HB 1098 Summary

• Establishes the Mississippi Geologic Sequestration of Carbon Dioxide Act, creating a regulatory framework for injecting and storing carbon dioxide in underground geological formations, particularly in oil and gas reservoirs.

• Grants the State Oil and Gas Board authority to approve, regulate, and oversee geologic sequestration facilities, including issuing permits for Class VI underground injection control wells and establishing performance bond requirements for storage operators.

• Requires board approval and majority consent from affected property and mineral owners before using a reservoir for carbon dioxide storage, with provisions to protect correlative rights and prohibit cost-sharing by royalty owners.

• Creates the Carbon Dioxide Storage Fund financed through per-ton fees on sequestration operations, with funds used for administration, enforcement, and post-injection facility oversight up to a cap of $2.5 million per facility.

• Allows operators of enhanced oil and gas recovery projects using carbon dioxide injection to voluntarily qualify as geologic sequestration facilities, enabling incidental storage while maintaining flexibility for traditional recovery operations.