Researchers and private companies in the U.S. are seeking ways to limit emissions from burning fossil fuels through carbon storage. The emerging industry traps carbon dioxide, sometimes before it enters the atmosphere, and injects it into deep geological formations underground.
To date, the Environmental Protection Agency (EPA) has approved just 11 applications for the sites, known as Class VI wells. Permitting involves a technical review that can take around 18 months to complete, resulting in a multi-year process.
Senate Bill 269 by Sen. Dave Rader (R-Tulsa) and Rep. Ken Luttrell (R-Ponca City) lays out rules for the state to oversee commercial underground carbon storage.
“What this bill does is moves regulation of Class VI wells to the [Oklahoma] Corporation Commission,” Luttrell said during a House floor session on May 1. “We're going to ask the federal government for primacy to allow Oklahoma to regulate these Class VI wells ourselves.”
No permits based in Oklahoma are currently under review by the EPA, but companies have expressed interest in carbon capture and storage in the state. CapturePoint, an oil and gas company that uses carbon injection for enhanced oil recovery, previously submitted a Class VI application but withdrew it earlier this year. A representative for the company said the government required more information about the site’s geology and potential for seismicity.
Researchers at the University of Oklahoma and other institutions are partnering with CapturePoint to study carbon injection in Osage and Kay Counties using a $18.7 million grant from the U.S. Department of Energy.
Companies like CapturePoint receive a federal tax credit for every ton of carbon stored, ranging from $60 for enhanced oil recovery to $85 for sequestration. In February, Rader said he expects the Trump administration to keep and possibly expand the credit.
“ This industry's coming,” Rader said during a Senate energy meeting. “Let's set our regulations and let’s do it with Oklahoma people.”
If approved for primacy, Oklahoma would join several other states that sought authority over the industry.
Wyoming, North Dakota, Louisiana and West Virginia have already been granted primacy. In September, the EPA and Texas entered a Memorandum of Agreement to allow the state to oversee its Class VI wells after applying in 2022. Texas has at least three applications approved for a site operated by Occidental Petroleum Corporation.
It’s unclear how long the process between Oklahoma and the EPA could take.
“This is probably the most important piece of legislation you'll see this year for future economic development in the state of Oklahoma,” Luttrell said. “These companies are willing to come to Oklahoma and invest millions of dollars in our economy with these Class VI wells.”
The bill also establishes a revolving fund from fees on each ton of carbon stored. The money would be used for fixing infrastructure or plugging the wells after use. It could also fund research or outside legal counsel, according to the bill’s text.
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