Surface Use Agreements Texas

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. Most states provide oil and gas operators with access to the surface land, which transmits all the reservoirs to be drilled. Mineral products are sometimes referred to as “dominant goods.” In other words, mineral materials have the right to reach the surface area for access to hydrocarbons underground. This becomes complicated with the appearance of horizontal drilling, as minerals under the surface of the well pocket may not actually be developed, as production of production areas may be under other pathways. Be respectful and realistic. Because oil and gas companies are not required to sign a Surface Use Agreement, surface owners are not in a negotiating position. This is important when you talk to the company and ask questions. By respecting the company representative and realistic about the conditions that should be included, a surface owner is much more likely to get a surface use agreement.

Pipeline companies carrying oil, natural gas and their products often turn to surface owners looking for a way to facilitate the construction of pipelines under the owner`s land. While more than 90 percent of these interactions lead to a voluntary transfer of an interest in relief, pipelines may attempt to invoke the power of an important area if negotiations are not concluded. State law provides for this power of condemnation for pipeline companies that act as common promoters, lease oil or natural gas or their products, to or to the public, in accordance with state law. Remember, in Texas, the mineral domain is dominant. The owner accepts a land use agreement only because the benefits outweigh what he is abandoning. They have the right to use as much surface as is reasonably necessary to explore and produce their minerals. This doctrine is widely interpreted in favour of mineral products. So Scott is right to keep as many executive rights as possible, so you have entries in the lease.

I have put in place many restrictions on the use of the surface and the remediation clauses in the leases I have designed. And no, not all of them end up in the final lease. 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. Tim, after renting the surface owner could be a liability with the executive rights to see that you receive the bonus you were entitled to. The executive could break a nut easier than the trader, and you can bet that if you filed a lawsuit against him, he would burn the line to the trader they have to pay you. It`s beautiful? No no. Is it good to take you somewhere? You may have to sue someone. I hope the amount they owe you is at least a few thousand dollars to be worth it.

If there were only a few hundred dollars, I would save my breath and worsen.