New Mexico Carbon Dioxide Storage Unit Agreement

• Category: Oil Gas and Minerals - Agreements
• State: Multi-State
• Control #: US-OG-953
• Format: Word; Rich Text

Description

This form is a carbon dioxide storage unit agreement. The New Mexico Carbon Dioxide Storage Unit Agreement is a legal arrangement that governs the establishment and operation of carbon dioxide (CO2) storage units in the state of New Mexico. This agreement aims to regulate the safe and efficient storage of CO2 in underground reservoirs to mitigate climate change impacts and reduce greenhouse gas emissions. Carbon dioxide storage unit agreements in New Mexico can be categorized into two main types: 1. Voluntary Agreements: These agreements are entered into voluntarily by the owners or operators of CO2 storage facilities, such as power plants, industrial facilities, or petroleum refineries. In these cases, the agreement outlines the responsibilities, rights, and obligations of the storage unit operator and the regulatory authorities, detailing the procedures for CO2 injection, monitoring, reporting, and closure. 2. Regulatory Agreements: These are agreements mandated by regulatory authorities, such as the New Mexico Environment Department or the Oil Conservation Division. Regulatory agreements are typically required for larger-scale CO2 storage projects, often associated with carbon capture and storage (CCS) systems. The agreement outlines the conditions for obtaining permits, conducting environmental impact assessments, reporting requirements, and monitoring and verification protocols. The New Mexico Carbon Dioxide Storage Unit Agreement addresses various key aspects such as: 1. Permitting and Licensing: The agreement specifies the criteria and procedures for obtaining permits initiating CO2 storage operations. It also defines the responsibilities and prerequisites for license renewal and modifications. 2. Operational Requirements: The agreement establishes technical and operational standards for the design, construction, operation, and closure of CO2 storage units. This includes guidelines for site selection, storage capacity assessment, well drilling, casing, and abandonment procedures. 3. Injection and Monitoring: The agreement outlines protocols and criteria for CO2 injection into designated storage formations, including injection rates, pressures, and compatibility criteria. It also details monitoring and reporting obligations, ensuring continuous measurement and assessment of CO2 storage performance and potential risks. 4. Environmental Considerations: The agreement addresses environmental concerns by establishing regulations for baseline assessments, groundwater monitoring, and surface casing requirements to prevent CO2 leakage and protect natural resources. 5. Liability and Financial Assurance: The agreement defines liability and financial responsibilities associated with CO2 storage operations, including provisions for potential damages, insurance, and financial assurance mechanisms required by regulatory authorities. 6. Closure and Post-closure Procedures: The agreement outlines requirements and procedures for sealing and closing injection wells once CO2 injection ceases. It also defines the responsibilities of the storage unit operator for long-term site monitoring, verification, and the potential need for corrective actions. The New Mexico Carbon Dioxide Storage Unit Agreement plays a vital role in promoting CO2 storage projects in the state, enabling the development of innovative carbon management technologies and supporting measures to tackle climate change.

The New Mexico Carbon Dioxide Storage Unit Agreement is a legal arrangement that governs the establishment and operation of carbon dioxide (CO2) storage units in the state of New Mexico. This agreement aims to regulate the safe and efficient storage of CO2 in underground reservoirs to mitigate climate change impacts and reduce greenhouse gas emissions. Carbon dioxide storage unit agreements in New Mexico can be categorized into two main types: 1. Voluntary Agreements: These agreements are entered into voluntarily by the owners or operators of CO2 storage facilities, such as power plants, industrial facilities, or petroleum refineries. In these cases, the agreement outlines the responsibilities, rights, and obligations of the storage unit operator and the regulatory authorities, detailing the procedures for CO2 injection, monitoring, reporting, and closure. 2. Regulatory Agreements: These are agreements mandated by regulatory authorities, such as the New Mexico Environment Department or the Oil Conservation Division. Regulatory agreements are typically required for larger-scale CO2 storage projects, often associated with carbon capture and storage (CCS) systems. The agreement outlines the conditions for obtaining permits, conducting environmental impact assessments, reporting requirements, and monitoring and verification protocols. The New Mexico Carbon Dioxide Storage Unit Agreement addresses various key aspects such as: 1. Permitting and Licensing: The agreement specifies the criteria and procedures for obtaining permits initiating CO2 storage operations. It also defines the responsibilities and prerequisites for license renewal and modifications. 2. Operational Requirements: The agreement establishes technical and operational standards for the design, construction, operation, and closure of CO2 storage units. This includes guidelines for site selection, storage capacity assessment, well drilling, casing, and abandonment procedures. 3. Injection and Monitoring: The agreement outlines protocols and criteria for CO2 injection into designated storage formations, including injection rates, pressures, and compatibility criteria. It also details monitoring and reporting obligations, ensuring continuous measurement and assessment of CO2 storage performance and potential risks. 4. Environmental Considerations: The agreement addresses environmental concerns by establishing regulations for baseline assessments, groundwater monitoring, and surface casing requirements to prevent CO2 leakage and protect natural resources. 5. Liability and Financial Assurance: The agreement defines liability and financial responsibilities associated with CO2 storage operations, including provisions for potential damages, insurance, and financial assurance mechanisms required by regulatory authorities. 6. Closure and Post-closure Procedures: The agreement outlines requirements and procedures for sealing and closing injection wells once CO2 injection ceases. It also defines the responsibilities of the storage unit operator for long-term site monitoring, verification, and the potential need for corrective actions. The New Mexico Carbon Dioxide Storage Unit Agreement plays a vital role in promoting CO2 storage projects in the state, enabling the development of innovative carbon management technologies and supporting measures to tackle climate change.