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§ 1726.7. Monitoring Requirements.

14 CA ADC § 1726.7Barclays Official California Code of Regulations

Barclays California Code of Regulations
Title 14. Natural Resources
Division 2. Department of Conservation
Chapter 4. Development, Regulation, and Conservation of Oil and Gas Resources (Refs & Annos)
Subchapter 1. Onshore Well Regulations
Article 5. Requirements for Underground Gas Storage Projects
14 CCR § 1726.7
§ 1726.7. Monitoring Requirements.
Currentness
(a) The operator shall monitor for the presence of gas in all annuli by measuring and recording annular and tubing pressure at least once a day. The operator shall evaluate any anomalous annular gas occurrence and immediately report it to the Division. This requirement may be met by employment of a real-time data gathering system, such as Supervisory Control and Data Acquisition.
(b) The operator shall monitor the material balance of an underground gas storage project's storage reservoir relative to the original design and expected reservoir behavior. The operator shall evaluate and correct unexpected conditions detected during monitoring in order to avoid an incident or loss. Monitoring frequency shall be based on factors such as reservoir and well fluid loss potential and flow potential, as outlined in the Risk Management Plan.
(1) The operator shall submit material balance support data to the Division at least once a year, or upon request by the Division.
(2) Acceptable reservoir integrity monitoring and analysis methods include, but are not limited to, the following four methods:
(A) Monitoring average reservoir pressure versus inventory and comparing that to expected conditions in order to allow for the discovery and correction of any anomalies or unexpected conditions. Liquid level shall be taken into account when utilizing observation wells. Semiannual field shut-in tests, usually conducted at the point of seasonally high and low inventories, shall be conducted for inventory verification.
(B) Installation and monitoring of strategically located observation wells in the vicinity of spill points, within an aquifer, and above the confining strata. Observation wells shall be in potential collector formations to detect the presence or movement of gas.
(C) Monitoring offset hydrocarbon production or disposal operations for unexplained flow or pressure changes. The monitoring shall include operations in zones above and below the storage reservoir as well as laterally offset locations.
(D) Conducting subsurface correlation and gas identification logs such as gamma ray-neutron logs to confirm the location of gas being injected into the intended storage reservoir, as needed.
(c) The operator shall immediately report to the Division any instance of an unintended surface or cellar gas release of any size, in any location within the area of review of the underground gas storage project. Unless the operator demonstrates that the gas is not from the underground gas storage project or a gas storage well, Division may require the operator to chemically fingerprint the gas from such a release, and the operator shall provide the results of the gas analysis to the Division as soon as they are available.
(d) The operator of an underground gas storage project shall employ a real-time data gathering system, such as Supervisory Control and Data Acquisition, by January 1, 2020. At a minimum, the real-time data gathering system shall be deployed and utilized in accordance with the following requirements:
(1) The real-time data gathering system shall include pressure sensors for every casing annulus and tubing with data transmission to an operations center.
(2) The real-time data gathering system shall have alarms set for each annulus to monitor for pressure indicative of potential leaks or potential migration of gas. The alarms shall alert the operations center if pressure exceeds preconfigured set points. For tubing, the alarm set point shall not be higher than the maximum allowable injection pressure at the wellhead. For the annulus between production casing and tubing, the alarm set point shall be determined based on annular fluid, the initial pressure when the packer was set, and operational configuration. For strings without any anticipated surface pressure, such as surface or intermediate casings, the alarm set point shall not be higher than 100 psi or the alarm set point approved under subdivision (d)(3)(C).
(3) If there is sustained casing pressure above 100 psi in a string without anticipated surface pressure, and it is believed to be caused by shallow gas or other fluid migration, then the operator shall do the following:
(A) The operator shall first bleed off annular pressure and track pressure and time for the well to build up pressure back to the observed sustained casing pressure.
(B) Next, the operator shall sample the fluids building up in the annulus and confirm that the accumulation is not due to migration of storage gas by performing chemical fingerprinting or other diagnostic tests approved by the Division.
(C) If the diagnostic testing under subdivisions (A) and (B) confirm that the pressure build-up is not due to migration of storage gas, the operator shall propose an alarm set point to the Division that is no greater than 100 psi above the observed sustained casing pressure, unless such pressure would pose a risk to casing integrity. The operator's proposal shall at a minimum address the results from the diagnostic testing, the effect of the proposed alarm set point pressure on casing integrity, the likely source of pressure and fluid composition determined from chemical fingerprinting, and a long-term monitoring plan. The alarm set point shall not be increased until it has been approved by the Division.
(D) If the observed sustained casing pressure plus 100 psi would pose a risk to the integrity of the casing, then the operator shall develop and implement a plan to address the situation, subject to the Division's approval.
(E) If the testing under subdivisions (A) and (B) indicate that the pressure build-up is due to migration of storage gas, then the operator shall conduct further testing to determine the pathway of migration and take remedial action as needed in accordance with a plan approved by the Division.
(e) The operator of an underground gas storage project shall develop a program, which shall be submitted to the Division for review and approval, to conduct a baseline and subsequent gas detection logs on each gas storage well to detect gas indications behind casing. The operator shall provide the results of the gas detection logs to the Division with comparison of the logs noting any changes in the indicated gas behind the casing. If the comparison indicates increasing gas accumulations behind casing, then the operator shall submit a response plan for the Division's approval.
(f) The operator of an underground gas storage project shall adhere to an inspection and leak detection protocol that has been approved by the Division. The protocol shall include inspection of the wellhead assembly and attached pipelines for each of the gas storage wells used in association with the underground gas storage project, and the surrounding area within a 100-foot radius of the wellhead of each of the wells used in an underground gas storage project. The inspection protocol shall provide for inspection at least once a day, employing effective gas leak detection technology such as infrared imaging, and shall provide for immediately reporting leaks to the Division. The operator's selection and usage of gas leak detection technology shall take into consideration detection limits, remote detection of difficult to access locations, response time, reproducibility, accuracy, data transfer capabilities, distance from source, background lighting conditions, geography, and meteorology. The Division will consult with the California Air Resources Board when reviewing an inspection and leak detection protocol submitted under this subdivision. The requirements of this subdivision shall cease to apply to an underground gas storage project if the California Air Resources Board approves a monitoring plan under its regulations for that facility.

Credits

Note: Authority cited: Sections 3013, 3106 and 3180, Public Resources Code. Reference: Sections 3106, 3180, 3181, 3220 and 3403.5, Public Resources Code.
History
1. New section filed 6-28-2018; operative 10-1-2018 (Register 2018, No. 26).
This database is current through 4/26/24 Register 2024, No. 17.
Cal. Admin. Code tit. 14, § 1726.7, 14 CA ADC § 1726.7
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