Idaho Surface Lease to Allow Storing or Transporting Oil and Gas from off Premises

State:
Multi-State
Control #:
US-OG-151
Format:
Word; 
Rich Text
Instant download

Description

This form addresses the situation where an oil operator desires to store oil (probably in a tank battery) on lands where the wells are not located and are not subject to an oil and gas lease.
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FAQ

An oil or gas lease is a legal document where a landowner grants an individual or company the right to extract oil or gas from beneath the landowner's property. Courts generally find leases to be legally binding, so it is very important that you understand all the terms of a lease before you sign it.

Surface Lease ? Any agreement entered into by an owner or occupant with a company under which the surface of the land may be used and which provides for the payment of compensation.

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.

The surface estate includes everything above ground, such as the land itself, trees, and buildings. On the other hand, the mineral estate refers to the rights to any resources that may be found below ground, such as oil, gas, and minerals.

surface use lease allows the landowner to lease the oil and gas rights and obtain a bonus and royalty, while at the same time protecting the surface of the land.

Surface interest refers to the ownership rights of the surface of a property, excluding any mineral rights. The owner of the surface interest has the right to use and enjoy the surface of the property, but must allow the owner of the mineral interest to access and use the surface for mineral extraction.

An ?unless? clause provides that the lease terminates unless the lessee has either made the required payments or commenced drilling operations. Lessees can therefore be terminated from the lease by failure to pay the proper amount, by the due date, in the proper form, to the proper party.

in clause (or shutin royalty clause) traditionally allows the lessee to maintain the lease by making shutin payments on a well capable of producing oil or gas in paying quantities where the oil or gas cannot be marketed, whether due to a lack of pipeline connection or otherwise.

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Idaho Surface Lease to Allow Storing or Transporting Oil and Gas from off Premises