§ 38-25-10 — Injection of produced gas - When royalties owed

1. Unless otherwise expressly agreed by the storage operator, mineral owners, and lease
owners, royalties on gas produced but not sold and which is injected into a storage
facility instead of flaring or for lack of market, are not due on the produced and stored
gas until gas volumes actually are withdrawn from the storage facility, sold, and
proceeds received from the sale.
2. Prior to gas being withdrawn and sold from a storage facility under this section, the
storage operator, after notice and hearing, shall obtain approval from the commission
evidencing a reasonable and equitable method of allocation of the stored gas sale
proceeds to the rightful mineral, royalty, and leasehold owners of the gas injected into
storage. The commission may adopt such rules and orders as necessary to implement
the purposes of this section.