Bill > HB457

This bill establishes a comprehensive legal framework for geologic carbon dioxide sequestration in New Mexico, creating a detailed process for companies (operators) to inject and store carbon dioxide underground in specific geological formations. The bill defines key terms, such as "geologic sequestration" (long-term underground storage of carbon dioxide), and outlines a rigorous application and approval process for creating sequestration units. Operators must demonstrate the suitability of geological formations for carbon dioxide storage, secure agreements from at least 85% of landowners within the proposed unit, and obtain approval from the Oil Conservation Division. The legislation ensures fair compensation for surface and subsurface landowners, clarifies ownership rights of injected carbon dioxide, and establishes that operators cannot interfere with existing mineral rights. The bill also creates a new fund to support regulatory oversight, specifies that sequestration facilities are not considered public utilities, and preserves mineral owners' rights to drill through sequestration units. Importantly, the bill does not apply to carbon dioxide injection for enhanced oil and gas production and includes provisions to protect fresh water aquifers and prevent contamination of mineral deposits. The legislation aims to provide a structured approach to carbon dioxide sequestration while balancing the interests of various stakeholders.

Agriculture and Natural Resources

https://www.nmlegis.gov/Legislation/Legislation?chamber=H&legtype=B&legno=457&year=25