SB 15 — Strengthening protections for certain natural resource interests affected by carbon capture and underground carbon storage projects

SB15 SFASFAT Rose 1-22Kraus1-23Kraus  7502 Senator Rose moved to amend the bill by striking out everythingthe aftertitle theand enactingsubstituting clausetherefor anda insertingnew intitle, lieuto thereofread theas following:follows:Eng.

articleCom. 11B.

undergroundSub. carbon dioxide sequestration and storage.

§22-11B-4.for Senate Bill 15—A BILL to amend and reenact §22-11B-4 of the Code of West Virginia, 1931, as amended, relating to strengthening protections for coal and oil and natural gas interests affected by carbon capture and underground carbon storage projects;

Permitmodifying permit application requirementsapproval and contents;issuance criteria;

authorizing objections to be filed regarding certain application fee;criteria;

requiredand findings;requiring certain response to objection by permit applicant.     AdoptedRejected

and rulemaking.

(a) Every permit application filed under this article shall be on a form as may be prescribed by the secretary, shall be verified, and shall contain all information specified by legislative rule.(b) Upon filing an application for a permit, an applicant shall:(1) Pay a fee in an amount set by the secretary.

The amount of the fee shall be set by rule and shall be based on the secretary’s anticipated cost of processing applications for permits, orders, or determinations under this article.

The fee shall be deposited in the Carbon Dioxide Storage Facility Administrative Fund;

and(2) Pay to the secretary the costs the secretary incurs in publishing notices of applications and notices for hearings on applications submitted under this article.(c) Before a permit application may be approved, the secretary shall determine whether the proposed storage facility contains commercially valuable minerals and, if it does, a permit may be issued only if the secretary is satisfied that the interests of the mineral owners or mineral lessees will not be adversely affected or have been addressed in an written agreement entered into by the mineral owners, mineral lessees, and the storage operator require that the applicant design a carbon sequestration or storage facility to isolate the nearby commercially valuable mineral, including the coal or oil and gas estate and oil and gas storage operations, from the facility’s carbon dioxide plume and to ensure existing or future development or storage of such commercially valuable mineral will not be adversely affected.

 (1) The carbon sequestration or storage facility permit application shall indicate whether the area within the proposed boundaries of the storage facility and the contiguous area to the proposed boundaries of the storage facility, including the other subsurface horizons above and below the storage facility, contains any commercially valuable mineral, including any coal or oil and gas estate or oil and gas storage field.

 If it does, a permit may be issued only if the department is satisfied that the interests of the mineral owners, mineral lessees, and storage operators of the commercially valuable mineral estate will not be adversely affected.

 (2) The application shall include evidence that the applicant has provided notice of the proposed carbon sequestration or storage facility to the other pore space owners and pore space lessees within the storage facility, and to the mineral owners, mineral lessees, and operators of any commercially valuable mineral, including storage operators of any oil and gas, within any strata within the storage facility’s proposed boundaries and contiguous to the boundaries of the storage facility.

The notice shall be in writing, include information regarding the application, boundaries, and storage horizons for the facility, and include a copy of the notice of the hearing.

(3) The pore space owners and lessees, if not the applicant, mineral owners, mineral lessees, and operators of a commercially valuable mineral, including storage operators of any oil and gas, may submit an objection to the department regarding the design of a carbon sequestration or storage facility based on the potential adverse effect to the commercially valuable mineral.

The applicant shall address the objection to the department’s satisfaction before proceeding with the application process.

 (d) No permit shall A permit may not be issued under this article unless the secretary finds that:(1) That The application and the proposed operations comply with all requirements established by the secretary, including any applicable underground injection rules, and with all applicable provisions of state and federal law;(2) That The storage facility is suitable and feasible for carbon dioxide injection and sequestration;(3) That the storage operator The applicant has made a good-faith effort to obtain the consent of all persons who own or lease the storage reservoir’s pore space and(4) That The storage operator has obtained the written consent of persons who own at least 75 percent of the storage reservoir’s pore space;(4) The applicant has attempted in good faith and have at least begun the process to obtain the remaining nonconsenting interests through the commission;(5) That The proposed storage facility will not adversely affect surface waters or formations containing fresh water;(6) That The storage facility will not unduly endanger human health or the environment;(7) That Adequate horizontal and vertical boundaries of the storage reservoir are defined, including buffer areas, to ensure that the storage facility is operated safely and prudently;(8) That The storage operator will establish monitoring facilities and protocols to assess the location and migration of carbon dioxide injected for storage and to ensure compliance with all permit, statutory, and administrative requirements;(9) That All nonconsenting pore space owners and lessees are or will be justly and reasonably compensated in accordance with the rules and procedures set forth in or promulgated under this article by the secretary and the commission;

and(10) That The storage facility is in the public interest;

and(11) Adequate notice has been provided to the pore space owners and lessees, if not the applicant, mineral owners, mineral lessees, and operators of any commercially valuable mineral, including storage operators of any oil and gas, within the proposed boundaries of the storage facility and the contiguous area to the proposed boundaries of the storage facility, including the other subsurface horizons above and below the storage facility.(e) To the extent not inconsistent with state and federal regulations, the secretary shall render a decision on a permit application within one year after submission of a complete application.(f) The secretary shall propose rules for legislative approval, pursuant to the provisions of §29A-3-1 et seq.

of this code, detailing additional requirements for inclusion in a permit application, such as:(1) Site characterization requirements;(2) Injection well construction requirements for materials that are compatible with and can withstand contact with carbon dioxide over the life of a carbon dioxide sequestration project facility;(3) Well operation requirements;(4) Comprehensive monitoring requirements that address all aspects of well integrity, carbon dioxide injection and storage, as well as air and ground water quality during the injection operation and the post-injection site care period;(5) Financial responsibility requirements assuring the availability of funds for the life of a carbon dioxide sequestration project or storage facility, including post-injection site care and emergency response;

and(6) Reporting and recordkeeping requirements that provide project-specific facility-specific information to continually evaluate the site operations and confirm environmental protection.  AdoptedRejected