# Wabash Valley Resources CCS Hub and Mineral Owner Implications

**TL;DR:** Wabash Valley Resources is developing a major carbon capture and sequestration (CCS) project in southwestern Indiana targeting the Mt. Simon Sandstone for permanent CO2 storage. The project qualifies for federal 45Q tax credits and raises distinct legal questions for mineral and surface owners, particularly regarding pore space rights, which Indiana law typically allocates to surface owners rather than mineral owners. Mineral owners in Posey, Vigo, Knox, Sullivan, and Warrick counties should understand how CCS permitting and operations may affect their property interests.

## Key Takeaways

- **Wabash Valley Resources is developing one of the most advanced CCS projects in the U.S.**, targeting deep saline formations in the Illinois Basin for permanent CO2 sequestration under EPA Class VI permits.
- **The project qualifies for 45Q tax credits at $85 per metric ton** for direct geologic storage (higher than the $60/ton rate for enhanced oil recovery applications).
- **Pore space rights in Indiana are typically owned by the surface owner, not the mineral owner**, creating a legally distinct property interest separate from oil and gas mineral rights.
- **The project area covers southwestern Indiana counties including Posey, Vigo, Knox, Sullivan, and Warrick**, with potential extension into Lawrence County, Illinois.
- **Existing oil and gas leases typically do not address CO2 sequestration rights**, meaning new leases or amendments may be required for CCS operations.
- **EPA Class VI permitting requires notification to mineral and surface owners** within the area of review during the permitting process.
- **Enhanced oil recovery (EOR) applications may create incremental royalty income** for mineral owners on acreage where captured CO2 is used for production enhancement.
- **Most pre-2020 Illinois Basin oil and gas leases lack CCS-specific language**, creating uncertainty for owners in project areas.

## Page Highlights

**Project Overview**: Wabash Valley Resources is developing a Class VI-permitted CCS hub that captures industrial CO2, transports it via pipeline, and injects it into the deep Mt. Simon Sandstone for permanent geologic sequestration in the Illinois Basin.

**Legal Considerations for Mineral Owners**: CCS projects raise distinct questions about pore space ownership (generally vested in surface owners under Indiana law), enhanced oil recovery royalty implications, lease language gaps in older agreements, and EPA notification requirements during Class VI permitting.

**Geographic Scope**: The project centers on southwestern Indiana with primary operations in Posey County and infrastructure extending across Vigo, Knox, Sullivan, and Warrick counties in Indiana, plus potentially Lawrence County in Illinois.

**Tax Credit Economics**: The project is positioned to qualify for federal 45Q tax credits at the highest tier ($85/ton for direct geologic storage vs. $60/ton for EOR), making permanent sequestration economically favorable under current law.

**Mineral Rights Transactions**: Buckhead Energy purchases Illinois Basin mineral and royalty interests in the broader CCS project area, offering valuations to owners navigating the evolving CCS landscape.

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## Related Topics

- [How to Sell Mineral Rights](https://www.buckheadenergy.com/) (linked as "How to Sell Mineral Rights")
- [What Are My Minerals Worth?](https://www.buckheadenergy.com/) (valuation guidance)
- [Should I Sell? Beginner's Guide](https://www.buckheadenergy.com/) (decision framework)
- [Getting a Fair Price](https://www.buckheadenergy.com/) (pricing considerations)
- [Free Mineral Valuation](https://www.buckheadenergy.com/sell) (valuation request)
- [Illinois Basin Mineral Rights](https://www.buckheadenergy.com/) (regional context)

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