IC 32-24-5
    Chapter 5. Eminent Domain for Gas Storage

IC 32-24-5-1
Subsurface strata or formations
    Sec. 1. Whereas, the storage of gas in subsurface strata orformations of the earth in Indiana tends to insure a more adequatesupply of gas to domestic, commercial, and industrial consumers ofgas in this state and materially promotes the economy of the state, thestorage of gas is declared to be in public interest and for the welfareof Indiana and the people of Indiana and to be a public use.
As added by P.L.2-2002, SEC.9.

IC 32-24-5-2
Persons entitled to exercise eminent domain; conditions precedent
    Sec. 2. (a) A person, firm, limited liability company, municipalcorporation, or other corporation authorized to do business in Indianaand engaged in the business of transporting or distributing gas bymeans of pipelines into, within, or through Indiana for ultimatepublic use may condemn:
        (1) land subsurface strata or formations;
        (2) other necessary land rights;
        (3) land improvements and fixtures, in or on land, exceptbuildings of any nature; and
        (4) the use and occupation of land subsurface strata orformations;
for constructing, maintaining, drilling, utilizing, and operating anunderground gas storage reservoir.
    (b) The following rights in land may be condemned for use inconnection with the underground storage of gas:
        (1) To drill and operate wells in and on land.
        (2) To install and operate pipelines.
        (3) To install and operate equipment, machinery, fixtures, andcommunication facilities.
        (4) To create ingress and egress to explore and examinesubsurface strata or underground formations.
        (5) To create ingress and egress to construct, alter, repair,maintain, and operate an underground storage reservoir.
        (6) To exclusively use any subsurface strata condemned.
        (7) To remove and reinstall pipe and other equipment used inconnection with rights condemned under subdivisions (1)through (6).
    (c) Acquisition of subsurface rights in land for gas storagepurposes by condemnation under this section must be withoutprejudice to any subsequent proceedings that may be necessary underthis section to acquire additional subsurface rights in the same landfor use in connection with the underground storage. Surface rights inland necessary for the accomplishment of the purposes set forth inthis section may be condemned.
    (d) Except with respect to a proceeding under this chapter to:        (1) acquire the right to explore and examine a subsurfacestratum or formation in land; and
        (2) create the right of ingress and egress for operationsconnected to the acquisition;
and subject to subsection (e), as a condition precedent to the exerciseof the right to condemn any underground stratum, formation, orinterest reasonably expected to be used or useful for underground gasstorage, a condemnor first must have acquired by purchase, option,lease, or other method not involving condemnation, the right, or rightupon the exercise of an option, if any, to store gas in at least sixty percent (60%) of the stratum or formation. This must be computed inrelation to the total surface acreage overlying the entire stratum orformation considered useful for the purpose.
    (e) A tract under which the stratum or formation sought to becondemned is owned by two (2) or more persons, firms, limitedliability companies, or corporations must be credited to thecondemnor as acquired by it for the purpose of computing thepercentage of acreage acquired by the condemnor in complying withthe requirement of subsection (d) if the condemnor acquires from theowner or owners of an undivided three-fourths (3/4) part or interestor more of the underground stratum or formation, by purchase,option, lease, or other method not involving condemnation, the right,or right upon the exercise of an option, if any, to store gas in thestratum or formation. It is not necessary for the condemnor to haveacquired any interest in the property in which the condemnee has aninterest before instituting a proceeding under this chapter.
As added by P.L.2-2002, SEC.9.

IC 32-24-5-3
Oil and gas leases; drilling into gas storage stratum
    Sec. 3. (a) The rights acquired by condemnation must be withoutprejudice to the rights and interests of the owners or their lessees to:
        (1) execute oil and gas leases;
        (2) drill or bore to any other strata or formation not condemned;and
        (3) produce oil and gas discovered.
However, any drilling and all operations in connection with thedrilling must be performed in a manner that protects the strata orformations condemned against the loss of gas and againstcontamination of the reservoir by water, oil, or other substance thatwill affect the use of the condemned strata or formations for gasstorage purposes.
    (b) If the owners of mineral rights or the owners' lessees drill intoland in which gas storage rights have been condemned under thischapter, the owners of mineral rights or their lessees shall give noticeto the owner of the gas storage stratum, formation, or horizon at leastthirty (30) days before commencing the drilling. The notice mustspecify the location and nature of the operations, including the depthto be drilled. The notice must be given by United States registered orcertified mail, return receipt requested, and addressed to the usual

business address of the owner or owners of the gas storage stratumor formation condemned under this chapter.
    (c) It is the duty of the owner of a gas storage stratum orformation to designate all necessary procedures for protecting the gasstorage area. The actual costs incurred over and above customary andusual drilling and other costs that would have been incurred withoutcompliance with the requirements shall be borne by the owner of thegas storage stratum or formation. An owner or lessee of mineralinterests other than gas storage rights is not responsible for an actdone under such a requirement or the consequences of this act.
As added by P.L.2-2002, SEC.9.

IC 32-24-5-4
Rights appropriated and condemned; compensation paid
    Sec. 4. Only the rights in land necessary for use in connectionwith underground storage of gas and those subsurface strataadaptable for underground storage of gas may be appropriated andcondemned under this chapter. Rights in the subsurface of landconstituting a part of a geological structure are deemed necessary tothe operation of an underground storage reservoir in the structure. Indetermining the compensation to be paid to the owner of an oilproducing stratum, or interest in the stratum, condemned under thischapter, proof may be offered and consideration must be given topotential recovery, if any, of oil from a stratum by secondary or othersubsequent recovery processes in addition to potential recovery bya primary process.
As added by P.L.2-2002, SEC.9.

IC 32-24-5-5
Authority to appropriate and condemn
    Sec. 5. The appropriation and condemnation of subsurface strataor formations in land rights in and easements in land and subsurfacestrata or formations authorized by this chapter must be made underIC 32-24-1.
As added by P.L.2-2002, SEC.9.