Bill Text: NY S05971 | 2009-2010 | General Assembly | Introduced
Bill Title: Relates to a pilot program to enable the capture and storage of carbon dioxide; establishes the carbon capture and sequestration act; applies only to a municipally-owned electric generating facility that has submitted a complete application to the department of environmental conservation by December 31, 2010.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2010-01-06 - REFERRED TO ENERGY AND TELECOMMUNICATIONS [S05971 Detail]
Download: New_York-2009-S05971-Introduced.html
S T A T E O F N E W Y O R K
________________________________________________________________________
5971
2009-2010 Regular Sessions
I N S E N A T E
June 19, 2009
___________
Introduced by Sen. YOUNG -- read twice and ordered printed, and when
printed to be committed to the Committee on Rules
AN ACT to amend the public service law, in relation to a pilot program
to enable the capture and storage of carbon dioxide; and to enact the
"carbon capture and sequestration act"
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
1 Section 1. Subdivisions 2 and 4 of section 120 of the public service
2 law, subdivision 2 as amended and subdivision 4 as added by chapter 538
3 of the laws of 1981, are amended and a new subdivision 5 is added to
4 read as follows:
5 2. "Major utility transmission facility" means: (a) an electric trans-
6 mission line of a design capacity of one hundred twenty-five kilovolts
7 or more extending a distance of one mile or more, or of one hundred
8 kilovolts or more and less than one hundred twenty-five kilovolts,
9 extending a distance of ten miles or more, including associated equip-
10 ment, but shall not include any such transmission line located wholly
11 underground in a city with a population in excess of one hundred twen-
12 ty-five thousand or a primary transmission line approved by the federal
13 energy regulatory commission in connection with a hydro-electric facili-
14 ty; [and] (b) a fuel gas transmission line extending a distance of one
15 thousand feet or more to be used to transport fuel gas at pressures of
16 one hundred twenty-five pounds per square inch or more, excluding appur-
17 tenant facilities, but shall not include any such transmission line
18 which is located wholly underground in a city or wholly within the right
19 of way of a state, county or town highway or village street as those
20 terms are defined in article one of the highway law and article six of
21 the village law, or which replaces an existing transmission line,
22 including appurtenant facilities, and extends a distance of less than
23 one mile; AND (C) A CAPTURED CARBON TRANSMISSION LINE EXTENDING A
24 DISTANCE OF ONE THOUSAND FEET OR MORE TO BE USED TO TRANSPORT CAPTURED
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD14470-01-9
S. 5971 2
1 CARBON AT PRESSURES OF ONE HUNDRED TWENTY-FIVE POUNDS PER SQUARE INCH OR
2 MORE, EXCLUDING APPURTENANT FACILITIES, BUT SHALL NOT INCLUDE ANY SUCH
3 TRANSMISSION LINE WHICH IS LOCATED WHOLLY UNDERGROUND IN A CITY OR WHOL-
4 LY WITHIN THE RIGHT OF WAY OF A STATE, COUNTY OR TOWN HIGHWAY OR VILLAGE
5 STREET AS THOSE TERMS ARE DEFINED IN ARTICLE ONE OF THE HIGHWAY LAW AND
6 ARTICLE SIX OF THE VILLAGE LAW. CAPTURED CARBON DISPERSAL LINES,
7 INJECTION WELLS AND UNDERGROUND WELL FIELDS ARE NOT INCLUDED IN THE
8 MEANING OF THE TERM "MAJOR UTILITY TRANSMISSION FACILITY".
9 4. "Appurtenant facilities" means installations (excluding gas
10 compressors) which are merely auxiliary or appurtenant to a fuel gas OR
11 CAPTURED CARBON transmission line such as: valves; drips; measuring and
12 regulating equipment; yard and station piping; cathodic protection
13 equipment; gas cleaning; cooling and dehydration equipment; residual
14 refining equipment; water pumping; treatment and cooling equipment;
15 electrical and communication equipment; and buildings.
16 5. "CAPTURED CARBON" MEANS CARBON DIOXIDE IN ANY STATE AND ASSOCIATED
17 CONSTITUENTS EXTRACTED FROM THE EMISSIONS OF AN ELECTRIC GENERATING
18 FACILITY OR AN INDUSTRIAL FACILITY FOR THE PURPOSES OF SEQUESTRATION.
19 S 2. Subdivision 1 of section 123 of the public service law, as
20 amended by chapter 538 of the laws of 1981, is amended to read as
21 follows:
22 1. Upon the receipt of an application with respect to an electric
23 transmission line that complies with section one hundred twenty-two OF
24 THIS ARTICLE, the commission shall promptly fix a date for the commence-
25 ment of a public hearing thereon not less than sixty nor more than nine-
26 ty days after such receipt. Except as otherwise provided in section one
27 hundred twenty-one-a of this article upon the receipt of an application
28 with respect to a fuel gas transmission line that complies with section
29 one hundred twenty-two OF THIS ARTICLE, the commission shall promptly
30 fix a date for the commencement of a public hearing thereon not less
31 than twenty nor more than sixty days after such receipt. UPON THE
32 RECEIPT OF AN APPLICATION WITH RESPECT TO A CAPTURED CARBON TRANSMISSION
33 LINE THAT COMPLIES WITH SECTION ONE HUNDRED TWENTY-TWO OF THIS ARTICLE,
34 THE COMMISSION SHALL PROMPTLY FIX A DATE FOR THE COMMENCEMENT OF A
35 PUBLIC HEARING THEREON NOT LESS THAN SIXTY NOR MORE THAN NINETY DAYS
36 AFTER SUCH RECEIPT. The testimony presented at such hearing may be
37 presented in writing or orally, provided that the commission may make
38 rules designed to exclude repetitive, redundant or irrelevant testimony.
39 The commission shall make a record of all testimony in all contested
40 hearings.
41 S 3. Paragraph (e) of subdivision 1 of section 126 of the public
42 service law, as added by chapter 272 of the laws of 1970, is amended to
43 read as follows:
44 (e) in the case of a gas OR CAPTURED CARBON transmission line, that
45 the location of the line will not pose an undue hazard to persons or
46 property along the area traversed by the line;
47 S 4. The carbon capture and sequestration act is hereby enacted to
48 read as follows:
49 Carbon Capture and Sequestration Act
50 Section: 1. Short title.
51 2. Legislative findings.
52 3. Definitions.
53 4. Administration.
54 5. Powers and duties of the commissioner and the department.
55 6. Procedure for obtaining carbon sequestration lease.
56 7. Procedure for obtaining carbon sequestration permit.
S. 5971 3
1 8. Authority to acquire property.
2 9. Procedure for closure of carbon sequestration reservoir.
3 10. Ownership of captured carbon and reservoir pore space.
4 11. Imposition of fee for application for permit to drill,
5 deepen, plug back or convert a well.
6 S 1. Short title. This act shall be known and may be cited as the
7 "carbon capture and sequestration act."
8 S 2. Legislative findings. The legislature finds that the earth's
9 climate is changing as a result of global warming, due in part to emis-
10 sions of carbon dioxide and other greenhouse gases. The legislature
11 further finds that it is in the public interest to encourage the
12 research and development of technology to facilitate the capture, trans-
13 port and underground storage of carbon dioxide emissions from anthropo-
14 genic sources, and that the public health and the environment of the
15 state would be served by a carbon capture and sequestration demon-
16 stration project and the authorization and regulation of the siting and
17 operation of such a project.
18 S 3. Definitions. Terms used in this act shall have the same meaning
19 as defined in title 1 of article 23 of the environmental conservation
20 law, except that for purposes of this act:
21 1. "Buffer zone" means all that area outside and surrounding the
22 carbon sequestration reservoir which the department approves as appro-
23 priate to protect the integrity of such reservoir, no part of which
24 shall be more than 3,500 linear feet from the boundary of such reser-
25 voir.
26 2. "Captured carbon" means carbon dioxide in any state and associated
27 constituents which have been extracted from the emissions of an electric
28 generating facility or an industrial facility for the purpose of seques-
29 tration pursuant to this act.
30 3. "Carbon sequestration permit" means a permit to utilize and operate
31 a reservoir for carbon sequestration or modify a carbon sequestration
32 reservoir, which may include the injection of captured carbon into a
33 reservoir, and the observation and monitoring of the carbon sequestra-
34 tion reservoir and its buffer zone boundaries, as authorized in the
35 permit.
36 4. "Department" means the department of environmental conservation and
37 "commissioner" means the state commissioner of environmental conserva-
38 tion.
39 5. "Owner" means the person who possesses any well subject to this act
40 or who has the right to drill into and inject captured carbon into a
41 reservoir.
42 6. "Operator" means any person engaged in the business of drilling or
43 operating wells for the purpose of injecting captured carbon for storage
44 or utilizing and operating a reservoir for carbon sequestration.
45 7. "Reservoir" means any underground reservoir, natural or artificial
46 cavern, or geologic feature, formation or unit, whether or not previous-
47 ly occupied by or containing oil, gas or brine.
48 8. "Sequestration" or "carbon sequestration" means the long-term stor-
49 age of captured carbon in a reservoir.
50 9. "Waste" means:
51 (a) the inefficient, excessive or improper use of reservoir space; and
52 (b) the escape, release, seepage or migration of captured carbon from
53 a carbon sequestration reservoir.
54 S 4. Administration. 1. Except to the extent that the administration
55 of this act is specifically entrusted to other agencies or officers of
S. 5971 4
1 the state by its provisions, the administration of this act shall be by
2 the department.
3 2. The provisions of this act shall supersede all local laws or ordi-
4 nances relating to the regulation of carbon sequestration including any
5 pertaining to wells and storage reservoirs but shall not supersede local
6 government jurisdiction over local roads or the rights of local govern-
7 ments under the real property tax law.
8 S 5. Powers and duties of the commissioner and the department. In
9 addition to the powers specified in subdivisions 1 through 7 of section
10 23-0305 of the environmental conservation law, with respect to carbon
11 sequestration reservoirs the department shall have the power to:
12 1. Make such investigations or require an owner or operator to make
13 investigations as the department deems proper to determine whether waste
14 exists or is imminent.
15 2. Require identification of ownership of carbon sequestration leases,
16 wells and well sites, and any equipment such as structures, tanks, gath-
17 ering systems and facilities for the capture, collection, transporta-
18 tion, injection and sequestration of captured carbon.
19 3. Classify geologic reservoirs as carbon sequestration reservoirs and
20 buffer zones, including the delineation of boundaries of such reservoirs
21 and buffer zones, for purposes material to the interpretation or admin-
22 istration of this act.
23 4. Classify wells as injection, observation or monitoring wells.
24 5. Require the drilling, casing, operation and plugging of wells in
25 accordance with rules and regulations of the department in such a manner
26 as to prevent the loss or escape of captured carbon to the surface or to
27 other strata, the intrusion of water into the strata sequestering the
28 captured carbon, the pollution of fresh water supplies and other envi-
29 ronmental impacts.
30 6. Give notice or require an owner or operator to give notice to
31 persons engaging in mining operations of the commencement of any phase
32 of carbon sequestration which may affect the safety of such underground
33 mining operations or of the mining properties involved. Rules and regu-
34 lations of the department may specify the distance from such underground
35 mining operations within which such notice shall be given and shall
36 contain such other provisions as in the judgment of the department shall
37 be necessary in the interest of safety. The department shall not be
38 required to furnish any notice unless the person or persons engaged in
39 underground mining operations or having rights in mining properties have
40 notified the department of the existence and location of the underground
41 mining operations or properties.
42 7. Enter, take temporary possession of, plug or replug any abandoned
43 well as provided in the rules and regulations of the department, whenev-
44 er any owner or operator neglects or refuses to comply with the rules
45 and regulations. Any plugging or replugging by the department shall be
46 at the expense of the owner or operator whose duty it may be to plug the
47 well and the state of New York shall be held harmless for all accounts,
48 damages, costs and judgments arising from the plugging or replugging of
49 the well and the surface restoration of the affected land. Primary
50 liability for the expense of plugging or replugging and first recourse
51 for the recovery of expenses shall be to the operator unless a contract
52 for the working of the well shall place liability on the owner or on the
53 owner of another interest in the land on which the well is situated.
54 When an operator violates any provision of this act or any order issued
55 pursuant to this act in reference to plugging or replugging an abandoned
S. 5971 5
1 well, the operator may not transfer the operator's responsibility by
2 surrendering the lease.
3 8. Require the operator to furnish to the department, prior to the
4 commencement of drilling of any well, and to continuously maintain, a
5 bond acceptable to the department conditioned upon the performance of
6 the operator's plugging responsibilities with respect to the well. The
7 amount of financial security shall be determined by the department based
8 on a written plugging estimate provided by the operator and acceptable
9 to the department. Upon the approval of the department, in lieu of a
10 bond, the operator may deposit cash or negotiable bonds of the United
11 States government of like amount in an escrow account conditioned upon
12 the performance of the operator's plugging responsibilities with respect
13 to the well. Any interest accruing as a result of the escrow deposit
14 shall be the exclusive property of the operator. This bonding require-
15 ment shall remain the obligation of the original operator regardless of
16 changes in operators unless a subsequent operator has furnished the
17 appropriate bond or substitute acceptable to the department and approval
18 for the transfer of the well plugging responsibility to the subsequent
19 operator has been granted by the department. The failure of any operator
20 to maintain a bond or other acceptable financial security shall be
21 deemed a breach of plugging responsibilities and entitle the department
22 to claim the proceeds of the bond or other financial security. The cost
23 of plugging or replugging any well, where such action is necessary or
24 incident to the commencing or carrying on of storage operations pursuant
25 to this act shall be borne by the operator of the carbon sequestration
26 reservoir.
27 9. Require that every person who captures, transports, injects or
28 sequesters captured carbon in this state keep and maintain complete and
29 accurate records of the quantities of carbon captured, transported or
30 injected. True copies or duplicates shall be kept or made available for
31 examination within this state by the department or its agents at all
32 reasonable times and every person shall file with the department such
33 reports concerning collection, transportation, injection, storage or
34 sequestration on a form provided by the department or approved by the
35 department prior to submittal.
36 10. In addition to the powers provided for in titles 1, 3, 5 and 13 of
37 article 71 of the environmental conservation law, order an immediate
38 suspension of drilling, injection or sequestration operations whenever
39 such operations are being carried on in violation of this act or any
40 rule or regulation promulgated pursuant to article 23 of the environ-
41 mental conservation law or order issued pursuant thereto. Any order
42 issued pursuant to this subdivision may be reviewed upon application of
43 an aggrieved party by means of an order to show cause which order shall
44 be issued by any justice of the supreme court in the judicial district
45 in which any order applies and shall be returnable on the third succeed-
46 ing business day following the issuance of such order. Service of such
47 show cause order shall be made upon the regional office of the depart-
48 ment for the region in which such order applies, and upon the attorney
49 general by delivery of such order to an assistant attorney general at an
50 office of the attorney general in the county in which venue of the
51 proceeding is designated, or if there is no office of the attorney
52 general within such county, at the office of the attorney general near-
53 est such county. Except as specified in this subdivision, the proceeding
54 to review an order under this subdivision shall be governed by article
55 78 of the civil practice law and rules.
S. 5971 6
1 11. Require the immediate reporting of any non-routine incident
2 including but not limited to casing and drill pipe failures, casing
3 cement failures, fishing jobs, fires, seepages, blowouts and other inci-
4 dents during drilling, completion, injection, sequestration, plugging or
5 replugging operations, and monitoring or observation that may affect the
6 health, safety, welfare or property of any person. The department may
7 require the operator, or any agent thereof, to record any data which the
8 department believes may be of subsequent use for adequate evaluation of
9 a non-routine incident.
10 12. Require the taking and making of well logs, well samples, direc-
11 tional surveys and reports on well locations and elevations, drilling,
12 injection, sequestration, plugging or replugging operations and further
13 require their filing pursuant to the provisions of this act. Upon the
14 request of the state geologist, the department shall cause such dupli-
15 cate samples or copies of records and reports as may be required pursu-
16 ant to this act to be furnished to the state geologist.
17 13. Require the operator to furnish to the department, prior to the
18 commencement of any injection of captured carbon, and to continuously
19 maintain for a period specified by the department of at least ten years
20 following cessation of injection, a bond acceptable to the department
21 conditioned upon the performance of the operator's observation and moni-
22 toring responsibilities as specified in a carbon sequestration permit,
23 and to protect against pollution, invasion, or the escape, discharge,
24 seepage or migration of captured carbon. This bond shall be in addition
25 to any bond or financial security required in subdivision 8 of this
26 section for well plugging responsibilities.
27 S 6. Procedure for obtaining carbon sequestration lease. 1. The
28 department may make leases on behalf of the state for the exploration
29 and development of carbon sequestration reservoirs and the sequestration
30 of captured carbon in state-owned lands, upon such terms and conditions
31 including consideration as the department deems just and proper.
32 2. All carbon sequestration leases shall:
33 (a) Provide for payment to the agency having jurisdiction over the
34 leased lands of adequate and reasonable consideration;
35 (b) Be invalid unless they shall have the prior approval of such agen-
36 cy or the appropriate department, division or bureau thereof, having
37 jurisdiction over the land in question; and authority to give such
38 consent is hereby conferred upon the head of any such agency or the
39 appropriate department, or a division or bureau thereof, and with
40 respect to lands under water held by the state in its sovereign capaci-
41 ty, jurisdiction is deemed to be in the commissioner of general
42 services;
43 (c) Be inapplicable to any state park lands and to any lands the leas-
44 ing of which is prohibited by the state Constitution; and
45 (d) Contain such other terms and provisions as may be necessary or
46 appropriate to promote the purposes of this act and the public policy of
47 the state.
48 S 7. Procedure for obtaining carbon sequestration permit. 1. No
49 person shall utilize, operate or modify the capacity or boundaries of a
50 reservoir for the sequestration of captured carbon, or of a buffer zone,
51 unless such person has received from the department, after approval in
52 writing of the state geologist, a carbon sequestration permit. The
53 application for a carbon sequestration permit shall include the follow-
54 ing:
55 (a) A map showing the location, acreage and boundaries of the proposed
56 carbon sequestration reservoir and its buffer zone, the surface and
S. 5971 7
1 bottom hole locations of any well or wells proposed to be drilled into
2 the reservoir and buffer, the location of any existing wellbore or well-
3 bores in the proposed reservoir and buffer, and the location of any
4 abandoned or unplugged wells in the proposed reservoir and buffer,
5 regardless of well type or depth.
6 (b) A report containing sufficient engineering, geological, geophysi-
7 cal, observation, monitoring and operational data to show that the
8 reservoir and the buffer zone are adaptable and suitable for the seques-
9 tration of captured carbon.
10 (c) An affidavit signed by the prospective owner or operator to the
11 effect that the owner or operator has acquired by grant, lease or other
12 agreement at least 75 percent of the storage rights in the proposed
13 reservoir and in the buffer zone established to protect the reservoir as
14 approved by the department, calculated on the basis of surface acreage.
15 The affidavit shall also set forth that the applicant will agree as a
16 condition to the issuance of a permit that the applicant will, within a
17 reasonable time, either acquire by negotiation, or file and proceed with
18 condemnation proceedings to acquire, any outstanding storage and seques-
19 tration rights in the remaining portion of the reservoir and buffer zone
20 acreage.
21 (d) Any other information that the department may require.
22 2. No person shall commence operations to drill, deepen, plug back or
23 convert a well for use in the operation of a carbon sequestration reser-
24 voir unless such person has obtained a permit to drill from the depart-
25 ment. An application for a permit to drill shall be on forms prescribed
26 by the department.
27 3. The department shall grant an application for a carbon sequestra-
28 tion permit, and any application for a permit to drill, within 90 days
29 of application unless the department finds that the application and the
30 information submitted with it do not meet the requirements of this
31 section. The department may revoke or suspend any carbon sequestration
32 permit for failure to comply with any of its provisions or for failure
33 to comply with this section.
34 4. Every owner or operator shall file with the department on or before
35 March 31 of each year, a report for the prior period on the status of
36 each carbon sequestration reservoir and buffer zone, and the present
37 limits of any sequestered or injected captured carbon. The report shall
38 be on a form prescribed by the department and shall include at least the
39 following:
40 (a) The size in surface acreage or shape of the reservoir and the
41 buffer zone;
42 (b) An estimate of total capacity of the reservoir; and
43 (c) Any other engineering, geological, geophysical, observation, moni-
44 toring, or operational data that the department may request.
45 5. The applicant for a carbon sequestration permit shall submit with
46 the application the following fees:
47 (a) For a new carbon sequestration reservoir: $10,000.
48 (b) For a modification of the capacity or boundaries of an existing
49 carbon sequestration reservoir: $5,000.
50 6. No permit issued under this section and no provision of this act
51 shall be construed to diminish or impair the jurisdiction of the state
52 public service commission with respect to regulation of the manufacture,
53 collection, capture or transportation of captured carbon.
54 S 8. Authority to acquire property. 1. Any owner or operator
55 empowered to capture, transport, inject, store or sequester captured
56 carbon within this state for ultimate public use or benefit, which holds
S. 5971 8
1 a carbon sequestration permit from the department, and which after
2 reasonable effort is unable to obtain rights in real property and wells
3 thereon necessary for activation, including siting of any pipeline with-
4 in and outside the carbon sequestration reservoir and buffer zone, oper-
5 ation, or protection of the carbon sequestration reservoir and its buff-
6 er zone shall, subject to the applicable provisions of the eminent
7 domain procedure law, have the authority to acquire such rights as may
8 be required adequately to examine, prepare, maintain, operate and
9 protect, and for access to such reservoir and its buffer zone; provided
10 that no right of acquisition under this section shall extend to any
11 lands or interests therein which have been acquired, or, in the hands of
12 the present holder, could have been acquired by acquisition; and,
13 provided further, that any acquisition of cemetery lands or burial
14 grounds shall be in the sound discretion of the court and with due
15 provision for the relocation of human remains.
16 2. Owners or operators authorized by this section to maintain acquisi-
17 tion proceedings before filing a suit for such acquisition shall have
18 filed with the department a map showing the location, boundaries and
19 size of surface acreage of the carbon sequestration reservoir and its
20 buffer zone.
21 3. Any owner or operator of a carbon sequestration reservoir who at
22 any time controls less than 100 percent of the rights within that reser-
23 voir and its buffer zone and is authorized by this section to maintain a
24 proceeding shall acquire the rights remaining in the reservoir and its
25 buffer zone acreage and rights needed for pipeline siting by negotiation
26 or file and proceed with acquisition proceedings within a reasonable
27 time but not to exceed a 2 year period after the first injection of
28 captured carbon, or within any extension granted by the department.
29 4. Any owner or operator who seeks to acquire rights as authorized by
30 this section shall name as parties defendant all the owners of all the
31 parcels of property located within the boundaries of the reservoir and
32 its buffer zone from whom storage and sequestration rights have not
33 previously been legally acquired by grant, lease, or other voluntary
34 agreement; provided, however, that a failure to join the owners of any
35 parcel in the reservoir and its buffer zone due to inadvertence shall
36 not constitute a jurisdictional defect in any proceeding of acquisition.
37 5. Except for lands needed for any pipeline siting which are located
38 outside the boundaries of the reservoir and its buffer zone, the value
39 of any property acquired pursuant to this section shall include the
40 value of any commercially recoverable native oil and gas in place to the
41 extent that the holder of the property interest being acquired has a
42 right thereto. The same provision shall apply to the holder of salt
43 rights.
44 6. The cost of, or possible necessity for, plugging any well or wells,
45 when such plugging or replugging is or may be made necessary by reason
46 of the storage use made possible or facilitated by acquisition shall not
47 be considered in computing the value of property or any interest therein
48 taken under this section.
49 S 9. Procedure for closure of carbon sequestration reservoir. 1. In
50 connection with the closure of any carbon sequestration reservoir for
51 which a permit has been granted pursuant to this act or in connection
52 with the revocation of any such permit, the owner or operator is respon-
53 sible for placing the premises in a condition which, to the extent prac-
54 ticable, assures the continuance of the premises in a condition which
55 does not constitute a menace to the present or future health, safety or
56 welfare of persons, or safety or value of property. In case the owner or
S. 5971 9
1 operator shall fail to put the premises in a satisfactory condition
2 prior to any such closure or immediately upon revocation of a permit,
3 the department may do or cause to be done all things necessary to place
4 the premises in satisfactory condition and the owner and operator shall
5 be liable for the cost.
6 2. The owner or operator shall monitor the premises and the carbon
7 sequestration reservoir, through utilization of observation and monitor-
8 ing wells and by other appropriate means, for a period specified by the
9 department of at least ten years following the cessation of injection.
10 S 10. Ownership of captured carbon and reservoir pore space. 1. All
11 captured carbon which has previously been reduced to possession, and
12 which is lawfully injected into a carbon sequestration reservoir, shall
13 be deemed the property of the operator, the operator's heirs, successors
14 or assigns. The operator, the operator's heirs, successors or assigns
15 shall have no right to reserves of native gas or oil remaining in any
16 stratum or portion thereof which have not been condemned hereunder or
17 otherwise acquired by such operator, operator's heirs, successors or
18 assigns. Nothing contained in this subdivision shall be construed to
19 confer on any owner or operator any storage or sequestration rights not
20 otherwise acquired or held by the owner or operator.
21 2. No production lease shall be construed to include rights to seques-
22 ter captured carbon unless the lease includes a provision granting such
23 storage rights.
24 3. The ownership of all pore space in all strata below the surface
25 lands and waters of this state is declared to be vested in the several
26 owners of the surface lands above the strata.
27 S 11. Imposition of fee for application for permit to drill, deepen,
28 plug back or convert a well. When a person files an application for a
29 permit to drill a well or converts a well to one subject to this act,
30 the person shall pay to the department a fee of $3,000, provided that
31 for any application to plug back or deepen a well previously permitted
32 by the department pursuant to this act, the person shall pay to the
33 department a fee of $1,000.
34 S 5. This act shall take effect immediately and shall only apply to a
35 municipally-owned electric generating facility that has submitted a
36 complete application to the department of environmental conservation by
37 December 31, 2010.
