How does the law protect surface owners from damages caused by oil and gas production?
In Washington, laws protect surface owners from damages caused by oil and gas production. The state has laws that require oil and gas producers to obtain a surface use agreement with the surface owner before beginning production activities on their leased property. This agreement lays out how the oil and gas producer will use the property to produce oil and gas. It also outlines processes for mitigating potential damages caused by production activities. The agreement covers things like establishing surface locations for pipelines, access points for workers and vehicles, and provisions for controlling the environmental impact of activities. The surface owner is also protected by a provision in the lease agreement that requires producers to maintain an insurance policy to cover any costs that may arise in the event of an accident or damage caused by production activities. Producers are required to keep this insurance policy in force throughout their entire lease term and to update it as needed. In addition, the surface owner can seek compensation for damages caused by production activities under the Oil and Gas Conservation Act. This Act requires producers to pay compensation to surface owners in the event of any damage to their property due to production activities. Finally, the surface owner also has recourse to pursue legal action if they feel they have been wronged. The Washington courts provide a means for surface owners to seek legal remedies if they are not being adequately protected by the Oil and Gas Conservation Act.
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