A Maryland Surface Use Agreement is a legally binding contract that outlines the terms and conditions for utilizing the surface land in the state of Maryland for oil and gas operations. This agreement is essential for conducting exploration, drilling, production, and transportation of oil and gas resources while ensuring environmental protection and fair compensation to landowners. The Maryland Surface Use Agreement typically includes specific provisions allowing oil and gas companies to access and utilize private or public land, which is necessary for conducting their operations. These agreements are designed to strike a balance between the rights of the landowner and the economic interests of oil and gas companies. There are different types of Maryland Surface Use Agreements that may vary depending on various factors, such as the scope and duration of the operations, the specific terms negotiated between parties, and the location of the surface land. Some possible types of agreements include: 1. Exploration Agreement: An agreement specifically focused on allowing oil and gas companies to conduct preliminary exploration activities, such as seismic surveys, geological mapping, and soil testing. This agreement sets the foundation for future drilling operations if the exploration proves fruitful. 2. Drilling Agreement: This type of agreement pertains to the authorization for drilling wells on the surface land. It outlines the responsibilities of both parties regarding well construction, safety measures, and potential impacts on the environment and surrounding community. 3. Production Agreement: Once the drilling phase is complete and oil or gas resources are being extracted, a production agreement may be required. This agreement regulates the ongoing production operations, including extraction techniques, waste management, and royalty payments to the landowner. 4. Pipeline Agreement: In cases where the extracted oil or gas needs to be transported for processing or distribution, a pipeline may be necessary. A pipeline agreement specifies the conditions for installing, operating, and maintaining pipelines on the surface land, while addressing potential environmental concerns and landowner compensation. It is important to note that the specifics of a Maryland Surface Use Agreement may vary from case to case. Factors such as landowner negotiation power, market conditions, and regulatory requirements will influence the terms outlined in these agreements. Therefore, it is essential for all parties involved to thoroughly review, negotiate, and seek legal counsel to ensure their rights and interests are adequately protected.
Maryland Surface Use Agreement (Oil and Gas Operations)
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FAQ
What is the granting clause? The granting clause is the clause under which the owner of the oil and gas rights leases the oil and gas rights to the oil and gas company along with the right to develop the oil and gas on a specifically described piece of real estate.
in clause (or shutin royalty clause) traditionally allows the lessee to maintain the lease by making shutin payments on a well capable of producing oil or gas in paying quantities where the oil or gas cannot be marketed, whether due to a lack of pipeline connection or otherwise.
The surface use agreement will specify what the oil and gas company or operator can do on the landowner's land in developing the oil and gas, where development can take place, and what compensation the landowner will receive.
By way of background, a ?free use? clause is a provision in an oil/gas lease which gives the lessee the right to use gas produced from the leasehold.
Surface Lease means a lease, easement, or other agreement providing the holder with the right to enter the surface of any land for the purpose of constructing and operating a well, facility, flowline, roadway, or power line; Sample 1.
Surface Use Agreements are voluntary agreements that govern the working relationship between a mineral owner or lessee and a surface owner regarding the company's surface activities and the disturbed portion of the land during access roads and well sites construction on the land in question.
Surface Right means the right in rem of an individual or a legal entity, which is established for a time period of up to 99 years, to construct a building within public property and to exercise on such building the powers captured by the right of ownership, in ance with Articles 18 to 26 of Law 3986/2011, as in ...
Concerning land ownership and property law, subsurface rights can allow a property owner to discover and utilize anything extracted from underneath a property without interference from a second party. Purchasing both rights for a property is possible.