RANCHING Business
rubbing against or kicking it. The cattle drank diesel fuel in the resulting spill, killing some of them. Con- sider requiring the oil/gas company to fence tanks that have valves or insist on locking valves. “Another possible health hazard for cattle is loose
trash,” Wallace says. “Normally [ranchers] want to make sure there’s no trash left on the location and that oil companies place barrels at the front end or the back end of the ranch. [Then] each person can deposit trash in a trash barrel, which should be emptied periodically.” Requiring damages is one way to prevent injuries
to livestock caused by the oil/gas lessee’s negligence. Although the University of Texas Rate And Damage Schedule is a great source for determining amounts paid for fences, roads or crops, Wallace prefers that the lessee pay replacement value plus for cattle and other livestock. “You can replace a cow, but you still have to go to
the auction to pick it up,” Wallace explains. “It’s not like the replacement value of a cow is $2,000 and that cow magically appears on the ranch.” The replacement value plus approach works espe-
cially well if a rancher has registered animals or uses embryo transfer technology in his operation. If these animals are killed, the rancher has lost the genetics
TRI-COUNTY LIVESTOCK
MARKET, INC.
he has developed. After all, it is unlikely the replace- ment animals are going to be located, purchased and delivered to the ranch immediately. “It’s real tempting for a landowner to get on the
internet to fi nd an example of an SUA that he can in- corporate into his lease or sign a separate agreement,” Baum explains. “It’s tempting to use your brother-in- law’s surface use agreement, because [some ranchers] don’t want to spend the money to hire an attorney to draft something that’s directly applicable to them. If you’re a big guy, that’s not a smart thing to do because a surface use agreement is just like a lease in the sense that it needs to be applicable to the situation that the landowner has. “The No. 1 thing that ranchers need is a surface use
agreement,” Baum advises. “It’s not an afterthought. It’s a necessity. If you don’t [have one], you are at the mercy of the courts that have favored the oil/gas companies for years. Not everyone can afford to have a board-certifi ed oil/gas attorney, but if you have big mineral interests and lots of property, it’s worth the money to be sure your rights are protected. Be sure that you’re represented by somebody who knows what he’s doing.”
If you have one head or a truckload, Tri-County Livestock Market
will work for you to see you receive top dollar for your livestock.
Sale Every Saturday at 10:00 a.m.
Hwy. 79 N. New Summerfield, Texas 75780
Barn 903-726-3291
www.tricountyls.net
Your Business Is Always Appreciated!
Graham Land & Cattle Co.
Custom Feedlot And Growing Programs
P.O. Box 925 • Gonzales, Texas 78629 (830) 672-6504 Office
Charles Graham, DVM, Owner - (512) 285-4833 Tyler Graham, Owner
Jay Gray, Gen. Mgr. - (830) 437-5665
Maurice Janda, Feedyard Mgr. - (830) 672-6504
www.grahamfeedyard.com • e-mail:
grahamcattle@gvec.net
DATE SAVE THE Find Us on Facebook! 60 The Cattleman July 2016
thecattlemanmagazine.com
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