Ohio would regulate carbon storage projects and pore-space use

Ohio's oil and gas division would regulate carbon storage projects and set permit rules. The rules would cover carbon dioxide wells and storage facilities in Ohio. Operators would need a Class VI underground injection permit and other permits required by law, except for the permit under section 1509.05.

An applicant could ask the chief to approve one operating plan for an entire storage facility. This process would apply if the applicant cannot find or reach agreement with some pore-space owners. The applicant would first need to negotiate in good faith and obtain consent from owners of at least 70% of the pore space. The chief would hold a hearing and approve the request only if the project is reasonably necessary to enable carbon storage. An order would allocate economic benefits fairly among pore-space owners. It would not transfer ownership or grant surface access, except for access allowed by law or another order from the chief.

Surface owners would own pore space beneath their land unless it was separately conveyed or reserved. These provisions concern pore space beneath Ohio land and waters. An agreement conveying minerals or other underground resources would not transfer pore space unless it expressly includes it. Previously acquired pore-space rights would remain protected. Pore-space ownership alone would not give an owner a right to use the surface. The rules would not alter the stated priority of mineral and oil and gas rights.

Storage operators and well owners would pay fees tied to the amount of carbon dioxide injected. The per-ton fees would apply to carbon dioxide injected for storage. Operators would pay five cents per metric ton into a fund for post-closure care. Well owners would also pay three cents per metric ton for host communities, and permit-related fees would be set by rule. Host-community money would go to counties for local infrastructure, parks and recreation, education, or public safety. The per-ton fees would be paid quarterly.

The chief could transfer responsibility for stored carbon to the state after issuing a completion certificate. This process applies to a storage operator seeking a certificate for a carbon storage facility. The chief could issue a certificate only after injection stops, public notice and comment, and any hearing the chief considers necessary. The operator must meet safety and closure requirements. A certificate generally could not issue until at least 50 years after injection ends, unless the chief approves another timeline. State responsibility would have exceptions, including certain prior violations, material errors, dangerous carbon movement, or an insufficient fund balance. The 50-year period begins when carbon dioxide injection ceases.