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 or
formations of the earth in Indiana tends to insure a more adequate
supply of gas to domestic, commercial, and industrial consumers of
gas in this state and materially promotes the economy of the state, the
storage of gas is declared to be in public interest and for the welfare
of 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, municipal
corporation, or other corporation authorized to do business in Indiana
and engaged in the business of transporting or distributing gas by
means of pipelines into, within, or through Indiana for ultimate
public use may condemn:
(1) land subsurface strata or formations;
(2) other necessary land rights;
(3) land improvements and fixtures, in or on land, except
buildings of any nature; and
(4) the use and occupation of land subsurface strata or
formations;
for constructing, maintaining, drilling, utilizing, and operating an
underground gas storage reservoir.
(b) The following rights in land may be condemned for use in
connection 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, and
communication facilities.
(4) To create ingress and egress to explore and examine
subsurface 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 in
connection with rights condemned under subdivisions (1)
through (6).
(c) Acquisition of subsurface rights in land for gas storage
purposes by condemnation under this section must be without
prejudice to any subsequent proceedings that may be necessary under
this section to acquire additional subsurface rights in the same land
for use in connection with the underground storage. Surface rights in
land necessary for the accomplishment of the purposes set forth in
this section may be condemned.
(d) Except with respect to a proceeding under this chapter to:
(1) acquire the right to explore and examine a subsurface
stratum or formation in land; and
(2) create the right of ingress and egress for operations
connected to the acquisition;
and subject to subsection (e), as a condition precedent to the exercise
of the right to condemn any underground stratum, formation, or
interest reasonably expected to be used or useful for underground gas
storage, a condemnor first must have acquired 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 at least sixty per
cent (60%) of the stratum or formation. This must be computed in
relation to the total surface acreage overlying the entire stratum or
formation considered useful for the purpose.
(e) A tract under which the stratum or formation sought to be
condemned is owned by two (2) or more persons, firms, limited
liability companies, or corporations must be credited to the
condemnor as acquired by it for the purpose of computing the
percentage of acreage acquired by the condemnor in complying with
the requirement of subsection (d) if the condemnor acquires from the
owner or owners of an undivided three-fourths (3/4) part or interest
or 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 the
stratum or formation. It is not necessary for the condemnor to have
acquired any interest in the property in which the condemnee has an
interest 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 without
prejudice 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 the
drilling must be performed in a manner that protects the strata or
formations condemned against the loss of gas and against
contamination of the reservoir by water, oil, or other substance that
will affect the use of the condemned strata or formations for gas
storage purposes.
(b) If the owners of mineral rights or the owners' lessees drill into
land in which gas storage rights have been condemned under this
chapter, the owners of mineral rights or their lessees shall give notice
to the owner of the gas storage stratum, formation, or horizon at least
thirty (30) days before commencing the drilling. The notice must
specify the location and nature of the operations, including the depth
to be drilled. The notice must be given by United States registered or
certified mail, return receipt requested, and addressed to the usual
business address of the owner or owners of the gas storage stratum
or formation condemned under this chapter.
(c) It is the duty of the owner of a gas storage stratum or
formation to designate all necessary procedures for protecting the gas
storage area. The actual costs incurred over and above customary and
usual drilling and other costs that would have been incurred without
compliance with the requirements shall be borne by the owner of the
gas storage stratum or formation. An owner or lessee of mineral
interests other than gas storage rights is not responsible for an act
done 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 connection
with underground storage of gas and those subsurface strata
adaptable for underground storage of gas may be appropriated and
condemned under this chapter. Rights in the subsurface of land
constituting a part of a geological structure are deemed necessary to
the operation of an underground storage reservoir in the structure. In
determining the compensation to be paid to the owner of an oil
producing stratum, or interest in the stratum, condemned under this
chapter, proof may be offered and consideration must be given to
potential recovery, if any, of oil from a stratum by secondary or other
subsequent recovery processes in addition to potential recovery by
a 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 strata
or formations in land rights in and easements in land and subsurface
strata or formations authorized by this chapter must be made under
IC 32-24-1. As added by P.L.2-2002, SEC.9.
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 or
formations of the earth in Indiana tends to insure a more adequate
supply of gas to domestic, commercial, and industrial consumers of
gas in this state and materially promotes the economy of the state, the
storage of gas is declared to be in public interest and for the welfare
of 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, municipal
corporation, or other corporation authorized to do business in Indiana
and engaged in the business of transporting or distributing gas by
means of pipelines into, within, or through Indiana for ultimate
public use may condemn:
(1) land subsurface strata or formations;
(2) other necessary land rights;
(3) land improvements and fixtures, in or on land, except
buildings of any nature; and
(4) the use and occupation of land subsurface strata or
formations;
for constructing, maintaining, drilling, utilizing, and operating an
underground gas storage reservoir.
(b) The following rights in land may be condemned for use in
connection 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, and
communication facilities.
(4) To create ingress and egress to explore and examine
subsurface 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 in
connection with rights condemned under subdivisions (1)
through (6).
(c) Acquisition of subsurface rights in land for gas storage
purposes by condemnation under this section must be without
prejudice to any subsequent proceedings that may be necessary under
this section to acquire additional subsurface rights in the same land
for use in connection with the underground storage. Surface rights in
land necessary for the accomplishment of the purposes set forth in
this section may be condemned.
(d) Except with respect to a proceeding under this chapter to:
(1) acquire the right to explore and examine a subsurface
stratum or formation in land; and
(2) create the right of ingress and egress for operations
connected to the acquisition;
and subject to subsection (e), as a condition precedent to the exercise
of the right to condemn any underground stratum, formation, or
interest reasonably expected to be used or useful for underground gas
storage, a condemnor first must have acquired 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 at least sixty per
cent (60%) of the stratum or formation. This must be computed in
relation to the total surface acreage overlying the entire stratum or
formation considered useful for the purpose.
(e) A tract under which the stratum or formation sought to be
condemned is owned by two (2) or more persons, firms, limited
liability companies, or corporations must be credited to the
condemnor as acquired by it for the purpose of computing the
percentage of acreage acquired by the condemnor in complying with
the requirement of subsection (d) if the condemnor acquires from the
owner or owners of an undivided three-fourths (3/4) part or interest
or 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 the
stratum or formation. It is not necessary for the condemnor to have
acquired any interest in the property in which the condemnee has an
interest 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 without
prejudice 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 the
drilling must be performed in a manner that protects the strata or
formations condemned against the loss of gas and against
contamination of the reservoir by water, oil, or other substance that
will affect the use of the condemned strata or formations for gas
storage purposes.
(b) If the owners of mineral rights or the owners' lessees drill into
land in which gas storage rights have been condemned under this
chapter, the owners of mineral rights or their lessees shall give notice
to the owner of the gas storage stratum, formation, or horizon at least
thirty (30) days before commencing the drilling. The notice must
specify the location and nature of the operations, including the depth
to be drilled. The notice must be given by United States registered or
certified mail, return receipt requested, and addressed to the usual
business address of the owner or owners of the gas storage stratum
or formation condemned under this chapter.
(c) It is the duty of the owner of a gas storage stratum or
formation to designate all necessary procedures for protecting the gas
storage area. The actual costs incurred over and above customary and
usual drilling and other costs that would have been incurred without
compliance with the requirements shall be borne by the owner of the
gas storage stratum or formation. An owner or lessee of mineral
interests other than gas storage rights is not responsible for an act
done 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 connection
with underground storage of gas and those subsurface strata
adaptable for underground storage of gas may be appropriated and
condemned under this chapter. Rights in the subsurface of land
constituting a part of a geological structure are deemed necessary to
the operation of an underground storage reservoir in the structure. In
determining the compensation to be paid to the owner of an oil
producing stratum, or interest in the stratum, condemned under this
chapter, proof may be offered and consideration must be given to
potential recovery, if any, of oil from a stratum by secondary or other
subsequent recovery processes in addition to potential recovery by
a 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 strata
or formations in land rights in and easements in land and subsurface
strata or formations authorized by this chapter must be made under
IC 32-24-1. As added by P.L.2-2002, SEC.9.
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 or
formations of the earth in Indiana tends to insure a more adequate
supply of gas to domestic, commercial, and industrial consumers of
gas in this state and materially promotes the economy of the state, the
storage of gas is declared to be in public interest and for the welfare
of 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, municipal
corporation, or other corporation authorized to do business in Indiana
and engaged in the business of transporting or distributing gas by
means of pipelines into, within, or through Indiana for ultimate
public use may condemn:
(1) land subsurface strata or formations;
(2) other necessary land rights;
(3) land improvements and fixtures, in or on land, except
buildings of any nature; and
(4) the use and occupation of land subsurface strata or
formations;
for constructing, maintaining, drilling, utilizing, and operating an
underground gas storage reservoir.
(b) The following rights in land may be condemned for use in
connection 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, and
communication facilities.
(4) To create ingress and egress to explore and examine
subsurface 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 in
connection with rights condemned under subdivisions (1)
through (6).
(c) Acquisition of subsurface rights in land for gas storage
purposes by condemnation under this section must be without
prejudice to any subsequent proceedings that may be necessary under
this section to acquire additional subsurface rights in the same land
for use in connection with the underground storage. Surface rights in
land necessary for the accomplishment of the purposes set forth in
this section may be condemned.
(d) Except with respect to a proceeding under this chapter to:
(1) acquire the right to explore and examine a subsurface
stratum or formation in land; and
(2) create the right of ingress and egress for operations
connected to the acquisition;
and subject to subsection (e), as a condition precedent to the exercise
of the right to condemn any underground stratum, formation, or
interest reasonably expected to be used or useful for underground gas
storage, a condemnor first must have acquired 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 at least sixty per
cent (60%) of the stratum or formation. This must be computed in
relation to the total surface acreage overlying the entire stratum or
formation considered useful for the purpose.
(e) A tract under which the stratum or formation sought to be
condemned is owned by two (2) or more persons, firms, limited
liability companies, or corporations must be credited to the
condemnor as acquired by it for the purpose of computing the
percentage of acreage acquired by the condemnor in complying with
the requirement of subsection (d) if the condemnor acquires from the
owner or owners of an undivided three-fourths (3/4) part or interest
or 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 the
stratum or formation. It is not necessary for the condemnor to have
acquired any interest in the property in which the condemnee has an
interest 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 without
prejudice 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 the
drilling must be performed in a manner that protects the strata or
formations condemned against the loss of gas and against
contamination of the reservoir by water, oil, or other substance that
will affect the use of the condemned strata or formations for gas
storage purposes.
(b) If the owners of mineral rights or the owners' lessees drill into
land in which gas storage rights have been condemned under this
chapter, the owners of mineral rights or their lessees shall give notice
to the owner of the gas storage stratum, formation, or horizon at least
thirty (30) days before commencing the drilling. The notice must
specify the location and nature of the operations, including the depth
to be drilled. The notice must be given by United States registered or
certified mail, return receipt requested, and addressed to the usual
business address of the owner or owners of the gas storage stratum
or formation condemned under this chapter.
(c) It is the duty of the owner of a gas storage stratum or
formation to designate all necessary procedures for protecting the gas
storage area. The actual costs incurred over and above customary and
usual drilling and other costs that would have been incurred without
compliance with the requirements shall be borne by the owner of the
gas storage stratum or formation. An owner or lessee of mineral
interests other than gas storage rights is not responsible for an act
done 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 connection
with underground storage of gas and those subsurface strata
adaptable for underground storage of gas may be appropriated and
condemned under this chapter. Rights in the subsurface of land
constituting a part of a geological structure are deemed necessary to
the operation of an underground storage reservoir in the structure. In
determining the compensation to be paid to the owner of an oil
producing stratum, or interest in the stratum, condemned under this
chapter, proof may be offered and consideration must be given to
potential recovery, if any, of oil from a stratum by secondary or other
subsequent recovery processes in addition to potential recovery by
a 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 strata
or formations in land rights in and easements in land and subsurface
strata or formations authorized by this chapter must be made under
IC 32-24-1. As added by P.L.2-2002, SEC.9.
