Natural Gas Storage

Gas storage involves injectinggas into a depleted reservoir, a practice that occurs quite often in Louisiana and Mississippi and has historically occurred less often in Texas. However, with the increase in drilling activity, gas storage reservoirs are in short supply and we expect the demand for gas storage in Texas to increase over the next few years. 

Understandably, when a land owner hears there is interest in storing gas on or near their property, they have concerns and need factual information about the process. The Landman’s role in a gas storage project requires good Public Relations skills, as we are involved in many public meetings where our role is to dispel misinformation and disseminate good information. The most common misinformation typically revolves around rumors the gas will explodeor the mineral owner will never be able to lease their minerals again. These are very sensitive issues that require an empathetic ear and a valid explanation. 

Landmen typically get involved before the company’s lawyers have filed the permitting paperwork with the FERC (Federal Energy Regulatory Commission) in Washington, DC and with any State and Local regulatory agencies. During that time, we work with the mineral and surface owners to obtain at least 50% agreement on the project before filing for permit. 

After the permitting process (typically six months or more), we negotiate the agreements that involve annual rental payments to the owners. 

TWW Landmen have experience negotiating the entire gas storage process, making us a valuable partner for your gas storage needs. In addition to negotiating rental payments and facilitating the permits for gas storage:

  • We negotiate and coordinate all pipeline routes within the gas storage field, working with the surface owners, contractors, and surveyors along with obtaining all the permits and applications for pipeline construction. 
  • Settle surface damages from gas storage operations. 

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