North Carolina Subsurface Underground Gas Storage Lease and Agreement (With Landowner; Long Form)

• Category: Oil Gas and Minerals - Leases
• State: Multi-State
• Control #: US-OG-1150
• Format: Word; Rich Text

Description

This form is a long form subsurface underground gas storage lease and agreement with landowner. Title: Understanding North Carolina Subsurface Underground Gas Storage Lease and Agreement (With Landowner; Long Form) Introduction: In North Carolina, the subsurface underground gas storage lease and agreement is a legally binding contract that governs the arrangement between a gas storage operator and a landowner. This comprehensive agreement outlines the terms and conditions for the establishment, maintenance, and operation of subterranean gas storage facilities on a landowner's property. Let's explore the key aspects of this lease and agreement, ensuring a thorough understanding of its provisions. 1. General terms and definitions: In this lease and agreement, it is crucial to define key terms such as lessee, lessor, gas storage facility, subsurface, storage operation, and more. Clear definitions set the foundation for understanding the rights and obligations of each party involved. 2. Grant of subsurface rights: This section stipulates that the landowner grants the lessee exclusive rights to use, explore, and develop the subsurface portion of the property for the purpose of gas storage. It details the area of subsurface rights granted, potential depth limitations, and any relevant restrictions on the landowner's surface rights. 3. Lease duration and extension: The document specifies the duration of the lease and any possible extension or renewal options. It addresses conditions for early termination, including default events or non-compliance with regulatory requirements. 4. Rental and royalty payments: This section outlines the financial aspects, detailing the rental fees payable to the landowner for granting subsurface rights. It also defines regulations regarding royalty payments, establishing the method for calculating and distributing royalties based on gas storage facility utilization and production volumes. 5. Exploration and drilling operations: Specific provisions cover the lessee's obligations and responsibilities pertaining to exploration, drilling, and the establishment of the gas storage facility. It addresses safety measures, environmental concerns, permitting requirements, and the lessee's obligation to restore the property after the completion or abandonment of storage operations. 6. Surface rights and land access: This section elucidates the landowner's surface rights and the extent to which the lessee can access the surface for the purposes of building and maintaining the gas storage facility. It outlines the compensation for surface-related disturbances or damages caused by the storage operations. 7. Regulatory compliance: The lease and agreement ensure compliance with local, state, and federal laws and regulations governing subsurface storage operations. It establishes the lessee's responsibility to obtain and maintain appropriate permits, licenses, and certifications required for the operation. 8. Indemnification and liability: This section deals with indemnification clauses, wherein the lessee assumes liability for any damages, injuries, or losses resulting from the gas storage operations. It may also detail insurance requirements and the landowner's right to request documented proof of coverage. Types of NC Subsurface Underground Gas Storage Lease and Agreement (With Landowner; Long Form): 1. Standard North Carolina Subsurface Underground Gas Storage Lease and Agreement — Provides a comprehensive framework covering all essential aspects of the lease. 2. North Carolina Subsurface Underground Gas Storage Lease and Agreement for Specific Gas Types — Tailored agreements may exist for distinct gas storage types (e.g., natural gas, propane, etc.), incorporating specific requirements unique to each gas. 3. North Carolina Subsurface Underground Gas Storage Lease and Agreement for Geological Regions — Lease agreements might vary based on geological characteristics of the storage location (e.g., coastal regions, mountainous areas). Conclusion: The North Carolina Subsurface Underground Gas Storage Lease and Agreement (With Landowner; Long Form) serves as a crucial legal document regulating the relationship between gas storage operators and landowners. By understanding its key provisions, both parties can establish a mutually beneficial arrangement while safeguarding their rights and interests throughout the subsurface gas storage process.

Title: Understanding North Carolina Subsurface Underground Gas Storage Lease and Agreement (With Landowner; Long Form) Introduction: In North Carolina, the subsurface underground gas storage lease and agreement is a legally binding contract that governs the arrangement between a gas storage operator and a landowner. This comprehensive agreement outlines the terms and conditions for the establishment, maintenance, and operation of subterranean gas storage facilities on a landowner's property. Let's explore the key aspects of this lease and agreement, ensuring a thorough understanding of its provisions. 1. General terms and definitions: In this lease and agreement, it is crucial to define key terms such as lessee, lessor, gas storage facility, subsurface, storage operation, and more. Clear definitions set the foundation for understanding the rights and obligations of each party involved. 2. Grant of subsurface rights: This section stipulates that the landowner grants the lessee exclusive rights to use, explore, and develop the subsurface portion of the property for the purpose of gas storage. It details the area of subsurface rights granted, potential depth limitations, and any relevant restrictions on the landowner's surface rights. 3. Lease duration and extension: The document specifies the duration of the lease and any possible extension or renewal options. It addresses conditions for early termination, including default events or non-compliance with regulatory requirements. 4. Rental and royalty payments: This section outlines the financial aspects, detailing the rental fees payable to the landowner for granting subsurface rights. It also defines regulations regarding royalty payments, establishing the method for calculating and distributing royalties based on gas storage facility utilization and production volumes. 5. Exploration and drilling operations: Specific provisions cover the lessee's obligations and responsibilities pertaining to exploration, drilling, and the establishment of the gas storage facility. It addresses safety measures, environmental concerns, permitting requirements, and the lessee's obligation to restore the property after the completion or abandonment of storage operations. 6. Surface rights and land access: This section elucidates the landowner's surface rights and the extent to which the lessee can access the surface for the purposes of building and maintaining the gas storage facility. It outlines the compensation for surface-related disturbances or damages caused by the storage operations. 7. Regulatory compliance: The lease and agreement ensure compliance with local, state, and federal laws and regulations governing subsurface storage operations. It establishes the lessee's responsibility to obtain and maintain appropriate permits, licenses, and certifications required for the operation. 8. Indemnification and liability: This section deals with indemnification clauses, wherein the lessee assumes liability for any damages, injuries, or losses resulting from the gas storage operations. It may also detail insurance requirements and the landowner's right to request documented proof of coverage. Types of NC Subsurface Underground Gas Storage Lease and Agreement (With Landowner; Long Form): 1. Standard North Carolina Subsurface Underground Gas Storage Lease and Agreement — Provides a comprehensive framework covering all essential aspects of the lease. 2. North Carolina Subsurface Underground Gas Storage Lease and Agreement for Specific Gas Types — Tailored agreements may exist for distinct gas storage types (e.g., natural gas, propane, etc.), incorporating specific requirements unique to each gas. 3. North Carolina Subsurface Underground Gas Storage Lease and Agreement for Geological Regions — Lease agreements might vary based on geological characteristics of the storage location (e.g., coastal regions, mountainous areas). Conclusion: The North Carolina Subsurface Underground Gas Storage Lease and Agreement (With Landowner; Long Form) serves as a crucial legal document regulating the relationship between gas storage operators and landowners. By understanding its key provisions, both parties can establish a mutually beneficial arrangement while safeguarding their rights and interests throughout the subsurface gas storage process.