1. Date 31.10.2008 faculty of lawgroningen centre of energy law CCS: Regulating Subsoil Storage of CO2 Prof. dr. martha M. Roggenkamp m.m.roggenkamp@rug.nl

2. Date 31.10.2008 faculty of lawgroningen centre of energy law >Subsoil Storage of CO2 constitutes the last part of the CCS chain >The (draft) CO2 Storage Directive regulates the use of the subsoil for the purpose of injecting and storing CO2 >Permitting scheme similar to the regime of the Hydrocarbons Licensing Directive which governs exploration and production of oil/gas

3. Date 31.10.2008 faculty of lawgroningen centre of energy law >Oil and Gas Exploration and Production Licences are awarded on a system of competitive bidding >Subsoil Storage:  Geological storage of CO2 is based on a possible exploration permit (2 year) and a storage permit  The holder of an exploration permit is not guaranteed a storage permit. Any reason?  The award of a permit is not based on a competitive regime. Any reason for this?  Permits are awarded to entities having the necessary capacities. What are these?

4. Date 31.10.2008 faculty of lawgroningen centre of energy law Supervision and Control >MS shall inform the EU Commission of all draft storage permits. Within 6 months the Commission may issue an opinion. Authorities may deviate from Commission’s opinion. >MS ensure that operators monitor injection plant and report results annually to authorities >MS shall organise system of inspections of storage sites and records >MS ensure that (corrective) measures are taken in case of irregularities or leakages

5. Date 31.10.2008 faculty of lawgroningen centre of energy law Closure and Post Closure: >After storage site is closed and sealed and the injection facilities have been removed, the operator remains responsible for maintenance, monitoring etc. until the responsibility is transferred to the authorities. >Responsibility is transferred if evidence indicates that the stored CO2 will be completely contained for the indefinite future. >MS notify the Commission of transfer and register all closed sites.

6. Date 31.10.2008 faculty of lawgroningen centre of energy law Subsoil Storage in the EU (I): >Subsoil storage of CO2 will most likely take place in aquifers and depleted oil/gas fields >In EU a clear distinction can be made between MS with/without potential storages. The North Sea countries will have ample opportunity for subsoil storage but some may have few point emitters. >Some MS require a storage licence for subsoil storage. The licence regime may include CO2. Other MS consider gas storage as part of the production activities. The latter regime will be difficult to apply for subsoil CO2 storage.

7. Date 31.10.2008 faculty of lawgroningen centre of energy law Subsoil Storage in the EU (II): >Licensing regimes for underground storage apply in the Netherlands (Mining Act), France (Mining Act), Italy (Law 170/74 as amended by law 164/2000) and Spain (Mining Act). These licences may apply to storage of CO2 >Other regimes consider gas storage as part of the production activities. Examples are Norway (Petroleum Act), Germany (Bundesberggesetz) and Austria (Berggesetz). Sometimes one needs to distinguish been storage in depleted fields or aquifers

8. Date 31.10.2008 faculty of lawgroningen centre of energy law Subsoil Storage – The Netherlands: >The Mining Act of 2003 provides for a storage licence and storage includes all substances. >In current regime most onshore production licences (onshore) are awarded in perpetuity and as a result the award of storage licences is limited to a very small group: the holders of production licences. >The regime distinguishes between temporary storage and permanent storage. CO2 requires permanent storage. Does this require permanent storage licence?

9. Date 31.10.2008 faculty of lawgroningen centre of energy law Gas Storage versus CO2 Storage: >Storage in depleted fields will be relevant when production of petroleum ceases. Who decides about future use of a reservoir: licensee, operator or the competent authority? What is the role of an abandonment plan? Does the way in which the field will be closed dictate future use of the reservoir? >Who decides about the substance to be stored? Will there be competition between underground storage of gas and CO2? Is underground gas storage more attractive than CO2 storage?

10. Date 31.10.2008 faculty of lawgroningen centre of energy law Some Concluding Remarks: >Should the CO2 storage permitting regime be more like the competitive system of the Hydrocarbons Licensing Regime? >Would an integrated approach towards storage of CO2 and gas be preferable? >Who will in practice be interested in developing CO2 storage facilities? Is there a new role for State (oil) companies?