Texas Gains Primacy For Class VI Carbon Capture Wells

The U.S. Environmental Protection Agency (EPA) recently finalized a rule granting the State of Texas primary permitting and enforcement authority over Class VI Underground Injection Control (UIC) wells under the federal Safe Drinking Water Act (SDWA). Class VI wells are used to inject compressed carbon dioxide (CO₂) into deep rock formations underground. The rule allows the Texas Railroad Commission, which has primary regulatory jurisdiction over the oil and natural gas industry for the state, to regulate the geologic sequestration of CO₂, a critical component of carbon capture and storage (CCS) projects.

Texas' favorable geology and existing CO₂ pipeline infrastructure have made the state a desirable setting for CCS projects. Previously, developers in Texas were required to comply with EPA's multi-year permitting process to authorize construction of their Class VI wells. Now, the Railroad Commission will oversee permitting and compliance for all six classes of UIC wells, which also include oil- and gas-related injection wells. Although EPA will maintain programmatic review and conduct regular audits to ensure that Texas meets or exceeds federal standards under the SDWA, primacy is expected to reduce Texas' permitting timelines significantly and accelerate CCS project development.

The final rule takes effect on December 15. CCS developers in Texas who intend to apply for a Class VI permit should engage with the Railroad Commission at the earliest opportunity and complete their permit applications promptly to secure favorable positions in the permitting queue. Companies who hold existing Class VI permits issued by the EPA in Texas should also monitor Class VI regulatory developments and adjust their compliance strategies as needed.

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