UNITED STATES ENVIRONMENTAL PROTECTION AGENCY WASHIN GTON , D

.C

. 20460 April 4, 2008

OFFICE OF WATE R Dear Tribal Leaders and Representatives: The purpose oflhis letter is to provide you with infonnation about the U
.S. Environmental Protection Agency's development ofa proposed regulation to protect Wlderground sources of drinking water (USDWs) from any potential endangerment from the geologic sequestration (as) ofcarbon dioxide (C02). 

# as is the process ofinjecting CO2 captured from an emission source (e.g
., a power plant) into deep subsurface rock fonnations for long-term storage. It is one ofa portfolio ofoptions that could be effective in reducing C(h emissions to the atmosphere, thereby mitigating climate change. We anticipate publishing the rule proposal in the summer 0[2008 and a final rule in 2010 or 2011. In addition to seeking broad stakeholder involvement as we have during two public stakeholder workshops held this past winter, we will respect the govemment· to ·govemment relationship between EPA and tribes, EPA's trust responsibility, the 1984 Indian Policy, and Executive Order 13175 on tribal consultation throughout the process. We therefore are taking this opportunity to offer you several different avenues through which to engage in dialogue with us. We invite you to join us in an exclusive conference call with tribal governments on Thursday, April 24, 2008, from 2·4 pm, Eastern time. The call

-in number is 1-866

-299 · 3188 and the access code is 2025643887. During this call, we will provide an overview ofthe specific provisions of the proposed rule, discuss subsequent related actions, and listen to and address questions from call participants. Attached to this letter is some background infonnation that you may wish to review before the call. There will also be a fonnal public comment period following the publication ofthe proposed rule in the summer of2008. We welcome tribal input, so we invite you to take the opportunity to submit any comments you have during the comment period. In addition to these specific upcoming opportunities, we invite you to share your input with us at any time during the rulemaking process. Please contact me at (202) 564

-4688 or codrington
.ann @ epa.gov with questions or comments or to request an individual meeting with EPA's Office ofWater. Your input is important to us and J assure you that your comments will receive consideration by EPA senior managers and staff.

Intemet AddrEtS9 (UAL) •**httpJIwww,epa.go ~**  R.eyel.cIIReeyelabi e •**P~nt9d** with Vegetable OiI8ased Inkson 100% P05tcOnsumer, Process Chlorine Free Recycled PaperYour participation and feedback on this ruiemaking will help us to protect underground sources ofdrinking water and to facilitate successful deployment ofGS as a new climate change mitigation technology. We look forward to productive dialogue with you. Sincerely,

# 1.;U~t(**I~** Ctrh o 

### t 4 

# fl 1

# l Ann Codrington, Chief Prevention Branch Drinking Water Protection Division

Attachment

### Attachment: Overview of Proposed EPA Rulemaking: Minimum Federal Requirements for

Underground Injection Wells for the Geologic Sequestration (GS) of Carbon Dioxide (CO,) The U.S. Environmental Protection Agency is developing proposed minimum federal regulations to protect underground sources ofdrinking water from underground injection ofcarbon dioxide (C02 ) for the purpose ofgeologic sequestration (GS). The proposed regulations are scheduled to be published in the summer of2008, followed by a fOlTI1al public comment period.


### What is Geologic Sequestration (GS) of CO, ? GS is the process ofinjecting C02 captured from an emission source (e
.g., a power plant) into deep subsurface rock formations for long-term storage. It is one ofa portfolio of options that could be effective in reducing CO2 emissions to the atmosphere and mitigating climate change. To inject captured CO2 for GS, operators compress CO2to convert·it from a gaseous state to a supercritical state
. 

### The supercritical CO2 is denser than a gas and takes up less space, enabling greater volumes ofCO2to be stored in the target formation. After capture and compression, the CO2 is delivered from the source to the sequestration site, either by pipeline, tanker trucks, or ship. The CO2 is then injected into deep subsurface rock formations via a well, using technologies that have been developed and refined by the oil and gas and manufacturing industries over the past several decades. Once injected, C02 is sequestered by a combination ofwell-understood trapping mechanisms, including physical and geochemical processes. More general information about geologic sequestration ofCO2 is available at: EPA's Climate Change website: http: //www.epa.gov/climatechange /emissions/c02geosequest.html Intergovernmental Panel on Climate Change's Special Report on Carbon Dioxide Capture and Storage: http: //www .ipcc.ch/ipccreports/srccs.htm


### GS Research The U.S. Department of Energy (DOE) is the lead federal agency for GS technology research and development. DOE's Regional Carbon Sequestratiqn Partnerships are conducting demonstration projects to gather data on the effectiveness and safety ofGS. These Regional Partnerships will implement many small and large-scale field tests of carbon dioxide injection throughout the country in a variety of geologic settings. DOE anticipates deployment offull-scale GS demonstration projects in the U.S. between 2008 and 2017.

IIn March, 2007, EPA published Underground Injection Control (VIC) Program guidance #83, Class VExperimental Technology Well Classificationfor Pilot Geologic Sequestration Projects to assist with pennitting for ongoing experimental projects. EPA's proposed rule will specifically address pennitting for full-scale commercial GS facilities. EPA is reviewing available data on existing DOE demonstration projects, as well as infonnation from other domestic and international research projects to infonn EPA's rule development. More infonnation on GS research and technology is available at: http://www.netl.doe.gov/technologics/carbonseq/index.html

GS Rulemaking Under the Safc Drinking Water Act (SDWA), EPA develops minimum requirements for state, tribal, and territorial UIC programs. States, tribes, and territories may seek primacy to administer UIC programs on their lands, or EPA may administer them. These requirements must be at least as stringent as the federal requirements (and may be more stringent). Currently, 33 states and three territories have full primacy and seven additional states have partial primacy for UIC programs. While no tribes currently have primacy for UIC programs, some tribes are in the application process. . EPA has detennined that GS ofCO2 through well injection meets the definition of "underground injection" in section 1421 (d)(I) ofthe SDWA. The Energy Independence and Security Act (H.R. 6), signed into law by President Bush on December 19,2007 explicitly states that GS is subject to the requirements ofSDWA, including the provisions that relate to the protection of underground sources ofdrinking water (USDWs) through the UIC Program. National minimum requirements for GS wells under the UIC program will promote consistent approaches to permitting GS operations across the U.S. SDWA provides EPA with authority to protect USDWs. SDWA does not provide authority under the 

### VIC provision in several areas related to GS. These include capture and transport ofCO2, licensing ofthe GS site and reservoir, ownership ofthe pore space, and certification for greenhouse gas reductions. EPA's Office ofWater is working with EPA's Office ofAir and Radiation as well as other federal agencies including the Department ofEnergy, Department ofTransportation, and Bureau ofLand Management to investigate these issues. Additionally, future Congressional action may address related questions. EPA's past experience is that working closely with stakeholders and experts helps facilitate the development ofwell-designed regulatory approaches. This past winter, EPA held two public meetings that focused on the potential regulatory framework for geologic sequestration. Each meeting was attended by 200-250 stakeholders representing government, research institutions, industry, public interest groups, law finns, and the general pUblic. Additionally, over the past several years EPA has held technical

2workshops with researchers and stakeholders to discuss technical considerations for establishing a 

# as framework
. EPA 's UlC Program has been protecting USDWs from underground injection activities for over 30 years. Annually, bil1ions ofgallons offluids are injected underground through wells authorized under State and Federal VIC Programs. This includes approximately 35 million tons ofcarbon dioxide that are injected for the purposes of enhancing oil and gas recovery. EPA' s proposed regulations will build on the UIC Program's many years ofexperience in safely injecting fluids, including carbon dioxide, into the subsurface. The proposed rulemaking will amend existing UIC programmatic requirements currently used for siting, construction, operation, monitoring and testing, and closure ofinjection wells. Key components ofthe proposed regulation 

### will include requirements related to: (1) geologic site characterization to ensure that wells are sited in suitable areas to limit the potential for migration ofinjected and fOlmation fluids into an underground source of drinking water; (2) well construction and well operation to ensure that the wells are properly constructed and managed; (3) well integrity testing and monitoring to ensure that the wells pcrfonn as designed; and, (4) well closure, post
-closure care and financial responsibility to ensure proper plugging and abandonment ofthe injection well. The proposal will discuss long-tenn liability and seek further comment on this issue as part of the proposed rulemaking. The proposal will also include public participation requirements that would be associated with issuance ofpennits. Costs ofcarrying out regulations for geologic sequestration programs will be assessed as part ofthe cost analysis for the rulemaking. More infonnation on GS rule development is on the EPA's Underground Injection Control Program Web site: http :// www.epa.gov/safewater /uic/well ssequestration.html

3