticipateinadministrativehearingscanoccurbothduringaninjectionwellpermittingprocessorwhileapermittedwellisoperating.105Requirementsforprovidingpublicparticipationopportunitiescanapplytoeitherthemanagementagencyitselfortopermitapplicants/welloperators.

104 See,e.g.,SenecaMitigationPlan.

105Thedatasetisfocusedonoperationoftheinjectioncontrolprogramratherthanstates’acquisitionofprimacy.Thusthedatasetdoesnotaddressnotice/comments/hearingsrelatedtoastate’soriginalapplicationforandassumptionofthepermitprogram(primacy),nordoesitaddressmakingchangestothose

36

PermittingAlthoughnoneofthejurisdictionshavepublicnotice/comment/hearingregulatoryrequirementsspecifictoseismicevents,alljurisdictionsrequirepublicnoticeandopportunitiesforpublichearingsregardingpermitapplicationsforClassIIwellsandallbutARhaveadditionalregulationsregardingpubliccommentsorprotests(seeQ12).Noticeisgenerallybypublicationinanewspaperandbymailtospecificindividuals,suchassurfaceownersoridentifiedbytermssuchas“affected”or“interested”individuals.

• EPArequirespublicnoticeorhearings,allowingforatleast30daysofpubliccomment,toanyindividualwhohasrequestedbywritingtobeonthenotificationlist.Anyindividualcancommentondraftpermits.

• ARregulationsrequirenoticeinalocalnewspaperduringthepermittingprocess.Additionally,therearestrictnoticeandhearingrequirementsforanyproposedwellwithinareaslikelytocontainfaultsornearaMoratoriumZone.

• COregulationsrequirenoticeofwellpermitapplicationstobepostedinaDenvercountynewspaperandinanycountywheretheaffectedlandissituated.Additionalnoticeisrequiredtoallsurfaceownerswithinone-quartermileofthewell,andwellownersproducingfromtheinjectionzonewithinone-halfmileofthewell.InCO,thepubliccansearchbycountyforpendingUICwellpermits.106

• OHregulationsrequirenoticetopermitanewwellwithinanurbanizedareatoalllandownerswithin500feetandtotheexecutiveauthorityofthetownship.TheOhioOilandGasDivisionisresponsibleforpublishingnoticeofpermitapplicationsinanewspaperofgeneralcirculationinthecountyoftheaffectedlandaswellasindividuallynotifyingallownersoroperatorsofwellsproducingfromthesameformationastheinjectionwellandwithintheareaofreview.

• InOK,therecipientsofnoticefordisposalwellpermitscurrentlyvarieswiththetypeofwell.Noticetothesurfaceowneroftheproposedinjectionwellsiteisrequired.Further,operatorsmustpublishnoticeofproposedinjectionwellprojectsinlocalnewspapersaspartofthepermitapplication.107Forcommercialdisposalwells,noticeisbroadenedtosurfaceownersandlesseesoflandadjacentandcontiguoustothewellsite.2019proposedrulechangeswouldeliminatenoticetolessees,butexpandnoticetoallsurfaceowners

state-operatedpermitprogramsdespitethefactthatadvocatingforchangestoaprogrammightpromotechangesthatreducethehazardsorriskofinducedseismicity.

106ColoradoOilandGasConservationCommission,UndergroundInjectionUIC)PermitsSearch,availableat:https://cogcc.state.co.us/permits3.html#/UIC

107EmeryGullicksonRichards,FindingFault:InducedEarthquakeLiabilityandRegulation,ColumbiaJournalofEnvironmentalLaw,24(2015)(FindingFault),availableat:http://www.oilandgasbmps.org/docs/GEN442_InducedEarthquakeLiabilityandRegulation.pdf

37

withinonemileoftheproposedwellforbothcommercialandnon-commercialwells.108Noticetooilandgaswelloperatorsisalsorequiredforwellsbasedondisposalvolumesandtypesofwellsand2019proposedchangeswouldalsoexpandtheserequirements.

Further,asmentionedregardingcitingofinjectionwellsintheArbuckleFormation(seeQ5),suchwellscannotbeadministrativelyapprovedandwellsinOK’sAOIareasmusthaveapublicreview.109

• PAregulationsrequirenotificationofwellpermitapplicationstosurfaceownersandwaterpurveyorswithin1000feetofaverticalwellbore.Andapermitmaybedeniedifthereare“unresolvedobjections”tothewelllocation,butonlyifthoseobjectionsarebyacoalmineowneroroperator.Asurfaceownercanobjecttoaproposedwelllocation,butonlybasedonspecificenvironmentaland“publicresource”considerations.Inamoregeneralstatementaboutparticipation,PAregulationsprovidethat“anypersonhavingadirectinterest”inarelevantmattercanrequestaconferencewiththedepartmentandnoticewillbegiventoallinterestedparties.

• TXregulationsrequirenoticetobedeliveredtoall"affectedpersons"forcommercialwells,includingsurfacetractownerswhoselandabutstheaffectedlandandinanewspaperintheaffectedarea.

OperationsInmostjurisdictions,publicnoticeandopportunitytocommentandaccesstoapublichearingorconferencearealsoavailableoncetheagencyhasgrantedaUICpermit,butitismorelimitedthanthepublicparticipationopportunitiesduringthepermittingprocess.Inthreejurisdictions(EPA,OK,andTX)therequirednoticeduringoperationsislimitedtoissuesnotlikelytoincludeinducedseismicity;inthreeothers(CO,KS,andPA)noticemustbeprovidedregardingordersthatcouldbeissuedduringoperationsandrelatetoprocessesthatcouldaffectseismicitypotential.110

• EPAregulationsonpublicparticipationregardingwelloperationsarespecifictoaquiferexemptions;inOKtheyarerelatedtopollutioncomplaints;andinTXtheyarespecifictowellplugging.

108OK12-2-19DraftChapter10Amendments,at62.

109OKMediaAdvisory,8/3/15(Thoseproposedwellsthatdonotmeet“redlight”(stop)standardsbutarestillofconcern...Musthavepublicreview).

110Forexample,COhasissuedordersinregardstoviolationsofmaximuminjectionpressure,whichoccurredduringtheoperationofwells.SeeCOGCC,ORDERNO.1V-329(2008),availableat:https://cogcc.state.co.us/orders/orders/1v/329.html

38

• AR–Whilenotexplicitinregulations,ARhascitedtoitspermittingregulations(RuleH-1)forrequiringahearingpriortoapprovingapermitamendment(increasingdisposalvolumeand/orpressure)whentherequestedamendmentissubjecttoobjections.111

• COrequiresnoticeofallorderstobegiventotheaffectedpartyandtobepublishedinaDenvercountynewspaper,andanewspapersituatedinthecountywheretheaffectedlandissituated.Additionally,anyinterestedpartymayfilearequesttoreceivenoticeforuptothreeyearswhenanypetitionisfileduponwhichahearingmaybeheld.

• KSrequiresoperatorstopostnoticetothelandowneronwhoselandthesubjectwellislocated,and,ifwithinone-halfmileofthewell,tootheroperators,ownersofunleasedacreage,andtheownerofthemineralestate.OperatorsmustpublishpublicnoticeintheofficialcountrynewspaperiftheyapplytochangetheirpermitpertheinstructionsforFormU-8.Ifaninterestedpartyproteststheapplication,thenahearingmustbeheld.

• PAhastheoptiontopubliclypublishnoticeofanorderinanewspaperincirculationinHarrisburgandinthecountywheretheaffectedlandissituated,butcanalsogivenoticebypersonalservicetotheoperator,orbyU.S.mailtotheoperatororroyaltyowneraffected.

Whilepublicnoticeinanewspapermaynotbereadbymany,itmaybethemosteffectivemethodinoperationinthesestates.AndithasledtosuccessfulprotestsbyarearesidentsinOKatleastonce.112Noticetoindividualswithinashortdistanceofaninjectionwellisnotlikelytoinformtheentireat-riskpopulationbecauseearthquakescanbefeltseveralmilesfromaproblematicinjectionwell.Anotificationsystemthatallowsinterestedpartiestosignupwithanagencytoreceiveelectronicnoticemightbethemosteffectiveifitwereappliedbroadlytooperatorreportsandagencyorders.

111REQUESTFORANORDERAPPROVINGANAMENDEDCLASSIICOMMERCIALDISPOSALWELLPERMIT;ORDERNO.035-2-2012-01(citingGeneralRuleH-1asrequiringahearing),availableat:http://www.aogc2.state.ar.us/Hearing%20Orders/2012/February/035-2-2012-02.pdf

112FindingFault,at24,citingBarryPorterfield,It’saWrapforDisposalWellIssue,PAULSVALLEYDEMOCRAT(Sept.6,2012,9:30AM)http://www.paulsvalleydailydemocrat.com/news/local_news/it-s-a-wrap-for-disposal-well-issue/article_e396bdc9-c178-5a23-8c47-c9611da8a34a.html(residentsfirsthearofwellpermitapplicationinlegalnotice).

39

REJECTEDLEGISLATION/RULES:In2018,abillbeforetheKSlegislature(HB2672113)wouldhavetaskedthecorporationcommissionwithprovidingthenamedsurfaceowner,alllandownerswithinonemile,andlocalgovernmentswithin15milesoftheproposedwellthepermitapplicationandinformationonthehearingprocessandotherpublicparticipationoptions.ThechangewouldhavetaskedthecommissionwithprovidingadatarepositoryonClassIIdisposalwellsontheirwebsite(see§1(e)).Thebillproposedcreationofacitizens’injectionwellboardto“protecttheinterestsofKansascitizens,businesses,counties,citiesandtownshipsinanyproceedingsbeforethestatecorporationcommissionconcerningclassIIinjectiondisposalwells.”Ifpassed,theboardwouldhavebeenabletoemployaconsumercounselwhocouldinitiateactions,interveneinproceedingsandcomplaintcases,andrequestrehearingorjudicialreviewofstatecorporationcommissionordersordecisions(see§3).

Commentsonthe2014TX114rulemakingrecommended(1)adequatepublicnoticetoelicitpubliccommentandtoengagepublicinvolvementthroughthepermittingprocess,andaccompanyinghearingprocedures,and(2)earnestappealsproceduresforpropertyownerswhodonotagreewithorwhoareotherwiseimpactedbytheCommission'spermitdeterminationinanycase.

FinancialAssurances(Q13)Alljurisdictionsrequiretheoperatortopostfinancialassurances,generallysuretybonds,forinjectionwells.Thesebondsmaybeblanketbondsoronaperwellbasis(seeQ13).Statescouldusefinancialassurancestocompensatethepublicandrepairenvironmentaldamagefrominducedseismicity.Butbonds,andespeciallyblanketbonds,areoftencriticizedasbeinginsufficienttoevenprotecttheenvironmentfromthefailuresofdisreputableoperators.115Tocoverthecostsofinducedseismicitydamage,stateswouldlikelyhavetochangeboththepurposeandamountsoftheirrequiredfinancialassurances.

Inadditiontobonds,variousstatesalsospecifysuitabilityofalternativefinancialassurances:lettersofcredit(allstates);certificatesofdeposit(allbutKSandTX);andcash(allbutKS).AlljurisdictionsexceptARmakeageneralstatementaboutthepotentialfor“othertypes”ofinstrumentstobeacceptableifapprovedbythemanagingagency.Othertypesincludeescrowaccountsandsinkingfunds(CO),liens(COandKS);financialstatements(OH);cashier’schecks,bankjointcustodyreceipts,othernegotiableinstruments(OK);andplugginginsurancepolicies(TX).InKSanoperatorcanshowtherequisitefinancialresponsibilityinlieuofpostingabondbydemonstratingacceptablecompliancewithrules,regulationsandordersoverthepreviousthreeyearsandpayinganominal($100)nonrefundablefee.

113HB2672.


115Seee.g.,Ho,Jacqueline,etal.2016.PluggingtheGapsinInactiveWellPolicy,ResourcesfortheFuture(Thisreportisnotspecifictoinjectionwells),availableat:https://media.rff.org/documents/RFF-Rpt-PluggingInactiveWells.pdf

40

PurposeandForfeitureEnsuringthepluggingofwellsandreclamationofwellsitesistheprincipalpurposeoffinancialassurancesforalljurisdictionsexceptKS,who'sregulationsdonotstateaspecificpurpose.Inaddition,afewjurisdictionsspecifyotherpurposesofthefinancialassuranceoroccurrencesthatcouldpromptforfeiture.

• TheKSfinancialassuranceprocessisanoperatorlicensureprocesssimplyto“assurefinancialresponsibility.”116

• COregulationshavefinancialassurancestoensureprotectionofthesoilandtoprotectsurfaceownerswhoarenotpartiestoaleaseorsurfaceuseagreementfromunreasonablecroplossorlanddamage.

• Moststateswillholdabondtomoregenerallyassurecompliancewithstatelaw(AR,CO,OH,TX),commissionrules(AR,OK,PA,TX),orconditionsofthepermit(PA,TX).

• Nojurisdictionspecificallyrequiresfinancialassurancetocompensatedamagefrominducedseismicevents.

AmountofFinancialAssuranceAllstatesalsospecifytheamount,orprovideaguidelineforcalculatingtheamountoffinancialassurances.

• Twostates(AR,CO)andEPAhavefinancialassuranceregulationsspecifictoinjectionwells:

• AR-$25,000foraDisposalwell;$50,000foraCommercialDisposalwell.117

• CO–ForClassIIcommercialUICwellsurfacefacilitiesandstructures,thecostis$50,000foreachfacility.Foranywell,thecostis$10,000/wellforallwellslessthanthreethousandfeetand$20,000/wellforwellsgreaterthanthreethousandfeet.COhasanadditionalfinancialassuranceforoperationswithheavyequipment:$2,000/wellfornon-irrigatedland,$5000/wellforirrigatedland,orablanketassuranceof$25,000.

• WhileEPAdoesnotprovideadollaramount,itspecifiesthatthebondmustcoverthecostofclosing,plugging,andabandonmentofinjectionwells.

• Theremainderofstates(KS,OH,OK,PA,andTX)donotdistinguishbetweenfinancialassurancesforinjectionandproductionwells.Threeofthese(KS,PA,andTX)requirefinancialassurancebasedonthedepthofwellswhichcould,arguably,compensatefor

116Kan.Stat.§55-155(d)Licensureofoperatorsandcontractors;requirements.

117Ark.CodeR.RULEB-2:PROOFOFFINANCIALRESPONSIBILITYREQUIREDTOBEFURNISHED(f)(4)(ARoperatorscansupplyblanketfinancialassurancesof:1)$25,000for1-25wells;2)$50,000for26-100wells;or3)$100,000for101ormorewells).

41

potentiallygreaterexpenseinpluggingdeeperwellsandmitigatingtheirsurfaceimpacts.OHandOKrequirefinancialassurancesonaperwelloroperatornetworthbasis.

• KS–Thestatedoesnotspecifyaninjectionwellfinancialassurance,butthegeneralwellassuranceis$.75timesthetotalaggregatedepthofallwellsorablanketperformancebondwhere:1-5wellscost$7,500;6-25wellscost$30,000;andover25wellsis$45,000.

• OH–Financialassuranceis$5,000perwellorastatewideblanketfor$15,000.

• OK–Beforedrilling,a$25,000(orless,ifnegotiated)financialassuranceorafinancialstatementshowingtheoperatorisworthatleast$50,000isrequiredforbothinjectionandproductionwells.

• PA–Financialassuranceisbasedonnumberofwellsandtheirdepth.118But,forasuretybond,thepriceis$2,500/wellorablanketbondof$25,000.

• TX–Financialassuranceis$2/footofwelldepthforeachwell,thoughinnocircumstanceswillitbelessthan$10,000.TXalsohasablanketbondavailable.119

• Statescanalsoincreasethestandardamountofthefinancialassuranceforvariousreasons.

• InAR,theDirectorcanrequireadditionalfinancialassurancebasedon:lengthofoperationwithinthestate,compliancehistoryofthepermitholder,environmentalconsiderationofthewelllocation,andotherfactorsthatmayimpactthecostofpluggingandrestoringthewellsite.

• Inordertodemonstratethatoperatorsarecapableoffulfillingtheobligationsimposedbythestate’soilandgaslaw,COhastheflexibilitytoincreasefinancialassurancerequirementsbasedonanoperator’spatternofnon-compliancewithoilandgasregulationsinCOorotherstates,becausespecialgeologic,environmental,oroperationalcircumstancesexistwhichmakethepluggingandabandonmentofparticularwellsmoreexpensive,orduetootherspecialanduniquecircumstances.

11858Pa.C.S.A.OilandGas§3225.Bonding(a)(1)(PAfinancialassurancesarecalculatedat:Depthoflessthan6,000feet:1)upto50wellsis$4,000perwell;2)51-150wellsis$60,000plus$4,000/wellinexcessof50wells;2)151-250is$60,000plus$4,000foreachwellinexcessof150;3)andmorethan250is$100,000plus$4,00/wellinexcessof250.Forwellsofdepthgreaterthan6,000feetthesamenumbercategoriesapply:1)$10,000/well;2)$140,000plus$10,000/wellinexcessof20;3)$290,000plus$10,000/wellinexcessof50;4)$430,000plus$10,000/wellinexcessof150and5)for150wellsormore,$430,000plus$10,000/wellinexcessof150).

11916Tex.Admin.Code§3.78FeesandFinancialSecurityRequirements(g)(1)(B)(TXblanketbondsare:1-10wellsfor$25,000;10-100wellsfor$50,000;and;100ormorefor$250,000).

42

• OKcanrequireasuretyinanyamountgreaterthan$25,000andupto$100,000,afternoticeandhearing,thatthereisgoodcauseforconcernoverpollutionorimproperpluggingofwellsbytheoperatororanaffiliate.

• TXregulationsdonotprovidespecificreasonsforanincreaseinfinancialassurances,butstatethattheamountofassurancecanbegreaterthantheamountneededtoreclaimwells.

Fees(Q14)Thestateschargevariouscombinationsofpermitprocessingfeesandannualoperating(licensure)fees(seeQ14).120EPAdoesnotspecifypermitprocessingoroperationsfees.Bothtypesofstatefeesarecurrentlynominal,but,ifsufficient,couldoffsetthestates’costsformonitoringandmanagingforinducedseismicity.

InjectionPermitProcessingFeesAR,KS,OH,OK,andTXhavefixedinjectionwellpermitprocessingfees,rangingfrom$200inKSto$1,500inOK.Somestates,forexampleAR,OH,andTX,chargeaseparate(additional)feefordrillingthewell.

• OK’sfeesdifferforcommercial($1500)andnon-commercial($250)wells.

• AR’sfeesincludebothadrillingfee($300)foranydisposalwellandaseparatefeetobeginoperatingthecommercial($500)andnon-commercial($100)injectionwell.

• PAhasapermitapplicationfeeforallwellsadjustedtocoverwellpermittingadministrativecosts,andtheorphanandabandonedwellprogram.PA’spermitfeesvarybydepthofwell.

OperationsFees• AR,KS,OK,andTXhaveafixedannualoperationfee,rangingfrom$100inARandKSto

$350inTX.• OKfeesdifferforcommercialandnon-commercialwells.• OHhasanoperationfeecalculatedbyvolumeinjectedandlocationofthesourceoffluids,

rangingfrom$.05-$.20perbarrel.• Inadditiontoitsfixedfee,KSalsohasanoperationsfeeadjustedtocoveradministrative

costs,specificallyincludinginspection,investigation,enforcement,andmonitoring.

120AsofAugust2019,COfeesaresetto$0foradisposal/injectionwellpermit(Form2),butwillbereviewedinanupcomingrulemaking.Seechartofapplicablefees,availableat:http://cogcc.state.co.us/documents/reg/Rules/LATEST/AppendixIII.pdf;personalcommunications,ChrisEisinger,ColoradoOilandGasConservationCommission,August23,2019.

43

REJECTEDLEGISLATION/RULES:In2018,abillbeforetheKSlegislature(HB2672§1(d)(2)121)proposedchangingtheirpermittingfeeto“nolessthan$1000”andtheir$100annualoperatingfeetoavolume-basedfeeof$.01per100barrelsofinjectedfluids,paidquarterly,tofundaninjectionwellinducedseismicityfund(seeQ15).

Acommentonthe2014rulemakinginTX122recommendedthattheCommissionincreasethedisposalwellpermitapplicationfeetocovertheadditionalworkrequiredofCommissionstaff.

Liability(Q15–Q16)

DeterminingLiabilityMostofthejurisdictionsdonotdirectlyaddressliabilityorburdenofproofregardingeitherthecauseofseismicityorfordamagescausedbyinducedseismicity(seeQ15).

Regardingwhetherornotawellisinducingseismicity,onestate,AR,hasgenerallyaddressedburdenofproofstandardsinregulation,andanother,TX,inadministrativeproceedings.

• ARregulationsnotethattheDirectorhastheburdenofproofwithasubstantialevidencestandardinabandonedwellandemergencyhearings.ARhasusedemergencyhearingstoshut-inwellslikelytobeinducingseismicity.123

• WhileburdenofproofandstandardofreviewarenotexplicitinTXoilandgasregulations,hearingexaminershavedecidedindividualcasesapprovinganewpermitanddecliningtomodifyanexistingpermitdespiteseismicityintheareaofthewells.Inacaseregardingobjectionstoanewinjectionwellpermit(Primexx,2016124),Examinersdidnotexplicitlystateaburdenofprooforstandardofreview,butnotedthattheoperatorapplicantprovidedevidenceandtestimony,buttheobjectingadjacentlandowner/farmerquestioned

121HB2672.


123SeeArkansasOilandGasCommission,OrderNo.051-2011-02(EmergencyOrder),CessationOrder–EmergencyOrder(Mar.2011)availableat:http://www.aogc2.state.ar.us/Hearing%20Orders/2011/March%20(Special%20Hearing)/051A-2011-02%20Emergency%20Order%20-%20Final.pdf

124PrimexxPermitApplication,2016(WithfailureoftheCommissiontoprovidepolicyguidanceortheagencystafftorequestadditionalinformationfromtheapplicantortoproposeanyspecialpermitconditionsrelatedtotheareaseismicity,andfailureofthelandownertoprovidehisownevidence,theExaminersconcludedthattherewasnoevidentiarybasistodenytheinjectionwellapplication.Intheiranalysis,theExaminersnotedthat“evidenceindicatestheco-locationofinjectionactivityandseismicactivity”,butalsothat“locationsoftheseismiceventsarenotaccuratelyknownbecauseofinherentlimitationoftheregionalseismographnetworkusedtodetectthem.”TheyalsoaffirmedtheCommission’sauthorityto“modify,suspendorterminateadisposalpermitif“injectionislikelytobeordeterminedtobecontributingtoseismicactivity.”),

44

theoperator,butdidnotpresenthisowncase.Intheirruling,theExaminersnotedthattheCommissionhadnospecificcriteria,policyorguidanceonwhethertherewasalreadysufficientcapacityforfluiddisposal(apublicinterestissue),norhowevidenceofareaseismicityshouldbeconsideredinevaluatingapermitapplication,nordidtheagencyrequestadditionalinformationfromtheapplicant.125In2015hearingstodetermineifeitherorbothoftwowellshadcausedorcontributedtorecentareaseismicactivity,therespondentwelloperators(XTOEnergyandEnerVestOperating)hadtheburdenofprooftoshowbyapreponderanceofevidence(i.e.,“itismorelikelythannot”)thattheirwellswere“[not]likelytobeordeterminedtobecontributingtoseismicactivity...(16Tex.Admin.Code§3.9(6)(A)(vi))”.126

Moregenerally,threestates(CO,KS,andPA)addressliabilityforviolationofregulationsornegativeimpactsofdevelopmentontheenvironmentorthepublic.

• COnotesonlythat,initially,thereisarebuttablepresumptionagainstliabilityiftheenvironmentalimpactsareongoingandaresultofapreviousviolationcommittedbyapredecessor.Thisliabilityregulationliststypesofenvironmentalimpacts(air,water,soil,andbiologicalresources)andincludesapplicationtoanyruleoftheActitself.Butthe

125SeeTXLegalCounselReview,2014),at1(The2014rulemakingaddedregulatorylanguageregardingcalculationofapressurefrontboundaryaroundaproposeddisposalwelllocationtoberequiredin“limitedcircumstanceswhereadditionalinformationisnecessarytodemonstratethatfluidswillbeconfinedifthewellistobelocatedinanareawhereconditionsexistthatmayincreasetheriskthatfluidswillnotbeconfinedtotheinjectioninterval.”(citing16Tex.Admin.Code§3.9(3)(C)and§3.46(b)(I)(D))).

126RailroadCommissionofTexas,OilandGasDocketNo.09-0296411(XTORenoWell),at4,availableat:https://www.rrc.texas.gov/media/31023/09-96411-sho-pfd.pdfandOilandGasDocketNo.09-0296410(EverVestBriarWell),at4(Inthesehearings,examinersunderstood“contributing”tomeanthatfluidinjection(thesubjectaction)providedatleastapartoftheforcenecessarytocauseorachieveseismicactivity(theoutcome).Theexaminersalsorequiredthattheinjectionstimulusandconsequentseismicactivitymustoccurinamechanicallyconnectedsystemthatallowsforstresstobetransferredtothelocationofrupture.),availableat:https://www.rrc.state.tx.us/media/31022/09-96410-sho-pfd.pdf;Seealso,Hornback,MatthewJ.,etal.CausalFactorsforSeismicitynearAzle,Texas,NatureCommunications.NaturePublishingGroup.April21,2015(CausalFactorsreport),availableat:https://www.nature.com/articles/ncomms7728?iframe=true&width=100%25&height=100%25(TheEnerVestBriarWellandXTORenoWellhearingswerecalledbytheTexasRailroadCommission(RRC)inresponsetotheCausalFactorsreportthathadconcludedthat:“OnthebasisofmodelingresultsandtheabsenceofhistoricalearthquakesnearAzle,brineproductioncombinedwithwastewaterdisposalrepresentedthemostlikelycauseofrecentseismicitynearAzle.”AfterhoursoftestimonyandmultipleexhibitspresentedbytherespondentoperatorsandnodirectcasepresentedbytheRRCandnotestimonybytheauthorsoftheCausalFactorsreport,Examinersinbothcasesconcludedthatthepreponderanceoftheevidence“doesnotsupportafindingthatthewellislikelytobeordeterminedtobecontributingtoseismicactivity.”But“evidenceintherecorddoesnotsupportafindingoffactthat[thewell]isnotcontributingtoseismicactivityintheAzle-Renoarea,orthattheseismicactivityissolelytheresultofnaturaltectonicprocesses.”).

45

regulationdoesnotspecifythepotentialcausesoftheseresourcedamages,forexample,byseismicity.

• PAregulationsstatethatapersonisliableforawellcontrolemergencyandthecostsincurredbythedepartmentinitsresponsetotheemergencyincluding"providingtheresourcesandequipmentneedsfortheincident."PAregulationsdonotaddressburdenofproof.

• KSdoesnotaddressgeneralenvironmentalorsocialimpacts,butaddressesliabilitysurroundingabandonedwellslikelytopolluteusablewaters.There,ifpollutionisoccurring,theliabilityfallsontothelastoperator,theoperatorwhopluggedthewell,oranindividualwhotamperswithwellequipment.TheCommissioncaninvestigateanypollutionproblemrelatedtooilandgasactivityandhasacauseofactionforthereasonablecostsofplugging,repluggingorrepairingawellagainstanypersonlegallyresponsibleforthecareandcontrolofthewell.

REJECTEDLEGISLATION/RULES:In2018,abillbeforetheKSlegislature(HB2672127)proposedcreatinganinjectionwellinducedseismicityfund(seeQ16)supportedbyClassIIinjectiondisposalwellapplicationfeesandanewinjectionvolumefee(seeQ14).Accordingtothebill,theagencyrulesandregulationspromulgatedfortheproposedlawwouldhavepresumeddamagescausedbyanearthquakewerecausedbyaninducedseismicityevent,unlessprovenotherwise.

Anotherbillinthe2018Kansaslegislativesessionrequiringinducedseismicityliabilityinsurance(HB2669128)(seeQ16),wouldhavemadeanoperatorofaclassIIinjectiondisposalwellaliablepartyforanypropertydamagescausedbyaninducedseismicityevent,unlesstheoperatorcanprovebyapreponderanceoftheevidencethattheoperatorcouldnothavecausedsuchinducedseismicityevent.

LiabilityInsuranceTwostates(COandOH)requireoperatorstoholdliabilityinsurance(seeQ16).

• COoperatorsmustmaintainatleast$1millionperoccurrenceingeneralliabilityinsurancecoverageforpropertydamageandbodilyinjurytothirdparties.

• OHwellownersmustobtainliabilityinsuranceof$1-3million(inurbanareas)forbodilyinjuryandpropertydamagecausedbydrilling,operatingorpluggingofalloftheirOHwells.WhileOHrequireshorizontalwellownerstoincludeanenvironmentalendorsementontheirpolicy,thisisnotrequiredfornon-horizontal(includinginjection)wells.

127HB2672.

128HouseBillNo.2669(2018)(HB2669),availableat:http://kslegislature.org/li_2018/b2017_18/measures/documents/hb2669_00_0000.pdf

46

• ARhas,throughpermitconditions,requiredanoperatortoacquireliabilityinsurancepriortoinjection.129

REJECTEDLEGISLATION/RULES:In2014,inresponsetoacommenterrecommendingthattheCommissionrequireoperatorstobuyearthquakeinsurance,theTXstatelegalcounselstatedthatit“hasnostatutoryauthoritytorequireanoperatortopurchaseinsurance”.130

In2018,abillbeforetheKSlegislature(HB2669131)proposedrequiringoperatorstoprovideacertificateofinducedseismicityliabilityinsurancethatisreasonablysufficienttoprovidecoverageforpropertydamagescausedbyinducedseismicityeventsasdeterminedbythecommission.

HB2672132alsoproposedcreatinganinjectionwellinducedseismicityfundsupportedbyClassIIinjectiondisposalwellapplicationfeesandanewinjectionvolumefee(seeQ14).Expendituresfromthefundcould,havereimbursedKansascitizens,entities,counties,citiesandtownshipsfordamagesfrominducedseismicityeventsandprovidedoperationalmoneysforthecitizens'injectionwellboard.TheKansaslegislaturerejectedasimilarfund–anearthquakeriskpoolfundin2015(HB2349).133Thisfundwouldhavebeenlimitedtocompensatingpersonalinjuryorpropertydamages.ThebillwouldhaveestablishedanewClassIIUICdisposalwelllicensefeeandrequiredsuspendingsuchlicenses,permitsandapprovalsincertaincountiesuntilthefundwassufficientlyfundedtoprovideadequatefinancialsafeguardstocompensateforpotentialpersonalinjuryorpropertydamage.

ConclusionThiswhitepaperandtheLawAtlasdatasetaretheprincipalproductsoftheRegulatoryActionsgroupoftheColoradoCollaboratoryofInducedSeismicityproject“HazardsSEES:TheRiskLandscapeofEarthquakesInducedbyDeepWastewaterInjection.”OurfocushasbeentocomparemanagementofoilandgaswastewaterinjectionbyEPAandsevenstatesthathavehadsignificantoilandgasdevelopmentaswellasexperiencewithinducedearthquakes.Forthiscomparison,wereliedprimarilyonstatutoryandregulatorylanguagecapturedintheLawAtlasInducedSeismicitydataset.Wehavesupplementedthislawwithinformationfromstateadministrativeagencyforms,

129SeeAROrder63-2008-01.Whileitwastheonlyorderlocatedonthisissue,itisnotpossibletodeterminefromtheCommissionorderwhetherthisisananomalousrequirementorstandardpractice.

130TXLegalCounselReview,2014,at4.

131HB2669.

132HB2672.

133HB2349(2015),availableat:http://kslegislature.org/li_2016/b2015_16/measures/documents/hb2349_00_0000.pdf

47

actionsandpolicies.Inordertodocumentwhathasbeenrecommended,butnotyetincludedinstatutesandregulation,wehavesummarizedafewfailedlegislativeandregulatoryproposals.

Whilethissummaryprovidesverylittleanalysisandcommentonthelaw,itprovideseasyaccesstothepertinentprovisionsofeachjurisdiction.Ourhopeisthatthisstimulatesevaluationanddiscussionofthevariousjurisdictions’approachestoClassIIUICwellmanagementastheyrelatetoinducedseismicity.Ideally,thiswillleadtoreductioninboththehazardsandrisksofinducedseismicityfromdisposalofoilandgasproductionfluidsbyinjection.

Theprojectteamwelcomesotherresearchers,regulators,industryandindividualstoutilizethedatasetinitscurrentform,toupdateit,ortoexpandittoincludeadditionalstatesortoaddressadditionalissues.134

134Forcomments,correctionsorquestionscontactKathrynMutz,NaturalResources,[email protected]@gmail.com.

48

APPENDICESAppendixA:StatutesandRegulationsCitedintheLawAtlasDataset

Arkansas

Ark.Code PowersandDuties-RulesandRegulations §15-71-110(a)and(d)

Ark.CodeR. GeneralHearingProcedures RULEA-2(c)

AdditionalRequirementsforSpecificTypesofHearings RULEA-3(a)

EnforcementProcedures RULEA-5(e)

ProofofFinancialResponsibilityRequiredtoBeFurnished RULEB-2(b-h)and(k)

Abandonedorleakingwellandwellsiteremediation RULEG-1(a)and(c-f)

Version1:ClassIIDisposalandClassIICommercialDisposalWellPermitApplicationProceduresVersion2:ClassIIDisposal,ClassIICommercialDisposal,EnhancedOilRecoveryInjection(EOR),andClassVBrineDisposalWellPermitApplicationProcedures

Version1:RULEH-1(a),(c-d),(h-j)and(o-s)Version2:RULEH-1(a),(c-d),(e-g)(j-l)and(q-u)

WellConstruction,OperatingandReportingRequirementsforClassIIDisposalWells

RULEH-2(a),(d-e)and(n-p)

WellConstruction,OperatingandReportingRequirementsforClassIICommercialDisposalWells

RULEH-3(a-d),(f-g),(j-k),and(m-s)

40CFRState-administeredprogram–ClassIIwells[reserved] §147.201

Colorado

Colo.Rev.Stat.ADDITIONALPOWERSOFCOMMISSION-RULES §34-60-106(13)

Rules–hearings-process §34-60-108(3-8)

2Colo.Code.Regs.

DEFINITIONS(asof21419) DEFINITIONS §404-1-100

49

GENERALRULES(asof13015)

EFFECTIVESCOPEOFRULESANDREGULATIONS §404-1-201

GENERALRULES:TESTSANDSURVEYS §404-1-207(b)

SERIESDRILLING,DEVELOPMENT,PRODUCTIONANDABANDONMENT(asof21419)

FINANCIALASSURANCEREQUIREMENTS §404-1-304

FORM2AND2AAPPLICATIONPROCEDURES §404-1-305(e-f)

SERIESDRILLING,DEVELOPMENT,PRODUCTIONANDABANDONMENT:COGCCForm7.OPERATOR’SMONTHLYREPORTOFOPERATIONS §404-1-309(b)

SERIESDRILLING,DEVELOPMENT,PRODUCTIONANDABANDONMENT:COGCCForm17.BRADENHEADTESTREPORT §404-1-314

SERIESDRILLING,DEVELOPMENT,PRODUCTIONANDABANDONMENT:COGCCForm14.NON-PRODUCEDWATER §404-1-316A(b)

MECHANICALINTEGRITYTEST§404-1-316BCOGCCForm21

GENERALDRILLINGRULES §404-1-317(e-i)

POLLUTION §404-1-324A(e)

EXEMPTAQUIFERS §404-1-324B(b-d)

UNDERGROUNDDISPOSALOFWATER§404-1-325(b-f)and(i-n)

MECHANICALINTEGRITYTESTING §404-1-326(a)and(f)

MEASUREMENTOFPRODUCEDANDINJECTEDWATER §404-1-330(a-c)

RULESOFPRACTICEANDPROCEDURE(asof21419)

PROCEEDINGSNOTREQUIRINGTHEFILINGOFAN §404-1-502(a-b)

ALLOTHERPROCEEDINGSCOMMENCEDBYFILINGANAPPLICATION

Version1:§404-1-503(a-b)and(d)Version2:§404-1-503(a-b)and(e)

REQUIREMENTOFPUBLICHEARING §404-1-505

NOTICEFORHEARING §404-1-507(a)

PROCEDURESFORALLEGEDVIOLATIONS §404-1-522(g)

DETERMINATIONOFRESPONSIBLEPARTY §404-1-524(a-g)

PERMIT-RELATEDPENALTIES §404-1-525(a)

FINANCIALASSURANCEANDOILANDGASCONSERVATION

GENERAL §404-1-702(a-b)

SURFACEOWNERPROTECTION §404-1-703

50

ANDENVIRONMENTALRESPONSEFUND(asof5118)

SOILPROTECTIONANDPLUGGINGANDABANDONMENT. §404-1-706(a-b)

GENERALLIABILITYINSURANCE §404-1-708

FINANCIALASSURANCE §404-1-709

SURFACEFACILITIESANDSTRUCTURESAPPURTENANTTOCLASSIICOMMERCIALUNDERGROUNDINJECTIONCONTROLWELLS. §404-1-712

E&PWASTEMANAGEMENT(asof5118)

E&PWASTEMANAGEMENT:INTRODUCTION §404-1-901(e-f)

E&PWASTEMANAGEMENT:MANAGEMENTOFE&PWASTE §404-1-907(c,dandf)

40CFR

State-administeredprogram–ClassIIwells §147.300

ExistingClassI,II(exceptenhancedrecoveryandhydrocarbonstorage)andIIIwellsauthorizedbyrule §147.303

Kansas

Kan.Stat.

LICENSUREOFOPERATORSANDCONTRACTORS;REQUIREMENTS §55-155(a-e)

Findingreasonablecausetobelievethatpersonhasviolatedactorrulesandregulations;hearing;procedure;order;immediateremedialaction;reconsiderationandjudicialreview;investigations;sealingofwell;removalofseal,penalty.

§55-162(a-b)and(e)

COMMISSION’SCOSTASSESSEDAGAINSTOPERATORSANDAGENTS;DISPOSITIONOFMONEY §55-176(a)

INVESTIGATIONOFCOMPLAINTBYTHECOMMISSION;FINDINGS;RESPONSIBILITYFORREMEDIALACTION;COSTS;HEARINGS;ORDERS §55-179(a-e)

Testingandinvestigationofpollution;pluggingexpenses;liens. §55-180(a-d)

Disposalofsaltwater;rulesandregulations;assessmentofcosts;dispositionofmoneys §55-901

Kan.Admin.Regs.

DEFINITIONS §82-3-101(a)

SURFACECASINGANDCEMENT §82-3-106(a-d)

§82-3-120.OPERATORORCONTRACTORLICENSES:APPLICATION;FINANCIALRESPONSIBILIITY;DENIALOFAPPLICATION;PENALTY

§82-3-120(a-b),(f),(h-l)

NOTICEOFAPPLICATION §82-3-135a(a-e)

51

PROTESTERS §82-3-135b(a-e)

INJECTIONALLOWEDONLYBYPERMIT;PENALTY §82-3-400(a)and(b)

APPLICATIONFORINJECTIONWELL;CONTENT §82-3-401(a)and(c)

NOTICEOFAPPLICATION;OBJECTION §82-3-402(a-b)

PERMITTINGFACTORS;APPLICATIONAPPROVAL §82-3-403(a-c)

CASINGANDCEMENT §82-3-405(a-d)

INJECTIONWELLTUBINGANDPACKERREQUIREMENTS §82-3-406(b)

MECHANICALINTEGRITYREQUIREMENTS;PENALTY

§82-3-407(a-b),(d-e),(g)

DURATIONOFINJECTIONWELLPERMITS;MODIFICATIONPENALTY §82-3-408(a)

RECORDRETENTION;ANNUALREPORT;PENALTY §82-3-409(a-c)

TRANSFEROFAUTHORITYTOINJECT;PENALTY §82-3-410(b)

ASSESSMENTOFCOSTS. §82-3-412(b-c)

40CFR State-administeredprogram—ClassIIwells. §147.851

Ohio

OhioRev.Code

Enforcement--injunctionagainstviolation. §1509.04(A-D)

Applicationforpermittodrill,reopen,convert,orplugbackawell §1509.06(A

LiabilityInsuranceCoverage §1509.07(A-B)

Forfeitingbond §1509.071(A)

Storageordisposalofbrine,crudeoil,naturalgas,orotherfluids §1509.22(C-D),(H)

NoticeofFilingforpermittodrillnewwell. §1509.60

OhioAdmin.Code

Permits §1501:9-1-02(F)

SuretyBond.§1501:9-1-03(A),(C-D),and(F)

Constructionofandconversiontosaltwaterinjectionwells §1501:9-3-05(A-C)

Permit§1501:9-3-06(A),(C),(G-I)

Operating,monitoringandreportingofsaltwaterinjectionwells. §1501:9-3-07(D-J)

Annulardisposal §1501:9-3-11(A),(C-G)

52

40CFRState-administeredprogram–ClassIIwells §147.1800(a)

ExistingClassIandIIIwellsauthorizedbyrule—maximuminjectionpressure §147.1803(a)

Oklahoma

Okla.Stat.tit.17

ExclusiveJurisdiction,PowerandAuthorityVestedinCorporationCommissionandtheDepartmentofEnvironmentalQuality §139(A)and(D)

Okla.Admin.Code

GeneralProvisions:Fees,finesandbonds §165:5-3-1(a)and(b)

Administration:Definitions §165:10-1-2Definitions

Administration:Prescribedforms §165:10-1-7(b)

Operator'sagreement;CategoryAandCategoryBsurety §165:10-1-10(a),(d-e)

Financialstatementassurety §165:10-1-11(a-d)

Corporatesuretybond §165:10-1-12(a)

Irrevocablecommercialletterofcredit§165:10-1-13(a)and(b)

Cashier'scheck,certificateofdeposit,orothernegotiableinstrument

§165:10-1-14(a)and(b)

Requiredapprovalofnoticeofintenttodrill,deepen,re-enter,orrecomplete;PermittoDrill §165:10-3-1(g)

Drilling,Developing,andProducing:Casing,cementing,wellheadequipment,andcementingreports

§165:10-3-4(a-d),(f),(l),(n)

UndergroundInjectionControl:Approvalofenhancedrecoveryinjectionwellsordisposalwells §165:10-5-2(a)and(e)

UndergroundInjectionControl:Authorizationforexistingenhancedrecoveryinjectionwellsandexistingdisposalwells §165:10-5-3(b)

UndergroundInjectionControl:Applicationforapprovalofenhancedrecoveryinjectionanddisposaloperations

§165:10-5-5(a-c),(i-j),l)

UndergroundInjectionControl:Testingandmonitoringrequirementsforenhancedrecoveryinjectionwellsanddisposalwells §165:10-5-6(a-f)

UndergroundInjectionControl:Monitoringandreportingrequirementsforwellscoveredby165:10-5-1

§165:10-5-7(a),(c-d),(f-g)

UndergroundInjectionControl:Transferofauthoritytoinject §165:10-5-10(a)

53

UndergroundInjectionControl:Applicationforpermitforonetimeinjectionofreservepitfluids §165:10-5-13(b)

UndergroundInjectionControl:Applicationforpermitforsimultaneousinjectionwell §165:10-5-15(b)

Administrationandenforcementofrules §165:10-7-2(e)

PollutionAbatement:Wastemanagementpracticesreferencechart §165:10-7-24(b),(c)

CommercialDisposalFacilities:Commercialdisposalwellsurfacefacilities §165:10-9-3(a),(c-f)

40CFR State-administeredprogram-ClassIIwells §147.1851

Pennsylvania

58Pa.C.S.A.OilandGas

Definitions §3203Well

Wellpermits §3211(b)and(d)

Bonding §3225(a-d)

Conferences §3251(a)

PublicNuisances §3252

Enforcementorders §3253(a-e)

RestrainingViolations §3254(a-c)

Wellcontrolemergencyresponsecostrecovery §3254.1

Existingrightsandremediespreservedandcumulativeremediesauthorized §3257

Unlawfulconduct §3259(1-2)

Thirdpartyliability §3261

58P.S.OilandGas(OilandGasConservationAct) Rules,regulations,notices,ordersandhearings §410(a-f)

25Pa.Code

Definitions §78.1

APPLICATIONREQUIREMENTS. §78.15(a-b)

PERMITS,TRANSFERSANDOBJECTIONS:Disposalandenhancedrecoverywellpermits §78.18(a)

Permitapplicationfeeschedule §78.19(a-e)

Opportunityforobjectionsandconferences;surfacelandowners §78.21(a)

WELLDRILLING,OPERATIONANDPLUGGING:CasingandCementing:GeneralProvisions §78.81(a-b)

WELLDRILLING,OPERATIONANDPLUGGING:Surfaceandcoalprotectivecasingandcementingprocedures §78.83(c-f)

54

WELLDRILLING,OPERATIONANDPLUGGING:Casingandcementingplan §78.83a(a)

WELLDRILLING,OPERATIONANDPLUGGING:Casingandcementing—lostcirculation §78.83b(a)

WELLDRILLING,OPERATIONANDPLUGGING:Intermediateandproductioncasing §78.83c(a-c)

WELLDRILLING,OPERATIONANDPLUGGING:Casingstandards. §78.84(a-d)

WELLDRILLING,OPERATIONANDPLUGGING:Cementstandards §78.85(a-e)

WELLDRILLING,OPERATIONANDPLUGGING:Mechanicalintegrityofoperatingwells §78.88(a-e)

WELLREPORTING:Logsandadditionaldata §78.123(b)

WELLREPORTING:Disposalandenhancedrecoverywellreports §78.125(a-c)

Requirementstofileabond §78.302

Form,termsandconditionsofthebond §78.303(a-e)

Termsandconditionsforcollateralbonds--general §78.305(a-d)

Collateralbonds--lettersofcredit §78.306(a)

Collateralbonds—certificatesofdeposit §78.307(1-5)

Collateralbonds—negotiablebonds §78.308(1-4)

Forfeituredetermination 78.312(a),(b)

40CFR

Purposeandscopeofpart144 §144.1(a),(b)

EPA-administeredprogram(SubpartNNPennsylvania) §147-1951(a)and(b)

ExistingClassI,II(exceptenhancedrecoveryandhydrocarbonstorage)andIIIwellsauthorizedbyrule.(SubpartNNPennsylvania) §147.1953(a)and(b)

Requirementsforwellsauthorizedbypermit.(SubpartNNPennsylvania) §147.1955(b-c)

Texas

Tex.NaturalResourcesCode

PurposesofRulesandOrders §85.202(a)

EmergencyOrder §85.206(a-c)

PersonsRequiredtoExecuteBond,LetterofCredit,orCashDeposit §91.103

Bonds,LettersofCredit,CashDeposits,andWell-SpecificPluggingInsurancePolicies §91.104(a-c)

55

IndividualBond §91.1041(a)and(c)

BlanketBond §91.1042(a)and(c)

BondConditions §91.105

FinancialSecurityforPersonsInvolvedinActivitiesOtherThanOperationofWells §91.109(a-c)

Refund §91.1091(1-3)

ReporttotheCommission §91.142(a),(e),(f),(g)

Tex.WaterCode

InformationRequiredofApplicant §27.032

ApplicationFee §27.0321(a)and(b)

RailroadCommissionRules,Etc. §27.034(a)

16Tex.Admin.Code

DisposalWells §3.9(1-7),(12)

Casing,Cementing,Drilling,WellControl,andCompletionRequirements §3.13(a-b)

Plugging §3.14(a)

FluidInjectionintoProductiveReservoirs §3.46(a-b),(d),(i-j)

FeesandFinancialSecurityRequirements §3.78(a-d),(g-h),(l)

PermitforInjection §4.617(c)and(d)

40CFR State-administeredprogram-ClassIIwells §147.2201

EnvironmentalProtectionAgency

SafeDrinkingWaterAct,TitleXIV:SafetyofPublicWaterSystems,PartC:ProtectionofUndergroundSourcesofDrinkingWater

RegulationsforStatePrograms §1421(a-b)

StateprimaryenforcementresponsibilitiesSDWA §1422(a-b)

OptionalDemonstrationByStatesRelatingToOilOrNaturalGas §1425(a-c)

40CFR

Purposeandscope. §124.1(a-c)and(e)

Applicationforapermit. §124.3(g)

Draftpermits. §124.6(e)

Publicnoticeofpermitactionsandpubliccommentperiod. §124.10(a-e)

Publiccommentsandrequestsforpublichearings. §124.11

Publichearings. §124.12(a-d)

Obligationtoraiseissuesandprovideinformationduringthepubliccommentperiod. §124.13

Reopeningofthepubliccommentperiod. §124.14(a-e)

Issuanceandeffectivedateofpermit. §124.15(a-b)

56

Staysofcontestedpermitconditions. §124.16(a-c)

Responsetocomments. §124.17(a-c)

AdministrativerecordforfinalpermitwhenEPAisthepermittingauthority. §124.18(a-e)

Purposeandscopeofpart144. §144.1(a-b)and(e-f)

GeneralProvisions:Identificationofundergroundsourcesofdrinkingwaterandexemptedaquifer §144.7(a-c)

GeneralProgramRequirements:Prohibitionofmovementoffluidintoundergroundsourcesofdrinkingwater §144.12(a-b)

AuthorizationofUndergroundInjectionbyRule:ExistingClassI,II(exceptenhancedrecoveryandhydrocarbonstorage)andIIIwells §144.21(c-e)

AuthorizationofUndergroundInjectionbyRule:Requiringotherinformation §144.27(a)and(b)

RequirementsforClassI,II,andIIIwellsauthorizedbyrule §144.28(d),(f-h)

AuthorizationbyPermit:Applicationforapermit;authorizationbypermit §144.31(a),(e)

AuthorizationbyPermit:Effectofapermit §144.35(a-b)

AuthorizationbyPermit:Modificationorrevocationandreissuanceofpermits §144.39(a)

AuthorizationbyPermit:Terminationofpermits §144.40(a)

PermitConditions:Conditionsapplicabletoallpermits §144.51(q)

PermitConditions:Establishingpermitconditions §144.52(a)

Purposeandscope §145.1(c)

Requirementsforpermitting. §145.11(a-b)

Requirementsforenforcementauthority §145.13(a)and(d)

CriteriaandStandards,GeneralProvisions:ClassificationofInjectionWells §146.5(b)

CriteriaandStandards,GeneralProvisions:Mechanicalintegrity §146.8(a-f)

CriteriaandStandardsApplicabletoClassIIWells:Applicability §146.21

CriteriaandStandardsApplicabletoClassIIWells:Constructionrequirements §146.22(a-e)

57

CriteriaandStandardsApplicabletoClassIIWells:Operating,monitoring,andreportingrequirements §146.23(a-c)

CriteriaandStandardsApplicabletoClassIIWells:InformationtobeconsideredbytheDirector §146.24(a)

58

AppendixB:SummaryofRegulatoryIssuesAddressedintheLawAtlasDataset,Qs1–16.

RegulatoryAuthority:

Q1:Doesthejurisdictionallowforthedisposalofoilandgasproductionfluidsthroughinjectionwells?

A1:Yes;No

Q2:HastheEnvironmentalProtectionAgency(EPA)delegatedprimacyoftheUndergroundInjectionControl(UIC)ProgramundertheSafeDrinkingWaterActtothejurisdiction,enablingittoregulateClassIIdisposalwells?

A2:Yes;No,EPAadministerstheUICprogram

Q3:Doesthejurisdictiondistinguishbetweencommercialandnon-commercialwellswhenregulatingClassIIdisposalwells?

A3:Yes;No

WellSitingandPermitting:

Q4:WhatsubsurfacefeaturesdoesthejurisdictionconsiderwhenpermittingaClassIIdisposalwell?

A4:Aquifers;Faults,Geologicstrata;Bedrock/Basementrock;Historicearthquakes;Locationofwells;Other

Q5:ForwhatreasonsdoesthejurisdictionrestrictthesitingofClassIIdisposalwells?

A5:Proximitytofaults;Potentialwatercontamination;Injectionzonecharacteristics;Proximitytootherinjectionwells;Proximitytoseismicevents;Publichealth,safety,welfare,ortheenvironment;Other;None

WellConstructionandOperations:

Q6:MustoperatorscaseandcementClassIIdisposalwells?

A6:Yes;No

Q7:WhenmustoperatorsdemonstratemechanicalintegrityofClassIIdisposalwells?

A7:Aninitialtest;Onaroutineschedule;Followingwellmaintenanceorproblems;Afterseismicactivity

Q8:Doesthejurisdictionrestrictinjectionpressure,injectionrate,ortotalvolumeoffluids?

A8:Injectionpressure;Injectionrate;Totalfluidvolume

Q9:DoesthejurisdictionrequiretheoperatortomonitorforseismicitynearClassIIdisposalwells?

A9:Yes,allClassIIdisposalwells;Yes,afterseismiceventsinthearea;Yes,onacase-by-casebasis;No,butrequiresaplanformonitoring;No.

Q10:WhatmustoperatorsmonitorduringoperationofClassIIdisposalwells?

A10:Fluidvolumeorinjectionrate;Injectionpressure;Qualityortypeofinjectedfluids;Other

59

Q11:CanthejurisdictionchangerequirementsforClassIIdisposalwellsaftertheyarepermitted?

A11:Yes,byprohibitinginjection;Yes,byreducinginjectionparameters;Yes,modifyingapermit;Yes,revokingapermit;Yes,throughgeneralauthoritytotakeaction;No

PublicNotification,FinancialAssurances,andLiability:

Q12:DoesthejurisdictionrequirepublicparticipationopportunitiesforClassIIdisposalwells?

A12:Yes,duringthepermittingprocess;Yes,duringoperationandapplicabletoseismicissues;Yes,duringoperations,butspecifictonon-seismicissues;Yes,specifictoseismicevents;No

Q13:DoesthejurisdictionrequireafinancialassuranceforClassIIdisposalwells?

A13:Yes;No

Q13.1:Whattypeoffinancialassurancescanbeusedinthejurisdiction?

A13.1:Suretybond;Letterofcredit;Certificateofdeposit;Cash;Other

Q13.2:Doesthejurisdictionspecifytheamountoffinancialassurances?

A13.2:A13.3:Yes,dollaramount;Yes,intermsofcoststobecovered;No

Q13.3:Whatarethestatedpurposesorreasonsforforfeitureofthefinancialassurance?

A13.3:Ensurewellispluggedandsiteisreclaimed;Compensatethirdpartiesforimpactsofdevelopment;Otherspecificpurposes;Generallyensurecompliancewithstateorfederallaw;None

Q14:DoesthejurisdictionchargeapermitoroperationsfeeforClassIIdisposalwells?

A14:Permitprocessingfee-fixed;Permitprocessingfee-adjustedtocoveradministrativecosts;Operationfee-fixed;Operationfee-adjustedbyvolume;Operationfee-adjustedtocoveradministrativecosts;Nofees

Q15:Doesthejurisdictionaddressliabilityissuesfordeterminingthecauseofseismicityordamagefromit?

A15:Yes;No

Q16:Doesthejurisdictionrequireoperatorstocarryliabilityinsurance?

A16:Yes;No

60

AppendixC:LawAtlasDatasetStatisticalReport:QsandAsAvailablefordownloadfromtheLawAtlasInducedSeismicityDatasetathttp://lawatlas.org/datasets/IS-oil-gas-wastewater

Alsoavailableat:https://drive.google.com/drive/folders/1NMZb74WtCK9Waw9d79bxLJqycQRW_rmx?usp=sharing

AppendixD:LawAtlasDatasetStandardReport:Answers,SupportingCitations,andCautionFlags.AvailablefordownloadfromtheLawAtlasInducedSeismicityDatasetathttp://lawatlas.org/datasets/IS-oil-gas-wastewater

Alsoavailableat:https://drive.google.com/drive/folders/1NMZb74WtCK9Waw9d79bxLJqycQRW_rmx?usp=sharing