New York Carbon Dioxide Storage Lease (with Landowner)
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FAQ
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.
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 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.
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.
The surface owner owns the geologic pore space and has storage rights.
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.
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.