Oil and Gas at Your Door? (2005 Edition) - Earthworks
Oil and Gas at Your Door? (2005 Edition) - Earthworks
Oil and Gas at Your Door? (2005 Edition) - Earthworks
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Legal <strong>and</strong> Regul<strong>at</strong>ory Issues<br />
FIGURE II-3. SELECTED STATES’ NOTIFICATION REQUIREMENTS 399<br />
tenant, however, the oper<strong>at</strong>or has no oblig<strong>at</strong>ion to consult with them unless the surface owner<br />
appoints the tenant for consult<strong>at</strong>ion. 400<br />
Similarly, in Illinois, oper<strong>at</strong>ors must make an offer to discuss access, placements of roads, construction<br />
<strong>and</strong> placement of pits, restor<strong>at</strong>ion of fences, use of surface w<strong>at</strong>ers, removal of trees<br />
<strong>and</strong> surface w<strong>at</strong>er drainage changes caused by drilling oper<strong>at</strong>ions. 401 Once discussions are conducted,<br />
there is nothing th<strong>at</strong> oblig<strong>at</strong>es a company to accommod<strong>at</strong>e the surface owner’s concerns.<br />
There is, however, a provision for surface owner compens<strong>at</strong>ion th<strong>at</strong> acts as an incentive<br />
for companies to limit the damages done to the surface est<strong>at</strong>e. Otherwise, the company may<br />
be taken to court by the surface owner (<strong>and</strong> if the surface owner’s case is successful, the company<br />
pays for <strong>at</strong>torney fees). 402<br />
In Wyoming, if the negoti<strong>at</strong>ions with surface owners are unsuccessful, a company wanting to<br />
develop coalbed methane (CBM) may go to st<strong>at</strong>e court to try to get “right of access” to the surface<br />
owner’s property—this could include access to the wells, roads, reservoirs, pumping st<strong>at</strong>ions<br />
<strong>and</strong> other facilities. In order for a company to obtain court-ordered access over the surface<br />
to develop the CBM, the oper<strong>at</strong>or must prove th<strong>at</strong> it made “reasonable <strong>and</strong> diligent efforts”<br />
II-14