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 Kentucky Surface Use Agreement is a legally binding contract between an oil and gas lessee (the company or individual who holds the rights to extract oil and gas) and the surface owner (the person who owns the land where drilling operations will occur). This agreement outlines the terms and conditions regarding the use of the surface owner's land for oil and gas exploration, as well as the procedures for addressing any surface damages and the disposal of saltwater into an existing well bore. The surface use agreement aims to protect both parties' rights and interests and ensures responsible and proper conduct during the drilling operations. It establishes the guidelines for the lessee's operations on the surface owner's land, including the specific location of drilling sites, access and use of roads, pipelines, and other infrastructure, and the protocols for mitigating any environmental and ecological impacts that may arise during the extraction process. Within the context of surface damages, the agreement usually includes provisions for compensation or remediation for any disruptions or modifications caused to the surface owner's property. This can involve agreements on repairing any access roads, fences, or structures that may be affected by the drilling activities, as well as restoring the land to its original condition once drilling operations are complete. Moreover, the agreement addresses the disposal of saltwater, which is a byproduct of the extraction process. Saltwater, or produced water, is a mixture of water, salt, and other minerals that is extracted alongside oil and gas from underground reservoirs. The agreement outlines the methods and protocols for safely injecting or disposing of the saltwater into existing well bores, which are underground wells that are no longer productive for oil and gas extraction. It is important to note that specific variations or types of the Kentucky Surface Use Agreement may exist based on factors such as the location, parties involved, or specific requirements of the drilling operations. These variations are often tailored to address unique circumstances or concerns related to the specific oil and gas lease and the surface owner's property. Nonetheless, the primary focus remains on addressing surface damages and the responsible disposal of saltwater into well bores in accordance with Kentucky's regulatory guidelines and industry best practices.
