# Title 43 — Industrial Commission

## Article 43-05 — Geologic Storage of Carbon Dioxide

## Chapter 43-05-01 — Geologic Storage of Carbon Dioxide

### § 43-05-01-01. Definitions.

The terms used throughout this chapter have the same meaning as in chapter 43-02-03 and North
Dakota Century Code chapter 38-08 except:

1. "Abandoned well" means a well whose use has been permanently discontinued or which is in
a state of disrepair such that it cannot be used for its intended purpose or for observation
purposes.
2. "Activity" means any activity related to the geological storage of carbon dioxide subject to
regulation under this chapter and North Dakota Century Code chapter 38-22.
3. "Aquifer" means a geologic formation, group of formations, or part of a formation that is
capable of yielding a significant amount of water to a well, spring, or other point of discharge.
4. "Area of review" means the region surrounding the geologic sequestration project where
underground sources of drinking water may be endangered by the injection activity.
5. "Bond rating" means a rating assigned to any long-term senior secured indebtedness issued
by or on behalf of the storage operator, including any indebtedness issued by any
governmental authority with respect to which the storage operator is obligor.
6. "Carbon dioxide plume" means the extent underground, in three dimensions, of an injected
carbon dioxide stream.
7. "Carbon dioxide stream" means carbon dioxide that has been captured from an emission
source (e.g., a coal-burning power plant), plus incidental associated substances derived from
the source materials and the capture process, and any substances added to the stream to
enable or improve the injection process. This does not apply to any carbon dioxide stream that
meets the definition of a hazardous waste.
8. "Casing" means a pipe or tubing of varying diameter and weight, which is installed into a well
to maintain the structural integrity of that well.
9. "Cementing" means the operation whereby a cement slurry is pumped into a drilled hole and
forced behind the casing.
10. "Closure period" means that period from permanent cessation of carbon dioxide injection until
the commission issues a certificate of project completion.
11. "Confining zone" means a geologic formation, group of formations, or part of a formation
stratigraphically overlying the injection zone that acts as a barrier to fluid movement. For
injection wells operating under an injection depth waiver, confining zone means a geologic
formation, group of formations, or part of a formation stratigraphically overlying and underlying
the injection zone.
12. "Contaminant" means any physical, chemical, biological, or radiological substance or matter in
water.
13. "Corrective action" means the use of commission-approved methods to ensure that wells
within the area of review do not serve as conduits for the movement of fluids into underground
sources of drinking water.
14. "Draft permit" means a document prepared under section 43-05-01-07.2 indicating the
commission's tentative decision to issue a storage facility permit or modify, revoke and
reissue, or terminate an existing storage facility permit.
15. "Exempted aquifer" means an "aquifer" or its portion that meets the criteria in the definition of
"underground sources of drinking water" but which has been exempted according to the
procedures in section 43-05-01-02.4.
16. "Facility area" means the areal extent of the storage reservoir.

17. "Fault" means a surface or zone of rock fracture along which there has been displacement.
18. "Flow lines" means pipelines transporting carbon dioxide from the carbon dioxide injection
facilities to the wellhead.
19. "Fluid" means any material or substance which flows or moves, whether in a semisolid, liquid,
sludge, gas, or any other form or state.
20. "Formation" means a body of rock characterized by a degree of lithologic homogeneity which
is prevailingly, but not necessarily, tabular and is mappable on the earth's surface or traceable
in the subsurface.
21. "Formation fluid" means fluid present in a formation under natural conditions as opposed to
introduced fluids.
22. "Formation fracture pressure" means the pressure, measured in pounds per square inch,
which, if applied to a subsurface formation, will cause that formation to fracture.
23. "Geologic sequestration" means the geologic storage of a gaseous, liquid, or supercritical
carbon dioxide stream in a storage reservoir. This term does not apply to carbon dioxide
capture or transport.
24. "Geologic sequestration project" means an injection well or wells used to emplace a carbon
dioxide stream beneath the lowermost formation containing underground sources of drinking
water; or, wells used for geologic sequestration that have been granted a waiver of the
injection depth requirements; or, wells used for geologic sequestration that have received an
expansion to the areal extent of an existing enhanced oil or gas recovery aquifer exemption. It
includes the subsurface three-dimensional extent of the carbon dioxide plume, as well as the
associated pressure front.
25. "Ground water" means water occurring beneath the surface of the ground that fills available
openings in rock or soil materials such that they may be considered saturated.
26. "Injection well" means a nonexperimental well used to inject carbon dioxide into or withdraw
carbon dioxide from a reservoir.
27. "Injection zone" means a geologic formation, group of formations, or part of a formation that is
of sufficient areal extent, thickness, porosity, and permeability to receive carbon dioxide
through a well or wells associated with a geologic sequestration project.
28. "Mechanical integrity" means the absence of significant leakage within an injection well's
tubing, casing, or packer (internal mechanical integrity), or outside of the casing (external
mechanical integrity).
29. "Minerals" means coal, oil, and natural gas.
30. "Model" means a representation or simulation of a phenomenon or process that is difficult to
observe directly or that occurs over long time frames. Models that support geologic
sequestration can predict the flow of carbon dioxide within the subsurface, accounting for the
properties and fluid content of the subsurface formations and the effects of injection
parameters.
31. "Operational period" means the period during which injection occurs.
32. "Packer" means a device lowered into a well, which can be expanded or compressed to
produce a fluid-tight seal.

33. "Person" means an individual, association, partnership, corporation, municipality, state,
federal, or tribal agency, or an agency or employee thereof.
34. "Plug" or "plugging" means the act or process of sealing the flow of fluid into or out of a
formation through a borehole or "well" penetrating that formation.
35. "Postclosure period" means that period after the commission has issued a certificate of project
completion.
36. "Postinjection site care" means appropriate monitoring and other actions, including corrective
action, needed following cessation of injection to ensure that underground sources of drinking
water are not endangered. Postinjection site care may occur in the closure or postclosure
periods.
37. "Pressure" means the total load or force per unit area acting on a surface.
38. "Pressure front" means the zone of elevated pressure and displaced fluids created by the
injection of carbon dioxide into the subsurface. The pressure front of a carbon dioxide plume
refers to a zone where there is a pressure differential sufficient to cause the movement of
injected fluids or formation fluids into underground sources of drinking water.
39. "Project completion" means the point in time, as determined by the commission at which the
certificate of project completion is issued and the storage operator is released from all
regulatory requirements associated with the storage facility.
40. "Stratum" (strata plural) means a single sedimentary bed or layer, regardless of thickness, that
consists of generally the same kind of rock material.
41. "Subsurface observation well" means a well used to observe subsurface phenomena,
including the presence of carbon dioxide, pressure fluctuations, fluid levels and flow,
temperature, and in situ water chemistry.
42. "Surface casing" means the first string of well casing to be installed in the well.
43. "Transmissive fault or fracture" means a fault or fracture that has sufficient permeability and
vertical extent to allow fluids to move between formations.
44. "Trapping" means the physical and geochemical processes by which injected carbon dioxide
is sequestered in the subsurface. Physical trapping occurs when buoyant carbon dioxide rises
in the formation until it reaches impermeable strata that inhibits further upward and lateral
migration or is immoblized in pore spaces due to capillary forces. Geochemical trapping
occurs when chemical reactions between the injected carbon dioxide and natural occurring
minerals in the formation lead to the precipitation of solid carbonate minerals or dissolution in
formation fluids.
45. "Underground source of drinking water" means an aquifer or any portion of an aquifer that
supplies drinking water for human consumption, or in which the ground water contains fewer
than ten thousand milligrams per liter total dissolved solids and is not an exempted aquifer as
determined by the commission under section 43-02-05-03.
46. "Well" means a bored, drilled or driven shaft, or a dug hole, whose depth is greater than the
largest surface dimension; or an improved sinkhole; or a subsurface fluid distribution system.
History: Effective April 1, 2010; amended effective April 1, 2013.
General Authority: NDCC 28-32-02
Law Implemented: NDCC 38-22

### § 43-05-01-02. Scope of chapter.

This chapter governs the geologic storage of carbon dioxide. This chapter does not apply to
applications filed with the commission proposing to use carbon dioxide for an enhanced oil or gas
recovery project, rather such applications will be processed under chapter 43-02-05.
History: Effective April 1, 2010; amended effective April 1, 2013.
General Authority: NDCC 28-32-02
Law Implemented: NDCC 38-22
### § 43-05-01-02.1. Application of rules for geologic storage of carbon dioxide.

In addition to the provisions in this chapter, injection wells utilized for geologic storage are subject
to the provisions of chapters 43-02-03 and 43-02-05 when applicable.
History: Effective April 1, 2013.
General Authority: NDCC 28-32-02
Law Implemented: NDCC 38-22
### § 43-05-01-02.2. Injection into underground source of drinking water prohibited.

Underground injection of carbon dioxide for geologic storage that causes or allows movement of
fluid into an underground source of drinking water is prohibited, unless the underground source of
drinking water is an exempted aquifer under section 43-02-05-03.
No storage operator shall construct, operate, maintain, convert, plug, abandon, or conduct any
injection activity in a manner that allows the movement of fluid containing any contaminant into
underground sources of drinking water, if the presence of that contaminant may endanger underground
sources of drinking water or may adversely affect the health of persons. The applicant must show that
the objectives of this section are fulfilled.
Notwithstanding any other provision of this section, the commission may take emergency action
upon receipt of information that a contaminant which is present in or likely to enter a public water
system or underground source of drinking water may present an imminent and substantial
endangerment to the health of persons.
History: Effective April 1, 2013.
General Authority: NDCC 28-32-02
Law Implemented: NDCC 38-22
### § 43-05-01-02.3. Transitioning from enhanced oil or gas recovery to geologic sequestration.

A storage operator injecting carbon dioxide for the primary purpose of geologic sequestration into
an oil and gas reservoir shall apply for and obtain storage facility and injection well permits when there
is an increased risk to underground sources of drinking water compared to enhanced oil or gas
recovery operations. In determining if there is an increased risk to underground sources of drinking
water, the commission shall consider the following factors:
1. Increase in reservoir pressure within the injection zone;
2. Increase in carbon dioxide injection rates;
3. Decrease in reservoir production rates;
4. Distance between the injection zone and underground sources of drinking water;
5. Suitability of the enhanced oil or gas recovery area of review delineation;

6. Quality of abandoned well plugs within the area of review;
7. The storage operator's plan for recovery of carbon dioxide at the cessation of injection;
8. The source and properties of injected carbon dioxide; and
9. Any additional site-specific factors as determined by the commission.
History: Effective April 1, 2013.
General Authority: NDCC 28-32-02
Law Implemented: NDCC 38-22
### § 43-05-01-02.4. Exempted aquifers and expansions of areal extent of existing aquifer

exemptions.
1. The commission may identify by narrative description, illustrations, maps, or other means and
shall implement these rules to protect as underground sources of drinking water, all aquifers
and parts of aquifers that meet the definition of "underground source of drinking water". Even
if an aquifer has not been specifically identified by the commission, it is an underground
source of drinking water if it meets the definition of "underground source of drinking water".
Other than United States environmental protection agency-approved aquifer exemption
expansions, new aquifer exemptions shall not be issued for injection wells.
2. The commission shall identify, by narrative description, illustrations, maps, or other means,
and describe in geographic and geometric terms, such as vertical and lateral limits and
gradient, which are clear and definite, all aquifers or parts of aquifers that the commission
proposes to designate as exempted aquifers using the criteria in section 43-02-05-03. No
designation of an exempted aquifer submitted as part of the underground injection control
program is final until approved by the United States environmental protection agency
administrator as part of the underground injection control program.
3. A storage operator of enhanced oil or gas recovery wells may apply to the commission for
approval to expand the areal extent of an aquifer exemption already in place for an enhanced
oil or gas recovery well for the exclusive purpose of carbon dioxide injection for geologic
sequestration. Such applications are considered a revision to the applicable federal
underground injection control program or a substantial program revision to an approved state
underground injection control program and are not final until approved by the United States
environmental protection agency.
a. A storage operator's application must define by narrative description, illustrations, maps,
or other means and describe in geographic or geometric terms, such as vertical and
lateral limits and gradient that are clear and definite, all aquifers or parts thereof that are
requested to be designated as exempted under section 43-02-05-03.
b. In evaluating an application, the commission shall determine that it meets the criteria for
exemptions in section 43-02-05-03. In making the determination, the commission shall
consider:
(1) Current and potential future use of the underground sources of drinking water to be
exempted as drinking water resources;
(2) The predicted extent of the injected carbon dioxide plume, and any mobilized fluids
that may result in degradation of water quality, over the lifetime of the geologic
sequestration project, as informed by computational modeling performed pursuant
to subdivision a of subsection 2 of section 43-05-01-05.1, in order to ensure that the
proposed injection operation will not at any time endanger underground sources of
drinking water, including nonexempted portions of the injection formation;

(3) Whether the areal extent of the expanded aquifer exemption is sufficient to account
for any possible revisions to the computational model during reevaluation of the
area of review; and
(4) Information submitted to support a waiver request made by the applicant under
section 43-05-01-11.6, if appropriate.
History: Effective April 1, 2013.
General Authority: NDCC 28-32-02
Law Implemented: NDCC 38-22
### § 43-05-01-02.5. Prohibition of unauthorized injection.

Any underground injection of carbon dioxide for the purpose of geologic storage, except into a well
authorized by permit issued under this chapter, is prohibited. The construction of any well required to
have a permit is prohibited until the permit authorizing construction of the well has been issued.
History: Effective April 1, 2013.
General Authority: NDCC 28-32-02
Law Implemented: NDCC 38-22
### § 43-05-01-02.6. Existing well conversion.

Storage operators seeking to convert an existing well to an injection well for the purpose of
geologic storage of carbon dioxide must demonstrate to the commission that the well is constructed in
a manner that will ensure the protection of underground sources of drinking water.
History: Effective April 1, 2013.
General Authority: NDCC 28-32-02
Law Implemented: NDCC 38-22
### § 43-05-01-03. Books and records to be kept to substantiate reports.

All owners, operators, drilling contractors, drillers, service companies, or other persons engaged in
drilling, completing, operating, or servicing storage facilities shall make and keep appropriate books
and records until project completion, covering their operations in North Dakota from which they may be
able to make and substantiate the reports required by this chapter.
History: Effective April 1, 2010; amended effective April 1, 2013.
General Authority: NDCC 28-32-02
Law Implemented: NDCC 38-22
### § 43-05-01-04. Access to records.

The industrial commission and the commission's authorized agents shall have access to all storage
facility records wherever located. All owners, operators, drilling contractors, drillers, service companies,
or other persons engaged in drilling, completing, operating, or servicing storage facilities shall permit
the industrial commission, or its authorized agents, to come upon any lease, property, well, or drilling rig
operated or controlled by them, complying with state safety rules and to inspect the records and
operation of wells and to conduct sampling and testing. Any information so obtained shall be public
information. If requested, copies of storage facility records must be filed with the commission.
History: Effective April 1, 2010.
General Authority: NDCC 28-32-02
Law Implemented: NDCC 38-22

### § 43-05-01-05. Storage facility permit.

1. An application for a permit must include the following:
a. A site map showing the boundaries of the storage reservoir and the location of all
proposed wells, proposed cathodic protection boreholes, and surface facilities within the
carbon dioxide storage facility area;
b. A technical evaluation of the proposed storage facility, including the following:
(1) The name, description, and average depth of the storage reservoirs;
(2) A geologic and hydrogeologic evaluation of the facility area, including an evaluation
of all existing information on all geologic strata overlying the storage reservoir,
including the immediate caprock containment characteristics and all subsurface
zones to be used for monitoring. The evaluation must include any available
geophysical data and assessments of any regional tectonic activity, local seismicity
and regional or local fault zones, and a comprehensive description of local and
regional structural or stratigraphic features. The evaluation must describe the
storage reservoir's mechanisms of geologic confinement, including rock properties,
regional pressure gradients, structural features, and adsorption characteristics with
regard to the ability of that confinement to prevent migration of carbon dioxide
beyond the proposed storage reservoir. The evaluation must also identify any
productive existing or potential mineral zones occurring within the facility area and
any underground sources of drinking water in the facility area and within one mile
[1.61 kilometers] of its outside boundary. The evaluation must include exhibits and
plan view maps showing the following:
(a) All wells, including water, oil, and natural gas exploration and development
wells, and other manmade subsurface structures and activities, including coal
mines, within the facility area and within one mile [1.61 kilometers] of its
outside boundary;
(b) All manmade surface structures that are intended for temporary or permanent
human occupancy within the facility area and within one mile [1.61 kilometers]
of its outside boundary;
(c) Any regional or local faulting;
(d) An isopach map of the storage reservoirs;
(e) An isopach map of the primary and any secondary containment barrier for the
storage reservoir;
(f) A structure map of the top and base of the storage reservoirs;
(g) Identification of all structural spill points or stratigraphic discontinuities
controlling the isolation of stored carbon dioxide and associated fluids within
the storage reservoir;
(h) Evaluation of the pressure front and the potential impact on underground
sources of drinking water, if any;
(i) Structural and stratigraphic cross sections that describe the geologic
conditions at the storage reservoir;

(j) The location, orientation, and properties of known or suspected faults and
fractures that may transect the confining zone in the area of review, and a
determination that they would not interfere with containment;
(k) Data on the depth, areal extent, thickness, mineralogy, porosity, permeability,
and capillary pressure of the injection and confining zone, including facies
changes based on field data, which may include geologic cores, outcrop data,
seismic surveys, well logs, and names and lithologic descriptions;
(l) Geomechanical information on fractures, stress, ductility, rock strength, and in
situ fluid pressures within the confining zone. The confining zone must be free
of transmissive faults or fractures and of sufficient areal extent and integrity to
contain the injected carbon dioxide stream;
(m) Information on the seismic history, including the presence and depth of seismic
sources and a determination that the seismicity would not interfere with
containment;
(n) Geologic and topographic maps and cross sections illustrating regional
geology, hydrogeology, and the geologic structure of the facility area; and
(o) Identify and characterize additional strata overlying the storage reservoir that
will prevent vertical fluid movement, are free of transmissive faults or fractures,
allow for pressure dissipation, and provide additional opportunities for
monitoring, mitigation, and remediation.
(3) A review of the data of public record, conducted by a geologist or engineer, for all
wells within the facility area, which penetrate the storage reservoir or primary or
secondary seals overlying the reservoir, and all wells within the facility area and
within one mile [1.61 kilometers], or any other distances deemed necessary by the
commission, of the facility area boundary. The review must include the following:
(a) A determination that all abandoned wells have been plugged and all operating
wells have been constructed in a manner that prevents the carbon dioxide or
associated fluids from escaping from the storage reservoir;
(b) A description of each well's type, construction, date drilled, location, depth,
record of plugging, and completion;
(c) Maps and stratigraphic cross sections indicating the general vertical and lateral
limits of all underground sources of drinking water, water wells, and springs
within the area of review; their positions relative to the injection zone; and the
direction of water movement, where known;
(d) Maps and cross sections of the area of review;
(e) A map of the area of review showing the number or name and location of all
injection wells, producing wells, abandoned wells, plugged wells or dry holes,
deep stratigraphic boreholes, state-approved or United States environmental
protection agency-approved subsurface cleanup sites, surface bodies of water,
springs, mines (surface and subsurface), quarries, water wells, other pertinent
surface features, including structures intended for human occupancy, state,
county, or Indian country boundary lines, and roads;
(f) A list of contracts, submitted to the commission, when the area of review
extends across state jurisdiction boundary lines;

(g) Baseline geochemical data on subsurface formations, including all
underground sources of drinking water in the area of review; and
(h) Any additional information the commission may require.
(4) The proposed calculated average and maximum daily injection rates, daily volume,
and the total anticipated volume of the carbon dioxide stream using a method
acceptable to and filed with the commission;
(5) The proposed average and maximum bottom hole injection pressure to be utilized at
the reservoir. The maximum allowed injection pressure, measured in pounds per
square inch gauge, shall be approved by the commission and specified in the
permit. In approving a maximum injection pressure limit, the commission shall
consider the results of well tests and other studies that assess the risks of tensile
failure and shear failure. The commission shall approve limits that, with a
reasonable degree of certainty, will avoid initiating a new fracture or propagating an
existing fracture in the confining zone or cause the movement of injection or
formation fluids into an underground source of drinking water;
(6) The proposed preoperational formation testing program to obtain an analysis of the
chemical and physical characteristics of the injection zone and confining zone
pursuant to section 43-05-01-11.2;
(7) The proposed stimulation program, a description of stimulation fluids to be used,
and a determination that stimulation will not interfere with containment; and
(8) The proposed procedure to outline steps necessary to conduct injection operations.
c. The extent of the pore space that will be occupied by carbon dioxide as determined by
utilizing all appropriate geologic and reservoir engineering information and reservoir
analysis, which must include various computational models for reservoir characterization,
and the projected response of the carbon dioxide plume and storage capacity of the
storage reservoir. The computational model must be based on detailed geologic data
collected to characterize the injection zones, confining zones, and any additional zones;
d. An emergency and remedial response plan pursuant to section 43-05-01-13;
e. A detailed worker safety plan that addresses carbon dioxide safety training and safe
working procedures at the storage facility pursuant to section 43-05-01-13;
f. A corrosion monitoring and prevention plan for all wells and surface facilities pursuant to
section 43-05-01-15;
g. A leak detection and monitoring plan for all wells and surface facilities pursuant to section
### § 43-05-01-14. The plan must:

(1) Identify the potential for release to the atmosphere;
(2) Identify potential degradation of ground water resources with particular emphasis on
underground sources of drinking water; and
(3) Identify potential migration of carbon dioxide into any mineral zone in the facility
area;
h. A leak detection and monitoring plan to monitor any movement of the carbon dioxide
outside of the storage reservoir. This may include the collection of baseline information of
carbon dioxide background concentrations in ground water, surface soils, and chemical

composition of in situ waters within the facility area and the storage reservoir and within
one mile [1.61 kilometers] of the facility area's outside boundary. Provisions in the plan
will be dictated by the site characteristics as documented by materials submitted in
support of the permit application but must:
(1) Identify the potential for release to the atmosphere;
(2) Identify potential degradation of ground water resources with particular emphasis on
underground sources of drinking water; and
(3) Identify potential migration of carbon dioxide into any mineral zone in the facility
area;
i. The proposed well casing and cementing program detailing compliance with section
43-05-01-09;
j. An area of review and corrective action plan that meets the requirements pursuant to
section 43-05-01-05.1;
k. The storage operator shall comply with the financial responsibility requirements pursuant
to section 43-05-01-09.1;
l. A testing and monitoring plan pursuant to section 43-05-01-11.4;
m. A plugging plan that meets requirements pursuant to section 43-05-01-11.5;
n. A postinjection site care and facility closure plan pursuant to section 43-05-01-19; and
o. Any other information that the commission requires.
2. Any person filing a permit application or an application to amend an existing permit shall pay a
processing fee. The fee will be based on actual processing costs, including computer data
processing costs, incurred by the commission.
a. A record of all application processing costs incurred must be maintained by the
commission.
b. Promptly after receiving an application, the commission shall prepare and submit to the
applicant an estimate of the processing fee and a payment billing schedule.
c. After the commission's work on the application has concluded, a final statement will be
sent to the applicant. The full processing fee must be paid before the commission issues
its final decision on an application.
d. The applicant must pay the processing fee regardless of whether a permit is issued or
denied, or the application withdrawn.
3. The commission has one year from the date an application is deemed complete to issue a
final decision regarding the application.
History: Effective April 1, 2010; amended effective April 1, 2013.
General Authority: NDCC 28-32-02
Law Implemented: NDCC 38-22
### § 43-05-01-05.1. Area of review and corrective action.

1. The storage operator shall prepare, maintain, and comply with a plan to delineate the area of
review for a proposed geologic sequestration project, periodically reevaluate the delineation,

and perform corrective action that meets the requirements of this section and is acceptable to
the commission. The requirement to maintain and implement a commission-approved plan is
directly enforceable regardless of whether the requirement is a condition of the permit. As a
part of the storage facility permit application, the storage operator shall submit an area of
review and corrective action plan that includes the following:
a. The method for delineating the area of review, including the model to be used,
assumptions that will be made, and the site characterization data on which the model will
be based;
b. A description of:
(1) The reevaluation date, not to exceed five years, at which time the storage operator
shall reevaluate the area of review;
(2) The monitoring and operational conditions that would warrant a reevaluation of the
area of review prior to the next scheduled reevaluation date;
(3) How monitoring and operational data (e.g., injection rate and pressure) will be used
to inform an area of review reevaluation; and
(4) How corrective action will be conducted to meet the requirements of this section,
including what corrective action will be performed prior to injection and what, if any,
portions of the area of review will have corrective action addressed on a phased
basis and how the phasing will be determined; how corrective action will be adjusted
if there are changes in the area of review; and how site access will be guaranteed
for future corrective action.
2. The storage operator shall perform the following actions to delineate the area of review and
identify all wells that require corrective action:
a. Predict, using existing site characterization, monitoring and operational data, and
computational modeling, the projected lateral and vertical migration of the carbon dioxide
plume and its associated pressure front in the subsurface from the commencement of
injection activities until the plume movement ceases, or until the end of a fixed time
period as determined by the commission. The model must:
(1) Be based on detailed geologic data collected to characterize the injection zone,
confining zone, and any additional zones; and anticipated operating data, including
injection pressures, rates, and total volumes over the proposed life of the geologic
sequestration project;
(2) Take into account any geologic heterogeneities, other discontinuities, data quality,
and their possible impact on model predictions; and
(3) Consider potential migration through faults, fractures, and artificial penetrations.
b. Using methods approved by the commission, identify all penetrations, including active
and abandoned wells and underground mines, in the area of review that may penetrate
the confining zone. Provide a description of each well's type, construction, date drilled,
location, depth, record of plugging and completion, and any additional information the
commission may require; and
c. Determine which abandoned wells have been plugged or operating wells have been
constructed in the area of review in a manner that prevents the movement of the injected
carbon dioxide or other fluids that may endanger underground sources of drinking water,
including use of materials compatible with the carbon dioxide stream.

3. The storage operator shall perform corrective action on all wells in the area of review that are
determined to need corrective action, using methods designed to prevent the movement of
fluid into or between underground sources of drinking water, including use of materials
compatible with the carbon dioxide stream, where appropriate.
4. At the reevaluation date, not to exceed five years, as specified in the area of review and
corrective action plan, or when monitoring and operational conditions warrant, the storage
operator shall:
a. Reevaluate the area of review in the same manner specified in subdivision a of
subsection 2;
b. Identify all wells in the reevaluated area of review that require corrective action in the
same manner specified in subsection 2;
c. Perform corrective action on wells requiring corrective action in the reevaluated area of
review in the same manner specified in subsection 3; and
d. Submit an amended area of review and corrective action plan or demonstrate to the
commission through monitoring data and modeling results that no amendment to the plan
is needed. Any amendments to the plan are subject to the commission's approval, must
be incorporated into the permit, and are subject to the permit modification requirements.
5. The emergency and remedial response plan and the demonstration of financial responsibility
must account for the area of review, regardless of whether or not corrective action in the area
of review is phased.
6. All modeling inputs and data used to support area of review delineations and reevaluations
must be retained until project completion. Upon project completion, the storage operator shall
deliver the records to the commission.
History: Effective April 1, 2013.
General Authority: NDCC 28-32-02
Law Implemented: NDCC 38-22
### § 43-05-01-06. Storage facility permit transfer.

1. Notification. The storage operator and proposed transferee shall notify the commission in
writing of any proposed permit transfer. The notice must contain the following:
a. The name and address of the person to whom the permit is to be transferred.
b. The name of the permit subject to transfer and location of the storage facility and a
description of the land within the facility area.
c. The date that the storage operator desires the proposed transfer to occur.
d. A demonstration of financial assurance as required by section 43-05-01-09.1.
2. Transfers by modification. A storage facility permit may be transferred by the storage
operator to a new storage operator only if the storage facility permit is modified, or revoked
and reissued, or a minor modification made, to identify the new storage operator and
incorporate such other requirements as may be necessary under state and federal laws.
3. Commission review. The commission shall review the proposed transfer to ensure that the
purposes of North Dakota Century Code chapter 38-22 are not compromised but are
promoted. For good cause, the commission may deny a transfer request, delay acting on it,
and place conditions on its approval.

4. Commission approval required. A permit transfer can occur only upon the commission's
written order. The transferor of a permit shall receive notice from the commission that the
approved new storage operator has demonstrated financial responsibility for the storage
facility.
History: Effective April 1, 2010; amended effective April 1, 2013.
General Authority: NDCC 28-32-02
Law Implemented: NDCC 38-22
### § 43-05-01-07. Amending storage facility permit.

Repealed effective April 1, 2013.
### § 43-05-01-07.1. Permitting.

1. Application for a permit under this chapter:
a. Any person who is required to have a permit shall complete, sign, and submit a permit
application to the commission.
b. When the owner and storage operator are different, it is the storage operator's duty to
obtain a permit.
c. The commission shall not begin processing a permit until the applicant has fully complied
with the application requirements for that permit.
d. The application must be complete before the permit is issued. An application for a permit
is complete when the commission receives an application form and any supplemental
information which are completed to the commission's satisfaction.
2. All permit applications, reports, or information submitted to the commission must comply with
the following signature and certification requirements:
a. All permit applications must be signed as follows:
(1) For a corporation by a principal executive officer of at lease the level of vice
president;
(2) For a partnership or sole proprietorship by a general partner or the proprietor,
respectively; or
(3) For a municipality, state, federal, or other public agency by either a principal
executive officer or ranking elected official.
b. All reports required by permits and other information requested by the commission must
be signed by a person described in subdivision a, or by a duly authorized representative
of that person. A person is a duly authorized representative only if:
(1) The authorization is made in writing by a person described in subdivision a;
(2) The authorization specifies either an individual or a position having responsibility for
the overall operation of the regulated facility or activity, such as the position of plant
manager, operator of a well or well field, superintendent, or position of equivalent
responsibility. A duly authorized representative may thus be either a named
individual or any individual occupying a named position; and
(3) The written authorization is submitted to the commission.

c. If an authorization under subdivision b is no longer accurate because a different
individual or position has responsibility for the overall operation of the storage facility, a
new authorization pursuant to subdivision b must be submitted to the commission prior to
or together with any reports, information, or applications to be signed by an authorized
representative.
d. Any person signing a document under subdivision a or b shall make certification under
penalty of law that that person has personally examined and is familiar with the
information submitted in the document and all attachments and that, based on inquiry of
those individuals immediately responsible for obtaining the information, the person
believes that the information is true, accurate, and complete. Further, the person shall
certify awareness that there are significant penalties for submitting false information,
including the possibility of a fine and imprisonment.
3. Applicants shall provide the following information to the commission:
a. The activities conducted by the applicant which require it to obtain a storage facility
permit or other federal, state, or local permits;
b. Name, mailing address, and location of the storage facility for which the application is
submitted;
c. Up to four standard industrial classification codes which best reflect the principal
products or services provided by the facility;
d. The storage operator's name, address, telephone number, ownership status, and status
as federal, state, private, public, or other entity;
e. Whether the storage facility is located on Indian lands, historic or archaeological sites;
and
f. A listing of all environmental permits, construction approvals, or any other relevant permit
received or applied for from the commission or any other federal, state, or local
regulatory agency.
4. Applicants shall retain records of all data used to complete permit applications and
supplemental information until project completion. Upon project completion, the storage
operator shall deliver any records required in this section to the commission.
5. Storage operators applying to drill a new injection well shall submit an application within a
reasonable time before construction is expected to begin.
History: Effective April 1, 2013.
General Authority: NDCC 28-32-02
Law Implemented: NDCC 38-22
### § 43-05-01-07.2. Draft permits and fact sheets.

1. Draft permits.
a. When a storage facility permit application is complete, the commission shall either
prepare a draft permit or deny the application.
b. Before preparing the draft permit, the commission shall consult the department of
environmental quality.
c. The draft permit must contain the permit conditions required under sections

2. Fact sheets.
a. A fact sheet must be prepared for each draft permit.
b. The fact sheet and draft permit must be sent to the applicant and, upon request, to any
other person.
c. The fact sheet must include:
(1) A brief description of the type of facility or activity which is the subject of the draft
permit;
(2) The quantity and quality of the carbon dioxide which is proposed to be injected and
stored;
(3) A brief summary of the basis for the draft permit conditions, including references to
applicable statutory or regulatory provisions;
(4) The reasons why any requested variances or alternatives to required standards do
or do not appear justified;
(5) A description of the procedures for reaching a final decision on the draft permit,
including:
(a) The beginning and ending dates of the comment period;
(b) The address where comments will be received;
(c) The date, time, and location of the storage facility permit hearing; and
(d) Any other procedures by which the public may participate in the final decision.
(6) The name and telephone number of a person to contact for additional information.
History: Effective April 1, 2013.
General Authority: NDCC 28-32-02
Law Implemented: NDCC 38-22
### § 43-05-01-07.3. Permit conditions.

The following conditions apply to all storage facility permits:
1. The storage operator shall comply with all conditions of the permit. Any noncompliance with
the permit constitutes a violation and is grounds for enforcement action, including permit
termination, revocation, or modification pursuant to section 43-05-01-12.
2. In an administrative action, it shall not be a defense that it would have been necessary for the
storage operator to halt or reduce the permitted activity in order to maintain compliance with
the conditions of the permit.
3. The storage operator shall take all reasonable steps to minimize or correct any adverse
impact on the environment resulting from noncompliance with the storage facility permit.
4. The storage operator shall develop and implement an emergency and remedial response plan
pursuant to section 43-05-01-13.
5. The storage operator shall at all times properly operate and maintain all storage facilities
which are installed or used by the storage operator to achieve compliance with the conditions
of the storage facility permit. Proper operation and maintenance includes effective

performance, adequate funding, adequate operator staffing and training, and adequate
laboratory and process controls, including appropriate quality assurance procedures. This
provision requires the operation of backup or auxiliary facilities or similar systems only when
necessary to achieve compliance with the conditions of the storage facility permit.
6. The permit may be modified, revoked and reissued, or terminated pursuant to section
### § 43-05-01-12. The filing of a request by the storage operator for a permit modification,

revocation and reissuance, or termination, or a notification of planned changes or anticipated
noncompliance, does not stay any permit condition.
7. The injection well permit or the permit to operate an injection well does not convey any
property rights of any sort or any exclusive privilege.
8. The storage operator shall furnish to the commission, within a time specified by the
commission, any information which the commission may request to determine whether cause
exists for modifying, revoking and reissuing, or terminating the permit, or to determine
compliance with the permit. The storage operator shall also furnish to the commission, upon
request, copies of records required to be kept by the storage facility permit.
9. The storage operator shall allow the commission, or an authorized representative, upon the
presentation of credentials and other documents as may be required by law, to:
a. Enter upon the storage facility premises where records must be kept under the conditions
of the permit;
b. At reasonable times, have access to and copy any records that must be kept under the
conditions of the permit;
c. At reasonable times, inspect any facilities, equipment, including monitoring and control
equipment, practices, or operations regulated or required under the permit; and
d. At reasonable times, sample or monitor for the purposes of assuring permit compliance,
any substances or parameters at any location.
10. The storage operator shall prepare, maintain, and comply with a testing and monitoring plan
pursuant to section 43-05-01-11.4.
11. The storage operator shall comply with the reporting requirements provided in section
43-05-01-18.
12. The storage operator must obtain an injection well permit under section 43-05-01-10 and
injection wells must meet the construction and completion requirements in section
43-05-01-11.
13. The storage operator shall prepare, maintain, and comply with a plugging plan pursuant to
section 43-05-01-11.5.
14. The storage operator shall establish mechanical integrity prior to commencing injection and
maintain mechanical integrity pursuant to section 43-05-01-11.1.
15. The storage operator shall implement the worker safety plan pursuant to section 43-05-01-13.
16. The storage operator shall comply with leak detection and reporting requirements pursuant to
section 43-05-01-14.
17. The storage operator shall conduct a corrosion monitoring and prevention program pursuant
to section 43-05-01-15.

18. The storage operator shall prepare, maintain, and comply with the area of review and
corrective action plan pursuant to section 43-05-01-05.1.
19. The storage operator shall maintain financial responsibility pursuant to section 43-05-01-09.1.
20. The storage operator shall maintain and comply with the postinjection site care and facility
closure plan pursuant to section 43-05-01-19.
History: Effective April 1, 2013.
General Authority: NDCC 28-32-02
Law Implemented: NDCC 38-22
### § 43-05-01-07.4. Establishing permit conditions.

1. In addition to conditions required in section 43-05-01-07.3, the commission shall establish
conditions, as required on a case-by-case basis. Storage facility permits shall include
conditions meeting the requirements of this chapter and such additional conditions as are
necessary to prevent the endangerment of underground sources of drinking water.
2. The commission shall establish conditions in any permit as required on a case-by-case basis,
to provide for and assure compliance with all statutory or regulatory requirements which take
effect prior to final administrative disposition of the permit.
3. New or reissued permits, and to the extent allowed under section 43-05-01-12 modified or
revoked and reissued permits, shall incorporate each of the applicable requirements
referenced in this section.
4. All permit conditions shall be incorporated either expressly or by reference. If incorporated by
reference, a specific citation to the applicable regulations or requirements must be given in the
permit.
History: Effective April 1, 2013.
General Authority: NDCC 28-32-02
Law Implemented: NDCC 38-22
### § 43-05-01-08. Storage facility permit hearing.

1. The commission shall hold a public hearing before issuing a storage facility permit. At least
forty-five days prior to the hearing, the applicant shall give notice of the hearing to the
following:
a. Each operator of mineral extraction activities within the facility area and within one-half
mile [.80 kilometer] of its outside boundary;
b. Each mineral lessee of record within the facility area and within one-half mile [.80
kilometer] of its outside boundary;
c. Each owner of record of the surface within the facility area and one-half mile [.80
kilometer] of its outside boundary;
d. Each owner of record of minerals within the facility area and within one-half mile [.80
kilometer] of its outside boundary;
e. Each owner and each lessee of record of the pore space within the storage reservoir and
within one-half mile [.80 kilometer] of the reservoir's boundary; and
f. Any other persons as required by the commission.

2. The notice given by the applicant must contain:
a. A legal description of the land within the facility area.
b. The date, time, and place that the commission will hold a hearing on the permit
application.
c. A statement that a copy of the permit application and draft permit may be obtained from
the commission.
d. A statement that all comments regarding the storage facility permit application must be in
writing and submitted to the commission prior to the hearing or presented at the hearing.
e. A statement that amalgamation of the storage reservoirs pore space is required to
operate the storage facility, that the commission may require that the pore space owned
by nonconsenting owners be included in the storage facility and subject to geologic
storage, and the amalgamation of pore space will be considered at the hearing.
3. The commission shall give at least a thirty-day public notice and comment period for a draft
storage facility permit, except in an emergency, including notice of the time and place of
hearing thereon by one publication of such notice in a newspaper of general circulation in
Bismarck, North Dakota, and in a newspaper of general circulation in the county where the
land affected or some part thereof is situated, unless in some particular proceeding a longer
period of time or a different method of publication is required by law, in which event such
period of time and method of publication shall prevail. The notice shall issue in the name of
the commission and shall conform to the other requirements provided by law. The public
notice must state that an application has been filed with the commission for permission to
store carbon dioxide and describe the location of the proposed facility area and the date, time,
and place of the hearing before the commission at which time the merits of the application and
draft permit will be considered.
4. The public notice given by the commission must contain the following:
a. Name and address of the commission;
b. Name and address of the applicant;
c. A brief description of the nature and purpose of the hearing, including the applicable rules
and procedures;
d. A brief description of the activity described in the storage facility permit application or the
draft storage facility permit;
e. Name, address, and telephone number of a person from whom interested persons may
obtain further information, including copies of the draft storage facility permit, fact sheet,
and the storage facility permit application;
f. A brief description of the comment procedures and other procedures by which the public
may participate in the final permit decision;
g. The date of any previous public notices relating to the storage facility; and
h. Any additional information that the commission requires.
5. Public notice shall be given by the following methods:
a. By mailing or e-mailing a copy of the notice, the fact sheet, the storage facility permit
application, and draft permit to the following:

(1) The applicant;
(2) The department of environmental quality;
(3) The state geological survey;
(4) The state water commission;
(5) The United States environmental protection agency; and
(6) Federal and state agencies with jurisdiction over fish and wildlife resources, the
advisory council on historic preservation, and state historical preservation officers,
including any affected Indian tribes and the bureau of Indian affairs.
b. By mailing or e-mailing of copy of the public notice to the following:
(1) To any unit of local government having jurisdiction over the area where the storage
facility is proposed to be located and to each state agency having any authority
under state law with respect to the construction or operation of such facility.
(2) Any other person or group either upon request or on a departmental mailing list to
receive geologic storage of carbon dioxide public notices:
(a) Including those who request in writing to be on the list;
(b) Persons on "area lists" from past permit proceedings in that area; and
(c) Notifying the public of the opportunity to be put on the mailing list through
periodic publication in the public press and in such publications as state-funded
newsletters, environmental bulletins, or state law journals. The commission
may update the mailing list from time to time by requesting written indication of
continued interest from those listed. The commission may delete from the list
the name of any person who fails to respond to such a request.
6. During the public comment period any interested person may submit written comments on the
draft storage facility permit or the storage facility permit application. All comments shall be
considered in making the final decision and shall be answered when a final storage facility
permit is issued. The response to comments must include:
a. Provisions, if any, of the draft permit that have been changed in the final permit decision,
and the reasons for the change; and
b. A brief description and response to all significant comments on the draft permit or the
permit application.
7. The response to all applicable comments shall be available to the public.
History: Effective April 1, 2010; amended effective April 1, 2013.
General Authority: NDCC 28-32-02
Law Implemented: NDCC 38-22
### § 43-05-01-09. Well permit application requirements.

1. Following receipt of a storage facility permit, the storage operator shall obtain a permit to drill,
deepen, convert, operate, or, upon demonstration of mechanical integrity, reenter a previously
plugged and abandoned well for storage purposes.

2. Application for permits to drill, deepen, convert, operate, or reenter a well must be submitted
on form 25 provided by the commission and must include at a minimum:
a. An accurate plat certified by a registered surveyor showing the location of the proposed
injection or subsurface observation well. The plat must be drawn to the scale of one inch
[25.4 millimeters] equals one thousand feet [304.8 meters], unless otherwise directed by
the commission, and must show distances from the proposed well to the nearest facility
area boundary. The plat must show the latitude and longitude of the proposed well
location to the nearest tenth of a second. The plat must also show the location and status
of all other wells that have been drilled within one-fourth mile [402.34 meters], or any
other distance deemed necessary by the commission, of the proposed injection or
subsurface observation well;
b. The drilling, completion, or conversion procedures for the proposed injection or
subsurface observation well;
c. A well bore schematic showing the name, description, and depth of the storage
reservoirs and the depth of the deepest underground source of drinking water; a
description of the casing in the injection or subsurface observation well, or the proposed
casing program, including a full description of cement already in place or as proposed;
and the proposed method of testing casing before use of the injection well;
d. A geophysical log, if available, through the storage reservoir to be penetrated by the
proposed injection well or if an injection or subsurface observation well is to be drilled, a
complete log through the reservoir from a nearby well is permissible. Such log must be
annotated to identify the estimated location of the base of the deepest underground
source of drinking water, showing the stratigraphic position and thickness of all confining
strata above the reservoirs and the stratigraphic position and thickness of the reservoir;
and
e. The proposed pad layout, including cut and fill diagrams.
3. Within thirty days after the conclusion of well drilling and completion activities, a permit
application shall be submitted to operate an injection well and must include at a minimum:
a. A schematic diagram of the surface injection system and its appurtenances;
b. A final well bore diagram showing the name, description, and depths of the storage
reservoir and the base of the deepest underground source of drinking water and a
diagram of the well depicting the casing, cementing, perforation, tubing, and plug and
packer records associated with the construction of the well;
c. The well's complete dual induction or equivalent log through the storage reservoir. Such
a log shall be run prior to setting casing through the storage reservoir. Logs must be
annotated to identify the estimated location of the base of the deepest underground
source of drinking water, showing the stratigraphic position and thickness of all confining
strata above the storage reservoir and the reservoir's stratigraphic position and thickness
unless that information has been previously submitted. When approved in advance by
the commission, this information can be demonstrated with a dual induction or equivalent
log run in a nearby well or by such other method acceptable to the commission;
d. An affidavit specifying the chemical constituents, their relative proportions and the
physical properties of the carbon dioxide stream, and the source of the carbon dioxide
stream;
e. Proof that the long string of casing of the well is cemented adequately so that the carbon
dioxide is confined to the storage reservoirs. Such proof must be provided in the form of

a cement bond log or the results of a fluid movement study or such other method
specified by the commission;
f. The results of a mechanical-integrity test, if applicable to well type, of the casing in
accordance with the pressure test requirements of this section if a test was run within
one calendar year preceding the request for a conversion permit for a previously drilled
well;
g. The final area of review based on modeling, using data obtained during logging and
testing of the well and the formation, including any relevant updates on the geologic
structure and hydrogeologic properties of the proposed storage reservoir and overlying
formations;
h. Information on the compatibility of the carbon dioxide stream with fluids in the injection
zone and minerals in both the injection and the confining zone, based on the results of
the formation testing program, and with the materials used to construct the well;
i. The results of the formation testing program;
j. The status of corrective action on wells in the area of review;
k. All available logging and testing program data on the well;
l. Any updates to the proposed area of review and corrective action plan, testing and
monitoring plan, injection well plugging plan, postinjection site care and facility closure
plan, and the emergency and remedial response plan, which are necessary to address
new information collected during logging and testing of the well; and
m. Any other information that the commission requires.
History: Effective April 1, 2010; amended effective April 1, 2013.
General Authority: NDCC 28-32-02
Law Implemented: NDCC 38-22
### § 43-05-01-09.1. Financial responsibility.

1. The storage operator shall demonstrate and maintain financial responsibility as determined by
the commission that meets the following conditions:
a. The qualifying financial responsibility instrument used must be from the following list of
qualifying instruments:
(1) Trust funds;
(2) Surety or cash bonds;
(3) Letter of credit;
(4) Insurance;
(5) Self-insurance (i.e., financial test and corporate guarantee);
(6) Escrow account; or
(7) Any other instrument the commission finds satisfactory.
b. The qualifying financial responsibility instrument must be sufficient to cover the cost of:
(1) Corrective action that meets the requirements of section 43-05-01-05.1;

(2) Injection well plugging that meets the requirements of section 43-05-01-11.5;
(3) Postinjection site care and facility closure that meets the requirements of section
43-05-01-19; and
(4) Emergency and remedial response that meets the requirements of section
43-05-01-13.
c. The qualifying financial responsibility instrument must be sufficient to address
endangerment of underground sources of drinking water.
d. The qualifying financial responsibility instrument must comprise protective conditions of
coverage.
(1) Protective conditions of coverage must include at a minimum cancellation, renewal,
and continuation provisions; specifications on when the provider becomes liable
following a notice of cancellation if there is a failure to renew with a new qualifying
financial responsibility instrument; and requirements for the provider to meet a
minimum rating, minimum capitalization, and ability to pass the bond rating when
applicable.
(2) Cancellation. The storage operator shall provide that its financial mechanism may
not cancel, terminate, or fail to renew except for failure to pay such financial
instrument. If there is a failure to pay the financial instrument, the financial institution
may elect to cancel, terminate, or fail to renew the instrument by sending notice by
certified mail to the storage operator and the commission. The cancellation must not
be final for one hundred twenty days after receipt of cancellation notice. The storage
operator shall provide an alternate qualifying financial responsibility demonstration
within sixty days of notice of cancellation, and if it is not acceptable or possible, any
funds from the instrument being canceled must be released to the commission
within sixty days of notification by the commission.
(3) Renewal. The storage operator shall renew all qualifying financial responsibility
instruments, if an instrument expires, for the entire term of the geologic
sequestration project. The instrument must be automatically renewed as long as the
storage operator has the option of renewal at the face amount of the expiring
instrument. The automatic renewal must, at a minimum, provide the storage
operator with the option of renewal at the face amount of the expiring financial
instrument.
(4) Cancellation, termination, or failure to renew may not occur and the financial
instrument will remain in full force and effect in the event that on or before the date
of expiration:
(a) The commission deems the facility abandoned;
(b) The permit is terminated or revoked or a new permit is denied;
(c) Closure is ordered by the commission or a United States district court or other
court of competent jurisdiction;
(d) The storage operator is named as debtor in a voluntary or involuntary
proceeding under title 11 (bankruptcy), United States Code; or
(e) The amount due is paid.
e. The qualifying financial responsibility instrument is subject to the commission's approval.

(1) The commission shall consider and approve the qualifying financial responsibility
demonstration for all the phases of the geologic sequestration project prior to
issuing a storage facility permit.
(2) The storage operator shall provide any updated information related to its qualifying
financial responsibility instrument on an annual basis and, if there are any changes,
the commission must evaluate, within a reasonable time, the qualifying financial
responsibility demonstration to confirm that the instrument used remains adequate.
The storage operator shall maintain financial responsibility requirements regardless
of the status of the commission's review of the financial responsibility
demonstration.
(3) The commission may disapprove the use of a financial instrument if it determines
that it is not sufficient to meet the requirements of this section.
f. Upon the commission's approval, the storage operator may demonstrate financial
responsibility by using one or multiple qualifying financial responsibility instruments for
specific phases of the geologic sequestration project.
If the storage operator combines more than one instrument for a specific geologic
sequestration phase (e.g., well plugging), such combination must be limited to
instruments that are not based on financial strength or performance (i.e., self-insurance
or performance bond), for example trust funds, surety bonds guaranteeing payment into
a trust fund, letters of credit, escrow account, and insurance. In this case, it is the
combination of mechanisms, rather than the single mechanism, which must provide
financial responsibility for an amount at least equal to the current cost estimate.
g. When using a third-party instrument to demonstrate financial responsibility, the storage
operator shall provide proof that the third-party providers either have passed financial
strength requirements based on credit ratings; or have met a minimum rating, minimum
capitalization, and ability to pass the bond rating when applicable.
h. The storage operator using certain types of third-party instruments shall establish a
standby trust to enable the commission to be party to the financial responsibility
agreement without the commission being the beneficiary of any funds. The standby trust
fund must be used along with other qualifying financial responsibility instruments (e.g.,
surety bonds, letters of credit, or escrow accounts) to provide a location to place funds if
needed.
i. If the storage operator uses a surety bond or cash bond to satisfy its financial
responsibility requirements, the storage operator shall be the principal on the bond and
each surety bond must be executed by a responsible surety company authorized to
transact business in North Dakota.
j. If the storage operator uses an escrow account to satisfy its financial responsibility
requirements, the account must segregate funds sufficient to cover estimated costs for
geologic sequestration financial responsibility from other accounts and uses.
k. If the storage operator or its guarantor uses self-insurance to satisfy its financial
responsibility requirements, the storage operator shall:
(1) Meet a tangible net worth of an amount approved by the commission;
(2) Have a net working capital and tangible net worth each at least six times the sum of
the current well plugging, postinjection site care, and facility closure cost;

(3) Have assets located in the United States amounting to at least ninety percent of
total assets or at least six times the sum of the current well plugging, postinjection
site care, and facility closure cost; and
(4) Must submit a report of its bond rating and financial information annually.
l. In addition to the requirements in subdivision k, the storage operator shall either:
(1) Have a bond rating test of AAA, AA, A, or BBB as issued by Standard & Poor's, or
Aaa, Aa, A, or Baa as issued by Moody's; or
(2) Meet all of the following five financial ratio thresholds:
(a) A ratio of total liabilities to net worth less than 2.0;
(b) A ratio of current assets to current liabilities greater than 1.5;
(c) A ratio of the sum of net income plus depreciation, depletion, and amortization
to total liabilities greater than 0.1;
(d) A ratio of current assets minus current liabilities to total assets greater than
-0.1; and
(e) A net profit (revenues minus expenses) greater than zero.
m. The storage operator who is not able to meet corporate financial test criteria in the
preceding provision, may arrange a corporate guarantee by demonstrating that its
corporate parent meets the financial test requirements on its behalf. The parent's
demonstration that it meets the financial test requirement is insufficient if it has not also
guaranteed to fulfill the obligations for the storage operator.
n. If the storage operator uses an insurance policy to satisfy its financial responsibility
requirements, the insurance policy must be obtained from a third-party provider.
2. The requirement to maintain commission-approved qualifying financial responsibility and
resources is directly enforceable regardless of whether the requirement is a condition of the
permit.
a. The storage operator shall maintain qualifying financial responsibility and resources until
the commission approves project completion.
b. The storage operator may be released from a financial instrument in the following
circumstances:
(1) The storage operator has completed the phase of the geologic sequestration project
for which the financial instrument was required and has fulfilled all its financial
obligations as determined by the commission, including obtaining financial
responsibility for the next phase of the geologic sequestration project, if required;
(2) The storage operator has submitted a replacement financial instrument and
received written approval from the commission accepting the new financial
instrument and releasing the storage operator from the previous financial
instrument; or
(3) The commission approves project completion.

3. The storage operator shall have a detailed written estimate, in current dollars, of the cost of
performing corrective action on wells in the area of review, plugging the injection well,
postinjection site care and facility closure, and emergency and remedial response.
a. The cost estimate must be performed for each phase separately and must be based on
the costs to the commission of hiring a third party to perform the required activities. A
third party is a party who is not within the corporate structure of the storage operator;
b. During the active life of the geologic sequestration project, the storage operator shall
adjust the cost estimate for inflation within sixty days prior to the anniversary date of the
establishment of the financial instrument used to comply with this section and provide
this adjustment to the commission. The storage operator shall also provide to the
commission written updates of adjustments to the cost estimate within sixty days of any
amendments to the area of review and corrective action plan, the injection well plugging
plan, the postinjection site care and facility closure plan, and the emergency and
remedial response plan;
c. Any decrease or increase to the initial cost estimate is subject to the commission's
approval. During the active life of the geologic sequestration project, the storage operator
shall revise the cost estimate no later than sixty days after the commission has approved
the request to modify the area of review and corrective action plan, the injection well
plugging plan, the postinjection site care and facility closure plan, and the emergency
and remedial response plan, if the change in the plan increases the cost. If the change to
the plans decreases the cost, any withdrawal of funds is subject to the commission's
approval. Any decrease to the value of the financial responsibility instrument must first be
approved by the commission. The revised cost estimate must be adjusted for inflation;
and
d. Whenever the current cost estimate increases to an amount greater than the face
amount of a financial instrument currently in use, the storage operator, within sixty days
after the increase, shall either cause the face amount to be increased to an amount at
least equal to the current cost estimate and submit evidence of such increase to the
commission, or obtain other qualifying financial responsibility instruments to cover the
increase. Whenever the current cost estimate decreases, the face amount of the financial
assurance instrument may be reduced to the amount of the current cost estimate only
after the storage operator has received written approval from the commission.
4. The storage operator shall notify the commission by certified mail of adverse financial
conditions that may affect the operator's ability to carry out its obligations under state and
federal laws.
a. If the storage operator or the third-party provider of a qualifying financial responsibility
instrument is named as the debtor in a bankruptcy proceeding, the notice to the
commission must be made within ten days after commencement of the proceeding;
b. A guarantor of a corporate guarantee shall make the notification required in subdivision a
if the guarantor is named as debtor, as required under the terms of the corporate
guarantee; and
c. The storage operator who fulfills its financial responsibility requirements by obtaining a
trust fund, surety bond, letter of credit, escrow account, or insurance policy will be
deemed to be without the required financial assurance in the event of bankruptcy of the
trustee or issuing institution, or a suspension or revocation of the authority of the trustee
institution to act as trustee of the institution issuing the trust fund, surety bond, letter of
credit, escrow account, or insurance policy. The storage operator shall establish other
financial assurance within sixty days after such an event.

5. The storage operator shall provide an adjustment of the cost estimate to the commission
within sixty days of notification by the commission, if the commission determines during the
annual evaluation of the qualifying financial responsibility instrument that the most recent
demonstration is no longer adequate to cover the operator's obligations under state and
federal laws.
6. The use and length of pay-in periods for trust funds or escrow accounts are subject to the
commission's approval. The storage operator may make periodic deposits into a trust fund or
escrow account throughout the operational period in order to ensure sufficient funds are
available to carry out the required activities on the date on which they may occur. The
commission shall take into account project-specific risk assessments, projected timing of
activities (e.g., postinjection site care), and interest accumulation in determining whether
sufficient funds are available to carry out the required activities.
History: Effective April 1, 2013.
General Authority: NDCC 28-32-02
Law Implemented: NDCC 38-22
### § 43-05-01-10. Injection well permit.

1. Upon review and approval of the application to drill, deepen, convert, reenter, or operate an
injection well, submitted in accordance with section 43-05-01-09, the commission shall issue
permits to drill and operate.
2. A permit shall expire twelve months from the date of issue if the permitted well has not been
drilled, deepened, reentered, operated, or converted.
3. Injection well permits must be issued for the operating life of the storage facility and the
closure period.
4. The commission shall review each issued injection well permit at least once every five years to
determine whether it should be modified, revoked, or a minor modification made.
5. On a case-by-case basis when required by the commission, the storage operator shall submit
a schedule of compliance leading to full compliance with all provisions of this chapter and
North Dakota Century Code chapter 38-22.
a. Any schedules of compliance shall require compliance as soon as possible, and in no
case later than three years after the effective date of the permit.
b. If the schedule of compliance is for a duration of more than one year from the date of
permit issuance, then interim requirements and completion dates (not to exceed one
year) must be incorporated into the compliance schedule and permit.
c. No later than thirty days following each interim and final date, the storage operator shall
submit progress reports to the commission.
6. For the purposes of enforcement, compliance with an injection well permit during its term
means compliance with this chapter and North Dakota Century Code chapter 38-22. However,
a permit may be modified, revoked, or terminated during its term pursuant to section
43-05-01-12.
7. The issuance of an injection well permit does not convey any property rights of any sort or any
exclusive privilege.
8. The issuance of an injection well permit does not authorize any injury to persons or property
or invasion of other private rights or any infringement of state or local law or regulations.

9. Injection is prohibited until construction is complete, and
a. The storage operator has submitted notice of completion of construction to the
commission;
b. The commission has issued an approved permit to operate an injection well; and
c. The commission has inspected or otherwise reviewed the injection well and finds it is in
compliance with the conditions of the permit; or
d. The storage operator has not received notice from the commission of its intent to inspect
the injection well within fourteen days of the date of the notice in subdivision a, in which
case prior inspection or review is waived and the storage operator may commence
permitted injection. The commission shall include in the notice a reasonable time period
in which it shall inspect the well.
10. The permit shall establish any maximum injection volumes and pressures necessary to assure
that fractures are not initiated in the confining zone, that injected fluids do not migrate into any
underground source of drinking water, that formation fluids are not displaced into any
underground source of drinking water, and to assure compliance with section 43-05-01-11.3.
History: Effective April 1, 2010; amended effective April 1, 2013.
General Authority: NDCC 28-32-02
Law Implemented: NDCC 38-22
### § 43-05-01-11. Injection well construction and completion standards.

1. The storage operator shall ensure that all injection wells are constructed and completed to
prevent movement of the carbon dioxide stream or fluids into underground sources of drinking
water or outside the authorized storage reservoir. The injection wells must be constructed and
completed in a way that allows the use of appropriate testing devices and workover tools. The
casing and cement or other materials used in the construction of each new injection well must
be designed for the well's life expectancy. In determining and specifying casing and cementing
requirements, all of the following factors must be considered:
a. Depth to the injection zone;
b. Injection pressure, external pressure, internal pressure, and axial loading;
c. Hole size;
d. Size and grade of all casing strings (wall thickness, external diameter, nominal weight,
length, joint specification, and construction material);
e. Corrosiveness of the carbon dioxide stream and formation fluids;
f. Down-hole temperatures;
g. Lithology of injection and confining zone;
h. Type or grade of cement and cement additives; and
i. Quantity, chemical composition, and temperature of the carbon dioxide stream.
2. Surface casing in all newly drilled carbon dioxide injection and subsurface observation wells
drilled below the underground source of drinking water must be set fifty feet [15.24 meters]
below the base of the lowermost underground source of drinking water and cemented
pursuant to section 43-02-03-21.

3. The long string casing in all injection and subsurface observation wells must be cemented
pursuant to section 43-02-03-21. Sufficient cement must be used on the long string casing to
fill the annular space behind the casing to the surface of the ground and a sufficient number of
centralizers shall be used to assure a good cement job. The long string casing must extend to
the injection zone.
4. Any liner set in the well bore must be cemented with a sufficient volume of cement to fill the
annular space.
5. All cements used in the cementing of casings in injection and subsurface observation wells
must be of sufficient quality to maintain well integrity in the carbon dioxide injection
environment. Circulation of cement may be accomplished by staging. The commission may
approve an alternative method of cementing in cases where the cement cannot be
recirculated to the surface, provided the storage operator can demonstrate by using logs that
the cement does not allow fluid movement behind the well bore.
6. All casings must meet the standards specified in any of the following documents, which are
hereby adopted by reference:
a. The most recent American petroleum institute bulletin on performance properties of
casing, tubing, and drill pipe;
b. Specification for casing and tubing (United States customary units), American petroleum
institute specification 5CT, as published by the American petroleum institute;
c. North Dakota Administrative Code section 43-02-03-21; or
d. Other equivalent casing as approved by the commission.
7. All casings used in new wells must be new casing or reconditioned casing of a quality
equivalent to new casing and that has been pressure-tested in accordance with the
requirements of subsection 6. For new casings, the pressure test conducted at the
manufacturing mill or fabrication plant may be used to fulfill the requirements of subsection 6.
8. The location and amount of cement behind casings must be verified by an evaluation method
approved by the commission. The evaluation method must be capable of evaluating cement
quality radially and identifying the location of channels to ensure that underground sources of
drinking water are not endangered.
9. All injection wells must be completed with and injection must be through tubing and packer. In
order for the commission to determine and specify requirements for tubing and packer, the
storage operator shall submit the following information:
a. Depth of setting;
b. Characteristics of the carbon dioxide stream (chemical content, corrosiveness,
temperature, and density) and formation fluids;
c. Maximum proposed injection pressure;
d. Maximum proposed annular pressure;
e. Proposed injection rate (intermittent or continuous) and volume and mass of the carbon
dioxide stream;
f. Size of tubing and casing; and
g. Tubing tensile, burst, and collapse strengths.

10. All tubing strings must meet the standards contained in subsection 6. All tubing must be new
tubing or reconditioned tubing of a quality equivalent to new tubing and that has been
pressure-tested. For new tubing, the pressure test conducted at the manufacturing mill or
fabrication plant may be used to fulfill this requirement.
11. All wellhead components, including the casinghead and tubing head, valves, and fittings, must
be made of steel having operating pressure ratings sufficient to exceed the maximum injection
pressures computed at the wellhead and to withstand the corrosive nature of carbon dioxide.
Each flow line connected to the wellhead must be equipped with a manually operated positive
shutoff valve located on or near the wellhead.
12. All packers, packer elements, or similar equipment critical to the containment of carbon
dioxide must be of a quality to withstand exposure to carbon dioxide.
13. All injection wells must have at all times an accurate, operating pressure gauge or pressure
recording device. Gauges must be calibrated as required by the commission and evidence of
such calibration must be available to the commission upon request.
14. All newly drilled wells must establish internal and external mechanical integrity as specified by
the commission and demonstrate continued mechanical integrity through periodic testing as
determined by the commission. All other wells to be used as injection wells must demonstrate
mechanical integrity as specified by the commission prior to use for injection and be tested on
an ongoing basis as determined by the commission using these methods:
a. Pressure tests. Injection wells, equipped with tubing and packer as required, must be
pressure-tested as required by the commission. A testing plan must be submitted to the
commission for prior approval. At a minimum, the pressure must be applied to the tubing
casing annulus at the surface for a period of thirty minutes and must have no decrease in
pressure greater than ten percent of the required minimum test pressure. The packer
must be set at a depth at which the packer will be opposite a cemented interval of the
long string casing and must be set no more than fifty feet [15.24 meters] above the
uppermost perforation or open hole for the storage reservoirs, or at the location approved
by the director; and
b. The commission may require additional testing, such as a bottom hole temperature and
pressure measurements, tracer survey, temperature survey, gamma ray log, neutron log,
noise log, casing inspection log, or a combination of two or more of these surveys and
logs, to demonstrate mechanical integrity.
15. The commission has the authority to witness all mechanical integrity tests conducted by the
storage operator.
16. If an injection well fails to demonstrate mechanical integrity by an approved method, the
storage operator shall immediately shut in the well, report the failure to the commission, and
commence isolation and repair of the leak. The operator shall, within ninety days or as
otherwise directed by the commission, perform one of the following:
a. Repair and retest the well to demonstrate mechanical integrity; or
b. Properly plug the well.
17. All injection wells must be equipped with shutoff systems designed to alert the operator and
shut in wells when necessary.
18. Additional requirements may be required by the commission to address specific
circumstances and types of projects.

History: Effective April 1, 2010; amended effective April 1, 2013; April 1, 2022.
General Authority: NDCC 28-32-02
Law Implemented: NDCC 38-22
### § 43-05-01-11.1. Mechanical integrity - Injection wells.

1. An injection well has mechanical integrity if:
a. There is no significant leak in the casing, tubing, or packer; and
b. There is no significant fluid movement into an underground source of drinking water
through channels adjacent to the well bore.
2. To evaluate the absence of significant leaks, the storage operator shall, following initial
annulus pressure test, continuously monitor injection pressure, rate, injected volumes,
pressure on the annulus between tubing and long string casing, and annulus fluid volume.
3. On a schedule determined by the commission, but at least annually, the storage operator shall
use one of the following methods to determine the absence of significant fluid movement:
a. An approved tracer survey; or
b. A temperature or noise log.
4. If required by the commission, at a frequency specified in the testing and monitoring plan, the
storage operator shall run a casing inspection log to determine the presence or absence of
corrosion in the long string casing.
5. The commission may require alternative and additional methods to evaluate mechanical
integrity. Also, the commission may allow the use of an alternative method to demonstrate
mechanical integrity other than those listed above with the written approval of the United
States environmental protection agency administrator. To obtain approval for a new
mechanical integrity test, the commission shall submit a written request to the United States
environmental protection agency administrator.
6. To conduct and evaluate mechanical integrity, the storage operator shall apply methods and
standards generally accepted in the industry. When the storage operator reports the results of
mechanical integrity tests to the commission, the storage operator shall include a description
of the test and the method used.
7. The commission may require additional or alternative tests if the results presented by the
storage operator are not satisfactory to the commission to demonstrate mechanical integrity.
8. If the commission determines that an injection well lacks mechanical integrity pursuant to this
section, the commission shall give written notice of its determination to the storage operator.
Unless the commission requires immediate cessation of injection, the storage operator shall
cease injection into the well within forty-eight hours of receipt of the commission's
determination. The commission may allow plugging of the well pursuant to the requirements of
section 43-05-01-11.5 or require the storage operator to perform such additional construction,
operation, monitoring, reporting, and corrective action as is necessary to prevent the
movement of fluid into or between underground sources of drinking water caused by the lack
of mechanical integrity. The storage operator may resume injection upon written notification
from the commission that the storage operator has demonstrated mechanical integrity
pursuant to this section.
9. The commission may allow the storage operator of an injection well that lacks mechanical
integrity pursuant to this section to continue or resume injection, if the storage operator has

made a satisfactory demonstration that there is no movement of fluid into or between
underground sources of drinking water.
History: Effective April 1, 2013.
General Authority: NDCC 28-32-02
Law Implemented: NDCC 38-22
### § 43-05-01-11.2. Logging, sampling, and testing prior to injection well operation.

1. During the drilling and construction of an injection well, the storage operator shall run
appropriate logs, surveys, and tests to determine or verify the depth, thickness, porosity,
permeability, lithology, and salinity of any formation fluids in all relevant geologic formations to
ensure conformance with the injection well construction requirements under section
43-05-01-11, and to establish accurate baseline data against which future measurements may
be compared. The storage operator shall submit to the commission a descriptive report
prepared by a log analyst that includes an interpretation of the results of such logs and tests.
At a minimum, such logs and tests must include:
a. Deviation checks during drilling on all holes constructed by drilling a pilot hole which is
enlarged by reaming or another method. Such checks must be at sufficiently frequent
intervals to determine the location of the borehole and to ensure that vertical avenues for
fluid movement in the form of diverging holes are not created during drilling.
b. Before and upon installing the surface casing:
(1) Resistivity, spontaneous potential, and caliper logs before the casing is installed;
and
(2) A cement bond and variable density log to evaluate cement quality radially and a
temperature log after the casing is set and cemented.
c. Before and upon installation of the long string casing:
(1) Resistivity, spontaneous potential, porosity, caliper, gamma ray, fracture finder logs,
and any other logs the commission requires for the given geology before the casing
is installed; and
(2) A cement bond and variable density log, and a temperature log after the casing is
set and cemented.
d. A series of tests designed to demonstrate the internal and external mechanical integrity
of injection wells, which may include:
(1) A pressure test with liquid or gas;
(2) A tracer survey;
(3) A temperature or noise log;
(4) A casing inspection log; and
e. Any alternative methods that provide equivalent or better information and that the
commission requires or approves.
2. The storage operator shall take whole cores or sidewall cores of the injection zone and
confining zone and formation fluid samples from the injection zone, and shall submit to the
commission a detailed report prepared by a log analyst that includes well log analyses
(including well logs), core analyses, and formation fluid sample information. The commission

may accept information on cores from nearby wells if the storage operator can demonstrate
that core retrieval is not possible and that such cores are representative of conditions at the
well. The commission may require the storage operator to core other formations in the
borehole.
3. The storage operator shall record the fluid temperature, pH, conductivity, reservoir pressure,
and static fluid level of the injection zone.
4. At a minimum, the storage operator shall determine or calculate the following information
concerning the injection and confining zone:
a. Fracture pressure;
b. Other physical and chemical characteristics of the injection and confining zone; and
c. Physical and chemical characteristics of the formation fluids in the injection zone.
5. Upon completion, but prior to operation, the storage operator shall conduct the following tests
to verify hydrogeologic characteristics of the injection zone:
a. Pressure fall-off test; and
b. Pump test; or
c. Injectivity test.
6. The storage operator shall provide the commission with the opportunity to witness all logging
and testing carried out under this section. The storage operator shall submit a schedule of
such activities to the commission thirty days prior to conducting the first test and submit any
changes to the schedule thirty days prior to the next scheduled test.
History: Effective April 1, 2013.
General Authority: NDCC 28-32-02
Law Implemented: NDCC 38-22
### § 43-05-01-11.3. Injection well operating requirements.

1. Except during stimulation, the storage operator shall ensure that injection pressure does not
exceed ninety percent of the fracture pressure of the injection zone so as to ensure that the
injection does not initiate new fractures or propagate existing fractures in the injection zone.
Injection pressure must never initiate fractures in the confining zone or cause the movement
of injection or formation fluids that endanger an underground source of drinking water. All
stimulation programs are subject to the commission's approval as part of the storage facility
permit application and incorporated into the permit.
2. Injection between the outermost casing protecting underground sources of drinking water and
the well bore is prohibited.
3. The storage operator shall fill the annulus between the tubing and the long string casing with a
noncorrosive fluid approved by the commission. The storage operator shall maintain on the
annulus a pressure that exceeds the operating injection pressure, unless the commission
determines that such requirement might harm the integrity of the well or endanger
underground sources of drinking water.
4. Other than during periods approved by the commission in which the sealed tubing-casing
annulus is disassembled for maintenance or corrective procedures, the storage operator shall
maintain mechanical integrity of the injection well at all times.

5. The storage operator shall install and use:
a. Continuous recording devices to monitor the injection pressure; the rate, volume or
mass, and temperature of the carbon dioxide stream; and the pressure on the annulus
between the tubing and the long string casing and annulus fluid volume; and
b. Alarms and automatic surface shutoff systems or, at the discretion of the commission,
down-hole shutoff systems (e.g., automatic shutoff, check valves) or, other mechanical
devices that provide equivalent protection that are designed to alert the operator and
shut-in the well when operating parameters diverge beyond permitted ranges or
gradients specified in the permit.
6. If a shutdown (down-hole or at the surface) is triggered or a loss of mechanical integrity is
discovered, the storage operator shall immediately investigate and identify the cause as
expeditiously as possible. If, upon such investigation, the well appears to be lacking
mechanical integrity, or if monitoring required under subsection 5 indicates that the well may
lack mechanical integrity, the storage operator shall:
a. Immediately cease injection;
b. Take all steps reasonably necessary to determine whether there may have been a
release of the injected carbon dioxide stream or formation fluids into any unauthorized
zone;
c. Notify the commission within twenty-four hours;
d. Restore and demonstrate mechanical integrity to the satisfaction of the commission prior
to resuming injection; and
e. Notify the commission when injection can be expected to resume.
7. If any monitoring indicates the movement of injection or formation fluids into underground
sources of drinking water, the commission shall prescribe such additional requirements for
construction, corrective action, operation, monitoring, or reporting as are necessary to prevent
such movement. These additional requirements must be imposed by modifying or terminating
the permit in accordance with section 43-05-01-12 if the commission determines that cause
exists, or appropriate enforcement action may be taken if the permit has been violated.
History: Effective April 1, 2013.
General Authority: NDCC 28-32-02
Law Implemented: NDCC 38-22
### § 43-05-01-11.4. Testing and monitoring requirements.

The storage operator shall prepare, maintain, and comply with a testing and monitoring plan to
verify that the geologic sequestration project is operating as permitted and is not endangering
underground sources of drinking water. The requirement to maintain and implement a
commission-approved plan is directly enforceable regardless of whether the requirement is a condition
of the permit. The plan must be submitted with the storage facility permit application for commission
approval and must include a description of how the storage operator will meet the requirements of this
section, including accessing sites for all necessary monitoring and testing during the life of the project.
1. The testing and monitoring plan must include:
a. Analysis of the carbon dioxide stream in compliance with applicable analytical methods
and standards generally accepted by industry and with sufficient frequency to yield data
representative of its chemical and physical characteristics;

b. Installation and use, except during well workovers, of continuous recording devices to
monitor injection pressure, rate, and volume; the pressure on annulus between the tubing
and the long string casing; and the annulus fluid volume added;
c. Corrosion monitoring of the well materials for loss of mass, thickness, cracking, pitting,
and other signs of corrosion, which must be performed on a quarterly basis to ensure
that the well components meet the minimum standards for material strength and
performance by:
(1) Analyzing coupons of the well construction materials placed in contact with the
carbon dioxide stream;
(2) Routing the carbon dioxide stream through a loop constructed with the material
used in the well and inspecting the materials in the loop; or
(3) Using an alternative method approved by the commission;
d. Periodic monitoring of the ground water quality and geochemical changes above the
confining zone that may be a result of carbon dioxide movement through the confining
zone or additional identified zones, including:
(1) The location and number of monitoring wells based on specific information about
the geologic sequestration project, including injection rate and volume, geology, the
presence of artificial penetrations, and other factors; and
(2) The monitoring frequency and spatial distribution of monitoring wells based on
baseline geochemical data and on any modeling results in the area of review
evaluation;
e. A demonstration of external mechanical integrity at least once per year until the injection
well is plugged; and, if required by the commission, a casing inspection log at a
frequency established in the testing and monitoring plan;
f. A pressure fall-off test at least once every five years unless more frequent testing is
required by the commission based on site-specific information;
g. Testing and monitoring to track the extent of the carbon dioxide plume and the presence
or absence of elevated pressure (e.g., the pressure front) by using:
(1) Direct methods in the injection zone; and
(2) Indirect methods (e.g., seismic, electrical, gravity, interferometric synthetic aperture
radar or electromagnetic surveys and down-hole carbon dioxide detection tools),
unless the commission determines, based on site-specific geology, that such
methods are not appropriate;
h. The commission may require surface air monitoring and soil gas monitoring to detect
movement of carbon dioxide that could endanger an underground source of drinking
water. Regarding these requirements:
(1) Design of surface air and soil gas monitoring must be based on potential risks to
underground sources of drinking water within the area of review;
(2) The monitoring frequency and spatial distribution of surface air monitoring and soil
gas monitoring must be based on using baseline data, and the monitoring plan must
describe how the proposed monitoring will yield useful information on the area of
review; and

(3) Surface air monitoring and soil gas monitoring methods are subject to the
commission's approval;
i. Any additional monitoring, as required by the commission, necessary to support,
upgrade, and improve computational modeling of the area of review evaluation;
j. Periodic reviews of the testing and monitoring plan by the storage operator to incorporate
monitoring data collected, operational data collected, and the most recent area of review
reevaluation performed. The storage operator shall review the testing and monitoring
plan at least once every five years. Based on this review, the storage operator shall
submit an amended testing and monitoring plan or demonstrate to the commission that
no amendment to the testing and monitoring plan is needed. Any amendments to the
testing and monitoring plan are subject to the commission's approval, must be
incorporated into the permit, and are subject to the permit modification requirements.
Amended plans or demonstrations must be submitted to the commission as follows:
(1) Within one year of an area of review reevaluation;
(2) Following any significant changes to the facility, such as addition of monitoring wells
or newly permitted injection wells within the area of review, on a schedule
determined by the commission; or
(3) When required by the commission; and
k. A quality assurance and surveillance plan for all testing and monitoring requirements.
2. Samples and measurements taken for the purpose of monitoring shall be representative of the
monitored activity.
3. Records of monitoring information shall include:
a. The date, exact place, and time of sampling or measurements;
b. The individual who performed the sampling or measurements;
c. The date analyses were performed;
d. The individual who performed the analyses;
e. The analytical techniques or methods used; and
f. The results of such analyses.
4. All permits shall specify:
a. Requirements concerning the proper use, maintenance, and installation, when
appropriate, of monitoring equipment or methods, including biological monitoring
methods when appropriate;
b. Required monitoring, including type, intervals, and frequency sufficient to yield data,
which are representative of the monitored activity, including when appropriate,
continuous monitoring; and
c. Applicable reporting requirements based upon the impact of the regulated activity and as
specified throughout this chapter. Reporting shall be no less frequent than specified in
section 43-05-01-18.
History: Effective April 1, 2013.

General Authority: NDCC 28-32-02
Law Implemented: NDCC 38-22
### § 43-05-01-11.5. Injection well plugging.

1. Prior to the well plugging, the storage operator shall flush each injection well with a buffer fluid,
determine bottom hole reservoir pressure, and perform a final external mechanical integrity
test.
2. The storage operator shall prepare, maintain, and comply with a plugging plan that is
acceptable to the commission. The requirement to maintain and implement a
commission-approved plan is directly enforceable regardless of whether the requirement is a
condition of the permit. The plan must be submitted as part of the storage facility permit
application and must include the following:
a. Appropriate tests or measures for determining bottom hole reservoir pressure;
b. Appropriate testing methods to ensure external mechanical integrity;
c. The type and number of plugs to be used;
d. The placement of each plug, including the elevation of the top and bottom of each plug;
e. The type, grade, and quantity of material to be used in plugging. The material must be
compatible with the carbon dioxide stream; and
f. The method of placement of the plugs.
3. The storage operator shall notify the commission in writing, at least sixty days before plugging
a well, although the commission may allow a shorter period. At this time, if any changes have
been made to the original well plugging plan, the storage operator shall also provide the
revised well plugging plan. Any amendments to the plan are subject to the commission's
approval and must be incorporated into the storage facility permit and are subject to the permit
modification requirements.
4. Within sixty days after plugging, the storage operator shall submit a plugging report to the
commission. The report must be certified as accurate by the storage operator and by the
person who performed the plugging operation if other than the storage operator. The storage
operator shall retain the well plugging report until project completion. Upon project completion
the storage operator shall deliver the records to the commission.
History: Effective April 1, 2013.
General Authority: NDCC 28-32-02
Law Implemented: NDCC 38-22
### § 43-05-01-11.6. Injection depth waiver requirements.

1. In seeking a waiver of the requirement to inject below the lowermost underground sources of
drinking water, the storage operator shall submit a supplemental report concurrent with the
storage facility permit application. The supplemental report must:
a. Demonstrate that the injection zone is laterally continuous, is not an underground source
of drinking water, and is not hydraulically connected to underground sources of drinking
water; does not outcrop; has adequate injectivity, volume, and sufficient porosity to safely
contain the injected carbon dioxide and formation fluids; and has appropriate
geochemistry;

b. Demonstrate that the injection zone is bounded by laterally continuous, impermeable
confining units above and below the injection zone adequate to prevent fluid movement
and pressure buildup outside of the injection zone; and that the confining unit is free of
transmissive faults and fractures. The report shall further characterize the regional
fracture properties and demonstrate that such fractures will not interfere with injection,
serve as conduits, or endanger underground sources of drinking water;
c. Demonstrate, using computational modeling, that underground sources of drinking water
above and below the injection zone will not be endangered as a result of fluid movement.
This modeling must be conducted in conjunction with the area of review determination,
and is subject to requirements and periodic reevaluation;
d. Demonstrate that well design and construction, in conjunction with the waiver, will ensure
isolation of the injectate in lieu of requirements and will meet well construction
requirements;
e. Describe how the monitoring and testing and any additional plans will be tailored to the
geologic sequestration project to ensure protection of underground sources of drinking
water above and below the injection zone, if a waiver is granted;
f. Provide information on the location of all the public water supplies affected, reasonably
likely to be affected, or served by underground sources of drinking water in the area of
review; and
g. Provide any other information requested by the commission that the United States
environmental protection agency regional administrator might find useful in making the
decision whether to issue a waiver.
2. To assist the United States environmental protection agency regional administrator in making
the decision whether to grant a waiver of the injection depth requirements, the commission
shall submit to the regional administrator documentation of the following:
a. An evaluation of the following information as it relates to siting, construction, and
operation of a geologic sequestration project with a waiver:
(1) The integrity of the upper and lower confining units;
(2) The suitability of the injection zone (e.g., lateral continuity; lack of transmissive
faults and fractures; knowledge of current or planned artificial penetrations into the
injection zone or formations below the injection zone);
(3) The potential capacity of the geologic formation to sequester carbon dioxide,
accounting for the availability of alternative injection sites;
(4) All other site characterization data, the proposed emergency and remedial response
plan, and a demonstration of financial responsibility;
(5) Community needs, demands, and supply from drinking water resources;
(6) Planned needs, potential and future use of underground sources of drinking water
and nonunderground sources of drinking water in the area;
(7) Planned or permitted water, hydrocarbon, or mineral resource exploitation potential
of the proposed injection formation and other formations both above and below the
injection zone to determine if there are any plans to drill through the formation to
access resources in or beneath the proposed injection zone;

(8) The proposed plan for securing alternative resources or treating underground
sources of drinking water in the event of contamination related to the carbon dioxide
injection well activity; and
(9) Any other applicable considerations or information requested by the commission.
b. A review of the commission's consultation with the department of environmental quality
and federally recognized Indian tribes having jurisdiction over lands within the area of
review for the injection well for which a waiver is sought.
c. Any written waiver-related information submitted by the department of environmental
quality to the commission.
3. The commission shall give public notice that a waiver application has been submitted. The
notice must include a map of the area of review and state:
a. The depth of the proposed injection zone;
b. The location of the injection well;
c. The name and depth of all underground sources of drinking water within the area of
review;
d. The names of any public water supplies affected, reasonably likely to be affected, or
served by underground sources of drinking water in the area of review; and
e. The results of the consultation with the department of environmental quality.
4. Following public notice, the commission shall provide all information received through the
waiver application process to the United States environmental protection agency regional
administrator.
a. If the regional administrator determines that additional information is required to support
a decision, the commission shall request that the applicant for the waiver provide the
information.
b. The commission may not issue a waiver without written concurrence from the regional
administrator.
5. Upon receipt of a waiver, the storage operator shall comply with:
a. All requirements in sections 43-05-01-5.1, 43-05-01-9.1, 43-05-01-11.1, 43-05-01-11.2,
43-05-01-11.3, 43-05-01-11.5, 43-05-01-13, and 43-05-01-18.
b. All requirements in section 43-05-01-11 with the following modifications:
(1) Injection wells must be constructed and completed to prevent movement of fluids
into any unauthorized zones, including underground sources of drinking water.
(2) The casing and cementing program must be designed to prevent the movement of
fluids into any unauthorized zones, including underground sources of drinking water
in lieu of requirements in section 43-05-01-11.
(3) The surface casing must extend through the base of the nearest underground
source of drinking water directly above the injection zone and be cemented to the
surface; or, at the commission's discretion, another formation above the injection
zone and below the nearest underground source of drinking water above the
injection zone.

c. All requirements in section 43-05-01-11.4 with the following modifications:
(1) Ground water quality, geochemical changes, and pressure in the first underground
source of drinking water immediately above and below the injection zone, and in
any other formations at the discretion of the commission, must be monitored.
(2) Test and monitor to track the extent of the carbon dioxide plume and the presence
or absence of elevated pressure (e.g., the pressure front) by using direct methods to
monitor for pressure changes in the injection zone, and indirect methods (e.g.,
seismic, electrical, gravity, or electromagnetic surveys or down-hole carbon dioxide
detection tools), unless the commission determines based on site-specific geology
that such methods are not appropriate.
d. All requirements in section 43-05-01-19 with the following modifications for postinjection
site care monitoring requirements:
(1) Ground water quality, geochemical changes and pressure in the first underground
source of drinking water immediately above and below the injection zone, and in
any other formations at the discretion of the commission, must be monitored.
(2) Test and monitor to track the extent of the carbon dioxide plume and the presence
or absence of elevated pressure (e.g., the pressure front) by using direct methods in
the injection zone, and indirect methods (e.g., seismic, electrical, gravity, or
electromagnetic surveys or down-hole carbon dioxide detection tools), unless the
commission determines based on site-specific geology that such methods are not
appropriate.
e. Any additional requirements requested by the commission to ensure protection of
underground sources of drinking water above and below the injection zone.
History: Effective April 1, 2013.
General Authority: NDCC 28-32-02
Law Implemented: NDCC 38-22
### § 43-05-01-12. Modification, revocation, and reissuance or termination of permits.

1. Permits are subject to review by the commission. Any interested person (i.e., the storage
operator, local governments having jurisdiction over land within the area of review, and any
person who has suffered or will suffer actual injury or economic damage) may request that the
commission review permits issued under this chapter for one of the reasons set forth below.
All requests must be in writing and must contain facts or reasons supporting the request. If the
commission determines that the request may have merit or at the commission's initiative for
one or more of the reasons set forth below, the commission may review the permit. After
review, the commission may modify or revoke a permit. Permits may be modified or revoked
and reissued when the commission determines one of the following events has occurred:
a. Changes to the facility area;
b. Injecting into a reservoir not specified in the permit;
c. Any increase greater than the permitted carbon dioxide storage volume;
d. Changes in the chemical composition of the carbon dioxide stream;
e. Area of review reevaluations under subdivision a of subsection 4 of section
43-05-01-05.1;

f. Amendment to the testing and monitoring plan under subdivision j of subsection 1 of
section 43-05-01-11.4;
g. Amendment to the injection well plugging plan under subsection 3 of section
43-05-01-11.5;
h. Amendment to the postinjection site care and facility closure plan under subsection 3 of
section 43-05-01-19;
i. Amendment to the emergency and remedial response plan under subsection 4 of section
43-05-01-13;
j. Review of monitoring and testing results conducted in accordance with injection well
permit requirements;
k. The commission receives information that was not available at the time of permit
issuance. Permits may be modified during their terms for this cause only if the
information was not available at the time of permit issuance (other than revised
regulations, guidance, or test methods) and would have justified the application of
different permit conditions at the time of issuance;
l. The standards or regulations on which the storage facility permit was based have been
changed by promulgation of new or amended standards or regulations or by judicial
decision after the permit was issued;
m. The commission determines good cause exists for modification of a compliance
schedule, such as an act of God, strike, flood, or materials shortage or other events over
which the storage operator has little or no control and for which there is no reasonably
available remedy; or
n. There are material and substantial alterations or additions to the permitted facility or
activity which occurred after permit issuance which justify the application of permit
conditions that are different or absent in the existing permit.
2. If the commission tentatively decides to modify or revoke and reissue a permit, the
commission shall prepare a draft permit incorporating the proposed changes. The commission
may request additional information and, in the case of a modified permit, may require the
submission of an updated application. In the case of a revoked and reissued permit, the
commission shall require the submission of a new permit application.
3. In a permit modification under this section, only those conditions to be modified shall be
reopened when a new draft permit is prepared. All other aspects of the existing permit shall
remain in effect for the duration of the unmodified permit. When a permit is revoked and
reissued, the entire permit is reopened just as if the permit had expired and was being
reissued. During any revocation and reissuance proceeding, the storage operator shall comply
with all conditions of the existing permit until a new final permit is reissued.
4. Suitability of the storage facility location will not be considered at the time of permit
modification or revocation unless new information or standards indicate that a threat to human
health or the environment exists which was unknown at the time of permit issuance.
5. The commission has received notification of a proposed transfer of the storage facility permit.
6. The following are causes for terminating an injection well permit during its term:
a. Noncompliance by the storage operator with any permit condition;

b. Failure by the storage operator to fully disclose all relevant facts or misrepresentation of
relevant facts to the commission; or
c. A determination that the permitted activity endangers human health or the environment.
7. If the commission tentatively decides to terminate a permit, the commission shall issue notice
of intent to terminate. A notice of intent to terminate is a type of draft permit which follows the
same procedures as any draft permit prepared under section 43-05-01-07.2.
History: Effective April 1, 2010; amended effective April 1, 2013.
General Authority: NDCC 28-32-02
Law Implemented: NDCC 38-22
### § 43-05-01-12.1. Minor modifications of permits.

Upon agreement between the storage operator and the commission, the commission may modify a
permit to make the corrections or allowances without the storage operator filing an application to
amend a permit. Any permit modification not processed as a minor modification under this section must
be filed as an application to amend an existing permit under section 43-05-01-12. Minor modifications
may include:
1. Correct typographical errors;
2. Require more frequent monitoring or reporting by the storage operator;
3. Change an interim compliance date in a schedule of compliance, provided the new date is not
more than one hundred twenty days after the date specified in the existing permit and does
not interfere with attaintment of the final compliance date requirement;
4. Allow for a change in ownership or operational control of a facility where the commission
determines that no other change in the storage facility permit is necessary, provided that a
written agreement containing a specific date for transfer of permit responsibility, coverage, and
liability between the current and new storage operator has been submitted to the commission
pursuant to section 43-05-01-06;
5. Change quantities or types of fluids injected which are within the capacity of the facility as
permitted and, in the judgment of the commission, would not interfere with the operation of the
facility or its ability to meet conditions described in the permit and would not change its
classification;
6. Change construction requirements approved by the commission, provided that any such
alteration shall comply with the requirements of this chapter and no such changes are
physically incorporated into construction of the well prior to approval of the modification by the
commission; or
7. Amend the testing and monitoring plan, plugging plan, postinjection site care and facility
closure plan, emergency and remedial response plan, worker safety plan, or corrosion
monitoring and prevention program where the modifications merely clarify or correct the plan,
as determined by the commission.
History: Effective April 1, 2013.
General Authority: NDCC 28-32-02
Law Implemented: NDCC 38-22

### § 43-05-01-13. Emergency and remedial response plan.

The storage operator shall implement the commission-approved emergency and remedial response
plan and the worker safety plan proposed in section 43-05-01-05. This plan must include emergency
response and security procedures. The plan, including revision of the list of contractors and equipment
vendors, must be updated as necessary or as the commission requires. Copies of the plans must be
available at the storage facility and at the storage operator's nearest operational office.
1. The emergency and remedial response plan requires a description of the actions the storage
operator shall take to address movement of the injection or formation fluids that may endanger
an underground source of drinking water during construction, operation, and postinjection site
care periods. The requirement to maintain and implement a commission-approved plan is
directly enforceable regardless of whether the requirement is a condition of the permit. The
plan must also detail:
a. The safety procedures concerning the facility and residential, commercial, and public
land use within one mile [1.61 kilometers], or any other distance set by the commission,
of the outside boundary of the facility area; and
b. Contingency plans for addressing carbon dioxide leaks from any well, flow lines, or other
facility, and loss of containment from the storage reservoir, and identify specific
contractors and equipment vendors capable of providing necessary services and
equipment to respond to such leaks or loss of containment.
2. If the storage operator obtains evidence that the injected carbon dioxide stream and
associated pressure front may endanger an underground source of drinking water, the storage
operator shall:
a. Immediately cease injection;
b. Take all steps reasonably necessary to identify and characterize any release;
c. Notify the commission within twenty-four hours; and
d. Implement the emergency and remedial response plan approved by the commission.
3. The commission may allow the operator to resume injection prior to remediation if the storage
operator demonstrates that the injection operation will not endanger underground sources of
drinking water.
4. The storage operator shall review annually the emergency and remedial response plan
developed under subsection 1. Based on this review, the storage operator shall submit to the
commission an amended plan or demonstrate to the commission that no amendment to the
plan is needed. Any amendments to the plan are subject to the commission's approval, must
be incorporated into the storage facility permit, and are subject to the permit modification
requirements. Amended plans or demonstrations that amendments are not needed shall be
submitted to the commission as follows:
a. Within one year of an area of review reevaluation;
b. Following any significant changes to the facility, such as addition of injection or
monitoring wells, on a schedule determined by the commission; or
c. When required by the commission.
History: Effective April 1, 2010; amended effective April 1, 2013.
General Authority: NDCC 28-32-02

Law Implemented: NDCC 38-22
### § 43-05-01-14. Leak detection and reporting.

1. Leak detectors or other approved leak detection methodologies must be placed at the
wellhead of all injection and subsurface observation wells. Leak detectors must be integrated,
where applicable, with automated warning systems and must be inspected and tested on a
semiannual basis and, if defective, shall be repaired or replaced within ten days. Each
repaired or replaced detector must be retested if required by the commission. An extension of
time for repair or replacement of a leak detector may be granted upon a showing of good
cause by the storage operator. A record of each inspection must include the inspection results,
must be maintained by the operator for at least ten years, and must be made available to the
commission upon request.
2. The storage operator shall immediately report to the commission any leak detected at any well
or surface facility.
3. The storage operator shall immediately report to the commission any pressure changes or
other monitoring data from subsurface observation wells that indicate the presence of leaks in
the storage reservoir.
4. The storage operator shall immediately report to the commission any other indication that the
storage facility is not containing carbon dioxide, whether the lack of containment concerns the
storage reservoir, surface equipment, or any other aspect of the storage facility.
History: Effective April 1, 2010; amended effective April 1, 2013.
General Authority: NDCC 28-32-02
Law Implemented: NDCC 38-22
### § 43-05-01-15. Storage facility corrosion monitoring and prevention requirements.

The storage operator shall conduct a corrosion monitoring and prevention program approved by the
commission.
History: Effective April 1, 2010; amended effective April 1, 2013.
General Authority: NDCC 28-32-02
Law Implemented: NDCC 38-22
### § 43-05-01-16. Storage facility identification requirements.

Identification signs must be placed at each storage facility in a centralized location and at each well
site. The signs must show the name of the operator, the facility name, and the emergency response
number to contact the operator.
History: Effective April 1, 2010.
General Authority: NDCC 28-32-02
Law Implemented: NDCC 38-22
### § 43-05-01-17. Storage facility fees.

1. The storage operator shall pay the commission as follows:
a. Carbon dioxide sources that contribute to the energy and agriculture production economy
of North Dakota:
(1) A fee of one cent on each ton of carbon dioxide injected for storage. The fee must
be deposited in the carbon dioxide storage facility administrative fund.

(2) The storage operator shall pay the commission a fee of seven cents on each ton of
carbon dioxide injected for storage. The fee must be deposited in the carbon dioxide
storage facility trust fund.
b. Carbon dioxide sources that do not fall under the definition of subdivision a of
subsection 1:
(1) The storage operator shall pay a per ton of carbon dioxide injected commission fee
determined by hearing. The fee must be deposited in the carbon dioxide storage
facility administrative fund and consider the commission's expenses during
regulation of the storage facility's construction, operational, and preclosure phases.
(2) The storage operator shall pay a per ton of carbon dioxide injected commission fee
determined by hearing. The fee must be deposited in the carbon dioxide storage
facility trust fund and must consider:
(a) The cost of postclosure emergency and remedial response associated with the
storage facility.
(b) The cost of long-term monitoring postclosure associated with the storage
facility.
2. Moneys from the carbon dioxide storage facility trust fund, including accumulated interest,
may be relied upon to satisfy the financial assurance requirements pursuant to section
dioxide storage facility trust fund at the end of the closure period, the storage operator shall
make additional payments into the trust fund to ensure that sufficient funds are available to
carry out the required activities on the date at which they may occur. The commission shall
take into account project-specific risk assessments, projected timing of activities (e.g.,
postinjection site care), and interest accumulation in determining whether sufficient funds are
available to carry out the required activities.
History: Effective April 1, 2010; amended effective April 1, 2013; April 1, 2022.
General Authority: NDCC 28-32-02
Law Implemented: NDCC 38-22
### § 43-05-01-18. Reporting requirements.

1. The storage operator shall file with the commission all reports, submittals, notifications, and
any other information that the commission requires.
2. The storage operator shall give notice to the commission as soon as possible of any planned
physical alterations or additions to the permitted storage facility or any other planned changes
in the permitted storage facility or activity which may result in noncompliance with permit
requirements.
3. Reports of compliance or noncompliance with, or any progress reports on, interim and final
requirements contained in any compliance schedule of this permit shall be submitted no later
than thirty days following each schedule date.
4. The storage operator shall file with the commission quarterly, or more frequently if the
commission requires, a report on the volume of carbon dioxide injected into or withdrawn
since the last report, the average injection rate, average composition of the carbon dioxide
stream, wellhead and downhole temperature and pressure data or calculations, or other
pertinent operational parameters as required by the commission.

5. The storage operator shall submit all required reports, submittals, and notification under
chapter 43-05-01 to the United States environmental protection agency in an electronic format
approved by that agency.
6. The quarterly report is due thirty days after the end of the quarter. The report must:
a. Describe any changes to the physical, chemical, and other relevant characteristics of the
carbon dioxide stream from the proposed operating data;
b. State the monthly average, maximum, and minimum values for injection pressure, flow
rate and volume, and annular pressure;
c. Describe any event that exceeds operating parameters for annulus pressure or injection
pressure specified in the permit;
d. Describe any event which triggers a shutoff device required pursuant to subsection 5 of
section 43-05-01-11.3 and the response taken;
e. State the monthly volume and mass of the carbon dioxide stream injected over the
reporting period and the volume injected cumulatively over the life of the project to date;
f. State the monthly annulus fluid volume added; and
g. State the results of monitoring prescribed under section 43-05-01-11.4.
7. The storage operator shall file with the commission an annual report that summarizes the
quarterly reports and that provides updated projections of the response and storage capacity
of the storage reservoir. The projections must be based on actual reservoir operational
experience, including all new geologic data and information. All anomalies in predicted
behavior as indicated in permit conditions or in the assumptions upon which the permit was
issued must be explained and, if necessary, the permit conditions amended in accordance
with section 43-05-01-12. The annual report is due forty-five days after the end of the year.
8. The storage operator shall report, within thirty days, the results of:
a. Periodic tests of mechanical integrity;
b. Any well workover; and
c. Any other test of the injection well conducted by the storage operator if required by the
commission.
9. The storage operator shall report the following, within twenty-four hours:
a. Any evidence that the injected carbon dioxide stream or associated pressure front may
cause an endangerment to an underground source of drinking water;
b. Any noncompliance which may endanger health and safety of persons or cause pollution
of the environment, including:
(1) Any monitoring or other information which indicates that any contaminant may
cause an endangerment to underground sources of drinking water; or
(2) Any noncompliance with a permit condition or malfunction of the injection system
which may cause fluid migration into or between underground sources of drinking
water shall be provided verbally within twenty-four hours from the time the storage
operator becomes aware of the circumstances. A written submission shall also be
provided within five days of the time the storage operator becomes aware of the

circumstances. The written submission shall contain a description of the
noncompliance and its cause; the period of noncompliance, including exact dates
and times; and if the noncompliance has not been corrected, the anticipated time it
is expected to continue; and steps taken or planned to reduce, eliminate, and
prevent reoccurrence of the noncompliance.
c. Any triggering of a shutoff system (e.g., down-hole or at the surface);
d. Any failure to maintain mechanical integrity; or
e. Any release of carbon dioxide to the atmosphere or biosphere in compliance with the
requirement under subdivision h of subsection 1 of section 43-05-01-11.4 for surface air
and soil gas monitoring, or other monitoring technologies required by the commission.
10. The storage operator shall notify the commission in writing thirty days in advance of:
a. Any planned well workover;
b. Any planned stimulation activities, other than stimulation for formation testing conducted;
c. Any other planned test of the injection well conducted by the storage operator; and
d. The conversion or abandonment of any well used or proposed to be used in a geologic
storage operation.
11. The storage operator shall retain the following records until project completion:
a. All data collected for the applications of the storage facility permit, injection well permit,
and operation of injection well permit;
b. Data on the nature and composition of all injected fluids collected pursuant to subdivision
a of subsection 1 of section 43-05-01-11.4; and
c. All records from the closure period, including well plugging reports, postinjection site care
data, and the final assessment.
d. Upon project completion, the storage operator shall deliver any records required in this
section to the commission.
12. The storage operator shall retain the following records for a period of at least ten years from
the date of the sample, measurement, or report:
a. Monitoring data collected pursuant to subdivisions b through i of subsection 1 of section
43-05-01-11.4; and
b. Calibration and maintenance records and all original strip chart recordings for continuous
monitoring instrumentation, and copies of all reports required by the storage facility
permit.
c. This period may be extended by request of the commission at any time.
13. The storage operator shall report all instances of noncompliance not otherwise reported under
this section, at the time monitoring reports are submitted. The reports shall contain the
information listed in subsection 9.
14. Where the storage operator becomes aware that it failed to submit any relevant facts in a
permit application, or submitted incorrect information in a permit application or in any report to
the commission, such facts or information shall be promptly submitted to the commission.

Failure to do so may result in revocation of the permit, depending on the nature of the
information withheld.
History: Effective April 1, 2010; amended effective April 1, 2013.
General Authority: NDCC 28-32-02
Law Implemented: NDCC 38-22
### § 43-05-01-18.1. Abandonment of wells.

1. The removal of injection equipment or the failure to operate an injection well for one year
constitutes abandonment of the well. An abandoned well must be plugged in accordance with
the plugging plan and its site must be reclaimed.
2. The commission may waive for one year the requirement to plug and reclaim an abandoned
well by giving the well temporarily abandoned status. This status may only be given to wells
that are to be used for purposes related to the geologic storage of carbon dioxide. If a well is
given temporarily abandoned status, the well's perforations must be isolated, the integrity of its
casing must be proven, and its casing must be sealed at the surface, all in a manner approved
by the commission. The commission may extend a well's temporarily abandoned status
beyond one year. A fee of one hundred dollars shall be submitted for each application to
extend the temporary abandonment status of any well.
3. In addition to the waiver in subsection 2, the commission may also waive the duty to plug and
reclaim an abandoned well for any other good cause found by the commission. If the
commission exercises this discretion, the commission shall set a date or circumstance upon
which the waiver expires.
History: Effective April 1, 2013.
General Authority: NDCC 28-32-02
Law Implemented: NDCC 38-22
### § 43-05-01-19. Postinjection site care and facility closure.

The storage operator shall submit and maintain the postinjection site care and facility closure plan
as a part of the storage facility permit application to be approved by the commission. The requirement
to maintain and implement a commission-approved plan is directly enforceable regardless of whether
the requirement is a condition of the permit.
1. The postinjection site care and facility closure plan must include the following information:
a. The pressure differential between preinjection and predicted postinjection pressures in
the injection zone;
b. The predicted position of the carbon dioxide plume and associated pressure front at
cessation of injection as demonstrated in the area of review evaluation;
c. A description of postinjection monitoring location, methods, and proposed frequency;
d. A schedule for submitting postinjection site care monitoring results to the commission;
and
e. The duration of the postinjection site care monitoring time frame that ensures
nonendangerment of underground sources of drinking water.
2. The storage operator shall specify in the postinjection site care and facility closure plan which
wells will be plugged and which will remain unplugged to be used as subsurface observation

wells. Subsurface observation and ground water monitoring wells as approved in the plan
must remain in place for continued monitoring during the closure and postclosure periods.
3. Upon cessation of injection, the storage operator shall either submit an amended postinjection
site care and facility closure plan or demonstrate to the commission through monitoring data
and modeling results that no amendment to the plan is needed. Any amendments to the
postinjection site care and facility closure plan are subject to the commission's approval and
must be incorporated into the storage facility permit.
4. At any time during the life of the geologic sequestration project, the storage operator may
modify and resubmit the postinjection site care and facility closure plan for the commission's
approval within thirty days of such change.
5. Upon cessation of injection, all wells not associated with monitoring must be properly plugged
and abandoned in a manner which will not allow movement of injection or formation fluids that
endanger underground sources of drinking water in accordance with section 43-05-01-11.5. All
storage facility equipment, appurtenances, and structures not associated with monitoring must
be removed. Following well plugging and removal of all surface equipment, the surface must
be reclaimed to the commission's specifications that will, in general, return the land as closely
as practicable to original condition pursuant to North Dakota Century Code section
38-08-04.12.
6. The well casing must be cut off at a depth of five feet [1.52 meters] below the surface and a
steel plate welded on top identifying the well name and that it was used for carbon dioxide.
7. The commission shall develop in conjunction with the storage operator a continuing monitoring
plan for the postclosure period, including a review and final approval of wells to be plugged.
8. The storage operator shall continue to conduct monitoring during the closure period as
specified in the commission-approved postinjection site care and facility closure plan. The
storage operator may apply for project completion with an alternative postinjection site care
monitoring time frame pursuant to North Dakota Century Code section 38-22-17. Once it is
demonstrated that underground sources of drinking water are no longer endangered, the final
assessment under subsection 9 is complete, and upon full compliance with North Dakota
Century Code section 38-22-17, the storage operator may apply to the commission for a
certificate of project completion. If the storage operator is unable to meet the requirements of
North Dakota Century Code section 38-22-17 and is unable to demonstrate that underground
sources of drinking water are no longer being endangered, the storage operator shall continue
monitoring the storage facility for fifty years or until full compliance is met and such
demonstration can be made.
9. Before project completion, the storage operator shall provide a final assessment of the stored
carbon dioxide's location, characteristics, and its future movement and location within the
storage reservoir. The storage operator shall submit the final assessment to the commission
within ninety days of completing all postinjection site care and facility closure requirements.
a. The final assessment must include:
(1) The results of computational modeling performed pursuant to delineation of the area
of review under section 43-05-01-05.1;
(2) The predicted time frame for pressure decline within the injection zone, and any
other zones, such that formation fluids may not be forced into any underground
sources of drinking water or the time frame for pressure decline to preinjection
pressures;

(3) The predicted rate of carbon dioxide plume migration within the injection zone and
the predicted time frame for the cessation of migration;
(4) A description of the site-specific processes that will result in carbon dioxide trapping,
including immobilization by capillary trapping, dissolution, and mineralization at the
site;
(5) The predicted rate of carbon dioxide trapping in the immobile capillary phase,
dissolved phase, or mineral phase;
(6) The results of laboratory analyses, research studies, or field or site-specific studies
to verify the information required in paragraphs 4 and 5;
(7) A characterization of the confining zone, including a demonstration that it is free of
transmissive faults, fractures, and microfractures, and an evaluation of thickness,
permeability, and integrity to impede fluid (e.g., carbon dioxide, formation fluids)
movement;
(8) Any other projects in proximity to the predictive modeling of the final extent of the
carbon dioxide plume and area of elevated pressures. The presence of potential
conduits for fluid movement, including planned injection wells and project monitoring
wells associated with the proposed geologic sequestration project;
(9) A description of the well construction and an assessment of the quality of plugs of all
abandoned wells within the area of review;
(10) The distance between the injection zone and the nearest underground source of
drinking water above and below the injection zone;
(11) An assessment of the operations conducted during the operational period, including
the volumes injected, volumes extracted, all chemical analyses conducted, and a
summary of all monitoring efforts. The report must also document the stored carbon
dioxide's location and characteristics and predict how it might move during the
postclosure period;
(12) An assessment of the funds in the carbon dioxide storage facility trust fund to
ensure that sufficient funds are available to carry out the required activities on the
date on which they may occur, taking into account project-specific risk assessments,
projected timing of activities (e.g., postinjection site care), and interest accumulation
in the trust fund; and
(13) Any additional site-specific factors required by the commission.
b. Information submitted to support the demonstration in subdivision a must meet the
following criteria:
(1) All analyses and tests for the final assessment must be accurate, reproducible, and
performed in accordance with the established quality assurance standards. An
approved quality assurance and quality control plan must address all aspects of the
final assessment;
(2) Estimation techniques must be appropriate and test protocols certified by the United
States environmental protection agency must be used where available;
(3) Predictive models must be appropriate and tailored to the site conditions,
composition of the carbon dioxide stream, and injection and site conditions over the
life of the geologic sequestration project;

(4) Predictive models must be calibrated using existing information when sufficient data
are available;
(5) Reasonably conservative values and modeling assumptions must be used and
disclosed to the commission whenever values are estimated on the basis of known,
historical information instead of site-specific measurements;
(6) An analysis must be performed to identify and assess aspects of the postinjection
monitoring time frame demonstration that contribute significantly to uncertainty. The
storage operator shall conduct sensitivity analyses to determine the effect that
significant uncertainty may contribute to the modeling demonstration; and
(7) Any additional criteria required by the commission.
10. The storage operator shall provide a copy of an accurate plat certified by a registered
surveyor which has been submitted to the county recorder's office designated by the
commission. The plat must indicate the location of the injection well relative to permanently
surveyed benchmarks. The storage operator must also submit a copy of the plat to the United
States environmental protection agency regional administrator office.
11. The storage operator shall record a notation on the deed to the property on which the injection
well was located, or any other document that is normally examined during title search, that will
in perpetuity provide any potential purchaser of the property the following information:
a. The fact that land has been used to sequester carbon dioxide;
b. The name of the state agency, local authority, or tribe with which the survey plat was
filed, as well as the address of the United States environmental protection agency
regional office to which it was submitted; and
c. The volume of fluid injected, the injection zone or zones into which it was injected, and
the period over which injection occurred.
History: Effective April 1, 2010; amended effective April 1, 2013; April 1, 2018.
General Authority: NDCC 28-32-02
Law Implemented: NDCC 38-22
### § 43-05-01-20. Determining storage amounts.

1. Upon application by an enhanced oil or gas recovery unit operator or a storage operator, the
commission, after notice and hearing, shall issue an order determining the amount of injected
carbon dioxide stored in a reservoir that has been or is being used for an enhanced oil or gas
recovery project or in a storage reservoir that has been or is being used for storage under a
permit issued pursuant to North Dakota Century Code chapter 38-22.
2. The applicant shall pay a processing fee for a storage amount determination.
The applicant shall pay a processing fee based on the commission's actual processing costs,
including computer data processing costs, as determined by the commission. The following
procedures and criteria will be utilized in establishing the fee:
a. A record of all application processing costs incurred must be maintained by the
commission.
b. Promptly after receiving an application, the commission shall prepare and submit to the
applicant an estimate of the processing fee.

c. After the commission's work on the application has concluded, a final statement will be
sent to the applicant. The full processing fee must be paid before the commission issues
its decision on the application.
d. The applicant must pay the processing fee even if the application is denied or withdrawn.
History: Effective April 1, 2010; amended effective April 1, 2013.
General Authority: NDCC 28-32-02
Law Implemented: NDCC 38-22
