Oil and gas leases; drilling into gas storage stratum
Sec. 3. (a) The rights acquired by condemnation must be without
prejudice to the rights and interests of the owners or their lessees to:
(1) execute oil and gas leases;
(2) drill or bore to any other strata or formation not condemned;
and
(3) produce oil and gas discovered.
However, any drilling and all operations in connection with the
drilling must be performed in a manner that protects the strata or
formations condemned against the loss of gas and against
contamination of the reservoir by water, oil, or other substance that
will affect the use of the condemned strata or formations for gas
storage purposes.
(b) If the owners of mineral rights or the owners' lessees drill into
land in which gas storage rights have been condemned under this
chapter, the owners of mineral rights or their lessees shall give notice
to the owner of the gas storage stratum, formation, or horizon at least
thirty (30) days before commencing the drilling. The notice must
specify the location and nature of the operations, including the depth
to be drilled. The notice must be given by United States registered or
certified mail, return receipt requested, and addressed to the usual
business address of the owner or owners of the gas storage stratum
or formation condemned under this chapter.
(c) It is the duty of the owner of a gas storage stratum or
formation to designate all necessary procedures for protecting the gas
storage area. The actual costs incurred over and above customary and
usual drilling and other costs that would have been incurred without
compliance with the requirements shall be borne by the owner of the
gas storage stratum or formation. An owner or lessee of mineral
interests other than gas storage rights is not responsible for an act
done under such a requirement or the consequences of this act.
As added by P.L.2-2002, SEC.9.
Last modified: May 24, 2006