2023 Louisiana Laws › Revised Statutes › Title 30 - Minerals, Oil, and Gas and Environmental Quality › §30:1109. Cessation of storage operations; limited liability release

RS 30:1109 - Cessation of storage operations; limited liability release
A.(1) Fifty years after cessation of injection into a storage facility, or any other time frame established on a site-specific basis by application of the rules regarding the time frame for a storage operator's post-injection site care and site closure plan, the commissioner shall issue a certificate of completion of injection operations, upon a showing by the current storage operator of all of the following:
(a) The reservoir is reasonably expected to retain mechanical integrity.
(b) The carbon dioxide will reasonably remain emplaced.
(c) The storage facility does not pose an endangerment to underground sources of drinking water or the health and safety of the public.
(d) The current storage operator has complied with all applicable regulations related to post-injection monitoring and the issuance of the certificate of completion of injection operations.
(e) The storage facility has been closed in accordance with all applicable regulations related to site closure.
(2) Upon issuance of the certificate of completion of injection operations, ownership to the remaining project including the stored carbon dioxide transfers to the state.
(3) Upon the issuance of the certificate of completion of injection operations, the storage operator, all generators of any injected carbon dioxide, all owners of carbon dioxide stored in the storage facility, and all owners otherwise having any interest in the storage facility shall be released from any and all future duties or obligations under this Chapter and any and all liability associated with or related to that storage facility which arises after the issuance of the certificate of completion of injection operations. The release from duties or obligations under this Chapter shall not apply to a current or former owner or operator of a storage facility when the duties or obligations arise from that owner or operator's noncompliance with applicable underground injection control laws and regulations prior to issuance of the certificate of completion of injection operations.
(4) Provided the provisions pertaining to site-specific trust accounts are not applicable, the release from liability will not apply to the owner or last operator of record of a storage facility if the Carbon Dioxide Geologic Storage Trust Fund has been depleted of funds such that it contains inadequate funds to address or remediate any duty, obligation, or liability that may arise after issuance of the certificate of completion of injection operations.
(5) The release provided in Paragraphs (3) and (4) of this Subsection shall not apply to any owner of a storage facility, any storage operator, any operator of a carbon dioxide transmission pipeline, or any generator of the carbon dioxide being handled by either the storage facility or the carbon dioxide transmission pipeline if it is demonstrated that the owner, storage operator, operator, or generator intentionally and knowingly concealed or intentionally and knowingly misrepresented material facts related to the mechanical integrity of the storage facility or the chemical composition of any injected carbon dioxide. In addition, upon the issuance of the certificate of completion of injection operations, continued monitoring of the site, including remediation of any well leakage, shall become the principal responsibility of the Carbon Dioxide Geologic Storage Trust Fund.
(6) It is the intent of this Section that the state shall not assume or have any liability by the mere act of assuming ownership of a storage facility after issuance of a certificate of completion of injection operations.
B.(1) In any civil liability action against the owner or operator of a storage facility, carbon dioxide transmission pipeline, or the generator of the carbon dioxide being handled by either the facility or pipeline, the maximum amount recoverable as compensatory damages for noneconomic loss shall not exceed two hundred fifty thousand dollars per occurrence, except where the damages for noneconomic loss suffered by the plaintiff were for wrongful death; permanent and substantial physical deformity, loss of use of a limb or loss of a bodily organ system; or permanent physical or mental functional injury that permanently prevents the injured person from being able to independently care for himself or herself and perform life sustaining activities. In such cases, the maximum amount recoverable as compensatory damages for noneconomic loss shall not exceed five hundred thousand dollars per occurrence.
(2) If Paragraph (1) of this Subsection, or the application thereof to any person or circumstance, is finally determined by a court of law to be unconstitutional or otherwise invalid, the maximum amount recoverable as damages for noneconomic loss shall thereafter not exceed one million dollars per occurrence. This provision shall not supersede any contractual agreement with respect to liability between a plaintiff and an owner or operator of a storage facility, a carbon dioxide transmission pipeline, or the generator of the carbon dioxide.
C. Nothing in this Chapter shall establish or create any liability or responsibility on the part of the commissioner or the state to pay any costs associated with site restoration from any source other than the funds or trusts created by this Chapter, nor shall the commissioner or the state of Louisiana have any liability or responsibility to make any payments for costs associated with site restoration if the trusts created herein are insufficient to do so.
D. The commissioner or his agents, on proper identification, may enter the land of another for purposes of site assessment or restoration.
E. The commissioner and his agents are not liable for any damages arising from an act or omission if the act or omission is part of a good faith effort to carry out the purpose of this Chapter.
F. No party contracting with the Department of Energy and Natural Resources, office of conservation, or the commissioner under the provisions of this Chapter shall be deemed to be a public employee or an employee otherwise subject to the provisions of Parts I through IV of Chapter 15 of Title 42 of the Louisiana Revised Statutes of 1950.
G. The commissioner shall implement this Section in a manner consistent with and as the commissioner deems necessary to carry out the purposes and requirements of the federal Safe Drinking Water Act, as amended, relating to the state's participation in the underground injection control program established under that Act with respect to the storage and sequestration of carbon dioxide, including but not limited to the state's authority to restrain any person from engaging in any unauthorized activity which is endangering or causing damage to public health or the environment.
Acts 2009, No. 517, §2; Acts 2023, No. 150, §5, eff. Jan. 10, 2024; Acts 2023, No. 378, §1, eff. June 14, 2023.