Michigan Gas Storage Agreement and Lease (Surface and Underground)

State:
Multi-State
Control #:
US-OG-1012
Format:
Word; 
Rich Text
Instant download

Description

This is an agreement and lease for surface and underground gas storage.

The Michigan Gas Storage Agreement and Lease (Surface and Underground) is a legal contract that governs the usage and rights associated with the storage of natural gas in the state of Michigan. It provides a framework for the landowner and the gas storage company to establish their mutual obligations, terms, and conditions. 1. Underground Gas Storage Agreement: The Underground Gas Storage Agreement refers to a specific type of lease that grants a gas storage company the right to store natural gas in underground facilities located within a designated property. This agreement typically outlines the terms related to the construction, operation, maintenance, and decommissioning of the storage facilities. 2. Surface Gas Storage Agreement: The Surface Gas Storage Agreement pertains to the lease of surface lands for the purpose of establishing gas storage infrastructure. Unlike underground storage, which involves utilizing underground geological formations, surface storage utilizes above-ground structures such as tanks or ponds. This agreement sets forth the rights and responsibilities regarding the use, construction, operation, and maintenance of these surface storage facilities. Key elements commonly found in the Michigan Gas Storage Agreement and Lease include: 1. Parties Involved: Clearly identifies and defines the parties entering into the agreement — the landowner and the gas storage company. 2. Description of Land: Provides a detailed description of the land where the storage facilities will be established, including both surface and underground rights, where applicable. 3. Grant of Rights: Outlines the rights granted by the landowner to the gas storage company, such as the right to construct, operate, and maintain storage facilities. 4. Term and Termination: Specifies the duration of the agreement, renewal options, and the circumstances under which either party can terminate the lease. 5. Payment and Financial Obligations: Describes the compensation structure, including any upfront payments, ongoing rental fees, royalties, or other financial obligations. 6. Operational Requirements: Specifies the requirements for construction, operation, and maintenance of the storage facilities, including safety standards and environmental regulations. 7. Indemnification and Liability: Outlines the liability mechanisms, including insurance requirements and indemnification clauses to protect both parties from potential damages or accidents. 8. Access and Surface Use Rights: Addresses the landowner's access rights and any restrictions on surface use by the gas storage company during the lease term. 9. Regulatory Compliance: Ensures the gas storage company adheres to all applicable federal, state, and local laws, rules, and regulations related to natural gas storage. 10. Dispute Resolution: Identifies the mechanisms for dispute resolution, such as mediation or arbitration, to be used if conflicts arise between the parties. In conclusion, the Michigan Gas Storage Agreement and Lease (Surface and Underground) is a legally binding document that governs the establishment and operation of natural gas storage facilities on private lands in Michigan. The agreement encompasses both surface and underground storage options, and its contents include detailed provisions related to rights, responsibilities, compensation, operational requirements, and dispute resolution.

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FAQ

Compression is needed to prepare the working and cushion gases for underground storage. After compression, H2 and NG are injected into the subsurface through injection wells. Two gases are injected into this system: working gas and cushion gas. The working gas is H2/NG.

It is most commonly held in inventory underground under pressure in three types of facilities. These underground facilities are depleted reservoirs in oil and/or natural gas fields, aquifers, and salt cavern formations. Natural gas is also stored in liquid or gaseous form in above?ground tanks.

Natural gas, like most other commodities, can be stored for an indefinite period of time. The exploration, production, and transportation of natural gas takes time, and the natural gas that reaches its destination is not always needed right away, so it is injected into underground storage facilities.

The general process is to inject gas into the caverns using large compressors, then discharge the gas into the national grid. Due to the large pressure changes, significant temperature changes also occur and this adds a layer of complexity to the process.

It is most commonly held in inventory underground under pressure in three types of facilities. These underground facilities are depleted reservoirs in oil and/or natural gas fields, aquifers, and salt cavern formations.

Natural Gas Storage - Storage Fields The working gas requirement is generally about 50% of the total reservoir capacity. Gas is withdrawn in winter season and injected in summer. This type of storage facility can be used for long system supply or peak day.

More info

Mar 8, 2022 — For lands under this lease, the Lessee shall submit to the Lessor a complete copy of any application for permits to drill simultaneously with ... Lease rights shall terminate and the Lessee shall be required to file a release with the Lessor as hereinafter provided wherever any rentals coming due under ...(f) "Land" means any property description in which the state owns any gas storage rights. (g) "Lease" means a direct underground gas storage lease issued as the ... gas storage leasing. ... department and must be submitted to the department at the address listed on the form. Applications must include a development plan. It offers a wide variety of professionally drafted and lawyer-approved forms and templates. Interests in underground rock strata used for gas storage purposes, whether by lease or ownership separate from the surface of real property, shall be ... ELECTRIC AND GAS CORPORATIONS. Act 238 of 1923. AN ACT authorizing the formation of corporations for the purpose of generating, manufacturing,. Michigan oil and gas law distinguishes between the mineral owner and the surface owner in the rights to use subsurface caverns for gas storage. The surface ... May 13, 2023 — This includes underground, surface, and market waste. DAMAGE TO FRESH WATERS, both underground and surface, is prohibited in the drilling, ...

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Michigan Gas Storage Agreement and Lease (Surface and Underground)