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Underground Gas Storage Permitting Process

No underground reservoir shall be devoted to the storage of gas, liquefied petroleum gas, oil, petroleum products or petroleum byproducts unless the prospective operator of such storage reservoir shall have received from the Department, after approval in writing from the State Geologist, an underground storage permit which shall be in full force.

In the application for an underground storage permit, the following information must be submitted:

  1. An Organizational Report.
  2. Financial security form for all wells involved in storage. This includes idled or inactive wells.
  3. Request for Well Transfer form. This must be submitted if the operator is taking over wells for storage from other operators.
  4. A completed full Environmental Assessment Form (EAF).
  5. A map showing the location and boundaries of the proposed underground storage reservoir. Reservoir and buffer zone limits are to be shown. All storage wells and plugged and abandoned wells are to be indicated.
  6. A report detailing the reservoir's suitability for storage. This report should contain all testing and analysis specific to design and operation of the storage reservoir in order to demonstrate that the stored product, whether natural gas or liquefied petroleum gas (LPG), can be handled and confined without impact to public health and safety and the environment. The Department recommends convening a pre-application conference with the applicant to focus the content of the report.
  7. A Well Status and Condition Report for each well drilled in the proposed storage area (Reservoir and Buffer Zone).
  8. An affidavit signed by the operator that the operator has acquired at least 75 percent of the storage rights in the reservoir and buffer zone. The applicant will further agree as a condition to the issuance of the permit that it will acquire the remaining 25 percent storage rights in the reservoir and buffer zone.
  9. A permit application fee. For new facilities, the fee is $10,000. For modifications to storage capacity, the fee is $5,000.

Any increase in the storage capacity of the reservoir will require an underground storage modification permit. An increase in storage capacity by physical enlargement of an individual cavern requires a modification permit as does creation of additional storage capacity through an increase in the permitted maximum storage pressure. Conversion from storage of LPG to storage of natural gas within the same reservoir requires submission of a new underground storage permit application.

More about Underground Gas Storage Permitting Process:

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