66-1274. Same; injection of compressed air into storage wells; permits; requirements; rules and regulations.

66-1274

Chapter 66.--PUBLIC UTILITIES
Article 12.--MISCELLANEOUS PROVISIONS

      66-1274.   Same; injection of compressed air intostorage wells; permits; requirements; rules and regulations.(a) Within 18 months after the effective date of this act,the commission shall establish rules and regulationsestablishing requirements, procedures and standards for the safe and secureinjection of compressedair into storage wells, which shall include maintenance of underground storageof compressed air.Such rules and regulations shall include, but not be limited to:

      (1)   Site selection criteria;

      (2)   design and development criteria;

      (3)   operation criteria;

      (4)   casing requirements;

      (5)   monitoring and measurement requirements;

      (6)   safety requirements, including public notification;

      (7)   closure and abandonment requirements, including the financialrequirements of subsection (d);and

      (8)   long-term monitoring.

      (b)   The commission may adopt rules and regulations establishing fees forpermitting, monitoringand inspecting operators of compressed air energy storage wells and undergroundstorage. Feescollected by the commission under this section shall be remitted by thecommission to the statetreasurer in accordance with the provisions of K.S.A. 75-4215, and amendmentsthereto. Uponreceipt of each such remittance, the state treasurer shall deposit the entireamount in the state treasuryand credit it to the compressed air energy storage fund.

      (c)   The commission or the commission's duly authorized representative mayimpose on any holderof a permit issued pursuant to this section such requirements relating toinspecting, monitoring,investigating, recording and reporting as the commission or representativedeems necessary toadminister the provisions of this section and rules and regulations adoptedhereunder.

      (d)   Any company or operator receiving a permit under the provisions of thecompressed air energy storage act shall demonstrateannually to the commission evidence, satisfactory to the commission, that thepermit holder hasfinancial ability to cover the cost of closure of the permitted facility asrequired by the commission.

      (e)   The commission may enter into contracts for services from consultants andother experts for thepurposes of assisting in the drafting of rules and regulations pursuant to thissection.

      (f)   Rules and regulations adopted under the compressed air energy storage actshall apply to anycompressed air energy storagewell, whether in existence on the effective date of this act or thereafter.

      History:   L. 2009, ch. 141, § 34; May 28.