§ 3138.11 - Applications for a subsurface storage agreement.

§ 3138.11 How do I apply Applications for a subsurface storage agreement?

Cross Reference

Link to an amendment published at 89 FR 30987, Apr

.

23, 2024.

(a) You must submit an application to BLM An application for a subsurface storage agreement that includes—must include:

(1) The reason for forming a subsurface storage agreement;

(2) A description of the area you plan to include be included in the subsurface storage agreement;

(3) A description of the formation you plan to use be used for storage;

(4) The proposed storage fees or rentals. The fees or rentals must be based on the value of the subsurface storage, injection, and withdrawal volumes, and rental income or other income generated by the operator for letting or subletting the storage facilities;

(5) The payment of royalty for native oil or gas (oil or gas that exists in the formation before injection and that is produced when the stored oil or gas is withdrawn);

(6) A description of how often and under what circumstances you the operator and the BLM intend to renegotiate fees and payments;

(7) The proposed effective date and term of the subsurface storage agreement;

(8) Certification that all owners of mineral rights (leased or unleased) and lease interests have consented to the gas storage agreement in writing;

(9) An ownership schedule showing lease or land status;

(10) A schedule showing the participation factor for all parties to the subsurface storage agreement; and

(11) Supporting data (geologic maps showing the storage formation, reservoir data, etc.) demonstrating the capability of the reservoir for storage; and

(12) The processing fee found in the fee schedule in § 3000.120 of this chapter.

(b) The BLM will negotiate the terms of a subsurface storage agreement with youthe operator, including bonding, and reservoir management.

(c) The BLM may request documentation in addition to that which you provide the operator provides under paragraph (a) of this section.

[89 FR 30987, Apr. 23, 2024]