A Colorado Surface Use Agreement is a legal contract entered between an operator and a surface owner in Colorado when the operator's production equipment is to be located in cellars. This agreement outlines the terms and conditions governing the use of the surface owner's property for the purpose of oil and gas production. When an operator intends to place their production equipment in cellars, which are underground structures used to house the equipment, there may be variations or specific types of Surface Use Agreements applicable. These can include: 1. Standard Surface Use Agreement with Cellar Provision: This is the most common type of agreement used when the operator plans to locate their production equipment in cellars. It includes the usual terms and conditions related to access, use, and compensation for the use of surface property, along with specific provisions regarding the construction, maintenance, and use of cellars. 2. Modified Surface Use Agreement with Cellar Specification: In certain cases, modifications may be made to the standard agreement to meet specific requirements related to the construction, location, or size of cellars. These modifications are typically added as provisions or amendments to the original agreement, allowing flexibility in addressing unique circumstances. 3. Pre-existing Surface Use Agreement with Cellar Supplement: If an operator already has a surface use agreement in place with a surface owner but decides to utilize cellars for production equipment at a later stage, a cellar supplement may be added to the existing agreement. This supplement outlines the rights, responsibilities, and compensation related specifically to the use of cellars within the established framework of the original agreement. 4. Jointly Negotiated Surface Use Agreement with Cellar Clauses: In some cases, operators and surface owners may agree to jointly negotiate a surface use agreement tailored to their specific needs and circumstances. This type of agreement allows for more flexibility in addressing cellar-related provisions and ensures that both parties' interests are adequately protected. Colorado Surface Use Agreements when Operator's Production Equipment to Be Located in Cellars are designed to address the unique considerations associated with underground equipment storage. They typically cover topics such as cellar construction, access rights, surface reclamation requirements, compensation mechanisms, liability and insurance, and dispute resolution procedures. It is crucial for both the operator and surface owner to carefully review and negotiate the terms of the agreement, ensuring that all relevant aspects are adequately addressed. Legal counsel may be advisable for both parties to ensure compliance with Colorado state laws and to protect their respective rights and obligations within the agreement.