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Minutes - 2016 - City Council - 08/29/2016 - Special11 PT THE CITY OF EAGLE CITY COUNCIL TOWN HALL MEETING GiE Special Meeting Minutes Eagle City Hall, 660 E. Civic Lane August 29, 2016 6:30 p.m. 1. CALL TO ORDER: Meeting called to order at 6:30 p.m. 2. ROLL CALL: Present: KUNZ, PRESTON, SOELBERG. Absent: BASTIAN. A QUORUM IS PRESENT. Mayor leads the audience in the pledge of allegiance. 3. SUMMARY OF ACTIONS FROM PREVIOUS TOWN HALL: Mayor Ridgeway notes that at the previous meeting the two major topics of discussion were oil drilling and oil leases and the City's budget for 2016-2017. States that the Department of Lands is holding public meetings regarding gas and oil extraction and they have invited officials from the State of Utah. Ridgeway also notes that the budget for 2016-2017 was approved this month. Mayor Ridgeway states that another concern that was expressed at the last meeting was regarding hunting along the river. Zoning Administrator Vaughan is asked to provide an update on that matter. Zoning Administrator Vaughan explains the procedure to annex property into Eagle City limits and conveys that the application in process with the City. The land use application is anticipated to be before the Planning and Zoning Commission in September and Eagle City Council in November. Both public hearings will be noticed in the newspaper and to property owners within 300 feet of the subject area will receive a mailing. If the annexation is approved, then the City ordinance against the discharge of firearms within city limits would be enforceable. It should all be in place by the end of November. Staff will work to post signage in the area indicating such once the annexation process is completed. Council President Kunz reports on an Ada Count Highway District meeting he attended last week. He relayed a letter to ACHD on behalf of the City, pertaining to roundabouts on Floating Feather Road. It is the Kunz's understanding that an alternative analysis will take place by ACHD, and at that time the City and its residents will have an opportunity to provide input as part of the process. Discussion. 4. TOWN HALL MEETING: The City of Eagle is pleased to invite all Eagle residents to attend the town hall meeting. The Mayor and City Council welcome your input and look forward to answering any questions that you may have. Have a suggestion? We'd love to hear from you! Like what's happening? Great! Let us know! Have a concern... we want to hear those as well! We wish this to be an open discussion inspired by the interests of all of the people of our wonderful community. Stop by to visit with your elected officials. Out of courtesy for all who wish to speak, each speaker should limit their presentation to three (3) minutes. If time permits, and after all attendees who wish to address the City Council have done so, the City Council may invite rebuttals or engage in additional discussions with the attendees. Page 1 of 4 Each speaker is to be treated with the utmost respect, courtesy and afforded the right to speak without interruption. The intent of our town hall meeting is to create a friendly community spirited forum where by the Eagle community may express their views openly and freely. May we suggest this is a gathering of neighbors openly speaking with neighbors, and we hope everyone will feel welcome to participate. Joe Kozfkay, 3110 S. Powerline in Nampa, Idaho. Mr. Kozfkay is a Regional Fisheries Manager with Idaho Fish and Game. Fish and Game believes that the pond at Merrill Park would function well as a community fishing pond and has the potential to enhance the fishing opportunities for young anglers. Mr. Kozfkay estimates it would bring in 4,000-5,000 anglers a year. They would like to work with Eagle River and the City to enhance pathways and perhaps install fishing docks. Discussion regarding facility enhancement, assumption of liability, fundraising, and potential partnership opportunities. Mayor Ridgeway provides information regarding the agreement currently in place between the City of Eagle and Eagle River LLC. The agreement grants limited access to Eagle residents allowing them to fish off of the two platforms that are approximately 10-15 yards from the pond. The agreement prohibits access around the lake. Discussion. Mathew Turner, 2268 W. Champagne Ct. Eagle, Idaho. Mr. Turner is the assistant Student Council President, he provides information on the Homecoming Event that the City donated funds towards. The High School is working with the Eagle Parks and Recreation Department to coordinate interactive activities, food and music. They look forward to enhancing their presences in the Eagle Community. Discussion. Patricia Minkavich, Deerfield Court Eagle, Idaho. She is grateful for the pedestrian crossing on Park Lane near the High School. She wishes Council would create a list of goals for the upcoming year, and let the citizens know what they are at the next meeting. The Council should not always be reactive, but be proactive. She has questions about the entitlements on property located near Beacon Light and Highway 16 associated with development agreements and perhaps they should be tweaked. She does not understand the term entitlements and hopes it could be explained at a meeting. Do development agreements have expiration dates? Other than that she thinks the City is doing great. Zoning Administrator Vaughan states that y any land use application that has been approved is commonly referred to as an entitlement. A development agreement is tool used by the City to attach a contract to a zone, the contract is between the City of Eagle and a private property owner. The contract establishes the early parameters by which a development can occur. Once the parameters are set then applicant/developer will need to go through additional processes i.e. Design Review, final plat, plan review prior to construction. In regard establishing expiration dates on development agreements, over the years Councils have gone back and forth regarding their desire to establish them or not. Dorothy Hightower from Gem County attended a meeting at the State of Idaho Gas and Oil Commission. She provides information to the Council for their review. She represents Citizens for Integrity and Accountability, and invites the Council to attend a meeting to view a documentary on gas and oil drilling. Russ Buchardt, 235 W. Floating Feather Road Eagle, Idaho. He agrees with Ms. Hightower. He would like to discuss sidewalks and planter strips. The mow strips are being over fertilized, and the excess could go into the ground water. He wonders if there could be legislation to address Page 2 of 4 cc-08-29-16spmin - town hall meeting that matter. Additionally, Mr. Buchardt provides comment on the Kentucky Blue Grass that is being used and states that it utilizes almost 2 times the water than other grass options. Also, the practice of bagging lawn clippings is wasteful; instead it should be re -mulched into the grass. The tree choices should be addressed in legislation as well. Discussion. Mayor Ridgeway agrees that perhaps the tree requirements should be re -visited. Additionally, he notes that the City eliminated the City Arborist position that had been used to help guide homeowners to ensure the landscape plans are adhered to, as well as advised and monitor in matters of landscaping and city code. Preston asks if there were specific places where he noted the excessive fertilizing. Mr. Buchardt states in Lexington Hills and Brookwood Subdivisions as well as another of which he could not recall the name of. Discussion. Miranda Gold, 609 W. Bosanka Eagle, Idaho. Ms. Gold is running for office for District 16. She provides a background of herself and expresses her desire to preserve the way of life she loves in Idaho. Curtis Stoddard, 2462 N. Majestic Place Eagle, Idaho. Mr. Stoddard did a lot of traveling this summer. After visiting many places in the United States, Eagle is the place he will always return to. It is the best little place there is! Diane McLaughlin, 2070 S. Fox Glen Way Eagle, Idaho. There is an open house on transportation in the Eagle Community for the Eagle Comprehensive Plan Review Committee and urges citizens to attend. Foad Roghani, business address 75 S. Rosebud Lane, Eagle, Idaho. He agrees with everything Mr. Buchardt mentioned regarding trees. He was involved in a committee that reviewed the study to purchase the City Hall building. He feels that two people really need credit for pursuing the purchase of the building and those people are John Grasser who was serving on the City Council at the time. And the other person was Council member Jeff Kunz, if it wasn't for him and his persistence the City would not own the building today. They should get all of the credit for the City Hall purchase. Mayor Ridgeway notes that when the bond actually passed there was a celebration. Mr. Roghani is correct, it was unfortunate that Mr. Kunz was not recognized at that time. It was truly due to a lot of Jeff's hard work that it passed and he definitely should be recognized and receive credit for all of his work. Kunz states that it was genuinely a team effort. People made personnel contributions to the marketing effort and it was a great community effort. He personally thanks everyone that was on the task force and who turned out to vote. Kunz states that his goals include the transportation and the economic development chapters of the Comprehensive Plan and other transportation matters, as well as upcoming changes in the Urban Renewal Agency due to State legislation. Discussion. Ms. Minkavich would like more information on the personal goals of each of the elected officials. Mayor Ridgeway discusses the changes to the budget and his goal to be more of a manager for the City. He comments on the improved relations with Ada County and possibly purchasing some property from them, as well as other joint efforts between the two entities. Ridgeway acknowledges the work that Council Member Kunz has done to improve relations with ACHD. Page 3 of 4 cc-08-29-16spmin - town hall meeting The Saturday Market has been re-imaged and is thriving under the Parks and Recreation Department, as did Fun Days. Discussion. Discussion of the Urban Renewal Agency. Preston reiterates that it is apparent that Eagle is working hard at repairing relationships with other agencies. Ms. Mcloughlin suggests that it would possibly be beneficial if a mailer was sent to each household addressing the goals of the Council. Kunz states that there is a monthly newsletter as well as other articles posted on the website that may be of a good source, as well as local publications of the Valley Times and Independent News. Soelberg expresses that his passion is economic development. He comments on the Comprehensive Plan changes as well as the funding in the budget for consultants to guide Eagle in wise economic development. 5. ADJOURNMENT: Kunz moves to adjourn. Seconded by Soelberg. ALL AYE ... MOTION CARRIES. Hearing no further business, the Council meeting adjourned at 7:42 p.m. Respectfully submitted:®® ®®""""•••®•®® Of EAG, SHAR N K. BERGMANN CITY CLERK/TREASURER AP JWVED: *@sees Qm ®® STAN RIDGEWAY MAYOR AN AUDIO RECORDING OF THIS MEETING IS AVAILABLE FOR DOWNLOAD AT WWW. CITYOFEAGLE.ORG. Page 4 of 4 cc-08-29-16spmin - town hall meeting Tc 8ag111to IDAHO OIL AND GAS CONSERVATION COMMISSION August 23, 2016 Information Agenda SUBJECT +�r , CI( 4�J�� rfit! /(,L,kIc, Proposed Rulemaking for IDAPA 20.07.02 — Rules Governing Conservation of Oil and Natural Gas in the State of Idaho BACKGROUND Negotiated Rulemaking is completed and the Idaho Department of Lands ("Department") is moving into the Proposed Rulemaking stage in preparation for the 2017 legislative session. DISCUSSION The draft rules have changed substantially from where we started in May. The changes were a direct result of feedback received from the rulemaking participants over a course of seven public rulemaking meetings. These meetings were attended by a diverse group from industry, other agencies, non-governmental organizations, and local residents. Some of the requested changes would conflict with Title 47, Chapter 3, Idaho Code, or other statutes so they could not be included. Other requested changes were simply outside the scope of the current rulemaking, or outside the authority of the Idaho Oil and Gas Conservation Commission ("Commission"). Specific topics that generated a lot of discussion include: 1. Permit processing - Current steps outlined in Idaho Code 47-3 are confusing and difficult to follow, and some clarification was requested in the rules. While many rule changes were made due to the new permit processing requirements in statute, the Department believes that attempting to clarify the statute in rule would only lead to more confusion. As a compromise, Department staff are working on flow charts that describe how we interpret the permitting processes and these will be posted on our website. 2. Spacing of oil and gas wells - Some participants wanted more flexibility for well placement and setting unit boundaries, but the Department believes that orderly and predictable statewide spacing units provide more overall benefits to oil and gas developers and mineral estate owners. Statewide 40 -acre unit setback for oil wells was reduced from 460 feet to 330 feet, while statewide 640 -acre unit setback for gas wells was increased from 330 feet to 660 feet. More detail was also added regarding exceptional well locations and changes to spacing units. 3. Setbacks from wells, tank batteries, and processing facilities - Many participants wanted to increase the setbacks from 300 feet to 500 feet or more. While some states do have setbacks greater than 300 feet, they can also approve exceptions to those setbacks. Other states have no setbacks at all. Given the lack of consensus from other states and the lack of statutory guidance on this matter, the Department did not believe that larger setbacks were justified at the current time. Oil and Gas Conservation Commission IDAPA 20.07.02 Proposed Rulemaking Regular Meeting — August 23, 2016 Page 1 of 2 4. Increasing the surface use bond for split estate situations - The minimum bond amount is $5,000, and several participants wanted $10,000 or more. The existing rule allows the surface owner to propose larger bonds based on the specific facts. While some other states do have higher bond amounts, other states have no surface use bond requirements. Given that this bond is only for loss of agricultural income and damages to improvements, it appears to be sufficient. Site reclamation and plugging are covered separately by the drill permit bond. No surface use bonds have been posted to date, so the Department does not see a need to change the amount at this time. 5. Meter reading and calibration - Some requests were made for third party meter reading and calibration, but the Department does not believe it is needed at this time. Each mineral interest owner can require specific reporting terms in the leases they sign with an operator. In addition, it is not clear how that information could be used to resolve royalty disputes between two private parties. This topic was also outside the original scope of the rulemaking, and insufficient time was available to fully research it. 6. Gas -oil ratios - Gas wells are currently classified as those that produce 5,000 or more cubic feet of gas to every barrel of oil (5,000:1), unless modified by an order from the Commission. The higher this ratio is, more gas is needed to be classified as a gas well. How wells are classified determines how they are spaced, so this is an important issue. Some states have ratios of 10,000:1 or greater. Only one well in Idaho is allegedly producing oil at the current time, but production has not occurred long enough yet for the Department to see the production amounts. Other wells produce a Targe volume of condensate, but under statute that is defined as gas and would have no bearing on the gas -oil ratio. Without more understanding of how a change in the gas -oil ratio could affect production in the state, the Department recommends no change at the current time. 7. Well logs - Several changes were proposed to the well logging and reporting requirements. The purpose is to give the Department more information on well construction and reservoir characteristics. Part of the requirements include the operator sending drill cuttings and sidewall cores to the Department. The Proposed Rule will be published in the October 5th Administrative Bulletin, and a 21 day comment period follows. A public hearing will be held in October to receive comments on the rules. Any changes to the Proposed Rule must be based on written or oral comments received during this time. A Pending Rule will then be presented to the Commission in November for approval to submit to the 2017 legislature. ATTACHMENTS 1. Proposed Rule for IDAPA 20.07.02— Rules Governing Conservation of Oil and Natural Gas in the State of Idaho Oil and Gas Conservation Commission IDAPA 20.07.02 Proposed Rulemaking Regular Meeting — August 23, 2016 Page 2 of 2 DRAFT for Rulemaking Purposes Only IDAPA 20 TITLE 07 CHAPTER 02 20.07.02 - RULES GOVERNING CONSERVATION OF OIL AND NATURAL GAS IN THE STATE OF IDAHO SUBCHAPTER A - GENERAL PROVISIONS 000. LEGAL AUTHORITY. This Chapter is adopted under the legal authorities of Title 47, Chapter 3, Idaho Code; and Title 67, Chapter 52, Idaho Code. (4-11-15) 001. TITLE AND SCOPE. 01. Title. These rules shall be cited as IDAPA 20.07.02, "Rules Governing Conservation of Oil and Natural Gas in the State of Idaho." (3-29-12) 02. Scope. These rules apply to the exploration and extraction of any and all crude oil and natural gas resources in the state of Idaho, not including biogas, manufactured gas, or landfill gas, regardless of ownership. (3-29-12) 03. Other Laws. Owners or operators engaged in the exploration and extraction of crude oil and natural gas resources shall comply with all applicable laws and rules of the state of Idaho including, but not limited to the following: (3-29-12) a. Idaho water quality standards and waste water treatment requirements established in Title 39, Chapter 1, Idaho Code; IDAPA 58.01.02, "Water Quality Standards"; IDAPA 58.01.16, "Wastewater Rules"; and IDAPA 58.01.11, "Ground Water Quality Rule," administered by the IDEQ. (3-29-12) b. Idaho air quality standards established in Title 39, Chapter 1, Idaho Code and IDAPA 58.01.01 "Rules for the Control of Air Pollution in Idaho," administered by the IDEQ. (3-29-12) c. Requirements and procedures for hazardous and solid waste management, as established in Title 39, Chapter 44, Idaho Code, and rules promulgated thereunder including IDAPA 58.01.05, "Rules and Standards for Hazardous Waste"; IDAPA 58.01.06, "Solid Waste Management Rules"; and IDAPA 58.01.10, "Rules Regulating the Disposal of Radioactive Materials Not Regulated Under the Atomic Energy Act of 1954, As Amended," administered by the IDEQ. (3-29-12) d. Idaho Stream Channel Protection Act, Title 42, Chapter 38, Idaho Code, and rules promulgated thereunder including IDAPA 37.03.07, "Stream Channel Alteration Rules," administered by the IDWR. (3-29-12) e. Injection We11 Act, Title 42, Chapter 39, Idaho Code and rules promulgated thereunder including IDAPA 37.03.03, "Rules and Minimum Standards for the Construction and Use of Injection Wells," administered by the IDWR. (3-29-12) f. Department of Water Resources — Water Resource Board Act, Title 42, Chapter 17, Idaho Code and rules promulgated thereunder including IDAPA 37.03.06, "Safety of Dams Rules," administered by the IDWR. (3-29-12) Pagel 08_23_2016 ATTACHMENT 1 DRAFT for Rulemaking Purposes Only 002. WRITTEN INTERPRETATIONS. The Idaho Department of Lands maintains written interpretations of its rules which may include, but may not be limited to, written procedures manuals and operations manuals and other written guidance which pertain to the interpretation of the rules of this chapter. Copies of the procedures manuals and operations manuals and other written interpretations, if applicable, are available for public inspection and copying at the director's office of the Idaho Department of Lands, 300 North 6th Street, Suite 103, Boise, Idaho. (3-29-12) 003. ADMINISTRATIVE kAPPEAL§,. Any person aggrieved by any final decision or order of the Commission shall be entitled to judicial review pursuant to the provisions of Title 67, Chapter 52, Idaho Code, Title 47, Chapter 3, Idaho Code: -and -1f3.- A4li, "Rules of P aeti and before -the -Ida 4441-. 1.4-4; 004. INCORPORATION BY REFERENCE. The following documents are incorporated by reference into these rules: (3-29-12) 01. API Bulletin E3, Well Abandonment and Inactive Well Practices for U.S. Exploration and Production Operations, Environmental Guidance Document. 1st Edition, January 1993 and Reaffirmed June 2000 available at the office of the Idaho Department of Lands at 300 North 6th Street, Suite 103. (3-29-12) 02. API SPEC SCT, Specifications for Casing and Tubing. The 841t9th edition dated July, 1. 211052011 and the amendments dated nii hi ,--2444-afi1-441,7. 3846and Errata through September 2012 are available at the office ofthe Idaho Department of Lands at 300 North 6th Street, Suite 103. (3 29 12)( 03. API SPEC 10a, Specification for Cements and Materials for Well Cementing. The 24th Edition dated December, 2010 is available at the office of the Idaho Department of Lands at 300 North 6th Street, Suite 103. (3-29-12) 04. ASTM D698 -07e1 -12e2, Standard Test Methods for Laboratory Compaction Characteristics of Soil Using Standard Effort (12,400 ft-Ihf/ft3 (600 kN-m/m3)). 20072012 revision. Available at the office of the Idaho Department of Lands at 300 North 6th Street, Suite 103. (3 29 12)( } 05. # -43J-239-91-4tanclartt-Geiide-t'er Use- of -the --Petroleum- Measurement 4abl 200E rev+ASTM D1250-08(2013)el. Standard Guide for Ilse of the Petroleum Measurement Tables. 2013 revision. Available at the office of the Idaho Department of Lands at 300 North 6th Street, Suite 103. (3 29 12g 06. Adjunct to D1250-04 Temperature and Pressure Volume Correction Factors for Generalized Crude Oils. Refined Products. and Lubricating Oils.12004 nwision'. vai ble at the office ofthe Idaho ent of Lands - at 300 North 6th Street. Suite 103. ( 1 • 0607. ASTM D1557 -0912e1, Standard Test Methods for Laboratory Compaction Characteristics of Soil Using Modified Effort (56,000 ft Ibf/ft3 (2,700 kN-m/m3)). 24+192012 revision. Available at the office of the Idaho Department of Lands at 300 North 6th Street, Suite 103. (3 29 12)( 1 0.708. EPA SW -846 Method 9090A, Compatibility Test for Wastes and Membrane Liners. Revision 1, July 1992. Available at the office of the Idaho Department of Lands at 300 North 6th Street, Suite 103 and this website:Mtp: 'v'v.:Euros-osw liazarEl-testiiirtbc .»'sw1t<lg-lic#fsA8u0a-pdt httns:l/www.ena.eov/sites/prnductian/files/2015-I 2/documents/9090a.01. (3 29 12)1 0809. OSHA Standard 1910.1200 (Hazard Communication). Last revised 44962012. Available at the office of the Idaho Department of Lands at 300 North 6th Street, Suite 103 and this website: http:l/www.osha.gov/pls/oshawcb/owadisp.show_document?p_tablestandards&p_id=10099. (3 29 12)( ) 005. OFFICE -- OFFICE HOURS -- MAILING ADDRESS AND STREET tADDRESS The principal place of business of the Idaho Department of Lands is 300 North 6th Street, Suite 103, Boise, Idaho and it is open from 8 a.m. to 5 p.m., Monday through Friday, except legal holidays. The mailing address is: Idaho Page 2 08_23_2016 Comment [el]: is a more specific reference to 47-3 needed? Is this covered by ARRF7 May create the impression that the process Is under 67-52 and not 47-3. A: Specific references may create gaps and some grey areas remain in what process applies In every circumstance. No change to proposed language, May 27. 20.07.01 will be proposed for repeal because it has been superseded by the above sections of code, so reference to It should be deleted here. lune 23. Comment [e2]: Is the 2004 the most current version? A: Yes. No change to proposed language, May 27. Comment [e3]: What do other agencies for email addresses? A: Some agencies have a general email address that is referenced in rule, and some have a website ad- dress. We will include a website address, from which the Department or the Commission may be contacted. Done, June 23. DRAFT for Rulemaking Purposes Only Department of Lands, P.O. Box 83720, Boise, Idaho 83720-0050. The telephone number of the office is (208) 334- 0200 and the fax number is (208) 334-2339 9a. The Idaho Oil and Gas Conservation Commission's official website is httn://www.idl.rdaho.gov/oil-eas/commission/index.html. (3 29 12)( 1 006. PUBLIC RECORDS ACT !COMPLIANCE'. All records relating to this chapter are public records except to the extent such records are by law exempt from disclosure. Information obtained by the Department under these rules is subject to public disclosure pursuant to the provisions of Title 74, Chapter 1, Idaho Code. .All claims of exemntion from disclosure must include a specific citation under which the Denartment should withhold the information from a public records rectuest. and how the information meets the standards for being withheld from disclosure. When a portion of a record or a nortion of a nage in that record is subiect to disclosure and the other portion is subject to a claim that it is a trade secret from disclosure under Title 74. Chanter 1. Idaho Code. the ,person making the claim shall clearly identify the two nortions at the time oljsttbmittat (1 11 1 s ( ) 007. — 009. (RESERVED) 010. DEFINITIONS. 01. Act. The Idaho Oil and Gas Conservation Act, Title 47, Chapter 3, Idaho Code. (10-21-92) 02. Active Well. A permitted well used for production, disposal, or injection that is not idled for more than twenty-four (24) continuous months. (3-29-12) b3± Annulus. The void between any pining. tubing or casing and the pining. tubing. casing or borehols immediately surmund(a it. ( 1 04. ASTM 01250 Tables, Adjunct to D1250-04 Temperature and Pressure Volume Correction Factors for Generalized Crude Oils, Refined Products. and Lubricating Oils. and ASTM D1250 -08(20131e1. Standard Guide for Use of the Petroleum Measurement Tables. all published by ASTM International. ( ) 0-321. Barrel. Forty-two (42) U. S. gallons at sixty (60) Degrees F and 14.696 nsiam it+ tt4 (1 A 21-92}( 0406. Blowout. An unplanned sudden or violent escape of fluids from a well. (3-29-12) 0500. Blowout Preventer. A casinghead control equipped with special gates or rams that can be closed and sealed around the drill pipe, or that otherwise completely closes the top of the casing. (4-11-15) • 06O1: Bonus Payment. Monetary consideration that is paid by the lessee to the lessor for'the execution of an oil and gas lease. (4-11-15) 09. Borehole. The hole created by the drill bit during drilling prior to casing being placed. 0710. Casing Pressure. The pressure within the casing or between the casing, tubing, or drill pipe. (3-29-12) 0811. Casinghead. A metal flange attached to the top of the conductor pipe that i+-t#erves several puroose_s including. but not limited to. the following: ( 1 L The primary interface for the diverter system during drilling -0w for surface casing:: The adanter between the conductor nine and the blowout nreventer stack: and ( 1 Page 3 08_23_2016 Comment [e4]: Does 101 have the authority to do rules on Public Records Act? Should the rule instead refer to "exempt from disclosure..."? Un- reasonable is also not defined. Whose burden is it to prove the info Is exempt? DEQ language to 74-114 may provide a guide. k language modified to use 'exempt from disclo- sure", which is the same term In the Public Records Act. Unreasonable is also removed.IDLhas authori- ty to place requirements on documents submitted under Idaho Code § 47-3. Done, July 5 Comment [e5]: Should the process for resoMng disagreements be put Into rule? Notice should be given to record owner, end opportunity to keep records withheld. Statute or rule? A: The Department prefers to keep this as a policy at this time until a process is vetted through use. Policy Is currently being written. Done, July 5. Comment (e6]: Annulus and borehole defini- tions are needed. Wikipedia definition is okay for annulus. Desk and Derrick, Schlumberger, may also have them. A: Done, May 27. Ftowbackwater definition needed to distinguish from formation water. A: Flowback comes from well stimulations, but Itis not used anywhere in the notes. Formation water Is used to Subsections 341.06, 400.01, and 400.03, but appears to be self explanatory. No change to pro- posed language, May 27. Geophone and vtbroseis is used In geophysical sur- veys and should be defined. A: Done, May 27. Comment [e7]: Should Instead refer to ASTM standard tables. A: Specific pressure added to be more precise. This is the APi standard. Done. May 27. Comment [JatS]: added June 24 DRAFT for Rulemaking Purposes Only c. The adanter between the conductor pine and the wellhead after comnletion. (? 'v 12)( — 8i3 Casio--g-of-k-a{ a i• an-eif-.44u rx: 3E1! fr stiiittiin with -- 1012. Commission. The OiI and Gas Conservation Commission of the state of Idaho. (10-21-92) 1412. Common Source of Supply. The geographical area or horizon definitely separated from any other such arca or horizon and which contains, or from competent evidence appears to contain, a common accumulation of oil or gas or both. Any oil or gas field or part thereof which comprises and includes any area which is tindeflaidunderlain, or which from geological or other scientific data or experiments or from drilling operations or other evidence appears to be unde4laidunderlain by a common pool or accumulation of oil or gas or both oil and gas. (3 29 12)( ) 1-314. Completion. A single operation inv v i g the installation of equipment in and on a well. after drilling and evaluating the well. to bring the well into production from one or more zones. An oil well shall be considered completed when the first new oil is produced through wellhead equipment into lease tanks from the ultimate producing interval after the production casing has been run. A gas well shall be considered completed when the well is capable of producing gas through wellhead equipment from the ultimate producing zone after the production casing has been run. f --1-24( 1315. Conductor Pipe. The first and largest diameter string of casing to be installed in a well. This casing extends from land surface to a depth great enough to keep surface waters from entering and loose earth from falling in the hole and to provide anchorage for the divcrter system prior to setting surface casing. (3-29-12) 11416. Cubic Foot of Gas. The volume of gas contained in one (1) cubic foot of space at a standard pressure base and a standard temperature base. The standard pressure base shall be f iiwteen--and- nt trey r t}r;;. 4,7-;}-p~xincl - eF• tuate-iiivIFdb +hite14.696 psi and the standard temperature base shall be sixty (60) Degrees F. 43 29 12)if l-517. Day. A period of twenty-four (24) consecutive hours from 8 a.m. one day to 8 a.m. the following day. (3-29-12) 1.6j. Department. The Idaho Department of Lands•tw-its- lrsignee. 0-24424( 4-719. Development. Any work which actively promotes bringing in production. (10-21-92) 1520. Director. The head of the Idaho Department of Lands and secretary to the OiI and Gas Conservation Commission, or his designee. (3-29-12) 1".x. llfilling l e—lbt+>t�#ret dttit+�iii 4+1=tlir-hilieEtiieneiiteutitaretl +it-tlt+llii all; and ai. Ni'-t+tlirr-1 iiia -ch +iiilir•lit.te (3 29 12) 21. Drill Cuttings, Rock chins and grounri un ssk,tnaterials obtained through the drilling process and screened out of the drilling mud. ( ) 22. Drill Pad. The constructed or leveled area tinorwhich an oil and gas well is drilled. ( fJ 23. Drillini Mud. A mixture of fluids and additiveslhat are used in the drilling nrocess to cool. J lubricate. and clean the dry bit: transport drill cuttings to the surfacejorm amudcakq qtl the •inside of the borehole to prevent caving and Quid interactions with the surrounding formations: and provide for well control. ( ) 24. Exceptional Well tocatioli, An oil or gas well that does,not meet the well location requirements in Section 120.01 of these rules or anv field spacing order. l 1 Comment []at9]: added June 24. Comment [e10]: Conflict with definition 59? This one should control. A: This is the API standard. Done, May 27. Comment fell]: Change "from" to "upon". A: Done, May 27. Comment [e12]: Should petroleum based muds be prohibited in conductor and surface casing? Usually mud not used In drilling a hole for conductor casing. It may be used for surface casing, but IDWR reviews all permits for potential impacts to water quality. A: The mud program is reviewed when drilling ap- plications are submitted. No other changes needed here. May 27. Comment [e13]: Add and form a mudcake on inside of borehole to prevent caving and fluid inter- actions, and well control. A: Done, May 27 Comment [e14]: Statute refers to "exeeotional well location", page 17 refers to" exception to well locations'. A: Changes made throughout rule to use exception- al well location. Done, May 27. 22. Field, I he geIIenel-are t-iuitlrrta+d-hs,-.trte+4-t +iiorr 1::. 00 21 Comment [els]: Deleted because this Is defined in statute. Page 4 08_23_2016 DRAFT for Rulemaking Purposes Only 2421 Fresh Water. All surface waters and those ground waters that are used, or may be used in the future, for drinking water, agriculture, aquaculture, or industrial purposes other than oil and gas development. The possibility of future use is based on hydrogeologic conditions, water quality, future land use activities, and social/economic considerations. (3-29-12) 2226. Gas -Oil ucatid,. The ratio of the volume of gas produced in standard cubic feet to each barrel of oil of eiiittlria;:ikte-produced concurrently during any stated period. (-3 29 1244 1 2327. Gas Processing Facility. A facility that conditions liquids or gas by compression, dehydration, refrigeration, or by other means. (4-11-15) 2-128. Gas :Wellj. (10-21-92) a. A well which produces primarily natural gas; (3-29-12) b. Any well capable of producing gas in commercial quantities and also producing oil from the same common source of supply but not in commercial quantities; or (10-21-92) c. Any well classed as a gas well by the Commission for any reason. (10-21-92) p t..ri laftd- 0414i* --e ' i g-ond2F t1 _lam; et-phvskr ,-rispeetinn- i w •M+itttr#--tc-eletet f2 eottditie*►w-the-surfac ef-t#e-earth--ttat kk ::y militia -oil or ga4--diad--is tiwatisiv,a :-t#te tareliiitiitafs` . . • • . . • • . . Fii145: 'h Seleetieii--iii 4 --*ilii i -ii f-Aot hal: nets acy-eieefiiag-oil,egetatiait-:-3(t(i4-1toiti'-Eh•illiRa. iinp(itintatiNitF4ahfgr,--Billet'Riehl-of-getv1ii1Fie6:-ik4Ai?atiofr biiic iii #�ltet-iitaltw : f a.:. f3. 29 12) 29. Geonhone. Receiving device for eround vibrations used in seismic surveys. ( 1 2430. Hydraulic {Fracturin , or Crackly,. A method of stimulating or increasing the recovery of hydrocarbons by perforating the pr-edtietio casing and injecting fluids or gels with nronnant into the potential target reservoir at pressures greater than the existing fracture gradient in the target reservoir. sl 12)1 1 2-7J. Inactive Well. An unplugged well that has no reported production, disposal, injection, or other permitted activity for a period of greater than twenty-four (24) continuous months, and for which no extension has been granted. (3-29-12) 432. Intermediate Casing. The casing installed within the well to seal intermediate zones above the anticipated bottom hole depth. The casing is generally set in place after the surface casing and before the production casing. (3-29-12) 2-922. Junk. Debris or any unwanted obiect in a hole that impedes drilling or completion. 44,3-424 1 3034. Lease. A tract(s) of land which by virtue of one of the following: an oil and gas lease, fee or mineral ownership4 a drilling, pooling, or other agreement:; a rule, regulation or order of a governmental authority: or otltaiwisr-other means constitutes a single tract or leasehold estate for the purpose of the development or operation thereof for oil or gas or both. (.1 41-2-1 92)1 1 +335. Mechanical Integrity Test. A test designed to determine if there is a significant leak in the casing, tubing, or packer of a well. (3-29-12) 36. Mudlog. The record and evaluation of natural eas in drilling mud and crude oil in well cuttings. Ethology of the formation drilled. and drilling natameters for a well being drilled. ( 1 37. Occupied Structure. A buildine with walls and a roof within which individuals live or customarily Page 5 08_23_2016 Comment [e161: "The ratio of..." should be Inserted. A: Dane, May 27. COtttment La17]: Db we have authority over these En statute? If not, then need to restrict to upstream (Little Willow) facility. Northwest Gas Proceuing owns Hwy30. Are separators an a well pada facility? A: Idaho Code 47-317(10)(c) mentions that cities and counties shall not adopt ordinances that pro- hibit facilities and infrastructure needed far the post -extraction processing end transport of gas and oil. The statute Implies this is so the Commission will have sole authority aver these activities. Also, tdaho Code 47.319(5)(a) give authority of the Commission over "facilities for the transportation or refining of oil and gas". Idaho Code 47-315(51(f) gives the Commission authority over the separation of pro- duction into gaseous and liquid hydrocarbons. Idaho Code 47-319(5)(h) gives the Commission authority over the metering or measuring of oil, gas, or product. Idaho Code 47-319(6)(a) gives the Commission the authority over the compression or dehydration of oil and gas. Given the above references, the Commission does have authority. No changes needed, May 27. Comment [e18]: Should use Section 403 defini- tion instead. A: Section 403 has the proviso that it defuses a well as a gas well " En the absence of an order by the Commission setting a field -specific all -gas ratio..." Not certain that further clarification is needed, May 27. Comment (e19]: eliminate "production'? Or separate out hydraulic fracturing from stimulation (add job, leak off test). Does "stimulation" need a definition? A: Definition modified In an attempt to distinguish hydraulic fracturing from other forms of stimulation that do not have the same concerns or scale. Comment [jat20]: added June 24 Comment (jat21]: added June 24 Comment [e22]3 Define occupied structure as used in Section 200, 420 and 430. Search for occu- pied structure. Working different than tieing, should have different standards if are covering the two different situa- tions. Customarily may be too broad, may need to define that further. Regularly and customarily? k Definition slightly modified from PA definition of building. Done, June 30. Colorado definition Is not as broad. DRAFT for Rulemaking Purposes Only work. ( ) 348. Oil and Gas. Oil or gas or both. (10-21-92) 3339. Oil Well. Any well capable of primarily producing oil in paying quantities, but nota gas well. (3-29-12) 21. Operator. An) •'al; attt#u jeHo -wilt.--n�-ellarge--a€41.1-e-Atweh4pmewf-ef-o--ka::.. s: Eh.; t►p 4+F►R-tff a- it -� L11. (1 n 21 92' 35. mer. l•Iia} a ;orrwJ>o r.4#t ght-to #4f -line# t*1 th-ap 'r iate-t#e-oil ur-gas411at-pretlttEa6-tltt:re-tioi reithet 4w4+411M514::ttxl-+ etltet 110 21 92} 25:-- --Perms. -Ater-ttatttt;+f- tit- +tp44-ttt ft. nt,iet-iatiow, - t#fet-41i exccut.)r. adtttirri.:iratzr, g et#trt-t rc ntati+e--fatty-land. ant imcItfl—aft- sttl ivisioft-ar-any a ney-thereof d-Itt tascffli to ndefritt-rt44ring-taa fwe.en, iftcdttd --the feminit geftdeu. 114' 21 92) 3-740. Any excavated or constructed depression or reservoir used to contain aulflpsd_watem reserve, drilling, well treatment, Milted -wafer; or other fluids. Pits can be located at the drill site or at centralized facilities that collect these fluids for idisnogai. storage, or treatment. Ti, -alt not-+lair-eEnclosed, mobile, or portable tanks used to contain fluids are not nits. (3 29 12)( ) 41. Plug)lacl%Plueeine the bottom section of a well when a tecompletion is done at a hie ler interval, 3442. Pollution. Constituents of oil, gas, salt water, or other materials used in oil and gas extraction, occurring in fresh water supplies at levels that exceed the standards in IDAPA 58.01.02, "Water Quality Standards," and IDAPA 58.01.11, "Ground Water Quality Rules," as the result of the drilling, casing, treating, operation or plugging of wells. (3-29-12) Z3 2(.? 12) 4843. Pressure Maintenance. The injection of gas, water, or other fluids into oil or gas reservoirs to maintain pressure or retard pressure decline in the reservoir for the purpose of increasing the recovery of oil or other hydrocarbons therefrom. (10-21-92) 4444. Produced Water. Water that is produced along with oil or gas. (3-29-12) Prtttltteer. 14w -owner -e4 tiiw_141- -etthtivIt-t4-pt.tc4ttetHg-erl ix* gar. hog). (14)-21 921 4345. Production Casing. The casing set across the reservoir interval and within which the primary completion components are installed. (3-29-12) 4.446. Proppant. Sand or other materials used in hydraulic fracturing to prop open fractures. (3-29-12) 47. Recomoletion. Completing a well in a higher or lower interval than the initial completion. 4S. Release. Any unauthorized spilling, leaking, emitting, discharging, escaping, leaching, or disposing into soil, ground water, or surface water. (3-29-12) 49. Sample Envelope. Three (3) inch by five (5) inch envelope with metal fold top or -clam Envelope is labeled with the following information: ( ) Page 6 08_23_2016 Comment [e23]: Is this redundant with DEQ review? Will their review be at the same time or after or before. Is pond defined? Is It used? k Pits may affect fresh waters and oil and gas Infra- structure in a variety of ways, and they are a known weak point for water quality impacts in other states. Since OEQonly regulates pits used for disposal, and they arc limited to an engineering review, the over- lap in Jurisdiction is not redundant. Their review will be concurrent with IDL. Pond does not need to be defined. Pond is only mentioned to Section 21r but is self evident in the context. May 27. Comment [e24]: Delete "for disposal or treat- ment" or add storage? May be redundant for IDWR rules. A: Storage was added. No redundancy with IDWR rules can be found, as they regulate dams. Most pits will not have fills targe enough to be classified as dams. May 27. Comment (e25]: Plugging any section of a well? Check Desk and Derrick. A: Definition Is accepted. Any activity to plug a shal- lower zone and try to complete a deeper zone would require an application to deepen the existing well unless the shallower zone of a dually complet- ed well was depleted. Done, May 27. DRAFT for Rulemaking Purposes Only • Comnanv Name: b. Well Name and Number. e. U.S. Well Number (Vertical wells use 11 digit number. horizontal wells use 15 digit number)j • mal Description using Subsection. Section. Township. and Ranee: l • County: f. State: and Samnle interval measured depth from surface. 50. Seismic k)nera(lonL. Any eeonhvsical method nerformed on or near the surface of the land utilizing instruments onerating under the laws of physics respecting vibration or sound. These methods are used to determi conditions below the surface of the earth where oil or gas may be located. Seismic oncrations include. but are not limited to. the preliminary line survey. acauirina necessary hermits. selecting and marking shot hole locations, selecting and surveying source point and receiver locations. clearing vegetation. drilling shot holes. imnlanting ages. placing aeonhones. detonating and backfilling shot holes. surface shots. and vibroseis. l ) 51. Shot Hole. Shallow hole drilla' for explosive charges used in seismic operations. ( } 52. Spacing Unit The eeogranhic area allocated by rule or order that can be efficiently and economically drained by one (11 well. ( ) 4653. Spud. To start the drilling process by removing rock, dirt, and other sedimentary material with the drill bit. (4-11-15) 4-754. Surface Casing. The first casing which is run after the conductor pipe to anchor blow out prevention equipment and to seal out fresh water zones. (3-29-12) 55. Surface Mot Exnlosive charges set off on. or iust above. the surface for seismic operations. ( 1 4856. Surface Water. Rivers, streams, lakes, and springs when flowing in their natural channels. (4-11-15) 4457. Systems Approach. The disclosure of chemical information by chemical abstract service name only, without disclosing component percentages or chemical relationships. (4-11-15) 5058. Tank. A concrete, metal, or plastic stationary vessel used to contain fluids. (4-11-15) 514. Tank Battery. One (1) or more tanks that are connected to receive crude oil, condensate, or produced waters from a well(s) and which serves as the point of collection and disbursement of oil or gas from a well(s). (4-11-15) 5260. Tank Dike. An impermeable man-made structure constructed around a tank to contain leakage from the tank. (4-11-15) 5361. Tubing. Pipe used inside the production casing to convey oil or gas from the producing interval to the surface. (3-29-12) 62. U.S. Well Number. Well numbering convention used in U.S. to nrovide a uniaue. permanent, Page 7 08_23_2016 Comment (e26]: What about gravity and mag- netism? k While these are valid geophysical studies, they do not require the volume of truck traffic and disrup- tion that seismic surveys can generate. As a result, no permitting requirements or standards existed in the current rules. In the absence of a need to regu- late these activities, they do not need to be men- tioned in the nrtes. May 27. Ointment [e27]: May want to inctude'Area allocated to a well by a commission or order'. Look at other deflnitions, but keep the word geographic. A: Several sources of definitions refer to an area allocated to 'a well". In addition, Idaho Code 47-321(4) states "An order establishing spacing units shall direct that no more than one (1) well shall be drilled to and produced from the common source of supply on any unit .. • Wording modified July 1, done. Comment [e28]: Include near the surface or just above the surface. A: Done, May 27. DRAFT for Rulemaking Purposes Only numeric identifier for each oil and eas well. This number is assigned by the Department when a drive n ermit is under review. The number has up to 14 digits that are awed and ordered to provide snccific information about the well (SS-CCC-NNNNN-WW-)0X). The meaning of the different Harts is as follows: ( 1 a. The first two digits. represented by "SS" in the above example. are a state code. Idaho is 11. ( ) b. Digits 3 through 5. renresented by "CCC" in the above example. are a county code. ( c. Diens 6 throueh 10. represented by "NNNNN" in the above examnle. are the well code corresponding to the well number in each respective county. d. Digits 11 and 12. renresented by "WW" in the above example. are the well bore codes given to each well bore from that surface location. The first wellbore is assigned 00 and may not atmear if no other well bores have been made from that same surface location. A subsequent sidetrack. deenenine. or lengthening of the well is given another number. ( 1 e. Digits 13 and 14. renresented by "XX" in the above examnle. are usedJr nlugbacks. recomnletions, deepening. or any other well conversion that requires additional work in the same well bore. Thes . jgits may not annear if only one completion has been made. 63. Vibrosels. Source of ground vibrations used in seismic surveys. and generated by specially designed trucks. ( 1 5464. Volatile Organic Compound. Organic chemical compounds whose composition makes it possible for them to evaporate under normal indoor atmospheric conditions of sixty-eight (68) degrees F and an absolute pressure of fourteen point seven (14.7) psi atmospheric. (3-29-12) 5S65. Waterflooding. The injection into a reservoir through one (1) or more wells with volumes of water for the purpose of increasing the recovery of oil therefrom. (3-29-12) a- g (19 21 92) f 7. Waste as -Applied to -Ca.:- -elow+tw-« is r r:efta-4#ir � -car--intiifeetly; i*mci the -open +►t+ Eel -:-#its ll4piodttetiset -ga&-only: .-itt-awewetis►ve-cit-ut►restSHfia-atttat+ttt 4t*H0-We46--prci kie+ttg-e1l-Ar ltt�th— 1-i �t�l gii :; and -the p Otltttt +tt•-+ gam+-itt ttttatttitirs O+.-+tt-t.tt<h a+►nt-c a.: Till-ttttetr:wnaNy -rethsee r« rveir pr,,:ttrt- tmr-et-:tett;oily-tionittish- nail ot✓:)-:I ar ga.. 4tat-ntig4441-1t+tnately l vvot#tttetl; eeptin -gs that -i• r •t►ttaltlsteet.t.sat ftt-ihe dllittg tttt letin .-a renin-tol=w r awe-tA tt#tte4ewel' 44-9-2 192 ) 66. Well 1..ogi. The recorded dtscrintion pf the litholoeic seauence encountered in drilline a well,Com and ment [e29]: Add acoustic properties. the graphical display of one or more physical properties in or around a well versus depth or time. or both. The recorded k Done, May 27 descriptions include. but are not limited to. drill cutting sample loos and mud logs. The nhvsicalnroperties include. but are not limited to. electricjamma ray. geophysical. and acoustic. ( R 5867. Wen Report. The written record progressively describing the strata, water, oil, or gas encountered in drilling a well with such additional information as to give volumes, pressures, rate of fill -up, water depths, caving strata, casing record, mud weight and viscosity records. directional surveys. etc., as is usually recorded in normal procedure of drilling; also, it includes the daily drillinn report. electrical radioactivity, or other similar logs run, lithologic description or other scientific analyses of all whole or sidewall cores, and all drill -stem tests, including depth -tested, cushion -used, time tool open, flowing and shut-in pressures and recoveries. (3 29 12)1 Page 8 08_23_2016 DRAFT for Rulemaking Purposes Only 5968. Well Sit. rhe areas that are directly disturbed during the drilling and subsequent operation of, or affected by production facilities directly associated with, any oil well, gas well, or injection well, and its associated ++ell -drill pad. (4-14-1 6069. Well Treatment. Actions performed on a well to acidize, fracture, or stimulate the target reservoir. (3-29-12) 6170. Wildcat Well. An exploratory well drilled in an area of unknown subsurface conditions. (3-29-12) 71. KVorkove,. The renair or stimulation of an existine nroducine zone or zones in a nmducine well for the ramose of restoring. prolonging. or enhancing the nroduction of hydrocarbons. but does not include hydraulic fracturing. 1 011. !ABBREVIATIONS. 01. API. American Petroleum Institute. (3-29-12) 02. ASTM. American Society for Testing and Materials. (3-29-12) 03. BBL. Oilfield Barrel. (4-11-15) 04. BOP. Blowout Preventer. (3-29-12) 05. CAS. Chemical Abstracts Service. (3-29-12) 06. EPA. United States Environmental Protection Agency. (3-29-12) 07. F. Fahrenheit. (3-29-12) 08. GPS. Global Positioning System. (3-29-12) 09. HDPE. High Density Polyethylene. (3-29-12) 10. IDAPA. Idaho Administrative Procedure Act. (3-29-12) 11. IDEQ. Idaho Department of Environmental Quality. (3-29-12) 12. IDWR. Idaho Department of Water Resources. (3-29-12) 13. MCF. One thousand cubic foot. (4-11-15) 14. MSDS. Material Safety Data Sheet. (3-29-12) 15. OSHA. Occupational Safety & Health Administration. (3-29-12) 16. PSI. Pounds per Square Inch. (3-29-12) 17. PVC. Polyvinyl Chloride. (4-11-15) 18. U.S. UInited States f 1 012. - 014. (RESERVED) 015. PROTECTION OF CORRELATIVE !RIGHTS,. The Commission and the Department should a# or421-a ti►t t+t3+t tot4ttzr. eot+N l i#3rret.►tcrtr�d�c Page 9 08_23_2016 Comment [e30]: Concern about allowing hy- draulic fracturing without a permit. Strike stimula- tion? Could specifically state it does not include hydraulic fracturing. A Changed to exclude hydraulic fracturing, May 27. Comment [e31]: Add abreviation for BTU or MMBTU? A: Neither abbreviation is used to the rule, so they are not needed. May 27. Comment (e32]: Should just repeat the defini- tion to statute and leave it at that. Refer to correla- tive rights and avoiding waste. A: Section is reworded to focus on the protection of correlative rights without attempting to clarify what correlative rights are. Done, June 23. DRAFT for Rulemaking Purposes Only tw- ecz'9-ttat:444-e ' :-4141 .ecv sary wellti- t our t tlu:- i »net: - a protect correlative riehts by administering these to not reauire an owner to drill unnessary wells or incur unnecessary expenses to recover or receive strut -oil or gas or its equivalent. (3 29 12)1 1 016. -- 019. (RESERVED) 020. APPLICABILITY. 01. Oil and Gas Development. These rules apply to oil and gas development and cavy out the Commission's duty to prevent waste, protect correlative rights, and prevent pollution of fresh water supplies through activities authorized by these rules. (3-29-12) 02. Exclusions. These rules do not apply to the exploration and development of other mineral resources covered by Title 47, Chapter 13, Idaho Code; Title 47, Chapter 15, Idaho Code; or Title 42, Chapter 40, Idaho Code. (3-29-12) 021. CLASS II INJECTION WELLS. Class 1I injection wells, as described in IDAPA 37.03.03, "Rules and Minimum Standards for the Construction and Use of Injection Wells," are currently not authorized under this rule. Permits for Class II injection wells must be obtained through IDAPA 37.03.03. (3-29-12) 022. -- 029. (RESERVED) 030. NOTICES - GENERAL. 01. Written Authorization Required. Any written notice of intention to do work or to change plans previously approved must be filed with the Department, unless otherwise directed, and must be approved before the work is begun. Such approval may be given orally and, if so given, shall thereafter be confirmed by the k>rt�tte+aerator in writing. Written notices may be submitted to the Department by e-mail or facsimile. (4-14444 1 02. Emergency Authorization. In case of emergency, ora situation where operations might be unduly delayed, any written notice required by these rules and regulations to be givenjo the Department may be given orally or by wireemail. etttf-iIf approval is obtained, the It-a}r.'aeta',t1 hall -he - k nfwm d-Penartnleut galispnft .___, the notification in writing, as a matter of record. (3 29 -1?41 1 03. Publication of Legal Notices. Whenever these rules require a legal notice to be published in a newspaper, the notice must be published once a week for two (2) consecutive weeks. (4-11-15) 031. FORMS. The Department shall adopt such forms of notices, requests, permits, and reports as it may deem advisable or necessary in carrying out the provisions of law and its rules and regulations. (4-11-15) 032. ORGANIZATION REPORTS. 01. Required Content. Before any person engages in any activity covered by the statutes and rules of the Commission, that person must file an organization report with the Department. The organization report must include the following information: (4-11-15) a. The person's name and the type of the business being operated or conducted; (4-11-15) b. The mailing address to which all correspondence from the Department is to be sent; (4-11-15) c. The telephone number(s), facsimile number(s), and e-mail address(es) for which contact by the Department may be made; (4-11-15) Page 10 08_23_2016 Comment [e33]: Change "Commission" to "op- erator"? A: Done, May 27. Comment [e34]: Replace "transaction" with "notification"? A: Done, May 27. DRAFT for Rulemaking Purposes Only d. The names of persons authorized to submit required forms, reports, and other documents to the Department; and (4-11-15) e. If a legal entity, proof the person is authorized to transact business within the state. (4-11-15) 02. Updates. A supplementary report must be filed with the Department within thirty (30) days of any change to facts stated in a previously -filed organization report. (4-11-15) 033 DESIGNATION OF AGENT. A "Designation of Agent" shall be submitted to the Department in a manner and form approved by the Department prior to the commencement of operations. A Designation of Agent(s) will be accepted as authority of agent to fulfill the obligations of the owner and to sign any papers or reports required under these oil and gas operating regulations, and all authorized orders or notices given by the Department when given in the manner hereinafter provided shall be deemed service of such orders or notices upon the owner and the lessee. All changes of address and any termination of the agent's authority shall be immediately reported in writing to the Department and, in the latter case, the designation of a new agent(s) shall be immediately made. If the designated agent(s) shall at any time be incapacitated for duty or absent from the address provided, the owner shall designate in writing a substitute to serve in his or their stead, and in the absence of such owner or of notice of appointment of a substitute then, in such case, notices may be given by the Department by delivering a registered letter to the United States Post Office at Boise, Idaho, directed to the agent(s) at the address shown on the current Designation of Agent on file in the Department's office, and such notice will be deemed service upon the owner and lessee. (3-29-12) 034. -039. (RESERVED) 040. R31AC--�-OM 1 M PERMIT OROCESSIN(i} Applications submitted under Sections 100, 200, 2a1., 210, 211.230, anti -330, and 502 of these rules will bej)t+sten thePref iiineit -s- si-tifieerr da'. (15) writtetiin n+nl j ei he nmr+rt-wi31•al e—statl-an-electratrie copy of ib applicatitm-to-the-res), ? ati a 1tnd-e ty-i a{ lxaible,--, f.: trio _ 4,�i rati ► is -3c purpose -at nn t_s. on- wlr era-propt . ed jlieation-c: plies-witfi-ti :e tea .. 'hew c.at+nnet will he .ot+>idared-1N-ilie-Dext+tint'++t jti 4►i tt++it-t+l►prewa4�t ental -1 ant-ePttt+ +t3 will be posted Hn- te•Det,it •ttneEt' . Wt13..ite-4i4k+witr; theee++t++ + +ied:,processed as follows; 4-1-1 15)( >v 1. Permit review and approval will follow the procedure in Idaho Code 6 47-32d. Posting on the Department's website mav occur after the Denartment determines that the application is comnlete: ( 1 2. The annlicant mav modify incomnlete or denied applications. The applicant does not have to nay an additional application fee if they resubmit within fifteen (In business days of receiving notice of an incomplete annlication or a denial. The annlicant must nay a new fee if the Department receives the revised application oast that fifteen (151 business days: ( ) 3. The Department mav deny twatications if the annlicant does notiesubmit within thirty (301 business days of receiving notice of an incomnlete application: and ( ) 4. The annlicant mav anneal the Department's decision to the Commission pursuant to Idaho Code 6 47-324(d). (e). (f1 and (el. ( >! 041. -- 049. (RESERVED) 050. ENFORCEMENT. The Department shall enforce these rules pursuant to Section 47-325, Idaho Code. (3-29-12) 051. - 099. (RESERVED) SUBCHAPTER B - EXPLORATION AND DEVELOPMENT Page 11 08_23_2016 Comment [e35]: Give scope of their designation through rule, or by modifying the form. A: Modifying the form will be the easiest way to accomplish this, May 27. Comment [e36]t What is this procedure? Not well explained in 47-320. Would a Timeline or written interpretation help? A: We can post the Department's Interpretation of the timeline on our website. Done, June 23. Comment (e37]: Should clarify In rule that com- pleteness review will be done first, then sent out and noticed. A: Some arcumstances may require the Department to send applications out to other agencies prior to the completeness review. We do intend to do the completeness review prior to posting on our web- site. Done, July 19. Comment [e38]: Clarify that is business days. A: Done, May 27. DRAFT for Rulemaking Purposes Only 100. P41 44:1-1-, 0 -P -1.R 33ONSSEISMIC OPERATIONS, 01. Permit Required. Before beginning seismic operations h: --.tat +f--klabe-.-a-Fdprese:uotiv. after -.1pt,rlt ay.-2xrlic,t.-imt-f a -Pet tit 10-etoKkiel seis►uic e+atio i ty-ao-apf►lieatiE elor oil and as a person must obtain a permit from the Department. No seismic operation shall be conducted without such a permit. 11 Lai.-ha+d♦seretie:: e the-fegt*ir nt f th.: pre-peaoit-aleetiet•feF4hi -ekcwt- - n pant'.-the^per it• -t r ei-:mie-t fatig:F :::o> be re-. alb nf-itu:;pc er thr-y tient n -14-the-pe{ a at+t+ nt-4ef ilttfe-t«a-t 4 wles,-stn The Department may revoke, suspend, or deny the -application a seismic permit without a hearing; provided that the seismic contractor shall be given an opportunity for a hearing at the next regularly scheduled Commission meeting. The-44e4-tha{,a-pet t=+rvwke ef-etient-ewepan tiem-pfeper l:tgt ing -itti o :xe nate-The application for a seismic oneration permit - must include all of the followinn: (3 29 12)( a. 44 -For two dimensional surveys. thg proposed route of the seismic line on a topographic or recent air photo base map at a sufficient scale to show roads, buildings, surface waters, density of the seismic source points and receiver lines. and Section, Township, and Range lines. The map must also show additional area as needed for any alternative routing. The alternative routing must be within at least one-half (1/2) mile of the proposed route. Reapplication must be made if the final route strays from the proposed route and outside the designated alternative routing areas; a:t44,, (3 29 12)( b. For three dimensional surveys. the intended orientation and density of the seismic source points and receiver lines on a tonoeranhic or recent air nhoto base man at a sufficient scale to show roads. buildings, surface waters, and Section. Township. and Ranee )inec, ( 1 bg. The energy sources proposed to be used for the seismic operation, such as vibroseis, shot holes, surface shot, or others. (3-29-12) ed. The approximate number, depth, and location of the sei-mieshot holes and the size of the explosive charges. The application shall be accompanied by a map with a scale of one inch equaling two (2) miles that shows the depth and location of the shot toles. t444 -a'_-;( 1 de. The name and permanent address of the client company the Department may contact about the seismic operation. (3-29-12) ef. The name, permanent address, and phone number of the seismic contractor and bis local representative whom the Department may contact about the seismic activity. (3-29-12) €g The name, phone number, and permanent address of the 51 o hole plugging contractor, if different from the seismic contractor. (349-1-23( 1 gh. A detailed description of the shot hole plugging procedures, and a description of the surface reclamation procedures, if such reclamation is needed. 0-24424( ) hi. The anticipated starting date of seismic operations. (3-29-12) ij. The anticipated completion date of seismic operations, and the anticipated date of any required reclamation or shot hole plugging. (3-2Q--1-34( 1 A description of the identifying mark that will be on the hat or nonmetallic plug to be used in the plugging of theieghot hole. t 19 21 92)( 1 1. A bond meeting the reauirements of Subsection 03 below. Page 12 08_23_2016 Comment [e39]: Add intent to give some ma- nuevering room for location of source and receive• points. A: Wording modified, May 27. DRAFT for Rulemaking Purposes Only m. An application fee as desenbed in Idaho Code 6 47-320. 02. Operating Requirements. All gee hysivalseismic operations must comply with the following requirements: (3 29 12}( 1 a. All vehicles utilized by the permit holder, or its agents or contractors, shall be clearly identified by signs or markings utilizing letters or numbers, or a combination thereof, a minimum of three (3) inches in height and one-half (1/2) inch wide, indicating the name of such agent. (3-29-12) b. No seismic source generation from vibroseis, shot holes, surface shot, or other method shall be conducted within two hundred (200) feet of any !residence water well, oil well, gas well, injection well, or other structure without having fust secured the express written authority of the owner(s) thereof and the permit holder shall be responsible for any resulting damages. (3 29 12)( ) c. Written authority from the owner of a }residence!, water well, oil well, gas well, injection well, or other structure must also be obtained from the owner(s) if any explosive charge exceeds the maximum allowable charge within the scaled distance below: DISTANCE TO STRUCTURE (Feet)' MAXIMUM ALLOWABLE CHARGE WEIGHTS (Pounds)' 50 0.5 100 2.0 150 4.5 200 8.0 250 12.0 300 18.0 350 25.0 =-; SEi4-i pfn a n cr;2 .-14-1-241 't d. The maximum allowable charge weight is twenty-five (25) pounds, unless the permit holder requests and secures the prior written authorization from the Department. • (3-29-12) e. All seismic sources placed for detonation shall contain additives to accelerate the biodegradation thereof and shall be handled with due care in accordance with industry standards. The cap leads for any seismic sources that fail to detonate shall be buried at least three (3) feet deep. (3-29-12) f. All vegetation cleared to the ground shall be cleared in a competent and workmanlike manner in the exercise of due care. (3-29-12) g. Unless otherwise consented to by the surface owner in writing, permit holder shall not cut down any tree measuring six (6) inches or more in diameter, as measured at a height of three (3) feet from the ground surface, unless there are no reasonable alternatives to the removal of such tree(s) available to permit holder. Permit holder shall compensate surface owner the value of all such trees. (3-29-12) h. All excessive rutting or soil disturbances shall be repaired or restored to the original condition and contour to the extent reasonable, unless otherwise agreed to by the permit holder and the surface owner in writing. Page 13 08_23_2016 Comment (e40]: Use of term "residence" not dear. Do rules need definition of occupied structure or Primary residence? Does that include structures occupied during the day or seasonally? k This section uses "residence" in an effort to ad- dress concerns for seismic impacts to water wells. Sections 420.01 and 430.01 discuss setbacks for tank batteries and processing facifiites from occu- pied strucures, and are more concerned about pub - tic safety and protecting fresh waters. Also, the term "other structure" includes buildings that may be occupied any time or any seuon. No concern about the separate terms, and no changes made as a re- sult. May 27. Comment (041]: see previous DRAFT for Rulemaking Purposes Only (3-29-12) i. All fences removed shall be replaced, unless otherwise agreed to by the permit holder and the surface owner in writing. (3-29-12) 1• All debris associated with the seismic activity shall be removed and properly disposed. (3-29-12) 03. Bond Required. (3-29-12) a. Belo e-begn+titw- 1tysK-epetatioEr.:; he-#eop .+ea1-43« t +neis4-tik and-bake-apprc by-the-Pepa+•tmr++t a]e bond for seismic exnloration wil in the amount of at least ten thousand dollars (S10,000). The Department may increase this bonding- }uir mens amount for geepl ++lseismic contractors based on the amount of potential damage from the sooto+++platetlpronosed operation. The bond shall comply with the Act, the oale&-a+ufetf:--u1 -Commission's rules and orders, and oRle+ -of-cite Department's orders. The obligation of the bond shall not be discharged until one (1) year from e oompletion-or:41*-stioveyreceint of the final completion renort described in Subsection 100.08 of these rules or until the geopht_ical1eismic contractor has complied with the ation-l-aw: ct, the Commission's rules, and the orders of the Commission and the Department. (3 29 144 l b. Persons ov-fuller e++titi<w-who engage-in-tl+e-pluggi+ l4ei:+uiu shot holes and are not a regular full-time employee of the seismic company, owner, or operator shall have -posted with the director a surety bond in favor of the Department. Said bond shall be on a form prescribed by the Department and in the amount of five thousand dollars (S5,000). The condition of the bond shall comply with the Oiland-4ias-4-e++se+:+tinn-LawAct and the regulations and orders of the Commission and the Department. (-3.-29-.423( 't 04 Newspaper Notice. Before a t,eophs.sical eismic oneration contractor conducts the ue4.)011#4eal operation, the contractor shall publish a legal notice in a newspaper of general circulation in the county where the survey will be conducted. The notice shall conform with Subsection 030.03 of these rules. and shall state the nature and approximate time period of the seismic operations. These requirements do not apply to operations conducted within a well -of -en++cktttecl-i►v-azii.+lig+ley:,. 05. Owner Agreement and Occupant kVotificatioi . No entry shall be made by any person to conduct seismic operations, upon the lands where such seismic operations are to be conducted, without the permit holder having first givetvontieeat-least 414 +3A - :++lensitu--days-nr#t+F4*-e-non +enceme+tt-E l+ok--salt pi-operationsobtained a written agreement with the surface owner and nrovided written notice to the following narties: — -- -- — — ---- — — —�-� 2) 12)( — - a: - Ibe-linker-shall-neon-- ruing md-given-e lieF-per tsnaly-or-by- r +1-i#iril-krnitet# ++es-mail-o-tl+e F - -- i.-1;nifart wnei.refk ir4i++ i•k-reton.of c01+++4+e•--W1+r+c.44+rk+++Ei -arrlotaieri-a++lam+++�+ili++g a l+es;e-;-ernii ted-44.Ftm :l+ mn-fa€-e-e t rs-la snail feeordt., 43 29 12; Occupants residing on the lands who are not the surface owners, if it can be reasonably ascertained that there are such occupants; and (3-29-12) records. Owners or operators of oil and gas wells within the seismic survey area, as reflected in Department (3-29-12) b:06. The notice provided for in Subsection 100.05 of these pules shall contain the following: {3 tea. Name of the person -o+ -entry that is conducting the seismic operations; Fd -2- ( ) Proposed location of the seismic operations; and (3-29-12) Page 14 08_23_2016 Comment [e421: Is this really needed? Not done in otherstates. A: Yes, it Is. Unknown residents and those whe not give access need to know when the work v done due to truck traffic and other disruptions. Done, July 5. Comment [e43]: The operator always obtains permission from the surface owner prior to entry, and sometimes this is obtained the week before operations begin. If written permission Is always obtained, then eliminate the 30 day notification. A: Dane, July 5. DRAFT for Rulemaking Purposes Only iii:, Approximate date the person or -entity -proposes to commence seismic operations. (3 29 I2t( 04x, Department Notifications. (3-29-12) ... The permit holder shall alp --notify the Department within five (5) business days of the t -and•- tpletieo -otbeginning each seismic operation. The Hermit holder shall also notify the Department within five (51 business days of completine each seismic operation. These notifications maybe done with a sundry notice. (-29 12)f 1 b. `l .: k titgcwphaYsi, : . . I:iaal-rentraeter ;!:.111 fit_ a -notice- 4 intention -444o 4o-wit#r a+ tt--mid-stet parties# -17.3 map era 13 29-1-1) 07:48. Reports and Notices Required. (10-21-92) a. Activity Report. Upon completion of the seismic ietivitynerations4 or at thirty (30) day intervals Comment [e44]: 30 days after completion? after the work has commenced, whichever occurs first, the seismic contractor shall file with the Department a to tliVo! aarify? the -completion or progress mil-ot=tttd-beis+ttie-project.The final completion report shall be in affidavit form -anti A: Yu, 30 days after completion is now inserted. ;#tall, include a man. and shall be submitted to the Department within thirty (301 dans of comnletine the seismic Dom, Julys. operations. The man in the comnletion report must be on a seven and one-half (7.5) - or fifteen (15) minute United States Geological Survey topographic quadrangle map (at a scale of one (1) inch equals two thousand (2,000) feet Lai the seven and one-half (7,51 minute man or one (1) inch equals nnmximateiv one (11 mile for the fifteen (151 minute map, that -show -sand each showing section, township, and range) and the location of each survey so that the shot holes and other potential impacts can be easily located. Maps must be dated and labeled with the nermit number and the names of the contractor and client companies. The final completion report shall also include a statement that all work has been performed its with the application veismic permit to r.it Section 100 of these rules, .. SaitiThe hermit, maps, application* and reports shall be kept confidential by the Department for a period of one (1) year from the date of receipt, subject to the needs of the Department to use them to enforce these regulations, the Act, and the orders of the Commission or the Department. Also, the (*motif - of -the Department may advise the surface of-the-ktod-4ittt4-allied owner of the Comment [e45]: The Department may advise location of seismic lines, source points. receiver locations, or sei‘TittieLhgl holes on his land and of the exploration the surface owner of the location.... method used. 4.1 1 t 1 s)( 1 k Changes made, May 27. b. Plugging Notice. Seismic contractors shall give the Department 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. (3 29 124f 08:01 Client -Contractor Responsibility. The client company may be held responsible along with the seismic contractor for endu titittlerratien-itseomp failure tb corm with the Commission's rules and orders, the Department's orders, and the Act -t* - tat•'+tai'rarc s:Attplyn-it#} 4# -tines -statutes: attd-etdeFe . The hats used 4tt-4 • pit ging of seisittieto plug shot holes shall be imprinted with the name of the contractor re pen ible-for-tl ittg-t fwho plugged the hole. 12 29 l 2 ►f 0410. Plugging. Unless the seismic contractor can prove to the satisfaction of the Department that another method will provide better protection to ground water and long -tens land stability,-sei!otne shot hole operations shall be conducted in the following manner: (. 24 12)( 1 a. When water is used in conjunction with the drilling of sei.ttn-shot holes and artesian flow is not encountered at the surface, seismi-shot holes ate4oraul be filled with a high grade bentonite/water slurry mixture. Said slurry shall have a density that is at least four percent (4%) greater than the density of fresh water; said slurry shall also have a Marsh funnel viscosity of at least sixty (60) seconds per quart. Density and viscosity are tale measured prior to adding cuttings to the slurry. Cuttings not added to the slurry are to be disposed of in accordance with Paragraph 100.-0410.f. of this rule. Any other suitable plugging material commonly used in the industry may be substituted for the bentonite/water slurry as long as the physical characteristics of said substitute are Page 15 08_23_2016 IComment [e46]: Delete 'at least'? A: Done, June 3. DRAFT for Rulemaking Purposes Only comparable to those of the bentonite/water slurry. Between November 1 and May 1, coarse ground bentonite approved by the Department shall be used as a plugging material. (4--1-1--1-*4( 1 b. The hole will be filled with the slurry from the bottom up to a-depth-of44wt-(34 Wit -{three (3) feet below ground levelt. A nonmetallic plug will ko be set at this depth t� ?,- , and the remaining hole will be filled and tamped to the surface with cuttings and native soil. (1 A 31 92)( 1 c. When drilling with air and nonartesian water is encountered, the hole shall be plugged with the slurry mixture, or coarse ground bentonite, as specified in Paragraph 100.4441.Q.a., supra. (1 11 I S)( 1 d. 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 (3) feet, and setting the pernaplug topped with more cuttings and soil as per Paragraph 100.9910.b. above. A small mound will be left over the hole for sealing allowance. Auger holes twenty (20) feet or less in depth may be plugged in this same manner. 41 1 1 444 e. if r ►iiw- ttw-All shot holes shall be properly plugged and abandoned as soon as practical after the shot has been fired; however, a shot hole shall not be left unplugged for more than thirty (30) days without approval of the Department. (3 29 13.}( f. Any slurry, drilling fluid, or cuttings which are deposited on the surface around thee -shot hole will be raked or otherwise spread out to at least within one (1) inch of the surface, so that the growth of the natural grasses or foliage will not be impaired. 00-24-924f 1 g. The requirements of Paragraphs 100.9910.a. through 100.04Jfl.f. of this rule may be modified by any reasonable written agreement between the seismic company and the surface owner. t4-1-1-141( 1 h. If artesian flow (water flowing at the surface) is encountered in the drilling of any leis+»ie-ghutholc, cement will be used to seal off the water flow thereby preventing cross-flow, erosion, and/or contamination of freshwater supplies. Said holes shall be cemented immediately. 0-29424( 1 i. After eernp sting the platting i.mitt L -shot holes are plugged and spteadi -the cuttings -a,.; r m+ed-by thk: Atte are Lrsread, the seismic contractor shall record the GPS location of the sei jhot hole, and the eontritetet shall provide the location data to the Department. (' 29 4 1 40.11. Forfeiture of o l -k- atiortSeismic Operation Bond. The Department may forfeit the bond submitted under Subsection 100.03 of this rule upon failure oldie ismic contractor or client comnanv to conduct the seismic survey and complete reclamation in conformance with Section 100 of this rule. The r eismic contractor or client company will be given an opportunity to address compliance issues prior to the Department taking action against the lrondfrorfeited bond money that is not needed for the Department to comnlete the nermit oblieations will be returned to the neixon who sunnlied the bond or the bonding company, (1 11 154 101. —109. (RESERVED) 110. SURFACE OWNER PROTECTIONS. 01. Surface Use Agreement. if the mineral estate has been severed from the surface estate where an oil or gas well is to be located, the owner or operator shall attempt a good faith kiegotiatioi4 of a surface use agreement with the surface owner. The surface use agreement must address how the surface owner will be compensated for lost agricultural income and lost value of improvements directly caused by oil and gas exploration and production. The owner or operator may rely on the tax records of the respective county assessor to identify the surface owner. (3-29-12) 02. Surface Owner Notification. If a surface use agreement cannot be negotiated, then the owner or operator must notify the surface owner of the intent to drill by certified mail at least sixty (60) days prior to the Page 16 08_23_2016 Comment (e473: Change to just "spread". A: Done, June 3. Comment [e48]: Excess funds should be re- turned to operator or surety. A: Done, June 3. Comment [e49]: Do we need more specftcity in this? Would two written attempts qualify? What do other states do? A: BLM guidance for their split estate is very similar to what is currently in the rutes. IDL's minimum bond is actually higher, at $5,000 instead of the BLM's 51,000. Their surface damages bond also only covers "loss or damage to crops or tangible im- provements", and the expectation is for good faith negotiations for a surface use agreement. Good faith negotiations are not defined in the con- text of oil and gas surface use agreements, but "good faith" is defined in Idaho Code 28-1-201(b)(20) (Uniform Commercial Code) as "honesty in fact in the conduct or transaction con- cerned.' Other states do not prescribe what good faith negotiations means in regards to oil and gas operator and surface owner agreements, but some states do require good faith negotiations. The existing language was distilled out of case law from several different states, extensive research was conducted, and the rule was negotiated at length. Also, extensive changes to this section are beyond the scope of the rulesmaking in the approve ARRF. No changes made. DRAFT for Rulemaking Purposes Only commencement of surface disturbing activities, unless otherwise agreed to by the surface owner. The notification must include a proposed surface use bond amount, and a copy must be sent to the Department. (3-29-12) 03. Surface Owner Objection. If the surface owner disagrees with the owner's or operator's proposed surface use bond amount, the surface owner must send a written objection to the Department within thirty (30) days of receiving the notification from the owner or operator. The objection must contain the owner's or operator's proposed surface use bond amount. Any objection filed will not delay the owner's or operator's proposed start of surface disturbing activities. (3-29-12) 04. Surface Use Bond. The minimum surface use bond in all instances with no surface use agreement will be five thousand dollars (S5,1001), and will be paid in cash to the Department. If the surface owner objects to the owner's or operator's proposed bond amount, the Department will determine a surface use bond based on the information received from both the owner or operator and the surface owner. The Department will then request that the owner or operator submit this bond. The Department may issue the permit to drill and authorize the commencement of drilling operations after this bond has been received. The purpose of this bond is to safeguard the surface owner's loss of agricultural income and improvement values bendind the results of a hearing on the final bond. (3-2'I2.( ' 05. Hearing to Determine Surface Use !Bond; When the owner, operator, or surface owner objects to the Department's proposed surface use bond, a hearing will be scheduled as soon as possible to determine the fmal bond amount. The owner, operator, surface owner, and Department may offer testimony to the hearing officer. The hearing officer will recommend a final bond amount to the wtit:si tor. After the ('om i.si Director'si final order, the owner or operator and surface owner will have twenty-eight (28) days to file a request for judicial review. 044--4-24( % 06. Release of Surface Use 1Bondli. The Department will bold the bond pending eithcr a surface use agreement between the two (2) parties that negates the need for a surface use bond, or reclamation of the surface disturbance. (3-29-12) 07. Forfeiture of Surface Use Bond. The Department may forfeit this bond upon failure of the owner or operator to reclaim the disturbed area in a timely manner, or upon failure of the parties to reach a surface use agreement, upon the completion of drilling operations. (3-29-12) 111. —119. (RESERVED) 120. WELL SPACING. 01. Standard Snaring Units and Well Locations. In the absence of an order lay-cite setting spacing units for a pool, or a unit operation as described in Section 141)15, the following rules shall apply: 04- a. Well frill lfer-Olk*tandt d wring !Alt difd Wel-f:efI+tio Every well drilled for oil must be located in Ilii.- ++ter-t►4on a spacing unit consisting of a forty (40) acre governmental quarter quarter section, lot or tract, or combination of lots or tracts substantially equivalent thereto as shown by the most recent governmental survey; -with k(olen+n+-A#-iwe-#+untred{2 }-fart-i+} ++- ++r -thy ine iow,-iworia4t that-no+41--w11 sint41-b -d n1 • 4y -tet 'an v rti ee-we +ilhing-te-er eopa k-4 big -0i1 tionrthe-iante-jxe4-tw-no-sail-wall c;1+a11 t+e e+pleted-ia-i* htnw4+-pea4 4+n4e';--it--iS-40ea4 4-r++N+e-th++++ twenty fob feet-tiot+ri+ tl+ -well- plet in-eaf , +f fn ei Hii ++* the-sa++ tat. An oil well must have a minimum setback of three hundred thirty 010 feet from the Section's quarter auarter lines. (102192_)( Page 17 08_23_2016 Comment [e50]: May be too low. A: This amount b higher than the BLM at $1,000, and Wyoming at $2,000, but lower than New Mexi- co at $10,000. Given the ability of the tandewer to submit their own proposed bond amount, no change Is needed. Extensive changes to this Section are beyond the scope of the rulesmaking In the approve ARRF. Comment je5i1: Loss to remainder of property should be included. A: The existing language was distilled out of ease law from several different states. Case law generally does not support affect on land values, only agri- cultural income and improvements. Damage to the remainder or damange to land values introduces the potential for substantial subjectivity. Extensive changes to this Section are beyond the scope of the rutesmaking in the approve ARRF.No changes made. Comment le52]: Maybe allowed by 47319(53(4 does not fit neatly into 47-324. Not a request for an order, it is an objection. A: Extensive changes largely removed, May 27. Comment [e53]: Change "Commission" to "Di- rector". A: Done, May 27. Comment [e54]: see above Comment [e55]: What If the bond is not suffi- cient? A: Bonding for well plugging and reclamation of the pad area is covered by the bond described in Sec- tion eo-tion 220. If a violation occurs, then the operator Is subject to enforcement actions under the authority ottdaho Code 47-325. In addition, the surface own- er still has the ability to pursue damages In a civil claim against the Operator. Lastly, any violations, Including spills or releases, will be a compliance issue handled by IDEQand 101.. with support from IDWR as needed. Idaho Code 47-325 includes fines of up to $10,000 per day. No changes made. Comment [e56]: 460 feet too high, should be smaller. 200 feet is better. A: Original rule had an effective 460 setback. Oil well setbadcs from unit boundaries in other states commonly varies from 100 feet to 500 feet. 330 is fairly common. Changed to 330. Interwetl spacing removed. Done, July 19. DRAFT for Rulemaking Purposes Only 4Th. eetiew-Every well drilled for gas must be located on a dfi-Iiiitmgj'ag unit consisting of approximately six hundred forty (640) contiguous surface acres, which shall be one governmental ectioi nr lute tui le lier-rt4, upon which there is not located, and of which no part is attributed to, any other well completed in or drilling to the same pool. #s-afta.: not : u l -by -United -z s ang }eight+r4ivt -+ 3-deri & r— {9 ±elegf=e-. 2t tht distalE__ two 3) peitits-latetryst--?man--then -shall-am-e •: (.500) fcetand 3)-dell-ecntaitt at Ist.•t.:i* hmalfe el4 444+ 4:44'04,24 mti% sunk e-fwres. tit-ttrea�: et #try f -Kited te+ Ptf131iF ltd- F+ttt�ew cl} t illiftg-ttriit alt ,t"c cs-gH +ttrnttftl-yeti4 a-4tH+itttitti+ ix+Nrs::.'t:x: s:n hatt4e4:14{ +4}•s -;wi -A gas well must have a minimum setback of thfee•lituidteti-tltirtysix hundred sixtvl (-3 1) feet from the governmental section line.(4-11_-lS 02. Meaning of Well Location for SDacing a. For vertical wells. well location for the purposes of this Section means where the producing interval js pierced by the well. 1f casing perforations in the nmducing. interval extend for more than ten (10) feet alone the leneth of the casing. then the mid -point of the producing casino perforations is the well location. h. For non -vertical wells. well location for the nttmoses of this Section means the entire length of the perforated interval. ( >! 03. Well Locations Adjacent to Spaced Areas. The Commission shall have the discretion to determine the pattern location of wells adjacent to an arca spaced by the Commission, or under application for spacing where there is sufficient evidence to indicate that the pool or reservoir spaced or about to be spaced may extend beyond the boundary of the spacing order or application, and the uniformity of spacing patterns is necessary to insure orderly development of the fe'etvttir-pool. (-1-0-2-1-42)( ) 04. E -x eeptiensFxcentional Welt te--Locations e4 -Wells and Well -Spacing Orders. 1-t#toit-pf* pe applicatimt-thee foie-:The-Pepartmerti may aimfove f:ttt-aclministrativea tattef. allest:elttiott-to-Sablieefima, 44,4):444 arid -1211.02 or .airy -Maiden -o1 the-444144114ion liehitt*- 1••-+l>aeir4. !iv a. 17:4 -An operator may apply for an exceptional well location. and the annlication will be nrocessed as described in Idaho Code 4 47-324(c). The application for an exceptional well location shall by -a pint• showing i ss lisle the following.,(1 ! 1 1 f)( Page 18 08_23_2016 Comment [e573: The spacing is less important than looking at the production data and determin- ing the drainage area, this should determine the spacing unit. A: This Subsection describes the statewide spacing In the absence of a field spacing order or any other data. Without production data, the drainage area cannot be determined. Done, July S. Comment (e58]: Should not be constrained by Section lines, this limits the 640 acre spacing availa- ble without an exception location. Could have unintended consequences if Section lines are not used, as resources may be stranded. Do other states allow non -Section units? A: Other states generally refer to unit boundaries, which are not required to coincide with Section lines. Resources may also be stranded due to faults or other factors that timit drainage. InfI!I drilling will pick up those resources if the cost justifies the addi- tional well. Sectlan Ones do, however, allow pre- dictable and orderly devetopment. This is only statewide spacing, and exception locations can be apptled for, or field spacing orders can be sought. Done, July 19. Look at lots equivalent thereto`, keep or toss? A: Decision made to delete these four words. This more clearly establishes the expectation that state wide spacing is based on Sections. The entire state Is covered by the PLS, so this wttl allow orderly, predictable development in the absence of any spacing order from the Commission. Comment [jat59]: 7/27: WY, UT statutes "lou equivalent to". ID might prefer to keep t.. statewide spacing as one government section. A: We DO have a mechanism in place to alter this for specific areas or circumstances (447-321). Comment [e60]: This should not be changed. It was negotiated two years ago, and Is similar to what other states have. Look at well spacing in other states. A: 1,320 original proposal. Generally, the larger statewide spacing unit in other states have larger setbacks from spacing unit boundaries and larger well spacings. Many states have boundary setbacks of 500 to 660 feet. Changed to 660, and interwell spacing deleted. Done, July 19. DRAFT for Rulemaking Purposes Only 1L• lAfftdavii that the annlicant has leased the entii • roposed spacing unit. unless integration is a so tveing apnli9d for as described in Subsection 120.06 below. An order issued by the Department may remove the uiremen>r for the affidavit: +l 1. b. list of names and addresses of applicant's lessors and uncommitted owners in the nronosed unit, and a list of names and addresses of lessees. uncommitted owners. and applicant's lessors in offset units: ( Affidavit that the annlicant has notified annlicant's lessors and uncommitted owners in the nrolmced unit. apd lessees. uncommitted owners. and applicant's lessors in offset units. This notice must include a cpnv oldie Application. instructions for responding to the annlication. and 'instructions for narticinating in the hearing. ( 1 d. A statement explaining fully the reasons why the exceptional well location is necessary or desirable: ( 1 es All geologic evidence. if anv. Thai sunnorts the excentional well location: ( 1 A man showing: ( 1 i 4 ai. The location at which an oil or gas well could be drilled in compliance with Subsections l20.01 -r 120.t or the applicable order, (4 11 15$ 1 It. The location at which the applicant requests permission to drill an oil or gas well and the location of the proposed spacing unit; and (4-11-15) ell'. The location at which oil or gas wells have been drilled or could be drilled, in agreement with Subsections 120.01 ot-4241:412 or the applicable order, directly or diagonally offsetting the proposed exception. No exceptional well location shall prevent any owner or operator from drilling an oil or gas well on adjacent lands, directly or diagonally offsetting the exceptional well location, at locations permitted by Subsections 120.01 or 120.02 or any applicable order of the Commission establishing oil or gas well -spacing units for the pool involved. (1 11 15)1 1 iv. The operator's existing leases in all spacing units directly or diagonally offsetting the snacing unit. ( bra' Applicant Notification of Exceptional Location. After the Department determines the application is complete. the applicant will send anv notice of hearing and resnonse deadline as follows: ( % a. In offset units. send to lessees. uncommitted owners. and the annlicant's lessors: b. In the proposed spacing unit. send to the applicant's lessors and uncommitted owners, ( ) l 06. Exceptional Well Location Combined With Integration. An pnerator who annlies for an exceptional well location and does not have the proposed spacing unit under lease may simultaneously apply for integration of unleased tracts within the nronosed spacing unit. The exceptional well location and integration onlications will be processed together under Sections 130 and 140 of these rules. Page 19 08_23_2016 Comment (e61]: What about carried proper- ties? $houtd this refer to an affidavit instead of a statement? A; No provision, or definition, currently exists for 'carried property'. It may be construed as leased, as defined In definition 010.31. Reference to uncom- mitted owners added. Done, July 19. Comment [e62]: Remove reference to uncom- mitted owners due to legal concerns? Comment (en]: Ust of lessees and uncommit- ted owners In adjoining units and applicant's lessors should be supplied, and they must provide notifica- tion to the mineral Interest owners In proposed or offset units. Operator should send copy of spoke - Von and notice of hearing to these people after EDI. determines it Is complete. Colorado only requires 2 owners to integrate, so may make sense In their context. May not make sense otherwise. A: The additional notifications are needed to protect correlative rights. Requirements modified, July 19. Comment [e64]: 'evidence, If any, that* to match statutory language A: Done, June 3. Comment [e65]: New subsection, July 19. Comment [e66]: Can we throw out requirement for 55% En integration with this? Otherwise, Com- mission could change the unit site, which affects the 55% and then they no longer qualify for integration. A: No, the 55% requirement is in statute and cannot be changed via this rule. Idaho Code 47-322(a) sug- gests that integrations and exception locations can be processed at the same time. The Operator pro- poses the spacing unit, so It is incumbant upon them to devise a spacing unit that protects correlative rights as well as develops the resource In an ef- fecient and orderly manner. Preappticatton meet- ings with the Department that resulted to all De- partment concerns being addressed would Increase the likelyhood of a successful application. Idaho Code 47.321(4) mentions that orders for exception locations may be granted when consent is obtained from unspaced lands where *the majority of mineral interest owners of those lands which would be included In directly or diagonally offsetting drilling units under said order, if saki order were extended to Include such additional lands.* This confirms the possibility that the Commission coutd create drilling units different from those proposed in an application for an exceptional well location. DRAFT for Rulemaking Purposes Only 05..0_2. Spacing Unit Changes. The (Aitiinist.iNf+pepartment wi!1):view applications to change the size or shape of spacing units established by Subsections 120.01'o.-. of these rules or an order by the Commission`— Changes to snggljytg units may be authorized if the change would assist in nreventine waste of oil 9r gas. avoid the drilling of unnecessary wells. or nrotect correlative rights. Snacins units will be rectangular in shane and described using eeogranhic boundaries in the Uns�1'Sted Stales Public Land Surveys. The size and share of the units may be adjusted as reasonably reauired due to i eololtic 1 or other circumstete+es affecting the orderly development of a nool„� Annlications will be nrocessed according to the pmcedures in Secti— 140 of these titles. (4 11 14( 1 a. The spacing of wells as described in Subsecti¢n 120.01 of these rules is Code 6 47-321(21( a ect until scoassdstkhy g snacinv kmifs. Production and reservoir irjformation,shajl be used to a bish spacirp, units, ( b. snacing units must result in the efficient and economic development of the nool as a whole. in establishing snacing units. the Denartment detennines the unit's acreage and shape based unon evidence introduced at the hearing. The Department may divide a nool into zones and establish spacing units for each zone if necessary. The spacing units withir�he zone may differ in size and shane from spacing units in any other zpne but may not be smaller than the maximum area that can be efficiently and economically drained by one well, ( ) c. A snacing order may nermit only one well to be drilled and comnleted in the common source of 5unoly on any snacine unit. The well must be drilled at a location authorized by the order. An exceptional well location may be included in the request to establish spacing units if. upon application, notice, and hearing. the Department finds that the spacing unit is located on the edge da nool or field and adjacent to a producing unit. or that the reauired well location on the spacing unit would not be likely to nroduce in navine auantities. or that surface conditions would Aubstantially add to the burden or hazard of drill the well. or for other good cause shown. The Denartment shall act to offset any advantage that the nerson securing the exceptional well location may have over 41hei producers by reason of drilling the well as an excention. The order must include nrovisions to prevent production from the snacing unit from being more than its lust and equitable share of the producible oil and gas in the pool. ( ) d. An order establishing spacing units for a pool must cover all lands determined or believed to be underlain by the nool and may be modified by order of the Dcnautment to include additional areas subsequently determined to be underlain by the nool. ( ) 121. -129. (RESERVED) 130. INTEGRATION. When two (2) or more separately owned tracts or interests arc within a spacing unit, the owners of the tracts or interests may voluntarily integrate their tracts or interests for the development and operation of the spacing unit. In the absence of voluntary integration and upon an application by an owner within a proposed spacing unit, the (44tt+aissioripepartment n it#ri b.rr-car:-;+ ri-well--+r ai+ shall order liner tie integration of all tracts or interests within the spacing unit for the development and operation of the spacing unit. (1 11 15)( 1 01. Integration Application Requirements. l++*gmiicer-iippli tic .- c+4+-be--tiltcl--++pit#}- lie (=.++ii+++is}it io hardopj--and-eleoconia4 ai . Applicants must submit one (1) paper copy and one (1) electronic cony of the application. The application must contain be accompanied by the following infoonnati nitems: 44 11 1�i( a. Nimand iipt4kwitinformation listed in Idaho Code 6 47 -322(d):+ -1`4_1--)-5-f( b. DeseFiptiJn of tl -stit 4u14 k ter..-imet i+4 4An application fee as described in Idaho Code 6 47-320: and (441-144( c. Wet oftl+e-s++bje.6t-pac-ittwttnii-itlert++tyt+tr lila-lay.-anon- tltr ill site. t:^1. liit+l+tt, pil+rlia tntf+oatd;;Af idavit that certifies the applicant published a notice of the application as required by Idaho Code 6 47-322(e). 44-4.1--14)( 1 Page 20 08_23_2016 Comment [jat67]: 7/27: - Can the Commission proactively change the unit? A: Possibly, but they must have a hearing. Comment (e68]: Same concerns about geologic units and not just sttdcing to the statewide spacing. Is using geologic data even allowed? k Idaho Code 47-321(2)(b) atiows adjustments to size and shape of units based on geologk or other circumstances. The language has been modified to reflect this. Statewide spacing is used to establish spacing in the absence of any data, as described to Idaho Code 47-321(2)(a). As production occurs, reservoir analy- sis can estimate what the optimum spacing is for a given pool. Idaho Code 47-321(3) gives authority for modification of spacing units. _ Comment [e69]: Should be permanent to pro- vide for orderly development. A: Spacing should be based on the area that can be efficiently drained by one well. In most other states, this is already established through field spacing orders. Idaho has only had significant production since August of 2015. Once enough production occurs, reservoir analysis can be done to determine what the spacing should be. Camille* [e70]: Language Is permissive ute, and is talking about spacing changes Inc hear- ing not the statewide spacing. A: The exact reference in Idaho Code 47-321(2. for a propose modification to spacing determineu by a hearing, but the same principle applies. Idaho Code 47-312(1) states that the Department shall promptly establish spacing units for each pool, except those pools where not enough data exists. The statute does not state what the statewide spacing should be in the absence of any data, so IDAPA 20.07.02.120.01 and 02 provides that guid- ance. In the absence of this guidance, the Depart- ment would seek an order establishing the size and shape of the sparing units as described In Idaho Code 47-321(2)(a). A complete absence of size or shape requirements for sparing would create dis- orderly development and hinder the protection of correlative rights. so the statewide spacing in the rules provides a valuable function. Comment [e71]: IDL envisions this would be a field wide spacing order, but participants not sure if field spacing is addressed In this rule or In statute. A: Field Is defined in Idaho Code 47-318(e)e.s " the general area underlaid by one (1) or more pools." Field wide spacing is not fully described in the stat- ute, tatute, but Idaho Code 47.320(3((j) describes an appli- cation fee for "a field -wide spacing order". Spacing of pools is referenced throughout Idaho Code 47-321, and given the definition of "field" this could be extended to a field. Lastly, unitization of a field is described In tdaho Code 47-322(2)(a), and proposed spacing units must be described In the unit applica- tion. The rules do not specifically describe field spacing, but the spacing of pools appears to ade- 1 quately describe the process. DRAFT for Rulemaking Purposes Only d. —A t tolo,,i tinentent- plaining the iilrrly-• wesence # loon:,: (1 11 1 f -e.-4-Staiement-Hf-he prnposed-opetdtions- ti tc•ti3iieing-4 nic-iii -Nit-nidi@ and-addfessH 1 e vyKt:tLf: i1 11 15) f .N fr< aafeenteftt-and-a-pfNlfc l• e-liar+n; 1' 1 1 I ?: tofall-fttitte ' on4t-and-nli.:tsfLit i:t' Nie-appli at on-ifiehnling z t�� . ziAw+52s-: and -r i eEti•. ; a r.:a-wit#t1 1 1 1 1 e ) Baca--that-at--least--tifty-t+ue-nerc °' 1--ititr+ -owners-fn tai 4t404+44t. _atitxt !. 12 11 11 15) ?. r1'.iifcif2a4-4-Statif+g-tlte-h4 itet4-bone 9a1rran4 :-.t'r.1\i?_':.:13P.?i! [ 5441f rite i}tteg}at{(►F+ a�}�lii ati*�n: anti (1 •-1'1--1`•-11 - f. - +e•,titne-4-41.4ts-clot:f ttrf+tifw -the appheatiott 4}-etanite neefision,r-mittliin-a-period• o€.tithe-no-le than-4xty-(403-&--tH-ink►r+wnti+ural-interest-miters-of-tlteapltlicane•s n+tention,-to tick t4 the -ruttier l-Feso frees in tntit sand teaEl:tai-agreement-avid+-9wnerF,i4vtlte-va€ing-nnit- !t ka ,t•one tcontact-nott.:t-otail-Fetion-receipt• queested-:eat-tc an•c+WHerls-lf t -known -address, 1-f-an-owtteF•t$ a t+i+st{aennat tnict-45 -located, -r' usm - applir:+n+t-lies•- ltaustecl +t -to-feae#+-;t+t agreement with-nwnerti-i7 a .ve.c .g -unit. (1 11 15} 02. Resitease-te•tlte••A•ppticatiottancl-1•ieawingProcessing Integration Annlicatlons. 4,4-1he-tii+te•the ifftegfa-t+e+t tf plicatien-• -will+-4l+e- oininissic+tt: the-apylicant-+nnst-ecot+€y--iter- n-eory--o-tire--integ+altos applieatt,in-.incl-,a•ft infonnini+n-WUs etlt+nall-f+tif3efal-i • - . •integfated bailer -Nie affi.t_ - Hw n thte t l !k t•, {- -1-}ch im-tl+e date-of-szr}ice t1+eopp itatkw. rl rt eSfOf+se 444 -the ►litatit+i+ w ill+ ti+e c�t+++t�is;it+n � l+r-F +n+niti.irH► ill ehedt+lt-a 44eif+=ing-ct++-the-applicatie++ of=-the-heatin,-to•all-++tif+ei tatet .4 t•wi+et4-+R-t -onit-tote-tin ted-+i+tck tl+a-a1+pltcatie++•i+t-the•i+t;+nn rettuired t- otle: Aunlications will be nrocessed as ner Section 140 of these rules. Wctual mailing costs include. but are not limited to. Hostage. envelopes. copying. and staff time for nrenarint lication conies for mailing. f4-1-1-444( ' 131.--IN.4-1 •ETR4 1.ON-ARfl + •fl+e-t ontt ti5;it+ft-will-•ist+e-an--i+ttegfation-eider• +4=-the-connoi;4on- tp i Ls art application -fig,• mitt -Fanta- lite itnegthtion-+flee +viii;tothori e4he-dti•Ning-and-operation off-well-it+-avaein •tiftit,pps fil the -bait otic# +++a+tt+rf ift w -lite aeingiinit-may-elkst pat ipatet#+erein-and•PreseFibe the-mannef-' casts-of4FillingondopecatingLhe well-apon•retia:-il+fitafe-jusfand fea-►ftal k-fi+t+r.+t,ntt•to ic►+t 47 322.3/44a4i* 4 ode. ---01. Q4iiliFifntatiea--Ft?it+tsAlpon issttitit a -ef an- integration ofcrlc=t-1:yt1+e•E4iiifii+,t:fettytheopetittorot-Nte .. an-elactio+is- n+•te-al ►t}-leasrcl.Hwf+e. ,'•-. -pa tarsi l tided -1.;-S. mail; -•Te-ekctikt^ fin= nta-.t-ekar4.1-4dentify t - attit+tr-4emt:, tot t; owner -does it tt;-esti#-it-revuerise-deadline--Trlta•tentts-i++•`lt+ltsction; 1,14 .442.. 43, anti 444 -of tit +ales-afe-araila n-an-integf,ate4-sl im unit. -f� 11- i► 02 - Ictt f+t toterest-Awner.-Anowitc ht kers-to-(eine 'asaworlOwa4 inieresi-ownet:will-pat. the tropetlionat.ef:= •th a./az? .at:t:: ?f dl}hong-and- ending-a-well--irtic - r s ew+te who-:ih -'tit-thz z t: : (Jotting►-and-ope+ut•ing the-well•are entitt d t:f tb:' .. z :1' S and-wortiit tttn-a -feint--operettng-ag entettt--ii ec 2d b; t".2 (2 Ifitifeitttt-in-the integration-nr. ler. Page 21 -- 44-44--1 08_23_2016 Comment le72]: sentence added to clarify what constitutes 'mailing costs' in statute. July 19. DRAFT for Rulemaking Purposes Only -$3:-----neoniet►Ei+t , -going interest- Awnef- -wife+- wlw- c e,-to-4H,+fe to--the-tisk and a.Atfal 6444S ov.s�.t ++Itt:eI+Ei+tg-weckis3g HY:41eFS-Rfe-eRti44ed4wtlie-ir-ftitpek44,4-6har-e3-e-f-tlw-pFtxkiGEiAfi-Af-4iit.,-*44-rH4444H-e*etvil-o4ft.-e-it.N14-44tyrontil the-opetnter-p1 _-hw-reeekefed-up-t:+-tit+er-Inindrtd--} c'ettt-(-3t3t1%) w14gs-intere;.t-nwne�a,''., e - ', t e..1 E f Ali 11 i - . • .• 44144)-indthe-+{fit t►rt4e 1. Alter-al4the-Esau-ha..e-been••teeover ittg-ewner1-in 4be ae ng-tt+titr+1ie-noneonsenting owner H+vns•tlj»epeftienate-share••in-t1): 11.-.3 11, sa: ice.faci1ities. and -pr duetio+t,-and•4il he Berl+lc ►r #b+ rets as+f-t e tteltf ta+a�;enEiatg�wner hnef-ai nally--agreed-te-pay-tire-eosts-el lrillittg-e+t--oprrttt-ins-tlte-•welt -oprtntoef-tl integrated••spaeing-tmit-fInd-ne+tft+ltsenti+tg- edeint-intend•-►wners-inutit-etttef-into Nin t appre+ed-ley-tits Con+tt+is4ion-it-Elia-integfacion-o der•. (1 1 1 1. ) 04.--Leetse--A+}-o -a•leaw-Willa-the-opet:tE teintrwatefl- fE:i+w-unit-under the t. rtn✓-etnd-et ndiu nein tl}e'-iiti3j3- n 2:4ei'. r— it.--ey.4r4E• Y. ill 1.3E. . :+Re-'it!lttlt-11 _•':, S integnttrd-,tiKmg-ttn+4-ntu4t-pay-a-ka6ingr:ralt+µrtrt thc�-�++ke lett+t�j n mens j fa,-a:-tl+eepe* tor-originallyr paifl`to-etlter-t+wnet -Ott-tltr--4pett i t; -taxi tF. 1h4 i:..:urne Pf-the-inteffulifnt- der -41 election-•with4hkwp km: erietlsrt•4itt #i+t-tie-integration arder,-4ueh-owner'.;+nt E-w144-be41eetned1ed ed•undec Ehr tettw;Intl-e onttitiontrin-tlte+ntegmtio+)-el ler. --------- (1 1 l 15) 1131. -134134. (RESERVED) 440135. UNIT OPERATION AGREEMENTS. Any person desiring to obtain the benefits of Section 47-323, Idaho Code, relating to any method of unit, cooperative development, or operation of a field or pool or a part of either, shall file an application with the Department -4'4 appy al -o4' -such -afire ntrnt--;vltielr-shetll-h;t+e-:tttaehe ft t.tly:- x l' :r1/eh agreement: -N applieation-Slta114tec by-t+t+lalieationof a Itsa1-notes-e-i+t-a-new +alteraCgenrral-ci 4)1tt4issi in , atatl-th+e unt5-of-the-unit-opeRvtion 14-4-1-144 1 01. Unit Operation Application. Annlicants must submit one (1) natter copy and one (1) electronic cony of the annlication. The application must be accompanied by the following items: ( 1 a. Information listed in Idaho Code 6 47-323(3): b. An application fee as described in Idaho Code 6 47-320: 02. Processing Unit Operation Applications. Annlications will be processed as Der Section 140 of these rules. ( 1 136. --139. (RESERVED) 140. PROCESSING APPLICATIONS NOT LISTED IN IDAHO CODE S 47-320(1) 01. Applications Covered By This Section. Applications not processed under Section 040 of these Riles must be nrocesssed as described in this Section. ( 1 02. ?reapnlication Meeting. An applicant must meet with the Department staff at least five (5) but no more than kwentvl, (20) busip ss ilayA prior to filing an application. TJre__nugos re (If this meeting is to coordinate potential hearing dates. _ ( ) 03. General Review Process. Annlications will be nrocesssed as per Idaho Code 6 47-324(c).( 1 04. Resubmittal. The applicant may modify incomplete annlications. The annlicant may resubmit the ptodified annlication within fifteen (i15f1 business fys of tiie app eivin nlication. No additional annlication fee will be required within that fifteen (15) days. but pew fees inn!, be_ required if the Department receives the revised application oast that fifteen (15) day dead line and the operator does not request an extension for good cause. ( ) Page 22 08_23_2016 Comment (e73]: Should be longer, 20 business days? A: Change made, July 5. Comment [e74]: Business or Calendar days? A: Business, change made June 9. Comment (e75]: More flexibility needed. / A: 101 has 15 business days to completely review the application, so this timeframe is consistent. A: Done, lune 9. Comment [e76]: change *war to "may"? Due to circumstances beyond their control, Force Majure, etc. This could lead to Inconsistency, and may be subject to misuse. A: Some circumstances may require a longer time frame, so the change is acceptable as long as an extension is requested for reasonable cause. Done, June 9. DRAFT for Rulemaking Purposes Only n5. Reimbursement for Mailing Costs. For inteeration and unitirttion annlications. the Deoartnieat will se— - he applicant an invoice after mailing copies of theapnlication. The ag 1iirant must nav the invoice within thirty (au) days of receipt. ( 1 141. —199. (RESERVED) SUBCHAPTER C - DRILLING, WELL TREATMENT, AND NT PERMITS 200. PERMIT TO DRILL, DEEPEN, OR -PI: -1-:C BACF RE-ENTER. 01. Permits Required. 'The Department must receive an annlication and anorove a nermit before an operator begins operations to drill, deepen, orplug-haek € -etl =Than the-eu ting -or toeing-lleriion ieat +- :.. ,deePetvroil4tive back re-enter any well for oil or gasrand-app+rwal-obtaioe 1. Drill= nad construction mav {proceed nrior to nennit annroval if a surface use agreement or lease is in nlace. and a sundry notice is submitted to the Department. No drilling or casing mav occur until the nermit to drill is annmved by the Departmept. (4-20--14-)f 02. F'eesAnnlication Processing. Asp-appliaati -fee s ni:- .4 pplw:ai«ao-fiwto 4 11,44eepen ot g-haelo ,c +,-i i requifc1-t w i ? a 7-2I1 rr. }-v:lhi 4 414e-fe us -d+441in p niI tis-emiifed.Anolications will be processed as described in Section 040 of these rules. 0-24424 1 03. Time Required to Commence Operations; Term of Permit. cep Hermit will expire on the first anniversary of the date of issuance of a permit to drill, deepen, or-plugli-wiir lei %t willpira �►+�d-tjr� fl►ttl+er-foree-of - P or re-enter unless the work for which the permit was issued has been started. Prior to the anniversary date, the owner or operator may apply for a one-time, six-month extension -i€ -woo- ha hat,--riot-s4artetl. If conditions have not changed and no changes to the permit are requested, the extension may be approved by the Department. If a permit expirus to-tlrr- a+k++t-t TIE 3rt140trr: then ptatic'-+- fc +i+ -}mf-1«> eomilleneilwan onerator must reannlv before beginning operations. 049-4-2)( 1 04. Location of Wells. No oil or eas wells mav be itrilled within three krundred (3001 feet of existing occupied structures without express written permission from the owner of the structure(sl. ( 1 0-05. Application. The Application for Pennit to Drill shall include a Department approved form and the following: (3-29-12) a. Aft.ac:efrate-pletA man with a surveyed well location at a scale of one (1) inch to one thousand (1.0001 feet showing the location of the proposed well with reference to the nearest lines of an established public survey and with reference 'to the boundaries of the nroposed spacing unit that conforms to the reauirements'jg Subsection 120.01. or any spacing reauirement in a Commission Order. ( 29-1-24 1 b. The location of the nearest structure with a water supply, or the nearest water well as shown on the IDWR registry of water rights or well log database. (3-29-12) c. Information on the type of tools to be used and the proposed logging program. (3-29-12) d. Proposed total depth to which the well will be drilled, estimated depth to the top of the important geologic markers, and the estimated depth to the top of the target formations. (3-29-12) e. A schematic diagram of the BOP and well head assembly. The schematic diagram should indicate the minimum size and pressure rating of all components of the well head and BOP assemblv. ( 1 of The proposed casing program, including size and weight thereof, the depth at which each casing type is to be set. (3-29-12) Page 23 08_23_2016 Comment [e77]: Are county grading permits required? A: Unknown. With 44 different counties, this ques- tion potentially has 44 different answers. No change made, June 9. Comment [e78]: If a surface use agreement or lease Is In place then a prohibition on pad construc- tion prior to permit approval is not needed. In reclamation section, require reclamation of all pads constructed. Instead, Sundry Notice with compliance to Local regulations. A: Changes made. No reference to Local regulations Included, as IDL cannot enforce local regulations. Comment [e79]: "constructed" or "drilled?" A: Changed to "drilled", June 9. Comment [e80]: Should be farther, maybe SOO. A: 300' is similar to, or greater than, NFPA 30 for setbacks, and is the sante as the tank batteries in this rule. 15' Is the setback often recommended for plugged and abandoned wefts. States have setbacks that vary from zero to 1,000 feet. Several are in the range of 200 to 500, and many allow for exceptions to the setbacks. No change, July 19. DRAFT for Rulemaking Purposes Only fg. The proposed type -:u; l- wn. number of sacks. and total volume of cement jtc4 be used, and the intervals cemented. (3 29 12)( Information on the drilling blare includi0g on2oosed tune of mud. 4-3 29 424 Best management practices to be used for erosion and sediment control. (3-29-12) Plan for interim reclamation of the drill site after the well is completed, and a plan for final reclamation of the drill site following plugging and abandonment of the well. These plans must contain the information needed to implement reclamation as described in Subsection 310.16 and Section 510 of these rules. (4-11-15) jk. Applications that include the following actions must also provide the information f inn thereauired jn each respective Section of these rules: (3 29 12)( ' i. Well treatments require the submittal of the information in Section 210. (4-11-15) ii. Pit construction and use requires the submittal of the information in Section 230. (4-11-15) iii. Directional or horizontal drilling requires the submittal of the information in Section 330. (4-11-15) 1. kffidavii that the onerator has leases with all miner?! interest owners in the spacing unit. An order jssued by the Denartment may remove the requirement for the affidavit. ( m. An aoolication fee as described in Idaho Code 6 47-320. n. Bond meeting the requirements of Section 220 of these rules. ko. Any other information which may be required by the Department based on site specific reasons. (3-29-12) 0506. Permit Denial. Applications may be denied ki h 4 41owin re, - a. li titft-fac -w -not :tFlm-t ttec-i. 43 29 12) Applamt-io►3 -(349-1-21 e. Failte-to-po4tec-It►i►ed-I ttl4 ----+; 29 121 --(#: —P-Fopeseiljf the proposed well will result in a waste of oil or gas, a violation of correlative rights, or the pollution of fresh water supplies. 201. MULTIPLE ZONE COMPLETIONS. 01. Requirements of the Owner or Operator; Request for Approval. A multiple zone completion may be approved by the Department upon application by the owner or operator anit-payme nt-ef:ta-apl►Iialmn-fee -;v- hereio- w kkd. The application shall I , niedy-a+-contain t ow' s items: f ) a. exhibit showing the location of wells on applicant's lease and all offset wells on leases,:( b. ate# ->13a11- -*►A11 material facts involved and the manner and method of completion proposed, including a diagrammatic sketch of the mechanical installation of the proposed well- ( 1 c. TheAn application fee Fr ae 1 thin-tegtfiredk allseetiE t4.41ni1e4- lice-*$ Page 24 08_23_2016 Comment [eel]: The proposed type, number of sacks, etc. A: Change made, lune 9. Comment [e82]: Does mud program need to address Petroleum versus water based mud? A: Department will evaluate proposed mud with site specific conditions. Disposal covered under Subsec- tion 310.13. Done, July 5. Comment [e83]: "Sworn statement" should be changed to "affidavit". A: Done, June 9. Comntestt [e84): Does not allow carried ante- esti. A: No provision, or definition, currently exists ft. "carried property". It may be construed es leased, as defined in definition 010.32. Reference to uncom- mitted owners added. Done, July 19. Comment [EW85]: Delete this, and instead require them to not produce until integrated or leased? DRAFT for Rulemaking Purposes Only the tilitig t I mi=l+ -app attc -shall-be i- en bb-the-apf►iis otiti441-4o-eaelt-offst4-4teFater-o-notiee-eenta-itting-a h-11-4e6t:riptiott-of, oopestd-uo upletiCcrnbieb-aj wf vl i:, t tetkenti-prt.af.tl'itt:iIin tmtde-4-iiflida.it-whit#-ahall-1 attaelted-te-the-applic-titien-ShOW4112,-Iti ages-att444(+essei of t` c::e 12 7.1:1e41Hw4i43a wa-otailecl.as described in Idaho Code 6 47-320: (1 '.'_ 15)f 1 02. C-onclitions--for-Apprevnl:-Cause -10-4iettringAnolication Processing.-1-n--the-event-The 13t tat#ttwettt ilio agreeoiettt-}vith tl of lieatiet: a: -!d :let Pc41i,et with-lite-1)epaftinent-witltio-f#cen(15) :t: 'fthz- . . '. . • ett shall ltreppfivrttl---as-au--anieuthutut t:i 2:: driliitag-pet+oil-4#aoy-t►l t--opefatof- �e its-w;itittp-with-lite Nepaftoteot-aw- e :•inti to ;ugh Haritipla-* eiu letioo-ttr-if4h -D pit#night- s-not-tt-ag#eetoent-wital-tht-typlieeti* n: the-tftdtter•-iltell l i+t l sting duly--eiveu- 3y 4 e Pefafttttewt Annlications will be processed as described in Section 040 of these rules. (3 29 124 ' 03. Zone Effectiveness; Requirement for Production Testing. The Department may require such tests as necessary to determine the effectiveness of the segregation of the different productive zones. (3-29-12) 04. Commingling Production. The Department may require that oil or gas from multiple zones be produced through different sets of tubing, if needed to protect correlative rights or to prevent waste. (3-29-12) 202. - 209204. (RESERVED) 205. RECOMPI.ETiONS AND PLUG BACK 01. An annlication for a recomoletion or nhie back in a well Willi an excention location that does not meet the snacine requirements in Subsection 120.01 will be nrocessed under Section 140 of these rules. ( ) 02. Annlications for recomnletion or nlue back must include the following: a. The annlicable U.S. well number: b. A detailed statement of the nronosed work. including: i. Description of nronosed pluming materials. volumes. nlu lg, meths. and methods as described in Subsection 502.05. as annlicable to the intervals being nluesed: ( ) to proposed plug's death from surface: ( ) iii. Depth and number of perforations pronosed in the new target interval. 206. SUNDRY NQTICES Anv person Riving the Denartment a notice that does not reauire an annroval or order SII submit 1 a sundry notice. These notices are required when the condition of a well is temnorarilv modified. such as. but not limited to. Bow testing. starting nmduction. livorkover. etc. ( 1 207. -209. (RESERVED) 210. 'WELL TREATMENTS. 01. Application Required. An Application for Permit to Drill required by Section 200 must include any plans for well treatment if they are known before the well is drilled. If well treatments are not covered in the original drilling permit, then an appltention-te-totte,tttl-the-pesu1it-be-txac#e1he operator must submit an application for well treatment to the Department with an application fee. Approval by the Department is required prior to the well treatments being implemented. Actions to clean the casing or perforations not in excess of pressures sufficient to overcome the fracture gradient in the surrounding formation are not considered to be well treatments, but operators must notify the Department when such actions occur. Applications for well treatments must include the neFmitU.S. well number, well name, well location, as -built description if drilling has been completed, and the following: Page 25 08_23_2016 Comment (e86]: This is only true for wells that do not meet the minimum spacing requirements in Section 120.01 and 02. The well may not have been an exceptional location to begin with. A: Change made, June 9. Comment [e87]: Specify amount of cement or length of plug proposed. A: Done, in 02.b.i above, lune 9. Comment (e88]: will submit? subject/verb issue Done, lune 9. Comment [e89]: Do we need more specificity on this? Do counttes get notified? A: Idaho Code 47.317(10)(a) requires notification of a city or county upon receipt of an application. A sundry, however, Is a notification and not an appli- cation, so the Department is not required to notify the city or county. The Department is working on a statewide database that would include this infor- mation, but at the current time these are only available through a publk records request. DRAFT for Rulemaking Purposes Only a. Depth to perforations or the openhole interval; b. The source of water or type of base fluid; 11 II 13f (3-29-12) (3-29-12) c. Additives, meaning any substance or any combination of substances including proppant, having a specified purpose that is combined with base treatment fluid by trade name, if available, and MSDS for each additive; (3-29-12) d. Type of proppant(s); (3-29-12) e. Anticipated percentages by volume and total volumes of base treatment fluid, individual additives, and proppant(s); (3-29-12) f. Estimated pump pressures; (3-29-12) g. Method and timeline for the management, storage, and disposal of well treatment fluids, including anticipated disposal site of treatment fluids or plans for reuse; (3-29-12) h. Size and design of storage pits, if proposed, in conformance with Section 230 of these rules; (4-11-15) i. Information specific to hydraulic fracturing as described in Section 211 of these rules; (4-11-15) 1• Summary identifying all water bearing zones from the surface down to the bottom of the well; (3-29-12) k. Fresh water protection plan that describes the proposed site specific measures to protect water quality from activities associated with well treatments. The Department will review this plan in consultation with the IDEQ. The Fresh Water Protection Plan shall include the following information: (3-29-12) i. Ground water and storm water best management practices; (3-29-12) ii. Statement certifying that the owner or operator is complying with Spill Prevention, Control, and Countermeasures (SPCC) requirements administered by the EPA; (3-29-12) iii. A preconstruction topographic site map or aerial photos identifying all habitable structures, wells, perennial and intermittent springs, surface waters, and irrigation ditches within one-quarter (1 i4) mile of the oil or gas well. The distance or location may be changed based on site specific factors such as horizontal drilling, the expected length of fractures, or lack of suitable water sample locations within one-quarter (1/4) mile; (3-29-12) iv. A brief description of the structural geology that may influence ground water flow and direction; and (3-29-12) v. The general hydrogeological characteristics of the treatment arca and surrounding land. (3-29-12) 1. Certification by the owner or operator that all aspects of the well construction, including the suitability and integrity of the cement used to seal the well, are designed to meet the requirements of proposed well treatments; (3-29-12) m. kffidavitj signed by the owner or operator stating that all home owners and water well owners within one-quarter (1/4) mile of the oil or gas well, and all owners of a public drinking water system that have a [DEQ recognized source water assessment or protection area within one-quarter (114) mile of the oil or gas well, have been notified of the proposed treatment. If a well deviates from the vertical, these surface distances will be from the entire length of the wellbore from the surface to total depth. The notification will also offer an opportunity to have the owner Page 26 08_23_2016 Comment te90]: We should require third party sampling to ensure integrity of the results. What do water well drillers have for requirements? They work In the aquifers. What do other state agencies do in Idaho for re- porting and sampling? What about other states? A: IDEQ typically requires that all sampling be done as per a sampling plan that follows EPA protocols. This Includes a Quality Assurance Project Plan, du- plicates, blanks, purging, and other measures that ensure good data Is collected. Paragraph 08.e in this section requires IDEQ review of sampling programs, so this requirement an be met. Whether or not the operator samples or contracts with a consulting firm Is Immaterial. No change, July S. DRAFT for Rulemaking Purposes Only or operator sample and test the water, at the owner or operator's cost, prior to and after the oil or gas well being treated. Notification shall be by certified mail to the surface owner as identified by the county assessor's records, or to the well owner as identified on the IDWR registry of water rights or well log database; (3-29-12) n. Proof of publication in a newspaper of general circulation in the county where the well is located of a legal notice briefly describing the well treatment to be performed. Notice shall also advise all water well or public drinking water system owners, as described in Paragraph 210.01.m. of these rules, of the opportunity to have their water tested at the owner's or operator's cost before and after the well treatment; and (4-11-15) o. Additional information as required by the Department. (3-29-12) 02. Master Drilling/Treatment Plans. Where multiple stimulation activities will be undertaken for several wells proposed to be drilled in the same field within an area of geologic similarity, approval may be sought from the Department for a comprehensive master drilling/treatment plan containing the information required. The approved master drilling/treatment plan must then be referenced on each individual well's Application for Permit to Drill. (3-29-12) 03. Annlieation Processinp,,,Apolications will he nrncessed as described in Section 040 of these rules. 1 0304. Application Denial. The Department may deny well treatment applications for one (1) or more of the following reasons: (3-29-12) a. Application does not contain the information in Subsection 210.01 of these rules; (4-11-15) b. Application fee was not submitted. (3-29-12) c. Proposed treatment will result in a waste of oil or gas, a violation of correlative rights, or the pollution of fresh water supplies. (3-29-12) 0405. Time Limit. If a treatment approved in a driller l rpt ►f ankntlt41-ti+illing permit is not started within one (1) year of the approval of the well treatment, the wel4-4tsatmt rtl permit will expire and reapplication will be required prior to conducting the well treatment. Prior to the anniversary date, the owner or operator may apply for a six-month (6) extension. If conditions have not changed, and no changes to the permit are requested, the extension may be approved by the Department. (-3-2 4244 ) 4506. Inspections. The Department may conduct inspections prior, during, and after well treatments. (3-29-12) 4607. Reporting Requirements. A report on the well treatment must be submitted within thirty (30) days of the treatment. The report shall present a detailed account of the work done and the manner in which such work was performed, including: (3-29-12) a. The daily production of oil, gas, and water both prior to and after the operation. (3-29-12) b. The size and depth of perforations. (3-29-12) c. Percentages by volume and total volumes of base treatment fluid, individual additives, and proppant(s). This requirement can be met by the submittal of well completion field tickets if they contain this information. (3-29-12) d. Documentation demonstrating the chemicals used in the well treatment have been reported to the website www.fracfocus.org, its successor website, or another publicly accessible database approved by the Department. The chemical information must be reported in a systems approach. (4-11-15) e. Information specific to hydraulic fracturing, as described in Section 211 of these rules. (4-11-15) Page 27 08_23_2016 DRAFT for Rulemaking Purposes Only f. Static pressure testing results before and after the well treatment. (3-29-12) g. The amounts, handling, and if necessary, disposal at an identified appropriate disposal facility, or reuse of the well stimulation fluid load recovered during flow back, swabbing, and/or recovery from production facility vessels. Reporting of recovered fluids shall be included with other monthly production reports required by the Department. Storage of such fluid shall be protective of ground water as demonstrated by the use of either tanks or authorized lined pits as described in Section 230 of these rules. (4-11-15) h. Any other information related to operations which alter the performance or characteristics of the well. (3-29-12) 4708. Fresh Water Protections for Well Treatments. (3-29-12) a. The Department will not authorize pits, lagoons, ponds, or other methods of subsurface storage for treatment fluids within IDEQ recognized source water assessment or protection areas for public drinking water systems. Owners or operators must store and transport treatment fluids using above ground storage facilities and tanker trucks for well treatments in these locations. (3-29-12) b. The Department will not authorize well treatments to create fractures within five hundred (500) vertical feet above or below fresh water aquifers. (4-11-15) c. The Department shall require the owner or operator to complete fresh water monitoring at the owner's or operator's cost before and after a well treatment unless the Department, in consultation with the IDEQ, determines that the proposed treatment does not pose a threat of pollution to fresh waters. The Department will review and approve all monitoring proposals with the IDEQ. The monitoring will be done using representative existing water wells or surface waters within one-quarter (1/4) horizontal mile of the treated well. For wells that deviate from the vertical, sampling may be required within one-quarter (1/4) horizontal mile of the wellbore's projected location on the surface. If no water wells or surface waters are present in this area, the sampling area may be enlarged as needed with approval by the Department. If the Department determines that existing water wells are not representative of the ground waters that could be impacted, then the Department may require the owner or operator to install one (1) or more ground water monitoring wells at the owner's or operator's cost. The owner or operator must obtain consent from appropriate property owners to gain access prior to any sampling or well construction. When monitoring is required by the Department, the operator will prepare a monitoring plan that includes the following: (3-29-12) i. Location of proposed monitoring sites; (3-29-12) ii. Construction details of any sampled or constructed wells including total well depth, depth of screened interval(s), screen size, and d+ill+twwe 1 log. For existing wells, the operator must make every reasonable attempt to locate this information; f;_3.) 1221 iii. When possible, data from the existing wells collected within the last five (5) years and analyzed in a state or EPA certified drinking water lab; (3-29-12) iv. List of proposed analytes, testing methods, and their detection limits; (3-29-12) v. Additional tests such as stable isotopic analysis; and (3-29-12) vi. Pre-treatment sampling and analysis when no relevant data exists, and a schedule for post-treatment sampling and analysis. (3-29-12) d. The owner or operator will provide the Department with copies of any analysis or reports within thirty (30) days of samples being taken. All samples must be analyzed in a state or EPA certified drinking water lab. (3-29-12) e. Pollution of fresh water supplies due to a well treatment is a violation of these rules and Title 47, Page 28 08_23_2016 DRAFT for Rulemaking Purposes Only Chapter 3, Idaho Code. (3-29-12) 211. HYDRAULIC FRACTURING. 01. Application Requirements. In addition to the information required by Subsection 210.01 of this rule, the owner or operator shall provide the following application information regarding hydraulic fracturing: (4-11-15) a. The geological names and descriptions of the formation into which well stimulation fluids are to be injected; (3-29-12) b. Detailed information on the base stimulation fluid source. For each stage of the well stimulation program, provide the chemical additives and proppants and concentrations or rates proposed to be mixed and injected, including: (3-29-12) i. Stimulation fluid identified by additive type (such as but not limited to acid, biocide, breaker, brine, corrosion inhibitor, crosslinker, demulsifier, friction reducer, gel, iron control, oxygen scavenger, pH adjusting agent, proppant, scale inhibitor, surfactant); (3-29-12) ii. The chemical compound name and Chemical Abstracts Service (CAS) number as found on the previously submitted MSDS shall be identified (such as the additive biocide is glutaraldehyde, or the additive breaker is ammonium persulfate, or the proppant is silica or quartz sand, and so on for each additive used); (3-29-12) iii. The proposed rate or concentration for each additive and the total volume of each shall be provided (such as gel as pounds per thousand gallons, or biocide at gallons per thousand gallons, or proppant at pounds per gallon, or expressed as percent by weight or percent by volume, or parts per million, or parts per billion); and (3-29-12) iv. The formulary disclosure of the chemical compounds used in the well stimulation(s) for the purpose of protecting public health and safety. (3-29-12) c. A detailed description of the proposed well stimulation design that shall include: (3-29-12) i. The anticipated surface treating pressure range; (3-29-12) ii. The maximum injection treating pressure, which shall be within accepted safety limits. Accepted safety limits are generally eighty percent (80%) of the maximum pressure rating of the pressurized system; (4-11-15) iii. The estimated or calculated fracture height in both the horizontal and vertical directions. (3-29-12) 02. Volatile Organic Compounds and Petroleum Distallates. The injection of volatile organic compounds, such as benzene, toluene, ethyl benzene and xylene, also known as BTEX compounds, or any petroleum distillates into ground water in excess of the applicable ground water quality standards is prohibited. Volatile organic compounds or petroleum distallates may be appropriate as additives, but they are not appropriate for use as the base fluids. The proposed use of volatile organic compounds or any petroleum distillates for well stimulation into hydrocarbon bearing zones may be authorized with prior approval of the director. Water that is produced with oil and gas, and which may contain small amounts of naturally occurring volatile organic compounds or petroleum distillates, may be used as well stimulation fluid in hydrocarbon bearing zones. (3-29-12) 03. Well Integrity. Prior to the well stimulation, the owner or operator will perform a suitable mechanical integrity test of the casing or of the casing -tubing annulus or other mechanical integrity test methods and submit an affidavit certifying that the well was tested in anticipation of proposed treatment pressures. The owner or operator will notify the Department of this test twelve (12) to twenty-four (24) hours in advance. (3-29-12) 04. Pressure Monitoring. During the well stimulation operation, the owner or operator shall monitor and record the annulus pressure at the casinghead. If intermediate casing has been set on the well being stimulated, the Page 29 08_23_2016 DRAFT for Rulemaking Purposes Only pressure in the annulus between the intermediate casing and the production casing shall also be monitored a^d recorded. If the annulus pressure increases by more than five hundred (500) psi gauge as compared to the pressur immediately preceding the stimulation, the owner or operator shall verbally notify the Department as soon as practicable but no later than twenty-four (24) hours following the incident. (3-29-12) OS. Post Treatment Report. In addition to the information required by Subsection 210.0607 of this rule, the owner or operator shall provide the following post-treatment reporting: (-1-1-1 -4-54( a. The actual total well stimulation treatment volume pumped; (3-29-12) b. The actual surface pressure and rate at the end of each fluid stage and the actual flush volume, rate and fmal pump pressure; (3-29-12) c. The instantaneous shut-in pressure, and the actual fifteen (15) minute and thirty (30) minute shut-in pressures when these pressure measurements are available; (3-29-12) d. A continuous record of the annulus pressure during the well stimulation; (3-29-12) e. A copy of the well stimulation service contractor's job log, without any cost/pricing data from the field ticket, in lieu of paragraphs (a) through (d) above. If the job log does not contain all the needed information, it must be supplemented with additional information needed to satisfy Paragraphs 211.05.a. through 211.05.d. of this rule. (4-11-15) f. A report containing all details pertaining to any annulus pressure increases of more than five hundred (500) psi gauge as described in Subsection 211.04 of this rule. The report shall include corrective actions taken, if necessary. (4-11-15) g - Results of post treatment fluid analysis used to help determine where the fluid can be disposed. (3-29-12) 212. — 219. (RESERVED) 220. BONDING. 01. Individual Bond. The Department shall, except as hereinafter provided, require from the owner or operator a good and sufficient bond in the sum of not less than ten thousand dollars ($10,000) plus one dollar ($1) for each foot of planned well length in favor of the Department. The bond shall be conditioned upon the performance of the owner's or operator's duty to comply with the requirements of the Act and the rules of the Commission, with respect to the drilling, maintaining, operating, and plugging of each well drilled for oil and gas and the reclamation of surface disturbance associated with these activities. Said bond shall remain in force and effect until the plugging of said well is approved by the Department and the well site is reclaimed as described inSection 510 of these rules, or the bond is released by the Department. (4-11-15) 02. Blanket Bond. In lieu of the bond in Subsection 220.01 of this rule, any owner or operator may file with the Department a good and sufficient blanket bond covering all active wells drilled or to be drilled in the state of Idaho. The bond ora bond rider. must list all the wells covered by the iboncli. The amount of the blanket bond will be as follows according to the number of active wells covered by the bond: a. Up to ten (10) wells, fifty thousand dollars ($50,000); b. Eleven (11) to thirty (30) wells, one hundred thousand dollars ($100,000); or c. More than thirty (30) wells, one hundred fifty thousand dollars (5150,000). (3-29-12) (3-29-12) (3-29-12) 03. Inactive Well Bond. An owner or operator must provide the Department with a bond of at least ten thousand dollars (510,000) plus eight dollars (S8) for each foot of planned well length for each inactive well Page 30 08_23_2016 Comment [e91]: Why do bonds have to be submitted prior to permit approval? A: Permits approved but not bonded must be mon- itored by the Department to ensure that drilling activities do not commence prior to the bond being submitted. This puts an additional monitoring bur- den on the Department. June 23. DRAFT for Rulemaking Purposes Only conditioned upon the performance of the duty to comply with the requirements of the Act and the rules of the Commission, with respect to the drilling, maintaining, operating, and plugging of each well drilled for oil and gas. Said bond shall remain in force and effect until the plugging of said well is approved by the Department, or the bond is released by the Department. Inactive wells may not be covered by a blanket bond as provided in Subsection 220.02 of this rule. (4-11-15) 04. Additional Bonding. The Department may impose additional bonding on an owner or operator given sufficient reason, such as non-compliance, unusual conditions, horizontal drilling, or other circumstances that suggest a particular well or group of wells has potential risk or liability in excess of that normally expected. The owner or operator may request a hearing to appeal either the decision to impose an additional bond or the proposed amount of the bond. (3-29-12) 05. Authorized Bonds. The bond(s) referred to in Section 220 must be by a corporate surety authorized to do business in the state of Idaho or in cash. If cash is used to satisfy the bonding requirements in these rules, interest on the cash will be allocated to the general fund. (4-11-15) 221. TRANSFER OF DRILLING PERMITS. No person to whom a permit has been issued shall transfer the permit to any other location or to any other person until the following requirements have been complied with: (10-21-92) 01. Prior to Drilling Well. If, prior to the drilling of a well, the person to whom the permit was originally issued desires to change the location, he shall submit a letter so stating and another application properly filled out showing the new location. Drilling shall not be started until the transfer has been approved and the new permit posted at the new location. (3-29-12) 02. During Drilling or After Completion. If, while a well is being drilled or after it has been completed, the person to whom the permit was originally issued disposes of his interest in the well, he shall submit a written statement to the Department setting forth the facts and requesting that the permit be transferred to the person who has acquired the well. (3-29-12) 03. Terms for Acceptance of Transfer. Before the transfer of a drilling permit shall be recognized, the person who has acquired the well must submit the following: (3 29 12)f A written statement settine forth that he has acouired such well and assumes full resnonsibilitv for its operation and abandonment in conformity with the law: ( 1 b. If a bond is reauired. the person acauirinr such well shall furnish the bond: and 1 e. An Oreaniration Remit and Designation of Agent as reauired by Sections 032 and 033 of these rules if they have not been nreviouslv submitted. ( ) 222. — 229. (RESERVED) 230. PIT REQUIREMENTS. 01. Plans Required. If pits are proposed to be constructed in connection with another permit application required by these rules, then the owner or operator must include plans for pit construction in the application. If a pit is needed after the other permits have been approved, then an pjiapplication test n t nnn must be made to the Department with an application fee. Approval by the Department is required prior to the pit being constructed unless the pit is necessary for an emergency action. Pit applications must include the pennnanalicable U.S. well number, well name, well location, as -built description Hdrilling has been completed, proposed pit location, and plans for pit construction, operation, and reclamation. (3 20 12 4( ) Page 31 08_23_2016 Comment [e92] : Does IDEQ proceu Include an Inspection after construction? A: Inspection is not required. Record plans must be submitted by an Idaho licenced professional engi- neer after construction. The engineer will ensure that the plans are accurate and construction has been completed in accordance with the plans. Done, July 5. DRAFT for Rulemaking Purposes Only 02. Annlication ProcessIna. Applications will be processed as described in Section 040 of these rules. l 1 9243. Location. (3-29-12) a. Pits must be located where they are structurally sound and the liner systems can be adequately protected against factors such as wild fires, floods, landslides, surface and ground water systems, equipment operation, and public access. (3-29-12) b. Pits located in a one hundred -year floodplain must Ht.-in-t-ee}4ef++ o o with any applicable floodplain ordinances pertaining to activities within the one hundred -year floodplain. 13 2) 124 c. Pits shall not be located within an IDEQ recognized source water assessment or protection areas for public drinking water systems. (3-29-12) 0A. Site Preparation. All sites must be properly prepared prior to pit construction. Vegetation, roots, brush, large woody debris and other deleterious materials, topsoil, historic foundations and plumbing, or other materials that may adversely affect appropriate construction, must be removed from the footprint of the pit unless approved by the Department. (3-29-12) 0405. Pit Sizing Criteria. (3-29-12) a. Pits that have constructed berms ten (10) or more feet in height or hold fifty (50) acre-feet or more of fluid must also comply with the dam safety requirements of IDAPA 37.03.06, "Safety of Dams Rules." (3-29-12) b. Pits must be designed to hold the maximum volume of fluids being used for drilling or well treatment and the volume of water associated with a one hundred -year, twenty -four-hour precipitation event. (3-29-12) c. Snowmelt events shall be considered in determining the containment capacity. (3-29-12) d. Pits that are left over winter must be able to contain one hundred twenty-five percent (125%) of the average annual precipitation that falls from October through May. (3-29-12) e. Pits must be designed to maintain a minimum two (2) foot freeboard at all times. Contingency plans for managing excesses of fluids shall be described in the application. At no time shall fluids in a pit be allowed to escape from the im otmttl+neo1 j . 13 29 12)( ' 9:06. Minimum Plans and Specifications for Reserve, Well Treatment, and Other Short Term Pits. Pits used for one (1) year or less, not including extensions, are short term pits. Construction plans and specifications for short term pits must include the requirements under Subsections 230.021 through 230.041 of this rule and the following: 4-1-1-1-141( 1 a. A prepared subbase, which shall be free of plus three (3) inch rocks, roots, brush, trash, debris or other deleterious materials, and compacted to ninety-five percent (95%) of Standard Proctor Test ASTM D698 -07e1 or ninety-five percent (95%) of Modified Proctor Test ASTM D1557-09; (3-29-12) b. Slopes of two (2) feet horizontal to one (1) foot vertical (2H:1 V) or flatter for all interior and exterior pit walls. The top of a bermed pit wall must be a minimum of two (2) feet wide; (3-29-12) c. A primary liner system consisting of a synthetic liner of at least twenty (20) mils thickness and constructed according to manufacturers' standards with at least four (4) inches of welded seam overlap and complete coverage on the floor and inside walls of the pit. Seams must run parallel to the line of maximum slope so they do not traverse across the slope. The liner edges shall be anchored in a compacted earth filled trench at least eighteen (18) inches in depth. The liner must be protected against cracking, sun damage, ice, frost penetration or heaving, wildlife and wildfires, and damage that may be caused by personnel or equipment operating in or around these facilities. Liner Page 32 08_23_2016 DRAFT for Rulemaking Purposes Only compatibility shall comply with EPA SW -846 method 9090A. Alternative liner systems with similar standards may be proposed by the owner or operator and appro%e 1 at the Department's discretion; (3-29-12) d. Minimum factors of safety, and the logic behind their selection, for the stability of the earthworks and the lining system of the pit; (3-29-12) e. Site-specific methods for excluding people, terrestrial animals, and avian wildlife from the pits; (3-29-12) f. Segregation and stockpiling of topsoil in a manner that will support reestablishment of the pre -disturbance land use after pit closure; and (3-29-12) g. A closure plan including the following: (3-29-12) i. TTestingi of residual fluids and any accumulated solids, if anything other than water based drilling fluid was placed in the pit; (3-29-12) ii. Plans for removal and disposal of residual fluids and accumulated solids, with the liner material, at an appropriate facility; (3-29-12) iii. Regrading plan, replacement of topsoil, and erosion control measures; and iv. Reseeding and Revegetation. (3-29-12) (3-29-12) 0607. Minimum Plans and Specifications for Long Term Pits. Pits used for more than one (1) year, not including extensions, are long term pits. Construction plans and specifications for long term pits must include the requirements under Subsections 230.02 through 230.041 of this rule and the following: 4-1-1 15)f a. A quality control/quality assurance construction and installation plan; (3-29-12) b. Type of fluids to be contained in the pit; (3-29-12) c. Secondary containment synthetic liners, which shall have a minimum thickness of sixty (60) mils consisting of HDPE and a maximum coefficient of permeability of 10"9 em!sec, or comparable liners approved by the Department; (3-29-12) d. Leak detection and collection systems. The plans and specifications shall: (3-29-12) i. Provide a material between primary and secondary containment synthetic liners to collect, transport and remove all fluids that pass through the primary containment synthetic liner at such a rate as to prevent hydraulic head from developing on the secondary containment synthetic liner to the level at which it may be reasonably expected to result in discharges through the secondary containment synthetic liner; (3-29-12) ii. Provide routines and schedules for the evaluation of the efficiency and effectiveness of the removal of fluids from the layer placed between primary and secondary containment synthetic liners. The properly working system shall continually relieve head pressures on the secondary containment synthetic liner; (3-29-12) iii. Provide specific triggers for maintenance routines, which shall be initiated in response to inadequate performance of primary or secondary containment synthetic liners; and (3-29-12) iv. Specify operation and maintenance procedures, which shall be initiated in response to inadequate performance of primary and secondary containment or leak detection and collection systems. (3-29-12) e. All piping, including that contained in the leak detection and collection system, shall have a minimum wall thickness of PVC Schedule 80 and be designed to: (4-11-15) Page 33 08_23_2016 Comment [e93]: Is this done by operator or third party? k sampling should be done as per a sampling plan that follows EPA protocols. This includes a Quality Assurance Project Plan, duplicates, blanks, and other measures that ensure good data is collected. This will be part of the closure plan. No change, July S. DRAFT for Rulemaking Purposes Only i. Withstand chemical attack from oil field waste or leachate; (3-29-12) ii. Withstand structural loading from stresses and disturbances from cover materials or equipment operation; and (3-29-12) iii. Facilitate clean-out and maintenance. (3-29-12) f. Protections for the liner from excessive hydrostatic force or mechanical damage at the point of discharge into, or suction from, the pit. External discharge or suction lines shall not penetrate the liner; (3-29-12) g. Plans for erosion control during and immediately following construction; and (3-29-12) h. Operating and maintenance plans. (3-29-12) 0208. Time Limits for Short Term Pits. Reserve, well treatment, and other short term pits must be closed out and reclaimed within one (1) year of being constructed. The owner or operator may request a one-time extension for up to six (6) months. The Department may grant the request if the owner or operator gives sufficient cause and presents a plan for ensuring that the pit is adequately monitored and maintained. (3-29-12) a. Fluids may be left in a pit for up to six (6) months after the associated well activities are conducted. The owner or operator may request a one-time extension forof up to one (1) year. The Department may grant the request if the owner or operator gives sufficient cause and presents a plan for keeping the fluids in a usable state. (3291.4t( ) b. Notwithstanding the above time limits, the owner or operator may request additional time based upon conditions wholly outside of the owner's or operator's control including, but not limited to, governmental lease requirements and delays related to difficult drilling conditions. The Department may impose additional construction or monitoring requirements prior to granting additional time. (3-29-12) 0509. Emergency Pits. Pits constructed during an emergency situation may be approved by an after -the -fact application submitted to the Department. The requirements in Subsections 230.0.43 through 230.06 of this rule shall apply, and the pit must be closed out and reclaimed within six (6) months of being constructed. The Department must be notified within twenty-four (24) hours of an emergency situation requiring an emergency pit. (-1-44-45H 1 0010. Operating Requirements. (3-29-12) a. Waste oil, hydraulic fluid, transmission fluids, trash, or any other miscellaneous waste products must not be disposed of in a pit. Placement of these materials into a pit may result in the creation of a mixed waste that requires handling and disposal as a hazardous waste. (3-29-12) b. If a pit liner's integrity is compromised, or if any penetration of the liner occurs above the liquid's surface, then the owner or operator shall notify the appropriate Department area office within forty-eight (48) hours of the discovery and repair the damage or replace the liner. (3-29-12) c. If a pit or closed-loop system develops a leak, or if any penetration of the pit liner occurs below the liquid's surface, then the owner or operator shall remove all liquid above the damage or leak line within forty-eight (48) hours, notify the appropriate Department area office within forty-eight (48) hours of the discovery, and repair the damage or replace the pit liner. (3-29-12) d. The owner or operator shall install, or maintain on site, an oil absorbent boom or other device to contain and remove oil from a pit's surface. Visible oil must be removed from short term pits immediately following the cessation of activity for which the pit was constructed. Visible oil must be removed from long term pits as soon as it is discovered. (3-29-12) 4411. Closure of Pits. (3-29-12) Page 34 08_23_2016 DRAFT for Rulemaking Purposes Only a. The owner or operator shall remove all liquids from the pit prior to closure and dispose of them at an appropriate facility or reuse them at a different location. If the nature of the fluids has substantially altered during their use, then the fluids must be sampled and tested to determine which disposal facility can accept them. (3-29-12) b. Any solids that have been accumulated in the bottom of the pit will be tested to determine which disposal facility can accept the material. The solid material and liner will then be removed and disposed of at an appropriate facility. (3-29-12) c. The owner or operator must notify the Department at least forty-eight (48) hours prior to removal of the pit liner so an inspection may be conducted. (3-29-12) d. The pit foundation will be inspected for signs of leakage. If evidence of leakage is observed, the owner or operator must contact the Department and the IDEQ within twenty-four (24) hours and report the type of fluids released and the estimated extent of release. The owner or operator must then remediate the site in conformance with the applicable standards administered by (DEQ in 1DAPA 58.01.02," Water Quality Standards," Sections 850 through 852. (3-29-12) e. After addressing any pit leakage concerns, the owner or operator shall perforin the activities described in Subsections 510.04 through 510.08 of these rules. (4-11-15) 1412. Condemnation Due to Improper Impoundment. The Department shall have authority to condemn any pit that does not properly impound fluids and order the disposal of such fluids in conformance with 1DAPA 58.01.16, "Wastewater Rules," and other applicable rules. (3-29-12) 231. -- 299. (RESERVED) SUBCHAPTER D - WELL SITES AND DRILLING 300. IDENTIFICATION OF WELLS. 01. Signs; Lease Access Roads. To identify all producing leases the owner or operator thereof shall cause a sign to be placed where the principal lease road enters the lease and such sign shall show the name of the lease and the owner or operator thereof and the section, township, and range. (10-21-92) 02. Signs; Well Sites. Prior to spud activity, a legible sign must be placed near the well to identify the operator, 14e444144 U.S. well number, well name, and emergency telephone number. (fa multiple completion, each well head connection shall be identified. ti 11 1'1( 1 301. WELL SITE OPERATIONS. The owner or operator must conduct all operations and maintain the well site at all times in a safe and workmanlike manner. Best management practices and good housekeeping practices must be used at well sites. (4-11-15) 01. Fencing. Within sixty (60) days after completion of the well, the owner or operator must install a fence around the well site to maintain safe working conditions, secure the well site, and prevent access by wildlife and livestock. The fence design must be acceptable to both the l.iwurface owner and owner or operator. (4-41-1414 1 02. Storage. All chemicals must be stored and maintained in accordance with the applicable MSDS requirements. Materials related to operations must be palletized where applicable. Vehicles and materials not in use must be removed from the well site. (4-11-15) 03. Vegetation. All well sites must be kept free of excessive vegetation. (4-11-15) 04. Trash. All trash, debris, and scrap metal must be removed from the well site. Pending removal, any trash or debris that might constitute a fire hazard shall be removed to a distance of at least one hundred (100) feet from Page 35 08_23_2016 DRAFT for Rulemaking Purposes Only the well location, tanks, and separator. (4-11-15) 05. Wellhead Eauinment. After a well is completed. the onevator will send a scaled drawing of the as - built nad with all wellhead eauinment to the Department. If equipment is added or removed during subsequent workovers or other activity. a revised sketch will be submitted with a sundry notice. 302. ACCIDENTS AND FIRES. The owner or operator shall tai.: all reasonable precautions to prevent accidents and fires. An emergency response plan will be prepared and available at the well for use or inspection. Coordination with local emergency responders and the Idaho Bureau of Homeland Security is recommended prior to rig set up. The following actions must be taken in event of a release, industrial accident, or fire of major consequence: (3-29-12) 01. Provide Information to Emergency Response. 'Emergency), workers will be all fluids or chemicals involved in a spill or accident as needed according to ?OSHA! Standard 1910.1200 (Hazard Communication). Nothing in this rule shall authorize any person to withhold information that is required by state or federal law to be provided to a health care professional, a doctor, or a nurse. All information required by a health care professional, a doctor, or a nurse shall be supplied, immediately upon request, by the owner or operator, or their contractors, directly to the requesting health care professional, doctor, or nurse, including the percent by volume of the chemical constituents (and associated CAS numbers) in the fluids and the additives; (3-29-12) Comment (e94]: Can we clarify that the state regulates equipment on the welipad so they do not have to get CUPS? A: Subsection 05 added to address this concern and allow the Department to have an inventory of well head equipment In case of emergencies. lune 24. given information on r Comment [e95]: What about volunteer fire- fighters? How do they get compensated if they get injured? Or Is this better handled by county ordi- nance? k Unknown, and beyond the scope of these rules. Bit passed In 2016 allows volunteer firefighters to \ be covered by worker's compensation. Done, July 5. 02. Initiate Spill Response and Corrective Actions. Owner or operator must comply with the requirements of IDAPA 58.01.02, "Water Quality Standards," Sections 850 through 852; and (3-29-12) 03. Notify the Department. Notify the Department within twenty-four (24) hours and submit a full report thereon within fifteen (15) days. (3-29-12) 303. -- 309. (RESERVED) 310. GENERAL DRILLING RULES. 01. General Design Requirements for Casing and Cementing. Casing and cementing programs adopted for wells must be so planned as to protect any potential oil- or gas -bearing horizons penetrated during drilling from infiltration of injurious waters from other sources, and to prevent the migration of oil or gas from one horizon to another. Owners and operators shall follow the standards for casing and tubing in API SPEC 5CT and the standards for cementing in API SPEC 10A. (3-29-12) 02. Wildcat and High -Pressure Conditions. When drilling wildcat territory or in any field where high pressures are likely to exist, the owner or operator shall take all necessary precautions to keep the well under control at all times and shall use proper high-pressure fittings and equipment at the time the well is started. Under such conditions all strings of casings must be securely anchored. (3-29-12) 03. High Temperature Conditions. Due to high geothermal gradients in Idaho, the temperature of the return drilling mud shall be monitored daily during the drilling of the surface casing hole and all deeper holes. The owner or operator must use cements appropriate for the temperatures expected or encountered. (3-29-12) 04. Conductor Pipe or Casing Requirements. A minimum of forty (40) feet of conductor pipe shall be installed. If geologic conditions are such that forty (40) feet is not feasible, the owner or operator may request a variance from the Department. The annular space is to be cemented solid to the surface. A twenty-four (24) hour cure period for the grout must be allowed prior to drilling out the shoe unless sufficient additives, as determined by the Department, are used to obtain early strength. (3-29-12) 05. Surface Casing Requirements. (3-29-12) a. The Department must be notified in writing seventy-two (72) hours in advance of planned spud activity for surface casing. The Department will post the spud activity notice on its website and send an electronic Page 36 08_23_2016 Comment [e96]: Does this tie back to the Community Right to Know act? Check It out. A: No, EPCRA is a separate act under the authority of EPA and not OSHA. Trade secret provisions are similar. EPCRA has similar spill reporting require- ments as CERCLA. Done, July 5. DRAFT for Rulemaking Purposes Only copy of the notice to the county where the well is located. (4-11-15) b. Surface casing must be set at a minimum depth equal to ten percent (10%) of the proposed total depth of the well. In areas where pressures and formations are unknown, a minimum of two hundred (200) feet of surface casing shall be set. (3-29-12) c. Surface casing shall provide for control of formation fluids, protection of fresh water, and for adequate anchorage of blow out prevention equipment. The casing must be seated through a sufficient series of low permeability, competent lithologic units such as claystone, siltstone, basalt, etc., to insure a solid anchor for blow out prevention equipment and to protect usable ground water from contamination. Additional surface casing may be required if the first string has not been cemented through a sufficient series of low permeability, competent lithologic units, or if rapidly increasing thermal gradients or formation pressures are encountered. (1 11 15g 1 d. All surface casing shall be cemented solid to the surface by pump and plug, displacement, or other approved method. When surface samples are cured, additional drilling activities may commence. (3-29-12) e. The Department must be notified in writing twenty-four (24) hours in advance of planned cementing activity for surface casing. The Department will witness and document all surface casing cementing activities. (4-11-15) 06. Requirements for BOP Equipment. Unless altered, modified, or changed for a particular pool(s) upon hearing before the (- mDenartment, BOP and related equipment shall be installed and maintained during the drilling of all wells in accordance with the following rules: f3 29 1 2l( 1 a. BOP equipment installed on wells in which formation pressures to be encountered are abnormal or unknown shall consist of a double -gate, hydraulically operated preventer with pipe and blind rams or two (2) single -ram -type preventers; one (1) equipped with pipe rams, the other with blind rams and an annular type preventer. In addition, upper and lower kelly cocks, pit level indicators with alarms and/or flow sensors with alarms, and surface facilities to handle pressure kicks shall be installed prior to drilling any formation with known abnormal pressure. (10-21-92) i. Accumulators shall maintain a pressure capacity reserve at all times to provide for operation of the hydraulic preventers and valves with no outside source. (10-21-92) ii. In all other drilling operations, BOP equipment shall consist of at least one (1) double -gate preventer with pipe and blind rams or two (2) single -ram -type preventers, one (1) equipped with pipe rams, the other with blind rams, and sufficient valving to permit fluid circulation at the surface. (10-21-92) b. All BOP equipment, choke lines, and manifolds shall be installed above ground level. Casing heads and optional spools may be installed below ground level provided they are visible and accessible. (4-11-15) c. BOP equipment and related casing heads and spools shall have a vertical bore no smaller than the inside diameter of the casing to which they are attached. (3-29-12) d. The working pressure rating of all BOP and related equipment shall equal or exceed the maximum anticipated pressure to be contained at the surface. (4-11-15) e. All ram -type BOP and related equipment, including casing, shall be tested to the full working pressure rating of said equipment upon installation, provided that components need not be tested to levels higher than the lowest working pressure rated component. Annular type BOP and related equipment must be tested in conformance with the manufacturer's published recotnmendations. If, for any reason, a pressure seal in the assembly is disassembled, a test to a full working pressure rating of that seal shall be conducted prior to the resumption of any drilling operation. In addition to the initial pressure tests, ram -type BOP shall be checked for physical operation at least once per week and all components, again with exception of the annular -type BOP, tested at least once every twenty-one (21) days to at least fifty percent (50%) of the rated pressure of the BOP equipment and/or to the maximum anticipated pressure to be contained at the surface, whichever is greater. (4-1 1-15) Page 37 08_23_2016 DRAFT for Rulemaking Purposes Only f. The Department will require an affidavit covering the initial pressure tests after installation signed by the owner, operator, or contractor attesting to the satisfactory pressure tests. The Department must be advised at least twenty-four (24) hours in advance of all tests. The Department may inspect and witness all BOP operations and testing. (4-11-15) kg. Studs on all well head and BOP flanges shall be checked for tightness each week. Hand wheels for locking screws shall be installed and operational, and the entire BOP and well head assembly shall be kept clean of mud and ice. (10-21-92) in use. fi. A drillstem safety valve shall be available on the rig floor at all times with correct thread for the pipe (3-29-12) A drillstem float valve shall be installed in bit sub or as close to bit as reasonably possible. (3-29-12) 07. Intermediate Casing. (3-29-12) a. Intermediate casing, if installed, shall be cemented solidly to the surface or to the top of the casing. (3-29-12) b. Intermediate casing not run to surface will be lapped into at least one hundred (100) feet of the surface casing, or at least one hundred (100) feet of the next larger casing to provide overlap and secure a seal. (3-29-12) c. Such casing shall be cemented and pressure tested before cement plugs are drilled. (3-29-12) d. The Department must be notified in writing twenty-four (24) hours in advance of planned cementing activity for intermediate casing. The Department may witness and document all intennediate casing cementing activities. (4-11-15) 08. Production Casing; Cementing and Testing Requirements. (3-29-12) a. If and when it becomes necessary to run a production casing, such casing shall be cemented and pressure tested before cement plugs are drilled. (3-29-12) ti. The Department must be notified in writing twenty-four (24) hours in advance of planned cementing activity for production casing. The Department may witness and document all production casing cementing activities. (4-11-15) c. When not run to the surface, production casing will be cemented from the bottom of the hole up into at least one hundred (100) feet of the next larger casing to provide overlap and secure a seal. (3-29-12) d. If the bottom plug will be drilled out, the open hole interval must be completed to protect any potential oil-bearing or gas -bearing horizons penetrated during drilling from infiltration of injurious waters from other sources, and to prevent the migration of oil or gas from one horizon to another. (3-29-12) 09. Step-off. An owner or operator may submit to the Department a step-off request to complete a new borehole from surface if a borehole without production casing deviates from vertical plumb by more than five (5) degrees. A step-off borehole must be drilled within the existing pad of the permitted well. The incomplete borehole must be plugged and abandoned in accordance with Section 502 of these rules. (4-11-15) Page 38 08_23_2016 DRAFT for Rulemaking Purposes Only 10. Well Control (Rotary Tools); Reserve Mud Tanks. When drilling with rotary tools, the owner or operator shall provide, as required by the Department, a reserve mud pit or tank of suitable capacity for the anticipated depth of the well and maintain an on-site supply of mud additives that can raise the mud weight by one (1) pound per gallon in case of loss of well control. (4-11-15) 11. Mud Pits. Before commencing to drill, proper and adequate mud pits shall be constructed for the reception and confinement of mud and cuttings and to facilitate the drilling operation. Special precautions shall be taken, if necessary, to prevent contamination of fresh waters. These pits must conform to the standards in Section 230 of these rules. if tanks will be used, then mud pits may not be required. (4-11-15) 12. Well Control (Cable Tools); Fluid Containment. Natural gas or oil which may be encountered in a substantial quantity in any section of a cabletool drilled hole above the ultimate objective shall be shut off with reasonable diligence either by mudding or by casing, or other approved method, and confined to its original source to the satisfaction of the Department. The use of cable tools for drilling activities requires written approval by the Department prior to spud activities. A request to use cable tools must include the following: (4-11-15) a. Proposed pressure control measures; (4-11-15) b. Diversion and disposal methods for stray gas; (4-11-15) c. Safety protocols for mud weights and well controls; and (4-11-15) d. Annual drill rig safety inspection information, including the date of last replacement of cables, draw works inspection report, and metallurgic report of safety compliance for structural integrity of the drill rig. (4-11-15) 13. Drilling Mud Disposal. Drilling mud will be disposed of at an appropriate facility in compliance with applicable state and federal requirements. (3-29-12) 14. Report of Water Encountered; Owner's or Operator's Duties. It shall be the duty of any owner or operator drilling an oil or gas well or drilling a seismic, core or other exploratory hole to report to the Department all potential water bearing zones encountered; such report shall be in writing and give the location of the well or hole, the depth at which the zones were encountered, the thickness of such zones, and the rate of flow of water if known. This requirement can be met by the submittal of the logs required in Section 340 of this rule. (4-11-15) 15. Spill Prevention, Control, and Countermeasures Plan. The owner or operator must have a Spill Prevention, Control, and Countermeasures Plan in conformance with the requirements of the EPA. This plan must be updated as needed when facilities or activities change. (3-29-12) 16. Interim Drill Site Clean Up. If a well is completed for production or other purposes, interim reclamation must be completed within six (6) months of the rig being removed. Interim reclamation includes the following activities: ' (3-29-12) a. Debris and waste materials including, but not limited to, concrete, sack bentonite and other drilling mud additives, sand, plastic, pipe, and cable associated with the drilling, re-entry, or completion operations shall be removed and disposed of properly. (3-29-12) b. All disturbed areas affected by drilling or subsequent operations, except areas reasonably needed for production operations or for subsequent drilling operations to be commenced within twelve (12) months, shall be reclaimed and revegetated to approximately the pre -drilling condition or to the condition specified in an agreement with the surface owner. The reclamation standards in Subsections 510.04 through 510.07 of these rules, shall apply. (4-11-15) 311. LOSS OF TOOL WITH RADIOACTIVE MATERIAL. 01. Recovery or Cementing of Tool. If a gamma ray tool, or some other tool containing radioactive material, becomes lost in a well, the owner or operator shall make every reasonable attempt to retrieve the tool from Page 39 0823_2016 DRAFT for Rulemaking Purposes Only the well. If the tool cannot be recovered, the owner or operator must immediately cover the tool with cement sufficient to secure it in place and prevent it from contacting any fluids in the well. A whipstock or other approved deflection device shall be placed on top of the cement plug to prevent accidental or intentional mechanical disintegration of the radioactive source. (3-29-12) 02. Sidetracking. If the hole is later sidetracked above the radioactive material, the sidetracked hole must be at least fifteen (15) feet from the original hole with the lost radioactive material. (3-29-12) 03. Reporting. A report must be sent to the Department and IDEQ within thirty (30) days of cementing the tool. The report must describe the tool that was lost, the depth it was lost at, the specific type and amount of radioactive material in the tool, and an estimate of the length of cement covering the tool. This report may be included in a plugging report if the well will be plugged. (3-29-12) 312. CHOKES. All flowing wells shall be equipped with adequate chokes or beans to properly control the flow thereof. (10-21-92) 313. USE OF EARTHEN RESERVOIRS. Oil shall not be produced, stored, or retained in earthen reservoirs or in open receptacles. (10-21-92) 314. VACUUM PUMPS PROHIBITED. The use of vacuum pumps or other devices for the purpose of placing a vacuum on any gas- or oil-bearing stratum is prohibited; however, the Department may upon application and hearing and for good cause shown permit the use of vacuum pumps. Applications will be processed as described in Section 140 of these rules. 24 12g 315. PULLING OUTSIDE STRINGS OF CASING. Casing shall not be recovered if its recovery will expose any abnormal pressure, lost circulation, oil, gas, or water zone. In pulling outside strings of casing from any oil or gas well, the space outside the casing left in the hole shall be kept and left full of mud -laden fluid of adequate specific gravity to seal offal) fresh and saltwater strata and any strata bearing oil or gas which is not producing. Casing may not be pulled without first making application to the Department and receiving approval. The application must describe how fresh waters will be protected. Annlications will be processed as described in Section 140 of these rules. 049414 316. — 319. (RESERVED) 320. MECHANICAL INTEGRITY TESTING. 01. Mechanical Integrity Testing. (3-29-12) a. The mechanical integrity test shall include one (1) of the following tests to determine whether leaks are present in the casing, tubing, or packer: (3-29-12) i. A pressure test with liquid or gas at a pressure of not less than three hundred (300) psi or the minimum injection pressure, whichever is greater, and not more than the maximum injection pressure; or (3-29-12) ii. The monitoring and reporting to the Department, on a monthly basis for sixty (60) consecutive months, of the average casing -tubing annulus pressure, following an initial pressure test; or (3-29-12) iii. In lieu of Subparagraphs 320.01.a. i. and 320.01.a.ii. of this rule, any equivalent test or combinations of tests approved by the Department. (4-11-15) b. The mechanical integrity test shall include one (1) of the following tests to determine whether there are fluid movements in vertical channels adjacent to the well bore: (3-29-12) i. Tracer surveys; (3-29-12) ii. Cement bond log or other acceptable cement evaluation log; (3-29-12) Page 40 08_23_2016 DRAFT for Rulemaking Purposes Only iii. Temperature surveys; or (3-29-12) iv. In lieu of Subparagraphs 320.01.b.i. through 320.01.b.iii. of this rule, any other equivalent test or combination of tests approved by the Department. (4-11-15) c. Mechanical integrity tests shall be performed at the rate of not less than one (1) test every five (5) years, regardless of well status. The first five-year period shall commence on the date the initial mechanical integrity test is performed. (3-29-12) 02. Inactive Wells. If, at any time, surface equipment excluding the wellhead is removed or the well becomes incapable of production, a mechanical integrity test shall be performed within thirty (30) days. The mechanical integrity test for an inactive well shall be isolation of the wellbore with a bridge plug or similar approved isolating device set one hundred (100) feet or less above the highest perforations and a pressure test with liquid or gas at a pressure of not less than three hundred (300) psi surface pressure or any equivalent test or combination of tests approved by the Department. (3-29-12) 03. Prior Notification. Not less than ten (10) days prior to the performance of any mechanical integrity test required by this rule, any person required to perform the test shall notify the Department, in writing, of the scheduled date on which the test will be performed. (3-29-12) 04. Reporting Requirements. Mechanical integrity test results shall be submitted to the Department within thirty (30) days of testing. (3-29-12) 05. Mechanical Integrity Required. All wells shall maintain mechanical integrity. All wells that fail a mechanical integrity test, or that are determined through any other means to lack mechanical integrity, shall immediately be investigated by the owner or operator. The well shall be repaired or immediately shut down following the investigation. Repairs shall be completed within six (6) months, or the well shall be plugged and abandoned. If the repair cannot be completed within six (6) months, the owner or operator may request an extension and provide a plan for the repair, (3-29-12) 321. -- 329. (RESERVED) 330. WELL DIRECTIONAL CONTROL. 01. General Restrictions; Allowable Deviation. The maximum point at which a well penetrates the producing formation shall not unreasonably vary from the vertical drawn from the center of the hole at the surface. Deviation is permitted without special permission to remedy blowouts and, for short distances, to straighten the hole, sidetrack junk, or correct other mechanical difficulties. (10-21-92) 02. Controlled Directional Drilling. Except for the purposes recited in Subsection 330.01, no well hereafter drilled may be intentionally directionally deviated from the vertical unless the owner or operator thereof shall first file an application aB -aN4i * tioff-fre• }ueml-Ire-inu-pry-and receive approval from the Department. Such application.m v be included with a drill nermit annlication and shall contain the following information: fI 11 15N 1 a. Name and address of the owner or operator. (3-29-12) b. 4 seW ( name, wellka, number, name of field and reservoir, and county. F1'.? 2 1 02 sl 1 c. Description of surface location and proposed location of the producing interval (footage from lease and section or block and survey lines). (10-21-92) d. Reason for intentional deviation. (10-21-92) c1A _r_ •:lewrcwt-+lrat- eaelr- -#aa►i -a-t u bi' Page 41 08_23_2016 DRAFT for Rulemaking Purposes Only +cog istrfed l�tal 1. 410 21424 k. Signature of representative of owner or operator. (3-29-12) g. -' f nu j 111 Id :i' deviatkREf-Ile-wall anf:441e-tiled-with -4ifiren-( 5-1-tla;4 i - a- y t# applit: otl- {z 29 121 hf. 4 #tom al lir m l►itll- e.iwomfat}ied--h!.-at neat, accurate platmag or sketch of the lease and all offset leases showing the names of all offset operators and the surface and proposed producing interval locations of the well. Pkat fat shall be drawn to a scale which will permit facile observation of all pertinent data.49-21 92g An application fee as described in Idaho Code 6 47-320. 03. copyofAppl+eatiott ffset-Aperatc Annlication Processing. r ': a fpl: e;ltitm-+� t+led-wi'thAte lrat-aeltt t ry ef4l+r--appli,:ation artt#-the jplat y-trg : set eget -tt}-Ile-leit,e4ttt ivltie434ltN well :4 e -drill l7 Annlications will be processed as described in Section 040 of these rules. (3 24 12)( >� 01. t) Ttrtwtettt-AC4iett,1-41tin-fetit4;-t#te-fle}taft+tttvtt-V. tt tl pl4lts ttiett-4)14 teet}(-1 }ctayS,41. Oltittftitaa ltaa+tt-a+tyiaflaatttlttratt* Eo -the NtN1tr►std-ittteetttatal-leµtii4ioni: t-ftllcen-E4 > twi- fckeipt A •o�21't :Elr�tic-Elie applicatietrshall-# s,et_twit--1 •puNie-hearitnt.4#'ftt.objection-fro-m-eit l F.:-: :q'tier-t4penttofttr4w-De aufttorm-i; utter. rned-wit#itt-the•f-Ike . (15) :t:t; 1>erittt#;4#teaplalit-allot-s#tail-bt approved -it d-perittit-k;ttc l+rlatftment-lf wfitteta- ►ttrettt-efi#tt lsiet-c rutori+j-ia-l+kdirettcimtitttlj-witlt-tha-appWatiett-t a`dull•f#ifecttct+tttlly tae-Be1t'tfttttettt way--ittttttediatelt appowt the atplicatitatt wit#t<tttt-waititt , l+Ncett (t- da s. -- (3-49-4:4) NS04. Angular Deviation and Directional Survey. Upon completion, a complete angular deviation and directional survey of the well obtained by an approved well surveying company shall be filed with the Department; to tlttr-w-ith-et#et ttl:tflir-req tiftrtswhen the well amort is submitted. (3 29 12g 11605. Application for Exceptions. In the event the proposed, or final, location of the producing interval of the directionally deviated well is not in agreement with spacing or other rules of the Commission applicable to the reservoir, proper applications shall be made to-el►taitt aplarttvit1-4t yations-te-shell-+ales. €4-appriwit-I tihtall-lae gtatttttfc►ftle�ttieefat-thetliseveliett at'th -14tpatinwatrant1 tiltall-1.te.,tafded-w+tlt-t#rh+t+tae«,+tsitle attartanti a+vv+trtte++t as-4141ae-�va14-14a+3 been described in Section 120 of these rules. (3 29 12)( 331. -- 339. (RESERVED) 340. WELL COMPLETION/RECOMPLETION REPORT AND WELL REPORT. Within thirty (30) days after the completion of a well drilled for oil or gas, or the recompletion of a well into a different source of supply, or where the producing interval is changed, a completion report shall be filed with the Department, on a form prescribed by the Department. Such report shall include name, number, and exact location of the well; lease name, date of completion and date of first production, if any; name and depth of hydrocarbon reservoir(s)-.4-•+•Htttltiple e4oilil31k41ttn: from which well is producing; annulus pressure test; initial production test, including oil, gas, and water, if any; a well report as defined in Section 010; and such other relevant information as the Department may require. (3 29 12)( 341. DR411-4A,'G-WELL LOGS. 01. Minimum Required Logs. All wells shall have a lithelegiemud,)of} from the bottom of the hole to / the top, to the extent practicable. Mimi lov must show the operator's best estimate of formation tons. (3 29 12)( 1 02. Bottom Hole Survey. All wells shall have a bottom hole location survey. (3-29-12) Page 42 08_23_2016 Comment [e97]: Does this mean mud log, or neutron density and resistivity? The latter may only be needed over the Interval of interest. A: Changed to mud log. Done, July 26. Comment [e98]: These are subject to interpre- tation. Leave out porosity, and just state that the operator must show their best estimate of for- mation tops. A: Moved from 04 below and modified. Done, July 26. DRAFT for Rulemaking Purposes Only 03. Cement Bond !Logi. All wells that are cased and cemented shall ha-,- cement bond log run across the casing. When cement bond logs are inconclusive. the Department may require other integrity testing methods as described in Section 320. (3 29 12)( 04. Other Logs. • . - . - .The operator shall run an oven hole electrical. radioactivity. or other similar log. or combination of overt hole longs -f the operator's choice, The operator shall also net a gamma ray log from total depth to ground level elevation. The Director may waive or postnone the log i *ation to log in this Subsection if he determines the log is unnecessary or imn racticle. The Director can condition the waiver upon appropriate terms and conditions, (3 29 12)( ) 05. Log Submittal. 44aFinal processed versions of the above logs shall be submitted to the Department in paper and digital formats within thirty (30) days of the log being nm. If logs were run in color, then the submitted copies shall also be in color. Digital formats must be Tiff and LAS 2.0 or higher. Logs submitted to the Department must have a scale of at least kmci (1) inch ocr one hundred (100) feet for correlation logs and five (5) inches per one hundred (1 1 feet for detail logs. }4 1 1151( 06. Other Records. Onerators shall submit to the Denartment any conies of drill stem test 4enort4 and charts. formation water analyses. results of analyses for norositv and permeability. and non-internretive lithologic logs or sample descrintions. ( 1 07. Cuttings and Sldewall Cord. ) a. Eor all wells drilled for oil or eas cxnloration. the onerator shall collect dunlicate samples when cutting samples are taken. The onerator shall wash and dry the cuttings. and package each sample in standard sample srivekopes. These envelopes shall be placed in order by death in a corresponding standard sample box that is labeled with the same information required for the envelopes. The onerator shall send the box to the Department within thirty 1301 days after drilling onerations are complete. ( 1 b. The operator of any well drilled for oil or gas shall inform the Director of all intervals that are to be sidewall cored. or have been cored. The onerator roust provide this notice while the well is being drilled or immediately ediately following the well's completion. Unless specifically exemnted by the Director all sidewall res ken Agil be nreserved. labeled for identification and depth. and forwarded to the Denartment within one (1�Dl completion of drilling operations. The Director may grant; an extension of the one (1) year time neriod for good reason. If an exemption is emitted. the operator shall advise the Director of the final disposition of the core. This section does tot nmhibit the operator from taking such same les of the core as the operator may desire for testing. The onerator shall submit to the Department all test results when the core is submitted. ( 1 08. Whole Core. If whole core is taken. and if the operator in possession of the core intends to dispose of it. the operator will notify the Dcoartrnjnt at least sixty (601 days prior to disposal. The Denartment will then have the ontion of obtaining the core prior to disnosal. ( ) 342. -- 399. (RESERVED) Page 43 08_23_2016 Comment (e99]: If it does not pass the cement bond log, then what? Pressure test to see if it is Isolated, then take proper corrective actions (squeeze jab, top job). A: Reference to Mechanical Integrity requirements. Done, July 26. Comment [e100]: 2 lnch logs are the standard, but It Is written In the permissive with 1 inch being the minimum. Comment [f at101]: 7/27: Comment on oper- ators working with the Dept. In the manner and form of reproting. 101 is monitoring efforts to standardize some reporting by various agencies for companies operating in multiple states. RBDMS / Data Miner may also provide the opportunity for data to be uploaded directly. Comment [61021: Okay, but hardly used any- more due to modern logging methods. Comment [EW103]: Reference to core analyses and geologic reports removed, as these teams are too broad. Done, July 26. Comment [iat104]: Change "side" to "sidewall." A: Done July 22. Comment [e105]: Except for Montana, this is nota standard requirement. Other state standards not important because we are in a wildcat situation. Com:tient [6106]: Should be one year as is well logs. May need to have a statutory change even for thi;. If claimed as a trade secret, then the one year may not even apply. Make It a year Instead of 180 days. Only side cores. Arkansas can require it for engineering purposes. Subsection 08, If whole cores are taken, and if op- erator will dispose of it, notify 101 prior to disposal for possible possession. IGS also wants raw data of alt core testing, and have it corne into public availability after a period of time. A: Changes made throughout this subsection to address these comments. Done. July 26. DRAFT for Rulemaking Purposes Only SUBCHAPTER E - PRODUCTION 400. PRODUCTION REPORTS. 01. Required Content. An owner or operator must report production on a form created by the Department. Production reports submitted to the Department must include gas quantities iol4 in thousand cubic feet (mcf), ondensatel sold in barrel quantities (bbl), oil sold in barrel quantities (bbl), and formational waters produced in barrel quantities (bbl). (4-11-15) \ 02. Frequency. 1 t41 -p lrl: ' -to -the- I)pit+tmen4 -n - te-F-thap—aw tw4MM+ty-14+-Y.t (2 l st)-day-e1'-tl+e--+mmt#t--1+4ll4+wi++g thdik1.14 moody 4+11.er-tI+e-1 -inti +1-p+eclm ti meter-4hi 4+t+44l _ P prAtttettl- Monthly nmduction reports must be submitted to the Department no later than thw-twNr+Hytx* -(.2-1343 t•-tlte-eTe-t-wet+ty--h+tit (21st}da;.-e4:41te-tile►title-fall,:-ot}-a-++e++-bt+si+ clttyrart-is-tItte Ile- +H-1+++sitt eltt.r.--m+mt#pinety(90)dans following the month of nmduction. (-14.1-14}( 03. Annual Production Report. By+++t+t 34An ' 1 of each year, an owner or operator must submit to the Department an aggregated report of all hydrocarbons and formational waters produced and sold or disposed of for each well during the previous calendar year. 4-44--144( 401. MEASUREMENT OF OIL. The volume of production of oil shall be computed in terms of barrels of clean oil on the basis of meter measurements or tank measurements of oil -level difference made and recorded to the nearest quarter -inch (1/4") of one hundred percent (100%) capacity tables, subject to the following corrections: (10-21-92) 01. Correction for Impurities. The percentage of impurities (water, sand, and other foreign substances, not constituting a natural component part of the oil) shall be determined to the satisfaction of the Department, and the observed gross volume of oil shall be corrected to exclude the entire volume of such impurities. (3-29-12) 02. Temperature Correction. The observed volume of oil corrected for impurities shall be further corrected to the standard volume at sixty (60) Degrees F in accordance with ASTM 1)--I-2414--a144t4D1250 Tables, or any revisions thereof and any supplements thereto, or any close approximation thereof approved by the Department. 43 2q 121f 03. Gravity Determination. The gravity of oil at sixty (60) degrees F shall be determined in accordance with ASTM 1) 12501'X. "Fill+le4D1250 Tables, or any revisions thereof and any supplements thereto approved by the Department. (- 29 12F( 402. MEASUREMENT OF GAS. 01. Gas Metering. For protection of correlative rights of all parties, the owner or operator of a natural gas well shall meter or caused to be metered all natural gas produced from a well, utilizing a standard industry meter approved by the American Gas Association and capable of recording accurately the volume of natural gas produced at each well, unless another methodology, approved by the director, is utilized to provide for proper production allocation back to the individual well from a central point production meter or central point sales meter, which ever meter occurs first. (3-29-12) 02. (Gass Measurement. For computing volume of gas to be reported to the Department, the standard of pressure shall be li+t+t4een-pei+4-sr t+4y-tl+tee-44-1 Z:3414.696 psi atmospheric, and the standard of temperature shall be sixty (60) Degrees F. All volumes of gas to be reported to the Department shall be adjusted by computation to these standards, unless otherwise authorized by the Department. 4-3-244-24( 403. GAS -OIL RATIO FOR WELL CLASSIFICATIONS. In the absence of an order by the Commission setting a field -specific oil -gas ratio, a well that produces gas of five Page 44 08_23_2016 Comment [e107]: is this the industry standard? Should volume reported be based on production or sales. Statutory prohibition on producing related to price fluctuations? A: The Department can modify the monthly produc- tion report at any time, and if needed can seek an order from the Commission regarding production reporting. 47.328 prohibits the Department from limiting production based on market demand. Comment [e1081: No measurement require- ment for condensate exists as It does for oil and gas In Sections 401 and 402. A: The measurement requirements for oil and gas are partly to ensure that the all -gas ratios are de- termined In a consistent manner. This has implica- tions for well spacing. Also, condensate is defined by statute as being part of the gas, which makes a measurement standard difficult because it is a liquid at standard temperature and pressure and is meas- ured by the barrel. No change, June 17. Comment (e109]: Was negotiated in 2014 and should not be changed. A: The Department needs to have access to pr tion dote as soon es possible. The current requ ments create confusion for Department staff, other agencies, and the public. The majority of states require production reporting as soon as it occurs. Done, July 5. Will we move forward with statutory changes to make Hone year exemption from PRR? A: Yes, as approved by the Commission. Comment [e110]: alt is paid 60 day Gas is paid 90 days out from production, so report 90 days from Production? Also in gas facility section. A: Changed to 90 days. Done, July 19. Comment [e111]: Similar issue and response as above Comment [e112]: 9S0 to 1150 8TU for inter- state pipelines, we should require BTU contents of all products sold. A: Department can add BTU to monthly production reports without a change in the rules. No change, July 26. DRAFT for Rulemaking Purposes Only thousand '6,b00) cubic feet or greater to one (1) bbl of oil at standard temperature and pressure will be classified as a gas well (4-11-15) 404. GAS -OIL RATIO LIMITATION. 0I. Waste Prevention; Conditions for Emergency Order. To further prevent waste resulting from the production of wells with inefficient gas -oil ratios, the Department may enter an emergency order temporarily pr: tiibiting the production of oil or gas from all wells in a pool producing both oil and gas when the Department believes that waste may be occurring or is imminent in said pool by reason of the operation of wells with inefficient gas -oil ratios. The emergency order shall p i +-date-si r-th arn*g descritted-fie in effect until a final order can be processed as described in Subsection 404.02 of these rules. The Department may use information provided by an offset operator or an owner or operator in a common source of supply to determine if waste is occurring. t1 11 l3)( 02. Ne Netive-und-cause-fge-FitwingFinal Orders. A final order regarding inef cient oil and gas ratios will be nrocessed as described in Idaho Code & 47-324 The Department will notifyconsider all offset operators and owners or operators in the common source of supply e4L tw ear}r--daeps interested narties in Idaho Code S 47 324(b�.:\ !:r...411, -;An order regarding waste due to inefficient gas -oil ratios will-14e1djs required for any of the following reasons: (3 29 4-24( i. If an emergency order is issued as described in Subsection 404.01 of these rules. 3-1 a -#teal ittawil1-be 41 11 15}4 ii. Upon application to the Department from any person with an ownership interest in the common source of supply who believes that waste is occurring due to inefficient oil and gas ratios. The application must include credible evidence of such waste. 44e- thir_i 434}-dayof- the k outter.t1.,,eetk4fig--tHr al►plietttion (? 29 124 1 iii. Prior to an emergency situation and upon its own motion with reasonable cause, the Department may fieltedote-a-heittiwitreauest an order regarding potential waste due to inefficient gas -oil ratios. 4-29-1-2-t( 1 03. Determination of Inefficient Ratios; Power to Limit Production. If the Department atter nntte a+-l+eitca - wltet4 ar-held- opon it.. ?".F1 meti+arr;-opoo-the-applieation-of an ' • : . emerte kkr- -rater•, d as hct Tina—proa.ided- etermines that a well(s) in the pool are oftehthttp.mtgyith inefficient gas -oil ratios, and that waste is occurring or is imminent as a result thereof, it shall enter an order limiting the production of oil and gas from said pool. The production will be limited to that amount which the pool can produce without waste and in accordance with sound engineering practice. The order shall also limit the amount of oil or gas, or both, that may be produced from any well in the pool, so that each owner or operator is given an opportunity to produce his just and equitable share in the pool in accordance with sound engineering practice. 43 2) 12)4• 405. GAS -OIL RATIO SURVEYS AND REPORTS. Within thirty (30) days following the completion or recompletion of each well producing oil and gas and thereafter as the Department may require, the owner or operator of such well shall make a gas -oil ratio test of such well and the results of such test shall be reported to the Department within twenty (20) days after the test is made. Certain wells may be excepted from this rule by the Department upon written request. Entire fields may be excepted from this rule after notice and hearing. (3-29-12) 406. — 409. (RESERVED) 410. METERS. 01. General Requirements. Meter fittings of adequate size to measure the gas efficiently for the purpose of obtaining gas -oil ratios shall be installed on the gas vent line of every separator or proper connections made for orifice well tester. Well -head equipment shall be installed and maintained in excellent condition. Valves shall be installed so that pressures can be readily obtained on both casing and tubing. (3-29-12) Page 45 08_23_2016 Comment [e113): Is this correct? Itis low. EPA and other states use 1,000,000. k Priorto 2012 rules, ratio was 2,000 to 1. See 20.07.02.280.03.1s. EPA rules are oriented toward air emissions and not production and spacing. Texas uses 100,000:1, with opportunity for field erxepttons. Kansas uses 15,000:1. Montana uses 10,000:1 with the ability to reclassify. Oklahoma uses 10,000:1. AAPG cites 30,000:1, Petrowiki cites 69,000:1. The Mowry Shale in the Powder River Basin has wells with 21,000:1 or less. The Niobrara Shale has wells with 30,000:1 or less. The Bakkan Shale has wells with 3,000:1 or less. The Uinta Basin in Utah has wells with 1,000 or less. IDL currently has no production data an the one oil well currently producing, so analysis or comparison of Idaho's gas -oil ratio to other jurisdiction is not feasible. Condensate in Idaho is classified as a gas in statute. No change proposed, July 26. DRAFT for Rulemaking Purposes Only 02. ''Seter (Calibratioti. All required meters shall be calibrate at least once per calendar year. The records of such calibration shall be maintained or-+natia-a,.ailable-by the owner or operator of the well and shall be available for inspection by the Department. Such records shall be maintained by the owner or operator for a ileried-4#' at least five (5) years. 03. Visibility. All required meters shall be accessible and viewable by the Department for the purpose of monitoring daily, monthly and/or cumulative production volumes fn.:n individual wells. (3-29-12) 411. SEPARATORS. All flowing oil wells must be produced through an adequate oil and gas separator or emulsion treater, provided, however, the director may approve producing wells without a separator or emulsion treater. (10-21-92) 412. PRODUCING FROM DIFFERENT POOLS THROUGII THE SAME CASING STRING. No well shall be permitted to produce either oil or gas from different pools through the same string of casing without first receiving written permission from the Department. (3-29-12) 413. GAS UTILIZATION. After a well is completed and while it is being tested, the owner or operator may flare gas for no more than fourteen (14) days without paying royalties and severance taxes on the flared gas. Under no conditions may gas be flared for more than sixty (60) days after a well is completed or recompleted. Prior to flaring gas, owners or operators must notify the county in which the well is located and all owners of occupied structures within one-quarter (1/4) mile radius of the well. After the owner or operator has tested a well, no gas from such well shall be permitted to escape into the air, and all gas produced therefrom shall be utilized without waste. (4-11-15) 414. — 419. (RESERVED) 420. TANK BATTERIES. Tank batteries must meet the following requirements. (4-11-15) 01. Location of Tank Batteries. No tank batteries may be constructed within three hundred (300) feet of existing occupied structures, water wells, canal, ditches, the natural or ordinary high water mark of surface waters, or within fifty (50) feet of highways, as measured from the outermost portion of the tank dike. 44e-ove +-t►1-a-+ware wN14-0r-eist .upit ;trt*civ-trot}-}ret-ide-txl►rcws-wen•- rmni!:, iFm to ont:teutttit tattk-hat*ty-eltter-titatt-three handfed -044} flirt. hot-41-we-evelit may,a-lank-4 r3-he—eorr:tr tall-+mit#in- e-ltt++nireel-11 O+J}-itet I'r. r, :tef will er c -xi :attt� 4c1ieti-.t+1tttorw-The followine exceptions may annly: (4 11 15)( r Comment [e114]: Who at IDL Is checking on the meters and their calibration? Royalty owners and the state must be assured that meters are present and functioning. a. The owner of a water well or e>tistine occupied structuremay provide express written permission to construct a tank battery closer than three htundted (_eel. but jp oto event may a tank battery be constructed wi lir one hundred (100) feet of these features. ( 1 b. The owner of a canal. ditch. or surface water may provide express written permission to construct a kink battecloser than three hundred (3001 feet. and the Department may approve this location upon the operator howinl ry iza1r1 �fatise bul. i111)9 eY, ti apt lIk _bin, be cod 011.W91:., _ i .1 1 1.c. lit ft' . r . - 6. ( 1 02. Containment Requirements. All tank batteries consisting of tanks containing produced fluids or crude oil storage tanks or containing tanks equipped to receive produced fluids must be surrounded by tank dikes that meet the following requirements: (4-11-15) a. Tank dikes must be designed to have a capacity of at least one and one-half (1 V2) times the volume of the largest tank which the dike surrounds. (4-11-15) b. The material used to construct a tank dike and the material used to line the bottom and sides of the containment reservoir must have a maximum coefficient of permeability of l0-0 cm/sec so as to contain fluids and resist erosion. An operator must submit proof of compliance for tank dike liner construction to the Department in the Page 46 08_23_2016 A: Gas plant and production started En August of 2015, so production has not even occurred for one year yet. No specific rule changes suggested, so no changes, luno 17. The Commission has no specific authority to inter- vene in disputes between operators and mineral owners, and no statutory authority to require roy- alty adjustments based on metering errors. August 3. Comment [e115]: Not adequate, should be 500 feet as per North Dakofa and Colorado. A: 300' Is similar to, or greater than, NFPA 30 for setbacks. Language is permissive for North Dakota, not absolute. States have setbacks that vary from zero to 1,000 feet Several are in the range of 200 to S00, and many allow for exceptions to the setbacks. No change, July 19. Comment [e116]: For water well owners and occupied structures the Department approving Locations is not needed. Department approval only needed for canals, ditches, and surface waters. A: Changes made, July S. DRAFT for Rulemaking Purposes Only form of a manufacturer's statement of design or a nuclear density test performed by a third party trained to perform the test. (4 11 15)( 1 c. All piping and manmade improvements that perforate the tank dike wall or tank battery floor must be sealed to a minimum radius of twelve (12) inches from the outside edge of the piping or improvement. (4-11-15) d. Valves and quick -connect couplers on tank batteries must be at least eighteen (18) inches from the inside wall of the tank dike unless adeauate catchment guards are installed and maintained to catch incidental spillage. (4 11 15)( 1 e. Vegetation on the top and outside surface of tank dike must be properly maintained so as to not pose a fire hazard. (4-11-15) f. A ladder or other permanent device must be installed over the tank dike to access the containment reservoir. (4-11-15) g. The containment reservoir must be kept free of vegetation, stormwater, produced fluids, other oil and gas field related debris, general trash, or any flammable material. Drain lines installed through the tank dike for the purpose of draining storm water from the containment reservoir must have a valve installed which must remain closed and capped when not in use. Any fluids collected, spilled or discharged within the containment reservoirs must be removed as soon as practical, characterized, treated if necessary, and disposed in conformance with IDAPA 58.01.16, "Wastewater Rules," and other applicable rules. (4-11-15) 421. — 429. (RESERVED) 430. GAS PROCESSING FACILITIES. Gas processing facilities must meet the following requirements. (4-11-15) 01. Location of Gas Processing Facilities. No gas processing facility may be constructed within three hundred (300) feet of existing occupied structures, water wells, canal, ditches, the natural or ordinary high water mark of surface waters, or within fifty (50) feet of highways, as measured from the outermost portion of the gas processing facility. 4-I4ei witt'r t ' -spied = ► gray-prt►vidc west-ivr+ttr► ff►ri. : a -gas- t :sir--fae+liiy-c4 er • - • - ' . 3-cwe ft-tnay--a-g-process-4v let:;. I it:: 4e eE + }-feet ofct war N-twe*6tif{r oecHpied-mittiurr.The following excentions may annly: (111 15)( ) a. The owner of a water well or existing occ hied structure mav nrovide exnress written permission to construct a gas processing facility closer than throe hundred (300) feet, but in no event may a gas processing facility be constructed within one hundred (1001 feet of these features. ( 1 b. The owner of a canal. ditch. or surface water mav provide exnress written nermission to construct a gas nmcecsing-facility closer than three hundred (3001 feet_ and the Department may annrove this location upon the operator ahowins good cause. but in no event may a as nrocessina facility be constructed within one hundred (1001 feet of these features 02. Operations. Operators of gas processing facilities must notify the Department which wells, by API number, are served by a gas processing facility. All gas processing facilities not constructed on a well site must comply with the requirements in Sections 301 and 302 of these rules. (4-11-15) 03. Meters and Facility Plans. Gas processing facilities must account for all liquids and gas entering and leaving the facility with accurate meters. A supervisory control and data acquisition systems or other data recording system must be used to monitor the liquids and gas in the facility. Operators of gas processing facilities must submit an as -built facility design plan to the Department upon completion of the facility, a facility design plan must contain at the minimum: (4-11-15) a. Site layout; Page 47 (4-11-15) 08_23_2016 Comment [e117j: Not adequate, should be 500 feet as per North Dakota and Colorado. A: 300' is similar to, or greater than, NFPA 30 for setbacks. Language is permissive for North Dakota, not absolute. States have setbacks that vary from zero to 1,000 feet. Several are in the range of 200 to S00, end many allow for exceptions to the setbacks. No change, July 19. Comment (e118]: For water well owners and occupied structures the Department approving locations is not needed. Department approval only needed for canals, ditches, end surface waters. A: Changes made, July S. DRAFT for Rulemaking Purposes Only b. Oipin j and instrumentation diagram; c. Process Flow schematics; d. Electronic controls and sensing schematic; and (4-11-15) (4-11-15) 4-4-4-1.-4•-41 1 e - •- .1ttell►}tt epefoion---unit aiotciiim45e-mauuals-Isf-tit;►tit's; +t tats,-#teat-cwteltaliccr • a nAl- n other race.thongfly-cringea4-ettitipmettt-t#t anee-aotl tlilmti•tn•;--4-l-1.1-14+ Pefoitlik--maiiitenant:e-', lit uit.-14-ctitmfl-et}ti-ipmeot; 111 11 l5i fr,rt'.31cshooi-tw-ttt;�t: _; c11:1 11 11 1?> if e. Other information or documentation necessary for the safe and continued operation of a gas (4-11-15) processing facility. 04. Operational Details. The operator must also nrovide the Dcrtartment access to the following documentation upon rrauest: ( 1 a. Fauinment operations and maintenance manuals for. pumps. meters. heat exchangers and any other operationally critical eauinment that requires periodic maintenance and calibration: ( 1 b. Periodic maintenance schedule for critical eauinment: and c. Troubleshooting metric. 0405. Flaring. Flaring at gas processing facilities must be in conformance with IDAPA 58.01.01, Rules for the Control of Air Pollution in Idaho, and any permit issued by the IDEQ. (4-11-15) 0SOb. Inspections. Gas processing facilities must have site specific facility design plans and a log book of gas metered in and out of the facility available for review by Department staff during the inspections of gas processing facilities. During inspections, gas process facility staff must demonstrate knowledge of all operations and the location of all emergency shut off equipment, direction of flow lines, and heat exchangers. l -ht -1 ptft+rteittw-will-etmeluet �Nia l k . f t}sfies i4 -14-1-s1( 0607. Reports. A quarterly report must be submitted to the Department accounting for receipt, processing, and disposition of all gas by the gas processing facility within the reporting period. The report is due to the Department by-tl 4 vcntyif +2I 4ds ninety (901 days following the end of the reporting period. 4--11~-x.}( 1 431. — 499. • (RESERVED) SUBCHAPTER F - WELL ACTIVITY AND RECLAMATION 500. ACTIVE WELLS. 01. Gas Storage Wells. Gas storage wells are to be considered active at all times unless physically plugged. (3-29-12) 02. Extension of Active Status. An owner or operator may request an extension of active well status for wells that are idled for more than twenty-four (24) continuous months. The owner or operator shall provide a written request to the Department stating the reason for the extension, the length of extension, the method used to close the well to the atmosphere, and the plans for future operation. The Department shall review the request for approval, modification, or denial, and shall set the duration of the extension if approved. An extension shall not exceed five (5) years and may be renewed upon request. (3-29-12) Page 48 08_23_2016 Comment (e119]: 8, c, and d, should be treated as items below. A: IDL beliavas this Information can be submitted and treated as a trade secret upon request. Done, July S. Comment [8120]: Ethrough g, Instead require IDL have access to the information. it is a combina- tion of electronic and paper, lots of computer pro- grams. Public safety and waste prevention requires IDL to have this Information. Should be routine information available on site. A: Change made by transferring to new subsection. Done,June 24. _— Comment (e121]: Is this wise? When will IDL Inspect? A: IOL will inspect as needed. Inspections may be more frequent during periods of maintenance or construction, and may be less frequent during routine operations. June 24. Comment [81221: Same timing issue and reso- lution as with monthly well production. Done, July 19. DRAFT for Rulemaking Purposes Only 03. Annual Reports for Active Wells. The owner or operator shall submit an annual report to the Department describing the current status of the well and the plans for future well operation by January 31 of each year. Failure to submit the annual report may result in the Department declaring the well inactive. (4-11-15) 04. Biannual Pressure Reporting. All wells will be tested at least twice a year for daily production Potential. Test results will be entered on a Department form and submitted to the Department within thirty (301 dans of the test. These test results must include the followine: ( ) a. A daily steady flow report of oil. gas. and water nmduction if available: ( 1 h. Choke size and tubine pressures. Both flowine and shut in pressures will be provided if available: and ( ) c. Interim bottom -hole pressure surveys if available. ( 1 501. INACTIVE WELLS. 01. Determination of Inactive Status. The Department shall declare a well inactive after twenty-four (24) continuous months of inactivity if the owner or operator has not received approval for an exten sion of active status, or after an owner or operator fails to submit an annual report for an active well. The Department will immediately notify an owner or operator of this determination by certified mail, and the owner or operator may appeal this determination to the Commission. (3-29-12) 02. Owner's or Operator's Responsibility for Inactive Wells. The owner or operator must plug and abandon an inactive well in accordance with Section 502 of these rules within six (6) months of being notified by the Department unless the owner or operator supplies the following information within the six-month time period: (4-11-15) a. A written request to extend inactive status; (3-29-12) b. An individual bond, as provided for in Subsection 220.03 of these rules, if the well was covered by a blanket bond; and (4-11-15) c. A description of how the well is closed to the atmosphere with a swedge and valve, packer, or other approved method, and how the well is to be maintained. (3-29-12) 03. Inactive Review and Decision. The Department shall review the request for approval, modification, or denial, and shall set the duration of the extension if approved. An extension shall not exceed three (3) years and may be renewed upon request. (3-29-12) 04. Testing of Inactive Wells. In addition to the requirements of Section 320 of these rules, inactive wells shall have a mechanical integrity test performed within two (2) years after the date of last use in order to retain inactive status. (4-11-15) 05. Converting Inactive Wells to Active Wells. The owner or operator must apply to the Department to change the status of a well from inactive to active. The Department shall review the request for approval, modification, or denial. A mechanical integrity test may be required by the Department if the well bas been worked over or if a test has not been conducted for five (5) years or longer. If approved, the well may again be covered by a blanket bond. (3-29-12) 502. WELL PLUGGING AND ABANDONING. 01. Plugging Required. The operator or owner shall not permit any well drilled for oil, gas, saltwater disposal or any other purpose in connection with the production of oil and gas, to remain unplugged after such well is no longer used for the purpose for which it was drilled or converted. [gggl, will occur within one (11 year of the Page 49 08_23_2016 Comment je1231: Triggering should be different in case drifting occurs near end of permit time. A: The proposed rule language mirrors that in Idaho Code 47-320(3)(c). No change. June I4. DRAFT for Rulemaking Purposes Only permit issuance for the well. then an additional application and fee as per this section of the rules is not needed. 444-21 424 02. No ite•ef-t+ltention•-to--AbaDden-WetlAnnlication Required. 13-efave An oneator must file an anplication and the Department must approve a permit before beginning abandonment work on an oil or gas well;.a Net+ee-a-flnteRtw n -to -Allandeo shall-t--ied wttt►-tl}r-Depai t -and approval--* hta4ned -to--the--+nethod-o4 at+andoR,tte,tt-l,efere-tlhe wo,k-is staritt174het4iee-mt►4t-. t amt t ttst +vra-det ukd 4ata„ Rt -t proposed w w4 mel,telifs-y„c=3►-44441411i14011a -khk •a4s. pkint or-,nt,dd+„r.-eem,rft+Ht,4t4ing; tr.tiHg,oRd+'e},�, g , ethc �rrti,a+„t , xtR�itie„ lei was approved by the Department more than a near prior to the abandonment. Applications will be processed as described in Section 040 of these rules. 4-29 124 1 03. Application Contents. Applications must contain the following: 1 ) a. The reason for abandonment: ( 1 b. A detailed statement of the mmnosed work. including: 1 1 i. Kind. location. and length of plugs by depths: 1 1 ii. Plans for mudding. cementing. shooting. testing. and removing casing: 1 1 iii. Anv other information which may be required by the Department based on site specific reasons. ( 1 c. An anplication fee as described in Idaho ('ode & 47-320. 1 1 4304. Plugging Dry Holes. If a nonproductive well, or dry hole, is drilled and not needed for any specific purpose, it must be plugged and abandoned prior to removal of the drill rig. A verbal notification and approval may be used for dry holes in lieu of the writleo ►titirittion--plugging Hermit referenced in Subsection 502.02 of these rules. The standards in Subsections 502.045 through 502.067 of these rules will still apply. (4 11 15)( ) 0405. Plugging of Wells. The owner or operator of any well drilled for oil or gas, or any seismic, core, or other exploratory holes, whether cased or uncased, and regardless of diameter shall be responsible for the plugging of said hole in a manner sufficient to properly protect all freshwater -bearing and possible or probable oil- or gas -bearing formations. The material used in plugging, whether cement, mechanical plug, or some other equivalent method approved in writing by the Director, must be placed in the well in a manner to permanently prevent migration of oil, gas, water, or other substance from the formation or horizon in which it originally occurred. The preferred plugging cement slurry is that recommended in API Bulletin E3. Pozzolan, gel, and other approved extenders may be used if the owner or operator can document to the Department's satisfaction that the slurry design will achieve a minimum compressive strength of three hundred (300) psi after twenty-four (24) hours, and eight hundred (800) psi after seventy-two (72) hours measured at ninety-five (95) degrees F and at eight hundred (800) psi. No substances of any nature or description other than those normally used in plugging operations shall be placed in any well at any time during plugging operations. (3-29-12) O506. Plugged Intervals. The following plugging standards shall be followed for all wells: (3-29-12) a. Cement must be placed for a length of at least one hundred (100) feet on either side of each casing shoe, or casing bottom if no shoe is present. If the bottom of the hole is less than one hundred (100) feet from the bottom of the lowest casing, then the entire length of the uncased hole below the casing will be cemented. (3-29-12) b. In the uncased portions of a well, cement plugs must be placed to extend from one hundred (100) feet below the bottom up to one hundred (100) feet above the top of any oil, gas, and abnormally high pressure zones, so as to isolate fluids in the strata in which they are found and to prevent them from escaping into other strata. (3-29-12) Page 50 08_23_2016 DRAFT for Rulemaking Purposes Only c. A cement plug shall be placed a minimum of one hundred (100) feet above all producing zones in uncased portions ofa well. (3-29-12) d. A cement plug shall be placed a minimum of fifty (50) feet above and below the following intervals: (3-29-12) i. Where the casing is perforated or ruptured. If no cement is present behind the casing, then cement must also be squeezed out the perforations or ruptures and into the annular space between the casing and the borehole. (3-29-12) ii. Top and bottom of fresh water zones. If fresh water zone is less than one hundred (100) feet thick, then continuous cement must be placed from fifty (50) feet below the zone upward to fifty (50) feet above the zone. (3-29-12) e. The top of all cement plugs will be tagged to verify their depth. (3-29-12) f. The owner or operator shall have the option as to the method of placing cement in the hole by: (3-29-12) i. Dump bailer; (3-29-12) ii. Pumping a balanced cement plug through tubing or drill pipe; (3-29-12) iii. Pump and plug; or (3-29-12) iv. Equivalent method approved by the Director prior to plugging. (3-29-12) g. Unless prior approval is given, all wellbores shall have water based drilling muds, high viscosity pills, or other approved fluids between all plugs. (3-29-12) h. All abandoned wells shall have a plug or seal placed at the surface of the ground or the bottom of the cellar in the hole in such manner as not to interfere with soil cultivation or other surface use. The top of the pipe must be sealed with either a cement plug and a screw cap, or cement plug and a steel plate welded in place or by other approved method, or in the alternative be marked with a permanent monument which shall consist of a piece of pipe not less than four (4) inches in diameter and not less than ten (10) feet in length, of which four (4) feet shall be above the general ground level, the remainder to be embedded in cement or to be welded to the surface casing. (3-29-12) 607. Subsequent Report of Abandonment. If a well is plugged or abandoned, a subsequent record of work done must be filed with the Department. This report shall be filed separately within thirty (30) days after the work is done. The report shall give a detailed account of the manner in which the abandonment of plugging work was carried out, including the weight of mud, the nature and quantities of materials 'used in plugging, the location and extent (by depths) of the plugs of different materials, and the records of any tests or measurements made and of the amount, size, and location (by depths) of casing left in the well. If an attempt was made to part any casing, a complete report of the method used and the results obtained must be included. (3-29-12) tlo8. Wells Used for Fresh Water (Cold Water < 85 degrees Fahrenheit), Low Temperature Geothermal (85 - 212 Degrees Fahrenheit) or Geothermal Wells (>212 Degrees Fahrenheit). (3-29-12) a. Oil and gas wells, seismic, core or other exploratory holes no longer being used for their original purpose may not be converted into fresh water, low temperature geothermal, or geothermal wells unless the following actions occur: (3-29-12) i. Owner, operator, or surface owner files an application with the IDWR describing the conversion and the proposed use for the water or geothermal resource and any modifications necessary to meet the applicable well construction standards; (3-29-12) Page 51 08_23_2016 DRAFT for Rulemaking Purposes Only ii. The surface owner provides written documentation assuming responsibility for the converted well including, should it become necessary, decommissioning (plugging) of the converted well in accordance with applicable law; (3-29-12) iii. IDWR issues a permit for a geothermal resource well, a water right, or recognizes a domestic exemption authorizing the withdrawal of water from the converted well; and (3-29-12) iv. A licensed driller in Idaho inspects and certifies that the converted well meets all well construction standards for its intended purpose. (3-29-12) b. The Department's bond may not be released, and the oil and gas permit cancelled, until all requirements in Paragraph 502.O71.a. of these rules are met. (1 11 15)f ) 503. -- 509. (RESERVED) 510. SURFACE RECLAMATION. 01. Timing of Reclamation. After the plugging and abandonment of a well or closure of other oil and gas facilities, all reclamation work described in this Section shall be completed within twelve (12) months. The Director may grant an extension where unusual circumstances are encountered, but every reasonable effort shall be made to complete reclamation before the next local growing season. Drill rads constructed prior to drill permit annroval are subiect to the reclamation reauiremcnts of this Section. (3 29 12)( ) 02. General Clean Up. All debris, abandoned gathering line risers and flowline risers, surface equipment, supplies, rubbish, and other waste materials shall be removed within three (3) months of plugging a well. The burning or burial of such material on the premises shall be performed in accordance with applicable local, state, or federal solid waste disposal and air quality regulations. In addition, material may be burned or buried on the premises only with the prior written consent of the surface owner. (3-29-12) 03. Road Removal. All access roads to plugged and abandoned wells and associated production facilities shall be ripped, regraded, and recontoured unless otherwise specified in a surface use agreement. Culverts and any other obstructions that were part of the access road(s) shall be removed. Roads to be left will be graded to drain and prepared with rolling dips or other best management practices to minimize erosion. (3-29-12) 04. Regrading. Drill pads, pits, berms, cut and fill slopes. and other disturbed areas will be regraded to approximate the original contour. Where possible, slopes should be reduced to three (3) horizontal feet to one (1) vertical foot (3H:1 V) or flatter. (3-29-12) 05. Compacted Areas. All areas compacted by drilling and subsequent oil and gas operations that are no longer needed following completion of such operations shall be cross -ripped. Ripping shall be undertaken to a depth of eighteen (18) inches or bedrock, whichever is reached first. (3-29-12) 06. Topsoiling. Stockpiled topsoil shall be replaced in a manner that will support reestablishment of the pre -disturbance land use and contoured to control erosion and provide long-term stability. If necessary, topsoiled areas shall be tilled adequately in order to establish a proper seedbed. (3-29-12) 07. Revegetation. (3-29-12) a. The owner or operator shall select and establish plant species that can be expected to result in vegetation comparable to that growing on the affected lands prior to the oil and gas operations. Certified weed free seed should be used in revegetation. The owner or operator may use available technical data and results of field tests for selecting seeding practices and soil amendments that will result in viable revegetation. (3-29-12) b. The disturbed areas shall be reseeded in the first favorable season following rig demobilization, site regrading, and topsoil replacement. (3-29-12) Page 52 08_23_2016 DRAFT for Rulemaking Purposes Only c. Unless otherwise specified in the approved permit, the success of revegetation efforts shall be measured against the existing vegetation on site prior to the oil and gas operations, or against an adjacent reference area supporting similar types of vegetation. Reseeding or replanting is required until the following cover standards are met: (3-29-12) i. The ground cover of living plants on the revegetated area should be comparable to the ground cover of living plants on an adjacent reference area for two (2) full growing seasons after cessation of soil amendment or irrigation, if used; (3-29-12) ii. Ground cover shall be considered comparable if the planted area has at least seventy percent (70%) of the pre -disturbance, or adjacent reference area, ground cover; (3-29-12) iii. For locations with an average annual precipitation of more than twenty-six (26) inches, the Department, in approving a drilling permit ora pit, may set a minimum standard for success of revegetation as follows: Vegetative cover of seventy percent (70%) for two (2) full growing seasons in areas planted to herbaceous species only; or fifty percent (50%) vegetative cover for two (2) full growing seasons and six hundred (600) woody plants per acre in areas planted to a mixture of herbaceous and woody species; (3-29-12) iv. As used in this section, "herbaceous species" means grasses, legumes, and other forbs; "woody plants" means woody shrubs, trees, and vines; and "ground cover" means the area of the ground surface covered by the combined aerial parts of vegetation and the litter that is produced naturally on-site, expressed as a percentage of the total area measured. Rock surface areas will be excluded from this calculation; and (3-29-12) v. In all cases, vegetative cover shall be established to the extent necessary to control erosion. (3-29-12) d. Introduced species may be planted if they are known to be comparable to previous vegetation, or if known to be of equal or superior use for the approved post -reclamation land use, or, if necessary, to achieve a quick, temporary cover for soil stabilization purposes. Species classified as poisonous or noxious weed species shall not be used in revegetation. (3-29-12) e. By mutual agreement of the Department, the surface owner, and the owner or operator, a site may be converted to a different, more desirable or more economically suitable habitat. (3-29-12) f. Planting of grasses and forbs should be done in a manner which promotes rapid stabilization of the soil surface. Wherever terrain permits, grasses and forbs should be drilled or compacted into the ground using agricultural grass planting equipment or other seeders specifically designed for revegetation applications. Broadcast and hydroseeding may be used on areas where other methods are impractical or unavailable. (3-29-12) g. The owner or operator should plant shrubs or shrub seed, as required, where shrub communities existed prior to oil and gas operations. Shrub seed may be planted as a portion of a grass seed mix or planted as bare -root transplants after grass seeding. Where the surface owner desires a specific land use such as grazing or cropland, shrubs will not be required in the revegetation species mix. Shrub lands undergoing revegetation with shrubs shall be protected from erosion by vegetation, chemical binders, or other acceptable means during establishment of the shrubs. (3-29-12) h. Tree stocking of forestlands should meet the following criteria: (3-29-12) i. Trees that are adapted to the site should be planted in a density which can be expected over time to yield a timber stand comparable to pre -disturbance timber stands; (3-29-12) ii. Trees shall be established for two (2) full growing seasons after cessation of any soil amendments and irrigation before they are considered to be established; and (3-29-12) iii. Forestlands undergoing revegetation with trees should be protected from erosion by vegetation, chemical binders, or other acceptable means during seedling establishment. (3-29-12) Page 53 08_23_2016 i DRAFT for Rulemaking Purposes Only i. Revegetation is not required on areas that the surface owner wishes to incorporate into an irrigated field and any roads which will be used for other oil and gas operations. (3-29-12) j. Mulch should be used on severe sites and may be required by the permit where slopes arc steeper than three (3) horizontal feet to one (1) vertical foot (3H:IV) or the mean annual rainfall is Tess than twelve (12) inches. When used, straw, or hay mulch should be obtained from certified weed free sources. "Mulch" means vegetation residues or other suitable materials to aid in the stabilization of soil and soil moisture conservation which will provide a micro -climate more suitable for germination and growth on severe sites. Annual grains such as rye, oats, and wheat may be used as a substitute for mulch where they will provide adequate protection and will be replaced by permanent species within a reasonable length of time. (3-29-12) 08. Reclamation Under a Surface Use Agreement. Notwithstanding the requirements of Subsections 510.03 through 510.07 of this rule, reclamation may be superseded by the conditions of a surface use agreement as long as the site is left in a stable, non -eroding condition that will not impact fresh waters. (4-11-15) 511. — 999. (RESERVED) Page 54 08_23_2016