Missouri Gas Storage Unit Agreement (Establish Unit on Depleted Producing Property)
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FAQ
In practice, a storage process needs a base gas (or cushion gas). Various gases can serve as base or cushion, including N2, CH4, or CO2, amongst others. The philosophy behind the necessity of the cushion gas is the need for retaining the reservoir pressure as the hydrogen is being withdrawn.
Natural gas, like most other commodities, can be stored for an indefinite period of time. The exploration, production, and transportation of natural gas takes time, and the natural gas that reaches its destination is not always needed right away, so it is injected into underground storage facilities.
Unit Agreement means any agreement for the development or operation of all or any portion of the Leased Lands with other lands as a single unit without regard to separate ownership and for the allocation of costs and benefits on a basis as defined in such agreement.
Base gas (or cushion gas) is the volume of natural gas intended as permanent inventory in a storage reservoir to maintain adequate pressure and deliverability rates throughout the withdrawal season. Working gas capacity refers to total gas storage capacity minus base gas.
The working gas volume (WGV) is the amount of natural gas that can be injected, stored and withdrawn during the normal commercial operation of a natural gas storage facility.
Working gas (working gas volume) is the gas volume which can be withdrawn from a storage facility during an autumn-winter period and injected back into the storage during the spring-summer period.
There are three principal types ? depleted gas reservoirs, aquifer reservoirs and salt cavern reservoirs. Each of these types has distinct physical and economic characteristics which govern the suitability of a particular type of storage type for a given application.
Cushion gas is the amount of gas that is permanently stored in a natural gas storage. The main function is to maintain sufficient pressure in the storage to allow for adequate injection and withdrawal rates at all times. Another name for this type of gas is base gas.