Michigan Senate Bill SB1133

Michigan 2023-2024 Regular Session

• Introduced: 11/14/24
• Refer: 11/14/24
• Report Pass: 12/18/24
• Refer: 12/18/24

Caption

Natural resources: gas and oil; ownership and conveyance rights associated with pore space; establish. Creates new act. TIE BAR WITH: SB 1131'24, SB 1132'24

Impact

The proposed legislation could significantly impact the way subsurface rights are understood and managed in Michigan. By clarifying ownership and the conditions under which pore space can be severed or conveyed, SB1133 intends to create a more structured environment for those interested in utilizing subsurface formations for storage purposes. It ensures that any existing or future agreements regarding pore space are honored while safeguarding the rights of surface owners and mineral rights holders. This could lead to increased activity in carbon sequestration initiatives, addressing both energy needs and environmental concerns.

Summary

Senate Bill 1133, which is referred to as the 'Subsurface Pore Space Act', establishes clear definitions and ownership rights concerning subsurface pore space within Michigan. The bill articulates the rights of property owners to the pore space beneath their land, stipulating that unless otherwise specified, ownership of the pore space is retained by the owner of the overlying surface. The legislation aims to facilitate the storage of carbon dioxide and other substances by defining and clarifying the legal status of pore space in subsurface geological formations. This clarity is intended to stimulate investment and development in carbon capture and storage technologies.

Contention

Despite these intentions, there may be points of contention regarding the implications of SB1133 on existing land rights and the common law surrounding mineral rights. Critics may argue that while the bill enhances clarity for future transactions, it could also complicate negotiations for landowners who may be uncertain about their rights regarding pore space in relation to mineral extraction. The bill also emphasizes that it does not diminish existing rights related to mineral estates, which may provoke debate among stakeholders about the balance between environmental goals and property rights.