Pennsylvania Subsurface Underground Carbon Dioxide Storage Lease and Agreement (with Landowner, Long Form)

• Category: Oil Gas and Minerals - Leases
• State: Multi-State
• Control #: US-OG-1148
• Format: Word; Rich Text

Description

This form is a long form subsurface underground carbon dioxide storage lease and agreement with landowner.

Title: Pennsylvania Subsurface Underground Carbon Dioxide Storage Lease and Agreement (with Landowner, Long Form) Introduction: The Pennsylvania Subsurface Underground Carbon Dioxide Storage Lease and Agreement (with Landowner, Long Form) is a legally binding contract between the landowner and a storage operator, focusing on the storage and sequestration of carbon dioxide (CO2). This agreement governs the rights, responsibilities, and compensation for both parties involved in the development and operation of a subsurface CO2 storage project. Several types of CCS agreements exist, including term-based agreements, single well agreements, and area-based agreements. Key Elements of Pennsylvania Subsurface Underground Carbon Dioxide Storage Lease and Agreement: 1. Definitions: This section clarifies essential terms associated with the agreement, such as "storage project," "storage area," "CO2 stream," "storage operation," and "monitoring." 2. Granting of Rights and Access: This clause details the landowner's grant of rights to the storage operator, including access to the land, surface facilities, and subsurface rights necessary for the storage project. It may also specify any limitations on access and operational activities. 3. Lease Term and Renewal: The lease term outlines the duration for which the agreement is valid, including any renewal provisions, which typically depend on the performance and compliance of the storage operator. 4. Compensation and Royalty: This section covers the financial aspects of the agreement, including upfront or periodic payments, cost-sharing provisions, and the calculation of royalty payments to the landowner based on injected CO2 volumes or other agreed-upon metrics. 5. Storage Operations and Monitoring: Here, the agreement outlines the obligations of the storage operator related to the safe and effective storage of CO2, adherence to regulatory requirements, and monitoring and reporting protocols for proper project evaluation. 6. Liability and Indemnification: These clauses allocate liability responsibilities between the landowner and storage operator, ensuring that each party is accountable for damages, accidents, or regulatory non-compliance that may occur during project implementation. 7. Termination and Abandonment: This section governs the circumstances under which the agreement can be terminated by either party, including provisions for the decommissioning and abandonment of the storage operation according to regulatory standards. 8. Insurance and Financial Assurance: To mitigate potential risks, this clause mandates the storage operator to secure appropriate insurance coverage and potentially furnish financial assurance mechanisms, like bonds or letters of credit, to protect the landowner from financial losses. Types of Pennsylvania Subsurface Underground Carbon Dioxide Storage Lease and Agreement: 1. Term-Based Agreement: This type of agreement provides the storage operator with exclusive rights to use a specific storage area for a predetermined duration, usually a fixed number of years. 2. Single Well Agreement: In a single well agreement, the landowner grants rights to the storage operator specifically for the purpose of injecting CO2 into a designated well or storage site. 3. Area-Based Agreement: An area-based agreement grants the storage operator the right to deploy multiple wells across a defined storage area, allowing for efficient storage operations that may involve several landowners. Conclusion: The Pennsylvania Subsurface Underground Carbon Dioxide Storage Lease and Agreement (with Landowner, Long Form) establishes a framework for the cooperative exploration, development, and operation of carbon dioxide storage projects while protecting the rights and interests of both the landowner and the storage operator. Adherence to this comprehensive agreement ensures standardized practices, proper compensation, and environmentally sound carbon capture and storage operations.