KRS 353.435: Compilation certificate -- Procedures -- Public notice and hearing --

Defense, indemnification, and hold harmless of pore space or surface owner by

Commonwealth -- Release of liability -- Filing of completion certificate and

survey with county clerk.

(1) The cabinet may issue a completion certificate upon application by the

sequestration operator demonstrating compliance with KRS 353.411 to 353.459 at

one (1) of the following times:

(a) Fifty (50) years after carbon dioxide injections into a reservoir end; or

(b) At any other time frame established on a site -specific basis by administrative

regulations promulgated pursuant to KRS Chapter 13A regarding the time

frame for a sequestration operator's post -injection site care and site closure

plan.

(2) The completion certificate shall only be issued:

(a) After public notice and hearing; and

(b) If the sequestration operator demonstrates that:

1. The operator is in full compliance with all laws and other requirements

governing the sequestration facili ty, including without limitation, the

requirements of any Class VI underground injection control permit

associated with the facility and other applicable requirements;

2. All pending claims regarding the sequestration facility's operation have

been addressed and resolved; and

3. The carbon dioxide injected into the sequestration reservoir has

stabilized, and the reservoir is reasonably expected to retain the stored

carbon dioxide.

(3) As of the effective date of a completion certificate:

(a) Ownership of the stored carbon dioxide shall transfer by operation of law,

without payment of any compensation, to the Commonwealth;

(b) If any claim for damages or injury is made against the pore space or surface

owner arising from stored carbon dioxide, the Commonwealth shall defend

the pore space or surface owner against that claim and indemnify and hold the

pore space or surface owner harmless from any damages awarded, except that

a pore space owner or surface owner may be liable for causing or contributing

to migration or release of stored carbon dioxide from the reservoir. The

Commonwealth's liability for such claims and its obligation to indemnify a

pore space owner or surface owner for any claim shall not obligate payment

of any damages in excess of the balance of the carbon dioxide seque stration

facility trust fund established in KRS 353.441;

(c) The sequestration operator and all persons who transported or generated any

stored carbon dioxide shall be released from all regulatory liability and

regulatory requirements associated with the s equestration facility, provided

that the sequestration operator shall not be released from regulatory liability

for fraud or misrepresentation, nor from any liability existing at common law;

and

(d) The Commonwealth's responsibility for monitoring and mana ging the

sequestration facility following issuance of the completion certificate and

assumption of ownership of the sequestered carbon dioxide shall be funded

from the carbon dioxide sequestration facility trust fund established in KRS

353.441 until and un less the federal government assumes responsibility for

the long-term monitoring and management of sequestration facilities.

(4) The cabinet shall require that a copy of the completion certificate and a survey of

the sequestration field be filed with the county clerk in the county or counties where

the carbon dioxide sequestration facility is located.