57-605. Acquisition of property; conditions precedent; hearing; order; appeal.

Any condemner desiring to exercise the right of eminent domain as to any property for use for underground storage of natural gas or liquefied petroleum gas or both shall, as a condition precedent to the filing of its petition, obtain from the Nebraska Oil and Gas Conservation Commission a certificate setting out findings of the commission (1) that the underground stratum or formation sought to be acquired is not capable of producing oil in paying quantities by any generally accepted method, (2) that the field, if then capable of producing commercially recoverable native gas, must have been producing natural gas for at least ten years, (3) that the condemner has acquired by purchase or other voluntary means at least sixty percent of the ownership which has the right to grant the use of the underground stratum or formation sought to be acquired, computed in relation to the surface area overlying that part of the stratum or formation expected to be penetrated by displaced or injected gas, and that the volume of native gas originally in place in the underground stratum or formation sought to be acquired is forty percent depleted, (4) that the underground stratum or formation sought to be acquired is suitable for the underground storage of natural gas or liquefied petroleum gas or both, (5) the amount of commercially recoverable native gas, if any, remaining therein, and (6) in the event any recoverable native gas is found to remain therein, that its use for such purposes is in the public interest because the stratum or formation has a greater value or utility as an underground reservoir for the storage of natural gas or liquefied petroleum gas or both than for the production of the remaining volumes of native gas. Such finding shall not of itself be a basis for compensation to be paid to the condemnee. If at the time of the condemner's filing with the commission native gas from the underground reservoir is being used for the secondary recovery of oil, then gas in necessary and required amounts shall be furnished to the operator or operators of the secondary recovery operations at equivalent costs, for so long as oil is produced in paying quantities in the secondary recovery operations, but the amount of gas to be furnished hereunder shall not exceed the quantity of recoverable native gas found to exist in the reservoir at the time of its acquisition hereunder if such operator was or operators were at such time entitled to the whole thereof, but if it was or they were at such time entitled to less than the whole thereof, then not to exceed the quantity thereof to which such operator was or operators were then entitled. The commission shall issue no such certificate until after public hearing is had on application and upon reasonable notice to interested parties. The applicant shall be assessed and pay all the costs of the proceedings incurred with the commission. Any person having an interest in the property affected by a finding of the commission or the condemner may appeal the issuance or denial of certificate or from any finding as to the amount of commercially recoverable native gas, and the appeal shall be in accordance with the Administrative Procedure Act.

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