WESTERN GAS TO PAY WOMAN $210,000 FOR STORAGE RIGHTS:

Western Gas to Pay Woman $210,000 for Storage Rights

The Katy Times

Western Gas Resources must pay a Katy-area resident $212,345 [???] for the right to store natural gas under her home located next door to the gas storage facility.

The condemnation lawsuit is the first of 152 condemnation cases brought by Western Gas for storage rights in the Fulshear Field formation, 7,000 feet below the earth's surface.  Western built a facility to reinject natural gas into the sandstone formation and use it as a storage facility.

"We are very grateful to the jury in believing our theory in the case," said Mark Breeding, the attorney representing Helen Grisham, the resident named in what defense attorneys think is the first-ever lawsuit in the state for underground storage rights.

Grisham's house, about 500 feet from Western's facility, is located two miles south of Katy.  Western had offered her $1,700, or $300 an acre, for storage rights under her property.

Breeding argued that Grisham's property had lost value and backed up that claim with testimony from an appraiser who said the value had been decreased 60 percent because of the Western facility.

The jury also heard testimony from a University of Houston professor who had conducted an opinion survey which found that 79 percent of the people questioned said they would not buy property on a storage reservoir.

Grishim [sic] testified that the facility flares gas, causing daytime-like light, and releases gas causing jet like noises and vibrations to her house.  She also said the facility emits gas odors.

Western Gas attorney, Walker Beavers said the use of land cannot add and then subtract value at the same time.

"You're saying that these storage rights are so valuable, please pay a lot of money for them," Beavers said, "then turn around and charge Western Gas for storage rights, because it reduced value of the rest of my property."

"I was very surprised (at the jury's verdict)," he said.  'The gas being stored beneath Mrs. Grishim's property will not blow up, it doesn't cause noise, it doesn't cause odors."

Beavers said the noises coming from the facility were only during the construction phase, and have now stopped.

"They tried to turn this condemnation case into a nuisance case and they succeeded," said Beavers.  "If they filed a nuisance case they couldn't have won it.  A nuisance has to be permanent in nature and this construction activity is temporary."

Beavers said Western legally had the right to condemn the property because of public need and necessity.

He said Western received a permit from Texas Railroad Commission, the Texas Air Quality Control Board and a special statute from the Texas legislature.

"Natural gas is the cleanest burning fuel you have," Beavers said.  "We want to encourage natural gas use.  The way to encourage it is to have it available."

He said Western will appeal the case, which will take one and a half to two years.