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What Is A Surface Lease Agreement

15Apr

You signed your oil and gas lease, and the company paid you your bonus. It`s great! All that remains to be done is to sit down and wait for the company to drill, so you can start getting royalties, right? For most people, that`s the way it is. But it`s not for you. Years later, a fellow oil and gas company knocks on your door and asks you to sign a land use contract that will allow them to build well padding on your farm. If you say “in no way,” it says that you have given them the right to do so if you have signed your lease, and they will do so with or without your cooperation. Any lease also requires that the mine operator have an agreement on human resource development, managed by the Department of Immigration and Continuing Vocational Training. These agreements focus on training opportunities in the North, employment and professional development. Respect legal restrictions when using. Although there are few legal restrictions on a mineral tenant`s right to use land, some protections should be known to the landowner. First, the purchaser has the right to use only the amount of “reasonably necessary” surface land to produce oil and gas from that specific lease (or pool if pooling has occurred). If the use is greater than reasonably necessary (i.e. the owner uses water from your land to produce oil and gas on another unsurnated land), this is not permitted. Second, the hosting doctrine protects a surface owner with use of the existing surface in certain situations.

More information can be found on this blog. Finally, the oil company has no right to be negligent, which means that it is subject to an appropriate operator standard. If any of these restrictions are violated, this may be a good opportunity for the surface owner to engage in a conversation about a surface-use agreement with the lessor, who would probably prefer to sign an agreement rather than face a dispute. Beware of a quid pro quo opportunity. Often, the mineral tenant requires the surface owner to do something that is not allowed in the rental agreement. For example, the oil and gas company may try to facilitate pipelines or facilitate the route through the property in order to obtain another leasing package. This is the ideal time to find a possible agreement on the use of the surface and look for favorable conditions. A Surface Use Agreement is a voluntary agreement between the surface owner and the owner/mineral tenant (usually an oil and gas company) that regulates relations between the two parties. In some countries, such as Oklahoma and New Mexico, oil and gas companies have a legal obligation to enter into these agreements before production begins.

In Texas, unfortunately, there is no legal protection for surface owners. Mineralpese is not obliged to enter into such an agreement, but it is often willing to do so in order to have good cooperation with the surface owner. In this context, owners of Texan surfaces must use any leverage to convince an oil company to enter into such an agreement. Request an operational meeting.