Sponsor proposes $5/ton pore-space tax and $500 million disaster fund for CO2 sequestration

Representative Sue Ann Olson told the committee that House Bill 1573 would impose a $5-per-ton tax on any substance transported more than 25 miles for permanent underground storage ("pore space utilization") and would deposit the first $500 million of proceeds into a new North Dakota Disaster Fund to pay cleanup, specialized response equipment and other emergency needs.

"In North Dakota, we have a severance tax on oil and gas and coal because they are wasting resources," Olson said. "Utilization of pore space is the same — it is finite and used up over time. ... The disaster fund will help supply equipment and training if they are needed beyond what is otherwise required to be supplied."

Olson cited international and domestic incidents — including reported CO2 leaks in…