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Queensland CO2 dump plans: legislative proposals set out CCS Exploration Permits, Potential Commercial Area and Storage Lease arrangements

Posted by gmarkets on 3 September, 2007

It was proposed that the P&G Act be amended and a new chapter inserted specifically to regulate tenure for CO2 capture and storage, according to the Queensland Department of Mines and Energy report, Carbon dioxide geosequestration tenure administration. Distinct tenure briefly considered: To recognise the unique nature of CO2 geosequestration, a different tenure, distinct from the existing petroleum tenure, was also contemplated. Queensland was committed to using the MCMPR Regulatory Guiding Principles to develop CCS legislation.

Key issues for new laws: The legislation would aim to be consistent with the MCMPR Regulatory Guiding Principles and deal with the following range of issues:

• location of suitable sites;

• appropriate tenure type and term of tenure;

• capture and transport of CO2;

• access to that land;

• injection of CO2;

• storage of CO2;

• safety;

• monitoring of stored CO2;

• liability, including post-closure/post-project;

• financial;

• approval and assessment

Proposed CCS tenure model: Although the terminology may change the following tenure arrangements are proposed for CCS activities:

• CCS Exploration Permit (CCS EP);

• CCS EP for Retention- Potential Commercial Area (CCS PCA);

• CCS Storage Lease (CCS SL);

EP conditions: A CCS EP will allow the successful proponent to conduct CCS exploration in the permit area and according to the approved work program submitted with the application.

PCA conditions: A CCS PCA will be an option whereby a CCS EP holder has discovered a suitable underground reservoir for CCS storage but no “CCS stream” (yet to be defined) was currently available.

SL conditions: A CCS SL would allow the holder to inject and store a CCS stream into the previously approved CCS reservoir. The activities must be done according to the approved development plan for the project. Site selection will be one of the most important elements of CCS activities with a requirement for a “predictive CCS stream migration model” to be included in the development plan.

Reference: This publication may be printed from or downloaded form the DME website at ww.dme.qld.gov.au For copyright enquries telephone (07) 3237 1644 or send facsimile to (07) 3238 3188. The closing date for submission sis two months from the date of announcement by the Minister. Submissions can be sent by post, facsimile or email. Postal address: Mining Legislation Review, Mining and Petroleum, Department of Mines and Energy, PO Box 15216, City East Qld 4002 Facsimile: (07) 3238 3188 Email: ccsleg@dme.qld.gov.au Please note: This discussion paper is for public discussion and comment and does not commit the government or a Minister either to the views expressed in it or to a particular direction for future action. All submissions will be treated as public documents subject to the Freedom of Information Act 1992. Submissions may take the form of letters or emails addressing the questions asked in the paper, issues of concern, or a list of matters identified by page or section numbers, stating the issues arising and suggested solutions.

Erisk Net, 1/8/2007

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