A southwest Indiana carbon capture and sequestration project being permitted in the Illinois Basin. What it means for mineral, surface, and pore space owners.
Quick answer
Wabash Valley Resources is developing one of the most advanced carbon capture and sequestration (CCS) projects in the United States. Located in southwestern Indiana — primarily in Posey, Vigo, Knox, and adjacent counties — the project plans to capture CO2 from an industrial source, transport it via pipeline, and inject it into the deep Mt. Simon Sandstone for permanent geologic sequestration.
The project is permitted under EPA Class VI rules and is positioned to qualify for federal 45Q tax credits at the highest tier ($85 per metric ton of CO2 sequestered for direct geologic storage as of the Inflation Reduction Act).
For mineral owners on or adjacent to the project area, the Wabash Valley CCS hub raises several distinct legal and economic questions:
Pore space rights: CCS uses subsurface formation space — typically deep saline aquifers below producing zones. Pore space rights are legally distinct from mineral rights in most U.S. states, but ownership rules vary by state. Indiana statute generally vests pore space in the surface owner.
EOR overlap: Some CCS projects use captured CO2 for enhanced oil recovery on existing producing wells. EOR-eligible CO2 storage qualifies for 45Q at a different rate ($60/ton for EOR vs $85/ton for direct storage). Owners on EOR-eligible acreage may receive incremental royalty income.
Lease language: Most pre-2020 oil and gas leases in the Illinois Basin do not address CO2 sequestration or pore space. New leases or amendments may specifically address sequestration rights.
Class VI permitting: EPA Class VI injection well permits require notification to mineral and surface owners within the area of review.
The Wabash Valley CCS hub project area centers on southwestern Indiana, with infrastructure and pore space considerations potentially extending across:
Posey County, IN — primary project area
Vigo County, IN — Terre Haute regional hub
Lawrence County, IL — adjacent CCS-eligible zones
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