Formation of the IOGCC Geological CO2 Sequestration Task Force and North Dakota’s Efforts at Creating a CO2 Infrastructure. Lynn Helms, Director of the Department of Mineral Resources, North Dakota Industrial Commission, Spring 2010.

The IOGCC task force recognized that states and provinces might have statutory and regulatory frameworks that could accommodate CO2 injection and storage but that some modification of those frameworks likely would be necessary, particularly for the post-operational phase for which no regulations existed. To this end, the task force, under the sponsorship of DOE/NETL, began work on a second project in 2006 (Phase II) to start development of a detailed guidance document. The most critical components of the document are a prototype CO2 storage statute, a set of model rules and regulations governing the storage of CO2 in geologic media, and an explanation of those regulatory components. Also included was a report addressing the ownership and right of injection of CO2 into the subsurface.

University of North Dakota Energy and Environmental Research Center Establishes PCORP.

As the CCGS task force was forming its conclusions about carbon capture and geologic storage, the University of North Dakota Energy and Environmental Research Center fashioned the Plains CO2 Reduction Partnership (PCORP) – one of seven regional partnerships formed by the DOE to address carbon sequestration. PCORP was founded in the fall of 2003. It is comprised of more than 80 stakeholders, including the IOGCC, and spans the heartland of North America. PCORP represents a multi-year collaborative effort segmented into three phases.

Phase I focused on characterizing the CO2 storage opportunities in the PCORP region. It accomplished the following: (1) development of a comprehensive regional assessment of CO2 sources and sinks; (2) development of the PCORP Partnership Decision Support System; (3) identification, ranking, and action plans for promising sequestration demonstration projects; (4) formulation of key geographic information systems for CO2 sources and sinks, infrastructure, and regulatory issues; (5) recommendations for monitoring and verification systems; (6) development of outreach materials for both public and professional consumption.

Phase II focused on field-tested storage validation projects. Phase II is aimed at creating the technical expertise in the PCORP region necessary for large-scale storage. Phase II accomplished this goal through: (1) continued assessment of regional carbon sequestration opportunities; (2) development of field validation projects; (3) evaluation of the feasibility of commercial scale selected carbon sequestration technologies; (4) assessment of associated risks and the public’s perception of CO2 capture and storage; (5) and continued public outreach and education. Phase III aims to create two large-scale implementation projects.

North Dakota Legislation

Recognizing that CCGS soon would become a major part of the energy landscape of the state, North Dakota formed a task force to draft legislation creating a new chapter of the North Dakota Century Code pertaining to CO2 capture and storage based on the model statute developed by the IOGCC. The task force is composed of representatives from PCORP, the Attorney General’s office, Department of Health, Department of Mineral Resources, lignite mining and power generation trade associations, and oil and gas trade associations. As a result of the task force’s efforts, the North Dakota Industrial Commission pre-filed Bills SB2095 and SB2139 in December 2008.

The key aspects of the bills:

o Identify the environmental and economic benefits associated with the development of CO2 infrastructure o Establish the North Dakota Industrial Commission as the regulatory authority

o Task the North Dakota Industrial Commission to prevent pollution and nuisance

o State that properly stored CO2 is neither a pollutant nor a nuisance

o Set ownership of the pore space and CO2 as well as who is responsible for CO2 prior to and following the completion of a storage project North Dakota Rulemaking The North Dakota Industrial Commission began the administrative rule-making process September 10, 2009, utilizing the same task force, IOGCC model regulations, and the requirements set out in the above legislation that became law on August 1, 2009. These new rules will become effective April 1, 2010.

See attachment below for full presentation of North Dakota Department of Mineral Resources PowerPoint presentation by Lynn Helms, Department of Mineral Resources, North Dakota Industrial Commission.