Ohio 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. Ohio Natural Gas Storage Lease is an agreement between a property owner in Ohio and a natural gas storage company, granting the company the right to store natural gas on the property. This lease allows the company to utilize underground storage facilities to store natural gas for future use, ensuring a steady supply during periods of peak demand. The Ohio Natural Gas Storage Lease offers various types, including “Working Gas” and “Cycling Gas” leases. Each type caters to specific storage needs and requirements. 1. Working Gas Lease: This type of Ohio Natural Gas Storage Lease permits the operator to store and withdraw natural gas throughout the year. It provides a continuous supply of gas, ensuring stability in the market. Typically, a working gas lease is entered into for longer terms, ranging from months to several years, enabling ample time for the operator to cycle the gas in and out of the storage facility. 2. Cycling Gas Lease: A cycling gas lease is designed for shorter durations and is primarily utilized during periods of high natural gas demand. This lease allows the operator to inject gas during off-peak seasons and withdraw it during peak seasons. By doing so, it helps meet market demands during colder months when the need for natural gas surges. This type of lease is perfect for addressing seasonal fluctuations in natural gas consumption. Ohio's abundant underground natural gas storage capacity and favorable geology make it an ideal location for storage facilities. These storage facilities are often caverns, depleted gas reservoirs, or aquifer storage fields, with impressive capacities that can store billions of cubic feet of natural gas. The Ohio Natural Gas Storage Lease ensures that property owners are fairly compensated for providing access to their land for storage purposes. The lease agreement specifies the rent, term, rights, and responsibilities of both parties, outlining details on how the property will be utilized, maintained, and restored after the lease expires. Overall, the Ohio Natural Gas Storage Lease provides a mutually beneficial arrangement that allows the gas storage company to ensure a secure gas supply, while providing financial compensation to the property owner. It plays a vital role in meeting the energy needs of Ohio and the surrounding regions, contributing to a stable and reliable natural gas market.

Ohio Natural Gas Storage Lease is an agreement between a property owner in Ohio and a natural gas storage company, granting the company the right to store natural gas on the property. This lease allows the company to utilize underground storage facilities to store natural gas for future use, ensuring a steady supply during periods of peak demand. The Ohio Natural Gas Storage Lease offers various types, including “Working Gas” and “Cycling Gas” leases. Each type caters to specific storage needs and requirements. 1. Working Gas Lease: This type of Ohio Natural Gas Storage Lease permits the operator to store and withdraw natural gas throughout the year. It provides a continuous supply of gas, ensuring stability in the market. Typically, a working gas lease is entered into for longer terms, ranging from months to several years, enabling ample time for the operator to cycle the gas in and out of the storage facility. 2. Cycling Gas Lease: A cycling gas lease is designed for shorter durations and is primarily utilized during periods of high natural gas demand. This lease allows the operator to inject gas during off-peak seasons and withdraw it during peak seasons. By doing so, it helps meet market demands during colder months when the need for natural gas surges. This type of lease is perfect for addressing seasonal fluctuations in natural gas consumption. Ohio's abundant underground natural gas storage capacity and favorable geology make it an ideal location for storage facilities. These storage facilities are often caverns, depleted gas reservoirs, or aquifer storage fields, with impressive capacities that can store billions of cubic feet of natural gas. The Ohio Natural Gas Storage Lease ensures that property owners are fairly compensated for providing access to their land for storage purposes. The lease agreement specifies the rent, term, rights, and responsibilities of both parties, outlining details on how the property will be utilized, maintained, and restored after the lease expires. Overall, the Ohio Natural Gas Storage Lease provides a mutually beneficial arrangement that allows the gas storage company to ensure a secure gas supply, while providing financial compensation to the property owner. It plays a vital role in meeting the energy needs of Ohio and the surrounding regions, contributing to a stable and reliable natural gas market.