Pennsylvania Subsurface Underground Gas Storage Lease and Agreement (With Landowner; Long Form)
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FAQ
5 The summary of relevant case law below demonstrates that courts in Montana, Oklahoma, Louisiana, New York, Michigan, West Virginia, New Mexico, and California all recognize the surface owner's ownership of underground pore space for gas storage operations.
Hear this out loud PauseIn summary, landowners who own property own the air and the physical surface and subsurface (rocks, soil, and other immobile resources) as well as the fugitive resources that happen to be trapped in the rock pores of the physical property.
Under American rule, the mineral estate holder owns the minerals but not the geologic formation. The surface owner owns the geologic pore space and has storage rights.
Hear this out loud PauseThe Pore Lease Oil & gas leases normally contain provisions allowing the lessee to reinject produced gas and water. These lessors are the mineral owners. Depending upon the lease they granted to a lessee, the ?minerals? that lessees may produce are frequently limited to oil & gas.
Kentucky, on the other hand, appears to be an outlier that ties ownership of ?pore space? to the owner of the mineral rights. Many other states, like Indiana, have no case law directly addressing this issue.