Regulations typically consider the liability transfer of the site after safety of the wells and the CO2 plumeDispersing volume of CO2-rich phase contained in target formation is demonstrated. There is still a discussion about the transfer of liability, as it is suspected that operators may decide differently knowing they will not be responsible in the future. But it is also possible that without such a provision operators may not be interested in any investment concerning CO2Carbon dioxide storage(CO2) A process for retaining captured CO2, so that it does not reach the atmosphere.
In general liability can be separated into four levels:
- Operational liability deals with the remediation and monitoringMeasurement and surveillance activities necessary for ensuring safe and reliable operation of a CGS project (storage integrity), and for estimating emission reductions;
- Environmental liability is the part about negative effects of CO2Carbon dioxide release on reductionThe gain of one or more electrons by an atom, molecule, or ion agreements and global climate;
- In-situ liability is about the effects on natural site-environment, drinking water, humans and endangerment of hydrocarbon reservoirs in the vicinity;
- Trans-border liability concerns the effects on neighbouring countries.
If the safety of the site is provided thoroughly no issues of liability should arise. Nevertheless liability is a vital part of all regulations as to maintain mutual understanding of all involved parties.
The EU CCS DirectiveDirective 2009/31/EC of the European Parliament and of the Council of 23 April 2009 on the geological storage of carbon dioxide requires further monitoringMeasurement and surveillance activities necessary for ensuring safe and reliable operation of a CGS project (storage integrity), and for estimating emission reductions after the transfer of site-responsibility, but other regulations do not. Generally the demonstration of safety is required in every regulation before any transfer of liability is possible, so the extra monitoringMeasurement and surveillance activities necessary for ensuring safe and reliable operation of a CGS project (storage integrity), and for estimating emission reductions required by the EU CCS DirectiveDirective 2009/31/EC of the European Parliament and of the Council of 23 April 2009 on the geological storage of carbon dioxide can be seen as some backup measure.
Some regulations do not specify the financial contributions of the operator, for the understandable reason as that the true costs are not yet clear. But this course may also deter possible operators as they have no estimations on what costs to expect.
After the transfer of liability monitoringMeasurement and surveillance activities necessary for ensuring safe and reliable operation of a CGS project (storage integrity), and for estimating emission reductions of the site is recommendable. The IEAInternational Energy Agency model regulatory framework contains a clause that "the operator should provide suggestions for monitoringMeasurement and surveillance activities necessary for ensuring safe and reliable operation of a CGS project (storage integrity), and for estimating emission reductions after the transfer". It also mentions a financial mechanism for operators to contribute to a collective fund for expected costs after the transfer.
European regulations
The EU CCS DirectiveDirective 2009/31/EC of the European Parliament and of the Council of 23 April 2009 on the geological storage of carbon dioxide 2009/31/ECEuropean Commission says that a certificate for closure will be released after the cessation of injectionThe process of using pressure to force fluids down wells and the demonstration that all relevant conditions of the permit have been fulfilled by the operator. Also an updated post-injectionThe process of using pressure to force fluids down wells plan is required, which should be approved by the authorities. If 20 years after site-abandonment(wells) Actions taken to ensure permanent isolation of the fluids and pressures of exposed permeable zones within a well from the surface and from lower pressured zones the wellManmade hole drilled into the earth to produce liquids or gases, or to allow the injection of fluids plugging has proven safe and financial obligations have been met, the transfer of responsibilityTransfer of all rights and obligations associated with a storage site to a designated authority; will normally be granted when the obligations in the site closure permit has been met with an adequate level of confidence to the authorities is possible. The kind of responsibility is not specified. So far the operator is obligated to cover any costs related to ensuring the safe containmentRestriction of the movement of a fluid to a designated volume (e.g. reservoir) and they should cover at least the costs of further monitoringMeasurement and surveillance activities necessary for ensuring safe and reliable operation of a CGS project (storage integrity), and for estimating emission reductions for 30 years. After the change of responsibilities the authority will continue monitoringMeasurement and surveillance activities necessary for ensuring safe and reliable operation of a CGS project (storage integrity), and for estimating emission reductions but on a reduced level to ensure no leakage(in CO2 storage) The escape of injected fluid from the storage formation to the atmosphere or water column is occurring and to detect any significant irregularities.
The Norwegian petroleum activities act states that authority will make a decision on long-term liability when "Sleipner" is decommissioning.
USA
In the EPA UIC regulations no transfer of liability is mentioned. After the demonstration of the safety of the CO2 plumeDispersing volume of CO2-rich phase contained in target formation and the wellManmade hole drilled into the earth to produce liquids or gases, or to allow the injection of fluids plugs a site closure certificate may be granted. As there are strict rules on the demonstration of the plume safety, no additional or further monitoringMeasurement and surveillance activities necessary for ensuring safe and reliable operation of a CGS project (storage integrity), and for estimating emission reductions is required.
IOGCC guidance regulationsstate that ten years after plugging the wells the responsibility of the site shall be transferred to a designated federal agency and the operator shall be released from his liability. The federal agency will perform monitoringMeasurement and surveillance activities necessary for ensuring safe and reliable operation of a CGS project (storage integrity), and for estimating emission reductions by using a shared fund paid into by the operators. There are no requirements on the safety of the CO2plume, but reporting of monitoringMeasurement and surveillance activities necessary for ensuring safe and reliable operation of a CGS project (storage integrity), and for estimating emission reductions, wellManmade hole drilled into the earth to produce liquids or gases, or to allow the injection of fluids plugging and removal of installations is obligatory.
The WRI guidance regulations require that when the CO2 plumeDispersing volume of CO2-rich phase contained in target formation and wellManmade hole drilled into the earth to produce liquids or gases, or to allow the injection of fluids plugging are proven safe the operator shall no longer be responsible for the site and the future costs. Risk assessmentA process intended to calculate or estimate the risk to a given target, part of a risk management system should be updated and periodic monitoringMeasurement and surveillance activities necessary for ensuring safe and reliable operation of a CGS project (storage integrity), and for estimating emission reductions maintained, but it is not yet decided who will be responsible and how to finance further monitoringMeasurement and surveillance activities necessary for ensuring safe and reliable operation of a CGS project (storage integrity), and for estimating emission reductions.
Australia
OPA regulations require an application for closure, including the demonstration of safety and a further plan on long-term monitoringMeasurement and surveillance activities necessary for ensuring safe and reliable operation of a CGS project (storage integrity), and for estimating emission reductions after closure was granted. If closure is granted then the liability is transferred to commonwealth.
The "Victoria Greenhouse GasGas in the atmosphere that absorbs and emits infrared radiation emitted by the Earth’s surface, the atmosphere, and clouds; thus, trapping heat within the surface-troposphere system. e.g. water vapour (H2O), carbon dioxide (CO2), nitrous oxide (N2O), methane (CH4), ozone (O3), sulfur hexafluoride (SF6), hydrofluorocarbons (HFCs), and perfluorocarbons (PFCs) Geological Sequestration Act 2008" requires demonstration of safety and a riskConcept that denotes the product of the probability of a hazard and the subsequent consequence of the associated event management plan but does not specify general liability. The "New South Wales Greenhouse GasGas in the atmosphere that absorbs and emits infrared radiation emitted by the Earth’s surface, the atmosphere, and clouds; thus, trapping heat within the surface-troposphere system. e.g. water vapour (H2O), carbon dioxide (CO2), nitrous oxide (N2O), methane (CH4), ozone (O3), sulfur hexafluoride (SF6), hydrofluorocarbons (HFCs), and perfluorocarbons (PFCs) Storage(CO2) A process for retaining captured CO2, so that it does not reach the atmosphere Bill" describes how to apply for site-closure and states that after closure certificate is granted the operator is released from liability.