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.
Title: Tennessee Surface Use Agreement Between Oil and Gas Lessee and Surface Owner: Comprehensive Coverage for Surface Damages and Salt Water Disposal Introduction: In Tennessee, when it comes to oil and gas operations, a Surface Use Agreement is crucial for harmonious interaction between the lessee (the party engaged in oil and gas activities) and the surface owner. This agreement not only addresses the compensation and liability associated with surface damages but also provides guidelines for the responsible disposal of saltwater into an existing well bore. Here, we will outline the key elements of a typical Tennessee Surface Use Agreement, emphasizing the diverse types that might exist. 1. Tennessee Surface Use Agreement Overview: A Tennessee Surface Use Agreement is a legally binding document that governs the relationship between oil and gas lessees and surface owners within the state. It ensures that both parties benefit from the extraction of oil and gas resources while safeguarding the environment and mitigating any potential surface damages. 2. Surface Damages: Surface damages can occur during oil and gas operations, impacting the surface owner's land, structures, water sources, roads, and other prevailing infrastructure. The Surface Use Agreement defines the scope of damages covered, the procedures for reporting, and the responsibility for compensation. Typical keywords: surface damage compensation, liability coverage, reporting procedures. 3. Responsibilities of the Parties: The agreement outlines the obligations of both the lessee and surface owner to ensure that operations are conducted safely and efficiently. It specifies the obligations of the lessee regarding minimizing surface impacts, proper restoration, and the utilization of best practices. Surface owner responsibilities may include maintaining access roads and granting permission for limited property access. Relevant keywords: lessee obligations, surface owner responsibilities, surface impact mitigation. 4. Disposal of Salt Water into an Existing Well Bore: Saltwater is a byproduct of oil and gas extraction and needs to be disposed of responsibly to avoid environmental contamination. The Surface Use Agreement establishes the guidelines for the proper disposal of saltwater into an existing well bore, ensuring compliance with state regulations and best industry practices. Keywords: saltwater disposal, existing well bore utilization, environmental compliance. 5. Types of Tennessee Surface Use Agreements: a) Standard Surface Use Agreement: This is the most common type of agreement, covering general terms and conditions related to surface damages and saltwater disposal. b) Customized Agreements: Depending on the specific circumstances of a lease and the preferences of the parties involved, variations of the Surface Use Agreement can be formulated, addressing specific concerns and requirements. c) Model Agreements: Industry associations and government bodies may provide redrafted model agreements that can be utilized with modifications to suit the needs of the lessees and surface owners. Keywords: customized agreements, model agreements. Conclusion: Tennessee Surface Use Agreements facilitate the harmonious coexistence of oil and gas lessees and surface owners by offering comprehensive coverage for surface damages and outlining responsible practices for saltwater disposal. These agreements are crucial for ensuring the protection of both parties' interests while adhering to state regulations and environmental stewardship.
