State CCS Policy


Montana SB 498

Year Enacted:2009
CCS Component: Sequestration
Date Effective:Most elements of the bill become effective when Montana is granted primacy by the US EPA UIC program for CO2 injection.
Summary:This bill authorizes the Montana Board of Oil and Gas Conservation to regulate CCS. It declares pore space the property of the surface owner, authorizes the state to assume liability for closed geologic storage sites, creates a geologic storage reservoir program fund, and provides for unitization for geologic storage.


Sequestration Site Permitting

Permitting Authority:Montana Board of Oil and Gas Conservation

Property Rights

Porespace Ownership:Porespace is owned by the surface owner, unless deeds or severance documents establish otherwise.
CO2 Ownership:Operator
Liability During Operations:Operator
Mineral Rights Primacy:Yes
Unitization:The Board may order the unit operation of a geologic storage reservoir upon application of persons owning storage rights to 60% of the storage capacity of the proposed storage area.
Notes:For purposes of administering this law, injected CO2 is not a pollutant, nuisance , hazardous, or deleterious substance.

EOR Status

EOR Status:This bill does not impede or impair EOR operations, including the right to sell emission reduction credits associated with EOR. The term carbon dioxide injection well does not include UIC Class II wells.
Notes:The board shall develop rules for conversion of EOR wells to carbon dioxide injection wells.

Long-term Stewardship

Long-term Liability:Liability will transfer to the sate following issuance of a certificate of completion by the Board.
Funding Mechanism:Establishes a geologic storage reservoir program account in the special revenue fund. This fund will be used to cover the Board�¢ï¿½&Ati
Notes:Certificate of completion can be issued upon determination that the injected CO2 is stable and will be retained in the geologic storage reservoir, not less than 15 years after carbon dioxide injections end.




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