1. (a) Before issuing a permit, the department shall consult with the department of environmental management and determine whether the carbon sequestration project will cause pollution or create a nuisance.

2. (b) Before issuing a permit, the department shall make the following findings or assess the following sources of information:

   1. (1) That the storage operator is in compliance with all applicable laws governing the storage facility.
   2. (2) That the storage operator shows that the storage facility is reasonably expected to retain the carbon dioxide stored in the storage facility.

   3. (3) That the storage operator shows that the carbon dioxide in the storage facility is stable by showing that either:

      1. (A) the stored carbon dioxide is essentially stationary; or
      2. (B) if the stored carbon migrates, the migration is unlikely to cross the boundaries of the storage facility.
   4. (4) That the storage operator has made a good faith effort to secure the consent of all individuals who own the reservoir's pore space.
   5. (5) That the storage operator has made a good faith effort to obtain the consent of all pore space owners located within the proposed storage facility.
   6. (6) That the storage operator has obtained the consent of the pore space owners of the pore space underlying at least seventy percent (70%) of the surface area above the proposed storage facility or amended proposed storage facility.
   7. (7) That all pore space owners that do not agree to integrate their interests to develop the pore space as a proposed storage facility for the underground storage of carbon dioxide are equitably compensated.
   8. (8) That a carbon sequestration project will not adversely affect the interests of the mineral owners or mineral lessees or the interests have been addressed in an arrangement entered into by the mineral owners or mineral lessees and the storage operator.
   9. (9) That the proposed storage facility will not adversely affect surface waters or aquifers.
   10. (10) That the proposed storage reservoir will remain solid and the substances making up the storage reservoir will not mix or interact with the stored carbon dioxide.
   11. (11) That the storage facility will neither endanger human health nor endanger the environment.
   12. (12) That the storage facility is in the public interest.
   13. (13) That the horizontal and vertical boundaries of the storage reservoir are defined. These boundaries shall include buffer areas to ensure that the storage facility is operated safely and as contemplated.
   14. (14) That the storage operator will establish monitoring facilities and protocols to assess the location and migration of carbon dioxide injected for storage and to ensure compliance with all permit, statutory, and administrative requirements.
   15. (15) The final area of review based on modeling, using data obtained during logging and testing of the well and the formation as required by the department.
   16. (16) Any relevant updates, based on data obtained during logging and testing of the well and the formation, to the information on the geologic structure and hydrogeologic properties of the proposed storage site and overlying formations, submitted to satisfy the requirements of the department.
   17. (17) Information on the compatibility of the carbon dioxide stream with fluids in each injection zone and minerals in both the injection and each confining zone, based on the results of the formation testing program, and with the materials used to construct the well.
   18. (18) The results of the formation testing program required by the department.
   19. (19) Final injection well construction procedures that meet the requirements of the department.
   20. (20) The status of corrective action on wells in the area of review.
   21. (21) All available logging and testing program data on the well required by the department.
   22. (22) A demonstration of a mechanical integrity test.

   23. (23) Any updates to the:

       1. (A) proposed area of review and corrective action plan;
       2. (B) testing and monitoring plan;
       3. (C) injection well plugging plan;
       4. (D) post-injection site care and site closure plan; or

       5. (E) emergency and remedial response plan;

          resulting from testing performed during the application process.

   24. (24) That the proposed carbon sequestration project contains the minimum requirements for an effective program to prevent the underground injection of carbon from endangering drinking water sources as prescribed by the federal Safe Drinking Water Act (42 U.S.C. 300h(b)(1)).
   25. (25) Any other information the department determines should be reviewed.

3. (c) The department may include in a permit all things necessary to:

   1. (1) carry out the purposes of this chapter; and
   2. (2) protect and adjust the respective rights and obligations of individuals affected by a carbon sequestration project.

As added by P.L.161-2026, SEC.62.