Illinois Carbon Dioxide Storage Lease (with Landowner)

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Multi-State
Control #:
US-OG-952
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This form is a carbon dioxide storage lease with landowner.
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  • Preview Carbon Dioxide Storage Lease (with Landowner)
  • Preview Carbon Dioxide Storage Lease (with Landowner)
  • Preview Carbon Dioxide Storage Lease (with Landowner)
  • Preview Carbon Dioxide Storage Lease (with Landowner)

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FAQ

Under Navigator's plan, Illinois would store carbon dioxide collected from 5 states. Industrial sites in Minnesota, Nebraska, South Dakota and Iowa would all send carbon dioxide through Navigator's pipeline to be sequestered in geologic formations in central Illinois.

The Pore Lease Oil & gas leases normally contain provisions allowing the lessee to reinject produced gas and water. These lessors are the mineral owners. Depending upon the lease they granted to a lessee, the ?minerals? that lessees may produce are frequently limited to oil & gas.

Creates the Carbon Dioxide Geologic Storage Act. Provides that the Act applies to carbon dioxide injections that commence on or after January 1, 2021. Provides that a storage operator may not operate a storage facility without a reservoir permit issued by the Department of Natural Resources.

The surface owner owns the geologic pore space and has storage rights.

The prevailing rule, often referred to as the American Rule, holds that the pore space is owned by the surface owner, rather than the mineral owner1. The overwhelming majority of jurisdictions follow the American Rule, including the states of Louisiana2, Oklahoma3, and New Mexico4.

In summary, landowners who own property own the air and the physical surface and subsurface (rocks, soil, and other immobile resources) as well as the fugitive resources that happen to be trapped in the rock pores of the physical property.

Geologists call it pore space. Similar to holes in a sponge, pore space is the empty space between particles of sand and sediment or the space within and between rocks.

Under American rule, the mineral estate holder owns the minerals but not the geologic formation. The surface owner owns the geologic pore space and has storage rights.

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Illinois Carbon Dioxide Storage Lease (with Landowner)