New York Surface Use Agreement (Oil and Gas Operations) is a legally binding contract that governs the use of surface rights for oil and gas exploration and production activities in the state of New York. This agreement serves as a framework to ensure the responsible and sustainable utilization of land resources while balancing the interests of landowners and oil and gas companies. Key terms and provisions commonly found in New York Surface Use Agreements include: 1. Surface Access: The agreement establishes the conditions under which the oil and gas company can access and use the surface of a property for exploration, drilling, production, and related operations. It outlines the specific areas of land involved, their boundaries, and any restrictions on access. 2. Duration: The agreement specifies the duration of the surface use rights granted, including the start and end dates of the agreement. It may also cover potential extensions or renewal clauses. 3. Compensation: A crucial aspect of the agreement is the compensation provided to landowners for the use of their surface rights. This can include upfront payments, annual lease payments, royalties based on production, and provisions for damages or disruptions caused by operations. 4. Environmental Protection: New York Surface Use Agreements prioritize environmental protection and establish measures to mitigate potential impacts from oil and gas operations. This may include provisions for the preservation of water resources, protection of sensitive ecosystems, monitoring of air quality, and reclamation requirements after drilling operations conclude. 5. Legal Compliance: The agreement ensures that the oil and gas company adheres to federal, state, and local laws and regulations related to oil and gas operations. This includes compliance with permits, licenses, and reporting requirements. Types of New York Surface Use Agreements can vary based on the specific nature of the operations and the negotiation between the parties involved. Some commonly recognized variations include: 1. Exploration Agreements: These agreements pertain to the initial stages of oil and gas operations, focusing on surface access for geological surveys, seismic testing, and other activities to assess the potential for resource extraction. 2. Drilling and Production Agreements: Once exploration is complete, drilling and production agreements come into effect. These agreements permit the construction of drilling rigs, extraction of oil and gas, and the establishment of production facilities. They cover a broader range of rights and responsibilities compared to exploration agreements. 3. Pipeline and Infrastructure Agreements: In cases where transportation infrastructure, such as pipelines, is required, separate agreements may be necessary. These agreements outline the terms for constructing and operating pipelines, compression stations, and other essential infrastructure on the surface. It is important for landowners, oil and gas companies, and regulators to ensure that the New York Surface Use Agreements address the specific needs and concerns of all parties involved, while upholding the principles of fair compensation, environmental protection, and compliance with relevant laws and regulations.
New York Surface Use Agreement (Oil and Gas Operations)
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FAQ
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.
Royalties on private lands are influenced by state rates. They generally range from 12?25 percent. Before negotiating royalty payments on private land, careful due diligence should be conducted to confirm ownership. Mineral ownership records are often outdated.
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.
An assignment of oil and gas lease is a contractual agreement between a landowner and an oil or gas company in which the company gains the right to explore for, develop, and produce oil and gas from the property.
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.
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.
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.