Ohio 2025-2026 Regular Session

Ohio Senate Bill SB136 Latest Draft

Bill / Introduced Version

                            As Introduced
136th General Assembly
Regular Session	S. B. No. 136
2025-2026
Senators Schaffer, Chavez
Cosponsors: Senators Wilkin, Timken
To enact sections 1509.71, 1509.72, 1509.73, 
1509.75, 1509.76, 1509.77, 1509.79, 5301.57, 
5301.58, 5301.59, and 5301.60 of the Revised 
Code to establish a process to regulate carbon 
capture and storage technologies and the 
geologic sequestration of carbon dioxide for 
long-term storage.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:
Section 1. That sections 1509.71, 1509.72, 1509.73, 
1509.75, 1509.76, 1509.77, 1509.79, 5301.57, 5301.58, 5301.59, 
and 5301.60 of the Revised Code be enacted to read as follows:
Sec. 1509.71.  	As used in sections 1509.71 to 1509.79 of  
the Revised Code:
"Carbon dioxide" means naturally occurring, geologically 
sourced, or anthropogenically sourced carbon dioxide including 
its derivatives and all mixtures, combinations, and phases, 
whether liquid, gaseous, solid, stripped, segregated, or divided 
from any other fluid stream thereof.
"Carbon dioxide well" means a well that is used to inject 
carbon dioxide into a reservoir for carbon sequestration under a 
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UIC Class VI permit. "Carbon dioxide well" shall be considered a 
"well" for purposes of section 1509.01 of the Revised Code.
"Carbon dioxide plume" means the extent of an underground 
injected carbon dioxide stream.
"Carbon sequestration" means the underground storage of 
carbon dioxide in a geological formation.
"Carbon sequestration project" means a project that 
involves the underground storage of carbon dioxide in a 
geological formation pursuant to at least one UIC Class VI 
permit.
"Owner" includes, unless the context indicates otherwise, 
a person who has the right to drill a carbon dioxide well and to 
inject carbon dioxide in an underground geologic formation. 
"Owner," as defined in section 1509.01 of the Revised Code, does 
not apply to sections 1509.71 to 1509.79 or sections 5301.58 to 
5301.60 of the Revised Code unless the context indicates 
otherwise.
"Pore space" means subsurface cavities and voids, whether 
natural or artificially created, that are suitable for use as a 
sequestration space for carbon dioxide.
"Storage facility" means the pore space in the subsurface 
area consisting of the extent of a carbon dioxide plume and the 
geological seals that confine the carbon dioxide plume that are 
required to be delineated on an approved UIC Class VI permit or 
an amendment to a UIC Class VI permit issued to a storage 
operator.
"Storage operator" means an individual, corporation, or 
other legal entity that operates a carbon sequestration project, 
regardless of whether an owner that has the right to drill and 
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store carbon dioxide in the project area contracts, retains, or 
allows an individual, corporation, or other legal entity to 
conduct operations or provide other services at the carbon 
sequestration project.
"UIC Class VI permit" means an underground injection 
control program permit issued by the chief of the division of 
oil and gas resources management that allows the operation of a 
carbon dioxide well.
"Underground storage of carbon dioxide" means the 
injection and storage of carbon dioxide into underground strata 
and formations under at least one UIC Class VI permit.
Sec. 1509.72.  	The division of oil and gas resources  
management has sole and exclusive authority to regulate carbon 
sequestration and the operation of storage facilities within the 
state, excepting only those activities regulated under federal 
laws for which oversight has been delegated to the environmental 
protection agency and activities regulated under sections 
6111.01 to 6111.028 of the Revised Code. The regulation of 
carbon sequestration activities is a matter of general statewide 
interest that requires uniform statewide regulation, and 
sections 1509.71 to 1509.79 of the Revised Code and rules 
adopted under those sections constitute a comprehensive plan 
with respect to all aspects of carbon sequestration within this 
state, including storage facility operation and permitting 
related to those activities.
In order to assist the division in the furtherance of its 
sole and exclusive authority as established in this section, the 
chief of the division of oil and gas resources management may 
enter into cooperative agreements with other state agencies 
regarding carbon sequestration projects. Such cooperative 
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agreements do not confer on other state agencies any authority 
to administer or enforce sections 1509.71 to 1509.79 of the 
Revised Code and rules adopted under those sections. In 
addition, such cooperative agreements shall not be construed to 
dilute or diminish the division's sole and exclusive authority 
as established in this section.
Nothing in this section affects the authority granted to 
the director of transportation and local authorities in section 
723.01 or 4513.34 of the Revised Code, provided that the 
authority granted under those sections shall not be exercised in 
a manner that discriminates against, unfairly impedes, or 
obstructs carbon sequestration projects regulated under sections 
1509.71 to 1509.79 of the Revised Code.
Sec. 1509.73.  	(A) The chief of the division of oil and gas  
resources management shall adopt, rescind, and amend, rules for 
the administration, implementation, and enforcement of sections 
1509.71 to 1509.79 of the Revised Code.
(B) Rules adopted under this section shall include 
provisions regarding applications for and the issuance of UIC 
Class VI permits; the terms and conditions of those permits; 
entry to conduct inspections and to examine records to ascertain 
compliance with sections 1509.71 to 1509.79 of the Revised Code, 
rules adopted under those sections, and orders and terms and 
conditions of permits issued under those sections; the provision 
and maintenance of information through monitoring, 
recordkeeping, and reporting; and other provisions in 
furtherance of the goals of this chapter and the Safe Drinking 
Water Act.
(C) The rules adopted under this section shall establish 
both of the following:
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(1) A requirement that an applicant for a UIC Class VI 
permit attest that the applicant has the legal right to inject 
carbon dioxide in the underground formation proposed in the 
application and to the proposed extents that the carbon dioxide 
will migrate, including the pressure front associated with the 
injected carbon dioxide;
(2) The amount of the costs estimated to implement the 
closure plan of the carbon dioxide well and associated 
facilities and any post injection site care and site closure;
(D) The rules adopted under this section shall include an 
identification of the subjects that the chief shall address when 
attaching terms and conditions to a UIC Class VI permit. The 
subjects shall include at least all of the following:
(1) Requirements for the operation and monitoring of a 
carbon dioxide well;
(2) Safety concerning the drilling and operation of a 
carbon dioxide well;
(3) Spacing, setback, and other provisions to prevent 
storage facilities and storage operators from impacting the 
ability of owners of oil and gas interests to develop those 
interests;
(4) Protection of the public and private water supply, 
including the amount of water used and the source or sources of 
the water;
(5) Fencing and screening of surface facilities of a 
carbon dioxide well;
(6) Containment and disposal of drilling and other wastes 
related to a carbon sequestration project;
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(7) Construction of access roads for purposes of the 
drilling and operation of a carbon dioxide well;
(8) Noise mitigation for purposes of the drilling of a 
carbon dioxide well and the operation of such a well, excluding 
safety and maintenance operations;
(9) Liability insurance to pay damages for injury to 
persons or property caused by the construction or operation of 
the storage facility, to be maintained for the period of time 
beginning at the commencement of construction operations and 
ending when the chief issues a certificate of project completion 
under section 1509.77 of the Revised Code;
(10) Liability insurance coverage of at least fifteen 
million dollars to cover bodily injury and property damage 
caused by the construction, drilling, or operation of the 
owner's carbon dioxide wells in this state. The rules shall 
require the insurance policy to include additional coverage for 
an environmental endorsement.
(11) A surety bond conditioned on compliance with all 
obligations imposed under sections 1509.71 to 1509.79 of the 
Revised Code, to be maintained for the period of time beginning 
at the commencement of construction operations and ending when 
the chief issues a certificate of project completion. The rules 
shall establish the required amount of the surety bond that is 
not less than the cost estimate identified in the application. 
The surety bond shall be sufficient to cover corrective actions, 
plugging, post-injection site care prior to receipt of a 
certificate of project completion, and emergency or remedial 
response.
Sec. 1509.75.  	(A) Carbon sequestration projects are  
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authorized in the state for the purposes of injecting carbon 
dioxide into the pore space of a storage facility through at 
least one carbon dioxide injection well under a UIC Class VI 
permit.
(B) To operate a carbon sequestration project under 
sections 1509.71 to 1509.79 of the Revised Code, a storage 
operator shall obtain at least both of the following:
(1) A UIC Class VI permit, which shall be applied for in 
the name of the storage operator;
(2) Any additional permits required by applicable laws, 
rules, and regulations, except that a storage operator is not 
required to obtain a permit required under section 1509.05 of 
the Revised Code.
(C) Prior to carbon sequestration, the chief of the 
division of oil and gas resources management may require a 
storage operator to deploy a seismicity monitoring system. The 
storage operator shall use the system to determine, to the best 
of the operator's ability, the presence or absence, magnitude, 
and the hypocenter location of seismic activity within the 
vicinity of the storage facility as may be necessary to perform 
an array and a risk analysis and as required by the chief. The 
chief may periodically require the storage operator to utilize 
the seismicity monitoring system during carbon sequestration 
operations.
(D) Prior to operating a carbon sequestration project 
under sections 1509.71 to 1509.79 of the Revised Code, a storage 
operator shall design the project to isolate any existing or 
future production of oil and gas from the carbon dioxide plume. 
The chief shall issue a permit under those sections only if the 
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chief is satisfied that the interests of the owners of the oil 
and gas will not be adversely affected.
(E) Provisions of this chapter codified in sections other 
than sections 1509.71 to 1509.79 of the Revised Code apply to 
carbon sequestration projects to the extent that those 
provisions are consistent with, and not specifically excepted 
from, sections 1509.71 to 1509.79 of the Revised Code.
Sec. 1509.76.  	(A) A storage operator who has obtained the  
consent of owners of at least seventy per cent of the pore space 
proposed to be used in a storage facility may submit a statutory 
consolidation application for the operation of the entire 
proposed storage facility to the chief of the division of oil 
and gas resources management. In calculating the seventy per 
cent, a pore space owner's entire interest in the proposed 
storage facility, including any divided, undivided, partial, 
fee, or other interest in the pore space, shall be included to 
the fullest extent of that interest.
(B) An applicant shall include the following with the 
application:
(1) A list of all persons reasonably known to own an 
interest in the pore space proposed to be used for the storage 
facility;
(2) A processing fee based on actual application 
processing costs incurred by the division of oil and gas 
resources management. Promptly after receiving an application, 
the division shall prepare and submit to the applicant an 
estimate of the processing fee and a payment billing schedule. 
The division shall maintain a record of all application 
processing costs incurred. After the division's work on the 
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application has concluded, the division shall send a final 
statement to the applicant. The applicant shall pay the full 
processing fee before the division issues its final decision on 
an application. The applicant shall pay the processing fee 
regardless of whether a permit is issued or denied, or whether 
the application is withdrawn. The division shall return any 
unused funds paid to the division as part of the processing fee 
estimate to the applicant.
(3) Proof of notice provided under division (D) of this 
section, if applicable;
(4) Any additional information reasonably requested by the 
chief.
(C) For each application, the chief shall provide notice 
to all pore space owners located within the proposed storage 
facility and all subsurface owners located within the proposed 
storage facility of the proposed carbon sequestration project, 
as identified by the applicant in the application. The chief 
shall not rule on an application until after such notice has 
been provided. If, upon receipt of the notice, the subsurface 
property owner expresses an objection to the chief regarding the 
design of the carbon sequestration project based on the 
potential adverse effect to a commercially valuable mineral, 
including, without limitation a coal or oil and gas estate, the 
storage operator shall address the objection to the satisfaction 
of the chief. Such objections are not required to be submitted 
in the timeframe required for notifications to the chief under 
division (D) of this section, but shall be made in accordance 
with requirements established by the chief.
(D) If the proposed storage facility contains pore space 
for which the owner is unknown or unlocatable, the storage 
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operator shall publish one notice in a newspaper of the largest 
circulation in each county in which the carbon sequestration 
project is located. The notice shall appear not more than thirty 
days prior to the date the application is submitted to the 
chief.
The notice shall:
(1) State that an application for statutory consolidation 
will be filed with the division;
(2) Describe the proposed storage facility;
(3) In the case of an unknown pore space owner, state the 
owner's interest in the proposed storage facility, and the name 
of the last known owner of that interest;
(4) State that a person claiming an interest in the pore 
space proposed to be consolidated shall notify the chief and the 
applicant at the published address within twenty days of the 
notice's publication date. Within seven days of receiving notice 
of a claim, the applicant shall provide information to the 
claimant, in a form and manner prescribed by the chief, 
regarding the right of the claimant to file an objection and 
participate in the application proceeding before the division.
(E)(1)(a) The chief shall hold a hearing regarding an 
application submitted under this section, except as otherwise 
provided in division (E)(1)(b) of this section.
(b) If the chief determines that an application is 
materially incomplete before the required hearing date, the 
chief shall notify the applicant. If the applicant does not 
timely correct the application, the chief may reschedule the 
hearing date.
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(2) At the hearing, the chief shall consider whether the 
application is reasonably necessary to facilitate the 
underground storage of carbon dioxide.
(F)(1) The chief shall issue an order approving the 
application submitted under this section and providing for the 
operation of the proposed storage facility if the chief finds 
that such operation is reasonably necessary to facilitate the 
underground storage of carbon dioxide. The chief shall issue the 
order not later than sixty days after the date of the hearing 
under division (E) of this section, unless the chief denies the 
application by order within that sixty-day period.
(2) An order approving an application shall be upon terms 
and conditions that are just and reasonable and shall prescribe 
a plan for operations that include:
(a) A description of the pore space and storage facility 
proposed to be operated;
(b) The location of and means to access carbon injection 
wells, outbuildings, roads, and monitoring equipment;
(c) A statement of the nature of the operations 
contemplated;
(d)(i) An allocation to the separately owned interests in 
the storage facility of all economic benefits derived from 
operation of the storage facility.
(ii) The allocation shall be in accord with the agreement, 
if any, of the interested parties. If there is no agreement 
between the parties, the chief shall determine the value of each 
separately owned interest in the storage facility, exclusive of 
physical equipment, for development of the storage facility, and 
the economic benefits allocated to each interest shall be the 
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proportion that the value of each interest so determined bears 
to the value of all interests in the storage facility.
(e) A provision describing how the credits and charges 
shall be made in the adjustment among the owners in the storage 
facility for their respective investments in wells, machinery, 
materials, and equipment contributed to the operations;
(f) A provision describing how the expenses of operations, 
including capital investment, shall be determined and charged to 
the separately owned interests and how the expenses shall be 
paid;
(g) A provision, if necessary, for carrying or otherwise 
financing any person who does not meet the person's financial 
obligations in connection with the storage facility, allowing a 
reasonable interest charge for such service;
(h) A provision for the supervision and conduct of the 
storage facility operations, in respect to which each person 
shall have a vote with a value corresponding to the percentage 
of the expenses of operations chargeable against the interest of 
that person;
(i) The time when the storage facility operations shall 
commence and the manner in which, and the circumstances under 
which, the operations shall terminate;
(j) Any additional provisions as are found to be 
appropriate for carrying on the operations, and for the 
protection or adjustment of correlative rights.
(3) The storage operator shall file a certified copy of 
the order and a survey of the storage facility in the office of 
the county recorder of the county in which all or a portion of 
the storage facility is located. The chief shall make the order 
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publicly available, which may include posting the order on the 
division's web site.
(G) Storage facility operations conducted pursuant to an 
order issued under this section constitute a fulfillment of all 
the express or implied obligations of each lease or contract 
covering lands in the storage facility to the extent that 
compliance with such obligations cannot be had because of the 
order of the chief.
Economic benefits allocated to any interest shall be the 
property and income of the several persons to whom, or to whose 
credit, the same are allocated or payable under the order 
providing for storage facility operations.
(H) No order of the chief or other contract relating to 
the pore space and the storage of carbon dioxide from a 
separately owned interest shall be terminated by the order 
providing for storage facility operations, but shall remain in 
force until terminated in accordance with the provisions 
thereof.
Except to the extent that the parties affected so agree, 
no order providing for storage facility operations shall be 
construed to result in a transfer of any person's title to all 
or any part of the pore space in the storage facility. All 
property, whether real or personal, that may be acquired for the 
account of the owners within the storage facility shall be the 
property of such owners in the proportion that the expenses of 
operations are charged.
Sec. 1509.77.  	(A) After carbon dioxide injection into a  
storage facility ceases, the chief of the division of oil and 
gas resources management may issue a certificate of project 
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completion upon application by the storage operator. The chief 
shall issue a certificate only upon satisfaction of the 
conditions imposed under this section and after providing public 
notice of the application, an opportunity for public comment, 
and if deemed necessary by the chief, a public hearing on the 
application.
(B) A certificate shall not be issued until at least fifty 
years after carbon dioxide injections cease or until an 
established alternative timeline approved by the chief has 
elapsed.
(C) A certificate shall not be issued until the storage 
operator establishes with a degree of certainty to the 
satisfaction of the chief that all of the following apply:
(1) The storage operator is in full compliance with all 
laws governing the injection and storage of the carbon dioxide.
(2) The following apply to the carbon dioxide that has 
been injected underground for storage:
(a) It is not expected to extend or migrate outside of the 
storage facility and poses no threat to public health or safety 
or the environment or underground sources of drinking water.
(b) It is not likely to cross any boundary vertically from 
the storage facility and is not expected to endanger public 
health or safety or the environment or underground sources of 
drinking water.
(3) All carbon dioxide wells and associated equipment and 
facilities to be used in maintaining and managing the stored 
carbon dioxide are in good condition and will retain mechanical 
integrity.
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(4) The storage operator has plugged all carbon dioxide 
wells not used in maintaining and managing the stored carbon 
dioxide and has completed all reclamation required by the 
division.
(D) Upon the issuance of a certificate of project 
completion, the following shall occur:
(1) Except as otherwise provided in this section, the 
former storage operator is released from all regulatory 
requirements associated with continued storage and maintenance 
of the injected carbon dioxide, and financial assurance required 
under rules adopted under section 1509.73 of the Revised Code 
shall be released to the former storage operator.
(2) Primary responsibility and liability for the stored or 
injected carbon dioxide shall be transferred to the state, 
except for criminal and contractual liability and except under 
any of the following circumstances:
(a) The storage operator violated a duty imposed on the 
storage operator by state law or rule prior to approval of site 
closure and any applicable statutes of limitations have not run 
out;
(b) After notice and a hearing, the chief determines 
either of the following:
(i) The storage operator provided deficient or erroneous 
information that was material and relied upon by the chief to 
support approval of site closure;
(ii) There is carbon dioxide migration that threatens 
public health or safety or the environment or underground 
sources of drinking water;
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(c) The balance of the carbon dioxide storage facility 
fund is insufficient to cover costs arising from storage 
facilities and associated carbon dioxide wells after site 
closure.
(3) The storage operator and all individuals who 
generated, injected, or stored carbon dioxide shall be forever 
released from all regulatory requirements associated with the 
continued storage and maintenance of the injected carbon 
dioxide, except as provided in division (D)(2) of this section.
(4) Any bond or financial assurance submitted to the 
division shall be released.
Sec. 1509.79.  	(A) Storage operators shall pay the  
department of natural resources a fee of five and twenty-five 
one hundredth cents for each metric ton of carbon dioxide 
injected for storage in a storage facility. The fee shall be 
deposited into the carbon dioxide storage facility fund created 
under this section.
(B)(1) The carbon dioxide storage facility fund is created 
in the state treasury. Except for fees collected under division 
(C) of this section, the fund shall consist of any money 
collected under this section in relation to a Class VI well, 
including money received by the department from financial 
responsibility mechanisms established and penalties imposed for 
violations of sections 1509.71 to 1509.79 of the Revised Code, 
rules adopted under those sections, and orders and terms and 
conditions of a permit issued under those sections. All interest 
earnings of the fund shall be credited to the fund.
(2) The chief of the division of oil and gas resources 
management shall use the money in the fund for the purpose of 
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defraying expenses of the division that are associated with 
post-closure care of sequestered carbon dioxide in a storage 
facility, including the maintenance of carbon dioxide wells, 
associate surface facilities, remediation of any environmental 
impacts from the injected carbon dioxide, and plugging of 
monitoring wells associated with the injection of carbon dioxide 
in a carbon dioxide well.
(3) The existence, management, and expenditure of money 
from the fund do not constitute a waiver of governmental 
immunity or an assumption of any liability by the state for 
carbon dioxide storage.
(C)(1) In addition to the fee established under division 
(A) of this section, an owner of a carbon dioxide well shall pay 
a fee for each metric ton of carbon dioxide injected in the 
carbon dioxide well. The chief, by rule, shall establish the 
amount of the fee, and the fee shall be deposited in the carbon 
capture administrative fund created under this section.
(2) The carbon capture administrative fund is created in 
the state treasury. The fund shall consist of the money 
collected under division (C)(1) of this section. The chief shall 
use the funds for the purpose of administering sections 1509.71 
to 1509.79 of the Revised Code and the rules adopted under those 
sections that are associated with injection and sequestration of 
carbon dioxide in a carbon dioxide well and for other purposes 
determined by the chief. All interest earnings of the fund shall 
be credited to the fund.
Sec. 5301.57.  	(A) As used in sections 5301.57 to 5301.60  
of the Revised Code, "carbon dioxide," "carbon dioxide well," 
"carbon sequestration," "owner," "pore space," "storage 
operator," and "storage facility," have the same meanings as in 
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section 1509.71 of the Revised Code.
(B) As used in sections 5301.58 to 5301.60 of the Revised 
Code, "subsurface property interest owner" means a property 
interest owner identified by the records of the recorder of 
deeds for each county in which a portion of a proposed storage 
facility is located who holds a fee simple interest, other 
freehold interest, or leasehold interest in the subsurface of 
the property, which may include mineral rights, such as coal or 
oil and gas rights. "Subsurface property interest owner" does 
not include an owner who holds an interest in property 
consisting solely of an easement or right-of-way.
Sec. 5301.58.  	(A) The ownership of all pore space in all  
strata below the surface lands and waters is vested in the owner 
of the surface directly above the pore space.
A conveyance of the surface ownership of real property 
shall be a conveyance of the pore space in all strata below the 
surface of the real property unless the ownership interest in 
the pore space previously has been expressly excepted and 
reserved, conveyed, or otherwise severed from the surface 
ownership. The ownership of pore space in the strata may be 
conveyed in the manner provided by law for the transfer of real 
property interests. No agreement conveying mineral, oil and gas, 
coal, limestone or similar resource, or other interests 
underlying the surface shall convey pore space in the strata 
unless the agreement expressly includes conveyance of the pore 
space.
(B) No provision of law or rule requiring notice to be 
given to a surface owner, owner of the mineral or oil and gas 
interest, or both shall be construed to require notice to 
individuals holding ownership interests in pore space in the 
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513 S. B. No. 136 Page 19
As Introduced
underlying strata unless the applicable law specifies notice to 
the individuals is required or unless the owner of the pore 
space also owns an interest in the surface or in the mineral or 
oil and gas interests.
(C)(1) Nothing in sections 5301.58 to 5301.60 of the 
Revised Code shall be construed to change or alter the common 
law existing as of the effective date of this section with 
respect to the rights belonging to, or the dominance of, the 
mineral estate or oil and gas estate. For the purpose of 
determining the priority of surface and subsurface uses between 
a severed mineral or oil and gas estate and pore space, the 
severed mineral or oil and gas estate is dominant regardless of 
whether ownership of the pore space is vested in the owner of 
the surface or is owned separately from the surface.
(2) If pore space is severed from the surface ownership, 
the pore space estate shall be considered to be dominant over 
the surface estate unless the conveyance specifically provides 
otherwise.
(3) Nothing in sections 5301.58 to 5301.60 of the Revised 
Code shall alter, amend, diminish, or invalidate rights to the 
pore space that were acquired by deed, contract, or lease prior 
to the effective date of this section.
(D) An instrument that transfers the rights to pore space 
shall include a specific description of the location of the pore 
space being transferred. In the event that the instrument uses 
only a description of the surface, the transfer shall be 
considered to include pore space owned by the transferor at all 
depths underlying the described surface area unless specifically 
excluded. The owner of the pore space shall have no right to use 
the surface estate beyond that set out in a properly recorded 
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543 S. B. No. 136 Page 20
As Introduced
instrument due solely to its ownership in the pore space.
An instrument that conveys the surface directly above the 
pore space, but otherwise seeks to except or reserve the rights 
to the pore space, shall include a specific reference to the 
pore space in the instrument. In the event of such exception or 
reserved rights, the reserved rights to the pore space shall 
include pore space owned by the transferor at all depths 
underlying the described surface area unless otherwise 
specifically excluded.
Sec. 5301.59.  	All carbon dioxide injected into a storage  
facility for carbon sequestration, and all other substances 
injected incidental to the injection of carbon dioxide, shall be 
presumed to be owned by the storage operator. This presumption 
may be rebutted by an individual claiming contrary ownership by 
a preponderance of the evidence in an action to establish 
ownership.
No owner of pore space, other individual holding any right 
to control pore space, or other surface or subsurface property 
interest owner, shall have any liability relating to the 
injection of carbon dioxide, or any other substances injected 
incidental to the injection of carbon dioxide, for carbon 
sequestration activities solely by virtue of their interest in 
the pore space or their surface or subsurface rights.
Sec. 5301.60.  	(A) A claim for damages due to injection or  
migration of carbon dioxide shall not be recoverable against a 
storage operator conducting carbon sequestration in accordance 
with a valid UIC Class VI permit unless the claimant proves that 
the injection or migration of carbon dioxide:
(1) Is injurious to health, or an obstruction to the free 
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572 S. B. No. 136 Page 21
As Introduced
use of property so as essentially to interfere with the 
comfortable enjoyment of life or property; or
(2) Has caused direct physical injury to an individual, 
animal, or real or personal property.
(B) A surface or subsurface property interest owner 
asserting a claim for injury to personal or real property may 
recover monetary damages due to injection or migration of carbon 
dioxide only for the diminution in real or personal property 
value resulting from the injection or migration of carbon 
dioxide beyond the storage facility.
(C) A surface or subsurface property interest owner may 
not seek punitive damages due to injection or migration of 
carbon dioxide if the storage operator acts in compliance with 
the requirements of the UIC Class VI permit.
(D) Divisions (A), (B), and (C) of this section do not 
apply to any claims that may be asserted by owners of oil and 
gas interests or owners of class II disposal wells for damages 
or injuries related to: 
(1) The injection or migration of carbon dioxide;
(2) The construction or operation of a storage facility; 
or
(3) A carbon sequestration project.
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