Section 38-25-07 - Permit requirements - Storage in salt cavernBefore issuing a permit for storage in a salt cavern, the commission shall find:
1. The storage operator has or will obtain the consent by lease, purchase, or other agreement from all surface owners where surface disturbance activities are necessary and surface facilities will be located.2. The storage operator has complied with all requirements set by the commission, including all necessary permits to conduct solution mining, if applicable.3. The storage facility is suitable and feasible for the injection, storage, and withdrawal of oil or gas.4. The storage operator has made a good-faith effort to obtain the consent of all persons that own the salt cavern's pore space.5. The storage operator has made a good-faith effort to obtain the consent of all persons that own the salt cavern's salt minerals and salt leases.6. The storage operator has obtained the consent of persons that own at least sixty percent of the salt cavern's pore space.7. The storage operator has obtained the consent of persons that own at least fifty-five percent of the salt cavern's salt minerals and salt leases.8. The proposed storage facility will not affect adversely surface waters or formations containing fresh water.9. The injected oil or gas will not escape from the salt cavern.10. The storage facility will not endanger health or unduly endanger the environment.11. The storage facility is in the public interest.12. The horizontal and vertical boundaries of the salt cavern are defined to include a buffer zone from the outer walls of the cavern for the purpose of ensuring the safe operation of the storage facility and to protect the storage facility against pollution, invasion, and escape or migration of gas therefrom.13. The storage operator will establish monitoring facilities and protocols to assess the location and migration of oil and gas, if any, injected for storage and to ensure compliance with all permit, statutory, and administrative requirements.14. The method of underground storage is reasonably necessary to effectively carry on the joint effort, will prevent waste, protect correlative rights of the mineral and surface estate, and, with reasonable probability, will result in the increased storage and recovery of more oil and gas.15. The time, conditions, and method by which the storage facility must be dissolved and the facility's affairs wound up. A storage facility may be dissolved ten years after the storage facility permit is issued upon a petition to the commission by the pore space owners and mineral owners that are credited with at least the percentage of interest of the pore space required to ratify the storage facility amalgamation agreement, and a subsequent hearing and order by the commission.16. That all nonconsenting owners are or will be equitably compensated.Added by S.L. 2021, ch. 277 (SB 2065),§ 3, eff. 8/1/2021.