Last week’s legislative update highlighted a letter that was sent to all members of the legislature from Lignite Energy Council’s CEO Jason Bohrer regarding the use of pore space to utilize traditional oil wells in future carbon capture projects. This legislation was developed after a recent North Dakota Supreme Court decision created a lot of confusion as to who owned the pore space when it was the long-standing practice that it was the surface owner who possessed the rights under the law. The bill, SB2344, provides the clarity that the surface owner indeed has those rights and it helps provide both legal and economic certainty for the use of pore space during enhanced oil recovery.
After the letter was received, the bill received two positive votes as the Senate voted 34-12 and the House voted 66-24. On Thursday, April 18, Governor Burgum signed the bill into law and issued the following statement:
“This legislation went through seven subcommittees, more than 15 hours of hearings and numerous amendments to address landowner concerns and create certainty for underground injection, which has the potential to enhance oil recovery and further improve the environmental sustainability of North Dakota’s coal industry,” Burgum said. “With the clarifying amendments, we’re confident that the bill protects landowners and preserves their compensation opportunities.”