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 North Dakota Surface Use Agreement between an oil and gas lessee and a surface owner provides a comprehensive framework for managing surface damages and the disposal of saltwater into an existing well bore. Such agreements are crucial in ensuring the protection of both the owner's land and the lessee's oil and gas operations. Here are some essential components and considerations typically included in these agreements: 1. Purpose: The agreement outlines the purpose and objectives of the arrangement, aiming to foster a mutually beneficial relationship between the surface owner and the lessee. 2. Definitions: This section provides clear definitions of terms used throughout the agreement, ensuring that both parties have a common understanding of key concepts. 3. Surface Damages: This clause identifies the lessee's obligations to prevent and minimize surface damages during their operations. It may specify the acceptable methods and standards for construction, access roads, pipeline installation, and environmental protection measures. 4. Compensation and Indemnification: The agreement addresses the compensation structure for surface damages caused by the lessee's operations. It may include provisions for reimbursement, repair costs, loss of use, and potential damages to the land. Additionally, the lessee might indemnify the surface owner against any third-party claims arising from the operations. 5. Saltwater Disposal: If the lessee needs to dispose of saltwater into an existing well bore, the agreement will outline the specific requirements and procedures for such operations. It may cover issues like water quality testing, transportation, storage, and a plan for handling potential spills or leaks. 6. Royalties or Lease Payments: Depending on the specific agreement, the surface owner might receive royalties or lease payments for granting the lessee access to their land. The terms of these payments, including frequency and calculation methods, will be detailed in this section. 7. Access Rights: The agreement establishes the lessee's access rights to the land and any necessary easements or rights-of-way. It may address the lessee's access to the well site, equipment yards, and any additional areas required for operations. 8. Term and Termination: The agreement specifies the duration of the agreement and the conditions under which either party can terminate the arrangement. It may include provisions for termination upon breach, bankruptcy, or changes in applicable laws. Other types of Surface Use Agreements in North Dakota may vary based on factors such as the specific nature of the operation, the involvement of multiple lessees or surface owners, and the unique characteristics of the land or mineral resources. However, most agreements will cover the fundamental aspects mentioned above and adapt them to the specific circumstances of each situation.
