55-1637. Same; definitions; commission powers.

55-1637

Chapter 55.--OIL AND GAS
Article 16.--MISCELLANEOUS PROVISIONS

      55-1637.   Same; definitions; commissionpowers.(a) As used inK.S.A. 2009 Supp.55-1637 through 55-1640, and amendmentsthereto:

      (1)   "Carbon dioxide injection well" means any hole or penetration of thesurface of the earth used to inject carbon dioxide for underground storage orfor enhanced recovery of hydrocarbons and any associated machinery andequipment used for such injection of carbon dioxide. "Carbon dioxide injectionwell" does not include underground storage.

      (2)   "Commission" means the state corporation commission.

      (3)   "Underground storage" means any underground formation where carbondioxide is injected for sequestration.

      (b)   For the purposes of protecting the health, safety and property of thepeople of the state, and preventing escape of carbon dioxide into theatmosphere and pollution of soil and surface and subsurface water detrimentalto public health or to plant, animal and aquatic life, the commission, on orbefore July 1, 2008, shall adopt separate and specific rules and regulationsestablishing requirements, procedures and standards for the safe and secureinjection of carbon dioxide and maintenance of underground storage of carbondioxide. Such rules and regulations shall include, but not be limited to: (1)Site selection criteria; (2) design and development criteria; (3) operationcriteria; (4) casing requirements; (5) monitoring and measurement requirements;(6) safety requirements, including public notification; (7) closure andabandonment requirements, including the financial requirements of subsection(e); and (8) long-term monitoring.

      (c)   The commission may adopt rules and regulations establishing fees forpermitting, monitoring and inspecting operators of carbon dioxide injectionwells and underground storage. Fees collected by the commission under thissubsection shall be remitted by the commission to the state treasurer inaccordance with the provisions of K.S.A. 75-4215, and amendments thereto. Uponreceipt of each such remittance, the state treasurer shall deposit the entireamount in the state treasury and credit it to the carbon dioxide injection welland underground storage fund.

      (d)   The commission or the commission's duly authorized representative mayimpose on any holder of a permit issued pursuant to this section suchrequirements relating to inspecting, monitoring, investigating, recording andreporting as the commission or representative deems necessary to administer theprovisions of this section and rules and regulations adopted hereunder.

      (e)   Any company or operator receiving a permit under the provisions of thisact shall demonstrate annually to the commission evidence, satisfactory to thecommission, that the permit holder has financial ability to cover the cost ofclosure of the permitted facility as required by the commission.

      (f)   The commission may enter into contracts for services from consultants andother experts for the purposes of assisting in the drafting of rules andregulations pursuant to this section.

      (g)   Rules and regulations adopted under this act shall apply to any carbondioxide injection well or underground storage, whether in existence on theeffective date of this act or thereafter.

      History:   L. 2007, ch. 73, § 2; July 1.