Wyoming Governor Supports Carbon Capture Bill, Urges Senate Committee To Address Long-Term Liability

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May 20, 2009 -- CHEYENNE, Wyo. - Questions surrounding the long-term liability of sequestered carbon dioxide remain a key challenge, Gov. Dave Freudenthal said this week in a letter to U.S. Senator Jeff Bingaman, Chairman of the Senate Energy and Natural Resources Committee.

The Governor expressed strong support for Chairman Bingaman’s bill, S.1013, “Department of Energy -Carbon Capture and Sequestration Program Amendments Act of 2009,” and encouraged the committee to continue to address the question of long-term liability of sequestered carbon.

“If we are serious about carbon dioxide (CO2) sequestration in the United States, we need to marry scientific understanding with rigorous financial analysis to establish the actual risk profile of CO2 in the ground,” the Governor wrote. “This is the pathway to a rational and efficient long-term insurance solution.”

The ability to sequester carbon dioxide CO2 is critical to the future of Wyoming’s economy and to that of the nation, since it is becoming a pre-condition to the continued use of coal, the Governor wrote.

He said Wyoming will continue to work on all the issues surrounding CO2 sequestration and said technical and research work is proceeding at a strong pace. The state has identified several promising candidate geological formations to store CO2 and have established the legal framework for pore space ownership and created a regulatory regime to permit and safely manage CO2 sequestration.

The Governor emphasized that the largest impediment to progress remains the issue of establishing long-term liability for the sequestered CO2.

The text of the Governor’s letter follows.

May 19, 2009

Senator Jeff Bingaman, Chairman
Senate Energy and Natural Resources Committee
304 Dirksen Office Building
Washington, DC 20510

Dear Senator Bingaman,

I am writing to lend my strong support to your bill, S.1013, “Department of Energy -Carbon Capture and Sequestration Program Amendments Act of 2009”. I sincerely appreciate your solid leadership in moving this important legislation forward.

As we have discussed, the ability to sequester carbon dioxide (CO2) is very important to Wyoming and the country. It is becoming a pre-condition to continued use of coal in the United States. For any number of reasons, not the least of which is national security, we should not turn our back on this vital indigenous energy resource.

In Wyoming, we will continue to work on all the issues surrounding CO2 sequestration. Our technical and research work is proceeding at a strong pace. We have identified several promising candidate geological formations to store CO2. We have also established the legal framework for pore space ownership and created a regulatory regime to permit and safely manage CO2 sequestration. However, the largest impediment to progress in Wyoming is the issue of long-term liability for the sequestered CO2. This is why your effort is so critical.

Addressing liability for ten large scale injection projects is an elegant way to move forward in both scientific understanding of the sequestration process and creating the experience base for sound financial and regulatory assessment. If we are serious about CO2 sequestration in the United States, we need to marry scientific understanding with rigorous financial analysis to establish the actual risk profile of CO2 in the ground. This is the pathway to a rational and efficient long-term insurance solution.

I believe you have struck exactly the right balance in the manner you have written the bill. Evidence of this is the bipartisan support represented by the co-sponsorship of this legislation by Wyoming Senator John Barrasso.

Again, thank you for your leadership on this and other important energy issues that our nation must address. Please know that I stand ready to support your efforts on this legislation.

Best regards,
Dave Freudenthal
Governor