Kentucky Surface Use by Lessee and Accommodation With Use of the Surface

State:
Multi-State
Control #:
US-OG-829
Format:
Word; 
Rich Text
Instant download

Description

This lease rider form may be used when you are involved in a lease transaction, and have made the decision to utilize the form of Oil and Gas Lease presented to you by the Lessee, and you want to include additional provisions to that Lease form to address specific concerns you may have, or place limitations on the rights granted the Lessee in the “standard” lease form.

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FAQ

Surface rights and mineral rights are two distinct types of property rights. Surface rights refer to the right to own and use the surface of a piece of land, while mineral rights refer to the right to extract minerals and other resources that are found beneath the surface.

Under the Accommodation Doctrine, the surface owner must generally show that the particular surface activities are not ?reasonably necessary? to extract the oil or gas. Haupt Inc. v. Tarrant County Water, 870 S.W.

When the same owner holds both surface and mineral rights, it's called a unified estate. When surface and mineral rights are severed from each other, the separate ownership is called a split estate. A third option is a fractional estate, in which mineral rights are split between several owners.

Leasing and Development of Split Estate When the surface rights to a piece of land and the subsurface rights (such as the rights to develop minerals) are owned by different parties, the mineral rights often take precedence over other rights.

The mineral estate, like the surface property, can be subdivided. The mineral rights can be split so that there may be numerous parties who own a portion of the minerals beneath your land.

In the United States, mineral rights can be sold or conveyed separately from property rights. As a result, owning a piece of land does not necessarily mean you also own the rights to the minerals beneath it. If you didn't know this, you're not alone. Many property owners do not understand mineral rights.

Dominance of Mineral Estate This means that the owner of the mineral estate has the right to freely use the surface estate to the extent reasonably necessary for the exploration, development, and production of the oil and gas under the property.

A ?split estate? is where separate parties own the rights to the surface of a parcel of land and to the minerals beneath that parcel of land.

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Kentucky Surface Use by Lessee and Accommodation With Use of the Surface