This form is used when Lessor owns the surface estate in the Lands and Lessee desires to enter into this Agreement for the purpose of specifying the terms and conditions by which Lessee may use the surface estate of the Lands in conducting Lessee's operations under the terms of the Lease.
District of Columbia Surface Use Agreement Between Oil and Gas Lessee and Surface Owner Providing For Surface Damages and Disposal of Salt Water into An Existing Well Bore
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Multi-State
Control #:
US-OG-417
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Word;
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How to fill out Surface Use Agreement Between Oil And Gas Lessee And Surface Owner Providing For Surface Damages And Disposal Of Salt Water Into An Existing Well Bore?
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FAQ
A mineral lease is a contractual agreement between the owner of a mineral estate (known as the lessor), and another party such as an oil and gas company (the lessee). The lease gives an oil or gas company the right to explore for and develop the oil and gas deposits in the area described in the lease.
As long as the lessee pays the annual rent, the lease remains in effect. This definite period of time is called the primary term. When a company fails to start production, the lease expires after the primary term. When the company starts drilling for oil and gas, the lease will remain in effect past the primary term.
For more information on transferring oil and gas leases view the handout: Information and Procedures - Transferring Oil and Gas Lease Interests . Expiration: A lease will expire at the end of its primary term, which is usually 10 years.
A surface use agreement, which is also sometimes referred to as a land use agreement, is an agreement between the landowner and an oil and gas company or an operator for the use of the landowner's land in the development of the oil and gas.
Royalties derived from mineral rights ownership are different than an overriding royalty or revenue from a working interest. Overrides, working interests, production payments and other types of royalties tied to a leasehold generally expire once production ceases.
Once granted, an oil and gas lease gives the lessee a primary term ranging from 5 to 10 years, depending on water depth, to explore and develop the lease. A lessee must relinquish the lease if no activity has occurred within that specified amount of time.