PRINTER'S NO. 3588
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
2889
Session of
2022
INTRODUCED BY SNYDER, MATZIE, PISCIOTTANO, BIZZARRO, GUENST,
T. DAVIS, KINKEAD, SANCHEZ, CIRESI AND MARSHALL,
OCTOBER 24, 2022
REFERRED TO COMMITTEE ON ENVIRONMENTAL RESOURCES AND ENERGY,
OCTOBER 24, 2022
AN ACT
Amending Title 58 (Oil and Gas) of the Pennsylvania Consolidated
Statutes, providing for geologic sequestration and
establishing the Geologic Sequestration Special Revenue
Account.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Title 58 of the Pennsylvania Consolidated
Statutes is amended by adding a chapter to read:
CHAPTER 37
GEOLOGIC SEQUESTRATION
Sec.
3701. Scope of chapter.
3702. Definitions.
3703. Declaration of policy.
3704. Ownership of pore space underlying surfaces.
3705. Oil and gas activities at geologic sequestration sites.
3706. Carbon sequestration and permit requirements.
3707. Unitization of geologic sequestration sites.
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3708. Geologic Sequestration Special Revenue Account.
3709. Certification of carbon dioxide incidentally stored
during enhanced recovery operations.
§ 3701. Scope of chapter.
This chapter relates to the regulation of geologic
sequestration.
§ 3702. Definitions.
The following words and phrases when used in this chapter
shall have the meanings given to them in this section unless the
context clearly indicates otherwise:
"Department." The Department of Environmental Protection of
the Commonwealth.
"Geologic sequestration." The injection of carbon dioxide
and associated constituents into subsurface geologic formations
intended to prevent its release into the atmosphere.
"Geologic sequestration facilities." The surface equipment
used for transport, storage and injection of carbon dioxide.
"Geologic sequestration site." The underground geologic
formations where the carbon dioxide is intended to be stored.
"Pore space." Subsurface space which can be used as storage
space for carbon dioxide or other substances.
"Secretary." The Secretary of Environmental Protection of
the Commonwealth.
§ 3703. Declaration of policy.
The General Assembly finds and declares as follows:
(1) The enactment of this chapter is an exercise of the
authority of the Commonwealth to safeguard the vital
interests of the residents of this Commonwealth.
(2) This chapter is intended to advance the significant
and legitimate public purpose of ensuring clarity and legal
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use of geologic sequestration sites.
§ 3704. Ownership of pore space underlying surfaces.
(a) General rule.--Notwithstanding any other provision of
law, the ownership of all pore space in all strata below the
surface lands and waters of this Commonwealth is declared to be
vested in the several owners of the surface above the strata.
(b) Conveyances.--A conveyance of the surface ownership of
real property shall be a conveyance of the pore space in all
strata below the surface of the real property unless the
ownership interest in the pore space previously has been severed
from the surface ownership or is explicitly excluded in the
conveyance. The ownership of pore space in strata may be
conveyed in the manner provided by law for the transfer of
mineral interests in real property. No agreement conveying
mineral or other interests underlying the surface shall act to
convey ownership of any pore space in the stratum unless the
agreement explicitly conveys that ownership interest.
(c) Notice not required.--No provision of law, including a
lawfully adopted rule or regulation, requiring notice to be
given to a surface owner, to an owner of the mineral interest,
or to both, shall be construed to require notice to a person
holding ownership interest in any pore space in the underlying
strata unless the law specifies that notice to the person is
required.
(d) Limitations.--Nothing in this section shall be construed
to change or alter the common law as of the date of enactment of
this section as it relates to the rights belonging to, or the
dominance of, the mineral estate. For the purpose of determining
the priority of subsurface uses between a severed mineral estate
and pore space as defined in this section, the severed mineral
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estate is dominant regardless of whether ownership of the pore
space is vested in the several owners of the surface or is owned
separately from the surface.
(e) Requirements.--All instruments which transfer the rights
to pore space under this section shall describe the scope of any
right to use the surface estate. The owner of any pore space
right shall have no right to use the surface estate beyond that
set out in a properly recorded instrument.
(f) Transfers.--Transfers of pore space rights made after
the date of enactment of this section are null and void at the
option of the owner of the surface estate if the transfer
instrument does not contain a specific description of the
location of the pore space being transferred. The description
may include a subsurface geologic or seismic survey or a metes
and bounds description of the surface lying over the transferred
pore space. In the event a description of the surface is used,
the transfer shall be deemed to include pore space at all depths
underlying the described surface area unless specifically
excluded. The validity of pore space rights under this
subsection may not affect the respective liabilities of any
party and the liabilities shall operate in the same manner as if
the pore space transfer were valid.
(g) Acquired rights.--Nothing in this section shall alter,
amend, diminish or invalidate rights to the use of subsurface
pore space that were acquired by contract or lease prior to
enactment of this section.
§ 3705. Oil and gas activities at geologic sequestration sites.
Nothing in this chapter shall be deemed to affect the
otherwise lawful right of a surface or mineral owner to drill or
bore through a geologic sequestration site if done in accordance
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with department rules for protecting the geologic sequestration
site against the escape of carbon dioxide.
§ 3706. Carbon sequestration and permit requirements.
(a) Prohibited.--The geologic sequestration of carbon
dioxide is prohibited unless authorized by a permit issued by
the department.
(b) Enhanced recovery.--The injection of carbon dioxide for
purposes of a project for enhanced recovery of oil or other
minerals approved by the department may not be subject to this
chapter.
(c) Transfer.--If an oil and gas operator converts to
geologic sequestration upon the cessation of oil and gas
recovery operations, regulation of the geologic sequestration
facility and the geologic sequestration site shall be
transferred to the department. If the oil and gas operator does
not convert to geologic sequestration, the wells shall be
plugged and abandoned according to the rules of the department.
(d) Time limited permits.--Temporary time limited permits
for pilot scale testing of technologies for geologic
sequestration shall be issued by the department based upon
current rules and regulations.
(e) Permit requirements.--Permit requirements for geologic
sequestration of carbon dioxide shall be as defined by
department rules.
(f) Regulations.--The secretary, after receiving public
comment, shall promulgate regulations for each of the following:
(1) The creation of subclasses of wells within the
existing Underground Injection Control Program administered
by the United States Environmental Protection Agency under
Part C of the Safe Drinking Water Act (Public Law 93-523, 21
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U.S.C. § 349 and 42 U.S.C. §§ 201 and 300f et seq.) to
protect human health and safety and the environment and allow
for the permitting of the geologic sequestration of carbon
dioxide.
(2) Requirements for the content of applications for
geologic sequestration permits. Each application shall
include all the following:
(i) A description of the general geology of the area
to be affected by the injection of carbon dioxide,
including geochemistry, structure and faulting,
fracturing and seals, stratigraphy and lithology,
including petrophysical attributes.
(ii) A characterization of the injection zone and
aquifers above and below the injection zone which may be
affected, including applicable pressure and fluid
chemistry data to describe the projected effects of
injection activities.
(iii) The identification of all other drill holes
and operating wells that exist within and adjacent to the
proposed sequestration site.
(iv) An assessment of the impact to fluid resources
on subsurface structures and the surface of lands that
may reasonably be expected to be impacted and the
measures required to mitigate the impacts.
(v) Plans and procedures for environmental
surveillance and excursion detection, prevention and
control programs. For the purposes of this subparagraph,
the term "excursion" shall mean the detection of
migrating carbon dioxide at or beyond the boundary of the
geologic sequestration site.
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(vi) A site and facilities description, including a
description of the proposed geologic sequestration
facilities and documentation sufficient to demonstrate
that the applicant has all legal rights, including the
right to surface use, necessary to sequester carbon
dioxide and associated constituents into the proposed
geologic sequestration site. The department may issue a
draft permit contingent on obtaining a unitization order
under section 3707 (relating to unitization of geologic
sequestration sites).
(vii) Proof that the proposed injection wells are
designed, at a minimum, to the construction standards
promulgated by the department.
(viii) A plan for periodic mechanical integrity
testing of all wells.
(ix) A monitoring plan to assess the migration of
the injected carbon dioxide and to ensure the retention
of the carbon dioxide in the geologic sequestration site.
(x) Proof of bonding or financial assurance to
ensure that geologic sequestration sites and facilities
will be constructed, operated and closed in accordance
with the purposes and provisions of this chapter and the
rules and regulations promulgated under this act.
(xi) A detailed plan for postclosure monitoring,
verification, maintenance and mitigation.
(xii) Proof of notice to surface owners, mineral
claimants, mineral owners, lessees and other owners of
record of subsurface interests as to the contents of the
notice. Notice requirements shall, at a minimum, require
all the following:
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(A) The publishing of the notice of the
application in a newspaper of general circulation in
each county of the proposed operation at weekly
intervals for four consecutive weeks.
(B) A copy of the notice shall also be mailed to
each surface owner, mineral claimant, mineral owner,
lessee and other owner of record of subsurface
interests that is located within one mile of the
proposed boundary of the geologic sequestration site.
(xiii) A certificate issued by an insurance company
authorized to do business in the United States certifying
that the applicant has a public liability insurance
policy in force for the geologic sequestration operations
for which the permit is sought, or evidence that the
applicant has satisfied other Federal or State self-
insurance requirements. The policy shall provide for
personal injury and property damage protection in an
amount and for a duration as established by regulations.
(xiv) Requirements for the operator to provide
immediate verbal notice to the department of any
excursion after the excursion is discovered, followed by
written notice to all surface owners, mineral claimants,
mineral owners, lessees and other owners of record of
subsurface interests within 30 days of when the excursion
is discovered.
(xv) Procedures for the termination or modification
of any applicable Underground Injection Control permit
issued under Part C of the Safe Drinking Water Act if an
excursion cannot be controlled or mitigated.
(xvi) Any other conditions and requirements as
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necessary to carry out this section.
(xvii) Requirements for bonding and financial
assurance for geologic sequestration facilities and
geologic sequestration sites, including:
(A) Procedures to establish the type and amount
of the bond or financial assurance instrument to
ensure that the operator faithfully performs all
requirements of this chapter, complies with all rules
and regulations and provides adequate financial
resources to pay for mitigation or reclamation costs
that the Commonwealth may incur as a result of a
default by the permit holder. If any insurance
instruments submitted for financial assurance
purposes include the Commonwealth of Pennsylvania as
an additional insured, the inclusion may not be
deemed a waiver of sovereign immunity.
(B) Annual or other periodic reporting by the
permittee during geologic sequestration and
reclamation activities to allow the department to
confirm or adjust the amount or type of the bond or
other financial assurance requirements consistent
with the site, facility and operation specific risks
and conditions.
(C) Procedures to require proof of compliance
from a permittee ordered by the department to adjust
a bond or other financial assurance, including
procedures for permit suspension or termination
procedures following notice and an opportunity for a
hearing if adequate bonding or financial assurance
cannot be demonstrated.
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(D) Procedures for replacement of a bond or
financial assurance instrument if notice of
cancellation is provided or notice that the license
to do business in this Commonwealth of the surety or
insurance company issuing a bond or other financial
assurance under this chapter is suspended or revoked.
(E) Procedures for the department to forfeit the
bond or to make a claim against an insurance
instrument providing financial assurance, including
the right of the attorney general to bring suit to
recover costs if the bond or financial assurance is
inadequate, to pay for closure, mitigation,
reclamation, measurement, monitoring, verification
and pollution control, where recovery is deemed
possible.
(F) Procedures, including public notice and a
public hearing if requested, for the release of bonds
or the termination of insurance instruments no less
than 10 years after the date when all wells excluding
monitoring wells have been appropriately plugged and
abandoned, all subsurface operations and activities
have ceased and all surface equipment and
improvements have been removed or appropriately
abandoned, or so long thereafter as necessary to
obtain a completion and release certificate from the
department certifying that plume stabilization has
been achieved without the use of control equipment
based on a minimum of three consecutive years of
monitoring data, and that the operator has completed
site reclamation and all required monitoring and
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remediation sufficient to show that the carbon
dioxide injected into the geologic sequestration site
will not harm or present a risk to human health and
safety or the environment, including drinking water
supplies, consistent with the purposes of this
chapter and the rules and regulations adopted by the
department.
(G) Requirements for the operator to record an
affidavit in the office of the county clerk of the
county or counties in which a geologic sequestration
site is located, which affidavit shall be reasonably
calculated to alert a person researching the title of
a particular tract that such tract is underlain by a
site permitted for geologic sequestration.
(xviii) Requirements for fees to be paid by all
permittees of geologic sequestration sites and
facilities, which may include a per ton injection fee or
a closure fee, during the period of injection of carbon
dioxide and associated constituents into subsurface
geologic formations, which fees shall be deposited into
the Geologic Sequestration Special Revenue Account
established under section 3708 (relating to Geologic
Sequestration Special Revenue Account).
(g) Fee.--At the time a permit application is filed, an
applicant shall pay a fee to be determined by the director based
upon the estimated costs of reviewing, evaluating, processing,
serving notice of an application and holding any hearings. The
fee shall be credited to a separate account and shall be used by
the division as required to complete the tasks necessary to
process, publish and reach a decision on the permit application.
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Unused fees shall be returned to the applicant.
(h) Jurisdiction.--The department shall have jurisdiction
over any subsequent extraction of sequestered carbon dioxide
that is intended for commercial or industrial purposes.
(i) Liability limited.--Nothing in this section shall be
construed to create any liability by the Commonwealth for
failure to comply with this section.
§ 3707. Unitization of geologic sequestration sites.
(a) Application.--An interested person may file an
application with the department requesting an order providing
for the operation and organization of a unit of one or more
parts as a geologic sequestration site and for the pooling of
interests in pore space in the proposed unit area for the
purpose of conducting the unit operation. The application shall
contain:
(1) A copy of a permit or draft permit issued by the
department allowing geologic sequestration or an application
for the permit.
(2) A description of the pore space and surface lands
proposed to be operated under this section.
(3) The names, as disclosed by the conveyance records of
the county or counties in which the proposed unit area is
situated, and the publicly available land grant records of
all of the following:
(i) Each person owning or having an interest in the
surface estate and pore space in the unit area, including
mortgages and the owners of other liens or encumbrances.
(ii) Each owner of the surface estate and pore space
not included within but which immediately adjoins the
proposed unit area or a corner of the surface estate.
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(4) The addresses of all persons and owners identified
in paragraph (3), if known. If the name or address of any
person or owner is unknown, the application shall so
indicate.
(5) A statement of the type of operations contemplated
to comply with environmental requirements and to facilitate
the use and production of Pennsylvania energy resources.
(6) A proposed plan of unitization applicable to the
proposed unit area which the applicant considers fair,
reasonable and equitable and which shall include provisions
for determining the pore space to be used within the area,
the appointment of a unit operator and the time when the plan
is to become effective.
(7) A proposed plan for determining the quantity of pore
space storage capacity to be assigned to each separately
owned tract within the unit and the formula or method by
which pore space will be allocated the economic benefits
generated by use of pore space in the unit area.
(8) A proposed plan for generating economic benefits for
the use of pore space within the unit area.
(9) A proposed operating plan providing the manner in
which the unit area will be supervised and managed and, if
applicable, costs allocated and paid, unless all owners
within the proposed unit area have joined in executing an
operating agreement or plan providing for such supervision,
management and allocation and, if applicable, payment of
costs. All operating plans shall comply with all applicable
environmental requirements.
(b) Hearing.--Upon receipt of an application under this
section, the department shall promptly set the matter for
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hearing and, in addition to any notice otherwise required by law
or the department's rules, shall require the applicant to give
notice of the hearing, specifying the time and place of hearing,
and describing briefly the purpose and the land and pore space
affected, to be mailed by certified mail at least 30 days prior
to the hearing to all persons whose names and addresses are
required to be listed in the application.
(c) Determination.--After considering the application and
hearing the evidence offered in connection with the hearing, the
department shall issue an order finding and approving the
proposed plan of unitization and proposed operating plan, if
any, if the department finds all the following:
(1) The material allegations of the application are
substantially true.
(2) The purposes specified in this section will be
served by granting the application.
(3) The application outlines operations that will comply
with environmental requirements.
(4) Granting the application will facilitate the use and
production of Pennsylvania energy resources.
(5) The quantity of pore space storage capacity and the
method used to determine the quantity of pore space storage
capacity allocated to each separately owned tract within the
unit area represents, so far as can be practically
determined, each tract's actual share of the pore space to be
used in the sequestration activity.
(6) The method by which the allocation of economic
benefits generated from use of pore space within the unit
area between different pore space owners and between pore
space owners and the unit operator or others is fair and
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reasonable, taking into consideration the costs required to
capture, transport and sequester the carbon dioxide.
(7) The method of generating economic benefits from the
use of pore space in the unit area is fair and equitable and
is reasonably designed to maximize the value of the use.
(8) Other requirements specified by rules or regulations
adopted by the department have been met.
(d) Authorization.--The following shall apply:
(1) No order of the department authorizing the
commencement of unit operations shall become effective until
the plan of unitization has been signed or in writing
ratified or approved by those persons who own at least 80% of
the pore space storage capacity within the unit area.
(2) If consent has not been obtained at the time the
department's order is made, the department shall, upon
application, hold supplemental hearings and make findings as
may be required to determine if and when the consent will be
obtained.
(3) The department shall require the applicant to give
notice of a supplemental hearing by regular mail at least 30
days prior to the hearing to each person owning interests in
the pore space in the proposed unit area whose name and
address was required to be listed in the application for the
unit operations.
(4) If the required percentages of consent have not been
obtained within a period of six months from the date on which
the order of approval is made, the department shall revoke
the order. The department may extend the time period for
consent for good cause shown.
(5) An interested person may file an application with
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the department requesting an order applicable only to the
proposed unit area described in the application which shall
provide for the percentage of approval or ratification to be
reduced from 80% to 75%.
(6) The application shall contain the information
required under this chapter for an application for permit and
any order of the department issued for the application shall
comply with subsection (b).
(7) Notice of the hearing on the application shall be
given in the same manner and to the same persons as required
by subsection (b).
(8) If the department finds that negotiations have been
conducted for a period of at least nine months prior to the
filing of the application, that the applicant has
participated in the negotiations diligently and in good faith
and that the percentage of approval or ratification required
by this subsection cannot be obtained, the department may
reduce the percentage of approval or ratification required by
this section from 80% to 75%.
(9) The order shall affect only the unit area described
in the application and shall operate only to approve the
proposed plan of unitization and proposed operating plan and
to reduce the required percentage of approval or ratification
and may not change any other requirement contained in this
section.
(e) Prohibition.--From the effective date of an order of the
department issued under this section, the operation within the
unit area defined in the order by a person other than the unit
operator or persons acting under the unit operator's authority,
except in the manner and to the extent provided in the plan of
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unitization approved by the order, shall be prohibited.
(f) Amendments.--Unless otherwise provided in this section,
an order issued by the department under this section may be
amended in the same manner and subject to the same conditions as
an original order or previous agreement in accordance with the
following:
(1) No amendatory order may change:
(i) The assignments of pore space storage capacity
between existing pore space owners in the unit area as
established by the original order or previous agreement,
except with the written consent of those persons who own
at least 80% of the pore space storage capacity in the
unit area.
(ii) Any allocation of costs as established by the
original order or previous agreement, except with the
written consent of those persons who own at least 80% of
the unit pore space storage capacity.
(2) If consent has not been obtained at the time the
department order is made, the department shall, upon
application, hold supplemental hearings and make findings as
may be required to determine if and when the consent will be
obtained.
(3) The department shall require the applicant to give
notice of a supplemental hearing by regular mail at least 30
days prior to the hearing to each person owning interests in
the unit area whose name and address was required by this
section to be listed in the application for the unit
operations.
(4) If the required percentages of consent have not been
obtained within a period of six months from the date on which
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the order of approval is made, the department shall revoke
the order. The department may extend the time period for
consent for good cause shown.
(5) An interested person may file an application with
the department requesting an order applicable only to the
unit area described in the application which shall provide
for the percentage of approval or ratification to be reduced
from 80% to 75%.
(6) The application shall contain all the information
required by the department and shall comply with subsection
(b).
(7) Notice of the hearing on the application shall be
given in the same manner and to the same persons as required
by subsection (a).
(8) If the department finds that negotiations were being
conducted since July 1, 2019, or have been conducted for a
period of at least nine months prior to the filing of the
application, that the applicant has participated in the
negotiations diligently and in good faith and that the
percentage of approval or ratification required by this
subsection cannot be obtained, the department may reduce any
percentage of approval or ratification required by this
section from 80% to 75%.
(9) The order shall affect only the unit area described
in the application and operate only to reduce the required
percentage of approval or ratification necessary for amending
the assignment of pore space and may not change any other
requirement contained in this section.
(g) Modification.--The department, upon its own motion or
upon application, and with notice and hearing, may modify its
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order regarding the operation, size or other characteristic of
the unit area in order to prevent or assist in preventing a
substantial inequity resulting from operation of the unit, if no
modification may amend any permit issued under this chapter.
(h) Petition for inclusion.--The following apply:
(1) An owner of pore space within a geologic
sequestration site who has not been included within a
unitization application or order authorizing a unit under
this section may petition for inclusion in the unit area.
(2) The petition shall be filed with the department and
shall describe the petitioner's legal entitlement to the pore
space, the location of the pore space, whether the pore space
is included within any permitting area applicable to the unit
area and the basis for inclusion in the unit area.
(3) The petition shall be accompanied by a deposit of
money sufficient to pay all costs of the inclusion
proceedings.
(4) The department shall require the petitioner to
publish a notice of filing of the petition, which notice
shall state the filing of the petition, the name of the
petitioner, the location of the pore space and the prayer of
the petitioner.
(5) The notice shall instruct all interested persons to
appear at a specified time and place and to show cause, in
writing, why the petition should not be granted.
(6) The department shall hear the petition and all
objections at the time and place mentioned in the notice and
shall grant or deny the petition.
(7) The filing of the petition shall be deemed and taken
as an assent by each petitioner to the inclusion in the unit
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of the pore space mentioned in the petition.
(8) If the petition is granted, the petitioner shall be
considered to have been a member of the unit since its
inception and, upon the payment of any costs paid by unit
members, shall be entitled to all economic benefits received
by unit members since the inception of the unit, provided
that no unit modification affects any permit issued under
this chapter.
(9) The department shall adopt rules providing for the
fair and equitable determination of pore space storage
capacity for each successful petitioner and the means by
which successful petitioners shall be paid the economic
benefits to which they are entitled under this subsection,
including, if necessary, a reallocation of economic benefits
among unit members.
(i) Certified orders.--A certified copy of any order of the
department issued under this section shall be entitled to be
recorded in the land records of the county clerk for the
counties where all or any portion of the unit area is located,
and the recordation shall constitute notice to all individuals.
(j) Eminent domain.--No provision of this chapter shall be
construed to confer on any person the right of eminent domain
and no order for unitization issued under this section shall act
so as to grant to any person the right of eminent domain.
(k) Granting rights.--No order for unitization issued under
this section shall act so as to grant any person a right of use
or access to a surface estate if that person would not otherwise
have the right.
(l) Termination.--No order of the department or other
contract relating to a separately owned tract within the unit
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area shall be terminated by the order providing for unit
operations but shall remain in force and apply to that tract and
its benefits, burdens and obligations until terminated in
accordance with the provisions thereof.
(m) Limited effect.--Except to the extent that the parties
affected agree, no order providing for unit operations shall be
construed to result in a transfer of all or any part of the
title to pore space or other rights in any tract in the unit
area, and no agreement or order shall operate to violate the
terms and requirements of any permit applicable to pore space
within the unit area.
§ 3708. Geologic Sequestration Special Revenue Account.
(a) Establishment.--The Geologic Sequestration Special
Revenue Account is established within the State Treasury. The
account shall be administered by the department, and all money
in the account shall be transmitted to the State Treasurer for
credit to the account. Any interest earned on the investment or
deposit of money into the account shall remain in the account
and may not be credited to the General Fund. All money in the
account are continuously appropriated for use by the department
consistent with this section.
(b) Funding.--The account shall consist of all money
collected by the department to measure, monitor and verify
geologic sequestration sites following site closure
certification, release of all financial assurance instruments
and termination of the permit. The department shall promulgate
rules necessary to collect money in an amount reasonably
calculated to pay the costs of measuring, monitoring and
verifying the sites.
(c) Restrictions.--Money in the account shall be used only
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for the measurement, monitoring and verification of geologic
sequestration sites following site closure certification,
release of all financial assurance instruments and termination
of the permit.
(d) Liability.--The existence, management and expenditure of
money from this account may not constitute a waiver by the
Commonwealth of its immunity from legal liability and does not
constitute an assumption of any liability for geologic
sequestration sites or the carbon dioxide and associated
constituents injected into those sites.
§ 3709. Certification of carbon dioxide incidentally stored
during enhanced recovery operations.
(a) Incidental storage.--If there is production of oil, gas
or both from enhanced recovery operations utilizing the
injection of carbon dioxide, the department upon voluntary
application by the unit operator, and after review of the
operators plan for accounting for the incidentally stored carbon
dioxide, may issue an order recognizing the incidental storage
of carbon dioxide occurring through the enhanced recovery
operation and certifying the quantity of carbon dioxide being
stored.
(b) Rules.--Prior to the department issuing an order under
subsection (a), the department shall promulgate rules
establishing standards and procedures for the certification of
incidental storage of carbon dioxide and the certification of
quantities of carbon dioxide incidentally stored.
Section 2. This act shall take effect in 60 days.
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