Indiana § 32-24-5-3 - Oil and gas leases; drilling into gas storage stratum

§ 32-24-5-3. Oil and gas leases; drilling into gas storage stratum

Sec. 3. (a) The rights acquired by condemnation under this chapter 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.

[Pre-2002 Recodification Citation: 32-11-4-3.]

As added by P.L.2-2002, SEC.9. Amended by P.L.291-2019, SEC.14.