View all text of Part A [§ 15901 - § 15912]
§ 15910. Enhanced oil and natural gas production through carbon dioxide injection
(a) Production incentive
(1) FindingsCongress finds the following:
(A) Approximately two-thirds of the original oil in place in the United States remains unproduced.
(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.
(C) Capturing and productively using carbon dioxide would help reduce the carbon intensity of the economy.
(2) PurposeThe 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) to promote oil and natural gas production from the outer Continental Shelf and onshore Federal lands under lease by providing royalty incentives to use enhanced recovery techniques using injection of the substances referred to in subparagraph (A).
(b) Suspension of royalties
(1) In general
(2) Rulemakings
(3) Eligible leasesA 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
(C) the Secretary determines that the lease contains oil or gas that would not likely be produced without the royalty reduction provided under this section.
(4) Amount of relief
(5) Limitation
(6) Application
(c) Demonstration program
(1) Establishment
(A) In general
(B) ProjectsThe demonstration program shall provide for—
(i) not more than 10 projects in the Willistin Basin in North Dakota and Montana; and
(ii) 1 project in the Cook Inlet Basin in Alaska.
(2) Requirements
(A) In general
(B) Rulemaking
(C) Minimum requirementsAt a minimum, the Secretary shall require under subparagraph (A) that an application for a grant include—
(i) a description of the project proposed in the application;
(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;
(iii) an estimate of the carbon dioxide sequestered by project, over the life of the project;
(iv) a plan to collect and disseminate data relating to each project to be funded by the grant;
(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
(viii) a description of any secondary or tertiary recovery efforts in the field and the efficacy of water flood recovery techniques used.
(3) Partners
(4) Selection criteriaIn evaluating applications under this subsection, the Secretary of Energy shall—
(A) consider the previous experience with similar projects of each applicant; and
(B) give priority consideration to applications that—
(i) are most likely to maximize production of oil and gas in a cost-effective manner;
(ii) sequester significant quantities of carbon dioxide from anthropogenic sources;
(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
(iv) minimize any adverse environmental effects from the project.
(5) Demonstration program requirements
(A) Maximum amount
(B) Cost sharing
(C) Period of grants
(i) In general
(ii) Term
(6) Transfer of information and knowledge
(7) Schedule
(A) Publication
(B) Date for applications
(C) Selection
(d) Records and inventory
(e) Authorization of appropriations
(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.)