Published: May 04, 2008 10:27 am            

Panel to draft carbon bill

HELENA, Mont. — A Montana legislative panel agreed Thursday to draft a bill to specify that owners of the surface of the land also own the right to store gas or other substances in the ground underneath the property.

The Energy and Telecommunications Interim Committee said the issue needs to be decided at the 2009 Legislature as more companies consider storing carbon underground.

The technology is seen as a way to reduce carbon emissions from coal plants and to increase the production of oil fields by increasing underground pressure.

State Sen. Greg Lind of Missoula said landowners could negotiate with companies that wanted to store carbon under their property, potentially giving farmers and others another source of income.

"I think this would be a positive thing for landowners, and something we could do for the economically challenged parts of our state," the Democrat said.

The panel was told that most states are going the direction of granting landowners ownership of underground storage, rather than giving the rights to those who own the underground minerals.

In Montana, like many places, the owner of the surface land is often different than the owner of subsurface minerals such as oil and coal.

The committee says it plans to copy pieces of legislation advanced in Wyoming earlier this year.

Many states are wrestling with the issue as they prepare for newer clean coal technologies.

Companies, largely waiting for federal action on new rules, say they also need clarification from states on a number of issues before they can move forward with expensive projects.

The legislative committee did not deal with another potentially hot topic: Who is liable for the pollution if stored carbon escapes — potentially even hundreds of years later?

Companies say it's too risky for them to store the carbon underground until they know what rules for such issues will be.

A separate legislative panel, which will meet again later this month, is also wrestling with energy issues that came out of a global warming panel established by the governor. The Environmental Quality Council has so far focused on conservation — and steered clear from controversial measures, such as mandates on vehicle emissions.

        

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