Does anyone know how storage operators typically handle native gas title when converting a partially depleted field? Specifically the right to convert native gas to use as a permanent base. Is full title to the native gas usually acquired to achieve this?
Welcome to the forum.
One of the attorneys can speak up, but based upon our family’s experience, I believe we are still leased on the native (original gas in place that has not been produced) and are getting paid an annual storage fee for the gas storage that is not native and is used for injection, sales, etc.
You could read up on the Natural Gas Storage overview by FERC.
or the Texas Rules if you are in TX. Gas Storage Reporting
So they are paying to lease your native gas for use as a base in addition to pay to lease the pore space? That’s my understanding of what’s required but was hoping to find additional confirmation.
Some others on the forum may be able to confirm. We make a whopping $15.00 a year in rentals. In a state with low production and storage. And we have minimal acreage.