Houston Texas Subsurface Underground Gas Storage Lease and Agreement (From a Surface Owner, With No Right to Use the Surface of the Lands being Granted)

• Category: Oil Gas and Minerals - Leases
• State: Multi-State
• City: Houston
• Control #: US-OG-1149
• Format: Word; Rich Text

Description

This form is a subsurface underground storage lease and agreement from a surface owner with no rights to use the surface of the lands being granted. Houston, Texas is known for its thriving energy industry, and one essential aspect of this industry is subsurface underground gas storage. Subsurface Underground Gas Storage Lease and Agreement refers to a legal contract between a surface owner and a gas storage company, allowing the company to access and utilize the underground area for gas storage purposes without disturbing the surface of the land. This type of agreement becomes crucial when a surface owner does not have the right to use the underground space but wishes to monetize this valuable resource. In Houston, several types of Subsurface Underground Gas Storage Lease and Agreement can exist, tailored to different scenarios and parties involved. These variations include: 1. Private Landowner Agreement: This agreement involves a surface owner on privately-owned land granting a gas storage company the right to utilize the subsurface for gas storage purposes. The terms and conditions will be negotiated between the landowner and the gas storage company. 2. Government or Municipal Land Lease: In some cases, the surface owner may be a government or municipality, leasing the subsurface rights to a gas storage company. This type of agreement usually follows specific regulations and procedures outlined by the governing entity. 3. Joint Venture Agreement: This agreement occurs when a surface owner collaborates with a gas storage company to develop and operate a subsurface gas storage facility. Both parties will share the risks, costs, and benefits associated with the venture. Regardless of the specific type of Subsurface Underground Gas Storage Lease and Agreement, certain elements are typically included. These may comprise: a. Grant of Rights: The agreement will clearly define the subsurface area being granted to the gas storage company and the duration of the lease. It will specify the purpose of the storage, such as natural gas or other hydrocarbons, and any limitations or restrictions. b. Payment Terms: The compensation terms for the surface owner should be clearly outlined, including fixed payments or royalties based on the volume of gas stored or extracted. The timing and method of payment should also be specified. c. Liability and Insurance: The agreement will establish the responsibilities and liabilities of both parties regarding any accidents, damages, or environmental issues that may arise during the gas storage activities. Insurance requirements and indemnification clauses are commonly included. d. Surface Rights and Obligations: As the surface owner retains ownership and rights over the land's surface, the agreement will outline any restrictions on the gas storage company's access and use of the surface area. This may include restrictions on construction, disturbance, or other surface activities. e. Termination and Remedies: The circumstances under which either party can terminate the agreement should be clearly defined, including breach of contract or non-performance. The agreement may also include procedures for dispute resolution, such as mediation or arbitration. Overall, a Subsurface Underground Gas Storage Lease and Agreement in Houston, Texas, enables surface owners to capitalize on the underground resources beneath their land while preserving the integrity and utility of the surface. These agreements play a crucial role in facilitating the energy industry's operations, ensuring the responsible development and utilization of subsurface gas storage facilities.

Houston, Texas is known for its thriving energy industry, and one essential aspect of this industry is subsurface underground gas storage. Subsurface Underground Gas Storage Lease and Agreement refers to a legal contract between a surface owner and a gas storage company, allowing the company to access and utilize the underground area for gas storage purposes without disturbing the surface of the land. This type of agreement becomes crucial when a surface owner does not have the right to use the underground space but wishes to monetize this valuable resource. In Houston, several types of Subsurface Underground Gas Storage Lease and Agreement can exist, tailored to different scenarios and parties involved. These variations include: 1. Private Landowner Agreement: This agreement involves a surface owner on privately-owned land granting a gas storage company the right to utilize the subsurface for gas storage purposes. The terms and conditions will be negotiated between the landowner and the gas storage company. 2. Government or Municipal Land Lease: In some cases, the surface owner may be a government or municipality, leasing the subsurface rights to a gas storage company. This type of agreement usually follows specific regulations and procedures outlined by the governing entity. 3. Joint Venture Agreement: This agreement occurs when a surface owner collaborates with a gas storage company to develop and operate a subsurface gas storage facility. Both parties will share the risks, costs, and benefits associated with the venture. Regardless of the specific type of Subsurface Underground Gas Storage Lease and Agreement, certain elements are typically included. These may comprise: a. Grant of Rights: The agreement will clearly define the subsurface area being granted to the gas storage company and the duration of the lease. It will specify the purpose of the storage, such as natural gas or other hydrocarbons, and any limitations or restrictions. b. Payment Terms: The compensation terms for the surface owner should be clearly outlined, including fixed payments or royalties based on the volume of gas stored or extracted. The timing and method of payment should also be specified. c. Liability and Insurance: The agreement will establish the responsibilities and liabilities of both parties regarding any accidents, damages, or environmental issues that may arise during the gas storage activities. Insurance requirements and indemnification clauses are commonly included. d. Surface Rights and Obligations: As the surface owner retains ownership and rights over the land's surface, the agreement will outline any restrictions on the gas storage company's access and use of the surface area. This may include restrictions on construction, disturbance, or other surface activities. e. Termination and Remedies: The circumstances under which either party can terminate the agreement should be clearly defined, including breach of contract or non-performance. The agreement may also include procedures for dispute resolution, such as mediation or arbitration. Overall, a Subsurface Underground Gas Storage Lease and Agreement in Houston, Texas, enables surface owners to capitalize on the underground resources beneath their land while preserving the integrity and utility of the surface. These agreements play a crucial role in facilitating the energy industry's operations, ensuring the responsible development and utilization of subsurface gas storage facilities.