Texas Railroad Commission Moves Closer To Establishing Regulatory Framework For CO2 Sequestration

The Texas Railroad Commission (RRC) adopted new rules governing carbon capture and sequestration and storage at its August 22, 2023, Open Meeting. The rules go into effect on September 11, 2023, and are intended to align with the requirements of Environmental Protection Agency's (EPA) Class VI Underground Injection Control (UIC) program. Importantly, these rules go into effect while the State of Texas's application to the EPA for primary authority over approval of Class VI wells is pending.

Class VI wells were established by EPA in 2010 for the purpose of injecting CO2 into deep subsurface geological formations. EPA promulgated the minimum technical requirements for obtaining Class VI permits and Texas has worked to develop its own statutory and regulatory framework consistent with EPA requirements. The key issues Texas addresses through this rulemaking are site characterization, area of review and corrective action, financial responsibility, well construction,