New Mexico Gas Storage Lease

• Category: Oil Gas and Minerals - Leases
• State: Multi-State
• Control #: US-OG-1013
• Format: Word; Rich Text

Description

This form may be used for a gas storage lease. The New Mexico Gas Storage Lease is a legal agreement that allows individuals or companies to utilize designated underground storage facilities within the state of New Mexico for the purpose of storing natural gas. These storage facilities are crucial for maintaining a stable supply of natural gas, as they can help balance the demand and supply during times of fluctuations in consumption or production. The New Mexico Gas Storage Lease offers lessees the right to use and access underground storage reservoirs located within the state boundaries for the storage of natural gas. These reservoirs are typically depleted oil or gas fields, or underground caverns specifically developed for storage purposes. The lease establishes the terms and conditions under which the lessee can operate, maintain, and store natural gas in these facilities. The New Mexico Gas Storage Lease is a legally binding document that details various vital aspects such as the lease term, storage capacity, operating rights, fees, and obligations of the parties involved. It defines the conditions under which the lessee can inject, store, and withdraw natural gas from the designated storage facilities. The lease agreement also outlines the responsibilities for maintaining the infrastructure, complying with safety regulations, and ensuring the integrity of the storage facilities. There are two main types of New Mexico Gas Storage Leases: 1. Depleted Fields Leases: These leases involve utilizing existing oil or gas fields that have been depleted and no longer produce economically viable amounts of hydrocarbons. The lessee can convert these fields into storage reservoirs, injecting natural gas during periods of low demand and withdrawing it when demand rises. 2. Underground Caverns Leases: These leases involve utilizing underground geological formations or caverns specifically developed for natural gas storage. Caverns are created by solution mining techniques, where the rock salt or other suitable materials are dissolved, leaving behind large underground cavities. These cavities can be used as secure storage facilities for natural gas. In summary, the New Mexico Gas Storage Lease establishes the terms and conditions for utilizing designated underground storage facilities within the state for the storage of natural gas. It plays a critical role in maintaining a stable natural gas supply and allows for balancing the demand and supply during varying consumption or production patterns. Different types of leases include depleted fields leases and underground caverns leases.

The New Mexico Gas Storage Lease is a legal agreement that allows individuals or companies to utilize designated underground storage facilities within the state of New Mexico for the purpose of storing natural gas. These storage facilities are crucial for maintaining a stable supply of natural gas, as they can help balance the demand and supply during times of fluctuations in consumption or production. The New Mexico Gas Storage Lease offers lessees the right to use and access underground storage reservoirs located within the state boundaries for the storage of natural gas. These reservoirs are typically depleted oil or gas fields, or underground caverns specifically developed for storage purposes. The lease establishes the terms and conditions under which the lessee can operate, maintain, and store natural gas in these facilities. The New Mexico Gas Storage Lease is a legally binding document that details various vital aspects such as the lease term, storage capacity, operating rights, fees, and obligations of the parties involved. It defines the conditions under which the lessee can inject, store, and withdraw natural gas from the designated storage facilities. The lease agreement also outlines the responsibilities for maintaining the infrastructure, complying with safety regulations, and ensuring the integrity of the storage facilities. There are two main types of New Mexico Gas Storage Leases: 1. Depleted Fields Leases: These leases involve utilizing existing oil or gas fields that have been depleted and no longer produce economically viable amounts of hydrocarbons. The lessee can convert these fields into storage reservoirs, injecting natural gas during periods of low demand and withdrawing it when demand rises. 2. Underground Caverns Leases: These leases involve utilizing underground geological formations or caverns specifically developed for natural gas storage. Caverns are created by solution mining techniques, where the rock salt or other suitable materials are dissolved, leaving behind large underground cavities. These cavities can be used as secure storage facilities for natural gas. In summary, the New Mexico Gas Storage Lease establishes the terms and conditions for utilizing designated underground storage facilities within the state for the storage of natural gas. It plays a critical role in maintaining a stable natural gas supply and allows for balancing the demand and supply during varying consumption or production patterns. Different types of leases include depleted fields leases and underground caverns leases.