The Geologic Carbon Dioxide Sequestration Act establishes a regulatory framework for the underground sequestration of carbon dioxide in New Mexico. It defines essential terms such as "geologic sequestration," "sequestration facility," and "sequestration unit," and allows for the creation of sequestration units while protecting existing mineral and surface rights. The Oil Conservation Division is empowered to enforce the Act, adopt rules, and issue orders, while operators must first negotiate for necessary rights before pursuing unitization procedures. The application process for unitization requires operators to submit detailed proposals, including geological evidence and compensation plans for landowners, and mandates a hearing to assess the application based on specific criteria.

The bill introduces new provisions regarding the ownership and regulation of carbon dioxide in sequestration units, asserting that all injected carbon dioxide is the property of the operator, and that surface or mineral interest owners cannot interfere without consent. It allows mineral owners to drill through sequestration units with precautions to protect the facility. Additionally, the bill clarifies the ownership of pore space, stating that it is included with surface ownership unless otherwise specified, and establishes that existing notice requirements for surface or mineral owners do not automatically apply to those with interests in pore space. The creation of an "oil conservation division systems and hearings fund" is also included to manage fees related to regulatory oversight and application processing.