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EPA issues draft Class VI permits to Oxy Low Carbon

The three permits are the first Class VI authorizations from the EPA in Texas, and are tied to Oxy's Stratos direct air capture facility.

The U.S. Environmental Protection Agency (EPA) issued draft Class VI permits to Oxy Low Carbon Ventures LLC for three proposed wells for geologic sequestration of carbon dioxide in Ector County, Texas, according to a news release.

These are the first draft permits that EPA has issued in Texas for Class VI wells under the Safe Drinking Water Act Underground Injection Control program, which establishes requirements to protect underground sources of drinking water from contamination.

The permits are tied to Occidental’s Stratos direct air capture project, which aims to suck 500,000 metric tons of CO2 out of the air annually. The permit application was first submitted in 2022.

The proposed project, on former ranch land about 14 miles from the city of Odessa, includes three wells that will store about 722,000 metric tons of carbon dioxide per year at a depth of about 4,400 feet.

As part of its central role delivering on the Biden-Harris Administration’s ambitious climate and environmental justice agenda, EPA is following a rigorous, science-based process in implementing its Safe Drinking Water Act Underground Injection Control program.

In developing the draft permit, EPA required the company to provide specific analysis of the site to ensure that constructing and operating the proposed wells remains protective of the environment, including preventing contamination to underground sources of drinking water and human-caused seismicity. EPA evaluated these technical analyses, with support from experts at the Department of Energy’s National Laboratories, and additional data to verify that the site’s geology, other nearby underground activity, and project scope and operations would ensure that the permitted activity meets Safe Drinking Water Act requirements. EPA also required the company to ensure the plans are appropriate for conditions at and around the site, including construction materials, mechanical integrity, and emergency response planning.

Once permitted, Class VI wells require extensive monitoring for well integrity, ground water quality and CO2 movement. Well operators are also required to plan for emergencies and for how the well will be plugged after its lifespan. EPA also ensured the language in the draft permit is clear and enforceable under Safe Drinking Water Act regulations. While developing the draft permit, EPA met with local elected officials and emergency responders, community members, and property owners to explain the Class VI well program, listen to concerns, and answer questions. The draft permit is now open for public comment until October 7.  EPA will host a public hearing on October 3. More details on the hearing will be available here: https://www.epa.gov/tx/uic-class-vi-permit-intent-issue-oxy-low-carbon-ventures-llc.

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