The Bureau of Land Management (BLM) recently granted Denbury Carbon Solutions limited access to a rural Montana site for a large-scale carbon sequestration project. This endeavor by the Exxon Mobil subsidiary seeks to inject 150 million tons of carbon dioxide (CO2) a mile underground. The decision aims to gather critical data without advancing the entire project, ensuring transparency and addressing public concerns.
Since the project’s details emerged in February 2024, Carter County residents have voiced unease over potential impacts on water supplies, roads, grazing, and wildlife. Some locals doubt the project’s claims of permanently storing CO2 underground. “We’ve heard the public’s concerns, and we’re acting on them,” stated BLM Montana/Dakotas State Director Sonya Germann.
Montana’s Snowy River project marks the state’s first significant proposal in carbon sequestration, driven by changes in tax codes and federal policies. Exxon Mobil, which acquired Denbury in 2023, is leveraging these changes to explore enhanced oil recovery through CO2 pipelines. The “45Q” tax framework offers $85 per ton of CO2 injected underground, potentially reducing Exxon Mobil’s tax bill by $13 billion.
Despite backing from the “45Q” tax framework, local opposition remains strong. Carter County Museum curator Nathan Carroll noted community concerns, especially after learning about Denbury’s projects elsewhere. Local residents demand clarity on federal earnings from leasing “pore space” and site geology, which has been insufficiently detailed.
Federal and state governments are increasing permitting for carbon sequestration projects. On the same day the BLM announced the Snowy River test well, the U.S. Environmental Protection Agency (EPA) revealed $12 million in funding for states and tribes to develop underground injection control programs.
The Montana Department of Natural Resources and Conservation has started seeking consultants to prepare an application for the Class VI program, governing carbon sequestration wells. The EPA’s July 31 release described these wells for various fluid injections without mentioning “climate” or “carbon dioxide.”
Ryan Kammer from the Great Plains Institute remains optimistic about geologic sequestration as part of climate mitigation strategies. Denbury’s easement allows for a stratigraphic well to evaluate the site’s geology, with the EPA reviewing potential impacts on drinking water and seismic activity, a process spanning two years.
EPA spokesperson Marisa Lubeck emphasized the importance of data for permit applications, stating that more data ensures better public transparency during the comment period.
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