Kentucky Carbon Dioxide Storage Lease
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How to fill out Carbon Dioxide Storage Lease?
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FAQ
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.
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.
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.
Estimated costs for sequestering up to 500 million tons of carbon per year?an amount that would offset up to one-third of current annual U.S. carbon emissions?range from $30 to $90 per ton.
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.
Courts consider two main theories when presented with this issue: the English Rule and the American Rule. The English Rule dictates that pore space belongs to the mineral estate because they created it by extracting the minerals. Conversely, the American Rule states that the surface estate owns the pore space.
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.
The analysis suggests coal-sourced CO2 emissions can be stored in this region at a cost of $52?$60 ton?1, whereas the cost to store emission from natural-gas-fired plants ranges from approximately $80 to $90. Storing emissions offshore increases the lowest total costs of CCS to over $60 per ton of CO2 for coal.