Guidance Documents for Underground Injection Control Financial Responsibilities | Protecting Underground Sources of Drinking Water from Underground Injection (UIC)

Underground Injection Control (UIC) financial responsibilities guidance documents provide guidance for:

UIC program directors
Geologic sequestration (GS) well owners or operators
Independent third party providers

Financial responsibility requirements are designed to ensure that owners or operators have the resources to carry out required GS activities. Protecting underground sources of drinking waters depends upon the availability of sufficient financial resources for operation and closure.

EPA is releasing revised guidance for, “ Federal Financial Responsibility Demonstrations for Owners or Operators of Class II Oil- and Gas-Related Injection Wells”. This guidance is a revision to the original document issued in 1990. The revised guidance clarifies the role of financial responsibility as a means of supporting the regulated community's compliance with legal obligations. Additionally this revised guidance provides information and recommendations for establishing financial responsibility demonstrations that are more consistent with updated knowledge and expertise in the area, and that place new emphasis on financial stability of third party providers.

The guidance provided below describes the following:

Financial instruments that owners or operators of Class VI wells can select to demonstrate financial responsibility, as well as the relative strengths and weaknesses associated with each instrument
Minimum specifications and conditions of financial coverage that owners or operators must use to demonstrate compliance with the GS Rule requirements
Submission requirements for owners or operators demonstrating financial responsibility and review requirements for the UIC Program Director
Ongoing financial responsibilities of the owners or operators of Class VI wells and the UIC Program Director

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Geologic Sequestration of Carbon Dioxide: Underground Injection Control (UIC) Program Class VI Financial Responsibility Guidance (PDF)(127 pp, 924 K, July 2011, 815-R-11-005)
This document details recommended types of financial mechanisms that can be used to meet the Class VI Final Rule requirements for financial responsibility and provides guidance on use.
Revised Federal Financial Responsibility Demonstrations for Owners or Operators of Class II Oil- and Gas-Related Injection Wells (PDF)(27 pp, 789 K, November 2016, 816-R-16-003)
This revised guidance clarifies the role of financial responsibility as a means of supporting the regulated community's compliance with legal obligations.
EPA Guidance for Adjusting Plugging and Abandonment Cost Estimates (PDF)(4 pp, 763 K, July 9, 2014)
This guidance provides owner or operators of Class I hazardous waste injection wells an alternate cost index to fulfill the financial responsibility requirements of the UIC regulations.