1. TTI Regulatory and Permitting Issues For Geologic and Terrestrial Sequestration of CO2 Presentation to the West Coast Regional Carbon Sequestration Partnership October 28, 2004 Portland, OR Michael S. Bruno, Ph.D., PE Terralog Technologies USA, Inc. www.terralog.com

2. TTI Regulatory and Permitting Issues For Geologic and Terrestrial Sequestration of CO2 Not a hazardous waste Not a criteria pollutant Can be either a product or waste depending on usage or classification

3. TTI Regulatory and Permitting Issues For Geologic and Terrestrial Sequestration of CO2 Green – Enhanced oil & gas recovery Red – storage or disposal in Coal bed methane, geologic and depleted reservoirs Blue – conventional oil and gas recovery Source: USGS Fact Sheet 26-03, March 2003

4. TTI Regulatory and Permitting Issues For Geologic and Terrestrial Sequestration of CO2 CO2 Geologic Sequestration Regulatory Framework Applicable Legislation: Federal Regulation (SDWA, RCRA) - UIC program State Regulations (CEQA) - ARB, RWQCB Local Regulations (zoning laws) Primary Motivation: Protect Health, Safety, Environment (air, water)

5. TTI Regulatory and Permitting Issues For Geologic and Terrestrial Sequestration of CO2 EOR well Class II – classified product in 6 states Definition of CO2 as waste or product to be decided by EPA & State !! Storage well ---AZ Class II AK Class II or V CA Class II WA Class V OR May not allow NV Class V if meet certain conditions Waste disposal - AZ Class I AK Class IID CA Class I MOU w/EPA & review w/H20 Board WA Class V OR Class I or V (<100ft deep) NV Class V (mostly shallow wells)

6. TTI Regulatory and Permitting Issues For Geologic and Terrestrial Sequestration of CO2 Any injection well will trigger all or some of the following: –State agency permit if state has primacy, or EPA UIC permit –NPDES if have waste water disposal –Aquifer Protection Permit –DOT, Fire Marshall, PUC, OSHA during transportation of CO2 via pipeline

7. TTI Regulatory and Permitting Issues For Geologic and Terrestrial Sequestration of CO2 Injection Permit Process and Requirements: 1. Geologic Review 2. Injection Simulation 3.Well Review 4.Operating Plan 5.Monitoring Plan

8. TTI Regulatory and Permitting Issues For Geologic and Terrestrial Sequestration of CO2 Terrestrial Sequestration & Storage Management Afforestation Reforestation Urban forestry Agroforestry Natural regeneration Biomass enrichment Forest product management

9. TTI Regulatory and Permitting Issues For Geologic and Terrestrial Sequestration of CO2 Any change or ground disturbance will trigger all or some of the following: –Permit from State Forest and Fire Dept –State Dept of Fish & Wildlife review –US Fish & Wildlife review –Water Right Permit, NPDES or water usage evaluation –Conditional Use Permit zoning code –US Army Corps of Engineers review –Division of State Lands, BLM, Local Indian Tribunal or County/City Planning Dept review –CEQA or SEPA evaluation –Local Air District Permit, new source review Source: Oregon Forest Protection Laws, An Illustrated Manual, 2002

10. TTI Regulatory and Permitting Issues For Geologic and Terrestrial Sequestration of CO2 Land Management Federal Land –US Dept of Agriculture – Forest Services –US Dept of Interior – BLM, National Park Services, Bureau of Indian Affairs State Land –Dept of Forestry and Fire Protection Private Land

11. TTI Regulatory and Permitting Issues For Geologic and Terrestrial Sequestration of CO2 Any Change/Gd. Disturbance/ Forest Mgmt. Forestation, Riparian Consr./Re-seed Grassland State Land ODF OAR Ch 629 ORS 527.610 OR Dept of Fish & Wildlife OAR Ch 635 US Fish & Wildlife 50CFR 17 OR Div of State Lands ORS 196.795-196.990 US Army Corps of Eng CWA Sec 404 Federal Land USDA – FS See next slide USDI See next slide National Park Services BLM Bureau of Indian Affairs Private Land Forest land See State Land Ranchland OR Div of State Lands ORS 196.795-196.990 US Army Corps of Eng CWA Sec 404 OR DA ORS 603 Div. 80,90,95 County Planning Dept Oregon Example

12. TTI Regulatory and Permitting Issues For Geologic and Terrestrial Sequestration of CO2 Federal Land USDA - FS 36CFR Ch1 US Fish & Wildlife 50CFR 17 OR Dept of Fish & Wildlife OAR Ch 635 USDI Bureau of Indian Affairs 25CFR 1 Local Tribunal See BLM National Park Services Not Allowed BLM 43CFR Ch2, 35 OR Dept of Fish & Wildlife OAR Ch 635 US Dept of Fish & Wildlife 50 CFR 17 Oregon Federal Land Regulations

13. TTI Regulatory and Permitting Issues For Geologic and Terrestrial Sequestration of CO2 CO 2 Sequestration Ranking Options West Coast Regional Partnership Increasing difficulty