A land use contract, sometimes called a land use contract, is an agreement between the landowner and an oil and gas company or operator for the use of the landowner for oil and gas development. The Surface Use Agreement defines what the oil and gas company or operator can do on the landowner`s land during oil and gas development, where the development can take place and what compensation the landowner will receive. The Surface Use Convention will also address other important issues; (z.B. use of roads, loss of wood, assessment of water and its use, placement of fences and gates, and prohibitions against waste and hunting. The restoration of the surface after drilling or the expiry or termination of the lease is also important and is often discussed. Other issues, such as operator insurance, noise protection, taxes, litigation and compensation, are often addressed. You, the landowner, own the oil and gas rights to your property and you have leased those rights. Can you get anything other than a bonus and a license? You do not have the oil and gas rights to your property. These rights are held by another person and have been leased. The tenant now wants to come to your land to develop the rights to oil and gas.
Are you entitled to compensation? The answer to both of these questions is yes. Additional compensation can be obtained through a surface use agreement; sometimes called a land use contract. This article will address these two issues and will do so as part of what is a land use contract or a land use contract. It is not uncommon to pay the landowner for the deterioration and use of his property by the oil and gas company or by an operator. Oil and gas companies or operators are well aware of land use arrangements and compensation for landowners. They often have their own form of surface use agreement; However, these agreements are generally insufficient to provide the protection the landowner needs. 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. The landowner can negotiate payment for damage caused by the oil and gas company on the surface of the property in the development of oil and gas rights; However, this additional compensation is often not collected simply because the landowner does not know the possibility of obtaining this additional compensation. As a result, such compensation is not even discussed in negotiations between the landowner and the oil and gas company; however, it is possible to negotiate. After negotiation, this additional allowance can be dealt with either in a separate paragraph in the area of oil and gas leasing if the landowner owns the oil and gas rights, or, preferably, by a separate agreement, normally referred to as the a/k/a land use agreement. If there are already oil and gas leasing provisions that require compensation or protection for the surface owner, this is ideal. These provisions should be applied and can give the owner a good starting point to demand appropriate compensation from the lessor.