Montana Memorandum of Subsurface Underground Carbon Dioxide Storage Lease and Agreement

State:
Multi-State
Control #:
US-OG-1039
Format:
Word; 
Rich Text
Instant download

Description

This form is a memorandum of subsurface underground carbon dioxide storage lease and agreement.

How to fill out Memorandum Of Subsurface Underground Carbon Dioxide Storage Lease And Agreement?

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FAQ

(a) 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.

Funded by President Biden's Bipartisan Infrastructure Law, the two programs?Carbon Capture Large-Scale Pilots and Carbon Capture Demonstration Projects Program?aim to significantly reduce carbon dioxide (CO2) emissions from electricity generation and hard-to-abate industrial operations, an effort critical to addressing ...

To geologically store CO2, it must first be compressed, usually to a dense fluid state known as 'supercritical'. Supercritical means at a temperature and pressure above the critical temperature and pressure of carbon dioxide (31.1oC and greater than 73.9 bar, Fig. 1a).

As used in this section, pore space is real property and, until title to the pore space or rights, interests or estates in the pore space are separately transferred, pore space is property of the person or persons holding title to the land surface above it.

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.

[C]ourts in Montana, Oklahoma, Louisiana, New York, Michigan, West Virginia, New Mexico, and California all recognize the surface owner's ownership of underground pore space for gas storage operations.

CCS involves the capture of carbon dioxide (CO2) emissions from industrial processes, such as steel and cement production, or from the burning of fossil fuels in power generation. This carbon is then transported from where it was produced, via ship or in a pipeline, and stored deep underground in geological formations.

In Texas and most states, pore space belongs to the surface owner, absent an explicit severance. Some states are passing statutes prohibiting the severance of pore space as a separate estate, thereby securing ownership in the surface owners.

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Montana Memorandum of Subsurface Underground Carbon Dioxide Storage Lease and Agreement