Texas Surface Tenant's Subordination to An Oil and Gas Lease

• Category: Oil Gas and Minerals - Subordination
• State: Multi-State
• Control #: US-OG-143
• Format: Word; Rich Text

Description

If an oil and gas lease has been granted on lands in which there is a surface tenant, it may be necessary or advisable to obtain a subordination of the agreement or lease with the surface tenant, to the oil and gas lease. This form provides for that subordination and directs the manner in which compensation for any damages shall be paid. Texas Surface Tenant's Subordination to An Oil and Gas Lease involves the legal agreement between a property owner (surface tenant) and an oil and gas company (lessee) regarding the rights and use of land for oil and gas exploration and extraction. Subordination refers to the surface tenant's agreement to prioritize the lessee's rights over their own, allowing the lessee to access and develop the land for drilling and production purposes. Here is a detailed description of this agreement along with its various types: 1. Definition: Texas Surface Tenant's Subordination to An Oil and Gas Lease is a legal contract in which the surface tenant acknowledges and agrees to subordinate their surface rights to the lessee's subterranean rights. This arrangement allows the lessee to access the land for oil and gas operations while protecting the surface tenant's interest. 2. Purpose: The purpose of subordination is to provide the necessary rights and access to the lessee for exploration, drilling, and extraction activities, facilitating efficient oil and gas operations. It ensures the lessee can exercise their subterranean rights without unnecessary hindrances from the surface tenant. 3. Terms and Conditions: The subordination agreement typically outlines the terms and conditions under which the surface tenant allows the lessee access to the property. It may include details about access routes, land use arrangements, compensation, environmental protections, indemnification clauses, and dispute resolution mechanisms. 4. Types of Subordination: a. Non-Disturbance Agreement: A non-disturbance agreement can be included within the subordination clause, ensuring that if the lessee defaults on their obligations, the surface tenant's rights and the lease agreement will remain in effect. b. Surface Use Agreement: A surface use agreement is often incorporated into the subordination clause, defining the specific use of the land, including the location of facilities, roads, and equipment. It addresses surface-related matters such as landscaping, reclamation, and environmental protection. c. Surface Damage Agreement: A surface damage agreement establishes the compensation mechanism for any damages caused to the surface tenant's property due to oil and gas operations. It outlines the processes for assessment, restoration, and fair compensation for any loss or damages incurred. d. Diversionary Interest Agreement: In some cases, a diversionary interest agreement may be included, granting the surface tenant the right to reclaim the surface rights once the oil and gas lease expires or terminates. In summary, the Texas Surface Tenant's Subordination to An Oil and Gas Lease is a legal arrangement that grants the lessee priority access and usage rights beneath the property's surface. It safeguards the interests of both the surface tenant and the lessee by establishing clear terms for land use, compensation, environmental protection, and potential reversion of rights.

Texas Surface Tenant's Subordination to An Oil and Gas Lease involves the legal agreement between a property owner (surface tenant) and an oil and gas company (lessee) regarding the rights and use of land for oil and gas exploration and extraction. Subordination refers to the surface tenant's agreement to prioritize the lessee's rights over their own, allowing the lessee to access and develop the land for drilling and production purposes. Here is a detailed description of this agreement along with its various types: 1. Definition: Texas Surface Tenant's Subordination to An Oil and Gas Lease is a legal contract in which the surface tenant acknowledges and agrees to subordinate their surface rights to the lessee's subterranean rights. This arrangement allows the lessee to access the land for oil and gas operations while protecting the surface tenant's interest. 2. Purpose: The purpose of subordination is to provide the necessary rights and access to the lessee for exploration, drilling, and extraction activities, facilitating efficient oil and gas operations. It ensures the lessee can exercise their subterranean rights without unnecessary hindrances from the surface tenant. 3. Terms and Conditions: The subordination agreement typically outlines the terms and conditions under which the surface tenant allows the lessee access to the property. It may include details about access routes, land use arrangements, compensation, environmental protections, indemnification clauses, and dispute resolution mechanisms. 4. Types of Subordination: a. Non-Disturbance Agreement: A non-disturbance agreement can be included within the subordination clause, ensuring that if the lessee defaults on their obligations, the surface tenant's rights and the lease agreement will remain in effect. b. Surface Use Agreement: A surface use agreement is often incorporated into the subordination clause, defining the specific use of the land, including the location of facilities, roads, and equipment. It addresses surface-related matters such as landscaping, reclamation, and environmental protection. c. Surface Damage Agreement: A surface damage agreement establishes the compensation mechanism for any damages caused to the surface tenant's property due to oil and gas operations. It outlines the processes for assessment, restoration, and fair compensation for any loss or damages incurred. d. Diversionary Interest Agreement: In some cases, a diversionary interest agreement may be included, granting the surface tenant the right to reclaim the surface rights once the oil and gas lease expires or terminates. In summary, the Texas Surface Tenant's Subordination to An Oil and Gas Lease is a legal arrangement that grants the lessee priority access and usage rights beneath the property's surface. It safeguards the interests of both the surface tenant and the lessee by establishing clear terms for land use, compensation, environmental protection, and potential reversion of rights.