The Wyoming Department of Environmental Quality issued the permit for the discharge of water produced from the recently completed wells at the West Esponda pilot production project.
The containment at the Powder River Basin project has a capacity of about 225 megalitres.
Director Peter Nightingale said Three Way, an earthworks construction company from Buffalo, Wyoming, had mobilised the site and begun the excavation site works.
Completion is expected in about 40 days.