Effective October 15, 2025, the Governor of Louisiana surprised many by issuing Executive Order No. JML 25-119 (“EO 25-119”), which establishes a moratorium directing the Department of Conservation and Energy (“Department”) to “suspend review of any new Class VI applications to construct that are submitted to it after” October 15, 2025. Relatedly, the Department issued guidance dated September 1, 2025 (Guidance No. B-2025-01) and October 13, 2025 (Guidance No. B-2025-01-A) which may affect pending Class VI permits. It is evident that that EO 25-119 was driven in part by increasing public concern over the last few years. However, for now, the State appears to have continued its general support for CCS, as EO 25-119 acknowledges:
(i) the immense economic opportunity CCS affords Louisiana;
(ii) the fact that Louisiana is at the forefront of CCS projects in the United States; and
(iii) the growing impact of public or local opposition to CCS.
Introduction and Policy Statements
At a high level, we note that this moratorium on new Class VI permit applications is effective immediately and has an unspecified duration. We expect additional guidance to be provided in the coming months. Citizens and outside interest groups applauding this “moratorium” would be well-served to read the entire Executive Order, which includes numerous statements and directives supportive of CCS in its preamble as follows:
WHEREAS, Louisiana’s extensive industrial infrastructure – including pipelines, liquefied natural gas (“LNG”) facilities, a highly skilled energy workforce, and expansive port system, is in conformity with President Trump’s policies, and it uniquely positions the State as a national leader in CO2 capture and storage, capable of seamlessly integrating CO2 capture into existing processes, enhancing America’s energy competitiveness globally;
WHEREAS, Louisiana, for over 40 years, has injected CO2 into the geological formations of our state for the use of enhanced oil recovery (“EOR”) in projects;
WHEREAS, CO2 has been safely transported via pipelines across Louisiana since 1986;
WHEREAS, Louisiana’s unparalleled capability to produce, transport, process, utilize, and liquefy natural gas while simultaneously sequestering CO2 entirely within its borders, and its position on the Gulf of America, makes the state indispensable to the pursuit of energy dominance, fostering strategic reliance from European and Asian markets seeking dependable, large-scale carbon-neutral feedstocks, thereby solidifying Louisiana’s role at the forefront of global energy leadership and economic competitiveness;
WHEREAS, CO2 capture and storage will extend Louisiana’s presence in energy by creating 17,000 potential new jobs, investing seventy-six billion dollars in potential capital for communities throughout Louisiana from announced projects alone, and driving economic growth on a scale unimaginable for Louisiana;
WHEREAS, CO2 capture and storage will provide additional revenue sources for local governments, has the potential to create a more diversified economy for Louisiana, and continue to serve as a catalyst for multiple industries, while sustaining and enhancing existing industries.
A drastic measure such as a moratorium appears disconnected from the Executive Order’s statements that Louisiana is uniquely positioned as “a national leader in CO2 capture and storage,” CCS plays a key role in “solidifying Louisiana role at the forefront of global energy leadership,” and highlighting the growth potential associated with CCS – “driving economic growth on a scale unimaginable for Louisiana.” However, at the end of its preamble, EO 25-119 tellingly references recent state legislation mandating notice, hearings and input with respect to local governments and concludes that, “local government and citizens, through their local government, have a right to be heard to ensure safety, transparency, and local input.” Thus, it is apparent that politics has thrust itself into what is primarily a regulatory permitting process.
Response from Trade and Industry Associations
Push back from groups such as Louisiana Mid-Continent Oil & Gas Association (LMOGA), the Louisiana Oil & Gas Association (LOGA), the Louisiana Association of Business and Industry (LABI), and the Louisiana Chemical Association (LCA) has been swift and unified in opposition to the moratorium. As an exemplar, the Louisiana Chemical Association issued public “Comments” on October 15, 2025, which succinctly highlight the concern at this critical juncture for CCS-related projects and investment:
[A] conditional moratorium on new Class VI permit applications, as announced today, sends the wrong message to the market at a pivotal moment for Louisiana’s economy. Carbon capture and storage (CCS) is a critical part of maintaining and growing the manufacturing industry in our state. A pause on applications, regardless of the reasoning, signals uncertainty for projects that enable lower-emissions production, support thousands of high-wage jobs, and encourage future reinvestment.
Louisiana earned federal approval to run its own Class VI program so that permitting could be rigorous, predictable, and efficient here at home. That hard-won primacy, and the state’s recent issuance of its first Class VI permit, demonstrate that Louisiana can safely develop these projects in a way that protects communities and natural resources while continuing to encourage industrial investment in the state. A moratorium undermines that predictability at the very time companies are making multi-billion-dollar, multi-decade siting decisions.
Beyond the Moratorium
EO 25-119 also provides a high-level synopsis of existing federal and state regulations for Class VI injection wells, as well as highlighting proposed federal rules for CO2 pipelines by the federal Pipeline and Hazardous Materials Safety Administration (“PHMSA”). Importantly, the Executive Order seeks to:
(i) more fully incorporate Louisiana Economic Development (“LED”) into the decision-making process, including “projected economic impact including local and regional economic growth, workforce opportunities, and any community benefit plan adopted by parish governments;” and
(ii) “provide a clear roadmap for citizens and local officials.”
With respect to “Pipeline Safety Integration,” Section 5 of EO 25-119 interestingly provides that, “all operators shall adhere to the existing requirements found at LAC 33:V (Hazardous Wastes and Hazardous Materials) and any forthcoming federal CO2 pipeline safety standards currently under PHMSA rulemaking (PHMSA– 2022–0125);” and “require[s] equivalent protective measures, including remote or automatic shut-off valves, robust emergency planning, and corrosion-control protocols.”
Although previously filed Class VI permits are not subject to the moratorium, if they are not one of six (6) projects selected for prioritization (listed below and inclusive of the Class VI Permit issued for Hackberry Sequestration), they will not be prioritized until compliance with Sections 4 and 6-10 of EO 25-119 is achieved and will likely face delays. While most of these referenced Sections incorporate or emphasize pre-existing Class VI application standards (such as “Emergency Operations Plan,” “Well Control procedures,” a “Plugging and Abandonment Plan”), there is some new guidance, particularly regarding public engagement, financial assurance and survey plats (to include “associated pipelines”), and consultation with LED for “Class VI permits with potential for significant economic impact.” Relatedly, Guidance No. B-2025 applies to review of existing Class VI Permit applications and sets forth required public engagement plan requirements and activities, including that the Department “give substantial consideration to local government comments on Class VI projects…” Importantly, this Guidance also addresses “major modifications,” and provides that unsolicited major modifications or alterations by applicants (as described further therein) will cause the Class VI permit application to be “reassigned to the end of the technical review queue.”
As referenced above, EO 25-119 also directs the Department “to reevaluate the status of applications for assessment and prioritization for the Class VI permits” as set forth in Guidance No. B-2025-01, which interestingly provides that the “Class VI review team will concentrate on the following permit applications following the issuance of the permit for Hackberry Sequestration in Cameron Parish (listed in alphabetical order):
(1) Capio Sherburne CCS Well #1 (Pointe Coupee Parish);
(2) CCS 2 – Wilcox2 (Vernon Parish);
(3) Goose Lake and Minerva South (Calcasieu and Cameron Parishes);
(4) LGF Columbia (Caldwell Parish); and
(5) River Parish Sequestration – RPN 1 (Ascension Parish).”
Concluding Thoughts
It is hoped that this moratorium is short-lived and represents an opportunity to fine-tune the permitting process to incorporate matters such as economic development and public engagement, rather than signaling a continued trend towards greater local government control over Class VI permitting. The next regular Louisiana legislative session, which convenes March 9, 2026, should be an interesting one for CCS-related legislation, with local control, pipelines, financial assurance, and transparency likely remaining hot-button topics.
Will Huguet brings extensive carbon capture and sequestration experience to his already robust energy sector and property law practice in the firm’s Shreveport office. He is an industry pioneer in negotiating unique carbon capture deals covering hundreds of thousands of acres in Louisiana and Texas.