Surface Damages Clauses

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Surface Damage Clauses

 

 The typical industry oil and gas lease contains a surface damage clause that provides: the “Lessee shall pay for damages caused by its operations to growing crops and timber on said land.”  This type of damage clause  covers only damage to crops and timber.  A broader damage clause from a negotiated lease from a large mineral owner provides:

 

Lessee shall pay for all damages to Lessor’s real and personal properties of any kind arising out of operations under this Lease, including but not limited to damage caused by salt water or other effluent or by forest fires caused by its operations and origi­nating on the Leased Premises or on any adjacent or contiguous premises under the control of, or being operated by, Lessee.  Lessee shall promptly notify Lessor’s nearest employee or the State Forestry Commission (whichever may be notified more quickly) of any fire of which it is aware, regardless of cause, and shall use its best efforts to extinguish any fire resulting from its operations regardless of location.  Pits and excavations made during drilling operations shall be filled by Lessee and the surface restored, as nearly as reasonably possible, to its original condition; and if Lessee shall fail to do so the cost to Lessor of such filling and restoration shall be paid to Lessor by Lessee.

Copyright 2011 by Edward G, Hawkins. All rights reserved.