SB 438: Carbon sequestration: Carbon Capture, Removal, Utilization, and Storage Program: incidental and unintentional residual oil production.

Existing law prohibits a well operator from injecting a concentrated carbon dioxide fluid produced by a carbon dioxide capture, removal, or sequestration project into a Class II well for purposes of enhanced oil recovery, including the facilitation of enhanced oil recovery from another well.

This bill would exclude from the definition of enhanced oil recovery for purposes of the above prohibition the incidental and unintentional residual oil produced at the surface from a Class VI well, as defined, resulting from the injection of a concentrated carbon dioxide fluid into a the Class VI well that has been deemed emptied of oil before injection during the execution of a carbon dioxide capture, removal, or sequestration project. The bill would prohibit the carbon dioxide capture, removal, or sequestration project from selling, bartering, exchanging, or trading any incidental and unintentional residual oil produced at the surface and would require any oil produced from a Class VI well to be reported to the State Air Resources Board and the United States Environmental Protection Agency, Region 9, within 60 days of its occurrence. production. Because a violation of this reporting requirement would be a crime, this bill would impose a state-mandated local program.

The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that no reimbursement is required by this act for a specified reason.