§ 9-17-164 — Certificate of Project Closure and Completion

Alabama § 9-17-164

• Jurisdiction: Alabama
• Title 9: Conservation and Natural Resources
• Ch. 17: Oil and Gas
• Art. 6: Underground Gas Storage
• Div. 2: Geologic Storage or Sequestration of Carbon Dioxide

Text

(a) A storage operator has title to all carbon dioxide injected and stored in a storage facility. A storage operator is liable for any damages attributed to its operations while holding title to the injected carbon dioxide.
(b) Upon all carbon dioxide injections into a storage facility ending and application by a storage facility operator, the board may issue a certificate of project closure and completion for the storage facility.
(c) A certificate of project closure and completion shall only be issued after all of the following have been satisfied:
(1) Notice and a public hearing on the issuance of the certificate are provided pursuant to Section 9-17-152(a).
(2) The board has consulted with the Alabama Department of Environmental Management regarding issuing the certificate.
(3) Ten or more years have passed from the date carbon dioxide injection into the storage facility ended.
(4) The storage operator has demonstrated all of the following to the satisfaction of the board:
a. The storage facility is in full compliance with all governing laws and rules.
b. The storage facility is reasonably expected to retain the carbon dioxide.
c. The carbon dioxide in the storage facility is stable. For purposes of this paragraph, carbon dioxide is stable if it is essentially stationary or, if it is migrating or may migrate, migration is unlikely to cross the underground reservoir boundary and is not expected to endanger any underground source of drinking water.
d. All wells, equipment, and facilities to be used in the post-closure period are in good condition and retain mechanical integrity.
e. All injection wells have been plugged, all related equipment and facilities used during the pre-closure period not necessary for long-term monitoring have been removed, and all reclamation work required by the board has been completed.
(d) Upon the issuance of a certificate of project closure and completion, all of the following shall occur:
(1) Title to equipment and facilities necessary for long-term monitoring and all carbon dioxide injected into the storage facility, without payment of any compensation, shall transfer to the state. Title acquired by the state includes all rights and interests in, and all responsibilities and liabilities associated with, all equipment and facilities used for long-term monitoring and the stored carbon dioxide within the storage facility. A storage operator may not transfer to the state, and the state may not accept, any property interests or rights that the storage operator does not own or have the authority to transfer.
(2) The storage operator and all persons that generated any injected carbon dioxide shall be released from all regulatory requirements associated with the storage facility.
(3) The storage operator shall be released from all bonds and other security posted by the storage operator.
(4) Monitoring and managing the storage facility shall become the responsibility of the state and be administered by the board unless an agency of the federal government assumes responsibility for the long-term monitoring and management of the storage facility.

Legislative History

(Act 2024-325, §2.)