Delaware Carbon Dioxide Storage and Secondary Recovery Unit Agreement

• Category: Oil Gas and Minerals - Agreements
• State: Multi-State
• Control #: US-OG-950
• Format: Word; Rich Text

Description

This form is a carbon dioxide storage and secondary recovery unit agreement. Delaware Carbon Dioxide Storage and Secondary Recovery Unit Agreement, commonly referred to as Delaware CO2 Storage and Secondary Recovery Agreement, is an essential legal framework that governs the utilization of carbon dioxide (CO2) for enhanced oil recovery (FOR) and storage purposes in Delaware, USA. The agreement outlines the terms and conditions under which CO2 can be injected into underground reservoirs to enhance oil extraction and simultaneously store CO2 to mitigate greenhouse gas emissions. It sets forth detailed guidelines for operators, stakeholders, and regulatory bodies to ensure safe and environmentally responsible operations. Key features of the Delaware CO2 Storage and Secondary Recovery Unit Agreement include: 1. Scope and Purpose: The agreement defines the objectives and intent of implementing CO2-EOR and storage operations within predefined geographical boundaries in Delaware. It highlights the potential benefits of this practice, such as increased oil production, economic growth, and CO2 emission reduction. 2. Regulatory Compliance: It outlines the regulatory framework that governs the agreement and ensures compliance with relevant federal, state, and local regulations. This includes permits, reporting requirements, monitoring protocols, and financial assurances to cover potential risks associated with CO2 storage and FOR operations. 3. Unitization and Pooling: The agreement facilitates the unitization and pooling of oil and gas leases within the specified region, allowing multiple operators to collaborate and collectively manage the reservoir for effective CO2-EOR and storage operations. It establishes guidelines for unitized operations, including cost allocation, production allocation, and coordination among leaseholders. 4. CO2 Source and Transportation: It addresses the source of CO2 for injection purposes, which could range from natural CO2 reservoirs, anthropogenic CO2 capture facilities, or imported CO2. The agreement covers the infrastructure, pipelines, and transportation required to deliver the CO2 to the injection sites, ensuring the secure and efficient transfer of the greenhouse gas. 5. Liability and Monitoring: The agreement emphasizes the need for ongoing monitoring and verification of injected CO2 and resultant reservoir behavior. It defines liability and the responsibilities of operators in case of incidents or leakage. Regular monitoring of the stored CO2 ensures its long-term permanence and provides valuable data for future storage projects. Different types of Delaware Carbon Dioxide Storage and Secondary Recovery Unit Agreements may exist based on the specific characteristics of each operation. For example: 1. Interstate Agreement: In cases where CO2 is sourced from neighboring states, an interstate agreement may be required to facilitate the transport and injection of CO2 across state lines. 2. Cross-Border Agreement: When the Delaware reservoir extends beyond state boundaries, a cross-border agreement with neighboring states or jurisdictions may be necessary to manage the unitized operations and CO2 storage. 3. Industry-Specific Agreements: Depending on the participating industries, specific agreements may be devised to address unique requirements. These can include agreements between oil and gas operators, CO2 capture facilities, CO2 transportation companies, and environmental regulatory bodies. Overall, Delaware Carbon Dioxide Storage and Secondary Recovery Unit Agreement provides a comprehensive legal framework for the sustainable utilization of CO2-EOR and storage projects. It ensures the economic benefits of enhanced oil recovery while addressing environmental concerns and contributing to the mitigation of greenhouse gas emissions.

Delaware Carbon Dioxide Storage and Secondary Recovery Unit Agreement, commonly referred to as Delaware CO2 Storage and Secondary Recovery Agreement, is an essential legal framework that governs the utilization of carbon dioxide (CO2) for enhanced oil recovery (FOR) and storage purposes in Delaware, USA. The agreement outlines the terms and conditions under which CO2 can be injected into underground reservoirs to enhance oil extraction and simultaneously store CO2 to mitigate greenhouse gas emissions. It sets forth detailed guidelines for operators, stakeholders, and regulatory bodies to ensure safe and environmentally responsible operations. Key features of the Delaware CO2 Storage and Secondary Recovery Unit Agreement include: 1. Scope and Purpose: The agreement defines the objectives and intent of implementing CO2-EOR and storage operations within predefined geographical boundaries in Delaware. It highlights the potential benefits of this practice, such as increased oil production, economic growth, and CO2 emission reduction. 2. Regulatory Compliance: It outlines the regulatory framework that governs the agreement and ensures compliance with relevant federal, state, and local regulations. This includes permits, reporting requirements, monitoring protocols, and financial assurances to cover potential risks associated with CO2 storage and FOR operations. 3. Unitization and Pooling: The agreement facilitates the unitization and pooling of oil and gas leases within the specified region, allowing multiple operators to collaborate and collectively manage the reservoir for effective CO2-EOR and storage operations. It establishes guidelines for unitized operations, including cost allocation, production allocation, and coordination among leaseholders. 4. CO2 Source and Transportation: It addresses the source of CO2 for injection purposes, which could range from natural CO2 reservoirs, anthropogenic CO2 capture facilities, or imported CO2. The agreement covers the infrastructure, pipelines, and transportation required to deliver the CO2 to the injection sites, ensuring the secure and efficient transfer of the greenhouse gas. 5. Liability and Monitoring: The agreement emphasizes the need for ongoing monitoring and verification of injected CO2 and resultant reservoir behavior. It defines liability and the responsibilities of operators in case of incidents or leakage. Regular monitoring of the stored CO2 ensures its long-term permanence and provides valuable data for future storage projects. Different types of Delaware Carbon Dioxide Storage and Secondary Recovery Unit Agreements may exist based on the specific characteristics of each operation. For example: 1. Interstate Agreement: In cases where CO2 is sourced from neighboring states, an interstate agreement may be required to facilitate the transport and injection of CO2 across state lines. 2. Cross-Border Agreement: When the Delaware reservoir extends beyond state boundaries, a cross-border agreement with neighboring states or jurisdictions may be necessary to manage the unitized operations and CO2 storage. 3. Industry-Specific Agreements: Depending on the participating industries, specific agreements may be devised to address unique requirements. These can include agreements between oil and gas operators, CO2 capture facilities, CO2 transportation companies, and environmental regulatory bodies. Overall, Delaware Carbon Dioxide Storage and Secondary Recovery Unit Agreement provides a comprehensive legal framework for the sustainable utilization of CO2-EOR and storage projects. It ensures the economic benefits of enhanced oil recovery while addressing environmental concerns and contributing to the mitigation of greenhouse gas emissions.