Bill > HB458

This bill establishes the Geologic Carbon Dioxide Storage Stewardship Act, which creates a comprehensive framework for managing carbon dioxide (CO2) storage in underground geological formations. The legislation defines key terms like "geologic sequestration" (underground CO2 storage) and creates a new regulatory structure overseen by the Oil Conservation Division. The bill establishes a long-term storage stewardship fund, funded by operator fees of at least 10 cents per metric ton of CO2 injected, which will be used for monitoring, maintenance, remediation, and emergency response related to CO2 storage sites. Operators can apply for a certificate of closure after demonstrating long-term storage security, which would transfer ongoing stewardship responsibilities to the state. The bill also clarifies ownership of underground "pore space" where CO2 will be stored, stating that pore space ownership generally belongs to the surface landowner unless explicitly severed. Importantly, the legislation provides a pathway for operators to be released from long-term liability after meeting strict requirements, including proving the CO2 is stable and unlikely to leak, all wells are properly plugged, and all equipment is in good condition. The act applies to new CO2 sequestration facilities and provides a mechanism for existing facilities to also transfer stewardship to the state.

Agriculture and Natural Resources, Budget and Finance

https://www.nmlegis.gov/Legislation/Legislation?chamber=H&legtype=B&legno=458&year=25