Companies operating oil and gas wells on private property protect their interests by signing leases with property owners. They may even secure easements to ensure that they have access to the property.
For the most part, oil and gas companies operating wells on private property have broad protection from complaints made by property owners. However, sometimes property owners experience significant financial issues generated by the conduct of oil and gas companies.
They may mismanage resources, resulting in the contamination of groundwater or soil. Water issues can affect property habitability, while soil contamination could affect property value and possibly also agricultural crops. What happens when oil and gas operator errors lead to property contamination?
Negligence is actionable
Generally speaking, well-managed oil and gas operations should have a minimal environmental impact. Unfortunately, mistakes regarding storage, chemical use and transportation to and from off-road facilities can lead to spills and similar issues that have devastating environmental consequences.
Provided that property owners can show that the company was negligent or that individual employees engaged in negligent conduct, property owners can theoretically take legal action seeking to hold oil and gas well operators responsible for remediation costs or the negative impact that damage to the soil or groundwater at a property might have on the value of the property.
Reviewing the terms of the initial lease and the damage to the property related to oil and gas while operation can help frustrated property owners understand their options. Oil and gas companies are liable for the standard consequences of oil and gas well operation, but they may be liable in cases involving verifiable negligence.