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House Judiciary Considers Senate Bills Aimed at Carbon Sequestration

Staff Reports by Staff Reports
Monday, January 16, 2023 4:57 pm

CHARLESTON, WV (LOOTPRESS) The WV House Judiciary Committee considered two bills during its Monday afternoon session. The first, Senate Bill 161, authorized the Division of Natural Resources to sell or otherwise dispose of public lands deemed no longer needed or obsolete. The bill removed provisions contained in existing law that referenced the Public Land Corporation.

Arlee Hubbard, the Chair of the Public Land Corporation, testified as to the history of the Public Land Corporation and the DNR. Hubbard stated that the Public Land Corporation was separated from the Division of Natural Resources some years ago, and the Public Land Corporation has yet to meet since 2020. The DNR retained its land holdings after the separation, and the DNR, according to Hubbard, is not subject to the Public Land Corporation.

The Secretary of Commerce, James Bailey, testified concerning the bill. Secretary Bailey stated that he did not foresee the conveyance of a large amount of property. He said that the bill’s purpose was to clarify that land conveyances by the DNR were no longer subject to the Public Land Corporation process. Bailey described instances of granting adjoining landowners access through easements or giving properties to Public Service Districts for public works projects as the intent of the bill.

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The second bill, Senate Bill 162, authorized the DNR to lease pore spaces underlying State Forests for Carbon Sequestration. Pore space is a cavity or void, whether natural or manmade, that can be utilized for storage. The bill creates a bid process for leases and notice requirements. The bill included an exception to the competitive bidding process for instances in which the Secretary of Commerce wishes to engage in a lease as part of an economic development project. The leases would be subject to existing laws passed during the 2022 regular session governing underground carbon sequestration.

Secretary Bailey testified that the legislation is critical to the proposed Hydrogen Hub coming into the state. He stated that the structure is the same as the DNR’s existing authority over mineral rights on their property. The DNR presently can extract minerals on DNR-owned property, but current law needs to be clarified concerning the agency’s ability to sequester liquified carbon in pore spaces. The proceeds received by DNR from the leases would be governed by existing law to further the purposes of the DNR.

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The Committee considered an amendment that would allow the agency to use a Class I legal advertisement or publish the information on the agency’s website or social media. Ultimately, the amendment was rejected on a voice vote.

Vice Chairman of Judiciary Tom Fast, R-Fayette, offered an amendment that would require a market value or greater royalty on a lease under the competitive bidding portion of the bill. Delegate Evan Hansen, D-Monongalia, argued the bill already ensures fair market value by the competitive bid process. The Committee rejected the Fast amendment on a voice vote.

The Committee reported both bills to the full House by unanimous vote, where they will now move to the first reading in the House.

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