International Conference on CCS: Session 3.1 - Ms. Alexandra Malone
Transcript of International Conference on CCS: Session 3.1 - Ms. Alexandra Malone
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8/6/2019 International Conference on CCS: Session 3.1 - Ms. Alexandra Malone
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Addressing Legal and Regulatory Barriers:Examples from the United Kingdom and Canada
Alexandra Malone
Carbon Capture Legal Programme
University College London
International Carbon Capture and Storage Conference28 - 29 July 2011
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Overview
Key challenges remain for regulating CCS projects
Jurisdictions are taking action to develop legal
frameworks to address barriers to deployment Two leading examples:
Alberta, Canada
United Kingdom Outstanding issues
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Key Challenges for Regulating CCS
Long-term liability
Pore space ownership and use
Financial security for post-closure stewardship
Carbon capture readiness
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CCS in Canada
Federal and provincialgovernments both have a rolein CCS regulation
CCS projects most advanced in WesternCanada - various capture sources (power and
industrial) Onshore storage in saline formations and depleted
hydrocarbon reservoirs (with enhanced recovery)
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Alberta: CCS Policy Context
CCS is a key part of Albertas climate change andenergy strategies
Mandatory intensity-based GHG reduction targetsintroduced in 2007
CAD 2 billion in provincial funding allocated tofour projects to be operating by 2015
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Alberta: CCS Regulatory Framework
Existing regulatory frameworks from the oil andgas sector provide a basis for regulating CCS
Mines and Minerals Act Oil and Gas Conservation Act
CCS Statutes Amendment Actintroduced in 2010
Provides a legal framework for permitting CO2 storage
Addresses key areas of legal uncertainty
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Alberta: CCS Regulatory Framework
Pore space ownership
Legislation clearly vests ownership of all pore space in
the provincial government Prior to 2010, ownership of pore space was unclear
potential holdout issues from private mineral owners
Carbon Sequestration Tenure Regulation (2011)
Details elements of evaluation permits, sequestrationleases, and MMV plans
CO2 injection must not interfere with oil and gasproduction or existing use of underground formationfor oil or gas storage
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Long-term liability
Provincial government will accept liability for CO2
storage projects once closure requirements have beenmet
Province assumes statutory liability
Province indemnifies operator from third party actionsin tort
Alberta: CCS Regulatory Framework
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Alberta: CCS Regulatory Framework
Financial security for post-closure stewardship
Post-closure stewardship fund established for CCS
projects Funds may be used for post-closure monitoring,
statutory liabilities, orphaned facilities
Cannot be used to cover governments indemnityobligations
Contribution amount to be determined
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Alberta: CCS Regulatory Framework
RegulatoryFramework Assessment
Process to examine existing environmental, safety and
assurance processes for CCS Identify gaps and implement new processes to support
commercial deployment
Led by an expert panel and steering committee
F
our working groups:R
egulatory,E
nvironmental,MMV, Geological/Technical
Report back to government in Fall 2012
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CCS in the United Kingdom
UKand Scottish governmentsresponsible for CCS regulation
Capture from coal- and gas-firedpower plants
Offshore storage in salineformations or depleted hydrocarbon
reservoirs (potential for enhancedrecovery)
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UK: CCS Policy Context
GHG reduction objective: 80% by 2050 withinterim targets
Decarbonization of electricity by 2050 CCS recognized as a key mitigation option for
fossil fuels
UKto provide GBP 1 billion to first demonstration
project; committed to fund 3 additional projects
Numerous consultations on CCS policy since 2007
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European Union: CCS Legal Framework
EU Directive on the geological storage of CO2adopted April 2009
Applies to CO2 storage within a Member Statesterritory, exclusive economic zone, andcontinental shelf
Risk management framework for ensuring
environmentally safe storage of CO2 Member States must transpose into national laws
by 25 June 2011
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European Union: CCS Legal Framework
CCS Directive addresses many key issues
Carbon capture readiness requirements
Long term liability (environmental and climate) Financial security for post-closure stewardship
Third party access to transport and storage
Environmental impact assessment
MMV
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UK: CCS Regulatory Framework
Key legal instruments:
Energy Act 2008
Storage of CO2 (Licencing etc.) Regulations 2010Storage of CO2 (Termination of Licences) Regulations
2011
Third party access regulations pending
Establish licencing regime for exploration andstorage and create enforcement measures
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UK: CCS Regulatory Framework
Capture ready:
All combustion plants >300 MW must meet captureready requirements
Pore space ownership and use:
Offshore property vested in the Crown for the purpose
of gas storage Priority to oil and gas production and gas storage
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UK: CCS Regulatory Framework
Long-term liability:
Termination of licence after 20 years (can be less) ifclosure conditions are met
Transfer to UKgovernment of obligations formonitoring, corrective measures, preventative andremedial actions, surrender of allowances
Transfer to UKgovernment of any liabilities, future or
present, arising from leakage from the storage site
Costs recovered from operator if there is fault on its part
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UK: CCS Regulatory Framework
Financial security for post-closure stewardship:
Operator must provide a financial contribution to theUKgovernment prior to transfer of responsibility
Amount must cover at least the monitoring costs for 30years after transfer
Non-binding guidance for determining amount ofcontribution provided byEuropean Commission
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Outstanding Issues
Alberta
Liability regime no link to climate liability
No third party access provisions No preferential rights when granting storage leases
UK
Difficulty estimating financial security for post-closure
costs Compliance with requirements to prove CO2
containment before transfer of liabilities
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For more information:
www.ucl.ac.uk/cclp
Thank you for your attention!
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Useful Resources
Alberta
http://www.energy.alberta.ca/Initiatives/1438.asp
European Union
http://www.ucl.ac.uk/cclp/ccsdedlegstorage.php
http://ec.europa.eu/clima/policies/lowcarbon/ccs_en.htm
United Kingdom
http://www.ucl.ac.uk/cclp/ccsdedlegnat-UK.php
http://www.decc.gov.uk/en/content/cms/emissions/ccs/ccs.aspx