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REVISION - 9/30/2009, 7:13:29 AM-JWD
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REVISION - 9/30/2009, 7:13:29 AM-JWD
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Last modified
6/15/2021 11:33:51 AM
Creation date
9/30/2009 7:39:39 AM
Metadata
Fields
Template:
DRMS Permit Index
Permit No
P2008043
IBM Index Class Name
REVISION
Doc Date
9/25/2009
Doc Name
Receipt of NOI Mod.
From
DRMS
To
Powertech (USA) Inc.
Type & Sequence
MD3
Email Name
ACS
Media Type
D
Archive
No
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Letter to Richard Blubaugh 4 September 25, 2009 <br />Centennial Project, Receipt of Modification MD-03 File No. P-2008-043 <br />by the proposed pump test. DMRS has further discussed with Powertech that data collected during <br />development of recently drilled wells in section 33 has allowed for refinement of the modeling and <br />calculations. This information will be useful in determination of whether or not pump test water can be <br />injected into the A2 Sand with assurance that impacts to other water bearing strata are sufficiently minimized, <br />and must be provided. <br />15. If and when MD-03 is approved, DRMS must be provided five working days prior notice of <br />commencement of the initial step-rate test so that inspections can be scheduled. <br />16. Once Powertech responds to item no. 5 above, DRMS will have sufficient information to estimate <br />surface reclamation costs for the MD-03 proposal and establish the amount of required bond. Well plugging <br />and abandonment costs have already been bonded by Powertech as required under prospecting notice P- <br />2008-043 and modification MD-01 to that prospecting notice. What remains to be determined for <br />reclamation bond purposes is the amount to be required if DRMS were to forfeit the bond while the pump <br />test water is still stored in tanks. Powertech must provide rental cost information for the tanks, preferably in <br />the form of bid documents or equivalent produced by BakerCorp. If the transfer pump and other injection <br />appurtenances are to be rented, provide cost documentation for these items as well. In order for DRMS to <br />estimate costs for tanked water disposal, the following issues must first be addressed: <br />a. If the determination on feasibility of injection cannot be made prior to commencement of the proposed <br />pump test, as discussed in item 11 above, DRMS might bond for treatment and surface discharge of the <br />tanked water. This would necessarily include significant tank rental costs for idle time while a water <br />treatment plan is developed, equipment is deployed and permits are obtained. Costs for treatment sludge <br />disposal would also have to be included. <br />c. If Powertech provides an acceptable demonstration that injection at ambient pressure will minimize <br />adverse water quality impacts, as discussed in item 11 above, DRMS can require sufficient bond for this <br />type of injection. For this bonding option, Powertech must provide a technical evaluation of how long it <br />would take to complete injection under ambient pressure. <br />d. If additional Baker Tanks are to be brought onto the site as discussed on page 7 of the Section 33 <br />Pumping Test Plan, then additional bond for tank rental and tank water disposal would have to be posted <br />and accepted by DRMS prior to deployment of the additional tanks. Alternatively, Powertech could bond <br />for more tanks than are anticipated to be necessary as a contingency to avoid project delays related to <br />bond posting and DRMS evaluation. <br />e. In accordance with Rule 4.1.2(7) DRMS will require that the amount of bond required for tanked water <br />disposal be posted in an easily valued and convertible instrument, such as cash for deposit in the State <br />Treasury or a bank certificate of deposit. <br />f. In addition, DRMS will consider any bonding proposals Powertech may have that are not discussed <br />above.
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