Geologic Storage or Sequestration of Carbon Dioxide.

Ala. Code tit. 9, ch. 17, art. 6, div. 2

in effect

Ala. Code § 9-17-160 “Pore Space” Defined.

9-17-160. “Pore Space” Defined. For the purposes of this division, the term “pore space” means subsurface space that can be used for the geologic storage or sequestration of carbon dioxide and incidental substances that are part of the carbon dioxide capture, transportation, or storage process. EndFragment (Act 2024-325, §2.)

Ala. Code § 9-17-161 Possessory Right to Pore Space; Conveyance of Surface Ownership of Real Property; Approval to Operate Carbon Dioxide Storage Facility.

9-17-161. Possessory Right to Pore Space; Conveyance of Surface Ownership of Real Property; Approval to Operate Carbon Dioxide Storage Facility. (a) The ownership of pore space in all strata below the surface lands and waters of this state is vested in the owners of the surface rights above the underlying strata where the pore space exists, unless the ownership interest in the pore space has previously been severed from the surface ownership or is explicitly excluded or reserved in a conveyance. (b) A conveyance of the surface ownership of real property shall be a conveyance of the pore space in all strata below the surface of the real property unless the ownership interest in the subsurface pore space has previously been severed from the surface ownership or is explicitly excluded or reserved in the conveyance. The ownership of pore space in strata may be conveyed in the manner provided by law for the transfer of surface interests in real property. (c) No previous agreement conveying or reserving oil, gas, or other mineral interests in real property shall act to convey or reserve ownership of any pore space or carbon dioxide storage rights in the stratum unless the agreement explicitly conveys or reserves subsurface space to be used for the geologic storage or sequestration of carbon dioxide. (d) No agreement conveying the right to use or occupy a storage facility, pore space, and potentially the surface or subsurface of the land incident thereto shall convey any other right of real property use, including oil, gas, or other minerals, within the same instrument. Any agreement that violates this subsection is void; provided, however, this subsection shall not apply to any agreement executed before October 1, 2024. (e) The owner of any pore space right shall have no right to use the surface estate beyond that set out in a properly executed instrument nor in any manner that will adversely affect any existing easement, whether public or private. (f) Nothing in this section shall alter, amend, diminish, or invalidate any right to the use of pore space that was acquired by contract or lease prior to October 1, 2024. (g) In considering whether to approve a storage facility to be used for the storage and sequestration of carbon dioxide pursuant to this division, the board shall consider both of the following: (1) Any competing rights of all separately owned estates in lands potentially affected by the storage facility, giving due consideration of competing rights to existing or future uses by pore space, surface, and mineral owners that may be affected. (2) The distance of the storage facility from any current or future underground mining operation or other underground operation designed and operated for the extraction of minerals and the potential impact on the safety of these operations. (h) Other than a claim to an ownership interest in pore space, nothing in this division shall be construed to change, alter, diminish, or in any way affect the statutory or common law as of October 1, 2024, as it relates to the rights belonging to surface and mineral estates. EndFragment (Act 2024-325, §2.)

Ala. Code § 9-17-162 Requirements for Storage Facilities.

9-17-162. Requirements for Storage Facilities. For a storage facility that is used for the storage and sequestration of carbon dioxide, all of the following shall apply: (1) A storage operator shall adhere to all rules adopted by the board relating to the underground storage of carbon dioxide. (2) A storage operator shall make a good faith effort to obtain the consent of all persons that own a storage facility’s pore space and storage rights for carbon dioxide. (3) A storage operator shall obtain the consent of persons that own not less than 66 and two-thirds percent of a storage facility’s pore space and storage rights for carbon dioxide. (4) Upon a storage operator obtaining the consent of persons that own not less than 66 and two-thirds percent of a storage facility’s pore space and storage rights for carbon dioxide, the board, after providing notice and a public hearing, may enter an order to amalgamate and pool the pore space and storage rights for carbon dioxide owned by nonconsenting owners into the storage facility on terms that are just and reasonable as determined by the board. (5) All nonconsenting owners of a storage facility’s pore space and storage rights for carbon dioxide shall be fairly and equitably compensated. (6) A storage operator shall use commercially reasonable efforts to limit the adverse surface-use impact upon the lands of nonconsenting owners of a storage facility’s pore space and storage rights. (7) A storage operator seeking approval to operate in the Blue Creek or Mary Lee coal seams in Jefferson, Tuscaloosa, or Walker counties or within a 10-mile radius of any coal mine operation shall obtain the written consent of the coal mine operator and mineral owner with an operation or mineral interest in the seams or within the radius; provided, however, that the consent shall not be unreasonably withheld or delayed. (Act 2024-325, §2.)

Ala. Code § 9-17-163 Underground Carbon Dioxide Storage Facility Administrative Fund; Underground Carbon Dioxide Storage Facility Trust Fund.

9-17-163. Underground Carbon Dioxide Storage Facility Administrative Fund; Underground Carbon Dioxide Storage Facility Trust Fund. (a)(1) The Underground Carbon Dioxide Storage Facility Administrative Fund is created in the State Treasury. The fund shall consist of all administrative fees for the geologic storage of carbon dioxide as determined by the board pursuant to Section 9-17-151(d). (2) All monies in the fund shall be used only for the purpose of defraying expenses incurred by the board in the performance of its administrative and regulatory duties relative to the geologic storage of carbon dioxide. (3) Monies in the fund shall be invested by the State Treasurer for the sole benefit of the fund and in a manner to obtain the highest return possible while preserving the principal. Any interest earned on the fund shall be deposited into the fund. (4) The fund shall be paid out only by warrant of the Comptroller upon the State Treasury, upon itemized vouchers, approved by the State Oil and Gas Supervisor, provided, no funds shall be withdrawn or expended except as budgeted and allotted according to the provisions of Sections 41-4-80 through 41-4-96 and Sections 41-19-1 through 41-19-12, and only in amounts as stipulated in the general appropriation or other appropriation bills, and provided further, any funds unspent and unencumbered at the end of any state fiscal year shall not be transferred into the State General Fund. (b)(1) The Underground Carbon Dioxide Storage Facility Trust Fund is created in the State Treasury. (2) The fund shall consist of any fees levied by the board pursuant to Section 9-17-151(d) and all monies received by the board to measure, monitor, and verify underground carbon dioxide storage facilities following the plugging and abandonment of all injection wells in accordance with board rules, issuance of a certificate of project closure and completion, and release of all financial assurance instruments for a storage facility. The board shall adopt rules as necessary to collect monies for the fund in an amount reasonably calculated to pay the costs of measuring, monitoring, and verifying the sites. (3) Monies in the fund shall only be used for the following purposes: a. Testing, monitoring, and long-term inspection of underground carbon dioxide storage facilities. b. Remediation of mechanical problems associated with remaining wells and infrastructure. c. Plugging and abandoning monitoring wells. d. All costs associated with the release of carbon dioxide from underground carbon dioxide storage facilities following the issuance by the board of a certificate of project closure and completion and release of financial assurance instruments. e. Other operations and activities deemed necessary by the board or the State Oil and Gas Supervisor to protect underground sources of drinking water and for public health and safety following the issuance of a certificate of project closure and completion by the board and release of all financial assurance instruments. (4) Monies in the fund shall be invested by the State Treasurer for the sole benefit of the fund and in a manner to obtain the highest return possible while preserving the principal. Any interest earned on the fund shall be deposited into the fund. (5) The fund shall be paid out only by warrant of the Comptroller upon the State Treasury, upon itemized vouchers, approved by the State Oil and Gas Supervisor, provided, no funds shall be withdrawn or expended except as budgeted and allotted according to the provisions of Sections 41-4-80 through 41-4-96 and Sections 41-19-1 through 41-19-12, and only in amounts as stipulated in the general appropriation or other appropriation bills, and provided further, any funds unspent and unencumbered at the end of any state fiscal year shall not be transferred into the State General Fund. EndFragment (Act 2024-325, §2.)

Ala. Code § 9-17-164 Certificate of Project Closure and Completion.

9-17-164. Certificate of Project Closure and Completion. (a) A storage operator has title to all carbon dioxide injected and stored in a storage facility. A storage operator is liable for any damages attributed to its operations while holding title to the injected carbon dioxide. (b) Upon all carbon dioxide injections into a storage facility ending and application by a storage facility operator, the board may issue a certificate of project closure and completion for the storage facility. (c) A certificate of project closure and completion shall only be issued after all of the following have been satisfied: (1) Notice and a public hearing on the issuance of the certificate are provided pursuant to Section 9-17-152(a). (2) The board has consulted with the Alabama Department of Environmental Management regarding issuing the certificate. (3) Ten or more years have passed from the date carbon dioxide injection into the storage facility ended. (4) The storage operator has demonstrated all of the following to the satisfaction of the board: a. The storage facility is in full compliance with all governing laws and rules. b. The storage facility is reasonably expected to retain the carbon dioxide. c. The carbon dioxide in the storage facility is stable. For purposes of this paragraph, carbon dioxide is stable if it is essentially stationary or, if it is migrating or may migrate, migration is unlikely to cross the underground reservoir boundary and is not expected to endanger any underground source of drinking water. d. All wells, equipment, and facilities to be used in the post-closure period are in good condition and retain mechanical integrity. e. All injection wells have been plugged, all related equipment and facilities used during the pre-closure period not necessary for long-term monitoring have been removed, and all reclamation work required by the board has been completed. (d) Upon the issuance of a certificate of project closure and completion, all of the following shall occur: (1) Title to equipment and facilities necessary for long-term monitoring and all carbon dioxide injected into the storage facility, without payment of any compensation, shall transfer to the state. Title acquired by the state includes all rights and interests in, and all responsibilities and liabilities associated with, all equipment and facilities used for long-term monitoring and the stored carbon dioxide within the storage facility. A storage operator may not transfer to the state, and the state may not accept, any property interests or rights that the storage operator does not own or have the authority to transfer. (2) The storage operator and all persons that generated any injected carbon dioxide shall be released from all regulatory requirements associated with the storage facility. (3) The storage operator shall be released from all bonds and other security posted by the storage operator. (4) Monitoring and managing the storage facility shall become the responsibility of the state and be administered by the board unless an agency of the federal government assumes responsibility for the long-term monitoring and management of the storage facility. EndFragment (Act 2024-325, §2.)

Ala. Code § 9-17-165 Authorization to Lease Pore Space of Certain Lands for Underground Storage of Carbon Dioxide.

9-17-165. Authorization to Lease Pore Space of Certain Lands for Underground Storage of Carbon Dioxide. The Commissioner of Conservation and Natural Resources, on behalf of this state, is authorized to lease pore space for any lands under the jurisdiction of the Department of Conservation and Natural Resources for underground storage of carbon dioxide on, in, and under the lands. EndFragment (Act 2024-325, §2.)

Ala. Code § 9-17-166 Rulemaking Authority.

9-17-166. Rulemaking Authority. The board may adopt rules as necessary to implement and administer this division. EndFragment (Act 2024-325, §2.)

Source: Alabama Legislature (alison.legislature.state.al.us)URL: https://alison.legislature.state.al.us/code-of-alabamaFetched: 10/20/2026