Utah Gas Storage Agreement and Lease (Surface and Underground)

State:
Multi-State
Control #:
US-OG-1012
Format:
Word; 
Rich Text
Instant download

Description

This is an agreement and lease for surface and underground gas storage.
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FAQ

Natural Gas Storage - Storage Fields The working gas requirement is generally about 50% of the total reservoir capacity. Gas is withdrawn in winter season and injected in summer. This type of storage facility can be used for long system supply or peak day.

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.

The general process is to inject gas into the caverns using large compressors, then discharge the gas into the national grid. Due to the large pressure changes, significant temperature changes also occur and this adds a layer of complexity to the process.

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. Natural gas is also stored in liquid or gaseous form in above?ground tanks.

Compression is needed to prepare the working and cushion gases for underground storage. After compression, H2 and NG are injected into the subsurface through injection wells. Two gases are injected into this system: working gas and cushion gas. The working gas is H2/NG.

A unit agreement entails a BLM-approved agreement to cooperate in all facets of oil and gas production, without regard to lease boundaries and ownership. All unit agreements are subject to Onshore Oil and Gas Operations regulations (43 CFR Part 3160).

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Utah Gas Storage Agreement and Lease (Surface and Underground)