What are the rights of a surface owner on land that has existing lease HBP? A company has purchased the lease and is coming in to rework the lease. As a surface owner only, what do I have to accommodate to and what can I negotiate for? This company has plans to drill some new wells and attempt secondary recovery on the old wells. They supposedly drilled a dry hole that they say they will be using as an injection well. What can they do out there without my permission and what can I demand that they pay for? If I can get a Surface Use Agreement with them what should I watch out for?
Laura:
Your first order of business should be to write up a detailed Surface Agreement in regards to any surface damages caused by oilfield related acitivity. Such damages could range from oil or salt water spills to damages to property such as fences, etc. You did mention that a dry hole would be utilized as an injection well. If I were writing an agreement, I would specify that no SWD well on the property could be used as a Commercial Disposal Well. This type of well is usually associated with very heavy traffic in and out of the site and increases the likelihood of a salt water spill. Finally, you might want to consult an attorney in your area who is familiar with writing such agreements as this could be money well spent.
Thank you for your advice. This mineral/land ownership business is a constant learning experience, isn't it. Always seems there is something new that comes up. In this situation, I am not sure how much leeway I have in negotiating with them, since they hold an existing lease....
It sounds like you do not own the executive rights, and probably not the minerals or mineral rights either, on your surface property. If you know and/or get along with the person who owns the executive rights, see if they will grant you those rights so that you can control how the surface is used in the future.