IDAPA 20 - DEPARTMENT OF LANDS

20.07.02 - CONSERVATION OF CRUDE OIL AND NATURAL GAS IN THE STATE OF IDAHO

DOCKET NO. 20-0702-1102

NOTICE OF RULEMAKING - ADOPTION OF PENDING RULE AND TEMPORARY RULE

EFFECTIVE DATE: The effective date of the temporary rule is December 21, 2011. This rule has been adopted by the agency and is now pending review by the 2012 Idaho State Legislature for final approval. The pending rule becomes final and effective at the conclusion of the legislative session, unless the rule is approved, rejected, amended or modified by concurrent resolution in accordance with Section 67-5224 and 67-5291, Idaho Code. If the pending rule is approved, amended or modified by concurrent resolution, the rule becomes final and effective upon adoption of the concurrent resolution or upon the date specified in the concurrent resolution.

AUTHORITY: In compliance with Section 67-5224 and 67-5226, Idaho Code, notice is hereby given that this agency has adopted a pending rule and is also adopting a temporary rule. The action is authorized pursuant to Section 47-317(b), Idaho Code.

DESCRIPTIVE SUMMARY: The following is the required finding and concise statement of its supporting reasons for adopting a temporary rule and a concise explanatory statement of the reasons for adopting the pending rule and a statement of any change between the text of the proposed rule and the text of the pending rule.

The existing rules are almost twenty years old, and industry practices and expectations have changed considerably. The rule changes are needed to ensure that oil and gas development in Idaho is conducted in a manner that prevents waste of oil and gas, protects correlative rights, and protects Idaho's fresh water supplies as required by Section 47-3, Idaho Code. The temporary rule is needed to protect the public health, safety, and welfare.

Rule format is revised to conform with Title 67, Chapter 52, Idaho Code, and IDAPA 44.01.01, "Rules of the Administrative Rules Coordinator." Definitions are changed for consistency and clarity. Well drilling permit requirements are expanded to ensure that the department has the information needed to properly review them. A public comment period on applications is added. Application, operating, and reporting requirements for well treatments, including hydraulic fracturing, are added. Bond amounts are increased and additional bonding requirements are added to decrease the potential well plugging liabilities present in other states. Basic surface owner protections are added, and geophysical exploration requirements are expanded, to reduce conflicts between surface and mineral owners and thereby enhance orderly development of oil and gas resources. Well drilling and plugging rules are modified to better prevent waste and protect fresh waters. Comprehensive pit requirements and surface reclamation standards are added to protect fresh waters. Well completion and well log reporting is clarified to improve the flow of information and stimulate additional exploration. Active and inactive wells are defined to reduce the potential liability of abandoned wells. The periodic testing of well integrity is added to prevent waste and protect fresh waters. Class II injection wells are no longer permitted under this rule as the Idaho Department of Water Resources currently prohibits their use in IDAPA 37.03.03 and they will pursue permitting authority with the Environmental Protection Agency. Basic emergency response requirements were added to ensure that accidents and fires are handled appropriately and public safety issues are addressed. Other sections of the rules addressing wellhead equipment, tools with radioactive material, the pulling of casing, gas-oil ratios, and multiple zone completions were upgraded or added based on the existing standards used in other states to prevent waste, protect correlative rights, and protect fresh water supplies. Responsibilities of the department and the Oil and Gas Conservation Commission are clarified. Multiple documents are incorporated by reference to allow the industry standards to be adopted in Idaho.

A few changes were made to the proposed rule in response to comments received. As part of the public notification process, an electronic copy of certain applications will be forwarded to the local county. The fresh water protections for well treatments were clarified by prohibiting fractures within five hundred (500) vertical feet below all fresh water aquifers. The prohibition on the use of volatile organic compounds or BTEX compounds for hydraulic fracturing was clarified, and some reference errors were corrected. Bonding and pit reclamation requirements were clarified. Surface equipment and the measurement of gas were consolidated and reorganized. Lastly, some well plugging requirements were clarified.

In accordance with Section 67-5226, Idaho Code, the full text of the temporary rule is being published in this Bulletin following this notice and includes changes made to the pending rule. The text of the pending rule has been modified in accordance with Section 67-5227, Idaho Code. The original text of the proposed rule was published in the October 5, 2011 Idaho Administrative Bulletin, Vol. 11-10, pages 454 through 497.

TEMPORARY RULE JUSTIFICATION: Pursuant to Section(s) 67-5226(1)(a), Idaho Code, the Governor has found that temporary adoption of the rule is appropriate for the following reasons: Protection of the public health, safety, or welfare

FISCAL IMPACT: The following is a specific description, if applicable, of any negative fiscal impact on the state general fund greater than ten thousand dollars ($10,000) during the fiscal year: N/A

ASSISTANCE ON TECHNICAL QUESTIONS: For assistance on technical questions concerning the pending rule, contact Eric Wilson, Minerals Program Manager, at (208) 334-0261 or ewilson@idl.idaho.gov.

DATED this 21st day of December, 2011.

Eric Wilson
Minerals Program Manager
Idaho Department of Lands
PO Box 83720
Boise, Idaho 83720-0050
(208) 334-0261
Fax (208) 334-3698
ewilson@idl.idaho.gov

DOCKET NO. 20-0702-1102 - ADOPTION OF PENDING RULE AND ADOPTION OF TEMPORARY RULE

Substantive changes have been made to the pending rule.

Language That Has Been Deleted From The Original Proposed Rule Has Been Removed And Italicized text that is underscored is new text that is being added.

This is also an amendment to the pending rule text.

The text of the proposed rule was published in the Idaho Administrative Bulletin, Volume 11-10, October 5, 2011, pages 95 through 98.

This rule has been adopted as a pending rule by the Agency and is now awaiting review and approval by the 2012 Idaho State Legislature for final adoption.

Pursuant to Section 67-5226, Idaho Code, the full text of the temporary rule is being published in this Bulletin.

THE FOLLOWING IS THE TEXT OF THE TEMPORARY RULE AND THE PENDING RULE TEXT FOR DOCKET NO. 20-0702-1102

000. (RESERVED) LEGAL AUTHORITY.

This Chapter is adopted under the legal authorities of Title 58, Chapter 1, Sections 58-104(6), 58-105, and 58-127, Idaho Code; Title 47, Chapter 3, Idaho Code; and Title 67, Chapter 52, Idaho Code. (12-21-11)T

001. TITLE AND SCOPE.

General rules shall be statewide in application unless otherwise specifically stated. These rules set forth the policy and procedures for the conservation of crude oil and gas. (10-21-92)

01. Title. These rules shall be cited as IDAPA 20.07.02, "Rules Governing Oil and Gas Conservation in the State of Idaho." (12-21-11)T

02. Scope. These rules apply to the exploration and extraction of any and all crude oil and natural gas resources in the state of Idaho, not including biogas, manufactured gas, or landfill gas, regardless of ownership. (12-21-11)T

03. Other Laws. Owners or operators engaged in the exploration and extraction of crude oil and natural gas resources shall comply with all applicable laws and rules of the state of Idaho including, but not limited to the following: (12-21-11)T

a. Idaho water quality standards and waste water treatment requirements established in Title 39, Chapter 1, Idaho Code; IDAPA 58.01.02, "Water Quality Standards"; IDAPA 58.01.16, "Wastewater Rules"; and IDAPA 58.01.11, "Ground Water Quality Rule," administered by the IDEQ. (12-21-11)T

b. Idaho air quality standards established in Title 39, Chapter 1, Idaho Code and IDAPA 58.01.01 "Rules for the Control of Air Pollution in Idaho," administered by the IDEQ. (12-21-11)T

c. Requirements and procedures for hazardous and solid waste management, as established in Title 39, Chapter 44, Idaho Code, and rules promulgated thereunder including IDAPA 58.01.05, "Rules and Standards for Hazardous Waste"; IDAPA 58.01.06, "Solid Waste Management Rules"; and IDAPA 58.01.10, "Rules Regulating the Disposal of Radioactive Materials Not Regulated Under the Atomic Energy Act of 1954, As Amended," administered by the IDEQ. (12-21-11)T

d. Idaho Stream Channel Protection Act, Title 42, Chapter 38, Idaho Code, and rules promulgated thereunder including IDAPA 37.03.07, "Stream Channel Alteration Rules," administered by the IDWR. (12-21-11)T

e. Injection Well Act, Title 42, Chapter 39, Idaho Code and rules promulgated thereunder including IDAPA 37.03.03, "Rules and Minimum Standards for the Construction and Use of Injection Wells," administered by the IDWR. (12-21-11)T

f. Department of Water Resources - Water Resource Board Act, Title 42, Chapter 17, Idaho Code and rules promulgated thereunder including IDAPA 37.03.06, "Safety of Dams Rules," administered by the IDWR. (12-21-11)T

002. WRITTEN INTERPRETATIONS.

The Idaho Department of Lands maintains written interpretations of its rules which may include, but may not be limited to, written procedures manuals and operations manuals and other written guidance which pertain to the interpretation of the rules of this chapter. Copies of the procedures manuals and operations manuals and other written interpretations, if applicable, are available for public inspection and copying at the director's office of the Idaho Department of Lands, 300 North 6th Street, Suite 103, Boise, Idaho. (12-21-11)T

003. ADMINISTRATIVE APPEALS.

Any person aggrieved by any final decision or order of the Commission shall be entitled to judicial review pursuant to the provisions of Title 67, Chapter 52, Idaho Code, IDAPA 20.01.01, Title 47, Chapter 3, Idaho Code, and IDAPA 20.07.01, "Rules of Practice and Procedure before the Idaho Oil and Gas Conservation Commission." (12-21-11)T

004. INCORPORATION BY REFERENCE.

The following documents are incorporated by reference into these rules: (12-21-11)T

01. API Bulletin E3, Well Abandonment and Inactive Well Practices for U.S. Exploration and Production Operations, Environmental Guidance Document. 1st Edition, January 1993 and Reaffirmed June 2000 available at the office of the Idaho Department of Lands at 300 North 6th Street, Suite 103. (12-21-11)T

02. API SPEC 5CT, Specifications for Casing and Tubing. The 8th edition dated July, 1, 2005 and the amendments dated March, 31, 2006 and April, 7, 2006 are available at the office of the Idaho Department of Lands at 300 North 6th Street, Suite 103. (12-21-11)T

03. API SPEC 10a, Specification for Cements and Materials for Well Cementing. The 24th Edition dated December, 2010 is available at the office of the Idaho Department of Lands at 300 North 6th Street, Suite 103. (12-21-11)T

04. ASTM D698-07e1, Standard Test Methods for Laboratory Compaction Characteristics of Soil Using Standard Effort (12,400 ft-lbf/ft3 (600 kN-m/m3)). 2007 revision. Available at the office of the Idaho Department of Lands at 300 North 6th Street, Suite 103. (12-21-11)T

05. ASTM D1250-08, Standard Guide for Use of the Petroleum Measurement Tables. 2008 revision. Available at the office of the Idaho Department of Lands at 300 North 6th Street, Suite 103. (12-21-11)T

06. ASTM D1557-09, Standard Test Methods for Laboratory Compaction Characteristics of Soil Using Modified Effort (56,000 ft-lbf/ft3 (2,700 kN-m/m3)). 2009 revision. Available at the office of the Idaho Department of Lands at 300 North 6th Street, Suite 103. (12-21-11)T

07. EPA SW-846 Method 9090A, Compatibility Test for Wastes and Membrane Liners. Revision 1, July 1992. Available at the office of the Idaho Department of Lands at 300 North 6th Street, Suite 103 and this website: http://www.epa.gov/osw/hazard/testmethods/sw846/pdfs/9090a.pdf. (12-21-11)T

08. OSHA Standard 1910.1200 (Hazard Communication). Last revised 1996. Available at the office of the Idaho Department of Lands at 300 North 6th Street, Suite 103 and this website: http://www.osha.gov/pls/oshaweb/owadisp.show_document?p_table=standards&p_id=10099. (12-21-11)T

005. OFFICE -- OFFICE HOURS -- MAILING ADDRESS AND STREET ADDRESS.

The principal place of business of the Idaho Department of Lands is 300 North 6th Street, Suite 103, Boise, Idaho and it is open from 8 a.m. To 5 p.m., Monday through Friday, except legal holidays. The mailing address is: Idaho Department of Lands, P.O. Box 83720, Boise, Idaho 83720-0050. The telephone number of the office is (208) 334-0200 and the fax number is (208) 334-2339. (12-21-11)T

006. PUBLIC RECORDS ACT COMPLIANCE.

01. Promulgation. The rules contained herein have been promulgated according to the provisions of Title 67, Chapter 52, Idaho Code, and are public records. (12-21-11)T

02. Confidentiality. Information obtained by the Department under these rules is subject to public disclosure pursuant to the provisions of Title 9, Chapter 3, Idaho Code. Upon request in any application or material submitted to the Department, confidentiality protection shall be provided for trade secrets consistent with Section 9-340D(1), Idaho Code, and for "[a]rchaeological and geologic records concerning exploratory drilling, logging, mining and other excavation" consistent with Section 9-340E(2), Idaho Code. Only those parts of an application or other materials that fall under these provisions of Section 9-340, Idaho Code, can be held as confidential. The owner or operator shall not unreasonably designate other parts of their application or other materials as confidential. (12-21-11)T

0027. -- 009. (RESERVED)

010. DEFINITIONS.

Unless the context otherwise requires, the words defined shall have the following meaning when found in these rules: (10-21-92)

01. Act. The Idaho Oil and Gas Conservation Act, Title 47, Chapter 3, Idaho Code. (10-21-92)

02. Active Well. A permitted well used for production, disposal, or injection that is not idled for more than twenty-four (24) continuous months. (12-21-11)T

023. Barrel. Forty-two (42) U. S. gallons at sixty (60) Degrees F at atmospheric pressure. (10-21-92)

034. Blowout. An unplanned sudden or violent escape of oil or natural gas, as fluids from a drilling well when high formational pressure is encountered. (10-21-92)(12-21-11)T

045. Blowout Preventer. A heavy casinghead control equipped with special gates or rams that can be closed around the drill pipe, or that completely closes the top of the casing. (10-21-92)(12-21-11)T

056. Casing Pressure. The pressure built up within the casing or between the casing, and tubing, when the casing and tubing are packed off at the top of the well or drill pipe. (10-21-92)(12-21-11)T

07. Casinghead. A metal flange attached to the top of the conductor pipe that is the primary interface for the diverter system during drilling out for surface casing. (12-21-11)T

068. Casinghead Gas. Any gas or vapor, or both gas and vapor, indigenous to an oil stratum and produced from such stratum with oil. (10-21-92)(12-21-11)T

079. Commission. The Oil and Gas Conservation Commission of the state of Idaho. (10-21-92)

0810. Common Source of Supply. Synonymous with pool. The geographical area or horizon definitely separated from any other such area or horizon and which contains, or from competent evidence appears to contain, a common accumulation of oil or gas or both. Any oil or gas field or part thereof which comprises and includes any area which is underlaid, or which from geological or other scientific data or experiments or from drilling operations or other evidence appears to be underlaid by a common pool or accumulation of oil or gas or both oil and gas. (10-21-92)

09. Condensate. Liquid hydrocarbons that were originally in the gaseous phase in the reservoir. (10-21-92)

11. Completion. An oil well shall be considered completed when the first new oil is produced through wellhead equipment into lease tanks from the ultimate producing interval after the production casing has been run. A gas well shall be considered completed when the well is capable of producing gas through wellhead equipment from the ultimate producing zone after the production casing has been run. (12-21-11)T

12. Conductor Pipe. The first and largest diameter string of casing to be installed in a well. This casing extends from land surface to a depth great enough to keep surface waters from entering and loose earth from falling in the hole and to provide anchorage for the diverter system prior to setting surface casing. (12-21-11)T

103. Cubic Foot of Gas. The volume of gas contained in one (1) cubic foot of space at a standard pressure base and a standard temperature base. The standard pressure base shall be fourteen point and seventy-three hundredths (14.73) pounds per square inch absolute and the standard temperature base shall be sixty (60) Degrees F. (10-21-92)(12-21-11)T

114. Day. A period of twenty-four (24) consecutive hours from 8 a.m. one day to 8 a.m. the following day. (10-21-92)(12-21-11)T

15. Department. The Idaho Department of Lands or its designee. (12-21-11)T

126. Development. Any work which actively promotes bringing in production. (10-21-92)

13. Developed Area. A spacing unit on which a well has been completed that is capable of producing oil or gas, or the acreage that is otherwise attributed to a well by the Commission. (10-21-92)

147. Director. The Director head of the Idaho Department of Lands and secretary to the Oil and Gas Conservation Commission, or his designee. (10-21-92)(12-21-11)T

18. Drilling Logs. The recorded description of the lithologic sequence encountered in drilling a well, and any electric, gamma ray, geophysical, or other logging done in the hole. (12-21-11)T

159. Field. The general area underlaid by one (1) or more pools. (10-21-92)

16. Gas. All natural gas and all other fluid hydrocarbons not herein below defined as oil, including condensate because it originally was in the gaseous phase in the reservoir. (10-21-92)

20. Fresh Water. All surface waters and those ground waters that are used, or may be used in the future, for drinking water, agriculture, aquaculture, or industrial purposes other than oil and gas development. The possibility of future use is based on hydrogeologic conditions, water quality, future land use activities, and social/economic considerations. (12-21-11)T

1721. Gas-Oil Ratio. The volume of gas produced in standard cubic feet to each stock tank barrel of oil or condensate produced concurrently during any stated period. (10-21-92)(12-21-11)T

1822. Gas Well. (10-21-92)

a. A well which produces primarily natural gas only; (10-21-92)(12-21-11)T

b. Any well capable of producing gas in commercial quantities and also producing oil from the same common source of supply but not in commercial quantities; or (10-21-92)

c. Any well classed as a gas well by the Commission for any reason. (10-21-92)

19. Just and Equitable Share of the Production. As to each person, that part of the production from the pool that is substantially in the proportion that the amount of recoverable oil or gas or both in the developed area of the person's tract(s) in the pool bears to the recoverable oil or gas or both in the total of the developed areas in the pool. (10-21-92)

23. Geophysical or Seismic Operations. Any geophysical method performed on the surface of the land utilizing certain instruments operating under the laws of physics respecting vibration or sound to determine conditions below the surface of the earth that may contain oil or gas and is inclusive of, but not limited to, the preliminary line survey, the acquisition of necessary permits, the selection and marking of shot-hole locations, necessary clearing of vegetation, shot-hole drilling, implantation of charge, placement of geophones, detonation and backfill of shot-holes, and vibroseis. (12-21-11)T

24. Hydraulic Fracturing, or Fracing. A method of stimulating or increasing the recovery of hydrocarbons by perforating the production casing and injecting fluids or gels into the potential target reservoir at pressures greater than the existing fracture gradient in the target reservoir. (12-21-11)T

25. Inactive Well. An unplugged well that has no reported production, disposal, injection, or other permitted activity for a period of greater than twenty-four (24) continuous months, and for which no extension has been granted. (12-21-11)T

26. Intermediate Casing. The casing installed within the well to seal intermediate zones above the anticipated bottom hole depth. The casing is generally set in place after the surface casing and before the production casing. (12-21-11)T

27. Junk. Debris in a hole that impedes drilling or completion. (12-21-11)T

208. Lease. A tract(s) of land which by virtue of an oil and gas lease, fee or mineral ownership, a drilling, pooling or other agreement, a rule, regulation or order of a governmental authority, or otherwise constitutes a single tract or leasehold estate for the purpose of the development or operation thereof for oil or gas or both. (10-21-92)

21. Oil. Crude petroleum oil and all other hydrocarbons, regardless of gravity, that are produced in liquid form by ordinary production methods but does not include liquid hydrocarbons that were originally in a gaseous phase in the reservoir. (10-21-92)

29. Mechanical Integrity Test. A test designed to determine if there is a significant leak in the casing, tubing, or packer of a well. (12-21-11)T

2230. Oil and Gas. Oil or gas or both. (10-21-92)

231. Oil Well. Any well capable of primarily producing oil in paying quantities, but not a gas well. (10-21-92)(12-21-11)T

2432. Operator. Any duly authorized person who is in charge of the development of a lease or the operation of a producing well. (10-21-92)

2533. Owner. The person who has the right to drill into and produce from a pool and to appropriate the oil or gas that produces there from either for himself and/or others. (10-21-92)

2634. Person. Any natural person, corporation, association, partnership, receiver, trustee, executor, administrator, guardian, fiduciary, or other representative of any kind, and includes any government or any political subdivision or any agency thereof. The masculine gender, in referring to a person, includes the feminine and the neuter gender. (10-21-92)

35. Pit. Any excavated or constructed depression or reservoir used to contain reserve, drilling, well treatment, produced water, or other fluids at the drill site. This does not include enclosed, mobile, or portable tanks used to contain fluids. (12-21-11)T

36. Pollution. Constituents of oil, gas, salt water, or other materials used in oil and gas extraction, occurring in fresh water supplies at levels that exceed the standards in IDAPA 58.01.02, "Water Quality Standards," and IDAPA 58.01.11, "Ground Water Quality Rules," as the result of the drilling, casing, treating, operation or plugging of wells. (12-21-11)T

237. Pool or Reservoir. An underground reservoir containing a common accumulation of oil or gas or both; each zone of a structure that is completely separated from any other zone in the same structure is a pool. (10-21-92)(12-21-11)T

238. Pressure Maintenance. The injection of gas, water, or other fluids into oil or gas reservoirs to maintain pressure or retard pressure decline in the reservoir for the purpose of increasing the recovery of oil or other hydrocarbons therefrom. (10-21-92)

39. Produced Water. Water that is produced along with oil or gas. (12-21-11)T

2940. Producer. The owner of a well(s) capable of producing oil or gas or both. (10-21-92)

41. Production Casing. The casing set across the reservoir interval and within which the primary completion components are installed. (12-21-11)T

30. Protect Correlative Rights. The action or regulation by the Commission should afford a reasonable opportunity to each person entitled thereto to recover or receive the oil or gas in such person's tract(s) or the equivalent thereof, without being required to drill unnecessary wells or to incur other unnecessary expense to recover or receive such oil or gas or its equivalent. (10-21-92)

42. Proppant. Sand or other materials used in hydraulic fracturing to prop open fractures. (12-21-11)T

43. Release. Any unauthorized spilling, leaking, emitting, discharging, escaping, leaching, or disposing into soil, ground water, or surface water. (12-21-11)T

44. Surface Casing. The first casing which is run after the conductor pipe to anchor blow out prevention equipment and to seal out fresh water zones. (12-21-11)T

45. Tubing. Pipe used inside the production casing to convey oil or gas from the producing interval to the surface. (12-21-11)T

46. Volatile Organic Compound. Organic chemical compounds whose composition makes it possible for them to evaporate under normal indoor atmospheric conditions of sixty-eight (68) degrees F and an absolute pressure of fourteen point seven (14.7) psi atmospheric. (12-21-11)T

3147. Waterflooding. The injection into a reservoir through one (1) or several more wells of with volumes of water for the purpose of increasing the recovery of oil therefrom. (10-21-92)(12-21-11)T

3248. Waste as Applied to Oil. Underground waste; inefficient, excessive, improper use, or dissipation of reservoir energy, including gas energy and water drive; surface waste, open-pit storage, and waste incident to the production of oil in excess of the producer's above-ground storage facilities and lease and contractual requirements, but excluding storage (other than open-pit storage) reasonably necessary for building up and maintaining crude stocks and products thereof for consumption, use, and sale; the locating, drilling, equipping, operating, or producing of any well in a manner that causes, or tends to cause, reduction of the quantity of oil or gas ultimately recoverable from a pool under prudent and proper operations. (10-21-92)

3349. Waste as Applied to Gas. The escape, blowing or releasing, directly or indirectly, into the open air of gas from wells productive of gas only, or gas in an excessive or unreasonable amount from wells producing oil or both oil and gas; and the production of gas in quantities or in such manner as will unreasonably reduce reservoir pressure or unreasonably diminish the quantity of oil or gas that might ultimately be produced; excepting gas that is reasonably necessary in the drilling, completing, and testing of wells and in furnishing power for the production of wells (10-21-92)

3450. Well Log Report. The written record progressively describing the strata, water, oil, or gas encountered in drilling a well with such additional information as to give volumes, pressures, rate of fill-up, water depths, caving strata, casing record, etc., as is usually recorded in normal procedure of drilling; also, it includes electrical radioactivity, or other similar logs run, lithologic description of all cores, and all drill-stem tests, including depth-tested, cushion-used, time tool open, flowing and shut-in pressures and recoveries. (10-21-92)(12-21-11)T

51. Well Treatment. Actions performed on a well to acidize, fracture, or stimulate the target reservoir. (12-21-11)T

352. Wildcat Well. An exploratory well drilled to discover a previously unknown pool in an area of unknown subsurface conditions. (10-21-92)(12-21-11)T

011. ABBREVIATIONS.

01. API. American Petroleum Institute. (12-21-11)T

02. ASTM. American Society for Testing and Materials. (12-21-11)T

03. BOP. Blowout Preventer. (12-21-11)T

04. CAS. Chemical Abstracts Service. (12-21-11)T

05. EPA. United States Environmental Protection Agency. (12-21-11)T

06. F. Fahrenheit. (12-21-11)T

07. GPS. Global Positioning System. (12-21-11)T

08. HDPE. High Density Polyethylene. (12-21-11)T

09. IDAPA. Idaho Administrative Procedure Act. (12-21-11)T

10. IDEQ. Idaho Department of Environmental Quality. (12-21-11)T

11. IDWR. Idaho Department of Water Resources. (12-21-11)T

12. MSDS. Material Safety Data Sheet. (12-21-11)T

13. OSHA. Occupational Safety & Health Administration. (12-21-11)T

14. PSI. Pounds per Square Inch. (12-21-11)T

0112. -- 014. (RESERVED)

015. SPECIAL RULES PROTECTION OF CORRELATIVE RIGHTS.

Special rules will be issued when required and shall prevail as against general rules if in conflict therewith. The Commission and the Department should afford a reasonable opportunity to each person entitled thereto to recover or receive the oil or gas in such person's tract(s) or the equivalent thereof, without being required to drill unnecessary wells or to incur other unnecessary expense to recover or receive such oil or gas or its equivalent. (10-21-92)(12-21-11)T

016. -- 0319. (RESERVED)

020. APPLICABILITY.

01. Oil and Gas Development. These rules apply to oil and gas development and carry out the Commission's duty to prevent waste, protect correlative rights, and prevent pollution of fresh water supplies through activities authorized by these rules. (12-21-11)T

02. Exclusions. These rules do not apply to the exploration and development of other mineral resources covered by Title 47, Chapter 13, Idaho Code; Title 47, Chapter 15, Idaho Code; or Title 42, Chapter 40, Idaho Code. (12-21-11)T

021. -- 039. (RESERVED)

040. NOTICES - GENERAL.

01. Written Authorization Required. Any written notice of intention to do work or to change plans previously approved must be filed with the director Department, unless otherwise directed, and must reach the director and receive his approval be approved before the work is begun. Such approval may be given orally and, if so given, shall thereafter be confirmed by the director Department in writing. (10-21-92)(12-21-11)T

02. Emergency Authorization. In case of emergency, or a situation where operations might be unduly delayed, any written notice required by these rules and regulations to be given the director Department may be given orally or by wire and if approval is obtained, the transaction shall be confirmed in writing, as a matter of record. (10-21-92)(12-21-11)T

041. -- 049. (RESERVED)

050. PERMIT TO DRILL, DEEPEN, OR PLUG BACK.

01. Permits Required. Prior to the commencement of operations to drill, deepen, or plug back to any source of supply other than the existing producing horizon, application shall be delivered to the Commission Department of intention to drill, deepen, or plug back any well for oil or gas, and approval obtained. (10-21-92)(12-21-11)T

02. Fees. An one hundred dollar ($100) service application fee must accompany each application for permit to drill, deepen, or plug back for any well on which the service fee has not been paid. No service fee is required for a permit to deepen or plug back in a well for which the fee has been paid for permit to drill unless the drilling permit has expired. (10-21-92)(12-21-11)T

03. Time Required to Commence Operations; Term of Permit. On the first anniversary of the date of issuance of a permit to drill, deepen, or plug back, said permit shall terminate will expire and be of no further force or effect, unless the work for which the permit was issued has been started. Prior to the anniversary date, the owner or operator may apply for a one-time, six-month extension if work has not started. If conditions have not changed and no changes to the permit are requested, the extension may be approved by the Department. If a permit expires due to the failure to commence operations, then reapplication is required prior to commencing operations. (10-21-92)(12-21-11)T

04. Plat Application. The Application for Permit to Drill shall be accompanied by an include a Department approved form and the following: (12-21-11)T

a. An accurate plat showing the location of the proposed well with reference to the nearest lines of an established public survey. (12-21-11)T

b. The location of the nearest structure with a water supply, or the nearest water well as shown on the IDWR registry of water rights or well log database. (12-21-11)T

c. Information to be included in such notice shall be on the type of tools to be used, and the proposed logging program. (12-21-11)T

d. pProposed total depth to which the well will be drilled, estimated depth to the top of the important geologic markers, and the estimated depth to the top of objective horizons, the target formations. (12-21-11)T

e. tThe proposed casing program, including size and weight thereof, the depth at which each casing string type is to be set,. and (12-21-11)T

f. tThe type and amount of cement to be used, and the intervals cemented. (12-21-11)T

g. Information shall also be given relative to on the drilling plan., together with (12-21-11)T

h. Best management practices to be used for erosion and sediment control. (12-21-11)T

i. Plan for interim reclamation of the drill site after the well is completed, and a plan for final reclamation of the drill site following plugging and abandonment of the well. These plans must contain the information needed to implement reclamation as described in Subsection 080.15 and Section 325 of these rules. (12-21-11)T

j. Applications that include the following actions must also provide the information from the respective Section of these rules: (12-21-11)T

i. Well treatments require the submittal of the information in Section 055. (12-21-11)T

ii. Pit construction and use requires the submittal of the information in Section 085. (12-21-11)T

iii. Directional or horizontal drilling requires the submittal of the information in Section 170. (12-21-11)T

k. aAny other information which may be required by the Commission Department based on site specific reasons. (10-21-92)(12-21-11)T

05. Permit Denial. Applications may be denied for the following reasons: (12-21-11)T

a. Application fee was not submitted. (12-21-11)T

b. Application is incomplete. (12-21-11)T

c. Failure to post required bonds. (12-21-11)T

d. Proposed well will result in a waste of oil or gas, a violation of correlative rights, or the pollution of fresh water supplies. (12-21-11)T

051. PUBLIC COMMENT.

Applications submitted under Sections 050, 055, 085, and 170 of these rules will be posted on the Department's website for a fifteen-day (15) written comment period. The Department will also send an electronic copy of the application to the respective county, and city if applicable, where the proposed operation is located. The purpose of the comment period is to receive written comments on whether a proposed application complies with these rules. These comments will be considered by the Department prior to permit approval or denial. Relevant comments will be posted on the Department's website following the comment period. (12-21-11)T

0512. -- 0594. (RESERVED)

055. WELL TREATMENTS.

01. Application Required. An Application for Permit to Drill required by Section 050 must include any plans for well treatment if they are known before the well is drilled. If well treatments are not covered in the original drilling permit, then an application to amend the permit must be made to the Department with an application fee. Approval by the Department is required prior to the well treatments being implemented. Actions to clean the casing or perforations not in excess of pressures sufficient to overcome the fracture gradient in the surrounding formation are not considered to be well treatments, but a notice to the Department as described in Section 350 of these rules is still required. Applications for well treatments must include the permit number, well name, well location, as-built description if drilling has been completed, and the following: (12-21-11)T

a. Depth to perforations or the openhole interval; (12-21-11)T

b. The source of water or type of base fluid; (12-21-11)T

c. Additives, meaning any substance or any combination of substances including proppant, having a specified purpose that is combined with base treatment fluid by trade name, if available, and MSDS for each additive; (12-21-11)T

d. Type of proppant(s); (12-21-11)T

e. Anticipated percentages by volume and total volumes of base treatment fluid, individual additives, and proppant(s); (12-21-11)T

f. Estimated pump pressures; (12-21-11)T

g. Method and timeline for the management, storage, and disposal of well treatment fluids, including anticipated disposal site of treatment fluids or plans for reuse; (12-21-11)T

h. Size and design of storage pits, if proposed, in conformance with Section 085 of these rules; (12-21-11)T

i. Information specific to hydraulic fracturing as described in Section 056 of these rules; (12-21-11)T

j. Summary identifying all water bearing zones from the surface down to the bottom of the well; (12-21-11)T

k. Fresh water protection plan that describes the proposed site specific measures to protect water quality from activities associated with well treatments. The Department will review this plan in consultation with the IDEQ. The Fresh Water Protection Plan shall include the following information: (12-21-11)T

i. Ground water and storm water best management practices; (12-21-11)T

ii. Statement certifying that the owner or operator is complying with Spill Prevention, Control, and Countermeasures (SPCC) requirements administered by the EPA; (12-21-11)T

iii. A preconstruction topographic site map or aerial photos identifying all habitable structures, wells, perennial and intermittent springs, surface waters, and irrigation ditches within one-quarter (1/4) mile of the oil or gas well. The distance or location may be changed based on site specific factors such as horizontal drilling, the expected length of fractures, or lack of suitable water sample locations within one-quarter (1/4) mile; (12-21-11)T

iv. A brief description of the structural geology that may influence ground water flow and direction; and (12-21-11)T

v. The general hydrogeological characteristics of the treatment area and surrounding land. (12-21-11)T

l. Certification by the owner or operator that all aspects of the well construction, including the suitability and integrity of the cement used to seal the well, are designed to meet the requirements of proposed well treatments; (12-21-11)T

m. Affidavit signed by the owner or operator stating that all home owners and water well owners within one-quarter (1/4) mile of the oil or gas well, and all owners of a public drinking water system that have a IDEQ recognized source water assessment or protection area within one-quarter (1/4) mile of the oil or gas well, have been notified of the proposed treatment. If a well deviates from the vertical, these surface distances will be from the entire length of the wellbore from the surface to total depth. The notification will also offer an opportunity to have the owner or operator sample and test the water, at the owner or operator's cost, prior to and after the oil or gas well being treated. Notification shall be by certified mail to the surface owner as identified by the county assessor's records, or to the well owner as identified on the IDWR registry of water rights or well log database; (12-21-11)T

n. Proof of publication in a newspaper of general circulation in the county where the well is located of a legal notice briefly describing the well treatment to be performed. Notice shall also advise all water well or public drinking water system owners, as described in paragraph 055.01.m. of these rules, of the opportunity to have their water tested at the owner's or operator's cost before and after the well treatment; and (12-21-11)T

o. Additional information as required by the Department. (12-21-11)T

02. Master Drilling/Treatment Plans. Where multiple stimulation activities will be undertaken for several wells proposed to be drilled in the same field within an area of geologic similarity, approval may be sought from the Department for a comprehensive master drilling/treatment plan containing the information required. The approved master drilling/treatment plan must then be referenced on each individual well's Application for Permit to Drill. (12-21-11)T

03. Application Denial. The Department may deny well treatment applications for one (1) or more of the following reasons: (12-21-11)T

a. Application does not contain the information in Subsection 055.01 of these rules; (12-21-11)T

b. Application fee was not submitted. (12-21-11)T

c. Proposed treatment will result in a waste of oil or gas, a violation of correlative rights, or the pollution of fresh water supplies. (12-21-11)T

04. Time Limit. If a treatment approved in a drilling permit or amended drilling permit is not started within one (1) year of the approval of the well treatment, the well treatment permit will expire and reapplication will be required prior to conducting the well treatment. Prior to the anniversary date, the owner or operator may apply for a six-month (6) extension. If conditions have not changed, and no changes to the permit are requested, the extension may be approved by the Department. (12-21-11)T

05. Inspections. The Department may conduct inspections prior, during, and after well treatments. (12-21-11)T

06. Reporting Requirements. A report on the well treatment must be submitted within thirty (30) days of the treatment. The report shall present a detailed account of the work done and the manner in which such work was performed, including: (12-21-11)T

a. The daily production of oil, gas, and water both prior to and after the operation. (12-21-11)T

b. The size and depth of perforations. (12-21-11)T

c. Percentages by volume and total volumes of base treatment fluid, individual additives, and proppant(s). This requirement can be met by the submittal of well completion field tickets if they contain this information. (12-21-11)T

d. Information specific to hydraulic fracturing, as described in Section 056 of these rules. (12-21-11)T

e. Static pressure testing results before and after the well treatment. (12-21-11)T

f. The amounts, handling, and if necessary, disposal at an identified appropriate disposal facility, or reuse of the well stimulation fluid load recovered during flow back, swabbing, and/or recovery from production facility vessels. Reporting of recovered fluids shall be included with other monthly production reports required by the Department. Storage of such fluid shall be protective of ground water as demonstrated by the use of either tanks or authorized lined pits as described in Section 085 of these rules. (12-21-11)T

g. Any other information related to operations which alter the performance or characteristics of the well. (12-21-11)T

07. Fresh Water Protections for Well Treatments. (12-21-11)T

a. The Department will not authorize pits, lagoons, ponds, or other methods of subsurface storage for treatment fluids within IDEQ recognized source water assessment or protection areas for public drinking water systems. Owners or operators must store and transport treatment fluids using above ground storage facilities and tanker trucks for well treatments in these locations. (12-21-11)T

b. The Department will not authorize well treatments to create fractures within five hundred (500) vertical feet below fresh water aquifers. (12-21-11)T

c. The Department shall require the owner or operator to complete fresh water monitoring at the owner's or operator's cost before and after a well treatment unless the Department, in consultation with the IDEQ, determines that the proposed treatment does not pose a threat of pollution to fresh waters. The Department will review and approve all monitoring proposals with the IDEQ. The monitoring will be done using representative existing water wells or surface waters within one-quarter (1/4) horizontal mile of the treated well. For wells that deviate from the vertical, sampling may be required within one-quarter (1/4) horizontal mile of the wellbore's projected location on the surface. If no water wells or surface waters are present in this area, the sampling area may be enlarged as needed with approval by the Department. If the Department determines that existing water wells are not representative of the ground waters that could be impacted, then the Department may require the owner or operator to install one (1) or more ground water monitoring wells at the owner's or operator's cost. The owner or operator must obtain consent from appropriate property owners to gain access prior to any sampling or well construction. When monitoring is required by the Department, the operator will prepare a monitoring plan that includes the following: (12-21-11)T

i. Location of proposed monitoring sites; (12-21-11)T

ii. Construction details of any sampled or constructed wells including total well depth, depth of screened interval(s), screen size, and drilling log. For existing wells, the operator must make every reasonable attempt to locate this information; (12-21-11)T

iii. When possible, data from the existing wells collected within the last five (5) years and analyzed in a state or EPA certified drinking water lab; (12-21-11)T

iv. List of proposed analytes, testing methods, and their detection limits; (12-21-11)T

v. Additional tests such as stable isotopic analysis; and (12-21-11)T

vi. Pre-treatment sampling and analysis when no relevant data exists, and a schedule for post-treatment sampling and analysis. (12-21-11)T

d. The owner or operator will provide the Department with copies of any analysis or reports within thirty (30) days of samples being taken. All samples must be analyzed in a state or EPA certified drinking water lab. (12-21-11)T

e. Pollution of fresh water supplies due to a well treatment is a violation of these rules and Title 47, Chapter 3, Idaho Code. (12-21-11)T

056. HYDRAULIC FRACTURING.

01. Application Requirements. In addition to the information required by Subsection 055.01 of this rule, the owner or operator shall provide the following application information regarding hydraulic fracturing: (12-21-11)T

a. The geological names and descriptions of the formation into which well stimulation fluids are to be injected; (12-21-11)T

b. Detailed information on the base stimulation fluid source. For each stage of the well stimulation program, provide the chemical additives and proppants and concentrations or rates proposed to be mixed and injected, including: (12-21-11)T

i. Stimulation fluid identified by additive type (such as but not limited to acid, biocide, breaker, brine, corrosion inhibitor, crosslinker, demulsifier, friction reducer, gel, iron control, oxygen scavenger, pH adjusting agent, proppant, scale inhibitor, surfactant); (12-21-11)T

ii. The chemical compound name and Chemical Abstracts Service (CAS) number as found on the previously submitted MSDS shall be identified (such as the additive biocide is glutaraldehyde, or the additive breaker is ammonium persulfate, or the proppant is silica or quartz sand, and so on for each additive used); (12-21-11)T

iii. The proposed rate or concentration for each additive and the total volume of each shall be provided (such as gel as pounds per thousand gallons, or biocide at gallons per thousand gallons, or proppant at pounds per gallon, or expressed as percent by weight or percent by volume, or parts per million, or parts per billion); and (12-21-11)T

iv. The formulary disclosure of the chemical compounds used in the well stimulation(s) for the purpose of protecting public health and safety. (12-21-11)T

c. A detailed description of the proposed well stimulation design that shall include: (12-21-11)T

i. The anticipated surface treating pressure range; (12-21-11)T

ii. The maximum injection treating pressure, which shall be within accepted safety limits. Accepted safety limits are generally 80% of the maximum pressure rating of the pressurized system; (12-21-11)T

iii. The estimated or calculated fracture height in both the horizontal and vertical directions. (12-21-11)T

02. Volatile Organic Compounds and Petroleum Distallates. The injection of volatile organic compounds, such as benzene, toluene, ethyl benzene and xylene, also known as BTEX compounds, or any petroleum distillates into ground water in excess of the applicable ground water quality standards is prohibited. Volatile organic compounds or petroleum distallates may be appropriate as additives, but they are not appropriate for use as the base fluids. The proposed use of volatile organic compounds or any petroleum distillates for well stimulation into hydrocarbon bearing zones may be authorized with prior approval of the director. Water that is produced with oil and gas, and which may contain small amounts of naturally occurring volatile organic compounds or petroleum distillates, may be used as well stimulation fluid in hydrocarbon bearing zones. (12-21-11)T

03. Well Integrity. Prior to the well stimulation, the owner or operator will perform a suitable mechanical integrity test of the casing or of the casing-tubing annulus or other mechanical integrity test methods and submit an affidavit certifying that the well was tested in anticipation of proposed treatment pressures. The owner or operator will notify the Department of this test twelve (12) to twenty-four (24) hours in advance. (12-21-11)T

04. Pressure Monitoring. During the well stimulation operation, the owner or operator shall monitor and record the annulus pressure at the casinghead. If intermediate casing has been set on the well being stimulated, the pressure in the annulus between the intermediate casing and the production casing shall also be monitored and recorded. If the annulus pressure increases by more than five hundred (500) psi gauge as compared to the pressure immediately preceding the stimulation, the owner or operator shall verbally notify the Department as soon as practicable but no later than twenty-four (24) hours following the incident. (12-21-11)T

05. Post Treatment Report. In addition to the information required by Subsection 055.06 of this rule, the owner or operator shall provide the following post-treatment reporting: (12-21-11)T

a. The actual total well stimulation treatment volume pumped; (12-21-11)T

b. The actual surface pressure and rate at the end of each fluid stage and the actual flush volume, rate and final pump pressure; (12-21-11)T

c. The instantaneous shut-in pressure, and the actual fifteen (15) minute and thirty (30) minute shut-in pressures when these pressure measurements are available; (12-21-11)T

d. A continuous record of the annulus pressure during the well stimulation; (12-21-11)T

e. A copy of the well stimulation service contractor's job log, without any cost/pricing data from the field ticket, in lieu of paragraphs (a) through (d) above. If the job log does not contain all the needed information, it must be supplemented with additional information needed to satisfy paragraphs 056.05.a. through 056.05.d. of this rule. (12-21-11)T

f. A report containing all details pertaining to any annulus pressure increases of more than five hundred (500) psi gauge as described in Subsection 056.04 of this rule. The report shall include corrective actions taken, if necessary. (12-21-11)T

g. Results of post treatment fluid analysis used to help determine where the fluid can be disposed. (12-21-11)T

057. -- 059. (RESERVED)

060. TRANSFER OF DRILLING PERMITS.

No person to whom a permit has been issued shall transfer the permit to any other location or to any other person until the following requirements have been complied with: (10-21-92)

01. Prior to Drilling Well. If, prior to the drilling of a well, the person to whom the permit was originally issued desires to change the location, he shall submit a letter so stating and another application properly filled out showing the new location. No additional fee is necessary, but dDrilling shall not be started until the transfer has been approved and the new permit posted at the new location. (10-21-92)(12-21-11)T

02. During Drilling or After Completion. If, while a well is drilling being drilled or after it has been completed, the person to whom the permit was originally issued disposes of his interest in the well, he shall submit a written statement to the Commission Department setting forth the facts and requesting that the permit be transferred to the person who has acquired the well. (10-21-92)(12-21-11)T

03. Terms for Acceptance of Transfer by Commission. Before the transfer of a drilling permit shall be recognized, the person who has acquired the well must submit a written statement setting forth that he has acquired such well and assumes full responsibility for its operation and abandonment in conformity with the law, rules, regulations, and orders issued by the Commission. If bond is required to guarantee compliance with the rules and regulations of the Commission, the person acquiring such well shall furnish bond. (10-21-92)(12-21-11)T

061. -- 069. (RESERVED)

070. BONDING.

01. Individual Bond. The Commission Department shall, except as hereinafter provided, require from the owner or operator a good and sufficient bond in the sum of not less than ten thousand dollars ($10,000) plus one dollar ($1) for each foot of planned well length in favor of the Commission, Department. The bond shall be conditioned upon the performance of the owner's or operator's duty to comply with the requirements of the Idaho Oil and Gas Conservation Act and the rules and regulations of the Commission, with respect to the drilling, maintaining, operating, and plugging of each well drilled for oil and gas and the reclamation of surface disturbance associated with these activities. Said bond shall remain in force and effect until the plugging of said well is approved by the Commission Department and the well site is reclaimed as described in Section 325 of these rules, or the bond is released by the Commission Department. (12-21-11)T

02. Blanket Bond. It is provided that In lieu of the bond in Subsection 070.01 of this rule, any owner or operator in lieu of such bond may file with the Commission Department a good and sufficient blanket bond in a sum of not less than twenty-five thousand dollars ($25,000), covering all active wells drilled or to be drilled in the state of Idaho by the principal in said bond, and the acceptance and approval by the Commission of such blanket bond shall be in full compliance with the above provision requiring an individual well bond. The bond(s) herein before referred to shall be by a corporate surety authorized to do business in the state of Idaho or in cash. The amount of the blanket bond will be as follows according to the number of active wells covered by the bond: (10-21-92)(12-21-11)T

a. Up to ten (10) wells, fifty thousand dollars ($50,000); (12-21-11)T

b. Eleven (11) to thirty (30) wells, one hundred thousand dollars ($100,000); or (12-21-11)T

c. More than thirty (30) wells, one hundred fifty thousand dollars ($150,000). (12-21-11)T

03. Inactive Well Bond. An owner or operator must provide the Department with a bond of at least ten thousand dollars ($10,000) plus one dollar ($1) for each foot of planned well length for each inactive well conditioned upon the performance of the duty to comply with the requirements of the Act and the rules of the Commission, with respect to the drilling, maintaining, operating, and plugging of each well drilled for oil and gas. Said bond shall remain in force and effect until the plugging of said well is approved by the Department, or the bond is released by the Department. Inactive wells may not be covered by a blanket bond as provided in Subsection 070.02 of this rule. (12-21-11)T

04. Additional Bonding. The Department may impose additional bonding on an owner or operator given sufficient reason, such as non-compliance, unusual conditions, horizontal drilling, or other circumstances that suggest a particular well or group of wells has potential risk or liability in excess of that normally expected. The owner or operator may request a hearing to appeal either the decision to impose an additional bond or the proposed amount of the bond. (12-21-11)T

071. -- 0794. (RESERVED)

075. SURFACE OWNER PROTECTIONS.

01. Surface Use Agreement. If the mineral estate has been severed from the surface estate where an oil or gas well is to be located, the owner or operator shall attempt a good faith negotiation of a surface use agreement with the surface owner. The surface use agreement must address how the surface owner will be compensated for lost agricultural income and lost value of improvements directly caused by oil and gas exploration and production. The owner or operator may rely on the tax records of the respective county assessor to identify the surface owner. (12-21-11)T

02. Surface Owner Notification. If a surface use agreement cannot be negotiated, then the owner or operator must notify the surface owner of the intent to drill by certified mail at least sixty (60) days prior to the commencement of surface disturbing activities, unless otherwise agreed to by the surface owner. The notification must include a proposed surface use bond amount, and a copy must be sent to the Department. (12-21-11)T

03. Surface Owner Objection. If the surface owner disagrees with the owner's or operator's proposed surface use bond amount, the surface owner must send a written objection to the Department within thirty (30) days of receiving the notification from the owner or operator. The objection must contain the owner's or operator's proposed surface use bond amount. Any objection filed will not delay the owner's or operator's proposed start of surface disturbing activities. (12-21-11)T

04. Surface Use Bond. The minimum surface use bond in all instances with no surface use agreement will be five thousand dollars ($5,000), and will be paid in cash to the Department. If the surface owner objects to the owner's or operator's proposed bond amount, the Department will determine a surface use bond based on the information received from both the owner or operator and the surface owner. The Department will then request that the owner or operator submit this bond. The Department may issue the permit and authorize the commencement of drilling operations after this bond has been received. The purpose of this bond is to safeguard the surface owner's loss of agricultural income and improvement values pending the results of a hearing on the final bond. (12-21-11)T

05. Hearing to Determine Surface Use Bond. When the owner, operator, or surface owner objects to the Department's proposed surface use bond, a hearing will be scheduled as soon as possible to determine the final bond amount. The owner, operator, surface owner, and Department may offer testimony to the hearing officer. The hearing officer will recommend a final bond amount to the Commission. After the Commission's final order, the owner or operator and surface owner will have twenty-eight (28) days to file a request for judicial review. (12-21-11)T

06. Release of Surface Use Bond. The Department will hold the bond pending either a surface use agreement between the two (2) parties that negates the need for a surface use bond, or reclamation of the surface disturbance. (12-21-11)T

07. Forfeiture of Surface Use Bond. The Department may forfeit this bond upon failure of the owner or operator to reclaim the disturbed area in a timely manner, or upon failure of the parties to reach a surface use agreement, upon the completion of drilling operations. (12-21-11)T

076. -- 079. (RESERVED)

080. GENERAL DRILLING RULES.

Unless altered, modified, or changed for a particular pool(s), upon hearing before the Commission, the following shall apply to the drilling of all wells: (10-21-92)

01. General Design Requirements for Casing and Cementing. Casing and cementing programs adopted for wells must be so planned as to protect any potential oil- or gas-bearing horizons penetrated during drilling from infiltration of injurious waters from other sources, and to prevent the migration of oil or gas from one horizon to another. Owners and operators shall follow the standards for casing and tubing in API SPEC 5CT and the standards for cementing in API SPEC 10A. (12-21-11)T

02. Wildcat and High-Pressure Conditions. When drilling wildcat territory or in any field where high pressures are likely to exist, the owner or operator shall take all necessary precautions to keep the well under control at all times and shall use proper high-pressure fittings and equipment at the time the well is started. Under such conditions all strings of casings must be securely anchored. (12-21-11)T

03. High Temperature Conditions. Due to high geothermal gradients in Idaho, the temperature of the return drilling mud shall be monitored daily during the drilling of the surface casing hole and all deeper holes. The owner or operator must use cements appropriate for the temperatures expected or encountered. (12-21-11)T

014. Wildcat and High-Pressure Conditions; Conductor Pipe or Casing and Well Control Requirements. When drilling "wildcat" territory or in any field where high pressures are likely to exist, the owner shall take all precautions for keeping the well under control at all times and shall provide at the time the well is started proper high-pressure fittings and equipment. Under such conditions the conductor string of casings must be cemented throughout its length, unless other procedure is authorized or prescribed by the director, and all strings of casings must be securely anchored. A minimum of forty (40) feet of conductor pipe shall be installed. If geologic conditions are such that forty (40) feet is not feasible, the owner or operator may request a variance from the Department. The annular space is to be cemented solid to the surface. A twenty-four (24) hour cure period for the grout must be allowed prior to drilling out the shoe unless sufficient additives, as determined by the Department, are used to obtain early strength. (10-21-92)(12-21-11)T

025. Surface Casing Requirements; Unknown Formation and Pressure Conditions. In areas where pressure and formations are unknown, sufficient surface casing shall be run to reach a depth below all known or reasonably estimated utilizable domestic freshwater levels and to prevent blowouts or uncontrolled flows and shall be of sufficient size to permit the use of an intermediate string(s) of casing. Surface casing shall be set in or through an impervious formation and shall be cemented by the pump and plug or displacement or other approved method with sufficient cement to fill the annulus to the top of the hole, in accordance with reasonable requirements of the director. (10-21-92)(12-21-11)T

a. Surface casing must be set at a minimum depth equal to ten percent (10%) of the proposed total depth of the well. In areas where pressures and formations are unknown, a minimum of two hundred (200) feet of surface casing shall be set. (12-21-11)T

b. This casing shall provide for control of formation fluids, protection of fresh water, and for adequate anchorage of blow out prevention equipment. The casing must be seated through a sufficient series of low permeability, competent lithologic units such as claystone, siltstone, basalt, etc., to insure a solid anchor for blow out prevention equipment and to protect usable ground water from contamination. Additional surface casing may be required if the first string has not been cemented through a sufficient series of low permeability, competent lithologic units, or rapidly increasing thermal gradients or formation pressures are encountered. (12-21-11)T

c. All surface casing shall be cemented solid to the surface by pump and plug, displacement, or other approved method. When surface samples are cured, additional drilling activities may commence. (12-21-11)T

03. Surface Casing Requirements; Known Subsurface Conditions. In wells drilled in areas where subsurface conditions have been established by drilling experience, surface casing, size at the owner's option, shall be set and cemented to the surface by the pump and plug or displacement or other approved method at a depth sufficient to protect all utilizable domestic fresh water and to insure against blowouts or uncontrollable flows. (10-21-92)

04. Cement Minimum Set-Up Time. Cement shall be allowed to set a minimum of eight (8) hours under pressure before drilling the plug. The term "under pressure" as used herein will be complied with if one (1) float valve is used or if pressure is otherwise held. (10-21-92)

056. Requirements for Blowout Prevention BOP Equipment. Unless altered, modified, or changed for a particular pool(s) upon hearing before the Commission, blowout preventers BOP and related equipment shall be installed and maintained during the drilling of all wells in accordance with the following rules: (10-21-92)(12-21-11)T

a. BOP equipment installed on wells in which formation pressures to be encountered are abnormal or unknown shall consist of a double-gate, hydraulically operated preventer with pipe and blind rams or two (2) single-ram-type preventers; one (1) equipped with pipe rams, the other with blind rams and an annular type preventer. In addition, upper and lower kelly cocks, pit level indicators with alarms and/or flow sensors with alarms, and surface facilities to handle pressure kicks shall be installed prior to drilling any formation with known abnormal pressure. (10-21-92)

i. Accumulators shall maintain a pressure capacity reserve at all times to provide for operation of the hydraulic preventers and valves with no outside source. (10-21-92)

ii. In all other drilling operations, BOP equipment shall consist of at least one (1) double-gate preventer with pipe and blind rams or two (2) single-ram-type preventers, one (1) equipped with pipe rams, the other with blind rams, and sufficient valving to permit fluid circulation at the surface. (10-21-92)

b. All blowout preventers, choke lines, and manifolds shall be installed above ground level. Casing heads and optional spools may be installed below ground level provided they are visible and accessible. (10-21-92)(12-21-11)T

c. Blowout preventer BOP equipment and related casing heads and spools shall have a vertical bore no smaller than the inside diameter of the casing to which they are attached. (10-21-92)(12-21-11)T

d. The working pressure rating of all blowout preventers and related equipment shall equal or exceed the maximum anticipated pressure to be contained at the surface. (10-21-92)

e. All ram-type blowout preventers and related equipment, including casing, shall be tested to the full working pressure rating of said equipment upon installation, provided that components need not be tested to levels higher than the lowest working pressure rated component. Annular type blowout preventers are to be tested in conformance with the manufacturer's published recommendations. If, for any reason, a pressure seal in the assembly is disassembled, a test to a full working pressure rating of that seal shall be conducted prior to the resumption of any drilling operation. In addition to the initial pressure tests, ram-type preventers shall be checked for physical operation each trip at least once per week and all components, again with exception of the annular-type blowout preventer, tested monthly at least once every twenty-one (21) days to at least fifty percent (50%) of the rated pressure of the BOP equipment and/or to the maximum anticipated pressure to be contained at the surface, whichever is greater. (10-21-92)(12-21-11)T

f. The Commission Department may require an affidavit covering the initial pressure tests after installation signed by the owner, operator, or contractor attesting to the satisfactory pressure tests. The Commission staff Department is to be advised at least twenty-four (24) hours in advance of all tests. (10-21-92)(12-21-11)T

g. A schematic diagram of the BOP and well head assembly shall be submitted to the Commission staff Department upon application for a permit to drill. The schematic diagram should indicate the minimum size and pressure rating of all components of the well head and BOP assembly. (10-21-92)(12-21-11)T

h. Studs on all well head and BOP flanges shall be checked for tightness each week. Hand wheels for locking screws shall be installed and operational, and the entire BOP and well head assembly shall be kept clean of mud and ice. (10-21-92)

i. A drillstem safety valve shall be available on the rig floor at all times with correct thread for the pipe in use. (10-21-92)(12-21-11)T

j. A drillstem float valve shall be installed in bit sub or as close to bit as reasonably possible. (12-21-11)T

07. Intermediate Casing. (12-21-11)T

a. Intermediate casing, if installed, shall be cemented solidly to the surface or to the top of the casing. (12-21-11)T

b. Intermediate casing not run to surface will be lapped into at least one hundred (100) feet of the surface casing, or at least one hundred (100) feet of the next larger casing to provide overlap and secure a seal. (12-21-11)T

c. Such casing shall be cemented and pressure tested before cement plugs are drilled. (12-21-11)T

068. Production String Casing; Cementing and Testing Requirements. (12-21-11)T

a. If and when it becomes necessary to run a production string casing, such string casing shall be cemented by the pump-and-plug method and shall be properly and pressure tested by the pressure method before cement plugs are drilled. (10-21-92)(12-21-11)T

a. When not run to the surface, production casing will be cemented from the bottom of the hole up into at least one hundred (100) feet of the next larger casing to provide overlap and secure a seal. (12-21-11)T

b. If the bottom plug will be drilled out, the open hole interval must be completed to protect any potential oil-bearing or gas-bearing horizons penetrated during drilling from infiltration of injurious waters from other sources, and to prevent the migration of oil or gas from one horizon to another. (12-21-11)T

079. Blowout Control (Rotary Tools); Auxiliary Reserve Mud Tanks. When drilling with rotary tools, the owner or operator shall provide, as required by the director Department, an auxiliary a reserve mud pit or tank of suitable capacity for the anticipated depth of the well and maintain therein an on-site supply of mud having the proper characteristics for emergency use additives that can raise the mud weight by one (1) pound per gallon in case of blowouts. (10-21-92)(12-21-11)T

0810. Mud Pits. Before commencing to drill, proper and adequate mud pits shall be constructed for the reception and confinement of mud and cuttings and to facilitate the drilling operation. Special precautions shall be taken, if necessary, to prevent contamination of streams and potable fresh waters. These pits must conform to the standards in Section 085 of these rules. If tanks will be used, then mud pits may not be required. (10-21-92)(12-21-11)T

0911. Well Control (Cable Tools); Fluid Containment and Gas Flaring. Natural gas or oil which may be encountered in a substantial quantity in any section of a cabletool drilled hole above the ultimate objective shall be shut off with reasonable diligence either by mudding or by casing, or other approved method, and confined to its original source to the satisfaction of the director Department. Any gas escaping from the well during drilling operations shall be, as far as practicable, conducted to a safe distance from the well site and burned. (10-21-92)(12-21-11)T

12. Drilling Mud Disposal. Drilling mud will be disposed of at an appropriate facility in compliance with applicable state and federal requirements. (12-21-11)T

10. Casing Programs; General Design Requirements. Casing programs adopted for wells must be so planned as to protect any potential oil- or gas-bearing horizons penetrated during drilling from infiltration of injurious waters from other sources, and to prevent the migration of oil or gas from one horizon to another. (10-21-92)

113. Report of Fresh Waters Encountered; Owner's or Operator's Duties. It shall be the duty of any person, owner or operator or contractor drilling an oil or gas well or drilling a seismic, core or other exploratory hole to report to the Commission Department all freshwater sands potential water bearing zones encountered; such report shall be in writing and give the location of the well or hole, the depth at which the sands zones were encountered, the thickness of such sands zones, and the rate of flow of water if known. This requirement can be met by the submittal of the logs required in Section 090 of this rule. (10-21-92)(12-21-11)T

14. Spill Prevention, Control, and Countermeasures Plan. The owner or operator must have a Spill Prevention, Control, and Countermeasures Plan in conformance with the requirements of the EPA. This plan must be updated as needed when facilities or activities change. (12-21-11)T

15. Interim Drill Site Clean Up. If a well is completed for production or other purposes, interim reclamation must be completed within six (6) months of the rig being removed. Interim reclamation includes the following activities: (12-21-11)T

a. Debris and waste materials including, but not limited to, concrete, sack bentonite and other drilling mud additives, sand, plastic, pipe, and cable associated with the drilling, re-entry, or completion operations shall be removed and disposed of properly. (12-21-11)T

b. All disturbed areas affected by drilling or subsequent operations, except areas reasonably needed for production operations or for subsequent drilling operations to be commenced within twelve (12) months, shall be reclaimed and revegetated to approximately the pre-drilling condition or to the condition specified in an agreement with the surface owner. The reclamation standards in Subsections 325.04 through 325.07 of these rules, shall apply. (12-21-11)T

081. -- 0894. (RESERVED)

085. PIT REQUIREMENTS.

01. Plans Required. If pits are proposed to be constructed in connection with another permit application required by these rules, then the owner or operator must include plans for pit construction in the application. If a pit is needed after the other permits have been approved, then an application to amend the permit must be made to the Department with an application fee. Approval by the Department is required prior to the pit being constructed unless the pit is necessary for an emergency action. Pit applications must include the permit number, well name, well location, as-built description if drilling has been completed, proposed pit location, and plans for pit construction, operation, and reclamation. (12-21-11)T

02. Location. (12-21-11)T

a. Pits must be located where they are structurally sound and the liner systems can be adequately protected against factors such as wild fires, floods, landslides, surface and ground water systems, equipment operation, and public access. (12-21-11)T

b. Pits located in a one hundred-year floodplain must be in conformance with any applicable floodplain ordinances pertaining to activities within the one hundred-year floodplain. (12-21-11)T

c. Pits shall not be located within an IDEQ recognized source water assessment or protection areas for public drinking water systems. (12-21-11)T

03. Site Preparation. All sites must be properly prepared prior to pit construction. Vegetation, roots, brush, large woody debris and other deleterious materials, topsoil, historic foundations and plumbing, or other materials that may adversely affect appropriate construction, must be removed from the footprint of the pit unless approved by the Department. (12-21-11)T

04. Pit Sizing Criteria. (12-21-11)T

a. Pits that have constructed berms ten (10) or more feet in height or hold fifty (50) acre-feet or more of fluid must also comply with the dam safety requirements of IDAPA 37.03.06, "Safety of Dams Rules." (12-21-11)T

b. Pits must be designed to hold the maximum volume of fluids being used for drilling or well treatment and the volume of water associated with a one hundred-year, twenty-four-hour precipitation event. (12-21-11)T

c. Snowmelt events shall be considered in determining the containment capacity. (12-21-11)T

d. Pits that are left over winter must be able to contain one hundred twenty-five percent (125%) of the average annual precipitation that falls from October through May. (12-21-11)T

e. Pits must be designed to maintain a minimum two (2) foot freeboard at all times. Contingency plans for managing excesses of fluids shall be described in the application. At no time shall fluids in a pit be allowed to escape from the impoundment. (12-21-11)T

05. Minimum Plans and Specifications for Reserve, Well Treatment, and Other Short Term Pits. Pits used for one (1) year or less, not including extensions, are short term pits. Construction plans and specifications for short term pits must include the requirements under Subsections 085.02 through 085.04 of this rule and the following: (12-21-11)T

a. A prepared subbase, which shall be free of plus three (3) inch rocks, roots, brush, trash, debris or other deleterious materials, and compacted to ninety-five percent (95%) of Standard Proctor Test ASTM D698-07e1 or ninety-five percent (95%) of Modified Proctor Test ASTM D1557-09; (12-21-11)T

b. Slopes of two (2) feet horizontal to one (1) foot vertical (2H:1V) or flatter for all interior and exterior pit walls. The top of a bermed pit wall must be a minimum of two (2) feet wide; (12-21-11)T

c. A primary liner system consisting of a synthetic liner of at least twenty (20) mils thickness and constructed according to manufacturers' standards with at least four (4) inches of welded seam overlap and complete coverage on the floor and inside walls of the pit. Seams must run parallel to the line of maximum slope so they do not traverse across the slope. The liner edges shall be anchored in a compacted earth filled trench at least eighteen (18) inches in depth. The liner must be protected against cracking, sun damage, ice, frost penetration or heaving, wildlife and wildfires, and damage that may be caused by personnel or equipment operating in or around these facilities. Liner compatibility shall comply with EPA SW-846 method 9090A. Alternative liner systems with similar standards may be proposed by the owner or operator and approved at the Department's discretion; (12-21-11)T

d. Minimum factors of safety, and the logic behind their selection, for the stability of the earthworks and the lining system of the pit; (12-21-11)T

e. Site-specific methods for excluding people, terrestrial animals, and avian wildlife from the pits; (12-21-11)T

f. Segregation and stockpiling of topsoil in a manner that will support reestablishment of the pre-disturbance land use after pit closure; and (12-21-11)T

g. A closure plan including the following: (12-21-11)T

i. Testing of residual fluids and any accumulated solids, if anything other than water based drilling fluid was placed in the pit; (12-21-11)T

ii. Plans for removal and disposal of residual fluids and accumulated solids, with the liner material, at an appropriate facility; (12-21-11)T

iii. Regrading plan, replacement of topsoil, and erosion control measures; and (12-21-11)T

iv. Reseeding and Revegetation. (12-21-11)T

06. Minimum Plans and Specifications for Long Term Pits. Pits used for more than one (1) year, not including extensions, are long term pits. Construction plans and specifications for long term pits must include the requirements under Subsections 085.02 through 085.05 of this rule and the following: (12-21-11)T

a. A quality control/quality assurance construction and installation plan; (12-21-11)T

b. Type of fluids to be contained in the pit; (12-21-11)T

c. Secondary containment synthetic liners, which shall have a minimum thickness of sixty (60) mils consisting of HDPE and a maximum coefficient of permeability of 10-9 cm/sec, or comparable liners approved by the Department; (12-21-11)T

d. Leak detection and collection systems. The plans and specifications shall: (12-21-11)T

i. Provide a material between primary and secondary containment synthetic liners to collect, transport and remove all fluids that pass through the primary containment synthetic liner at such a rate as to prevent hydraulic head from developing on the secondary containment synthetic liner to the level at which it may be reasonably expected to result in discharges through the secondary containment synthetic liner; (12-21-11)T

ii. Provide routines and schedules for the evaluation of the efficiency and effectiveness of the removal of fluids from the layer placed between primary and secondary containment synthetic liners. The properly working system shall continually relieve head pressures on the secondary containment synthetic liner; (12-21-11)T

iii. Provide specific triggers for maintenance routines, which shall be initiated in response to inadequate performance of primary or secondary containment synthetic liners; and (12-21-11)T

iv. Specify operation and maintenance procedures, which shall be initiated in response to inadequate performance of primary and secondary containment or leak detection and collection systems. (12-21-11)T

e. All piping, including that contained in the leak detection and collection system, shall have a minimum wall thickness of schedule 80 and be designed to: (12-21-11)T

i. Withstand chemical attack from oil field waste or leachate; (12-21-11)T

ii. Withstand structural loading from stresses and disturbances from cover materials or equipment operation; and (12-21-11)T

iii. Facilitate clean-out and maintenance. (12-21-11)T

f. Protections for the liner from excessive hydrostatic force or mechanical damage at the point of discharge into, or suction from, the pit. External discharge or suction lines shall not penetrate the liner; (12-21-11)T

g. Plans for erosion control during and immediately following construction; and (12-21-11)T

h. Operating and maintenance plans. (12-21-11)T

07. Time Limits for Short Term Pits. Reserve, well treatment, and other short term pits must be closed out and reclaimed within one (1) year of being constructed. The owner or operator may request a one-time extension for up to six (6) months. The Department may grant the request if the owner or operator gives sufficient cause and presents a plan for ensuring that the pit is adequately monitored and maintained. (12-21-11)T

a. Fluids may be left in a pit for up to six (6) months after the associated well activities are conducted. The owner or operator may request a one-time extension for up to one (1) year. The Department may grant the request if the owner or operator gives sufficient cause and presents a plan for keeping the fluids in a usable state. (12-21-11)T

b. Notwithstanding the above time limits, the owner or operator may request additional time based upon conditions wholly outside of the owner's or operator's control including, but not limited to, governmental lease requirements and delays related to difficult drilling conditions. The Department may impose additional construction or monitoring requirements prior to granting additional time. (12-21-11)T

08. Emergency Pits. Pits constructed during an emergency situation may be approved by an after-the - fact application submitted to the Department. The requirements in Subsections 085.02 through 085.05 of this rule shall apply, and the pit must be closed out and reclaimed within six (6) months of being constructed. The Department must be notified within twenty-four (24) hours of an emergency situation requiring an emergency pit. (12-21-11)T

09. Operating Requirements. (12-21-11)T

a. Waste oil, hydraulic fluid, transmission fluids, trash, or any other miscellaneous waste products must not be disposed of in a pit. Placement of these materials into a pit may result in the creation of a mixed waste that requires handling and disposal as a hazardous waste. (12-21-11)T

b. If a pit liner's integrity is compromised, or if any penetration of the liner occurs above the liquid's surface, then the owner or operator shall notify the appropriate Department area office within forty-eight (48) hours of the discovery and repair the damage or replace the liner. (12-21-11)T

c. If a pit or closed-loop system develops a leak, or if any penetration of the pit liner occurs below the liquid's surface, then the owner or operator shall remove all liquid above the damage or leak line within forty-eight (48) hours, notify the appropriate Department area office within forty-eight (48) hours of the discovery, and repair the damage or replace the pit liner. (12-21-11)T

d. The owner or operator shall install, or maintain on site, an oil absorbent boom or other device to contain and remove oil from a pit's surface. Visible oil must be removed from short term pits immediately following the cessation of activity for which the pit was constructed. Visible oil must be removed from long term pits as soon as it is discovered. (12-21-11)T

10. Closure of Pits. (12-21-11)T

a. The owner or operator shall remove all liquids from the pit prior to closure and dispose of them at an appropriate facility or reuse them at a different location. If the nature of the fluids has substantially altered during their use, then the fluids must be sampled and tested to determine which disposal facility can accept them. (12-21-11)T

b. Any solids that have been accumulated in the bottom of the pit will be tested to determine which disposal facility can accept the material. The solid material and liner will then be removed and disposed of at an appropriate facility. (12-21-11)T

c. The owner or operator must notify the Department at least forty-eight (48) hours prior to removal of the pit liner so an inspection may be conducted. (12-21-11)T

d. The pit foundation will be inspected for signs of leakage. If evidence of leakage is observed, the owner or operator must contact the Department and the IDEQ within twenty-four (24) hours and report the type of fluids released and the estimated extent of release. The owner or operator must then remediate the site in conformance with the applicable standards administered by IDEQ in IDAPA 58.01.02," Water Quality Standards," Sections 850 through 852. (12-21-11)T

e. After addressing any pit leakage concerns, the owner or operator shall perform the activities described in Subsections 325.04 through 325.08 of these rules. (12-21-11)T

11. Condemnation Due to Improper Impoundment. The Department shall have authority to condemn any pit that does not properly impound fluids and order the disposal of such fluids in conformance with IDAPA 58.01.16, "Wastewater Rules," and other applicable rules. (12-21-11)T

086. -- 089. (RESERVED)

090. WELL COMPLETION/RECOMPLETION REPORT AND WELL LOG REPORT.

Within thirty (30) days after the completion of a well drilled for oil or gas, or the recompletion of a well into a different source of supply, or where the producing interval is changed, a completion report shall be filed with the Commission Department, on a form prescribed by the Commission Department. Such report shall include name, number, and exact location of the well; lease name, date of completion and date of first production, if any; name and depth of hydrocarbon reservoir(s), if a multiple completion, from which well is producing; annulus pressure test; initial production test, including oil, gas, and water, if any; a well log report as defined in Section 010; and such other relevant information as the Commission Department may require. (10-21-92)(12-21-11)T

091. DRILLING LOGS.

01. Minimum Required Logs. All wells shall have a lithologic log from the bottom of the hole to the top, to the extent practicable. (12-21-11)T

02. Bottom Hole Survey. All wells shall have a bottom hole location survey. (12-21-11)T

03. Cement Bond Log. All wells that are cased and cemented shall have a cement bond log run across the casing. (12-21-11)T

04. Other Logs. If other logs are run, including, but not limited to, resistivity, gamma-neutron log, sonic log, etc., then the owner or operator shall retain a copy regardless of results. (12-21-11)T

05. Log Submittal. The above logs shall be submitted to the Department in paper and digital formats within thirty (30) days of the log being run. If logs were run in color, then the submitted copies shall also be in color. Digital formats must be Tiff and LAS 2.0 or higher. (12-21-11)T

092. -- 094. (RESERVED)

095. ACTIVE WELLS.

01. Gas Storage Wells. Gas storage wells are to be considered active at all times unless physically plugged. (12-21-11)T

02. Extension of Active Status. An owner or operator may request an extension of active well status for wells that are idled for more than twenty-four (24) continuous months. The owner or operator shall provide a written request to the Department stating the reason for the extension, the length of extension, the method used to close the well to the atmosphere, and the plans for future operation. The Department shall review the request for approval, modification, or denial, and shall set the duration of the extension if approved. An extension shall not exceed five (5) years and may be renewed upon request. (12-21-11)T

03. Annual Reports for Active Wells. The owner or operator shall submit an annual report to the Department describing the current status of the well and the plans for future well operation. Failure to submit the annual report may result in the Department declaring the well inactive. (12-21-11)T

096. INACTIVE WELLS.

01. Determination of Inactive Status. The Department shall declare a well inactive after twenty-four (24) continuous months of inactivity if the owner or operator has not received approval for an extension of active status, or after an owner or operator fails to submit an annual report for an active well. The Department will immediately notify an owner or operator of this determination by certified mail, and the owner or operator may appeal this determination to the Commission. (12-21-11)T

02. Owner's or Operator's Responsibility for Inactive Wells. The owner or operator must plug and abandon an inactive well in accordance with Section 320 of these rules within six (6) months of being notified by the Department unless the owner or operator supplies the following information within the six-month time period: (12-21-11)T

a. A written request to extend inactive status; (12-21-11)T

b. An individual bond, as provided for in Subsection 070.03 of these rules, if the well was covered by a blanket bond; and (12-21-11)T

c. A description of how the well is closed to the atmosphere with a swedge and valve, packer, or other approved method, and how the well is to be maintained. (12-21-11)T

03. Inactive Review and Decision. The Department shall review the request for approval, modification, or denial, and shall set the duration of the extension if approved. An extension shall not exceed three (3) years and may be renewed upon request. (12-21-11)T

04. Testing of Inactive Wells. In addition to the requirements of Section 105 of these rules, inactive wells shall have a mechanical integrity test performed within two (2) years after the date of last use in order to retain inactive status. (12-21-11)T

05. Converting Inactive Wells to Active Wells. The owner or operator must apply to the Department to change the status of a well from inactive to active. The Department shall review the request for approval, modification, or denial. A mechanical integrity test may be required by the Department if the well has been worked over or if a test has not been conducted for five (5) years or longer. If approved, the well may again be covered by a blanket bond. (12-21-11)T

0917. -- 099. (RESERVED)

(BREAK IN CONTINUITY OF SECTIONS)

101. -- 1094. (RESERVED)

105. MECHANICAL INTEGRITY TESTING.

01. Mechanical Integrity Testing. (12-21-11)T

a. The mechanical integrity test shall include one (1) of the following tests to determine whether leaks are present in the casing, tubing, or packer: (12-21-11)T

i. A pressure test with liquid or gas at a pressure of not less than three hundred (300) psi or the minimum injection pressure, whichever is greater, and not more than the maximum injection pressure; or (12-21-11)T

ii. The monitoring and reporting to the Department, on a monthly basis for sixty (60) consecutive months, of the average casing-tubing annulus pressure, following an initial pressure test; or (12-21-11)T

iii. In lieu of Subsections 105.01.a.i. and 105.01.a.ii. of this rule, any equivalent test or combinations of tests approved by the Department. (12-21-11)T

b. The mechanical integrity test shall include one (1) of the following tests to determine whether there are fluid movements in vertical channels adjacent to the well bore: (12-21-11)T

i. Tracer surveys; (12-21-11)T

ii. Cement bond log or other acceptable cement evaluation log; (12-21-11)T

iii. Temperature surveys; or (12-21-11)T

iv. In lieu of Subsections 105.01.b.i. through 105.01.b.iii. of this rule, any other equivalent test or combination of tests approved by the Department. (12-21-11)T

c. Mechanical integrity tests shall be performed at the rate of not less than one (1) test every five (5) years, regardless of well status. The first five-year period shall commence on the date the initial mechanical integrity test is performed. (12-21-11)T

02. Inactive Wells. If, at any time, surface equipment excluding the wellhead is removed or the well becomes incapable of production, a mechanical integrity test shall be performed within thirty (30) days. The mechanical integrity test for an inactive well shall be isolation of the wellbore with a bridge plug or similar approved isolating device set one hundred (100) feet or less above the highest perforations and a pressure test with liquid or gas at a pressure of not less than three hundred (300) psi surface pressure or any equivalent test or combination of tests approved by the Department. (12-21-11)T

03. Prior Notification. Not less than ten (10) days prior to the performance of any mechanical integrity test required by this rule, any person required to perform the test shall notify the Department, in writing, of the scheduled date on which the test will be performed. (12-21-11)T

04. Reporting Requirements. Mechanical integrity test results shall be submitted to the Department within thirty (30) days of testing. (12-21-11)T

05. Mechanical Integrity Required. All wells shall maintain mechanical integrity. All wells that fail a mechanical integrity test, or that are determined through any other means to lack mechanical integrity, shall immediately be investigated by the owner or operator. The well shall be repaired or immediately shut down following the investigation. Repairs shall be completed within six (6) months, or the well shall be plugged and abandoned. If the repair cannot be completed within six (6) months, the owner or operator may request an extension and provide a plan for the repair, (12-21-11)T

106. -- 109. (RESERVED)

110. DESIGNATION OF AGENT.

A "Designation of Agent" shall be submitted to the director Department in a manner and form approved by the director Department prior to the commencement of operations. A Designation of Agent(s) will be accepted as authority of agent to fulfill the obligations of the owner and to sign any papers or reports required under these oil and gas operating regulations, and all authorized orders or notices given by the director Department when given in the manner hereinafter provided shall be deemed service of such orders or notices upon the owner and the lessee. All changes of address and any termination of the agent's authority shall be immediately reported in writing to the director Department and, in the latter case, the designation of a new agent(s) shall be immediately made. If the designated agent(s) shall at any time be incapacitated for duty or absent from the address provided, the owner shall designate in writing a substitute to serve in his or their stead, and in the absence of such owner or of notice of appointment of a substitute then, in such case, notices may be given by the director Department by delivering a registered letter to the United States Post Office at Boise, Idaho, directed to the agent(s) at the address shown on the current Designation of Agent on file in the director Department's office, and such notice will be deemed service upon the owner and lessee. (10-21-92)(12-21-11)T

111. -- 11924. (RESERVED)

120. SURFACE EQUIPMENT.

Meter fittings of adequate size to measure the gas efficiently for the purpose of obtaining gas-oil ratios shall be installed on the gas vent line of every separator or proper connections made for orifice well tester. Well-head equipment shall be installed and maintained in excellent condition. Valves shall be installed so that pressures can be readily obtained on both casing and tubing. (10-21-92)

121. -- 129. (RESERVED)

125. LOSS OF TOOL WITH RADIOACTIVE MATERIAL.

01. Recovery or Cementing of Tool. If a gamma ray tool, or some other tool containing radioactive material, becomes lost in a well, the owner or operator shall make every reasonable attempt to retrieve the tool from the well. If the tool cannot be recovered, the owner or operator must immediately cover the tool with cement sufficient to secure it in place and prevent it from contacting any fluids in the well. A whipstock or other approved deflection device shall be placed on top of the cement plug to prevent accidental or intentional mechanical disintegration of the radioactive source. (12-21-11)T

02. Sidetracking. If the hole is later sidetracked above the radioactive material, the sidetracked hole must be at least fifteen (15) feet from the original hole with the lost radioactive material. (12-21-11)T

03. Reporting. A report must be sent to the Department and IDEQ within thirty (30) days of cementing the tool. The report must describe the tool that was lost, the depth it was lost at, the specific type and amount of radioactive material in the tool, and an estimate of the length of cement covering the tool. This report may be included in a plugging report if the well will be plugged. (12-21-11)T

126. -- 129. (RESERVED)

130. FIRE HAZARD.

Any rubbish or debris that might constitute a fire hazard shall be removed to a distance of at least one hundred (100) feet from the well location, tanks, and separator. All waste oil shall be burned or disposed of in a manner to avert creating a fire hazard. (10-21-92)(12-21-11)T

(BREAK IN CONTINUITY OF SECTIONS)

160. FIRE PROTECTION.

Dikes or firewalls shall be required where it is deemed necessary by the Commission Department to protect life, health, or property. Such dikes or firewalls must be erected and continuously maintained in good condition around all permanent oil tanks or batteries that are within the corporate limits of any city, town, or village, or where such tanks are closer than one hundred fifty (150) feet to any highway or inhabited dwelling, or closer than one thousand (1,000) feet to any school or church. The capacity of the dike, or firewall, shall be one and one-half (1 1/2) times the capacity of the tank(s) that it surrounds. The reservoir so formed within the dike shall be kept free from vegetation, water, and oil. (10-21-92)(12-21-11)T

161. -- 169. (RESERVED)

170. WELL DIRECTIONAL CONTROL.

01. General Restrictions; Allowable Deviation. The maximum point at which a well penetrates the producing formation shall not unreasonably vary from the vertical drawn from the center of the hole at the surface. Deviation is permitted without special permission to remedy blowouts and, for short distances, to straighten the hole, sidetrack junk, or correct other mechanical difficulties. (10-21-92)

02. Controlled Directional Drilling. Except for the purposes recited in Subsection 170.01, no well hereafter drilled may be intentionally directionally deviated from the vertical unless the owner or operator thereof shall first file application and obtain a permit from the Commission an application and application fee to amend the drilling permit and receive approval from the Department. Such application shall contain the following information: (10-21-92)(12-21-11)T

a. Name and address of the owner or operator. (10-21-92)(12-21-11)T

b. Lease name, well number, name of field and reservoir and county. (10-21-92)

c. Description of surface location and proposed location of the producing interval (footage from lease and section or block and survey lines). (10-21-92)

d. Reason for intentional deviation. (10-21-92)

e. List of offset operators and statement that each has been furnished a copy of the application by registered mail. (10-21-92)

f. Signature of representative of owner or operator. (10-21-92)(12-21-11)T

g. Notification to offset operators that any objection they may have to the proposed intentional deviation of the well must be filed with the Commission Department within fifteen (15) days of receipt of a copy of the application. (10-21-92)(12-21-11)T

h. The application shall be accompanied by a neat, accurate plat or sketch of the lease and all offset leases showing the names of all offset operators and the surface and proposed producing interval locations of the well. Plat shall be drawn to a scale which will permit facile observation of all pertinent data. (10-21-92)

03. Copy of Application to Offset Operators. At the time the application is filed with the Commission Department, a copy of the application and the plat shall be forwarded by registered mail to all offset operators to the lease on which the well is to be drilled. (10-21-92)(12-21-11)T

04. Commission Department Action. Upon receipt, the Commission Department will hold the application for fifteen (15) days. If objection from any offset operator to the proposed intentional deviation is received within fifteen (15) days of receipt of the application by said operator, or if the Commission Department is not in agreement with the proposed deviation, the application shall be set down for public hearing. If no objection from either an offset operator or the Commission Department is interposed within the fifteen (15) day period, the application shall be approved and permit issued by the Commission Department. If written consent of the offset operator(s) is filed concurrently with the application to drill directionally, the Commission Department may immediately approve the application without waiting fifteen (15) days. (10-21-92)(12-21-11)T

05. Angular Deviation and Directional Survey. Upon completion, a complete angular deviation and directional survey of the well obtained by an approved well surveying company shall be filed with the Commission Department, together with other regularly required reports. (10-21-92)(12-21-11)T

06. Application for Exceptions. In the event the proposed, or final, location of the producing interval of the directionally deviated well is not in agreement with spacing or other rules of the Commission applicable to the reservoir, proper applications shall be made to obtain approval of exceptions to such rules. Such approval shall be granted or denied at the discretion of the Commission Department, and shall be accorded with the same consideration and treatment as if the well had been drilled vertically to the producing interval. (10-21-92)(12-21-11)T

171. -- 179. (RESERVED)

180. VACUUM PUMPS PROHIBITED.

The use of vacuum pumps or other devices for the purpose of placing a vacuum orn any gas- or oil-bearing stratum is prohibited; however, the Commission Department may upon application and hearing and for good cause shown permit the use of vacuum pumps. (10-21-92)(12-21-11)T

181. -- 189. (RESERVED)

190. PULLING OUTSIDE STRINGS OF CASING.

Casing shall not be recovered if its recovery will expose any abnormal pressure, lost circulation, oil, gas, or water zone. In pulling outside strings of casing from any oil or gas well, the space outside the casing left in the hole shall be kept and left full of mud-laden fluid of adequate specific gravity to seal off all fresh and saltwater strata and any strata bearing oil or gas which is not producing. Casing may not be pulled without first making application to the Department and receiving approval. The application must describe how fresh waters will be protected. (10-21-92)(12-21-11)T

191. -- 199. (RESERVED)

200. ACCIDENTS AND FIRES.

The owner or operator shall take all reasonable precautions to prevent accidents and fires,. shall An emergency response plan will be prepared and available at the well for use or inspection. Coordination with local emergency responders and the Idaho Bureau of Homeland Security is recommended prior to rig set up. The following actions must be taken in event of a release, industrial accident, or fire of major consequence: (12-21-11)T

01. Provide Information to Emergency Response. Emergency workers will be given information on all fluids or chemicals involved in a spill or accident as needed according to OSHA Standard 1910.1200 (Hazard Communication). Nothing in this rule shall authorize any person to withhold information that is required by state or federal law to be provided to a health care professional, a doctor, or a nurse. All information required by a health care professional, a doctor, or a nurse shall be supplied, immediately upon request, by the owner or operator, or their contractors, directly to the requesting health care professional, doctor, or nurse, including the percent by volume of the chemical constituents (and associated CAS numbers) in the fluids and the additives; (12-21-11)T

02. Initiate Spill Response and Corrective Actions. Owner or operator must comply with the requirements of IDAPA 58.01.02, "Water Quality Standards," Sections 850 through 852; and (12-21-11)T

03. Notify the Department. nNotify the director Department within twenty-four (24) hours of all accidents (other than personal injuries and deaths) or fires of major consequence, and shall submit a full report thereon within fifteen (15) days. (10-21-92)(12-21-11)T

201. -- 209. (RESERVED)

210. PRODUCING FROM DIFFERENT POOLS THROUGH THE SAME CASING STRING.

No well shall be permitted to produce either oil or gas from different pools through the same string of casing without first receiving written permission from the director Department. (10-21-92)(12-21-11)T

211. -- 219. (RESERVED)

220. MULTIPLE ZONE COMPLETIONS.

01. Requirements of the Owner or Operator; Request for Approval. A multiple zone completion may be approved by the director Department upon application therefor by the owner or operator and payment of an application fee, as herein provided. The application shall be accompanied by an exhibit showing the location of wells on applicant's lease and all offset wells on leases, and shall set forth all material facts involved and the manner and method of completion proposed, including a diagrammatic sketch of the mechanical installation of the proposed well. The application fee may not exceed that required by Subsection 050.02 of these rules. Notice of the filing of such application shall be given by the applicant by mailing to each owner within one-half (1/2) mile of the affected well(s) offset operator a notice containing a full description of the proposed completion for which approval is requested, and proof of mailing such notice shall be made by affidavit, which shall be attached to the application showing names and addresses of those to whom notice was mailed. (10-21-92)(12-21-11)T

02. Conditions for Approval; Cause for Hearing. In the event the director Department is in agreement with the application and that no owner offset operator files a written objection to the application with the director Department within fifteen (15) days of the date of the owner's offset operator's receipt of application, the application shall be approved as an amendment to the drilling permit. If any owner offset operator shall file in writing with the director Department an objection to such multiple completion, or if the director Department is not in agreement with the application, the matter shall be immediately set for hearing and Notice of Hearing duly given by the Commission Department. (10-21-92)(12-21-11)T

03. Zone Effectiveness; Requirement for Production Testing. The director Department may require such tests as he determines necessary to determine the effectiveness of the segregation of the different productive zones. (10-21-92)(12-21-11)T

04. Commingling Production. The Department may require that oil or gas from multiple zones be produced through different sets of tubing, if needed to protect correlative rights or to prevent waste. (12-21-11)T

(BREAK IN CONTINUITY OF SECTIONS)

231. -- 2349. (RESERVED)

240. DISPOSAL OF BRINE OR SALT WATER.

01. Conditions for Disposal by Earthen Evaporation Pit; Impervious Floor. Brine or salt water may be disposed of by evaporation when impounded in excavated earthen pits, which may only be used for such purpose when the pit is underlaid by tight soil such as heavy clay or hardpan. (10-21-92)

02. Conditions for Disposal by Earthen Evaporation Pit; Porous Floor. When the soil under the pit is porous and closely underlaid by a gravel or sand stratum, impounding brine or salt water in such earthen pits is hereby prohibited. When such water is impounded in an earthen pit, it shall be constructed and maintained to prevent escape of such water therefrom. (10-21-92)

03. Earthen Pits; Condemnation Due to Improper Impoundment. The Commission shall have authority to condemn any pit which does not properly impound such water and order the disposal of such water into an underground formation as herein provided. (10-21-92)

04. Earthen Pits; General Conditions for Operation. The level of brine or salt water in earthen pits shall at no time be permitted to rise above the lowest point of the ground surface level. All pits shall have a continuous embankment surrounding them sufficiently above the level of the surface to prevent surface water from running into the pit. Such embankment shall not be used to impound brine or salt water. (10-21-92)

05. Earthen Pits; Prohibition of Adjacent Land or Stream Pollution. At no time shall brine or salt water impounded in earthen pits be allowed to escape over adjacent lands or into streams. (10-21-92)

06. Disposal Wells; Pollution Prohibited. Disposal wells shall be cased and the casing cemented in such manner that damage will not be caused to oil, gas, or freshwater sources. See Section 250. (10-21-92)

241. -- 249. (RESERVED)

250. PROCEDURE FOR UNDERGROUND DISPOSAL OF WATER CLASS II INJECTION WELLS. Class II injection wells, as described in IDAPA 37.03.03, "Rules and Minimum Standards for the Construction and Use of Injection Wells," are currently not authorized under this rule. Permits for Class II injection wells must be obtained through IDAPA 37.03.03. (12-21-11)T

01. Approval Required. The underground disposal of salt water, brackish water, or other water unfit for domestic, livestock, irrigation, or other general uses is permitted only upon order of the Commission or upon approval of the director as provided in this rule. (10-21-92)

02. Procedures for Application. The application for underground disposal of salt water, brackish water, or other water unfit for domestic, livestock, irrigation, or other general uses shall be verified by applicant and filed with the director containing: (10-21-92)

a. A plat showing location of the disposal well(s), including abandoned and drilling wells and dry holes and the names of owners within one-half (1/2) mile of the proposed disposal well(s). (10-21-92)

b. The names, description, and depth of the formation into which water is to be injected, including a mechanical log of the proposed disposal well(s) if one is available. (10-21-92)

c. A description of the casing in the disposal well(s) or the proposed casing program and the proposed method for testing casing before use of the disposal well(s). (10-21-92)

d. A statement specifying the source of water to be injected. (10-21-92)

e. The estimated minimum and maximum amount of water to be injected daily. (10-21-92)

f. Notice of the filing of such application shall be given by the applicant by mailing to each owner within one-half (1/2) mile of the affected well(s) a notice containing a full description of the proposed disposal operation for which approval is required, and proof of mailing such notice shall be made by affidavit which shall be attached to the application showing names and addresses of those to whom notice was mailed. (10-21-92)

g. Conditions for Approval; Cause for Hearing. In the event the director is in agreement with the application and that no owner files a written objection to the application with the director within fifteen (15) days of receipt of the application, the application shall be approved. If any owner shall file in writing with the director an objection to such disposal program, or if the director is not in agreement with the application, the matter shall be immediately set for hearing and notice of hearing duly given by the Commission. (10-21-92)

251. -- 2594. (RESERVED)

255. SURFACE EQUIPMENT.

01. General Requirements. Meter fittings of adequate size to measure the gas efficiently for the purpose of obtaining gas-oil ratios shall be installed on the gas vent line of every separator or proper connections made for orifice well tester. Well-head equipment shall be installed and maintained in excellent condition. Valves shall be installed so that pressures can be readily obtained on both casing and tubing. (12-21-11)T

02. Meter Calibration. All required meters shall be calibrated at least once per calendar year. The records of such calibration shall be maintained or made available by the owner or operator of the well and shall be available for inspection by the Department. Such records shall be maintained by the owner or operator for a period of at least five (5) years. (12-21-11)T

03. Visibility. All required meters shall be accessible and viewable by the Department for the purpose of monitoring daily, monthly and/or cumulative production volumes from individual wells. (12-21-11)T

256. -- 259. (RESERVED)

260. MEASUREMENT OF OIL.

The volume of production of oil shall be computed in terms of barrels of clean oil on the basis of meter measurements or tank measurements of oil-level difference made and recorded to the nearest quarter-inch (1/4") of one hundred percent (100%) capacity tables, subject to the following corrections: (10-21-92)

01. Correction for Impurities. The percentage of impurities (water, sand, and other foreign substances, not constituting a natural component part of the oil) shall be determined to the satisfaction of the director Department, and the observed gross volume of oil shall be corrected to exclude the entire volume of such impurities. (10-21-92)(12-21-11)T

02. Temperature Correction. The observed volume of oil corrected for impurities shall be further corrected to the standard volume at sixty (60) Degrees F in accordance with ASTM D-1250-08, Table 7, or any revisions thereof and any supplements thereto, or any close approximation thereof approved by the director Department. (10-21-92)(12-21-11)T

03. Gravity Determination. The gravity of oil at sixty (60) degrees F shall be determined in accordance with ASTM D-1250-08, Table 5, or any revisions thereof and any supplements thereto approved by the director Department. (10-21-92)(12-21-11)T

261. -- 269. (RESERVED)

270. MEASUREMENT OF GAS.

Gas of all kinds shall be measured by meter unless otherwise authorized by the director.

01. Gas Metering. For protection of correlative rights of all parties, the owner or operator of a natural gas well shall meter or caused to be metered all natural gas produced from a well, utilizing a standard industry meter approved by the American Gas Association and capable of recording accurately the volume of natural gas produced at each well, unless another methodology, approved by the director, is utilized to provide for proper production allocation back to the individual well from a central point production meter or central point sales meter, which ever meter occurs first. (12-21-11)T

02. Gas Measurement. For computing volume of gas to be reported to the director Department, the standard of pressure shall be fourteen point seventy-three (14.73) psia atmospheric, and the standard of temperature shall be sixty (60) Degrees F. All volumes of gas to be reported to the director Department shall be adjusted by computation to these standards, unless otherwise authorized by the director Department. (10-21-92)(12-21-11)T

271. -- 279. (RESERVED)

280. GAS-OIL RATIO LIMITATION.

01. Waste Prevention; Conditions for Emergency Order. To further prevent waste resulting from the production of wells with inefficient gas-oil ratios, the Department may enter an emergency order temporarily prohibiting the production of oil or gas from all wells in a pool producing both oil and gas when the Department believes that waste may be occurring or is imminent in said pool by reason of the operation of wells with inefficient gas-oil ratios. The order shall specify a date for the hearing described in Subsection 280.02 of these rules. The Department may use information provided by an offset operator or an owner or operator in a common source of supply to determine if waste is occurring. (12-21-11)T

012. Notice and Cause for Hearing. To prevent waste resulting from the operation of wells with inefficient gas-oil ratios, the Commission may upon its own motion, or upon the application of any interested party, if reasonable cause exists, hold a hearing to determine whether waste is occurring or is imminent in a pool by reason of the operation therein of wells with inefficient gas-oil ratios. The Department will notify all offset operators and owners or operators in the common source of supply of the hearing date. A hearing regarding waste due to inefficient gas-oil ratios will held for any of the following reasons: (10-21-92)(12-21-11)T

i. If an emergency order is issued as described in Subsection 280.01 of these rules. The hearing will be scheduled between five (5) and fifteen (15) days after the effective date of the order. (12-21-11)T

ii. Upon application to the Department from any person with an ownership interest in the common source of supply who believes that waste is occurring due to inefficient oil and gas ratios. The application must include credible evidence of such waste. The hearing shall be held within thirty (30) days of the Department receiving the application. (12-21-11)T

iii. Prior to an emergency situation and upon its own motion with reasonable cause, the Department may schedule a hearing regarding potential waste due to inefficient gas-oil ratios. (12-21-11)T

023. Determination of Inefficient Ratios; Power to Limit Production. If the Commission Department after notice and hearing, whether held upon its own motion, upon the application of an interested party, or pursuant to an emergency order entered as hereinafter provided for, shall find that a well(s) in the pool are operating with inefficient gas-oil ratios, and that waste is occurring or is imminent as a result thereof, it shall enter an order limiting the production of oil and gas from said pool to that amount which the pool can produce without waste and in accordance with sound engineering practice. The order shall also limit the amount of oil or gas, or both, that may be produced from any well in the pool, so that each owner or operator is given an opportunity to produce his just and equitable share in the pool in accordance with sound engineering practice. (10-21-92)(12-21-11)T

03. Waste Prevention; Conditions for Emergency Order. To further prevent waste resulting from the production of wells with inefficient gas-oil ratios, the Commission will enter an emergency order temporarily prohibiting the production of oil or gas from all wells in a pool producing both oil and gas when: (10-21-92)

a. The director believes that waste may be occurring or is imminent in said pool by reason of the operation of wells with inefficient gas-oil ratios; or when (10-21-92)

b. An application is filed by any interested party alleging that a well(s) completed in the pool is producing therefrom at a gas-oil ratio in excess of two thousand (2,000) cubic feet of gas for each barrel of oil produced and that waste is occurring or is imminent as a result thereof. Any such applicant shall also show the name and address of each owner of a well completed in and capable of producing from said pool. (10-21-92)

04. Emergency Order; Requirement for Hearing. Any emergency order issued under this rule shall provide for a hearing to be held to determine whether waste is occurring or is imminent. The date for the hearing shall be not less than five (5) nor more than fifteen (15) days after the effective date of the emergency order and shall be specified in said order. In addition to any other notice required by the Act, the Commission shall mail a copy of said emergency order to each owner of a well completed in and capable of producing from said pool. (10-21-92)

281. -- 289. (RESERVED)

290. GAS-OIL RATIO SURVEYS AND REPORTS.

Within thirty (30) days following the completion or recompletion of each well producing oil and gas and thereafter as the Commission Department may require, the owner or operator of such well shall make a gas-oil ratio test of such well and the results of such test shall be reported to the Commission Department within twenty (20) days after the test is made. Certain wells may be excepted from this rule by the director Department upon written request. Entire fields may be excepted from this rule after notice and hearing. (10-21-92)(12-21-11)T

291. -- 299. (RESERVED)

300. GAS UTILIZATION.

After the owner or operator has completed and has had a reasonable opportunity to test a gas well, no gas from such well shall be permitted to escape into the air, and all gas produced therefrom shall be utilized without waste. (10-21-92)(12-21-11)T

301. -- 309. (RESERVED)

310. SECONDARY RECOVERY (INCLUDING WATER FLOODING) AND PRESSURE MAINTENANCE OPERATIONS.

01. Applications for Secondary Recovery Projects. (10-21-92)

a. Applications Required. Applications for water flooding or other secondary recovery operations, repressuring, or pressure-maintenance operations, cycling or recycling operations, including the extraction and separation of liquid hydrocarbons from natural gas in connection therewith, shall be filed by one (1) or more of the parties involved, or the operator of said project with the director. (10-21-92)

b. Requirements of the Application. The application for all permits for pressure maintenance or secondary recovery shall contain the following: (10-21-92)

i. Plat showing the unit, lease, or group of leases included within the proposed project. Plat shall also show the location of the proposed intake well(s) and the location of all oil and gas wells, including abandoned and drilling wells and dry holes, and the names of all operators offsetting the area encompassed within the project; (10-21-92)

ii. Formations in which all wells are currently completed; (10-21-92)

iii. Name, description, and depth of the formation (common reservoir or common source of supply) to be affected by injection; (10-21-92)

iv. Log of any existing intake well(s) or such information as is available; (10-21-92)

v. Description of the intake well's casing or the proposed casing program, and proposed method for testing casing before use of the input wells; (10-21-92)

vi. Statement as to the injection medium to be used, its source, and the estimated amounts to be injected daily; (10-21-92)

vii. Tabulations showing recent oil-gas ratios and oil and water production tests for each of the producing oil and gas wells; (10-21-92)

viii. Statement of the plan of development of the area included within the project; and (10-21-92)

ix. Names and addresses of the operator(s) of the project. (10-21-92)

c. Notification of Adjacent Property Owners. In addition to the notice required by law, a copy of such application shall be mailed or delivered by the applicant to each owner within three-fourths (3/4) mile of the project as shown on the application. Such copy of application shall be mailed or delivered on or before the date the application is filed with the Commission. A statement shall be attached to the application showing the parties to whom such copies have been mailed or delivered and their addresses. (10-21-92)

d. Conditions for Approval; Cause of Hearing. If the application has requested approval of the operation as a pilot project; if director is in agreement with the application; and if no owner within three-fourths (3/4) mile files a written objection to the application with the director within fifteen (15) days of the date of receipt of the application, the application shall be approved as a pilot project without the necessity of a hearing. In all other cases, the matter shall be immediately set for hearing. Notice of the hearing shall be given by the Commission. At any time after the approval of an operation as a pilot project, if the director or the operator of the project believes that sufficient information has been obtained so that the operation is no longer a pilot project, either of them may request a hearing before the Commission for approval of the operation. (10-21-92)

02. Casing and Cementing of Injection Wells. Wells used for injection of gas, air, or water or other extraneous fluids into the producing formation shall be cased with safe and adequate casing or tubing to prevent leakage or damage to oil, gas, or freshwater sources. (10-21-92)

03. Notice of Commencement and Discontinuance of Injection Operations. The following provisions shall apply to all injection projects: (10-21-92)

a. Immediately upon commencement of injection operations, the operator shall notify the director of the injection date. (10-21-92)

b. Within fifteen (15) days after the discontinuance of injection operations, the operator shall notify the director of the date of such discontinuance and the reasons therefor. (10-21-92)

c. Before any intake well shall be plugged, notice shall be served to the director by the owner of said well, and the same procedure shall be followed in the plugging of such well as provided for the plugging of oil and gas wells. (10-21-92)

04. Records and Reports. Each operator of a pressure maintenance or secondary recovery project shall keep accurate records showing oil produced, injected volumes, and injection pressure. Each operator shall file with the director a monthly report which shall show all produced and injected volumes and other data as required by the Commission. (10-21-92)

3101. -- 319. (RESERVED)

320. WELL PLUGGING.

01. Plugging Required. The operator or owner shall not permit any well drilled for oil, gas, saltwater disposal or any other purpose in connection with the production of oil and gas, to remain unplugged after such well is no longer used for the purpose for which it was drilled or converted. (10-21-92)

02. Notice of Intention to Abandon Well. Before beginning abandonment work on any well, whether drilling well, an oil or gas well, injection well, or so-called dry hole, a Notice of Intention to Abandon shall be filed with the director Department and approval obtained as to the method of abandonment before the work is started. The notice must show the reason for abandonment and must give a detailed statement of the proposed work, including such information as kind, location, and length of plugs (by depths), and plans for mudding, cementing, shooting, testing, and removing casing as well as any other pertinent information. (10-21-92)(12-21-11)T

03. Plugging Dry Holes. If a nonproductive well, or dry hole, is drilled and not needed for any specific purpose, it must be plugged and abandoned prior to removal of the drill rig. A verbal notification and approval may be used for dry holes in lieu of the written notification referenced in Subsection 320.02 of these rules. The standards in Subsections 320.04 through 320.06 of these rules will still apply. (12-21-11)T

034. Plugging of Wells. The owner or operator of any well drilled for oil or gas, or any seismic, core, or other exploratory holes, whether cased or uncased, and regardless of diameter shall be responsible for the plugging of said hole in a manner sufficient to properly protect all freshwater-bearing and possible or probable oil- or gas-bearing formations in agreement with the requirements of the director. The material used in plugging, whether cement, mechanical plug, or some other equivalent method approved in writing by the Director, must be placed in the well in a manner to permanently prevent migration of oil, gas, water, or other substance from the formation or horizon in which it originally occurred. The preferred plugging cement slurry is that recommended in API Bulletin E3. Pozzolan, gel, and other approved extenders may be used if the owner or operator can document to the Department's satisfaction that the slurry design will achieve a minimum compressive strength of three hundred (300) psi after twenty-four (24) hours, and eight hundred (800) psi after seventy-two (72) hours measured at ninety-five (95) degrees F and at eight hundred (800) psi. No substances of any nature or description other than those normally used in plugging operations shall be placed in any well at any time during plugging operations. (10-21-92)(12-21-11)T

05. Plugged Intervals. The following plugging standards shall be followed for all wells: (12-21-11)T

a. Cement must be placed for a length of at least one hundred (100) feet on either side of each casing shoe, or casing bottom if no shoe is present. If the bottom of the hole is less than one hundred (100) feet from the bottom of the lowest casing, then the entire length of the uncased hole below the casing will be cemented. (12-21-11)T

b. In the uncased portions of a well, cement plugs must be placed to extend from one hundred (100) feet below the bottom up to one hundred (100) feet above the top of any oil, gas, and abnormally high pressure zones, so as to isolate fluids in the strata in which they are found and to prevent them from escaping into other strata. (12-21-11)T

c. A cement plug shall be placed a minimum of one hundred (100) feet above all producing zones in uncased portions of a well. (12-21-11)T

d. A cement plug shall be placed a minimum of fifty (50) feet above and below the following intervals: (12-21-11)T

i. Where the casing is perforated or ruptured. If no cement is present behind the casing, then cement must also be squeezed out the perforations or ruptures and into the annular space between the casing and the borehole. (12-21-11)T

ii. Top and bottom of fresh water zones. If fresh water zone is less than one hundred (100) feet thick, then continuous cement must be placed from fifty (50) feet below the zone upward to fifty (50) feet above the zone. (12-21-11)T

e. The top of all cement plugs will be tagged to verify their depth. (12-21-11)T

f. The owner or operator shall have the option as to the method of placing cement in the hole by: (12-21-11)T

i. Dump bailer; (12-21-11)T

ii. Pumping a balanced cement plug through tubing or drill pipe; (12-21-11)T

iii. Pump and plug; or (12-21-11)T

iv. Equivalent method approved by the Director prior to plugging. (12-21-11)T

g. Unless prior approval is given, all wellbores shall have water based drilling muds, high viscosity pills, or other approved fluids between all plugs. (12-21-11)T

h. All abandoned wells shall have a plug or seal placed at the surface of the ground or the bottom of the cellar in the hole in such manner as not to interfere with soil cultivation or other surface use. The top of the pipe must be sealed with either a cement plug and a screw cap, or cement plug and a steel plate welded in place or by other approved method, or in the alternative be marked with a permanent monument which shall consist of a piece of pipe not less than four (4) inches in diameter and not less than ten (10) feet in length, of which four (4) feet shall be above the general ground level, the remainder to be embedded in cement or to be welded to the surface casing. (12-21-11)T

046. Subsequent Report of Abandonment. If a well is plugged or abandoned, a subsequent record of work done must be filed with the director Department. This report shall be filed separately within thirty (30) days after the work is done. The report shall give a detailed account of the manner in which the abandonment of plugging work was carried out, including the weight of mud, the nature and quantities of materials used in plugging, the location and extent (by depths) of the plugs of different materials, and the records of any tests or measurements made and of the amount, size, and location (by depths) of casing left in the well. If an attempt was made to part any casing, a complete report of the method used and the results obtained must be included. (10-21-92)(12-21-11)T

057. Wells Used for Fresh Water (Cold Water < 85 degrees Fahrenheit), Low Temperature Geothermal (85 - 212 Degrees Fahrenheit) or Geothermal Wells (>212 Degrees Fahrenheit). When the well, seismic, core, or other exploratory hole to be plugged may safely be used as a fresh water well, and such utilization is desired by the landowner, the well need not be filled above the required sealing plug set below fresh water; provided that written authority for such use is secured from the landowner and in such written authority, the landowner assumes the responsibility to plug the well upon its abandonment as a water well in agreement with applicable law. Such written authority and assumption of responsibility shall be filed with the director. (10-21-92)(12-21-11)T

a. Oil and gas wells, seismic, core or other exploratory holes no longer being used for their original purpose may not be converted into fresh water, low temperature geothermal, or geothermal wells unless the following actions occur: (12-21-11)T

i. Owner, operator, or surface owner files an application with the IDWR describing the conversion and the proposed use for the water or geothermal resource and any modifications necessary to meet the applicable well construction standards; (12-21-11)T

ii. The surface owner provides written documentation assuming responsibility for the converted well including, should it become necessary, decommissioning (plugging) of the converted well in accordance with applicable law; (12-21-11)T

iii. IDWR issues a permit for a geothermal resource well, a water right, or recognizes a domestic exemption authorizing the withdrawal of water from the converted well; and (12-21-11)T

iv. A licensed driller in Idaho inspects and certifies that the converted well meets all well construction standards for its intended purpose. (12-21-11)T

b. The Department's bond may not be released, and the oil and gas permit cancelled, until all requirements in Paragraph 320.07.a. of these rules are met. (12-21-11)T

321. -- 3294. (RESERVED)

325. SURFACE RECLAMATION.

01. Timing of Reclamation. After the plugging and abandonment of a well or closure of other oil and gas facilities, all reclamation work described in this Section shall be completed within twelve (12) months. The Director may grant an extension where unusual circumstances are encountered, but every reasonable effort shall be made to complete reclamation before the next local growing season. (12-21-11)T

02. General Clean Up. All debris, abandoned gathering line risers and flowline risers, surface equipment, supplies, rubbish, and other waste materials shall be removed within three (3) months of plugging a well. The burning or burial of such material on the premises shall be performed in accordance with applicable local, state, or federal solid waste disposal and air quality regulations. In addition, material may be burned or buried on the premises only with the prior written consent of the surface owner. (12-21-11)T

03. Road Removal. All access roads to plugged and abandoned wells and associated production facilities shall be ripped, regraded, and recontoured unless otherwise specified in a surface use agreement. Culverts and any other obstructions that were part of the access road(s) shall be removed. Roads to be left will be graded to drain and prepared with rolling dips or other best management practices to minimize erosion. (12-21-11)T

04. Regrading. Drill pads, pits, berms, cut and fill slopes, and other disturbed areas will be regraded to approximate the original contour. Where possible, slopes should be reduced to three (3) horizontal feet to one (1) vertical foot (3H:1V) or flatter. (12-21-11)T

05. Compacted Areas. All areas compacted by drilling and subsequent oil and gas operations that are no longer needed following completion of such operations shall be cross-ripped. Ripping shall be undertaken to a depth of eighteen (18) inches or bedrock, whichever is reached first. (12-21-11)T

06. Topsoiling. Stockpiled topsoil shall be replaced in a manner that will support reestablishment of the pre-disturbance land use and contoured to control erosion and provide long-term stability. If necessary, topsoiled areas shall be tilled adequately in order to establish a proper seedbed. (12-21-11)T

07. Revegetation. (12-21-11)T

a. The owner or operator shall select and establish plant species that can be expected to result in vegetation comparable to that growing on the affected lands prior to the oil and gas operations. Certified weed free seed should be used in revegetation. The owner or operator may use available technical data and results of field tests for selecting seeding practices and soil amendments that will result in viable revegetation. (12-21-11)T

b. The disturbed areas shall be reseeded in the first favorable season following rig demobilization, site regrading, and topsoil replacement. (12-21-11)T

c. Unless otherwise specified in the approved permit, the success of revegetation efforts shall be measured against the existing vegetation on site prior to the oil and gas operations, or against an adjacent reference area supporting similar types of vegetation. Reseeding or replanting is required until the following cover standards are met: (12-21-11)T

i. The ground cover of living plants on the revegetated area should be comparable to the ground cover of living plants on an adjacent reference area for two (2) full growing seasons after cessation of soil amendment or irrigation, if used; (12-21-11)T

ii. Ground cover shall be considered comparable if the planted area has at least seventy percent (70%) of the pre-disturbance, or adjacent reference area, ground cover; (12-21-11)T

iii. For locations with an average annual precipitation of more than twenty-six (26) inches, the Department, in approving a drilling permit or a pit, may set a minimum standard for success of revegetation as follows: Vegetative cover of seventy percent (70%) for two (2) full growing seasons in areas planted to herbaceous species only; or fifty percent (50%) vegetative cover for two (2) full growing seasons and six hundred (600) woody plants per acre in areas planted to a mixture of herbaceous and woody species; (12-21-11)T

iv. As used in this section, "herbaceous species" means grasses, legumes, and other forbs; "woody plants" means woody shrubs, trees, and vines; and "ground cover" means the area of the ground surface covered by the combined aerial parts of vegetation and the litter that is produced naturally on-site, expressed as a percentage of the total area measured. Rock surface areas will be excluded from this calculation; and (12-21-11)T

v. In all cases, vegetative cover shall be established to the extent necessary to control erosion. (12-21-11)T

d. Introduced species may be planted if they are known to be comparable to previous vegetation, or if known to be of equal or superior use for the approved post-reclamation land use, or, if necessary, to achieve a quick, temporary cover for soil stabilization purposes. Species classified as poisonous or noxious weed species shall not be used in revegetation. (12-21-11)T

e. By mutual agreement of the Department, the surface owner, and the owner or operator, a site may be converted to a different, more desirable or more economically suitable habitat. (12-21-11)T

f. Planting of grasses and forbs should be done in a manner which promotes rapid stabilization of the soil surface. Wherever terrain permits, grasses and forbs should be drilled or compacted into the ground using agricultural grass planting equipment or other seeders specifically designed for revegetation applications. Broadcast and hydroseeding may be used on areas where other methods are impractical or unavailable. (12-21-11)T

g. The owner or operator should plant shrubs or shrub seed, as required, where shrub communities existed prior to oil and gas operations. Shrub seed may be planted as a portion of a grass seed mix or planted as bare-root transplants after grass seeding. Where the surface owner desires a specific land use such as grazing or cropland, shrubs will not be required in the revegetation species mix. Shrub lands undergoing revegetation with shrubs shall be protected from erosion by vegetation, chemical binders, or other acceptable means during establishment of the shrubs. (12-21-11)T

h. Tree stocking of forestlands should meet the following criteria: (12-21-11)T

i. Trees that are adapted to the site should be planted in a density which can be expected over time to yield a timber stand comparable to pre-disturbance timber stands; (12-21-11)T

ii. Trees shall be established for two (2) full growing seasons after cessation of any soil amendments and irrigation before they are considered to be established; and (12-21-11)T

iii. Forestlands undergoing revegetation with trees should be protected from erosion by vegetation, chemical binders, or other acceptable means during seedling establishment. (12-21-11)T

i. Revegetation is not required on areas that the surface owner wishes to incorporate into an irrigated field and any roads which will be used for other oil and gas operations. (12-21-11)T

j. Mulch should be used on severe sites and may be required by the permit where slopes are steeper than three (3) horizontal feet to one (1) vertical foot (3H:1V) or the mean annual rainfall is less than twelve (12) inches. When used, straw, or hay mulch should be obtained from certified weed free sources. "Mulch" means vegetation residues or other suitable materials to aid in the stabilization of soil and soil moisture conservation which will provide a micro-climate more suitable for germination and growth on severe sites. Annual grains such as rye, oats, and wheat may be used as a substitute for mulch where they will provide adequate protection and will be replaced by permanent species within a reasonable length of time. (12-21-11)T

08. Reclamation Under a Surface Use Agreement. Notwithstanding the requirements of Subsections 325.03 through 325.07 of this rule, reclamation may be superseded by the conditions of a surface use agreement as long as the site is left in a stable, non-eroding condition that will not impact fresh waters. (12-21-11)T

326. -- 329. (RESERVED)

330. WELL SPACING.

In the absence of an order by the Commission setting spacing units for a pool, or a unit operation as described in Section 340, the following rules shall apply: (10-21-92)(12-21-11)T

01. Wells Drilled for Oil; Standard Spacing Unit and Well Location. Every well drilled for oil must be located in the center of a forty (40) acre governmental quarter quarter section, lot or tract, or combination of lots or tracts substantially equivalent thereto as shown by the most recent governmental survey, with a tolerance of two hundred (200) feet in any direction from the center location; provided that no oil well shall be drilled less than nine hundred twenty (920) feet from any other well drilling to or capable of producing oil from the same pool, or no oil well shall be completed in a known pool unless it is located more than nine hundred twenty (920) feet from any other well completed in and capable of producing oil from the same pool. (10-21-92)

02. Wells Drilled for Gas; Standard Spacing Unit and Well Location. Every well drilled for gas must be located on a drilling unit consisting of approximately six hundred forty (640) contiguous surface acres, which shall be one governmental section or lot(s) equivalent thereto, upon which there is not located, and of which no part is attributed to, any other well completed in or drilling to the same pool. In areas not covered by United States Public Land Surveys, such drilling unit shall consist of an area which is: 1) bounded by four (4) sides intersecting at angles of not less than eighty five (85) degrees or more than ninety five (95) degrees; 2) the distance between two (2) points farthest apart thereon shall not exceed eight thousand five hundred (8,500) feet; and 3) shall contain at least six hundred (600) contiguous surface acres. In areas covered by United States Public Land Surveys, such drilling unit shall consist of one governmental section containing not less than six hundred (600) surface acres. Each well drilled for gas shall be located within a square, each side of which is one thousand six hundred sixty (1,660) feet in length and parallel to a center line of the section. The center of such square shall coincide with the geometric center of the section. (10-21-92)

03. Well Locations Adjacent to Spaced Areas. The Commission shall have the discretion to determine the pattern location of wells adjacent to an area spaced by the Commission, or under application for spacing where there is sufficient evidence to indicate that the pool or reservoir spaced or about to be spaced may extend beyond the boundary of the spacing order or application, and the uniformity of spacing patterns is necessary to insure orderly development of the reservoir pool. (10-21-92)

04. Exceptions to Location of Wells and Well-Spacing Orders. Upon proper application therefore, the director Department may approve, as an administrative matter, an exception to Subsections 330.01 and 330.02 or any order of the Commission establishing well spacing for a pool. If for any reason the Commission shall fail or refuse to approve such an exception, the director may, after notice and hearing, grant the exception. The application for an exception shall state fully the reasons why such an exception is necessary or desirable and shall be accompanied by a plat showing: (10-21-92)(12-21-11)T

a. The location at which an oil or gas well could be drilled in compliance with Subsections 330.01 or 330.02 or the applicable order; (10-21-92)

b. The location at which the applicant requests permission to drill; and (10-21-92)

c. The location at which oil or gas wells have been drilled or could be drilled, in agreement with Subsections 330.01 or 330.02 or the applicable order, directly or diagonally offsetting the proposed exception. No exception shall prevent any owner or operator from drilling an oil or gas well on adjacent lands, directly or diagonally offsetting the exception, at locations permitted by Subsections 330.01 or 330.02 or any applicable order of the Commission establishing oil or gas well-spacing units for the pool involved. (10-21-92)(12-21-11)T

331. -- 339. (RESERVED)

340. UNIT OPERATIONS.

Any person desiring to obtain the benefits of Section 47-323, Idaho Code, relating to any method of unit, cooperative development, or operation of a field or pool or a part of either, shall file an application with the director Department for approval of such agreement which shall have attached a copy of such agreement. Notice of the hearing of such application shall be given by publication of a legal notice in a newspaper of general circulation in Ada County, Idaho, and the county of the unit operation. (10-21-92)(12-21-11)T

341. -- 349. (RESERVED)

350. WRITTEN NOTICES, REQUESTS, PERMITS AND REPORTS.

The Commission Department shall adopt such forms of notices, requests, permits, and reports as it may deem advisable or necessary in carrying out the provisions of law and its rules and regulations. (10-21-92)(12-21-11)T

351. -- 359. (RESERVED)

360. GEOPHYSICAL OPERATIONS.

02. Notice to Inhabitants. Before a geophysical contractor conducts surface shooting operations, he shall give notice to an occupant of every inhabited dwelling within a one-mile radius of each shot point. Such notice shall be given in writing or by in-person contact. The notice shall tell the occupant of the nature and approximate time period of the seismic surface shooting activity. (10-21-92)

021. Permit Required. Before beginning seismic shothole operations in the state of Idaho, a representative of the client company and the seismic contractor shall meet with the staff of the Commission and Department, file an application for a permit to conduct seismic operations, and pay an application fee. No seismic operation shall be conducted without such a permit. The director Department has discretion to waive the requirement of the pre-permit meeting for the client company. The permit for seismic operations may be revoked or suspended or the application for the permit denied by the Commission or director Department for failure to comply with the Commission's rules, statutes, and orders. The director Department may revoke, suspend, or deny the application for a seismic permit without a hearing; provided that the seismic contractor shall be given an opportunity for a hearing at the next regularly scheduled Commission meeting. The fact that a permit is revoked or suspended does not excuse the seismic contractor or client company from properly plugging existing seismic holes but does prohibit the person(s) from drilling any more. The application for a permit for seismic operations must include: (10-21-92)(12-21-11)T

a. The proposed route of the seismic line on a topographic or recent air photo base map at a sufficient scale to show roads, buildings, surface waters, and Section, Township, and Range lines. The map must also show additional area as needed for any alternative routing. The alternative routing must be within at least one-half (1/2) mile of the proposed route. Reapplication must be made if the final route strays from the proposed route and outside the designated alternative routing areas; and (12-21-11)T

b. The energy sources proposed to be used for the seismic operation, such as vibroseis, shot holes, surface shot, or others. (12-21-11)T

ac. The approximate number, depth, and location of the seismic holes and the size of the explosive charges. The application shall be accompanied by a map with a scale of one inch equaling two (2) miles that shows the depth and location of the shotholes. (10-21-92)

bd. The name and permanent address of the client company the Commission or director Department may contact about the seismic operation. (10-21-92)(12-21-11)T

ce. The name, permanent address, and phone number of the seismic contractor and his local representative whom the Commission or director Department may contact about the seismic activity. (10-21-92)(12-21-11)T

df. The name, phone number, and permanent address of the hole plugging contractor, if different from the seismic contractor. (10-21-92)

eg. A detailed description of the hole plugging procedures, and a description of the surface reclamation procedures, if such reclamation is needed. (10-21-92)(12-21-11)T

fh. The anticipated starting date of seismic and plugging operations. (10-21-92)(12-21-11)T

gi. The anticipated completion date of seismic and plugging operations, and the anticipated date of any required reclamation or hole plugging. (10-21-92)(12-21-11)T

hj. A description of the identifying mark that will be on the hat or nonmetallic plug to be used in the plugging of the seismic hole. (10-21-92)

02. Operating Requirements. All geophysical operations must comply with the following requirements: (12-21-11)T

a. All vehicles utilized by the permit holder, or its agents or contractors, shall be clearly identified by signs or markings utilizing letters or numbers, or a combination thereof, a minimum of three (3) inches in height and one-half (1/2) inch wide, indicating the name of such agent. (12-21-11)T

b. No seismic source generation from vibroseis, shot holes, surface shot, or other method shall be conducted within two hundred (200) feet of any residence, water well, oil well, gas well, injection well or other structure without having first secured the express written authority of the owner(s) thereof and the permit holder shall be responsible for any resulting damages. (12-21-11)T

c. Written authority from the owner of a residence, water well, oil well, gas well, injection well or other structure must also be obtained from the owner(s) if any explosive charge exceeds the maximum allowable charge within the scaled distance below: (12-21-11)T

DISTANCE TO STRUCTURE (Feet)*

MAXIMUM ALLOWABLE CHARGE WEIGHTS (Pounds)*

50

0.5

100

2.0

150

4.5

200

8.0

250

12.0

300

18.0

350

25.0

* Based upon a charge weight of seventy (70) Foot/Pound½

(12-21-11)T

d. The maximum allowable charge weight is twenty-five (25) pounds, unless the permit holder requests and secures the prior written authorization from the Department. (12-21-11)T

e. All seismic sources placed for detonation shall contain additives to accelerate the biodegradation thereof and shall be handled with due care in accordance with industry standards. The cap leads for any seismic sources that fail to detonate shall be buried at least three (3) feet deep. (12-21-11)T

f. All vegetation cleared to the ground shall be cleared in a competent and workmanlike manner in the exercise of due care. (12-21-11)T

g. Unless otherwise consented to by the surface owner in writing, permit holder shall not cut down any tree measuring six (6) inches or more in diameter, as measured at a height of three (3) feet from the ground surface, unless there are no reasonable alternatives to the removal of such tree(s) available to permit holder. Permit holder shall compensate surface owner the value of all such trees. (12-21-11)T

h. All excessive rutting or soil disturbances shall be repaired or restored to the original condition and contour to the extent reasonable, unless otherwise agreed to by the permit holder and the surface owner in writing. (12-21-11)T

i. All fences removed shall be replaced, unless otherwise agreed to by the permit holder and the surface owner in writing. (12-21-11)T

j. All debris associated with the seismic activity shall be removed and properly disposed. (12-21-11)T

03. Bond Required. (12-21-11)T

a. Before beginning geophysical operations, the geophysical contractor must file and have approved by the director Department a bond in the amount of at least ten thousand dollars ($10,000). The Department may increase this bonding requirement for geophysical contractors based on the amount of potential damage from the contemplated operation. The condition of such bond shall comply with the Oil and Gas Conservation Law Act, the rules and orders of the Commission, and orders of the director and/or his duly authorized representatives Department. The obligation of the bond shall not be discharged until one (1) year from completion of the survey or until the geophysical contractor has complied with the Oil and Gas Conservation Law, the Commission's rules, and the orders of the Commission and director and their agents the Department. Provided, upon verified application, the director may waive or modify this bonding requirement for geophysical contractors based on the amount of potential damage from the contemplated operation. (10-21-92)(12-21-11)T

ab. Persons or other entities who engage in the plugging of seismic holes and are not a regular full-time employee of the seismic company, owner, or operator shall have posted with the director a surety bond in favor of the Commission Department. Said bond shall be on a form prescribed by the Commission Department and in the amount of five thousand dollars ($5,000). The condition of the bond shall comply with the Oil and Gas Conservation Law and the regulations and orders of this the Commission and the director and their duly authorized agents and employees Department. (10-21-92)(12-21-11)T

04. Newspaper Notice. Before a geophysical contractor conducts the geophysical operation, the contractor shall publish a legal notice in a newspaper of general circulation in the county where the survey will be conducted. The notice shall state the nature and approximate time period of the seismic operations. These requirements do not apply to operations conducted within a well or conducted by aerial surveys. (12-21-11)T

05. Owner and Occupant Notification. No entry shall be made by any person to conduct seismic operations, upon the lands where such seismic operations are to be conducted, without the permit holder having first given notice at least thirty (30) calendar days prior to commencement of field seismic operations. (12-21-11)T

a. The notice shall be in writing and given either personally or by certified United States mail to the following persons: (12-21-11)T

i. Surface owners reflected in the tax records of the counties where the lands are located, at the mailing addresses identified for such surface owners in such records; (12-21-11)T

ii. Occupants residing on the lands who are not the surface owners, if it can be reasonably ascertained that there are such occupants; and (12-21-11)T

iii. Owners or operators of oil and gas wells within the seismic survey area, as reflected in Department records. (12-21-11)T

b. The notice shall contain the following: (12-21-11)T

i. Name of the person or entity that is conducting the seismic operations; (12-21-11)T

ii. Proposed location of the seismic operations; and (12-21-11)T

iii. Approximate date the person or entity proposes to commence seismic operations. (12-21-11)T

06. Department Notifications. (12-21-11)T

a. The permit holder shall also notify the Department within five (5) business days of the commencement and completion of each seismic operation. (12-21-11)T

b. Before beginning geophysical operations other than seismic operations, the geophysical contractor shall file a notice of intention to do so with the Department. Said notice shall describe the geophysical method to be used and be accompanied by a map of a scale of one (1) inch equals two (2) miles showing the location of the project. (12-21-11)T

047. Reports and Notices Required. (10-21-92)

a. Activity Report. Upon completion of the seismic activity or at thirty (30) day intervals after the work has commenced, whichever occurs first, the seismic contractor shall file with the director Department a report of the completion or progress of the seismic project. The final completion report shall be in affidavit form and shall include a seven and one-half (7.5) - or fifteen (15) minuted United States Geological Survey topographic quadrangle map (at a scale of one (1) inch equals two thousand (2,000) feet or one (1) inch equals four thousand (4,000) feet that shows section, township, and range) and the location of each shothole survey so that the shotholes and other potential impacts can be easily located. The final completion report shall also include a statement that all work has been performed in compliance with the application for a permit to perform seismic activity, Commission Rule 360, and permit provisions. Said maps, applications, and reports shall be kept confidential by the Commission Department for a period of five one (51) years from the date of receipt, subject to the needs of the director Department to use them to enforce these regulations, the Oil and Gas Conservation Law Act, and the orders of the Commission or director the Department. Also, the owner of the surface of the land may be advised of the location of seismic lines or seismic holes on his land and of the exploration method used. (10-21-92)(12-21-11)T

b. Plugging Notice. Seismic contractors shall give the Commission or director Department at least twenty-four (24) hours advance notice of shothole plugging operations, provided that notice of plugging operations planned for Sunday or Monday may be given on the previous Friday. (10-21-92)(12-21-11)T

c. Other Notices. Before beginning geophysical operations other than seismic operations, the geophysical contractor shall file a notice of intention to do so with the Commission. Said notice shall describe the geophysical method to be used and be accompanied by a map of a scale of one inch equals two (2) miles showing the location of the project. (10-21-92)

058. Client-Contractor Responsibility. The client company may be held responsible along with the seismic contractor for conducting the operation in compliance with the Commission's rules and orders, the director's Department's orders, and the Idaho Oil and Gas Conservation Law Act for the seismic contractor's failure to comply with such rules, statutes, and orders. The hats used in the plugging of seismic holes shall be imprinted with the name of the contractor responsible for the plugging of the hole. (10-21-92)(12-21-11)T

069. Plugging. Unless the seismic contractor can prove to the satisfaction of the director Department that another method will provide better protection to ground water and long-term land stability, seismic shothole operations shall be conducted in the following manner: (10-21-92)(12-21-11)T

a. When water is used in conjunction with the drilling of seismic shotholes and artesian flow is not encountered at the surface, seismic holes are to be filled with a high grade bentonite/water slurry mixture. Said slurry shall have a density that is at least four percent (4%) greater than the density of fresh water; said slurry shall also have a Marsh funnel viscosity of at least sixty (60) seconds per quart. Density and viscosity are to be measured prior to adding cuttings to the slurry. Cuttings not added to the slurry are to be disposed of in accordance with Subsections 360.069.f. of this rule. Any other suitable plugging material commonly used in the industry may be substituted for the bentonite/water slurry as long as the physical characteristics of said substitute are at least comparable to those of the bentonite/water slurry. Between November 1 and May 1, coarse ground bentonite approved by the director Department shall be used as a plugging material. (10-21-92)(12-21-11)T

b. The hole will be filled with the slurry from the bottom up to a depth of three (3) feet (three (3) feet below ground level). A nonmetallic plug will be set at this depth of three (3) feet, and the remaining hole will be filled and tamped to the surface with cuttings and native soil. (10-21-92)

c. When drilling with air and nonartesian water is encountered, the hole shall be plugged with the slurry mixture, or coarse ground bentonite, as specified in Subsections 360.069.a., supra. (10-21-92)(12-21-11)T

d. When drilling with air only and in completely dry holes, plugging may be accomplished by returning the cuttings to the hole, tamping the returned cuttings to the above-referenced depth of three (3) feet, and setting the permaplug topped with more cuttings and soil as per Subsection 360.069.b. above. A small mound will be left over the hole for settling allowance. Auger holes twenty (20) feet or less in depth may be plugged in this same manner. (10-21-92)(12-21-11)T

e. The foregoing seismic holes shall be properly plugged and abandoned as soon as practical after the shot has been fired; however, a shot hole shall not be left unplugged for more than thirty (30) days without approval of the director Department. (10-21-92)(12-21-11)T

f. Any slurry, drilling fluid, or cuttings which are deposited on the surface around the seismic hole will be raked or otherwise spread out to at least within one (1) inch of the surface, so that the growth of the natural grasses or foliage will not be impaired. (10-21-92)

g. Seismic shothole operations will not be conducted within one-quarter (1/4) mile of any building or water well, flowing spring, or stockwater pipeline. (10-21-92)

hg. Guidelines. Subsections The requirements of Paragraphs 360.069.a. through 360.069.gf. above of this rule may be modified by any reasonable written agreement between the seismic company and the surface owner. (10-21-92)(12-21-11)T

ih. If artesian flow (water flowing at the surface) is encountered in the drilling of any seismic hole, cement will be used to seal off the water flow thereby preventing cross-flow, erosion, and/or contamination of freshwater supplies. Said holes shall be cemented immediately, unless severe weather conditions prevent access. Landowners may assume liability for seismic holes that are capable of conversion to water wells by sending a letter assuming such liability to the director and filing an application for appropriation of underground water with the Department of Water Resources. (10-21-92)(12-21-11)T

ji. After completing the plugging of seismic shot holes and spreading the cuttings as required by this rule, the seismic contractor shall mark record the exact GPS location of the seismic hole, with a wooden stake that extends approximately two (2) inches above ground. This requirement may be waived by the director if the landowner consents to it and the contractor shall provide the location data to the Department. (10-21-92)(12-21-11)T

10. Forfeiture of Geophysical Exploration Bond. The Department may forfeit the bond submitted under Subsection 360.03 of this rule upon failure of the owner or operator to conduct the seismic survey and complete reclamation in conformance with Section 360 of this rule. The owner or operator will be given an opportunity to address compliance issues prior to the Department taking action against the bond. (12-21-11)T

361. -- 99369. (RESERVED)

370. ENFORCEMENT.

The Department shall enforce these rules pursuant to Section 47-325, Idaho Code. (12-21-11)T

371. -- 999. (RESERVED)