As a part of the Institute's strategic focus on assisting CCS projects through knowledge sharing, three North American roadshow events will help the industry share project experiences and knowledge about CCS. Taking place in the US and Canada, the three events include: • Austin, Texas on November 8, 2011; • Calgary, Canada on 10 November, 2011; and • Washington, D.C. on 19 January, 2012. The first roadshow focused on sharing project experiences and knowledge from the projects in North America but also brought in projects from Europe (Don valley) and Australia (Callide) so that regionally diverse experiences could be shared amongst a global audience. Attendance at the event was around 30 to 35 which allowed open and frank discussions around technical, management, and regulatory issues and how these challenges can impact on a project’s advancement and decision making processes.

1. Texas Regulations for Geologic
Storage of Carbon Dioxide
Global CCS Institute
Austin Regional Meeting
Austin, Texas
November 8, 2011
Dave Hill, CCS Program
Railroad Commission of Texas

2. Texas and CO2 GS (CCS)
Overview of Legislation (Senate Bill 1387)
Class VI Wells “Phase I” of Chapter 5
Comparison of Phase I with Federal Rules
EOR/EGR Activities “Phase II” of Chapter 5
Report to the Legislature

3. Senate Bill 1387 (SB 1387)
• SB1387: In 2009, the Texas Legislature passed,
and the governor signed a bill, “relating to the
capture, injection, sequestration, or geologic
storage of carbon dioxide”. This was in
response to a federal draft rule creating a new
class of injection wells, known as Class VI wells
under the Underground Injection Control (UIC)
part of the Safe Drinking Water Act SDWA).
Other well classes remained unchanged.

4. Anthropogenic Carbon Dioxide
• SB 1387 in large measure deals with
anthropogenic CO2 which is “ carbon dioxide
that would otherwise be released to the
atmosphere…”. This includes CO2 that has been
stripped from another fluid stream (ex: gas
processing plant), or captured from an
emissions source. This does not include
naturally occurring CO2 recaptured, recycled, or
reinjected as part of enhanced oil recovery
(EOR) operations

5. SB 1387 JURISDICTION
RRC jurisdiction over anthropogenic CO2 GS (CCS)
In reservoirs productive of oil, gas, or geothermal
resources in the past, or potentially in the future
 In saline formations above or below such reservoirs
RRC jurisdiction over extraction of anthropogenic CO2
No change in CO2 EOR/EGR jurisdiction

6. SB 1387 CO2 Ownership and
Stewardship
- Stored CO2 is property of the storage
operator or his heirs, successors, or assigns
- Unless found to be abandoned, CO2 not the
property of the owner of the surface or
mineral estate
- Allows owner to extract anthropogenic CO2

7. SB 1387 REQUIREMENTS
RRC responsibilities regarding CO2 GS
 RRC/TCEQ MOU update
 RRC rules consistent with EPA rules
 RRC to seek enforcement primacy
 Reports to the Legislature

8. SB 1387 REQUIREMENTS
STATUS
 RRC/TCEQ MOU adopted 08-30-2010
 CCS Phase I adopted 12-20-2010
 CCS w/EOR/EGR, Phase II, adopted 7-17-11
 Enforcement primacy: In progress
 Combined joint report published 12-01-2010

9. RRC CO2 GS REGULATIONS Phase I
16 TAC Chapter 5 includes the same elements
as federal rules:
 Site characterization
 AoR and corrective action
 Well construction/Plugging
 Mechanical integrity/Monitoring
 Emergency response
 Financial Security
 Post-injection facility care

10. Site Characterization
Maps: §5.203 (b) requires surface maps
depicting property boundaries, wells, and other
pertinent surface features, such as surface water
bodies, roads, houses, and pipelines.

11. Site Characterization
Maps: §5.203 (c) requires geologic and
topographic maps, cross sections, discussion of
known or suspected transmissive faults.
• This section requires formation data including
depth, areal extent, mineralogy, permeability,
porosity, fm pressure, and basic geochemistry
from sources such as logs, cores, and surveys.
• Geomechanical data on fractures, ductility,
rock strength and stress.

12. Area of Review (AOR) and
Corrective Action (CA)
• AOR & CA: §5.203 (d) requires the owner / operator
(O/O) to delineate the AOR, identify wells requiring
corrective action, and perform the corrective action
on those wells.
• Requires computational modeling that considers
properties and volumes of CO2, fm properties, and
other available data. Predict lateral and vertical plume
migration.
• Tabulate and document status of wells in the AOR.

13. Injection Well Construction
• Injection Wells: §5.203 (e) requires wells to be
constructed to prevent movement of fluids that
will endanger USDW’s, allows proper testing
devices and continuous monitoring.
• Construction with casing and cement of
sufficient strength and quality to maintain
integrity during the design life of the well.
• Requires wells to have casing installed in a
manner that protects USDW’s

14. Logging, Sampling, & Testing Before
Injection
§5.203 (f) requires the applicant to submit a plan to
gather data after permitting and before injection.
Intent is to verify formation properties, assure
conformance well specifications, and to provide
baseline data. Plan has 3 major aspects.
• Logs and surveys of newly drilled wells,
• Determination of Hydro-geology of the injection and
confining zones,
• Sampling to include temperature, pH, conductivity,
reservoir pressure, and static fluid level of the
injection zone. Core analyses that are representative
are also required.

15. Mechanical Integrity Testing
• §5.203 (h) requires mechanical integrity testing
before beginning injection operations and at
least once every 5 years thereafter.
• This subsection also requires a mechanical
integrity testing plan as part of the permit
application. This plan should detail site specific
methods and related considerations.

16. Operating Information & Plan
• §5.203 (i) requires an operating plan. This is to
include proposed operating parameters such as
CO2 injection rates and volumes, injection
pressure, source of the CO2, and chemical and
physical characteristics of the injectate.
• The plan is to address potential issues including
mechanical failure, transmissive fractures, and
impact to USDWs.

17. Monitoring, Sampling, & Testing
After Initiation of Operation
• §5.203 (j) requires a plan to verify that the
geologic storage facility is operating as
permitted and that the injected fluids are
confined to the injection zone.
• Requirements include continuous recording
devices for pressure, rate and volume,
monitoring of USDW’s, corrosion monitoring,
and monitoring of geochemical and geophysical
changes.

18. Well Plugging
• §5.203 (k) requires a plan for plugging injection
and monitoring wells. This includes
requirements for final reservoir and mechanical
testing, flushing, as well as cement pumping
and compatibility. This also includes
notification requirements.

19. Emergency and Remedial Response
Plan
• §5.203 (l) requires a plan for emergency and
remedial response. This is to describe proposed
actions to be taken to address escape of CO2
from the permitted interval, accounts for the
entire AOR, addresses potential safety issues,
and also includes emergency response, security
measures, and training.

20. Post Injection Care and Closure
• §5.203 (m) requires a plan for post injection
storage facility care and closure. This plan is to
include the predicted position of the CO2
plume and associated pressure front at closure,
post injection monitoring locations and their
methods and frequencies, a proposed
reporting schedule, and an estimated cost of
plan activities.

21. Notice and Hearing
§5.204 describes notice and hearing
requirements. This includes
• Notice by local publication,
• Placing a copy of the application in a public
place in the nearest city,
• Criteria for a list of persons to be notified,
• Hearing requirements

22. Fees, Financial Responsibility, and
Financial Assurance
§5.205 includes description of Fees, Financial
Responsibility, and Financial Assurance
requirements. This includes
• Fees to be paid for permit applications, and per ton
injected,
• Requirements to verify financial responsibility,
• Criteria to be met for financial assurance regarding
various operations and phases of the facility,
• Notice of adverse financial conditions

23. Permit Standards
• §5.206 states RRC may issue a permit if:
No endangerment/injury to oil, gas, other minerals
USDW’s protected from permitted activities
No endangerment/injury to human health/safety
Reservoir suitable for preventing CO2
escape/migration
Applicant meets statutory and regulatory
requirements
 Plans in §5.203 are approved and followed

24. Reporting and Record Keeping
• §5.207 includes reporting and record keeping
requirements. This includes test records and
operating reports. Depending on the
information reported, reporting frequency
may be within 24 hours, or at other intervals
such as monthly, semi-annual, or annual

25. State-specific elements:
Letter from TCEQ Executive Director (GAU)
Use of other rules where appropriate, including
• SWR 1 – Notice of bankruptcy
• SWR 13 – Well completion
• SWR 14 – Well plugging
• SWR 46 – EOR/EGR
• SWR 78 – Financial assurance for wells
• Water Well Driller rules

26. Differences from EPA:
Differences from EPA regulations:
 Do not imply more than one confining zone
necessary
 No prohibition against storage above USDW
 External MIT once every 5 years
 No default (50-yr) post-injection monitoring
 Phased financial assurance on corrective action
 5 yr (rather than 10 yr) records retention
 More flexibility

27. ENFORCEMENT PRIMACY:
 EPA
 Split jurisdiction
 Work Load

28. RRC CO2 GS REGULATIONS Phase II
Associated with EOR/EGR
PURPOSE - §5.301: Provide for certification of GS
of CO2 incidental to enhanced recovery operations
for which:
 there is a reasonable expectation of more than
insignificant future production volumes or rates as a
result of the injection of anthropogenic CO2 ; and
 operating pressures no higher than reasonably
necessary for enhanced recovery

29. RRC CO2 GS REGULATIONS
Associated with EOR/EGR (Phase II)
Registration for Certification
§5.303 Requires registration of enhanced
recovery facility for which the operator proposes
to document GS of anthropogenic CO2 incidental
to enhanced recovery

30. RRC CO2 GS REGULATIONS
Associated with EOR/EGR (Phase II)
Application and Fee
§5.304 Establishes registration application
requirements, including registration and
certification fees for each facility.

31. RRC CO2 GS REGULATIONS
Associated with EOR/EGR (Phase II)
Monitoring, Sampling and Testing Plan:
§5.305 requires this plan in order to allow a
determination by mass balancing or actual system
modeling of the quantities of anthropogenic CO2
permanently stored within the enhanced recovery
reservoir for documentation to RRC.
In lieu of mass balance or modeling, the O/o
may comply by submitting to the RRC a copy of
information submitted to EPA under Subparts RR or
UU of 40 CFR Part 98, of GHG Rules

32. RRC CO2 GS REGULATIONS
Associated with EOR/EGR (Phase II)
Standards for Certification under §5.306:
To verify geologic storage of CO2, operator must
maintain, and be in compliance with, approved
testing, monitoring, and reporting plan.
RRC may then annually issue a certification
provided that all other requirements are met.

33. SB 1387 JOINT REPORT
Two reports were required under Sections 9
and 10 of SB 1387. One by GLO, and one by
RRC & TCEQ. The UT-Bureau of Economic
Geology was directed to assist in each. A
comprehensive report was issued by the four
state agencies.
Intended to provide policy information,
discussion of technical issues, and legislative
recommendations to the Texas Legislature in
response to their requirements.

34. Report Highlights
• Discusses regulatory framework for leasing state lands
and addressing related legal and legislative issues
• Recommends a permitting process for saline aquifers
not productive of oil, gas, or geothermal resources
• Discusses procedures for public comment
• Discusses Financial Assurance options and addresses
long term liability issues for post operational phases
• Discusses the means of ensuring the quality of natural
and cultural resources
• Recommends criteria to identify candidate sites in
seven specified geologic settings

35. SB 1387 JOINT REPORT
http://www.rrc.state.tx.us/
Click
o Forms, Maps & More (near the top)
Click
•Publications
First Document, pdf format

36. Questions?
david.hill@rrc.state.tx.us
512 463 3011