Nebraska Surface Use Agreement: Understanding Operator's Production Equipment Placement in Cellars In Nebraska, the Surface Use Agreement plays a crucial role in regulating the placement of an operator's production equipment in cellars. This agreement ensures that landowners and operators reach a mutual understanding regarding the use of the land for underground equipment placement, specifically in cellars. Let's explore the intricacies of this agreement and its different types. The Nebraska Surface Use Agreement pertaining to the location of an operator's production equipment in cellars primarily focuses on addressing the concerns and interests of both the landowner and operator. The agreement outlines the terms and conditions that must be adhered to when utilizing underground spaces, such as cellars, for equipment placement and installation. 1. Cellar Surface Use Agreement: One type of Nebraska Surface Use Agreement is specifically tailored to cellar placements. This agreement outlines the responsibilities of both the landowner and the operator regarding the use, construction, maintenance, and access to underground cellars. It includes details about the size, location, and limitations of the cellar space, ensuring that the operator's equipment is safely installed without causing any significant disturbances to the land or nearby structures. 2. Equipment Installation and Removal Agreement: Another type of Surface Use Agreement deals specifically with the installation and removal of production equipment in cellars. This agreement outlines the process and conditions under which the operator may install or remove the equipment. It may also provide guidelines for the restoration of the land to its original state once the equipment is no longer in use. This agreement aims to create transparency and ensure that both parties are aware of their obligations and rights throughout the installation and removal processes. 3. Maintenance and Liability Agreement: To address potential damages and liabilities arising from equipment placement in cellars, this type of Surface Use Agreement focuses on establishing obligations and responsibilities related to the regular maintenance and repairs required for the operator's equipment. It specifies that the operator holds liability for any damages caused by equipment malfunctions and ensures that provisions are in place for maintaining the equipment to prevent any harm to the landowner's property. 4. Compensation Agreement: In some cases, landowners may require compensation for allowing operator's production equipment placement in their cellars. A compensation agreement specifies the terms under which the landowner will receive financial compensation, such as leasing or royalty fees, for utilizing their land for equipment installation and operation. This agreement ensures that both parties agree on fair compensation, protecting the landowner's rights adequately. In conclusion, the Nebraska Surface Use Agreement is a vital tool for establishing clear guidelines and obligations when it comes to the placement of an operator's production equipment in cellars. Various types of agreements exist, including cellar surface use agreements, equipment installation, and removal agreements, maintenance and liability agreements, and compensation agreements. These agreements are designed to protect the rights and interests of both landowners and operators while promoting responsible and harmonious land use practices.
Nebraska Surface Use Agreement when Operator's Production Equipment to Be Located in Cellars
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FAQ
Production Lease means that part of the License Area which is established for development of a Discovery pursuant to the License which is delineated as the Production Lease in a Development Plan approved as a Joint Operation or as an Exclusive Risk Operation.
A surface use agreement, which is also sometimes referred to as a land use agreement, is an agreement between the landowner and an oil and gas company or an operator for the use of the landowner's land in the development of the oil and gas.
"Held by production" is a provision in an oil or natural gas property lease that allows the lessee, generally an energy company, to continue drilling activities on the property as long as it is economically producing a minimum amount of oil or gas.
Held by production is an oil & gas industry term indicating a property is under lease and that the lease is being perpetuated in the secondary term by the production of oil or gas in paying quantities. An oil & gas may be in HBP status for many years if the wells located on the leased land keep producing.
Is there more than one type of oil and gas lease? Yes, there are three types: a surface use lease, a non-surface use lease, and a dual purpose lease.
Some of the changes were mandated by the 2022 Inflation Reduction Act, which directs the Interior Department to increase the royalty rates paid by companies that drill on public lands to 16.67 percent from 12.5 percent, and to increase the minimum bid at auctions for drilling leases to $10 per acre from $2 per acre, ...