HB327 Alabama 2024 Session

Summary

Primary Sponsor

Alan BakerRepresentative

Republican

Session

Regular Session 2024

Title

Geologic storage, completion certificate and its implications, funds to manage open and closed reservoirs, pore space possession, leasing state land as these relate to carbon dioxide provided.

Summary

HB327 would give surface owners ownership of underground pore space, set rules for CO2 geologic storage, create funds for monitoring and closure, and allow leasing of state pore space for carbon storage.

What This Bill Does

It defines and vests pore space ownership in surface owners and allows its separate conveyance; it sets conditions under which a carbon dioxide storage facility may operate and allows the board to pool storage rights with non-consenting owners when a supermajority consent is obtained. It creates two dedicated funds to pay for ongoing monitoring of active storage sites and long-term monitoring after closure, and it establishes a certificate of project closure with transfer of related responsibilities to the state. It also authorizes leasing pore space on state lands for underground CO2 storage and gives the board authority to adopt necessary rules.

Who It Affects

• Surface landowners who own pore space below their property; they would hold pore-space rights, may convey them separately, and could be compensated if their rights are pooled without their consent.
• Carbon dioxide storage facility operators and state regulators (State Oil and Gas Board, Commissioner of Conservation and Natural Resources, and related agencies); they would regulate approvals, manage consent and pooling processes, oversee funds, issue certificates of closure, and transition long-term monitoring to the state.

Key Provisions

• Defines 'pore space' as subsurface space usable for geologic storage of carbon dioxide and incidental substances.
• Vests pore-space ownership in surface owners and allows separate conveyance; requires that surface conveyances include pore-space rights unless previously severed or explicitly reserved.
• The State Oil and Gas Board may approve CO2 storage facilities and may amalgamate storage rights under certain conditions, including obtaining consent from owners representing not less than 66 and two-thirds of pore-space and storage rights, with public notice and hearing.
• Non-consenting pore-space owners must be fairly compensated; board may pool non-consenting rights into a storage facility under just and reasonable terms.
• Requires consent (written) from coal mine operators and mineral owners for storage in specific coal seams or within a 10-mile radius of coal mines; consent shall not be unreasonably withheld or delayed.
• Creates Underground Carbon Dioxide Storage Facility Administrative Fund (for ongoing regulatory work) and Underground Carbon Dioxide Storage Facility Trust Fund (for long-term monitoring after closure), with rules for funding, investment, and expenditure.
• Issuance of a certificate of project closure and completion after end of injections, including notice, consultation with ADEM, 10+ years elapsed, and demonstration of compliance, stability, and proper post-closure condition; title to certain equipment and CO2 transfers to the state upon closure.
• Upon closure, the storage operator is released from regulatory requirements and bonds, and long-term monitoring becomes state responsibility, unless federal agencies assume it.
• The Commissioner may lease pore space on lands under state jurisdiction for underground CO2 storage.

AI-generated summary using openai/gpt-5-nano on Feb 22, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Conservation & Natural Resources