S T A T E O F N E W Y O R K
________________________________________________________________________
5836--A
2009-2010 Regular Sessions
I N A S S E M B L Y
February 20, 2009
___________
Introduced by M. of A. PARMENT -- read once and referred to the Commit-
tee on Environmental Conservation -- committee discharged, bill
amended, ordered reprinted as amended and recommitted to said commit-
tee
AN ACT to amend the environmental conservation law, in relation to spec-
ifying ownership of pore space in strata underlying the surface of
land and water; and in relation to geologic carbon dioxide sequestra-
tion
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Legislative intent. It is the intent of the legislature to
clarify the ownership of pore space underlying the surface of the lands
and waters of this state. All conveyances of interests in real property
on and after the effective date of this act shall be subject to the
provisions of this act. All conveyances of real property made prior to
the effective date of this act shall be construed in accordance with the
provisions of this act unless a person claiming an ownership interest
contrary to the provisions of this act establishes such ownership by a
preponderance of the evidence in an action to establish ownership of
such interest.
S 2. The environmental conservation law is amended by adding a new
section 23-1309 to read as follows:
S 23-1309. OWNERSHIP OF PORE SPACE UNDERLYING SURFACES.
1. THE OWNERSHIP OF ALL PORE SPACE IN ALL STRATA BELOW THE SURFACE
LANDS AND WATERS OF THIS STATE IS DECLARED TO BE VESTED IN THE SEVERAL
OWNERS OF THE SURFACE ABOVE THE STRATA.
2. A CONVEYANCE OF THE SURFACE OWNERSHIP OF REAL PROPERTY SHALL BE A
CONVEYANCE OF THE PORE SPACE IN ALL STRATA BELOW THE SURFACE OF SUCH
REAL PROPERTY UNLESS THE OWNERSHIP INTEREST IN SUCH PORE SPACE PREVIOUS-
LY HAS BEEN SEVERED FROM THE SURFACE OWNERSHIP OR IS EXPLICITLY EXCLUDED
IN THE CONVEYANCE. THE OWNERSHIP OF PORE SPACE IN STRATA MAY BE CONVEYED
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD07405-06-9
A. 5836--A 2
IN THE MANNER PROVIDED BY LAW FOR THE TRANSFER OF INTERESTS IN REAL
PROPERTY. NO AGREEMENT CONVEYING MINERAL OR OTHER INTERESTS UNDERLYING
THE SURFACE SHALL ACT TO CONVEY OWNERSHIP OF ANY PORE SPACE IN THE STRA-
TUM UNLESS THE AGREEMENT EXPLICITLY CONVEYS THAT OWNERSHIP INTEREST.
3. AS USED IN THIS SECTION, THE TERM "PORE SPACE" IS DEFINED TO MEAN
SUBSURFACE SPACE OF ANY SIZE AND WHETHER VACANT OR FILLED WHICH CAN BE
USED AS STORAGE SPACE FOR SUBSTANCES INJECTED INTO THE SPACE FOR STORAGE
SEQUESTRATION.
4. NOTHING IN THIS SECTION SHALL BE CONSTRUED TO CHANGE OR ALTER
MINERAL RIGHTS WHICH EXISTED PRIOR TO THE EFFECTIVE DATE OF THIS
SECTION.
5. ALL INSTRUMENTS WHICH TRANSFER THE RIGHTS TO PORE SPACE UNDER THIS
SECTION SHALL DESCRIBE THE SCOPE OF ANY RIGHT TO USE THE SURFACE ESTATE.
THE OWNER OF ANY PORE SPACE RIGHT SHALL HAVE NO RIGHT TO USE THE SURFACE
ESTATE BEYOND THAT SET OUT IN A PROPERLY RECORDED INSTRUMENT.
6. TRANSFERS OF PORE SPACE RIGHTS MADE AFTER THE EFFECTIVE DATE OF
THIS SECTION ARE NULL AND VOID AT THE OPTION OF THE OWNER OF THE SURFACE
ESTATE IF THE TRANSFER INSTRUMENT DOES NOT CONTAIN A SPECIFIC
DESCRIPTION OF THE LOCATION OF THE PORE SPACE. THE VALIDITY OF PORE
SPACE RIGHTS UNDER THIS SUBDIVISION SHALL NOT AFFECT THE RESPECTIVE
LIABILITIES OF ANY PARTY AND SUCH LIABILITIES SHALL OPERATE IN THE SAME
MANNER AS IF THE PORE SPACE TRANSFER WERE VALID.
7. THIS SECTION SHALL NOT ALTER ANY LAW OF THE STATE REGARDING MINERAL
RIGHTS AND ANY RIGHT CREATED HEREUNDER SHALL NOT LIMIT THE RIGHT OF A
MINERAL OWNER OR HIS LESSEE TO ESTABLISH REASONABLE USE OF THE SURFACE
FOR THE PURPOSE OF MINERAL EXPLORATION AND PRODUCTION.
S 3. Article 23 of the environmental conservation law is amended by
adding a new title 14 to read as follows:
TITLE 14
GEOLOGIC SEQUESTRATION OF CARBON DIOXIDE
SECTION 23-1401. LEGISLATIVE INTENT.
23-1403. DEFINITIONS.
23-1405. OIL AND GAS ACTIVITIES AT GEOLOGIC CARBON DIOXIDE
SEQUESTRATION SITES.
23-1407. CARBON DIOXIDE SEQUESTRATION; PERMIT REQUIREMENTS.
23-1409. PROCEDURE FOR OBTAINING UNDERGROUND CARBON DIOXIDE
SEQUESTRATION PERMIT.
23-1411. AUTHORITY TO ACQUIRE PORE SPACE FOR CARBON DIOXIDE
SEQUESTRATION.
23-1413. IMPAIRMENT OF APPROVED PROJECTS.
23-1415. LIABILITY.
S 23-1401. LEGISLATIVE INTENT.
IT IS THE INTENT OF THE LEGISLATURE TO CLARIFY LEGAL AUTHORITY TO
PERMIT CARBON DIOXIDE SEQUESTRATION AND TO PROVIDE THE DEPARTMENT WITH
THE AUTHORITY TO REGULATE CARBON DIOXIDE SEQUESTRATION.
S 23-1403. DEFINITIONS.
AS USED IN THIS TITLE, THE FOLLOWING TERMS SHALL HAVE THE FOLLOWING
MEANINGS:
1. "GEOLOGIC CARBON DIOXIDE INJECTION AND SEQUESTRATION" MEANS THE
INJECTION OF CARBON DIOXIDE AND ASSOCIATED CONSTITUENTS INTO SUBSURFACE
GEOLOGIC FORMATIONS INTENDED TO PREVENT ITS RELEASE INTO THE ATMOSPHERE.
2. "GEOLOGIC SEQUESTRATION SITE" MEANS THE UNDERGROUND GEOLOGIC FORMA-
TIONS WHERE THE CARBON DIOXIDE IS INTENDED TO BE STORED.
3. "GEOLOGIC SEQUESTRATION FACILITIES" MEANS THE SURFACE EQUIPMENT
USED FOR TRANSPORT, STORAGE AND INJECTION OF CARBON DIOXIDE.
A. 5836--A 3
S 23-1405. OIL AND GAS ACTIVITIES AT GEOLOGIC CARBON DIOXIDE SEQUESTRA-
TION SITES.
NOTHING IN SECTION 23-1407 OF THIS TITLE SHALL BE DEEMED TO AFFECT THE
OTHERWISE LAWFUL RIGHT OF A SURFACE OR MINERAL OWNER TO DRILL OR BORE
THROUGH A GEOLOGIC CARBON DIOXIDE SEQUESTRATION SITE AS DEFINED BY
SECTION 23-1403 OF THIS TITLE IF DONE IN ACCORDANCE WITH THE RULES AND
REGULATIONS OF THE DEPARTMENT FOR PROTECTING THE GEOLOGIC CARBON DIOXIDE
SEQUESTRATION SITE AGAINST THE ESCAPE OF CARBON DIOXIDE.
S 23-1407. CARBON DIOXIDE SEQUESTRATION; PERMIT REQUIREMENTS.
1. THE GEOLOGIC SEQUESTRATION OF CARBON DIOXIDE IS PROHIBITED UNLESS
AUTHORIZED BY A PERMIT ISSUED BY THE DEPARTMENT.
2. THE INJECTION OF CARBON DIOXIDE FOR PURPOSES OF A PROJECT FOR
ENHANCED RECOVERY OF OIL OR OTHER MINERALS APPROVED BY THE DEPARTMENT
SHALL BE SUBJECT TO THE PROVISIONS OF THIS TITLE.
3. THE DEPARTMENT, AFTER RECEIVING PUBLIC COMMENT AND AFTER CONSULTA-
TION WITH THE STATE GEOLOGIST SHALL RECOMMEND TO THE COMMISSIONER RULES,
REGULATIONS AND STANDARDS FOR:
(A) THE CREATION OF SUBCLASSES OF WELLS WITHIN THE EXISTING UNDER-
GROUND INJECTION CONTROL (UIC) PROGRAM ADMINISTERED BY THE UNITED STATES
ENVIRONMENTAL PROTECTION AGENCY UNDER PART C OF THE SAFE DRINKING WATER
ACT TO PROTECT HUMAN HEALTH, SAFETY AND THE ENVIRONMENT AND ALLOW FOR
THE PERMITTING OF THE GEOLOGIC SEQUESTRATION OF CARBON DIOXIDE;
(B) REQUIREMENTS FOR THE CONTENT OF APPLICATIONS FOR GEOLOGIC SEQUES-
TRATION PERMITS. SUCH APPLICATIONS SHALL INCLUDE:
(I) A DESCRIPTION OF THE GENERAL GEOLOGY OF THE AREA TO BE AFFECTED BY
THE INJECTION OF CARBON DIOXIDE INCLUDING GEOCHEMISTRY, STRUCTURE AND
FAULTING, FRACTURING AND SEALS, STRATIGRAPHY AND LITHOLOGY INCLUDING
PETROPHYSICAL ATTRIBUTES;
(II) A CHARACTERIZATION OF THE INJECTION ZONE AND AQUIFERS ABOVE AND
BELOW THE INJECTION ZONE WHICH MAY BE AFFECTED INCLUDING APPLICABLE
PRESSURE AND FLUID CHEMISTRY DATA TO DESCRIBE THE PROJECTED EFFECTS OF
INJECTION ACTIVITIES;
(III) THE IDENTIFICATION OF ALL OTHER DRILL HOLES AND OPERATING WELLS
THAT EXIST WITHIN AND ADJACENT TO THE PROPOSED SEQUESTRATION SITE;
(IV) AN ASSESSMENT OF THE IMPACT TO FLUID RESOURCES ON SUBSURFACE
STRUCTURES AND THE SURFACE OF LANDS THAT MAY REASONABLY BE EXPECTED TO
BE IMPACTED AND THE MEASURES REQUIRED TO MITIGATE SUCH IMPACTS;
(V) PLANS AND PROCEDURES FOR ENVIRONMENTAL SURVEILLANCE AND EXCURSION
DETECTION, PREVENTION AND CONTROL PROGRAMS. FOR PURPOSES OF THIS
SECTION, "EXCURSION" SHALL MEAN THE DETECTION OF MIGRATING CARBON DIOX-
IDE AT OR BEYOND THE BOUNDARY OF THE GEOLOGIC SEQUESTRATION SITE;
(VI) A SITE AND FACILITIES DESCRIPTION, INCLUDING A DESCRIPTION OF THE
PROPOSED GEOLOGIC SEQUESTRATION FACILITIES AND DOCUMENTATION SUFFICIENT
TO DEMONSTRATE THAT THE APPLICANT HAS THE LEGAL RIGHT TO SEQUESTER
CARBON DIOXIDE AND ASSOCIATED CONSTITUENTS INTO THE PROPOSED GEOLOGIC
SEQUESTRATION SITE;
(VII) PROOF THAT THE PROPOSED INJECTION WELLS ARE, AT A MINIMUM,
DESIGNED TO THE CONSTRUCTION STANDARDS SET FORTH BY THE DEPARTMENT;
(VIII) A PLAN FOR PERIODIC MECHANICAL INTEGRITY TESTING OF ALL WELLS;
(IX) A MONITORING PLAN TO ASSESS THE MIGRATION OF THE INJECTED CARBON
DIOXIDE AND TO ENSURE THE RETENTION OF THE CARBON DIOXIDE IN THE GEOLOG-
IC SEQUESTRATION SITE. SUCH MONITORING PLAN SHALL INCLUDE PROVISIONS FOR
INDEPENDENT TESTING AND MONITORING OF THE INJECTED CARBON DIOXIDE
ACCEPTABLE TO THE DEPARTMENT;
(X) PROOF OF BONDING AND FINANCIAL ASSURANCE TO ENSURE THAT GEOLOGIC
SEQUESTRATION SITES AND FACILITIES WILL BE CONSTRUCTED, OPERATED AND
A. 5836--A 4
MAINTAINED IN ACCORDANCE WITH THE PURPOSES AND PROVISIONS OF THIS TITLE
AND THE RULES AND REGULATIONS PROMULGATED HEREUNDER;
(XI) A DETAILED PLAN FOR POST-INJECTION MONITORING, VERIFICATION,
MAINTENANCE AND MITIGATION;
(XII) PROOF OF NOTICE TO SURFACE OWNERS, MINERAL OWNERS AND OTHER
OWNERS OF RECORD OF SUBSURFACE INTERESTS AS TO THE CONTENTS OF SUCH
NOTICE. NOTICE REQUIREMENTS SHALL AT A MINIMUM REQUIRE:
(A) THE PUBLISHING OF NOTICE OF THE APPLICATION IN A NEWSPAPER OF
GENERAL CIRCULATION IN EACH COUNTY OF THE PROPOSED OPERATION AT WEEKLY
INTERVALS FOR FOUR CONSECUTIVE WEEKS; AND
(B) A COPY OF THE NOTICE SHALL ALSO BE MAILED TO ALL SURFACE OWNERS,
MINERAL OWNERS AND LESSEES OF RECORD LOCATED WITHIN ONE MILE OF THE
PROPOSED BOUNDARY OF THE GEOLOGIC SEQUESTRATION SITE AND THE OWNERS OF
RECORD OF OTHER SUBSURFACE INTERESTS.
(C) REQUIREMENTS FOR THE OPERATOR TO PROVIDE IMMEDIATE NOTICE TO THE
DEPARTMENT OF ANY EXCURSION AFTER THE EXCURSION IS DISCOVERED, FOLLOWED
BY WRITTEN NOTICE TO ALL SURFACE OWNERS, MINERAL OWNERS AND OWNERS OF
RECORD OF SUBSURFACE INTERESTS WITHIN THIRTY DAYS OF WHEN THE EXCURSION
IS DISCOVERED;
(D) PROCEDURES FOR THE TERMINATION OR MODIFICATION OF ANY APPLICABLE
UNDERGROUND INJECTION CONTROL (UIC) PERMIT ISSUED UNDER PART C OF THE
SAFE DRINKING WATER ACT IF AN EXCURSION CANNOT BE CONTROLLED OR MITI-
GATED; AND
(E) SUCH OTHER CONDITIONS AND REQUIREMENTS AS NECESSARY TO CARRY OUT
THIS SECTION.
4. THE DEPARTMENT SHALL HAVE JURISDICTION OVER ANY SUBSEQUENT
EXTRACTION OF SEQUESTERED CARBON DIOXIDE THAT IS INTENDED FOR COMMERCIAL
OR INDUSTRIAL PURPOSES.
S 23-1409. PROCEDURE FOR OBTAINING UNDERGROUND CARBON DIOXIDE SEQUESTRA-
TION PERMIT.
1. NO UNDERGROUND RESERVOIR SHALL BE DEVOTED TO THE SEQUESTRATION OF
CARBON DIOXIDE UNLESS THE PROSPECTIVE OPERATOR OF SUCH SEQUESTRATION
RESERVOIR SHALL HAVE RECEIVED FROM THE DEPARTMENT, AFTER APPROVAL IN
WRITING OF THE STATE GEOLOGIST, AN UNDERGROUND SEQUESTRATION PERMIT
WHICH SHALL BE IN FULL FORCE. THE APPLICATION FOR SAID PERMIT SHALL
INCLUDE THE FOLLOWING:
(A) A MAP SHOWING THE LOCATION AND BOUNDARIES OF THE PROPOSED UNDER-
GROUND SEQUESTRATION RESERVOIR;
(B) A REPORT CONTAINING SUFFICIENT DATA TO SHOW THAT THE RESERVOIR IS
ADAPTABLE FOR SEQUESTRATION PURPOSES;
(C) AN AFFIDAVIT SIGNED BY THE PROSPECTIVE OPERATOR TO THE EFFECT THAT
HE HAS OWNERSHIP OF AT LEAST SEVENTY-FIVE PERCENT OF THE PORE SPACE
RIGHTS IN THE TARGETED GEOLOGIC STRATA AND IN THE BUFFER ZONE ESTAB-
LISHED TO PROTECT THE SEQUESTRATION AS APPROVED BY THE DEPARTMENT,
CALCULATED ON THE BASIS OF SURFACE ACREAGE; AND SUCH AFFIDAVIT SHALL
ALSO SET FORTH THAT THE APPLICANT WILL AGREE AS A CONDITION TO THE
INSURANCE OF SUCH PERMIT THAT IT WILL THEREAFTER WITHIN A REASONABLE
TIME EITHER ACQUIRE BY NEGOTIATION, OR FILE AND PROCEED WITH CONDEMNA-
TION PROCEEDINGS TO ACQUIRE, ANY OUTSTANDING PORE SPACE RIGHTS IN THE
REMAINING RESERVOIR AND BUFFER ZONE ACREAGE; AND
(D) SUCH OTHER INFORMATION AS THE DEPARTMENT MAY REQUIRE.
2. THE PERMIT SHALL BE GRANTED WITHIN NINETY DAYS OF APPLICATION
UNLESS THE DEPARTMENT FINDS THAT THE APPLICATION AND THE INFORMATION
SUBMITTED WITH IT DO NOT MEET THE REQUIREMENTS OF THIS SECTION. THE
DEPARTMENT MAY REVOKE OR SUSPEND ANY UNDERGROUND SEQUESTRATION PERMIT IN
A. 5836--A 5
FORCE HEREUNDER FOR FAILURE TO COMPLY WITH ANY OF ITS PROVISIONS OR FOR
FAILURE TO COMPLY WITH SUBDIVISION THREE OF THIS SECTION.
3. EVERY OPERATOR SHALL FILE WITH THE DEPARTMENT ON OR BEFORE DECEMBER
THIRTY-FIRST OF EACH YEAR, A REPORT WITH RESPECT TO EACH UNDERGROUND
SEQUESTRATION OPERATED BY SUCH PERSON SHOWING ANY CHANGE IN:
(A) THE ESTIMATED SIZE IN SURFACE ACREAGE OR SHAPE OF THE RESERVOIR
AND THE BUFFER ZONE IF ANY;
(B) AN ESTIMATE OF TOTAL CAPACITY OF THE RESERVOIR;
(C) AN ESTIMATE OF WORKING CAPACITY OF THE RESERVOIR; AND
(D) ANY OTHER ENGINEERING, GEOLOGICAL OR OPERATIONAL DATA THAT MAY BE
REQUESTED BY THE DEPARTMENT.
4. THE APPLICANT FOR A PERMIT FOR THE FOLLOWING PURPOSES SHALL SUBMIT
WITH HIS APPLICATION THE FOLLOWING FEES:
(A) FOR A NEW UNDERGROUND SEQUESTRATION RESERVOIR, A FEE OF TEN THOU-
SAND DOLLARS; AND
(B) FOR A MODIFICATION OF THE SEQUESTRATION CAPACITY OF AN EXISTING
UNDERGROUND SEQUESTRATION RESERVOIR, A FEE OF FIVE THOUSAND DOLLARS.
S 23-1411. AUTHORITY TO ACQUIRE PORE SPACE FOR CARBON DIOXIDE SEQUESTRA-
TION.
1. ANY REGULATED PUBLIC UTILITY OR MUNICIPAL ELECTRIC CORPORATION
ENGAGED IN THE PRODUCTION OF ELECTRIC ENERGY FOR PUBLIC USE, WHICH HOLDS
AN UNDERGROUND SEQUESTRATION PERMIT FROM THE DEPARTMENT AND WHICH AFTER
REASONABLE EFFORT IS UNABLE TO OBTAIN PORE SPACE RIGHTS IN REAL PROPERTY
AND WELLS THEREON NECESSARY FOR ACTIVATION, OPERATION, OR PROTECTION OF
THE SEQUESTRATION RESERVOIR AND ITS BUFFER ZONE SHALL, SUBJECT TO THE
APPLICABLE PROVISIONS OF THE EMINENT DOMAIN PROCEDURE LAW, HAVE THE
AUTHORITY TO ACQUIRE SUCH PORE SPACE RIGHTS AS MAY BE REQUIRED ADEQUATE-
LY TO EXAMINE, PREPARE, MAINTAIN, OPERATE AND PROTECT, AND FOR ACCESS TO
SUCH UNDERGROUND SEQUESTRATION RESERVOIR AND ITS BUFFER ZONE.
2. UNDERGROUND SEQUESTRATION OPERATORS AUTHORIZED BY THIS SECTION TO
MAINTAIN ACQUISITION PROCEEDINGS BEFORE FILING A SUIT FOR SUCH ACQUISI-
TION SHALL HAVE FILED WITH THE DEPARTMENT A MAP SHOWING THE LOCATION,
BOUNDARIES AND ESTIMATED SIZE OF SURFACE ACREAGE OF THE UNDERGROUND
SEQUESTRATION RESERVOIR AND ITS BUFFER ZONE.
3. ANY PERMIT HOLDER FOR AN UNDERGROUND CARBON DIOXIDE SEQUESTRATION
RESERVOIR WHO AT ANY TIME CONTROLS LESS THAN ONE HUNDRED PERCENT OF THE
PORE SPACE RIGHTS WITHIN THAT RESERVOIR AND ITS BUFFER ZONE IS PROHIBIT-
ED FROM INJECTING CARBON DIOXIDE INTO SUCH RESERVOIR.
4. ANY OPERATOR WHO SEEKS TO ACQUIRE UNDERGROUND CARBON DIOXIDE
SEQUESTRATION AND BUFFER ZONE PORE SPACE RIGHTS AS AUTHORIZED BY THIS
SECTION SHALL NAME AS PARTIES DEFENDANT ALL THE OWNERS OF ALL THE
PARCELS OF PROPERTY LOCATED WITHIN THE BOUNDARIES OF THE RESERVOIR AND
ITS BUFFER ZONE FROM WHOM PORE SPACE RIGHTS HAVE NOT PREVIOUSLY BEEN
LEGALLY ACQUIRED BY GRANT, LEASE, OR OTHER VOLUNTARY AGREEMENT;
PROVIDED, HOWEVER, THAT A FAILURE TO JOIN THE OWNERS OF ANY PARCEL IN
THE RESERVOIR AND ITS BUFFER ZONE DUE TO INADVERTENCE SHALL NOT CONSTI-
TUTE A JURISDICTIONAL DEFECT IN ANY PROCEEDING OF ACQUISITION.
5. THE VALUE OF ANY PROPERTY ACQUIRED PURSUANT TO THIS SECTION SHALL
INCLUDE THE VALUE OF ANY COMMERCIALLY RECOVERABLE NATIVE OIL AND GAS IN
PLACE TO THE EXTENT THAT THE HOLDER OF THE PROPERTY INTEREST BEING
ACQUIRED HAS A RIGHT THERETO. THE SAME PROVISION SHALL APPLY TO THE
HOLDER OF SALT RIGHTS.
6. THE COST OF, OR POSSIBLE NECESSITY FOR, PLUGGING ANY WELL OR WELLS,
WHEN SUCH PLUGGING OR REPLUGGING IS OR MAY BE MADE NECESSARY BY REASON
OF THE SEQUESTRATION USE MADE POSSIBLE OR FACILITATED BY ACQUISITION
A. 5836--A 6
SHALL NOT BE CONSIDERED IN COMPUTING THE VALUE OF PROPERTY OR ANY INTER-
EST THEREIN TAKEN UNDER THIS SECTION.
S 23-1413. IMPAIRMENT OF APPROVED PROJECTS.
NOTHING IN THIS TITLE IS INTENDED TO IMPEDE OR IMPAIR THE ABILITY OF
AN OIL AND GAS OPERATOR TO INJECT CARBON DIOXIDE THROUGH AN APPROVED
ENHANCED OIL OR GAS RECOVERY PROJECT AND ESTABLISH, VERIFY, REGISTER AND
SELL EMISSION REDUCTION CREDITS ASSOCIATED WITH THE PROJECT.
S 23-1415. LIABILITY.
OPERATIONAL LIABILITY SHALL REST WITH THE PERSON WHO HAS OWNERSHIP OF
AND CONTROL OVER THE PRODUCTION, CAPTURE, COMPRESSION, TRANSPORTATION,
INJECTION AND POST-INJECTION MONITORING OF CARBON DIOXIDE. THE OPERA-
TIONAL LIABILITY SHALL INCLUDE BUT NOT BE LIMITED TO ALL DAMAGE CAUSED
BY THE OPERATIONS NECESSARY TO CAPTURE, COMPRESS, TRANSPORT, INJECT AND
MONITOR CARBON DIOXIDE GENERATED BY THE OWNER OF THE SOURCE OF CARBON
DIOXIDE. THE OPERATOR SHALL PROVIDE INSURANCE AND BONDING SUFFICIENT TO
REASONABLY COMPENSATE INJURED PERSONS OR PARTIES FOR ALL AND ANY DAMAGES
INFLICTED BY THE OWNER'S OPERATIONS. SUFFICIENCY OF INSURANCE AND BOND-
ING WILL BE DETERMINED BY THE DEPARTMENT AFTER HEARING AND CONSULTATION
WITH THE STATE INSURANCE DEPARTMENT.
POST-INJECTION LIABILITY SHALL FOR A PERIOD OF TEN YEARS REST WITH THE
OWNER OF THE SEQUESTRATED CARBON DIOXIDE WHO SHALL HAVE A RESPONSIBILITY
TO MONITOR THE SEQUESTRATED CARBON DIOXIDE AND ASSURE THAT INCURSION IS
NOT OCCURRING AND HAS NOT OCCURRED. WHEN THE OWNER OF THE SEQUESTRATED
CARBON DIOXIDE HAS DEMONSTRATED TO THE STATE THAT NO MIGRATION OF CARBON
DIOXIDE HAS OCCURRED AND THAT ACCESS TO THE CARBON DIOXIDE HAS BEEN
PROPERLY SEALED TO THE SATISFACTION OF THE DEPARTMENT THE LONG TERM
POST-INJECTION LIABILITY SHALL BE TRANSFERRED TO THE STATE OF NEW YORK.
S 4. This act shall take effect immediately.