CHAPTER 4

ENVIRONMENTAL RULES, INCLUDING UNDERGROUND INJECTION CONTROL PROGRAM RULES FOR ENHANCED RECOVERY AND DISPOSAL PROJECTS

 

 Section 1. Pollution and Surface Damage (Forms 14A and 14B).

  (a) These rules are intended to protect human health and the environment by avoiding contamination of the soils and underground and surface waters at drilling or producing locations. Applications to construct pits, provided for in these rules, shall be approved if the pit will not cause the contamination of surface or underground water, and endanger human health or wildlife. Approval by the Commission of applications for permits for reserve or produced water pits does not relieve the Owner or Operator of the obligation to comply with the applicable federal, local, or other state permits or regulatory requirements.

  (b) The Commission exercises its regulatory authority over the construction, location, operation, and reclamation of oilfield pits within a lease, unit or communitized area which is used solely for the storage, treatment, and disposal of drilling, production and treater unit wastes. The following pits are subject to this regulation:

    (i) Reserve pits on the drilling location;

    (ii) Reserve pits off the location within a lease, unit or communitized area permitted by Owner or unit Operator drilling the well;

    (iii) Produced water retention pits, skim pits, and emergency production pits including the following:

      (A) Pits associated with approved disposal wells which act as fluid storage, filtering or settling ponds prior to underground disposal in a Class II well;

      (B) Pits constructed for disposal of produced fluids in connection with oil and gas exploration and production used as part of the filtering and/or settling process upstream of a National Pollutant Discharge Elimination System (NPDES) discharge point;

      (C) Pits constructed in association with heater treaters or other dehydration equipment used in production, such as free water knockouts, or first, second and third stage separators;

      (D) Pits constructed for blowdown or gas flaring purposes.

    (iv) Pits constructed for the storage and treatment of heavy sludges, oils, or basic sediment and water (BS&W) in connection with production operations;

    (v) Temporary pits constructed during well workovers, including spent acid and frac fluid pits;

    (vi) Permanent or temporary emergency use pits;

    (vii) Miscellaneous pits associated with oil and gas production not listed above.

  (c) Permits. In addition to the permits required by the Commission and the Bureau of Land Management, the following agencies may also have authorities over the management of oil field wastes:

    (i) The Wyoming Department of Environmental Quality administers the following regulatory programs:

      (A) Commercial ponds and pits used for the retention and disposal of fluids;

      (B) Class I hazardous waste and nonhazardous waste wells under the Underground Injection Control (UIC) Program;

      (C) National Pollutant Discharge Elimination System Program (NPDES);

      (D) Regulations for releases of oil and hazardous substances into waters of the state and Wyoming Contingency Plan;

      (E) Roadspreading, landspreading, and landfarming of exploration and production wastes;

      (F) Solid waste disposal facilities operated by municipalities and privately by the oil and gas industry;

      (G) Cathodic protection wells;

      (H) Underground storage tanks;

        (I) Sanitary waste treatment systems; and,

      (J) Air quality standards;  

    (ii) The Bureau of Land Management administers surface operating standards for oil and gas exploration and development on federal lands, Tribal lands and/or leases in Wyoming;

    (iii) The Office of the State Engineer regulates surface water appropriation, construction of water supply wells and appropriation of water from those wells, and the beneficial use of water produced in association with the recovery of hydrocarbons which includes water from coalbed methane wells. The State Engineer's Office should be contacted for dam safety requirements;

    (iv) The United States Fish and Wildlife Service administers the Migratory Bird Treaty Act in Wyoming. Oil and gas Owners or Operators have to be aware of the obligation to comply with this regulation as they permit, construct, and maintain all facilities that may contain hydrocarbons or produced waters. Appendix A of these rules includes information on that legislation.

    (v) The Commission shall, to the maximum extent possible and consistent with its statutory obligations and authorities set forth in WYO. STAT. ANN. §§ 30-5-101 through 30-5-127, adopt such policies and practices as may be required in compliance with Executive Order 2010-4, Greater Sage-Grouse Core Area Protection, Appendix J.

  (d) Oil and Gas Commission Pit Permits. No retaining pit or below-grade structure used for the containment of fluids, as defined in this section, shall be constructed unless Form 14A (Application for Permit to Construct and Use Earthen Pit for Retention of Produced Water) or 14B (Application for Permit to Construct and Use Earthen Pit for Temporary Use, or Reserve Pit), has been submitted to and approved by the Supervisor. The Commission shall not approve any application, either Form 14A or 14B until the applicant has demonstrated compliance with the requirements of the Split Estates Act, if the application is subject to the Split Estates Act, as contained within Chapter 3, Section 8(d) of these rules.

  (e) Owners or Operators of produced water retaining pits in operation prior to June 1, 1984, may continue to use such pits as long as the operation conforms to the current requirements of new pits. Owners of existing pits shall be responsible for providing the information included on Form 14A upon request of the Supervisor.

  (f) The Supervisor may administratively approve fieldwide or areawide applications covering the standardized construction and operation of earthen retaining pits.

  (g) Optional Form 18 (Soil & Groundwater Information) is provided for the Owner's/Operator's use, if they choose, to supplement Forms 14A and 14B to record and document shallow groundwater and subsoil types when they drill shallow holes such as the rat hole, mouse hole or conductor on the drill site. Form 18 can be used to demonstrate that a well is not in a critical area where groundwater is at a depth of less than twenty feet (20') or in an area that has permeable subsoil.  

   (h) Centralized Pits. Owners or Operators must obtain approval of the Supervisor for the location, construction and closure of noncommercial centralized pits located within a lease, unit, or communitized area used for field operations. Requirements may be more stringent than individual reserve or produced water pits depending on pit size, waste type, migratory bird protective measures, mosquito control with the county weed and pest control board guidance in the county where operations are located, and location. Applicants, upon request of the Supervisor, shall provide additional notice, plats and plan views, and information relative to the location of water supplies, residences, schools, hospitals, or other structures where people are known to congregate, site security, groundwater monitoring and leak detection. These permits will be issued for a term of five (5) years and may be renewed at the discretion of the Supervisor.

  (i) Emergency Pits. Prior to construction, permanent emergency pits must be approved on Form 14B (Application For Permit To Construct and Use an Earthen Pit for Temporary Use, or Reserve Pit). Within twenty-four (24) hours of the first business day after construction of a temporary emergency pit or use of a permanent emergency pit, the Owners or Operators shall verbally advise the Supervisor of the existence of the pit and of the estimated time it will be in use.

  (j) Reserve Pits. Form 14B must be submitted and approved in conjunction with an Application for Permit to Drill (Form 1). Approval of this permit must be obtained before drilling commences. The staff must be provided at least one (1) working day to evaluate the location (for distance from surface waters, depth to useable ground water, soils, distance from human habitation, etc.) and to evaluate the fluids which potentially will be retained in the pit (for types of drilling and completion fluids proposed for use, for presence of salt sections, and for the length of time the pit will be in use, etc.). The Commission may request additional information to complete its evaluation. Owners and Operators using closed systems who wish to use a pit to receive drill cuttings must apply for and receive permission to construct on Form 14B.

  (k) Permits are valid for a term of one (1) year from the date of issuance unless an extension has been approved for the Application for Permit to Drill (Form 1) and for as long as the permit conditions are met. Falsification of information on the application or filing of an incomplete application will result in automatic denial of the request.

  (l) Workover and Completion Pits in Critical Areas. Approval of workover and completion pits proposed to be constructed in locations meeting the definition of pits in critical areas must be applied for and obtained on Form 14B prior to their construction and use.

  (m) Application May be Done in the Following Manner:

    (i) Submitting Form 14B application for individual new (concurrent with filing an Application for Permit to Drill, (Form 1)) or existing wells;  

    (ii) Submitting Form 14B application for a field or unit wide permit, listing all wells meeting any of the above criteria.

  (n) If the Owner or Operator complies with the approved Form 14B terms and conditions, no further approval to construct and use workover or completion pits will be required for those well sites. However, subsequent reporting, within thirty (30) days of completion of operations on Form 4 (Sundry Notice), is required each time a pit is constructed and used. Alternative reporting requirements such as annual reporting may be approved by the Supervisor.

  (o) Workover and Completion Pits in Non-Critical Areas. Workover and completion pits proposed to be constructed in locations not meeting any of the criteria listed in the definition of Pits in Critical Areas, Chapter 1, Section 2(nn) of these rules, will require either:

    (i) Submittal of a Form 14B application for a field or individual well basis to receive a one-time approval to construct and use workover and completion pits. As long as the Owner or Operator complies with the approved Form 14B terms and conditions, no further application/notice will be required for future construction and use of workover and completion pits.

    (ii) Notification to the Supervisor via Sundry Notice (Form 4), subsequent to the construction and use of a workover or completion pit. This must be submitted within thirty (30) days of completion of operations and include the following information:

      (A) Schematic diagram showing the location of the workover or completion pit in relation to existing production equipment;

      (B) Length of time the pit was in use; and,

      (C) Statement addressing the types of fluids placed in the pit and that those fluids were removed prior to closure.

  (p) General Information for Workover and Completion Pits. Upon review of Form 14B applications, the Commission staff will evaluate well locations to determine if their proposed siting is in a critical area (for distances from surface waters, depth to useable groundwater, soils, distances from human habitation, etc.). In the event construction is approved, special precautions or operational restrictions may be required by the Supervisor at these well facilities in order to avoid contamination of groundwater and surface water at the well location.

  (q) Workover Pits should retain only Resources Conservation and Recovery Act (RCRA) exempt wastes. Other wastes should be managed in tanks for later recycling, reuse, or proper disposal. Owners or Operators should design workover or completion procedures so that additives will be expended while correcting the down-hole problems. Workover and completion pits shall be open only for the duration of operations and must be closed within thirty (30) days after the operation is complete.

  (r) Produced Water Pits. Form 14A must be submitted and approved prior to use of a produced water pit. The Commission may request additional information to determine if the proposed pit location meets the definition of Pits in Critical Areas, Chapter 1, Section 2(nn).

    (i) The information required for submittal includes a standard water analysis (Form 17) to include oil and grease, maximum and average estimated inflow, size of pit, freeboard capacity, original of pit contents, method of disposal of pit contents, maximum fluid level above average ground level, distance to closest surface water, depth to groundwater, subsoil type and type of sealing material. A plan view map and topographic map of sufficient size and detail to determine surface drainage system and all natural waterways and irrigation systems, if applicable, must be attached. The Commission may request additional information.

    (ii) Because of the potential for direct communication with shallow groundwater resources of the state, application for approval of construction of percolation pits for containment and discharge of water produced in association with coalbed methane gas in the Powder River Basin may be accompanied by a review of the groundwater issues by the Department of Environmental Quality as determined by the Supervisor. If the proposed construction meets with requirements of the Commission's Rules, the application may be granted.

  (s) Below Grade Structures (Tinhorns). For the purpose of its regulation, the Commission requires below grade structures (including tinhorns) used to receive oil, condensate, or produced water, to be applied for on Form 14A. Construction must be done in accordance with good engineering practice and the staff must be provided the opportunity to inspect prior to any use. A written monitoring program for all permitted below grade structures must be submitted and approved by the staff.

  (t) Marking. The Owner/Operator shall mark each pit in a conspicuous place with his name and the legal description of the location of the pit and shall take all necessary means and precautions to preserve these markings. Exempted from this requirement are pits in close proximity to injection or producing wells marked in accordance with Chapter 3, Section 19.

  (u) Location. When any retaining pit is located in an area with a high potential for communication between the pit contents and surface water or shallow ground water, or to provide additional protection to human beings when operations are conducted in close proximity to water supplies, residences, schools, hospitals, or other places where people are known to congregate, or to provide protection to livestock and wildlife, the Commission may require such modifications or changes in the Owner's/Operator's plans as it deems necessary including, but not limited to, running a closed system, lining the pit, installing monitoring systems and providing additional reporting, or any other reasonable requirement that will insure the protection of fresh water. In areas where ground water is less than twenty feet (20') below the surface, a closed system must be utilized for well drilling operations.

  (v) Unlined pits shall not be constructed in fill. Pits of any kind shall not be constructed in drainages, or in the floodplain of a flowing or intermittent stream, or in an area where there is standing water during any portion of the year. Ground and surface water maps are available for review or consultation at the Commission, the U.S. Geological Survey (USGS), or the State Engineer's Office.

  (w) Construction. Lining of pits with reinforced oilfield grade material, compatible with the waste to be received, will be required by the Supervisor or Commission under certain circumstances including, but not limited to, pits proposed to be constructed in areas defined as critical as well as on sites with sandy soils, shallow groundwater, in groundwater recharge areas, or sites immediately adjacent to the Green River or the Colorado River drainage and other sensitive environments or circumstances identified by the Commission. Pits proposed to be constructed in the Powder River Basin for percolation of water produced in association with the recovery of coalbed methane gas into shallow sands or aquifers may be considered by the Commission if the applicant can demonstrate their operation will comply with water quality standards of the Department of Environmental Quality. When required by Supervisor, the Commission staff will provide applicable information to the Department of Environmental Quality for their co-review. Pits constructed in fill or those used to retain oil base drilling muds, high-density brines, and/or completion or treating fluids must be lined. Pits constructed to retain produced water with a total dissolved solids concentration in excess of ten thousand milligrams per liter (10,000 mg/l) must be lined. The Supervisor, on a case by case basis, will determine if pits retaining water with a total dissolved solids concentration less than ten thousand milligrams per liter (10,000 mg/l) will be required to be lined. The Commission staff must be provided at least twenty-four (24) hours notice of commencement of construction and/or of closure of pits so that an inspection can be made. Additionally, the following construction standards for pits are required to be met or exceeded:

    (i) Soil mixture liners, recompacted clay liners, and manufactured liners must be compatible with the waste contained. On request of the Supervisor, the Operator must provide evidence of the chemical resistance of the liner selected for use.

    (ii) Liners constructed of synthetic materials must meet the following specifications: a 9 to 12 mil thickness, greater than 20% elongation at failure, puncture strength of 60 pounds, tear strength of 50 pounds, and permeability less than 10-7 cm/sec. Joints must be overlapped a minimum of 2 inches and seams sealed as recommended by the manufacturer.

  Blemishes, holes, or scars must be repaired per manufacturer's recommendation. Breaches in the liner for siphons or other equipment must be reinforced.

    (iii) Slopes for soil mixture liners or recompacted liners shall not exceed 3:1. Slopes for manufactured liners shall not exceed 1:1. 

    (iv) Reasonable provisions for protection of liners during filling and emptying activities must be included in the construction plans.

    (v) Manufactured liners must be installed over smooth fill subgrade which is free of pockets, loose rocks, or other materials which could damage the liner. Sand, sifted dirt or bentonite are suggested. At no time will straw or any other organic material except synthetic cushion fabric designed for that purpose be used for a liner cushion. Installation of synthetic or soil mixture liners must be in accordance with accepted engineering practice.

    (vi) Liner edges must be secured. The Commission requires that liner edges be placed in a trench which is deep enough to receive approximately one foot (1') of compacted soil which will anchor the material.

    (vii) Monitoring systems may be required for pits constructed in sensitive areas. Such pits must be operated in a manner that avoids damage to liner integrity.

  Periodic inspections, weekly at a minimum, of pits must be made by the Owner or Operator and documentation of such inspections may be required to be submitted to the Supervisor at his request.

    (viii) Liquids must be kept at a level that takes into account extreme precipitation events and prevents overtopping and unpermitted discharges. Appendix B includes average annual precipitation rates for the state.

  (x) Operation. Owners or Operators will take such reasonable measures to manage pits so that the pits are used solely for retention or disposal of fluids associated with the operation for which the pit was originally constructed and for which the permit was granted. Reserve pits cannot be used as production pits; separate pits must be constructed and permitted. Permits are granted taking into consideration the salinity, hydrocarbon content, pH, and other characteristics of the fluids which may be detrimental to the environment if they were to be directly applied to soils. Use of a pit by persons other than the Owner or Operator is prohibited unless approved by the Supervisor and by the Owner or Operator of the pit. Pits shall not receive, collect, store, or dispose of any wastes that are listed or defined as hazardous wastes and regulated under Subtitle C of RCRA, except in accordance with state and federal hazardous waste laws and regulations. The pit permit or approval is automatically canceled if these provisions are not met. See Appendix C of these rules for additional information.

  (y) Unused commercial products shall not be disposed with exempt oilfield wastes. The commingling of any listed hazardous waste with the otherwise exempt pit contents may render the entire mixture a hazardous waste and results in closing the pit under the RCRA hazardous waste regulations. All reasonable efforts should be made to completely use commercial products. Products should be returned to the vendor if appropriate, or segregated from other wastes for management or disposal. Oil base muds must be segregated from water base drilling fluids because pit closure is complicated by their presence. Mixing and treating of oil based and water-based muds can be allowed with approval of the Supervisor. Rigwash may be routed to the reserve pit provided care is taken to avoid contamination of the pit contents by rig oil and other nonexempt wastes. See Appendix C of these rules for more information.

  (z) Where feasible, Owners/Operators are encouraged to increase the use of solids removal equipment to minimize drilling fluid waste, where practical. The Commission encourages the recycling of drilling fluids and by administrative action approves the transfer of drilling fluids intended for recycling. When removed as a product for use in a drilling operation on another lease, drilling fluid is not classified as a waste. If federal leases are involved, the Owner or Operator must obtain the approval of the Bureau of Land Management (BLM). The Supervisor requires the following information be included on the Form 14B or on a Sundry Notice (Form 4) estimated volume, estimated date of transfer, mud recap, analyses which include at a minimum, pH, chlorides, and oil and grease. To protect shallow groundwater, drilling muds with chlorides testing in excess of 3,000 parts per million or those containing hydrocarbons cannot be used in drilling operations until after the surface casing has been set.

  (aa) Trash and sanitary waste should be properly contained and hauled to approved disposal locations, not retained in or disposed of in pits on location or downhole. Owners/Operators should consult the county sanitarian and/or the Department of Environmental Quality regarding appropriate disposal of sanitary wastes.

  (bb) All pits shall be fenced completely and for any produced water pit, workover, completions, or emergency pit found containing oil, sheens, condensate, other hydrocarbons or chemicals proven to be hazardous to public health, safety and welfare, or to wildlife, domestic animals, or migratory birds, the Owner or Operator shall have these fluids removed as soon as practical or in accordance with Chapter 4, Section 1(dd) of these rules. If timely fluid removal is not possible, the pit should be netted or otherwise secured in a manner that avoids the loss of wildlife, domestic animals, or migratory birds. Alternative methods of netting or securing pits may be authorized at the discretion of the Supervisor. See Appendix A for information relative to the Migratory Bird Treaty Act. Owners or Operators shall provide for devices on hydrogen sulfide flare stacks to discourage birds from perching. The Supervisor may make additional requests for security when operations are conducted in close proximity to residences, schools, hospitals, or other structures or locations where people are known to congregate. For reserve pits, see subsection (jj) of this section.

  (cc) Blowdown, flare, and emergency pits cannot be used for long-term storage or disposal.

  (dd) All retaining pits shall be kept reasonably free of surface accumulations of oil and other liquid hydrocarbon substances and shall be cleaned within ten (10) days after discovery of the accumulation by the Owner/Operator or notice from the Supervisor.

  (ee) The Owner or Operator shall not pollute streams, underground water, or unreasonably damage or occupy the surface of the leased premises or other lands. At no time will the fluid contents of any pit be discharged or allowed to escape to the surface without prior approval through issuance of an NPDES permit by the Department of Environmental Quality (DEQ) and other required authorization. At no time will drilling fluids be discharged into live waters or into any drainages that lead to live waters of the state. If liquid products of wells cannot be treated or destroyed, or if the volume of such products is too great for disposal by the usual method of onsite natural evaporation and burial of solids, the Supervisor must be consulted and the liquids disposed of by an approved method.

 (ff) Testing. For the purpose of its regulation of oilfield pits and wastes, the Commission recognizes and requires, when deemed appropriate, the following tests:

    (i) Standard Water Analysis - Form 17

    (ii) Toxicity Characteristic Leaching Procedures (TCLP), EPA Method 1311; July 1992.

    (iii) Oil and Grease or Total Petroleum Hydrocarbon (TPH), EPA Method 418.1; 1978.

    (iv) Total Petroleum Hydrocarbon, Condensate and High Gravity Crude, EPA, Method 8015, Gasoline and Diesel Range; July 1992.

    (v) United States Department of Agriculture, Sodium Absorption Ratio (SAR), Exchangeable Sodium Percentage (ESP); 1984.

    (vi) Wyoming Oil and Gas Commission Leachate Test Procedure; April 27, 1999.

  (gg) Soil borings and soil testing must be performed by an independent engineering or geotechnical soil testing company or laboratory according to sound engineering practice in accordance with established industry standards. The logs of all borings, together with associated laboratory testing to classify soils and to measure soil strength, permeability, and other related parameters shall be submitted to the Supervisor.

  (hh) Sampling procedures are subject to review by the Supervisor because variations in sampling protocol allow differentiation of waste fluid compositions due to normal distribution.

    (ii) Closure. If the pit is proposed to be closed through the usual method of onsite natural evaporation and subsequent burial of solids, if pit treatment procedures are going to be applied, or if closure plans have changed from the original proposal approved on Form 14A or 14B, or any time wastes are disposed off-site, a Sundry Notice (Form 4) must be submitted and approved prior to closure. Information relative to approved commercial disposal facilities is available from the DEQ Water Quality Division. Information relative to companies whose methods to chemically and/or mechanically treat pits have been approved by the Commission may be obtained from the agency. The Commission staff must be provided the opportunity to witness closure operations. Verbal notice at least twenty-four (24) hours prior to closure is required. Closure must be conducted in accordance with lease and landowner obligations and with local, state, and federal regulations:

    (i) Oil, water, and other fluids must be immediately removed from emergency pits and disposed in accordance with the Commission's rules. In the case of temporary emergency pits, evaporation or percolation of fluids prior to closure is not an acceptable disposal method. Permitted permanent emergency pits will not require immediate closure after use and fluid removal;

    (ii) Trenching or squeezing pits is expressly prohibited. Burial methods cannot compromise the integrity of manufactured, soil mixture, or recompacted clay liners without written approval by the Supervisor. One-time landspreading of reserve pit fluids on the drilling pad may be approved upon submittal of analyses, mud recaps and treating summaries, groundwater identification, and other information that is deemed appropriate. Prior approval must be obtained from the Supervisor if drilling fluid is disposed on the drill pad. A Sundry Notice (Form 4) with appropriate supporting detail must be submitted following the operation. Any offsite waste disposal is subject to DEQ regulations;

    (iii) Closure standards and testing requirements for all pits will be determined by the Supervisor based upon site-specific conditions;

    (iv) Pit solids showing high concentrations of salt (exchangeable sodium percentage above 15) must be removed from the location and disposed in a permitted facility, encapsulated, or chemically or mechanically treated;

    (v) When drilling with oil-based muds, oil-based mud solids must be removed and disposed in a permitted facility; solidified using a Commission approved commercial pit treatment, roadspread, landspread, landfarmed; or, bioremediated in accordance with Commission or Wyoming Department of Environmental Quality rules. Burial after encapsulation or solidification will be approved if the stabilized mixture contains less than ten milligrams per liter (10 mg/l) leachable oil and less than five thousand milligrams per liter (5,000 mg/l) leachable dissolved solids using the Wyoming Leachate Test defined in Chapter 4, Section 1(ff), Testing.

  (jj) For reserve pits containing oil, sheens, condensate, other hydrocarbons or chemicals proven to be hazardous to public health, safety and welfare, or to wildlife, domestic animals, or migratory birds, the Owner or Operator shall have these fluids removed as soon as practical. If fluid removal is not possible in a timely manner, the reserve pit shall be fenced completely and netted or otherwise secured at the time the rig substructure has been moved from the location in a manner that avoids the loss of wildlife, domestic animals, or migratory birds. Alternative methods of netting or securing pits may be authorized at the discretion of the Supervisor. 

  (kk) All trash, paper, and unused structures or equipment must be removed from the location upon completion of operations. With landowner consent, Owners/Operators may temporarily store equipment (such as drilling rigs) on a location while it awaits transfer. Reserve and produced water pits cannot be used for disposal of refuse, failed equipment parts, or unused chemicals. Proper closure of the pit is compromised by the inappropriate use of the pit for trash disposal and may result in revocation of the permit. Further, Owners/Operators are encouraged to choose chemical additives which are lower in toxicity or do not exhibit RCRA hazardous characteristics. See Appendix D for suggestions. Additionally, Owners/Operators are encouraged to refer to Material Safety Data Sheets provided by vendors as products are selected.

    (ll) The Commission specifically prohibits the use of dispersants, wetting agents, surface reduction agents, surfactants, or other chemicals that destroy, remove, or reduce the fluid seal of a reserve pit and allow the fluids contained therein to seep, drain, or percolate into the soil underlying the pit.

  (mm) Landfarming and landspreading must be approved by the DEQ.Jurisdiction over roadspreading or road application is shared by DEQ and the Commission. Roadspreading or road application is a process whereby wastes are incorporated into a roadbed, typically for beneficial use, with minimal environmental risk. The Commission is the agency responsible for permitting road applications of RCRA-exempt exploration and production wastes which include drilling fluids, produced water and produced water-contaminated soils, waste crude oil, sludges, and oil-contaminated soils inside the boundaries of a lease, unit, or communitized area. The roadspreading application shall include acceptable evidence of landowner consent and the information included on the Commission's Form 20. Landfarming, landspreading, and roadspreading shall be protective of human health and the environment and shall be performed in compliance with all other applicable State and Federal regulations and requirements.

  (nn) The Commission may require testing of wastes and additional disposal requirements prior to closure of a pit if they have reason to believe exempt exploration and production wastes have been commingled with hazardous wastes, upon analysis of an Owner's/Operator's mud program, or in previously identified sensitive environments.

  (oo) Commercial Treatment of Pits. Any person, corporation, or company desiring to chemically and/or mechanically treat pits in Wyoming must apply for and receive permission to do so from the Commission after a public hearing. Types of approved treatments include enhanced evaporation, solidification, centrifuging, etc. The Commission will approve those methods that can successfully demonstrate a capability to accomplish some or all of the following criteria:

    (i) Compressive strengths that are appropriate for post drilling or production activities;

    (ii) Reductions in weight or volume of waste;

    (iii) Removal or reduction of harmful properties of waste; and,

    (iv) Reduction or elimination of mobility or leachability of constituents.

  (pp) An Operator or Owner wishing to treat pits for closure must submit to the Commission on a Sundry Notice (Form 4) a plan outlining the objectives that the treatment is designed to achieve (e.g., waste volume reduction, toxicity reduction/removal, chemical fixation, etc.). The Commission's approval will be based upon the selected method's demonstrated capability to achieve the objectives described in the sundry notice. Consideration must be given to applicable federal, local, or state permits or regulatory requirements when performing mechanical or chemical treatment of pit wastes. A list of approved methods and vendors is available from the Commission.

  (qq) Reclamation. Reclamation of unused production pits or any other temporary retaining pits, including reserve pits, shall be completed in as timely a manner as climatic conditions allow. Production pit areas and reserve pits will be reclaimed after they have dried sufficiently following the removal of any oil, sheens, or other hydrocarbons, or if they contain chemicals harmful to wildlife, domestic animals and migratory birds, or if proven to be hazardous to public health, safety and welfare, and no later than one (1) year after the date of last use, unless the Supervisor grants an administrative variance for just cause and after Oil and Gas Conservation Commission staff inspection. Because their construction may be a benefit to landowners, pits used solely for the retention of water produced in association with the recovery of coalbed methane gas in the Powder River Basin may be left open with the approval of the Supervisor and subject to Chapter 3, Section 4(h)(ii) of these rules. A statement of acceptance which clearly indicates the surveyed location, precise size of the pit, and willingness on the part of the landowner to accept all future responsibility for the structure and its contents, accompanied by a current written cost estimate for pit closure prepared by a Wyoming registered professional engineer with expertise in surface pit remediation, must be provided to and accepted by the Supervisor. The landowner's signature on the statement of acceptance must be notarized.

  (rr) Site rehabilitation should be in accordance with reasonable landowner's wishes, and/or resemble the original vegetation and contour of the adjoining lands. Where practical, topsoil must be stockpiled during construction for use in rehabilitation. All disturbed areas on state lands will be reseeded. Appendix F of these rules includes information on seeding.The Owner or Operator shall advise the Supervisor of the completion of reclamation of a production or reserve pit by submitting a Sundry Notice (Form 4).

  (ss) One-Time Downhole Disposal. By formal order or by administrative action the Commission may approve of one-time disposal of a limited volume of fluid produced in the course of drilling operations from one specific well. This is not an operation designed for downhole disposal of drilling fluids from offsetting or additional wells. This application is not to be confused with the approval of a Class II well for underground disposal of water produced in association with the recovery of hydrocarbons under the Underground Injection Control Program. Disposal by injection shall not be initiated until such time as approval has been granted by the Commission.

  (tt) An application for approval of reserve pit fluid injection shall demonstrate that water in the proposed disposal interval is in excess of ten thousand milligrams per liter (10,000 mg/l) total dissolved solids or has received an aquifer exemption under Chapter 4, Section 12 of these rules and that fresh water or Underground Sources of Drinking Waters (USDW) will not be influenced by the disposal operation. Data to support this finding shall include, but not be limited to, the following:

    (i) Full detail of the casing, cementing, and completion of the well including cement logs;

    (ii) Formation tops and depths to the deepest USDW;

    (iii) Copies of the mud recaps, appropriate analyses of the fluid, and an estimate of the volume of the fluids to be disposed;

    (iv) Abandonment procedure and demonstration that the disposal zone can be isolated;

    (v) Maximum disposal pressure anticipated and information relative to fracture pressures of the confining zone. Pump pressure must be limited so that fractures will not extend to the base of a USDW and/or a groundwater aquifer;

    (vi) The statement that the Owner or Operator will make arrangements to provide at least twenty-four (24) hours notice of disposal operation so that a Commission technician might be present as a witness; and,

    (vii) Statement that on completion of the work a temperature survey or suitable alternative will be run to show fluid was placed in the proposed interval.

(uu) Upon completion of the work, the applicant must file a Sundry Notice (Form 4) summarizing the disposal operation.

    (vv) The Commission or its staff may designate conditions other than those listed in this rule, as it deems necessary to ensure safe disposal of these fluids. The application shall be approved if the application for a permit is complete and if water in the proposed interval has total dissolved solids in excess of ten thousand milligrams per liter (10,000 mg/l) and fresh water or Underground Sources of Drinking Water will not be influenced by the disposal operation.

 Section 2. Water Shut-Offs.

 By approved reasonable methods, the Owner or Operator shall shut off and exclude all alien water from any oil or gas-bearing stratum to the satisfaction of the Supervisor, and to determine the effectiveness of such operations, the Owner shall, unless otherwise requested by the Supervisor, make a casing and water shut-off test before suspending drilling operations or completing the well.

 Section 3. Accidents, Spills, and Fires.

  (a) The Owner or Operator shall take all reasonable precautions to prevent accidents and fires, shall notify the Supervisor within twenty-four (24) hours of all accidents (other than personal injuries and deaths) or fires of major consequence, and shall submit a full report thereon within fifteen (15) days.

  (b) Uncontained spills or unauthorized releases of produced fluids, drilling muds, produced water, hydrocarbons, or chemicals which enter, or threaten to enter, waters of the state must be verbally reported to the Commission no later than the next business day following discovery of the incident. The Owner or Operator shall file a written report within fifteen (15) working days.

  (c) Regardless of the type of surface containing the fluids, contained spills of crude oil, condensate, produced water, or a combination thereof, which occur on a lease, unit, or communitized area, except on state lands, and do not physically enter waters of the state and are immediately contained, removed, and disposed of properly,

    (i) Contained spills of less than one (1) barrel (42 gallons) are not required to be verbally reported. The Owner or Operator shall maintain a record of such spills, the volume and actions taken to contain, remove and properly dispose and have the records available for review by the Commission upon request.

    (ii) Contained spills of greater than one (1) barrel (42 gallons) and less than ten (10) barrels (420 gallons) are not required to be verbally reported. The Owner or Operator shall file a written report within fifteen (15) working days of the spill.

    (iii) Contained spills equal to or greater than ten (10) barrels (420 gallons) shall be verbally reported to the Commission no later than the next business day following discovery of the incident. The Owner or Operator shall file a written report within fifteen (15) working days of the spill.

    (iv) An example of the information normally required by the Commission for reporting spills is included in the Incident Report (Form 21; Appendix E). The Commission accepts copies of reports prepared to satisfy the requirements of the Department of Environmental Quality or the Bureau of Land Management.

 Section 4. Workmanlike Operations.

  (a) The Owner or Operator shall carry on all operations and maintain the property at all times in a safe and workmanlike manner, having due regard for the preservation and conservation of the property and for the health and safety of employees and people residing in close proximity to those operations or those who routinely are in close proximity to those operations. At a minimum, the Owner or Operator must unless otherwise approved by the Supervisor:

    (i) Take reasonable steps to prevent accumulation and promptly remove any materials that may be deemed to be a fire hazard. Accumulations of oil or hydrocarbon-contaminated soil should be promptly removed from the vicinity of well locations, wellheads/stuffing boxes, lease tanks and inside bermed areas, and/or other production equipment and pits;

    (ii) Maintain all materials and chemicals in an orderly and safe manner. Material and equipment stored on the lease and or well site shall be limited to serviceable equipment commonly associated with the operation of a lease or well. Refuse should be disposed of properly as provided elsewhere in these rules;

    (iii) Provide for clear identification of ownership of the property at all times and comply with the requirements in Chapter 3, Section 19 of these rules for the marking of each drilling, producing, or injection well;

    (iv) Locate all permanent ignition sources, such as heater treaters, no closer than one hundred feet (100') from the wellhead;

    (v) On state and private surfaces, comply with all setback rules in Chapter 3, Section 22(b) and Chapter 3, Section 47;

    (vi) Provide fencing or other reasonable means to prevent access to all pumps, pits, wellheads, production facilities which is reasonably adequate to secure the site in such a manner as to protect public health and safety concerns, wildlife, and livestock at the well location;

    (vii) Maintain tanks in a workmanlike manner which will preclude seepage from their confines and provide for all applicable safety measures. Owners or Operators should be aware of their responsibility to comply with Spill Prevention Control and Countermeasures Plan (SPCC, 40 CFR 112) requirements that regulate the prevention and containment of crude oil spills. SPCC regulations and guidelines specify that applicable facilities construct appropriate containment or diversionary structures or equipment to prevent discharged oil from reaching waters of the United States. The use of crude oil tanks without tops is strictly prohibited. If an SPCC Plan is applicable, any oil spilled within the SPCC containment berms at a tank battery shall be promptly removed and any containment devices installed to contain drips and spills during hose hookup shall be emptied and/or cleaned as necessary to prevent access by wildlife, domestic animals, or migratory birds.

    (viii) Where facilities are in close proximity to populated areas or where there is an imminent and present danger to the public health and safety, the Supervisor may request survey plats and/or plan views of all improvements on a lease or facility and require evidence that the facility has been constructed in accordance with good engineering practices and with consideration of safety measures;

    (ix) Install a valve on all treaters and/or production facilities so that produced water sampling required by the Commission's rules can be performed in a reasonable and easy manner;

    (x) Dispose of produced water, tank bottoms, and other miscellaneous solid waste in a manner which is in compliance with the Commission's rules and other state, federal, or local regulations.

  (b) The Owner/Operator shall install and maintain all electrical equipment located in and around an oil or gas well to comply with the National Electrical Code in effect for the year electrical conductors were installed and energized, and the Department of Fire Prevention and Electrical Safety Act, WYO. STAT. ANN. §§ 35-9-106 and 35-9-123. Operator shall provide the Oil and Gas Conservation Commission at least twenty-four (24) hours notice prior to installation of underground electrical conductors outside of its facilities, fenced enclosures, or posted areas. With routine maintenance, emergency or repair work, the Operator shall provide the Oil and Gas Conservation Commission notice within twenty-four (24) hours of completing the electrical work.

 Section 5. Underground Disposal of Water.

  (a) The underground disposal of fresh water or of salt water, brackish water, or other water unfit for domestic, livestock, irrigation, or other general uses, is permitted only upon order of the Commission or approval of the Supervisor, obtained pursuant to an application therefore filed in accordance with Chapter 5, Rules of Practice and Procedure, as amended herein. Orders authorizing disposal wells shall remain valid unless revoked by the Commission for just cause. In addition, there is assessed a seventy-five dollar ($75.00) annual fee on all new and old disposal wells.

    (i) No later than January 1, 2005, disposal wells shall be equipped with operable pressure gauges, calibrated at all times to industry standards and manufacturer's specifications for the instrument used, on the tubing and on the casing-tubing annulus, or set up in such a way that the company representative can connect gauges to the well to determine pressure on the tubing and casing-tubing annulus. Accurate gauges shall also be placed on any other annuluses as deemed necessary by the Supervisor. Variances may be administratively approved for good cause shown.

  (b) Disposal Well Permits. The applicant shall demonstrate by compliance with Chapter 3, Section 22 of these rules that the proposed disposal operation will not endanger fresh water sources. Disposal wells shall be cased and the casing cemented in such a manner that damage will not be caused to oil, gas, or fresh water sources.

  (c) The application to dispose of salt water, brackish water, or other water unfit for domestic, livestock, irrigation, or other general uses shall include:

    (i) A plat showing the location of the disposal well or wells, including abandoned and drilling wells and dry holes, and the names of all lease Operators or Owners and surface owners within a one-half (1/2) mile radius from the proposed disposal well or wells;

    (ii) An affidavit showing that said lease Operators or Owners and surface owners within a one-half (1/2) mile radius have been provided a copy of the application for disposal;

    (iii) The names, description, and depth of the formation into which water is to be injected, including a mechanical log of the proposed disposal well or wells if one is available;

    (iv) A description of the casing in the disposal well or wells, or the proposed casing program and the proposed method for testing casing before use of the disposal well or wells;

    (v) A statement specifying the source of water to be injected;

    (vi) The estimated minimum and maximum amount of water to be injected daily;

    (vii) The average and maximum disposal pressure;

    (viii) Evidence and data to support a Commission finding that the proposed disposal well will not initiate fractures through the overlying strata or confining zone which could enable the injection fluid or formation fluid to enter the fresh water strata;

    (ix) Standard laboratory analysis of the water to be disposed and the water in the formation into which disposal is taking place. The method of water analysis is subject to review by the commission or Supervisor. Water Analysis Report (Form 17) illustrates the minimum parameters for which water must be analyzed. Other reporting formats which include this minimum information may be accepted;

    (x) A reference to the Commission order exempting the aquifer that is to receive the injected fluid;

    (xi) The applicant shall provide for a one-quarter (1/4) mile radius of investigation for mechanical conditions of all wells which have penetrated the disposal zone surrounding a proposed disposal well. Specifically known and documented geological features may limit the need to review all wells within the one-quarter (1/4) mile radius;

    (xii) The depth and areal extent of all usable fresh and potable water (USDW) underlying the area proposed for exemption;

    (xiii) An Operator or Owner who files an application for approval of a disposal well which is within a one-half (1/2) mile radius of a well producing from the proposed disposal zone shall give notice of the application to the royalty and overriding royalty interest owners within said radius unless the wells are located within a unit.

  (d) Disposal Well Integrity Demonstrations. For the purpose of this rule, a mechanical integrity test of an injection well is a test designed to determine: if there is a significant leak in the casing, tubing, or packer of the well, and if there is significant fluid movement into an underground source of drinking water through vertical channels adjacent to the wellbore.

    (i) Mechanical integrity must be established by the Owner or Operator no less than once every five (5) years. A mechanical integrity test shall include one of the following tests to determine whether significant leaks are present in the casing, tubing, or packer:

      (A) The Owner or Operator may test the casing-tubing annulus above the packer at the greater of a minimum pressure of 300 psi or a pressure equivalent to the maximum injection pressure, but no higher than 1,000 psi. For the purpose of pressure testing, packers or bridge plugs must be set within one hundred feet (100') of perforations. A retrievable bridge plug may be utilized in casing to test tubingless completions. Owners/Operators must provide the Commission staff the opportunity to witness all integrity tests. In the event a representative of the Commission is unable to witness the test, the Owner or Operator is required to provide documentation of the test to the Commission; or

      (B) As an alternative to the pressure test, the Owner or Operator may use any test or combination of tests approved by Environmental Protection Agency (EPA).

    (ii) The initial mechanical integrity test for all disposal wells shall include one of the following tests to determine whether there are significant fluid movements in vertical channels adjacent to the well bore:

      (A) Cementing records which shall only be valid for disposal wells in existence prior to present date;

      (B) Tracer surveys;

      (C) Cementing records with a cement bond log or other acceptable cement evaluation log;

      (D) Temperature surveys; or,

      (E) In lieu of (A) through (D), any other test or combination of tests approved by EPA.

    (iii) As provided in Chapter 2, Section 6, if normal testing, surveys, or monitoring schedules provide inconclusive proof of mechanical reliability, the Commission shall require that other appropriate logs or additional well tests be performed.

    (iv) All disposal wells are required to maintain mechanical integrity as defined by these rules. Any well which fails a mechanical integrity test, or which has been determined through other means to not have mechanical integrity, is required to be shut-in immediately. Once a disposal well is determined to lack mechanical integrity, within ninety (90) days of the determination, it must be repaired and retested or plugged and abandoned. For just cause, in order to continue disposal operations or to extend the deadlines for repairing or plugging wells, Owners or Operators may request variances. These requests must demonstrate that the leaks do not pose a threat to any underground sources of drinking water.

  (e) New Owners are obligated to carry out previously approved programs in the manner originally approved. Change of ownership must be filed in accordance with Chapter 3, Section 14 of these rules.

  (f) Modifications or variations of existing or pending disposal operations may be approved by the Supervisor under Chapter 3, Section 10 of these rules, upon application containing sufficient detail for the Supervisor to evaluate the proposed modification. Permits for remedial work under this section are only valid for ninety (90) days but can be extended on request by filing a Sundry Notice (Form 4) with the Supervisor assuming there has been no change in geologic, regulatory, or environmental situations. No such variance shall be approved unless the applicant proves to the Supervisor or the Commission that the variance will not endanger fresh water.

  (g) The Commission shall publish notice of the disposal application fifteen

      (15) days before approval in a newspaper in general circulation in Natrona County, and a newspaper of general circulation in the county in which the disposal well is located.

  (h) Disposal operations must commence within one (1) year of the approval date of the disposal application or the approval shall be null and void.

 Section 6. Geophysical/Seismic Operations.

  (a) General. Before a geophysical/seismic company conducts operations, the representative shall give notice to an occupant of every inhabited dwelling within a one-mile (1) radius of each shot point. Such notice shall be given in writing or by in-person contact. The notice shall tell the occupant of the nature and approximate time period of the seismic activity.

  (b) A representative of the client company and the geophysical/seismic company shall meet with the staff of the Commission at the office of the State Oil and Gas Supervisor to file an application for a permit to conduct seismic operations before beginning seismic operations in the State of Wyoming. No seismic operation shall be conducted without such a permit and no permit shall be issued until the applicant has demonstrated compliance with the requirements of the Split Estates Act, if the application is subject to the Split Estates Act, as contained within Chapter 3, Section 8(d) of these rules. The Supervisor has discretion to waive the requirement of the pre-permit meeting. The permit for seismic operations may be revoked, suspended, or the application for the permit denied by the Commission or Supervisor for failure to comply with the Commission's rules, statutes, and orders of the Supervisor or Commission. The Supervisor may revoke, suspend, or deny the application for a seismic permit without a hearing, provided that the geophysical/seismic company shall be given an opportunity for a hearing at the next regularly scheduled Commission meeting. The fact a permit is revoked or suspended does not excuse the geophysical/seismic company, any independent hole pluggers, or client company from properly plugging existing seismic holes, but does prohibit them from drilling any more.

  (c) Prior to commencement of drilling, a meeting shall be held between the Commission staff and field representatives from the geophysical/seismic company, every driller, every designated hole plugger, and a representative of the client company. Time and location of the meeting shall be at the discretion of the Commission's staff. The Supervisor has discretion to waive the requirement for the pre-drilling meeting.

  (d) Seismic holes shall be re-entered only in compliance with the regulations of the Wyoming Occupational Health and Safety Commission and other applicable law.

  (e) Unnecessary surface disturbance created by movement of equipment on water saturated or wet soils is prohibited. Once equipment tracks become on average four (4) to six (6) inches or greater in depth in wet or muddy conditions, operations must cease in the wet or muddy area(s). Operations may continue in dry areas of the project area. For just cause, the Supervisor or his duly appointed agent may waive this requirement.

  (f) Permitting. Before beginning geophysical operations, the geophysical/seismic company shall file an application for a permit for seismic operation (Form 15) with the Commission. This application shall also contain a verified statement (Form 1A) that said company has complied with the requirements of the Split Estates Act, if applicable.

  (g) The application for a permit for seismic operations (Form 15) must include the following information, as appropriate:

    (i) The approximate number, depth, and location of the seismic holes and the size of the explosive charges;

    (ii) The name, permanent address of the client company, and a phone number and name of a local representative of the client company the Commission may contact about the seismic operation;

    (iii) The name, permanent address, and phone number of the geophysi- cal/seismic company and its local representative whom the Commission can contact about the seismic activity;

    (iv) The name, phone number, and permanent address of the hole- plugging contractor, if different from the geophysical/seismic company;

    (v) A detailed description of the hole plugging procedures;

    (vi) The anticipated starting date of seismic and plugging operations;

    (vii) The anticipated completion date of seismic and plugging operations;

    (viii) A description of the identifying mark that will be on the non- metallic plug to be used in the plugging of the seismic hole;

    (ix) The application shall be accompanied by a Bureau of Land Management Surface-Minerals Management 7.5 Minute Quad map with a scale of one inch (1") to twenty-four thousand feet (24,000') that shows the proposed location of the lines or grid.

  (h) Bonding. Before conducting geophysical/seismic operations, either directly or indirectly under contract, the client company must file and have approved by the Commission a surety bond in the amount of fifty thousand dollars ($50,000.00) except where a client company has filed an approved bond in accordance with Chapter 3, Section 4 of these rules. The condition of such bond shall comply with the Wyoming Conservation Act, the rules and orders of the Commission, and orders of the Supervisor and/or his duly authorized representatives. The obligation of the bond shall not be discharged until the client company has complied with the Wyoming Conservation Act, the Commission's rules, and the orders of the Commission and Supervisor and/or his duly authorized representatives. Upon verified application, or for just cause, the Supervisor may waive, modify, or increase this bonding requirement for the client company.

    (i) Before beginning geophysical operations, the geophysical/seismic company must file and have approved by the Commission a bond in the amount of fifty thousand dollars ($50,000.00). The condition of such bond shall comply with the Wyoming Conservation Act, the rules and orders of the Commission, and orders of the Supervisor and/or his duly authorized representatives. The obligation of the bond shall not be discharged until the geophysical/seismic company has complied with the Wyoming Conservation Act, the Commission's rules, and the orders of the Commission and Supervisor and/or his duly authorized representatives. Upon verified application, or for just cause, the Supervisor may waive, modify, or increase this bonding requirement for geophysical/seismic companies.

  (j) Persons or other entities that are contracted to plug seismic holes and are not employees of the geophysical/seismic company shall have posted with the Commission a surety bond in favor of the Commission. Said bond shall be on a form prescribed by the Commission and in the amount of ten thousand dollars ($10,000.00). The condition of such bond shall comply with the Wyoming Conservation Act, the regulations of this Commission, the orders of this Commission, the State Oil and Gas Supervisor, and/or his duly authorized representatives. The obligation of the bond shall not be discharged until the independent hole pluggers have complied with the Wyoming Conservation Act, the Commission's rules, and the orders of the Commission and Supervisor and/or his duly authorized representatives. Upon verified application, or for just cause, the Supervisor may waive, modify, or increase this bonding requirement for the independent hole pluggers.

  (k) The client company shall be held responsible along with the geophysical/ seismic company and any independent hole pluggers for conducting the operation in compliance with the Commission's rules and orders, the Supervisor's orders, and the Wyoming Conservation Act, and are subject to the penalties provided by the Wyoming Conservation Act for the failure to comply with such rules, statutes, and orders. Bonds will be attached in the following order:

    (i) For failure to comply with the Wyoming Conservation Act, the Commission's rules, and the orders of the Commission and Supervisor and/or his duly authorized representative governing the proper plugging of holes or other resource damage directly resulting from that activity, the independent hole plugger;

    (ii) For failure to comply with the Wyoming Conservation Act, the Commission's rules, and the orders of the Commission and Supervisor and/or his duly authorized representative governing all geophysical/seismic operations, the geophysical/seismic company; and,

    (iii) For failure to comply with the Wyoming Conservation Act, the Commission's rules, and the orders of the Commission and Supervisor and/or his duly authorized representative governing all geophysical/seismic operations, the client company.

  (l) Client companies will be notified, in writing, when geophysical/seismic companies' and independent hole pluggers' activities have been determined to be in compliance and bonding liability discharged. The client company's bond will be discharged simultaneously with discharge of the geophysical/seismic company's bond.

  (m) Reports. Upon completion of seismic shot hole activity or at thirty (30) day intervals after the work has commenced, whichever occurs first, the geophysical/seismic company shall file with the Commission a report of the completion or progress of the seismic project. The final completion report must include a statement that all work has been performed in compliance with the application for a permit to perform seismic activity and permit provisions and specific conditions of approval, if any. Said report shall be in affidavit form as provided on Form 15A. This final filing shall include a 7.5-minute United States Geological Survey topographic quadrangle map and the location of each shot hole so that the shot holes can be easily located. Upon completion of geophysical activity other than shot hole operations, the geophysical/seismic company shall provide the Commission with verbal or written notice of such completion of the permitted project.

  (n) Said maps, applications, and reports shall be kept confidential by the Commission for a period of five (5) years from the date of receipt, subject to the needs of the Commission to use them to enforce these regulations, the Wyoming Conservation Act, and the orders of the Commission or Supervisor. The Commission staff may advise the affected surface owner of seismic lines and the exploration method used.

  (o) Fresh water flows detected during drilling including seismic, core, or other exploratory holes shall be recorded on Form 19 and reported to the Commission on the next business day. Information contained on the form shall describe the depth at which the sand was encountered, the thickness and the rate of water flow, if known.

  (p) Geophysical/seismic companies shall give the Commission at least twenty- four (24) hours advance notice of shot hole plugging operations, provided that notice of plugging operations planned for Sunday or Monday may be given on the previous Friday.

  (q) Plugging. Bentonite materials used in seismic hole plugging shall be derived from naturally occurring untreated, high swelling sodium bentonite which consists principally of the mineral montmorillonite. Numerical values for physical requirements, a list of equipment and material for testing, testing procedures and recommended guidelines are all found in Appendix H of the Commission's Rules and Regulations. Care shall be taken by the seismic company to ensure bentonite chip placement avoids bridging during placement. The Supervisor may require drill-out, use of alternative materials, or hole abandonment.

    (i) The non-metallic plug used in the plugging of seismic holes shall be imprinted with the name of the geophysical/seismic company responsible for the plugging of the hole. Initials or other identifying marks may be imprinted on the plug with the Supervisor's approval.

    (ii) Unless the geophysical/seismic company can prove to the satisfaction of the Supervisor that another method will provide better protection to groundwater and long-term land stability, seismic shot hole operations shall be conducted in the following manner:

      (A) Seismic shot hole operations will not be conducted within one-quarter (1/4) mile of any building or water well designated for use as a domestic, stock watering, irrigation or municipal well. The provisions of this subsection may be modified by a written agreement between the geophysical/seismic company and the surface owner.

      (B) Vibroseis seismic operations will not be conducted within three hundred (300) feet of any building or water well designated for use as a domestic, stock water, irrigation or municipal well. The provisions of this subsection may be modified by a written agreement between the geophysical/seismic company and the surface owner. The Supervisor may approve a different setback distance for vibroseis only, if Peak Particle Velocity (PPV) studies are conducted simultaneously to establish the safety of a nearer offset distance.

    (iii) Except as provided in subsection (xi), when water is used in conjunction with the drilling of seismic shot holes or when water is encountered in the hole, seismic holes are to be filled with coarse ground bentonite which meets the specifications of the Commission's guideline, Appendix H. Cuttings not added to the hole are to be disposed of in accordance with subsection (r)(iii), Reclamation, of this section. Any other suitable plugging material commonly used in the industry may be substituted, as long as it meets the criteria in Appendix H to these rules, upon approval of the State Oil and Gas Supervisor.

    (iv) The hole will be filled with the coarse ground bentonite from the top of the explosive charge up to a depth above the final water level except where the final water level will be within three feet (3') of the surface. No bentonite shall be placed within three feet (3') of the surface. Cuttings shall be added from the top of the bentonite to the surface. A non- metallic plug of appropriate size will be set at a depth of three feet (3') below surface. Cuttings added above the non-metallic plug shall be tamped.

    (v) When drilling with air only, and in completely dry holes, plugging may be accomplished by returning the cuttings to the hole, tamping the returned cuttings to the above-referenced depth of three feet (3'), and setting the non-metallic plug topped with more cuttings and soil as per subsection (v). Digging a second hole to fill the shot hole above the non- metallic plug, and scraping the surface top soil to fill the shot hole are prohibited. Scraping the surface to acquire cuttings to fill the shot hole is allowed. A small mound will be left over the hole for settling allowance.

    (vi) All shot holes must be plugged on the same day they are drilled and loaded. No shot holes may be left unplugged overnight.

    (vii) The hole shall not be plugged until cap leads have been tested. In the case of bad caps or lead wires, no more than one-half (1/2) charge shall be lowered and tested. The hole shall be plugged in accordance with this section and then detonation shall occur before or during recording stages. Holes that fail to detonate shall be marked as per subsection

  (r) (vi) of this section.

    (viii) If the number of seismic drilling units proposed for a project exceed the Commission's capacity to provide appropriate inspection oversight, the Commission staff reserves the right to limit the number of drilling units to six (6), unless at the Supervisor's discretion, the seismic contractor provides additional independent supervision.

    (ix) There should be a hole plugger for every drill, so that the holes can be plugged immediately after the explosive charge is loaded. Variances to this rule may be approved on a case-by-case basis by the Supervisor.

    (x) If artesian flow (water flowing at the surface) is encountered in the drilling of any seismic hole, coarse ground bentonite certified in accordance with the Commission's guidelines, as found in Appendix H of these rules, will be used to seal off the water flow thereby preventing cross-flow, erosion, and/or contamination of fresh water supplies. Said holes shall be plugged immediately. Cement may be substituted for bentonite with the permission of the Supervisor. No bentonite capsules/tubes shall be used for flowing holes; use a reverse auger to push chips down or other Supervisor-approved method. No flowing shot hole shall ever be loaded with explosive charges.

    (xi) Landowners may assume liability for seismic holes that are capable of conversion to water wells by sending a letter assuming such liability to the Wyoming Oil and Gas Conservation Commission and filing an application for appropriation of underground water with the State Engineer's Office.

  (r) Seismic Reclamation.

    (i) Site reclamation must be initiated within one (1) year of completion of record or bond forfeiture will be initiated as provided under Chapter 3, Section 7 of these rules. For just cause, additional time may be granted on application to the Supervisor.

    (ii) The existing cap leads will be cut off below ground level.

    (iii) Any drilling fluid or cuttings which are deposited on the surface around the seismic hole will be raked or otherwise spread out to at least within one inch (1") of the surface, such that growth of the natural grasses or foliage will not be impaired.

    (iv) All trash, including lathes, flagging, magnets, drilling and plugging materials must be picked up during or following recording.

    (v) All blowouts, rifled out, or surface-damaged shot holes must be repaired immediately during or following the recording state.

    (vi) Any hole that has been loaded and plugged with a charge that has bad caps or leads must be dug down to the non-metallic plug at three feet (3'). One inch (1") rebar material approximately three feet (3') in length must be placed in the hole. The Supervisor may require alternative methods to the rebar to ensure whipstock out of the original hole if seismic hole was ever to be re-entered. The hole must be filled with cement dyed orange in order that it might be recognized as having an undetonated charge in it. The Commission, Bureau of Land Management, landowner/grazing lessee and One Call of Wyoming must be notified and provided the GPS coordinates and the latitude and longitude of the hole.

 Section 7. Waterflooding and Other Recovery Operations.

  (a) Waterflooding and other recovery operations involving the introduction of extraneous forms of energy into any pool, repressuring, cycling or recycling operations, including the extraction and separation of liquid hydrocarbons from natural gas in connection therewith, is permitted only upon order of the Commission, or upon approval of the Supervisor, obtained pursuant to an application therefore filed in accordance with Chapter 5, Rules of Practice and Procedure. This provision is applicable to wells which are proposed to be converted to injection; as well as new wells drilled solely for the purpose of underground injection. Orders authorizing existing injection wells shall remain valid unless revoked by the Commission for just cause. In addition, there is assessed an annual fee of seventy-five dollars ($75.00) on all enhanced recovery wells.

  (b) Injection Well Permits. The applicant shall have the burden of demonstrating that the proposed injection operation will not endanger fresh water sources.

  Injection wells shall be cased and the casing cemented in such a manner that damage will not be caused to oil, gas, or fresh water sources.

  (c) An application for injection shall contain:

    (i) A plat showing the area involved together with the well(s) which includes drilling well(s) and dry and abandoned well(s) located thereon, all properly designated;

    (ii) A list of all lease Operators or Owners and surface owners within a one-half (1/2) mile radius of the proposed injection well(s);

    (iii) An affidavit showing that said lease Operators or Owners and surface owners within a one-half (1/2) mile radius have been provided a copy of the application for injection;

    (iv) A full description of the particular operations for which approval is requested; 

    (v) The pools from which wells are producing or have produced;

    (vi) The name, description, and depth of the pool or pools to be affected;

    (vii) The log of the injection well(s), or such information with respect thereto as is available;

    (viii) A description of the casing of the injection well, or the proposed casing program, and the proposed method for testing casing before use of the injection wells;

    (ix) A statement as to the type of fluid to be used for injection, its sources, and the estimated amounts to be injected daily. The Commission's Form 17 (Water Analyses Report) illustrates the minimum parameters for which water must be analyzed. Other reporting formats which include this minimum information may be accepted;

    (x) The average and maximum injection pressure;

    (xi) Evidence and data to support a Commission finding that the proposed injection well will not initiate fractures through the overlying strata or confining zone which could enable the injection fluid or formation fluid to enter the fresh water strata;

    (xii) Standard laboratory analyses of the water to be injected and the water in the formation into which fluid is being injected. The method of water analysis is subject to review by the Commission or the Supervisor;

    (xiii) The name and address of the Owner/Operator;

    (xiv) A reference to the Commission order exempting the aquifer that is to receive the fluid;

    (xv) The applicant shall provide for a one-quarter (1/4) mile radius of investigation for mechanical conditions of all wells which have penetrated the injection zone surrounding a proposed injection well. Specifically known and documented geological features may limit the need to review all wells within a one-quarter (1/4) mile radius; and,

    (xvi) The depth and areal extent of all usable fresh and potable water (USDW) underlying the area proposed for exemption.

  (d) Injection Well Integrity Demonstration. For the purpose of this rule, a mechanical integrity test of an injection well is a test designed to determine:

    (i) If there is a significant leak in the casing, tubing, or packer of the well; and,

    (ii) If there is significant fluid movement into an underground source of drinking water through vertical channels adjacent to the wellbore.

  (e) Mechanical integrity must be established by the Owner or Operator no less than once every five (5) years. A mechanical integrity test shall include one of the following tests to determine whether significant leaks are present in the casing, tubing, or packer:

    (i) The Owner or Operator may test the casing-tubing annulus above the packer at the greater of a minimum pressure of three hundred (300) psi or a pressure equivalent to the maximum injection pressure, but no higher than one thousand (1,000) psi. For the purpose of pressure testing, packers or bridge plugs must be set within one hundred feet (100') of perforations. A retrievable bridge plug may be utilized in casing to test tubingless completions. Owners/Operators must provide the Commission staff the opportunity to witness all integrity tests. In the event a representative of the Commission is unable to witness the test, the Owner or Operator is required to provide documentation of the test to the Commission; or,

    (ii) As an alternative to the pressure test, the Owner or Operator may use any test or combination of tests approved by EPA.

  (f) The initial mechanical integrity test for all injection wells shall include one of the following tests to determine whether there are significant fluid movements in vertical channels adjacent to the wellbore:

    (i) Cementing records which shall only be valid for injection wells in existence prior to present date;

    (ii) Tracer surveys;

    (iii) Cementing records with a cement bond log or other acceptable cement evaluation log;

    (iv) Temperature surveys;

    (v) In lieu of (i) through (iv), any other test or combination of tests approved by EPA.

  (g) As provided in Chapter 2, Section 6 of these rules, if normal testing, surveys, or monitoring schedules provide inconclusive proof of mechanical reliability, the Commission shall require that other appropriate logs, or additional well tests be performed.

  (h) All injection wells are required to maintain mechanical integrity as defined by these rules. Any well which fails a mechanical integrity test, or which has been determined through other means to not have mechanical integrity, within ninety (90) days of the failure or determination, must be repaired and retested or plugged and abandoned. For just cause, in order to continue injection operations or to extend the deadlines for repairing or plugging the wells, Owners or Operators may request variances. To be approved, these requests must demonstrate that the leaks do not pose a threat to any underground sources of drinking water.

  (i) New Owners are obligated to carry out previously approved programs in the manner originally approved. Change of ownership must be filed in accordance with Chapter 3, Section 14 of these rules.

  (j) Modifications or variances of existing or pending injection operations may be approved by the Supervisor under Chapter 3, Section 10 of these rules upon application containing sufficient detail for the Supervisor to evaluate the proposed modification. Permits for remedial work under this section are only valid for ninety (90) days, but can be extended on request by the Operator's filing a Sundry Notice (Form 4) with the Supervisor assuming there has been no change in geologic, regulatory, or environmental situations. No such variance shall be approved unless the applicant proves to the Supervisor or the Commission that the variance will not endanger fresh water.

  (k) The Commission shall publish notice of the injection application fifteen

      (15) days before approval in a newspaper of general circulation in Natrona County, and in a newspaper of general circulation in the county in which the injection well is located.

  (l) Injection operations must commence within one (1) year of the approval date of the injection application or the approval shall be null and void.

  (m) No later than January 1, 2005, injection wells shall be equipped with operable pressure gauges, calibrated at all times to industry standards and manufacturer's specifications for the instrument used, on the tubing and on the casing-tubing annulus, or set up in such a way that the company representative can connect gauges to the well to determine pressure on the tubing and casing-tubing annulus. Accurate gauges shall also be placed on any other annuluses as deemed necessary by the Supervisor. Variances may be administratively approved for good cause shown.

 Section 8. Casing and Cementing of Injection Wells.

  (a) Wells used for injection of gas, air, water, or other extraneous fluid into the producing formation shall be cased with safe and adequate casing or tubing so as to prevent leakage, and shall be so set or cemented that damage will not be caused to oil, gas, or fresh water sources.

  (b) The provisions of Chapter 3, Section 22 of these rules, shall apply to all injection wells.

  (c) Before a new well drilled for injection or disposal is operated, the casing outside the tubing shall be tested at the greater of a minimum pressure of three hundred (300) psi or a pressure equivalent to the maximum injection pressure, but no higher than one thousand (1,000) psi. For the purpose of pressure testing, packers must be set within one hundred feet (100') of perforations. The same rules apply to testing existing wells newly converted to injection or disposal. Operators must provide the Commission staff the opportunity to witness all integrity tests. In the event a representative of the Commission is unable to witness the test, the Operator is required to provide documentation of the test to the Commission. A retrievable bridge plug will be utilized in casing to test tubingless completions.

 Section 9. Notice of Commencement/Discontinuance of Injection Operations.

  (a) The following provisions shall apply to all injection operations:

    (i) Immediately upon the commencement of injection operations, the Owner/Operator shall notify the Supervisor of the injection date;

    (ii) Within ten (10) days after the discontinuance of injection operations, the Operator shall notify the Supervisor of the date of such discontinuance and the reasons therefore; and

    (iii) Before any injection well shall be plugged, notice shall be given the Supervisor by the Owner/Operator of said well.

 Section 10. Report of Subsurface Injections (Forms 2, 16A & 16B).

 Whenever any Owner/Operator shall inject water, air, gas, or any substance into a pool for any purpose (excluding fracturing, acidizing, or other similar treatment elsewhere required to be reported on Form 4), he shall report to the Supervisor the type and source of the injected substance, the total amount injected, and the injected pressures and casing-tubing annulus pressure during injection if the Owner/Operator elects the monitoring test requirements of Section 7 of this chapter on a monthly basis. Computerized forms submitted in lieu of Form 2 or Forms 16A and/or 16B must contain the same information as that required on the forms and must be approved for format by the Commission staff. Enhanced recovery projects shall be reported on Form 2 and disposal well operations shall be reported on Form 16A or Form 16B.

 Section 11. UIC Variances.

 The Supervisor shall have the latitude to grant variances to the regulations for standard fresh water protection for good cause and to provide that unnecessary hardship not be imposed. No such variance shall be approved unless the applicant proves to the Supervisor, if no hearing is necessary, or to the Commission, if a hearing is necessary, that the variance will in no way endanger fresh water.

 Section 12. Aquifer Exemption.

  (a) An aquifer which contains fresh and potable water may be exempt from the definition in Chapter 1, Section 2 (a), if the Commission by order, after due and legal notice and public hearing, determines any of the following criteria exists:

    (i) It is mineral, hydrocarbon, or geothermal energy producing;

    (ii) It is situated at a depth or location which makes recovery of fresh and potable water economically or technologically impractical;

    (iii) It is so contaminated that it would be economically or technologically impractical to render the water fit for use as fresh and potable water;

    (iv) It is located over a mining area subject to subsidence or catastrophic collapse; or,

    (v) It has a total dissolved solids (TDS) of more than five thousand (5,000) and less than ten thousand milligrams per liter (10,000 mg/l) and is not reasonably expected to be used as fresh or potable water.

  (b) Interested parties wishing to have an aquifer exempted must submit to the Commission an application which includes sufficient data to justify the proposal. At a minimum a structure or isopach map, geologic description, and legal description of the area to be exempt needs to be filed. The Commission will provide thirty (30) days legal notice prior to a public hearing on the matter.

 Section 13. Natural Gas Processing Facilities and Pits.

  (a) Any person, corporation, or company desiring to construct, close and reclaim a pit or tinhorn used for the storage and disposal of waste associated with infield gas processing and gas gathering in Wyoming must apply for and receive permission to do so from the Commission before construction and/or closure activities commence.

  (b) Any person, corporation, or company desiring to abandon a gas processing facility associated with infield gas processing and gas gathering in Wyoming must apply for and receive permission to do so from the Commission before closure activities commence.

 Section 14. Open Pit Storage of Oil.

 The Owner/Operator shall not, except during an emergency, permit oil to be temporarily stored or retained in earthen reservoirs or in any receptacle in which there may be undue waste of oil.

 Section 15. Production Facilities and Natural Gas Facility Equipment and Flowline Abandonment.

  (a) An Owner/Operator of a well or wells shall notify the Supervisor of all above and below ground flowlines and vessels, including tanks, if the flowlines or vessels are not used for a period of two (2) years. After consideration of the relevant circumstances, the Supervisor on a case-by-case basis, may require the flowline or facilities to be purged with fresh water or inert gases, drained and depressured. The Owner/Operator shall provide notification of the purging operation to the Supervisor or Authorized Agent.

  (b) The Supervisor may require the Owner or Operator to abandon and/or remove all above ground piping. If flowlines or facility piping are removed, the removal shall be done in a manner that prevents the escape of fluids, that is:

    (i) Purge with fresh water or inert gases, drain and depressure; then,

    (ii) Seal the line or cap at both ends. If not removed, the Owner or Operator will be required to mark remaining piping to identify as purged piping.

  (c) If underground flowlines or facility piping are abandoned in place, the Owner or Operator shall meet the following requirements:

    (i) Purge with fresh water or inert gases, drain and depressure the flowline and piping;

    (ii) Seal the line or cap at both ends; and,

    (iii) Bury at least twenty-four inches (24") below the surface and restore the surface contour, unless the Supervisor or the surface land owner agrees otherwise in writing.

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