This bill instructs the Industrial Commission to write rules for geologic storage site permitting, provides for eminent domain and unitization, authorizes the state to assume liability for closed storage sites, and establishes funds for administration and long-term stewardship of geologic storage sites.
Sequestration
Sequestration Site Permitting
Permitting Authority:
North Dakota Industrial Commission
Rule Status:
Draft rules published 16 September 2009
Notes:
Creates the carbon dioxide storage facility administrative fund, funded by a fee on each ton of CO2 injected for storage.
Property Rights
CO2 Ownership:
Operator
Liability During Operations:
Operator
Mineral Rights Primacy:
Yes
Eminent Domain for GS:
Declares geologic storage of CO2 to be in the public interest
Unitization:
If owners of 60% of pore space in proposed storage reservoir consent, then Industrial Commission may require that the pore space of non-consenting owners be included in the storage facility
EOR Status
EOR Status:
This bill does not apply to EOR projects. The Commission may allow an EOR project to be converted to a storage facility.
Notes:
The Commission may adopt procedures and criteria to determine the amount of injected CO2 stored in an EOR project, to facilitate carbon credits or allowances for EOR projects.
Long-term Stewardship
Long-term Liability:
Transferred to state upon issuance of a certificate of project completion. State is responsible for long-term management and monitoring until such time as the federal government assumes responsibility.
Funding Mechanism:
Bill creates the carbon dioxide trust fund, funded by a fee on each ton of CO2 injected for storage.
Notes:
Certificate of project completion can be issued not sooner than 10 years after injection ends, if the injected CO2 is stable and the reservoir is reasonably expected to retain the stored CO2.
Greenhouse Gas Accounting
Accounting Requirements:
The Commission may adopt procedures and criteria to determine the amount of injected CO2 stored in a storage reservoir or an EOR project, to facilitate carbon credits or allowances.
