2015 RESOLUTIONS

15.051 Urging the Congress of the United States to Establish a Process for Delegating Primacy to the States for the Regulation of Oil and Gas Operations on Federal Public Lands

15.052 Acknowledging the Accomplishments of the State Review Committee and Creating States First Initiative Forum

15.091 Clarifying Issues Related to the Transitioning of Class II Carbon Dioxide Enhanced Oil or Gas Recovery Project to a Class VI Geologic Storage Project

 


 

IOGCC Resolutions
Salt Lake City, Utah

 


 

15.051 RESOLUTION

Urging the Congress of the United States to Establish a Process for Delegating Primacy to the States for the Regulation of Oil and Gas Operations on Federal Public Lands

WHEREAS, the member states of the Interstate Oil and Gas Compact Commission have endorsed and support the States First Initiative established by IOGCC in 2013,

WHEREAS, States have historically demonstrated the ability to efficiently and effectively regulate oil and gas operations within their respective borders,

WHEREAS, State regulatory processes have proven successful in ensuring responsible, economic, and environmentally protective development of oil and gas resources,

WHEREAS, State oil and gas regulatory agencies have the local and regional knowledge and experience to make scientifically sound decisions to promote economic recovery of oil and gas while protecting the environment,

WHEREAS, examples of effective federal primacy delegation from federal government to the states exist both in the U.S. Department of Interior and other federal organizations, WHEREAS, established examples of federal primacy delegation allow the opportunity for each state to elect whether to obtain such primacy delegation from the overseeing federal authority, and

WHEREAS, delegation of primacy to the states for regulation of oil and gas operations would allow the BLM to devote its administrative resources to other necessary resource management functions such as mineral leasing and associated analysis,

NOW THEREFORE, BE IT RESOLVED THAT, the IOGCC urges Congress to establish by legislative action the appropriate mechanism to allow federal primacy delegation to the States for the regulation of oil and gas operations on federal public land within each of the states.


 

RESOLUTION 15.052

Acknowledging the Accomplishments of the State Review Committee and Creating States First Initiative Forum

WHEREAS, the Interstate Oil and Gas Compact Commission (IOGCC)is dedicated to assuring strong state regulation of all aspects of domestic oil and gas production including environmental impacts, and documenting the efforts of the states in administering comprehensive programs, and;

WHEREAS, the IOGCC has been involved with a state review process since 1989, and in 1991 established a State Review Program with the creation of a Standing Committee - the State Review Committee, and;

WHEREAS, the IOGCC working cooperatively with the U.S. Environmental Protection Agency implemented a successful State Review Program, and acknowledged, through the IOGCC State Review Committee, the establishment, in 1999 of an independent entity entitled State Review of Oil and Natural Gas Environmental Regulations (STRONGER), and;

WHEREAS, STRONGER, in coordination with the IOGCC State Review Committee, has completed reviews of 22 state oil and gas regulatory programs, representing 94 percent of the U.S. oil and gas production, and;

WHEREAS, given the extent of the reviews completed during the last 24 years, the IOGCC State Review Committee, has successfully completed its assigned tasks, and;

WHEREAS, STRONGER, as an independent entity, continues to administer a state review program and develop programmatic guidelines, and;

WHEREAS, the IOGCC, being committed to further enhance and continue to document the States’ extraordinary and rapid regulatory improvements with respect to the regulation of all aspects of domestic oil and gas production over the last five years, has created the States First Initiative, a joint effort with the Groundwater Protection Council, and;

WHEREAS, the projects and programs of the States First Initiative need a formal venue to present the ongoing efforts documenting the States’ continuing regulatory improvements at IOGCC meetings,

NOW THEREFORE, BE IT RESOLVED THAT, the IOGCC State Review Committee be commended for the successful completion of the Committee’s assigned tasks with respect to the state review process and be re-tasked as the new venue for the States First Initiative. Additionally, the task of appointing state participants to the STRONGER Board, and approving and adopting STRONGER Guidelines, formerly a function of the State Review Committee, be terminated and recognized as independent functions of STRONGER under that entity’s existing by-laws.

AND BE IT FURTHER RESOLVED, by the Interstate Oil and Gas Compact Commission at the Business Meeting held on May 20, 2015 in Salt Lake City, Utah, that the State Review Committee be re-tasked and established as the States First Initiative Forum.


 

2015 RESOLUTION

RESOLUTION 15.091 

Clarifying Issues Related to the Transitioning of Class II Carbon Dioxide Enhanced Oil or Gas Recovery Project to a Class VI Geologic Storage Project

 


Oklahoma City, OK
2015 Annual Conference


RESOLUTION 15.091


Clarifying Issues Related to the Transitioning of Class II Carbon Dioxide Enhanced Oil or Gas Recovery Project to a Class VI Geologic Storage Project


WHEREAS, the business of carbon capture, utilization and storage (CCUS) has been slow to advance, the United States Environmental Protection Agency (USEPA) is to be commended for addressing one of the key obstacles, in their April 23, 2015 clarification Memorandum to Regional Water Division Directors, “Key Principles in EPA’s Underground Injection Control Program Class VI Rules Related to Transition of Class II Enhanced Oil or Gas Recovery Wells to Class VI” (the Memorandum); and

WHEREAS, the transition discussed in the Memorandum provides some clarification, and proposes “the best implementation approach is for states to administer both the Class II and the Class VI UIC program” and further “encourages states to apply for primacy for all well classes, including Class VI”; at the same time USEPA has failed to act in a timely manner to approve the Underground Injection Control (UIC) Class VI Primacy Application from the Great State of North Dakota, submitted on June 21, 2013; and

WHEREAS, the states contend that the regulatory tools of the Class II UIC program do in fact properly manage the risk throughout the life of an enhanced oil or gas recovery (EOR) project, and the states agree with USEPA that the Class II program director (in most cases a state official) will have the relevant data regarding storage, risk, commerciality, and project life; and

WHEREAS, the states desire to remove the regulatory uncertainty created by the potential of a forced transition from Class II UIC to Class VI UIC and any other regulatory barriers, and to replace these barriers with incentives to encourage both the carbon dioxide (CO2) capture and the CO2 EOR industries to work together to advance carbon capture technology; and

WHEREAS, CO2 is a valuable commodity when utilized to enhance recovery of oil, gas, and other mineral resources; and current research indicates that great volumes of CO2 can be sequestered at the same time it is being used for EOR purposes; and in many states CO2 is currently being injected in large quantities for purposes of EOR; and

WHEREAS, the injection of CO2 for EOR generates significant revenue which can be utilized to facilitate capture of CO2; and

WHEREAS, USEPA has not acknowledged that a transition in UIC regulatory authority and administration creates legal and regulatory uncertainty as to impacts on existing state mineral law, including but not limited to, states rights, pore space ownership, private property rights, mineral rights, existing and future unitization agreements.

NOW, THEREFORE, BE IT RESOLVED, that the Interstate Oil and Gas Compact Commission requests the USEPA to ensure and confirm that states have the right to administer injection of CO2 for EOR under Class II UIC; and that the states and owner/operators have the right to regulatory certainty that injection of CO2 for EOR is managed as Class II UIC throughout the commercial life of each project; and that the Class II UIC program director has the right to determine if and when transition from Class II UIC to Class VI UIC is required to address risk.

BE IT FURTHER RESOLVED, that the USEPA acknowledge that such regulatory certainty offers great promise in advancing CCUS; by avoiding legal uncertainty regarding treatment of CO2 as a commodity for EOR as opposed to a waste for geologic storage.