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Permalink Reply by The_Baron on July 22, 2009 at 7:08

#1 - Can't sell gas without a pipeline. Pipelines have to go somewhere.

#2 - The lease gives access to the surface, even if the mineral owner does not own the surface unless the lease specifically forbids surface operation or the mineral owner does not have any surface rights (i.e. minerals were reserved with the stipulation that the mineral servitude would not include any surface rights). A lease gives a third party the right to drill for and reduce minerals to possesion. This by definition includes free access to the land. The lessee is responsible for reimbersment of any surface damages. How much dends on the lease. The lease can also modify this in many ways. Bottom line - it depends on your lease.

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Permalink Reply by JeffNParis on July 22, 2009 at 7:18

Thanks Baron. i appreciate you taking the time to answer my question.

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Permalink Reply by The_Baron on July 22, 2009 at 8:55

Just FYI: the granting clause on a standard lease gives the right to access:

1. Lessor in consideration of One hundred Dollars and Other Valuable Considerations ($100.00 & OVC), in hand paid, of the royalties herein provided, and of the agreement of Lessee herein contained, hereby grants, leases and lets unto Lessee, the exclusive right to enter upon and use the land hereinafter described for the exploration for, and production of oil, gas, sulphur and all other minerals, together with the use of the surface of the land for all purposes incident to the exploration for and production, ownership, possession and transportation of said minerals (either from said land or acreage pooled therewith), and the right of ingress and egress to and from said lands at all times for such purposes, including operations hereunder or in connection with similar operations on adjacent land; the land to which this lease applies and which

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Permalink Reply by The_Baron on July 22, 2009 at 8:56

Just remember, that the lease can only grant what the mineral owner owns, so if the mineral owners gave up any surface rights, this is meaningless. You can't convey what you don't own.

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Permalink Reply by The_Baron on July 22, 2009 at 8:57

This can also give rights for pipelines etc. Many operators will want additional ROW for pipelines though, just in case the lease expires.

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Permalink Reply by Randy on July 22, 2009 at 8:59

and they cant cross leased land that isn't in the unit without a ROW.

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