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

Affected: IC 4-21.5; IC 13; IC 14-39-2-4

Sec. 5. (a) A storage operator issued a carbon sequestration project permit by the department, with the transferee, may apply to the department for a carbon sequestration project permit transfer if the transferee meets the same underlying qualifications as the storage operator.

(b) At least one hundred twenty (120) days before the intended transfer date, a storage operator and transferee under subsection (a) shall notify the department of the intent to apply for a carbon sequestration project permit transfer. An application for a carbon sequestration project permit transfer must be completed as prescribed by the department, including the information required under subsection (c).

(c) A storage operator and transferee that apply for a carbon sequestration project permit shall submit the following with an application for a carbon sequestration project permit transfer:

(1) Proof the transferee is issued a UIC Class VI permit from the United States Environmental Protection Agency (U.S. EPA) and meets the same underlying qualifications of the storage operator.

(2) The name, address, telephone number, and signature of the storage operator and transferee.

(3) A statement verifying the information submitted is accurate and complete to the best of knowledge of the storage operator and transferee.

(4) The information or documentation submitted to the U.S. EPA by the storage operator and transferee with the UIC Class VI permit demonstrating the following:

(A) The transferee has the financial ability to construct, operate, and maintain a carbon sequestration project. The transferee shall give the department a copy of each financial responsibility instrument submitted by the transferee to the U.S. EPA for the UIC Class VI permit.

(B) The transferee has the managerial and technical ability to construct, operate, and maintain a carbon sequestration project. The transferee shall give the department a copy of each of the following managerial and technical documents submitted by the transferee to the U.S. EPA for the UIC Class VI permit:

(i) An area of review and corrective action plan.

(ii) A testing and monitoring plan.

(iii) A well plugging plan.

(iv) A postinjection site care and closure plan.

(v) A corrosion monitoring and prevention program.

(vi) An emergency and remedial response plan.

(vii) Construction details.

(C) The transferee, a contractor or subcontractor of the transferee, or an affiliate of the transferee, contractor, or subcontractor have the requisite expertise to construct, operate, and maintain a carbon sequestration project. A transferee shall specify the components to be handled by:

(i) the transferee; and

(ii) a contractor or subcontractor of the transferee.

(D) Information or documentation describing the scope of the proposed carbon sequestration project.

(5) A sworn statement describing how the transferee will construct, operate, and maintain the proposed carbon sequestration project to comply with applicable federal, state, and local law, including:

(A) safety regulations and rules governing constructing, operating, and maintaining the carbon sequestration project; and

(B) related facilities and equipment, to ensure the safety of the transferee's employees and the public.

A transferee shall include a copy of a federal, state, or local regulatory agency permit required in addition to the UIC Class VI permit with the statement under this subdivision.

(6) A statement that the interests of a mineral lessee or owner will not be adversely affected.

(7) An agreement between the transferee and a mineral lessee or owner under IC 14-39-2-4.

(8) Documentation regarding the following:

(A) A legal proceeding required under Section 13 or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.) and the transferee's report under Form 10-K.

(B) A description of a judgment entered against the transferee for a civil or an administrative complaint for violating a state or federal environmental protection law, which imposed a fine or civil penalty of more than ten thousand dollars ($10,000) on the transferee, not more than five (5) years before the date the application is submitted.

(C) A description of a conviction entered against the transferee for violating a state or federal environmental protection law not more than five (5) years before the application is submitted.

(9) The date the transfer will occur.

(d) If the department determines the application for a carbon sequestration project permit transfer is complete, the department shall notify the transferee, and the transferee shall do the following:

(1) Not later than sixty (60) days after receiving the notice under this subsection:

(A) place a copy of the application for a carbon sequestration project permit transfer in a public library located in each county where the carbon sequestration project is proposed to be located for public inspection; and

(B) notify the following parties using the method under 312 IAC 29-5-2 as follows:

(i) Each unit of government where a storage facility, monitoring well, or carbon dioxide injection well is located.

(ii) An owner of a parcel of real estate adjacent to land for which the use is incidental to a carbon sequestration project.

(iii) An owner of a parcel of real estate that may be, or is reasonably known to be, affected by the injection of carbon dioxide.

(iv) An owner of a parcel of real estate that may be, or is reasonably known to be, affected by the construction of a new road, or the improvement or use of an existing road, to gain access to a storage facility, monitoring well, or carbon dioxide injection well.

(2) Not later than thirty (30) days after publication, provide the department proof the notice under this subsection was published in accordance with 312 IAC 29-5-2(c).

(3) Provide the department proof the notice was delivered to a person under subdivision (1)(B).

(e) Not later than ninety (90) days after receiving proof the notice under subsection (b) was published, the department shall notify the applicant in writing that the department:

(1) approves the transfer; or

(2) denies the transfer.

(f) The department shall deny a carbon sequestration project permit if it determines any of the following:

(1) The Indiana general assembly or federal government enacted a statute or adopted a regulation that requires denial.

(2) The applicant failed to give the department a complete application for a transfer for one (1) year after initially submitting the application.

(3) The department has concerns about the character and fitness of the transferee based on the information given to the department under subsection (c)(8).

(4) The transferee fails to satisfy the financial, managerial, and technical requirements under this article.

(5) The transferee did not complete the requirements under subsection (c).

(6) The transferee demonstrated a pattern of willful violations resulting in damage to the environment.

(7) The transferee is a person with a pending violation notice or civil penalty under IC 13 or IC 14. If this finding is made, however, the transferee is not disqualified from receiving the transfer if:

(A) the violation is, or is in the process of being, corrected to the satisfaction of the department; or

(B) the transferee filed and is pursuing administrative review of the violation under IC 4-21.5.

(8) The transferee had a carbon sequestration project permit revoked under this rule.

(g) If an application for a permit transfer is filed and a pending violation notice is associated with the carbon sequestration project permit issued to the storage operator:

(1) the transferor that has a pending violation notice, and its surety, are liable to abate the violation and satisfy the assessed penalty;

(2) the transferee may accept liability to perform the violation abatement, and the transferor is required to satisfy the assessed penalty; or

(3) a transferee is liable to perform the violation abatement and for the assessed penalty, after the carbon sequestration project permit transfer.

The department may waive the penalty for a violation notice in writing not later than ninety (90) days after the permit transfer if the department determines that the transferee is acting in good faith to abate the violation.

(h) The department shall issue notice either approving or denying a permit transfer.

(i) A permit transfer is effective on approval in writing by the department.

(j) A determination under this section is subject to review and appeal under IC 4-21.5.

(Natural Resources Commission; 312 IAC 30-6-5; filed September 5, 2025, 11:44 a.m.: 20251001-IR-312250162FRA)