Board: means the Board of Oil, Gas, and Mining. See Utah Code 40-6-2
Contract: A legal written agreement that becomes binding when signed.
Division: means the Division of Oil, Gas, and Mining. See Utah Code 40-6-2
Gas: means natural gas, as defined in Subsection (10), natural gas liquids, as defined in Subsection (11), other gas, as defined in Subsection (17), or any mixture of them. See Utah Code 40-6-2
Lease: A contract transferring the use of property or occupancy of land, space, structures, or equipment in consideration of a payment (e.g., rent). Source: OCC
Oil: includes tar sands produced at the wellhead in liquid form through enhanced recovery operations authorized by the board in accordance with Subsection 40-6-5(3)(c). See Utah Code 40-6-2
Oil and gas operations: means to explore for, develop, or produce oil and gas. See Utah Code 40-6-2
Operator: means a person who has been designated by the owners or the board to operate a well or unit. See Utah Code 40-6-2
Owner: means a person who has the right:
(a)
to drill into and produce from a reservoir; and
(b)
to appropriate the oil and gas produced for that person or for that person and others. See Utah Code 40-6-2
Surface land owner: means a person who owns, in fee simple absolute, all or part of the surface land as shown by the records of the county where the surface land is located. See Utah Code 40-6-2
Surface use agreement: means an agreement between an owner or operator and a surface land owner addressing:
(a)
the use and reclamation of surface land owned by the surface land owner; and
(b)
compensation for damage to the surface land caused by oil and gas operations that result in:
(i)
loss of the surface land owner's crops on the surface land;
(ii)
loss of value of existing improvements owned by the surface land owner on the surface land; and
enter onto surface land under which the owner or operator holds rights to conduct oil and gas operations; and
(b)
use the surface land:
(i)
to the extent reasonably necessary to conduct oil and gas operations; and
(ii)
consistent with allowing the surface land owner the greatest possible use of the surface land owner’s property, to the extent that the surface land owner’s use does not interfere with the owner’s or operator’s oil and gas operations.
(2)
Subject to Subsection (3), except as is reasonably necessary to conduct oil and gas operations, an owner or operator shall:
(a)
mitigate the effects of accessing the surface land owner’s surface land;
(b)
minimize interference with the surface land owner’s use of the surface land owner’s property; and
(c)
compensate a surface land owner for unreasonable:
(i)
loss of a surface land owner’s crops on the surface land;
(ii)
loss of value to existing improvements owned by a surface land owner on the surface land; and
(iii)
permanent damage to the surface land.
(3)
An owner or operator is not required to:
(a)
obtain location or spacing exceptions from the division or board; or
(b)
utilize directional or horizontal drilling techniques that are not:
(i)
technologically feasible;
(ii)
economically practicable; or
(iii)
reasonably available.
(4)
The requirements of Subsection (2) do not apply to the extent that they conflict with or impair a contractual provision relevant to an owner’s or operator’s use of surface land for oil and gas operations.
(5)
(a)
The provisions of this section do not prevent:
(i)
a person from seeking a remedy allowed by law; or
(ii)
an owner or operator and a surface land owner from addressing the use of surface land for oil and gas operations through:
(A)
a lease;
(B)
a surface use agreement; or
(C)
another written contract.
(b)
An agreement described in Subsection (5)(a)(ii) shall control:
(i)
the use of surface land for oil and gas operations; and
(ii)
compensation for damage to the surface land caused by oil and gas operations.
