1. (a) Each condition applicable to a permit shall be incorporated into the permit either expressly or by reference. If incorporated by reference, a specific citation to the rules in this chapter shall be given in the permit. The requirements listed in this section are directly enforceable regardless of whether the requirement is a condition of the permit.

2. (b) General criteria. The director may issue a permit under this subchapter if the applicant demonstrates and the director finds that:

   1. (1) the injection and geologic storage of anthropogenic CO₂ will not endanger or injure any existing or prospective oil, gas, geothermal, or other mineral resource, or cause waste as defined by Texas Natural Resources Code, §85.046(11);
   2. (2) with proper safeguards, both USDWs and surface water can be adequately protected from CO₂ migration or displaced formation fluids;
   3. (3) the injection of anthropogenic CO₂ will not endanger or injure human health and safety;
   4. (4) the reservoir into which the anthropogenic CO₂ is injected is suitable for or capable of being made suitable for protecting against the escape or migration of anthropogenic CO₂ from the storage reservoir;

   5. (5) the geologic storage facility will be sited in an area with suitable geology, which at a minimum must include:

      1. (A) an injection zone of sufficient areal extent, thickness, porosity, and permeability to receive the total anticipated volume of the CO₂ stream; and
      2. (B) a confining zone that is laterally continuous and free of known transecting transmissive faults or fractures over an area sufficient to contain the injected CO₂ stream and displaced formation fluids and allow injection at proposed maximum pressures and volumes without compromising the confining zone or causing the movement of fluids that endangers USDWs;
   6. (6) the applicant for the permit meets all of the other statutory and regulatory requirements for the issuance of the permit;
   7. (7) the applicant has provided a letter from the Groundwater Advisory Unit of the Oil and Gas Division in accordance with §5.203(o) of this title (relating to Application Requirements);
   8. (8) the applicant has provided a letter of determination from TCEQ concluding that drilling and operating an anthropogenic CO₂ injection well for geologic storage or constructing or operating a geologic storage facility will not impact or interfere with any previous or existing Class I injection well, including any associated waste plume, or any other injection well authorized or permitted by TCEQ;
   9. (9) the applicant has provided a signed statement that the applicant has a good faith claim to the necessary and sufficient property rights for construction and operation of the geologic storage facility for at least the first five years after initiation of injection in accordance with §5.203(d)(1)(A) of this title;
   10. (10) the applicant has paid the fees required in §5.205(a) of this title (relating to Fees, Financial Responsibility, and Financial Assurance);
   11. (11) the director has determined that the applicant has sufficiently demonstrated financial responsibility as required in §5.205(b) of this title; and
   12. (12) the applicant submitted to the director financial assurance in accordance with §5.205(c) of this title.

3. (c) Injection well construction.

   1. (1) Construction of anthropogenic CO₂ injection wells must meet the criteria in §5.203(e) of this title.
   2. (2) Within 30 days after the completion or conversion of an injection well subject to this subchapter, the operator must file with the division a complete record of the well on the appropriate form showing the current completion.
   3. (3) Except in the case of an emergency repair, the operator of a geologic storage facility must notify the director in writing at least 30 days prior to conducting any well workover that involves running tubing and setting packers, beginning any workover or remedial operation, or conducting any required pressure tests or surveys. Such activities shall not commence before the end of the 30 days unless authorized by the director. In the case of an emergency repair, the operator must notify the director of such emergency repair as soon as reasonably practical.

4. (d) Operating a geologic storage facility.

   1. (1) Operating plan. The operator must maintain and comply with the approved operating plan.

   2. (2) Operating criteria.

      1. (A) Injection between the outermost casing protecting USDWs and the well bore is prohibited.
      2. (B) The total volume of CO₂ injected into the storage facility must be metered through a master meter or a series of master meters. The volume and/or mass of CO₂ injected into each injection well must be metered through an individual well meter. If mass is determined using volume, the operator must provide calculations.
      3. (C) The operator must comply with a maximum surface injection pressure limit approved by the director and specified in the permit. In approving a maximum surface injection pressure limit, the director must consider the results of well tests and, where appropriate, geomechanical or other studies that assess the risks of tensile failure and shear failure. The director must approve limits that, with a reasonable degree of certainty, will avoid initiation or propagation of fractures in the confining zone or cause otherwise non-transmissive faults or fractures transecting the confining zone to become transmissive. In no case may injection pressure cause movement of injection fluids or formation fluids in a manner that endangers USDWs. The Commission shall include in any permit it might issue a limit of 90 percent of the fracture pressure to ensure that the injection pressure does not initiate new fractures or propagate existing fractures in the injection zone(s). In no case may injection pressure initiate fractures in the confining zone(s) or cause the movement of injection or formation fluids that endangers a USDW. The director may approve a plan for controlled artificial fracturing of the injection zone.
      4. (D) The operator must fill the annulus between the tubing and the long string casing with a corrosion inhibiting fluid approved by the director. The owner or operator must maintain on the annulus a pressure that exceeds the operating injection pressure, unless the director determines that such requirement might harm the integrity of the well or endanger USDWs.
      5. (E) The operator must install and use continuous recording devices to monitor the injection pressure, and the rate, volume, and temperature of the CO₂ stream. The operator must monitor the pressure on the annulus between the tubing and the long string casing. The operator must continuously record, continuously monitor, or control by a preset high-low pressure sensor switch the wellhead pressure of each injection well.

      6. (F) The operator must comply with the following requirements for alarms and automatic shut-off systems.

         1. (i) The operator must install and use alarms and automatic shut-off systems designed to alert the operator and shut-in the well when operating parameters such as annulus pressure, injection rate or other parameters diverge from permitted ranges and/or gradients. On offshore wells, the automatic shut-off systems must be installed down-hole.

         2. (ii) If an automatic shutdown is triggered or a loss of mechanical integrity is discovered, the operator must immediately investigate and identify as expeditiously as possible the cause. If, upon investigation, the well appears to be lacking mechanical integrity, or if monitoring otherwise indicates that the well may be lacking mechanical integrity, the operator must:

            1. (I) immediately cease injection;
            2. (II) take all steps reasonably necessary to determine whether there may have been a release of the injected CO₂ stream into any unauthorized zone;
            3. (III) notify the director as soon as practicable, but within 24 hours;
            4. (IV) restore and demonstrate mechanical integrity to the satisfaction of the director prior to resuming injection; and
            5. (V) notify the director when injection can be expected to resume.

5. (e) Monitoring, sampling, and testing requirements.

   1. (1) The operator of an anthropogenic CO₂ injection well must maintain and comply with the approved monitoring, sampling, and testing plan to verify that the geologic storage facility is operating as permitted and that the injected fluids are confined to the injection zone.

   2. (2) All permits shall include the following requirements:

      1. (A) the proper use, maintenance, and installation of monitoring equipment or methods;
      2. (B) monitoring including type, intervals, and frequency sufficient to yield data that are representative of the monitored activity including, when required, continuous monitoring;
      3. (C) reporting no less frequently than as specified in §5.207 of this title (relating to Reporting and Record-Keeping).
   3. (3) The director may require additional monitoring as necessary to support, upgrade, and improve computational modeling of the AOR evaluation and to determine compliance with the requirement that the injection activity not allow movement of fluid that would endanger USDWs.
   4. (4) The director may require measures and actions designed to minimize and respond to risks associated with potential seismic events, including seismic monitoring.

6. (f) Mechanical integrity.

   1. (1) The operator must maintain and comply with the approved mechanical integrity testing plan submitted in accordance with §5.203(j) of this title.
   2. (2) Other than during periods of well workover in which the sealed tubing-casing annulus is of necessity disassembled for maintenance or corrective procedures, the operator must maintain mechanical integrity of the injection well at all times.
   3. (3) The operator must either repair and successfully retest or plug a well that fails a mechanical integrity test.
   4. (4) The director may require additional or alternative tests if the results presented by the operator do not demonstrate to the director that there is no significant leak in the casing, tubing, or packer or movement of fluid into or between formations containing USDWs resulting from the injection activity.

7. (g) AOR and corrective action. Notwithstanding the requirement in §5.203(d)(2)(B)(i) of this title to perform a re-evaluation of the AOR, at the frequency specified in the AOR and corrective action plan or permit, the operator of a geologic storage facility also must conduct the following whenever warranted by a material change in the monitoring and/or operational data or in the evaluation of the monitoring and operational data by the operator:

   1. (1) a re-evaluation of the AOR by performing all of the actions specified in §5.203(d)(1)(A) - (C) of this title to delineate the AOR and identify all wells that require corrective action;
   2. (2) identify all wells in the re-evaluated AOR that require corrective action;
   3. (3) perform corrective action on wells requiring corrective action in the re-evaluated AOR in the same manner specified in §5.203(d)(1)(C) of this title; and
   4. (4) submit an amended AOR and corrective action plan or demonstrate to the director through monitoring data and modeling results that no change to the AOR and corrective action plan is needed.

8. (h) Emergency, mitigation, and remedial response.

   1. (1) Plan. The operator must maintain and comply with the approved emergency and remedial response plan required by §5.203(l) of this title. The operator must update the plan in accordance with §5.207(a)(2)(D)(vi) of this title (relating to Reporting and Record-Keeping). The operator must make copies of the plan available at the storage facility and at the company headquarters.

   2. (2) Training.

      1. (A) The operator must prepare and implement a plan to train and test each employee at the storage facility on occupational safety and emergency response procedures to the extent applicable to the employee's duties and responsibilities. The operator must make copies of the plan available at the geological storage facility. The operator must train all employees before commencing injection and storage operations at the facility. The operator must train each subsequently hired employee before that employee commences work at the storage facility.
      2. (B) The operator must hold a safety meeting with each contractor prior to the commencement of any new contract work at a storage facility. The operator must explain emergency measures specific to the contractor's work in the contractor safety meeting.
      3. (C) The operator must provide training schedules, training dates, and course outlines to Commission personnel annually and upon request for the purpose of Commission review to determine compliance with this paragraph.

   3. (3) Action. If an operator obtains evidence that the injected CO₂ stream and associated pressure front may cause an endangerment to USDWs, the operator must:

      1. (A) immediately cease injection;
      2. (B) take all steps reasonably necessary to identify and characterize any release;
      3. (C) notify the director as soon as practicable but within at least 24 hours; and
      4. (D) implement the approved emergency and remedial response plan.
   4. (4) Resumption of injection. The director may allow the operator to resume injection prior to remediation if the operator demonstrates that the injection operation will not endanger USDWs.
9. (i) Commission witnessing of testing and logging. The operator must provide the division with the opportunity to witness all planned well workovers, stimulation activities, other than stimulation for formation testing, and testing and logging. The operator must submit a proposed schedule of such activities to the Commission at least 30 days prior to conducting the first such activity and submit notice at least 48 hours in advance of any actual activity. Such activities shall not commence before the end of the 30 days unless authorized by the director.
10. (j) Well plugging. The operator of a geologic storage facility must maintain and comply with the approved well plugging plan required by §5.203(k) of this title.

11. (k) Post-injection storage facility care and closure.

    1. (1) Post-injection storage facility care and closure plan.

       1. (A) The operator of an injection well must maintain and comply with the approved post-injection storage facility care and closure plan.
       2. (B) The operator must update the plan in accordance with §5.207(a)(2)(D)(vi) of this title. At any time during the life of the geologic sequestration project, the operator may modify and resubmit the post-injection site care and site closure plan for the director's approval within 30 days of such change. Any amendments to the post-injection site care and site closure plan must be approved by the director, be incorporated into the permit, and are subject to the permit modification requirements in §5.202 of this title (relating to Permit Required), as appropriate.
       3. (C) Upon cessation of injection, the operator of a geologic storage facility must either submit an amended plan or demonstrate to the director through monitoring data and modeling results that no amendment to the plan is needed.
    2. (2) Post-injection storage facility monitoring. Following cessation of injection, the operator must continue to conduct monitoring as specified in the approved plan until the director determines that the position of the CO₂ plume and pressure front are such that the geologic storage facility will not endanger USDWs.

    3. (3) Prior to closure. Prior to authorization for storage facility closure, the operator must demonstrate to the director, based on monitoring, other site-specific data, and modeling that is reasonably consistent with site performance that no additional monitoring is needed to assure that the geologic storage facility will not endanger USDWs. The operator must demonstrate, based on the current understanding of the site, including monitoring data and/or modeling, all of the following:

       1. (A) the estimated magnitude and extent of the facility footprint (the CO₂ plume and the area of elevated pressure);
       2. (B) that there is no leakage of either CO₂ or displaced formation fluids that will endanger USDWs;
       3. (C) that the injected or displaced fluids are not expected to migrate in the future in a manner that encounters a potential leakage pathway into USDWs;
       4. (D) that the injection wells at the site completed into or through the injection zone or confining zone will be plugged and abandoned in accordance with these requirements; and
       5. (E) any remaining facility monitoring wells will be properly plugged or are being managed by a person and in a manner approved by the director.
    4. (4) Notice of intent for storage facility closure. The operator must notify the director in writing at least 120 days before storage facility closure. At the time of such notice, if the operator has made any changes to the original plan, the operator also must provide the revised plan. The director may approve a shorter notice period.
    5. (5) Authorization for storage facility closure. No operator may initiate storage facility closure until the director has approved closure of the storage facility in writing. After the director has authorized storage facility closure, the operator must plug all wells in accordance with the approved plan required by §5.203(k) of this title.

    6. (6) Storage facility closure report. Once the director has authorized storage facility closure, the operator must submit a storage facility closure report within 90 days that must thereafter be retained by the Commission in Austin. The report must include the following information:

       1. (A) documentation of appropriate injection and monitoring well plugging. The operator must provide a copy of a survey plat that has been submitted to the Regional Administrator of Region 6 of the United States Environmental Protection Agency. The plat must indicate the location of the injection well relative to permanently surveyed benchmarks including the Latitude/Longitude or X/Y coordinates of the surface location in the NAD 27, NAD 83, or WGS 84 coordinate system, a labeled scale bar, and northerly direction arrow;
       2. (B) documentation of appropriate notification and information to such state and local authorities as have authority over drilling activities to enable such state and local authorities to impose appropriate conditions on subsequent drilling activities that may penetrate the injection and confining zones; and
       3. (C) records reflecting the nature, composition, volume and mass of the CO₂ stream. If mass is determined using volume, the operator must provide calculations.
    7. (7) Certificate of closure. Upon completion of the requirements in paragraphs (3) - (6) of this subsection, the director will issue a certificate of closure. At that time, the operator is released from the requirement in §5.205(c) of this title to maintain financial assurance.

12. (l) Deed notation. The operator of a geologic storage facility must record a notation on the deed to the facility property; on any other document that is normally examined during title search; or on any other document that is acceptable to the county clerk for filing in the official public records of the county that will in perpetuity provide any potential purchaser of the property the following information:

    1. (1) a complete legal description of the affected property;
    2. (2) that land has been used to geologically store CO₂;
    3. (3) that the survey plat has been filed with the Commission;
    4. (4) the address of the office of the United States Environmental Protection Agency, Region 6, to which the operator sent a copy of the survey plat; and
    5. (5) the volume and mass of fluid injected, the injection zone or zones into which it was injected, and the period over which injection occurred. If mass is determined using volume, the operator must provide calculations.
13. (m) Retention of records. The operator must retain for 10 years following storage facility closure records collected during the post-injection storage facility care period. The operator must deliver the records to the director at the conclusion of the retention period, and the records must thereafter be retained at the Austin headquarters of the Commission.
14. (n) Signs. The operator must identify each location at which geologic storage activities take place, including each injection well, by a sign that meets the requirements specified in §3.3(1), (2), and (5) of this title (relating to Identification of Properties, Wells, and Tanks). In addition, each sign must include a telephone number where the operator or a representative of the operator can be reached 24 hours a day, seven days a week in the event of an emergency.

15. (o) Other permit terms and conditions.

    1. (1) Protection of USDWs. In any permit for a geologic storage facility, the director must impose terms and conditions reasonably necessary to protect USDWs. Permits issued under this subchapter continue in effect until revoked, modified, or terminated by the Commission. The operator must comply with each requirement set forth in this subchapter as a condition of the permit unless modified by the terms of the permit.

    2. (2) Other conditions. The following conditions shall also be included in any permit issued under this subchapter.

       1. (A) Duty to comply. The permittee must comply with all conditions of this permit. Any permit noncompliance constitutes a violation of the Safe Drinking Water Act and is grounds for enforcement action; for permit termination, revocation and reissuance, or modification; or for denial of a permit renewal application. However, the permittee need not comply with the provisions of the permit to the extent and for the duration such noncompliance is authorized in an emergency permit under 40 CFR §144.34.
       2. (B) Need to halt or reduce activity not a defense. It shall not be a defense for a permittee in an enforcement action that it would have been necessary to halt or reduce the permitted activity in order to maintain compliance with the conditions of this permit.
       3. (C) Duty to mitigate. The permittee shall take all reasonable steps to minimize or correct any adverse impact on the environment resulting from noncompliance with this permit.
       4. (D) Proper operation and maintenance. The permittee shall at all times properly operate and maintain all facilities and systems of treatment and control (and related appurtenances) which are installed or used by the permittee to achieve compliance with the conditions of this 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 back-up or auxiliary facilities or similar systems only when necessary to achieve compliance with the conditions of the permit.
       5. (E) Property rights not conveyed. The issuance of a permit does not convey property rights of any sort, or any exclusive privilege.
       6. (F) Activities not authorized. The issuance of a 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.
       7. (G) Coordination with exploration. The permittee of a geologic storage well shall coordinate with any operator planning to drill through the AOR to explore for oil and gas or geothermal resources and take all reasonable steps necessary to minimize any adverse impact on the operator's ability to drill for and produce oil and gas or geothermal resources from above or below the geologic storage facility.
       8. (H) Duty to provide information. The operator shall furnish to the Commission, within a time specified by the Commission, any information that 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 operator shall also furnish to the Commission, upon request, copies of records required to be kept under the conditions of the permit.

       9. (I) Inspection and entry. The operator shall allow any member or employee of the Commission, on proper identification, to:

          1. (i) enter upon the premises where a regulated activity is conducted or where records are kept under the conditions of the permit;
          2. (ii) have access to and copy, during reasonable working hours, any records required to be kept under the conditions of the permit;
          3. (iii) inspect any facilities, equipment (including monitoring and control equipment), practices, or operations regulated or required under the permit; and
          4. (iv) sample or monitor any substance or parameter for the purpose of assuring compliance with the permit or as otherwise authorized by the Texas Water Code, §27.071, or the Texas Natural Resources Code, §91.1012.

       10. (J) Schedule of compliance: The permit may, when appropriate, specify a schedule of compliance leading to compliance with all provisions of this subchapter and Chapter 3 of this title.

           1. (i) Any schedule of compliance shall require compliance as soon as possible, and in no case later than three years after the effective date of the permit.
           2. (ii) 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.
           3. (iii) Progress reports must be submitted no later than 30 days following each interim date and the final date of compliance.

Source Note:The provisions of this §5.206 adopted to be effective December 20, 2010, 2010, 35 TexReg 11202; amended to be effective July 2, 2012, 37 TexReg 4899; amended to be effective September 19, 2022, 47 TexReg 5797.