longtime oil towns like Midland and Odessa are booming once again and stronger than ever (just try to fi nd a good apartment or house or rent a room in the Permian Basin). In any case where the landowner
has minerals and an oil compa- ny seeks to lease the landowner’s minerals, a surface use agreement (SUA) should accompany the min- eral lease. This is to assure the use of the pasture or farmland is pro- tected from oil and gas operations that the landowner may consider abusive and damaging to their spe- cifi c property. Provisions of the SUA may ad-
dress abuse by heavy equipment, use of chemicals, action by drilling and production company employees and a host of matters specifi c to a piece of property. “In Texas, an oil and gas lease severs the land into 2 estates: the
minerals estate and the surface es- tate,” says Ron Nickum, an Amaril- lo-based attorney who specializes in oil and gas leases. “The minerals estate is the dominant estate. The law is fi rmly fi xed that the company has the right to use so much of the surface as is reasonably necessary to produce the minerals. “A landowner must understand
that surface use protections have to be express agreements, in writ- ing, set out in the lease or an ad- dendum.” Joseph B.C. Fitzsimons, attorney
and partner in Uhl, Fitzsimons, Jew- ett & Burton, PLLC, headquartered in San Antonio, says to conserve and protect a landowner’s valuable farm or ranch, a comprehensive SUA should be negotiated along with a mineral lease. “A carefully drafted SUA can protect the surface owners’ rights
while allowing for exploration and drilling,” Fitzsimons says. “A well- drafted SUA will add value to the surface estate and may provide for penalties against an oil company in cases of non-compliance.” Fitzsimons, who ranches in
South Texas, is also a director of Texas and Southwestern Cattle Rais- ers Association (TSCRA) and has served on the TSCRA Executive Committee. Conservation is in his blood and he was a National Cattle- men’s Beef Association Environmen- tal Stewardship Award winner for Region IV in 2006. In presentations centering on the
Eagle Ford Shale region, which is seeing increased fracking and hori- zontal well drilling, he encourages landowners to make good decisions in their SUA. “Land and mineral owners will have a full-time job protecting their interests during
Before the Chisholm and Goodnight-Loving Trails, Wortham - San Antonio
was insuring Texas ranchers and cattlemen.
Wortham - San Antonio puts our 150 years of experience behind every policy we write, every acre we insure, and the stock we protect:
• Property and equipment loss or damage • General liability (includes oil & gas and hunting operations on property)
• Business automobiles • Workers’ compensation
• Umbrella/excess liability • Professional liability • Animal mortality • And all your personal insurance needs
For a professional assessment of your insurance needs, please call Burton Barnes, Jr. at (210) 223-9171 or 1-800-779-4677 or visit us online at
www.worthaminsurance.com.
“Since 1852 Wortham - San Antonio has been protecting the interests of cattlemen across Texas and the Southwest. TSCRA proudly provides its endorsement of Wortham - San Antonio as a valued and trusted partner.” Eldon White, Executive Vice President, TSCRA.
WORTHAM - SAN ANTONIO 131 Interpark Blvd. San Antonio, Texas 78216
tscra.org March 2014 The Cattleman 93
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52 |
Page 53 |
Page 54 |
Page 55 |
Page 56 |
Page 57 |
Page 58 |
Page 59 |
Page 60 |
Page 61 |
Page 62 |
Page 63 |
Page 64 |
Page 65 |
Page 66 |
Page 67 |
Page 68 |
Page 69 |
Page 70 |
Page 71 |
Page 72 |
Page 73 |
Page 74 |
Page 75 |
Page 76 |
Page 77 |
Page 78 |
Page 79 |
Page 80 |
Page 81 |
Page 82 |
Page 83 |
Page 84 |
Page 85 |
Page 86 |
Page 87 |
Page 88 |
Page 89 |
Page 90 |
Page 91 |
Page 92 |
Page 93 |
Page 94 |
Page 95 |
Page 96 |
Page 97 |
Page 98 |
Page 99 |
Page 100 |
Page 101 |
Page 102 |
Page 103 |
Page 104 |
Page 105 |
Page 106 |
Page 107 |
Page 108 |
Page 109 |
Page 110 |
Page 111 |
Page 112 |
Page 113 |
Page 114 |
Page 115 |
Page 116 |
Page 117 |
Page 118 |
Page 119 |
Page 120 |
Page 121 |
Page 122 |
Page 123 |
Page 124