AS Title 41, Chapter 6: Geothermal Resources and Carbon Storage

Chapter 06. Geothermal Resources and Carbon Storage. Article 1. Geothermal Resources. Sec. 41.06.005. Jurisdiction over geothermal resources. (a) The commission has jurisdiction under AS 41.06.005 — 41.06.060 over geothermal wells to prevent waste, to protect correlative rights, and to ensure public safety. (b) The Department of Natural Resources has jurisdiction under AS 41.06.005 — 41.06.060 over management of geothermal leases and units in the public interest and to effect development. Sec. 41.06.010. Waste prohibited; investigation. The waste of geothermal resources in the state is prohibited. The commission may investigate to determine whether waste exists or is imminent, or whether other facts exist that justify or require action by the commission to prohibit waste. Sec. 41.06.020. Authority of commission; application. (a) The commission has jurisdiction over all persons and property, public and private, necessary to carry out the purposes and intent of AS 41.06.005 — 41.06.060. (b) The authority of the commission applies to all land in the state lawfully subject to the police power of the state, including private land, municipal land, state land, land of the United States, and land subject to the jurisdiction of the United States, and to all land included in a voluntary cooperative or unit plan of development or operation entered into in accordance with AS 38.05.181 . When land that is subject to the commission's authority is committed to a unit agreement involving land subject to federal jurisdiction, the operation of AS 41.06.005 — 41.06.060 or a part of AS 41.06.005 — 41.06.060 may be suspended if (1) the unit operations are regulated by the United States; and (2) the conservation of geothermal resources is accomplished under the unit agreement. (c) The provisions of AS 41.06.005 — 41.06.060 apply (1) to wells drilled in search of, in support of, or for the recovery or production of geothermal resources; (2) when a person engaged in drilling activity not otherwise subject to the provisions of AS 41.06.005 — 41.06.060 encounters geothermal resources, fluid, or water of sufficient heat or pressure to constitute a threat to human life or health unless the drilling operation is subject to oil and gas drilling regulation under AS 31.05 ; (3) in areas and under conditions in which the commission determines that drilling may encounter geothermal resources, fluid, or water of sufficient heat or pressure to constitute a threat to human life or health. (d) To the extent the provisions of AS 31.05 do not conflict with the provisions of AS 41.06.005 — 41.06.060, the provisions of AS 31.05 are applicable to wells drilled in search of, in support of, or for the recovery or production of geothermal resources. (e) Nothing in AS 41.06.005 — 41.06.060 limits the authority of the department (1) over geothermal resources under AS 38.05.181 ; or (2) to approve and manage geothermal units or operations that include state land. Sec. 41.06.030. Unitization. (a) The commissioner shall require the filing and approval of a plan of development and operation on a geothermal system that includes state land. (b) Lessees of all or part of a geothermal system that includes state land may enter into a unit agreement for cooperative development, with the approval of the commissioner. The commissioner may suspend or modify the approved development plan in accordance with the unit agreement. (c) If the owners of at least two-thirds of the leasehold interests in a geothermal system ratify a unit agreement approved under (b) of this section by the commissioner, the commissioner may enforce the agreement as to lessees not a party to the agreement by allocating production under the principle of correlative rights and by apportioning costs and revenues. (d) [Repealed, § 18 ch 38 SLA 2010.] (e) The commissioner may adopt regulations under AS 44.62 (Administrative Procedure Act) to carry out the purposes and intent of AS 41.06.005 — 41.06.060 for duties assigned to the department, including the promotion of maximum economic recovery. Sec. 41.06.035. Reservoir management; commission's regulations. (a) The commission may issue well-spacing and pooling orders, place limits on production, and impose reinjection requirements for the purpose of preventing waste and to protect correlative rights in a geothermal system. (b) The commission may adopt regulations under AS 44.62 (Administrative Procedure Act) and issue orders appropriate to carry out the purposes and intent of AS 41.06.005 — 41.06.060 for duties assigned to the commission, including orders regarding the establishment of drilling units for pools as set out in AS 31.05.100 and orders regarding unitized operation and integration of interests as set out in AS 31.05.110 . Sec. 41.06.040. Regulations; requirements; inspections. (a) The commission shall adopt regulations under AS 44.62 (Administrative Procedure Act), issue orders, and take other appropriate action to carry out the purposes and intent of AS 41.06.005 — 41.06.060, including adopting regulations to prevent (1) geothermal resources, water or other fluids, and gases from escaping into strata other than that in which they are found, unless in accordance with an approved reinjection program; (2) contamination of surface and groundwater; (3) premature degradation of a geothermal system by water encroachment or otherwise; (4) blowouts, cavings, and seepage; and (5) unreasonable disturbance or injury to neighboring properties, prior water rights, prior oil or gas rights, human life, health, and the natural environment. (b) The commission shall require the operator of a geothermal well to file an adequate individual or blanket surety bond to ensure compliance with regulations adopted under this section. (c) The commission shall require a geothermal operator to notify the commission if the operator discovers significant quantities of hydrocarbon substances, helium, or fissionable materials. (d) The commission and its staff may enter upon any property, public or private, to inspect a geothermal operation for compliance with regulations adopted under this section. (e) [Repealed, § 18 ch 38 SLA 2010.] Sec. 41.06.050. Permits to drill. (a) A person shall apply for and receive a permit from the commission before drilling a well in (1) search of geothermal resources; or (2) support of the recovery or production of geothermal resources. (b) The application required in (a) of this section must contain sufficient information to enable the commission to determine if the operation of the well will interfere with or impair a prior water, oil, or gas right. (c) A person must submit a separate permit application for each well. The permit application must be in the form or format required by the commission and include all information required by the commission. (d) As soon as practicable after receiving an application under (a) of this section, the commission shall approve or deny the application for a permit to drill. (e) In making the determination under (d) of this section, the commission shall consider whether the (1) proposed well will significantly interfere with or substantially impair a prior water, oil, or gas right; (2) proposed well is contrary to a provision of AS 41.06.005 — 41.06.060, a regulation adopted by the commission, another law, or an order, stipulation, or term of a permit issued by the commission; and (3) applicant is in violation of a provision of AS 41.06.005 — 41.06.060, a regulation adopted by the commission, another law, or an order, stipulation, or term of a permit issued by the commission; the commission shall consider the magnitude of the violation. Sec. 41.06.055. Regulatory cost charge for geothermal wells. Sec. 41.06.055. Regulatory cost charge for geothermal wells. (a) Each person that, on the first day of a state fiscal year, operates a well within the jurisdiction of the commission for which a permit to drill has been issued under AS 41.06.050 shall pay to the commission an annual regulatory charge for each well that has not, before the first day of that state fiscal year, been (1) plugged and abandoned; and (2) reported as abandoned in accordance with regulations of the commission. (b) The commission shall annually determine the regulatory cost charge to be paid under this section. The regulatory cost charge to be paid by a person for a state fiscal year must be based on the total volume during the most recent calendar year for the wells described in (a) of this section of which the person was the operator on the first day of the fiscal year as a percentage of the total volume during the same calendar year for all wells described in (a) of this section. In this subsection, “total volume” means the sum of the volume of all geothermal resources produced from a well and all fluids and substances injected or otherwise artificially introduced into the well. (c) The commission shall determine the regulatory cost charges levied under this section so that the total amount to be collected approximately equals the appropriations made for the operating costs of the commission that have been incurred under AS 41.06.005 - 41.06.060 for the fiscal year. (d) The commission shall collect the regulatory cost charges imposed under this section. The Department of Administration shall identify the amount of appropriations made for the operating costs of the commission under this chapter that lapse into the general fund each year. The legislature may appropriate an amount that is at least equal to the lapsed amount to the commission for its operating costs under this chapter for the next fiscal year. If the legislature makes an appropriation to the commission under this subsection that is equal to or greater than the lapsed amount, the commission shall reduce the total regulatory cost charge collected for that fiscal year by a comparable amount. (e) The commission may adopt regulations relating to the investigation of the accuracy of reported information and for collecting required payments under this section. (a) Each person that, on the first day of a state fiscal year, operates a well within the jurisdiction of the commission for which a permit to drill has been issued under AS 41.06.050 shall pay to the commission an annual regulatory charge for each well that has not, before the first day of that state fiscal year, been (1) plugged and abandoned; and (2) reported as abandoned in accordance with regulations of the commission. (b) The commission shall annually determine the regulatory cost charge to be paid under this section. The regulatory cost charge to be paid by a person for a state fiscal year must be based on the total volume during the most recent calendar year for the wells described in (a) of this section of which the person was the operator on the first day of the fiscal year as a percentage of the total volume during the same calendar year for all wells described in (a) of this section. In this subsection, “total volume” means the sum of the volume of all geothermal resources produced from a well and all fluids and substances injected or otherwise artificially introduced into the well. (c) The commission shall determine the regulatory cost charges levied under this section so that the total amount to be collected approximately equals the appropriations made for the operating costs of the commission that have been incurred under this chapter for the fiscal year. (d) The commission shall collect the regulatory cost charges imposed under this section. The Department of Administration shall identify the amount of appropriations made for the operating costs of the commission under AS 41.06.005 — 41.06.060 that lapse into the general fund each year. The legislature may appropriate an amount that is at least equal to the lapsed amount to the commission for its operating costs under AS 41.06.005 — 41.06.060 for the next fiscal year. If the legislature makes an appropriation to the commission under this subsection that is equal to or greater than the lapsed amount, the commission shall reduce the total regulatory cost charge collected for that fiscal year by a comparable amount. (e) The commission may adopt regulations relating to the investigation of the accuracy of reported information and for collecting required payments under this section. Sec. 41.06.060. Definitions. In AS 41.06.005 — 41.06.060, unless the context otherwise requires, (1) “commercial use” means the sale of heat or power to a third party; (2) “commission” means the Alaska Oil and Gas Conservation Commission created under AS 31.05.005 ; (3) “correlative rights” means the right of an owner of each property in a geothermal system to produce without waste the owner's just and equitable share of the geothermal resources in the geothermal system; a just and reasonable share is an amount, so far as can be practically determined and so far as can be practically produced without waste, that is substantially in proportion to the quantity of recoverable geothermal resources under the owner's property relative to the total recoverable geothermal resources in the geothermal system; (4) “geothermal fluid” means liquids and steam at temperatures greater than 120 degrees Celsius or any commercial use of liquids and steam naturally present in a geothermal system at temperatures less than 120 degrees Celsius; (5) “geothermal resources” (A) means the natural heat of the earth at temperatures greater than 120 degrees Celsius, or any use of that heat for commercial purposes, measured at the point at which the highest-temperature resources encountered enter or contact a well or other resource extraction device or any commercial use of the natural heat of the earth; (B) includes (i) the energy, including pressure, in whatever form present in, resulting from, created by, or that may be extracted from that natural heat; (ii) the material medium, including steam and other gases, hot water, and hot brines constituting the geothermal fluid naturally present, as well as substances artificially introduced to serve as a heat transfer medium; and (iii) all dissolved or entrained minerals and gases that may be obtained from the material medium, but excluding hydrocarbon substances and helium; (6) “geothermal system” means a stratum, pool, reservoir, or other geologic formation containing geothermal resources; (7) “operator” means a person drilling, maintaining, operating, producing, or in control of a well; (8) “owner” means the person who has the right to drill into or produce from a geothermal system and to appropriate the geothermal resources produced from a geothermal system for that person and others; (9) “waste” means, in addition to its ordinary meaning, physical waste, and includes an inefficient, excessive, or improper production, use, or dissipation of geothermal resources, including (A) drilling, transporting, or storage methods that cause or tend to cause unnecessary surface loss of geothermal resources; (B) locating, spacing, drilling, equipping, operating, producing, or venting of a well in a manner that results or tends to result in reducing the ultimate economic recovery of geothermal resources; (10) “well” means a well drilled, converted, or reactivated for the discovery, testing, production, or subsurface injection of geothermal resources. Article 2. Carbon Storage and Injection. Sec. 41.06.105. Jurisdiction over storage facilities. The commission has jurisdiction under AS 41.06.105 — 41.06.210 over storage facilities to prevent waste, protect correlative rights, and ensure public health and safety. Sec. 41.06.110. Authority of the commission. (a) The authority of the commission applies to all land (1) in the state lawfully subject to the police power of the state, including private land, municipal land, state land, federal land, and land subject to the jurisdiction of the United States; and (2) included in a voluntary cooperative or unit plan of development or operation entered into in accordance with AS 38.05.725 . (b) When land that is subject to the commission's authority is committed to a unit agreement involving land subject to federal jurisdiction, the operation of AS 41.06.105 — 41.06.210 may be suspended if (1) the unit operations are regulated by the United States; and (2) conservation of resources in the reservoir or pool is accomplished in the agreement. (c) The commission has the authority to (1) regulate activities related to a storage facility, including the construction, operation, and closure of the facility; (2) require that storage operators provide assurance, including bonds, that money is available to fulfill the storage operator's duties; (3) enter, at a reasonable time and in a reasonable manner, a storage facility to (A) inspect equipment and facilities; (B) observe, monitor, and investigate operation; and (C) inspect records required to be maintained at the facility; (4) exercise continuing jurisdiction over storage operators and storage facilities, including the authority, after notice and hearing, to amend provisions in a permit and to revoke a permit; and (5) dissolve or change the boundaries of an oil or gas field or unit established by the commission that is within or near the boundaries of a storage reservoir. (d) To the extent AS 31.05 does not conflict with AS 41.06.105 — 41.06.210, the provisions of AS 31.05 are applicable to wells drilled in search of, in support of, and for carbon storage. (e) Nothing in AS 41.06.105 — 41.06.210 limits the authority of the Department of Natural Resources under AS 38.05.700 — 38.05.795 or AS 41.06.305 . Sec. 41.06.115. Waste prohibited. Waste in a storage facility or storage reservoir in the state is prohibited. The commission may investigate to determine whether waste exists or is imminent, or whether other facts exist that justify or require action by the commission to prohibit waste. The injection of carbon dioxide and substances commonly associated with carbon dioxide injection is not considered waste. Sec. 41.06.120. Storage facility permit. (a) A storage operator is required to obtain a permit from the commission to operate a storage facility. (b) A permit may not be transferred unless the commission consents. (c) A person applying for a permit shall (1) request a preapplication meeting with the commission staff; (2) comply with application requirements; (3) pay a fee in an amount determined by the commission; and (4) pay the commission the cost the commission incurs in reviewing the person's application, publishing notices for hearings, and holding hearings on the person's permit application. (d) A permit application must include sufficient information to enable the commission to determine whether the storage facility will interfere with or impair an existing water, oil, gas, or other mineral interest. (e) The commission shall set the amount of the fee in (c)(3) of this section based on the anticipated cost to the commission associated with processing applications, including preliminary work in advance of receiving an application. The commission may enter into an agreement with a prospective applicant that requires the applicant to reimburse the commission for reasonable costs of work incurred in preparing for activities before the commission receives an application. (f) The commission shall deposit fees collected under this section in the carbon dioxide storage facility administrative fund established in AS 41.06.160 . Sec. 41.06.125. Hearing on permit application. (a) Before issuing a permit for a storage facility, the commission shall hold a public hearing. (b) The commission shall provide notice of a public hearing under this section. The commission shall provide notice in the same manner as a notice under AS 31.05.050 (b) and shall provide notice to (1) each mineral lessee, mineral owner, and mineral right owner of record within the storage reservoir and within one-half mile of the boundaries of the storage reservoir; (2) each surface owner of land overlying the storage reservoir and within one-half mile of the boundaries of the storage reservoir; and (3) any additional persons that the commission considers necessary. (c) A hearing notice required by this section must comply with deadlines set by the commission. Sec. 41.06.130. Permit requirements. (a) The commission shall consult with the Department of Environmental Conservation and the Department of Natural Resources before issuing a permit under AS 41.06.120 . (b) Before the commission may approve a permit application submitted under AS 41.06.120 , the commission must find (1) that the storage operator has complied with all requirements set by the commission; (2) that the proposed storage facility is suitable and feasible for carbon storage; (3) that the carbon dioxide to be stored is of a quality that allows it to be safely and efficiently stored in the storage reservoir; (4) that the storage operator has made a good faith effort to get the consent of all persons with an ownership interest in the proposed storage reservoir and surface owners of land overlying the proposed storage reservoir; (5) if the proposed storage facility contains commercially valuable minerals, that the interests of the mineral owners or mineral lessees will not be adversely affected or have been addressed in an arrangement entered into by the mineral owners or mineral lessees and the storage operator; (6) that the proposed storage facility will not adversely affect surface water or formations containing fresh water; (7) that carbon dioxide is not reasonably anticipated to escape from the storage reservoir; (8) that substances that compromise the objectives of AS 41.06.105 — 41.06.210 or the integrity of a storage reservoir will not enter a storage reservoir; (9) that the proposed storage facility will not endanger human health or unduly endanger the environment; (10) that the proposed storage facility is in the public interest; (11) that the horizontal and vertical boundaries of the proposed storage reservoir are defined and the boundaries include buffer areas to ensure that the storage facility is operated safely and as contemplated; (12) that the storage operator will establish monitoring facilities and protocols to assess the location and migration of carbon dioxide injected for carbon storage and to ensure compliance with all permit, statutory, and administrative requirements; (13) that all nonconsenting landowners or holders of mineral rights are, or will be, equitably compensated; and (14) that the storage operator is not in violation of a provision of AS 41.06.105 — 41.06.210 or regulations adopted by the commission. Sec. 41.06.135. Permit provisions. The commission may include in a permit or order any parameters necessary to carry out the objectives of AS 41.06.105 — 41.06.210, prevent waste, protect correlative rights, and ensure the health and safety of persons affected by the permit. Sec. 41.06.140. Amalgamating property interests. If a storage operator does not obtain the consent of all persons with an ownership interest in the storage reservoir, the commission may order that the pore space rights of nonconsenting owners be included in a storage facility and subject to carbon storage. Before the commission may issue an order forming an amalgamation under this section, the commission shall provide public notice and hold a hearing. Sec. 41.06.145. Certificate. When the commission issues a permit under AS 41.06.120 , the commission shall also issue a certificate that states that the permit has been issued, describes the area covered, and contains other information the commission considers appropriate. The storage operator may file a copy of the certificate with the office of the recorder in the district in which the storage facility is located. Sec. 41.06.150. Environmental protection; storage reservoir integrity. (a) The commission shall take action to ensure that (1) substances that compromise the integrity of a storage reservoir do not enter a storage reservoir; and (2) carbon dioxide does not escape from a storage facility. (b) For the purposes of this section, and in the application of other laws, carbon dioxide that is stored and remains in carbon storage under a permit is not considered a pollutant and does not constitute a nuisance. (c) The commission's authority under (a) of this section does not limit the jurisdiction of the Department of Environmental Conservation. Sec. 41.06.155. Preservation of rights. Nothing in AS 41.06.105 — 41.06.210 (1) prejudices the rights of a person with a property interest in a storage facility to exercise rights that have not been committed to the storage facility; or (2) prevents a mineral owner or mineral lessee from drilling through or near a storage reservoir to explore for and develop minerals if the drilling, production, and related activities comply with requirements set by the commission to preserve the integrity of the storage facility and protect the objectives of AS 41.06.105 — 41.06.210. Sec. 41.06.160. Carbon Dioxide storage facility administrative fund. (a) A storage operator shall pay to the commission a fee on each metric ton of carbon dioxide injected for carbon storage. The commission shall set the amount of the fee based on the anticipated expenses the commission will incur in regulating storage facilities during each phase, including the construction, operational, and pre-completion phases. The commission shall deposit a fee collected under this subsection in the carbon dioxide storage facility administrative fund established in (b) of this section. (b) The carbon dioxide storage facility administrative fund is established in the general fund. The fund consists of (1) fees received under (a) of this section; (2) fees received under AS 41.06.120 and 41.06.195; and (3) interest earned on money in the fund. (c) Money in the carbon dioxide storage facility administrative fund shall be separately accounted for under AS 37.05.142 . The legislature may appropriate the money in the fund to the commission to carry out the purposes of AS 41.06.105 — 41.06.210. Sec. 41.06.165. Title to carbon dioxide. The storage operator has title to the carbon dioxide injected into and stored in a storage reservoir and holds title until the commission issues a certificate of completion under AS 41.06.170 . While the storage operator holds title, the operator is liable for any damage the carbon dioxide may cause, including damage caused by carbon dioxide that escapes from the storage facility. When a certificate of completion is issued under AS 41.06.170 , title to carbon dioxide injected into and stored in a storage reservoir is transferred to the owner of the pore space, unless the storage operator and the owner of the pore space have a contrary agreement. Sec. 41.06.170. Certificate of completion. (a) Once a storage operator discontinues carbon dioxide injections into a storage reservoir, and upon application by the storage operator, the commission may issue a certificate of completion (1) only after public notice and hearing; the commission shall establish notice requirements for a hearing under this paragraph; (2) only after the commission consults with the Department of Environmental Conservation, the Department of Natural Resources, and all persons with an ownership interest in the storage reservoir; and (3) after a period of at least 50 years, or another period approved by the commission for the storage reservoir based on requirements established in regulation, has elapsed since the last carbon dioxide injection into the storage reservoir. (b) The commission may issue a certificate of completion only if the storage operator (1) has fully complied with all laws governing the storage facility; (2) shows that the operator has addressed all pending claims regarding the operation of the storage facility; (3) shows that the underground place or pore space in which the injected carbon dioxide is stored is not expected to pose a threat to human health, human safety, the environment, or underground sources of drinking water; (4) shows that the stored or injected carbon dioxide is unlikely to cross an underground or pore space boundary and is not expected to endanger an underground source of drinking water or otherwise endanger human health, human safety, or the environment; (5) shows that all wells, equipment, and facilities allowed to remain in place following post-injection site care and site closure are in good condition and retain mechanical integrity; (6) shows that the operator has plugged wells, removed equipment and facilities, and completed reclamation work as required by the commission and the Department of Natural Resources; (7) has paid all fees and surcharges owed for the storage facility; and (8) meets any other regulatory requirements established by the state. (c) Once a certificate of completion is issued, the department assumes primary responsibility for long-term monitoring and maintenance of the storage facility, as provided in AS 41.06.305 . The storage operator and all persons who generated injected carbon dioxide are released from liability to the state associated with the storage facility in an amount equal to the amount attributed to the storage facility in the carbon storage closure trust fund established in AS 37.14.850 . The state, the department, or the commission is not liable for damages arising out of, or in any manner connected with, long-term monitoring and maintenance of a storage facility if the amount for the storage facility separately accounted for in the carbon storage closure trust fund established in AS 37.14.850 is unavailable or insufficient. A bond posted by the storage operator under AS 41.06.110 (c)(2) must be released. In this subsection, “long-term monitoring and maintenance” has the meaning given in AS 41.06.305 (e). Sec. 41.06.175. Carbon storage facility injection surcharge. (a) A storage operator injecting carbon dioxide at a storage facility shall pay to the commission a surcharge each year for the first 12 years that carbon dioxide is injected at the storage facility. The commission shall deposit the surcharge into the general fund. The legislature may appropriate a surcharge collected under this subsection into the carbon storage closure trust fund established in AS 37.14.850 . (b) The annual surcharge in this section is determined by the following formula: S = (7,500,000 x (I/261.78)) / 12, where (1) S is the dollar amount of the annual surcharge for a storage facility; (2) I is equal to the Consumer Price Index for urban consumers for urban Alaska, as determined by the United States Department of Labor, Bureau of Labor Statistics, without seasonal adjustment, for December of the calendar year immediately preceding the year of issuance of the storage facility permit. Sec. 41.06.180. Penalties. (a) In addition to the penalties in (b) — (d) of this section, a person who violates a provision of AS 41.06.105 — 41.06.210, a regulation adopted under AS 41.06.105 — 41.06.210, or an order or term of a permit issued by the commission under AS 41.06.105 — 41.06.210 is liable for a civil penalty of not more than $100,000 for the initial violation and not more than $10,000 for each day thereafter on which the violation continues. (b) A person who knowingly commits an act specified in AS 11.46.630 (a) for the purpose of evading a provision of AS 41.06.105 — 41.06.210, a regulation adopted under AS 41.06.105 — 41.06.210, or an order, stipulation, or term of a permit issued by the commission is guilty of a class A misdemeanor. (c) A person who knowingly violates a provision of AS 41.06.105 — 41.06.210, a regulation adopted under AS 41.06.105 — 41.06.210, or an order, stipulation, or term of a permit issued by the commission is guilty of a class A misdemeanor punishable by a fine of not more than $10,000 a day for each day of violation. (d) A person who knowingly aids or abets another person in the violation of a provision of AS 41.06.105 — 41.06.210, a regulation adopted under AS 41.06.105 — 41.06.210, or an order, stipulation, or term of a permit issued by the commission is subject to the same penalty as that prescribed in this section for the violation by the other person. (e) The commission may assess the civil penalties provided in this section, and, if not paid, the penalties are recoverable by suit filed by the attorney general in the name and on behalf of the commission in the superior court. The payment of a penalty does not relieve a person on whom the penalty is imposed from liability to any other person for damages arising out of the violation. (f) In determining the amount of a penalty assessed under (a) of this section, the commission shall consider (1) the extent to which the person committing the violation was acting in good faith in attempting to comply; (2) the extent to which the person committing the violation acted in a wilful or knowing manner; (3) the extent and seriousness of the violation and the actual or potential threat to public health or the environment; (4) the economic or environmental harm or injury to the public caused by the violation; (5) the economic value or other benefits derived by the person committing the violation from the commission of the violation; (6) any history of previous violations by the person committing the violation; (7) the need to deter similar behavior by the person committing the violation and others similarly situated at the time of the violation or in the future; (8) the effort made by the person committing the violation to correct the violation and prevent future violations; and (9) other matters justice requires. Sec. 41.06.185. Enhanced oil or gas recovery. (a) Except as provided in (b) of this section, the provisions of AS 41.06.105 — 41.06.210 do not apply to applications filed with the commission proposing to use carbon dioxide for enhanced oil or gas recovery. (b) The commission may adopt regulations that allow enhanced oil or gas recovery and related well activities to be converted to a storage facility. The regulations must require that, in considering whether to approve a conversion, and upon conversion, the provisions of AS 41.06.105 — 41.06.210 apply. The regulations may impose additional requirements to AS 41.06.105 — 41.06.210, or describe specific situations in which the requirements of AS 41.06.105 — 41.06.210 are waived, to ensure that the objectives of AS 41.06.105 — 41.06.210 are met. Sec. 41.06.190. Cooperative agreements and contracts. (a) The commission may enter into agreements with other governments, government entities, and state agencies for the purpose of carrying out the objectives of AS 41.06.105 — 41.06.210. (b) The commission may enter into contracts with private persons to assist in carrying out the objectives of AS 41.06.105 — 41.06.210. If an emergency exists, the commission may enter into contracts without public notice and without competitive bidding. Sec. 41.06.195. Carbon storage capacity of a storage reservoir. (a) The commission may adopt a written policy establishing procedures and criteria that the commission will use to determine the carbon storage capacity of a storage reservoir, including for the purpose of enhanced oil or gas recovery. (b) The purpose of determining the carbon storage capacity of a storage reservoir is to facilitate calculating the amount of stored carbon dioxide for matters including carbon credits, allowances, trading, emissions allocations, and offsets. The commission may charge a reasonable fee to a person requesting a capacity determination. The commission shall set the fee by regulation. The commission shall deposit fees received under this subsection in the carbon dioxide storage facility administrative fund established in AS 41.06.160 . (c) In this section, “carbon storage capacity of a storage reservoir” means the maximum injected volume in a storage reservoir at which the pressure in the reservoir does not pose a risk to the integrity of the reservoir or its ability to maintain carbon storage. Sec. 41.06.210. Definitions. In AS 41.06.105 — 41.06.210, unless the context requires otherwise, (1) “carbon dioxide” means carbon dioxide of a quality that will not compromise (A) the safety of carbon storage; and (B) the properties of a storage reservoir that allow the reservoir to effectively enclose and contain a stored gas or stored supercritical fluid; (2) “carbon storage” means the underground storage of carbon dioxide in a storage reservoir; (3) “commission” means the Alaska Oil and Gas Conservation Commission created under AS 31.05.005 ; (4) “enhanced oil or gas recovery” means the increased recovery of hydrocarbons, including oil and gas, from a common source of supply achieved by artificial means or by the application of energy extrinsic to the common source of supply, including pressuring, cycling, pressure maintenance or injection of a substance or form of energy, including injection of water, gas, carbon dioxide, or both gas and carbon dioxide, including immiscible and miscible floods, as long as the enhanced oil or gas recovery does not include injection of a substance or form of energy for the sole purpose of (A) aiding in the lifting of fluids in the well; or (B) stimulation of the reservoir at or near the well by mechanical, chemical, thermal, or explosive means; (5) “permit” means a storage facility permit issued under AS 41.06.120 ; (6) “pore space” means a cavity or void in a subsurface sedimentary stratum; (7) “reservoir” means a subsurface sedimentary stratum, formation, aquifer, cavity, or void, including pore space, oil and gas reservoirs, saline formations, and coal seams that are suitable, or capable of being made suitable, for injection and carbon storage; (8) “storage facility” means the storage reservoir, underground equipment, well, and surface facilities and equipment used in accordance with a permit; “storage facility” does not include pipelines, compressors, surface facilities, and equipment used to transport carbon dioxide to the storage facility that are unrelated to well safety and metering; (9) “storage operator” means a person holding or applying for a permit; (10) “storage reservoir” means a reservoir proposed, authorized, or used for carbon storage; (11) “supercritical fluid” means a substance at or above its critical temperature and critical pressure that is neither a liquid nor a gas but that has properties of both; (12) “waste” means, in addition to its ordinary meaning, physical waste, and includes inefficient, excessive, or improper operation of a storage facility or well; (13) “well” means a well that is drilled, converted, or reactivated for discovery, testing, or subsurface injection into a reservoir. Article 3. Long-Term Monitoring and Maintenance of Carbon Storage Facilities. Sec. 41.06.305. Long-term monitoring and maintenance. (a) The department shall conduct long-term monitoring and maintenance of a storage facility that has been issued a certificate of completion under AS 41.06.170 . (b) Under this section, the authority of the department applies to all land in the state lawfully subject to the police power of the state, including private land, municipal land, state land, land of the United States, and land subject to the jurisdiction of the United States. The department may enter, at a reasonable time and in a reasonable manner, the site of a storage facility that has been issued a certificate of completion under AS 41.06.170 . (c) The state, the department, and the commission have no obligation to pay costs associated with long-term monitoring and maintenance of a storage facility in an amount greater than the amount attributable to that storage facility and separately accounted for under AS 37.14.850 . (d) The department may adopt regulations under AS 44.62 (Administrative Procedure Act) to carry out the purposes of this section. (e) In this section, (1) “commission” means the Alaska Oil and Gas Conservation Commission created under AS 31.05.005 ; (2) “long-term monitoring and maintenance” means an activity associated with monitoring and maintenance of a storage facility that has been issued a certificate of completion under AS 41.06.170 and may include (A) operational and long-term inspecting, testing, and monitoring of the storage facility site, wells, and remaining facilities; (B) remediation measures arising from the storage facility site, including remediation of property and mechanical problems associated with wells and remaining facilities; (C) repairing mechanical leaks at the storage facility site; (D) plugging and abandoning wells; (E) converting wells for use as observation wells; (F) purchasing or paying insurance costs for a storage facility, whether commercially or through government funding; (3) “storage facility” has the meaning given in AS 41.06.210 .