Kentucky Carbon Dioxide Storage Unit Agreement

State:
Multi-State
Control #:
US-OG-953
Format:
Word; 
Rich Text
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Description

This form is a carbon dioxide storage unit agreement.
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FAQ

For a smaller volume of CO2 (2.5 Mtpa), costs for 500 km are just below ?15/tonne, including liquefaction. For short to medium distances and large volumes, pipelines are therefore by far the most cost- effective solution, but require strong central coordination.

The CO2 storage capacity of hydrocarbon (oil, gas and coal) reservoirs is estimated to be around 800 gigatonnes of CO2. The world's deep saline formations may have a much greater storage capacity than depleted oil and gas fields, although more work needs to be done to assess their full potential for CO2 storage.

The representative cost of storage ranges from $5 per ton CO2 in depleted oil and gas fields located onshore, to $18 ton?1 CO2 in an offshore saline reservoir. Onshore saline reservoirs store CO2 at a cost of $6 ton?1 CO2. Our study area did not contain depleted oil and gas fields offshore.

CO2 transport and storage costs vary regionally. Key variabilities are distance, scale, monitoring, geology, and pipeline costs. We find CO2 transport and storage costs range from $4 to 45/tCO2. CCS deployment is more sensitive to transport and storage costs in some regions.

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.

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.

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.

When CO2 encounters the brine present in the porous rock, CO2 will dissolve into the brine. As the brine containing dissolved CO2 is denser than the surrounding fluids (i.e., brine without dissolved CO2), it will sink to the bottom of the rock formation over time.

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Kentucky Carbon Dioxide Storage Unit Agreement