Regularly monitor the activities of easement holders to make sure they are holding up their end of the agreement.


Much information has been provided in oral presen-


tations and in newspaper and magazine articles on how to write surface-use leases to facilitate reimbursement to the landowner for surface damages and to ensure the land is restored to its original condition after pro- duction has ceased. Very few recommendations have been written or presented on monitoring compliance with surface agreements. “Agreed upon management of surface rights is not


automatically guaranteed when the lease or agree- ment is signed,” says Jeff Petter of Catoico Resource Management, LP. “Transportation systems are normally established


by contractors, who may not have read or even seen the agreement, so it is important to keep tabs on ease- ment construction and use. It is too late to request the company to follow agreement terms after construction is completed. Make sure the construction crew is fully aware of any unique terms in the agreement prior to their entry onto the property.” Catoico is a unique asset management company.


They manage farms and ranches for people who want to retain ownership, but do not want the responsibil- ity for the day-to-day operations. Catoico also manages oil and gas leases for landowners who don’t have the desire or expertise to assume the responsibility. The name, “Catoico,” was derived from Cat = cattle, oi = oil, and co = cotton. “Before signing a lease or agreement, read it and


make sure you understand it,” cautions Petter. “If you don’t understand the legal terms, ask your attorney


92 The Cattleman March 2015


or some other knowledgeable person to explain them to you. It is very important to know what is in the document.”


Keep records “File copies of all correspondence concerning oil and


gas leases in an organized fashion for quick retrieval when necessary,” says Petter. “Telephone conversations should be confi rmed in emails so if there is a misun- derstanding by either party, the different opinions can be resolved in a timely fashion.” “Agreed upon dates for initiation and completion


of required tasks are an important part of the lease. Enter the dates on a calendar or spreadsheet to aid in monitoring activity. Entries may include dates for tasks such as clearing brush, digging ditches for pipe- lines and setting utility poles. Often landowners ask that rights-of-way construction be scheduled around ranch activities such as lambing, cattle shipment or hunting,” Petter says. The landowner should try to establish a good rapport


with a designated contact person in the oil company and be fl exible on initiation and completion dates if unavoidable delays occur due to weather or other un- preventable events. In turn, the oil company should understand why the landowner asks for a work sched- ule change when a roundup is delayed due to lack of labor or some other uncontrollable factor. Work performed by the oil company has to be


monitored to ensure that the performance dates are followed.


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