Texas is Granted Primacy for Class VI Sequestration Wells, Chief State Regulator Suggests CCS is a Scam and Carbon is Not a Threat, Echoing Trump, While DOE Official Encourages Permian Basin CCS and Enhanced Oil Recovery

Texas Becomes Sixth State to Be Granted Primacy for Class VI Injection Wells for CO2 Storage

     The State of Texas was recently granted primacy by the EPA to regulate Class VI underground injection wells for carbon sequestration, becoming the sixth state to do so after North Dakota, Wyoming, Louisiana, West Virginia, and Arizona. There are 64 pending permit applications in the state for CO2 sequestration. Legal group JD Supra notes the importance of Class VI wells and the reason they are highly regulated:

“Class VI requirements are among the most stringent in the UIC program. Carbon dioxide is buoyant, mobile, and corrosive in the presence of water, and projects inject massive volumes intended to remain underground for centuries. Regulations require sophisticated computational modeling to predict CO₂ plume migration, corrosion-resistant materials, continuous monitoring, and a default 50-year post-injection site care period.”

     They also note that once a state is granted primacy, permit review times are typically cut in half. Texas leads the nation in CCS permits, including one by Occidental for the largest direct air capture project in the world, which aims to inject and store 500,000 tons annually. Texas, they note, is quite invested in these CCS projects and will depend on its regulator, the Texas Railroad Commission (RRC), to be a good-faith partner in these efforts.

“Texas has staked enormous economic and political capital on CCS leadership—the RRC’s execution will determine whether that bet pays off.”

 

RRC Leader Suggests CCS is a Scam and Carbon is Not a Threat

     According to an article in the Houston Chronicle:

“Wayne Christian, one of the three elected leaders of the Texas Railroad Commission, questioned why the commission would spend state funds regulating the practice when the Trump administration believes it is "a scam" and that carbon dioxide "is no longer a threat."

"I also find myself very disappointed that we make a decision," he said, referring to the commission's approval of Occidental Petroleum's carbon storage project, "at this time that the administration, the world, seems to be realizing that a lot of this extremist environmental agenda has been over the top."

     Billions have been spent by some of the world’s biggest oil companies for projects in CCS projects in Texas. ExxonMobil has suggested that CCS could become a trillion-dollar industry. Exxon recently paused a hydrogen production and CCS project in the state due to a rollback in funding from the federal government. The Trump administration has left CCS 45Q tax breaks in place but rolled back some 45V hydrogen tax credits. This resulted in a retrieval of $330 million in funding for the project that the Biden administration had already earmarked. It was set to be one of the world’s largest hydrogen projects. The company did not cite the funds pullback as the cause for the pause, but rather a failure to get enough offtake buyers for the hydrogen.

“The Railroad Commission said it has 18 pending applications for carbon storage wells and is aware of others in the works across the state. Applications for "Class VI" carbon storage wells in Texas accounted for roughly a quarter of pending permits nationally, according to an EPA tracker.”

 

DOE Official Encourages Permian Basin CCS Project Development

     Meanwhile, Kyle Haustveit, assistant secretary for the hydrocarbons and geothermal energy office at the U.S. Department of Energy, urged attendees at the annual CO2 Conference to continue their work. He and others see growing potential for using CO2 for enhanced oil recovery (EOR). Chuck McConnell, executive director at the University of Houston Center for Carbon Management in Energy, is excited about the possibility of the growth of CCS-EOR, especially in the West Texas Permian Basin, praising its low carbon credentials:

 “…oil produced from CCUS-EOR is the lowest carbon intensity oil produced in the world. It will be better oil than anywhere else from an environmental standpoint. EOR will advance American security and affordability.”

     EOR will certainly grow in importance, and there will be more projects as the best remaining rock in the Permian is drilled up in the next decade or so.

 

 

 

References:

 

A trillion-dollar climate industry emerging in Houston's backyard meets new resistance. Rachel Nostrant. Houston Chronicle. December 10, 2025. A trillion-dollar climate industry emerging in Houston's backyard meets new resistance

DOE official urges Permian Basin to push carbon capture, enhanced oil recovery. Mella McEwen. Midland Reporter-Telegram. December 9, 2025. DOE official urges Permian Basin to push carbon capture, enhanced oil recovery

Texas takes the reins on Class VI carbon sequestration wells. JD Supra. Legal News. December 10, 2025. Texas takes the reins on Class VI carbon sequestration wells | McGinnis Lochridge - JDSupra