PENN VALLEY, PA — The successful buildout of seven hydrogen hubs across the country hinges on effective Carbon Capture and Sequestration (CCS), according to legal experts Andrew Graham and Brent Chicken of multi-state law firm Steptoe & Johnson PLLC. They warn that without proactive engagement with all parties involved in a project’s development, the much-touted potential of these hubs to reduce greenhouse gas emissions could remain unrealized.
Graham and Chicken are set to discuss the legal challenges surrounding CCS projects at the Appalachian Hydrogen & Carbon Capture Conference V, taking place on November 30 at the Hilton Garden Inn Pittsburgh/Southpointe. This event is jointly presented by the H2-CCS Network and Shale Directories.
According to Graham, a key issue for several proposed hydrogen hubs is the conflicting interests over land use. “In our part of the country, you have surface interests, coal interests, oil and gas interests, and even other mineral interests all competing to use the same land,” he said.
This competition can also affect financing options, as title insurers are often hesitant to take on the risk associated with multiple mineral owners.
Tom Gellrich, CEO and Founder of the H2-CCS Network, expressed his pleasure about having Graham and Chicken share their insights on CCS’s role in the deployment of hydrogen hubs.
Chicken highlighted the lack of regulation concerning CCS, or as he refers to it, CCUS/S (carbon capture utilization and storage/sequestration). He pointed out that only two states, North Dakota and Wyoming, currently have regulatory control over Class VI wells, used for CCUS/S.
He added that obtaining a Class VI permit from the federal Bureau of Land Management currently takes five to six years, which may slow down the progress of CCS projects. Furthermore, any project involving a federal oil and gas lease must consider whether the lease allows for carbon storage.
“If rights are severed (concerning surface rights and mineral rights), you need agreements from both the surface owner and the mineral owner,” Chicken explained.
The insights shared by Graham and Chicken underscore the complexity of implementing CCS in the development of hydrogen hubs. It’s clear that proactive engagement, clear regulations, and legal clarity will be essential to successfully reducing greenhouse gas emissions through these projects.
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