What Happens When An Oil Well Is Drilled On Your Land

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What Will Happen To Your Land When An Oil or Gas Well Is Drilled?

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If you are concerned about what will happen if an oil or gas well is drilled on your land then you are justified. Much about what happens to your land is up to you in the terms you agree to when you sign your oil or gas lease.

The oil and gas industry of earlier years did not have the best reputation when it came to leaving the land as they found it although the mistakes of the past are seldom repeated in the modern oil and gas industry.

It should be of particular concern to you how your land is restored after drilling activity ceases. Whether you are the owner of the mineral rights or just the surface rights does not matter. However, don't be complacent if you do own the mineral rights and are elated that an oil or gas will is being drilled on your land.

You still need to look out for your interests since they wells may play out and you will be left with damaged property.

You have the right as the owner of the surface rights for compensation for any damages to your land. This includes loss of use and future loss of use. The oil company will have to pay you a certain fee based on the amount of land that it destroyed. Your future income off of the areas where tanks and wells are placed will be zero for many years to come.

(Some) oil companies employees are notorious for leaving gates open and allowing farm animals to escape. If they are lost and killed you are entitled to compensation. A good real estate attorney can draw up a contract that states how you will be paid for your loss and the time you spent gathering up loose livestock.

It is your right to negotiate how your property is accessed by oil rig workers and production employees. You can stipulate that routine, non emergency work must occur during certain hours and you can be compensated is oil drilling affects the income you make from activities such as hunting which will be disrupted.

You are entitled to a gate guard at the entrance to your property. How strict the gate guard is can be stipulated by you, up to the point of inspecting all vehicles that come into your land for firearms, alcohol and drugs.

If you only own the surface rights you may still reap a windfall if the oil company needs certain things that may be on your land. If you have a layer of gravel bearing soil on your property you may sell that to the oil company if it does not fall under mineral rights on your deed.

You may also sell any surface water since it may be needed to use for drilling fluid when the well is drilled. You could make several thousand dollars from the sale of your pond water alone.

Also, if the oil company drills a dry hole you may request that they make a water well out of it for you. Since water wells are very expensive to drill this can also be a win - win situation for you. You may only have to pay for the casing and pump as your end of the bargain.

Just remember that you have many legal rights that you can enforce. Just because you don't own the mineral rights doesn't mean that you can't stop an oil company from leaving your property a mess. And if you do own the mineral rights to your land don't put up with destruction of your property just because you might, and I mean might, get an oil well.

Many of these details may seem trivial and nit picking, however if you don't think of everything that might affect your land you may spend years resenting the oil company for making profits off of your land but leaving it a mess.

Check for a good oil and gas or real estate attorney in your yellow pages and contact them before signing a lease.

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