SECTION 3. TERMS AND

DEFINITIONS

.01 Terms . For purposes of this notice, (a) The terms disposal, storage, and sequestration are used interchangeably,

(b) The term credit refers to a tax credit and shall not be interpreted or construed as

a CO 2 allowance, permit, or any other CO2 emissions property right, and

(c) The term leakage refers to CO 2 that ceases to be sequestered via escape or release from the subsurface to the atmosphere or ocean.

.02 Industrial Facility . (a) Industrial facility refers to a facility that produces a CO stream from a 2 fuel combustion source, a manufacturing process, or a fugitive CO 2 emission source that, absent capture and disposal, would otherwise be released into the atmosphere as industrial emission of greenhouse gas.

(b) An industrial facility does not include a facility that produces CO from 2 CO -bear2 production wells at natural CO2 ing formations.

.03 Qualified Carbon Dioxide . Qualified carbon dioxide means CO 2 that is:

(a) Captured from an industrial source that would otherwise be released into the atmosphere as industrial emission of greenhouse gas (GHG),

(b) Measured at the source of capture, and

(c) Verified at the point of disposal or injection.

Qualified CO includes the initial de2 posit of captured CO used as a tertiary 2 injectant but does not include CO is 2 that re-captured, recycled, or otherwise re-injected as part of the enhanced oil and natural gas recovery process.

.04 Qualified Enhanced Oil or Nat- ural Gas Recovery Project . Qualified enhanced oil or natural gas recovery project has the same meaning given the term “qualified enhanced oil recovery project” under § 43(c)(2) by substituting “crude oil or natural gas” for “crude oil” in § 43(c)(2)(A)(i).

.05 Qualified Facility . Qualified facility means an industrial facility that is owned by the taxpayer where carbon capture equipment is placed in service and where at least 500,000 metric tons of qualified CO is captured during the taxable 2 year.