Authority: IC 14-10-2-4; IC 14-10-2-5; IC 14-39-0.5

Affected: IC 14-39

Sec. 3. (a) An applicant for a carbon dioxide transmission pipeline certificate of authority shall illustrate a financial ability to construct, operate, and maintain a carbon dioxide transmission pipeline by giving the department documentation proving the applicant obtained the insurance required under subsections (b) and (c).

(b) An applicant shall provide evidence to the department that the applicant maintains liability insurance in the following liability coverage amounts during the construction of a pipeline:

(1) For a pipeline not more than twenty (20) miles:

(A) seven hundred thousand dollars ($700,000) for each person; and

(B) five million dollars ($5,000,000) for each occurrence.

(2) For a pipeline greater than twenty (20) miles:

(A) seven hundred thousand dollars ($700,000) for the first twenty (20) miles; plus

(B) twelve thousand five hundred dollars ($12,500) for each additional mile, or part of an additional mile, for each person; and

(C) five million dollars ($5,000,000) for the first twenty (20) miles; plus

(D) twelve thousand five hundred dollars ($12,500) for each additional mile, or part of an additional mile, for each occurrence.

(c) In addition to the amounts required under subsection (b), an applicant shall provide a certificate of insurance to the department as proof the applicant maintains liability insurance in the following minimum liability coverage amounts while constructing, operating, and maintaining a pipeline:

(1) at least:

(A) one million dollars ($1,000,000) for each person; and

(B) five million dollars ($5,000,000) in the aggregate; and

(2) at least:

(A) one million dollars ($1,000,000) for each occurrence; and

(B) five million dollars ($5,000,000) in the aggregate.

(d) An applicant shall not cancel coverage required under subsections (b) and (c) during the construction of a pipeline.

(e) An applicant shall not cancel or otherwise allow coverage to lapse as required under subsection (c) while operating and maintaining a pipeline.

(f) An applicant shall provide a certificate of insurance for the coverage required under subsections (b) and (c):

(1) not later than December 31 each year; or

(2) not later than thirty (30) days before the required coverage under subsections (b) and (c) expires;

whichever is earlier.

(g) An insurer that issues a certificate of public liability insurance to an applicant for a certificate of authority shall notify the department if a change is made to the coverage required under this section.

(h) If the required length of a pipeline increases, an applicant shall obtain the proper insurance coverage required under subsection (b). If the required length of the pipeline decreases, the applicant may obtain decreased insurance coverage under subsection (b). The applicant shall notify the department of the change to coverage under this subsection not later than fourteen (14) days after the change to the required coverage occurs.

(Natural Resources Commission; 312 IAC 30-5-3; filed September 5, 2025, 11:44 a.m.: 20251001-IR-312250162FRA)