Gov. Mike Dunleavy’s carbon storage revenue model is still in the works. The Department of Natural Resources will accept comments through the end of business today proposes to adopt regulations on “Carbon Storage Exploration Licensing and Leasing.”
The regulatory changes come as a result of Dunleavy’s legislation that allowed for the state to enter the carbon storage business, plus new regulation of natural gas storage and geothermal energy. House Bill 50 set up the regulatory framework for storing carbon gases in underground caverns; the carbon market is an effort to reduce greenhouse gases by issuing carbon credits that can be bought and sold, and for nations and companies to buy space in the underground caverns where they can pump carbon dioxide. It’s all part of the climate change agenda and companies are making billions of dollars off of it.
The regulations to be amended are in Title 11, Natural Resources, of the Alaska Administrative Code, dealing with Carbon Storage Licensing and Leasing, and include the following:
- Proposed amendments:
- 11 AAC 05.110. Leasable minerals. Includes carbon storage exploration license and lease application and administration fees, simplifies the section title, and adds a definition for leasable minerals.
- 11 AAC 80.045. Field gathering lines exempt. Adds definition of “carbon dioxide” and amends definition of “field gathering line” to add new classification to transport carbon dioxide.
- 11 AAC 80.055. Field gathering lines defined. Repeals definition and readopts it as subsection (b) to 11 AAC 80.045 with added classification for transport of carbon dioxide.
- Proposed new Title 11, Chapter 84, Article 9, Carbon Storage Licensing and Leasing, to be adopted:
- 11 AAC 84.1000. Minimum qualifications. Establishes minimum qualifications for who may apply for, obtain, or transfer interest in carbon storage exploration licenses and leases.
- 11 AAC 84.1005. Carbon storage exploration license applications. Establishes what must be included in an application for an exploration license.
- 11 AAC 84.1010. Call for competing proposals. Establishes the procedure for calls for competing proposals after an exploration license application is received.
- 11 AAC 84.1015. Best interest findings. Establishes the procedure and criteria for issuance of a best interest finding before determining whether to issue a carbon storage exploration license or lease.
- 11 AAC 84.1020. Competitive bidding procedure; assessment criteria. Establishes competitive bidding procedures and assessment criteria if competing proposals are accepted.
- 11 AAC 84.1025. License administration. Establishes reporting and payment requirements for licensees.
- 11 AAC 84.1030. Default by licensee; termination, revocation, and surrender of a license. Establishes procedures, rights, and responsibilities for default, termination, revocation, and surrender of a license.
- 11 AAC 84.1035. Conversion of carbon storage exploration license to storage lease; lease provisions. Establishes the procedure and requirements for converting a license to a lease.
- 11 AAC 84.1040. Transition from enhanced oil recovery operations to carbon storage operations; lease provisions. Establishes the procedure and requirements for issuing a carbon storage lease to an oil and gas lessee upon transitioning from enhanced oil recovery to permanent carbon storage operations.
- 11 AAC 84.1045. Default by lessee, termination and surrender of a carbon storage lease. Establishes procedures, rights, and responsibilities for default, termination, and surrender of a carbon storage lease.
- 11 AAC 84.1050. Carbon storage lease unitization. Establishes procedures and requirements for unitizing carbon storage leases.
- 11 AAC 84.1055. Assignments. Establishes procedures and requirements for assigning an interest in carbon storage exploration licenses and leases, which must be approved by the commissioner.
- 11 AAC 84.1060. Application for approval of assignment. Establishes the requirements for approval of an application of an assignment of interest in a carbon storage license or lease.
- 11 AAC 84.1065. Plan of development; application requirements. Establishes requirements for a plan of development for carbon storage leases, which will be subject to regular review.
- 11 AAC 84.1070. Plan of operations; application requirements; completion reports.Establishes requirements for a plan of operations to permit on-the-ground activities.
- 11 AAC 84.1075. Surety requirements. Establishes requirements for bonding or other acceptable forms of surety of performance under the conditions of a carbon storage license or lease.
- 11 AAC 84.1080. Damages. Requires a licensee or lessee to pay damages and indemnify the state in the case of claims made by surface owners in accordance with AS 38.05.130.
- 11 AAC 84.1085. Long-term monitoring and maintenance of leased area. Establishes procedures for the Department of Natural Resources to assume long-term monitoring and maintenance of a storage facility after closure, including the use of the carbon storage closure trust fund established by AS 37.14.850.
- 11 AAC 84.1090. Definitions. Defines terms used in the adopted regulations in 11 AAC 84.
The public may comment on the proposed regulation changes, including the potential costs to private persons of complying with the proposed changes, by submitting written comments to Department of Natural Resources, Division of Oil & Gas, at 550 W. 7th Ave, Suite 1100, Anchorage, AK 99501-3563. Additionally, the Division of Oil & Gas will accept comments by fax at (907) 269-8939 and by electronic mail at [email protected]. The comments must be received not later than 5 p.m. on Dec. 2.
All of this brought to you by the same Wall Street shysters that gave us Enron and mortgage derivatives! What can possibly go wrong?
As the Artic Tundra naturally warms, you might want to figure out what to do with the natural releasing of methane emitted from this process. I’m not exactly sure if this Carbon Capture endeavor is really going to result in something meaningful? At a minimum, it looks like there could be some jobs and economic benefits but, environmentally I think it’s somewhat questionable.
One day, a majority will realize we were duped with the CO2 sermons of doom. We will have spend zillions of dollars on stainless steel pipelines that carry CO2 far into the ground where it will keep our planet’s climate safe from rising temperatures. We will have blocked off thousands of acres of forests for 55 years to suck up that CO2. And when it becomes more commonly known that we have already reached the saturation point (look it up) of how much longwave radiation (the kind that makes things warm) CO2 can “convert” to heat long ago, we will act like we knew the whole carbon fearing thing was a farce all along.
Like how we obediently wore masks here, there, and everywhere, but now most of us admit we didn’t “really” believe it was saving lives.
We lie. We believed it or lived in fear of being called out for not believing it. The same thing will happen with the CO2 NONdebate issue. Just not today. We are too afraid to debate, let alone call out the economically damning policies to make it stop. We just keep paying “the price” to stop global temperatures from rising by blaming CO2, the same gas that has increased the green organic growth by 3x in the last 30 years.
A gross case of fraud, waste and abuse. This is theft and a climate scam.
Way stupider than I would want to be.
It seems the global elite won’t let him move on until he has finished what they hired him to do. It’s interesting that they are not taking phone calls—only letters via fax and email.
This program has many problems that are simply being brushed over as business as usual. Let me lay out a few of them, in my opinion.
**Amendment #18: 11 AAC 84.1085**
This amendment establishes procedures for the Department of Natural Resources to assume long-term monitoring and maintenance of a storage facility after closure, including the use of the carbon storage closure trust fund established by AS 37.14.850.
Why in the world would the state take liability for these wells for all of eternity after they are full? All around the world, the storage and sequestration of CO2 is causing a slew of seismic activity. Just go look it up—don’t take my word for it.
As for the storage closure trust fund, how long before they raid that fund and use it for the next boondoggle or attempt to invest it into the market? lets take a look-The commissioner of revenue is a fiduciary of the fund and shall manage and invest the fund assets as provided in AS 37.10.071. Under this section, the fiduciary of a state fund or their designee may:
1. Delegate investment, custodial, or depository authority on a discretionary or non-discretionary basis to officers or employees of the state;
2. Assign such authority to independent firms, banks, financial institutions, or trust companies via appointments, contracts, or letters of authority.
OK, you’re right; let’s set that aside for now. Let me ask: why would we turn Cook Inlet into a dumping ground for CO2?
No one is using CO2 for enhanced oil recovery (EOR). Please don’t fall for the lies—it’s simply too expensive. Let me ask: is sequestration profitable without the 45Q federal tax credit? **No.** Those are their words, not mine. This is why they’re not using their own capital to fund it. Their using your money money you should be investing, saving or feeding your family with classic redistribution the State cant afford to pay its bill now you think it needs to grow ?
Are you paying federal taxes so the government can give that money to corporations to do something that is not profitable without subsidies? Where will the money come from if and when the 45Q program ends? **CARBON TAXES** Is that why you pay taxes? You are effectively paying taxes to decrease the purchasing power of your own dollar. Your money has been weaponized against you. They will say we must have carbon taxes the program is to far along its far more expensice to stop now due to contracts and lawsuits.
That’s not hyperbolic. It’s an effort to control your behavior through what is called a behavioral modification tax. If you tax carbon, you tax all of life. Since when did the Constitution give the government the power to tax life itself? When did we become a nation where you have to purchase your life from the state?
You think that’s crazy? Right now, Visa and MasterCard are running carbon footprint pilot programs. Where you have two scores a carbon footprint score and a credit score why is that? and what happens when you have plenty of credit but have runout of carbonfootprint credit? think that false?
‘https://www.mastercard.com/news/press/2021/april/mastercard-unveils-new-carbon-calculator-tool/
and here
‘https://usa.visa.com/about-visa/newsroom/press-releases.releaseId.18521.html
OK, OK, I hear you—never mind all that. Let me ask if you are aware that, in the last 10 years, there have been **63 CO2 pipeline rupture incidents.** This was never even discussed in committee. You can’t run from a CO2 cloud. You can’t even drive away—your engine won’t start because it displaces oxygen. If you drive into one, your car or truck will shut off, and ambulances can’t come to help you.
Don’t listen to me; go look it up. I leave you with this video and this document please read
‘https://alaskaventure.org/wp-content/uploads/2024/03/Alaska-Resources-and-Opportunities-in-Response-to-Climate-Change.pdf
‘https://m.youtube.com/watch?v=llcvrKDJRo0&pp=ygUScGlwZWxpbmUgZGVjZXB0aW9u
The ruptures are my concern also! I wasn’t aware about Cook Inlet being penned as the storage are. Natural gas there right? Lots of small earthquakes shallow and deep happen there. The companies designing and building the carbon storage tanks are doing a lousy job at designing a tank and piping that allows for flexing. Southcentral Alaska ground is flexing all of the time (earthquakes). There is so much land that is at or near sea-level. If there is a carbon storage tank rupture, that carbon gas will seek the lowest level and suffocate everything in its vicinity. Other places have recorded the effects of a ruptured tank – suffocation, vehicles dying suddenly because they need oxygen to run, neurological damage. What a great way to do some more democide/genocide.
This is another of the completely unconstitutional BS moves to further restrict and impoverish people based on a fabrication regarding the climate. It is unbelievable how easily people jump on this shoveling of money around under the guise of “climate change”. The more legislation that is accepted within this sphere of idiocy, the more the common citizen can expect to be restricted in their rights under the constitution.
This is just too much. I think dunleavy is an absolute beeping moron. Who in their right mind would ever think sequestering Co2 would be a good idea. Maybe a good idea if you want everything to die and move into another ice age…
April 2023 – Iowa is fighting back against the carbon pipeline that would transfer carbon dioxide to N.D. where N.D. is pumping oil out of the ground. Is carbon dioxide being used to push the oil out of the ground? Dunleavy says he wants to make money off of storing carbon here (dangerous, by the way); but, are they really going to use it to push more oil out of the ground?
‘https://youtu.be/KjoQ0aMvSHE?si=MN6h_qkFKx-QXInH
Isn’t it interesting that this push for the carbon storage licensing happened while we were all busy with election season and the recounts? Hmmm.
Climate change is a scam, co2 capture is a scam, stop the insanity. There, I fixed it.
Love the preceding comments… Freudian slip Suzanne: new regulations are always “pus”! 🙂
My garage is available for self service carbon storage. $150 per cubic inch per month. Bring your CO2 in a safe container. Inner tubes, inflatable pools, balloons, single use plastic bags are all fine. Leave them at the door with your cash, Don’t forget to take your crypto receipt from the invisible roll mounted on the wall. Non payment will be reported to John Kerry who will respond via private jet. For reservations call 1 800 U CANT MAKE THIS SH#T UP.
Government creates CO2 mandates.
Government creates carbon credit “currency” so producers of CO2 can keep producing CO2 yet avoid penalties under mandate.
Producers increase cost of product to pay for carbon credits and pass cost on to consumers.
You are the consumer who ultimately pays for this.
That, people, is a TAX, a work-around plunder, created and procured by government, and sold to you under the obfuscation that it is for your own good (ie: health and well being of climate equals your health and well being).
I emailed the state and included Rep. Kevin McCabe. I wanted to include Gov. Dunleavy, but he does not have an email that he shares on his website. I pointed out that many people expressed that they did not want to have carbon storage in our state and that the whole thing is a hoax. I want to share a portion of McCabe’s response. Interesting.
“First, the storage is not going to happen in “tanks” – it is going to be at minimum 2800 feet underground in empty natural gas reservoirs or possibly certain coal seam or Salt/calcium areas. 2800 feet provides enough pressure where the CO2 is a semi-liquid.
Also, we asked about the dangers of a leak. And you are not wrong. But this is why the state primacy of these wells is so important – so we can ensure that the “cap” over the storage area is sufficient to contain the slurry and if there is ever a leak to the surface, it is in an unpopulated area. Keep in mind that we already inject CO2 into the some of these reservoirs for what is known as EOR, or extended oil recovery. The industry is not inexperienced at doing this and assured us it can be, and is currently being, done safely.
Having said all of that, I totally agree with you that it is a huge scam. Man made climate change, caused by CO2, in, and of itself, is a huge hoax. But there is no way to get financing for projects unless we have some framework for project developers to lean on saying that it is possible that they could sequester CO2. We stripped everything else out of the bill other than the title 6 wells and state primacy over them.
The danger from CO2 is that it displaces oxygen. CO2 is not itself a dangerous gas. Our atmosphere currently contains about .042% of it. It becomes dangerous at 5%. In fact, plants and trees grow better when the CO2 levels approach 1000 PPM. At current trajectory in the atmosphere we won’t reach that level for another 275 years. And yet we are spending trillions to strip more of it out of the atmosphere. It is extremely stupid. Yet that hand we are dealt in Alaska to get our resources out of the ground means we have to play their game to a certain extent. Hence HB50 which is already signed into law.”
If I remember correctly, when HB 50 first came to light, everyone was speaking out against it and the dangers that it presents. If something goes wrong, just think how it is going to destroy the fish runs and so on. Anyway. What is passed is passed.
HB 50
Status Date
07/31/2024
Bill Version
SCS CSHB 50(FIN) AM S
Short Title
CARBON STORAGE; COOK INLET OIL AND GAS
Sponsor(S)
HOUSE RULES BY REQUEST OF THE GOVERNOR
Title
“An Act relating to carbon storage on state land; relating to the powers and duties of the Alaska Oil and Gas Conservation Commission; relating to deposits into the permanent fund; establishing the carbon storage closure trust fund and carbon dioxide storage facility administrative fund; relating to geothermal resources; relating to carbon storage exploration licenses; relating to carbon storage leases; relating to carbon storage operator permits; relating to enhanced oil or gas recovery; relating to long-term monitoring and maintenance of storage facilities; relating to carbon oxide sequestration tax credits; relating to the Regulatory Commission of Alaska and regulation of the service of natural gas storage; relating to the regulation of liquefied natural gas import facilities; relating to the oil and gas production tax; relating to the duties of the Department of Natural Resources; relating to carbon dioxide pipelines; relating to reserve-based state loans for oil and gas development projects in the Cook Inlet sedimentary basin; relating to the Alaska Industrial Development and Export Authority; requiring the Alaska Industrial Development and Export Authority to report to the legislature on oil and gas projects with potential to increase oil and gas production from the Cook Inlet sedimentary basin; relating to an audit of carbon storage leases conducted by the legislative audit division; and providing for an effective date.”
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