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FOR LAND ADMINISTRATION IN OIL AND GAS INDUSTRIES

2007-02-05 13:24:17 · 1 answers · asked by D.A. 2 in Environment

1 answers

Well, oil and gas come from well under the ground, and so the activities and ownership of the land on the surface, where the derricks will be built, are of critical importance. Typically an oil or gas company does not buy the land, but only leases it, along with the mineral rights. Then once they have gotten out what they can of the oil or gas, the land reverts to the original owner. So the mineral rights contract must include what the company will do to restore the surface once they are done.

These rules were worked out by case law over a number of years, and some are different from one state to another. But generally, the rule is you do specific performance. That is, it is not enough to pay damages for not restoring the surface. You must restore the surface as you agreed in your contract. A judge will insist.

2007-02-07 06:19:12 · answer #1 · answered by auntb93again 7 · 0 0

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