HB 1341

                                                          Introduced Version
           HOUSE BILL No. 1341
                 _____
              DIGEST OF INTRODUCED BILL
Citations Affected: IC 14-39-1; IC 32-24-5.
Synopsis: Eminent domain. Eliminates eminent domain authority for
the following purposes: (1) Acquiring a right-of-way for the
construction or operation of a pipeline for transporting carbon dioxide
or other carbon oxides. (2) Acquiring underground strata for a well or
monitoring facility for underground storage of carbon dioxide or other
carbon oxides. (3) A carbon sequestration pilot project or other
underground carbon dioxide or other carbon oxides storage project.
Effective: July 1, 2026.
                               Yocum
January 6, 2026, read first time and referred to Committee on Utilities, Energy and
Telecommunications.
2026  IN 1341—LS 7051/DI 87
                                                                                       Introduced
            Second Regular Session of the 124th General Assembly (2026)
 PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
 Constitution) is being amended, the text of the existing provision will appear in this style type,
 additions will appear in this style type, and deletions will appear in this style type.
   Additions: Whenever a new statutory provision is being enacted (or a new constitutional
 provision adopted), the text of the new provision will appear in this style type. Also, the
 word NEW will appear in that style type in the introductory clause of each SECTION that adds
 a new provision to the Indiana Code or the Indiana Constitution.
  Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts
 between statutes enacted by the 2025 Regular Session of the General Assembly.
                   HOUSE BILL No. 1341
    A BILL FOR AN ACT to amend the Indiana Code concerning
 natural and cultural resources.
     Be it enacted by the General Assembly of the State of Indiana:
1    SECTION 1. IC 14-39-1-3 IS REPEALED [EFFECTIVE JULY 1,
2 2026]. Sec. 3. Because:
3(1) the movement of carbon dioxide conducted for:
4(A) a person's own use or account; or
5(B) the use or account of another person or persons;
6by pipeline in Indiana for carbon management applications can
7assist efforts to reduce carbon dioxide emissions; and
8(2) the underground storage of carbon dioxide can assist efforts
9to reduce carbon dioxide emissions;
10 the use of carbon dioxide transmission pipelines, including their
11 routing, construction, maintenance, and operation, and the underground
12 storage of carbon dioxide are declared as a matter of legislative
13 determination to be a public use and service, in the public interest, and
14 a benefit to the welfare and people of Indiana.
15    SECTION 2. IC 14-39-1-3.1 IS ADDED TO THE INDIANA CODE
16 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
17 1, 2026]: Sec. 3.1. Notwithstanding any other law:
 2026  IN 1341—LS 7051/DI 87
                                    2
1(1) A person may not exercise eminent domain to acquire
2right-of-way for the construction or operation of a pipeline
3for the preponderant purpose of transporting carbon dioxide
4or other carbon oxides.
5(2) A person may not exercise eminent domain to acquire
6right-of-way or obtain the property rights or ownership of
7underground strata or formations located under the surface
8of the property for purposes of establishing and operating a
9Class VI injection well or monitoring facilities required by the
10United States Environmental Protection Agency (EPA) for the
11underground storage of carbon dioxide or other carbon
12oxides.
13(3) A person may not exercise eminent domain for:
14(A) a carbon sequestration pilot project under section 3.5
15of this chapter; or
16(B) another underground carbon dioxide (or other carbon
17oxides) storage project.
18    SECTION 3. IC 14-39-1-6, AS ADDED BY P.L.150-2011,
19 SECTION 18, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
20 JULY 1, 2026]: Sec. 6. A certificate of authority issued by the
21 department under this chapter must include at least the following:
22(1) A grant of authority to construct and operate a carbon dioxide
23transmission pipeline as requested in the application.
24(2) A grant of authority to use, occupy, and construct pipeline
25facilities in any designated public right-of-way for the
26construction and operation of the carbon dioxide transmission
27pipeline.
28(3) A grant of authority to take and acquire possession by eminent
29domain of any property or interest in property for the
30construction, maintenance, or operation of a carbon dioxide
31transmission pipeline in the manner provided for the exercise of
32the power of eminent domain under sections 7, 8, and 9 of this
33chapter.
34    SECTION 4. IC 14-39-1-7 IS REPEALED [EFFECTIVE JULY 1,
35 2026]. Sec. 7. (a) If a carbon dioxide transmission pipeline company
36 has received a carbon dioxide transmission pipeline certificate of
37 authority from the department under this chapter and is not able to
38 reach an agreement with a property owner for the construction,
39 operation, and maintenance of the carbon dioxide transmission pipeline
40 on the owner's property, the company may proceed to condemn a
41 right-of-way or an easement necessary or useful for:
42(1) constructing, maintaining, using, operating, and gaining
 2026  IN 1341—LS 7051/DI 87
                                     3
1access to a carbon dioxide transmission pipeline and all necessary
2machinery, equipment, pumping stations, appliances, and fixtures
3for use in connection with the carbon dioxide transmission
4pipeline; and
5(2) obtaining all necessary rights of ingress and egress to
6construct, examine, alter, repair, maintain, operate, or remove a
7carbon dioxide transmission pipeline and all of its component
8parts.
9     (b) If the operator of the carbon sequestration pilot project is not
10 able to reach an agreement with an owner of property to acquire:
11(1) ownership of underground strata or formations located under
12the surface of the property for purposes of the underground
13storage of carbon dioxide; or
14(2) ownership or other rights to one (1) or more areas of the
15surface of the property for purposes of establishing and operating
16monitoring facilities required by the United States Environmental
17Protection Agency for the underground storage of carbon dioxide;
18 that are needed for the carbon sequestration pilot project, the operator
19 of the carbon sequestration pilot project may exercise the power of
20 eminent domain under IC 32-24-1 and IC 32-24-5 to make the needed
21 acquisition.
22     SECTION 5. IC 14-39-1-8 IS REPEALED [EFFECTIVE JULY 1,
23 2026]. Sec. 8. (a) Except as otherwise provided in this chapter,
24 IC 32-24-1 applies to the condemnation of property under section 7(a)
25 of this chapter by a carbon dioxide transmission pipeline company.
26     (b) IC 32-24-5 and (pursuant to IC 32-24-5-5) IC 32-24-1 apply to
27 the condemnation of property under section 7(b) of this chapter by the
28 operator of the carbon sequestration pilot project, strictly for purposes
29 of the carbon sequestration pilot project.
30     SECTION 6. IC 14-39-1-9 IS REPEALED [EFFECTIVE JULY 1,
31 2026]. Sec. 9. A carbon dioxide transmission pipeline company that
32 exercises the authority set forth in section 7(a) of this chapter shall:
33(1) compensate the property owner by making a payment to the
34owner equal to:
35(A) one hundred twenty-five percent (125%) of the fair market
36value of the interest in the property acquired, if the
37right-of-way or easement involves agricultural land; or
38(B) one hundred fifty percent (150%) of the fair market value
39of the interest in the property acquired, if the right-of-way or
40easement involves a parcel of property occupied by the owner
41as a residence; and
42(2) pay to the property owner:
 2026  IN 1341—LS 7051/DI 87
                                     4
1(A) any damages determined under IC 32-24-1; and
2(B) any loss incurred in a trade or business;
3that are attributable to the exercise of eminent domain.
4     SECTION 7. IC 32-24-5-1, AS AMENDED BY P.L.291-2019,
5 SECTION 12, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
6 JULY 1, 2026]: Sec. 1. (a) Whereas, the storage of gas in subsurface
7 strata or formations of the earth in Indiana tends to insure a more
8 adequate supply of gas to domestic, commercial, and industrial
9 consumers of gas in this state and materially promotes the economy of
10 the state, the storage of gas is declared to be in public interest and for
11 the welfare of Indiana and the people of Indiana and to be a public use.
12     (b) Whereas, because the underground storage of carbon dioxide in
13 subsurface strata or formations of the earth can assist efforts to reduce
14 carbon dioxide emissions and thus materially promotes the well-being
15 of citizens of the state, the underground storage of carbon dioxide is
16 declared to be:
17(1) in the public interest and for the welfare of Indiana and the
18people of Indiana; and
19(2) a public use.
20     SECTION 8. IC 32-24-5-2, AS AMENDED BY P.L.291-2019,
21 SECTION 13, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
22 JULY 1, 2026]: Sec. 2. (a) A person, firm, limited liability company,
23 municipal corporation, or other corporation authorized to do business
24 in Indiana and engaged in the business of transporting or distributing
25 gas by means of pipelines into, within, or through Indiana for ultimate
26 public use may condemn:
27(1) land subsurface strata or formations;
28(2) other necessary land rights;
29(3) land improvements and fixtures, in or on land, except
30buildings of any nature; and
31(4) the use and occupation of land subsurface strata or formations;
32 for constructing, maintaining, drilling, utilizing, and operating an
33 underground gas storage reservoir.
34     (b) The operator of the carbon sequestration pilot project established
35 under IC 14-39-1 may exercise the power of eminent domain to obtain:
36(1) ownership of such underground strata and formations located
37under the surface of the owner's property as may be necessary or
38useful for underground storage of carbon dioxide in the strata or
39formations; and
40(2) ownership or other rights to one (1) or more areas of the
41surface of the owner's property, including but not limited to one
42(1) or more rights-of-way or easements, as may be necessary or
 2026  IN 1341—LS 7051/DI 87
                                     5
1useful for constructing, maintaining, using, operating, and gaining
2access to monitoring facilities required by the United States
3Environmental Protection Agency for the underground storage of
4carbon dioxide.
5     (c) (b) The following rights in land may be condemned for use in
6 connection with the underground storage of gas:
7(1) To drill and operate wells in and on land.
8(2) To install and operate pipelines.
9(3) To install and operate equipment, machinery, fixtures, and
10communication facilities.
11(4) To create ingress and egress to explore and examine
12subsurface strata or underground formations.
13(5) To create ingress and egress to construct, alter, repair,
14maintain, and operate an underground storage reservoir.
15(6) To exclusively use any subsurface strata condemned.
16(7) To remove and reinstall pipe and other equipment used in
17connection with rights condemned under subdivisions (1) through
18(6).
19     (d) (c) Acquisition of subsurface rights in land for gas storage
20 purposes or for purposes of the carbon sequestration pilot project
21 established under IC 14-39-1 by condemnation under this section must
22 be without prejudice to any subsequent proceedings that may be
23 necessary under this section to acquire additional subsurface rights in
24 the same land for use in connection with the underground storage.
25 Surface rights in land necessary for the accomplishment of the
26 purposes set forth in this section may be condemned.
27     (e) (d) Except with respect to a proceeding under this chapter to:
28(1) acquire the right to explore and examine a subsurface stratum
29or formation in land; and
30(2) create the right of ingress and egress for operations connected
31to the acquisition;
32 and subject to subsection (f), (e), as a condition precedent to the
33 exercise of the right to condemn any underground stratum, formation,
34 or interest reasonably expected to be used or useful for underground
35 gas storage, or for purposes of the carbon sequestration pilot project
36 established under IC 14-39-1, a condemnor first must have acquired by
37 purchase, option, lease, or other method not involving condemnation,
38 the right, or right upon the exercise of an option, if any, to store gas in
39 at least sixty per cent (60%) of the stratum or formation. This must be
40 computed in relation to the total surface acreage overlying the entire
41 stratum or formation considered useful for the purpose.
42     (f) (e) A tract under which the stratum or formation sought to be
 2026  IN 1341—LS 7051/DI 87
                                     6
1 condemned is owned by two (2) or more persons, firms, limited
2 liability companies, or corporations must be credited to the condemnor
3 as acquired by it for the purpose of computing the percentage of
4 acreage acquired by the condemnor in complying with the requirement
5 of subsection (e) (d) if the condemnor acquires from the owner or
6 owners of an undivided three-fourths (3/4) part or interest or more of
7 the underground stratum or formation, by purchase, option, lease, or
8 other method not involving condemnation, the right, or right upon the
9 exercise of an option, if any, to store gas in the stratum or formation. It
10 is not necessary for the condemnor to have acquired any interest in the
11 property in which the condemnee has an interest before instituting a
12 proceeding under this chapter.
13     SECTION 9. IC 32-24-5-3, AS AMENDED BY P.L.291-2019,
14 SECTION 14, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
15 JULY 1, 2026]: Sec. 3. (a) The rights acquired by condemnation under
16 this chapter must be without prejudice to the rights and interests of the
17 owners or their lessees to:
18(1) execute oil and gas leases;
19(2) drill or bore to any other strata or formation not condemned;
20and
21(3) produce oil and gas discovered.
22 However, any drilling and all operations in connection with the drilling
23 must be performed in a manner that protects the strata or formations
24 condemned against the loss of gas and against contamination of the
25 reservoir by water, oil, or other substance that will affect the use of the
26 condemned strata or formations for gas storage purposes.
27     (b) If the owners of mineral rights or the owners' lessees drill into
28 land in which gas storage rights have been condemned under this
29 chapter, the owners of mineral rights or their lessees shall give notice
30 to the owner of the gas storage stratum, formation, or horizon at least
31 thirty (30) days before commencing the drilling. The notice must
32 specify the location and nature of the operations, including the depth
33 to be drilled. The notice must be given by United States registered or
34 certified mail, return receipt requested, and addressed to the usual
35 business address of the owner or owners of the gas storage stratum or
36 formation condemned under this chapter.
37     (c) It is the duty of the owner of a gas storage stratum or formation
38 to designate all necessary procedures for protecting the gas storage
39 area. The actual costs incurred over and above customary and usual
40 drilling and other costs that would have been incurred without
41 compliance with the requirements shall be borne by the owner of the
42 gas storage stratum or formation. An owner or lessee of mineral
 2026  IN 1341—LS 7051/DI 87
                                     7
1 interests other than gas storage rights is not responsible for an act done
2 under such a requirement or the consequences of this act.
3    SECTION 10. IC 32-24-5-4, AS AMENDED BY P.L.291-2019,
4 SECTION 15, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
5 JULY 1, 2026]: Sec. 4. Only the rights in land necessary for use in
6 connection with (1) the underground storage of gas and those
7 subsurface strata adaptable for underground storage of gas and (2) the
8 carbon sequestration pilot project established under IC 14-39-1; may
9 be appropriated and condemned under this chapter. Rights in the
10 subsurface of land constituting a part of a geological structure are
11 deemed necessary to the operation of an underground storage reservoir
12 in the structure. In determining the compensation to be paid to the
13 owner of an oil producing stratum, or interest in the stratum,
14 condemned under this chapter, proof may be offered and consideration
15 must be given to potential recovery, if any, of oil from a stratum by
16 secondary or other subsequent recovery processes in addition to
17 potential recovery by a primary process.
 2026  IN 1341—LS 7051/DI 87