Underground Gas Storage
New York requires storage operators to apply for and receive an underground gas storage permit from DEC. Any reservoir devoted to the storage of gas, liquefied petroleum gas, oil, petroleum products or petroleum byproducts requires a permit.
Storage reservoirs that have been in operation prior to October 1, 1963, and have not been abandoned since then, do not require a storage permit. They must remain in compliance with all other applicable rules and regulations.
Underground Gas Storage Permit
DEC recommends a pre-application meeting with prospective storage operators before submitting an application. An underground storage permit application must include the following information:
- An Organizational Report.
- A Financial security form for all wells involved in storage. This includes idled or inactive wells.
- A Request for Well Transfer form. This must be submitted if the operator is taking over wells for storage from other operators.
- A completed full Environmental Assessment Form (EAF).
- A map showing the location and boundaries of the proposed underground storage reservoir. Reservoir and buffer zone limits are to be shown. All storage wells and plugged and abandoned wells are to be indicated.
- A report detailing the reservoir's suitability for storage. This report should contain all testing and analysis specific to design and operation of the storage reservoir in order to demonstrate that the stored product, whether natural gas or liquefied petroleum gas (LPG), can be handled and confined without impact to public health and safety and the environment. The Department recommends convening a pre-application conference with the applicant to focus the content of the report.
- A Well Status and Condition Report for each well drilled in the proposed storage area (Reservoir and Buffer Zone).
- An affidavit signed by the operator that the operator has acquired at least 75 percent of the storage rights in the reservoir and buffer zone. The applicant will further agree as a condition to the issuance of the permit that it will acquire the remaining 25 percent storage rights in the reservoir and buffer zone.
- A permit application fee. For new facilities, the fee is $10,000. For modifications to storage capacity, the fee is $5,000.
Underground Gas Storage Modification Permit
Any increase in the maximum storage capacity of an existing reservoir requires an underground storage modification permit. The application requirements are similar to those listed above, but may vary depending on facility operations and whether additional wells or acreage are proposed as part of the capacity increase. Storage operators should contact DEC to determine which of the above items will be required in an application for a modification permit.
Converting a reservoir to store a product type that is substantially different than what has been previously authorized, whether by permit or grandfathering, is not considered a modification. This requires submission of a new underground storage permit application.
Transfer of Existing Underground Storage Permit and Pending Storage Application
The Application for Transfer of Underground Storage Permit and Application for Transfer of Pending Underground Storage Application form (PDF) (222 KB, Legal paper size) and its instructions (PDF) (136 KB) are used to facilitate transfer of an existing storage permit or modification permit, or a pending application for a storage permit or modification permit, from an existing permit holder or applicant (Transferor) to a responsible party for operations or project development (Transferee).
DMN, Bureau of Oil and Gas Regulation
625 Broadway
Albany, NY 12233
