Oil and Gas at Your Door? (2005 Edition) - Earthworks

Tips for Landowners
Surface Use Agreement Provisions to Consider
Development plan
• Surface owners may want to require from the company an overall development plan showing
the location of wells, roads, pipelines, compressors, water disposal/discharge, etc.
before development starts, with allowance for changes as development progresses. (See
Vermejo Park Mineral Extraction Agreement below for an example of this type of provision)
Water issues
• Address both water quality and quantity issues.
• Establish damage standards as part of the agreement. Spell out in the agreement how
much of a change constitutes damage (e.g., if your water well drops below a certain level
or water quality declines by a certain amount). Include remedies for what the company will
do if damages occur (e.g., the company will pay for the successful drilling of a new drinking
water well).
• Be clear from the opening discussion and put into the agreement that if drilling or other
development activities damage a water well or the land, the company is required to replace
the well and repair or compensate for the damages.
• Water well location (make sure your water wells are registered with the state engineer, so
that you have proof of location).
• Require the company to gather baseline water quality and quantity data by a consultant of
your choice PRIOR TO any activities on your property. Require the company to conduct periodic
monitoring of water quality and quantity, to gauge whether the company’s activities are
having an effect on your water. Make sure water sampling includes quality and quantity of:
domestic well water, surface waters, springs, and groundwater flows. And require the company
to provide regular reports of the test results.
• Require that the company disclose the quality and quantity of the water from oil and gas
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