Oregon agencies outline plan to test geologic carbon sequestration on state lands; $10 million funding request proposed

Chair Lively opened the House Climate, Energy and Environment Committee’s informational hearing on Jan. 28, when state geologists and land managers described a proposal to study geologic carbon sequestration on state lands in eastern and northern Oregon.

The presentation, led by Rory Day Stewart, director of the Oregon Department of Geology and Mineral Industries (DOGAMI) and the Oregon State Geologist, and Vicki Walker, director of the Oregon Department of State Lands, laid out technical, regulatory and financing steps the agencies say are needed to determine whether Columbia River Basalt beneath parts of the state could be used to store carbon dioxide safely and permanently. "I am the director of DOGAMI and the Oregon State Geologist," Day Stewart told committee members. Walker described a policy option package in the governor’s budget to fund a project study with state land funds and said the state land board could authorize up to $10,000,000 from the Common School Fund Land Revolving Account to support initial work.

Why it matters: presenters said the Columbia River Basalt formation contains porous zones at depth that, according to Pacific Northwest National Laboratory estimates cited by DOGAMI, could potentially store more than 40 gigatons of CO2 in the subsurface. DOGAMI emphasized two storage mechanisms: injecting CO2 into pore space as a supercritical fluid and mineralization, in which CO2 reacts with basalt to form stable carbonate minerals that the presenters said can remain fixed for geological time scales.

Technical and near-term steps: DOGAMI and State Lands asked the committee to fund a stratigraphic test well to gather subsurface data. Walker said Oregon owns both surface and subsurface rights on 16 parcels identified as early opportunity areas, and that data from a research well could also support other state agencies such as the Oregon Water Resources Department and the Department of Environmental Quality (DEQ). DOGAMI told the committee it plans to coordinate community engagement and tribal consultation as part of the effort.

Regulatory outline and limits: presenters said at present the U.S. Environmental Protection Agency (EPA) controls permitting for Underground Injection Control (UIC) Class 6 wells, the federal category specific to geologic carbon sequestration, while the state has delegated authority for other well classes (Class 2 and Class 5) with DEQ involvement. DOGAMI said an initial stratigraphic test well would be a data well with no CO2 injection; commercial-scale injection would likely require EPA Class 6 permitting or federal approval for state primacy.

Financing and markets: Walker said the governor and state land board were proposing a policy option package (described in the hearing as package 217) and the use of the Common School Fund Land Revolving Account to support the initial project, and that private investment and carbon markets would likely be needed to build a commercial hub if the technical work is favorable. DOGAMI described potential CO2 sources as either point-source capture or direct air capture.

Questions and concerns raised: committee members pressed on groundwater protection, induced seismicity, monitoring and long-term containment, liability for subsurface rights that cross surface parcels, and timelines. Day Stewart said technical monitoring and strict regulatory safeguards would be required and that depth was a principal control: DOGAMI’s maps use a >2,600-foot depth threshold to identify areas where basalt sits deep enough for storage. Committee members asked for more data on ecosystem effects, pressure and displacement in the subsurface, possible impacts on aquifer recharge and how offset credits would be valued (voluntary vs. regulatory markets). DOGAMI and State Lands said many of those questions will be answered by data from the proposed test well and follow-up technical studies.

Timing and next steps: presenters estimated the earliest a stratigraphic test well could be drilled would be about 18 months after funding and contracting. The agencies asked the committee for funding authorization and said they would pursue community engagement, tribal consultation and coordination with DEQ and EPA as they move from study toward any commercial pathway.

The committee held the item as an informational hearing; no formal votes or motions were taken during the session.