COURT DISMISSES CHALLENGES TO NORTH DAKOTA’S PORE SPACE STATUTES

28 Aug COURT DISMISSES CHALLENGES TO NORTH DAKOTA’S PORE SPACE STATUTES

August 28, 2024

_{CONTACT: Suzie Weigel, 701.328.2210}

Bismarck, ND – Attorney General Drew Wrigley has announced that his office won dismissal of legal challenges brought against the state by multiple organizations opposed to laws permitting the State to regulate the development of pore space reservoirs for CO2 storage.

North Dakota’s geology contains an abundance of pore space reservoirs—porous geologic formations deep underground—that experts say are capable of permanently and safely storing significant quantities of CO2. Landowners own the pore space beneath their land, and the pore space storage of CO2 offers the potential for significant additional income to many landowners across the State. State law enables the Industrial Commission to amalgamate (or pool) the ownership interests in pore space reservoirs when a supermajority of the impacted owners want their interests in the reservoir developed, so long as all owners, including any dissenting minority of owners, receive their equitable share of compensation. The vast majority of landowners have voluntarily agreed to have their pore space reservoir interests used for CO2 storage in exchange for appropriate compensation.

Last summer, two organizations brought suit alleging State laws pertaining to pore space amalgamation are unconstitutional. Yesterday, the District Court in Bottineau County held that the organizations’ claims were not viable as pleaded, agreeing with the State that the blanket legal challenges were in large part barred by the statute of limitations, and that the challenges to the face of some of the statutes were improper.

“Yesterday’s decision is a positive victory for the vast majority of landowners in North Dakota who recognize that our state is on the cutting edge of developing pore space reservoirs for CO2 storage, producing significant additional income for property owners,” said Attorney General Wrigley. “What seems to get lost in some conversations around this topic is that State law only permits pore space reservoirs to be pooled when a supermajority of the owners want them to be developed. When a pooling order is entered, every impacted landowner receives their equitable share of compensation. Yesterday’s decision may not end all litigation over this issue, but it was a good start, and our office will address any further legal challenges that may arise.”

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