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Gas Storage Agreements 

Under gas storage agreements, federal lands can be used to store natural gas during periods of excess production so that supplies will be available to meet peak demands. 

Note:  Applications for gas storage agreements in Montana and North and South Dakota must be filed in the Montana State Office with the chief of the Reservoir Management and Operations Section.

Subsurface storage of oil and gas (43 CFR 3105.5)
Regulations governing the approval of subsurface storage of oil and gas

  • § 3105.5-1   Where filed.
    (a) Applications for subsurface storage shall be filed in the proper BLM office.
    (b) Enough copies of the final agreement signed by all the parties in interest shall be submitted to permit the retention of 5 copies by the Department after approval. 
  • § 3105.5-2   Purpose. 
    In order to avoid waste and to promote conservation of natural resources, the Secretary, upon application by the interested parties, may authorize the subsurface storage of oil and gas, whether or not produced from lands owned by the United States. Such authorization shall provide for the payment of such storage fee or rental on the stored oil or gas as may be determined adequate in each case, or, in lieu thereof, for a royalty other than that prescribed in the lease when such stored oil or gas is produced in conjunction with oil or gas not previously produced.
  • § 3105.5-3   Requirements.
    The agreement shall disclose the ownership of the lands involved, the parties in interest, the storage fee, rental or royalty offered to be paid for such storage and all essential information showing the necessity for such project. 
  • § 3105.5-4   Extension of lease term. 
    Any lease used for the storage of oil or gas shall be extended for the period of storage under an approved agreement. The obligation to pay annual lease rent continues during the extended period. 
  • This Manual Section provides standard forms, guidelines, and procedures for processing and approving agreements for subsurface storage of gas on public domain or acquired lands, leased or unleased, whether or not such gas is actually produced from these Federal lands. Final approval of contracts for the subsurface storage of gas involving only Indian lands is handled by the Bureau-of Indian Affairs (BIA). Guidance is also provided for supervision of operations, both under approved Federal agreements or Indian contracts.


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