Senate Bill 2723 Summary

• Creates the Mississippi Geologic Sequestration of Carbon Dioxide Act establishing a regulatory framework for long-term storage of carbon dioxide in subsurface geologic formations, administered by the State Oil and Gas Board.

• Grants the Oil and Gas Board authority to approve geologic sequestration projects, regulate Class II wells converted to Class VI underground injection control wells, and promulgate rules consistent with federal Safe Drinking Water Act requirements.

• Requires board approval before using a reservoir for carbon dioxide storage, with findings that the reservoir is suitable, poses no reasonable risk to freshwater sources or human safety, and majority interest consent from affected parties is obtained.

• Establishes a Carbon Dioxide Storage Fund supported by per-ton sequestration fees collected by the board, capped at $2,500,000 per facility, to fund oversight and maintenance of closed storage facilities.

• Permits existing enhanced oil or gas recovery projects using carbon dioxide injection to optionally qualify as geologic sequestration facilities for incidental carbon dioxide storage without mandatory compliance with all chapter requirements.