Senate Bill 2867

AN ACT TO AMEND SECTIONS 53-3-153 AND 53-3-155, MISSISSIPPI CODE OF 1972, TO CLARIFY THE AUTHORITY OF THE OIL AND GAS BOARD TO AUTHORIZE THE UNDERGROUND STORAGE OF NATURAL GAS, COMPRESSED AIR AND CARBON DIOXIDE; AND FOR RELATED PURPOSES.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:

SECTION 1. Section 53-3-153, Mississippi Code of 1972, is amended as follows:

53-3-153. The underground storage of natural gas or compressed air to promote the conservation thereof, to permit the building of large quantities of natural gas or compressed air in reserve for orderly withdrawal in periods of peak demand in order to make natural gas or compressed air more readily available to the consumer, to provide more uniform withdrawal from various gas or oil fields, to provide for the enhanced recovery of oil or gas, or to provide for long-term sequestration of carbon dioxide, is in the public interest and welfare of this state and is for a public purpose.

SECTION 2. Section 53-3-155, Mississippi Code of 1972, is amended as follows:

53-3-155. The use of an underground reservoir, stratum or formation as a reservoir for the storage of natural gas or compressed air as an appliance or appurtenance in connection with the conveying, transmission or distribution of natural gas or compressed air, enhanced recovery of oil or gas, or for long-term sequestration of carbon dioxide is hereby authorized, if the State Oil and Gas Board has first entered an order, after notice and hearing pursuant to the provisions of Sections 53-1-19 through 53-1-31, * * * approving the proposed underground storage of natural gas or compressed air upon finding as follows:

(a) That the underground stratum or formation sought to be used as a reservoir for the injection, storage and withdrawal of natural gas or compressed air is suitable and feasible for such use and in the public interest, and is not an oil reservoir capable of commercial production;

(b) That a majority interest of all rights of the surface interest and a majority interest of all interests in the underground stratum or formation have consented to the use in writing;

(c) That the use of the underground stratum as a reservoir for the storage of natural gas or compressed air will not contaminate other formations containing fresh water, oil, gas or other commercial mineral deposits; and

(d) That the proposed storage will not endanger lives or property.

SECTION 3. This act shall take effect and be in force from and after July 1, 2010.