Kentucky Carbon Dioxide Storage and Secondary Recovery Unit Agreement

State:
Multi-State
Control #:
US-OG-950
Format:
Word; 
Rich Text
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Description

This form is a carbon dioxide storage and secondary recovery unit agreement.
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  • Preview Carbon Dioxide Storage and Secondary Recovery Unit Agreement
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FAQ

In CO2 EOR projects, all of the injected CO2 either remains sequestered underground or is produced and re-injected in a subsequent project, making the notion of using captured anthropogenic CO2 for EOR in places far removed from natural sources of CO2 a likely possibility.

The surface owner owns the geologic pore space and has storage rights.

The economic viability of CCS for the oil and gas sector continues to rely heavily on federal and provincial government financial support. This is in contrast to renewable technologies, which have generally required government subsidies only in the initial development phases.

5 The summary of relevant case law below demonstrates that courts in Montana, Oklahoma, Louisiana, New York, Michigan, West Virginia, New Mexico, and California all recognize the surface owner's ownership of underground pore space for gas storage operations.

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.

Kentucky, on the other hand, appears to be an outlier that ties ownership of ?pore space? to the owner of the mineral rights. Many other states, like Indiana, have no case law directly addressing this issue.

Ownership. W.S. § 34-1-152 grants pore space ownership to the surface owner and allows it to be severed from the surface and separately conveyed. In 2009 W.S. § 35-11-316 created an 80% unitization requirement.

This Act ensures a permanent storage of CO2 in underground rock layers in a way that protects humanity and the environment and takes the responsibility for future generations into consideration.

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Kentucky Carbon Dioxide Storage and Secondary Recovery Unit Agreement