Section 11 – Geologic carbon storage amalgamation unit — Procedure for establishment — Operation.

• (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