This form is used when Lessor owns the surface estate in the Lands and Lessee desires to enter into this Agreement for the purpose of specifying the terms and conditions by which Lessee may use the surface estate of the Lands in conducting Lessee's operations under the terms of the Lease.
A surface use agreement is a legally binding contract between an oil or gas lessee (the company that has obtained the right to extract oil or gas from a specific area) and the surface owner (the individual or entity that owns the land where the drilling operations will take place). In the context of Arkansas, this agreement outlines the terms and conditions for the use of the surface land, primarily addressing two key aspects: surface damages and disposal of saltwater. The agreement aims to protect the interests and rights of both parties involved, ensuring fair compensation for any damages caused to the surface land during the extraction process. Additionally, it regulates the disposal of saltwater, a byproduct of oil and gas extraction, into an existing well bore. Keywords: Arkansas, surface use agreement, oil and gas lessee, surface owner, surface damages, disposal of saltwater, existing well bore. Different types of Arkansas surface use agreements may exist, varying in their specific provisions and terms. However, they generally address the following main elements: 1. Surface Damages: This section of the agreement outlines the obligations and responsibilities of the oil or gas lessee regarding potential damages to the surface land caused by drilling operations. It specifies the procedures and requirements for repairing any damages, compensating the surface owner for any loss of use or productivity, and restoring the land to its original state once operations are completed. 2. Disposal of Saltwater: As part of the extraction process, saltwater is often generated and needs to be disposed of properly. This section of the agreement sets forth the guidelines and protocols for the disposal of saltwater into an existing well bore. It typically establishes the terms for the transportation, treatment, and injection of saltwater, ensuring compliance with relevant environmental regulations and minimizing any potential harm to the surface land or surrounding areas. 3. Indemnification and Liability: This clause addresses the liability of both parties in the event of accidents, spills, or other unforeseen incidents. It outlines the obligations of the oil or gas lessee to indemnify and hold harmless the surface owner from any claims, damages, or losses arising from the drilling activities, while also requiring the surface owner to adhere to certain precautions and regulations to minimize risks. 4. Access and Right of Way: This section specifies the rights and limitations of the oil or gas lessee regarding access to the surface land for the purpose of drilling, operating, and maintaining wells or other related infrastructure. It covers topics such as access roads, pipelines, easements, and any necessary permissions required from the surface owner. 5. Term and Termination: The agreement establishes the duration of the contract and the conditions under which it can be terminated by either party. It may include provisions for renewals, extensions, or early termination, as well as procedures for resolving disputes or breaches of contract. To ensure compliance with local regulations and address specific concerns of the parties involved, various types or variations of surface use agreements may exist in Arkansas. These can be tailored to particular circumstances, such as specific drilling projects, geographical locations, or the preferences of the surface owner.
