55-1207. Leasing of state-owned lands for underground storage of natural gas; conditions.
55-1207
55-1207. Leasing of state-owned lands for underground storage ofnatural gas; conditions.The director of the state department of administration, with theapproval of the state finance council, may lease to a person, firm orcorporation lands owned by the state of Kansas for the underground storageof natural gas by such person, firm or corporation. All such leases shallbe on such terms and conditions as the director of the state department ofadministration, with the approval of the state finance council, shallprescribe, except that every such leaseshall be for a period of20 years and as long assuch lands are actually used bythe lessee or its assignees for the underground storage of natural gas.Every such lease shall describe the subsurface stratum or formation insuchlands which is to be utilized for such storage. Any lease granted pursuantto the provisions of this section shall be without prejudice to the rightsof the state as the owner of such lands, or any lessee ofthe oil and gasrights thereof, to develop other subsurface strata or formations so leasedin such manner as will comply with existing or hereafter promulgated rulesand regulations of the state corporation commission issued for the purposeof protecting underground gas storage stratum or formation as provided byK.S.A. 55-1203, andamendments thereto.
All proceeds of such leases shall be remitted to thestatetreasurer in accordance with the provisions of K.S.A.75-4215, and amendments thereto. Upon receipt of each such remittance, thestate treasurershall deposit the entire amount in the state treasuryto the credit of the state general fund.The proceeds of any such leases which shall bederivedfrom the lease of lands which are held by the state of Kansas for the useand benefit of a state institution shall be kept by the state treasurer ina separate fund for the use and benefit of such stateinstitution underrules and regulations adopted by the state agency having control andmanagement of such state institution.
History: L. 1961, ch. 420, § 1;L. 2001, ch. 5, § 200; July 1.