§ 23-1301. Procedure for obtaining underground storage permit.

1. No underground reservoir shall be devoted to the storage of gas, or
liquefied petroleum gas unless the prospective operator of such storage
reservoir shall have received from the department, after approval in
writing of the state geologist, an underground storage permit which
shall be in full force. The application for said permit shall include
the following:

a. A map showing the location and boundaries of the proposed
underground storage reservoir.

b. A report containing sufficient data to show that the reservoir is
adaptable for storage purposes.

c. An affidavit signed by the prospective operator to the effect that
he has acquired by grant, lease or other agreement at least seventy-five
percent of the storage rights in said reservoir and in the buffer zone
established to protect the reservoir as approved by the department,
calculated on the basis of surface acreage; and such affidavit shall
also set forth that the applicant will agree as a condition to the
issuance of such permit that it will thereafter within a reasonable time
either acquire by negotiation, or file and proceed with condemnation
proceedings to acquire, any outstanding storage rights in the remaining
reservoir and buffer zone acreage.

d. Such other information as the department may require.

2. The permit shall be granted within ninety days of application
unless the department finds that the application and the information
submitted with it do not meet the requirements of this section. The
department may revoke or suspend any underground storage permit in force
hereunder for failure to comply with any of its provisions or for
failure to comply with subdivision 4 of this section.

3. Subdivisions 1 and 2 of this section shall not apply to underground
storage reservoirs or the storage of gas therein provided that such
reservoirs have been placed in operation prior to October 1, 1963 and so
long as such operation is not abandoned.

4. Every operator shall file with the department on or before December
31 of each year, a report with respect to each underground storage
reservoir operated by him showing any change in:

a. The estimated size in surface acreage or shape of the reservoir and
the buffer zone if any;

b. His estimate of total capacity of the reservoir;

c. His estimate of working capacity of the reservoir; and

d. Any other engineering, geological or operational data that may be
requested by the department.

5. The applicant for a permit for the following purposes shall submit
with his application the following fees:

a. for a new underground storage reservoir, a fee of ten thousand
dollars.

b. for a modification of the storage capacity of an existing
underground storage reservoir, a fee of five thousand dollars.

6. No permit issued hereunder and no provision of this article shall
be construed to diminish or impair the jurisdiction of the Public
Service Commission with respect to regulation of the manufacture,
transportation, distribution or sale of gas.