Surface Use Agreement (Oil and Gas Operations)
Description
Definition and meaning
A Surface Use Agreement is a legal document that grants permission for the use of land surface for oil and gas operations. It involves an agreement between a landowner, referred to as the Grantor, and a company, known as the Grantee, that seeks to use the surface to extract natural resources. This agreement outlines the specific rights and obligations of both parties related to the operations carried out on the designated land.
Key components of the form
The Surface Use Agreement typically includes several critical elements:
- Grant of Rights: Details the rights granted by the Grantor to the Grantee for the use of the land surface.
- Description of Lands: Specifies the exact land areas covered by the agreement.
- Access Rights: Outlines the Grantee's rights for ingress and egress to the facilities on the land.
- Indemnification Clause: Addresses liability issues between the parties.
- Duration: Describes the term for which the agreement is effective.
- Termination Conditions: Specifies how and when the agreement can be terminated.
How to complete a form
Filling out a Surface Use Agreement involves several steps to ensure all necessary information is accurately provided:
- Identify the parties involved (Grantor and Grantee) and their addresses.
- Provide a detailed description of the land being used, including any existing facilities.
- Clearly outline the rights being granted to the Grantee.
- Include any specific terms regarding access, termination, and liability.
- Review the document for completeness and clarity before signing.
Who should use this form
This form is suitable for landowners who wish to permit oil and gas companies to utilize their land for surface operations. It is particularly relevant for individuals or entities in the oil and gas industries or landowners situated in regions with active extraction activities.
Common mistakes to avoid when using this form
When completing a Surface Use Agreement, avoid these common errors:
- Inadequate description of land: Ensure the land description is precise to prevent ambiguity.
- Omitting key rights: Clearly state all rights granted to prevent future disputes.
- Failure to discuss terms: Both parties should understand and agree on important terms before signing.
How to fill out Surface Use Agreement (Oil And Gas Operations)?
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FAQ
Land Use Agreements means (a) the Lease, (b) any access right or other right to use or traverse real property, and (c) any encumbrance, easement, license, restriction, or limitation of any kind applicable to the Site or used in connection with the construction of the Project.
In states with split ownership laws, land can be sold to only include surface rights. This means that if oil or gas is present under the soil, the landowner will have no legal rights to them.
Surface rights are, as the name implies, the rights to the surface area of a piece of land. This includes any structures on the property, as well as the rights to farm the land or exploit aboveground resources such as trees, plants, or water according to local laws and ordinances.
Texas courts have long held that the mineral estate is the dominant estate, and that the mineral owner, or the owner's lessee, has an implied easement to use the surface in a manner that is reasonably necessary to develop the minerals.
When mineral rights are owned by a third party, it may affect your use of the surface in the future. Surface rights are subservient to mineral rights, which means the owner of a mineral servitude will be able to access and use the surface to extract the minerals from underneath.
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. Based on 1 documents. Save.
In Texas, and most other states, the ownership of the mineral estate can be separated (severed) from the surface estate. Put another way, one person may own the rights to use the surface of a piece of property while another person has the right to use the minerals underneath the property.
(Oil & Gas Exploration and Production) An oil, natural gas, and mineral lease gives the lessee rights to exploit minerals beneath the surface of the property.It also grants the lessee the right to utilize the surface of the property to access those minerals.