Texas Carbon Dioxide Storage Lease (with Landowner)
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FAQ
Carbon stored underground could find multiple ways to escape and seep back into the atmosphere due to chemical reactions that take place between the carbon dioxide, rocks, water in the pores and even the cement from abandoned wells, ing to researchers from Penn State University.
?Surface rights? refers to the right to control the surface of the land. Existing structures are included under this umbrella. Typically, when property is purchased, the transaction includes the surface and mineral rights.
Class II wells are used to inject fluids related to oil and gas production, including injection of CO2 for EOR. Class VI wells are used to inject CO2 for GS.
The surface owner owns the geologic pore space and has storage rights.
What Are Mineral Rights and Who Has Them? Mineral rights in Texas are the rights to mineral deposits that exist under the surface of a parcel of property. This right normally belongs to the owner of the surface estate; however, in Texas those rights can be transferred through sale or lease to a second party.
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.
Class VI wells are used to inject carbon dioxide (CO2) into deep rock formations. This long-term underground storage is called geologic sequestration (GS).
In Texas and most states, pore space belongs to the surface owner, absent an explicit severance. Some states are passing statutes prohibiting the severance of pore space as a separate estate, thereby securing ownership in the surface owners.