surface use agreements

Can anyone help us out with this?  We are trying to negotiate a lease and have been told by others that we should have a surface use agreement seperate from our mineral righs lease.  the company is saying that they dont want to do this as they are pretty sure they will be putting a well on our property so it is a forgone conclusion and they want to lease with the intent to put a well here.

 

Are surface use agreements typically lumped in with mineral rights contracts? 

 

If not, does anyone have a sample surface use agreement they could share?

 

 

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Permalink Reply by MICHELLE MILLER on January 21, 2011 at 7:05am

Rock and dirt blasted out of the ground and moved, never hauled away. Nothing is there but the pad and security now. There was no pit.

Permalink Reply by Barbara on January 21, 2011 at 10:34am

DO consider the surface rights very carefully.  Do you have a lawer....one who knows what he's doing?  Also very important. 

A few tips about surface rights:

 

if you own more than one property.................if/when you sign your lease ALL land that you own is automatically included...forever.

if you do not restrict the surface use, compressors, pumps, pig receivers, etc etc etc can be installed anywhere on your property

without restrictions access roads can be built anywhere convenient to the company

and do know this:  the leases usually say that the well must be located 200 feet or some such from your dwelling; HOWEVER....this pertains to the WELL itself only............the PAD can be placed closer.  might want to restrict that more clearly, too.

Many people have been seriously 'burned' by not restricting the surface rights.  Read and understand every word in the lease....looking always for double meanings.  Be sure you know what the gas company might be using for any definition....could be a lot different than what a landowner would use for a definition. For instance...and this is related more to water lines than wells.....'fresh water' to me means potable water..maybe needing bacteria removal, but basically 'clean' 'pure' water.  The gas companies, at least Chesapeake, define 'fresh water' as:  any water...INCLUDING frack water with just four of the chemicals they add removed.  PERIOD.  The brine and all the other chemicals are STILL IN IT.  When I said to 'my' landman that that isn't what I would call 'fresh water'.....he replied....'it's water from the Susquehanna'.  RIGHT.....'from' when and before what has been done to it, what it has been used for. 

Just beware....there is little room for mistakes as this lease is forever.

Good luck to you.

Permalink Reply by FXEF on January 21, 2011 at 11:52am

Barbara,

Good information to all land owners not yet leased. I just want to add a couple of points to consider concerning O&G leasing. 

 

1) The landman is working for the O&G company, therefore he is looking out for their interest... not yours.

 

2) The wording and language of the lease that the O&G company present to you is in their best interest... not yours.

Remember you own the O&G and are leasing to them. A knowledgeable O&G attorney can prepare a lease with the wording and language favorable to you for the O&G company to sign. Not just any law firm can draw up an O&G lease, or at least one that the O&G company will sign. You need a law firm that specializes in O&G law. 

 

3) Be knowledgeable of the issues that are important to you, however don't ask for something that the O&G company can not and will not agree to. Your O&G attorney can advise you on what would be in order.

 

 

 

 

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