Land use agreements allow landowners and peders to reach agreement on the use of land surface during the drilling process. Such agreements are often necessary because mineral drilling can cause the surface of a land. Such agreements are intended to avoid irreparable damage on land and to require the tenant to adopt a particular claim standard that may include: It is best to consider the SUA negotiations with your objectives in mind, so that you have an agreement with which you can live. 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.
These safeguards require surface owners to be informed of things such as the start date of drilling, a copy of the operating plan, contact information for the operator, etc. They also require compensation for certain surface disorders such as the installation of pipes. In general, the SUA will disburse the authorized and prohibited activities of all parties to the agreement. Regardless of which side you go, make sure all agreements are made in writing to avoid future conflicts. Look for leasing arrangements. If there are already oil and gas leasing provisions that require compensation or protection for the surface owner, this is ideal. These provisions should be applied and can give the owner a good starting point to demand appropriate compensation from the lessor. If the operator and the landowner are unable to agree on damages, some states grant the operator the right to continue the development, with damages to be determined in hindsight through arbitration or litigation.