Mecklenburg North Carolina Subsurface Underground Gas Storage Lease and Agreement (From a Surface Owner, With No Right to Use the Surface of the Lands being Granted)

• Category: Oil Gas and Minerals - Leases
• State: Multi-State
• County: Mecklenburg
• Control #: US-OG-1149
• Format: Word; Rich Text

Description

This form is a subsurface underground storage lease and agreement from a surface owner with no rights to use the surface of the lands being granted. Mecklenburg County, located in the state of North Carolina, offers opportunities for subsurface underground gas storage leases and agreements. These agreements are made between the surface owner and the entity wishing to utilize the underground storage space for natural gas storage purposes. Here is a detailed description of the Mecklenburg North Carolina Subsurface Underground Gas Storage Lease and Agreement (From a Surface Owner, With No Right to Use the Surface of the Lands being Granted): 1. Purpose: The purpose of this agreement is to grant the lessee the exclusive rights to use the subsurface area of the designated lands for underground gas storage operations. The surface owner retains ownership and rights to the surface of the land. 2. Granting Rights: The surface owner grants the lessee the right to enter and use the designated subsurface area for exploration, drilling, operation, maintenance, and storage of natural gas. The lessee is responsible for all costs related to these activities. 3. Term and Renewal: The agreement specifies the initial term during which the lessee has the right to use the subsurface area. It may also include provisions for renewal or extension based on the lessee's compliance with the terms and conditions. 4. Compensation and Royalties: The agreement outlines the compensation terms for the surface owner, which may include upfront payments, annual or quarterly fees, or royalties based on the amount of gas stored and withdrawn from the site. 5. Environmental and Safety Obligations: The lessee is responsible for complying with all federal, state, and local laws, regulations, and permits related to environmental protection, safety, and well inspections. These obligations ensure the preservation of the surface area and adjacent properties. 6. Restoration and Cleanup: The agreement may require the lessee to restore the surface area to its original condition or undertake necessary cleanup activities once the gas storage operations cease. This ensures the land is returned to a usable state. 7. Indemnification and Liability: The agreement may include provisions to protect the surface owner from any liabilities, damages, or claims arising from the lessee's activities related to the gas storage operations. Types of Mecklenburg North Carolina Subsurface Underground Gas Storage Lease and Agreement (From a Surface Owner, With No Right to Use the Surface of the Lands being Granted): 1. Short-term Lease: This lease agreement allows the lessee to utilize the subsurface area for a limited duration, typically for a specific gas storage project or temporary need. 2. Long-term Lease: This type of agreement grants the lessee the right to use the subsurface area for an extended period, usually spanning several years or even decades. It is commonly employed for long-term gas storage projects. 3. Renewable Lease: A renewable lease agreement allows the lessee to renew or extend the agreement after the initial term, provided they meet certain predetermined conditions. 4. Prepaid Royalty Agreement: In some cases, the surface owner may choose to receive a lump sum upfront payment instead of ongoing royalties. This agreement offers immediate compensation in exchange for rights to the subsurface area. It is essential for both the surface owner and lessee to carefully review and negotiate the terms of the Mecklenburg North Carolina Subsurface Underground Gas Storage Lease and Agreement to ensure a fair and mutually beneficial arrangement. Legal guidance and professional advice should always be sought when entering into such agreements.

Mecklenburg County, located in the state of North Carolina, offers opportunities for subsurface underground gas storage leases and agreements. These agreements are made between the surface owner and the entity wishing to utilize the underground storage space for natural gas storage purposes. Here is a detailed description of the Mecklenburg North Carolina Subsurface Underground Gas Storage Lease and Agreement (From a Surface Owner, With No Right to Use the Surface of the Lands being Granted): 1. Purpose: The purpose of this agreement is to grant the lessee the exclusive rights to use the subsurface area of the designated lands for underground gas storage operations. The surface owner retains ownership and rights to the surface of the land. 2. Granting Rights: The surface owner grants the lessee the right to enter and use the designated subsurface area for exploration, drilling, operation, maintenance, and storage of natural gas. The lessee is responsible for all costs related to these activities. 3. Term and Renewal: The agreement specifies the initial term during which the lessee has the right to use the subsurface area. It may also include provisions for renewal or extension based on the lessee's compliance with the terms and conditions. 4. Compensation and Royalties: The agreement outlines the compensation terms for the surface owner, which may include upfront payments, annual or quarterly fees, or royalties based on the amount of gas stored and withdrawn from the site. 5. Environmental and Safety Obligations: The lessee is responsible for complying with all federal, state, and local laws, regulations, and permits related to environmental protection, safety, and well inspections. These obligations ensure the preservation of the surface area and adjacent properties. 6. Restoration and Cleanup: The agreement may require the lessee to restore the surface area to its original condition or undertake necessary cleanup activities once the gas storage operations cease. This ensures the land is returned to a usable state. 7. Indemnification and Liability: The agreement may include provisions to protect the surface owner from any liabilities, damages, or claims arising from the lessee's activities related to the gas storage operations. Types of Mecklenburg North Carolina Subsurface Underground Gas Storage Lease and Agreement (From a Surface Owner, With No Right to Use the Surface of the Lands being Granted): 1. Short-term Lease: This lease agreement allows the lessee to utilize the subsurface area for a limited duration, typically for a specific gas storage project or temporary need. 2. Long-term Lease: This type of agreement grants the lessee the right to use the subsurface area for an extended period, usually spanning several years or even decades. It is commonly employed for long-term gas storage projects. 3. Renewable Lease: A renewable lease agreement allows the lessee to renew or extend the agreement after the initial term, provided they meet certain predetermined conditions. 4. Prepaid Royalty Agreement: In some cases, the surface owner may choose to receive a lump sum upfront payment instead of ongoing royalties. This agreement offers immediate compensation in exchange for rights to the subsurface area. It is essential for both the surface owner and lessee to carefully review and negotiate the terms of the Mecklenburg North Carolina Subsurface Underground Gas Storage Lease and Agreement to ensure a fair and mutually beneficial arrangement. Legal guidance and professional advice should always be sought when entering into such agreements.