Massachusetts Carbon Dioxide Storage Lease (with Landowner)

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Multi-State
Control #:
US-OG-952
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This form is a carbon dioxide storage lease with landowner.
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  • Preview Carbon Dioxide Storage Lease (with Landowner)
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FAQ

Geologists call it pore space. Similar to holes in a sponge, pore space is the empty space between particles of sand and sediment or the space within and between rocks.

In summary, landowners who own property own the air and the physical surface and subsurface (rocks, soil, and other immobile resources) as well as the fugitive resources that happen to be trapped in the rock pores of the physical property.

On average, 100 acres of forested lands removes 115 tons of carbon dioxide each year.

The prevailing rule, often referred to as the American Rule, holds that the pore space is owned by the surface owner, rather than the mineral owner1. The overwhelming majority of jurisdictions follow the American Rule, including the states of Louisiana2, Oklahoma3, and New Mexico4.

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

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.

The Carbon Capture and Utilization Parity Act of 2023 would increase the tax credit for carbon capture and utilization to match the incentives for carbon capture and sequestration for both direct air capture and the power and industrial sectors.

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Massachusetts Carbon Dioxide Storage Lease (with Landowner)