The recent signing of the final rule granting the State of Louisiana primary enforcement authority over Class VI wells signals ‘a pivotal moment’ in the regulation of the carbon capture and sequestration (CCS) industry, according to a leading law firm.
Reacting to the ruling on December 28, Gibson, Dunn & Crutcher, which has more than 1,800 lawyers in 21 offices globally, said it marks a long-sought and important win for Louisiana and signifies a significant shift from federal EPA oversight to the Louisiana Department of Natural Resources (LDNR).
Permitting of such wells and operations, known as Class VI permits, is generally directly regulated by the Environmental Protection Agency (EPA).
“With expectations of a more expedited and efficient permitting process under the LDNR, the decision is poised to catalyse accelerated growth in the CCS industry within the state,” it notes.
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