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SB 394

Natural resources: gas and oil; ownership and conveyance rights associated with pore space; establish. Creates new act. TIE BAR WITH: SB 395'25

2025-2026 Regular Session Introduced by John Cherry

Michigan bill establishes separate ownership and leasing rights for underground pore space to facilitate carbon storage and gas operations without surface land ownership conflicts.

referred to Committee on Energy
#naturalresources:gasandoil
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Bill Summary · SB 394

Legislative bill overview

SB 394 establishes new legal ownership and conveyance rights for "pore space"—the empty spaces within underground rock formations used for storing natural resources, particularly carbon dioxide and other gases. The bill creates a statutory framework clarifying how property owners can own, lease, and transfer pore space rights separately from surface land or mineral rights, similar to existing air rights doctrine.

Why is this important

As carbon capture and storage (CCS) technology becomes commercially viable and potentially mandated under climate policies, clear pore space ownership rules are essential for investment and liability clarity. This bill removes legal ambiguity that could otherwise block major industrial projects or create costly disputes between surface owners, mineral rights holders, and storage operators.

Potential points of contention

  • Landowner compensation: Unclear whether surface landowners receive fair market value for permanent underground occupation, or if mineral rights holders automatically gain control over pore space in their parcels
  • Environmental liability: The bill may not adequately specify who bears financial responsibility if stored materials (like CO2) migrate to neighboring properties or contaminate aquifers decades later
  • Regulatory gaps: Establishes ownership framework but ties to SB 395 for actual CCS regulations—leaving uncertainty about operational standards, monitoring requirements, and government oversight mechanisms during the interim period

Compiled from official sources — confirm details with the bill’s official record.

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