New Mexico Natural Gas Storage Lease

• Category: Oil Gas and Minerals - Leases
• State: Multi-State
• Control #: US-OG-1049
• Format: Word; Rich Text

Description

This form is a natural gas storage lease. New Mexico Natural Gas Storage Lease is a legal contract that provides individuals or companies with the rights to store natural gas in underground reservoirs within the state of New Mexico. This lease agreement grants the lessee access to designated areas for the purpose of storing natural gas, ensuring a stable and efficient supply for future usage or commercial purposes. The New Mexico Natural Gas Storage Lease allows lessees to store natural gas in various types of underground storage facilities. These include depleted oil and gas reservoirs, salt caverns, and aquifer reservoirs. Each storage type possesses specific characteristics and requirements, offering different advantages and limitations. 1. Depleted Oil and Gas Reservoirs: These storage facilities utilize previously depleted oil and gas reservoirs to store natural gas. Such reservoirs typically exist after hydrocarbon extraction, providing the advantage of preexisting infrastructure and geological stability. Lessees can inject natural gas into these reservoirs at high pressure, displacing the remaining hydrocarbons and effectively utilizing the existing infrastructure. 2. Salt Caverns: Salt caverns are created by solution mining in underground salt formations. These caverns offer natural gas storage opportunities due to their impermeable nature and large storage capacities. Lessees inject natural gas into the cavern, utilizing its natural pressure-resistant properties. Salt caverns provide rapid injection and withdrawal rates, making them highly desirable for peak usage demands. 3. Aquifer Reservoirs: Aquifer reservoirs involve converting underground water-bearing formations into natural gas storage facilities. These reservoirs allow gas storage through either displacement or adsorption mechanisms. The process involves injecting natural gas into the formation, displacing or adsorbing the water from its natural pore spaces. Aquifer storage offers vast capacities and is generally cost-effective. To obtain a New Mexico Natural Gas Storage Lease, interested parties must follow specific procedures, including submitting an application to the relevant regulatory authorities. The lease terms usually encompass the period of the lease, the location of the storage area, payment clauses, operational protocols, and compliance with environmental regulations. In conclusion, New Mexico Natural Gas Storage Lease offers lessees the opportunity to store natural gas in different types of underground reservoirs such as depleted oil and gas reservoirs, salt caverns, and aquifer reservoirs. These lease agreements ensure a reliable supply of natural gas, contributing to the stability and efficiency of New Mexico's energy sector.

New Mexico Natural Gas Storage Lease is a legal contract that provides individuals or companies with the rights to store natural gas in underground reservoirs within the state of New Mexico. This lease agreement grants the lessee access to designated areas for the purpose of storing natural gas, ensuring a stable and efficient supply for future usage or commercial purposes. The New Mexico Natural Gas Storage Lease allows lessees to store natural gas in various types of underground storage facilities. These include depleted oil and gas reservoirs, salt caverns, and aquifer reservoirs. Each storage type possesses specific characteristics and requirements, offering different advantages and limitations. 1. Depleted Oil and Gas Reservoirs: These storage facilities utilize previously depleted oil and gas reservoirs to store natural gas. Such reservoirs typically exist after hydrocarbon extraction, providing the advantage of preexisting infrastructure and geological stability. Lessees can inject natural gas into these reservoirs at high pressure, displacing the remaining hydrocarbons and effectively utilizing the existing infrastructure. 2. Salt Caverns: Salt caverns are created by solution mining in underground salt formations. These caverns offer natural gas storage opportunities due to their impermeable nature and large storage capacities. Lessees inject natural gas into the cavern, utilizing its natural pressure-resistant properties. Salt caverns provide rapid injection and withdrawal rates, making them highly desirable for peak usage demands. 3. Aquifer Reservoirs: Aquifer reservoirs involve converting underground water-bearing formations into natural gas storage facilities. These reservoirs allow gas storage through either displacement or adsorption mechanisms. The process involves injecting natural gas into the formation, displacing or adsorbing the water from its natural pore spaces. Aquifer storage offers vast capacities and is generally cost-effective. To obtain a New Mexico Natural Gas Storage Lease, interested parties must follow specific procedures, including submitting an application to the relevant regulatory authorities. The lease terms usually encompass the period of the lease, the location of the storage area, payment clauses, operational protocols, and compliance with environmental regulations. In conclusion, New Mexico Natural Gas Storage Lease offers lessees the opportunity to store natural gas in different types of underground reservoirs such as depleted oil and gas reservoirs, salt caverns, and aquifer reservoirs. These lease agreements ensure a reliable supply of natural gas, contributing to the stability and efficiency of New Mexico's energy sector.