§ 30:22 — Underground storage of natural gas, liquid hydrocarbons, and carbon dioxide

Louisiana § 30:22

• Jurisdiction: Louisiana
• Title 30: Mortgages and Privileges

Text

§22. Underground storage of natural gas, liquid hydrocarbons, and carbon dioxide
A. The underground storage of natural gas, liquid hydrocarbons, and carbon dioxide
which promotes conservation of natural gas or liquid hydrocarbons, or which permits the
building of large quantities of natural gas or liquid hydrocarbons in reserve for orderly
withdrawal in periods of peak demand, making natural gas or liquid hydrocarbons more
readily available to the consumer, or which provides more uniform withdrawal from various
gas or oil fields, each is in the public interest and for a public purpose.
B. Prior to the use of any underground reservoir for the storage of natural gas and
prior to the exercise of eminent domain by any person, firm, or corporation having such right
under laws of the state of Louisiana, and as a condition precedent to such use or to the
exercise of such rights of eminent domain, the secretary, after public hearing pursuant to the
provisions of R.S. 30:6, shall have found all of the following:
(1) That the underground reservoir sought to be used for the injection, storage, and
withdrawal of natural gas is suitable and feasible for such use, provided no reservoir, any part
of which is producing or is capable of producing oil in paying quantities, shall be subject to
such use, unless all owners in such underground reservoir have agreed thereto, and no
reservoir shall be subject to such use (a) unless the volumes of original reservoir gas and
condensate content therein which are capable of being produced in paying quantities have
all been produced; or (b) unless such reservoir has a greater value or utility as an
underground reservoir for gas storage than for the production of the remaining volumes of
original reservoir natural gas and condensate content, and at least three-fourths of the owners,
in interest, exclusive of any "lessor" defined in R.S. 30:148.1, have consented to such use in
writing.
(2) That the use of the underground reservoir for the storage of natural gas will not
contaminate other formations containing fresh water, oil, gas, or other commercial mineral
deposits.
(3) That the proposed storage will not endanger lives or property.
C. Prior to the use of any underground reservoir for the storage of liquid
hydrocarbons or carbon dioxide, the secretary, after public hearing pursuant to the provisions
of R.S. 30:6, shall have found all of the following:
(1) That the underground reservoir sought to be used for the injection, storage, and
withdrawal of liquid hydrocarbons or carbon dioxide is suitable and feasible for such use,
provided no reservoir, any part of which is producing or is capable of producing oil in paying
quantities, shall be subject to such use, unless all owners in such underground reservoir have
agreed thereto, and no reservoir shall be subject to such use (a) unless the volumes of original
reservoir gas and condensate content therein which are capable of being produced in paying
quantities have all been produced; or (b) unless such reservoir has a greater value or utility
as an underground reservoir for gas storage than for the production of the remaining volumes
of original reservoir natural gas and condensate content, and at least three-fourths of the
owners, in interest, exclusive of any "lessor" defined in R.S. 30:148.1, have consented to
such use in writing.
(2) That the use of the underground reservoir for the storage of liquid hydrocarbons
or carbon dioxide will not contaminate other formations containing fresh water, oil, gas, or
other commercial mineral deposits.
(3) That the proposed storage will not endanger lives or property.
D. The secretary shall determine with respect to any such underground reservoir
proposed to be used as a storage reservoir, whether or not such reservoir is fully depleted of
the original commercially recoverable natural gas, condensate, or liquid hydrocarbon content
therein. If the secretary finds that such reservoir has not been fully depleted, the secretary
shall determine the amount of the remaining commercially recoverable natural gas,
condensate, or liquid hydrocarbon content of such reservoir.
E. The secretary may issue any necessary order providing that all natural gas, liquid
hydrocarbons, or carbon dioxide which has previously been reduced to possession and which
is subsequently injected into an underground storage reservoir shall at all times be deemed
the property of the injector, his successors and assigns; and in no event shall such gas, liquid
hydrocarbons, or carbon dioxide be subject to the right of the owner of the surface of the
lands or of any mineral interest therein under which such underground storage reservoir shall
lie or be adjacent to or of any person other than the injector, his successors, and assigns to
produce, take, reduce to possession, waste, or otherwise interfere with or exercise any control
thereover, provided that the injector, his successors, and assigns shall have no right to gas
or liquid hydrocarbons in any stratum or portion thereof not determined by the secretary to
constitute an approved underground storage reservoir. The secretary shall issue such orders,
rules, and regulations as may be necessary for the purpose of protecting any such
underground storage reservoir, strata, or formations against pollution or against the escape
of natural gas, liquid hydrocarbons, or carbon dioxide therefrom, including such necessary
rules and regulations as may pertain to the drilling into or through such underground storage
reservoir.

Legislative History

Added by Acts 1962, No. 190, §1; Acts 2008, No. 315, §1; Acts 2025, No. 458, §1, eff. Oct. 1, 2025.