ECMC’s Geologic Enterprise Board set an operator fee to support long-term protections for Class VI wells in the state.
DENVER, (CO) - On Tuesday, Jan. 27, the Geologic Storage Stewardship Enterprise Board set the annual stewardship fee for geologic storage operators at $0.08 per metric ton of carbon dioxide (CO2) injected. The fee will be deposited into a dedicated fund used to support the long-term care of geologic storage sites, helping create a self-sustaining system to manage potential risks associated with carbon capture and sequestration.
The Geologic Storage Stewardship Enterprise Board was established by HB 25-1165 to further support effective and safe carbon sequestration in Colorado. The Board is funded through fees paid by the injection well operator associated with each facility. The Board is comprised of five members appointed by the governor and is housed within the Department of Natural Resources and the Energy and Carbon Management Commission (ECMC). Board meetings are public and occur virtually; recordings are posted online.
Geologic carbon storage involves capturing carbon dioxide (CO2) gas from the atmosphere or industrial emission sources to be condensed, injected and permanently stored in rock formations deep underground. Carbon capture and storage is one of Colorado’s emerging strategies to work toward achieving net-zero emissions.
In 2025, ECMC applied to the U.S. Environmental Protection Agency (EPA) for primacy over Class VI, Underground Injection Control wells, with the final decision expected in 2026. Wells regulated through EPA’s Underground Injection Control (UIC) program are classified based on the type of fluid injected and the depth of the injection zone relative to the deepest Underground Source of Drinking Water (USDW). There are six “classes” of injection wells. Class VI wells are used to inject carbon dioxide (CO2) into deep rock formations for permanent storage.
If the EPA grants Colorado primacy, Colorado will have the authority to directly permit and regulate Class VI wells. These developments position Colorado as a national leader in carbon storage regulation, and help ensure that projects are carried out in a manner that protects public health, safety, welfare, the environment and wildlife resources. Currently, there are no Class VI injection projects in operation in Colorado, but two permit applications are under review by the EPA and several feasibility projects are underway.
The Enterprise Board determines and imposes long-term stewardship fees, while ECMC administers the collection of the fees on the Enterprise’s behalf. The decision was based on input from stakeholders and ECMC staff analysis.
“This fee will assure that the costs of long-term maintenance for geologic storage facilities in Colorado are borne by the regulated industry and that these facilities are managed in perpetuity, enabling the growth and security of the developing carbon capture industry in our state,” said ECMC’s Director Julie Murphy. “Carbon capture and storage technology will play an essential role in the fulfillment of our state’s long-term greenhouse gas reduction goals, and setting this fee structure is an important part of that process.”
Funds may only be used for the operating costs of the Enterprise, long-term stewardship activities and environmental compliance efforts for orphaned geologic storage facilities, although the Board determined that existing financial assurance requirements are likely to cover any costs related to the orphaning of these facilities. The purpose of the Fund is to ensure no Colorado taxpayer dollars are used.
The Board has the regulatory authority to periodically reevaluate and adjust the fee as needed to assure the long-term financial security of the stewardship fund. During the meeting, the Board agreed to reevaluate the stewardship fee after three years, in 2029, but reserved the right to adjust the fee before that point if expenditures unexpectedly change. The Board agreed to meet every six months to listen to more information and hear public comment. Future hearings will be published on ECMC’s website, and recordings will be posted to ECMC’s YouTube channel.
About the ECMC
The mission of the Colorado Energy & Carbon Management Commission (ECMC) is to regulate the development and production of the natural resources of oil and gas, deep geothermal resources, the capture and sequestration of carbon, and the underground storage of natural gas in a manner that protects public health, safety, welfare, the environment and wildlife resources. Visit the ECMC website for more information.