DEPARTMENT OF ENVIRONMENTAL QUALITY

OFFICE OF GEOLOGICAL SURVEY

MINERAL WELLS

(By authority conferred on the director of the department of environmental quality by

section 62506 of 1994 PA 451, MCL 324.62506, Section 9 of 1965 PA 380, MCL

16.109, and Executive Reorganization Order No. 1995-16, MCL 324.99903)

PART 1. GENERAL PROVISIONS

R 299.2301 Application of rules.

Rule 2301. These rules govern mineral well operations in this state and supersede

all rules and regulations issued under the authority of 1969 PA 315, MCL 324.62501 et

seq. except for orders and determinations of the supervisor of mineral wells that

have application to specifically designated areas throughout this state.

History: 2004 AACS.

R 299.2302 Definitions; A to F.

Rule 2302. As used in these rules:

(a) "Act" means 1994 PA 451, MCL 324.111 et seq.

(b) "ANSI" means the American national standards institute.

(c) "API" means the American petroleum institute.

(d) "Area of review" means either of the following:

(i) For a well disposing of nonhazardous waste that area the radius of which is the

greater of 1/4 mile or the lateral distance in which the pressures in the injection

zone are sufficient to increase hydrostatic head in the injection zone above the base

of the lowermost underground source of drinking water, but shall not be more than 2

miles.

(ii) For a well disposing of hazardous waste that area the radius of which is the

greater of 2 miles or the lateral distance in which the pressures in the injection zone

are sufficient to increase hydrostatic head in the injection zone above the base of

the lowermost underground source of drinking water.

(e) "Area of injectate migration" means that area the radius of which is the calculated

lateral distance over which injectate will migrate over the proposed life of a disposal

well.

(f) "Authorized representative of the supervisor of mineral wells" means a department

of environmental quality employee who is charged with the responsibility for

implementation of the act or rules.

(g) "Blowout prevention equipment" means a casinghead control device designed

to control the flow of fluids from the well bore by closing around the drill pipe or

Page 1

Courtesy of Michigan Administrative Rules

production tubing or completely sealing the hole in the absence of drill pipe or

production tubing.

(h) "Briefing area" means a specified geographic area, where all personnel may

safely assemble in an emergency.

(i) "Change of well status" means any of the following:

(i) To make changes or alterations in the

equipment.

permanent

nonretrievable well

(ii) To make changes or alterations in the original relationship between the permanent

nonretrievable well equipment and the adjacent geologic formations.

(iii) Fracture stimulation of a well.

(iv) Deepening of a well.

(v) Temporarily abandoning a well. Change of well status does not include well

stimulation required during normal operation.

(j) "Colorimetric or length of stain tubes" means glass tubes that contain a chemical

which changes color upon exposure to a specified substance and which allow the

concentration of the specified substance to be read directly.

(k) "Conformance bond" means a surety bond that has been executed by a surety

company authorized to do business in this state, cash, certificates of deposit, letters of

credit, or other securities that are filed by a person and accepted by the supervisor of

mineral wells to ensure compliance with the act, these rules, permit conditions,

instructions, orders of the supervisor of mineral wells, or an order of the department.

(l) "Directionally drilled well" means a well purposely deviated from the vertical

using controlled angles to reach an objective subsurface location.

(m) "Drilling completion" means the time when a well has reached its permitted

depth or the supervisor of mineral wells has determined drilling has ceased.

(n) "Emergency preparedness coordinator" means an individual appointed under

1976 PA 390, MCL 30.401 et seq. to coordinate emergency planning or services within

the county or municipality.

(o) "External mechanical integrity" means a well subject to this part has no significant

fluid movement through vertical channels adjacent to the well bore.

(p) "Facility piping" means piping that connects any of the following:

(i) Compressors.

(ii) Flares.

(iii) Loadouts.

(iv) Separators.

(v) Storage tanks.

(vi) Transfer pumps.

(vii) Treatment equipment.

(viii) Vents.

(q) "Fence" means a structure that is designed to deter access and which consists

of not less than 2 strands of barbed wire, 1 strand being approximately 18 inches

above the ground and the other strand being approximately 42 inches above the

ground, secured to supporting posts or means an equivalent structure that deters

access.

(r) "Final completion" means either of the following:

Page 2

Courtesy of Michigan Administrative Rules

(i) The time when locating,

drilling,

deepening,

converting, operating,

producing, reworking, plugging, and proper site restoration have been performed on

a well in a manner approved by the supervisor of mineral wells, including the filing of

the mandatory records.

(ii) The time when a permit has been issued to convert an existing well subject to this

part to a purpose allowed under another act or another part of the act.

(s) "Flare" means a device for the burning of gasses in which the flame is exposed to

the atmosphere and burning takes place at a height of not less than 20 feet above the

ground.

(t) "Flow line" means piping that connects a well or wells to a surface facility.

(u) "Fresh water" means water which is free of contamination in concentrations that

may cause disease or harmful physiological effects and which is safe for human

consumption.

(v) "Fresh water drilling fluid" means any fluid used for drilling a well which contains

fewer than 11,000 milligrams per liter total dissolved solids. Fresh water drilling fluid

does not include an oil-based drilling fluid.

History: 2004 AACS.

R 299.2303 Definitions; G to R.

Rule 2303.As used in these rules:

(a) "Gas storage" means the use of a depleted oil or gas pool, salt cavern, or other

porous strata used for injecting and withdrawing gas from the depleted oil or gas

pool, salt cavern, or other porous strata.

(b) "Geologist" means a person who is certified as a geologist by a credible

geological professional association or who, by reason of his or her knowledge of the

natural sciences, mathematics, and the principles of geology acquired by either

professional experience or practical experience, or both, is qualified to engage in the

practice of the science of geology.

(c) "Generator" means a person whose action or process produces a waste product.

(d) "Groundwater" means water below the land surface in the zone of saturation.

(e) "Incinerator" means a device specifically designed for the destruction, by

burning, of combustible gasses, in which the products of combustion are emitted to

the outer air by passing through a stack or chimney that opens to the outer air at a

height of not less than 20 feet above the ground.

(f) "Instruction" means a written statement of general applicability which is issued

by the supervisor of mineral wells, which conforms with the act and rules promulgated

under the act, and which clarifies or explains the applicability of the act or

rules to commonly recurring facts or circumstances.

(g) "Internal mechanical integrity" means a well subject to this part has no significant

leak in the casing, tubing, packer, or wellhead.

(h) "Lost hole" means a well which cannot be completed or further drilled because

of mechanical difficulties, accidents of construction, or geological conditions.

(i) "NACE" means the national association of corrosion engineers.

(j) "Nuisance odor" means an emission of any gas, vapor, fume, or

mist, or

combination thereof, from a well or its associated surface facilities, in whatever

Page 3

Courtesy of Michigan Administrative Rules

quantities, that causes, either alone or in reaction with other air contaminants, any of the

following:

(i) Injurious effects to human health or safety.

(ii) Unreasonable injurious effects to animal life, plant life of significant value, or

property.

(iii) Unreasonable interference with the comfortable enjoyment of life or property. A

1-hour time weighted hydrogen sulfide concentration in ambient air of 0.2 ppm

constitutes a nuisance odor for the purposes of this part.

(k) "Organization report" means a listing of all corporate officers, directors,

incorporators, or partners who have the authority to make, or are responsible for

making, operational decisions, including the siting, drilling, operating, producing,

reworking, and plugging of wells.

(l) "Permit" means a permit to drill and operate a well including associated

surface facilities and flow lines.

(m) "Ph" means the degree of acidity or alkalinity of

expressed as a value from 1 to 14.

the

waste products,

(n) "Ppm" means parts per million by volume.

(o) "Processed brine" means naturally occurring or artificial brine from which 1 or

more dissolved constituents have been removed by a commercial or industrial

process.

(p) "Psi" means pounds per square inch.

(q) "Psig" means pounds per square inch gauge.

(r) "Repair" means changes to the retrievable downhole components of a well, minor

reconditioning operations, such as backflushing or swabbing, or, changes to the

surface equipment of a well.

(s) "Reservoir" means a natural or artificially developed underground container of

liquids or gas.

History: 2004 AACS.

R 299.2304 Definitions; S to Z.

Rule 2304. As used in these rules:

(a) "Safety equipment" means, at a minimum, all of the following items:

(i) First aid kits.

(ii) Stretchers.

(iii) Blankets.

(iv) Portable dry chemical fire extinguishers.

(v) Ropes.

(vi) Flare guns and flares.

(vii) Battery-operated lanterns.

(viii) Portable electronic hydrogen sulfide detectors.

(ix) Warning signs that have the word "danger" or "caution" followed by the words

"poison gas."

(x) Two copies of the owner's contingency plan.

(xi) Not less than 2 portable, self-contained, pressure-demand breathing apparatus

that have a 30-minute air supply.

Page 4

Courtesy of Michigan Administrative Rules

(xii) A supply of compressed breathable air or oxygen that is sufficient to recharge

each self-contained breathing apparatus at least once.

(b) "Shut-in" means an action by an owner or permittee to close down an active well

temporarily.

(c) "Site restoration" means all of the following:

(i) The filling and leveling of all cellars, pits, and excavations.

(ii) The removal or elimination of all debris.

(iii) The elimination of all conditions that may create a fire or pollution hazard.

(iv) The minimization of erosion.

(v) The restoration of the well site as nearly as practicable to the original land

contour or to a condition approved by the supervisor of mineral wells.

(d) "Solution mining" means the process of injecting fluid into

a

well to dissolve

rock salt or other readily soluble rock or mineral, and the production of the

resulting artificial brine.

(e) "Stored product" means

any

substance

except

liquid hydrocarbons,

liquified petroleum gas, or dry natural gas which is injected into an underground

storage cavity with the intent to remove the substance from the underground storage

cavity at some future time.

Stored product does not include water or other

solvents injected into a cavity or well during solution mining to form an artificial

brine.

(f) "Structure used for public or private

occupancy"

means

a residential

dwelling or place of business, place of worship, school, hospital, government

building, or other building where people are expected to be present at least 4 hours per

day.

(g) "Substantially modify" means any of the following:

(i) To permanently reroute above-ground facility piping outside of an existing

secondary containment area.

(ii) To add vessels at a surface facility or well having no secondary containment on

the effective date of these rules.

(iii) To add a vessel at a surface facility having secondary containment when the

addition of the vessel would increase the total volume of the vessels to more than the

capacity of the diked area required in R 299.2446(c).Substantially modify does not

include routine maintenance or emergency repairs at a wellhead or surface facility.

(h) "Surface casing" means the casing string or strings used primarily for protecting

fresh water or mineralized water resources from potential contamination during

the drilling and operation of a well.

(i) "Surface facility" means the area in the vicinity of a well subject to this part where

produced brine, waste products or stored products are held temporarily before

transportation, disposal, or storage, and the surface equipment necessary for

handling, disposing, or storing the liquids. Surface facility does not include any of the

following:

(i) Surface equipment subject to a permit under Part 111 of the act.

(ii) Surface equipment within the perimeter of a manufacturing plant if the surface

equipment is subject to secondary containment and spill response and reporting

requirements under another part of the act.

(iii) A pipeline connecting a well directly to a manufacturing plant.

Page 5

Courtesy of Michigan Administrative Rules

(iv) A well annulus monitoring system.

(j) "Surface water" means a body of water, and the associated sediments, which has a

top surface that is exposed to the atmosphere and which is not solely for wastewater

conveyance, treatment, or control. Surface water may be any of the following:

(i) A Great Lake or its connecting waters.

(ii) An inland lake or pond.

(iii) A river or stream, including intermittent streams.

(iv) An impoundment.

(v) An open drain.

(vi) A wetland.

(k) "Underground source of drinking water" means an aquifer or any portion of an

aquifer which does either of the following:

(i) Supplies any public or private water system.

(ii) Contains a sufficient quantity of groundwater to supply a public or private water

system; and includes either of the following:

(A) Currently supplies drinking water for human consumption.

(B) Contains fewer than 11,000 milligrams per liter total dissolved solids.

(l) "Well completion" means the time when a well has been tested and found to be

incapable of being put to the use for which it was intended and has been plugged or has

been found capable of being put to the use for which it was intended or when the well

has been equipped to perform the service for which it was intended.

(m) "Well completion operations" means work performed in a well, after the well has

been drilled to its permitted depth and the innermost string of casing has been set,

including perforating, artificial stimulation, and production testing.

(n) "Well location" means the surface location of a well.

(o) "Zoned residential" means a geographic area that was zoned by a local unit of

government before the effective date of these rules, as an area designated principally

for permanent or recreational residences.

History: 2004 AACS.

R 299.2305 Terms defined in act.

Rule 2305. Unless the context requires a different meaning, the trade words and

other words defined in the act have the same meanings when used in these rules.

History: 2004 AACS.

R 299.2309 Rescission.

Rule 2309. R 299.2201 to R 299.2298 of the

Michigan

administrative code,

appearing on pages 88 to 95 of volume 3, of the 1999 Michigan administrative

code, are rescinded.

History: 2004 AACS.

Page 6

Courtesy of Michigan Administrative Rules

PART 2. PERMITS TO DRILL AND OPERATE

R 299.2311

Application for permit to drill and

operate

general

requirements; permits for existing unpermitted wells.

Rule 2311.(1) Except as provided in R 299.2337, a person seeking to drill a well for a

use allowed by this part or to convert an existing well to a use allowed by this part shall

submit an application to the supervisor of mineral wells before beginning the drilling and

operation of a well or the conversion of an existing well.

(2) A person shall comply with all of the following requirements:

(a) A person applying to drill and operate a well shall accurately complete and fill out,

sign, and file a written application for a permit to drill on a form prescribed by the

supervisor of mineral wells.

(b) A person applying to convert an existing well subject to another act or another part

of the act to a use allowed by this part shall accurately complete and fill out, sign,

and file a written application for a permit to drill or convert and operate on a form

prescribed by the supervisor of mineral wells.

(c) The application required by subdivision (a) or (b) of this subrule shall be

submitted to the supervisor of mineral wells at the offices of the Michigan Department

of Environmental Quality, Geological and Land Management Division, P.O. Box 30256,

Lansing, Michigan 48909, and a copy of the first page of the permit application and

cover letter shall be mailed to the clerk of the township and the surface owner of record

of the land on which the well is to be located at the same time as submitting the permit

application by first-class United States mail addressed to the surface owner's last

known address as evidenced by the current property tax roll records.

(d) The well location shall be surveyed by a surveyor licensed in this state, a

readily visible stake or marker shall be set at the well location of a new well, and a

flagged route shall be established to the well location of a new well except as provided

in R 299.2316(b). For existing wells, if a survey is available which accurately depicts

the well site and surrounding area, then a new survey is not required.

(e) The survey required by subdivision (d) of this subrule shall include a plat that shows

all of the following except as provided in R 299.2316(b):

(i) The well location and bottom hole location description.

(ii) A flagged route or explanation of how the well location may be reached.

(iii) Footages from the nearest section lines, nearest quarter section, and nearest

property lines. In areas where surveyed sections do not exist, distances from the

nearest private claim lines or latitude and longitude of the well location.

(iv) Information relative to the approximate distances and directions from the stake

or marker to special hazards or conditions, including all of the following:

(A) Surface waters and other environmentally sensitive areas within

1,320 feet of the proposed well. Environmentally sensitive areas are identified by

the department pursuant to applicable state and federal laws and regulations.

(B) Floodplains associated with surface waters within 1,320 feet of the proposed

well.

(C) Wetlands, as identified by sections 30301 to 30323 of the act, within 1,320

feet of the proposed well.

Page 7

Courtesy of Michigan Administrative Rules

(D) Natural rivers, as identified by sections 30501 to 30515 of the act, within 1,320

feet of the proposed well.

(E) Critical dune areas, as designated by sections 35301 to 35326 of the act, within

1,320 feet of the proposed well.

(F) Threatened or endangered species, as identified by sections 36501 to 36507 of

the act, within 1,320 feet of the proposed well.

(G) All buildings, recorded fresh water wells and reasonably identifiable fresh

water wells used for human consumption, public roads, railroads, pipelines, and

power lines or other man-made features that lie within 600 feet of the proposed well

location, but not including proprietary information relating to manufacturing processes.

(H) All public water supply wells identified as type I and IIa that lie within 2,000

feet of the proposed well location and type IIb and III that lie within 800 feet of the

proposed well location, as defined in 1976 PA 399, MCL 325.1101 et seq.

(I) Identification of the existing local zoning designation of the surface location of

the well.

(f) One signed and sealed copy of the survey, on a form prescribed by the supervisor

of mineral wells, shall be filed with an application required in subdivision (a) or (b) of

this subrule.

(g) If the proposed well is located in or will impact any areas described in

subdivision(e)(iv)(A) or (B) of this subrule, a person shall file for and obtain all

applicable permits from the department before developing the well site or access to the

well site or before drilling of the well. The person shall also file for and obtain any

additional permits required before the installation of flow lines or production

equipment or before operating the well.

(h) A person shall file an environmental impact assessment on a form prescribed by

the supervisor of mineral wells.

(i) A person shall file an organization report if a current organization report is not on

file with the supervisor of mineral wells.

(j) A person shall file a conformance bond as provided by R 299.2330.

(k) A person shall pay the fee as specified by statute. A fee filed with an application

shall not be applied to a subsequent application. The fee shall be returned if a permit is

not issued.

(3) Except as provided in R 299.2337, within 1 year after the effective date of these

rules, an owner of an existing well for which no permit has been issued shall submit an

application for a permit to drill and operate as required in subrule (1) of this rule.

(4) A permit to drill and operate does not transfer, assign, or convey any interest in real

estate.

History: 2004 AACS.

R 299.2312 Application for permit to drill and operate

additional requirements.

a

disposal well;

Rule 2312. A person seeking to drill a disposal well or to convert a previously

drilled well to a disposal well shall submit, in addition to the information specified in R

299.2311, all of the following information with an application:

(a) A map showing all of the following information:

Page 8

Courtesy of Michigan Administrative Rules

(i) The location and total depth of the proposed well.

(ii) Each abandoned, active, or permitted well and dry hole subject to this part or part

615 of the act within the area of review of the proposed well location.

(iii) The surface owner of the land on which the proposed well is to be located.

(iv) Each operator of an active well subject to this part or part 615 of the act within the

area of review of the proposed well.

(b) If a well is proposed to be converted to a disposal well, a copy of a diagram of the

current completion configuration together with geophysical logs.

(c) Available plugging records of all abandoned wells and casing, sealing, and

completion records of all other wells and artificial penetrations within the area of

review of the proposed well location and a map identifying all such artificial

penetrations. An applicant shall also submit

a

plan reflecting the steps or

modifications believed necessary to prevent proposed injected waste products from

migrating up, into, or through inadequately plugged, sealed, or completed wells.

(d) A description of the vertical and areal extent of underground sources of drinking

water in the area of review and a summary of the present and potential future use of

the waters.

(e) Geologic maps and stratigraphic cross-sections of the local and regional

geology.

(f) A calculation of the area of review in the injection interval over the anticipated

life of the well, including the equations or method used to perform the calculation.

(g) A discussion of the affect of injection on the present and potential mineral

resources in the area of review.

(h) Information to characterize a waste product proposed for injection, including all

of the following:

(i) An identification and analysis or estimated composition if an analysis is not

available of a waste product proposed for injection, before and after treatment or

filtration. However, if the fluid to be injected is fresh water, then an analysis is not

required. An analysis for a waste product shall include all of the following parameters:

(A) Specific conductance.

(B) Concentrations of major cations and anions.

(C) Total chloride.

(D) Hardness.

(E) pH.

(F) Total dissolved solids.

(G) Total suspended solids.

(H) Fecal coliform concentration, if fecal coliform bacteria are known to be present in

the waste.

(ii) If the waste product is not brine from oil and gas operations, then the analysis shall

also include any components which may indicate hazardous waste as defined in the act

and which the waste product generator has knowledge are present in the waste

product.

(iii) If the proposed well is not intended for disposal of hazardous waste, then a

statement certifying a waste product is not either of the following:

(A) A hazardous waste as defined in the act.

Page 9

Courtesy of Michigan Administrative Rules

(B) A hazardous waste as defined by the

United

States environmental

protection agency under 40CFR 261 of the resource conservation recovery act.

(i) Information to characterize the proposed injection zone based on existing

information, including all of the following:

(i) The geological name of the stratum or strata making up the injection zone

and the top and bottom depths of the injection zone.

(ii) An isopach map showing thickness and areal extent of the injection zone.

(iii) Lithology, grain mineralogy, and matrix cementing of the injection zone.

(iv) Effective porosity of the injection zone including the method of determination.

(v) Vertical and horizontal permeability of the injection zone and the method used to

determine permeability. Horizontal and vertical variations in permeability expected

within the area of review.

(vi) The occurrence and extent of natural fractures and solution features within the

area of review.

(vii) Chemical and physical characteristics of the fluids contained in the injection

zone porosity and fluid saturations.

(viii) The anticipated bottom hole temperature and pressure of the injection zone

and whether these parameters have been affected by past fluid injection or withdrawal.

(ix) Formation fracture pressure, the method used to determine fracture pressure, and

the expected direction of fracture propagation.

(x) The vertical distance separating the top of the injection zone from the base of the

lowest underground source of drinking water.

(xi) Other information the applicant believes will characterize the injection zone.

(j) Information to characterize the proposed confining zone based on existing

information, including all of the following:

(i) The geological name of the stratum or strata making up the confining zone

and the top and bottom depths of the confining zone.

(ii) An isopach map showing thickness and areal extent of the confining zone.

(iii) Lithology, grain mineralogy, and matrix cementing of the confining zone.

(iv) Effective porosity of the confining zone including

determination.

the

method of

(v) Vertical and horizontal permeability of the confining zone and the method

used to determine permeability. Horizontal and vertical variations in permeability

expected within the area of review.

(vi) The occurrence and extent of natural fractures and solution features within

the area of review.

(vii) Chemical and physical characteristics of the fluids contained in the confining

zone porosity and fluid saturations.

(viii) Formation fracture pressure, the method used

pressure, and the expected direction of fracture propagation.

to

determine fracture

(ix) The vertical distance separating the top of the confining zone from the base of the

lowest underground source of drinking water.

(x) Other information the applicant believes will characterize the confining zone.

(k) Calculations demonstrating injection of liquids into the proposed injection zone

will not exceed the fracture pressure gradient and information showing injection into

Page 10

Courtesy of Michigan Administrative Rules

the proposed geological strata will not initiate fractures through the confining zone.

Calculations showing

the anticipated dispersion, diffusion, and displacement of injected fluids and behavior

of transient pressure gradients in the injection zone during the anticipated life of the

well.

(l) Proposed operating data, including all of the following data:

(i) The daily injection rates and pressures.

(ii) A plan for conducting mechanical integrity tests as required by R 299.2391 and R

299.2393.

(iii) The methods to be used for transporting waste to the disposal well.

(iv) Proposed procedures to ensure safe storage of waste products at the surface

before injection.

(m) A list of all operators subject to this Part and Part 615 and certification that

the applicant for a well has notified all operators by first class mail of the applicant's

intention to drill a disposal well which will do either of the following:

(i) Dispose of waste products into a zone that would likely constitute or is known to be

within a producing oil or gas pool or natural brine pool.

(ii) Drill through an existing oil, gas, or natural brine pool or gas storage field. If

within 21 days after the mailing date a substantive objection is filed with the

supervisor of mineral wells by an operator, then a hearing shall take place under part

13 of these rules before an application may be granted.

(n) A proposed plugging and abandonment plan.

(o) If the well is to be a multisource commercial hazardous waste disposal well.

(p) A schematic diagram of the well bore showing the proposed arrangement of the

downhole well equipment and specifications of the downhole well equipment.

History: 2004 AACS.

R 299.2313 Application for permit to drill and operate

additional requirements.

a

storage well;

Rule 2313. An applicant to drill a storage well or to convert a previously drilled

well to a storage well shall submit, in addition to the information specified in R

299.2311 and R 299.2312, all of the following information with an application:

(a) The name and chemical formula of the product to be stored, and a

characterization of the physical, chemical, and hazardous or toxic properties of the

product.

(b) The anticipated vertical and horizontal dimensions and volume of the completed

underground storage cavity.

(c) The anticipated operating life of the underground storage cavity.

(d) The method to be used to create the underground storage cavity.

(e) The name of the geological stratum in which the underground storage cavity

will be created.

(f) A schematic diagram of the well bore showing the proposed arrangement

and specifications of the downhole well equipment.

(g) If the underground storage cavity is to be formed by solution mining bedded salt,

then all of the following information shall be included:

Page 11

Courtesy of Michigan Administrative Rules

(i) The plan for disposal of brine produced during solution

mining

of the

underground storage cavity and for the operating life of the underground storage

cavity.

(ii) The expected starting and ending dates of the solution mining.

(h) The range of anticipated operating pressures of the underground storage cavity.

(i) The anticipated range of operating injection pressure.

(j) The proposed method of displacing stored product.

(k) A plan for testing the mechanical integrity of the underground storage cavity as

provided in R 299.2392 and R 299.2393.

History: 2004 AACS.

R 299.2314 Application for permit to drill and operate a well for production of

artificial brine; additional requirements.

Rule 2314. An applicant to drill and operate a brine well for production of artificial

brine or to convert a previously drilled well to a well for production of artificial

brine shall submit, in addition to the

information specified in R 299.2311, all of the following proposed information

with an application:

(a) If the well will be drilled into an existing cavern, the number of wells in the

cavern, the present extent of the cavern, and the purpose of the proposed well.

(b) The name of the geological stratum or strata to be mined, the top and bottom

depths of the mined zone, the gross and net mineable thickness, and the mineral or

minerals to be recovered by solution mining.

(c) An isopach map showing thickness and areal extent of the strata to be mined.

(d) A sketch showing the extent of the planned mine area.

(e) The geological strata to be left in place for roof support.

(f) A diagram showing the well bore with the proposed casing program and its

relationship to the stratum or strata to be mined.

(g) A plan for conducting subsidence monitoring as required in R 299.2407 or a

rationale for not conducting subsidence monitoring.

History: 2004 AACS.

R 299.2315 Application for a permit to drill and operate

additional requirements.

a

test well;

Rule 2315. An applicant to drill and operate or to convert a previously drilled

well to a test well that penetrates below the deepest fresh water stratum or is more

than 250 feet in depth, shall submit, in addition to the information specified in R

299.2311, all of the following information with an application:

(a) The purpose of the well.

(b) A proposed plugging procedure and plugging schedule.

(c) The proposed testing and geophysical logging procedure.

History: 2004 AACS.

Page 12

Courtesy of Michigan Administrative Rules

R 299.2316

Application for

blanket

test

well

permit;

additional

requirements.

Rule 2316. An applicant to drill 1 or more test wells that do not penetrate below

the deepest fresh water stratum and are 250 feet or less in depth shall submit, in addition

to the information specified in R 299.2311, all of the following information with an

application:

(a) The purpose of the drilling project.

(b) A listing of the well locations and well names and numbers, identifying

distances from the nearest section lines or latitude and longitude coordinates, and

identification of the method used to determine well locations.

(c) A United States geological survey 7.5-minute topographic map showing

approximate well locations.

(d) The anticipated number of wells in the project.

(e) The anticipated beginning and ending dates of the drilling project.

(f) A proposed plugging procedure and plugging schedule.

(g) The proposed borehole testing and geophysical logging procedure.

History: 2004 AACS.

R 299.2317 Application for permit to directionally drill a well; additional

requirements.

Rule 2317. An applicant to directionally drill a well shall submit, in addition to the

information specified in R 299.2311, a directional drilling diagram showing all of the

following:

(a) The depth at which deviation from vertical is planned.

(b) The angle and path of each deviation.

(c) The proposed horizontal distance and direction from the well location to the bottom

hole.

(d) The proposed measured and true vertical depths.

History: 2004 AACS.

R 299.2318 Issuance of permit to drill and operate a well; posting of permit.

Rule 2318. (1) The application for a well shall be processed under this rule and the

supervisor of mineral wells shall issue or deny a permit to drill and operate under

section 62509 of the act.

(2) Upon receipt of an application for a permit, the supervisor of mineral wells or

authorized representative of the supervisor of mineral wells shall have not more than

60 days to review the application to determine if the application is accurate and

administratively complete.

(3) If the application is determined to be inaccurate

or

incomplete, then the

supervisor of mineral wells or authorized representative of the supervisor of mineral

wells shall provide the applicant, within the 60-day period, with a notice that the

Page 13

Courtesy of Michigan Administrative Rules

application is inaccurate or incomplete and what changes or additional information

shall be submitted. Upon receipt of the requested information, the supervisor of

mineral wells or authorized representative of the supervisor of mineral wells shall have

not more than 30 additional days to review the information to determine if the

application is accurate and administratively complete.

(4) Upon completion of the review process, if a public hearing is not held, the

supervisor of mineral wells or authorized representative of

the supervisor of mineral wells shall issue or deny the permit application within 11

business days, as provided in section 62509 of the act.

(5) If a public hearing is conducted, the supervisor of mineral wells or authorized

representative of the supervisor of mineral wells shall issue or deny the permit within 11

business days following review of the evidence gathered at the hearing.

(6) A determination of administrative completeness does not mean that additional

information may not be required from the applicant as a result of new circumstances

that come to the attention of the supervisor of mineral wells.

(7) Under R 299.2324, the supervisor of mineral wells shall not issue a permit to a

person or an authorized representative of a person if the person is not eligible for a

permit.

(8) A person shall receive and post the permit in a conspicuous place at the well

location. The permit shall remain posted at the well

completion.

location

until drilling

History: 2004 AACS.

R 299.2319 Directional redrilling.

Rule 2319. (1) A permittee of a well, which has reached drilling completion, who

desires to directionally redrill the well to a bottom hole location which is less than 165

feet from the existing bottom hole location, shall file an application to change well

status as required in R 299.2384.

(2) If a permittee of an existing well desires to directionally redrill the well to a new

bottom hole location that is more than 165 feet from the current location, then all of

the following shall apply:

(a) The permittee shall file an application for a new permit. The application shall

describe the new bottom hole location and identify the plug-back depth of the existing

well. The application shall be filed under R 299.2311.

(b) If the well has reached drilling completion, but the drilling rig is still on location,

a permittee may obtain approval to begin redrilling by contacting the supervisor of

mineral wells or the authorized representative of the supervisor of mineral wells in

person, or by telephone, and providing pertinent details of the proposed directional

redrilling. Approval may be granted immediately if both of the following conditions

are met:

(i) The existing drilled hole is plugged back before starting the new directional

hole, as provided by these rules, if plugging back is required by the supervisor of

mineral wells.

(ii) The well has adequate bonding as required in R 299.2332.

Page 14

Courtesy of Michigan Administrative Rules

(c) If approval to directionally redrill a well is granted, the permittee shall file an

application for a new permit to drill and operate and pay an additional fee within 5

business days at the offices of the Michigan Department of Environmental

Quality, Geological and Land Management Division, P.O. Box 30256, Lansing,

Michigan 48909. In addition to other enforcement actions, failure to comply with this

subrule shall be cause for immediate suspension of any or all components of the

operations of the well. A permittee of a well who desires to directionally redrill

an existing well to a different bottom hole location that is more than 165 feet from the

current bottom hole location shall file an application for a new permit. The

application shall describe the new bottom hole location and identify the plug-back

depth of the existing well and shall be filed under R 299.2311. The directional

redrilling shall not begin until the application is approved by the supervisor of mineral

wells or authorized representative of the supervisor of mineral wells, except as

provided in this subrule. A new permit and an additional fee shall be required.

(3) Records as required in R 299.2369 to R 299.2372 and the plugging record shall

be filed on the plugged-back hole as provided by these rules.

History: 2004 AACS.

R 299.2320 Public hearings on storage and disposal wells.

Rule 2320. If the supervisor of mineral wells determines the public safety or other

interests of concern to the public are involved, or a person who has standing and is

directly concerned with the proposed permit, files a written request or petition which

alleges that the public safety or other interest is involved, then the supervisor of

mineral wells may schedule and conduct a public hearing to receive evidence to

determine if a permit should be denied.The hearing may be conducted under part 13 of

these rules.

History: 2004 AACS.

R 299.2321 Notice of application to drill; advance notice of intent to drill.

Rule 2321. An applicant to drill a storage or disposal well may be required to

furnish adequate advance notice of the application to drill either by publication in a

newspaper of general circulation in the area, or by first-class mail, or both, to

property owners within the area of review of the proposed well or within such adjacent

area as required by the supervisor of mineral wells.

History: 2004 AACS.

R 299.2322 Lost holes.

Rule 2322. (1) A permittee of a well shall obtain approval to skid a rig or move to start

a new hole if a hole has been lost. A new permit or additional fee is not required if the

new well location is within 165 feet of the lost hole.

Page 15

Courtesy of Michigan Administrative Rules

(2) A permittee of a well may obtain approval for skidding a rig or moving to a

new well location because of a lost hole from the authorized representative of

the supervisor of mineral wells in person or by telephone. Approval may be granted

immediately if all of the following provisions are complied with:

(a) The lost hole is plugged before starting the replacement hole as provided by

the provisions of these rules.

(b) The new well location is a safe distance from the lost hole.

(c) The new well location does not create surface waste.

(d) An amended application, which identifies the new well location, is filed within 5

business days at the offices of the Michigan Department of Environmental

Quality, Geological and Land Management Division, P.O. Box 30256, Lansing,

Michigan 48909. In addition to other enforcement actions, failure to comply with this

subrule shall be cause for suspension of any or all components of the operations on the

well.

(e) Records as required in R 299.2369 to

R

299.2372 and well plugging

records are filed on all lost holes as provided by the provisions of these rules.

History: 2004 AACS.

R 299.2323 Conversion of well to use allowed under part 615 of the act.

Rule 2323.(1) An applicant seeking to convert a well drilled under this part to a use

allowed under part 615 of the act shall apply for and obtain a permit as provided in that

part.

(2) Upon issuance of the permit under part 615 of the act, a permit issued under

this part of the act shall terminate and be without force and effect.

History: 2004 AACS.

R 299.2324 Eligibility for permit.

Rule 2324. The supervisor of mineral wells shall not issue or transfer a permit, other

than as provided by R 299.2325(3) and (4), to a person who is in violation of any of the

following:

(a) This part.

(b) These rules.

(c) Permit conditions.

(d) Instructions of the supervisor of mineral wells.

(e) Orders of the supervisor of mineral wells.

History: 2004 AACS.

R 299.2325 Modification of permits; deepening permits; change of ownership.

Rule 2325. (1) A permittee of a well who has not initiated drilling of a well shall not

change the well location by more than 165 feet, the method of drilling, casing, and

sealing programs, or other conditions of the permit without the approval of the

Page 16

Courtesy of Michigan Administrative Rules

supervisor of mineral wells or authorized representative of the supervisor of mineral

wells. To receive approval, the permittee shall return the permit to the Lansing office of

the supervisor of mineral wells together with a revised application with corrected

attachments and supplements. If the permittee only requests a modification of the

existing permit conditions, then an additional fee is not required. Drilling shall not begin

until the revised permit has been approved by the supervisor of mineral wells or

authorized representative of the supervisor of mineral wells and posted at the drilling

site.

(2) A permittee of a well who begins the drilling of a well and encounters

drilling problems or other drilling conditions that necessitate a change shall not

change the method of drilling, casing, and sealing programs, or other conditions of

the permit without the approval of the supervisor of mineral wells or authorized

representative of the supervisor of mineral wells. To receive approval to modify

an existing permit condition only, the permittee shall contact the supervisor of

mineral wells or authorized representative of the supervisor of mineral wells by

letter, telephone, or visit and explain the drilling circumstances and request the

necessary changes to the permit. The supervisor of mineral wells or authorized

representative of the supervisor of mineral wells may give verbal approval to modify

the permit with conditions for additional reporting requirements by the permittee. If

approval to modify an existing permit is granted, then the revised application and

corrected attachments and supplements shall be filed, within 5 business days, at the

offices of the Michigan Department of Environmental Quality, Geological and

Land Management Division, P.O.Box 30256, Lansing, Michigan 48909. An additional

permit fee is not required.

(3) If a permittee of a well conveys his or her rights as an owner of a well to another

person, or ceases to be the authorized representative of the owner of a well, before final

completion, then a request for the transfer of the permit to the acquiring person shall

be submitted by the acquiring person to the supervisor of mineral wells at the offices

of the Michigan Department of Environmental Quality, Geological and Land

Management Division, P.O. Box 30256, Lansing, Michigan 48909, on forms as

prescribed by the supervisor of mineral wells. The transfer of the permit may be

approved upon receipt of a properly completed request, including the signatures of

the permittee of record and the acquiring person, and upon the filing by the acquiring

person of the conformance bond as required by R 299.2330. Pending the transfer of

the existing permit, the acquiring person shall not operate the well. The acquiring

person shall be required to file an organization report under R 299.2311(2)(j).

(4) A permit for a well shall not be transferred to a person who is in violation of

any of the following, until the person has corrected the violation or the supervisor

of mineral wells has accepted a compliance schedule and a written agreement has

been reached to correct the violations:

(a) This part.

(b) These rules.

(c) Permit conditions.

(d) Instructions of the supervisor of mineral wells.

(e) Orders of the supervisor of mineral wells.

Page 17

Courtesy of Michigan Administrative Rules

(f) An order of the department. An additional conformance bond covering the period of

the compliance schedule may be required. The conformance bond shall be in

addition to the conformance bonds filed under R 299.2330.

(5) Before transfer of a permit, the supervisor of mineral wells or authorized

representative of the supervisor of mineral wells shall inspect the well and

associated surface facilities.

If unsatisfactory conditions exist at the well site

involved in the transfer, then the permit for a well shall not be transferred to a

person until the current permittee has completed the necessary corrective actions

or the acquiring person has entered into a written agreement to correct all of the

unsatisfactory conditions.

History: 2004 AACS.

R 299.2326 Suspension of operations due to failure to transfer permit.

Rule 2326. If a permittee of a well conveys his or her rights as an owner of a well to

another person, or ceases to be the authorized representative of the owner of a well, and

a request for transfer of the permit under R 299.2325(3) has not been approved,

then, in addition to other enforcement actions, failure to comply shall be cause

for immediate suspension of any or all components of the operations on the well.

History: 2004 AACS.

R 299.2327 Termination of permit.

Rule 2327. (1) A permit other than a blanket permit for test wells issued under

these rules, or transferred under R 299.2324(3) or rules that were in effect before the

effective date of these rules, shall terminate 2 years after the date of issuance, unless

the drilling operation has begun

and the drilling operation is diligently proceeding or the well is

otherwise being used for its permitted purpose. The supervisor of mineral wells may

grant an extension of time to begin drilling provided a request for an extension is

received by the supervisor of mineral wells.

(2) A blanket permit for test wells shall terminate 2 years after the date of issuance

or when the number of wells specified in the application for a permit to drill and

operate has reached final completion, whichever comes sooner. The supervisor of

mineral wells may grant an extension of time to begin drilling provided a request for

an extension is received by the supervisor of mineral wells and provided no drilling

has begun.

(3) Terminated permits may not be reactivated or transferred and the permit fee

shall not be refunded.

History: 2004 AACS.

R 299.2328 Temporary abandonment status.

Page 18

Courtesy of Michigan Administrative Rules

Rule 2328. (1) A permittee of a well that has not been used for its permitted

purpose during 24 consecutive months or has been tested and found to be unuseable for

the purpose for which it was permitted shall plug the well, unless the well is granted

temporary abandonment status. Temporary abandonment status shall be allowed only

upon written application to, and approval of, the supervisor of mineral wells or

authorized representative of the supervisor of mineral wells.

(2) The term of the initial temporary abandonment status shall not be more than 24

months.

(3) Extensions for temporary abandonment status beyond the initial term provided in

subrule (2) of this rule may be granted by the supervisor of mineral wells if, after

application by the permittee, the supervisor of mineral wells determines that waste

shall be prevented. When approving the extensions, the supervisor of mineral wells

may require special actions and monitoring by the permittee to ensure the prevention of

waste and may require conformance bonding in addition to that required by R. 299.2332.

History: 2004 AACS; 2008 AACS.

R 299.2329 Blanket test well permits; number of wells; extent; plugging test

wells.

Rule 2329. (1) A blanket test well permit may be issued to drill not more than 200

test wells.

(2) A blanket test well permit is valid only for the county for which the permit is

issued.

(3) A test well drilled under a blanket test well permit shall be plugged within 30

days of drilling completion and completion of all proposed well bore testing,

except a test well may remain unplugged if the owner has applied for and received

temporary abandoned status as required in R 299.2328.

History: 2004 AACS.

R 299.2330 Conformance bond or statement of

requirements.

financial responsibility

Rule 2330. (1) A person who files an application for a permit to drill and operate a

well under R 299.2311, or who acquires a well under R 299.2325(3), shall file a

conformance bond with the supervisor of mineral wells on a form prescribed by the

supervisor of mineral wells or shall submit a statement of financial responsibility as

required in subrule (2) of this rule.

(2) A statement of financial responsibility shall consist of the following:

(a) A written statement which is signed by the person, which lists data that show that

the person meets the criteria specified in subrule (3) of this rule, and which states that

the data are derived from an independently audited year-end financial statement.

(b) A copy of an independent certified public accountant's report on examination

of the person's financial statements for the latest completed fiscal year.

(c) A special report from the person's independent certified public accountant

stating that the accountant has compared the data listed in the statement provided under

Page 19

Courtesy of Michigan Administrative Rules

subdivision (a) of this subrule with the amounts in the corresponding year-end

financial statement and that nothing came to the attention of the accountant which

caused the accountant to believe that the financial records should be adjusted.

(3) If a person submits a statement of financial responsibility instead of a conformance

bond, then the person shall meet the criteria of either subdivision (a) or (b) of

this subrule, as follows:

(a) A person required to file the statement of financial responsibility shall

have all of the following:

(i) Two of the following 3 ratios:

(A) A ratio of total liabilities to net worth of less than 2.0.

(B) A ratio of the sum of net income plus depreciation, depletion, and amortization

to total liabilities of more than 0.1.

(C) A ratio of current assets to current liabilities of more than 1.5.

Proved mineral reserves may be used in determining current assets only to the extent that

the value of the reserves exceeds the projected costs of development and

production.

(ii) Net working capital and tangible net worth each of which is not less than 3

times the amount of the conformance bond provided in R 299.2332, if the person

had elected to file a conformance bond.

(iii) Total assets in this state that are not less than 3 times

the amount of the

conformance bond provided in R 299.2332, if the person elected to file a conformance

bond. Projected mineral reserves may be used in determining current assets only to

the extent that the value of the reserves exceeds the projected costs of development and

production.

(iv) A written statement from a certified public accountant which states that no

matter came to the attention of the accountant which caused him or her to believe that

the financial records should be adjusted.

(b) A person required to file a statement of financial responsibility shall have all of

the following:

(i) A current rating for his or her most recent bond issuance of AAA, AA, A, or BBB

as issued by Standard and Poor's or AAA, AA, A, or BAA as issued by Moody's.

(ii) A tangible net worth of not less than $2,000,000.00.

(iii) Total assets in this state that are not less than 3 times

the amount of the

conformance bond provided in R 299.2332, if the person had elected to file a

conformance bond. Projected mineral reserves may be used in determining current

assets only to the extent that the value of the reserves exceeds the projected costs of

development and production.

(4) A person shall submit a statement of financial responsibility to the supervisor of

mineral wells not less than 60 days before the date the financial assurance is

scheduled to take effect.

(5) After the initial submission of a statement of financial responsibility, the

person shall send an updated statement of financial responsibility to the supervisor of

mineral wells within 90 days after the close of each succeeding fiscal year.

(6) If a person no longer meets the requirements of subrule (3) of this rule, he or

she shall send notice to the supervisor of mineral wells of the intent to establish

Page 20

Courtesy of Michigan Administrative Rules

alternate financial assurance by filing a conformance bond as specified in subrule

(1) of this rule. The notice shall be sent, by certified mail, within 90 days after the end

of the fiscal year for which the year-end review of the financial records shows that

the person no longer meets the requirements. The person shall provide the alternate

financial assurance within 120 days after the end of the fiscal year.

(7) The supervisor of mineral wells may, based on a reasonable

belief that the

person no longer meets the requirements of subrule (3) of this rule, require a report at

any time from the person in addition to the information required by subrule (3) of

this rule. If the supervisor of mineral wells finds, on the basis of a review of the

report or other information, that the person no longer meets the requirements of subrule

(3) of this rule, then the supervisor of mineral wells or authorized representative

of the supervisor of mineral wells shall notify and inform the person. Within 30 days

of the notification, the person shall provide alternate financial assurance by filing a

conformance bond as specified in subrule (1) of this rule or shall bring the well to

final completion. Failure to comply with this subrule shall be cause for

immediate suspension of any or all components of the operations on the well.

(8) The supervisor of mineral wells may require additional conformance bonds to

ensure compliance with orders of the supervisor of mineral wells.

The conformance bond shall be in addition to the conformance bonds filed under R

299.2332(a), (b), or (c) and shall be required only if the supervisor of mineral

wells determines that the existing conformance bond is not adequate to cover the

estimated cost of plugging the well and conducting site restoration or other

obligations of the permittee under the order. A person is not required to file additional

conformance bonds under this subrule if the person has filed a blanket conformance

bond or bonds in an aggregate amount of $400,000.00 or more, under R

299.2332(d). Subject to the provisions of R 299.2333, the additional conformance

bond shall be released when the permittee has complied with all provisions of

orders of the supervisor of mineral wells.

(9) Conformance bonds that were in effect before the effective date of these rules

shall remain in effect under the conditions upon which they were filed and accepted by

the supervisor of mineral wells.

History: 2004 AACS.

R 299.2331 Liability on conformance bond.

Rule 2331. (1) The liability on the conformance bond

is

conditioned upon

compliance with the act, these rules, permit conditions, instructions, or orders

of the supervisor of mineral wells. Subject to the provisions of R 299.2333, liability

shall cover all operations of the permittee as follows:

(a) Until transfer of the permit for the subject well under R 299.2325(4).

(b) Until final completion approved by the supervisor of mineral wells of the subject

well.

(c) Until such time as another bond is in place.

(2) The supervisor of mineral wells shall look to the

conformance

bond for

immediate compliance with, and fulfillment of, the full conditions of the act, these

rules, permit conditions, instructions, or orders of the supervisor of mineral wells.

Page 21

Courtesy of Michigan Administrative Rules

All expenses incurred by the supervisor of mineral wells in achievement of

compliance with, and fulfillment of, all conditions of the act, these rules, permit

conditions, instructions, or orders of the supervisor of mineral wells shall be paid by the

permittee or the surety or from cash or securities on deposit. The claim shall be paid

within 30 days of notification to the permittee or surety that expenses have been incurred

by the supervisor of mineral wells. If the claim is not paid within 30 days, then the

supervisor of mineral wells, acting for and on behalf of the state, may bring suit for

the payment of the claim.

History: 2004 AACS.

R 299.2332 Conformance bond amounts.

Rule 2332. A person who drills or operates a well shall file a conformance bond with

the supervisor of mineral wells for the following amounts, as applicable:

(a) Single well conformance bonds shall be filed in the following amounts, as

applicable:

(i) $33,000.00 for a disposal, storage, or brine well.

(ii) For an individual test well:

(A) $5,500.00 for a depth of 0 to 1,000 feet.

(B) $11,000.00 for a depth greater than 1,000 feet to 2,000 feet.

(C) $22,000.00 for a depth greater than 2,000 feet to 4,000 feet.

(D) $33,000.00 for a depth greater than 4,000 feet.

(iii) For a blanket test well permit, the following:

(A) $5,500.00 for 1 to 24 wells.

(B) $11,000.00 for 25 to 49 wells.

(C) $16,500.00 for 50 to 75 wells.

(D) $22,000.00 for 76 to 200 wells.

(b) Blanket conformance bonds may be filed as an alternative to single well

conformance bonds. If a blanket conformance bond is used, then the permittee shall

provide the supervisor of mineral wells with a list of wells covered by the blanket

conformance bond. A maximum of 50 brine, storage, disposal, or

individual test wells or any combination of these may be covered by a blanket

conformance bond. If the permittee has more than 50 wells in a category, then the

additional wells may be covered by single well conformance bonds or additional

blanket conformance bonds. Blanket conformance bonds shall be filed in the amount

of $440,000.00.

(c) Blanket test well permits shall not be eligible for blanket conformance bonds.

(d) The permittee is not required to file a blanket conformance bond or bonds in an

aggregate amount of more than $440,000.00. If the aggregate amount of the

conformance bonds is $440,000.00, then the permittee may file 1 blanket conformance

bond of $440,000.00 to cover all of his or her wells.

History: 2004 AACS; 2008 AACS.

R 299.2333 Liability under conformance bonds issued by a surety.

Page 22

Courtesy of Michigan Administrative Rules

Rule 2333. A surety company shall retain liability for all violations of the act, these

rules, permit conditions, and instructions, or orders of the supervisor of mineral wells

that occurred at the well during the time the conformance bond was in effect until the

violations have been corrected and the corrections are accepted by the supervisor of

mineral wells.

History: 2004 AACS.

R 299.2334 Limitation of additional liability of blanket conformance bonds.

Rule 2334. A surety company may refuse to accept liability for additional wells

under a blanket conformance bond by giving 11 days notice by certified mail to the

supervisor of mineral wells. The blanket conformance bond shall continue in full force

and effect as to all other wells covered by the blanket conformance bond for

which permits were granted or transferred to the permittee before the effective date of

the notice.

History: 2004 AACS.

R 299.2335 Release of conformance bonds; release of well from blanket

conformance bond.

Rule 2335.(1) A conformance bond shall be released or a well shall be released from

a blanket conformance bond by the supervisor of mineral wells or authorized

representative of the supervisor of mineral wells if the permit for the well has been

transferred to a new person as provided by R 299.2325(4) or if the well has been

brought to final completion.

(2) The release of the conformance bond or the release of a well from a blanket

conformance bond does not release a permittee from liability for any violations of the

act, these rules, permit conditions, instructions, or orders of the supervisor of mineral

wells which occurred during the time the conformance bond was in effect and which

have not been corrected and accepted by the supervisor of mineral wells.

(3) A conformance bond filed to comply with

terminated shall be released if there is final completion.

a

permit

that

has become

History: 2004 AACS.

R 299.2336 Notice of release of conformance bond or release of well from

blanket conformance bond.

Rule 2336. (1) The supervisor of mineral wells or authorized representative of

the supervisor of mineral wells shall advise the surety company and the permittee

when the conformance bond has been released or a well has been released from a

blanket conformance bond.

(2) The supervisor of mineral wells or authorized representative of the supervisor

of mineral wells shall return cash to the permittee or securities to the institution that

provided the bonding instrument when the conformance bond has been released.

Page 23

Courtesy of Michigan Administrative Rules

History: 2004 AACS.

R 299.2337 Test wells not subject to this part.

Rule 2337. A test well drilled in an area of the state where rocks of precambrian

age directly underlie unconsolidated surface deposits is not subject to R 299.2311, R

299.2315, R 299.2316, R 299.2317, R 299.2318, R 299.2319(1), R 299.2319(3), R

299.2322(1), R 299.2322(2)(e), R 299.2329(1), R 299.2329(2), and R 299.2329(3).

History: 2004 AACS.

PART 3. LOCATION OF MINERAL WELLS

R 299.2341 Well location; exception.

Rule 2341. (1) Except as provided in subrule 2, the prescribed well location shall

comply with all of the following requirements, as applicable:

(a) The well location and associated surface facilities for wells drilled, or constructed,

after the effective date of these rules, which is not a replacement or improvement for

an existing well or surface facility, shall be located not less than 300 feet from existing

recorded fresh water wells and reasonably identifiable fresh water wells utilized for

human consumption and existing structures used for public or private occupancy.

(b) Except as provided by 1976 PA 399, MCL 325.1001 et seq., the well separators,

storage tanks, and treatment equipment installed or constructed after the effective date

of these rules shall be located not less than 2,000 feet from type I and IIa public water

supply wells and not less than 800 feet from type IIb and III public water supply wells, as

defined in 1976 PA 399, MCL 325.1001 et seq.

(2) The supervisor of mineral wells or authorized representative of the supervisor of

mineral wells may issues a permit for a well where the surface location is closer than 300

feet from all existing recorded fresh water wells and reasonably identifiable fresh water

wells utilized for human consumption and existing structures used for public or private

occupancy under either of the following conditions:

(a) Upon presentation to the supervisor of mineral wells of written consent signed by the

owner or owners of all existing fresh water wells and reasonably identifiable fresh

water wells utilized for human consumption and existing structures used for public or

private occupancy.

(b)The supervisor of mineral wells determines the well location or location of associated

surface facilities will prevent waste, protect environmental values, and not compromise

public safety after a hearing conducted under part 13 of these rules.

(3)A well shall not be located or drilled to an objective formation which will result in

operations incompatible with existing or permitted uses under this part or part 615. An

applicant shall demonstrate its operations are not incompatible with those uses.

History: 2004 AACS; 2008 AACS.

Page 24

Courtesy of Michigan Administrative Rules

PART 4. WELL DRILLING AND CONSTRUCTION

R 299.2351 Preventing waste.

Rule 2351. A person who drills a well or wells as described in R 299.2311(1)

shall use every reasonable precaution to prevent waste.

History: 2004 AACS.

R 299.2352 Drilling notification.

Rule 2352. Not less than 5 days before preparing the location and not less than 48

hours before moving drilling equipment on location, the permittee shall notify the

supervisor of mineral wells or authorized representative of the supervisor of mineral

wells and the surface owner when well construction is to begin. Notice may be given

verbally or by first-class United States mail.

History: 2004 AACS.

R 299.2353 Construction of water wells used for drilling

facilities.

or surface

Rule 2353. (1) A water well that is drilled and used for drinking water purposes

during the drilling of the well or retained after drilling completion or final

completion shall be drilled as provided

by rules promulgated under part 127 of 1978 PA 368, MCL 333.12701 et seq.

(2) A water well that is not to be retained after drilling

completion or final

completion shall be completed and abandoned as instructed by the supervisor of

mineral wells and shall meet all of the following minimum requirements:

(a) Be located not less than 50 feet from drilling mud pits, pipe racks, salt and

mud mixing sites, and the wellhead.

(b) Be drilled with chlorinated fresh water.

(c) Be grouted as provided by the well construction and grouting rules contained

in the well construction code promulgated under part 127 of 1978 PA 368, MCL

333.12701 et seq.

(d) Geologic records shall be filed with the supervisor of mineral wells on a form

prescribed by the supervisor of mineral wells.

(e) The wellhead, including annulus, shall be sealed and a check valve shall be

installed in the surface discharge line to prevent contaminants from entering the well.

(f) The well shall be abandoned and plugged as provided by the plugging and

abandonment rules contained in the well construction code promulgated under part 127

of 1978 PA 368, MCL 333.12701 et seq.

History: 2004 AACS.

R 299.2354 Use of surface water for drilling.

Page 25

Courtesy of Michigan Administrative Rules

Rule 2354. (1) Surface water shall not be used for drilling fluid, except as provided in

subrule (2) of this rule.

(2) A request to use surface water for drilling a well may be made as part of the

application for a permit to drill. The supervisor of mineral wells may approve the use

of surface water for drilling a well.

History: 2004 AACS.

R 299.2355 Drilling fluids generally.

Rule 2355. The drilling fluid used for drilling wells described in R 299.2311(1)

shall be capable of sealing off and protecting each oil, gas, brine, or fresh water

stratum encountered during drilling, and controlling subsurface pressures. The water or

brines used in the drilling fluid shall be from a source approved by the supervisor of

mineral wells or authorized representative of the supervisor of mineral wells, used

under approved safe drilling practices, and tested as instructed by the supervisor of

mineral wells, except that only fresh water shall be used in the drilling of the hole for the

surface casing. The supervisor of mineral wells or authorized representative of the

supervisor of mineral wells may approve the use of fluids other than water for drilling

fluids.

History: 2004 AACS.

R 299.2356 Blowout prevention equipment.

Rule 2356. (1) All wells shall be equipped with the following equipment during

drilling:

(a) A double ram blowout preventer, including pipe and blind rams, and an annular-

type blowout preventer or other equivalent control system as approved by the

supervisor of mineral wells or authorized representative of the supervisor of mineral

wells.

(b) Accessible controls both on the rig floor and at a safe remote location.

(c) A kelly valve.

(d) A drill pipe safety valve.

(e) A flow line of the proper size and working pressure.

(f) Blowout prevention equipment that has a rated working pressure which equals

or exceeds the maximum anticipated surface pressure of the well.

(2) The blowout preventers shall be installed above ground level.The entire control

equipment shall be in good working condition at all times.All outlets, fittings, and

connections on the casing, blowout preventers, choke manifold, and auxiliary wellhead

equipment that may be subjected to

wellhead pressure shall be of a material and construction that will withstand the

anticipated pressure. The lines from outlets on or below the blowout preventers shall

be securely installed, anchored, and protected from damage.

(3) Blowout preventers, accumulators, and pumps shall be certified as operable

under the product manufacturer's minimum operational specifications. Certification

shall include the proper operation of the closing unit valving, the pressure gauges,

Page 26

Courtesy of Michigan Administrative Rules

and the manufacturer's recommended accumulator fluids. Certification shall be obtained

through an independent company that tests blowout preventers, stacks, and casings.

Certification shall be required annually and shall be posted on the rig floor. In addition

to the primary closing system, including an accumulator system, the blowout

preventers shall have a secondary system. A combination of any 2 of the following

secondary closing systems is acceptable:

(a) Electric-operated pump.

(b) Air-operated pump.

(c) Hand-operated pump.

(d) Nitrogen-operated pump.

Extensions that have hand wheels are not mandatory. Blowout preventer rams shall be

of a proper size for the drill pipe being used or production casing being run in the well or

shall be variable-type rams that are of the proper size range.

(4) Blowout prevention equipment shall be tested to a pressure commensurate

with the expected formation pressure, but not less than 1,000 psig at surface for not less

than 20 minutes, before drilling the plug on the surface casing, intermediate casing,

and the production casing and before encountering all high-pressure formations and at

other intervals as approved or requested by the supervisor of mineral wells. If

requested, an authorized representative of the supervisor of mineral wells shall be

notified before the commencement of a test. A record of each test, including test

pressures, times, failures, and each mechanical test of the casings, blowout preventers,

surface connections, surface fittings, and auxiliary wellhead equipment shall be

entered in the logbook, signed by the driller, and kept available for inspection by

the supervisor of mineral wells or authorized representative of the supervisor of mineral

wells.

(5) A trip tank, or an accurate drilling fluid monitoring system, and a gas buster and

flare system shall be in place when penetrating the A2 Carbonate or any known or

suspected overpressured formations. Permission to change or modify the requirements

specified in this subrule may be granted by submitting a written request to the

supervisor of mineral wells or authorized representative of the supervisor of mineral

wells. The requirements may be changed or modified only after submission of a

written request and receipt of written approval from the supervisor of mineral wells

or authorized representative of the supervisor of mineral wells.

(6) An exception to all or part of this rule may be granted by the supervisor of

mineral wells or authorized representative of the supervisor of mineral wells when

drilling in shallow low-pressure formations. The supervisor of mineral wells or

authorized representative of the supervisor of mineral wells may grant an exception upon

receipt of an application for a permit that is accompanied by a written request and

supportive data