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Legislature approves sharing of carbon sequestration revenue from certain state lands after stakeholder agreement
Summary
Lawmakers approved a bill to distribute injection revenue from carbon dioxide sequestration on certain state-owned properties, extending local revenue sharing to Wildlife and Fisheries lands and adding technical safeguards following negotiations with agencies, police juries and the governor’s office.
The House approved legislation to extend local revenue sharing for carbon dioxide sequestration to include some state agency lands after an amended agreement among lawmakers, the Department of Wildlife and Fisheries and local governments.
Representative Blake Lacombe — carrying the Senate-filed measure on the House floor — said the bill addresses a gap left by earlier action that gave local parishes a share of sequestration revenue on some state parcels but excluded wildlife management areas and other properties managed by state agencies. Under the adopted amendments, when wells are drilled and inject CO2 on specific state-owned properties, 30% of net injection revenue will be shared with the parish and 70% will remain with the state agency; surface-rights income (bonuses, rentals) will remain with the agency.
Lacombe said the changes resolve disputes that arose after leases were executed under earlier law, and that stakeholders including parish presidents, the police jury association and state agencies had reached a tentative agreement reflected in the amendment set. Several members noted broad support from local officials and from industry groups during committee sessions.
Representative Robbie Carter and others urged lawmakers to consider impacts on rural parishes that host pipelines, noting concerns about road and infrastructure damage, lack of paid emergency services, and long-term community costs. Lacombe said his bill focused on state-owned parcels and was intended as a step toward broader solutions for private lands and wider community impacts.
The House adopted the multi-page amendment set negotiated with Wildlife and Fisheries and other parties and then passed the bill on a voice and recorded vote. Sponsors said the bill moves revenue-sharing policy forward for areas where state agencies own the surface rights and have existing leases.
Why it matters: As carbon-capture projects expand, jurisdictions hosting wells and pipelines seek an equitable share of economic benefits. The bill aligns revenue treatment for agency-owned lands with prior legislation applied to other state-owned property while preserving agency surface revenues and establishing a net-revenue sharing structure.
What’s next: Lawmakers and stakeholders indicated further work will be needed to address private landowner leases and community infrastructure impacts as sequestration projects proceed.
