Granting Clause and Surface Operations

With few exceptions, the grant of an oil and gas lease carries with it the implied right to use as much of the surface area as is reasonably necessary to explore and produce the oil and gas. Oil companies generally desire a much broader usage of the surface area. Consequently, most leases contain provisions permitting a wide range of surface activities.

Even though the lessee may be liable for surface damages, the inconvenience of unwanted and unwarranted structures and entries upon the surface area by the lessee may be avoided to some degree by the following:

1. Do not grant the unrestricted right to construct permanent facilities such as power stations, storage tanks, or employees' quarters. Also, do not grant an unrestricted right for the surface disposal of salt water if valuable agricultural land is to be preserved. Instead, state that the prior written consent of the lessor is needed for both the construction and location of such structures and sites.
2. Alternatively, attach a map of the proposed lease area specifying where roads, pipelines, telephone lines, salt water disposal sites and even wells may be located. For convenience sake, landowners generally do not permit wells within 200 feet (or some other stipulated distance) of a dwelling. Further, provide that all underground transmission devices such as pipelines and telephone lines must be buried below plow depth (or a specified depth) in agricultural areas. If deviations are necessary, permit them only after securing the lessor's written consent.
3. Landowners wishing to cultivate or graze the area immediately above any pipelines should direct the lessee to use the double ditch method for laying pipe. This method requires the top soil be placed on one side of the trench and the subsoil on the other. When back filling, the subsoil is replaced first followed by the top soil.
4. Specify whether the lessee's structures and equipment must be removed at the expiration of the lease or be forfeited.
5. Identify the parties liable for the construction and maintenance of fences, gates, or similar structures around the premises, pits, drilling sites, and above intersecting pipelines. The precise dimensions and characteristics of these retention devices may need to be included to prevent the erection of inadequate fences and gates.