We know what to do to protect your property from unacceptable damage and protect you from the financial burden of repairing surface damage. The practical effect of this is that companies offer money when the owner of the surface signs a contract. Most of the time, this contract is a release and often it is a unilateral release that only benefits the energy company. First of all, I would like to point out that the best way to negotiate surface protection measures is to negotiate the oil and gas lease agreement between the oil company and the mine owner. This assumes that the owner of the surface owns some or all of the minerals and has a “seat at the table” during negotiations. The parties each have something that the other wants and a real negotiation can be conducted. Surface protection is best included as part of the actual lease. However, several times the mineral property has been “separated” from the surface, and the first time the surface owner knows that an oil and gas lease has been signed is when the oil company comes forward to develop the minerals. In these cases, a Surface user agreement is probably the best alternative.

* Search for rental conditions. If there are already regulations on oil and gas leasing that require compensation or protection for the owner of the surface, this is ideal. These provisions must be enforced and can provide the owner of the surface with a good starting point to demand appropriate compensation from the tenant. A surface use agreement is a voluntary agreement between the surface owner and the owner/lessee of the ore (usually an oil and gas company) that governs the relationship between the two parties. In some states, such as Oklahoma and New Mexico, oil and gas companies are required by law to enter into these agreements before starting production. In Texas, unfortunately, there is no such legal protection for surface owners. Mining tenants are not required to enter into such an agreement, but are often willing to do so in order to have a good working relationship with the owner of the surface. With that in mind, Texas surface owners must use every lever they have to convince an oil company to sign this type of agreement. By using this website, you agree to security monitoring and auditing. For security reasons and to ensure that the public service remains accessible to users, this government computer system uses network traffic monitoring programs to identify unauthorized attempts to upload or modify information, or otherwise cause damage, including attempts to deny service to users.

Not only are the lawyers at the landowners` firm very familiar with negotiating surface use contracts, but we also regularly handle surface damage cases in the jurisdictions in which we operate. We track companies because they use more space than reasonably necessary. * Beware of old abandoned equipment or potential contamination issues. If these types of problems exist, it could be a starting point for a discussion about the need for surface protection. If a surface owner is concerned about contamination or safety issues, they have the right to contact the Texas Railroad Commission and request an investigation/assessment of the situation. Knowing this, an oil and gas tenant may be more willing to work with a surface owner if these issues are present to avoid DRR involvement. An unsuspecting landowner who falls into the trap of looking for the most money cannot look closely at the contract. Landowners – and sometimes their non-landowner lawyers – may not think about solving problems such as hunting damage, damage to livestock, multiple holes on the same land, access roads, collection lines, drainage lines, drain lines, water, erosion, etc. This list goes on and on. It is crucial that all these issues are defined and that the contract you sign does not say anything like “all damages of any kind and character”. Over time, landowners have increasingly resisted the idea that companies can unilaterally define what is reasonable.

Legislators in some states have enacted surface damage laws to address competing interests in the development of mineral rights and the consequences of that development on the surface. Other States have not taken such measures and have decided the matter on a case-by-case basis. At LandownerFirm, our natural resources lawyers believe that the right course of action is to negotiate a fair land use agreement for both parties. A good surface use agreement clearly states the rights of each party. It defines and limits the scope of the version. It is executed by both parties and all conditions are clearly defined. Whether or not a state has a surface damage law, almost every company that wants to develop an area will try to negotiate surface damage so as not to argue in court over “proper use.” Under customary law, the owner or lessee of mineral rights has the right to use as much surface land as is “reasonably necessary” to develop those minerals. For many years, oil and gas companies took the position that “reasonably necessary” meant they could do whatever they wanted. * Request an operational meeting. In advance, it is a good idea to sit down with the tenant of the ore and hold a meeting to discuss operational issues. This includes things like access to doors, closed doors, working hours, etc. Some oil and gas companies believe that surface use agreements benefit both parties and are happy to negotiate with the surface owner to avoid any confrontation in the future.

The organization of a meeting allows the owner of the surface to determine the willingness of the tenant to cooperate. At the very least, a surface owner may be able to obtain maps and details about the scope of future operations on their property. * Look for a counterparty opportunity. Often, the mining tenant will require the surface owner to do something that is not authorized under the lease. For example, the oil and gas company may apply for a pipeline easement or a road easement above the property to reach another leased property. This is the perfect time to submit a potential surface use agreement and look for favorable conditions. * Be respectful and realistic. Since oil and gas companies are not required to sign a surface use agreement, surface owners are not in a good negotiating position. It`s important to keep this in mind when talking to the company and inquiring. By being respectful and realistic to the company representative regarding the conditions that should be included, it is much more likely that a surface owner will receive a surface use agreement.

* Respect the legal restrictions of use. While there are few legal restrictions on a mining tenant`s right to use surface property, there are certain guarantees that the landowner should be aware of. First, the tenant has the right to use only the amount of surface assets that is “reasonably necessary” to produce oil and gas from that particular lease (or pooling if pooling has occurred). If the use is greater than is reasonably necessary (i.e. The landowner uses the water on your property to produce oil and gas on another unpooled property), this is not allowed. Second, the doctrine of accommodation protects a surface owner who has already used a surface in certain situations. For more information, check out this blog. After all, the oil company does not have the right to act negligently – which means that it is bound by an appropriate operator standard. If any of these restrictions are violated, it can provide a good opportunity for the surface owner to start a conversation about a surface use agreement with the tenant, who would likely prefer to sign an agreement rather than face litigation. The lock is automatically unlocked while waiting 10 minutes. If you continue to exceed the SEC`s maximum allowable application rate during the expiration period, the duration of the expiration period will be extended. To ensure equitable access for all users, please reduce the rate of your requests and review SEC.gov after the 10-minute break expires.

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