The Injection Connection: A Regulatory Framework for Geologic Sequestration of Anthropogenic Carbon...

The Injection Connection: A Regulatory Framework for Geologic Sequestration of Anthropogenic Carbon Dioxide

2010 Diane PerkinsAll Rights Reserved

Geologic Sequestration of Anthropogenic Carbon Dioxide

The process of injecting CO2

captured from an emission source (such as a power plant or industrial facility) into deep subsurface rock formations for long-term storage.

Reay, Dave and Michael Pidwirny (Lead Authors); Jay Gulledge and Sidney Draggan (Topic Editors). 2010. "Carbon dioxide." In: Encyclopedia of Earth. Eds. Cutler J. Cleveland (Washington, D.C.: Environmental Information Coalition, National Council for Science and the Environment). [First published in the Encyclopedia of Earth September 27, 2006; Last revised January 3, 2010; Retrieved March 22, 2010]. <http://www.eoearth.org/article/Carbon_dioxide>

CO2/Temperature on the Rise

Kitchen, John, CO2 Research in the Institute for Advanced Energy Solutions, 6-24-10, www.cmu.edu/steinbrenner/.../co2-iaes-research-kitchin-steinbrenner-AM3.ppt

Sources of Anthropogenic Carbon Dioxide

U.S. Department of Energy, 2008, Carbon Sequestration Atlas of the United States and Canada, second edition; National Energy Technology Laboratory, Office of Fossil Fuels, p.17.

Why Geologic Sequestration Now?

CO2 designation as pollutant Greenhouse Gas Rule Class Action Litigation Pending Congressional legislation

CO2 Emission Reduction Solution that Rocks:

Geologic Sequestration is one solution to removing excess CO2 from the atmosphere.

Technically feasible CO2 stored/possibly recoverable for re-

use Geologic storage safely used for

storage of natural gas

And the process begins…..

EPA initiated series of technical workshops in 2005 through 2008 Reservoir Modeling and Simulation Risk Assessment Site Characterization for Storage State Regulators Workshop Well Construction and Mechanical

Integrity Geologic Setting and AOR

Considerations Measurement, Monitoring and

Verification

EPA also held:

Two stakeholder workshops (2007 and 2008)

A series of public webinars on financial responsibility

Two public hearings; one concerning a Notice of Data Availability (NODA) the other concerning proposed regulations.

EPA Proposed RulesJuly 25, 2008

o EPA proposed rules for geologic carbon sequestration under the Safe Drinking Water Act (SDWA), Underground Injection Control (UIC) Program.

EPA Working on Final Rule

Issued a Notice of Data Availability (NODA), August 2009-Key scientific research, pilot project findings and technical issues not addressed in 2008 proposed rule.

Final rule anticipated late 2010/early 2011.

Well Classed Class I- Inject hazardous wastes or

industrial non-hazardous, municipal wastewater beneath lowermost USDW

Class II-Inject fluids in connection with conventional oil or natural gas production

Class III-Mineral extraction

EPA proposal creates new class of injection well

Class IV-Inject hazardous or radioactive waste into or above USDW

Class V-All other wells that inject non-hazardous fluids above or below USDW, experimental technology wells

Class VI-Geologic Sequestration wells

UIC Program Primacy 33 States have primary enforcement authority (primacy) for

the UIC program; EPA and States share program implementation in 7 States; EPA directly implements the entire UIC Program in 10 states

UIC in Texas

Texas Commission on Environmental Quality (TCEQ) has primacy for Class I, III, IV and V wells.

Texas Railroad Commission (RRC) has primacy for Class II wells.

Texas Senate Bill 1387, 81st Legislature (Regular Session 2009) 9-1-2009

Texas RRC delegated jurisdiction over over the injection of anthropogenic carbon dioxide into productive formations and saline formations for the purpose of geological storage;

Requires RRC to develop rules;

Requires coordination with TCEQ;

Requires RRC, TCEQ and UT-BEG to report to legislature the appropriate agency to regulate long-term storage of carbon dioxide into non-oil, gas producing formations;

Texas Senate Bill 1387, 81st Legislature (Regular Session 2009)

Requires GLO, RRC, TCEQ and BEG to develop recommendations for managing geologic storage on state-owned lands; storage capacity, legal and regulatory frameworks;

Directs that the storage owner owns the anthropogenic CO2 in storage and authorizes the RRC to regulate the withdrawal of CO2;

Directs that RRC rules be “consistent” with USEPA and requires RRC to seek enforcement primacy for the program.

Why RRC?

History

Experience

Why RRC?

Enhanced oil and gas recovery operations will remain regulated as Class II wells.

RRC has extensive knowledge of oil and gas reservoirs in Texas (contained oil/water/gas for millions of years).

RRC proposed rules March 26, 2010

16 TAC Chapter 5 Comment period ended 4/26/2010

TCEQ Regulatory Role

TCEQ will review application; AoR, corrective action plans, monitoring requirements, post-injection site care plans.

Provide “impact” letter to RRC.

No specified timeframe review of application documents.

TCEQ Proposed Rules March 3, 2010

TCEQ created new Subchapter N in Chapter 331 to implement SB 1387.

Rule adopted 8/20/2010. Anticipated publication of final rule September 10,2010.

Foundation for EPA Proposed Rules

To develop Class VI proposed regulations, EPA used the Class I UIC (Hazardous Waste) regulations as a starting point.

But added rules that covered special considerations of: Large volumes of gas to be injected; Buoyancy of fluid; Viscosity (mobility) of gas; Corrosivity of CO2.

EPA punted question of whether anthropogenic CO2 is hazardous waste

: “EPA cannot make a categorical determination as to whether injected CO2 is hazardous under RCRA. Owner or operators will need to characterize their CO2 streams as part of their permit application…”

But CERLA……

Federally permitted releases (including SDWA-UIC) are exempted from CERCLA liability.

Permits must be “structured” so they do not “authorize” inappropriate hazardous releases. CO2 may contain hazardous substances,

i.e. mercury; CO2 may react with groundwater or

formation to form sulfuric acid or release heavy metals into solution.

EPA Proposed Rules

UIC Program Elements Site Characterization Area Of Review Well Construction Well Operation Site Monitoring Post-Injection Site Care Public Participation Financial Responsibility Site Closure

Site Characterization Basic requirements for Industrial UIC

Wells

Injection zone that can accept fluids Confining zone (system) above the

injection zone, that contains all fluids Owners and Operators submit

information on the following: Structure and stratigraphy Seismicity Baseline geochemistry

EPA Proposed Rules Director has discretion to require

identification of additional confining zones

Additional zones may be used for: Pressure dissipation Monitoring

Confining Zone

Injection Zone

USDWs

Area of Review (AoR)- The region surrounding the project that may be impacted by injection activity.

Basic requirements for Industrial UIC Wells Delineate the AoR (2 mile

radius); Identify and evaluate all

artificial penetrations and other features that may allow upward migration of fluids;

Plug and or remediate as appropriate.

EPA Proposed Rules Use computational modeling

to determine AoR radius; AoR reevaluation at a

minimum of every 10 years.

Well Construction

Basic requirements for Industrial UIC Wells Well components

engineered to ensure protection of USDWs Cased and cemented to

prevent movement of fluids into an USDW;

Surface casing and long string casing ;

Tubing and packer.

Annulus Packer

Tubing

Long-string casing

Cement

Wellhead

Surface casing

Well Construction (continued)

EPA Proposed Rules Inject below the lowermost USDW Long-string casing cemented in

place for entire length Surface casing installed and

cemented through the base of the lowermost USDW

Well materials must be compatible with injectate and formation fluids

Well Testing and Operation Basic requirements for Industrial UIC

Wells Procedures to ensure integrity of the well

before, during, and after injection Injection may not fracture injection

zone Monitor injection pressure, flow rate

and volumes, and the nature of the injected fluid

Perform mechanical integrity tests

EPA Proposed Rules Continuous internal well mechanical

integrity tests (MIT) and annual external MITs

Injection pressure should not exceed 90 percent of fracture pressure in the injection system

Site Monitoring

EPA Proposed Rules

Tracking of the plume movement and pressure front is required, but techniques, frequency, and spatial resolution are not specified;

Surface-air and soil-gas monitoring are at the Director’s discretion.

Post-Injection Site Care EPA Proposed Rule

Post-injection site care is set at 50 years; however, it may be modified with a demonstration that the plume has stabilized and the pressure has dissipated sufficiently

Well-plugging materials must be compatible with CO2 stream

Liability stays with the owner/operator

Public Participation

EPA Proposed Rule 30-day comment

period for permits following public notice

Preparation of a responsiveness summary for the public record

Financial Responsibility

Basic Requirements for Industrial UIC Wells Show financial responsibility for well

plugging, corrective action, and for nominal site closure care

EPA Proposed Rule Demonstrate and maintain financial

responsibility for post-injection site care, site closure, and emergency and remedial response

RRC Proposed Rules (Synopsis)16 TAC Chapter 5

RRC proposed rules are consistent with EPA’s but contain some elements that are more detailed than EPA’s proposed rules.

16 TAC 5.203- Application and Well Construction Specifics

AoR based on computational modeling for three periods. Five years after initiation of injection; Initiation of injection to end of injection; Initiation of injection to 10 years after

injection.

16 TAC 5.203-Well Construction

Requires used of technology (i.e. radial cement bond log) to verify radial integrity and location of cement to prevent endangerment of USDW.

Sampling plan for well construction (logging, sampling, testing) required.

RRC performance requirements vs. EPA specific tests (§146.87).

16 TAC 5.203 (h)- Mechanical Integrity

Section 5.203(h) requires: Injection well testing after any

workover that disturbs seal of tubing packer and casing

Well testing at least every five years Applicant must submit mechanical

integrity testing plan.

16 TAC 5.203(i)-Injection Pressure

“Maximum injection pressure is determined based on formation tensile failure and is set to avoid initiation or propagation of fractures in the confining zone.”

16 TAC 5.204- Public Notice

Requires use of website to post complete application;

Notice required for surface owners, groundwater conservation district, mineral leaseholders and surface leaseholders within ½ mile of outermost boundary of AoR.

Summary EPA Final Rules anticipated late

2010/early 2011; In Texas, RRC primary agency

for permitting Class VI wells with support from TCEQ;

RRC proposed rules similar to EPA’s but more stringent for certain rules;

RRC required to seek primacy for program from EPA.

The Injection Connection: A Regulatory Framework for Geologic Sequestration of Anthropogenic Carbon...

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