in Texas. Spurs may be part of his attire when you visit his offi ce. That’s because he’s often working cattle in his 500- cow operation off the rim of Palo Duro Canyon. He also has pastures in the northern Panhandle. But don’t let his drover appearance fool you. He has written numerous documents on min- erals and SUA. Mineral lease agreements are often similar, depend-
ing on the amount of royalty involved. SUAs, however, can involve everything from development and proper use of roads, to guaranteeing that water resources for livestock are available, even if a water well becomes tainted. “These agreements cover everything from construc-
tion and use of roads to pits, to locations, to pipelines,” Nickum says. “Lease hounds will make all kinds of promises
about their company’s good faith. But landowners who believe them when they sign a ‘Producer’s 88’ lease (which heavily favors the oil and gas company) may soon be seeing trash on the roads, unfenced locations, gates left open, cattle crippled by nudging from trucks, trails across grass and a hundred other things that range from damage to annoyance.”
tscra.org
Express agreements Typical express agreements are part of the SUA
or are attached addendums. They will likely include right-of-way provisions, which enable the oil company to enter specifi c property, identify specifi c features of the land and specify which parts of the property the company may access. Overhead power lines, seismo- graphic tests, annual rental fees and other provisions may be included. Agreements should detail the types and locations
of roads to be used. “Specifi cations for roads can in- clude many factors,” Nickum says. “For example, if caliche pads and roads are to be built and you have caliche pits on your property, part of the agreement may be that caliche from your pit should be used in road construction. “Surface use agreements should set out signifi cant
money to be paid for locations, roads and pipelines.” Use of gates should be in an agreement. Livestock
may need access to other pastures or water sources. “Part of the agreement may require that if oil company personnel fi nd a gate open or closed, they must leave it that way,” Nickum says, stressing that the agreement may call for the oil company to pay for injuries to cattle
March 2014 The Cattleman 95
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