Understanding Surface Damages and Dominate Mineral Estate in Oklahoma

In several situations in the State of Oklahoma the Mineral Estate has been severed from the Surface Estate. Oklahoma law holds that the mineral estate is dominant. The Mineral owner or owners have the right to freely use the surface estate to the extent reasonably necessary for the exploration, development and production of the oil and gas under the property. A company or individual may exercise the right to freely use the surface estate for the benefit of the mineral estate. This is referred to as the “Dominant Mineral Estate.”

A company can gain the right to explore for minerals on the property once they have obtained an Oil and Gas Lease. The company that acquires the Oil and Gas Lease is referred to as the “Lessee”. The mineral owner granting the lease is the “Lessor”.

The Oil and Gas Lease grants the Lessee broad rights to use the surface for the purpose of exploring for and producing oil, gas and other minerals. Rights include, but are not limited to, the right to conduct seismic tests, drill wells, ingress and egress, access to build, maintain, and use roads for access to and from well sites and facilities, to build and use pipelines to service wells and facilities on the property, to use surface and subsurface water on the leased premises for drilling and production operations, and to drill and operate injection wells to enhance lease recovery and dispose of production produced water.

The Lessee has the right to conduct these exploration activities without the permission from the surface owner.

Surface Damage and Surface Use Agreements

Exploration Companies often prefer to avoid potential disputes by obtaining a “Surface Damage/Use Agreement” from the Surface Owner and to pay them a one time fee for the use of the surfaces. A Landman will enter in to negotiations with a Surface Owner to obtain such an agreement. In the event, an agreement is not reached; the Exploration Company still has the right to conduct reasonable surface activities, and will begin court proceedings to do so.