CCRcorp Sites  

The CCRcorp Network unlocks access to a world of insights, research, guides and information in a range of specialty areas.

Our Sites

TheCorporateCounsel

TheCorporateCounsel.net

A basis for research and practical guidance focusing on federal securities laws, compliance & corporate governance.

DealLawyers

DealLawyers.com

An educational service that provides practical guidance on legal issues involving public and private mergers & acquisitions, joint ventures, private equity – and much more.

CompensationStandards

CompensationStandards.com

The “one stop” resource for information about responsible executive compensation practices & disclosure.

Section16.net

Section16.net

Widely recognized as the premier online research platform providing practical guidance on issues involving Section 16 of the Securities Exchange Act of 1934 and all of its related rules.

PracticalESG

PracticalESG.com

Keeping you in-the-know on environmental, social and governance developments

Here is something you don’t see everyday – and the first time I’ve ever seen it. On August 14, EPA Region V (Chicago) issued a Notice of Violation for a carbon sequestration injection well owned and operated by Archer-Daniels-Midland (ADM) in Decatur, Macon County, Illinois. EPA and the states don’t have regulations specifically applicable to carbon dioxide injection similar to rules for hazardous waste underground injection (UIC); instead, the applicable rules are those under the Safe Drinking Water Act (UIC regulations of 40 CFR Parts 144 – 148). While states typically have primacy for regulation development and implementation for most EPA programs, this is one where EPA generally still has direct operating, permitting and inspection authority.

Based on EPA’s June 2024 inspection and review of the facility’s compliance status with the permit from January 1, 2022, to July 1, 2024, EPA issued a Notice of Violation for failure to:

“… meet the requirements of the Permit and the UIC regulations in the following ways:

  • Construction, operation, maintenance, plugging, or conducting any other injection activity in a manner that allows the movement of injection and formation fluids into any unauthorized zones.

  • Failure to follow the Emergency Response and Remediation Plan in accordance with the Permit; and

  • Failure to monitor the well in accordance with the Permit.”

According to Reuters, the company responded that

“it had detected some corrosion in one of its two deep monitoring wells and subsequently plugged it and reported it to the agency, according to a copy of the letter seen by Reuters.

‘At no time was there any impact to the surface or groundwater sources or any threat to public health,’ ADM spokesperson Jackie Anderson said in a statement.”

Even though it appears underground carbon sequestration (um, aka “disposal”…) is currently something of a regulatory gray area (except possibly when used in fracking or enhanced oil recovery), the reality is that such operations are indeed regulated, with enforcement risk a reality.

Our members can learn more about environmental compliance and enforcement here.

If you aren’t already subscribed to our complimentary ESG blog, sign up here for daily updates delivered right to you.

Photo credit: jetcityimage – stock.adobe.com.

Back to all blogs

The Editor

Lawrence Heim has been practicing in the field of ESG management for almost 40 years. He began his career as a legal assistant in the Environmental Practice of Vinson & Elkins working for a partner who is nationally recognized and an adjunct professor of environmental law at the University of Texas Law School. He moved into technical environmental consulting with ENSR Consulting & Engineering at the height of environmental regulatory development, working across a range of disciplines. He was one… View Profile