Caesstds Final
Caesstds Final
Caesstds Final
March 2018
ISBN 978-1-4868-1971-3 (Print)
ISBN 978-1-4868-1957-7 (HTML)
ISBN 978-1-4868-1958-4 (PDF)
© Queen’s Printer for Ontario, 2018
Provincial Standards for Compressed Air Energy Storage Applications and Operations, Version 1.0 Page i
PREFACE
The operating and application standards presented in these Provincial Standards for
Compressed Air Energy Storage Applications and Operations (Standards) cover works used
in association with compressed air energy storage (CAES) projects regulated under the Oil,
Gas and Salt Resources Act.
CAES applicants and operators are required, by section 2.1 of Ontario Regulation 245/97
under the Oil, Gas and Salt Resources Act (OGSRA), to comply with the content of these
Standards, except where a departure has been approved by the Ministry of Natural
Resources and Forestry (ministry) in accordance with that section of the regulation.
Applicants and operators preparing materials and information to meet the requirements of
these Standards are reminded that it is an offence under the OGSRA to knowingly make a
false statement or provide false information in a document or other form of communication
required under the act or the regulation.
The technical operating standards set out in this document are the minimum requirements for
the design, installation, operation, abandonment, decommissioning and safety of works.
These technical standards are not intended for use as a design handbook; the exercise of
competent engineering judgment and application of practical experience are necessary in
conjunction with their use.
The requirements of the operating standards are adequate under conditions normally
encountered in activities involving works. Requirements for abnormal or unusual conditions
are not specifically provided for, nor are details of engineering or construction prescribed. It is
intended that all work performed within the scope of these standards, including other standards
that may be referenced, shall meet or exceed the safety standards expressed or implied
herein.
Within this document, terms that are shown in bold font are defined in the Glossary.
Provincial Standards for Compressed Air Energy Storage Applications and Operations, Version 1.0 Page ii
SCOPE
These Standards apply to works used in association with CAES projects, where those
projects utilize solution-mined salt caverns to store compressed air for the purpose of
producing electricity. This includes wells and salt caverns, as well as pipelines or other
structures or equipment that are located between the wellhead and the emergency shutdown
valves, or, if there is no emergency shutdown valve, between the wellhead and the first
isolation valve. It also includes pipelines or other structures or equipment that are used in
association with the drilling, completion, maintenance, servicing, overhauling, working over,
abandonment or decommissioning of a well or salt cavern.
These Standards do not apply to the CAES compression and generator facilities, including
their location, structures and associated piping and facilities. These components may be
subject to other agency requirements and approvals.
The activity of solution-mining for the creation of a salt cavern to be used for CAES is not
subject to these Standards, and shall follow the requirements set out in the Oil, Gas and Salt
Resources of Ontario Provincial Operating Standards (Oil, Gas and Salt Provincial
Operating Standards). However, proponents that are seeking to create one or more solution-
mined salt cavern(s) specifically for the purpose of CAES may concurrently apply for approval
to conduct solution-mining activities and subsequent CAES activities.
Where the requirements of this Standard conflict with the requirements of other standards
referenced herein (i.e., CSA Z341.2 and the Oil, Gas and Salt Provincial Operating
Standards), the standard that provides a higher level of protection to public safety and/or the
environment takes precedence.
Provincial Standards for Compressed Air Energy Storage Applications and Operations, Version 1.0 Page iii
T ABLE OF CONTENTS
Preface ....................................................................................................................................i
Scope ................................................................................................................................... ii
Glossary ................................................................................................................................ 16
Provincial Standards for Compressed Air Energy Storage Applications and Operations, Version 1.0 Page 1
1.1 General
(a) The design of all works used shall be suitable for air.
(b) Operators of CAES works shall comply with all of the following parts of the Oil, Gas and
Salt Provincial Operating Standards:
Part 3: Well Drilling;
Part 4: Blowout Prevention;
Part 5: Works;
Part 8: Well Servicing;
Part 11: Well Plugging;
Part 12: Oil, Gas and Salt Resources Trust; and
Part 13: Reporting.
(c) Any work used in association with a CAES project shall be designed, constructed,
operated, maintained, abandoned and decommissioned in accordance with CSA Z341.2.
(d) Despite (c), where CSA Z341.2 makes reference to hydrocarbon(s) in the context of a
storage facility or a substance that is, will be, or has been injected, stored or withdrawn
from the cavern, CAES applicants and operators shall read and apply the requirement as
though the term ‘hydrocarbon’ has been replaced with ‘air’ unless it would make the
reading of that requirement clearly unreasonable or result in a lower standard of
protection to public safety or the environment.
(e) Paragraph (d), above, also applies to the Annexes of CSA Z341.2, and the definitions of
blowdown, choke, communication, confining formation, migration, salt cavern and
subsurface safety valve.
(b) The boundaries of any salt cavern used for CAES shall be no closer than 50 metres
from the boundary of the property(ies) that the operator owns or has leased for the
purpose of CAES.
1.3 Reporting
In addition to the reporting requirements of Part 13 of the Oil, Gas and Salt Provincial
Operating Standards, the ministry shall be notified:
(a) of planned well overhauls and inspections and the results of such inspections including
copies of all the sonar surveys, logs, test data and the interpretations of this data;
(b) of suspected damage to a brine stringer;
(c) of fluid leaks at the well head or casings; and
(d) immediately when any emergencies occur, including spills, loss of well control, fire,
explosion or other accident.
A well licence application is required to establish a new well for the purpose of CAES or to
convert an existing well to be used for the purpose of CAES. The application shall address all
activities to be undertaken in or on the well in accordance with section 10 of the OGSRA.
An injection permit application is required to use one or more wells for the injection of any
substance, including air, into an area in association with a CAES project, in accordance with
section 11 of the OGSRA.
2.1, below, applies to both well licence applications and injection permit applications.
Well licence applications and injection permit applications may be submitted and consulted on
concurrently.
2.1.2 Format
(a) All application documentation shall be submitted digitally in readable PDF format, with
the exception of maps, figures or other diagrams which shall be submitted in readable
PDF or JPEG format. Applicants may, at their discretion, provide an identical paper
copy of the application in addition to the digital version.
(b) All numerical data shall be submitted in the International System of Units (SI).
(c) All geographic coordinates (north latitude and west longitude) shall be based on the
North American Datum 83 (NAD 83).
Provincial Standards for Compressed Air Energy Storage Applications and Operations, Version 1.0 Page 5
(a) Applicant full name, permanent address, mailing address, phone number, and email
address;
(b) Primary contact information, including:
1. Full name,
2. position or title, and
3. contact information, including mailing address, phone number and email address;
and
(c) If the applicant is a corporation, a current certified corporation profile report.
Note: The regulation refers to a ‘person’ applying for a licence or injection permit. Therefore
the application must be in the name of an individual or a corporation.
(b) The application fee shall be in the form of a money order, cash, cheque or preauthorized
debit from an account or credit card, or credit or debit card payable to the Minister of
Finance.
(b) The location description, including local and upper tier municipalities, lot, concession,
geographic township, and civic address;
(c) A description of the proposed project works and activities that are the subject of the
CAES application under the OGSRA;
(d) A description of other components of the project that are not subject to the OGSRA,
identifying other federal, provincial and municipal approvals that will be required for
these components;
(e) A list of all documents and information that are being submitted in support of the
application, including: the title of the document, its general subject matter, the version
number and date, the author’s name, and the author’s qualifications; and
(f) One or more maps showing:
1. The general location of the lands on which any works subject to the application are
located,
2. The location of all existing and proposed well(s), cavern(s) and other works that will
be used for the project,
4. existing subsurface uses, including existing wells or abandoned wells and currently
or previously active subsurface operations within a 1 kilometre radius of the
subsurface perimeter of the storage cavern(s), as well as any other subsurface
activity required to be addressed in 2.3.1 or 2.3.5, below,
5. a North arrow, and
6. a scale.
Provincial Standards for Compressed Air Energy Storage Applications and Operations, Version 1.0 Page 7
6. ensure all necessary measures are taken to ensure public safety and environmental
protection;
(b) Applications shall demonstrate that:
1. the compressed air energy storage project and associated works will be designed,
constructed, operated, maintained , abandoned and decommissioned in accordance
with Part 1 of this Standard,
2. the compressed air energy storage project and associated works have been
designed for the site specific location and the geological conditions,
3. all works have been designed with consideration of the expected compressed air
conditions, and
4. the mechanical integrity of the proposed well, the wellbore and the salt solution-
mined cavern system has been confirmed, or will be confirmed prior to operation;
(c) All documents submitted to address the requirements of 2.1.8 (a) and (b), 2.2.3, 2.2.4,
2.2.5, and all parts of 2.3 of this Standard shall:
1. identify the current version number and the date the version was prepared,
(d) All departures from Part 1 of this Standard that are being proposed for approval shall
also be summarized in one document and submitted with the application. For each
proposed departure, the summary shall include:
1. the rationale for the proposed departure, and
2. the name and affiliation of the qualified person who has certified the proposed
departure in accordance with clause 2.1(5)(c) of Ontario Regulation 245/97.
Note: Section 2.1 of Ontario Regulation 245/97 does not permit departures from the
application requirements contained in Part 2 of this Standard.
(a) the age and history of the well(s), including its original construction, use, service and
maintenance;
(b) the condition of the well(s), with confirmation that the condition and construction of any
well(s) to be used in the project meets, or will meet prior to operation, the requirements
of the CSA Z341.2 standard;
(c) confirmation of, or plans to demonstrate prior to operation, the structural stability of any
cavern(s) to be used in the project;
(d) confirmation of, or plans to demonstrate prior to operation, the mechanical integrity of
the cavern storage system in accordance with the requirements of CSA Z341.2;
(e) pressure tests, casing evaluation logs and cement evaluation logs that were undertaken,
or will be undertaken prior to operation, to demonstrate the mechanical integrity of the
well(s) in accordance with in CSA Z341.2; and
(f) an evaluation of whether the well(s) meets, or will meet prior to operation, the
requirements of Part 1 of these Standards.
(a) for all wells located within 1 kilometre of any well or cavern proposed to be used in
association with the project, where such information is available:
1. the location, identity, status, depth, and formation at total depth,
2. the oil, gas, water and loss of circulation zones encountered, and
3. for wells that penetrate bedrock, the casing, cementing and plugging details of the
wells; and
(b) the location and status of potable water wells within 1 kilometre of any well or cavern
proposed to be used in association with the project;
(c) a description of all uses of the subsurface that are required to be addressed in 2.3.5,
below;
Provincial Standards for Compressed Air Energy Storage Applications and Operations, Version 1.0 Page 10
(d) the volume, the flow rates, and the injection and withdrawal pressure for the proposed
injection activities to be carried out in association with the project;
(e) the properties and composition of any substance to be injected or stored, including air;
(f) the source, chemical composition and specific gravity of any brine;
(g) the drilling and completion record, including any stimulation and workover of the well(s);
(h) a complete description of the installation and cementing of the surface, intermediate
and production casings of the well(s);
(i) a complete report on the installation of the injection tubing in the well(s);
(j) records of the tests of the integrity of the various well casings;
(k) the well history, if converting an existing well;
(l) a detailed record and cross-sectional diagram of the method of well completion (well-
bore diagram);
(m) a description of the proposed fluid handling procedures; and
(n) a site plan of the wellhead and associated facilities.
(a) identify and evaluate the potential impact that the proposed storage facility may have on
any identified neighbouring subsurface activities; and
(b) address any planned mitigation, monitoring, record-keeping and reporting proposed to
be undertaken in relation to subsurface impacts.
(a) the identification and description of existing surface users and uses that may be
impacted by the proposed development, construction, operation, abandonment and
decommissioning of the well(s), cavern(s) and any other works used in association with
the project;
(b) the identification and evaluation of the nature and extent of any potential impacts;
(c) plans to mitigate identified impacts; and
(d) details regarding any planned monitoring, record-keeping and reporting requirements
related to the management of impacts to surface users and uses.
(a) the identification of any required training programs and/or required expertise for
personnel conducting any activity addressed in the plan(s); and
(b) details regarding any proposed monitoring activities, record-keeping requirements and
requirements to report to the ministry or other party related to the activities addressed in
the plan(s).
2.4 Notification and Comments: All Well Licence and Permit Applications
The requirements of this part apply to all applications for well licences (new wells or
conversions of existing wells) and all applications for injection permits associated with
compressed air energy storage projects.
The requirements of this part may be conducted concurrently for multiple applications related
to the same project.
(b) The ministry may also direct that the applicant provide a digital copy of the application
documents submitted under all parts of 2.1, 2.2, and 2.3, above, to any municipality or
party identified in (a), above, at the same time as the notice of application required by
2.4.2, below, rather than on request.
2.4.2 Notification
The applicant shall notify the following persons and parties of the application:
(a) All landowners within 750 metres of any well used by the CAES project;
Provincial Standards for Compressed Air Energy Storage Applications and Operations, Version 1.0 Page 13
(b) Indigenous communities and organizations, as directed by the ministry under 2.4.1,
above;
(c) Any local or upper tier municipality, where the boundary of the municipality is located
within 750 metres of any well used by the project;
(d) All holders of a well licence issued under the OGSRA, if the licence is issued in relation
to solution mining, hydrocarbon storage, or CAES, within 1kilometre of any well
proposed to be used in association with the CAES project;
(e) All operators of a natural gas storage area designated under the Ontario Energy Board
Act, 1998, if the boundary of the designated gas storage area is within 1.6 kilometre of a
well proposed to be used in association with the CAES project;
(f) All utility corporations holding an easement for railways, high voltage transmission power
lines, transmission or distribution pipelines, or other occupied utility right of ways within
750 metres of any well proposed to be used by the CAES project; and
(g) Other agencies and ministries, as directed by the ministry under 2.4.1, above.
(a) not commence until such time as the applicant has met all of the requirements of all
parts of 2.1, 2.2, and 2.3, above;
(b) be provided on a form, if any, approved by the ministry;
(c) advise the recipient that comments may be provided to the applicant, with a copy to the
ministry, on the application within 60 calendar days from the date the notice was
provided;
(d) provide contact information for the applicant, including name, title, mailing address and
email address;
(e) provide the name, title, mailing address and email address for copies of comments to be
sent to the ministry, as supplied by the ministry;
(f) include the project description required in 2.1.7, above; and
(g) if the application documents submitted under all parts of 2.1, 2.2, and 2.3, above, are not
being provided with the notice, advise the recipient that digital copies of that information
may be obtained by:
Provincial Standards for Compressed Air Energy Storage Applications and Operations, Version 1.0 Page 14
Any notice provided under 2.4.2, above, shall be deemed to have been provided:
(a) If the notice was sent by mail, 5 business days after the notice was mailed;
(b) If the notice was sent by email or fax, or delivered in person, on the day the notice was
delivered.
(b) Any comments submitted under (a) are deemed to have been submitted on the day the
comments are mailed, or if submitted by email, on the day the email was delivered.
3. A summary of any comments received from other persons or parties that were not
notified of the application,
4. Any changes made to the application in response to the comments or how the
original application addresses the comments, and
5. The identification of any concerns raised within the comments that have not been
addressed, including an explanation of why they have not been addressed.
Note: Copies of the summaries of comments provided by the applicant may be requested from
the ministry. These summaries will be shared by the ministry, on request, subject to the
provisions of the Freedom of Information and Protection of Privacy Act.
Provincial Standards for Compressed Air Energy Storage Applications and Operations, Version 1.0 Page 16
GLOSSARY
Abandoned well - a well whose use has been permanently discontinued and has been
plugged.
Brine - saline water naturally occurring in porous sedimentary rock formations, or fluid
resulting from the dissolution of salt formations with fresh water for the purpose of salt
solution mining.
Casing - metallic or non-metallic pipe placed in the bore hole for the purpose of supporting the
sides of the bore and to act as a barrier preventing subsurface migration of fluids out of or into
the bore hole (e.g. protection of fresh water zones).
CSA Z341.2 means Canadian Standards Association (CSA) Standard Z341.2-14: Storage of
Hydrocarbons in Underground Formations – Salt Cavern Storage.
Cementing - the operation whereby a cement slurry is pumped and circulated down a well
through the centre of the casing and then upwards into the annular space behind the casing
in order to firmly fix the casing in the hole and to buttress the casing string from formation,
production or injection pressures and to protect the casing from corrosion due to exposure to
formation fluids.
Fluid - any material or substance which flows or moves and which is in a semisolid, liquid,
sludge, or gas state.
Fracture Gradient - the pressure gradient, that if applied to subsurface formations, will cause
the formations to physically fracture.
Oil, Gas and Salt Provincial Operating Standards - means the standards set out in the
document entitled “Oil, Gas and Salt Resources of Ontario Provincial Operating Standards”,
published by the ministry and available on a website of the Government of Ontario, as that
document is amended from time to time;
Salt Cavern - a cavern constructed within a soluble rock formation, commonly rock salt, by
circulating fresh water in a controlled manner.
Provincial Standards for Compressed Air Energy Storage Applications and Operations, Version 1.0 Page 17
Solution Mining - means the extraction of salt from a geological formation by the injection of
water and the recovery of the salt in solution through a well.
Standards – means the Provincial Standards for Compressed Air Energy Storage Applications
and Operations, Version 1.0.
Work (or works) - as defined in section 1 of the OGSRA, means a well or any pipeline or
other structure or equipment that is used in association with a well. In accordance with
subsections 1(4) and 1(5) of Ontario Regulation 245/97, for CAES projects, works are limited
to the underground storage area and well, up to and including the emergency shut down
valves or first isolation valve, as well as all pipelines, equipment or surface structures used in
association with the drilling, completion, maintenance, servicing, overhauling, working over,
abandonment or decommissioning of a well or salt cavern.
ISBN978-1-4868-1971-3 (Print)
ISBN978-1-4868-1957-7 (HTML)
ISBN978-1-4868-1958-4 (PDF)