Sample Surface Use Agreement

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The landowner should consult a lawyer familiar with oil and gas issues in order to protect the landowner and his land and obtain additional compensation for the surface use of his country. * Look for rental clauses. If there are already provisions in oil and gas leasing that require compensation or protection for the surface owner, this is ideal. These provisions should be applied and can give the owner on the surface a good starting point to claim compensation from the lessee. * Watch for old abandoned devices or possible contamination issues. If such problems exist, it could be a starting point for a debate on the need for protection for surface use. After negotiation, this additional compensation can be dealt with either in a separate paragraph of the oil lease agreement and wasted if the landowner owns the oil and gas rights, or preferably by a separate agreement, normally referred to as an a/k/a surface use agreement. 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. This is important when talking to the company and asking questions.

By being respectful and realistic towards the company representative regarding the conditions that should be included, it is much more likely that a surface owner will get a surface use agreement. You, the landowner, own the oil and gas rights to your property and you have leased those rights. Can you get anything other than a bonus and a royalty? You do not own the oil and gas rights to your property. These rights are the property of another person and have been rented. The tenant now wants to come to your land to develop oil and gas rights. Are you entitled to compensation? The answer to both questions is yes. Additional compensation can be obtained through a surface use agreement; sometimes also referred to as land use contracts….