The state of Alaska is taking a significant step towards carbon capture and utilization with the publication of draft rules for a new program. This program aims to bury carbon dioxide deep underground, a process known as sequestration, which could have far-reaching implications for the proposed trans-Alaska natural gas pipeline. The initiative is a crucial part of the state's strategy to reduce carbon emissions and mitigate climate change, while also addressing the challenges posed by the high levels of carbon dioxide mixed with natural gas on the North Slope. The Alaska Oil and Gas Conservation Commission has completed draft regulations for the state's 'carbon storage and underground injection' program, which will transfer regulation of carbon dioxide wells from the U.S. Environmental Protection Agency to the state. This move is supported by a 2023 law passed by the Alaska Legislature and signed by Governor Mike Dunleavy, allowing the state to take over this regulatory role. The initial phases of the project were funded by the Biden administration under a federal grant, with subsequent years expected to cost the state approximately $386,000 annually. Four other states have already assumed regulatory authority over 'class VI wells' used for carbon dioxide injection, and Alaska's proposed changes are equally comprehensive, covering 105 pages of technically dense language. One key change is the prohibition of carbon dioxide wells that need to pass through drinking water aquifers, with exemptions allowed for other well types. The proposed regulations also include clauses requiring insurance or bonds to cover accident costs and mandating that carbon dioxide wells be firmly capped when abandoned. The Alaska Oil and Gas Conservation Commission has scheduled a public hearing on the draft rules for January 13, 2026, in Anchorage, providing an opportunity for public participation. However, more work remains for the state, as Alaska will need to formally draft its takeover application to the EPA, which will involve another public comment period. The application is expected to be submitted to the EPA 'ASAP after public process,' and the state anticipates that assuming authority over EPA-regulated carbon wells will take another 12-18 months.
