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

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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:

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(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

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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.

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(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.

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(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.

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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.

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(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:

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(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.

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(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

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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:

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(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.

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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

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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.

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(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.

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(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

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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.

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(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.

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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

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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

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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.

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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.

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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.

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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.

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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.

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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,

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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.

History: 2004 AACS.

R 299.2357 Drilling mud pits.

Rule 2357. (1) The supervisor of mineral wells shall prohibit the use of a drilling mud

pit if it is determined that the mud pit causes waste.

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(2) Drill cuttings, muds, and fluids shall be confined by a pit, tank, or container

which is of proper size and construction and which is located as approved by the

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

wells.

(3) Only tanks shall be utilized while drilling a well that is located in an area zoned

residential before the effective date of these rules. The supervisor of mineral wells

may grant an exception if the applicant or permittee makes a request for an

exception as part of the written application for a permit. The supervisor of mineral

wells may grant an exception if an applicant or permittee satisfactorily demonstrates

that a municipal water system is utilized or required to be utilized.

(4) Drilling mud pits shall be located and plotted as instructed by the supervisor of

mineral wells. Before construction of the mud pit, a permittee shall demonstrate to

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

mineral wells that there is

not less than 4 feet of vertical isolation between the bottom of the pit and the uppermost

groundwater level. The bottom of the liner shall not be installed within the observed

groundwater level as determined while excavating the pit. If groundwater is

encountered during or before construction of the pit, then the permittee shall select 1 of

the following options and obtain the approval for the option from the supervisor of

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

(a) The pit shall be designed and constructed so the bottom of the pit is not less than

4 feet above the groundwater level.

(b) The pit shall be designed and constructed so the bottom of the pit is above the

groundwater level, but less than 4 feet above the groundwater level. During

encapsulation the pit contents shall be solidified using a method approved by the

supervisor of mineral wells, except as provided in subrule (9) of this rule.

(c) The pit shall be relocated at the well site as approved by the supervisor of

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

(d) Tanks shall be used, and drilling muds disposed of, at an approved off-site

location.

(5) Drilling mud pits shall be constructed as instructed by the supervisor of

mineral wells and shall comply with both of the following minimum

requirements:

(a) Pits shall be constructed with rounded corners and side slopes of not less than 20

degrees measured from the vertical.

(b) The bottom and sides of the pit shall be free of objects that could penetrate the

liner.

(6) Drilling mud pits shall be lined as instructed by the supervisor of mineral wells

and shall comply with all of the following minimum requirements:

(a) Pits shall be lined with 20-mil virgin polyvinyl chloride liners as approved by

the supervisor of mineral wells or with other liners that meet or exceed the 20-mil virgin

polyvinyl chloride liner requirement.

(b) Ample liner material shall be installed in a manner to allow for sags and

material loading to reduce stress on the liner and allow for a minimum 11-foot flat

apron on all sides, including enough liner material to underlay the drilling mud tank, salt

washer, and shale shaker.

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(c) The bottom of the lined pit shall be weighted with earthen material or water before

anchoring the ends of the liner on the surface or placing drilling muds in the pit.

(d) Ripping, tearing, puncturing, or other destruction of a liner that may cause loss of

fluids is prohibited.

(e) Liner field seams are prohibited, except for liner field seams that result from

failures in the liner due to abrasion or accidental perforation, which shall be

immediately repaired in the field using the manufacturer's recommended procedures.

(7) Drilling mud pits shall be utilized as instructed by the supervisor of mineral wells

and shall comply with all of the following minimum requirements:

(a) Solid salt cuttings shall not be released to in-ground drilling mud pits. Solid

salt cuttings obtained while drilling shall be collected in a container at the shale shaker

and either diverted to a device that

will result in the dissolving of the solid salt cuttings and the proper disposal of the

resultant brine under R 299.2425 or removed from the drilling site to a licensed disposal

facility.

(b) Only the following may be placed in a lined pit:

(i) Water-based drilling muds generated or utilized while drilling with a fresh water

drilling fluid.

(ii) Drilling fluids generated or utilized while drilling with a fresh water drilling

fluid.

(iii) Cuttings obtained while drilling with a fresh water drilling fluid.

(iv) Cuttings and the solid fraction of drilling muds generated or used while

drilling with other than a fresh water drilling fluid, other than drill cuttings prohibited by

subdivision (a) of this subrule, if the cuttings and the solid fraction of drilling muds

do not contain free liquids as determined by the United States Environmental Protection

Agency, Paint Filter Liquids Test, Method 9095, September 1986 Edition, which is

adopted by reference in these rules. Copies are available for inspection at the Lansing

Office of the Geological and Land Management Division of the Department of

Environmental Quality. Copies may be obtained without charge as of the time of

adoption of these rules from the Michigan Department of Environmental Quality,

Geological and Land Management

Division, P.O. Box 30256, Lansing, Michigan 48909, or from the United States

Environmental Protection Agency, Office of Research and Development, 26

West Martin Luther King Boulevard, Cincinnati, Ohio 45268. A permittee shall

provide the necessary equipment at the site of the drilling rig to perform the paint filter

liquids test.

(v) Water-based drilling muds and entrained cuttings, other than drill cuttings

prohibited by subdivision (a) of this subrule, which are generated or utilized while

drilling with other than a fresh water drilling fluid, which contain weighting

materials or lost circulation materials, and which cannot reasonably be treated to

eliminate free liquids as determined by the paint filter liquids test identified in paragraph

(iv) of this subdivision, if approved by the supervisor of mineral wells or authorized

representative of the supervisor of mineral wells.

(vi) Native soils.

(vii) Cementing materials.

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(viii) Stiffening or solidification materials approved by the supervisor of mineral

wells.

(c) Machine oil, refuse, completion and test fluids, liquid hydrocarbons, or other

materials may not be placed in a pit.

(8) If a drilling mud pit is not closed immediately after reaching drilling

completion, then a permittee of a well shall fence the perimeter of the drilling mud pit

as soon as practical after drilling completion, but not later than 30 days after drilling

completion, to prevent public access.

(9) A permittee of a well shall close a drilling mud pit as instructed by the supervisor

of mineral wells and be in compliance with all of the following minimum

requirements:

(a) All free liquids above the solids in the pit shall be removed to the maximum

extent practical and disposed of in an approved disposal well or used in a manner

approved by the supervisor of mineral wells.

(b) A permittee of a well shall, before encapsulation, test the fluids and cuttings

remaining in the pit to determine the concentrations of chloride and total petroleum

hydrocarbons and provide certification to the supervisor of mineral wells or authorized

representative of the supervisor of mineral wells of the test results, except that a

permittee is not required to test the fluids and cuttings remaining in the pit for

chloride and total petroleum hydrocarbons if the well was drilled with water from a

source approved by the supervisor of mineral wells and if, during the drilling

operation, liquid hydrocarbons were not encountered. If the testing reveals

chloride concentrations in excess of 500 PPM or total

petroleum hydrocarbon concentrations in excess of 11,000 PPM, then the pit

contents shall be excavated and disposed of in a licensed disposal facility. The

excavation shall be filled with clean fill material, graded to original ground grade level

and seeded.

(c) A drilling mud pit which is encapsulated shall comply with all the following

requirements:

(i) The pit shall be encapsulated and buried as soon as practical after drilling

completion, but not more than 6 months after drilling completion.

(ii) The contents shall be stiffened before encapsulation, except as provided in

subrule (4)(b) of this rule. Earthen materials shall be mixed with the pit contents to

stiffen the pit contents sufficiently to provide physical stability and support for

the pit cover. An alternative pit stiffening process approved by the supervisor of

mineral wells may be used at the option of a permittee or if required by the

supervisor of mineral wells.

(iii) Apron edges of the liner shall be folded over the pit proper.

(iv) The drilling mud pit shall be totally covered with a separate piece of material that

meets or exceeds the specifications of a 20-mil virgin polyvinyl chloride cover as

approved by the supervisor of mineral wells. The cover shall extend beyond the outer

edges of the pit to cover and entirely encapsulate the pit and shall be sloped to

provide surface drainage away from the pit.

(11) The drilling mud pit shall be buried not less than 4 feet below the original

ground grade level.

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(11) A test well that does not penetrate below the deepest fresh water aquifer

shall comply with both of the following requirements:

(a) Subrule 7(c) of this rule.

(b) Within 6 months following drilling completion, the drilling mud pit for a test well

that does not penetrate below the deepest fresh water aquifer shall be filled with

clean fill material or native materials and graded to original ground grade level.

(12) A test well that does not penetrate below the deepest fresh water aquifer is

exempt from all other provisions of this rule except subrule (11).

History: 2004 AACS.

R 299.2358 Mud gas separator; burning of gas generated by mud gas

separator; incinerator or flare installation; hydrogen sulfide concentration

determination.

Rule 2358.(1) All of the following provisions apply to rotary drilling operations :

(a) If a gas kick occurs, all returning drilling fluid shall be circulated through a

mud gas separator.

(b) All gas separated from the drilling fluid by the mud gas separator shall be routed

to a properly engineered incinerator or flare that has an elevated discharge to the

atmosphere and shall be burned unless the supervisor of mineral wells has

approved an alternative method for handling the gas.

(c) If gas is routed to the incinerator or flare from the mud gas separator, then the

hydrogen sulfide content of the gas shall be determined by a permittee or the

permittee's representative. The determination shall be made using colorimetric or

length of stain tubes or other equipment designed to measure hydrogen sulfide

concentrations and shall utilize a procedure approved by the supervisor of mineral

wells or authorized representative of the supervisor of mineral wells. The results of

the determination shall be entered into the driller's log.

(2) Both of the following provisions apply to cable tool drilling:

(a) All gas separated from other fluids shall be routed to a properly engineered

flare or incinerator that has an elevated discharge to the atmosphere and shall be

burned.

(b) If gas is routed to the incinerator or flare, then the hydrogen sulfide content of

the gas shall be determined by a permittee or the permittee's representative. The

determination shall be made using colorimetric or length of stain tubes or other

equipment designed to measure hydrogen sulfide concentrations and shall utilize a

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

the supervisor of mineral wells. The results of the determination shall be entered into

the driller's log.

History: 2004 AACS.

R 299.2359 Surface casing.

Rule 2359.(1) Surface casing shall be set a minimum of 100 feet below the base of the

glacial drift into competent bedrock and 100 feet below all fresh water strata.

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(2) Surface casing shall be cemented as provided by R 299.2362 and shall be

circulated to the surface. If the cement falls back or fails to circulate to the surface, then

the open annulus space shall be sealed with cement or other equivalent materials

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

supervisor of mineral wells before resuming drilling.

(3) Hole size for surface casing shall be as specified in R 299.2361(4).

(4) A test well that does not penetrate below the deepest fresh water stratum is

exempt from this rule.

History: 2004 AACS.

Editor's Note: An obvious error in R 299.2359 was corrected at the request of the promulgating agency,

pursuant to Section 56 of 1969 PA 306, as amended by 2000 PA 262, MCL 24.256. The rule containing

the error was published in Annual Administrative Code Supplement, 2004. The memorandum requesting

the correction was published in Michigan Register, 2015 MR 22.

R 299.2360 Wells drilled with cable tools.

Rule 2360. Wells drilled with cable tools shall have the innermost string of casing

equipped with a high-pressure master gate valve, flow line assembly, control head

with oil saver, bottle with hydraulic lubricator, or other combination of equipment

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

supervisor of mineral wells. All of the equipment shall be anchored to the surface

casing or another casing string before drilling into or through a stratum known to

contain

or likely to contain oil or gas. The wellhead equipment and casing to be installed to

keep a well under control shall be pressure-tested commensurate to formation

pressures, shall be in good working order when installed, shall be maintained in good

working order throughout its use on the well, and shall be capable of being equipped

with a bottle or lubricator, or both, when this method of control is necessary. The

annulus shall be sealed with a bradenhead or other approved equipment that has a

connection and valve for monitoring. A test well that does not penetrate below the

deepest fresh water aquifer is exempt from this rule.

History: 2004 AACS.

R 299.2361 Casing other than surface casing.

Rule 2361.(1) A person who drills a well or causes a well to be drilled under R

299.2311 or rules that were in effect before the effective date of these rules shall case

the well in a manner approved by the supervisor of mineral wells to prevent waste.

(2) In addition to the surface casing, the supervisor of mineral wells may require or

order a string of casing to be run to seal off any of the following:

(a) A potentially productive oil or gas zone, or both.

(b) A lost circulation zone.

(c) A utilized natural brine or mineral zone.

(d) A storage field.

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(e) A high-pressure zone.

(f) A reservoir undergoing secondary recovery.

(g) A disposal or injection zone and the confining layer above the disposal or

injection zone.

(3) All casing, except for casing set under R 299.2364, shall be of sufficient

weight, grade, and condition to have a designed minimum internal yield of 1.2 times

the greatest expected well bore pressure to be encountered.

(4) For the purpose of proper sealing of wells and the prevention of waste, the

minimum hole size for a given casing shall be as shown in Table 2361:

TABLE 2361

MINIMUM HOLE SIZE CASING SIZE MINIMUM HOLE

SIZE OUTSIDE DIAMETER (O.D.) OUTSIDE INCHES DIAMETER - INCHES

UP TO 7 O.D. CASING O.D. + 1 1/2 MORE THAN 7 O.D. CASING O.D. + 2

MORE THAN 11 3/4 O.D. CASING O.D. + 3

An exception to the minimum hole size as shown in Table 2361 may be granted by the

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

wells, upon a written request by the permittee or applicant, if it is determined that the

proposal provides proper sealing of the well. The supervisor of mineral wells or

authorized representative of the supervisor of mineral wells may require a larger hole

size for the surface hole than the size shown in Table 2361 in order to prevent waste.

History: 2004 AACS.

R 299.2362 Cementing.

Rule 2362. Well casing shall be cemented by the pump and plug method or by a

method approved by the supervisor of mineral wells and allowed to set undisturbed

at static balance with the casing in tension, with surface pressure released, and

with no backflow until the tail-in slurry reaches 500 psi compressive strength, but

for not less than 12 hours; however, if backflow occurs, then the surface pressure

shall not be released. The cement mixture shall be of a composition and volume

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

supervisor of mineral wells. The casing shall be pressure-tested before the cement plugs

are drilled or the casing perforated. The pressure at the top of the cement shall be equal

to the expected operating pressure of the well; however, the test pressure shall not

exceed the API specification for hydrostatic test pressure for new casing, API

specification 5CT, specification for casing and tubing, April 1995, Fifth Edition,

which is adopted by reference in these rules. Copies are available for inspection at the

Lansing Office of the Geological and Land Management Division of the Department

of Environmental Quality. Copies may be obtained from the Michigan Department

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

Lansing, Michigan 48909, at a cost as of the time of adoption of these rules of $42.00

each, and from the American Petroleum Institute, 1220 L Street NW, Washington, DC

20050, at a cost as of the time of adoption of these rules of $42.00 each.

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History: 2004 AACS.

R 299.2363 Stripping of casing.

Rule 2363. (1) A permittee of a well shall not pull or strip a string of casing from a

well, except under the following circumstances:

(a) Provision is made for the removal of casing in the casing and sealing program

specified in the application for a permit to drill and operate.

(b) Casing is pulled and reset in the same stratum to obtain a satisfactory casing

seat.

(c) A well is being plugged back or is being plugged to the surface under the

change of well status provided in R 299.2384 or the plugging instructions in R

299.2433.

(2) A permittee of a well shall seal the annular space left open and the stratum

exposed by the approved pulling and stripping of casing in a manner approved by

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

mineral wells.

History: 2004 AACS.

R 299.2364 Casing liners.

Rule 2364. A permittee shall cement a casing liner and shall ensure the cement is

circulated above the top of the liner or to a point approved by the supervisor of mineral

wells.

History: 2004 AACS.

R 299.2365 Requests for exceptions to R 299.2356 to R 299.2364.

Rule 2365. The supervisor of mineral wells may grant exceptions to R 299.2356 to

R 299.2364, if the rules are not necessary to prevent waste or provide for the protection

or safety of the public or workers. A request for an exception shall be submitted in

writing to the supervisor of mineral wells.

History: 2004 AACS.

R 299.2366 Elevations; well depth measurements.

Rule 2366. (1) Drilling reference elevations of the ground surface, kelly bushing, or

rig floor shall be measured, recorded, and filed as required in R 299.2369.

(2) The depth of the top of key geologic strata shall be accurately determined and

shall be entered in the drilling log book and become a part of the record and log of the

well.

History: 2004 AACS.

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R 299.2367 Well records; service company records; confidentiality.

Rule 2367. (1) A person who drills, deepens, changes well status, or completes a

well as required by these rules, shall keep and preserve at the well, during drilling,

deepening, changes in well status, or completion operations, all of the following:

(a) Accurate records recording all geologic strata penetrated.

(b) Casing and cement used.

(c) Other information as may be required by the supervisor of mineral wells in

connection with the drilling of the well.

(2) If requested by the supervisor of

mineral

wells

or authorized

representative of the supervisor of mineral wells, a permittee of a well shall file a

copy of service company records, including records of all of the following services that

have been performed:

(a) Mudding, cementing, and squeeze operations.

(b) Acidizing.

(c) Perforating.

(d) Fracturing.

(e) Shooting.

(f) Temperature surveys.

(g) Bond logs.

(h) Caliper surveys.

(i) Wireline borehole and strata evaluation logs.The supervisor of mineral wells may

request the records directly from the service company.

(3) A permittee of a well shall make all records and information available to the

supervisor of mineral wells or authorized representative of the supervisor of

mineral wells at all times. A permittee shall protect the records from damage or

destruction due to a preventable cause. Records shall be kept confidential as follows:

(a) A log of a brine or test well shall be kept confidential for 11 years after well

completion, except as otherwise released by the owner.

(b) A log of a brine or test well drilled for exploratory purposes shall be kept

confidential until released by the owner or operator or until the owner is no longer an

active producer, mineral lease holder, or owner of mineral lands in the state.

(c) If a brine or test well is converted to a new use allowed under this part, or under

another part of the act, or under another act, a log of the well shall no longer be held

confidential and shall be open for public inspection. All the information pertaining

to the application for and issuance of a permit for the well shall no longer be

held confidential and shall be open for public inspection.

History: 2004 AACS.

R 299.2368 Samples of drill cuttings and cores.

Rule 2368.(1) A person who drills or deepens a well under these rules shall take

and preserve, for the duration of the drilling, properly identified samples of the drill

cuttings taken from the base of the drift to the total depth.

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(2) A permittee of a well shall take and preserve drift samples when specifically

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

supervisor of mineral wells. The samples shall be available to the supervisor of

mineral wells upon request.

(3) A permittee of a well shall deliver 1 complete set of drill cutting samples,

washed and dried, to the supervisor of mineral wells within 90 days after drilling

completion. Samples not requested may be disposed of in a manner approved by the

supervisor of mineral wells upon drilling completion if the supervisor of mineral wells

requests cuttings before the commencement of drilling.

(4) If a permittee of a well obtains whole cores or core samples during the drilling of

a well, then the permittee shall provide the supervisor of mineral wells with a

minimum of 90 days' notification of his or her intention to dispose of or destroy the

whole cores or core samples. If requested by the supervisor of mineral wells, as

prescribed by the notification, the permittee shall make available to the supervisor

of mineral wells the whole cores or core samples.

History: 2004 AACS.

R 299.2369 Filing of well records.

Rule 2369. (1) A permittee of a well who drills or deepens a well shall file all of the

following records with the supervisor of mineral wells, except as provided in subrule

(2) of this rule:

(a) Within 60 days after drilling completion, a

complete

written geologic

description log or record of the well, certified by a geologist and signed by the permittee

or an authorized representative of the permittee, on forms prescribed by the supervisor

of mineral wells, including all of the following information:

(i) Elevations as required by R 299.2366.

(ii) Depth to, and thickness of, water-bearing sands and gravels in the glacial drift

as determined by a geologist, including fill-up and volumes of the water, if available.

(iii) The measured and true vertical depth to geologic strata penetrated, and

accurate and complete lithologic descriptions, including color, hardness, and the

character of the rock as determined by a geologist from the cuttings or cores.

(iv) A record of all shows of oil or gas, or both, encountered.

(v) A record of all lost circulation zones encountered.

(vi) A record of all hole sizes, casings, and liners used, including the size, weight,

grade, amount, and depth set for each casing string.

(vii) The amount of cement used and the calculated elevation of the

top of the

cement, unless the supervisor of mineral wells or authorized representative

of the supervisor of mineral wells requests the elevation to be measured.

(viii) Data on all drill stem tests.

(ix) The measurement of hydrogen sulfide content of gas encountered during a kick.

(x) All intervals cored.

(b) Within 60 days after well completion operations,

acidizing, fracturing, shooting, and testing.

data

on all perforating,

(c) Within 60 days of plugging the well, all of the following information:

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(i) Data on all bridge plugs set, make and type of plug, depth set, whether left in

place or removed, and details of plug-back operations below the bridge plug.

(ii) The amount of casing stripped from the well.

(2) If a test well is drilled in an area of the state where rocks of precambrian age

directly underlie unconsolidated surface deposits, or in those areas that have been

designated by the provisions of section 62508(c) of the act, an owner shall file the

information required in subrule

(1) of this rule within 2 years after drilling completion.

History: 2004 AACS.

R 299.2370 Borehole and strata evaluation logging.

Rule 2370. (1) A permittee of a well shall file a copy of all borehole and geologic

strata evaluation logs or other logs with the supervisor of mineral wells within 60 days

after conducting the logging run, except as provided in subrule (2) of this rule.

(2) If a test well is drilled in an area of the state where rocks of precambrian age

directly underlie unconsolidated surface deposits or in those areas that have been

designated by the provisions of section 62508(c) of the act, then an owner shall file the

information required in subrule (1) of this rule within 2 years after drilling completion.

(3) Upon the request of the supervisor of mineral wells or authorized representative of

the supervisor of mineral wells, a logging service company shall provide a listing of

all borehole and geologic strata evaluation logs or other logs run.

History: 2004 AACS.

R 299.2371 Survey of directionally drilled well.

Rule 2371. (1) A permittee of a well shall conduct a directional well survey on each

directionally drilled well, with actual survey points taken at suitable intervals from

the point of deviation to total depth to enable the course and the end point of the

borehole to be determined, or at intervals as approved by the supervisor of mineral

wells or authorized representative of the supervisor of mineral wells. All information

obtained during and after the survey shall be available to the supervisor of mineral

wells or authorized representative of the supervisor of mineral wells. A permittee

shall file a certified copy of the survey with the supervisor of mineral wells within

30 days after drilling completion, except as provided in subrule (2) of this rule. A well

shall not be utilized for the purpose for which it was permitted until the survey has been

filed with the supervisor of mineral wells.

(2) If a test well is drilled in an area of the state where rocks of precambrian age

directly underlie unconsolidated surface deposits or in those areas that have been

designated by the provisions of section 62508(c) of the act, an owner shall file the

information required in subrule (1) of this rule within 2 years after drilling completion.

History: 2004 AACS.

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R 299.2372 Sealing of cellars and rat and mouse holes.

Rule 2372. (1) A permittee of a well shall seal and set into the earth rat and mouse

hole casings and cellars in a manner to prevent the migration of the drilling fluid and

other foreign fluids into the groundwater. A test well that does not penetrate below the

deepest fresh water aquifer is exempt from this subrule.

(2) Immediately after drilling completion, a permittee of a well shall fill rat and

mouse holes on all rotary-drilled wells solidly from bottom to top with cement or other

suitable material approved by the supervisor of mineral wells.

History: 2004 AACS.

PART 5. COMPLETION

R 299.2381 Responsibility for well operations.

Rule 2381. A permittee of a well is responsible for the operations of the well.

History: 2004 AACS.

R 299.2382 Well completion operations.

Rule 2382.(1) A permittee of a well shall use proper well control measures to avoid an

uncontrolled flowing of the well. All fluids shall be produced or swabbed back to

approved containers. A permittee of a well shall not use unlined earthen pits or

reservoirs to contain fluids produced from the well during completion except as

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

supervisor of mineral wells.

(2) A permittee shall notify the supervisor of mineral wells

or authorized

representative of the supervisor of mineral wells at least 48 hours before the start of a

well completion operation.

History: 2004 AACS.

R 299.2383 Multiple zone completions.

Rule 2383. The supervisor of mineral wells or authorized

representative of the

supervisor of mineral wells may authorize multiple zone completions upon written

application demonstrating the need for and technical feasibility of multiple zone

completion.

History: 2004 AACS.

R 299.2384 Change of well status.

Rule 2384. (1) A permittee of a well seeking to change the status of a well shall

accurately make an application for change of well status with the supervisor of

mineral wells. The application shall describe the kind of operation to be

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accomplished and the plan for protecting all utilized storage zones, disposal zones,

and brine and hydrocarbon production zones, and shall include all information required

in R 299.2312, R 299.2313, and R 299.2314, as applicable. A permittee shall not begin

the operation until he or she has received approval from the supervisor of mineral

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

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

supervisor of mineral wells of the date the operation will commence.

(2) A permittee of a well who desires to deepen a well below the permitted depth after

drilling completion has occurred shall file an application to change well status as

required in subrule (1) of this rule. To obtain approval to deepen, 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 circumstances for

the request to deepen. The supervisor of mineral wells or authorized representative of

the supervisor of mineral wells may give verbal approval to deepen. If approval to

deepen is granted, then the permittee shall file the application for change of well

status under subrule (1) of this rule, within 5 business days of approval, 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) A permittee of a well who changes the status of a well shall file, with the

supervisor of mineral wells, within 60 days, a complete change of well status record on

forms prescribed by the supervisor of mineral wells, except that a record shall not be

filed when the change of well status operation is for temporary abandonment

purposes.

History: 2004 AACS.

R 299.2385 Mineral wells encountering hydrocarbons.

Rule 2385. If a well produces hydrocarbons following completion, the supervisor of

mineral wells may require 1 of the following:

(a) A demonstration that the hydrocarbons have no commercial value.

(b) Plugging and abandonment of the well.

(c) Application for a permit to operate the well under part 615 of the act.

History: 2004 AACS.

PART 6. MECHANICAL INTEGRITY TESTING

R 299.2391 Testing before operation of wells.

Rule 2391. (1) Before injecting fluid into a well newly drilled for disposal,

storage, natural or artificial brine production, or into a previously existing well

newly converted for storage, disposal, or artificial brine production, a permittee shall

provide for a demonstration of internal mechanical integrity of the wellhead, casing,

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tubing, and annular seal assembly if present, utilizing either a pressure test at a surface

pressure of not less than 100 psig above the maximum expected operating surface

pressure of the well or an equivalent test approved by the supervisor of mineral wells.

The test shall be conducted by a qualified person. A satisfactory pressure test shall

meet the following requirements:

(a) For a storage or disposal well, the test shall show a change of pressure of not

more than 3% over a period of 60 minutes.

(b) For an artificial or natural brine production well, the test shall show a loss of

pressure of not more than 5% over a period of 30 minutes.

(2) Before injecting fluid into a well newly drilled for

disposal, storage, or

artificial brine production or a previously existing well newly converted for storage,

disposal, or artificial brine production, a permittee of a well shall provide for a test of

the

external

mechanical integrity of the innermost casing string and the cement

sheath and its external seal by a method approved by the supervisor of mineral

wells. The test shall be conducted by a qualified person. If a pressure test is used to

demonstrate mechanical integrity, the test shall show a change of pressure of not more

than 5% over a period of 30 minutes.

History: 2004 AACS; 2008 AACS.

R 299.2392 Testing before operation of a storage cavity.

Rule 2392. Before placing stored product into a newly developed storage cavity

or an existing cavity converted to storage, a permittee shall provide for a demonstration

of the mechanical integrity of the cavity by a method approved by the supervisor of

mineral wells.

History: 2004 AACS.

R 299.2393 Periodic mechanical integrity testing.

Rule 2393. (1) A permittee shall provide for periodic tests by a qualified person

to demonstrate internal and external mechanical integrity according to the following

schedule unless a well has been granted temporary abandoned status under R

299.2437(3):

MAXIMUM TESTING INTERVAL Well Type Internal Mechanical Integrity External

Mechanical Integrity Hazardous Waste Disposal

12 months 12

months

Nonhazardous Waste Disposal 12 months 60 months Processed Brine 60 months 60

months Artificial Brine 60 months 60 months Natural Brine When tubing is pulled.

Not Applicable Nonhydrocarbon Storage 12 months 12 months Test (Observation)

As required by supervisor of mineral wells, R 299.2346 Not Applicable

(2) Internal mechanical integrity shall be demonstrated by a permittee as follows:

(a) For a disposal well, by a pressure test of the annulus between the injection tubing

and innermost casing string.

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(b) For an artificial brine or storage well, by a water-brine, oil-brine, or inert-gas-brine

interface test.

(c) For a natural brine production or test well used as an observation well, by a

pressure test of the innermost casing string unless mechanical integrity has been

demonstrated within the last year.

(3) External mechanical integrity of a disposal well, artificial brine production well, or

storage well shall be demonstrated by a permittee using a downhole log approved by

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

mineral wells, intended to test for movement of fluid along the outside of the

innermost casing string.

(4) A satisfactory pressure test shall meet the requirements in R 299.2391(1).

(5) A permittee shall provide a recording device to make record of the pressures

measured during a mechanical integrity test.

History: 2004 AACS.

R 299.2394 Notice of mechanical integrity testing.

Rule 2394. At least 30 days before a regularly scheduled test required by R 299.2391, R

299.2392, or R 299.2393, a permittee shall notify the supervisor of mineral wells or

authorized representative of the supervisor of mineral wells of the date and approximate

time of the test. The notification shall include a copy of the proposed test procedure

including procedures for wireline logging. Mechanical integrity testing shall not be

conducted until a permittee has received approval of the test procedure from the

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

wells. Mechanical integrity testing may be witnessed by the supervisor of mineral

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

History: 2004 AACS.

R 299.2395 Calibration of pressure gauges.

Rule 2395. A permittee shall calibrate all pressure gauges used in mechanical

integrity demonstrations according to the manufacturer's recommendations. A copy of

the calibration certificate shall be submitted to the supervisor of mineral wells at the time

of demonstration and every time the gauge is calibrated. A pressure gauge shall have a

resolution so as to allow detection of at least 1/2 of the maximum allowable pressure

change.

History: 2004 AACS.

R 299.2396 Mechanical integrity testing required by supervisor of mineral

wells.

Rule 2396. The supervisor of mineral wells or authorized

representative of the

supervisor of mineral wells may require a demonstration of mechanical integrity

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following a change of well status or if there is reason to believe a well does not have

mechanical integrity.

History: 2004 AACS.

R 299.2397 Reports of mechanical integrity.

Rule 2397. A permittee shall file a signed copy of the report of a mechanical

integrity test with the supervisor of mineral wells within 60 days after testing. A copy of

the pressure record shall accompany the report. The report shall include evaluation of

the test results by a person qualified to provide such an evaluation. Reports of

mechanical integrity demonstrations utilizing downhole logs shall be accompanied

by an interpretation of the log by a person qualified to make such interpretations.

History: 2004 AACS.

R 299.2398 Alternative testing method.

Rule 2398. The supervisor of mineral wells may approve a test other than those

required in R 299.2391, R 299.2392, or R 299.2393 to demonstrate internal or

external mechanical integrity or to test for movement of fluid along the borehole,

provided the request is made in writing and includes information or data to

demonstrate that the proposed method is able to demonstrate mechanical integrity

at least as well as the methods required in R 299.2391,R 299.2392, or R 299.2393.

History: 2004 AACS.

R 299.2399 Failure to demonstrate mechanical integrity.

Rule 2399. (1) A well shall maintain mechanical integrity. If the permittee or the

supervisor of mineral wells or authorized representative of the supervisor of

mineral wells finds that the well

fails to demonstrate mechanical integrity during a test or fails to maintain

mechanical integrity during operation, or that a loss of mechanical integrity is suspected

during operation, the permittee shall halt injection immediately unless the

supervisor of mineral wells allows continued operation, provided operation can

continue without causing waste. Report of the loss of mechanical integrity

shall be made verbally to the supervisor of mineral wells or authorized

representative of the supervisor of mineral wells within 24 hours from the time the

permittee becomes aware of the loss, and shall include an anticipated date for a

mechanical integrity demonstration.

(2) If injection has ceased as provided by subrule (1) of this rule, then a permittee shall

not resume injection until the well demonstrates mechanical integrity. A plan to restore

mechanical integrity shall be submitted to, and approved by, the supervisor of mineral

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

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

witness the mechanical integrity demonstration. If the plan requires a change of well

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status, then a permittee shall file an application to change well status as required by R

299.2385.

History: 2004 AACS.

PART 7. OPERATION OF BRINE PRODUCTION AND SOLUTION MINING

WELLS

R 299.2401 Production tests for newly completed or change of status wells

producing natural brine.

Rule 2401. A permittee of a well shall conduct production tests on a newly

completed well intended to produce natural brine or on a previously tested well when a

change of well status may have resulted in changes in producing capacity. A

permittee shall report the results of all production tests to the supervisor of mineral

wells or authorized representative of the supervisor of mineral wells within 30 days

after completion of the

tests. The permittee shall certify the results on forms prescribed by the supervisor of

mineral wells.

History: 2004 AACS.

R 299.2402 Special capacity tests of wells producing natural brine.

Rule 2402. The supervisor of mineral wells or authorized

supervisor of mineral wells may, upon written notice, require the permittee of a well

used for natural brine production to perform special producing capacity test or

representative of the

a

supply brine production data for a well or wells. The supervisor of mineral wells or

authorized representative of the supervisor of mineral wells may witness, or make

measurements during the test, subject to proper safety supervision by the permittee.

History: 2004 AACS.

R 299.2403 Reports of natural brine produced.

Rule 2403. A person who is producing natural brine shall be required by the

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

wells to report annually, within 60 days after the end of the calendar year of

production, the amount of natural brine produced during the calendar year of

production, unless an extension of time is granted by the supervisor of mineral wells.

The reports shall be signed by the person who is producing brine on forms

prescribed by, or acceptable to, the supervisor of mineral wells or authorized

representative of the supervisor of mineral wells.

History: 2004 AACS.

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R 299.2404 Solution mining; reporting.

Rule 2404. (1) A permittee shall control cavity shape during solution mining of

bedded salt.

(2) A permittee who is solution mining shall report annually, within 60 days after the

end of the calendar year, the amount of soluble mineral or rock removed and the

volumes of fluids injected into and removed from each cavity. The report shall be

certified by the permittee on forms prescribed by, or acceptable to, the supervisor of

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

History: 2004 AACS.

R 299.2405 Rock profile determination.

Rule 2405. A permittee shall determine the cavity roof

position

not less than

biennially. Generally accepted wireline logging methods shall be utilized. The

results of the determination shall be filed with the supervisor of mineral wells not

more than 60 days after completion and shall include all wireline logs run.

History: 2004 AACS.

R 299.2406 Cavity size.

Rule 2406. A permittee shall submit a plan to monitor cavity size and shape for

approval by the supervisor of mineral wells. The plan shall include frequency of

monitoring and shall include a description of the method used to determine the size and

shape of the cavity. The plan for an existing cavity shall be submitted within 6 months of

the effective date of these rules.

History: 2004 AACS.

R 299.2407 Subsidence monitoring above a cavity created by solution mining.

Rule 2407. A permittee shall submit a plan for subsidence monitoring above a cavity

for approval by the supervisor of mineral wells. The plan shall include frequency

of monitoring and shall include a description of the method used to monitor subsidence.

The plan for an existing cavity shall be submitted within 6 months of the effective

date of these rules.

History: 2004 AACS.

R 299.2408 Abandonment of cavity created by solution mining.

Rule 2408. Before abandoning a cavity used for storage, a permittee shall remove

stored product to the extent practicable and replace it with brine or fresh water subject

to the approval of the supervisor of mineral wells.

History: 2004 AACS.

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PART 8. OPERATION OF DISPOSAL OR STORAGE WELLS

R 299.2411 Temporary authority to inject.

Rule 2411. The supervisor of mineral wells may grant a permittee of a disposal well

temporary authorization to inject fresh water or brine for a period of not more than 30

days for the limited purpose of running injectivity tests.

History: 2004 AACS.

R 299.2412 Testing before operation of disposal or storage wells.

Rule 2412. (1) Tests of the disposal zones and confining formations,

downhole logs, and direct measurements shall be conducted to determine to the

satisfaction of the supervisor of mineral wells that the well and disposal formations

are suitable for disposal or storage and the confining zone is adequate to confine

disposed or stored fluids. The tests shall include all of the following:

(a) Physical, chemical, and lithologic properties, and fluids.

(b) Porosity and permeability.

(c) Compatibility of waste or stored fluids with naturally occurring formation

fluids and formation materials, along with

a

characterization of the potential for

multiple waste products to react in the well bore or in the injection zone.

(d) Disposal zone, temperature, and pressure.

(e) Disposal zone fracture pressure.

(2) Tests, logs, and direct measurements shall

be

conducted following

procedures acceptable to the supervisor of mineral wells. Results shall be filed with the

supervisor of mineral wells within 60 days of the completion of the test, logging, or

measurement.

History: 2004 AACS.

R 299.2413 Testing before operation of a storage cavity.

Rule 2413. The size, shape, and volume of the cavity shall be determined by sonar

survey or other method acceptable to the supervisor of mineral wells. The results of the

determination, together with records of any downhole measurements, shall be filed

with the supervisor of mineral wells within 60

days after the completion of the determination. The filing shall include an interpretation

of the results by a person qualified to make such interpretations. The permittee

shall certify the results.

History: 2004 AACS.

R 299.2414 Confirmation for use of storage and disposal wells and cavities.

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Rule 2414. (1) If it is determined by examination of evidence required by R 299.2412

that a well may be used for storage or disposal in a manner that will not cause waste,

then the supervisor of mineral wells shall confirm the well for that use and thereafter

regulate the use and operation of the well

as provided by these rules. The supervisor of mineral wells shall not confirm a well

for disposal or storage that does not demonstrate mechanical integrity as provided by R

299.2391.

(2) If it is determined by examination of evidence provided by R 299.2413 that a

cavity may be used for storage in a manner that will not cause waste, then the

supervisor of mineral wells shall confirm the cavity for that use and thereafter regulate

the use and operation of the cavity as provided by these rules. A cavity confirmed

for storage shall be subject to the requirements of R 299.2406 to R 299.2408. The

supervisor of mineral wells shall not confirm a cavity for storage that does not

demonstrate mechanical integrity as provided by R 299.2392.

(3) A well or cavity that is not confirmed for use shall be abandoned and plugged or

converted to another use.

History: 2004 AACS.

R 299.2415

Operation of disposal wells; monitoring and reporting

requirements.

Rule 2415. (1) Injection of a waste product shall not begin until all of the following

are complete:

(a) The well is confirmed for use as provided by R 299.2414.

(b) The warning system required in subrule (8) of this rule is installed and tested or the

monitoring plan required in subrule (8) of this rule is approved by the supervisor of

mineral wells.

(c) A working check valve is installed on the flow line as close as practicable to

the wellhead to prevent backflow.

(2) The permittee shall inject only through tubing with a packer set within the

innermost casing string or strings at a point within or below the confining zone.

During injection operations, the annulus between the injection tubing and innermost

casing shall be filled with a noncorrosive liquid. Any changes in the arrangement

of downhole equipment shall be submitted by the permittee on forms prescribed by

the supervisor of mineral wells for approval by the supervisor of mineral wells

or authorized representative of the supervisor of mineral wells before installation.

(3) During disposal operations a permittee shall ensure that the injection pressure at

the wellhead does not exceed a pressure determined by the following equation:

PM = (FPG - 0.433 SG)D where PM = surface injection pressure.

FPG = fracture pressure gradient.

SG = highest specific gravity of liquid planned for injection.

D = depth to top of disposal zone in feet (true vertical depth).

The permittee shall maintain a positive pressure at the wellhead on the annulus

between the injection tubing and the innermost casing. Injection pressure shall not

initiate fractures or cause existing fractures to propagate into the confining zone or

cause movement of injected or formation fluids through the confining zone.

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(4) If migration of injected fluids through the confining zone is discovered, the

permittee shall immediately cease injection and submit to the supervisor of mineral wells

a remediation plan. A report of the discovery shall be made orally to the supervisor

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

24 hours of the time of discovery. A written report detailing the circumstances of the

discovery shall be filed with the supervisor of mineral wells within 11 business days of

the discovery. The supervisor of mineral wells may require a permittee to demonstrate an

underground source of drinking water is not impacted by the migration of injected

fluid.

(5) The permittee shall at all times ensure that injected

fluids

do not enter an

underground source of drinking water. If the injected fluids have the potential to react

with the rock of the injection formation, then the permittee shall ensure that pressure

imbalances do not occur.

(6) The supervisor of mineral wells may require a permittee to monitor the pressure

buildup in the injection zone. The pressure monitoring shall include a suitable

pressure transient test. From this

observation the permittee shall submit a report to the supervisor of mineral wells

including all of the following information:

(a) All measured data.

(b) A calculation of pressure buildup and static bottom hole pressure in the injection

zone.

(c) Injection zone transmissivity.

(d) Well bore skin factor.

(e) Radius of investigation of the test.

At least 30 days before a test, a permittee shall notify the supervisor of mineral wells or

authorized representative of the supervisor of mineral wells of the date and approximate

time of the test.

(7) If required by the supervisor of mineral wells, the permittee shall maintain

monitoring devices and use them to monitor injection pressure, pressure in the annulus

between the injection tubing and the innermost casing, and injection rate. The

permittee shall monitor the annulus pressure system reservoir volume daily.

(8) The permittee shall do 1 of the following:

(a) Install an automatic warning system to notify the permittee if either of the

following conditions exist:

(i) Pressure changes in the annulus or tubing signifying or identifying possible

deficiencies in mechanical integrity.

(ii) Injection pressure exceeding the pressure limits specified in subrule (3) of this

rule.

(b) Submit for the supervisor of mineral wells approval, a monitoring plan to detect

conditions described in paragraphs (a)(i) and (a)(ii) of this subrule.

(9) The permittee shall test an automatic warning system installed under subrule

(8) of this rule at least every twelfth month. The test must involve subjecting the system

to simulated failure conditions. At least 30 days before a test, a permittee shall notify

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

mineral wells of the date and approximate time of the test.

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(10) The permittee shall install and maintain a suitable coupling and valve on the

wellhead to be used for independent injection pressure measurements.

(11) All injection and withdrawal activities shall be monitored by an individual who

is trained and experienced in such activities. A permittee shall submit a plan for

monitoring injection and withdrawal activities. The wellhead and facility shall be

secured in a manner to prevent unauthorized access to the well if the well is not in use

for an extended period of time.

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

mineral wells may approve a waste product, in addition to those specified in the

application for a permit to drill and operate, to be injected into a well. Requests to

inject an additional waste product shall be in writing and accompanied by the

characterization required in R 299.2312(h).

(13) A permittee shall submit a waste analysis plan for approval by the supervisor of

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

(14) A permittee shall submit monthly reports of the following information no

later than the end of the month following the reporting period:

(a) Maximum and average injection pressure for each day of the month and monthly

averages of the maximum and minimum injection pressures.

(b) Maximum and minimum pressure in the annulus between the injection tubing

and innermost casing for each day of the month and monthly averages of the maximum

and minimum pressure in the annulus between the injection tubing and innermost

casing.

(c) Maximum and average injection rates for each day of the month and monthly

averages of the maximum and minimum injection rates.

(d) The total volume of waste products injected for each day of the month and to date,

in the current calendar year. If surface runoff is injected, the total annual and monthly

volumes for both waste fluids and surface runoff shall be reported individually. If

waste products injected into a multisource commercial hazardous waste disposal

well include waste that is not hazardous, the volumes of both hazardous and

nonhazardous waste shall be reported separately.

(e) The amounts and types of liquid added to or removed from the annulus

pressure system for each day of the month and the cumulative amount of liquid added to

or removed from the annulus pressure system for the current month and each of the

past 12 months.

(f) Any event that exceeds operating pressures as specified in subrule

(3) of this rule and any event that triggers an alarm or shutdown device provided by

subrule (8) of this rule.

(g) A description of any well bore stimulation that does not require an application to

change well status under R 299.2384, including all of the following:

(i) The date of the stimulation.

(ii) The amount of acid used.

(iii) The concentration and type of acid used.

(iv) The maximum pressure generated during the stimulation.

(h) The supervisor of mineral wells may grant an exception to the reporting

requirements of subdivisions (a) to (g) of this subrule if a permittee makes a request

in writing.

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(15) All records pertaining to a disposal well shall be retained by the permittee for a

period of at least 3 years following the plugging and abandonment of the disposal or

storage well and shall be open to inspection at any time by the supervisor of

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

History: 2004 AACS.

R 299.2416 Operation of storage wells and associated surface facilities.

Rule 2416. (1) Before injecting fluid into a storage well, a permittee shall submit a

surface facility plan and receive approval of the supervisor of mineral wells or

authorized representative of the supervisor of mineral wells. The plan shall describe

all the following and shall include schematic diagrams where applicable:

(a) Well emergency shutdown systems.

(b) Cavity overfill prevention devices or methods.

(c) Surface facility and wellhead leak detection systems, including detection of any

vapor cloud that may leave the storage facility property.

(d) Brine pit vapor detection and control systems.

(e) Fire detection and suppression systems.

(f) Employee training and testing programs.

(g) Integration of all leak detectors, fire detectors, and pressure sensors into a

warning system that activates audible and visual alarms in the local control room and

at any remote control center, including fail-safe aspects of all sensors.

(h) Installation of wind direction indicators.

(i) Construction and location of barriers designed to prevent vehicle impact.

(j) Monitoring of the pressures on the injection and withdrawal piping.

(k) Operating specifications of piping from the wellhead to the emergency

shutdown valve.

(l) Procedures and schedules for testing and ensuring functionality of each system or

method listed in subdivisions (a) to (e) of this subrule and

the measures to be taken if the system or any component of the system fails to operate

as required.

(2) A permittee shall submit to the supervisor of mineral wells a written emergency

response plan.

(a) The plan shall address all of the following:

(i) Spills and releases.

(ii) Fires.

(iii) Explosions.

(iv) Loss of electricity.

(v) Loss of telecommunications services.

(b) Where applicable the plan shall describe the following:

(i) The facility's emergency response communication system.

(ii) Procedures for coordination of emergency communication and response activities

with local authorities.

(iii) Use of warning systems.

(iv) Procedures for employee evacuation and employee training.

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(c) The plan shall provide for annual drills to test response to a simulated

emergency.

(d) A permittee shall ensure the plan is updated as changes in safety features at the

facility are made or as the supervisor of mineral wells requires. Copies of the plan

shall be available at the storage facility and the company headquarters.

(3) If an emergency occurs that may endanger nearby residents or property a permittee

shall do all of the following:

(a) As soon as practicable after the discovery of an emergency,

notify the local

emergency preparedness coordinator, the county sheriff's office or local police

department, the supervisor of mineral wells and other appropriate public officials

identified in the emergency response plan.

(b) At the time of notice, report an assessment of the potential threat to the public.

(c) Report to the supervisor of mineral wells as soon as practicable any problem

that increases the potential for an uncontrolled release.

A permittee shall confirm the report in writing within 11 days.

(4) A permittee shall provide written notice of the date of a drill conducted

under an emergency response plan to the supervisor of mineral wells, the local

emergency preparedness coordinator, the county sheriff or local police department

and the local fire department. Local emergency response personnel shall be invited

to participate in all such drills. A permittee shall file a written evaluation of the

drill and plans for improvement with the supervisor of mineral wells and local

emergency preparedness coordinator within 30 days after the date of the drill.

(5) A permittee shall determine the configuration of the roof of a storage cavity by

downhole log or other method approved by the supervisor of mineral wells at intervals

not to exceed 5 years. The results of the determination shall be filed with the

supervisor of mineral wells within 60 days after completion. The filing shall include

an interpretation of the results by a person qualified to make such interpretations.

A permittee shall certify the results.

(6) A permittee shall ensure the quantity of stored product in a cavity does not exceed

the approved maximum storage volume for the cavity.

(7) Any device or sensor which is not operating shall be repaired or replaced

within 11 days of the date it is discovered to be defective.

(8) A permittee shall meter the volumes of stored product injected and withdrawn

from a storage well.

(9) A permittee shall submit monthly reports of the following information not

later than the end of the month following the reporting period:

(a) Maximum and average injection and withdrawal pressures for each

day of the

month or a copy of any continuously recorded chart of the injection and withdrawal

pressures.

(b) Monthly averages of the maximum and minimum injection and withdrawal

pressures.

(c) Maximum and average injection and withdrawal rates for each day of the month.

(d) Monthly averages of the maximum and minimum injection and withdrawal

rates.

(e) The net volumes of stored product and brine injected into and withdrawn for

each day of the month, and to date, in the current calendar year.

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(f) Any event that triggers a system listed in subdivisions (a) to (e) of subrule (1) of

this rule.

(10) A permittee shall insure injection pressure does not exceed the maximum

permitted injection pressure.

(11) All records pertaining to a storage well shall be retained by the permittee for a

period of at least 3 years following the plugging and abandonment of the storage well

and shall be open to inspection at any time by the supervisor of mineral wells or

authorized representative of the supervisor of mineral wells.

History: 2004 AACS.

PART 9. DISPOSITION OF BRINE

R 299.2421 Prevention of pollution, contamination, or damage.

Rule 2421. The permittee shall not store, transport, or dispose of natural, artificial,

or processed brine in a manner that will or is likely to result in pollution. A permittee

of a well shall ensure that natural, artificial, or processed brine is stored, transported,

and disposed of

in a manner approved by the supervisor of mineral wells and consistent with all

applicable state and federal laws and regulations.

History: 2004 AACS.

R 299.2422 Pit disposal or storage prohibited.

Rule 2422. A permittee of a well shall not dispose of or store natural, artificial, or

processed brine in unlined earthen pits.

History: 2004 AACS.

R 299.2423 Disposal of brine.

Rule 2423. (1) A permittee of a well shall dispose of natural, artificial, or

processed brine into an approved underground formation in a manner that prevents

waste or in a manner approved by the supervisor of mineral wells.

(2) A permittee of a well is responsible for the proper

disposal

of all natural,

artificial, or processed brine or brine accumulated in drilling mud pits or tanks and shall

ensure that waste, as defined in sections 62501(m) and (p) of the act, will not occur.

History: 2004 AACS.

R 299.2424 Use of annular space for disposal prohibited.

Rule 2424. A permittee of a well shall not dispose of natural, artificial, or

processed brine in the annular space between strings of casing. The supervisor of

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mineral wells may grant an exception if the supervisor of mineral wells determines

that annular disposal will not result in underground waste.

History: 2004 AACS.

PART 10. PLUGGING

R 299.2431 Plugging; general requirements.

Rule 2431. A permittee of a well shall ensure that all

oil,

gas, brine, waste

products, and fresh water are confined to the strata in which the oil, gas, brine, waste

products and fresh water occur or are injected into by using cement plugs or other

plugs approved by the supervisor of mineral wells. A permittee of a well shall

ensure that the well is plugged under static hole conditions at all times, unless

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

supervisor of mineral wells.

History: 2004 AACS.

R 299.2432 Notification of intention to abandon and plug a well.

Rule 2432. (1) Except as provided in subrule (2) of this rule, a person shall not

begin the plugging of a well until the permittee of

a

well has notified the

supervisor of mineral wells or authorized representative of the supervisor of

mineral wells of his or her intention to abandon the well and has received instructions

for the plugging operation. The notification shall provide all of the information

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

supervisor of mineral wells

required

to issue plugging

instructions. The

notification shall include all of the following information:

(a) The present condition of the well.

(b) Casing and sealing information.

(c) The sizes and lengths of all casing strings.

(d) The depths of the top of all principal formations.

(e) The depths where oil, gas, and water were encountered.

(f) All downhole equipment to be abandoned with the hole.

(g) All known lost circulation zones.

(h) The date of the last production or operation.

(i) The reason for plugging the well.

(j) Documentation of the amount of uncemented casing in the well using downhole

wireline tools or other methods approved by the supervisor of mineral wells.

(k) Any other information required by the supervisor of mineral wells.

(2) A permittee of a well shall notify the supervisor of mineral wells or authorized

representative of the supervisor of mineral wells by telephone or telefax during normal

business hours at least 24 hours before beginning the plugging of the well.

History: 2004 AACS.

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R 299.2433 Plugging instructions.

Rule 2433. (1) Except as provided in subrule (2) of this rule, the supervisor of

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

issue plugging instructions after receipt of notification as provided by R 299.2432. The

plugging instructions shall specify all of the following information:

(a) The type and amount of plugging material to be used.

(b) The intended depths at which bridges are to be set.

(c) The intended depths and lengths of cement plugs.

(d) The intended amount of casing to be pulled.

(e) Other requirements the supervisor of mineral wells determines are necessary for the

proper plugging of the well.

(2) The plugging procedure filed as required in R 299.2315(b) or R 299.2316(f)

and approved by the supervisor of mineral wells shall serve as the plugging instructions

for a test well.

History: 2004 AACS.

R 299.2434 Removal of uncemented casing required during plugging.

Rule 2434. Except as provided by R 299.2438, a permittee shall ensure that all

uncemented casing is removed from a well during plugging, unless otherwise

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

supervisor of mineral wells.

History: 2004 AACS.

R 299.2435 Methods and materials.

Rule 2435. (1) A permittee of a well shall ensure that a well is plugged from bottom

to top by a material approved by the supervisor of mineral wells.

(2) A permittee of a well shall ensure that the plugging procedures and materials do

not cause formation fracturing.

(3) A permittee of a well shall ensure that all casings abandoned with the hole are cut

off at a point not less than 4 feet below grade, a 1/2-inch steel welded plate or

another type of seal approved by the supervisor of mineral wells or authorized

representative of the supervisor of mineral wells is placed across the top of the pipe or

pipes, and the permit number of the well is permanently affixed to the plate or

approved seal at the top of the well. The permittee may install a permanent above-

ground marker, showing the permit number, above the well.

History: 2004 AACS.

R 299.2436 Plugging records; contents and filing.

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Rule 2436. (1) Except as provided in subrule (2) of this rule a permittee shall

file, within 60 days after plugging, the final plugging forms, which shall include all

of the following information:

(a) The type of cement and number of sacks used, including the additives and

percentages of the additives for each cement bridge plug.

(b) The type and volume of plugging material used if other than cement.

(c) The number of bridge plugs set in the hole and the depth and length of each plug.

(d) All downhole equipment abandoned with the hole and the depths to the tops of

the abandoned equipment.

(e) Signed copies of service companies' records of cementing operations

showing all of the following information:

(i) Pumping times.

(ii) Placement of cement.

(iii) Weights of cement slurries.

(iv) Pumping rates.

(v) Other pertinent data related to the plugging operations.

(f) The amounts and type of mix water used to mix cement.

(g) The volume and types of spacers and flushes used.

(h) The permittee's daily plugging records, if available.

(2) If a test well is drilled in an area of the state where rocks of precambrian age

directly underlie unconsolidated surface deposits or in those areas that have been

designated by the provisions of section 62508(c) of the act, an owner shall file the

information required in subrule (1) of this rule within 2 years after drilling completion.

History: 2004 AACS.

R 299.2437 Commencement of plugging operations.

Rule 2437. (1) A permittee of a well other than a test well shall begin plugging

operations as follows:

(a) Within 90 days after drilling completion if the well has been tested and found to be

unuseable for the purpose for which it was permitted.

(b) When the well has not been utilized for its permitted use for more than 24

consecutive months and temporary abandonment status has not been approved. The

supervisor of mineral wells may require a permittee to supply proof that a well is being

utilized for the purpose for which it was permitted.

(2) A test well shall be plugged within 30 days of drilling completion and completion of

all proposed well bore testing unless a different plugging schedule is approved by the

supervisor of mineral wells at the time of issuance of a permit to drill and operate.

(3) After receiving a written request showing just cause why the well should not be

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

supervisor of mineral wells may grant temporary abandonment status as provided by

R 299.2328 or require the well to be plugged.

History: 2004 AACS; 2008 AACS.

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R 299.2438 Pulling of surface pipe and conductor pipe.

Rule 2438. A permittee of a well shall not remove surface or conductor pipe during

plugging unless it is required by the supervisor of mineral wells. A test well drilled

under a blanket permit is exempt from this rule.

History: 2004 AACS.

R 299.2439 Restoration of well site; filling and leveling of cellars, pits, and

excavations; removal of debris.

Rule 2439. A permittee of a well shall fill and level the

cellar

and all pits and

excavations, remove or eliminate debris, minimize erosion, and restore the well site

as nearly as practicable to the original land contour or to a condition approved by the

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

wells as soon as practical, but not more than 9 months after plugging completion.

History: 2004 AACS.

PART 11. WELL SITES; SURFACE FACILITIES; FLOW LINES

R 299.2441 Surface facilities; location; exception to location requirements.

Rule 2441. (1) All surface facilities and flow lines installed after the effective date

of these rules shall be constructed so that the materials contained in the facilities

do not cause waste. Operation of surface facilities and flow lines shall not begin

until the permittee has complied with the methods and means to prevent pollution as

specified in these rules.

(2) Surface facilities installed after the effective date of these rules that are not a

replacement or improvement of an existing surface facility shall be located not less

than 300 feet from either of the following:

(a) Existing recorded fresh water wells and reasonably identifiable fresh water

wells utilized for human consumption.

(b) Existing structures used for public or private occupancy.

(3) Surface facilities may be located closer 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 under

either of the following conditions:

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

signed by the owner or owners of 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.

(b) After a hearing under part 13 of these rules, the supervisor of mineral wells

determines that the proposed surface facility location will prevent waste, protect

environmental values, and not compromise public safety.

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

mineral wells shall be notified within 24 hours of emergency repairs to existing

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surface facilities that substantially modify the facility or piping. Information regarding

such emergency repairs shall be submitted in writing within 45 days of the repair.

History: 2004 AACS.

R 299.2442 Surface facilities; request for approval; other permits required.

Rule 2442. (1) A permittee shall submit to the supervisor of mineral wells a written

request for approval to construct or substantially modify and operate a surface facility

or flow line. The request may be filed with the application for a permit to drill and

operate a well.

(2) A request for a surface facility shall include all

of

the following

information, or in the case of a substantial modification, updates of the following

information:

(a) An environmental impact assessment.

(b) A scale map showing the location of the proposed surface facility.

(c) Identification of the well or wells to be connected to the surface facility.

(d) Reasonable and necessary measures to

protect

environmental values

associated with existing adjacent land uses, including berming, screening, and access

road location.

(e) Information relative to the approximate distances

and

directions from the

surface facility or flow line to items identified in R 299.2311(2)(e)(iv).

(f) Identification of the fluid streams to be handled at the surface facility.

(g) A schematic of the flow schemes, including the location and storage capacities of

all on-site surface equipment.

(h) A copy of the spill response plan.

(i) Secondary containment plans showing construction details of dikes and floors of

all secondary containment areas.

(j) Details of tank overfill prevention systems.

(3) A request to construct or substantially modify a flow line shall include all the

following information:

(a) Material specifications for the proposed flow line

material, including

composition, burst strength, corrosion resistance and other engineering data to

characterize the suitability of the pipe for transporting the liquid proposed.

(b) Details of flow line construction procedure, including burial depth, method of

forming joins, quality control procedures for joins, procedures for pre-use leak testing

and other information to characterize

minimizing leaks.

the installation from the standpoint of

(c) Details of flow line operation, including placement of emergency shutoff valves,

maximum anticipated operating pressure, and plans for leak detection by means of any

of the following:

(i) Regular inspections or corridor patrols.

(ii) Installation of monitoring systems for leak detection.

(iii) Flow line pressure testing.

(iv) Any other method and placement of emergency shutoff valves and maximum

anticipated operating pressure.

(d) A scale map showing the proposed route of the flow line.

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(e) A copy of the spill response plan. A spill response plan prepared under another

part of the act is acceptable.

(4) Upon receipt of a written request for approval to construct and operate or to

substantially modify and operate a surface facility or flow line, other than a request

made as part of an application for permit to drill and operate a well, the supervisor of

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

have up to 30 days to review the request to determine if the request is accurate

and administratively complete.

(5) If the request is determined to be inaccurate or incomplete, then the supervisor

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

shall, within the 30-day period, provide the person making the request with a notice

that the request 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 up to an additional 15 days to review the information to

determine if the request is accurate and administratively complete.

(6) If a request to construct and operate a surface facility or flow line is submitted with

an application to drill and operate a storage or disposal well, and if the supervisor

of mineral wells holds a hearing, as allowed in R 299.2312(m) or R 299.2320, the

review process will continue until the hearing has been conducted and all evidence

presented at the hearing has been reviewed.

(7) Upon completion of the review process, the supervisor of

mineral wells or

authorized representative of the supervisor of mineral wells shall approve or deny the

request within 11 business days. A request shall be approved if the supervisor of

mineral wells determines that construction and operation of the proposed surface facility

or flow line will prevent waste, protect environmental values, and not compromise

public safety. Upon approval by the supervisor of mineral wells or authorized

representative of the supervisor of mineral wells, a request made under this rule shall

become part of the permit to drill and operate the well or wells served by the surface

facility.

(8) 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.

(9) The supervisor of mineral wells shall not approve construction of a surface facility

or flow line by a person or an authorized representative of a person if the person is not

eligible for a permit.

(10) If discharges to the air, surface waters, or groundwater of the state are likely to

occur at a surface facility, then a permittee shall apply for and obtain all necessary

state and federal discharge permits

before operating the surface facility.

History: 2004 AACS.

R 299.2443 Hydrogeological investigation.

Rule 2443. (1) Unless tertiary containment is installed at a surface facility

constructed after the effective date of these rules, as provided in R 299.2445(1)(b), a

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permittee shall file results of

a

hydrogeological investigation of the surface

facility area with the supervisor of mineral wells. The hydrogeological

investigation shall include all of the following:

(a) Water quality sampling and analysis for the following parameters:

(i) Specific conductance as an indication of the dissolved solids.

(ii) The concentrations of the following parameters for chemical balance and

indicators for comparison of water quality:

(A) Cations.

(B) Anions.

(C) Total chloride.

(D) Hardness.

(E) Ph.

(F) Total dissolved solids.

(G) Temperature.

(iii) Additional groundwater quality parameters required on

a case-by-case

basis if the parameters can be justified on the basis of any 1 of the following

criteria:

(A) The parameters may cause degradation in usable aquifers and are present or

likely to be present in the liquids handled at the surface facility.

(B) The parameters can demonstrate that a discharge to a usable aquifer is occurring.

(C) The parameters can be used to define the existing or local background

groundwater quality.

(b) A determination of the horizontal and vertical flow system

to properly

determine the location and depth to be monitored.

(c) A determination of the groundwater flow direction plus the

depth to the

groundwater. The tops of the well casings used for this purpose shall be referenced to

a common or United States geological survey datum.

(d) A geologic description of earth materials, both horizontally and vertically, in

the immediate vicinity of the proposed surface facility.

(2) A hydrogeological investigation shall be prepared by or under the direction of

a geologist qualified in hydrogeology or groundwater geology or a registered

professional engineer who may use existing information to generate the

investigation.

(3) The supervisor of mineral wells may approve methods

other

than those

specified in subrule (1) of this rule to gather the information required to comply with

this rule.

History: 2004 AACS.

R 299.2444 Secondary containment required.

Rule 2444. A permittee shall provide for secondary containment at a wellhead,

pump jack, and surface facility installed after the effective date of these rules, for either

disposal, brine production or storage, or converted to disposal, brine production or

storage after the effective date of these rules. Measures to ensure secondary

containment shall be as provided in R 299.2445 to R 299.2450.

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History: 2004 AACS.

R 299.2445 Groundwater monitoring system.

Rule 2445. (1) The supervisor of mineral wells may require a surface facility

installed or substantially modified after the effective date of these rules to have 1 of

the following monitoring systems to detect leakage from secondary containment areas:

(a) A minimum of 1 groundwater monitoring well downgradient, which is in close

proximity to all secondary containment areas and completed at depths as specified in the

hydrogeological investigation, so as to intercept any discharge from the secondary

containment area to groundwater contained

in a usable aquifer.

(b) Tertiary containment underlying the secondary containment which shall be

constructed and sealed in a manner to capture any waste product, stored product or

brine that may leak or seep through the secondary containment. A layer of

permeable material and a monitoring tube shall be placed between the secondary and

tertiary containment to allow monitoring to determine the presence of any leakage or

seepage through the secondary containment.

(2) A monitoring well installed under subrule (1)(a) of this rule shall be subject to the

following provisions:

(a) The drilling method shall be specified.

(b) Monitoring wells completed in fine-textured earth materials shall have special

construction, such as gravel packing around the screen, or other construction methods

approved by the supervisor of mineral wells.

(c) Monitoring wells shall have suitable equipment and methods for sampling

groundwater, as specified in the hydrogeological investigation.

(d) Casings shall be installed so as to prevent vertical leakage of fluids between the

casing and the drill hole and shall be capped and provided with a cap locking device. Use

of a vented cap is desirable, but care shall be taken to prevent introduction of

contaminants through such vents.

(e) The well casing shall be protected against accidental damage

and shall be

adequately marked so as to be clearly visible during winter and summer conditions.

(f) When a monitoring well is to be permanently abandoned, approved plugging

procedures shall be followed as provided in part 127 of 1978 PA 368, MCL

333.12701 et seq.

(3) The monitoring system required by subrule (1) of this rule shall be kept in a

functional condition. Water samples shall be collected and water level measurements

taken once every twelfth month.

parameters specified in R 299.2443(1)(a).

The water samples shall be tested for the

Results of analyses and water level

measurements shall be submitted to the supervisor of mineral wells within 60 days of

taking the sample or making the water level measurement.

History: 2004 AACS.

R 299.2446 Secondary containment; general requirements.

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Rule 2446. Secondary containment measures at a wellhead or surface facility shall

meet all of the following requirements:

(a) The sidewalls and floor of a secondary containment area shall be constructed

and sealed in a manner to prevent the seepage of waste product, stored product, or

brine into the surrounding soils, surface waters, or groundwater.

(b) Dikes or firewalls shall be maintained and the enclosure kept

free of waste

products, stored products, tank bottoms, brine, water, vegetation, debris, and any

flammable or combustible material.

(c) The containment volume shall be the larger of 11% of the total capacity of all

vessels or 111% of the capacity of the largest vessel located in a secondary

containment area. For the purposes of this subdivision, the largest vessel is either

the largest single vessel or those vessels connected in such a way to allow unrestricted

gravity flow from vessel to vessel.

(d) A permittee shall install an automatic surface facility shutdown system if the

facility has a through put of liquids in a 24-hour period that exceeds the containment

volume of the secondary containment area. The automatic shutdown system shall be

designed to prevent liquids from overflowing the secondary containment area. A

surface facility shall be exempt from the requirement of an automatic shutdown

system if the facility has staff present while operating and is equipped with alarm systems

on the storage tank or tanks.

(e) All transfer and injection pumps shall have leak containment constructed to

prevent the seepage of any liquids moved by the pump or any lubricating oils into the

surrounding soils, surface waters, or groundwater.

(f) Wellheads and flare stacks shall have secondary

containment

and spill

containment areas constructed in a manner to prevent the seepage of waste product,

stored product, or brine into the surrounding soils, surface waters, or groundwater.

Secondary containment at the wellhead shall be

constructed in a manner to capture leakage of liquid that may occur. In addition, if the

wellhead is equipped with a pump jack utilizing a gasoline or diesel-powered engine,

then the engine shall also have secondary containment that is sufficient to prevent

the seepage of any machine oils or fuels into the surrounding soils, surface waters, or

groundwater.

(g) A permittee shall keep secondary containment areas free of standing liquid.

All spills in a secondary containment area shall be pumped up within 48 hours of

discovering the spill.

(h) A permittee shall submit for the supervisor of mineral wells' approval, a plan

for inspections and monitoring of active wells and surface facilities.

History: 2004 AACS.

R 299.2447 Secondary containment; vessels.

Rule 2447. (1) A vessel at a surface facility shall be elevated

and placed on

impervious pads or constructed so that any leakage can be easily detected.

A vessel that is to be used on-site for 30 days or less shall, at a minimum, be placed on

leak-resistant material installed in a manner to contain spills or leaks.

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(2) A waste product, stored product, or brine storage vessel shall be located in a

secondary containment area.

History: 2004 AACS.

R 299.2448 Secondary containment; loading and unloading areas.

Rule 2448. (1) A truck loading and unloading area located outside of a secondary

containment area shall be constructed and sealed in a manner that prevents the seepage

of waste product, stored product, or brine into the surrounding soils, surface waters, or

groundwater. In addition, a ramp shall be constructed to contain any leakage from

transfer operations at the vehicle being loaded or unloaded. The ramp area shall

contain a sump and be connected to a secondary containment area so that any spillage

drains into the sump and into the secondary containment area. The spill containment

ramp and sump shall have a combined capacity of not less than 1,000 gallons.

(2) Sumps shall be constructed of materials impervious to the waste product,

stored product, and brine and resistant to damage and deterioration during use.

Sumps shall be connected to the ramp area and the secondary containment area in a

manner that prevents leakage.

(3) All loading and unloading facility transfer lines that are

not

in use shall be

secured to prevent spillage. A shutoff valve shall be installed at the truck connect point

and at the storage vessels. All shutoff valves shall be left in a normally closed position.

History: 2004 AACS.

R 299.2449 Secondary containment; piping.

Rule 2449. All piping at a surface facility shall be routed above the ground and kept

within the secondary containment area where practical. Piping that cannot be routed

above the ground shall have its location marked with posts or with other location-

identifying markers approved by the supervisor of mineral wells or authorized

representative of the supervisor of mineral wells so that the buried piping can be easily

located.

History: 2004 AACS.

R 299.2450 Secondary containment; certification.

Rule 2450. Upon completion of the construction of a surface facility, but before its

use, a permittee of a well shall certify to the supervisor of mineral wells or authorized

representative of the supervisor of mineral wells that the secondary containment area is

constructed according to the approved plan. Following advance notice, the supervisor

of mineral wells may require an inspection of a surface facility before it is put into

service. If an inspection is required it shall be conducted within 5 business days of the

receipt of certification.

History: 2004 AACS.

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R 299.2451 Access to surface facilities.

Rule 2451. A permittee of a well shall provide a right of entry to a surface facility

for monitoring to the supervisor of mineral wells or authorized representative of the

supervisor of mineral wells.

History: 2004 AACS.

R 299.2452 Safety measures.

Rule 2452. If hazards to life or property, or both, exist, then a permittee of a well

shall post safety signs in conspicuous places around the well or surface facility. The

supervisor of mineral wells or authorized representative of the supervisor of

mineral wells may require the installation of fences, gates, or other safety measures.

History: 2004 AACS.

R 299.2453 Use of unlined pits prohibited .

Rule 2453. A permittee of a well shall not use unlined earthen pits to collect waste

products, stored products, brine, or tank bottoms.

History: 2004 AACS.

R 299.2454 Cleanup and disposal of losses.

Rule 2454. (1) A permittee of a well shall begin cleanup of losses of waste products,

stored products or brine from wells, flow lines, and associated surface facilities as

soon as possible but no later than within 24 hours of discovering the loss.

(2) Disposal of losses from wells, flow lines, and associated surface facilities

shall be in a manner consistent with these rules and all applicable state and federal

laws and regulations.

History: 2004 AACS.

R 299.2455 Notice of serious accident; reporting.

Rule 2455. (1) A person shall notify the supervisor of mineral wells or authorized

representative of the supervisor of mineral wells of

a

serious accident that has

caused or may cause waste. The notification shall be made by telephone as soon as

possible but no more than 8 hours after discovery of the accident, and shall give the

particulars of the accident. A detailed written report shall be submitted to the

supervisor of mineral wells or authorized representative of the supervisor of

mineral wells within 15 days of the accident.

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(2) If a person cannot contact the supervisor of mineral wells or authorized

representative of the supervisor of mineral wells after an accident, then the person

shall immediately telephone the pollution emergency alerting system.

History: 2004 AACS.

R 299.2456 Reporting of losses and spills.

Rule 2456. (1) A permittee shall report

a

loss outside

of

a secondary

containment area of more than 110 gallons of brine or nonhazardous substance from a

surface facility or pipeline to the supervisor of mineral wells or authorized

representative of the supervisor of mineral wells by

telephone or in person within 24 hours of its discovery. The supervisor of mineral

wells may require a permittee to submit a written report of the loss and remedial actions

taken.

(2) A report of a loss or spill outside of a secondary containment area of less than 110

gallons of brine or nonhazardous substances is not required if the loss or spill is cleaned

up within 24 hours of the discovery.

History: 2004 AACS.

R 299.2457 Smoking and open flame restrictions.

Rule 2457. A permittee of a well shall ensure that smoking and open flames shall

not occur where waste products or stored products constitute a hazard of fire or

explosion.

History: 2004 AACS.

R 299.2458 Identification of wells and surface facilities.

Rule 2458. A permittee of a well shall ensure that a well is identified by a sign which is

posted in a conspicuous place and which is not more than 20 feet from the well. A

sign shall be durably constructed, be kept in good condition, and the lettering shall be

not less than 1 ½ inches high and legible under normal conditions at a distance of 25

feet. A sign shall show all of the following information:

(a) The permit number.

(b) The name of the permittee.

(c) The name of the lease and well number.

(d) The well location by quarter-quarter-quarter section, township, and range or

street address.

(e) An emergency telephone number.

History: 2004 AACS.

R 299.2459 Line markers for brine pipelines.

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Rule 2459. (1) If a pipeline conveys liquids to or from a well located outside the

perimeter of a manufacturing plant, it is subject to the provisions of this rule.

(2) Except as provided in subrule (3) of this rule, a marker shall be placed and

maintained as close as practical over each buried brine pipeline, as follows:

(a) At each crossing of a public road and railroad.

(b) When necessary to identify the location of the brine pipeline to reduce the

possibility of damage or interference.

(c) At the point of crossing of or under waterways and other bodies of water.

(3) Markers shall be placed and maintained along each section of a brine pipeline that is

located above ground in an area which is accessible to the public.

(4) The following information shall be written legibly on a background of sharply

contrasting color on each brine pipeline marker:

(a) The word "warning," or "caution," followed by the words

"waste product

brine" or "brine pipeline," all of which, except for markers in heavily developed

urban areas, shall be not less than 1 ½ inches high and legible under normal conditions

at a distance of 25 feet.

(b) The name of the permittee and the telephone number, including the area code,

where the permittee can be reached at all times.

History: 2004 AACS.

R 299.2460 Pipelines; records.

Rule 2460. A permittee shall keep records covering each leak discovered,

repair made, pipeline break, pipeline patrol, and inspection for as long as the segment

of pipeline involved remains in service.

History: 2004 AACS.

R 299.2461 Purging, removal, and abandonment of lines and vessels.

Rule 2461. A permittee of a well shall remove all flow

lines

and vessels,

including tanks, if the flow lines or vessels are not used for 1 year and shall provide

notification of the removal to the supervisor of mineral wells or authorized

representative of the supervisor of mineral wells. The supervisor of mineral wells

may allow a line to be purged and abandoned in place upon written application from

a permittee. The supervisor of mineral wells may grant an exception to this rule upon

written application.

History: 2004 AACS.

R 299.2462 Existing facilities; maintenance.

Rule 2462. (1) A permittee of a well shall maintain all existing dikes or fire walls

installed before the effective date of these rules, and shall keep the reservoir free of oil,

emulsions, waste products, stored products, tank bottoms, brine, water, vegetation,

debris, or any flammable or combustible material.

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

of mineral wells may require surface facilities constructed before the effective date of

these rules to be upgraded to meet secondary containment requirements of this

part if the facility is substantially modified or if losses have resulted in pollution.

(3) Before any modification of a secondary containment area, other than routine

maintenance, a permittee of a well shall notify the supervisor of mineral wells or

authorized representative of the supervisor of mineral wells in writing.

The

notification shall include a modified secondary containment plan reflecting the

proposed changes. A permittee shall receive approval from the supervisor of mineral

wells or authorized representative of the supervisor of mineral wells before

making the modification. The supervisor of mineral wells or authorized representative

of the supervisor of mineral wells shall approve or deny the request within 11 days

of receipt of the request. The supervisor of mineral wells may require an inspection

of the modified secondary containment area before it is returned to service.

History: 2004 AACS.

R 299.2463 Nuisance odors.

Rule 2463. A person may not cause a nuisance odor in the exploration for,

development, production, handling, or use of brine, or in the operation of disposal or

storage wells. If the supervisor of mineral wells or authorized representative of the

supervisor of mineral wells receives 1 or more complaints of odor resulting from a

well or surface facility operations, then the supervisor of mineral wells may require a

permittee to suspend operations. If the nuisance odor is caused by hydrogen

sulfide, the provisions of R 299.2461 shall apply. The supervisor of mineral wells may

require a permittee to submit an odor abatement program to the supervisor of mineral

wells with a timetable for implementing the program. Within 60 days of receipt, the

supervisor of mineral wells shall determine if the odor abatement program is feasible

and may approve the program.

History: 2004 AACS.

PART 12. HYDROGEN SULFIDE MANAGEMENT

R 299.2471 Determination by the supervisor of mineral wells.

Rule 2471. (1) An applicant for a permit to drill and operate shall note on the

application for a permit to drill and operate whether a proposed well is likely to

encounter hydrogen sulfide during drilling and completion operations.

(2) A permittee shall note on an application for change of well status under R

299.2384 if a proposed change of well status is likely to result in hydrogen

sulfide production.

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

mineral wells shall make a final determination whether a proposed well is likely to

encounter hydrogen sulfide during drilling, completion, or rework operations.

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History: 2004 AACS.

R 299.2472 Applicability of rules.

Rule 2472. (1) If the supervisor of mineral wells or authorized representative of

the supervisor of mineral wells determines a proposed well is likely to encounter

hydrogen sulfide during drilling, change of well status, or repair operations and

that the uncontrolled release of the hydrogen sulfide will pose a threat to public

safety, the well shall be subject to the provisions of R 299.2473 to R 299.2483 and R

299.2489.

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

mineral wells determines a proposed well is likely to encounter hydrogen sulfide

during completion operations, and that the uncontrolled release of the hydrogen

sulfide will pose a threat to public safety, the well will be subject to the provisions

of R 299.2484 to R 299.2488.

(3) If a well is completed for production from a hydrogen sulfide-bearing stratum

and the uncontrolled release of the hydrogen sulfide causes a nuisance odor, then

the supervisor of mineral wells may require the permittee to implement the provisions

of R 299.2478 and R 299.2485 to R 299.2490.

(4) If a well does not encounter hydrogen sulfide during

drilling, rework, or

completion operations, or if hydrogen-sulfide-producing strata are isolated behind

casing, then it shall no longer be subject to the provisions of this part.

History: 2004 AACS.

R 299.2473 Metallic component standards.

Rule 2473. A permittee of a well shall ensure that metallic components

installed during the course of drilling, completing, testing, producing, repair, rework,

or servicing operations after the effective date of these rules, where applicable, are in

compliance with or exceed the standards for use in a hydrogen sulfide environment

set forth in the nace standard MR0175-2000, 2000 edition, entitled "Sulfide

Stress Cracking Resistant Metallic Material for Oil Field Equipment," which is

adopted by reference in these rules. Copies may be inspected at the Lansing Office or

Field Offices of the Geological and Land Management Division of the Department

of Environmental Quality. Copies may be obtained from the Michigan Department of

Environmental Quality, Geological and Land

Management Division, P.O. Box 30256, Lansing, Michigan 48909, at a cost as of the

time of adoption of these rules of $50.00 each, and from the National Association

of Corrosion Engineers, P.O. Box 218340, Houston, Texas 77218, at a cost as of the

time of adoption of these rules of $50.00 each.

History: 2004 AACS.

R 299.2474 Location of wells.

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Rule 2474. In addition to the setback distances specified in R 299.2341, a well shall be

located not less than 300 feet from existing areas maintained for public recreation, or the

edge of the traveled portion of an existing interstate, United States, or state highway.

History: 2004 AACS.

R 299.2475 Training.

Rule 2475. (1) A permittee of a well shall ensure that all agents, employees,

or other representatives of the permittee who are involved in drilling, completing,

testing, producing, repair, rework, or servicing operations have received training

from persons qualified in hydrogen sulfide safety. The training shall include all of the

following matters:

(a) The physical properties and physiological effects of hydrogen sulfide.

(b) The effects of hydrogen sulfide on metals and elastomers.

(c) Emergency escape procedures.

(d) The location and proper use of safety equipment.

(e) The locations of primary and secondary briefing areas.

(f) The location and operation of the hydrogen sulfide detection and warning

system.

(g) The corrective actions, shut-in procedures,

well

ignition procedures, and

procedures for notifying off-site public authorities listed in the contingency plan to

be followed in an emergency.

(h) The contents of the permittee's contingency plan.

(2) Not less than 2 persons per crew shall be trained in emergency first aid procedures,

including red cross-approved or equivalent

resuscitation.

techniques

of cardiopulmonary

(3) When a drilling contractor or other independent contractor is involved in

drilling, completing, testing, producing, repairing, reworking, or servicing

operations on a well, a permittee of a well may rely on written certification obtained

from the contractor that the agents and employees of the contractor involved in the

operations have received the training required by this rule. A permittee shall retain the

written certification. Failure to ensure that employees receive adequate training and

are current in the training is sufficient cause for the suspension of any or all

components of the operations on the well. A suspension of operations shall

continue as provided in R 299.2522.

History: 2004 AACS.

R 299.2476 Securing of nonproducing wells.

Rule 2476.A permittee of a nonproducing well subject to R 299.2472 shall ensure that

the well is secured to prevent a person other than authorized personnel from opening

the well.

History: 2004 AACS.

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R 299.2477 Warning signs; specifications.

Rule 2477. A permittee of a well shall ensure that warning signs have letters that

are not less than 1 ½ inches in height and that are legible under normal conditions at

a distance of 25 feet.

History: 2004 AACS.

R 299.2478 Contingency plans for drilling.

Rule 2478. (1) A contingency plan for drilling shall be prepared by the applicant to

provide an organized plan of action for alerting and protecting personnel at the well

site and the public in the event of an emergency involving release of hydrogen

sulfide gas. The contingency plan for drilling shall consist of 2 parts.

(2) Part 1 of the plan shall contain the general procedures that shall be followed in an

emergency involving the possible release of hydrogen sulfide into the atmosphere

and shall include both of the following sections:

(a) A section that lists, by title, personnel to be contacted and their duties and

responsibilities. The list shall also include

a

delegation of duties and

responsibilities and shall specify who is responsible for ordering ignition of the well

if necessary. The list shall be kept current by the applicant or permittee.

(b) A section that contains all of the following information:

(i) The emergency circumstances that cause the plan to be put into operation.

(ii) The initial procedures to be followed if the plan is activated.

(iii) The actions to be taken to ensure that all personnel known to be on the location

are accounted for and that nonessential personnel shall be safely removed.

(iv) The actions to be taken to restrict access of nonessential personnel to the location.

(v) The procedure for notifying the general public, public authorities, as listed in the

contingency plan, and safety agencies in the event of an emergency.

(vi) If evacuation of the public is necessary, the procedure for conducting the

evacuation.

(vii) The procedures for igniting the well.

(3) Part 2 of the plan shall be site-specific and shall contain all

information:

of the following

(a) An accurate map that shows the locations of all existing structures used for public

or private occupancy, areas maintained for public recreation, roads, and railroads

within a 1,300-foot radius of the drilling well.

(b) A list of names, telephone numbers, and addresses of all of the following:

(i) Seasonal and permanent residents.

(ii) Private businesses.

(iii) Schools.

(iv) Places of worship.

(v) Hospitals.

(vi) Governmental offices.

(vii) Parties responsible for the areas maintained for public camping or gathering

identified on the map.

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(c) A list of emergency telephone numbers, including the numbers of all of the

following:

(i) Representatives of the permittee.

(ii) Representatives of the drilling contractor.

(iii) The emergency preparedness coordinator.

(iv) Local ambulance services.

(v) Local hospitals.

(vi) Local fire departments.

(vii) The department.

(viii) The pollution emergency alerting system.

(4) An applicant shall submit part 1 of the contingency plan for drilling a well at the

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

supervisor of mineral wells. The applicant shall submit part 2 of the contingency plan

for drilling with the application for a drilling permit.

(5) If drilling a well in a highly populated area, an applicant may request, from the

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

wells, an exception to the requirement to prepare the map and accompanying list of

residences required in subrule (3) of this rule. Before granting an exception, the

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

wells shall confer with the local emergency preparedness coordinator on the

appropriateness of granting the exception and the alternative methods available for

notification of the local residences if there is a need to evacuate the public. If an

exception is granted, the local emergency preparedness coordinator shall be contacted

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

mineral wells when the applicant is notified that the exception has been approved. The

contact with the local emergency preparedness coordinator shall include notification

that the map and accompanying list of residences required in subrule (3) of this rule have

not been prepared and that the development of a procedure for evacuation of the

public, if necessary, is the responsibility of the local emergency preparedness

coordinator.

History: 2004 AACS.

R 299.2479 Compliance with rules; time.

Rule 2479. A permittee of a well subject to R 299.2472 shall comply with R 299.2480

to R 299.2483 not later than the time at which drilling reaches a depth of 500 feet above

the projected top of the geological stratum suspected by a permittee or the supervisor

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

to contain hydrogen sulfide. Compliance shall continue until all formations or strata

suspected to contain hydrogen sulfide are cased off, plugged, or drilled and

demonstrated not to be productive of hydrogen sulfide.

History: 2004 AACS.

R 299.2480 Briefing areas.

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Rule 2480. (1) A permittee of a well shall establish primary and secondary

briefing areas at the drilling site. A permittee shall ensure that safety equipment is

located at the upwind briefing area.

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

of mineral wells may require safety equipment, in addition to that listed in R

299.2304(k), if necessary for the safety of the public or the workers.

History: 2004 AACS.

R 299.2481 Emergency preparedness coordinator; contact by permittee.

Rule 2481. A permittee of a well shall notify

the

appropriate emergency

preparedness coordinator not less than 24 hours before the commencement of

drilling. The permittee shall retain proof of notification and shall make the proof

available to the supervisor of mineral wells upon request. The notification shall contain

all of the following information:

(a) The location of the drilling site.

(b) The fact that the well is expected to encounter hydrogen sulfide.

(c) The fact that a contingency plan is available on-site.

History: 2004 AACS.

R 299.2482 Wind direction indicators.

Rule 2482. A permittee of a well shall install wind direction indicators at the drilling

site. The wind direction indicators shall be visible from all normal work stations within

the drilling site.

History: 2004 AACS.

R 299.2483 Equipment; electric or mechanical fan; hydrogen sulfide detection

and warning system; emergency escape self-contained breathing apparatus; rig

floor ventilation.

Rule 2483. (1) A permittee of a well shall install

a

hydrogen sulfide detection

and warning system that activates audible and visual alarms if hydrogen sulfide is

detected. Visual alarms shall be activated if a hydrogen sulfide concentration of 11 ppm

is detected. Audible alarms shall be activated if a hydrogen sulfide concentration

of 20 ppm is detected.

(2) A permittee of a well shall locate hydrogen sulfide sensors as follows:

(a) For rotary rigs, at all of the following locations:

(i) The shale shaker or at the point of first release of gas from the returning stream

of drilling fluid.

(ii) On the rig floor.

(iii) In the substructure.

(iv) At the mud hopper.

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(b) For cable tool rigs, at the point of first release of gas from the well bore and on

the rig floor.

(3) After the sensors are mounted, the system shall be calibrated according to the

manufacturer's instructions. The detection and warning system shall be tested

before drilling into the geological stratum suspected to contain hydrogen sulfide.

The permittee shall record the calibrations and tests in the driller's log. The

supervisor of mineral wells or authorized representative of the supervisor of

mineral wells may witness the testing and calibration.

(4) A permittee of a well shall ensure that

an

emergency escape self-

contained breathing apparatus is readily available to every member of the drilling

crew at that member's work station and to other personnel required to be on the rig

floor during the drilling operation.

(5) A permittee of a well shall ensure that the rig floor and substructure of a well

are adequately ventilated to prevent the accumulation of gas and shall utilize an electric

or mechanical fan that operates constantly during the operation if natural ventilation is

inadequate to keep the wellhead area free from gas.

(6) A permittee of a well shall ensure that well safety

equipment

is the same

equipment that is required under R 299.2304(a). Safety equipment shall be located at

the upwind briefing areas unless otherwise stated in this rule. The supervisor of mineral

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

use of safety equipment, in addition to the equipment listed in R 299.2304(a), if

necessary for the safety of the public.

History: 2004 AACS.

R 299.2484 Initial testing.

Rule 2484. (1) When initial testing of a well subject to R 299.2472(2) is performed, a

permittee of a well shall comply with all of the following requirements not later

than the start of testing if permanent surface facilities have not been installed:

(a) One or more wind direction indicators shall be installed and shall be visible from

all normal work stations within the test site.

(b) The supervisor of mineral wells may require installation of an incinerator or

flare for the purpose of burning all gas and stock tank vapor produced during the test.

The incinerator or flare shall be equipped with a continuous pilot light or a pilot light

outage detector that has an automatic reignition system. The incinerator or flare shall be

located not less than 75 feet from the wellhead and test tanks and shall be positioned so

that the prevailing winds carry the combustion products away from the site.

A

flashback prevention system shall be installed between the incinerator or flare and the

test tanks.

(c) All of the following equipment shall be located at the test site:

(i) Not less than 2 self-contained, pressure-demand breathing apparatus that have a

30?minute air supply.

(ii) A first aid kit.

(iii) A portable electronic hydrogen sulfide detector.

(iv) An emergency escape self-contained breathing apparatus for each member of

the test crew.

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

of mineral wells may require the use of safety equipment, in addition to the

equipment listed in R 299.2304(a), if necessary for the safety of the public.

(d) If required by the supervisor of mineral wells, warning signs that have the word

"danger" or "caution" followed by the words "poison gas" shall be posted at the

entrances to all access roads.

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

of mineral wells shall be notified of the expected start-up date of the initial test.

(2) During the test period, a permittee of a well shall determine the hydrogen

sulfide content of any gas and stock tank vapor produced. Hydrogen sulfide content

shall be determined on-site using colorimetric or length of stain tubes or other

equipment designed to measure hydrogen sulfide concentrations utilizing a

procedure approved by the supervisor of mineral wells or authorized representative

of the supervisor of mineral wells.

(3) Operations or procedures that require the

use

of

a self-contained

breathing apparatus shall be performed only if backup personnel who are

authorized by the permittee of the well are on-site.

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

of mineral wells may grant exceptions to this rule when compliance with this rule is

not necessary to provide for the protection or safety of the public or when a well or

associated surface facilities are not likely to pose a threat to public safety.

History: 2004 AACS.

R 299.2485 Fluid analyses.

Rule 2485. The supervisor of mineral wells or authorized

representative of the

supervisor of mineral wells may require gas and brine analyses to determine

hydrogen sulfide concentration. A permittee of a well shall report, in writing, the

results of a gas and brine analysis to the supervisor of mineral wells within 45 days of

the date of the analysis. The report shall state the methods of sampling and analysis

used.

History: 2004 AACS.

R 299.2486 Vessels used for storing brine; equipment requirements.

Rule 2486. A vessel which is located at a well that is used for the storage of brine

is subject to all of the following requirements:

(a) A permittee shall install a sealing, pressure-vacuum-type hatch, except that a

pressure-vacuum-type hatch is not required on a storage vessel if the venting of vapor to

the atmosphere is permitted under subdivision (c) of this rule. A hatch shall be kept

closed when a tank is not being gauged.

(b) Except as provided in subdivision (c) of this rule, a permittee shall install a vent

line for conveying released gasses and vapors to an incinerator, flare, vapor

recovery system, or other system designed to prevent release of hydrogen

sulfide to the atmosphere. A flashback prevention system shall be installed on the line

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between a vessel and an incinerator or flare. If a vapor recovery or other system is

used, then a flare or incinerator shall be available for emergency use.

(c) A vessel may be vented to the atmosphere if the vent is located not less than 11

feet above the tank top and if the opening of the vent is within the diked area or not less

than 20 feet above the ground if the opening of the vent is outside the diked area, and

venting does not result in a nuisance odor.

(d) A permittee of a well shall install a fence around the vessel.The fence shall have

a gate and be located not less than 20 feet from the base of a storage vessel. A

permittee shall ensure that warning signs with the word "danger" or "caution" followed

by the words "poison gas" are installed on all sides of the fence. If the supervisor

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

that a threat to the public safety exists due to emissions of sulfur-bearing gas or vapor,

then fencing other than that specified in R 299.2302(q) may be required.

(e) The supervisor of mineral wells may require the use of

a

tank gauging system

that does not require the opening of the tank hatches if a verified chronic nuisance odor

results from tank gauging.

History: 2004 AACS.

R 299.2487

Incinerators and flares; equipment and design requirements;

additional requirements.

Rule 2487. (1) A permittee of a well shall ensure that an incinerator or flare installed

pursuant to R 299.2484(1)(b) or R 299.2486(b) is designed and equipped to prevent the

release of unburned gas to the atmosphere. If the daily volume of gas handled by the

incinerator or flare contains 28 pounds or more of hydrogen sulfide, then a permittee

shall ensure that the incinerator or flare is equipped with a mechanism that operates upon

failure of the pilot light to shut off the flow of fluid from the wellhead.

(2) A permittee of a well subject to this part shall install

a

fence around an

incinerator or flare as required by R 299.2486(d). A fence shall be located not less

than 20 feet from the base of the incinerator or flare. A permittee of a well shall ensure

that warning signs that have the word "danger" or "caution" followed by the words

"poison gas" are posted on all sides of the fence. If the supervisor of mineral

wells or authorized representative of the supervisor of mineral wells finds that a threat

to the public safety still exists due to emissions of the incinerator or flare, then

fencing other than that specified R 299.2302(q) may be required.

(3) If the supervisor of mineral wells or authorized representative of the supervisor of

mineral wells finds that a threat to the public health or safety exists due to the

emission of sulfur-bearing gasses or vapors, then a flare stack or incinerator stack that

is more than 20 feet high, as specified in R 299.2302(s) and R 299.2303(e), may be

required.

History: 2004 AACS.

R 299.2488 Vehicle loading racks; vapor return lines required; vapor vent lines

permitted.

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Rule 2488. (1) Truck vapor return lines are required on the loading racks of the

surface facilities and shall be utilized when hydrogen sulfide-bearing brine is loaded

into the truck, except as provided in this rule.

(2) Truck vapor vent lines are permitted if the point of emission is not less than 75

feet from the loading rack and not less than 300 feet from an existing recorded fresh

water well or reasonably identifiable fresh water well used for human consumption or

an existing structure used for public or private occupancy. The allowance for truck

vapor vent lines may be rescinded in specific cases if the supervisor of mineral

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

nuisance odors are caused by the use of the vent lines.

History: 2004 AACS.

R 299.2489 Servicing; requirements.

Rule 2489. Before beginning an operation that requires removing the seal between

the tubing and production casing, a permittee of a well shall meet all of the following

requirements:

(a) Blowout prevention equipment shall be sized to accommodate the tubing and

rework drill pipe shall be installed and tested.

(b) Primary and secondary briefing areas shall be established.

(c) The same safety equipment that is required under R 299.2304(a) is required.

Safety equipment shall be located at the upwind briefing areas.The supervisor of

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

require the use of safety equipment, in addition to the equipment listed in R

299.2304(a), if the equipment is

necessary for public safety.

(d) An electric or mechanical fan shall be located at the well site.The fan shall be

operated constantly during the operation to keep the wellhead area free from gas if

natural ventilation is inadequate.

(e) A hydrogen sulfide detection and warning system shall be installed and have the

detector located downwind from the well or in the direction in which the fan is blowing.

The detection and warning system shall activate visual alarms if a hydrogen sulfide

concentration of 11 ppm is detected. Audible alarms shall be activated if a hydrogen

sulfide concentration of 20 ppm is detected.

(f) Signs that have the word "danger" or "caution" followed by the words "poison gas"

shall be installed at the entrances of all access roads.

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

mineral wells shall be notified before the start of servicing operations.

(h) A revised and updated contingency plan shall be at the well site and shall be

reviewed with all workers.

History: 2004 AACS.

R 299.2490 Nuisance odor prohibited.

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Rule 2490. A person shall not cause a nuisance odor in the exploration for,

development, production, handling, or use of brine, or in the operation of disposal

or storage wells.

History: 2004 AACS.

R 299.2491 Demonstration of hydrogen sulfide concentration.

Rule 2491. If a well or its associated surface facilities produce hydrogen sulfide

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

of mineral wells receives 1 or more complaints of odor regarding the facility, then

the supervisor may require the permittee of a well to demonstrate that the

concentration of hydrogen sulfide at the location of a complaint is less than 0.2 ppm

for a 1 hour time-weighted average, using a method acceptable to the supervisor.

History: 2004 AACS.

PART 13. HEARINGS

R 299.2501 Hearing; purpose; scheduling; request or petition generally.

Rule 2501. Hearings may be held to receive evidence pertaining to

the need or

desirability of an action or an order by the supervisor of mineral wells.A hearing may

be scheduled at the initiative of the supervisor of mineral wells or by the supervisor of

mineral wells upon the receipt of a petition, which is properly filed as specified in R

299.2502, from an owner, permittee, lessee, lessor, or other person who establishes to the

satisfaction of the supervisor of mineral wells that he or she has an interest in the

matter proposed for hearing.

History: 2004 AACS.

R 299.2502 Petition for hearing; contents.

Rule 2502. (1) A proper written petition for a hearing shall be filed on 8 1/2 by 11-inch

paper, except for the material filed under subdivisions (e) and (f) of this subrule, with

an original and 4 identical copies, and shall contain the following information as is

pertinent to the matter proposed for hearing:

(a) The name and address of petitioner.

(b) A specific statement of the matters asserted or relief sought indicating the rule,

order, or section of the act applicable to the petition.

(c) The legal description of the lands that are the subject of the petition, including

property description, locations, sections, townships, and counties relating to the matter to

be heard, and a statement of the petitioner's interest.

(d) A map of the lands that are the subject of the petition, showing the location or

locations of facilities thereon, which are subject to this part, and lands within 1,320 feet

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of the outside boundary of the lands that are the subject of the petition. The map shall

generally indicate the use and occupancy of all such lands.

(e) Other drawings and data that may be useful in considering the matter to be heard.

(f) The name and address of the newspaper circulated in the county or counties

where the lands that are the subject of the petition are located.

(g) A copy of the first page of a permit application.

(h) The name, address, and telephone number of the representative or

representatives of the petitioner to whom inquiries may be made.

(i) Such additional information as the supervisor of mineral wells may require to

assess the subject matter and scope of the petition, and to determine the content of

the service list to be compiled pursuant to R 299.2504(1).

(2) The supervisor of mineral wells may return a petition that does not comply with

these rules and may include a list of the deficiencies of the petition.

History: 2004 AACS.

R 299.2503 Hearings subject to administrative procedures act of 1969.

Rule 2503. A hearing scheduled by the supervisor of mineral wells shall be conducted

under 1969 PA 306, MCL 24.201 et seq., unless a different procedure is authorized

by the act or these rules. All hearings shall be conducted in a fair and impartial manner.

History: 2004 AACS.

R 299.2504 Notice of hearing; service; answer.

Rule 2504. (1) The supervisor of mineral wells shall prepare and furnish the notice of

hearing to the petitioner, together with instructions for publication and service of the

notice.

(2) The petitioner shall compile a service list following instructions from the

supervisor of minerals wells, based on information contained in the petition and

based on additional information to be developed by the petitioner. The service list

shall be compiled so as to assure reasonable notice to all persons entitled to receive

notice of hearing.

(3) The notice of hearing shall be published by the petitioner in a newspaper of

general circulation in the county or counties involved with the matter to be heard.

Publication shall occur once each week for 2 consecutive weeks before the date of the

hearing. The last date of publication shall be at least 30 days before the date set for the

hearing. Affidavits of proof of publication shall be filed with the supervisor of mineral

wells before the order is issued.

(4) The petitioner shall mail copies of the notice of hearing not less than 30 days

before the hearing, to the persons listed on the service list, by first-class mail or

personal service. An affidavit of proof of mailing shall be filed with the supervisor of

mineral wells stating that the notice was deposited in the United States mail not less

than 30 days before the hearing date, first-class postage prepaid, addressed to each

person so served at his or her record address as set forth in the service list. Each

person served, and his or her address of record, shall be specifically identified in

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the affidavit. The supervisor of mineral wells may require service by certified mail,

return receipt requested.

(5) If a hearing is initiated by the supervisor of mineral wells, or if the scope of a

hearing requested by a petitioner is enlarged at the initiative of the supervisor of

mineral wells, then the supervisor of mineral wells shall publish the notice of hearing.

(6) An interested person shall not participate as a party in a hearing conducted

under a petition unless the person files an answer in a timely manner with the

supervisor of mineral wells and serves the answer to the petition upon the petitioner.

An answer delivered in a timely manner shall be in the possession of the supervisor

of mineral wells and the petitioner not less than 5 days before the date set for the

hearing. The answer shall be in writing and shall set forth with specificity the

interested person's positions with regard to the representations made or relief sought

in the petition. An interested person is responsible for requesting a copy of the

petition from the petitioner at the contact information set forth in the notice of

hearing. The petitioner shall mail or deliver a copy of the petition and attachments to

the interested person within 3 business days after receipt of a request. Failure of the

petitioner to mail or deliver a copy of the petition to an interested person in a timely

manner relieves the interested person of the obligation to file an answer and the

interested person may present evidence or cross-examine witnesses. Failure to file and

serve an answer in a timely manner precludes an interested person from

presenting evidence at the hearing or cross-examining witnesses. However, a person

who does not file an answer in a timely manner may make a nonevidentiary

statement at the hearing.

(7) The notice of hearing shall contain the following statement:

An interested person may obtain a copy of the written petition by requesting 1 from the

petitioner at_________________________________________. Take note that if an

interested person wishes to participate as a party in the hearing by presenting

evidence or cross-examining witnesses, an interested person shall prepare and deliver

to the petitioner and supervisor of mineral wells, not less than 5 days before the hearing

date, an answer to the petition in the manner set forth in R 299.2504(6). Proof of

delivering the answer shall be filed with the supervisor of mineral wells on or before the

date of the hearing. The answer shall state with specificity the interested person's

position with regard to the petition. Failure to prepare and deliver an answer in a timely

manner shall preclude an interested person from presenting evidence or cross-examining

witnesses at the hearing. If an answer to the petition is not filed, the supervisor of

mineral wells may elect to consider the petition and enter an order without oral hearing.

(8) Upon a showing that service of notice cannot reasonably be made as provided

by this rule, the supervisor of mineral wells may authorize service of the notice of

hearing in another manner reasonably calculated to give the interested persons actual

notice of the proceeding and an opportunity to be heard. A request for this

authorization shall be made by verified motion. The motion shall set forth sufficient facts

to establish that service under subrules (2) to (4) of this rule cannot reasonably be made

and shall suggest an alternative method of service.

History: 2004 AACS.

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R 299.2505 Types of hearings.

Rule 2505. (1) Upon receipt of a petition, the supervisor of mineral wells, after

finding the petition to be complete, reasonable, and appropriate, shall determine

whether the petition shall be heard. The supervisor of mineral wells shall give each

hearing 1 of the following designations:

(a) A supervisor of mineral wells evidentiary hearing to consider the adoption of

an order having statewide application or ramifications.

(b) A supervisor of mineral wells evidentiary hearing to consider matters of local

concern in the administration of these rules or the orders of the supervisor of mineral

wells or to consider other matters as may be referred to the supervisor of mineral

wells.

(c) A supervisor of mineral wells uncontested evidentiary hearing to consider

matters of local concern in the administration of these rules or the orders of the

supervisor of mineral wells or to consider a petition to which an answer was not filed as

provided in R 299.2504(6).

(2) If a timely answer is not filed to a petition or if oral hearing is waived by all

interested persons present at a hearing, then the supervisor of mineral wells may direct

that a petition be processed under subrule (1)(c) of this rule. In these cases, proceedings

under subrule (1)(c) of this rule may be used if it appears that all issues of material fact

may be resolved by means of written materials and that the proceeding can be

efficiently handled without oral hearing. Where there is no oral hearing, all

substantive evidence shall be presented by verified statement. The supervisor of

mineral wells may require supplemental verified statements.

(3) Prehearing conferences may be held at the discretion of the supervisor of

mineral wells upon good cause shown, when the facts or legal issues are complex. A

party may request a prehearing conference in his or her petition, answer, or in a

responsive pleading. A hearing may be converted to a prehearing conference to

ensure an orderly and expeditious hearing.

(4) The parties to a proceeding may, by stipulation in writing or entered on the record,

agree upon facts, law, or procedure involved in the matter.Stipulations of fact shall be

considered as evidence in the proceeding.

(5) The supervisor of mineral wells may, at any time during a proceeding,

designate a hearings officer to conduct an evidentiary hearing as provided for under

subrule (1)(a) of this rule.

(6) The parties to a matter within the jurisdiction of the supervisor of mineral wells

may agree to dispose of all or a part of a matter at issue by stipulation and consent order.

The supervisor of mineral wells may enter the stipulation as a consent order, place the

stipulation on public notice as is appropriate, or reject the stipulation.

History: 2004 AACS.

R 299.2506 Final decision or order.

Rule 2506. (1) The supervisor of mineral wells or authorized representative of

the supervisor of mineral wells, shall issue a final decision or order as a result of a

hearing held under R 299.2505 or as a result of the procedure under R

299.2505(1)(c) after giving due consideration to all of the following:

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(a) The record.

(b) The supervisor of mineral wells' experience,

specialized knowledge.

technical

competence, and

(c) The proposal for decision, if one is issued, and exceptions to the proposal for

decision, replies to exceptions, and, if permitted by the supervisor of mineral wells,

oral arguments, and written briefs.

(d) The advice or recommendations of the representative of the supervisor of mineral

wells when such advice or recommendation is part of the hearing record.

(e) The stipulations or agreements that the contesting parties have placed on the

record at a hearing or submitted in writing to the supervisor of mineral wells or

the hearings officer.

(f) The act and rules.

(2) The final written decision or order of the supervisor of mineral wells shall be

furnished to the petitioner. The petitioner shall serve copies, by first-class mail,

within 3 business days, to all persons who filed an answer as provided in R

299.2504(6) and to all persons who filed an appearance at the hearing, or who

requested a copy of the final written decision.

(3) When a hearing is scheduled at the initiative of the supervisor of mineral wells,

the supervisor of mineral wells shall serve copies of the final written decision or

order, by first-class mail, within 3 business days, to all persons who filed an answer as

provided in R 299.2504(6), who filed an appearance at the hearing, or who otherwise

requested a copy of the final written decision.

History: 2004 AACS.

R 299.2507 Subpoenas; discovery.

Rule 2507. (1) At any time in a proceeding, the supervisor of mineral wells may

order a party or witness to attend and testify orally at the hearing. Subpoenas for

attendance at a hearing shall be issued by the supervisor of mineral wells upon

application by a party. A subpoena may also command the person to whom it is

directed to produce the books, papers, documents, or tangible things designated in the

subpoena, which shall be specified in detail.

(2) A subpoena shall state the purpose or the title of

the

proceeding and shall

command each person to whom it is directed to attend and comply with the subpoena

at a time and place specified in the subpoena. The supervisor of mineral wells, upon

a motion made at or before the time specified in the subpoena for compliance with

the subpoena, may do either or both of the following:

(a) Quash or modify a subpoena or subpoena duces tecum if it is unreasonable or

oppressive or if it requires the production of evidence that is not relevant or material

to a matter in issue.

(b) Condition the subpoena, in the case of a subpoena duces tecum, upon the

advancement, by the person in whose behalf the subpoena is issued, of the reasonable

cost of producing the books, papers, documents, or tangible things, unless

otherwise provided by law.

(3) The supervisor of mineral wells may issue an order to take a deposition,

interrogatory, or other discovery either upon a motion by the supervisor of mineral

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wells or for good cause shown by a party to a proceeding. If a deposition,

interrogatory, or other discovery is permitted, it shall be taken according to the rules

for conducting discovery in circuit court civil cases under the Michigan rules of court.

History: 2004 AACS.

R 299.2508 Continuance of hearing.

Rule 2508. A hearing, as provided in these rules, may be continued at the discretion

of the supervisor of mineral wells or the presiding officer until all required testimony is

submitted and all pertinent data and information are received. Further notice of

the continuance of the hearing is not required, other than the announcement at the

hearing of the date, time, and place of the continued hearing or service of written notice

on those persons who filed an appearance at the first hearing.

History: 2004 AACS.

R 299.2509 Failure to give notice of hearing.

Rule 2509. Failure to give notice of the time of a hearing to a person entitled to the

notice shall not constitute a bar to conducting of the hearing if the petitioner can

demonstrate substantial compliance with the notice requirements.

History: 2004 AACS.

R 299.2511 Emergency orders and hearings.

Rule 2511. (1) When an emergency order is issued by the supervisor of mineral

wells, the person subject to the order shall be served with the order, either personally

or by certified, return receipt mail.

(2) An emergency hearing may be scheduled by the supervisor of mineral wells to

consider matters of urgency or as a result of the issuance of an emergency order.

Notice of hearing shall be served by certified mail, return receipt requested, not less

than 11 days before the hearing date, on other interested persons as the supervisor of

mineral wells shall consider necessary and appropriate.

History: 2004 AACS.

R 299.2512 Appeals to the director of the department.

Rule 2512. (1) An owner or permittee may file an appeal to the

director of the

department as provided by section 62504 of the act. The appeal shall be in writing and

filed with the director of the department. The appeal shall set forth the basis for the

filing of an appeal.

(2) An appeal from an order of the supervisor of mineral wells that is issued after a

hearing shall be an appeal on the record. The appealing party shall order and file a

transcript of the evidentiary hearing before the supervisor of mineral wells. The

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supervisor of mineral wells shall prepare and file the record of the proceeding of the

appeal.

(3) Upon receipt of an appeal from an order of the supervisor of mineral wells,

the director of the department shall set a schedule for the filing of briefs on appeal.

Oral argument, if requested by the appealing party, and granted by the director, shall

be held after the filing of briefs. A prehearing conference may be scheduled to

establish a schedule for the appeal.

(4) The permittee or owner appealing an order, action, or inaction of the supervisor

of mineral wells shall file a petition of appeal to the director of the department. The

petition and notice requirements are the same requirements for petitions for a hearing

before the supervisor of mineral wells under R 299.2501 to R 299.2504.

(5) An appeal to the director of the department shall be filed within 30 days of the

order, action, inaction, or procedure.

History: 2004 AACS.

PART 14. ENFORCEMENT

R 299.2521 Authority of supervisor of mineral wells.

Rule 2521. The supervisor of mineral wells, under section 62508 of the act, may do

any of the following:

(a) Enforce all rules, issue orders, determinations, and instructions necessary

to enforce the rules and regulations, and do whatever may be necessary with

respect to the subject matter stated in these rules to carry out the purposes of these

rules and the act, whether or not the orders, determinations, or instructions are

indicated, specified, or enumerated in the act or rules.

(b) Order the suspension of any or all components of the operation when a violation

exists. The suspension time shall continue until a correction is made and a violation no

longer exists as provided by section 62507 of the act. The supervisor of mineral wells

may also prohibit a person from taking brine from the well during the required

suspension time.

(c) Order a well plugged for a continuing violation of the act or these rules.

History: 2004 AACS.

R 299.2522 Suspension of operations.

Rule 2522. (1) The supervisor of mineral wells or authorized representative of

the supervisor of mineral wells may require immediate corrective action, including

suspending any or all components of the drilling or other well operations, if the

drilling or other well operation has been determined by the supervisor of mineral wells

to be in violation of the provisions of the act, these rules, permit conditions,

instructions, or orders of the supervisor of mineral wells and causes or threatens to

cause waste.

(2) A suspension of operations shall be in effect for not more than 5 days or until the

operation is in compliance and waste or the threat of waste is eliminated. To extend

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the suspension beyond

5

days, the supervisor of mineral wells shall issue an

emergency order to continue the suspension of operations and may schedule a hearing

under part 13 of these rules. The total duration of the suspension of operations

by emergency order shall not be more than 21 days, as provided in section

62507 of the act.

History: 2004 AACS.

PART 15. MINERAL WELL REGULATORY FEE

R 299.2531 Filing of records; determination of fee; payment of fee; non-

payment of fee

Rule 2531. (1) The supervisor of mineral wells shall require an owner to file a list, on a

form prescribed by the supervisor of mineral wells, of all mineral wells owned by that

owner which were useable for their permitted purpose or which were not properly

plugged as of January first of the current calendar year.

(2) The list required in subrule (1) of this rule shall be filed by January 28 of the current

calendar year.

(3) The supervisor of mineral wells shall determine the amount of the mineral well

regulatory fee owed by an owner and shall notify the owner by March 1 of the current

calendar year. The fee charged for a well shall be as prescribed in the act.

(4) The mineral well regulatory fee shall be due and payable before May 1 of the

current calendar year.

(5) For the purposes of this rule a well is considered properly plugged when it has

reached final completion.

(6) The supervisor of mineral wells shall consider a well abandoned if the fee has not

been paid for 2 consecutive calendar years.

History: 2004 AACS; 2008 AACS.

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