Arkansas Carbon Dioxide Storage Lease (with Landowner)
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FAQ
The Pore Lease Oil & gas leases normally contain provisions allowing the lessee to reinject produced gas and water. These lessors are the mineral owners. Depending upon the lease they granted to a lessee, the ?minerals? that lessees may produce are frequently limited to oil & gas.
Under American rule, the mineral estate holder owns the minerals but not the geologic formation. The surface owner owns the geologic pore space and has storage rights.
Ownership of pore space underlying surfaces. (a) The ownership of all pore space in all strata below the surface lands and waters of this state is declared to be vested in the several owners of the surface above the strata.
Pore space ownership in the United States varies from state to state and can be owned by the State, by the U.S. government or private individuals. In other countries, subsurface rights are controlled entirely by the government.
Landowners can participate in a carbon lease through carbon sequestration that is stored in the soil or through trees on the property. This is known as carbon offsets or carbon sequestration. Landowners can also lease their previously drilled wells to store carbon underground.
On average, 100 acres of forested lands removes 115 tons of carbon dioxide each year.
Pore Space Law Some states, like Oklahoma, have specific statutes that recognize that the pore space is owned by the surface owner.
Alaska has important competitive advantages for the development of a CCUS industry. The State owns the pore space used for storage under State lands, which allows leasing of large contiguous storage sites.