Does anyone have any experience in oil and gas storage in empty salt brine caverns? We have been approached by a company that is interested in pumping brine out of salt caverns, removing minerals from the brine, and possibly using the caverns for storage of gas. I cannot find any information about comparable leases. Any information for such things would be greatly appreciated.
Thanks for the link. I think I read something very similar. What I really need to know is details related to structuring a mineral lease for gas storage purposes, not the actual operation. For instance, does the operator typically pay a monthly rent for use of the cavern? Or is it based on the cubic feet of gas being injected into the cavern or removed from the cavern? Or is it just a flat amount up front for the lease with no residual type of payments? What are issues as a mineral owner that I should be aware of and what would I want to ensure is written into a lease to protect my interest.
It would be very wise to consult with an attorney specializing in this sort of lease.
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