New Mexico 2025 Regular Session

New Mexico House Bill HB457 Compare Versions

Only one version of the bill is available at this time.

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28	28	HOUSE BILL 457
29	29	57
30	30	TH LEGISLATURE
31	31	-
32	32
33	33	STATE
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35	35	OF
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37	37	NEW
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39	39	MEXICO
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41	41	-
42	42	FIRST SESSION
43	43	,
44	44
45	45	2025
46	46	INTRODUCED BY
47	47	Meredith A. Dixon and William E. Sharer and Jack Chatfield
48	48	and Nathan P. Small and Steve D. Lanier
49	49	AN ACT
50	50	RELATING TO THE ENVIRONMENT; ENACTING THE GEOLOGIC CARBON
51	51	DIOXIDE SEQUESTRATION ACT; PROVIDING FOR UNITIZATION OF
52	52	FORMATIONS FOR SUBSURFACE SEQUESTRATION OF CARBON DIOXIDE;
53	53	CREATING THE OIL CONSERVATION DIVISION SYSTEMS AND HEARINGS
54	54	FUND; ESTABLISHING FEES.
55	55	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
56	56	SECTION 1. [NEW MATERIAL] SHORT TITLE.--This act may be
57	57	cited as the "Geologic Carbon Dioxide Sequestration Act".
58	58	SECTION 2. [NEW MATERIAL] DEFINITIONS.--As used in the
59	59	Geologic Carbon Dioxide Sequestration Act:
60	60	A. "carbon dioxide" means carbon dioxide produced
61	61	by anthropogenic sources or captured from the atmosphere,
62	62	including "qualified carbon oxides" as defined pursuant to
63	63	applicable federal law and "carbon dioxide stream" as may be
64	64	.228897.3 underscored material = new
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91	91	defined in federal law and regulations pertaining to class VI
92	92	carbon dioxide injection wells;
93	93	B. "commission" means the oil conservation
94	94	commission;
95	95	C. "director" means the director of the division;
96	96	D. "division" means the oil conservation division
97	97	of the energy, minerals and natural resources department;
98	98	E. "geologic sequestration" means the long- or
99	99	short-term underground sequestration of carbon dioxide within a
100	100	geologic stratum, formation, saline aquifer, cavity or void,
101	101	whether naturally or artificially created, including deep
102	102	saline aquifers, oil and gas reservoirs and unminable coal
103	103	seams, from which carbon dioxide does not escape to the
104	104	atmosphere;
105	105	F. "operator" means a person who has the right to
106	106	inject carbon dioxide for geologic sequestration into a
107	107	sequestration facility, whether for the person's own account or
108	108	for the account of others;
109	109	G. "pore space" means the empty space between rock
110	110	grains, fractures and voids in the earth's subsurface; "pore
111	111	space" is the available space within, and contained by,
112	112	geologic formations;
113	113	H. "sequestration facility" means carbon dioxide
114	114	injection wells, monitoring wells, science wells and any other
115	115	wells used for the injection of carbon dioxide in subsurface
116	116	.228897.3
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144	144	geologic formations, including underground equipment, surface
145	145	equipment, pipelines and buildings used for the purpose of
146	146	geologic sequestration of carbon dioxide. "Sequestration
147	147	facility" includes a facility that injects carbon dioxide for
148	148	secure geologic sequestration pursuant to applicable federal
149	149	laws, including a geologic sequestration project as may be
150	150	defined in federal regulations pertaining to federal
151	151	environmental protection agency class VI underground injection
152	152	control wells for carbon dioxide injection wells, but shall not
153	153	apply to underground injection control class II wells; and
154	154	I. "sequestration unit" means the geologic
155	155	formation or formations proposed for the injection of carbon
156	156	dioxide for geologic sequestration and the lands to be included
157	157	within the unit. "Sequestration unit" does not include oil and
158	158	gas units where carbon dioxide is injected for purposes of
159	159	enhancing oil and gas production.
160	160	SECTION 3. [NEW MATERIAL] APPLICABILITY--DIVISION
161	161	AUTHORITY--RULEMAKING.--
162	162	A. Geologic sequestration of carbon dioxide shall
163	163	be permitted pursuant to the Geologic Carbon Dioxide
164	164	Sequestration Act.
165	165	B. The Geologic Carbon Dioxide Sequestration Act
166	166	applies to sequestration facilities that commence injection of
167	167	carbon dioxide after the effective date of this 2025 act;
168	168	provided that sequestration facilities that commenced injection
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197	197	of carbon dioxide before the effective date of this 2025 act
198	198	may apply to the division for unitization pursuant to the
199	199	provisions of the Geologic Carbon Dioxide Sequestration Act.
200	200	C. The Geologic Carbon Dioxide Sequestration Act
201	201	does not apply to the injection of carbon dioxide in connection
202	202	with the enhanced oil and gas production operations.
203	203	D. The Geologic Carbon Dioxide Sequestration Act
204	204	does not supersede existing mineral rights, existing surface
205	205	rights or existing disposal rights.
206	206	E. The division has the jurisdiction and authority
207	207	necessary to enforce the provisions of the Geologic Carbon
208	208	Dioxide Sequestration Act and may adopt and promulgate rules
209	209	and issue orders for the implementation of the provisions of
210	210	that act.
211	211	SECTION 4. [NEW MATERIAL] ACQUISITION OF LANDS FOR
212	212	GEOLOGIC SEQUESTRATION.--
213	213	A. An operator that desires to form a sequestration
214	214	unit shall attempt to acquire by option, lease, conveyance or
215	215	other negotiated means the rights necessary for geologic
216	216	sequestration within the proposed sequestration unit prior to
217	217	resorting to the procedure for unitization of such interests
218	218	pursuant to Section 5 of the Geologic Carbon Dioxide
219	219	Sequestration Act.
220	220	B. The lands to be included shall be the reasonably
221	221	ascertained areal extent of migration of the sequestered carbon
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250	250	dioxide within the formation or formations based on known
251	251	geologic information available at the time of the application.
252	252	The sequestration unit shall also identify any necessary and
253	253	reasonable areal buffer and subsurface monitoring zones as
254	254	required by federal or state law, rule, regulation, order or
255	255	permit.
256	256	C. The commissioner of public lands or a state
257	257	agency may grant to an operator rights for geologic
258	258	sequestration on lands subject to its jurisdiction on such
259	259	terms as it finds are reasonable and that provide compensation
260	260	equal to the fair market value of the rights.
261	261	D. The division may grant to an operator the right
262	262	to form and to commence operations for the geologic
263	263	sequestration of carbon dioxide in accordance with the Geologic
264	264	Carbon Dioxide Sequestration Act.
265	265	SECTION 5. [NEW MATERIAL] UNITIZATION OF SEQUESTRATION
266	266	FACILITIES--CONTENTS OF APPLICATION.--
267	267	A. An operator may apply to the division for an
268	268	order unitizing a geologic formation or formations for geologic
269	269	sequestration of carbon dioxide to be included within the
270	270	proposed sequestration unit. The division shall issue the
271	271	order upon finding that the requirements of this section and
272	272	Section 6 of the Geologic Carbon Dioxide Sequestration Act have
273	273	been satisfied.
274	274	B. An application filed pursuant to this section
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303	303	shall contain:
304	304	(1) if required by the federal government, a
305	305	copy of a permit or draft permit for injection of carbon
306	306	dioxide pursuant to any applicable federal law;
307	307	(2) a description of the proposed geologic
308	308	formation or formations and a plat of the surface lands
309	309	proposed to be included in the proposed sequestration unit,
310	310	including identification of the buffer and subsurface
311	311	monitoring zones;
312	312	(3) the names and addresses of the owners of
313	313	the surface estate within the proposed sequestration unit and
314	314	of lands within one-half mile of the exterior boundary of the
315	315	proposed sequestration unit as disclosed by:
316	316	(a) the records of the county assessor
317	317	of each county in which the proposed sequestration unit is to
318	318	be located with respect to privately owned land; and
319	319	(b) the bureau of land management with
320	320	respect to federal lands, the commissioner of public lands with
321	321	respect to state trust lands and the applicable state agency
322	322	owning the surface estate with respect to lands owned by the
323	323	state but not subject to the jurisdiction of the commissioner
324	324	of public lands;
325	325	(4) the names and addresses of the owners of
326	326	the mineral estate and mineral lessees within the proposed
327	327	sequestration unit and for all lands within one-half mile of
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356	356	the exterior boundary of the proposed sequestration unit;
357	357	(5) the names and addresses of the owners of
358	358	the pore space estate within the proposed sequestration unit
359	359	and for all lands within one-half mile of the exterior boundary
360	360	of the proposed sequestration unit;
361	361	(6) evidence of the following:
362	362	(a) geologic evidence establishing the
363	363	capability of the formation to accept and sequester carbon
364	364	dioxide;
365	365	(b) an estimate of the quantity and
366	366	volume of carbon dioxide that is reasonably believed to be
367	367	capable of being sequestered in the sequestration unit;
368	368	(c) the anticipated pressure of each
369	369	formation proposed for sequestration and the anticipated
370	370	pressure required to inject carbon dioxide into the
371	371	sequestration unit;
372	372	(d) if available, the proposed locations
373	373	of wells, types of wells, anticipated total depth of the wells,
374	374	the casing program for the wells and the proposed locations of
375	375	sequestration facilities;
376	376	(e) the depth of all fresh water
377	377	aquifers and location of any water wells within the
378	378	sequestration unit and buffer zone;
379	379	(f) the date the proposed plan is
380	380	desired to become effective;
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409	409	(g) the anticipated date of the
410	410	commencement of development of sequestration facilities;
411	411	(h) the anticipated date of the
412	412	commencement of injection operations;
413	413	(i) the estimated period of time it will
414	414	take to complete the construction of the sequestration
415	415	facility;
416	416	(j) the estimated life of the injection
417	417	operations; and
418	418	(k) the estimated pressure in the
419	419	formation at the end of the injection operations;
420	420	(7) information on each of the facts required
421	421	to be found by the division pursuant to Section 6 of the
422	422	Geologic Carbon Dioxide Sequestration Act;
423	423	(8) the amount per acre or the amount per
424	424	volume of carbon dioxide injected that the operator proposes to
425	425	pay to compensate the owners of the surface estate, including
426	426	owners in the designated buffer area and, if severed, the
427	427	owners of the subsurface formation or formations containing
428	428	pore space within the sequestration unit in which the carbon
429	429	dioxide is to be injected for sequestration. Each owner of the
430	430	formation or formations shall be deemed for all purposes to
431	431	have an equal amount of capacity to store sequestered carbon
432	432	dioxide and shall be compensated on a surface acreage basis for
433	433	such injection and storage; and
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462	462	(9) the amount per acre that the operator
463	463	proposes to pay to compensate the surface owners or, if
464	464	severed, the owners of the formation or formations within the
465	465	buffer and monitoring zones.
466	466	SECTION 6. [NEW MATERIAL] UNITIZATION OF A SEQUESTRATION
467	467	UNIT--FINDINGS--RATIFICATION--AMENDMENTS--PETITIONS FOR
468	468	INCLUSION--RECORDING--LIEN FOR COSTS.--
469	469	A. Upon receipt of an application pursuant to
470	470	Section 5 of the Geologic Carbon Dioxide Sequestration Act, the
471	471	division shall set the matter for hearing and, in addition to
472	472	notice otherwise required by law or the division's rules, shall
473	473	cause the applicant to give notice of the hearing, specifying
474	474	the time and place of the hearing and describing briefly its
475	475	purpose and the land and formations affected, to be mailed by
476	476	certified mail at least thirty days prior to the hearing to all
477	477	persons whose names and addresses are required to be listed in
478	478	the application.
479	479	B. If the proposed unitization order concerns
480	480	unknown or non-locatable owners and interest holders, the
481	481	applicant shall publish notice once a week for two consecutive
482	482	weeks in the newspaper of the largest circulation in each
483	483	county in which the proposed sequestration unit is located and
484	484	shall file proof of notice with the division concurrently with
485	485	the application. The first notice shall appear at least thirty
486	486	days prior to, and the second notice no more than twenty-five
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515	515	days from, the hearing on the application for a sequestration
516	516	unit order. The notice shall:
517	517	(1) state that an application for a
518	518	sequestration unit has been filed with the division;
519	519	(2) describe the formation or formations and
520	520	land proposed to be unitized and the buffer area and any
521	521	monitoring area;
522	522	(3) in the case of an unknown owner or
523	523	interest holder, indicate the name of the last known owner or
524	524	interest holder;
525	525	(4) in the case of a non-locatable owner or
526	526	interest holder, identify the name of the owner or interest
527	527	holder and the owner's or interest holder's last known address;
528	528	and
529	529	(5) state that any person claiming an interest
530	530	in the formations or lands proposed to be unitized should
531	531	notify the director and the operator of the proposed
532	532	sequestration facility at the published address within twenty
533	533	days of the publication date of the most recent notice.
534	534	C. After considering the application and hearing
535	535	the evidence offered regarding the application, the division
536	536	may enter an order setting forth the following findings if
537	537	established by the evidence presented:
538	538	(1) the underground stratum or formation
539	539	sought to be unitized is suitable for the geologic
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568	568	sequestration of carbon dioxide and its use for such purposes
569	569	is in the public interest;
570	570	(2) the use of the underground stratum or
571	571	formation sought to be unitized will contain the carbon dioxide
572	572	and will not contaminate fresh water;
573	573	(3) the use of the underground stratum or
574	574	formation sought to be unitized will contain the carbon dioxide
575	575	and will not contaminate oil, gas, condensate, potash or other
576	576	commercial mineral deposits capable of being produced in paying
577	577	quantities, unless all the owners, mineral lessees and other
578	578	parties owning interests in such oil, gas, condensate, potash
579	579	or other commercial mineral deposits have consented to the
580	580	sequestration unit;
581	581	(4) the use of the underground stratum or
582	582	formation sought to be unitized will contain the carbon dioxide
583	583	and will not interfere with existing or planned injection of
584	584	produced water, carbon dioxide or other fluids from ongoing oil
585	585	and gas or mineral operations;
586	586	(5) the application denotes the areal extent
587	587	of migration of the injected carbon dioxide within the
588	588	underground stratum or formation and that all lands reasonably
589	589	determined to be within the migration zone are included within
590	590	the sequestration unit;
591	591	(6) the anticipated volume or quantity of
592	592	carbon dioxide capable of being sequestered in the
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621	621	sequestration unit;
622	622	(7) the compensation to be paid by the
623	623	operator to the owners of the surface or, if severed, the
624	624	owners of the formation or formations within the sequestration
625	625	unit is fair, just and equitable;
626	626	(8) the compensation to be paid by the
627	627	operator to the owners of the surface or, if severed, the
628	628	owners of the formation or formations within the buffer area or
629	629	any monitoring area is fair, just and equitable;
630	630	(9) the compensation to be paid by the
631	631	operator to the owners of the surface where sequestration
632	632	facilities are to be built on the surface, including roads and
633	633	pipelines, is fair, just and equitable;
634	634	(10) no portion of the formation or stratum
635	635	sought to be unitized is being used, or is currently being
636	636	proposed to be used, for production of oil, natural gas, potash
637	637	or any other mineral capable of being mined and marketed in
638	638	paying quantities or for the geologic sequestration of carbon
639	639	dioxide by others within the proposed sequestration unit,
640	640	including its buffer;
641	641	(11) the sequestration unit does not include
642	642	unleased state land without an agreement with the state land
643	643	office;
644	644	(12) the applicant has made a good faith
645	645	effort to secure voluntary unitization and has secured
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674	674	voluntary agreements from owners of at least eighty-five
675	675	percent of the lands within the proposed sequestration unit;
676	676	(13) the application sets forth the following
677	677	information:
678	678	(a) the approximate anticipated date
679	679	geologic sequestration would commence within the sequestration
680	680	unit if approved;
681	681	(b) the approximate date of commencement
682	682	of the sequestration facilities if approved;
683	683	(c) the anticipated pressures
684	684	encountered within the formation or formations in which the
685	685	sequestration is to occur;
686	686	(d) the anticipated pressure required to
687	687	sequester the carbon dioxide into the formation or formations;
688	688	(e) the estimated duration of the
689	689	sequestration operations; and
690	690	(f) the areal extent of the migration of
691	691	carbon dioxide sequestered into the sequestration unit; and
692	692	(14) the application includes additional
693	693	provisions found to be appropriate for the operation of the
694	694	sequestration facility and does not violate stipulations within
695	695	the Oil and Gas Act for the prevention of waste and
696	696	preservation of correlative rights.
697	697	D. The division shall not issue an order approving
698	698	the application until the applicant has received agreements in
699	699	.228897.3
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727	727	writing by persons owning at least eighty-five percent of the
728	728	lands within the proposed sequestration unit. When the persons
729	729	owning the required percentage of interest have approved the
730	730	sequestration unit, the division may enter an order approving
731	731	the application and unitizing the interests of all persons
732	732	within the sequestration unit whether or not the persons have
733	733	voluntarily agreed to the sequestration unit. If the required
734	734	percentage of interest for a proposed sequestration facility
735	735	does not approve the sequestration unit within a period of six
736	736	months from the date of filing the application, the application
737	737	shall be revoked by the division unless the division, for good
738	738	cause shown, extends the time for ratification; provided that
739	739	the time for ratification shall not be extended for more than
740	740	six months.
741	741	E. An order entered by the division pursuant to
742	742	this section may be amended by the division after notice and a
743	743	hearing as follows:
744	744	(1) for amendments concerning an expansion of
745	745	the sequestration unit, notice shall be in the same manner and
746	746	subject to the same conditions as notice provided in
747	747	Subsections A and B of this section and to include all the
748	748	interests in the area in which the additional lands considered
749	749	for expansion are located;
750	750	(2) for amendments dealing only with a
751	751	modification of operations of the sequestration facility or
752	752	.228897.3
753	753	- 14 - underscored material = new
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780	780	sequestration unit, notice shall be sent to all owners of
781	781	interests within the sequestration unit at the owners' last
782	782	known address on file with the operator; and
783	783	(3) for all other amendments, notice shall be
784	784	in the same manner and subject to the same conditions as notice
785	785	provided in Subsections A and B of this section.
786	786	F. A certified copy of any order of the division
787	787	entered pursuant to this section shall be recorded in the land
788	788	records of the counties where a portion of the sequestration
789	789	unit and attendant buffer and monitoring zones are located.
790	790	SECTION 7. [NEW MATERIAL] UNITIZATION OF SEQUESTRATION
791	791	UNIT--EFFECTS OF UNITIZATION ORDER.--
792	792	A. Except to the extent that the parties affected
793	793	agree, no order providing for a sequestration unit shall be
794	794	construed to result in a transfer of all or any part of the
795	795	title or other rights in any tract in the sequestration unit,
796	796	except for the right to inject carbon dioxide into the
797	797	formation or formations subject to the sequestration unit. The
798	798	rights to use the surface for access and sequestration
799	799	facilities requires a separate agreement between the surface
800	800	owner and operator, and the terms of surface agreements shall
801	801	treat all surface owners fairly. No agreement or order shall
802	802	operate to violate the terms and requirements of any permit
803	803	applicable to the formation or formations or the wells within
804	804	the sequestration unit.
805	805	.228897.3
806	806	- 15 - underscored material = new
807	807	[bracketed material] = delete
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833	833	B. No order of the division issued pursuant to the
834	834	Geologic Carbon Dioxide Sequestration Act shall be construed to
835	835	confer on any person the right of eminent domain, beyond the
836	836	unitization of the sequestration unit.
837	837	C. Each of the tracts of land within the
838	838	sequestration unit shall be allocated a pro rata share of the
839	839	proceeds for the sequestration of carbon dioxide on an acreage
840	840	basis, with the numerator being the number of acres within the
841	841	tract divided by the total number of acres in the sequestration
842	842	unit. Upon an expansion or contraction of the sequestration
843	843	unit, the tract allocation percentages shall change based on
844	844	the new acreage in the expanded or contracted sequestration
845	845	unit, effective the first day of the month following approval
846	846	by the division of the expansion or contraction.
847	847	D. Each tract's share shall be allocated and paid
848	848	to the surface owners or, if previously severed, the owners of
849	849	the subsurface formation or formations or the voids within the
850	850	formations within the sequestration unit into which the carbon
851	851	dioxide is to be injected for sequestration, the operator and
852	852	any other persons owning interests in the sequestration of
853	853	carbon dioxide within the tract on the basis of the agreement
854	854	or agreements.
855	855	E. With respect to the interest of any party who
856	856	cannot be located or whose identity cannot be ascertained, the
857	857	operator shall deposit the unlocatable or unknown owner's share
858	858	.228897.3
859	859	- 16 - underscored material = new
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862	862	2
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886	886	in an interest-bearing account in a national or state-chartered
887	887	bank with deposits insured by the federal deposit insurance
888	888	corporation for a period of five years or until the owner is
889	889	located and the share distributed to the owner, whichever is
890	890	less. If the share is not distributed to the owner in five
891	891	years, on the anniversary of the fifth year, as provided in
892	892	Paragraph (15) of Subsection A of Section 7-8A-2 NMSA 1978,
893	893	such sum shall be paid to the taxation and revenue department
894	894	to be distributed pursuant to Section 7-1-6.43 NMSA 1978.
895	895	SECTION 8. [NEW MATERIAL] OWNERSHIP OF INJECTED CARBON
896	896	DIOXIDE.--All carbon dioxide injected into geologic
897	897	sequestration in a sequestration unit shall be deemed the
898	898	property of the operator. During the term of the sequestration
899	899	unit and for so long as the sequestration unit agreement
900	900	remains in force and effect, no surface or mineral interest
901	901	owner or lessee shall have the right to produce, capture, take,
902	902	reduce to possession, waste or otherwise interfere with or
903	903	exercise any control over such carbon dioxide within the
904	904	sequestration unit unless approved by the operator and the
905	905	division or except as to drilling operations through the
906	906	formation subject to the sequestration unit for purposes of
907	907	drilling to deeper depths and horizons for the extraction of
908	908	oil, gas and other minerals.
909	909	SECTION 9. [NEW MATERIAL] EFFECT OF CERTIFICATES AND
910	910	ORDERS OF THE DIVISION.--A person acting pursuant to a
911	911	.228897.3
912	912	- 17 - underscored material = new
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939	939	certificate or order issued by the division pursuant to the
940	940	Geologic Carbon Dioxide Sequestration Act, in compliance with
941	941	the provisions of that act or with rules or orders issued by
942	942	the division pursuant to that act, shall not be deemed to be a
943	943	public utility subject to the provisions of the Public Utility
944	944	Act or a common carrier as that term is used in the Oil and Gas
945	945	Act solely because the person owns, controls or operates all or
946	946	part of a carbon sequestration unit or carbon sequestration
947	947	facility.
948	948	SECTION 10. [NEW MATERIAL] PRESERVATION OF RIGHTS.--
949	949	Nothing in the Geologic Carbon Dioxide Sequestration Act shall:
950	950	A. prevent a mineral owner or lessee from drilling
951	951	through the sequestration unit or near a sequestration facility
952	952	so long as it uses reasonable measures to protect the facility
953	953	against the escape of the carbon dioxide being stored and the
954	954	drilling operations are conducted in accordance with all
955	955	applicable drilling and casing rules; or
956	956	B. affect or limit any enhanced oil recovery or
957	957	enhanced gas recovery project permitted by the division or
958	958	commission or prohibit use of anthropogenic or naturally
959	959	occurring carbon dioxide in such projects.
960	960	SECTION 11. [NEW MATERIAL] FEES.--The division may levy
961	961	on operators the following fees, which shall be paid to the
962	962	division and deposited in the oil conservation division systems
963	963	and hearings fund:
964	964	.228897.3
965	965	- 18 - underscored material = new
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992	992	A. an annual regulatory fee for sequestration
993	993	facilities approved. The annual regulatory fee shall be in an
994	994	amount set by division rule, and the amount of the fee shall be
995	995	based on the annual projected costs to the division for
996	996	oversight and regulation of sequestration facilities; and
997	997	B. application fees for applications for
998	998	certificates or orders pursuant to the Geologic Carbon Dioxide
999	999	Sequestration Act, the amounts of which shall be set by
1000	1000	division rule; provided that the amount of the fee shall be
1001	1001	based on the anticipated cost of processing the application for
1002	1002	which the fee is levied.
1003	1003	SECTION 12. [NEW MATERIAL] OIL CONSERVATION DIVISION
1004	1004	SYSTEMS AND HEARINGS FUND--CREATED.--The "oil conservation
1005	1005	division systems and hearings fund" is created as a
1006	1006	nonreverting fund in the state treasury. The fund consists of
1007	1007	all funds received by the oil conservation division from fees
1008	1008	imposed pursuant to Section 11 of the Geologic Carbon Dioxide
1009	1009	Sequestration Act, appropriations, gifts, grants, donations,
1010	1010	income from investment of the fund and any other money
1011	1011	distributed or otherwise allocated to the fund. Disbursements
1012	1012	from the fund shall be made upon warrants drawn by the
1013	1013	secretary of finance and administration pursuant to vouchers
1014	1014	signed by the secretary of energy, minerals and natural
1015	1015	resources or the secretary's authorized representative. Money
1016	1016	in the fund is subject to appropriation by the legislature to
1017	1017	.228897.3
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1045	1045	the division to develop and modernize the division's online
1046	1046	application processing system, online case management system
1047	1047	and online case file system and for other technical upgrades
1048	1048	and hearing administration costs needed to support an
1049	1049	underground injection control class VI program, including
1050	1050	programmatic personnel. Money in the fund may be expended by
1051	1051	the division for the purposes of the fund.
1052	1052	SECTION 13. [NEW MATERIAL] OWNERSHIP OF PORE SPACE WITHIN
1053	1053	THE EARTH.--
1054	1054	A. Absent specific language in a severing
1055	1055	instrument to the contrary, the surface estate includes the
1056	1056	pore space, and the ownership of all pore space in all strata
1057	1057	below the surface lands and waters of this state is declared to
1058	1058	be vested in the several owners of the surface above the strata
1059	1059	or formations.
1060	1060	B. To the extent the dominant mineral estate is
1061	1061	reasonably utilizing the surface estate for the production of
1062	1062	minerals located thereon and therein, the formations so used
1063	1063	shall not be interfered with and are excluded from the
1064	1064	provisions of the Geologic Carbon Dioxide Sequestration Act.
1065	1065	C. A conveyance of the surface ownership of real
1066	1066	property shall be a conveyance of the pore space in all
1067	1067	formations and strata below the surface of such real property
1068	1068	unless the ownership interest in such pore space was previously
1069	1069	severed from the surface ownership or is explicitly excluded in
1070	1070	.228897.3
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1098	1098	the conveyance.
1099	1099	D. The ownership of pore space in any formations or
1100	1100	strata may be conveyed in the manner provided by law for the
1101	1101	transfer of interests in real property. No agreement conveying
1102	1102	minerals or other interests underlying the surface shall act to
1103	1103	convey ownership of any pore space in the formations or stratum
1104	1104	unless the agreement explicitly conveys that ownership
1105	1105	interest.
1106	1106	E. No provision of law, including a lawfully
1107	1107	adopted rule or regulation, requiring notice to be given to a
1108	1108	surface owner, to an owner of the mineral interest or to both
1109	1109	shall be construed to require notice to persons holding
1110	1110	ownership interests in any pore space in the underlying
1111	1111	formations or strata unless the law specifies notice to the
1112	1112	persons is required.
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