Bill > SB81

This bill revises the existing state law regarding the lease of state lands for underground gas storage, expanding the definition of storable gases and clarifying the authority of the state board to lease lands. Specifically, the bill broadens the scope of gases that can be stored underground to include not just natural gas, but also carbon dioxide, methane, nitrous oxide, fluorinated gases, and other gaseous hydrocarbons in both gaseous and liquified states. The legislation allows the state board to lease lands for underground gas storage to any qualified person or government agency, removing previous restrictions that limited leasing to natural gas public utilities. The bill maintains existing provisions requiring lessees to provide a bond (not exceeding $20,000) to protect the state against potential losses and mandates that lessees take reasonable precautions to prevent waste or damage to oil and gas deposits during storage operations. The amendments also clarify that these leasing activities must comply with the state's Enabling Act, constitutional restrictions, and existing state laws, providing a more flexible and comprehensive framework for underground gas storage on state lands.

Transportation and Infrastructure

https://bills.legmt.gov/#/laws/bill/2/LC0532