Brine Mining Permit Procedures

Administrative Review

This part of the permit review verifies that all rule and statutory requirements have been met for a permit to be issued. 

Application Forms

• Form H-2 (Brine Mining Injection Well, Rule 81)

Fees and Surcharges

• $500 for each brine mining injection permit application (Rule 81) filing fee per wellbore ($200 application fee plus $300 surcharge)

These fees are non-refundable. 

Where to File

File the original with Technical Permitting in Austin.

Preliminary Review

• Organization Report (Form P-5) – The applicant must have a current organization report on file with the Commission.   The Commission's mainframe database is checked to verify that the organization report is on file and current.
• Certificate of Compliance (Form P-4) – The applicant must be the current operator of the lease. If a Form P-4 has been filed on the lease, the applicant must be shown as the operator on the current Form P-4.  For a new lease, the operator will be required to file Form P-4 along with the completion report (Form W-2/G-1) on the injection/disposal well.
• Injection/Disposal Well Inventory – The Commission's mainframe database is checked to determine whether the application is for a new permit or an amendment of an existing permit. This check determines which application attachments are required. All attachments are required when filing for a new permit; others may not be required depending on the type of the amendment. 
• Compliance with Permit Conditions – For amended applications, information required by permit conditions may be reviewed.  This check will determine whether the operator may be required to submit any information required as a monitoring or operating condition of the existing permit.

NOTE: Permit applications will be administratively denied if the subject well is under pipeline severance or seal-in for Rule or permit violations on that well. This consideration does not apply to permit amendment applications that, if granted, would return the subject well to compliance.

Application Attachments

Attachments for New Brine Mining Permit Applications

Well Log

1. A complete geophysical log of the subject well or offset well is required.
   • The log must include a header and show the proposed disposal/injection zone.
   • Driller's logs, caliper logs and collar logs are not adequate. If a geophysical well log is not available for the proposed brine mining well, the applicant may submit a log of a nearby well and identify the logged well on one of the plats submitted with the application.
2. The log must be annotated with all recognizable geologic formations between the land surface and the top of the salt formation and the depths at which they occur.  Absence of annotations that may be expected in review of the general stratigraphic column may result in a finding that the annotated log is deficient.

Groundwater Depth Determination Letter (GAU Letter)

Statewide Rule 81(d)(I): You must provide a letter from the Groundwater Advisory Unit (GAU) of the Oil and Gas Division stating the depth to which fresh water strata should be protected.

Area of Review

The purpose of this requirement is to identify any wells near the proposed injection well which may provide an avenue for migration of fluids out of a cavern in the facility. The following are required:

1. A map of all wells within a ¼-mile radius of each well at the facility;
2. A map identifying any nearby salt formation storage facilities if they have storage cavities extending within ¼ mile of the facility; and
3. A map indicating the areal footprint of each cavern at the facility

   Map Guidelines:

   • Use a current map.
   • Use a legible map clearly showing operator names, lease names, and well numbers.
   • Draw 1/4 mile radius around the well, wells (multi-well applications), or lease (area permit applications).
   • Always provide map scale.
   • Be able to distinguish wells with same numbers.

   RRC Mapping Database:

   The RRC Public GIS Map Viewer is the system that RRC staff will use to verify that all wells within a 1/4-mile radius have been examined.

   • The interface allows you to locate the well by API number, Lease Id number, Survey or GPS coordinates.
   • You may also navigate by zooming in using landmarks such as cities and highways.
   • You may use the "MAP TOOLS" function to to either navigate, identify wells, surveys or draw a 1/4 or 1/2 mile circle around the subject well.
     
     
4. A table of wells within the 1/4-mile radius that penetrate the caprock is required. For each well, list the well name and number, date drilled, and current status, including the date plugged if applicable. 

   Table of Wells Guidelines:

   • List all wells within 1/4 mile radius around the well, wells (for multi-well applications), or lease (for area permit applications) that penetrate the top of the proposed injection zone.
   • For each well, show the well names, well numbers, API numbers and Total Depth.
   • For each well, show date drilled, current status, and date plugged (if applicable).
   • Include a copy of the plugging report for any wells plugged prior to January 1, 1967.
   • If records are not readily available for any plugged wells, include copies of the plugging report to expedite processing.
   • If space allows, the Map and Table of wells within the 1/4-mile radius can be combined.

Notice

The notification process ensures that all affected parties are informed and have opportunity to protest the permitting of the proposed brine mining injection well. The following attachments are required:

1. A plat showing the oil and gas operators of the tract on which the facility is located and the tracts adjacent to the tract on which the facility is located. On the plat or on a separate sheet attached to the plat, the applicant shall list the names and addresses of the oil and gas operators;
2. A plat showing the surface ownership of the tract on which the facility is located and the tracts adjacent to the tract on which the facility is located. On the plat or on a separate sheet attached to the plat, the applicant shall list the names and addresses of the surface owners, as determined from the current county tax rolls or other reliable sources, and shall identify the source of the list. If the director determines that, after diligent efforts, the applicant has been unable to ascertain the name and address of one or more surface owners, the director may waive the requirements of this subparagraph with respect to those surface owners.
3. A draft permit will be prepared when the director tentatively decides to issue a permit; or to modify, or revoke and reissue a permit. Following issuance of the draft permit, notice of the application must be published once by the applicant in a form approved by the Commission in a newspaper of general circulation in the county where the well is located. The draft permit will be accompanied by the information required to be stated in the publication. The following information must be submitted with the application:
   • Affidavit of publication. The affidavit must be notarized and must state that the newspaper has general circulation in the county where the well is located.
   • Newspaper clipping.

   Publication Guidelines:

   • Include Formation Name(s).
   • Include the Field and Lease Name(s).
   • Include the Well Number(s).
   • The subsurface cavern depth interval must be consistent with the information in the application.
   • For applications including more than one well, use the top of the shallowest and the bottom of the deepest interval for the subsurface depth interval.
   • Notice must be published at your expense after the application has been approved for publishing by UIC staff.
   • The newspaper need not be in the same county as the well, but must have general circulation in that county.
   • The legal authority paragraph must be included in the publication.
   • The notice must contain instructions for persons who wish to protest the application or who wish to request further information concerning the application.

Description of Salt Cavern Development Process

1. Injection procedure and rates
2. Type and composition of displacement fluid
3. Methods used to monitor and control boundary and shape
4. Method of circulation
5. Use of blanket material, if applicable

Plugging Procedure

1. Provide the plugging and abandonment procedure for each well in the application.
2. State the composition of fluid to be used to fill cavities.

Mechanical Integrity Testing Procedure

Describe the proposed mechanical integrity testing procedure. Include preparation procedures, test pressures, test duration, and means of recording.

NOTE: Notwithstanding this application attachment, the following applies to any future mechanical integrity test to be performed on the well or proposed well:

• The operator shall submit a written test procedure to the commission in Austin at least 15 days before the test.
• The operator shall notify the district office orally at least 48 hours before the test.

Technical Review

Surface Casing

This part of the permit review verifies that groundwater is adequately protected.

• For new wells, surface casing must be set to the protection depth determined by the Groundwater Advisory Unit of the Railroad Commission of Texas and cemented to the surface.
• The operator must set and cement surface casing in accordance with the letter obtained from the GAU stating the depth to which freshwater strata should be protected, regardless of the total depth of the well. See 16 Tex. Admin. Code § 3.81(g)(4)(B).
• No alternative program for setting less surface casing will be authorized. 16 Tex. Admin. Code § 3.81(g)(4)(B).
• Staff cannot authorize surface casing exceptions for brine mining wells.
  • If an existing well has been completed as a brine mining injection well without surface casing through the base of usable-quality water, pursuant to a brine mining injection permit issued after the effective date of Statewide Rule 81, an enforcement action will be initiated. Staff will ask the Legal Enforcement Section to seek compliance with the surface casing requirements, which will require, at a minimum, a remedial plan or a more stringent monitoring plan.
  • Ongoing injection into a well that does not have the required surface casing may require approval from the US EPA.

Long String Casing

This part of the permit review verifies that the production casing is adequately cemented to confine injected fluids to the proposed injection zone.

• The long string casing must be cemented in accordance with Statewide Rule 13.
• In addition to the requirements of Statewide Rule 13, the long string casing must be installed in a manner that will be satisfactory of the following burden of proof of the mechanical integrity test:

  Statewide Rule 81(f)(16)(E): "One of the following methods shall be used to demonstrate the absence of significant fluid movement into fresh water strata through vertical channels adjacent to the wellbore: ... (i) the results of a temperature or noise log; or (ii) where the nature of the casing precludes the use of the logging techniques prescribed in clause (i) of this subparagraph, cementing records demonstrating the presence of adequate cement to prevent such movement."

• The long string casing must be set into the salt formation. The operator is responsible for selecting a setting casing deep enough to ensure stability of the roof.

NOTE: In verifying cement top calculations, our staff assumes Class A cement with no volume extenders unless the application indicates otherwise.  A washout factor is used in the calculations (30% along the Gulf Coast, and 20% inland).

Geological Requirements

This part of the permit review verifies that fluids injected into the proposed injection well will be confined to the proposed solution mining interval.

• The interval overlying the salt formation must provide sufficient confidence that upward growth of the cavern roof will not occur in an uncontrolled manner.

Area of Review

This part of the permit review verifies that all wells within the area of review are adequately plugged to ensure that the cavern is not negatively affected by an existing wellbore. The operator is responsible for demonstrating that the footprint of the cavern is adequately separated from any existing wellbore.

Tubing

This part of the permit review verifies that the solution mining configuration meets acceptable industry standards as required by Statewide Rule 81.

• Brine mining injection wells permitted under Statewide Rule 81 do not require a packer.
• In salt dome formations, an acceptable roof blanket program must be implemented in the well.
• In bedded salt formations in which the solution mining is conducted with a single tubing string and no roof blanket, through-tubing injection is required. Top injection will not be approved.
• In bedded salt formations, the operator must have, and be able to demonstrate, sufficient confidence that the overlying geology will prevent destabilization or uncontrolled upward growth of the cavern roof.

Injection Pressure

This part of the permit review verifies that the proposed injection pressure does not exceed the maximum pressure allowed to be exerted on the salt formation.

The permitted surface pressure must not result in the downhole pressure at the long string casing shoe exceeding a gradient of 0.8 psi/ft on the brine production conduit part of the well completion. The gradient should be calculated using density of saturated brine.

Groundwater Monitoring

This part of the permit review verifies that the appropriate monitoring is in place to verify that the brine mining injection operation does not result in fluids escaping from the solution mining interval; and is part of the burden of proof of the mechanical integrity test (MIT).

The burden of proof of the MIT is to demonstrate that:

• there is not significant leak in the casing; and
• there is no significant fluid movement into fresh water strata through vertical channels adjacent to the wellbore

An MIT is therefore a two-part test. Part one of the MIT [SWR 81 (f)(16)(A)(i)] which verifies no significant leak in the casing (and is typically satisfied by a fluid pressure test) does not satisfy the second half of the MIT to demonstrate the absence of significant fluid movement into fresh water strata through vertical channels adjacent to the wellbore. [SWR 81 (f)(16)(A)(ii)].

For the second part of the MIT, an operator may demonstrate that there is no significant fluid movement by running a temperature or noise log [SWR 81 (f)(16)(E)(i)]. Where the nature of the casing precludes the use of the logging techniques, cementing records may be used to verify the absence of significant fluid movement [SWR 81(f)(16)(E)(ii)]. However, UIC staff has been advised that the monitoring required by SWR 81 (f)(10) must be designed to verify the absence of significant fluid movement if the operator uses cementing records to demonstrate no significant fluid movement [Code of Federal Regulations § 146.8 (c)].

To demonstrate there is the absence of significant fluid movement, one must know the local groundwater gradient. This allows the operator to know which monitor wells are upgradient and downgradient of the brine mine and, therefore, which wells will show an increase in salinity if the brine mining well loses mechanical integrity. Determining the local groundwater gradient requires a minimum of three monitor wells.

Therefore, the application must include a groundwater monitoring system designed to verify the absence of significant fluid movement, including, at a minimum, three groundwater monitoring wells.

Alternatively, the operator may agree to perform a temperature or noise log at least once every five years. If temperature or noise log is agreed to, one or the other is required before any amended permit can be issued.

Monitoring Wells

All applicants must submit a proposed groundwater monitoring plan (or an alternate plan) to demonstrate that fluids are not escaping from the permitted injection zone. 16 Tex. Admin. Code § 3.81(d)(4)(Q). The monitoring program must be designed to verify the absence of significant fluid movement. CFR § 146.8 (c). The groundwater monitoring plan (or alternate plan) must comply with the requirements detailed in Statewide Rule 81(f)(10)(A)-(C).

Minimum number of monitor wells:

• New brine mining wells: Staff will include a permit condition (detailed in the last section of this document) that requires a minimum of three monitor wells to confirm groundwater gradient direction and the downgradient monitor well.
• Existing brine mining wells: Staff will review all applications for modification to existing brine mining wells to determine if additional monitor wells are required to demonstrate that fluids are not escaping from the permitted injection zone. See 16 Tex. Admin. Code § 3.81(b)(2).
• Staff will require operators of existing brine mining wells to install a minimum of three monitor wells if it determines additional monitor wells are required to demonstrate that fluids are not escaping from the permitted injection zone. 16 Tex. Admin. Code § 3.81(f)(6) (“The permit may be modified, revoked and reissued, or terminated for cause. The filing of a request by the operator for a permit modification, revocation and reissuance, or termination, or a notification of planned changes or anticipated noncompliance does not stay any permit condition.”).