Bill Summary – FastDemocracy

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69th Legislature 2025                                                                                              LC 0532
                                     _____________ BILL NO. _____________
                   INTRODUCED BY _________________________________________________
                                          (Primary Sponsor)
           BY REQUEST OF THE DEPARTMENT OF NATURAL RESOURCES AND CONSERVATION
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  A BILL FOR AN ACT ENTITLED: “AN ACT PROVIDING FOR THE LEASE OF STATE LANDS FOR
  UNDERGROUND STORAGE OF GAS OR LIQUIFIED GAS; EXPANDING THE DEFINITION OF "GAS OR
  LIQUIFIED GAS" TO INCLUDE GREENHOUSE GASES; PROVIDING RULEMAKING AUTHORITY; AND
  AMENDING SECTIONS 77-3-501, 77-3-502, 77-3-505, AND 77-3-507, MCA.”
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  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MONTANA:
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          Section 1. Section 77-3-501, MCA, is amended to read:
          "77-3-501.   Lease for underground storage of natural gas or liquified gas authorized --
  definition. (1) The Subject to the Enabling Act, constitutional restrictions, and state law, the board is hereby
  authorized and empowered to lease, in such a manner and upon such on the terms as it may determine, not
  inconsistent with The Enabling Act and the constitution, state lands to which the title has vested in the state,
  subject to existing rights, for use for the underground storage of natural gasgas or liquified gas, as defined in
  subsection (3), upon the prescribed terms and conditions herein prescribed, to any natural gas public utility
  authorized to do business in this state and engaged in the business of transporting or distributing natural gas by
  means of pipelines into, within, or through this state for ultimate public use person or government agency
  qualified to engage in these activities pursuant to 82-11-181 through 82-11-184.
          (2)      State lands which that may be leased shall include lands in which that have the capability to
  store gas or liquified gas, or when the deposit of native gas shall have been is depleted, provided the lessee
  pays to the state the amount specified by the board for the native gas then remaining in the lands to be leased.
          (3)      As used in this chapter, "gas or liquified gas" means all natural gases, carbon dioxide,
  methane, nitrous oxide, fluorinated gases, other gaseous hydrocarbons, or the liquified state of these gases."
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          Section 2. Section 77-3-502, MCA, is amended to read:
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69th Legislature 2025                                                                                               LC 0532
          "77-3-502.    Rules. The Subject to the Enabling Act, constitutional restrictions, and state law, the board
  shall have has the power and authority to prescribe such rules and to do and perform all acts and things not
  inconsistent with The Enabling Act, the constitution, and the statutes of this state as it may deem necessary
  and proper relating to the leasing of state lands for the underground storage of natural gas or liquified gas and
  the sale of the gas remaining in state lands in a gas field wherein in which native gas deposits have been
  depleted."
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          Section 3. Section 77-3-505, MCA, is amended to read:
          "77-3-505.    Bond of lessees. A lessee under 77-3-501 shall furnish bond to the state in a form
  prescribed by the board and in an amount adequate to indemnify the state against loss, damage, or detriment
  by reason of failure of the lessee to fully discharge the obligations contained in any lease. No A bond in excess
  of $20,000 is may not be required under any one lease for the storage of gas or liquified gas."
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          Section 4.    Section 77-3-507, MCA, is amended to read:
          "77-3-507.    Lessee to prevent waste. (1) Leases All leases issued under the provisions of this part
  shall all be are subject to the conditions that the lessee in conducting the underground storage of natural gas or
  liquified gas shall use all reasonable precautions to prevent waste of oil or gas developed in the land or the
  entrance of water, through wells drilled to store natural gas or liquified gas, to the oil or gas sands or oil or gas
  bearing to oil-bearing or gas-bearing strata to the destruction or injury of oil or gas deposits.
          (2)      Violations A violation of any of these conditions shall constitute is grounds for the forfeiture of
  the lease after a hearing had thereon on the violation before the board."
                                                         - END -
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Statutes affected: 
LC Text: 77-3-501, 77-3-502, 77-3-505, 77-3-507