R 324.504
R 324.504 Well sites and surface facilities.
Cite as Mich. Admin. Code R 324.504
Rule 504. (1) A person shall use every reasonable precaution to stop and prevent waste.
All wells, surface facilities, gathering lines, and flow lines shall be constructed and
operated so that the materials contained in the facilities do not cause waste. An oil and gas
operation shall not be commenced or continued at a location where it is likely that a
substance may escape in a quantity sufficient to pollute the air, soil, surface waters, or
groundwaters or to cause unnecessary endangerment of public health, safety, or welfare
until the permittee has complied with the methods and means to prevent pollution or
eliminate the unnecessary endangerment of public health, safety, or welfare as specified by
the supervisor.
(2) The surface facilities shall be located not less than 300 feet from all of the following:
(a) Existing recorded freshwater wells and reasonably identifiable freshwater wells
utilized for human consumption.
(b) Existing structures used for public or private occupancy.
(c) Existing areas maintained for public recreation.
(d) The edge of the traveled portion of an existing interstate, United States, or state
highway. Pump jacks are exempt from this requirement.
(3) Surface facilities may be located closer than 300 feet from existing recorded
freshwater wells and reasonably identifiable freshwater wells utilized for human
consumption and existing structures used for public or private occupancy under either of
the following conditions:
(a) Upon presentation to the supervisor of a written consent signed by the owner or owners
of all existing recorded freshwater wells and reasonably identifiable freshwater wells
utilized for human consumption and existing structures used for public or private
occupancy.
(b) After a hearing under part 12 of these rules, the supervisor determines that the surface
facility location will prevent waste, protect environmental values, and not compromise
public safety.
(4) A permittee of a well shall not begin the installation of a surface facility or flow line
without approval of the supervisor or authorized representative of the supervisor. A
permittee shall make a written request for approval to construct and operate or to
substantially reconstruct and operate a surface facility or flow line and shall file the request
with the supervisor. The request may be filed with the application for a permit to drill and
operate a well. The request shall have a detailed description and plan of the proposed
facility, which shall include all of the following information:
(a) An environmental impact assessment if the surface facility is located more than 300
feet from the well or wells it serves.
(b) The location of the proposed surface facility or flow line.
(c) Identification of the well or wells to be connected to the surface facility or flow line.
(d) Reasonable and necessary measures to protect environmental values associated with
existing adjacent land uses, including berming, screening, and access road location.
(e) Information relative to the approximate distances and directions from the surface
facility or flow line to special hazards or conditions identified in R 324.201(2)(b)(iv).
(5) Upon receipt of a written request for approval to construct and operate or to
substantially reconstruct and operate a surface facility or flow line under subrule (4) of this
rule, other than a request to construct and operate a surface facility or flow line made as
part of an application for permit to drill and operate a well, the supervisor or authorized
representative of the supervisor shall have up to 30 days to review the request to determine
if the request is accurate and complete. If the request is determined to be inaccurate or
incomplete, the supervisor or authorized representative of the supervisor shall provide,
within the 30-day period, to the person making the request, a notice that the request is
inaccurate or incomplete and what changes or additional information shall be submitted.
Upon receipt of the requested information, the supervisor or authorized representative of
the supervisor shall have up to an additional 15 days to review the information to determine
if the request is accurate and complete. Upon completion of the review process, the
supervisor or authorized representative of the supervisor shall approve or deny the request
within 10 business days. A request shall be approved if the supervisor determines that
construction and operation of the proposed surface facility or flow line will prevent waste,
protect environmental values, and not compromise public safety. Upon approval by the
supervisor or authorized representative of the supervisor, a request made under this rule
shall become part of, and subject to, the provisions of the permit to drill and operate the
well or wells served by the surface facility.
(6) A person or permittee of a well shall not install a gathering line, carrying gas with
more than 300 ppm hydrogen sulfide or a flow line or facility piping carrying gas from a
class I H2S well and that is subject to a maximum working pressure of more than 125 psig
that does not meet the construction requirements in R 324.1130.
(7) Surface facilities constructed after November 15, 1989, shall have secondary
containment under R 324.1002.
(8) If discharges to the air, surface waters, or groundwater of the state are likely to occur
at a surface facility, then a permittee shall apply for and obtain all necessary state and
federal discharge permits before operating the surface facility.