Another Michigan Resource: Underground Storage Capacity
For a long time, the energy industry has recognized the value of Michigan’s underground storage capacity, which constitutes ten percent of the nation’s natural gas storage capacity. Now, with rumblings about cap and trade and the need for carbon sequestering, there is the question of whether there will be a “land rush” for this resource. This also raises the question of whether Michigan needs new regulations (and perhaps new legislation) to develop, regulate, protect, and exploit this resource. Although the U.S. EPA is working on rules for underground carbon dioxide storage under the Safe Drinking Water Act, it is unlikely to address the real need for regulations—defining the long-term environmental liability for sequestered carbon dioxide. Commercial-scale sequestration creates numerous environmental liabilities for entities that will own/operate sequestration facilities or transport carbon dioxide to such facilities, including accidental carbon dioxide releases. Other states are acting on legislation by transferring the liability for post-injection carbon dioxide to the state. Will Michigan act soon enough and be prepared to catch this wave?
Tags: alternative energy, carbon sequestering, injecting carbon dioxide, Michigan energy, Safe Water Drinking Act, underground storage
Energy | Bruce Goodman | 07 August 2009 |
