Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Carbon Sequestration Class Vi topic
No spam. Unsubscribe anytime.
Committee advances bill giving Corporation Commission primacy over Class VI CO2 injection wells, requires monitoring and industry fees
Summary
Senate Bill 269, which would transfer regulation of Class VI wells for CO2 sequestration to the Oklahoma Corporation Commission and include monitoring and post-closure responsibilities, was reported out "do pass" by a 12-0 vote after extended questioning about pooling, fees and safety.
The House Energy Committee voted 12-0 to report Senate Bill 269 "do pass," advancing legislation to transfer management and regulation of Class VI wells for CO2 sequestration to the Oklahoma Corporation Commission (OCC) and to require monitoring and long-term responsibility by operators.
Vice Chair Luttrell recognized a sponsor to explain the bill, which the sponsor described as negotiated language among the Petroleum Alliance, the Farm Bureau, the secretary of energy and the Corporation Commission. The sponsor told the committee the bill seeks to consolidate oversight of Class VI wells under the OCC and includes provisions for monitoring and financial responsibility.
Members pressed the sponsor on technical and property-rights protections. Representative Deck asked about the pooling process and whether it mirrors oil-and-gas pooling; the sponsor said the bill borrows the pooling concept, would apply to large sites "10 11000 acres" and requires 63% of landowners to permit a pooled area. "We're not talking about neighbors right next to each other," the sponsor said, explaining the large-area approach and that the measure seeks to "protect the property owners' rights and giv[e] everybody a chance to be involved in this industry."
Members also asked about oversight of chemicals, pipelines and safety. The sponsor said Class VI injection in Oklahoma dates to the mid-1980s and emphasized the difference from hydraulic fracturing: "This is not fracking." The bill, as described, would make operators responsible for a well for 50 years after it is plugged and shut down and would require seismic and other monitoring. The sponsor also discussed equipment and materials used for injection wells, describing acid-resistant, chrome pipe and asserted there have been no accidents in the injections cited.
On fiscal and fee questions, the sponsor said negotiations with the Corporation Commission are ongoing; sponsors proposed a fee schedule under discussion that would charge $100,000 for a first well permit and $10,000 for each additional well to cover OCC oversight, with the intent that fees fund OCC oversight rather than additional state appropriations.
Supporters said state primacy under one agency is important. The sponsor told members that having a single state regulator rather than multiple agencies would streamline oversight and that Department of Environmental Quality staff were reported to be "pleased and excited" to have regulation consolidated. The sponsor also said federal policy recognizes carbon sequestration as a priority and that projects may take several years to come online.
After discussion the committee recorded a unanimous vote of 12 aye, 0 nay and reported Senate Bill 269 out "do pass."
