{"data":{"id":"us-ok/okla.-stat.-tit.-27a-27a-3-5-107","jurisdiction":"us-ok","citation":"Okla. Stat. tit. 27A, § 27A-3-5-107","heading":"Jurisdiction to create a carbon dioxide storage unit","body":"— Application — Notice — Findings — Order.\n\nA. The Corporation Commission, upon filing of an appropriate\n\napplication and following notice and hearing regarding the\n\napplication, shall have the jurisdiction to create a CO storage unit\n\n2\n\nas part of a CO sequestration facility and order the aggregation and\n\n2\n\ncommunitization of the pore space within an approved reservoir in\n\ndesignated tracts of land for the injection and storage of CO in\n\n2\n\nsuch approved reservoir.\n\nB. An application to create a CO storage unit may be filed by a\n\n2\n\nparty owning the rights to inject and store CO in the pore space of\n\n2\n\nthe approved reservoir in at least sixty-three percent (63%) of the\n\ntracts of land to be included in the CO storage unit based on the\n\n2\n\nsurface acres of such unit. The application shall include:\n\n1. A map or plat of the tracts of land to be included in the\n\nproposed CO storage unit; and\n\n2\n\n2. A plan of operations for such proposed CO storage unit,\n\n2\n\nwhich shall include, but not be limited to, an accounting procedure,\n\nthe method, formula, or other basis by which the benefits of the CO\n\n2\n\nstorage unit shall be shared, and the procedures to be followed for\n\ninvoicing and paying the costs of the CO storage unit.\n\n2\n\nC. Notice of an application to create a CO storage unit shall\n\n2\n\nbe served, at least fifteen (15) days prior to the hearing on the\n\nmerits of such application, by personal service or by mail, return\n\nreceipt requested, on:\n\n1. All owners of the right to inject and store CO in the pore\n\n2\n\nspace of the approved reservoir underlying the tracts of land to be\n\nincluded in the CO storage unit;\n\n2\n\n2. All owners of the surface of such tracts of land to be\n\nincluded in the CO storage unit; and\n\n2\n\n3. All owners of oil and gas working interests in the mineral\n\nestate in such approved reservoir underlying such tracts of land to\n\nbe included in the CO storage unit, including mineral owners in such\n\n2\n\napproved reservoir in such tracts of land who have retained and have\n\nnot conveyed away their working interests under any oil and gas\n\nleases, pooling orders, or otherwise.\n\nAn affidavit of service or mailing showing that the above-\n\ndescribed notice has been completed shall be filed with the\n\nCommission prior to a hearing on the merits of the application to\n\ncreate the CO storage unit.\n\n2\n\nD. Notice of an application to create a CO storage unit shall\n\n2\n\nbe published two times, with one such publication being at least\n\nthirty (30) days prior to the hearing on the merits of such\n\napplication and the second such publication being at least fifteen\n\n(15) days prior to such hearing, in a newspaper of general\n\ncirculation published in Oklahoma County and in a newspaper of\n\ngeneral circulation published in the county or counties in which the\n\nCO storage unit is to be located. Proof of publication showing that\n\n2\n\nthe above-described notice has been properly published shall be\n\nfiled with the Commission prior to a hearing on the merits of the\n\napplication to create the CO storage unit.\n\n2\n\nE. In creating a CO storage unit, the Commission shall find and\n\n2\n\ndetermine:\n\n1. That the applicant has the required percentage ownership of\n\nthe right to inject and store CO in the pore space of the approved\n\n2\n\nreservoir in the tracts of land to be included in the CO storage\n\n2\n\nunit;\n\n2. That the pore space in the approved reservoir in the tracts\n\nof land to be included in the CO storage unit is of such a nature or\n\n2\n\ncharacter that CO may be effectively, efficiently, and safely\n\n2\n\ninjected into and stored in such pore space;\n\n3. That the injected CO will be confined to the pore space of\n\n2\n\nsuch approved reservoir in the tracts of land to be included in the\n\nCO storage unit and that the CO injected into and stored in the\n\n2 2\n\npore space of such approved reservoir in such tracts of land will\nh a nature or\n\n2\n\ncharacter that CO may be effectively, efficiently, and safely\n\n2\n\ninjected into and stored in such pore space;\n\n3. That the injected CO will be confined to the pore space of\n\n2\n\nsuch approved reservoir in the tracts of land to be included in the\n\nCO storage unit and that the CO injected into and stored in the\n\n2 2\n\npore space of such approved reservoir in such tracts of land will\n\nnot escape and enter any other geologic interval or lands outside of\n\nthe CO storage unit;\n\n2\n\n4. That the injection and storage of CO in the pore space of\n\n2\n\nsuch approved reservoir in the tracts of land to be included in the\n\nCO storage unit will not adversely affect any existing oil and gas\n\n2\n\nproduction from any reservoir;\n\n5. That the injection and storage of CO in the pore space of\n\n2\n\nsuch approved reservoir in the tracts of land to be included in the\n\nCO storage unit will not adversely affect or prohibit any potential\n\n2\n\nfuture oil or gas production from such approved reservoir within the\n\ntracts of land included in the CO storage unit;\n\n2\n\n6. That the area to be included in the CO storage unit is of\n\n2\n\nsufficient size and shape to contain and hold all of the CO\n\n2\n\nanticipated to be injected into and stored in the CO storage unit,\n\n2\n\ntaking into account the extent of the plume which will be created by\n\nsuch injection;\n\n7. That the proposed operations of the CO storage unit will be\n\n2\n\nsuch as to safely handle, receive, process, compress, inject,\n\nconfine, and store in such approved reservoir in the tracts of land\n\nto be included in the CO storage unit;\n\n2\n\n8. That the operator of the CO storage unit is qualified to\n\n2\n\ncreate, maintain, and conduct operations in such unit; and\n\n9. That the proposed plan of operations is reasonable and\n\nadequate for the operation of the CO storage unit.\n\n2\n\nF. The Commission order creating the CO storage unit shall\n\n2\n\nprovide any owner of the right to inject and store CO in the pore\n\n2\n\nspace of the approved reservoir in the tracts of land included in\n\nsuch unit the following:\n\n1. The right to be a cost-bearing owner who participates in the\n\ncosts of and the benefits from such storage unit. The costs of the\n\nCO storage unit to be borne by a party electing to be a cost-bearing\n\n2\n\nowner in such unit shall include all the actual, necessary, and\n\nreasonable costs of creating, equipping, maintaining, and operating\n\nthe CO storage unit. The Commission shall make provisions for the\n\n2\n\npayment of such costs of the CO storage unit by the owners of the\n\n2\n\nright to inject and store in such CO storage unit. Such costs shall\n\n2\n\nnot include any costs of capturing or transporting the CO that is\n\n2\n\ninjected into and stored in the CO storage unit, including the costs\n\n2\n\nof any CO capture and compression equipment, CO pipelines\n\n2 2\n\ntransporting the CO to such CO storage unit, or any other equipment\n\n2 2\n\nor pipelines used in connection with such capture or transportation;\n\nor\n\n2. The right to receive the fair market value for such owner’s\n\nright to use such pore space for the injection and storage of CO ,\n\n2\n\nincluding the fee for the injection and storage of CO in such CO\n\n2 2\n\nstorage unit. The fair market value of the right to inject and\n\nstore CO in the pore space of such approved reservoir shall be\n\n2\n\ndetermined by the Commission, based on all relevant evidence\n\npresented by the parties as to such fair market value, including,\n\nbut not limited to, arm’s length consummated transactions involving\n\nthe transfer of the right to use pore space for the injection and\n\nstorage of CO , taking into account any differences in the\n\n2\n\ncircumstances involved in any such consummated transaction, and the\n\nspecific circumstances involved in the proposed CO storage unit.\n\n2\n\nThe Commission shall make provisions for payment of the amounts\n\nset forth above to the owners of the right to inject and store CO in\n\n2\ntransfer of the right to use pore space for the injection and\n\nstorage of CO , taking into account any differences in the\n\n2\n\ncircumstances involved in any such consummated transaction, and the\n\nspecific circumstances involved in the proposed CO storage unit.\n\n2\n\nThe Commission shall make provisions for payment of the amounts\n\nset forth above to the owners of the right to inject and store CO in\n\n2\n\nthe pore space of the approved reservoir who elect or are deemed to\n\nelect not to be cost-bearing owners in such CO storage unit. Any\n\n2\n\nowner of the right to inject and store CO in the pore space of the\n\n2\n\napproved reservoir who elects or is deemed to elect not to be a\n\ncost-bearing owner in the CO storage unit shall relinquish by\n\n2\n\noperation of law under the order creating the CO storage unit the\n\n2\n\nright to inject and store CO in the pore space in the approved\n\n2\n\nreservoir in the CO storage unit.\n\n2\n\nG. The Commission order creating the CO storage unit shall\n\n2\n\nestablish:\n\n1. The CO storage unit by defining and specifically describing\n\n2\n\nthe approved reservoir and the tracts of land included in the unit;\n\n2. The operator of the CO storage unit;\n\n2\n\n3. The plan of operations for the CO storage unit;\n\n2\n\n4. The options to be granted to an owner of the right to use\n\nthe pore space in the approved reservoir to inject and store CO as\n\n2\n\nprescribed in subsection F of this section;\n\n5. The estimated costs of creating, equipping, maintaining, and\n\noperating the CO storage unit and the provisions for the payment of\n\n2\n\nsuch costs;\n\n6. The procedures and safeguards to be followed for any owner\n\nof oil and gas rights to drill through the CO storage unit for the\n\n2\n\npurpose of producing oil or gas from another geologic interval;\n\n7. Any other procedures or safeguards that may be deemed\n\nnecessary to ensure the safe operation of the CO storage unit; and\n\n2\n\n8. The provisions for the termination of such CO storage unit,\n\n2\n\nincluding the obligations concerning the plugging of any wells used\n\nin connection with such unit and the remediation or restoration of\n\nthe surface of the lands used in the operation of such unit.\n\nH. Upon creation of a CO storage unit, the operator of the CO\n\n2 2\n\nstorage unit may inject a CO stream into and store CO in the\n\n2 2\n\napproved reservoir in the tracts of land included in such unit.\n\nOperation on any part of the CO storage unit shall be considered\n\n2\n\noperation on each separate tract of land in such CO storage unit.\n\n2\n\nI. On and after the effective date of a Commission order\n\ncreating a CO storage unit, operation of any well injecting CO into\n\n2 2\n\nthe approved reservoir in the tracts of land included in such unit\n\nshall be unlawful except as authorized by the order and plan of\n\noperations for such unit. Notice of the creation of the CO storage\n\n2\n\nunit shall be placed of record in each county in which the unit is\n\nlocated.\n\nJ. Upon creation of a CO storage unit, the Commission shall\n\n2\n\nretain jurisdiction over the unit, including the plan of operations\n\nfor the unit and the designation of the operator. Nothing in this\n\nsubsection shall preclude or impair the right of any affected party\n\nto obtain through the district courts of this state any remedy or\n\nrelief available at law or in equity for injuries or damages\n\nresulting from operation of a CO storage unit.\n\n2\n\nK. 1. The Commission, upon the filing of a proper application,\n\nmay enlarge or reduce a CO storage unit. The application for\n\n2\n\nenlargement or reduction of the CO storage unit shall set forth the\n\n2\n\nreasons for such enlargement or reduction. An operator who seeks to\n\nenlarge or reduce a CO storage unit shall comply with the minimum\n\n2\n\nownership requirements established in subsection B of this section\n\nas applied to all the tracts of land to be included in the proposed\n\nenlarged unit or reduced unit, whichever is applicable. Notice of\nr reduction of the CO storage unit shall set forth the\n\n2\n\nreasons for such enlargement or reduction. An operator who seeks to\n\nenlarge or reduce a CO storage unit shall comply with the minimum\n\n2\n\nownership requirements established in subsection B of this section\n\nas applied to all the tracts of land to be included in the proposed\n\nenlarged unit or reduced unit, whichever is applicable. Notice of\n\nan application to reduce a CO storage unit shall be given to the\n\n2\n\nowners of the right to inject and store CO in the pore space of the\n\n2\n\napproved reservoir in the unit.\n\n2. Notice of an application to enlarge a CO storage unit shall\n\n2\n\nbe given to:\n\na. the owners of the right to inject and store CO in the\n\n2\n\npore space of the approved reservoir in the CO storage\n\n2\n\nunit and in the additional pore space underlying the\n\ntracts of land to be added to such unit,\n\nb. the owners of oil and gas working interests in the\n\nmineral estate in the additional pore space to be\n\nadded to the unit, including mineral owners in the\n\nadditional pore space who have retained and have not\n\nconveyed away their working interests under any oil\n\nand gas leases, pooling orders or otherwise, and\n\nc. the owners of the surface of the additional tracts of\n\nland to be added to the unit. Notice of the\n\napplication to enlarge or reduce a CO storage unit\n\n2\n\nshall be served and published in the same manner with\n\nthe same time periods as set forth in connection with\n\nthe application to create a CO storage unit.\n\n2\n\nL. Subject to the provisions of Section 10 of this act, the CO\n\n2\n\ninjected into and stored in the pore space of the approved reservoir\n\nin a CO storage unit shall be the property of the cost-bearing\n\n2\n\nowners in such unit. However, upon termination of a CO storage\n\n2\n\nunit, the CO injected into the pore space of the approved reservoir\n\n2\n\nof the CO storage unit may remain in such pore space and need not be\n\n2\n\nremoved.\n\nM. The Commission may promulgate rules to effectuate the\n\nprovisions of this section.\n\nN. Any party aggrieved by any order or determination of the\n\nCommission made pursuant to this section may appeal the order or\n\ndetermination to the Supreme Court in the same manner as provided in\n\nSection 113 of Title 52 of the Oklahoma Statutes and any other\n\napplicable statutes relating to appeals of orders by the Commission.","path":["OK Code","Title 27A"],"source_url":"https://www.oklegislature.gov/OK_Statutes/CompleteTitles/os27A.pdf","current_through":"2026-08-14","vintage":"open-us-law v2026.08, retrieved 2026-09-14","retrieved_at":"2026-09-14T18:32:36Z","sha256":"6289dd64717b311746a3ddf418f3a9329f1bf529185e63b8e27642c71220341b","source_id":"us-ok","stale":false,"prev":"us-ok/okla.-stat.-tit.-27a-27a-3-5-106","next":"us-ok/okla.-stat.-tit.-27a-27a-3-5-108"},"notice":"GroundRules: Original legal text. Not legal advice."}