Doe Run Storage Field Closure

Doe Run Storage Field

Decades of service

LG&E’s Doe Run Storage Field was developed in 1946 and was the first successful aquifer natural gas storage field in the U.S. It is one of five underground natural gas storage fields operated by the company. LG&E uses its natural gas storage fields to store natural gas purchased during the summer season. The stored gas is withdrawn and used to serve customers during the winter season, which reduces the amount of gas that must be purchased during the colder months when gas is at a premium.

Time for change

While Doe Run has safely and reliably served customers across LG&E’s natural gas system for more than 75 years, the field requires significant investments to continue to be cost-effective. As a result, LG&E is closing the Doe Run Storage Field.

This closure project will include reducing the volume of natural gas in the storage field, plugging the 106 wells, and discontinuing the use of 35 miles of pipeline.

Safety is LG&E’s top priority. We have communicated this closure plan to all regulatory agencies and will complete this plan per all relevant state and federal regulations.   
 

Timeline

The closure project will begin in 2022 and continue through the end 2024. Impacted parties will receive communication regarding specifics of this project and how/when it affects them via mail.

FAQ

I have LG&E gas service and live near the storage field. Will I lose my gas service?

No. Closing the Doe Run Storage Field does not affect LG&E gas service.

When is the Doe Run Storage Field closing?

The closure project will begin in 2022 and continue through the end 2024. Impacted parties will receive communication regarding specifics of this project and how/when it affects them via mail.

How do storage fields help LG&E’s gas system?

LG&E's gas system serves more than 333,000 customers in 17 counties with over 4,788 miles of distribution and nearly 400 miles of transmission lines. A gas storage field is a deep underground formation and is commonly a depleted oil and/or natural gas field from years ago, deep aquifers, or salt cavern formations. LG&E uses underground formations to store natural gas, and this is a common practice across the state and the country. LG&E also has over 300 gas wells, which facilitate the injection and removal of gas, while others are for field observation and water-management purposes. After Doe Run closes, we will still have four other storage fields in our system.

What makes Doe Run Storage Field unique?

Doe Run Storage Field is a deep aquifer consisting of a porous limestone rock formation (450 to 600 feet underground). Doe Run, developed by LG&E in 1946, was the first successful aquifer natural storage field in the U.S. It encompasses parts of Meade County, Kentucky and Harrison County, Indiana.

How does the Storage Field Lease Program work?

As part of operating its five natural gas storage fields, LG&E leases the mineral rights to thousands of acres of land in Kentucky and Indiana. The properties the storage fields are located on have been leased by LG&E from property owners, and many of the original lease’s date back to the early 1940s.  Current property owners, subject to any prior deed limitations, are entitled to an annual lease payment in accordance with the lease terms. As a result of the closure of Doe Run Storage Field, leases associated with each property will be terminated in 2024 according to the provisions of the lease. A Release of Oil and Gas Lease will be filed with your county when Doe Run Storage Field closes.

Why did I not know about this when I bought the property?

Many of the leases were signed and recorded at the courthouse more than 75 years ago. As a result, a typical title search performed when purchasing a  property would not have discovered the presence of the mineral rights lease. LG&E makes reasonable efforts to notify property owners of the existence of the mineral rights lease.

Is closing a storage field safe?

Yes. According to the Energy Information Administration, about 120 entities currently operate nearly 400 underground storage facilities across the U.S. Retiring or closing natural gas storage facilities is a standard part of the life of the facility and its operation.

Throughout its history, LG&E has permanently closed four storage fields within its territory for various operational or economic reasons. Safety is LG&E’s top priority. Employees and contractors are trained on various safety procedures and a multifaceted plan is utilized to ensure the integrity and safety of our storage field operations.

How are property owners with mineral rights being notified?

Property owners who have a mineral right lease with LG&E will be getting a letter from the utility.

What kind of activities can I expect to see during the closure process?

For properties that contain above ground pipeline facilities or active wells, LG&E and/or its contractors will need to access your property for construction purposes. Well plugging and pipeline removal will require entrance and exit areas for large construction equipment (e.g., excavator, dump truck, well rigs, cement pump trucks). All above ground facilities will be removed, cutoff, and/or capped approximately three to five feet below grade, and the site will be restored to green space.

What is the process to plug a well?

A gas well is plugged and abandoned when it reaches the end of its useful life. Plugging activities are completed according to federal and state regulations. Plugging and abandoning operations of wells include:

  • Preparing the well site to ensure the well is safe to work around. 
  • Removing and salvaging available wellhead equipment. 
  • Placing cement plugs in the well and filling the well completely with cement from total depth to surface.
  • Cutting upper casing below grade and capping the well.
  • Restoring the land where the well site was to green space. 

What will remain after a well is plugged?

Federal and state regulations recommend certain steps for formal abandonment of both well and gas pipelines, including the disconnection, purging, and sealing of such facilities left in place. The regulations advise that all above ground facilities should be removed and cutoff a minimum of 3 feet below the surface. The plugging process typically disturbs an area less than a quarter acre.  The land will be restored to match surroundings (e.g., grass, agricultural field, gravel).

Doe Run Storage Field Well

Before: A well on the Doe Run Storage Field.

pipeline marker

After: The area will be returned to green space after a well is plugged. A pipeline marker could be added to the site, if needed.

Will there be restrictions on the land use after a well is plugged?

LG&E does have existing easements on some of the properties and those easements and related restrictions will continue to apply. LG&E discourages permanent structures over abandoned wells and recommends a 20-foot buffer when building. Before any excavation project, remember to contact 811 to locate underground utility lines.

Contact

For questions or more information on this closure, contact us via email or call 502-627-3637.