Class VI Financial Assurance: Surety & Insurance
Jan 8, 2022
To own and operate Carbon Capture & Sequestration (CCS) facilities in the United States requires compliance with many regulations with regards to financial assurance, all of which have been created in the last 10 years. Formally identified as Class VI wells and falling under the Safe Drinking Water Act and Underground Injection Control (UIC) Program, CCS operations are governed by the EPA in all states (except Wyoming and North Dakota, where they are governed by the state). The financial assurance requirement is crucial to the operators as the Class VI operator must conduct post-injection site care for a default period of 50 years. This default period will remain in place unless the CCS operator can demonstrate that the plume and pressure front no longer pose a risk of endangerment to drinking water and an alternative timeframe has been approved by the UIC Program Director.
Our team is well-versed in these requirements and the markets for coverage, and stands ready to guide clients through the process.