Analysis of state and federal regulatory regimes potentially governing the extraction of water from carbon storage reservoirs in the United States

Abstract Extracted water—water brought to the surface of the ground during carbon capture and sequestration (CCS) projects to create additional room for carbon dioxide injection—exists in a murky legal environment. As part of a broader attempt to identify the complex interactions between water resource policies and CCS, an analysis was undertaken at both the state and the federal level to scope the policy environments surrounding extracted water policies and laws. Six states (California, Illinois, Mississippi, Montana, North Dakota, and Texas) were chosen for this analysis because either active CCS work is currently underway, or the potential exists for future work. Although regulation of extracted waters could potentially occur at many points along the CCS life cycle, this paper focuses on regulation that may apply when the water is withdrawn—that is, accessed and removed from the saline aquifer—and when it is re-injected in a close but unconnected aquifer. It was found that no regulations exist for this source specifically. In addition, greater input is needed from regulators and policy makers in terms of defining this resource. In particular, regulation of extracted waters (and CCS activities broadly) often overlaps with the management of fluids produced during oil and gas development. Many regulations would apply to extracted waters if they were classified as such. Therefore, correct categorization is key as the industry in this space continues to grow.