The Nickel Report

On January 5, 2024, EPA approved Louisiana’s application to administer the Class VI underground injection control program (UIC). 89 Fed. Reg. 703. Class VI wells are used to inject carbon dioxide into deep geological formations for long-term underground storage. This technology is a promising tool for reducing carbon dioxide emissions to the atmosphere.

EPA’s grant of “primacy” to Louisiana for the Class VI program will allow the state’s Department of Natural Resources to issue UIC permits for Class VI wells, and to ensure compliance with the program. Louisiana submitted its application for Class VI primacy on September 17, 2021. It becomes the third state with primacy over Class VI wells, joining North Dakota (granted primacy in 2018) and Wyoming (2020). Louisiana is the first state to receive primacy over Class VI wells during the Biden administration. Several other states—including Texas, West Virginia, and Arizona, according to the EPA’s website—currently are seeking primacy.

With produced water volumes on the rise as a result of the growth in oil and natural gas production and various areas of the country experiencing water scarcity, states and stakeholders are increasingly looking for ways to reuse, recycle and beneficially use waters originating from the oil and gas industry. Two recent initiatives are likely to significantly advance policy decisions related to produced water management.