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11 Cards in this Set
- Front
- Back
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Accommodation doctrine elements:
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Accommodation doctrine applies if lessee's use of surface (1) substantially interferes with preexisting surface use; (2) alternative methods less injurious to surface are practicable for lessee to use instead; and (3) this alternative is available on the leased tract.
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Lessee can properly withhold royalty payments in two situations:
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(1) dispute of title to the tract or
(2) refusal by lessor to sign a "standard D/O" that includes only statutorily approved language. |
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The mineral estate owner has the following rights to the surface:
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Right to use the surface as reasonable necessary to develop the minerals.
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What kinds of use might subject a lessee to liability to the lessor?
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* excessive use (i.e., more than reasonably necessary to develop, 5 acres when 2 would do) or
* negligent use (e.g., failing to follow RR Comm's rules on pollution control). |
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Damages for negligence or unreasonable use of land by lessee:
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* decreased value of land from unreasonable use;
* tort damages applicable to negligent acts causing damage to property or persons |
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What is the usual interval for periodic payments of production in an O&G lease?
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Monthly.
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What is the implied covenant to market?
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Lessees are req'd to market O&G as would a reasonably prudent operator considering interests of both the lessor and lessee.
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How does a lessee breach the implied covenant to market?
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If a market is available when a lessee fails intentionally to market.
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What effect do homestead rights have on the granting of O&G leases?
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If the homestead belongs to H-W, joinder of both spouse is necessary even if land is one spouse's SP.
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After executing an O&G lease, what does the lessee own?
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A fee simple determinable in the minerals.
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How should a lessor protect his rights to the surface estate when executing an O&G lease?
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Lessor should put restrictions on lessee's use of the surface if lessor has future plans for the surface. E.g., planning to build a house, restrict lessee's ability to maintain a well w/in a certain distance from house.
Lessee is always subject to the reasonable use of surface rules (and accommodation doctrine for pre-existing uses). |
