§22. Underground storage of natural gas, liquid hydrocarbons, and carbon dioxide
A. The underground storage of natural gas, liquid hydrocarbons, and carbon
dioxide which promotes conservation of natural gas or liquid hydrocarbons, or which
permits the building of large quantities of natural gas or liquid hydrocarbons in reserve
for orderly withdrawal in periods of peak demand, making natural gas or liquid
hydrocarbons more readily available to the consumer, or which provides more uniform
withdrawal from various gas or oil fields, each is in the public interest and for a public
purpose.
B. Prior to the use of any underground reservoir for the storage of natural gas and
prior to the exercise of eminent domain by any person, firm, or corporation having such
right under laws of the state of Louisiana, and as a condition precedent to such use or to
the exercise of such rights of eminent domain, the secretary, after public hearing pursuant
to the provisions of R.S. 30:6, shall have found all of the following:
(1) That the underground reservoir sought to be used for the injection, storage, and
withdrawal of natural gas is suitable and feasible for such use, provided no reservoir, any
part of which is producing or is capable of producing oil in paying quantities, shall be
subject to such use, unless all owners in such underground reservoir have agreed thereto,
and no reservoir shall be subject to such use (a) unless the volumes of original reservoir
gas and condensate content therein which are capable of being produced in paying
quantities have all been produced; or (b) unless such reservoir has a greater value or
utility as an underground reservoir for gas storage than for the production of the
remaining volumes of original reservoir natural gas and condensate content, and at least
three-fourths of the owners, in interest, exclusive of any "lessor" defined in R.S. 30:148.1,
have consented to such use in writing.
(2) That the use of the underground reservoir for the storage of natural gas will not
contaminate other formations containing fresh water, oil, gas, or other commercial
mineral deposits.
(3) That the proposed storage will not endanger lives or property.
C. Prior to the use of any underground reservoir for the storage of liquid
hydrocarbons or carbon dioxide, the secretary, after public hearing pursuant to the
provisions of R.S. 30:6, shall have found all of the following:
(1) That the underground reservoir sought to be used for the injection, storage, and
withdrawal of liquid hydrocarbons or carbon dioxide is suitable and feasible for such use,
provided no reservoir, any part of which is producing or is capable of producing oil in
paying quantities, shall be subject to such use, unless all owners in such underground
reservoir have agreed thereto, and no reservoir shall be subject to such use (a) unless the
volumes of original reservoir gas and condensate content therein which are capable of
being produced in paying quantities have all been produced; or (b) unless such reservoir
has a greater value or utility as an underground reservoir for gas storage than for the
production of the remaining volumes of original reservoir natural gas and condensate
content, and at least three-fourths of the owners, in interest, exclusive of any "lessor"
defined in R.S. 30:148.1, have consented to such use in writing.
(2) That the use of the underground reservoir for the storage of liquid
hydrocarbons or carbon dioxide will not contaminate other formations containing fresh
water, oil, gas, or other commercial mineral deposits.
(3) That the proposed storage will not endanger lives or property.
D. The secretary shall determine with respect to any such underground reservoir
proposed to be used as a storage reservoir, whether or not such reservoir is fully depleted
of the original commercially recoverable natural gas, condensate, or liquid hydrocarbon
content therein. If the secretary finds that such reservoir has not been fully depleted, the
secretary shall determine the amount of the remaining commercially recoverable natural
gas, condensate, or liquid hydrocarbon content of such reservoir.
E. The secretary may issue any necessary order providing that all natural gas,
liquid hydrocarbons, or carbon dioxide which has previously been reduced to possession
and which is subsequently injected into an underground storage reservoir shall at all times
be deemed the property of the injector, his successors and assigns; and in no event shall
such gas, liquid hydrocarbons, or carbon dioxide be subject to the right of the owner of
the surface of the lands or of any mineral interest therein under which such underground
storage reservoir shall lie or be adjacent to or of any person other than the injector, his
successors, and assigns to produce, take, reduce to possession, waste, or otherwise
interfere with or exercise any control thereover, provided that the injector, his successors,
and assigns shall have no right to gas or liquid hydrocarbons in any stratum or portion
thereof not determined by the secretary to constitute an approved underground storage
reservoir. The secretary shall issue such orders, rules, and regulations as may be necessary
for the purpose of protecting any such underground storage reservoir, strata, or formations
against pollution or against the escape of natural gas, liquid hydrocarbons, or carbon
dioxide therefrom, including such necessary rules and regulations as may pertain to the
drilling into or through such underground storage reservoir.
Added by Acts 1962, No. 190, §1; Acts 2008, No. 315, §1; Acts 2025, No. 458,
§1, eff. October 1, 2025.