New Clause for Surface Use Agreement -- Water Testing

Oil and Gas Leasing Help
1

I am always in the state of refinement in my leases, contracts, etc.

I added a new clause for Surface Use Agreements, leases where the mineral owner is also the surface owner, etc.

The clause is as follows:

6. Water Testing: Grantee shall test all existing water wells, including water wells specifically located on or off the Leased Premises that are located within 3000 feet of the center of the pad-site and/or centerline of any wellbore path prior to commencing drilling operations. In the event that it is proven that Grantee’s drilling operations damage a previously tested water well, Grantee shall replace Grantor’s water supply with a comparable water supply.

This is not perhaps my final version, but this is where I am right now. This tests not only all water wells on the leased premises, but any water well within 3000 feet of the wellbore, whether on the leased premises or not.

Hope that this might be of some help.

Best

Buddy Cotten
2

How is this going to be enforced if a person is not leased to the same company you are

3

Does a "comparable water supply" mean that the Grantee would be obligated to chlorinate (remediate) the well water, and/or 2.) drill a new well?

... just curious ...

Thank you.

Pat

4

Dear Charles,

Makes no difference. If it is in one lease, then the surface owner is covered. I am putting this in (once I get the kinks worked out) in all my leases where the mineral lessor owns the surface. I am going to attempt to put it in all the SUA agreements.

If it is refused, then I will draw my own water and have it witnessed and held by a county authority or put in a safety deposit box or something. Some proof of what the water was prior to drilling and production. The oil company would be liable, so a baseline needs to be drawn prior to operations.

All you lawyer types can chime in. Your comments are welcome.

Buddy Cotten

Charles Cunningham said:

How is this going to be enforced if a person is not leased to the same company you are

5

Dear Pat,

My intention was to replace the water supply, so that is what I said. Not remediate by somehow fixing.

IF they mess up the well, they need to go to a different and deeper water sand with comparable quality water.

Best

Buddy Cotten

Ms. Pat Malone said:

Does a "comparable water supply" mean that the Grantee would be obligated to chlorinate (remediate) the well water, and/or 2.) drill a new well?

... just curious ...

Thank you.

Pat

6

Buddy

It is an excellent clause. I am looking forward to the final product.

Charles

Buddy Cotten said:

Dear Charles,

Makes no difference. If it is in one lease, then the surface owner is covered. I am putting this in (once I get the kinks worked out) in all my leases where the mineral lessor owns the surface. I am going to attempt to put it in all the SUA agreements.

If it is refused, then I will draw my own water and have it witnessed and held by a county authority or put in a safety deposit box or something. Some proof of what the water was prior to drilling and production. The oil company would be liable, so a baseline needs to be drawn prior to operations.

All you lawyer types can chime in. Your comments are welcome.

Buddy Cotten

Mineral Manager


Charles Cunningham said:

How is this going to be enforced if a person is not leased to the same company you are

7

Buddy, I would suggest adding something to the effect that a copy of the water wells "complete water analysis" (that's another issue) is required to be provided to the lessee prior to any location work begining. The analysis needs to be analyzed by a professionally licensed, independent company. Not sure saving the water would be required if the analysis exists?

I also would appreciate seeing your final paragraph, if possible.