§ 15-72-604 - Condemnation of subsurface strata or formations -- Limitations. - Arkansas Statutes

15-72-604. Condemnation of subsurface strata or formations -- Limitations.

(a) Any natural gas public utility may condemn for its use for the underground storage of natural gas any subsurface stratum or formation in any land which the Oil and Gas Commission shall have found to be suitable and in the public interest for the underground storage of natural gas and, in connection therewith, may condemn other interests in property as required to adequately examine, prepare, maintain, and operate the underground natural gas storage facilities. However, the right of condemnation of underground sands, formations, and strata granted hereby shall be limited as follows:

(1) If the commission affirmatively finds, based upon substantial evidence, that any sand, formation, or stratum is producing or is capable of producing oil, in paying quantities, through any known recovery method, then the sand, formation, or stratum shall not be subject to appropriation hereunder;

(2) No gas-bearing sand, formation, or stratum shall be subject to appropriation hereunder, unless the sand, formation, or stratum has a greater value or utility as a gas storage reservoir for the purpose of insuring an adequate supply of natural gas for any particular class or group of consumers of natural gas, or for the conservation of natural gas, than for the production of relatively small volumes of natural gas which remain therein. However, for as long as oil is produced in paying quantities in the secondary operations, no gas-bearing sand, formation, or stratum shall be condemned under the terms of this subchapter when the gas therein is being used for the secondary recovery of oil unless gas in a necessary and required amount is furnished to the operator or operators of the secondary recovery operations for the recovery of oil at the same cost as that at which the gas was being produced at the time of condemnation by the operator of the secondary recovery project or projects;

(3) Only the area of the underground sand, formation, or stratum as may reasonably be expected to be penetrated by gas displaced or injected into the underground gas storage reservoir may be appropriated hereunder; and

(4) No rights or interests in existing underground gas reservoirs being used for the injection, storage, and withdrawal of natural gas and owned or operated by others than the condemner shall be subject to appropriation hereunder.

(b) The right of condemnation granted in this section shall be without prejudice to the rights of the owner of the lands, or of other rights or interests therein, to drill or bore through the underground stratum or formation so appropriated in a manner as shall comply with orders, rules, and regulations of the commission issued for the purpose of protecting underground storage strata or formations against pollution and against the escape of natural gas therefrom and shall be without prejudice to the rights of the owner of the lands or other rights or interests therein as to all other uses.