I . |
THE SECTION 45Q FEDERAL INCOME TAX CREDIT ............................... 45 |
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A . Eligibility for Section 45Q Credits ................................................... 46 | |||
B . Recapture of Section 45Q Credits ..................................................... 47 | |||
II . |
CCUS METHODS , APPLICATIONS , AND SELECT INFRASTRUCTURE ....... 48 |
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A . |
Select Capture Methods used for CCUS ........................................ 48 |
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B . |
Primary Disposal and Sequestration Processes and Select CO 2 |
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Infrastructure .................................................................................. 51 | |||
1 . |
Application of CO 2 for EOR Operations ................................. 51 |
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2 . |
EOR as a Climate Change Mitigation Strategy for the |
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Fossil Fuels Industry ................................................................ 54 | |||
3 . |
Application of CO 2 for Sequestration Projects ........................ 56 |
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4 . |
Review of Select CO 2 Infrastructure ........................................ 57 |
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III . |
REAL PROPERTY RIGHTS AND RELATED LEGAL CONSIDERATIONS |
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FOR EOR AND SEQUESTRATION OPERATIONS . ...................................... 58 | |||
A . |
Ownership of Subsurface Geological Pore Space in the United |
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States .............................................................................................. 58 | |||
B . Legal Distinctions between EOR and Sequestration Projects ........ 61 | |||
IV . |
CERTAIN COMMERCIAL AND LEGAL CONSIDERATIONS |
CONDUCT THESE OPERATIONS .............................................................. 67 | ||
A . |
Participants ; Economic Drivers and Objectives for CCUS |
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Projects .......................................................................................... 67 | ||
B . |
Structure of Commercial Contractual Arrangements for CCUS |
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Projects .......................................................................................... 68 | ||
C . |
CCUS Project Specific Considerations .......................................... 70 |
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1 . |
Industry and Private-Party Considerations .............................. 71 |
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2 . |
General Compliance and Recapture Risk under |
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Section 45Q ............................................................................. 71 | ||
3 . |
Minimum Volume Commitments ............................................ 72 |
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4 . |
Access and Information Rights ................................................ 74 |