La. Admin. Code tit. 43 § XI-3501

Current through Register Vol. 50, No. 11, November 20, 2024

Section XI-3501 - Operation, Construction, Extension, Acquisition, Interconnection or Abandonment of Carbon Dioxide Transmission Facilities (Formerly Section 703)

A. No person shall engage in the transmission of carbon dioxide or undertake the construction or extension of any facility therefor, or acquire or operate any such facility or extension thereof to serve secondary or tertiary recovery projects for the enhanced recovery of liquid or gaseous hydrocarbons or geologic sequestration project unless there is in force and effect with respect to such person an order of the commissioner authorizing such acts or operations. Provided, however, as to any person engaged in the transmission of carbon dioxide or the operation of any such facility to serve an existing secondary or tertiary recovery project for enhanced recovery of liquid or gaseous hydrocarbons or geologic sequestration project prior to the effective date of these regulations, over the routes and within the area for which application is made and has so operated since that time, the commissioner may issue such order without hearing and without requiring further proof that the public interest will be served upon certification by the operator that it is willing and able to comply with LAC 33:V, excepting the requirements for construction and design specifications, together with such other exceptions as the commissioner may grant to an applicant, if application for such order is made to the commissioner within 180 days after the effective date of these regulations. Pending the determination of any such application, the continuance of such operation shall be lawful. Provided further, that any person engaged in the construction of a facility for the transmission of carbon dioxide prior to the effective date of these regulations is authorized to continue such construction without an order of the commissioner for a period of 180 days after the effective date of these regulations, after which time said construction shall cease unless said person has filed an application with the commissioner for an order authorizing said construction. Pending the determination of any such application, the continuance of such construction shall be lawful.

B. No person engaged in the transmission of carbon dioxide shall abandon all or part of its facilities therefor subject to the jurisdiction of the commissioner, or any service rendered by means of such facilities, unless there is in force and effect an order of the commissioner authorizing said abandonment upon finding that:

1. the available supply of carbon dioxide is depleted to the extent that the continuance of service is unwarranted; or

2. that the public interest and energy needs permit such abandonment.

C. No person shall connect its carbon dioxide system with, move carbon dioxide into, or receive carbon dioxide from another pipeline system, including other systems owned by said person, unless there is in force and effect an order of the commissioner approving said operation.

D. No person shall exercise the rights of expropriation under the laws of this state in connection with the construction or operation of a carbon dioxide facility until the enhanced recovery project for liquid or gaseous hydrocarbons to be served or geologic sequestration project thereby has been approved by the commissioner and a certificate of public convenience and necessity for such facility has been issued. Provided, however, that the requirement for the issuance of a certificate of public convenience and necessity shall be limited to those facilities for which the right of expropriation of private property under the general state expropriation laws is asserted.

E. Application for orders as provided for in §3501 A, B, or C above, or for the issuance of a certificate of public convenience and necessity as provided for in §3501.D above, shall be made in writing to the commissioner and shall be in such form and contain such information as herein after required.

F. An order shall be issued to any qualified applicant therefor, authorizing the whole or any part of the operations, services, construction, extension or acquisition covered by the application, if it is found:

1. that the applicant is able and willing to perform the services proposed and to conform to all of the applicable provisions of Title 30 of the Louisiana Revised Statutes and the applicable rules and regulations in Title 43 and Title 33 of the Louisiana Administrative Code;

2. that the applicant proposes to construct and/or operate facilities for the transmission of carbon dioxide for injection in connection with a secondary or tertiary recovery project for the enhanced recovery of liquid or gaseous hydrocarbons or a geologic sequestration project; and

3. that the proposed facilities are reasonably necessary to serve a secondary or tertiary recovery project or geologic sequestration project.

G. A certificate of public convenience and necessity shall be issued to any qualified applicant therefor, authorizing the whole or any part of the operations, services, construction, extension or acquisition covered by the application, if it is found:

1. that the applicant is able and willing to perform the services proposed and to conform to all of the applicable provisions of Title 30 of the Louisiana Revised Statutes and the applicable rules and regulations in Title 43 and Title 33 of the Louisiana Administrative Code;

2. that the proposed services, operations, construction, extension or acquisition, to the extent authorized by such certificate, is or will be required by the present or future public interest;

3. that the applicant proposes to construct and/or operate facilities for the transmission of carbon dioxide for injection in connection with a secondary or tertiary recovery project for the enhanced recovery of liquid or gaseous hydrocarbons or geologic sequestration project which has been approved by the commissioner pursuant to the provisions of Title 30 of the Louisiana Revised Statutes and the applicable rules and regulations in Title 43 and Title 33 Title 43 and Title 33 of the Louisiana Administrative Code; and

4. that the proposed facilities are reasonably necessary to serve such approved secondary or tertiary recovery project or geologic sequestration project.

H. Certificate of public convenience and necessity shall be issued on the application of any qualified person upon the above findings. The commissioner may attach to any such certificate, and to the exercise of the rights granted thereunder, such reasonable terms and conditions as the public interest may require. Any facility to which a certificate of public convenience and necessity is issued by the commissioner under R.S. 30:4(C)(17) and these rules and regulations shall possess the right of expropriation with authority to expropriate private property under the general expropriation laws of the state, including R.S. 19:2(10) and R.S. 19:2(12).

La. Admin. Code tit. 43, § XI-3501

Promulgated by the Department of Natural Resources, Office of Conservation, LR 12:115 (February 1986), repromulgated LR 49303 (2/1/2023), Amended LR 49904 (5/1/2023), Amended LR 491096 (6/1/2023), Amended LR 5035 (1/1/2024), Amended LR 501246 (9/1/2024).

AUTHORITY NOTE: Promulgated in accordance with R.S. 30:4(C)(17), R.S. 30:1104(A), and R.S. 30:1107.