Mineral Rights Owner Liability

Oil and Gas Leasing Help
#1

I am negotiating for me family over a lease of mineral rights in Wyoming.

Does any one know what liability the mineral rights owners have should

there be some type of spill or disaster in WY?

Is there a way to word the lease agreement to release the mineral rights owner

from liability of damage done by the lessee?

Can the mineral rights owners still get sued if the water gets messed up by oil drilling?

Does anyone know Wyoming statutes that may assign liability to the lessee vs the

lessor (rights owner)?

#2

Jim:

I am not familiar with Wyoming statutes, but in Texas, the operator is held responsible for any for damages incurred during drilling operations. These statutes are enforced by the Railroad Commission of Texas which is the regulatory agency involving oil and gas operations in Texas. I know of no instance where the lessor has been held responsible for any damages during drilling operations. There are other agencies that could get involved over environmental issues but the responsibility is on the operator.

#3

Charles,

Thanks alot for your answer. I am guessing many states have something similar to TX.

Do your think a limitation of liability in the lease agreement would be a good idea too?

#4