MontanaMontana proposal would allow qualified gas storage leases on state land
SB 81 died before enactment; it would have let qualified people and government agencies seek leases to store gas underground on suitable state land.
What it does
The proposal would let Montana lease state land for underground gas storage to people or government agencies who qualify under state law. If native gas remains in depleted land, the lessee would pay the amount set by the board.
A gas-storage lessee would have to provide a bond to cover losses if they fail to meet lease duties. The board could not require more than $20,000 for one lease.
During underground gas storage, lessees would have to take reasonable steps to prevent waste and keep water from damaging oil or gas deposits. After a hearing on a violation, the board could consider ending the lease.
Argument forQualified people and government agencies could seek state land for underground gas storage, including land that can hold gas or has depleted native gas deposits.
Argument againstThe $20,000 bond limit could leave the state with less financial protection if a lessee fails to meet lease obligations.
More detail
The board could lease eligible state land for underground gas storage. A person or government agency must qualify under sections 82-11-181 through 82-11-184. Eligible land must be capable of storing gas or have a depleted native gas deposit. “Gas or liquified gas” includes natural gases, carbon dioxide, methane, nitrous oxide, fluorinated gases, other gaseous hydrocarbons, and their liquified forms. The board must follow the Enabling Act, constitutional limits, and state law. If native gas remains in depleted land being leased, the lessee must pay the amount set by the board.
A lessee must provide a bond to cover the state’s losses if the lessee fails to meet lease duties. This applies to lessees under the state-land storage leases described in section 77-3-501. The board sets the bond’s form and amount, but may not require more than $20,000 for one gas-storage lease.
A lessee must take reasonable steps to prevent waste and keep water from damaging oil or gas deposits. These requirements apply to leases for underground storage of natural gas or liquified gas. A violation may be grounds for losing the lease after the board holds a hearing on that violation.
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Where it stands
- Introduced
- Died
Looking ahead
No hearings or votes scheduled.
History
- 2025
- May 23(S) Died in ProcessDied
- Mar 12(S) Missed Deadline for General Bill Transmittal
- Mar 7(S) 3rd Reading
- Vote recorded Do Pass. Result: fail.Upper
- Mar 7(S) Scheduled for 3rd ReadingMinor
- Mar 6(S) 2nd ReadingMinor
- Vote recorded Do Pass. Result: pass.Upper
- Vote recorded ReconsAction and place on Second Reading on 3/6/2025 -Kassmier. Result: pass.Upper
- Vote recorded Indefinitely Postpone -McGillvray. Result: pass.Upper
- Vote recorded Do Pass. Result: fail.Upper
- Mar 6(S) Scheduled for 2nd ReadingMinor
- Mar 6(S) Reconsidered Previous Action
- Mar 6(S) 2nd Reading Indefinitely PostponedMinor
- Mar 6(S) 2nd ReadingMinor
- Mar 4(S) Take from Committee; Place on 2nd Reading - (S) Energy, Technology & Federal RelationsMinor
- Vote recorded Take SB 81 from Comm-Kassmier. Result: pass.Upper
- Mar 1(S) Tabled in Committee - (S) Energy, Technology & Federal RelationsMinor
- Vote recorded to_table. Result: pass.Upper
- Feb 25(S) Hearing - (S) Energy, Technology & Federal Relations
- Jan 17(S) Hearing Canceled - (S) Energy, Technology & Federal Relations
- Jan 16(S) Hearing - (S) Energy, Technology & Federal Relations
- Jan 14(S) Referred to Committee - (S) Energy, Technology & Federal RelationsMinor
- Jan 10(S) Fiscal Note Printed
- Jan 10(S) Fiscal Note Unsigned
- Jan 6(S) 1st Reading
- 2024
- Dec 31(S) Fiscal Note ReceivedMinor
- Dec 30(S) Fiscal Note Requested
- Dec 27(S) Introduced
- Dec 27(LC) Draft Delivered to Requester
- Dec 18(LC) Draft Taken Off Hold
- Dec 18(LC) Draft On Hold
- Dec 10(LC) Draft Ready for Delivery
- Dec 10(LC) Draft in Assembly
- Dec 10(LC) Draft in Final Drafter Review
- Dec 9(LC) Draft in Input/Proofing
- Nov 29(LC) Draft in Edit
- Nov 29(LC) Draft in Legal Review
- Oct 9(LC) Drafter AssignedIntroduced
Environment & Energy