Carbon sequestration setbacks may vary depending on the project.

Jay County Plan Commission and Portland Plan Commission asked their attorney to draft legislation for carbon sequestration ordinances during a joint session Thursday.

POET Biorefining is undergoing the permitting process for a Class VI well. If approved, it would involve drilling nearly 4,000 feet below the surface and injecting carbon dioxide deep underground.

Carbon dioxide is a byproduct of ethanol production at POET’s facility, 1542 S. 200 West. The permit would allow the company to inject carbon dioxide for 12 years, followed by 50 years of monitoring the well.

POET Biorefining general manager Adam Homan explained to both plan commissions Thursday the project is a $50 million to $75 million investment. The company has also offered to commit $2 per ton of carbon dioxide sequestered into a community partnership fund, up to a maximum of $500,000 per year.

“This project is very important for (our business’ future) because it lowers our carbon intensity and allows us to participate in these markets that are coming in the future of our industry,” Homan said. “We truly feel the plants that are unable to do a CCS project like this are going to be disadvantaged moving forward.”

He added the company foresees it will grow as a result of the project, leading to a higher demand for corn in the 30- to 40-mile radius around the plant.

Portland Plan Commission reviewed a study last week from DTE Vantage and Wild Well Control, which performed a dispersion model on the project. It’s an analysis showing “worst-case scenarios” if carbon dioxide releases from the well in an uncontrolled manner.

Matt Hemenway, DTE Vantage project subsurface manager, and Brad Rosello of Wild Well Control returned to Jay County on Thursday to present the study to Jay County Plan Commission, which met in joint session with Portland Plan Commission to discuss related legislation.

A few main factors could impact the size of the plume if the carbon dioxide were released at the surface in an uncontrolled manner — the rate at which the carbon dioxide escaped, the size of the release point, the direction of the release and wind speed. The companies simulated 12 scenarios displaying the different variables involved.

The scenarios were measured as if all safety efforts failed. Hemenway noted gas would disperse from the well at a higher rate and reach a farther distance for the first 28 seconds of an event before tapering off.

If carbon dioxide were to escape from the pipes in the worst-case scenario, the 425-foot radius from the well could hit the National Institute for Occupational Safety and Health’s Immediately Dangerous to Life or Health value (40,000 parts per million or more) and present immediate danger. However, nearby homes, businesses and neighboring stone quarry US Aggregates are located beyond that distance. The controlled access area, approximately a 771-foot radius surrounding the project, in a worst-case scenario could hit the Occupational Safety and Health Administration’s eight-hour exposure limit (more than 5,000 parts per million).

Hemenway said the study supports existing 425-foot setbacks from homes and buildings for the project. Referring to the analysis, he also suggested establishing an emergency response plan with the Jay County Emergency Management Agency and other responders.

Plan commission member Matt Minnich asked if 425-foot setbacks are common for carbon sequestration projects. Rosello explained the measurements for worst-case scenario leaks would vary for different well projects depending on a number of factors, including wind speeds, tube sizes and pressure.

Jay/Portland Building and Planning director John Hemmelgarn argued the company could drill a well in a different location on its property, and the setbacks would stay within 771 feet of adjoining property lines. He said the project’s proposed setbacks — they measure from structures, not property lines — aren’t fair to adjoining property owners.

“(I) do not like this whole idea … but I don’t get to make that decision,” he said.

Tony Muzzin of DTE Vantage said moving the well would delay the project by months or years and result in millions of dollars in additional expenditures. Current plans call for five wells across the 2,000-acre plume. One will handle injection well while the other four will be used for monitoring, sampling or testing.

Portland Plan Commission member Randy Geesaman pointed to the impact of Senate Enrolled Act 1 from last year.

“We already know that the county and city (are) going to lose money,” he said. “So our financial partners and the legislature (are) saying always look for new revenue sources …”

Minnich reminded plan commissions a carbon sequestration ordinance would impact both POET Biorefining’s proposed wells as well as any future projects.

Portland Plan Commission member Chuck Denney questioned if the commission should require a third party to conduct a study for all proposed Class VI wells. Jay County Plan Commission member Jeanne Houchins talked about weighing setbacks on a case-by-case basis. She and Portland Plan Commission member Kyle Cook talked about defining setbacks based on where in a worst-case scenario they would surpass the National Institute’s Immediately Dangerous to Life or Health value.

In the ordinance draft presented Thursday, setbacks are 1,500 feet from property lines. Representatives from POET Biorefining and DTE Vantage have indicated such setbacks would “kill” the project.

Hemmelgarn noted the 1,500-foot setbacks were initially proposed to avoid US Aggregates. Hemenway said Thursday the analysis didn’t show a high probability of a carbon dioxide leak reaching the stone quarry.

Hemmelgarn spoke in favor of setbacks stretching to the controlled access area, the 771-foot radius around the well.

Regarding the ordinance, Cook proposed incorporating a requirement that project applicants pay for a third party to conduct a study and determine appropriate setbacks. Such setbacks, in the event of a gas leak, wouldn’t meet the National Institute’s Immediately Dangerous to Life or Health value. The final setback decision, he added, would be up to the plan commission.

Questions surfaced on whether the final decision should be left to the plan commissions’ discretion. County attorney Wes Schemenaur advised zoning legislation should be based on a standard.

Jay/Portland Building and Planning administrative assistant Pati McLaughlin suggested Schemenaur draft that portion of the ordinance, with both plan commissions voting in favor of McLaughlin’s suggestion.

Also Thursday, Jay County Plan Commission agreed to move forward with four ordinances dictating zoning rules for solar and wind farms, commercial battery storage facilities and data centers.

County officials have been working on ordinances for each type of facility for months.

Last year, Jay County Commissioners enacted one-year moratoriums on new wind farms, new commercial solar farms and commercial battery storage operations. Portland City Council enacted moratoriums on commercial battery storage operations and data centers.

Jay County Plan Commission will host public hearings next month, tentatively March 17 at the Jay County Courthouse auditorium, for each proposed ordinance.

In other business, Jay County Plan Commission re-elected Scott Hilfiker as president, Steve Ford as vice president and Chad Aker as its non-voting representative on Portland Plan Commission. It also elected Brad Daniels as secretary.
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