Companies that operate oil and gas wells often sign leases with property owners and individuals who own mineral rights. The terms of an oil and gas lease usually include the right to access certain areas of the property. Despite an existing lease and the possible exchange of capital that may have already occurred, property owners sometimes refuse access to employees seeking to install or maintain oil and gas wells.
What options do companies have when property owners refuse to allow them to access locations subject to a mineral rights lease?
Pursuing an easement
Frequently, oil and gas leases may include a requirement to provide an easement. If the company has not already secured an easement that officially protects access rights, pursuing an easement may be the best option when an owner refuses to grant access to private property. Easements can allow for the installation of access routes and protect the ability to cross private property.
Filing a lawsuit
In cases where there is already an easement in place or the original lease provides clear terms guaranteeing the right of access, a lawsuit may be necessary to enforce the agreement and hold the property owner accountable for failing to uphold their contractual obligations.
Judges can mandate compliance with an easement or access provisions included in a lease. They can also theoretically award damages to the company due to the economic impact of delayed access.
Seeking strong legal guidance and support when navigating disputes with individual property owners can help oil and gas companies avoid common pitfalls. Thorough contracts, regular communication and appropriate legal action can all limit the possibility of harm caused by non-compliant landowners.