How to Avoid Disagreements During Oil and Gas Extractions

The only activity which can cause disputes between the surface rights owner and the mineral rights owner is at the time of oil and gas extractions. As these extractions might cause damages to the property of the land owner, they may lead to some misunderstandings and finally leads to disputes. To avoid such situation, there is a necessity for them to understand the wording of the agreement particularly about the rules of extractions. Once any one misses that clause and are not sure about them they will land in to troubles, once the company starts extractions.

In general, as the agreement is prepared by the company it may state that the owner of the mineral rights will have all the rights to extract the minerals at any time, using any method without paying any compensation to the land lord. If this is the case, the surface owner after signing the agreement do not has the right to question the company regarding the damage caused to the property in the process of production. To know whether the agreement has such clauses it is necessary to take the legal assistance and to make sure that you agree to what was mentioned in the deal.

The main idea of signing an agreement between the two parties is to make sure that they are in full agreement on things like how agreement will occur, what reclamation will be done, and who is responsible for the anticipated problems. etc. Many of the states do have a rule which limits the mining company’s extraction process and other compensations. However, the state laws may or may not reach the expectations of the land owner, so while doing the agreement, if he understands what was mentioned in the agreement with respect to the extraction procedure, he can object the things to which he does not agree. Similarly, the company can also make its own wishes in the agreements, so that there will be no chance of dispute or a rise of issue during the process of extraction.