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Statutes > North-dakota > T38 > T38c22

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CHAPTER 38-22CARBON DIOXIDE UNDERGROUND STORAGE38-22-01. Policy. It is in the public interest to promote the geologic storage of carbondioxide. Doing so will benefit the state and the global environment by reducing greenhouse gas<br>emissions. Doing so will help ensure the viability of the state's coal and power industries, to the<br>economic benefit of North Dakota and its citizens. Further, geologic storage of carbon dioxide, a<br>potentially valuable commodity, may allow for its ready availability if needed for commercial,<br>industrial, or other uses, including enhanced recovery of oil, gas, and other minerals. Geologic<br>storage, however, to be practical and effective requires cooperative use of surface and<br>subsurface property interests and the collaboration of property owners. Obtaining consent from<br>all owners may not be feasible, requiring procedures that promote, in a manner fair to all<br>interests, cooperative management, thereby ensuring the maximum use of natural resources.38-22-02. Definitions. As used in this chapter, unless the context requires otherwise:1.&quot;Carbon dioxide&quot; means carbon dioxide produced by anthropogenic sources which<br>is of such purity and quality that it will not compromise the safety of geologic storage<br>and will not compromise those properties of a storage reservoir which allow the<br>reservoir to effectively enclose and contain a stored gas.2.&quot;Commission&quot; means the industrial commission.3.&quot;Geologic storage&quot; means the permanent or short-term underground storage of<br>carbon dioxide in a storage reservoir.4.&quot;Permit&quot; means a permit issued by the commission allowing a person to operate a<br>storage facility.5.&quot;Pore space&quot; means a cavity or void, whether natural or artificially created, in a<br>subsurface sedimentary stratum.6.&quot;Reservoir&quot; means a subsurface sedimentary stratum, formation, aquifer, cavity, or<br>void, whether natural or artificially created, including oil and gas reservoirs, saline<br>formations, and coal seams suitable for or capable of being made suitable for<br>injecting and storing carbon dioxide.7.&quot;Storage facility&quot; means the reservoir, underground equipment, and surface facilities<br>and equipment used or proposed to be used in a geologic storage operation. It does<br>not include pipelines used to transport carbon dioxide to the storage facility.8.&quot;Storage operator&quot; means a person holding or applying for a permit.9.&quot;Storage reservoir&quot; means a reservoir proposed, authorized, or used for storing<br>carbon dioxide.38-22-03. Commission authority. The commission has authority:1.Over all persons and property necessary to administer and enforce this chapter and<br>its objectives.2.To regulate activities relating to a storage facility, including construction, operation,<br>and closure.3.To enter, at a reasonable time and manner, a storage facility to inspect equipment<br>and facilities; to observe, monitor, and investigate operations; and to inspect records<br>required to be maintained at the facility.Page No. 14.To require that storage operators provide assurance, including bonds, that money is<br>available to fulfill the storage operator's duties.5.To exercise continuing jurisdiction over storage operators and storage facilities,<br>including the authority, after notice and hearing, to amend provisions in a permit and<br>to revoke a permit.6.To dissolve or change the boundaries of any commission-established oil or gas field<br>or unit that is within or near a storage reservoir's boundaries.7.To grant, for good cause, exceptions to this chapter's requirements and<br>implementing rules.38-22-04. Permit required - Permit transfer. Geologic storage is allowed if permittedby the commission. A permit may be transferred if the commission consents.38-22-05. Permit applications, fees, costs, and priorities - Carbon dioxide storagefacility administrative fund.1.A person applying for a permit shall:a.Comply with application requirements set by the commission.b.Pay a fee in an amount set by the commission. The amount of the fee must be<br>set by rule and must be based on the commission's anticipated cost of<br>processing the application. The fee must be deposited in the carbon dioxide<br>storage facility administrative fund.c.Pay to the commission the costs the commission incurs in publishing notices<br>for hearings and holding hearings on permit applications.2.In processing permit applications the commission shall give priority to storage<br>operators who intend to store carbon dioxide produced in North Dakota.38-22-06. Permit hearing - Hearing notice.1.The commission shall hold a public hearing before issuing a permit.2.Notice of the hearing must be published for two consecutive weeks in the official<br>newspaper of the county or counties where the storage reservoir is proposed to be<br>located and in any other newspaper the commission requires. Publication deadlines<br>must comply with commission requirements.3.Notice of the hearing must be given to each mineral lessee, mineral owner, and pore<br>space owner within the storage reservoir and within one-half mile of the storage<br>reservoir's boundaries.4.Notice of the hearing must be given to each surface owner of land overlying the<br>storage reservoir and within one-half mile of the reservoir's boundaries.5.Notice of the hearing must be given to any additional persons that the commission<br>requires.6.Service of hearing notices required by this section must conform to personal service<br>provisions in rule 4 of the North Dakota Rules of Civil Procedure.7.Hearing notices required by this section must comply with deadlines set by the<br>commission.Page No. 28.Hearing notices required by this section must contain the information the<br>commission requires.38-22-07. Permit consultation. Before issuing a permit, the commission shall consultthe state department of health.38-22-08. Permit requirements. Before issuing a permit, the commission shall find:1.That the storage operator has complied with all requirements set by the commission.2.That the storage facility is suitable and feasible for carbon dioxide injection and<br>storage.3.That the carbon dioxide to be stored is of a quality that allows it to be safely and<br>efficiently stored in the storage reservoir.4.That the storage operator has made a good-faith effort to get the consent of all<br>persons who own the storage reservoir's pore space.5.That the storage operator has obtained the consent of persons who own at least<br>sixty percent of the storage reservoir's pore space.6.Whether the storage facility contains commercially valuable minerals and, if it does,<br>a permit may be issued only if the commission is satisfied that the interests of the<br>mineral owners or mineral lessees will not be adversely affected or have been<br>addressed in an arrangement entered into by the mineral owners or mineral lessees<br>and the storage operator.7.That the proposed storage facility will not adversely affect surface waters or<br>formations containing fresh water.8.That carbon dioxide will not escape from the storage reservoir.9.That substances that compromise the objectives of this chapter or the integrity of a<br>storage reservoir will not enter a storage reservoir.10.That the storage facility will not endanger human health nor unduly endanger the<br>environment.11.That the storage facility is in the public interest.12.That the horizontal and vertical boundaries of the storage reservoir are defined.<br>These boundaries must include buffer areas to ensure that the storage facility is<br>operated safely and as contemplated.13.That the storage operator will establish monitoring facilities and protocols to assess<br>the location and migration of carbon dioxide injected for storage and to ensure<br>compliance with all permit, statutory, and administrative requirements.14.That all nonconsenting pore space owners are or will be equitably compensated.38-22-09. Permit provisions. The commission may include in a permit or order allthings necessary to carry out this chapter's objectives and to protect and adjust the respective<br>rights and obligations of persons affected by geologic storage.38-22-10. Amalgamating property interests. If a storage operator does not obtain theconsent of all persons who own the storage reservoir's pore space, the commission may require<br>that the pore space owned by nonconsenting owners be included in a storage facility and subject<br>to geologic storage.Page No. 338-22-11.Certificate.When the commission issues a permit it shall also issue acertificate stating that the permit has been issued, describing the area covered, and containing<br>other information the commission deems appropriate. The commission shall file a copy of the<br>certificate with the county recorder in the county or counties where the storage facility is located.38-22-12. Environmental protection - Reservoir integrity.1.The commission shall take action to ensure that a storage facility does not cause<br>pollution or create a nuisance. For the purposes of this provision and in applying<br>other laws, carbon dioxide stored, and which remains in storage under a<br>commission permit, is not a pollutant nor does it constitute a nuisance.2.The commission's authority in subsection 1 does not limit the jurisdiction held by the<br>state department of health. Nothing else in this chapter limits the jurisdiction held by<br>the state department of health.3.The commission shall take action to ensure that substances that compromise the<br>objectives of this chapter or the integrity of a storage reservoir do not enter a storage<br>reservoir.4.The commission shall take action to ensure that carbon dioxide does not escape<br>from a storage facility.38-22-13. Preservation of rights. Nothing in this chapter nor the issuing of a permit:1.Prejudices the rights of property owners within a storage facility to exercise rights<br>that have not been committed to a storage facility.2.Prevents a mineral owner or mineral lessee from drilling through or near a storage<br>reservoir to explore for and develop minerals, provided the drilling, production, and<br>related activities comply with commission requirements that preserve the storage<br>facility's integrity and protect this chapter's objectives.38-22-14. Fees - Carbon dioxide storage facility administrative fund - Continuingappropriation.1.Storage operators shall pay the commission a fee on each ton of carbon dioxide<br>injected for storage. The fee must be in the amount set by commission rule. The<br>amount must be based on the commission's anticipated expenses that it will incur in<br>regulating storage facilities during their construction, operational, and preclosure<br>phases.2.The fee must be deposited in the carbon dioxide storage facility administrative fund.<br>The fund must be maintained as a special fund and all money in the fund is<br>appropriated and may be used only for defraying the commission's expenses in<br>processing permit applications; regulating storage facilities during their construction,<br>operational, and preclosure phases; and making storage amount determinations<br>under section 38-22-23.The commission, however, through a cooperativeagreement with another state agency, may use the fund to compensate the<br>cooperating agency for expenses the cooperating agency incurs in carrying out<br>regulatory responsibilities that agency may have over a storage facility.Interestearned by the fund must be deposited in the fund.38-22-15.Fees - Carbon dioxide storage facility trust fund - Continuingappropriation.1.Storage operators shall pay the commission a fee on each ton of carbon dioxide<br>injected for storage. The fee must be in the amount set by commission rule. ThePage No. 4amount must be based on the commission's anticipated expenses associated with<br>the long-term monitoring and management of a closed storage facility.2.The fee must be deposited in the carbon dioxide storage facility trust fund. The fund<br>must be maintained as a special fund and all money in the fund is appropriated and<br>may be used only for defraying expenses the commission incurs in long-term<br>monitoring and management of a closed storage facility. The commission, however,<br>through a cooperative agreement with another state agency, may use the fund to<br>compensate the cooperating agency for expenses the cooperating agency incurs in<br>carrying out regulatory responsibilities that agency may have over a storage facility.<br>Interest earned by the fund must be deposited in the fund.3.The industrial commission shall file with the director of the legislative council a report<br>discussing whether the amount in the carbon dioxide storage facility trust fund and<br>fees being paid into it are sufficient to satisfy the fund's objectives. The first report is<br>due in December of 2014 and subsequent reports are due every four years<br>thereafter.38-22-16. Title to carbon dioxide. The storage operator has title to the carbon dioxideinjected into and stored in a storage reservoir and holds title until the commission issues a<br>certificate of project completion. While the storage operator holds title, the operator is liable for<br>any damage the carbon dioxide may cause, including damage caused by carbon dioxide that<br>escapes from the storage facility.38-22-17. Certificate of project completion - Release - Transfer of title and custody.1.After carbon dioxide injections into a reservoir end and upon application by the<br>storage operator, the commission shall consider issuing a certificate of project<br>completion.2.The certificate may only be issued after public notice and hearing. The commission<br>shall establish notice requirements for this hearing.3.The certificate may only be issued after the commission has consulted with the state<br>department of health.4.The certificate may not be issued until at least ten years after carbon dioxide<br>injections end.5.The certificate may only be issued if the storage operator:a.Is in full compliance with all laws governing the storage facility.b.Shows that it has addressed all pending claims regarding the storage facility's<br>operation.c.Shows that the storage reservoir is reasonably expected to retain the carbon<br>dioxide stored in it.d.Shows that the carbon dioxide in the storage reservoir has become stable.<br>Stored carbon dioxide is stable if it is essentially stationary or, if it is migrating<br>or may migrate, that any migration will be unlikely to cross the storage reservoir<br>boundary.e.Shows that all wells, equipment, and facilities to be used in the postclosure<br>period are in good condition and retain mechanical integrity.f.Shows that it has plugged wells, removed equipment and facilities, and<br>completed reclamation work as required by the commission.Page No. 56.Once a certificate is issued:a.Title to the storage facility and to the stored carbon dioxide transfers, without<br>payment of any compensation, to the state.b.Title acquired by the state includes all rights and interests in, and all<br>responsibilities associated with, the stored carbon dioxide.c.The storage operator and all persons who generated any injected carbon<br>dioxide are released from all regulatory requirements associated with the<br>storage facility.d.Any bonds posted by the storage operator must be released.e.Monitoring and managing the storage facility is the state's responsibility to be<br>overseen by the commission until such time as the federal government<br>assumes responsibility for the long-term monitoring and management of<br>storage facilities.38-22-18. Penalties.1.A person who violates a provision of this chapter or a commission rule or order<br>under this chapter is subject to a civil penalty imposed by the commission or a court<br>not to exceed twelve thousand five hundred dollars for each offense, and each day's<br>violation is a separate offense. Paying the penalty does not make legal an illegal act<br>nor relieve a person on whom the penalty is imposed from correcting the violation or<br>from liability for damages caused by the violation.2.In determining the amount of the penalty, the commission shall consider:a.The nature of the violation, including its circumstances and gravity, and the<br>hazard or potential hazard to the public's or a private person's health, safety,<br>and economic welfare.b.The economic or environmental harm caused by the violation.c.The economic value or other advantage gained by the person committing the<br>violation.d.The history of previous violations.e.The amount necessary to deter future violations.f.Efforts to correct the violation.g.Other matters justice requires.38-22-19. Enhanced recovery projects.1.This chapter does not apply to applications filed with the commission proposing to<br>use carbon dioxide for an enhanced oil or gas recovery project, rather such<br>applications will be processed under chapter 38-08.2.The commission may allow an enhanced oil or gas recovery project to be converted<br>to a storage facility.In considering whether to approve a conversion, and uponconversion, the provisions of this chapter and its implementing rules apply, but if<br>during the conversion process unique circumstances arise, the commission, to<br>better ensure that the chapter's objectives are fulfilled, may waive such provisions<br>and may impose additional ones.Page No. 638-22-20. Cooperative agreements and contracts.1.The commission may enter into agreements with other governments, government<br>entities, and state agencies for the purpose of carrying out this chapter's objectives.2.The commission may enter into contracts with private persons to assist it in carrying<br>out this chapter's objectives.Unless the circumstances require otherwise, thecommission shall, in entering such contracts, follow the process set out in section<br>38-08-04.4. If an emergency exists the commission may enter contracts without<br>public notice and without competitive bidding.38-22-21. Trusts, monopolies, restraint of trade. Cooperative operation of a storagefacility permitted by the commission does not violate North Dakota statutes relating to trusts,<br>monopolies, or restraint of trade.38-22-22.Participation of public interests.The entity or official controlling stateinterests or the interests of political subdivisions is authorized to consent to and participate in a<br>geologic storage project.38-22-23. Determining storage amounts - Carbon credits - Fee.1.The commission, under procedures and criteria it may adopt, shall determine the<br>amount of injected carbon dioxide stored in a reservoir that has been or is being<br>used for an enhanced oil or gas recovery project. The commission may also make<br>such a determination for carbon dioxide stored under this chapter.2.The purpose for determining storage amounts is to facilitate using the stored carbon<br>dioxide for such matters as carbon credits, allowances, trading, emissions<br>allocations, and offsets, and for other similar purposes.3.The commission may charge a reasonable fee to the person requesting a storage<br>determination. The fee must be set by rule.4.Fees the commission receives for storage determinations must be deposited into the<br>carbon dioxide storage facility administrative fund.Page No. 7Document Outlinechapter 38-22 carbon dioxide underground storage

State Codes and Statutes

Statutes > North-dakota > T38 > T38c22

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CHAPTER 38-22CARBON DIOXIDE UNDERGROUND STORAGE38-22-01. Policy. It is in the public interest to promote the geologic storage of carbondioxide. Doing so will benefit the state and the global environment by reducing greenhouse gas<br>emissions. Doing so will help ensure the viability of the state's coal and power industries, to the<br>economic benefit of North Dakota and its citizens. Further, geologic storage of carbon dioxide, a<br>potentially valuable commodity, may allow for its ready availability if needed for commercial,<br>industrial, or other uses, including enhanced recovery of oil, gas, and other minerals. Geologic<br>storage, however, to be practical and effective requires cooperative use of surface and<br>subsurface property interests and the collaboration of property owners. Obtaining consent from<br>all owners may not be feasible, requiring procedures that promote, in a manner fair to all<br>interests, cooperative management, thereby ensuring the maximum use of natural resources.38-22-02. Definitions. As used in this chapter, unless the context requires otherwise:1.&quot;Carbon dioxide&quot; means carbon dioxide produced by anthropogenic sources which<br>is of such purity and quality that it will not compromise the safety of geologic storage<br>and will not compromise those properties of a storage reservoir which allow the<br>reservoir to effectively enclose and contain a stored gas.2.&quot;Commission&quot; means the industrial commission.3.&quot;Geologic storage&quot; means the permanent or short-term underground storage of<br>carbon dioxide in a storage reservoir.4.&quot;Permit&quot; means a permit issued by the commission allowing a person to operate a<br>storage facility.5.&quot;Pore space&quot; means a cavity or void, whether natural or artificially created, in a<br>subsurface sedimentary stratum.6.&quot;Reservoir&quot; means a subsurface sedimentary stratum, formation, aquifer, cavity, or<br>void, whether natural or artificially created, including oil and gas reservoirs, saline<br>formations, and coal seams suitable for or capable of being made suitable for<br>injecting and storing carbon dioxide.7.&quot;Storage facility&quot; means the reservoir, underground equipment, and surface facilities<br>and equipment used or proposed to be used in a geologic storage operation. It does<br>not include pipelines used to transport carbon dioxide to the storage facility.8.&quot;Storage operator&quot; means a person holding or applying for a permit.9.&quot;Storage reservoir&quot; means a reservoir proposed, authorized, or used for storing<br>carbon dioxide.38-22-03. Commission authority. The commission has authority:1.Over all persons and property necessary to administer and enforce this chapter and<br>its objectives.2.To regulate activities relating to a storage facility, including construction, operation,<br>and closure.3.To enter, at a reasonable time and manner, a storage facility to inspect equipment<br>and facilities; to observe, monitor, and investigate operations; and to inspect records<br>required to be maintained at the facility.Page No. 14.To require that storage operators provide assurance, including bonds, that money is<br>available to fulfill the storage operator's duties.5.To exercise continuing jurisdiction over storage operators and storage facilities,<br>including the authority, after notice and hearing, to amend provisions in a permit and<br>to revoke a permit.6.To dissolve or change the boundaries of any commission-established oil or gas field<br>or unit that is within or near a storage reservoir's boundaries.7.To grant, for good cause, exceptions to this chapter's requirements and<br>implementing rules.38-22-04. Permit required - Permit transfer. Geologic storage is allowed if permittedby the commission. A permit may be transferred if the commission consents.38-22-05. Permit applications, fees, costs, and priorities - Carbon dioxide storagefacility administrative fund.1.A person applying for a permit shall:a.Comply with application requirements set by the commission.b.Pay a fee in an amount set by the commission. The amount of the fee must be<br>set by rule and must be based on the commission's anticipated cost of<br>processing the application. The fee must be deposited in the carbon dioxide<br>storage facility administrative fund.c.Pay to the commission the costs the commission incurs in publishing notices<br>for hearings and holding hearings on permit applications.2.In processing permit applications the commission shall give priority to storage<br>operators who intend to store carbon dioxide produced in North Dakota.38-22-06. Permit hearing - Hearing notice.1.The commission shall hold a public hearing before issuing a permit.2.Notice of the hearing must be published for two consecutive weeks in the official<br>newspaper of the county or counties where the storage reservoir is proposed to be<br>located and in any other newspaper the commission requires. Publication deadlines<br>must comply with commission requirements.3.Notice of the hearing must be given to each mineral lessee, mineral owner, and pore<br>space owner within the storage reservoir and within one-half mile of the storage<br>reservoir's boundaries.4.Notice of the hearing must be given to each surface owner of land overlying the<br>storage reservoir and within one-half mile of the reservoir's boundaries.5.Notice of the hearing must be given to any additional persons that the commission<br>requires.6.Service of hearing notices required by this section must conform to personal service<br>provisions in rule 4 of the North Dakota Rules of Civil Procedure.7.Hearing notices required by this section must comply with deadlines set by the<br>commission.Page No. 28.Hearing notices required by this section must contain the information the<br>commission requires.38-22-07. Permit consultation. Before issuing a permit, the commission shall consultthe state department of health.38-22-08. Permit requirements. Before issuing a permit, the commission shall find:1.That the storage operator has complied with all requirements set by the commission.2.That the storage facility is suitable and feasible for carbon dioxide injection and<br>storage.3.That the carbon dioxide to be stored is of a quality that allows it to be safely and<br>efficiently stored in the storage reservoir.4.That the storage operator has made a good-faith effort to get the consent of all<br>persons who own the storage reservoir's pore space.5.That the storage operator has obtained the consent of persons who own at least<br>sixty percent of the storage reservoir's pore space.6.Whether the storage facility contains commercially valuable minerals and, if it does,<br>a permit may be issued only if the commission is satisfied that the interests of the<br>mineral owners or mineral lessees will not be adversely affected or have been<br>addressed in an arrangement entered into by the mineral owners or mineral lessees<br>and the storage operator.7.That the proposed storage facility will not adversely affect surface waters or<br>formations containing fresh water.8.That carbon dioxide will not escape from the storage reservoir.9.That substances that compromise the objectives of this chapter or the integrity of a<br>storage reservoir will not enter a storage reservoir.10.That the storage facility will not endanger human health nor unduly endanger the<br>environment.11.That the storage facility is in the public interest.12.That the horizontal and vertical boundaries of the storage reservoir are defined.<br>These boundaries must include buffer areas to ensure that the storage facility is<br>operated safely and as contemplated.13.That the storage operator will establish monitoring facilities and protocols to assess<br>the location and migration of carbon dioxide injected for storage and to ensure<br>compliance with all permit, statutory, and administrative requirements.14.That all nonconsenting pore space owners are or will be equitably compensated.38-22-09. Permit provisions. The commission may include in a permit or order allthings necessary to carry out this chapter's objectives and to protect and adjust the respective<br>rights and obligations of persons affected by geologic storage.38-22-10. Amalgamating property interests. If a storage operator does not obtain theconsent of all persons who own the storage reservoir's pore space, the commission may require<br>that the pore space owned by nonconsenting owners be included in a storage facility and subject<br>to geologic storage.Page No. 338-22-11.Certificate.When the commission issues a permit it shall also issue acertificate stating that the permit has been issued, describing the area covered, and containing<br>other information the commission deems appropriate. The commission shall file a copy of the<br>certificate with the county recorder in the county or counties where the storage facility is located.38-22-12. Environmental protection - Reservoir integrity.1.The commission shall take action to ensure that a storage facility does not cause<br>pollution or create a nuisance. For the purposes of this provision and in applying<br>other laws, carbon dioxide stored, and which remains in storage under a<br>commission permit, is not a pollutant nor does it constitute a nuisance.2.The commission's authority in subsection 1 does not limit the jurisdiction held by the<br>state department of health. Nothing else in this chapter limits the jurisdiction held by<br>the state department of health.3.The commission shall take action to ensure that substances that compromise the<br>objectives of this chapter or the integrity of a storage reservoir do not enter a storage<br>reservoir.4.The commission shall take action to ensure that carbon dioxide does not escape<br>from a storage facility.38-22-13. Preservation of rights. Nothing in this chapter nor the issuing of a permit:1.Prejudices the rights of property owners within a storage facility to exercise rights<br>that have not been committed to a storage facility.2.Prevents a mineral owner or mineral lessee from drilling through or near a storage<br>reservoir to explore for and develop minerals, provided the drilling, production, and<br>related activities comply with commission requirements that preserve the storage<br>facility's integrity and protect this chapter's objectives.38-22-14. Fees - Carbon dioxide storage facility administrative fund - Continuingappropriation.1.Storage operators shall pay the commission a fee on each ton of carbon dioxide<br>injected for storage. The fee must be in the amount set by commission rule. The<br>amount must be based on the commission's anticipated expenses that it will incur in<br>regulating storage facilities during their construction, operational, and preclosure<br>phases.2.The fee must be deposited in the carbon dioxide storage facility administrative fund.<br>The fund must be maintained as a special fund and all money in the fund is<br>appropriated and may be used only for defraying the commission's expenses in<br>processing permit applications; regulating storage facilities during their construction,<br>operational, and preclosure phases; and making storage amount determinations<br>under section 38-22-23.The commission, however, through a cooperativeagreement with another state agency, may use the fund to compensate the<br>cooperating agency for expenses the cooperating agency incurs in carrying out<br>regulatory responsibilities that agency may have over a storage facility.Interestearned by the fund must be deposited in the fund.38-22-15.Fees - Carbon dioxide storage facility trust fund - Continuingappropriation.1.Storage operators shall pay the commission a fee on each ton of carbon dioxide<br>injected for storage. The fee must be in the amount set by commission rule. ThePage No. 4amount must be based on the commission's anticipated expenses associated with<br>the long-term monitoring and management of a closed storage facility.2.The fee must be deposited in the carbon dioxide storage facility trust fund. The fund<br>must be maintained as a special fund and all money in the fund is appropriated and<br>may be used only for defraying expenses the commission incurs in long-term<br>monitoring and management of a closed storage facility. The commission, however,<br>through a cooperative agreement with another state agency, may use the fund to<br>compensate the cooperating agency for expenses the cooperating agency incurs in<br>carrying out regulatory responsibilities that agency may have over a storage facility.<br>Interest earned by the fund must be deposited in the fund.3.The industrial commission shall file with the director of the legislative council a report<br>discussing whether the amount in the carbon dioxide storage facility trust fund and<br>fees being paid into it are sufficient to satisfy the fund's objectives. The first report is<br>due in December of 2014 and subsequent reports are due every four years<br>thereafter.38-22-16. Title to carbon dioxide. The storage operator has title to the carbon dioxideinjected into and stored in a storage reservoir and holds title until the commission issues a<br>certificate of project completion. While the storage operator holds title, the operator is liable for<br>any damage the carbon dioxide may cause, including damage caused by carbon dioxide that<br>escapes from the storage facility.38-22-17. Certificate of project completion - Release - Transfer of title and custody.1.After carbon dioxide injections into a reservoir end and upon application by the<br>storage operator, the commission shall consider issuing a certificate of project<br>completion.2.The certificate may only be issued after public notice and hearing. The commission<br>shall establish notice requirements for this hearing.3.The certificate may only be issued after the commission has consulted with the state<br>department of health.4.The certificate may not be issued until at least ten years after carbon dioxide<br>injections end.5.The certificate may only be issued if the storage operator:a.Is in full compliance with all laws governing the storage facility.b.Shows that it has addressed all pending claims regarding the storage facility's<br>operation.c.Shows that the storage reservoir is reasonably expected to retain the carbon<br>dioxide stored in it.d.Shows that the carbon dioxide in the storage reservoir has become stable.<br>Stored carbon dioxide is stable if it is essentially stationary or, if it is migrating<br>or may migrate, that any migration will be unlikely to cross the storage reservoir<br>boundary.e.Shows that all wells, equipment, and facilities to be used in the postclosure<br>period are in good condition and retain mechanical integrity.f.Shows that it has plugged wells, removed equipment and facilities, and<br>completed reclamation work as required by the commission.Page No. 56.Once a certificate is issued:a.Title to the storage facility and to the stored carbon dioxide transfers, without<br>payment of any compensation, to the state.b.Title acquired by the state includes all rights and interests in, and all<br>responsibilities associated with, the stored carbon dioxide.c.The storage operator and all persons who generated any injected carbon<br>dioxide are released from all regulatory requirements associated with the<br>storage facility.d.Any bonds posted by the storage operator must be released.e.Monitoring and managing the storage facility is the state's responsibility to be<br>overseen by the commission until such time as the federal government<br>assumes responsibility for the long-term monitoring and management of<br>storage facilities.38-22-18. Penalties.1.A person who violates a provision of this chapter or a commission rule or order<br>under this chapter is subject to a civil penalty imposed by the commission or a court<br>not to exceed twelve thousand five hundred dollars for each offense, and each day's<br>violation is a separate offense. Paying the penalty does not make legal an illegal act<br>nor relieve a person on whom the penalty is imposed from correcting the violation or<br>from liability for damages caused by the violation.2.In determining the amount of the penalty, the commission shall consider:a.The nature of the violation, including its circumstances and gravity, and the<br>hazard or potential hazard to the public's or a private person's health, safety,<br>and economic welfare.b.The economic or environmental harm caused by the violation.c.The economic value or other advantage gained by the person committing the<br>violation.d.The history of previous violations.e.The amount necessary to deter future violations.f.Efforts to correct the violation.g.Other matters justice requires.38-22-19. Enhanced recovery projects.1.This chapter does not apply to applications filed with the commission proposing to<br>use carbon dioxide for an enhanced oil or gas recovery project, rather such<br>applications will be processed under chapter 38-08.2.The commission may allow an enhanced oil or gas recovery project to be converted<br>to a storage facility.In considering whether to approve a conversion, and uponconversion, the provisions of this chapter and its implementing rules apply, but if<br>during the conversion process unique circumstances arise, the commission, to<br>better ensure that the chapter's objectives are fulfilled, may waive such provisions<br>and may impose additional ones.Page No. 638-22-20. Cooperative agreements and contracts.1.The commission may enter into agreements with other governments, government<br>entities, and state agencies for the purpose of carrying out this chapter's objectives.2.The commission may enter into contracts with private persons to assist it in carrying<br>out this chapter's objectives.Unless the circumstances require otherwise, thecommission shall, in entering such contracts, follow the process set out in section<br>38-08-04.4. If an emergency exists the commission may enter contracts without<br>public notice and without competitive bidding.38-22-21. Trusts, monopolies, restraint of trade. Cooperative operation of a storagefacility permitted by the commission does not violate North Dakota statutes relating to trusts,<br>monopolies, or restraint of trade.38-22-22.Participation of public interests.The entity or official controlling stateinterests or the interests of political subdivisions is authorized to consent to and participate in a<br>geologic storage project.38-22-23. Determining storage amounts - Carbon credits - Fee.1.The commission, under procedures and criteria it may adopt, shall determine the<br>amount of injected carbon dioxide stored in a reservoir that has been or is being<br>used for an enhanced oil or gas recovery project. The commission may also make<br>such a determination for carbon dioxide stored under this chapter.2.The purpose for determining storage amounts is to facilitate using the stored carbon<br>dioxide for such matters as carbon credits, allowances, trading, emissions<br>allocations, and offsets, and for other similar purposes.3.The commission may charge a reasonable fee to the person requesting a storage<br>determination. The fee must be set by rule.4.Fees the commission receives for storage determinations must be deposited into the<br>carbon dioxide storage facility administrative fund.Page No. 7Document Outlinechapter 38-22 carbon dioxide underground storage

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State Codes and Statutes

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CHAPTER 38-22CARBON DIOXIDE UNDERGROUND STORAGE38-22-01. Policy. It is in the public interest to promote the geologic storage of carbondioxide. Doing so will benefit the state and the global environment by reducing greenhouse gas<br>emissions. Doing so will help ensure the viability of the state's coal and power industries, to the<br>economic benefit of North Dakota and its citizens. Further, geologic storage of carbon dioxide, a<br>potentially valuable commodity, may allow for its ready availability if needed for commercial,<br>industrial, or other uses, including enhanced recovery of oil, gas, and other minerals. Geologic<br>storage, however, to be practical and effective requires cooperative use of surface and<br>subsurface property interests and the collaboration of property owners. Obtaining consent from<br>all owners may not be feasible, requiring procedures that promote, in a manner fair to all<br>interests, cooperative management, thereby ensuring the maximum use of natural resources.38-22-02. Definitions. As used in this chapter, unless the context requires otherwise:1.&quot;Carbon dioxide&quot; means carbon dioxide produced by anthropogenic sources which<br>is of such purity and quality that it will not compromise the safety of geologic storage<br>and will not compromise those properties of a storage reservoir which allow the<br>reservoir to effectively enclose and contain a stored gas.2.&quot;Commission&quot; means the industrial commission.3.&quot;Geologic storage&quot; means the permanent or short-term underground storage of<br>carbon dioxide in a storage reservoir.4.&quot;Permit&quot; means a permit issued by the commission allowing a person to operate a<br>storage facility.5.&quot;Pore space&quot; means a cavity or void, whether natural or artificially created, in a<br>subsurface sedimentary stratum.6.&quot;Reservoir&quot; means a subsurface sedimentary stratum, formation, aquifer, cavity, or<br>void, whether natural or artificially created, including oil and gas reservoirs, saline<br>formations, and coal seams suitable for or capable of being made suitable for<br>injecting and storing carbon dioxide.7.&quot;Storage facility&quot; means the reservoir, underground equipment, and surface facilities<br>and equipment used or proposed to be used in a geologic storage operation. It does<br>not include pipelines used to transport carbon dioxide to the storage facility.8.&quot;Storage operator&quot; means a person holding or applying for a permit.9.&quot;Storage reservoir&quot; means a reservoir proposed, authorized, or used for storing<br>carbon dioxide.38-22-03. Commission authority. The commission has authority:1.Over all persons and property necessary to administer and enforce this chapter and<br>its objectives.2.To regulate activities relating to a storage facility, including construction, operation,<br>and closure.3.To enter, at a reasonable time and manner, a storage facility to inspect equipment<br>and facilities; to observe, monitor, and investigate operations; and to inspect records<br>required to be maintained at the facility.Page No. 14.To require that storage operators provide assurance, including bonds, that money is<br>available to fulfill the storage operator's duties.5.To exercise continuing jurisdiction over storage operators and storage facilities,<br>including the authority, after notice and hearing, to amend provisions in a permit and<br>to revoke a permit.6.To dissolve or change the boundaries of any commission-established oil or gas field<br>or unit that is within or near a storage reservoir's boundaries.7.To grant, for good cause, exceptions to this chapter's requirements and<br>implementing rules.38-22-04. Permit required - Permit transfer. Geologic storage is allowed if permittedby the commission. A permit may be transferred if the commission consents.38-22-05. Permit applications, fees, costs, and priorities - Carbon dioxide storagefacility administrative fund.1.A person applying for a permit shall:a.Comply with application requirements set by the commission.b.Pay a fee in an amount set by the commission. The amount of the fee must be<br>set by rule and must be based on the commission's anticipated cost of<br>processing the application. The fee must be deposited in the carbon dioxide<br>storage facility administrative fund.c.Pay to the commission the costs the commission incurs in publishing notices<br>for hearings and holding hearings on permit applications.2.In processing permit applications the commission shall give priority to storage<br>operators who intend to store carbon dioxide produced in North Dakota.38-22-06. Permit hearing - Hearing notice.1.The commission shall hold a public hearing before issuing a permit.2.Notice of the hearing must be published for two consecutive weeks in the official<br>newspaper of the county or counties where the storage reservoir is proposed to be<br>located and in any other newspaper the commission requires. Publication deadlines<br>must comply with commission requirements.3.Notice of the hearing must be given to each mineral lessee, mineral owner, and pore<br>space owner within the storage reservoir and within one-half mile of the storage<br>reservoir's boundaries.4.Notice of the hearing must be given to each surface owner of land overlying the<br>storage reservoir and within one-half mile of the reservoir's boundaries.5.Notice of the hearing must be given to any additional persons that the commission<br>requires.6.Service of hearing notices required by this section must conform to personal service<br>provisions in rule 4 of the North Dakota Rules of Civil Procedure.7.Hearing notices required by this section must comply with deadlines set by the<br>commission.Page No. 28.Hearing notices required by this section must contain the information the<br>commission requires.38-22-07. Permit consultation. Before issuing a permit, the commission shall consultthe state department of health.38-22-08. Permit requirements. Before issuing a permit, the commission shall find:1.That the storage operator has complied with all requirements set by the commission.2.That the storage facility is suitable and feasible for carbon dioxide injection and<br>storage.3.That the carbon dioxide to be stored is of a quality that allows it to be safely and<br>efficiently stored in the storage reservoir.4.That the storage operator has made a good-faith effort to get the consent of all<br>persons who own the storage reservoir's pore space.5.That the storage operator has obtained the consent of persons who own at least<br>sixty percent of the storage reservoir's pore space.6.Whether the storage facility contains commercially valuable minerals and, if it does,<br>a permit may be issued only if the commission is satisfied that the interests of the<br>mineral owners or mineral lessees will not be adversely affected or have been<br>addressed in an arrangement entered into by the mineral owners or mineral lessees<br>and the storage operator.7.That the proposed storage facility will not adversely affect surface waters or<br>formations containing fresh water.8.That carbon dioxide will not escape from the storage reservoir.9.That substances that compromise the objectives of this chapter or the integrity of a<br>storage reservoir will not enter a storage reservoir.10.That the storage facility will not endanger human health nor unduly endanger the<br>environment.11.That the storage facility is in the public interest.12.That the horizontal and vertical boundaries of the storage reservoir are defined.<br>These boundaries must include buffer areas to ensure that the storage facility is<br>operated safely and as contemplated.13.That the storage operator will establish monitoring facilities and protocols to assess<br>the location and migration of carbon dioxide injected for storage and to ensure<br>compliance with all permit, statutory, and administrative requirements.14.That all nonconsenting pore space owners are or will be equitably compensated.38-22-09. Permit provisions. The commission may include in a permit or order allthings necessary to carry out this chapter's objectives and to protect and adjust the respective<br>rights and obligations of persons affected by geologic storage.38-22-10. Amalgamating property interests. If a storage operator does not obtain theconsent of all persons who own the storage reservoir's pore space, the commission may require<br>that the pore space owned by nonconsenting owners be included in a storage facility and subject<br>to geologic storage.Page No. 338-22-11.Certificate.When the commission issues a permit it shall also issue acertificate stating that the permit has been issued, describing the area covered, and containing<br>other information the commission deems appropriate. The commission shall file a copy of the<br>certificate with the county recorder in the county or counties where the storage facility is located.38-22-12. Environmental protection - Reservoir integrity.1.The commission shall take action to ensure that a storage facility does not cause<br>pollution or create a nuisance. For the purposes of this provision and in applying<br>other laws, carbon dioxide stored, and which remains in storage under a<br>commission permit, is not a pollutant nor does it constitute a nuisance.2.The commission's authority in subsection 1 does not limit the jurisdiction held by the<br>state department of health. Nothing else in this chapter limits the jurisdiction held by<br>the state department of health.3.The commission shall take action to ensure that substances that compromise the<br>objectives of this chapter or the integrity of a storage reservoir do not enter a storage<br>reservoir.4.The commission shall take action to ensure that carbon dioxide does not escape<br>from a storage facility.38-22-13. Preservation of rights. Nothing in this chapter nor the issuing of a permit:1.Prejudices the rights of property owners within a storage facility to exercise rights<br>that have not been committed to a storage facility.2.Prevents a mineral owner or mineral lessee from drilling through or near a storage<br>reservoir to explore for and develop minerals, provided the drilling, production, and<br>related activities comply with commission requirements that preserve the storage<br>facility's integrity and protect this chapter's objectives.38-22-14. Fees - Carbon dioxide storage facility administrative fund - Continuingappropriation.1.Storage operators shall pay the commission a fee on each ton of carbon dioxide<br>injected for storage. The fee must be in the amount set by commission rule. The<br>amount must be based on the commission's anticipated expenses that it will incur in<br>regulating storage facilities during their construction, operational, and preclosure<br>phases.2.The fee must be deposited in the carbon dioxide storage facility administrative fund.<br>The fund must be maintained as a special fund and all money in the fund is<br>appropriated and may be used only for defraying the commission's expenses in<br>processing permit applications; regulating storage facilities during their construction,<br>operational, and preclosure phases; and making storage amount determinations<br>under section 38-22-23.The commission, however, through a cooperativeagreement with another state agency, may use the fund to compensate the<br>cooperating agency for expenses the cooperating agency incurs in carrying out<br>regulatory responsibilities that agency may have over a storage facility.Interestearned by the fund must be deposited in the fund.38-22-15.Fees - Carbon dioxide storage facility trust fund - Continuingappropriation.1.Storage operators shall pay the commission a fee on each ton of carbon dioxide<br>injected for storage. The fee must be in the amount set by commission rule. ThePage No. 4amount must be based on the commission's anticipated expenses associated with<br>the long-term monitoring and management of a closed storage facility.2.The fee must be deposited in the carbon dioxide storage facility trust fund. The fund<br>must be maintained as a special fund and all money in the fund is appropriated and<br>may be used only for defraying expenses the commission incurs in long-term<br>monitoring and management of a closed storage facility. The commission, however,<br>through a cooperative agreement with another state agency, may use the fund to<br>compensate the cooperating agency for expenses the cooperating agency incurs in<br>carrying out regulatory responsibilities that agency may have over a storage facility.<br>Interest earned by the fund must be deposited in the fund.3.The industrial commission shall file with the director of the legislative council a report<br>discussing whether the amount in the carbon dioxide storage facility trust fund and<br>fees being paid into it are sufficient to satisfy the fund's objectives. The first report is<br>due in December of 2014 and subsequent reports are due every four years<br>thereafter.38-22-16. Title to carbon dioxide. The storage operator has title to the carbon dioxideinjected into and stored in a storage reservoir and holds title until the commission issues a<br>certificate of project completion. While the storage operator holds title, the operator is liable for<br>any damage the carbon dioxide may cause, including damage caused by carbon dioxide that<br>escapes from the storage facility.38-22-17. Certificate of project completion - Release - Transfer of title and custody.1.After carbon dioxide injections into a reservoir end and upon application by the<br>storage operator, the commission shall consider issuing a certificate of project<br>completion.2.The certificate may only be issued after public notice and hearing. The commission<br>shall establish notice requirements for this hearing.3.The certificate may only be issued after the commission has consulted with the state<br>department of health.4.The certificate may not be issued until at least ten years after carbon dioxide<br>injections end.5.The certificate may only be issued if the storage operator:a.Is in full compliance with all laws governing the storage facility.b.Shows that it has addressed all pending claims regarding the storage facility's<br>operation.c.Shows that the storage reservoir is reasonably expected to retain the carbon<br>dioxide stored in it.d.Shows that the carbon dioxide in the storage reservoir has become stable.<br>Stored carbon dioxide is stable if it is essentially stationary or, if it is migrating<br>or may migrate, that any migration will be unlikely to cross the storage reservoir<br>boundary.e.Shows that all wells, equipment, and facilities to be used in the postclosure<br>period are in good condition and retain mechanical integrity.f.Shows that it has plugged wells, removed equipment and facilities, and<br>completed reclamation work as required by the commission.Page No. 56.Once a certificate is issued:a.Title to the storage facility and to the stored carbon dioxide transfers, without<br>payment of any compensation, to the state.b.Title acquired by the state includes all rights and interests in, and all<br>responsibilities associated with, the stored carbon dioxide.c.The storage operator and all persons who generated any injected carbon<br>dioxide are released from all regulatory requirements associated with the<br>storage facility.d.Any bonds posted by the storage operator must be released.e.Monitoring and managing the storage facility is the state's responsibility to be<br>overseen by the commission until such time as the federal government<br>assumes responsibility for the long-term monitoring and management of<br>storage facilities.38-22-18. Penalties.1.A person who violates a provision of this chapter or a commission rule or order<br>under this chapter is subject to a civil penalty imposed by the commission or a court<br>not to exceed twelve thousand five hundred dollars for each offense, and each day's<br>violation is a separate offense. Paying the penalty does not make legal an illegal act<br>nor relieve a person on whom the penalty is imposed from correcting the violation or<br>from liability for damages caused by the violation.2.In determining the amount of the penalty, the commission shall consider:a.The nature of the violation, including its circumstances and gravity, and the<br>hazard or potential hazard to the public's or a private person's health, safety,<br>and economic welfare.b.The economic or environmental harm caused by the violation.c.The economic value or other advantage gained by the person committing the<br>violation.d.The history of previous violations.e.The amount necessary to deter future violations.f.Efforts to correct the violation.g.Other matters justice requires.38-22-19. Enhanced recovery projects.1.This chapter does not apply to applications filed with the commission proposing to<br>use carbon dioxide for an enhanced oil or gas recovery project, rather such<br>applications will be processed under chapter 38-08.2.The commission may allow an enhanced oil or gas recovery project to be converted<br>to a storage facility.In considering whether to approve a conversion, and uponconversion, the provisions of this chapter and its implementing rules apply, but if<br>during the conversion process unique circumstances arise, the commission, to<br>better ensure that the chapter's objectives are fulfilled, may waive such provisions<br>and may impose additional ones.Page No. 638-22-20. Cooperative agreements and contracts.1.The commission may enter into agreements with other governments, government<br>entities, and state agencies for the purpose of carrying out this chapter's objectives.2.The commission may enter into contracts with private persons to assist it in carrying<br>out this chapter's objectives.Unless the circumstances require otherwise, thecommission shall, in entering such contracts, follow the process set out in section<br>38-08-04.4. If an emergency exists the commission may enter contracts without<br>public notice and without competitive bidding.38-22-21. Trusts, monopolies, restraint of trade. Cooperative operation of a storagefacility permitted by the commission does not violate North Dakota statutes relating to trusts,<br>monopolies, or restraint of trade.38-22-22.Participation of public interests.The entity or official controlling stateinterests or the interests of political subdivisions is authorized to consent to and participate in a<br>geologic storage project.38-22-23. Determining storage amounts - Carbon credits - Fee.1.The commission, under procedures and criteria it may adopt, shall determine the<br>amount of injected carbon dioxide stored in a reservoir that has been or is being<br>used for an enhanced oil or gas recovery project. The commission may also make<br>such a determination for carbon dioxide stored under this chapter.2.The purpose for determining storage amounts is to facilitate using the stored carbon<br>dioxide for such matters as carbon credits, allowances, trading, emissions<br>allocations, and offsets, and for other similar purposes.3.The commission may charge a reasonable fee to the person requesting a storage<br>determination. The fee must be set by rule.4.Fees the commission receives for storage determinations must be deposited into the<br>carbon dioxide storage facility administrative fund.Page No. 7Document Outlinechapter 38-22 carbon dioxide underground storage