Surface Owner Agreements

Surface owner agreements are negotiated between the surface owner and the mineral lessee and describe how the mineral lessee will enter upon the surface, develop and extract the natural gas. Even if the surface owner does not own minerals, an agreement is still negotiated.

The surface owner agreement may include but is not limited to the following:

• Where facilities will be located
• Where discharge points will be located
• Where roads and pipelines will be located
• The monetary compensation paid for damages associated with the mineral lessee’s operation
• Mitigation for possible off-site and off-lease interruptions of current agricultural or other uses
• Surface restoration including re-seeding of surface
• Noxious weed control

In addition to the surface owner agreement, a water well mitigation agreement is usually offered for wells permitted by the Wyoming State Engineer’s Office or the Montana Department of Natural Resources, which may be affected by natural gas development.

Where necessary, companies will also negotiate rights-of-way for access to lay and maintain pipelines, gathering lines and roads.

All of your concerns should be discussed with the operator. You may also want to seek the professional advice of a landman or attorney. Mineral and surface ownership are each considered a property right. Honest and good faith communication during negotiations and throughout the development will ensure that all parties’ interests are protected and disputes minimized.

Royalty Owner Information


Royalty owners are those who own the mineral rights or subsurface on the property to be developed. For those who are inexperienced in negotiating an acceptable oil and gas lease, we recommend Hints on Negotiating an Oil and Gas Lease from the Real Estate Center.