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.
Title: New Mexico Surface Use Agreement Between Oil and Gas Lessee and Surface Owner: Ensuring Surface Damages Compensation and Saltwater Disposal into Existing Well Bore Keywords: New Mexico, surface use agreement, oil and gas, lessee, surface owner, surface damages, disposal of saltwater, existing well bore Introduction: A Surface Use Agreement (SUA) in New Mexico is a legally binding document drafted between an oil and gas lessee and the surface owner, outlining the terms of utilization of the surface for exploration, drilling, and production purposes. This comprehensive agreement ensures that both parties understand their rights and responsibilities concerning surface damages and the disposal of saltwater waste into an existing well bore. Types of New Mexico Surface Use Agreements: There are several types of New Mexico Surface Use Agreements, each having specific provisions based on the individual circumstances and needs of the lessee, as well as the surface owner. Some common variations include: 1. Standard Surface Use Agreement: This is a general agreement that addresses standard provisions for surface damages and saltwater disposal. It serves as a starting point for negotiations between the lessee and surface owner, providing a foundation for discussions to tailor clauses based on the specific project and environmental conditions. 2. Enhanced Surface Use Agreement: An enhanced SUA may incorporate additional provisions to offer increased protection for the surface owner. These provisions can focus on measures to mitigate noise, dust, and light pollution, land reclamation procedures, and stricter regulations for saltwater handling and disposal. 3. Voluntary Compensation Agreement: In circumstances where a surface owner prefers monetary compensation rather than direct involvement in oil and gas activities, a Voluntary Compensation Agreement can be negotiated. This allows the lessee to compensate the surface owner for potential damages, granting the lessee the right to access and use the surface as necessary. Surface Damages Provision: The SUA includes a detailed section that addresses surface damages resulting from oil and gas operations. The agreement ensures that the lessee is responsible for both preventing and compensating for any harm caused to the surface owner's property, including damages to land, crops, improvements, and any consequential losses. The lessee may be required to restore the surface conditions, or monetary compensation can be negotiated based on the extent of the damages. Saltwater Disposal Provision: The disposal of saltwater, often associated with oil and gas production, is a crucial aspect covered in the SUA. The agreement outlines the guidelines for the safe and environmentally responsible disposal of saltwater waste into an existing well bore. It includes measures to protect groundwater quality, prevent leakages, and comply with applicable state laws and regulations. Conclusion: The New Mexico Surface Use Agreement is a critical document governing the interaction between oil and gas lessees and surface owners. It provides protection for the surface owner's property and addresses various aspects, including surface damages compensation and the proper disposal of saltwater waste. Tailored agreements help establish mutually beneficial relationships, allowing oil and gas operations to proceed while safeguarding the environment and the rights of the surface owner.
