Statutes, codes, and regulations
Wyoming Administrative Code
Agency 055 - Oil and Gas Conservation CommissionSubagency 0001 - General Agency, Board or Commission Rules
Chapter 3 - OPERATIONAL RULES, DRILLING RULES
Section 3-43 - Carbon Sequestration Unitization Process

055-3 Wyo. Code R. § 3-43

Download
PDF
Current through April 27, 2019
Section 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).

055-3 Wyo. Code R. § 3-43

Amended, Eff. 6/3/2015.

Amended, Eff. 1/19/2016.

Amended, Eff. 4/1/2016.