40-11-11. Geologic carbon storage amalgamation unit -- Procedure for establishment -- Operation.

335 words·~2 min read·/ut/title-40/chapter-11/40-11-11

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

Effective 5/4/2022

(1)The board may hold a hearing to consider the need for the amalgamation of a tract for geologic carbon storage.

(2)The board shall make an order providing for the amalgamation of a tract for geologic carbon storage, if the board finds that:

(a)amalgamation is reasonably necessary for the purposes of this chapter; and

(b)the value of amalgamation justifies proceeding against the nonconsenting owner's wishes.

(3)The amalgamation order shall include:

(a)a description of the lands and of the reservoir to become a storage facility;

(b)a statement of the nature of the operations contemplated;

(c)an allocation to the separately owned tracts in the amalgamation unit of the profits the storage facility receives, considering:

(i)agreements among interested parties; and

(ii)the relative value of the separately owned tracts within the amalgamation area;

(d)a provision for adjustment among the owners of the amalgamation area for investments made prior to the amalgamation order;

(e)a provision determining the allocation of costs among owners, and how the owners shall pay those costs;

(f)any necessary provision for:

(i)financing an owner; or

(ii)carrying an owner;

(g)a provision for the supervision and conduct of the storage facility operations, including a percentage vote for each owner;

(h)additional provisions that are necessary and appropriate for carrying on the operation of the amalgamation unit; and

(i)the designation of an operator of the amalgamation unit.

(4)An amalgamation order described in Subsection

(3)shall only be effective after the plan for operating the storage facility is approved in writing by:

(a)owners whose obligations under the amalgamation order require them to pay not less than 70% of the costs for operating and constructing the facility; and

(b)owners whose combined interest under the amalgamation order is not less than 70% of the profits from the operation of the storage facility.

Enacted by Chapter 62 , 2022 General Session