As gas storage becomesincreasingly important in managing the nation's gas supplies, there is a need to develop more gas-storage reservoirs and to manage them more efficiently. Using computer reservoir simulation to rigorously predict gas-storage reservoir performance, we present specific procedures for efficient optimization of gas-storage reservoir performance for two different problems. The first is maximizing working gas volume and peak rates for a particular configuration of reservoir, well, and surface facilities. We present a new, simple procedure to determine the maximum performance with a minimal number of simulation runs. The second problem is minimizing the cost to satisfy a specific production and injection schedule, which is derived from the working gas volume and peak rate requirements. We demonstrate a systematic procedure to determine the optimum combination of cushion gas volume, compression horsepower, and number and locations of wells. The use of these procedures is illustrated through application to gas-reservoir data.