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A use and occupancy agreement - sometimes referred to as a U&O - is a temporary agreement between the buyer and the seller that allows one party the right to use and occupy the property for a set period of time.

A surface use agreement, which is also sometimes referred to as a land use agreement, is an agreement between the landowner and an oil and gas company or an operator for the use of the landowner's land in the development of the oil and gas.

Mineral Lessee's Implied Right to Use the Surface Estate Under Texas law, this right allows that oil company to use as much of the surface estate as is reasonably necessary for mineral exploration and production. This right is implied in the mineral lease and requires no permission or consent from the surface owner.

The broadest contractual limitation is a surface waiver agreement through which the owner of the mineral estate waives the right to use the surface of the land where the project is located. Mineral owners may not be inclined to sign such a broad limitation.

A Surface Use Agreement is a voluntary agreement between the surface owner and the mineral owner/lessee (usually an oil and gas company) that will govern relations between the two parties.

Surface rights include physical structures, trees, plants, and water. In some states, surface rights only include ownership to a particular soil depth. For example, you have enough soil ownership to plant trees or other plants but may not be able to drill for oil and gas.

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If I cannot use surface waters, what about using my well water? The lessee now wants to come onto your land to develop the oil and gas rights.Are you entitled to any compensation? If there are already existing provisions in the oil and gas lease that require compensation or protection for the surface owner, that is ideal. Utilize the land in a manner they see fit, there are benefits to taking care of your land responsibly. Attorney Douglas Clark negotiates Surface Use Agreements to maximize financial benefits while protecting your cherished land. LEASING: Mineral owners have the option of leasing or not leasing their minerals to oil and gas companies. Jones and Clark (1997) provide a qualitative typology of land use changes: intensification, extensification,. Access includes federal and state-owned lands as well as private land leased for public hunting access. He has represented land and mineral owners in the negotiations of oil and gas leases, surface use agreements and pipeline easements and rights-of-way.

If it is a lease, he will first determine if there is any potential for a future change that will change the economics for the lessee. There may be the potential for an economic development benefit in the form of increased property value of the oil and gas lease. If the opportunity for such a development exists, then he negotiates the lease with the developer. If it is a nonlease contract, he negotiates the sale of the property to a bank, a developer, or any other investor. He also negotiates the lease for the first 3-7 years, if the lease extension occurs, he negotiates the remainder of the lease at no additional cost to the landowner. He will negotiate a fair market value lease for the property, based on lease terms that are fair and reasonable to the landowner, such as the duration, cost of the oil and gas, and location of development.

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Clark Nevada Surface Use Agreement (Where Lands are Currently in Use)

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What is a surface agreement?

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