Floor and Committee Action Today for Louisiana Carbon Capture Legislation

Three Carbon Capture & Storage (CCS) bills sponsored by Chairman Geymann are scheduled for a vote on the House Floor this afternoon: 

• HB 492 defines eminent domain authority for pipeline transportation related to CCS and provides a clear procedure for obtaining that eminent domain authority.  HB 492, however, removes existing eminent domain authority for storage operators relative to pore space rights, which is being replaced by unitization as set forth in another Chairman Geymann bill, HB 696.
• HB 696 by Chairman Geymann creates the authority for unitization of CCS reservoirs, which is currently not allowed in Louisiana law for CCS projects.  HB 696 follows a similar procedure for unitization which has historically existed in Louisiana for oil and gas projects.  Under HB 696,  unitization will be done by the Commissioner of Conservation upon application of a CCS operator.   Notice and hearing procedures are included, plus a requirement that a minimum of 75% of pore space owners must be agreeable to unitization as a prerequisite to the application.  All pore space owners who have not already entered into a contract with the storage operator will be compensated equitably with other members of the unit.  HB 696 provides the Commissioner with authority to promulgate regulations to establish the fair and equitable compensation schedule.
• HB 937 by Chairman Geymann provides that landowners, by the mere fact of being landowners, cannot be held liable for any actions related to CCS projects on their property.  HB 937 does not override any contractual obligations which might exist.

Two additional CCS bills will also be heard on the House floor this afternoon:

• HB 934 by Rep. Lacombe corrects an unintended consequence from HB 571 last year, which intended to direct 30% of revenue from CCS projects on state owned to the local government but has been interpreted to exclude revenue sharing with local governments on CCS projects on state property operated by the Department of Wildlife and Fisheries. 
• HB 516 by Rep. Mack imposes additional requirements and restrictions on CCS projects, including emergency response plans, community notification systems, maps of CCS facilities, locations of CCS facilities, and groundwater monitoring.  The bill received a long critique during House Committee before being advanced to the House floor, with the expectation by the committee members that the bill would receive significant amendments on the House floor.  

If you have questions about these bills, please contact Neil Abramson and Jeff Lieberman. Liskow will continue to share regular updates about CCS legislation throughout the Louisiana Legislative Session. Follow along on this blog and the Liskow CCS Legislative Minute.

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