Energy companies sometimes seek to drill on private land, which can trigger a series of decisions for landowners. Unfortunately, many landowners aren’t familiar with these matters. This can make it difficult for them to know exactly what they need to ask and what options are available to help them remain protected.
Mineral rights may allow drilling, but surface rights are also a factor in these decisions. Landowners have leverage when it comes to negotiating surface damage agreements. Those agreements should reflect more than just the drilling’s physical footprint.
What factors can impact surface damage compensation?
Compensation can include damages for decreased land value, lost crop income, disruption to livestock operations and long-term land restoration expenses. It’s critical that the agreement between the energy company and the landowner covers the damages that are currently known and those that may occur in the future.
One of the best ways that landowners can protect themselves is to get a clear plan for access road installation, well placement, fencing, water usage and waste management. Getting these additions to your land removed or mitigating the impact on your land once the contract is completed should also be a priority before the project starts.
Each of those things should be covered in the contract if they apply to your situation. This gives you the basis for seeking remedies if the company deviates from the contract terms.
It’s often not enough to negotiate only the surface damage agreement. Landowners can also request monitoring and enforcement of the terms. This can include provisions for baseline water testing and other similar measures for contamination.
Surface damage agreements are more than just a formality when you’re working with an energy company seeking rights on your land. This is a chance to preserve your land’s value and character. Having experienced legal guidance is critical to help ensure that you have optimal protections throughout the process.