By Chris Colclasure and Chance Harper
Background
The U.S. Environmental Protection Agency (EPA) Region 8 issued a Class VI Underground Injection Control (UIC) permit for Carbon Storage Solutions, LLC to inject carbon dioxide (“CO2”) into the company’s Front Range 1-1 well for permanent storage. The injected CO2 will be sourced exclusively from an ethanol production facility.
Why it Matters
This is the first time EPA has approved a Class VI well permit in Colorado. According to the Energy and Carbon Management Commission (“ECMC”), one other Class VI permit application has been submitted to EPA for action. Future permits may be issued by the ECMC once EPA finalizes its March 19, 2026 proposal to approve Colorado’s application for primacy over Class VI well permits.
Carbon capture and sequestration (“CCS”) is a valuable tool for manufacturing facilities in Colorado, and for midstream natural gas compressor stations beginning in 2027, to meet their targets under the state’s GEMM (Greenhouse Gas Emissions and Energy Management for Manufacturing) regulations. Colorado must finalize a carbon accounting protocol before CCS may be used for compliance. Manufacturing and midstream sources may use their GHG reductions to generate credits in either Colorado’s market or external credit markets.
Developing Colorado’s physical and regulatory infrastructure for CCS will present growth opportunities for upstream, midstream, and industrial operators.
The Permit
The permit allows CO2 produced at the Front Range Energy ethanol facility to be injected into the Front Range 1-1 well in Weld County. The injection would reach a depth of nearly 9,000 feet into the Lyons Formation. The company may inject up to 140,000 metric tons of CO2 per year into the Front Range 1-1 well, up to a maximum cumulative mass of 1.54 million metric tons.
How to Apply
Currently, EPA retains authority to issue UIC permits. Those wishing to participate in the UIC Class VI program would need to plan for reviews of (1) the injection area/zone, (2) nearby underground water sources, (3) their own financial responsibility, (4) various protective federal statutes, and (5) the injection plan/process. Put simply, this includes submitting geologic, hydrogeologic, and hydrologic information to the EPA. 40 CFR 146.82. In addition to various maps, seismic data, and other materials, an applicant must demonstrate that the confining zone can adequately contain CO2 and ensure that drinking water in the area is not contaminated. 40 CFR 144.3, 146.3, 146.83(a)(2).
If EPA grants ECMC primacy, applicants should expect to submit a series of Colorado-specific forms, including the Form 50-Intent, Application for Class VI Permit to Drill and the Form 50A, Class VI Location Permit Application, among others. Additionally, compliance with the submitted 1400 Series rules is paramount for success. Two rules to pay close attention may be (1) Rule 1406’s public participation requirements and (2) Rule 1407’s required information to be included in the application.
Despite the hurdles, successful permit applicants will find themselves the first members of an extremely limited club in Colorado capable of reaping various internal financial savings such as transportation costs, tax benefits, and GHG emission reductions or credits.
For more information or to learn about the UIC Class VI application process and GHG regulations, contact Chris Colclasure or Ryan McKee.