Committee approves exemption for some helium exploration wells from aquifer protection permitting after contested testimony

Senate Bill 14-44 drew detailed, technical testimony and a divided committee vote at the Arizona Senate Natural Resources Committee hearing on Feb. 10, 2025. The bill would add helium exploration and production wells that are designed, constructed, operated and maintained to avoid contaminant discharge to the list of activities exempt from the state's Aquifer Protection Permit (APP) requirements.

Sponsor and industry testimony

Sponsor testimony argued helium is a critical, finite resource for defense, aerospace, medical imaging and semiconductor manufacturing. Laura Magnus and Robert Rolfing testified for Desert Mountain Energy, describing site-specific casing and redundancy measures, the company's solar-powered extraction plant and stimulation techniques intended to avoid aquifer impacts. Rolfing described well construction with extra casing run to surface, use of nitrogen to reduce injected-water volumes, and small stimulation radii (he estimated stimulation fluids in the low thousands of gallons, returned and disposed through approved facilities).

Opposition and agency position

Sierra Club Grand Canyon Chapter Director Sandy Barr opposed the bill, saying Arizona's APP program is an important protection for the state's drinking-water aquifers and warning that exemptions created for a single company risk weakening long-term protections. Barry (represented in testimony by counsel/representatives for municipal water users) and the Arizona Municipal Water Users Association raised concerns about weakening assurances of sustainable water supply and the bill's lack of public notice and review.

ADEQ said it is neutral and noted there are already statutory mechanisms under A.R.S. —7-49-241 for ADEQ to determine, case by case, that an APP is not necessary if the applicant can show there will be no migration of pollutants to the aquifer or vadose zone. ADEQ told the committee that two facilities are currently permitted under APP for helium activity and suggested the department and proponents explore whether existing procedures or rulemaking might address the industry's concerns without a statutory exemption.

Key technical and policy points from testimony

- Industry witnesses said some helium production in Arizona would use small stimulation volumes (witness estimate ~3,000'4,000 gallons) and specialized techniques (nitrogen use, quick flowback) designed to avoid leaving fluids in the formation; industry said New Mexico (with established permitting) and federal agencies have not found likely adverse impacts in comparable circumstances.

- ADEQ and municipal water users emphasized APP's role in protecting statutorily identified drinking-water aquifers and noted the statute already provides an avenue for case-by-case determinations that an APP is not necessary where no contaminant migration will occur.

Committee action and vote

Committee members debated whether a statutory exemption was necessary or whether case-by-case ADEQ processes and more specific rulemaking would better preserve protections. The clerk recorded a committee vote of 5 ayes and 2 nays, and the committee gave SB 14-44 a due pass recommendation.

Why it matters

The bill would carve a categorical statutory exemption from the APP program for a particular class of resource-extraction wells if they meet design and operational criteria. Proponents argued this reduces long permitting delays and costs for an emerging domestic helium industry; opponents warned it creates a statutory carve-out that could weaken statewide aquifer protections and reduce the agency's case-by-case oversight and public-review role.

Speakers (selected)

Laura Magnus (Desert Mountain Energy); Robert Rolfing (Desert Mountain Energy, CEO); Sandy Barr (Sierra Club Grand Canyon Chapter); Trent Womberg (Arizona Department of Water Resources; testified later on water-certificate topics); representatives of Arizona Municipal Water Users Association.

Clarifying details

- Desert Mountain Energy reported holding eight of roughly 30 state land leases identified in testimony and said technology and site-specific designs differentiate Arizona activity from other states.

- Industry estimate for stimulation fluid volume: approximately 3,000 to 4,000 gallons per stimulation and an emphasis on returning injected fluid for disposal rather than leaving it in the formation (industry witness testimony).

Ending

The committee's due-pass recommendation advances SB 14-44 for further consideration. ADEQ and municipal water users asked for clearer statutory language or for proponents to use ADEQ's case-by-case pathways or rulemaking so that protections for aquifers and transparent public review are maintained.