55-1,117. Same; department of health and environment regulation of other underground storage. - Kansas Statutes

55-1,117

Chapter 55.--OIL AND GAS Article 1.--OIL AND GAS WELLS; REGULATORY PROVISIONS

      55-1,117.   Same; department of health and environmentregulation of other underground storage.(a) As used in this section, K.S.A. 65-171d and K.S.A. 55-1,118through 55-1,122, andamendments thereto:

      (1)   "Company or operator" means any form of legal entity including, butnot limited to, a corporation, limited liability company and limited or generalpartnerships.

      (2)   "Secretary" means the secretary of health and environment.

      (3)   "Underground porosity storage" means the storage ofhydrocarbons inunderground,porous and permeable geological strata which have been converted to hydrocarbonstorage.

      (b)   For the purposes of protecting the health, safety andproperty of the people of the state, andpreventing surface and subsurface water pollution and soil pollutiondetrimental to public health or to the plant, animal and aquatic life of thestate, the secretary of health and environment shall adopt separate andspecific rules and regulations establishing requirements, procedures andstandards for the following:

      (1)   Salt solution mining;

      (2)   the safe and secure underground storage of liquid petroleum gas andhydrocarbons, other than natural gas in underground porosity storage; and

      (3)   the safe and secure underground storage of natural gas in bedded salt.

      (c)   Such rules and regulations shall include, but not be limited to:

      (1)   Site selection criteria;

      (2)   design and development criteria;

      (3)   operation criteria;

      (4)   casing requirements;

      (5)   monitoring and measurement requirements;

      (6)   safety requirements, including public notification;

      (7)   closure and abandonment requirements, including the financialrequirements of subsection (f); and

      (8)   long term monitoring.

      (d) (1)   The secretary may adopt rules andregulationsestablishing fees for the following services:

      (A)   Permitting, monitoring and inspecting salt solution mining operators;

      (B)   permitting, monitoring and inspecting underground storage of liquidpetroleum gas and hydrocarbons, other than natural gas in underground porositystorage; and

      (C)   permitting, monitoring and inspecting underground storage of natural gasin bedded salt.

      (2)   The fees collected under this section by the secretaryshall be remitted by the secretary to the state treasurer inaccordance with the provisions of K.S.A. 75-4215, and amendments thereto. Uponreceipt of each such remittance, the state treasurer shall deposit the entireamount in the state treasury to the credit of the subsurface hydrocarbonstorage fund.

      (e)   The secretary or the secretary's duly authorized representative mayimpose on anyholder of a permit issued pursuant to this section such requirements relatingto inspecting,monitoring, investigating, recording and reporting as the secretary orrepresentative deemsnecessary to administer the provisions of this section and rules andregulations adoptedhereunder.

      (f)   Any company or operator receiving a permit under the provisions of thisact shall demonstrate annually to the department of health and environmentevidence, satisfactory to the department, that such permit holders havefinancial ability to cover the cost of closure of such permitted facility asrequired by the department.

      (g)   The secretary may enter into contracts forservices from consultants and other experts for the purposes of assisting inthe drafting of rules and regulations pursuant to this section.

      (h) (1)   For a period of two years from July 1, 2001, or until the rules andregulations provided for in subsection(b)(3) areadopted, theinjection of working natural gas into underground storage in bedded saltis prohibited,except that cushion gas may be injected into existing underground storage inbedded salt. Natural gas currently stored in such underground storage may beextracted.

      (2)   Any existing underground storage of natural gas in bedded salt shallcomply with the rules and regulations adopted under this section prior to thecommencement of injection of working natural gas into such undergroundstorage.

      (3)   Rules and regulations adopted under subsection(b)(3)shallbe adopted on or before July 1, 2003.

      (i)   No hydrocarbon storage shall be allowed in any underground formation ifwater withinthe formation contains less than 5,000 milligrams per liter chlorides.

      History:   L. 2001, ch. 191, § 9;L. 2009, ch. 141, § 40; May 28.