Senate Bill No. introduced by J. Kassmier, at the request of the Department of Natural Resources and Conservation, aims to authorize the leasing of state lands for the underground storage of gas or liquefied gas. The bill amends several sections of the Montana Code Annotated (MCA) to redefine the types of gases eligible for storage, including natural gases, carbon dioxide, methane, and other gaseous hydrocarbons. It establishes that the board is empowered to lease state lands for this purpose, subject to constitutional restrictions and state law, and specifies that the lessees must pay for any remaining native gas in the lands to be leased.

Additionally, the bill outlines the board's authority to create rules regarding the leasing process and the sale of gas remaining in depleted gas fields. It sets a bond requirement for lessees, limiting it to a maximum of $20,000 for the storage of gas or liquefied gas. The bill also emphasizes the lessee's responsibility to prevent waste during the storage process and establishes grounds for lease forfeiture in case of violations. Overall, the legislation seeks to modernize and expand the state's approach to underground gas storage while ensuring environmental protections and financial accountability.

Statutes affected:
LC Text: 77-3-501, 77-3-502, 77-3-505, 77-3-507
SB0081_1(1): 77-3-501, 77-3-502, 77-3-505, 77-3-507
SB0081_1(2): 77-3-501, 77-3-502, 77-3-505, 77-3-507
SB0081_1(3): 77-3-501, 77-3-502, 77-3-505, 77-3-507
SB0081_1: 77-3-501, 77-3-502, 77-3-505, 77-3-507