On Thursday, the House Assembly debated SB2344, which focuses on the use of pore space in underground formations for saltwater disposal wells, enhanced oil recovery using carbon dioxide and the temporary storage of natural gas to reduce flaring.
Pore space is the void space or cavity within underground rock that is generally filled with water which is owned by the state, or oil or natural gas which is owned by the mineral estate. The use of the pore space is typically for the permanent storage of carbon dioxide, which is a very important part of the process and the economic success of carbon capture use and storage technologies.
The bill carrier, Representative George Keiser (R- Bismarck), said the bill is proposed to protect the rights of both mineral and surface owners and provide the necessary legal and economic certainty to the energy industry. The bill was necessary due to a recent ruling from the North Dakota Supreme Court that led to a great deal of uncertainty around the use of pore space. Bill sponsors created the legislation in order to clarify those issues as the language states that the surface estate owns the title to the pore space.
After passing the Senate with a unanimous vote of 45-0, the bill travelled over to the House Energy and Natural Resources Committee where it received over 12 hours of both subcommittee and full committee hearing study and discussion. During that process, there were many amendments adopted that sought to address the concerns of landowners to protect current contracts and to clarify that the surface owner owns the pore space.
The assembly passed the bill on a vote of 65-26. The bill now heads back to the Senate for either a concurrence with the House amendments or a conference committee to work out the differences in the bill.