AOGCC asks input on Class VI regulations

Kristen Nelson

Petroleum News

The Alaska Oil and Gas Conservation Commission said in an Aug. 20 public notice that it intends to seek Class VI primary enforcement authority from the U.S. Environmental Protection Agency and is asking for ideas from surface and subsurface landowners, industry and other interested or affected stakeholders before drafting regulations for public review.

This is a result of House Bill 50, an administration bill introduced in 2023, passed by the Alaska Legislature this May and signed into law by Gov. Mike Dunleavy on Aug. 1.

HB 50 expanded AOGCC's authority and responsibilities, adding CCUS, carbon capture, utilization and storage, and granting the agency authority to pursue primacy over Class VI wells needed for CCUS from the EPA.

In a May 12 fiscal note accompanying HB 50, AOGCC said fiscal year 2025 activity would be focused mainly on obtaining primacy, with some expenditures possibly offset by potential grant receipts through the EPA Class VI Grant Program, included in the FY 2025 capital budget.

In its public notice, the agency noted it already has primacy over Class II oil and gas related injection wells.

In asking for input, AOGCC said it "is interested in ideas that will provide an efficient, consistent, cost-effective, and reasonable regulatory framework that incorporates both House Bill 50 and EPA Class VI requirements."

The agency has scheduled a public hearing for Nov. 7 at 10 a.m. in its Anchorage offices, and said written comments may be submitted through the conclusion of the hearing. Audio access to the hearing will be by calling 907-202-7104 conference ID 448 099 9#.

--KRISTEN NELSON