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HomeMy WebLinkAboutDWQ-2024-003406 Attachment A General Location Map of the NGLEP NGL Storage Project, Millard County Attachment B Map of the NGLEP NGL Storage Project Area of Review (AOR) including the Class III Permit Area FIGURE:DESCRIPTIONDATENo. DRAWN BY: DESIGNED BY: CHECKED BY: DATE: SCALE: APPROVED: DIMENSIONS: DRAWING DATA UIC PERMIT BOUNDARY 3165 E. MILLROCK DR, SUITE 330 HOLLADAY, UTAH 84121 PHONE: (801) 993-7001 www.westernenergyhub.com ACES DELTA 00 2000'4000' LEGEND ACES Delta Solution Mining, LLC UIC PERMIT BOUNDARY Fi l e n a m e : C: \ U S E R S \ D R O B I N S O N \ M A G N U M D E V E L O P M E N T \ C A D A R C H I V E S - D O C U M E N T S \ 0 7 - S U N R I S E \ U I C 2 0 1 9 \ U I C _ 2 0 2 4 _ 0 3 _ 2 0 . D W G FIGURE:DESCRIPTIONDATENo. DRAWN BY: DESIGNED BY: CHECKED BY: DATE: SCALE: APPROVED: DIMENSIONS: DRAWING DATA UIC PERMIT BOUNDARY 3165 E. MILLROCK DR, SUITE 330 HOLLADAY, UTAH 84121 PHONE: (801) 993-7001 www.westernenergyhub.com ACES DELTA 00 1 mi.2mi. LEGEND ACES Delta Solution Mining, LLC UIC PERMIT BOUNDARY PROJECT BOUNDARY AREA OR REVIEW Fi l e n a m e : C: \ U S E R S \ D R O B I N S O N \ M A G N U M D E V E L O P M E N T \ C A D A R C H I V E S - D O C U M E N T S \ 0 7 - S U N R I S E \ U I C 2 0 1 9 \ U I C _ 2 0 2 4 _ 0 3 _ 2 0 . D W G ACES Delta Solution Mining, LLC New UIC Boundary Commencing at the Southeast corner of Section 22, Township 15 South, Range 7 West, Salt Lake Meridian; thence North 89°17'52" West 2655.50 feet along section line to the South quarter corner of said Section 22; thence North 89°19'02" West 2654.79 feet along section line to Southwest corner of Section 22; thence North 00°44'02" East 2642.33 feet along section line to the West quarter corner of said Section 22; thence North 00°45'42" East 2432.13 feet along section line to its intersection with the southerly right-of-way line of Brush Wellman Road; thence South 77°07'04" East 874.24 feet along said right-of-way; thence South 70°46'11" East 12168.97 feet along said right-of- way; thence South 52°19'38" West 5959.27 feet; thence North 88°31'10" West 2433.34 feet to the East quarter Corner of Section 27, Township 15 South, Range 7 West, Salt Lake Meridian; thence North 89°17'28" West 5301.39 feet along quarter section line to the West quarter corner of said Section 27; thence North 00°54'37" East 2642.81 feet along section line to the POINT OF BEGINNING. Contains 62716123 square feet or 1439.764 acres, more or less. LESS AND EXCEPTING - Commencing at the Southwest corner of Section 23; Township 15 South, Range 7 West, Salt Lake Meridian; thence North 00°18'23" East 1111.06 feet along section line to the POINT OF BEGINNING; thence North 64°34'46" East 73.91 feet; thence South 73°49'13" East 279.34 feet; thence South 00°00'19" West 263.15 feet; thence North 89°42'45" East 146.57 feet; thence North 41°28'46" East 177.23 feet; thence North 89°34'42" East 225.12 feet; thence South 64°31'09" East 305.28 feet; thence South 00°23'34" East 717.88 feet; thence South 65°16'04" East 235.54 feet to a point on the northerly line of Section 26, T15S, R7W, SLM; thence continuing in said section 26 South 65°16'04" East 207.43 feet; thence South 01°23'26" East 1169.62 feet; thence West 401.20 feet; thence North 4.28 feet; thence North 22°43'27" West 467.23 feet; thence South 79°11'34" West 288.07 feet; thence North 51°06'56" West 329.45 feet; thence South 56°39'43" West 187.05 feet; thence South 89°59'34" West 122.48 feet to a curve to the right having a radius of 209.79 feet, a central angle of 45°07'59" and a chord that bears North 67°26'27" West 161.02 feet; thence along said curve northwesterly an arc distance of 165.26 feet to a point on the easterly line of Section 27, T15S, R7W, SLM; thence continuing in said Section 27 along the arc of said curve to the right having a radius of 209.79 feet, a central angle of 20°06'21", and a chord that bears North 34°49'17" West 73.24 feet; thence North 24°46'07" West 122.64 feet; thence North 15°42'36" East 172.98 feet; thence North 00°34'51" East 174.69 feet; thence South 87°34'12" West 258.30 feet; thence North 01°33'30" East 219.21 feet to the southerly line of Section 22, T15S, R7W, SLM; thence South 89°50'49" East 239.59 feet along section line; thence in Said Section 22 North 52°10'01" West 120.19 feet; thence North 30°04'41" West 97.90 feet; thence South 80°30'37" West 242.82 feet; thence North 77°33'20" West 185.78 feet; thence North 24°20'04" West 190.91 feet to a curve to the right having a radius of 350.00 feet, a central angle of 30°50'30" and a chord that bears North 08°54'49" West 186.13 feet; thence along said curve northerly an arc distance of 188.40 feet; thence North 06°30'26" East 200.06 feet; thence North 06°22'38" West 309.11 feet; thence North 06°38'54" East 184.56 feet; thence North 43°13'03" East 145.85 feet; thence North 85°51'44" East 204.23 feet; thence South 61°59'15" East 237.38 feet; thence South 07°46'26" East 147.72 feet; thence South 89°44'16" East 110.58 feet; thence North 64°34'46" East 98.93 feet to the POINT OF BEGINNING. Contains 3388367 square feet or 77.786 acres, more or less. 3/20/2024 File: UICBndry-REV4-2024.ndpScale: 1 inch= 1597 feet Tract 1: 1439.7641 Acres, Closure: s80.5633w 0.01 ft. (1/999999), Perimeter=34454 ft. Tract 2: 77.7828 Acres, Closure: s15.0334e 0.02 ft. (1/418887), Perimeter=9691 ft. n00°44'02"e 2642.33 n00°45'42"e 2432.13 5 s70°46'11"e12168.97 s 5 2 °1 9'3 8 "w 5 9 5 9 .2 7 n88°31'10"w 2433.34n89°17'28"w 5301.39 n00°54'37"e 2642.81 Tract Data and Deed Calls: File= UICBndry-REV4-2024.ndp Tract 01: 1439.7641 Acres, Closure: s80.5633w 0.01 ft. (1/999999), Perimeter=34454 ft. Tract 02: 77.7828 Acres, Closure: s15.0334e 0.02 ft. (1/418887), Perimeter=9691 ft. Tract 02: 77.7828 Acres, Closure: s15.0334e 0.02 ft. (1/418887), Perimeter=9691 ft. 1: /n89.1752w 2655.5 2: /n89.1902w 2654.79 3: n00.4402e 2642.33 4: n00.4542e 2432.13 5: s77.0704e 874.24 6: s70.4611e 12168.97 7: s52.1938w 5959.27 8: n88.3110w 2433.34 9: n89.1728w 5301.39 10: n00.5437e 2642.81 11: @0 12: /n00.1823e 1111.06 13: n64.3446e 73.91 14: s73.4913e 279.34 15: s00.0019w 263.15 16: n89.4245e 146.57 17: n41.2846e 177.23 18: n89.3442e 225.12 19: s64.3109e 305.28 20: s00.2334e 717.88 21: s65.1604e 235.54 22: s65.1604e 207.43 23: s01.2326e 1169.62 24: s90w 401.2 25: n0e 4.28 26: n22.4327w 467.23 27: s79.1134w 288.07 28: n51.0656w 329.45 29: s56.3943w 187.05 30: s89.5934w 122.48 31: curve right radius 209.79 arc 165.26 chord dir n67.2627w chord dist 161.02 32: n34.4917w 73.24 33: n24.4607w 122.64 34: n15.4236e 172.98 35: n00.3451e 174.69 36: s87.3412w 258.3 37: n01.3330e 219.21 38: s89.5049e 239.59 39: n52.1001w 120.19 40: n30.0441w 97.9 41: s80.3037w 242.82 42: n77.3320w 185.78 43: n24.2004w 190.91 44: curve right radius 350 arc 188.4 delta 030.5030 chord dir n08.5449w chord dist 186.13 45: n06.3026e 200.06 46: n06.2238w 309.11 47: n06.3854e 184.56 48: n43.1303e 145.85 49: n85.5144e 204.23 50: s61.5915e 237.38 51: s07.4626e 147.72 52: s89.4416e 110.58 53: n64.3446e 98.93 Attachment C Corrective Action Plan for Artificial Penetrations into Injection Zone within Area of Review As of the effective date of this permit modification there are no wells requiring corrective action. Attachment D Construction and Cavern Development Plan UIC Technical Report January 24, 2017 53 PART G Injection Well Construction Plan Prior to receiving an authorization to drill an injection well in the Permit Area, Magnum will submit to the DWQ for approval by the Utah Division of Water Quality Director a dedicated Cavern Construction and Development Plan (CCDP) for injection wells being drilled for the specific type of storage product (natural gas, CAES, refined products, crude, etc.). This requirement is in accordance with UIC Permit condition Part III D(2). The CCDP will comply with the federal and state regulations 40CFR146.32 and R317-7-10.1(B) for the construction of Class III injection wells, state rules R649-3-6, R649-3-13, R649-3-7.4 for drilling and casing testing, and the industry standard API RP 1170 for the development of natural gas storage caverns. Magnum will also comply with permit conditions that pertain to the drilling and construction of the well and to cavern development. The purpose of the CCDP is to outline clear processes and procedures for the construction of storage caverns wells (drilling and injection well installation) and development (solution mining) of storage caverns within the Permit Area. The CCDP will provide detailed methods for cavern well construction to include a typical injection well design that will be adapted to the location of each individual injection well at the time of construction. It should be noted that the typical design was previously determined in consultation with both the DWQ and the DOGM, the agency with joint oversight over the drilling of the injection wells and sole oversight over the operations of the storage caverns (Eyermann 2010; PBESS 2010). In addition, this design has been used for the successful construction of the five injections wells that are now owned and operated by NGL Supply Terminal Solution Mining, LLC. The typical design includes a well head, five cemented casings, and two hanging casing strings . A schematic for this design is provided in Figure H-1.1 of Part H. The injection well is designed to provide a strong foundation for mechanical integrity of both the cavern well and storage cavern during storage operations as well as protect against the potential for groundwater contamination. The cavern well casing design includes three casings designed to protect the USDWs: one surface casing; two water protection casing strings, one cemented in the freshwater zone and the other to the top of the salt; two casing strings cemented into the upper section salt; and, two hanging strings. The two guiding principles of the cavern well design are: 1) to support injection and production from the completed storage cavern at rates between 2,500 gpm and 6,000 gpm; and, 2) sizing the casing to allow for the use of hanging casing strings for solution mining at rates between 2,500 gpm and 6,000 gpm. The various casing strings included in the typical design are therefore sized to withstand foreseeable collapse, burst and tensile forces that might act upon the casing due to these rates. In addition, the CCDP will include procedures for the typical installation of an injection well which will be adapted at the time of construction to meet the specific requirements of the well location within the Permit Area. The installation procedures will consist of a general drilling plan with well condition, welding, and cementing protocols and materials specifications. The CCDP will also include a solution mining plan that will described in Part I. Once approved by the Director, UIC Technical Report January 24, 2017 54 the CCDP will become an enforceable attachment to the UIC Permit and any subsequent changes will have to be authorized by the agency. UIC Technical Report January 24, 2017 55 PART H Injection Well Construction Details As stated in Part G, prior to receiving an authorization to drill an injection well in the Permit Area, Magnum will submit to the DWQ for approval by the Utah Division of Water Quality Director a dedicated CCDP for injection wells being drilled for the specific type of storage product (natural gas, CAES, refined products, crude, etc.). This requirement is in accordance with UIC Permit condition Part III D(2). The CCDP will include: a schematic for the injection well casing design; a one-line P & ID diagram; a typical cavern well piping plan; and, a storage wellhead schematic. Figure H-1.1 depicts an injection well casing design schematic for a typical Magnum injection well. This “typical” design was the basis for the five operating injection wells that have been successfull y constructed within the salt structure. As described in Part G, the design was determined in consultation with the DWQ and DOGM and includes a well head, five concentric casings cemented to the ground surface, and two hanging strings used for the injection and withdrawal of the stored product. Two of the five casings are drilled directly into the salt and cemented to the surface in order to ensure continuous protection of the groundwater bearing units and USDWs overlaying the salt structure. This design meets all federal and state requirements and industry standards. UIC Technical Report January 24, 2017 56 UIC Technical Report January 24, 2017 57 PART I Injection Well Operation Plan and Procedures Prior to receiving an authorization to drill a cavern in the Permit Area, Magnum will submit to the DWQ for approval by the Utah Division of Water Quality Director a dedicated Cavern Construction and Development Plan (CCDP) for injection wells being drilled for the specific type of storage product (natural gas, CAES, refined products, crude, etc.). This requirement is in accordance with UIC Permit condition Part III D(2). The CCDP will comply with the federal and state regulations 40CFR146.32 and R317-7-10.1(B) for the construction of Class III injection wells, state rules R649-3-6, R649-3-13, R649-3-7.4 for drilling and casing testing, and the industry standard API RP 1170. Once approved by the Director, the CCDP will become an enforceable attachment to the UIC Permit and any subsequent changes will have to be authorized by the agency. As described in Part G, the purpose of the CCDP is to outline clear processes and procedures for both the construction of storage caverns wells (drilling and injection well installation) and development (solution mining) of storage caverns within the Permit Area. The CCDP will provide detailed methods for the typical solution mining plan that will be adapted to the location of each individual injection well at the time of construction. It should be noted that a typical design has been previously approved and used for the successful construction of the five injections wells under the DWQ UIC Program that are now owned and operated by NGL Supply Terminal Solution Mining, LLC. The typical solution mining plan was been developed using a cavern simulation modeling program such as SalGas or SaltCav3D that simulates mining asymmetrically around the well. Both are industry-accepted cavern simulation programs developed for the Solution Mining Research Institute. There are other industry accepted models that can also be used. The model simulates the growth of the cavern during the solution mining process. The basic inputs for the model include: an average insoluble content; the average radii of the well, the depth of the water injection and brine production strings, the depth of product level, water injections rates, and the duration of mining to reach the desired cavern volume or capacity (Eyermann 2010). In addition to the typical solution mining plan in the CCDP, Magnum will create specific solution mining plans for each individual injection well at the time of construction. These individual plans will be adapted from the typical to account for the location of injection wells within the salt structure. The general solution mining process includes first injecting a “blanket” material into the injection well from the surface to a prescribed level below the final cemented casing shoe. This material is typically nitrogen or diesel and will keep the solution mining activity below the shoe to protect the integrity that shoe and to control the shape and rate of the development of the cavern. Fresh water is then injected through the tubing and circulated in the injection well hole to dissolve salt. Once the fresh water is saturated with salt, the resulting brine is withdrawn from the injection well and stored in an evaporation pond at the surface. When the design volume of the cavern is complete, solution mining will be stopped and a Mechanical Integrity Test (MIT) will be completed to assure the integrity of the cavern. A successful MIT will allow the cavern to be placed into commercial service under DOGM jurisdiction. The solution mining process will be continuously monitored so that modifications to any of the solution mining plan parameters can UIC Technical Report January 24, 2017 58 be made to account for unanticipated or non-symmetrical growth. Part J provides the details for the monitoring and reporting requirements under the UIC Permit. DWQ-2019-002564 Attachment E Monitoring, Recording, and Reporting Plan UIC Technical Report January 24, 2017 59 PART J Monitoring, Recording, and Reporting Plan Prior to receiving an authorization to drilling a cavern in the Permit Area, Magnum will submit to the DWQ for approval by the Utah Division of Water Quality Director a dedicated Monitoring, Recording, and Reporting Plan (MRRP) for injection wells being drilled for the specific type of storage product (natural gas, CAES, refined products, crude, etc.). This requirement is in accordance with UIC Permit condition Part III E(2). The MRRP will comply with federal and state regulations 40CFR144.54 and R317-7-10.3(B) and industry standard API RP 1170 for the development of natural gas storage caverns. Magnum will also comply with permit conditions that pertain to the drilling and construction of the well and to cavern development. The purpose of the MRRP is to outline clear processes and procedures for the monitoring, reporting and recording of solution mining activities for storage caverns within the Permit Area. The MRRP will include detailed methods and type of equipment necessary to monitor, document, and report: the minimum and maximum operating pressures; the development of the cavern volume and shape; the brine/nitrogen interface and pressure, volume and temperature of the nitrogen blanket; the characterization of the injected fluids; the daily flow rate, saturation, pressure and temperature of injected water; the daily flow rate, saturation, pressure and temperature of produced brine; and, the weekly analysis of the composition of produced brine. In addition, the MRRP will include detailed methods for the mechanical integrity testing of injection wells during drilling (casing pressure tests), prior to solution mining, and prior to the DWQ providing authorization to initiate storage operations. Once storage operations of a cavern have commenced, mechanical integrity will continue to be tested periodically in accordance with the requirements set forth by the DOGM. The schedule for the required reporting will also be included in the MRRP. Once approved by the Director, the MRRP will become an enforceable attachment to the UIC Permit and any subsequent changes will have to be authorized by the agency. DWQ-2019-002565 Attachment F Well and Cavern Closure and Abandonment Plan Plan for Plugging and Abandonment of Class III Solution Mining Wells and Caverns before Gas Storage The following procedures are provided as a general guideline. Actual plugging measures would be submitted in advance to DWQ (prior to commencement of gas storage). 1. At least 45 days before the planned plugging, Magnum will notify the DWQ Executive Secretary of the proposed plugging with a Well Condition Report and a well-specific Plugging and Abandonment Plan. 2. The Well Condition Report will include a discussion of the following: a. The results of the well's most recent mechanical integrity test, b. The location of any leaks or perforations in the casing, c. The location of any vertical migration of fluids behind the casing, and d. The adequacy of casing cement bonding across the salt formation, as determined from cement bond logs run at the time of well construction or just prior to well abandonment. 3. All nitrogen or other blanket material will be removed and the cavern will be filled with saturated brine water. 4. All free hanging tubing will be pulled from the well. 5. The exact depth to the bottom of the cemented production casing will be determined. 6. A drillable plug capable of supporting a cement plug will be installed in the cemented casing with the bottom of the plug within 10 feet of the end of the casing. 7. All cement plugs to be Class G cement with no additives and slurry weight of 14.5 pounds per gallon or more. 8. The entire wellbore from the bridge plug to surface will be filled with cement. 9. In the event the cemented casing is determined to be leaking, the casing will be perforated at the level of the leak and cement squeezed into the perforations. 10. An alternative technique which could be used involves setting the following plugs. a. Bottom plug: A 300-foot plug from the plug at the bottom of the production casing upward. b. Surface casing plug: A 150-foot plug from 75 feet below the bottom of the surface casing upward. c. Top plug: A 50-foot plug from 50 feet below surface grade upward to surface. d. The casing between each of the plugs shall be filled with a noncorrosive mud slurry of at least 10 pounds per gallon weight. 11. Upon completion of the plugging operation, all reports will be filed in accordance with DWQ rules as applicable. PUBLIC COPY Magnum UIC Class III Permit Modification October 20, 2011 61 Part L – 16-inch Injection Well Plugging and Abandonment Plan The following procedures are provided as a general guideline. Actual plugging measures will be submitted in advance to DWQ (prior to commencement of product storage) or DOGM (after commencement of storage operations) for approval. 1.Form DOGM-9 will be submitted (after commencement of product storage) for procedural approval. 2.All stored product will be removed and the cavern will be filled with saturated brine water. 3.All free hanging tubing will be pulled from the well. 4.The exact depth to the bottom of the cemented production casing will be determined. 5.A drillable plug capable of supporting a cement plug will be installed in the cemented casing with the bottom of the plug within 10 feet of the end of the casing. 6.The following plugs will be placed. All cement plugs will be Class G cement with no additives and the slurry weight will be 14.5 pounds per gallon or more. a.Bottom plug: A 300-foot plug from the plug at the bottom of the production casing upward. b.Surface casing plug: A 150-foot plug from 75 feet below the bottom of the surface casing upward. c.Top plug: A 75-foot plug from 75 feet below surface grade upward to surface. 7.The casing between each of the plugs shall be filled with a non-corrosive mud slurry of at least 10 pounds per gallon weight. 8.An alternative technique that could be used involves filling the entire wellbore with cement. 9.Upon completion of the plugging operation, all reports will be filed in accordance with DWQ or DOGM rules as applicable. DWQ-2019-002566 Attachment G Financial Responsibility