ALLEN PARISH, La., July 3, 2025 – ExxonMobil Low Carbon Solutions Onshore Storage LLC has sued Allen Parish, seeking to overturn a new ordinance that could halt its carbon capture and sequestration (CCS) projects.
The company’s federal complaint, filed July 1, claims Ordinance No. 6656 illegally imposes local permitting requirements beyond state and federal laws. ExxonMobil argues these additional rules threaten its Hummingbird and Mockingbird projects, which are part of a $100 million investment in Allen Parish.
A Clash Between State Oversight and Local Control
ExxonMobil says the ordinance conflicts with Louisiana’s comprehensive regulatory system and the federally approved Safe Drinking Water Act program. Currently, the Louisiana Department of Energy and Natural Resources (LDENR) regulates underground injection wells statewide.
However, Allen Parish leaders passed the ordinance in May after public meetings where residents voiced strong opposition to CCS development.
Community Concerns About Safety and Transparency
At a May 5 public hearing, many parish residents expressed fears about potential groundwater contamination and environmental risks from underground CO₂ storage. Some questioned whether pipelines carrying pressurized CO₂ could pose hazards to nearby homes and businesses.
“These wells could harm our water and land for generations,” said one resident during the hearing. Others demanded stronger local oversight of large corporations operating in rural areas.
Allen Parish’s ordinance reflects these concerns. It mandates a two-mile buffer around homes, quarterly water testing near well sites, and community alarm systems for emergencies. It also requires companies to post bonds covering environmental cleanup costs and provide detailed plume maps showing underground CO₂ movement.
ExxonMobil Pushes Back
ExxonMobil argues these measures duplicate or exceed state requirements, creating “unworkable delays” that threaten its project timelines. The company insists its test wells use proven technology to safely store CO₂ a mile underground.
If delayed past June 2026, ExxonMobil warns it could lose its state permits and years of planning. The company also highlights potential economic benefits, including millions in lease payments to landowners and new parish tax revenues.
The Legal Challenge
The lawsuit seeks a declaratory judgment declaring Ordinance No. 6656 invalid and an injunction preventing Allen Parish from enforcing it. ExxonMobil argues that allowing each parish to regulate CCS would undermine Louisiana’s statewide policy and discourage investment.
What’s Next
The case, now before the U.S. District Court for the Western District of Louisiana, could set a precedent for local authority over CCS projects.
As debates over carbon capture grow louder across Louisiana, the outcome may influence how future projects balance climate goals with community concerns.
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