The bill under consideration establishes a legal framework for the geologic storage of carbon dioxide in Alabama, specifically addressing the ownership and conveyance of pore space rights. It amends the Code of Alabama by designating existing sections as Division 1 and adding a new Division 2, starting with Section 9-17-160. The bill grants surface property owners the possessory rights to the pore space beneath their land, enabling them to convey these rights separately. It clarifies that mineral rights agreements do not include pore space unless explicitly stated. The bill also details the approval process for carbon dioxide storage facilities by the State Oil and Gas Board and sets forth the procedure for consolidating storage rights when a majority of pore space owners have given their consent. Additionally, it creates two funds: the Underground Carbon Dioxide Storage Facility Administrative Fund for the board's regulatory activities and the Trust Fund for the management of closed storage facilities. The legislation protects the rights of pore space owners acquired before October 1, 2024, from being affected by these new provisions.

SB230 Engrossed also outlines the process for a storage operator to obtain a certificate of project closure and completion from the board, which includes a public hearing and verification that the facility complies with legal requirements and can securely contain the carbon dioxide. The bill requires a minimum of ten years to pass since the cessation of carbon dioxide injection before the certificate can be issued. Upon closure, the state will take title to the carbon dioxide and necessary monitoring equipment without compensation, releasing the storage operator and carbon dioxide generators from further obligations. The state will then be responsible for the long-term oversight of the facility, unless a federal agency assumes control. The Commissioner of Conservation and Natural Resources is empowered to lease pore space for carbon dioxide storage, and the board is granted rulemaking authority to enforce these provisions. The bill is set to take effect on October 1, 2024.

Statutes affected:
Introduced: 9-17-160, 9-17-150, 9-17-151, 9-17-152, 9-17-153, 9-17-154, 9-17-155, 9-17-156, 9-17-157
Engrossed: 9-17-160, 9-17-150, 9-17-151, 9-17-152, 9-17-153, 9-17-154, 9-17-155, 9-17-156, 9-17-157