42 U.S. Code § 15910 - Enhanced oil and natural gas production through carbon dioxide injection
(a) Production incentive
Congress finds the following:
(B) Enhanced oil and natural gas production from the sequestering of carbon dioxide and other appropriate gases has the potential to increase oil and natural gas production.
The purpose of this section is—
(A) to promote the capturing, transportation, and injection of produced carbon dioxide, natural carbon dioxide, and other appropriate gases or other matter for sequestration into oil and gas fields; and
(b) Suspension of royalties
(1) In general
If the Secretary determines that reduction of the royalty under a Federal oil and gas lease that is an eligible lease is in the public interest and promotes the purposes of this section, the Secretary shall undertake a rulemaking to provide for such reduction for an eligible lease.
The Secretary shall publish the advanced notice of proposed rulemaking within 180 days after August 8, 2005, and complete the rulemaking implementing this section within 365 days after August 8, 2005.
(3) Eligible leases
A lease shall be an eligible lease for purposes of this section if—
(A) it is a lease for production of oil and gas from the outer Continental Shelf or Federal onshore lands;
(B) the injection of the substances referred to in subsection (a)(2)(A) will be used as an enhanced recovery technique on such lease; and
(4) Amount of relief
The rulemaking shall provide for a suspension volume, which shall not exceed 5,000,000 barrels of oil equivalent for each eligible lease. Such suspension volume shall be applied to any production from an eligible lease occurring on or after the date of publication of any advanced notice of proposed rulemaking under this subsection.
The Secretary may place limitations on the royalty reduction granted under this section based on market price.
(c) Demonstration program
(A) In general
The Secretary of Energy shall establish a competitive grant program to provide grants to producers of oil and gas to carry out projects to inject carbon dioxide for the purpose of enhancing recovery of oil or natural gas while increasing the sequestration of carbon dioxide.
(A) In general
The Secretary of Energy shall issue requirements relating to applications for grants under paragraph (1).
(C) Minimum requirements
At a minimum, the Secretary shall require under subparagraph (A) that an application for a grant include—
(ii) an estimate of the production increase and the duration of the production increase from the project, as compared to conventional recovery techniques, including water flooding;
(v) a description of the means by which the project will be sustainable without Federal assistance after the completion of the term of the grant;
(vi) a complete description of the costs of the project, including acquisition, construction, operation, and maintenance costs over the expected life of the project;
(vii) a description of which costs of the project will be supported by Federal assistance under this section; and
An applicant for a grant under paragraph (1) may carry out a project under a pilot program in partnership with 1 or more other public or private entities.
(4) Selection criteria
In evaluating applications under this subsection, the Secretary of Energy shall—
(B) give priority consideration to applications that—
(iii) demonstrate the greatest commitment on the part of the applicant to ensure funding for the proposed project and the greatest likelihood that the project will be maintained or expanded after Federal assistance under this section is completed; and
(5) Demonstration program requirements
(A) Maximum amount
The Secretary of Energy shall not provide more than $3,000,000 in Federal assistance under this subsection to any applicant.
(B) Cost sharing
The Secretary of Energy shall require cost-sharing under this subsection in accordance with section 16352 of this title.
(C) Period of grants
(i) In general A project funded by a grant under this subsection shall begin construction not later than 2 years after the date of provision of the grant, but in any case not later than December 31, 2010.
(6) Transfer of information and knowledge
The Secretary of Energy shall establish mechanisms to ensure that the information and knowledge gained by participants in the program under this subsection are transferred among other participants and interested persons, including other applicants that submitted applications for a grant under this subsection.
Not later than 180 days after August 8, 2005, the Secretary of Energy shall publish in the Federal Register, and elsewhere, as appropriate, a request for applications to carry out projects under this subsection.
(B) Date for applications
An application for a grant under this subsection shall be submitted not later than 180 days after the date of publication of the request under subparagraph (A).
(d) Records and inventory
The Secretary of the Interior, acting through the Bureau of Land Management, shall maintain records on, and an inventory of, the quantity of carbon dioxide stored within Federal mineral leaseholds.
Source(Pub. L. 109–58, title III, § 354,Aug. 8, 2005, 119 Stat. 715; Pub. L. 110–140, title VII, § 713,Dec. 19, 2007, 121 Stat. 1715.)
2007—Subsecs. (d), (e). Pub. L. 110–140added subsec. (d) and redesignated former subsec. (d) as (e).
Effective Date of 2007 Amendment