Louisiana Carbon Dioxide Storage Unit Agreement
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How to fill out Carbon Dioxide Storage Unit Agreement?
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FAQ
The economic viability of CCS for the oil and gas sector continues to rely heavily on federal and provincial government financial support. This is in contrast to renewable technologies, which have generally required government subsidies only in the initial development phases.
It is estimated that CCS costs ranged between 15 and 130 U.S. dollars per metric ton of carbon dioxide (tCO?), while the costs for direct air CCS ranged between 100 and 345 U.S. dollars per tCO?. In contrast, nature-based solutions such as afforestation and reforestation ranged between 45 and 240 U.S. dollars per tCO?.
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.
Farmers, ranchers, and landowners can produce and sell carbon offsets by capturing and storing emissions.
The analysis suggests coal-sourced CO2 emissions can be stored in this region at a cost of $52?$60 ton?1, whereas the cost to store emission from natural-gas-fired plants ranges from approximately $80 to $90. Storing emissions offshore increases the lowest total costs of CCS to over $60 per ton of CO2 for coal.
Louisiana legalized carbon capture and storage in the 2009 Louisiana Geologic Sequestration of Carbon Dioxide Act. CCS technology is integral to the Governor Edwards' Climate Action Plan that aims to reduce greenhouse gas emissions to net zero by 2050.
Louisiana has enacted legislation to limit private liability for sequestration of captured carbon dioxide by transferring ownership of sequestered carbon dioxide to the state after 10 years (contingent on showing the reasonable expectation of future mechanical integrity).