The Geologic Carbon Dioxide Sequestration Act establishes a comprehensive 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 permits the formation of these units, which require approval from the Oil Conservation Division. Operators must acquire necessary rights and submit detailed applications that include geological evidence, compensation proposals for landowners, and operational plans. The Act clarifies that it does not override existing mineral or surface rights and is not applicable to enhanced oil and gas production operations.

The bill introduces new provisions that clarify ownership rights and regulatory processes for carbon dioxide sequestration. It designates all injected carbon dioxide as the property of the operator, preventing surface or mineral interest owners from interfering without approval. Additionally, it establishes an "oil conservation division systems and hearings fund" to support oversight of sequestration facilities, funded by operator fees. The legislation also outlines procedures for dealing with unlocatable owners of carbon dioxide shares, requiring operators to manage these shares responsibly. Overall, the Act aims to enhance the regulatory framework for carbon sequestration while safeguarding the rights of landowners and ensuring environmental safety.