Surface Use Agreement Oklahoma

A: If negotiations in good faith do not result in an executed compensation contract, the operator must ask the court for the appointment of experts. An operator can then enter the property and start working. Although drilling can be started, the surface damage investigation remains before the courts. The three appraisers (one of each party, who elect a third party) will inspect the property and submit a report to the court that will assess the damage to the surface. Once the report is filed, you can accept the proposed amount or the challenge in court. Before you apply for a judicial review, you should inquire about the costs. A: In Oklahoma, the courts have held that the mineral product is superior to the surface area for oil and gas development. Oil and gas operators have the right to invade your property and use the surface wisely to search for oil and gas. Respect legal restrictions when using.

Although there are few legal restrictions on a mineral tenant`s right to use land, some protections should be known to the landowner. First, the purchaser has the right to use only the amount of “reasonably necessary” surface land to produce oil and gas from that specific lease (or pool if pooling has occurred). If the use is greater than reasonably necessary (i.e. the owner uses water from your land to produce oil and gas on another unsurnated land), this is not permitted. Second, the hosting doctrine protects a surface owner with use of the existing surface in certain situations. More information can be found on this blog. Finally, the oil company has no right to be negligent, which means that it is subject to an appropriate operator standard. If any of these restrictions are violated, this may be a good opportunity for the surface owner to engage in a conversation about a surface-use agreement with the lessor, who would probably prefer to sign an agreement rather than face a dispute. Leases for unsold school land must include a provision that requires repair of damage caused by the use of the surface in the search, exploration, development or production of leased minerals.

Beware of a quid pro quo opportunity. Often, the mineral tenant requires the surface owner to do something that is not allowed in the rental agreement. For example, the oil and gas company may try to facilitate pipelines or facilitate the route through the property in order to obtain another leasing package. This is the ideal time to find a possible agreement on the use of the surface and look for favorable conditions.

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