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Policy Option Paper — Closing the Liability Gap

2008
Think Tank Report
Mary Griffiths
International Policy/Guidance
Carbon Capture, Utilization and Storage → Carbon Capture and Storage
Canada, CCS Liability
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Summary/Abstract

This report proposes that long-term liability should focus on the liability for leaks to any area outside the designated storage zone after the abandonment of the injection well. This includes leaks via the well bore or fractures to other underground formations or to the surface. The report argues that the costs associated with leakage could include remedial action to prevent the leak, work to restore damage incurred underground (e.g., to shallow groundwater), or on the surface (e.g., impacts on vegetation). Thus, there must be a mechanism to finance these actions. In addition to dealing with the physical issues associated with leakage, it may be necessary to provide compensation to third parties (people, animals and property) impacted by a leak.

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