66 TEXAS JOURNAL OF OIL , GAS , AND ENERGY LAW [ Vol . 16:1
tain more stringent requirements than Class II wells for the permitting , siting , construction , operation , monitoring , plugging , post-injection site care , and site closure of injection wells used for permanent sequestration . 109 Class VI wells also require increased financial assurances to cover corrective action , well plugging , post-injection site care , and emergency responses , remedial responses , or both . 110
Section 1422 of the SDWA authorizes the EPA to delegate primacy of Class VI wells to state governments , subject to certain statutory requirements . 111 A state seeking to establish primacy over Class VI wells must develop a Class VI regulatory program that is at least as stringent as the federal requirements and that is confirmed by EPA via an application process . 112 As of September 2020 , North Dakota and Wyoming are the only states that have received primacy for Class VI wells . 113 Louisiana has also initiated discussions with the EPA and plans to pursue Class VI primacy . 114 In the absence of state primacy , approval for a Class VI well permit must be obtained directly from the EPA . As of January 2020 , there have only been two Class VI permits issued in the United States , both of which were for projects located in Illinois . 115
Please note this paper provides a general synopsis of the primary land-side legal considerations and an overview of permitting schemes required for CCUS operations . This analysis is further limited to the context of privately-owned lands and does not include consideration of issues that are specific to ownership rights on publicly-owned state or federal lands . Further , there are a number of intricacies regarding environmental and regulatory considerations that apply to these projects , a discussion of which is beyond the scope of this paper . Nonetheless , it is important that project participants appreciate the role that permitting and acquiring the necessary land rights plays in these projects . Both of the issues can have a substantial impact on project timing and ability of project participants to finance the applicable CCUS project . Further , these issues are especially important to consider when entering into commercial or financing arrangements with project stakeholders .
that permanent storage is authorized by a Class II well permit without the need to apply for a Class VI permit , so long as the UIC program director determines that there is not an increased risk to USDWs .). 109 . Id . 110 . Id . 111 . Primacy Manual , supra note 102 , at 5 . 112 . Id . at 1 . 113 . Jessica Casey , EPA Announces Wyoming ’ s primacy for Class VI Underground Injection Control Programme , WORLD COAL ( Sept . 4 , 2020 , 12:30 PM ), https :// www . worldcoal . com / coal / 04092020 / epa-announces-wyomings-primacy-for-class-viunderground-injection-control-programme /.
114 . Wyoming Underground Injection Control Program ; Class VI Primacy , 85 Fed . Reg . 20,621 ( Apr . 14 , 2020 ) ( to be codified at 40 C . F . R . pt . 147 ); JONES , supra note 99 , at 10 .
115 . JONES , supra note 99 , at 11 .