055-3 Wyo. Code R. §§ 3-43 - Carbon Sequestration Unitization Process
(a) The purpose of
Wyo. Stat. Ann. §§
35-11-313 through
35-11-318
is the protection of corresponding rights, compliance with environmental
requirements and to facilitate the use and production of Wyoming energy
resources.
(i) "Corresponding rights" is
defined as the right of all pore space owners in a unit area who will be
affected by the unit operations, either now or in the future, to concurrently
share in the economic benefits generated by using the pore space in the unit
area.
(b) Any interested
person may file an application with the Wyoming Oil and Gas Conservation
Commission Supervisor requesting an order providing for the operation and
organization of a unit of one (1) or more parts as a geologic sequestration
site and for the pooling of interests in pore space in the proposed unit area
for the purpose of conducting the unit operation. The application shall contain
those items set out in Wyo. Stat. Ann. §
35-11-315(a). An application
checklist is provided to ensure all requirements for a complete application
have been met.
(c) Upon receipt of
an application, the Wyoming Oil and Gas Conservation Commission shall promptly
set the matter for hearing. In addition to any notice otherwise required by law
or the Commission's Rules, the applicant shall give notice of the hearing,
specifying the time and place of hearing, and describing briefly its purpose
and the land and pore space affected, to be mailed by certified mail at least
thirty (30) days prior to the hearing to all persons whose names and addresses
are required to be listed in the application. A copy of the notice and mailing
matrix shall be filed with the Commission.
(d) After considering the application and
hearing the evidence offered in connection therewith, the Wyoming Oil and Gas
Conservation Commission shall enter an order setting forth the following
findings as set out in Wyo. Stat. Ann. §
35-11-316(b) and approving
the proposed plan of unitization and proposed operating plan, if any, if the
commission finds that:
(i) The material
allegations of the application are substantially true;
(ii) The purposes specified in Wyo. Stat.
Ann. §
35-11-314 will be served by granting the
application;
(iii) The application
outlines operations that will comply with environmental requirements;
(iv) Granting the application will facilitate
the use and production of Wyoming energy resources;
(v) The applicant must provide the method
used to determine the quantity of pore space storage capacity to be allocated
to each separately owned tract within the permit area. This allocation
represents, so far as can be practically determined, each tract's actual share
of the pore space to be used in the sequestration permit area;
(A) Ratification of pore space storage
capacity within the unit area shall address the following possible pore space
use scenarios:
(I) Carbon dioxide injected
into the pore space for permanent carbon storage and sequestration only and
excluding carbon dioxide injected for enhanced recovery purposes;
(II) Water withdrawal from the pore space for
permanent carbon storage and sequestration only and excluding water withdrawal
associated with the production of hydrocarbons; and,
(III) A combination of carbon dioxide
injected into the pore space and excluding carbon dioxide injected for enhanced
recovery purposes or water withdrawal associated with the production of
hydrocarbons.
(vi) The method by which the allocation of
economic benefits generated from use of pore space within the unit area between
pore space owners; and between pore space owners and the unit operator or
others is fair and reasonable, taking into consideration the costs required to
capture, transport and sequester the carbon dioxide;
(vii) The method of generating economic
benefits from the use of pore space in the unit area is fair and equitable and
is reasonably designed to maximize the value of such use. (Economics related to
the sequestration of carbon are currently unknown. However, economic drivers
will be in place in the future to value the carbon being sequestered;
generation of electricity, methane from coal gasification, cap and trade
credits, as examples.).
(e) No order of the Wyoming Oil and Gas
Conservation Commission authorizing the commencement of unit operations shall
become effective until the plan of unitization has been signed or in writing
ratified or approved by those persons who own at least eighty percent (80%) of
the pore space storage capacity within the unit area.
(f) The Commission may hold supplemental
hearings and make findings as may be required to determine when and if the
consent will be obtained. Notice shall be given as required by
statute.
(g) If the required
percentages of consent have not been obtained within a period of six (6) months
from and after the date on which the order of approval is made, the order shall
be ineffective and revoked by the Commission, unless, for good cause shown, the
Commission extends that time.
(h)
Any interested person may file an application with the Wyoming Oil and Gas
Conservation Commission requesting an order applicable only to the proposed
unit area described in the application which shall provide for the percentage
of approval or ratification to be reduced from eighty percent (80%) to
seventy-five percent (75%). The application shall contain the information
required by Wyo. Stat. Ann. §
35-11-315(a) and any order
of the Commission entered pursuant to the application shall comply with Wyo.
Stat. Ann. §
35-11-316(b). Notice of the
hearing on the application shall be given in the same manner and to the same
persons as required by Wyo. Stat. Ann. §
35-11-316(a).
(i) An order entered by the Wyoming Oil and
Gas Conservation Commission under this section may be amended as provided by
Wyo. Stat. Ann. §
35-11-316(e).
(j) The Wyoming Oil and Gas Conservation
Commission, upon its own motion or upon application, and with notice and
hearing, may modify its order regarding the operation, size or other
characteristic of the unit area in order to prevent or assist in preventing a
substantial inequity resulting from operation of the unit, provided that no
such modification may amend any permit issued under Wyo. Stat. Ann.
§§
35-11-313 and
35-11-316(d).
(k) Any owner of pore space within a geologic
sequestration site who has not been included within a unitization application
or order authorizing a unit under this section, may petition for inclusion in
the unit area, as provided by Wyo. Stat. Ann. §
35-11-316(g).
Notes
State regulations are updated quarterly; we currently have two versions available. Below is a comparison between our most recent version and the prior quarterly release. More comparison features will be added as we have more versions to compare.
No prior version found.