The bill, HB 966, authorizes the unitization of carbon dioxide sequestration, allowing the commissioner of conservation to order the unitization of a reservoir for geologic storage upon application from a proposed storage facility operator. Key provisions include a requirement for at least three-fourths of the owners in interest within the storage unit to consent to geologic storage, and the establishment of just and equitable compensation for all owners in interest and the storage operator. The bill also outlines factors the commissioner may consider in determining compensation and prohibits any unitization order from altering existing contracts between interest owners and storage operators.

Significant amendments adopted from the Senate include changes to the definition of a storage unit, the introduction of language emphasizing the fair and efficient development of geologic storage reservoirs, and the establishment of judicial review provisions for challenges to the public purpose of a unitization order. Additionally, the bill modifies notification requirements for mineral interest owners regarding Class VI well permits, adjusts the spacing requirements for Class VI wellheads, and authorizes the use of eminent domain if the unitization provisions are deemed invalid. Overall, the bill aims to facilitate the responsible development of carbon dioxide storage while ensuring equitable treatment of all stakeholders involved.

Statutes affected:
HB966 Original: 30:28(D)(2), 30:1104(A)(1)
HB966 Engrossed: 30:28(D)(2), 30:1104(A)(1)
HB966 Reengrossed: 30:28(D)(2), 30:1104(A)(1)
HB966 Enrolled: 30:28(D)(2), 30:1104(A)(1)
HB966 Act 645: 30:28(D)(2), 30:1104(A)(1)