Sec. 12. (a) Nothing in this section prohibits recovery by a public utility for any impact on a source of the public water supply from a carbon sequestration project.

     (b) A claim of subsurface trespass shall not be actionable against a storage operator conducting carbon sequestration in accordance with a valid UIC Class VI permit and a permit issued by the department for a carbon sequestration project, unless the claimant proves that injection or migration of carbon dioxide:

(1) is injurious to health, indecent, offensive to the senses, or an obstruction to the free use of property so as essentially to interfere with the comfortable enjoyment of life or property; or

(2) has caused direct physical injury to a person, an animal, or tangible property.

     (c) A surface or subsurface property interest holder shall be permitted to recover money damages only for the loss of a nonspeculative value resulting from the injection and migration of carbon dioxide beyond the storage facility.

     (d) A surface or subsurface property interest holder may seek punitive damages in accordance with IC 34-51-3-4 only if the storage operator violates the requirements of the UIC Class VI permit or acts with reckless disregard of public safety.

As added by P.L.163-2022, SEC.2.