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Released November 18, 2025 | SUGAR LAND
en
Written by Paul Wiseman for Industrial Info Resources (Sugar Land, Texas)


Summary

With the EPA's approval, Texas becomes the sixth state to receive primacy in reviewing Class VI permits for injection wells. By relieving the EPA of this responsibility, Texas applicants for sequestering CO2 in this manner should see faster decisions.

EPA Shifts Key Role to Texas

The U.S. Environmental Protection Agency (EPA) has granted the state of Texas primacy in the permitting of Class VI injection wells. Texas had requested such approval to speed the permitting process, required under the Safe Drinking Water Act (SDWA).

Now the state can implement Underground Injection Control (UIC) programs covering all well-types (Class I-VI), allowing better coordination and improved efficiencies, said the EPA's press release. By allocating this primacy across approved states, the EPA is spreading the workload and reducing its own backlog of applications.

Texas, whose Class VI processing will be handled by the Texas Railroad Commission (RRC), becomes the sixth state to be granted Class VI primacy, joining North Dakota, Wyoming, West Virginia, Arizona and Louisiana. The RRC handles oil and gas issues in the state, dating back to the time that most produced oil was shipped by rail.

What It Means for Texas Applicants

"This approval by the EPA recognizes RRC's expertise to add Class VI wells to our UIC program, to continue our work of protecting Texans and our natural resources," said Wei Wang, RRC Executive Director in a statement. "Additionally, primacy will streamline the application process and provide the regulatory certainty that is critical to Texas, which is one of the most productive energy regions in the world."

"Approving Texas' request to be in charge of this critical program is a big step forward for cooperative federalism--as big as the state of Texas," added the agency's Regional Administrator Scott Mason.

The RRC says it is more than ready for this designation. It has been proactively developing its Class VI program since 2021, with RRC staff reviewing permit applications alongside EPA's Region 6 office. They expect to hit the ground running to safely and effectively manage the permitting process.

The agency reports having received 18 applications, knows of additional projects in the planning states.

Ed Longanecker, president of the Texas Independent Producers and Royalty Owners Association (TIPRO), said of the approval: "With the recent decision by the EPA to grant Texas Class VI primacy, our state takes an important step in shaping the future of responsible energy production and carbon management. Class VI primacy will streamline permitting, offer greater predictability for developers and accelerate investment in carbon capture and storage, bringing thousands of jobs and significant economic benefits to local communities."

One of the state's most significant projects, Occidental Petroleum Corporation's (Oxy) (Houston, Texas) Stratos project in Ector County, near Odessa, already received Class VI approval from the EPA in April of this year. Oxy says Stratos is the world's largest direct air capture (DAC) facility, and their Class VI permit is the first issued for sequestering CO2 from a DAC project.

DAC, instead of capturing carbon from an emitter such as a coal-fired power plant's exhaust stream, removes it from the ambient air for sequestration underground. Subscribers to Industrial Info's Global Market Intelligence (GMI) Oil & Gas Plant Database can learn more about Stratos from a detailed plant profile.

Having originally filed for the permit in May 2022, Oxy had waited one month short of three years for approval. Texas primacy should give future Class VI permits a shorter turnaround, speeding the completion of such projects in the state.

By the Numbers
  • Six: the new number of states granted primacy for Class VI sequestration well permitting
  • 18: Number of pending permits currently in line for the Texas Railroad Commission, who will handle the state's Class VI processing
  • 30: Number of days after publication in the Federal Register before this will actually take effect

What Is Class VI (and the Other Five)?

Class VI wells are considered important in reducing greenhouse gases in the atmosphere. They are used to inject carbon dioxide (CO2) into deep rock formations. This long-term underground storage is called geologic sequestration (GS).

Using a Class VI well for the geologic sequestration of CO2 is one way to qualify for carbon storage under the 45Q tax credit, which originated in 2008 as part of the Energy Improvement and Extension Act of 2008.

Injection wells of classes I-V are separated by content, as follows, per the EPA:
  • Class I wells are used to inject hazardous and non-hazardous wastes into deep, isolated rock formations.
  • Class II wells are used exclusively to inject fluids associated with oil and natural gas production.
  • Class III wells are used to inject fluids to dissolve and extract minerals.
  • Class IV wells are shallow wells used to inject hazardous or radioactive wastes into or above a geologic formation that contains a USDW.
  • Class V wells are used to inject non-hazardous fluids underground. Most Class V wells are used to dispose of wastes into or above underground sources of drinking water.
The final rule for Texas primacy will become effective 30 days after publication in the Federal Register. Publication is expected to be delayed due to a lapse in government funding.

Key Takeaways
  • Texas's Class VI permitting primacy will speed approval and development of future carbon capture and storage (CCS) projects in the state.
  • Texas is the sixth state to receive such approval, all aimed at relieving the EPA of sole responsibility for a growing issue.
  • Class VI wells are one way to qualify for carbon storage under the 45Q tax credit.

About Industrial Info Resources
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) platform helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 trillion (USD).
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