New Mexico Underground Storage Lease and Agreement (From Surface Owner with Mineral Interest)

• Category: Oil Gas and Minerals - Leases
• State: Multi-State
• Control #: US-OG-1180
• Format: Word; Rich Text

Description

This form is an underground storage lease and agreement from surface owner with mineral interest. New Mexico Underground Storage Lease and Agreement (From Surface Owner with Mineral Interest) is a legally binding contract that outlines the terms and conditions of leasing underground storage space from a surface owner who also holds the mineral rights in New Mexico. This agreement is often used in the oil and gas industry, where the need for underground storage arises to store various substances, such as petroleum, natural gas, or other materials. Under this lease agreement, the surface owner grants the lessee the exclusive right to use the designated underground storage space for a specified period. The lessee is typically a company or an individual involved in the extraction, production, or storage of minerals. Both parties must agree on the terms and provisions, ensuring mutual benefits and protection of their respective interests. The New Mexico Underground Storage Lease and Agreement address various essential aspects, including: 1. Premises: Describes the precise location, boundaries, and dimensions of the underground storage area. It may include specific geotechnical information to assess the suitability of the site for storage purposes. 2. Term: Specifies the duration of the lease, which can range from a few years to several decades. It may also include provisions for renewals or termination options. 3. Rental Payments: Outlines the rent amount to be paid by the lessee to the surface owner for the use of the underground storage space. The frequency and due dates for rental payments are clearly defined in this section. 4. Purpose: Specifies the permitted purpose for the use of the underground storage, such as storing petroleum products, natural gas, or other materials. It may also include restrictions on the type or volume of substances that can be stored. 5. Operating and Maintenance Duties: Details the responsibilities of both parties regarding the upkeep, safety, and maintenance of the underground storage facility. It outlines the lessee's obligations to ensure the integrity of the storage space, including periodic inspections and compliance with regulatory standards. 6. Indemnification and Liability: Establishes the liabilities and obligations of both parties in case of accidents, damages, or third-party claims arising from the use of the underground storage space. It often includes provisions for insurance coverage and mutual indemnification. 7. Default and Termination: Describes the events or circumstances that could lead to termination of the agreement, such as non-payment of rent, breach of terms, or failure to comply with applicable laws and regulations. Different types or variations of the New Mexico Underground Storage Lease and Agreement (From Surface Owner with Mineral Interest) may exist, tailored to specific industries or situations. For instance, there could be specialized agreements for underground gas storage, crude oil storage, or hazardous material storage. These variations may contain specific clauses and provisions related to the nature of the stored substances, safety requirements, and environmental considerations.

New Mexico Underground Storage Lease and Agreement (From Surface Owner with Mineral Interest) is a legally binding contract that outlines the terms and conditions of leasing underground storage space from a surface owner who also holds the mineral rights in New Mexico. This agreement is often used in the oil and gas industry, where the need for underground storage arises to store various substances, such as petroleum, natural gas, or other materials. Under this lease agreement, the surface owner grants the lessee the exclusive right to use the designated underground storage space for a specified period. The lessee is typically a company or an individual involved in the extraction, production, or storage of minerals. Both parties must agree on the terms and provisions, ensuring mutual benefits and protection of their respective interests. The New Mexico Underground Storage Lease and Agreement address various essential aspects, including: 1. Premises: Describes the precise location, boundaries, and dimensions of the underground storage area. It may include specific geotechnical information to assess the suitability of the site for storage purposes. 2. Term: Specifies the duration of the lease, which can range from a few years to several decades. It may also include provisions for renewals or termination options. 3. Rental Payments: Outlines the rent amount to be paid by the lessee to the surface owner for the use of the underground storage space. The frequency and due dates for rental payments are clearly defined in this section. 4. Purpose: Specifies the permitted purpose for the use of the underground storage, such as storing petroleum products, natural gas, or other materials. It may also include restrictions on the type or volume of substances that can be stored. 5. Operating and Maintenance Duties: Details the responsibilities of both parties regarding the upkeep, safety, and maintenance of the underground storage facility. It outlines the lessee's obligations to ensure the integrity of the storage space, including periodic inspections and compliance with regulatory standards. 6. Indemnification and Liability: Establishes the liabilities and obligations of both parties in case of accidents, damages, or third-party claims arising from the use of the underground storage space. It often includes provisions for insurance coverage and mutual indemnification. 7. Default and Termination: Describes the events or circumstances that could lead to termination of the agreement, such as non-payment of rent, breach of terms, or failure to comply with applicable laws and regulations. Different types or variations of the New Mexico Underground Storage Lease and Agreement (From Surface Owner with Mineral Interest) may exist, tailored to specific industries or situations. For instance, there could be specialized agreements for underground gas storage, crude oil storage, or hazardous material storage. These variations may contain specific clauses and provisions related to the nature of the stored substances, safety requirements, and environmental considerations.