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Simple English definitions for legal terms
surface-damage clause
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A quick definition of surface-damage clause:
A surface-damage clause is a part of a lease agreement for oil and gas operations. It requires the person leasing the land to pay the owner for any damage caused to the surface of the land during the operations. This can include things like damage to the soil, plants, or buildings on the land. It's also sometimes called a location-damage clause or damages clause.
A more thorough explanation:
A surface-damage clause is a provision in an oil and gas lease that requires the lessee (the company that is leasing the land) to compensate the lessor (the owner of the land) for any damage caused to the surface of the land as a result of oil and gas operations. This compensation can be for all types of damage or for a specific kind or degree of damage.
For example, if an oil company drills a well on a farmer's land and damages the crops or the soil, the surface-damage clause would require the company to pay the farmer for the damage caused. Another example could be if the company damages a road or a fence on the property while transporting equipment.
The purpose of a surface-damage clause is to ensure that the landowner is fairly compensated for any harm caused to their property during oil and gas operations. It also encourages the lessee to take precautions to minimize damage to the surface of the land.