Federal Eminent Domain Blog

The Right Definition of Storage Gas?

Underground storage gas falls in two categories according to FERC. It is defined in the manner set below:

Working gas (top gas) - volume of gas in the reservoir above the designed level of cushion gas. If the conditions allow it, a percentage or all of the working gas capacity could be injected and withdrawn more than once during any season.

Cushion gas (base gas) - the volume of gas, including native gas, needed as a permanent inventory in a storage reservoir to maintain adequate reservoir pressure and deliverability rates throughout the withdrawal season.

http://www.ferc.gov/industries/gas/indus-act/storage/underground.asp

Given the changes created by fracking and other drilling methods, on must wonder whether the FERC definition still make sense.

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