Kan. Admin. Regs. § 28-45a-9 - Financial assurance for underground natural gas storage facility closure
(a) Each permittee
of an underground natural gas storage facility shall establish financial
assurance for the following:
(1) Closure of
the facility; and
(2) the plugging
of any underground natural gas storage well.
(b) Each permittee of an existing underground
natural gas storage well and each applicant for a permit for a new underground
natural gas storage well shall submit proof of financial assurance with the
permit application and, thereafter, annually on or before January 31 of each
year. The following requirements shall apply:
(1) Each permittee and each applicant shall
submit a detailed written estimate, in current dollars, of the cost to close
all underground natural gas storage wells and storage caverns at the facility
with closure procedures specified in K.A.R. 28-45a-18. The estimate shall be
reviewed and approved by a professional engineer or licensed geologist.
(2) Each permittee and each
applicant shall develop an estimate of the closure cost for all underground
natural gas storage wells and storage caverns at the facility based on the cost
charged by a third party to plug the underground natural gas storage wells.
(3) Each permittee shall increase
the closure cost estimate and the amount of financial assurance provided if any
change in the facility operation or closure plan increases the maximum cost of
closure at any time.
(c) Each permittee shall provide continuous
financial assurance coverage for closure until the secretary approves the
facility closure.
(d) Each
permittee and each applicant shall comply with the provisions of the
department's document titled "procedure for demonstrating financial assurance
for an underground natural gas storage well, procedure #: UICLPG-7," dated
March 2003, which is hereby adopted by reference.
Notes
State regulations are updated quarterly; we currently have two versions available. Below is a comparison between our most recent version and the prior quarterly release. More comparison features will be added as we have more versions to compare.
No prior version found.