in-20260610-IR-312250702FRA: CARBON SEQUESTRATION PROJECTS

TITLE 312 NATURAL RESOURCES COMMISSION Final Rule LSA Document #25-702 DIGEST CARBON SEQUESTRATION PROJECTS Adds 312 IAC 30-5.5 and 312 IAC 30-9 concerning permanent underground carbon dioxide storage, including involuntary integration and certificates of project completion. Effective 30 days after filing with the publisher. HISTORY 60 Day Requirement: 20230906-IR-312230649ARA Notice of First Public Comment Period: 20251210-IR-312250702FNA Regulatory Analysis submitted with Notice of First Public Comment Period: 20251210-IR-312250702RAA Date of First Hearing: January 14, 2026 Notice of Second Public Comment Period: 20260211-IR-312250702SNA Date of Second Hearing: March 16, 2026 CITATIONS AFFECTED: 312 IAC 30-5.5; 312 IAC 30-9 SUMMARY/RESPONSE TO COMMENTS The Natural Resources Commission (commission), in coordination with the Department of Natural Resources (department), requested public comment from December 10, 2025, through January 14, 2026, and from February 11, 2026, through March 16, 2026, and during the public hearings on January 14, 2026, and March 16, 2026. The comments received and the responses to the comments by the commission, in coordination with the department, are summarized as follows: Comments were received regarding general support and opposition to the proposed permanent rules. Response: IC 14-39-0.5 establishes a duty for the commission to adopt rules under IC 4-22-2 to implement IC 14-39. Use of the term “shall” in the Indiana Code means that the person is required to do as the Indiana Code directs. Additionally, the rules “must include the provisions necessary to the department's discharge of the duties imposed upon the department under” IC 14-39. The department is responsible for issuing involuntary integration orders under IC 14-39-2-4 and certificates of project completion under IC 14-39-2-13. The commission, in coordination with the department, is performing its duties under the Indiana Code by adopting the proposed permanent rules. Comments were received regarding the constitutionality of involuntary integration. Response: Involuntary integration is often used in oil and gas and has historically been used in the same way as presented in the proposed permanent rules. An unconstitutional taking occurs when private property is taken without just compensation. The proposed permanent rules provide an opportunity for nonconsenting pore space owners to present relevant evidence that the equitable compensation determination made by the department is unfair and should be reconsidered. Additionally, any party that is unhappy with the outcome may file a claim under IC 4-21.5 and have the determination heard before an administrative law judge with the Office of Administrative Law Proceedings. Comments were received regarding the petitioner for an involuntary integration order obtaining seventy percent (70%) of the pore space voluntarily, what seventy percent (70%) voluntary participation looks like, how the department makes certain determinations regarding the requirements for involuntary integration, who is required to be notified of the petition for an involuntary integration order, verifying that the required percentage is obtained, and recording the involuntary integration order and publicly disclosing voluntary pore space owners. Response: Under IC 14-39-2-4, a petitioner has the option of involuntary integration to obtain the pore space necessary for a carbon sequestration project. Involuntary integration is not a requirement placed upon a storage operator, but an optional method by which to obtain the property necessary for the petitioner's carbon sequestration project. This is a common practice in oil and gas under what is commonly referred to as the correlative rights doctrine. The correlative rights doctrine is a principle for shared resources that limits each landowner to a reasonable proportional share to prevent waste and ensure fairness. The idea is to balance individual property rights with an interest in sustainable management to prevent wasted resources. Some examples of this doctrine include California water law and oil and gas. Involuntary integration is seen across states that have adopted laws or regulations regarding carbon sequestration projects. The terms unitization and forced pooling refer to the same principle. A petitioner must meet certain requirements to be issued an involuntary integration order by the department. First, there must be at least two (2) pore space owners located within a proposed carbon dioxide storage area of a storage facility. A storage facility is defined as “the subsurface area consisting of the extent of a carbon dioxide plume which is required to be delineated on an approved UIC Class VI permit or an amendment to a UIC Class VI permit of a storage operator.” To issue an involuntary integration order, the department has a duty to make the following findings: (1) The storage operator filed a complete application for a UIC Class VI permit or a complete application for an amended UIC Class VI permit; (2) The storage operator submitted all the necessary information for the Environmental Protection Agency to process the storage operator's permit application; (3) The storage operator made a good faith effort to obtain the consent of all pore space owners located within the proposed storage facility; (4) The storage operator obtained the consent of the owners of the pore space underlying at least seventy percent (70%) of the surface area above the proposed storage facility or amended proposed storage facility; and (5) That all pore space owners who do not agree to integrate their interests to develop pore space as a proposed storage facility are equitably compensated. Pore space is defined as “subsurface cavities or voids that can be used as a storage space for carbon dioxide.” The pore space acquired under an involuntary integration order would be the pore space contained within the proposed storage facility or amended proposed storage facility. The good faith doctrine is a common legal principle regarding the reasonable efforts made by a person. The petitioner for an involuntary integration order is required to show the petitioner acted in good faith to obtain consent from the nonconsenting landowners in the proposed storage facility or amended proposed storage facility. Under 312 IAC 30-5.5-1, the petitioners must submit “(2) Documentary evidence the petitioner obtained consent from the pore space owners underlying at least seventy percent (70%) of the surface area above the proposed storage facility, including the following: A petitioner must have at least seventy percent (70%) voluntary participation before they can apply for the involuntary integration order. Taking one hundred percent (100%) of the pore space the petitioner needs for the project, at least seventy percent (70%) of that pore space must be obtained voluntarily. The department will collect the evidence listed under subdivisions (2) and (3) above and determine whether the petitioner acted in good faith to obtain consent from all pore space owners. After the involuntary integration order is issued, if the carbon dioxide migrates, additional property that was not contained in the original petition becomes part of the storage facility, and the pore space owners of the additional property are nonconsenting, the petitioner must file for an amended involuntary integration order and provide equitable compensation for the property added to the storage facility. The petitioner may not inject, without receiving violations, without the amended involuntary integration order. The same process and appeals under IC 4-21.5 are in place for an amended involuntary integration order. If the petitioner at any point dips below the seventy percent (70%) threshold for voluntary participation, the petitioner would be in violation and would be required to immediately cease injection until an amended involuntary integration order could be obtained and new nonconsenting pore space is equitably compensated for. 312 IAC 30-5.5-1(a)(6) and 312 IAC 30-5.5-1(a)(7) contain requirements of the petitioner regarding identifying consenting and nonconsenting pore space owners and providing that information to the department. 312 IAC 30-5.5-2 contains the information for notice to affected pore space owners. IC 14-39-2-4(d) explicitly states “A right to pore space granted by this section does not confer a right to enter upon, or otherwise use, the surface of the land which is integrated under this section unless provided in an order requiring the owners to integrate their interest to develop the pore space as a proposed storage facility for the underground storage of carbon dioxide.”. IC 14-39-2-4(e) establishes the effective date of an involuntary integration order: “fifteen (15) days after the applicant is issued a UIC Class VI permit or an amended UIC Class VI permit, as applicable.”. 312 IAC 30-5.5-1(a) provides requirements of information that must be provided by the petitioner for an involuntary integration order. Any information provided by a petitioner is subject to confidentiality provisions contained under IC 14-39, protections for businesses under the Indiana Code, and IC 5-14-3 regarding access to public records. Finally, under 312 IAC 30-5.5-9, a petitioner who obtains an involuntary integration order has a duty to record the order for each property for which the involuntary integration order was obtained, and in each county in which the involuntary integration order was obtained. The petitioner has the duty to pay the cost of recording the order. Comments were received regarding nullifying an involuntary integration order after one (1) year. Response: 312 IAC 30-5.5-7 contains provisions for the expiration and restoration of rights to the pore space owner. Under subsection (a), “An involuntary integration order issued by the department expires five (5) years after issuance if the activity authorized by the order has not started. The department may grant an extension of one (1) year if good cause is shown by the petitioner for failing to start the activity authorized by the involuntary integration order.”. Five (5) years was found to be a reasonable length of time prior to the pore space rights reverting to the pore space owner. Money already paid to a pore space owner would not be required to be paid back, however future payments stop. Comments were received regarding allowing pore space owners to set their own prices for their property. Response: The department is required to weigh the interests of the pore space owners with the interest of the petitioner; therefore, it would not be appropriate to have a provision in the rules that would allow pore space owners to set the prices for use of the pore space. Pore space owners may choose to negotiate prices with the petitioner, but in a situation where the department is potentially issuing an involuntary integration order, the interests of both parties must be weighed. If a nonconsenting pore space owner disagrees with an equitable compensation determination made by the department, there is an informal hearing process and then the nonconsenting pore space owner may file a claim for review and appeal of the determination under IC 4-21.5 and have the determination heard before an administrative law judge with the Office of Administrative Law Proceedings. Comments were received regarding the rules lacking protection for landowners and the department paying attorneys for nonconsenting pore space owners. Response: The process laid out for the initial equitable compensation determination by the department, informal hearing process, and formal administrative hearing process under IC 4-21.5 provide due process to a nonconsenting pore space owner. The rules also provide expiration dates, deadlines to begin injection, and reversion of rights to the pore space back to the pore space owner. The department believes these provide adequate protection associated with involuntary integration. The demands that the department pay for attorneys for nonconsenting pore space owners are inappropriate. A petitioner is not required to use involuntary integration to obtain pore space. Involuntary integration is simply a tool to obtain the pore space as needed for a carbon sequestration project. A petitioner and nonconsenting pore space owners may enter contracts to ensure voluntary participation. The department's role is to execute the provisions of IC 14-39 and the rules adopted under 312 IAC 30. It would be inappropriate for the rules to favor one (1) party to an involuntary integration order over another. Comments were received regarding requiring nonconsenting pore space owners to provide the department with “credible supporting evidence” that the equitable compensation determination by the department is unfair, rather than simply disagreeing with the determination, and the petitioner should be allowed to submit recommendations concerning equitable compensation. Response: A nonconsenting pore space owner may file a claim under IC 4-21.5 because the nonconsenting pore space owner simply disagrees with the equitable compensation determination. The proposed permanent rules provide an additional opportunity for resolution prior to going before an administrative law judge with the Office of Administrative Law Proceeding. This process is common in oil and gas in Indiana and provides reasonable due process to nonconsenting pore space owners who object to being integrated via the involuntary integration order. Comments were received regarding changing the timing of paying nonconsenting pore space owners for the use of their property. Response: A nonconsenting pore space owner may enter into a contract with the petitioner for a different payment scheme; however, it was determined that, because the nonconsenting pore space owner did not wish to be included in the pore space, payment should be made to them up front with the option of a different payment scheme via contract if the nonconsenting pore space owner agrees. This payment method was deemed fair considering the circumstances of involuntary integration. Comments were received regarding changing the time the department has to make a completeness determination, putting deadlines on the department to issue or deny an involuntary integration order if relevant evidence isn't submitted by a nonconsenting pore space owner, increasing the time nonconsenting pore space owners have to respond, and providing extensions. Response: All timelines contained in the Indiana Code were deemed reasonable by the Indiana General Assembly. Timelines contained in the proposed permanent rules were deemed reasonable by department staff. Any timelines associated with review and appeal of determinations made by the department were deemed reasonable by the Indiana General Assembly under IC 4-21.5 and by the Office of Administrative Law Proceedings in rules adopted under 41 IAC. Comments were made regarding the addition of surface access rights. Response: It was determined that there were concerns with granting surface access rights and unconstitutional takings; therefore, surface access rights are not included. Comments were received regarding establishing by rule the reasons for granting or denying a petition for integration. Response: IC 14-39-2-4 and 312 IAC 30-5.5-1 contain the requirements of a petition for an involuntary integration order. If a petitioner does not meet the requirements, an involuntary integration order will be denied. If the requirements of an involuntary integration order are met, the department may grant the petition. Any determination made under IC 14-39-2-4 or 312 IAC 30-5.5 are subject to review and appeal under IC 4-21.5. Comments were made regarding placing a specific right to appeal under 312 IAC 30-5.5-3. Response: July 1, 2025, the division of hearings for the commission was dissolved and the department and the commission fall under the jurisdiction of the Office of Administrative Law Proceedings. All determinations of the department are subject to review and appeal under IC 4-21.5. This protects due process rights. Comments were received regarding modifying the section requiring a petitioner to show sufficient funds to provide equitable compensation to clarify what kind of documentary evidence satisfies the requirement. Response: 312 IAC 30-5.5-1(a)(11) states a petitioner must provide “Documentary evidence showing the petitioner has sufficient funds to provide equitable compensation to a pore space owner not included under subdivision (8)”, or “A copy of: regarding the compensation paid to, or agreed to be paid to, a consenting pore space owner within the storage facility.”. This requirement was drafted to encompass any financial document that has already been provided if the document satisfies the requirement. Comments were received regarding the timing of issuing an involuntary integration order vs. a Class VI permit from the Environmental Protection Agency. Response: A UIC Class VI permit is one (1) permit. The permit to construct and operate is issued and then the storage operator receives an authorization to inject on the permit to construct and operate upon submitting the required information to the Environmental Protection Agency. An involuntary integration order is effective fifteen (15) days after the petitioner is issued the UIC Class VI permit or amended UIC Class VI permit (IC 14-39-2-4(e)). UIC Class VI permit is defined as “a permit issued under the federal Safe Drinking Water Act's Underground Injection Control program that allows: Comments were received regarding a tracking system for the public for involuntary integration orders. Response: The department will follow the same procedures used currently for oil and gas regarding involuntary integration. Information will be publicly disclosed in compliance with the Indiana Code and rules adopted by the department. Comments were received regarding the location of the informal hearing for an involuntary integration order and use of the term “reasonable distance”. Response: It is possible that an involuntary integration order could include multiple towns, cities, or counties. As a result, holding the hearing a reasonable distance from the proposed storage facility provides the department with necessary flexibility to ensure that the location of the informal hearing provides necessary capacity, infrastructure, equipment, and other needs to hold an informal hearing. Comments were made regarding the specific words or terms used and wanting those words and terms to be changed. Response: The requested changes to words or terms used in the proposed permanent rules are not considered substantive requested changes because the change would not change the plain meaning of the terms currently included in the proposed permanent rules; therefore, the department does not believe changes are needed. Comments were made regarding the requirement to not include pore space that is included in another involuntary integration order issued by the department. Response: A petitioner would be required to ensure that the petition filed with the department does not contain pore space included in another involuntary integration order. The department would verify that the pore space is not included in another involuntary integration order. Comments were made regarding using contractual terms in the rules and forcing certain requirements on a petitioner for an involuntary integration order regarding the timing associated with their business decisions. Response: Article 1, Section 24 of the Indiana Constitution explicitly states: “No ex post facto law, or law impairing the obligation of contracts, shall ever be passed.” Administrative Rules are a supplement to the Indiana Code, and executive branch agencies do not have authority to adopt rules beyond the scope of laws passed by the Indiana General Assembly. If the Indiana General Assembly is forbidden from impairing the obligation of contracts under the Indiana Constitution, the department, as an executive branch agency, would not be permitted to adopt rules that could impair the obligation of contracts. Additionally, rules that would regulate the business decisions of private businesses would be outside of the scope of IC 14-39. The department is not permitted to make those types of determinations. Comments were made regarding changing when an involuntary integration order is effective. Response: The effective date of the involuntary integration order is under IC 14-39-2-4 and was established by the Indiana General Assembly. The department may not change this effective date. Comments were made regarding the division of reclamation making the determination of equitable compensation vs. the department making the determination. Response: The informal hearing will occur before the division of reclamation, and the division of reclamation will be issuing the involuntary integration order. Therefore, it was determined the division of reclamation should make the determination of equitable compensation. Comments were received regarding the state taking on long-term liability for carbon sequestration in the state. Response: Under IC 14-39-2-13(d), once the state issues a certificate of project completion, the following occurs: (e) The state may: a storage facility with respect to which an interest in or rights to property are conveyed by a lease agreement only if the lessor and lessee agree in the lease agreement to transfer the storage facility to the state. In a transfer described in this subsection, the state assumes ownership of and responsibility for the storage facility only and does not assume any other ownership interest, responsibility, or liability under any other provisions of the lease agreement.” The requirement for the state to take on long-term liability is statutory. Additionally, this is a common practice among states that have carbon sequestration programs. Comments were received regarding the rules being drafted in a rush, questioning the timing of the public hearing, and criticizing the department for not giving citizens enough time to learn about carbon sequestration. Response: The department began drafting the proposed permanent rules in May of 2023. The proposed permanent rules were reviewed multiple times by the Office of Management and Budget and the State Budget Agency, and changes were made resulting from feedback received. The proposed permanent rules were approved by the Budget Committee, and the department sought feedback from the Office of the Attorney General prior to submitting the first public comment period and first public hearing. The first legislation regarding this topic was passed in 2011. Additional legislation passed in 2019, 2022, 2023, 2024, and 2025, and the first Administrative Rules for carbon sequestration projects went through the complete rulemaking process during the 2025 calendar year. The commission, in coordination with the department, has historically provided additional days to at least one (1) public comment period than is required by the Indiana Code, and every statutory requirement for the rulemaking process has been met by the commission, in coordination with the department. There has been ample time provided for review and education by the Indiana General Assembly and the commission, in coordination with the department. Comments were received outside the scope of the proposed permanent rules to which the commission, in coordination with the department did not respond. Response: The proposed rule does not contain the following topics: (1) whether carbon sequestration projects should be allowed in Indiana; (2) safety concerns for carbon sequestration projects; (3) federal tax credits associated with carbon sequestration projects; (4) information or requested regulations regarding specific projects; (5) the July 15, 2025 commission meeting; (6) regulations for protecting underground sources of drinking water; (7) comments about a court case in North Dakota; (8) comments about Senate Bill 7 and Senate Bill 260 from the 2026 Legislative Session; (9) comments about eminent domain; (10) comments about an alternative to carbon sequestration projects; (11) comments about issues that arose with projects in other states; (12) comments about zoning and home rule; (13) comments about real estate law and what a landowner owns; (14) comments regarding monitoring and reporting requirements for carbon sequestration projects; (15) comments criticizing the department, whether the department is the proper agency to draft the rules, and criticizing the qualifications of department employees; (16) requests that department staff and commission members go to each county to discuss proposed projects with the citizens; (17) the seismic testing requirements for carbon sequestration projects; (18) federal and local requirements for carbon sequestration projects; (19) whether there should be another hearing regarding the rules; (20) comments about Governor Braun and Director Morrison; (21) comments about abandoned oil and gas wells; (22) comments about the feasibility of carbon sequestration projects; (23) the function of the legislative vs. the executive branches of government under the Indiana Constitution; (24) comments regarding the rulemaking process in Indiana and what is required of executive agencies in rulemaking; (25) the difference between rules and laws; (26) when injection of carbon dioxide may occur; (27) the location and publication of public hearings; and (28) threats to the department and the State of Indiana. EXPLANATION OF DIFFERENCES IN FINAL RULE No substantive changes were made to the final rule following either the first public comment period and public hearing or the second public comment period and public hearing. FINAL RULE Sec. 1. (a) If all the owners of pore space located within a proposed carbon dioxide storage area of a storage facility do not agree to voluntarily integrate their interests in the pore space under IC 14-39-2-4, a responsible officer who is an applicant for UIC Class VI permit with the United States Environmental Protection Agency (U.S. EPA) may petition the department for an involuntary integration order requiring the pore space owners to integrate their interests to develop the pore space as a proposed storage facility. A petition for involuntary integration must include the following: (b) A petitioner may not include in the petition pore space included in another involuntary integration order issued by the department. Sec. 2. (a) Not later than fourteen (14) days after the department notifies the petitioner under section 3 of this rule that a petition for an involuntary integration order is deemed complete, the petitioner shall provide notice of the petition by first class mail to inform each pore space owner included in the proposed storage facility of the petition for an involuntary integration order. (b) A notice under subsection (a) must include the following: (c) The petitioner shall provide proof that the notices required under this section were delivered before the department may establish the required deadline under subsection (d)(1) and evaluate the evidence submitted under subsection (d)(2). (d) The department shall: (e) At any time before the expiration of the deadline set by the department under subsection (d)(1), a pore space owner subject to the deadline may request one (1) extension of not more than sixty (60) days to present relevant evidence regarding the fair market value of the pore space to the department. The department shall grant a timely request made under this subsection. (f) The department shall not consider the information submitted by a nonconsenting pore space owner if the nonconsenting pore space owner does not submit the required information by the deadline under subsection (d)(1), or an extension under subsection (e). Sec. 3. (a) Not later than ninety (90) days after receiving a petition for an involuntary integration order, the department shall notify the petitioner whether the petition for an involuntary integration order is complete or incomplete. (b) If the department notifies the petitioner that the petition is incomplete, the department shall provide the petitioner with a list of deficiencies in the petition. (c) The department shall give the petitioner the opportunity to remedy the deficiencies. (d) If a nonconsenting pore space owner does not submit relevant evidence before the deadline set by the department or an extension requested, or both, under section 2 of this rule, the department shall: not later than forty (40) days after receiving a complete petition for an involuntary integration order. (e) If a nonconsenting pore space owner submits relevant evidence or requests an extension, or both, under section 2 of this rule, the department shall: not later than seventy (70) days after receiving a complete petition for an involuntary integration order and relevant evidence submitted. (f) The department shall notify the pore space owners within the proposed storage facility in writing by first class mail that the involuntary integration order is: not later than thirty (30) days after the determination is made. (g) If a petitioner submitted an application for a UIC Class VI permit and the U.S. EPA determines the application contains all the information required to process the application, the involuntary integration order is effective fifteen (15) days after the UIC Class VI permit is issued by the U.S. EPA. (h) The department shall review an issued involuntary integration order that is not effective under subsection (g) annually. If at least two (2) years have passed since the involuntary integration order was issued and: the department may order the petitioner to show good cause for failing to pursue, or be issued, the UIC Class VI permit. If good cause is not shown, the department may revoke the involuntary integration order. (i) An involuntary integration order must include the following findings: (j) If a pore space owner subject to an involuntary integration order: the pore space to another person after an involuntary integration order is issued, the other person becomes subject to the integration order unless the pore space rights are restored to the current pore space owner. (k) On the date an involuntary integration order becomes effective, the following occur: (l) The petitioner shall hold equitable compensation for a pore space owner that is unknown or unlocatable in trust, in an interest-bearing account, for three (3) calendar years after December 31 of the calendar year the petitioner was required to begin making payments under subsection (k). (m) If the funds held under subsection (l) remain unclaimed after the period of three (3) calendar years under subsection (l), the storage operator shall transfer the funds as unclaimed property to the state under IC 32-34-1.5. Sec. 4. (a) The division of reclamation shall make a determination of equitable compensation based on the weighted average of consideration paid to consenting pore space owners in the same project, weighted by each consenting pore space owner's percent of pore space. A determination under this section excludes other compensation for grants of additional property or other associated rights for the same project for the consenting pore space owner's proportionate share of the storage facility at the time the petition is filed and includes the determination in the notice to affected pore space owners under section 2 of this rule. (b) If a nonconsenting pore space owner disagrees with the determination of the division of reclamation under subsection (a), the division shall schedule an informal hearing on the petition for involuntary integration not later than sixty (60) days after receiving the information under sections 1 and 2 of this rule. (c) The division shall consider relevant evidence submitted timely under section 2 of this rule by a nonconsenting pore space owner regarding whether the equitable compensation determined under this section should be adjusted. (d) An informal hearing scheduled by the division under this section must be held in a location a reasonable distance from the proposed storage facility. Department employees will hear the relevant evidence presented. (e) An involuntary integration order issued by the department must include the findings: (f) An involuntary integration order does not alter agreed compensation or contractual terms between the petitioner and a consenting pore space owner. (g) A determination under this section is subject to review and appeal under IC 4-21.5. Sec. 5. (a) The department may not issue an involuntary integration order for the rights to pore space that have an existing, valid integration order. (b) If the department receives multiple petitions for an involuntary integration order requesting integrating the same or overlapping pore space, the department may defer making a determination on the petition until: (c) If: the department shall give priority to the first petition filed. Sec. 6. (a) A petitioner issued an involuntary integration order may petition the department to amend the order. (b) A petition to amend an involuntary integration order is subject to the same procedures and requirements as the original petition for an involuntary integration order. (c) The department may not issue an amended involuntary integration order unless the petitioner obtains consent from the pore space owners underlying at least seventy percent (70%) of the surface area above the proposed storage facility. (d) If a petition to amend an involuntary integration order contains a request to reduce the boundaries of an involuntary integration order, the department shall grant the petition if the property to be removed is not within the current or projected carbon dioxide plume based on: Compensation paid to a pore space owner before the integration order is amended is not to be paid back to the petitioner. (e) An issued amended involuntary integration order does not waive or diminish rights or protections under IC 14-39-2-12. (f) An issued amended involuntary integration order does not obligate the petitioner to recalculate a payment previously made to a pore space owner based on the percent of the surface area overlying the storage facility owned by the pore space owner. (g) An issued amended involuntary integration order does not alter contractual terms between the petitioner and a consenting pore space owner. Sec. 7. (a) An involuntary integration order issued by the department expires five (5) years after issuance if the activity authorized by the order has not started. The department may grant an extension of one (1) year if good cause is shown by the petitioner for failing to start the activity authorized by the involuntary integration order. (b) A pore space owner subject to an involuntary integration order, or another storage operator, may request that the department reduce the boundaries of an involuntary integration order after injection activity starts in the boundary of the order if: Before reducing the boundary of an involuntary integration order, the department shall notify the petitioner in writing by first class mail of the request to reduce the boundaries and give the petitioner an opportunity to contest the boundary reduction. (c) If: the rights and interests vested in the petitioner by the involuntary integration order, which the expired order or boundary reduction is based on, revert to the pore space owner. (d) If the vested rights and interests are reverted to the pore space owner under subsection (c), the petitioner shall pay any amount due under this rule not later than the date the property is no longer subject to the involuntary integration order. Compensation paid to a pore space owner before the order is amended may not be paid back to the petitioner. (e) If the vested rights and interests are reverted to the pore space owner, future payments by the petitioner, owed to the pore space owner no longer subject to the involuntary integration order, terminate. (f) An involuntary integration order that expires under subsection (a), or a reduction to the boundaries of an involuntary integration order under subsection (b), does not alter contractual terms between the petitioner and a consenting pore space owner. (g) Not later than thirty (30) days after obtaining a determination from the department under this section, a petitioner may request review and appeal of the determination under IC 4-21.5. Sec. 8. (a) A petitioner that applies to transfer a carbon sequestration project permit shall apply to transfer an involuntary integration order for the project to the transferee of the carbon sequestration project permit. (b) At least one hundred twenty (120) days before the intended transfer date, a petitioner issued an involuntary integration order and the transferee for the carbon sequestration project permit shall notify the department of the intent to apply for a transfer of the integration order. (c) A petitioner and transferee applying to transfer an involuntary integration order shall submit the following with an application for a transfer: (d) If the department determines the application for a transfer is complete, the department shall notify the transferee, and the transferee shall do the following: (e) Not later than ninety (90) days after receiving proof that the notice under subsection (d) was published, the department shall notify the petitioner and transferee in writing by first class mail that the department either approves or denies the transfer. (f) If the department determines: the department shall deny the application. If a finding is made under subdivision (6), however, the transferee is not disqualified from receiving the transfer if the violation was, or is in the process of being, corrected to the satisfaction of the department or the transferee filed and is pursuing administrative review of the violation under IC 4-21.5. (g) If an application for a transfer is filed and there is a pending notice of violation: The department may waive a penalty for a notice of violation in writing not later than ninety (90) days after the transfer if the department determines the transferee is acting in good faith to abate the violation. (h) The department shall notify the petitioner and transferee in writing that the department approves or denies the transfer. (i) The transferee of an involuntary integration order shall assume the rights, duties, and obligations under the order without alteration. (j) A transfer is effective on the date the written notice approving the transfer under subsection (h) is issued by the department. (k) A determination under this section is subject to review and appeal under IC 4-21.5. Sec. 9. (a) A petitioner who obtains an involuntary integration order shall record the order: the involuntary integration order was obtained. (b) The petitioner shall pay the cost to record the involuntary integration order. Sec. 1. (a) A storage operator may apply for a certificate of project completion from the department after site closure is complete under a UIC Class VI permit. (b) An application for a certificate of project completion must include the following: (c) If the department determines the storage operator demonstrated the requirements under subsection (b), the department shall issue a certificate of project completion under IC 14-39-2-13. (d) If a storage operator applies for a certificate of project completion more than one (1) year after the date the UIC Class VI site closure report is submitted to the U.S. EPA, the department may request the following supplemental information from the storage operator: (e) A corrected application for a certificate of project completion is based on the same procedures and requirements as the initial application. Sec. 2. (a) After the department issues a certificate of project completion: (b) The state of Indiana is responsible for regulatory requirements associated with a storage facility, beginning on the date of the transfer, and shall maintain long term care and stewardship obligations for the storage facility under state or federal law using funds under IC 14-39-2. The storage operator and owner of the storage facility are released from responsibility for regulatory requirements under IC 14-39-2. (c) The state of Indiana is responsible for any potential liability associated with a storage facility that occurs not earlier than the date of the transfer. Sec. 3. (a) If the department finds that a storage operator received a certificate of project completion based on: which the department relied on, the department may petition the commission to issue a violation. If the storage operator cannot remedy the violation within thirty (30) days after the violation is issued, the certificate of project completion is invalidated and void. (b) If a certificate of project completion is invalidated and voided under subsection (a), the rights and liabilities transferred to the state of Indiana immediately transfer back to the storage operator and owner of the storage facility. (c) A determination under this section is subject to review and appeal under IC 4-21.5. LSA Document #25-702 Notice of First Public Comment Period: December 10, 2025 Last Hearing Held: March 16, 2026 Approved by Attorney General: May 7, 2026 Approved by Governor: May 8, 2026 Filed with Publisher: May 11, 2026, 9:58 a.m. Documents Incorporated by Reference: None Received by Publisher Small Business Regulatory Coordinator: Danae Schneck, Carbon Program Coordinator, Division of Reclamation, Department of Natural Resources, Indiana Government Center South, 402 West Washington Street, Room W293, Indianapolis, IN 46204, (463) 207-5093, DSchneck@dnr.in.gov