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- Ninth Circuit Upholds Vacatur of Some Oil and Gas Leases
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Showing 1 post in Storage.
Some may be surprised to learn that the storage and production of natural gas do not always complement one another. A conflict can occur when one gas company stores its gas by injecting it back into the ground, typically into a depleted gas field. So long as gas pressure can be maintained underground, the depleted field provides a natural reservoir for storing gas. If areas of low pressure are created near the storage area, the stored gas tends to migrate toward these areas. The drilling for and extraction of natural gas can create such low pressure zones. Effectively, production activities near an underground storage area suck the gas away from where it is being stored. Read More »