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Carbon Storage Rules in Indiana: Navigating Landowner Rights and Regulations

Carbon Storage Rules in Indiana: Navigating Landowner Rights and Regulations


As the concept of carbon storage gains traction, landowners in Indiana are seeking clarity on the rules and regulations surrounding this practice. The Indiana Farm Bureau has been actively engaged in advocating for landowner rights and ensuring fair compensation within the evolving landscape of carbon storage.

A recent compromise reached in the state legislature addressed the concerns of a Vigo County company seeking special treatment for storing carbon deep underground. Originally, landowners faced limitations, including an inability to sue or negotiate settlements.

However, thanks to the diligent efforts of the Indiana Farm Bureau, crucial changes were implemented. Landowners will now receive annual rental payments based on equitable rates calculated from Purdue University's agricultural economics crop budgets. Additionally, landowners retain the right to negotiate and pursue legal action if necessary, preserving their access to the judicial system.

Furthermore, if the company fails to secure an EPA permit by July 2028, the original language allowing the pilot project to proceed will expire.

By safeguarding property rights, the Indiana Farm Bureau aims to prevent the closure of courthouses to landowners and set a positive precedent. This victory extends beyond Vigo County, as it establishes a framework to protect the underground property rights of farmers and landowners throughout Indiana.

Statewide, legislation originating from HB 1209 in 2022 has been enacted, giving the Indiana Department of Natural Resources the responsibility of developing specific rules governing carbon storage. These regulations are expected to be established in the coming months.

In the event that a company secures the consent of 70% or more of the project's surface area landowners, the remaining 30% can still exercise their rights, including negotiating fair compensation. It is important to note that eminent domain does not apply in these situations.

The Indiana Farm Bureau, in collaboration with stakeholders, is dedicated to ensuring that landowners are well-informed about carbon storage regulations and their rights. By providing clarity and advocating for equitable compensation, they aim to empower landowners to make informed decisions in the ever-evolving field of carbon storage.

Photo Credit: GettyImages-jimfeng

 

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