Class VI Injection Well Permits 101

By Jessica Gregg

Introduction 

In the carbon capture and storage (CCS) industry, Class VI permits stand out as a pivotal requirement. These permits, issued by the Environmental Protection Agency (EPA), are indispensable for operators seeking to store CO2 safely underground and to ensure that injection operations are protective of sources of drinking water. However, for those unfamiliar with the intricacies of the industry, deciphering the requirements of these lengthy 800-page documents can be daunting. In this article, we aim to demystify the Class VI permit process.  

This article does not cover states with primacy (such as North Dakota, Wyoming, and Louisiana), which have distinct requirements in addition to those listed below. 

The EPA has structured the Class VI permit process into two steps: 

1. Authorization to Construct (Regional Data): 

   Operators initiate the process by submitting an initial permit using regional data, which grants authorization for the drilling of a Class VI well.  

   *For projects lacking regional data, some operators drill a stratigraphic test well through state regulatory frameworks prior to obtaining the Authorization to Construct. The stratigraphic test well may be converted to a Class VI well after obtaining the Authorization to Construct. 

2. Authorization to Inject (Site-Specific Data): 

   Following the analysis of regional data and acquisition of stratigraphic test well or Class VI well data, operators proceed to submit site-specific data for EPA approval. This approval allows for the injection of CO2 into the subsurface.  

Additional Permits and Considerations:  

While Class VI permits are pivotal, they only provide authorization to inject into the subsurface. Operators must navigate a multitude of additional permits at the federal, state, and local levels. 

Class VI Submittal 

Understanding the various sections and requirements of the Class VI permit is essential for operators seeking to navigate this complex rule.  

• Project Narrative: The narrative section of the Class VI permit provides a written summary of the project, outlining its objectives and scope, includes a thorough site characterization investigation, and discusses the environmental justice impact of the project.  

Site characterization is imperative for evaluating the geological, hydrogeological, geochemical, and geomechanical properties of the proposed site. This section includes detailed assessments, maps, and modeling to characterize subsurface formations and identify Underground Sources of Drinking Water (USDWs).   

Regarding environmental justice, Executive Order 12898 directs federal agencies to identify and address disproportionate and adverse human health or environmental impacts on people of color and low-income populations. Executive Order 14096 recently supplemented this direction and included, among other things, consideration of effects and hazards related to climate change and cumulative impacts of environmental and other burdens on communities with environmental justice concerns. 

• Area of Review and Corrective Action Plan: Operators must delineate the Area of Review (AoR) surrounding the injection well using computational modeling. Additionally, evaluating the integrity of nearby wells connected to the injection formation is required, and operators must provide a plan to mitigate any potential risk. 

• Testing and Monitoring Plan: A comprehensive testing and monitoring plan is essential for identifying and mitigating risks to USDWs. Some monitoring technologies are required by the Class VI rule, others are required based on project specific risks. Examples of monitoring technologies include mechanical integrity testing, operational testing and monitoring such as in site pressure and temperature gauges downhole, groundwater and geochemical monitoring, plume and pressure-front tracking such as 4D seismic, surface air, atmospheric, and soil gas monitoring, induced seismicity monitoring, and vegetation monitoring. Establishing baseline conditions of geochemical, geophysical, and hydrogeologic data is critical for comparing subsequent monitoring data collected over the life of the injection project. 

• Injection Well Plugging Plan: Post-injection well plugging plans are mandated to prevent endangerment of USDWs once injection ceases. These plans outline procedures for safely sealing injection and monitoring wells to mitigate any lingering environmental risks. 

• Pre-Operational Testing Plan: The pre-operational testing plan describes the testing that the applicant has performed or plans to perform to characterize the well and all relevant geologic formations prior to injection. At a minimum, the plan must include logs, surveys and tests to determine or verify information about relevant geologic formations; tests to verify internal and external mechanical integrity; reports/analysis of injection zone and confining zone cores and formation fluid samples; and characterization of the injection zone(s). 

• Operating and Reporting Conditions: Operators are required to detail the proposed operating conditions and reporting requirements for the project. These include proposed average and maximum daily rate and volume and/or mass and total anticipated volume and/or mass of the CO2 stream, proposed average and maximum injection pressure, a description of the source of CO2, and an analysis of the chemical and physical characteristics of the CO2 stream. 

• PISC and Site Closure Plan: Post-Injection Site Care (PISC) involves monitoring and reporting for 50 years after cessation of injection. This long-term oversight ensures ongoing environmental protection and regulatory compliance. 

• Emergency and Remedial Response Plan: Preparedness for emergency situations and protocols for remedial actions are integral components of the Class VI permit. Swift and effective responses to unforeseen incidents are essential for minimizing potential environmental impacts. 

• Quality Assurance Surveillance Plan (QASP): A QASP ensures the accuracy and reliability of testing and monitoring activities through EPA-approved methods. Rigorous quality assurance measures are implemented to maintain data integrity and regulatory compliance. 

• Well Construction Details: Detailed specifications for well construction are provided to ensure structural integrity and prevent leakage throughout the injection process. 

• Financial Assurance Demonstration: Operators must demonstrate financial capacity to cover the costs of corrective action for artificial penetrations within the Area of Review, injection well plugging, post-injection site care and site closure, and emergency and remedial response.  Financial assurance requirements vary based on project specifics but are essential for ensuring accountability and environmental protection. Initial projects have been required to hold anywhere from $18 to 43 million USD in financial assurance.  

• Stimulation Program: Stimulation plans, if required, are presented to address any necessary treatments for the geological formation to optimize CO2 storage. 

Conclusion 

Class VI permits play a pivotal role in facilitating CCS projects by authorizing the injection of CO2 into subsurface formations. However, navigating the regulatory landscape surrounding CCS necessitates compliance with a multitude of additional permits at federal, state, and local levels. By comprehensively understanding the intricacies of the Class VI permit process and its accompanying requirements, operators can ensure regulatory compliance and foster the safe and responsible deployment of Carbon Storage Projects.