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Surface use and damages: what happens on the ground

Under most printed leases the company may use as much of the surface as is reasonably needed to explore and produce: roads, pads, pits, pipelines, tanks and sometimes water. The surface clause is where you set limits and payments.

What it does

If you own both the minerals and the surface, the lease is your main chance to set those rules before anyone arrives.

Some states have surface damage laws that require notice or payment; others leave most of it to the lease. Either way, terms written into the lease are easier to rely on than a general rule.

If you own only the minerals, these terms still matter to whoever owns the surface, and a separate surface use agreement may cover them.

What we mark on a review sheet

Normal

  • Payment for damage to crops, timber, livestock, fences and improvements.
  • Restoring the surface when operations end.

Missing

  • Notice before the company enters or builds.
  • Where wells, roads and pipelines may go, and how far from a house or barn.
  • Use of your water, and disposal of produced water on the land.

Ask about

  • A clause letting the company use your water and surface at no charge.
  • Rights to use your surface for operations on other land.

Questions to ask the company

  1. Will you give me written notice before entering and before any construction?
  2. Will we agree on where pads, roads and pipelines go, with a set distance from the house and barns?
  3. Will you pay for surface damage and for any water you use, and restore the land when you finish?
  4. Will you agree not to dispose of produced water on my land?

Common questions

Can an oil company use my land without paying for it?

Under many printed leases the company may reasonably use the surface without paying extra. Some states require damage payments. Owners often add damage, notice and restoration terms to the lease.

What is a surface damage payment?

Money paid for damage to the surface from oil and gas work: crops, timber, fences, roads and pad sites. The lease or a separate agreement sets it.

Send it before you sign

Tell us what you got and what you want to know. We reply by email and tell you how to send the pages. A landman reads them and sends back a one-page review sheet.

Email hello@landman.review with what you got and your question, or call (307) 263-8515.