Tennessee Gas Storage Agreement and Lease (Surface and Underground)
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How to fill out Gas Storage Agreement And Lease (Surface And Underground)?
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FAQ
Natural gas is stored in large volumes in underground facilities and in smaller volumes in tanks above or below ground.
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.
Unlike underground facilities where the gas is injected in its current state, above ground storage facilities use a process called liquefaction to chill the gas until it changes to liquid.
Salt caverns are ideal for gas storage because the salt is impermeable, so the gas cannot escape. This proven technology, which is widely used for propane, natural gas, compressed air and other products, uses brine injection and removal to control propane inflow and outflow from the sealed, pressurized cavern.
It is most commonly held in inventory underground under pressure in three types of facilities. These underground facilities are depleted reservoirs in oil and/or natural gas fields, aquifers, and salt cavern formations.
A surface use agreement, which is also sometimes referred to as a land use agreement, is an agreement between the landowner and an oil and gas company or an operator for the use of the landowner's land in the development of the oil and gas.