Non-payment for entrained NGLs in nat gas withdrawn from storage

Has anyone dealt with a situation where a underground gas storage operator injects pipeline quality gas into a depleted oil field used for storage, withdraws and delivers higher btu gas back to the pipeline, and fails to pay the royalty owners for the value of the entrained liquids swept and produced? Suggestions for further research welcome.

Answer will depend on all the facts and state law. If the gas was produced from your leased minerals and was reinjected back into the wells to increase pressure and long run production, then you would be owed royalties upon later production. If the gas is generated somewhere else and being stored in underground salt dome or cavern, the oil company or pipeline company will most likely have a storage lease with the surface owner and will not owe royalties to the mineral owner. In many states, the surface owner owns the depleted ‘pores’ or caverns and can lease that space. Same situation for salt water disposal wells where lease rights and compensation belongs to surface owner. You should start research with your state law.

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