Louisiana Revised Statutes, Title 30: Minerals, Oil, and Gas and Environmental Quality, Chapter 3: Exploration and Prospecting(Louisiana MOGEQ Act)

Jurisdiction(s)
Instrument Date
2008
Effective Date
Instrument Type
Primary
Relevant Regulatory Authority
State Mineral Board
Purpose and Context
The Louisiana MOGEQ Act provides for, among other things, the State Mineral Board to have authority to enter into operating agreements whereby revenues and risks associated with CO2 storage operations are shared with the State.
Relevant links
Instrument Access Date
27 September 2012
I. Regulatory scope and definitions
II. The scope and management of rights
III. Permitting storage site exploration, project development and CO2 injection
IV. Operating and closing storage facilities
Corrective and remedial measures

Summary

§ 209 of the Louisiana MOGEQ Act provides for the State Mineral and Energy Board to enter into operating agreements whereby:

  1. the State receives a share of revenues from the storage of, among other things, CO2; and
  2. assumes all or part of the risk of the cost of this activity, in situations where the Board determines that this would be in best interests of the State, for reasons of equity or the promotion of conservation.

Entry by the Board into such agreements will be subject to a two thirds vote of Board members, and the holding of a public in the affected parish pursuant to R.S. 30:6.

Examples of situations in which operating agreements may be entered into, as cited in § 209, include:

  1. creating caverns in salt domes for CO2 storage;
  2. establishing a CO2 storage facility in an underground reservoir;
  3. taking over an abandoned surface or underground storage facility in order to maximize its useful life;
  4. establishing a contractual agreement for the operation of a CO2 storage facility for the storage and distribution of CO2 for secondary or tertiary recovery operations; and
  5. establishing a contractual agreement on unleased acreage or where title is disputed to promote utilisation of the State's resources for storage.

Article/Section No.

§ 209

Instrument Text

§209.  State Mineral and Energy Board, authority of

In order to carry out the provisions of R.S. 30:208, the State Mineral and Energy Board may:

[…]

(4)

[…]

(e)  Upon a two-thirds vote of the members of the State Mineral and Energy Board and after a public hearing conducted in the affected parish pursuant to R.S. 30:6, enter into operating agreements whereby the state receives a share of revenues from the storage of oil, natural gas, liquid or liquefied hydrocarbons, or carbon dioxide, in whole or in part, as many be agreed upon by the parties, and assumes all or a portion of the risk of the cost of the activity in those situations where the board determines it is in the best interest of the state either in equity or in the promotion of conservation to do so, such as but not limited to the following illustrations:

(i)  Creating caverns in salt domes for the storage of hydrocarbons or carbon dioxide.

(ii)  Establishing a hydrocarbon or carbon dioxide storage facility in an underground reservoir.

(iii)  Taking over an abandoned surface or underground storage facility in order to maximize the useful life of the existing facility.

(iv)  Establishing a contractual agreement for the operation of a carbon dioxide storage facility for the storage and distribution of carbon dioxide for secondary or tertiary recovery operations.

(v)  Establishing a contractual agreement on unleased acreage or where title is disputed to promote utilization of the state's resources for storage.

[…]

V. Management of long-term responsibilities and liabilities
VI. Additional Issues
Additional Issues

Article/Section No.

§ 209

Instrument Text

§209.  State Mineral and Energy Board, authority of

In order to carry out the provisions of R.S. 30:208, the State Mineral and Energy Board may:

[…]

(4)

[…]

(e)  Upon a two-thirds vote of the members of the State Mineral and Energy Board and after a public hearing conducted in the affected parish pursuant to R.S. 30:6, enter into operating agreements whereby the state receives a share of revenues from the storage of oil, natural gas, liquid or liquefied hydrocarbons, or carbon dioxide, in whole or in part, as many be

agreed upon by the parties, and assumes all or a portion of the risk of the cost of the activity in those situations where the board determines it is in the best interest of the state either in equity or in the promotion of conservation to do so, such as but not limited to the following illustrations:

(i)  Creating caverns in salt domes for the storage of hydrocarbons or carbon dioxide.

(ii)  Establishing a hydrocarbon or carbon dioxide storage facility in an underground reservoir.

(iii)  Taking over an abandoned surface or underground storage facility in order to maximize the useful life of the existing facility.

(iv)  Establishing a contractual agreement for the operation of a carbon dioxide storage facility for the storage and distribution of carbon dioxide for secondary or tertiary recovery operations.

(v)  Establishing a contractual agreement on  

unleased acreage or where title is disputed to promote utilization of the state's resources for storage.

[…]