Carbon storage bills receive initial approval

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CHEYENNE - A series of bills aimed at protecting the state's coal and encouraging a carbon storage industry in Wyoming are off to a quick start in the Legislature.

As the first week of the session wrapped up Friday, the House had already given initial approval to three bills to regulate the underground storage of carbon dioxide gas, which is thought by many scientists to contribute to global climate change. A fourth bill won approval from a legislative panel.

"I think it shows that the Republican leadership, particularly Speaker (Colin) Simpson, places high value on these bills," said Rep. Keith Gingery, R-Jackson, chairman of the House Judiciary Committee, which endorsed the bills Thursday.

The bills - House Bills 56, 57, 58 and 80 - build on and clarify existing carbon storage laws,and are part of the state's response to the demand for "clean" energy from large energy consuming states.

Officials hope that by capturing and storing CO2 underground, major power consumers such as California will continue to buy power generated with Wyoming coal.

Also, geologic structures such as the Rock Springs uplift are thought to be good candidates for CO2 storage sites, and could spark a lucrative carbon storage industry in Wyoming.

But companies have been mostly unwilling to invest in the projects without certainties about liability and other legal issues, officials said.

The new legislation is the latest effort to provide those certainties, and is among the most advanced in the nation and the world, state lawmakers said.

"This suite of bills is about affecting jobs and enhancing our economy," said Rep. Tom Lubnau, R-Gillette, one of the primary authors of the legislation.

- HB 56 clarifies that companies seeking permits to inject carbon dioxide underground must prove that the project will not harm deposits of oil, natural gas and other hydrocarbons.

- HB 57 clarifies how underground carbon storage will integrate into Wyoming's existing split-estate laws, which govern ownership of minerals and surface lands.

- HB 58 assigns liability for sequestered carbon dioxide to the companies that inject the carbon into the ground.

Also known as the "you inject it you own it bill," HB 58 makes certain that neither the owners of the underground storage space, nor the state will be liable for the CO2, officials said.

- House Bill 80, which was endorsed by the House Judiciary Committee on Friday, introduces a legal system for compensating landowners for use of the storage space under their land.

It also provides a mechanism for accessing underground storage space if the owners are unwilling to sell. The practice, called unitization, is common in oil and gas development in Wyoming, lawmakers said.

The only vocal opponent of the bills, Rep. David Miller, R-Riverton, called them "very lacking."

Miller, a mineral exploration geologist, indicated that underground carbon storage could ruin other minerals, including those whose value is not yet appreciated.

"We've got lots of minerals out there besides oil and gas," said Miller, who voted against similar legislation last year.

"Technology may make it possible to acquire new minerals, and we don't know what minerals will be important or valuable in the future," he added.

The bills will next be considered on second reading in the House.

Contact capital bureau reporter Jared Miller at (307) 632-1244 or jared.miller@trib.com

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