Practice Areas: Climate Change

Carbon Capture and Sequestration (CCS)

Carbon fuels account for 80% of the world’s global energy supply. Coal accounts for 25% of this supply and is expected to continue to play a significant role in power generation, but managing the carbon dioxide emissions from coal combustion is going to change.

The capture and geologic sequestration of carbon dioxide (CCS) is one of the most, if not the most, critical technology needed for the transition to the carbon-constrained world where coal burning sources will soon be operating. The premise of clean coal relies in large part on the ability to successfully capture and sequester carbon dioxide. A convergence of forces – cap-and-trade legislation, federal and state tax incentives, increased research and development and global energy growth – should accelerate the deployment of CCS. Capturing CO2 emissions from new energy or industrial operations fueled by coal will be essential for the development of successful projects. The technology for CCS already exists but it has not yet been deployed on a large scale. Scaling up CCS activities is the key for a successful solution to greenhouse gas control.

Key Legal Issues. To minimize cost and liability and to maximize direct and indirect revenue potential through CCS, companies will need to understand the legal aspects of CCS. Legal solutions have the capacity to serve as a key differentiator in deployment time, in spurring new business opportunities, and reducing long-term operating costs. Legal challenges and opportunities underpin every phase of CCS from the separating and capturing of emission sources, to compressing and transportation, to storage location, and to the injection into underground or into sub-seabed geologic formations. On the risk side, the identification and analysis of applicable legal issues – including property rights, resource protection, and liability concerns – have important implications for operations and for the financing of any new coal, petroleum and other fossil fuel powered projects. Potential opportunities to spur short-term deployment of CCS include the use of existing oil and gas practice of enhanced oil recovery through CO2 injection, carbon monetization, and incentives in emerging regulatory frameworks. The opportunities and challenges inherent in CCS are well-understood by our attorneys, and we are well positioned to help our clients meet these legal challenges.

Our services:

• advise on property ownership issues for the subsurface storage of carbon, including porespace ownership;
• evaluate liability for unintended releases from CCS operations, including elements under the Safe Drinking Water Act and injuries associated with CO2 storage or transport;
• analyze how the monetization of credits are impacted by present CCS incentives and operations, including enhanced oil recovery operations, loan guarantees, and other fiscal incentives;
• develop contractual agreements, protocols and templates for the creation, sale, retention, and acquisition of emission reduction credits from CCS;
• provide guidance on current and proposed regulation of CCS, such as EPA’s Underground Injection Control Program and the Interstate Oil and Gas Compact Commission’s Model CCS Statute and Rule;
• monitor and analyze legislation, initiatives, and CCS policy developments on the local, state, and federal level; and
• advise on technical and intellectual property issues associated with the development and implementation of CCS technology.