S0831B0921A03616 SFR:JMT 03/18/24 #90 A03616
AMENDMENTS TO SENATE BILL NO. 831
Sponsor: SENATOR YAW
Printer's No. 921
Amend Bill, page 3, line 15, by striking out "or" and
inserting a comma
Amend Bill, page 3, line 16, by inserting after "interest"
or leasehold interest
Amend Bill, page 3, line 18, by striking out the comma after
"right-of-way" and inserting
or
Amend Bill, page 3, lines 18 and 19, by striking out "or a
leasehold"
Amend Bill, page 4, line 6, by inserting after "the" where it
occurs the first time
surface property interest
Amend Bill, page 4, line 6, by striking out "of the surface"
Amend Bill, page 4, line 22, by inserting after "surface"
property interest
Amend Bill, page 4, line 22, by inserting after "owner,"
subsurface property interest
Amend Bill, page 4, lines 22 and 23, by striking out "of the
minerals, including coal, or oil and gas interest"
Amend Bill, page 5, line 3, by striking out "severed"
Amend Bill, page 5, line 4, by striking out "severed"
Amend Bill, page 5, line 5, by inserting after "dominant"
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, including the surface use necessary for the subsurface
development of the mineral, including coal, or oil and gas
estate,
Amend Bill, page 5, line 7, by striking out "several owners
of the surface" and inserting
surface property interest owner
Amend Bill, page 5, line 10, by striking out "the" and
inserting
an existing
Amend Bill, page 5, line 12, by striking out the period after
"paragraph" and inserting
, notwithstanding that the contract or lease was entered
into with a subsurface property interest owner or a
predecessor to the subsurface property interest owner.
Amend Bill, page 8, line 5, by inserting after "for"
fair market
Amend Bill, page 8, line 5, by inserting after "interest"
of the pore space owners
Amend Bill, page 8, lines 16 through 30; page 9, line 1; by
striking out all of said lines on said pages and inserting
Section 5.1. Seismic exploration.
(a) Seismic activity review.--A storage operator shall
prepare a seismic activity review in accordance with existing
requirements for a UIC Class VI permit.
(b) Seismic survey or assessment.--Prior to application for
a UIC Class VI permit developed by the department, a storage
operator may conduct a seismic survey or assessment across the
vicinity of a potential storage facility.
(c) Entry onto lands.--If a storage operator is unable to
reasonably negotiate with a surface owner for the right to
conduct a seismic survey on lands owned by the surface owner,
the secretary may issue an order for the entry onto the lands by
the storage operator. In this instance, the storage operator
shall pay the surface owner just and reasonable compensation as
established by the secretary.
(d) Limitations and claims.--A seismic survey shall be
limited to geologic storage and shall remain confidential and
proprietary. The storage operator shall defend, indemnify and
hold harmless the property owner for all claims arising out of
entry onto the property by the storage operator, its contractors
and its agents.
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Amend Bill, page 9, line 9, by striking out all of said line
and inserting
(b) Conditions for authorization.--
(1) To operate a carbon
Amend Bill, page 9, line 11, by inserting after "obtain"
, and must be in compliance with,
Amend Bill, page 9, line 12, by inserting after
"regulations."
Upon submission of a UIC Class VI permit application,
the storage operator shall provide notice of application to
the surface property interest owners and subsurface property
interest owners in the vicinity of the storage facility.
(2) The following apply to seismic monitoring:
(i) A storage operator shall deploy prior to carbon
sequestration, and periodically operate during carbon
sequestration, a seismicity monitoring system to
determine the presence or absence, magnitude and the
hypocenter location to the best of the storage operator's
ability of seismic activity within the vicinity of the
storage facility as may be necessary to perform an array
and a risk analysis and as required by the department. A
storage operator may apply to the department for a waiver
of this requirement if the storage operator presents a
geohazard assessment and historical injection data
demonstrating that induced seismicity does not pose
significant risk.
(ii) If a storage operator is unable to reasonably
negotiate with a surface property interest owner for the
right to conduct seismic monitoring on lands owned by the
surface property interest owner, the secretary may issue
an order for the entry onto the lands by the storage
operator. In this instance, the storage operator shall
pay the surface property interest owner just and
reasonable compensation as established by the secretary.
(iii) The storage operator shall defend, indemnify
and hold harmless the surface property interest owner and
subsurface property interest owner for all claims arising
out of entry onto the property by the storage operator,
its contractors and its agents.
(iv) A storage operator shall provide for the
submission to the department of any seismic data above a
seismic threshold or frequency determined by the
department in a manner provided for by the department.
(3) To operate a carbon sequestration project under this
section, a storage operator shall design the carbon
sequestration project to isolate any existing or future
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production from the mineral, including of the coal, or oil
and gas estate, from the carbon dioxide plume and shall
indicate whether the storage facility contains commercially
valuable mineral, including the coal, or oil and gas estates,
and, if it does, a permit may be issued only if the
department is satisfied that the interests of the mineral,
including coal, or oil and gas estate, will not be adversely
affected and have been addressed in an agreement entered into
by the storage operator and the subsurface property interest
owners.
Amend Bill, page 10, line 14, by striking out "direct
physical"
Amend Bill, page 10, line 16, by striking out "Damages" and
inserting
Redress and damages
Amend Bill, page 10, lines 18 through 21, by striking out
"may recover monetary damages due to" in line 18 and all of
lines 19 through 21 and inserting
or lessee who incurs injury or damage or loss of
property value as a result of the injection or migration of
carbon dioxide described in section 8(a) shall have a right
of action against the storage operator for injunction,
damages or other appropriate civil or equitable relief.
Amend Bill, page 10, line 22, by striking out "or" and
inserting a comma
Amend Bill, page 10, line 23, by inserting after "owner"
or lessee
Amend Bill, page 10, lines 23 through 26, by striking out
"not seek punitive damages due to" in line 23 and all of lines
24 through 26 and inserting
seek recovery for any of the following:
(i) General and special damages, including actual
damages, for the diminution in property value resulting
from the injection and migration of carbon dioxide beyond
the storage facility.
(ii) Punitive damages.
(iii) Reasonable attorney fees and costs.
(iv) Injunctive and other equitable relief.
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(v) Other relief which the court deems necessary and
proper.
(3) A surface property interest owner, subsurface
property interest owner or lessee may not seek punitive
damages due to injection or migration of carbon dioxide if
the storage operator is determined to have had a reasonable
basis for believing that the carbon sequestration project
would not result in migration of carbon dioxide beyond the
storage facility.
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