In this era of the Marcellus Shale, the right to drill for and produce oil and gas in Pennsylvania is well known as a valuable right that is the subject of thousands of oil and gas leases in the state. Less well known is the right to store gas under those same properties, but there are 41 federally certified natural gas storage fields in Pennsylvania, more than anywhere else in the country. Gas produced elsewhere is stored in shallow oil and gas formations, which were drilled and depleted decades ago.
These storage fields, each covering many square miles, are critical to meeting energy demands for heating and air conditioning, especially during periods of peak demand. Some leases, known as dual-purpose leases, convey both the right to produce and store native gas. These leases call for payment of a royalty on the native gas produced and a fixed rental fee on storage. Such leases provide for the lease to remain in effect so long as gas is produced or stored.
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