Consideration of Easements In South...

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Consideration of Easements In South Dakota 2011 New Horizons in Oil and Gas Conference South Dakota’s Commissioner Of School and Public Lands Jarrod Johnson October 6, 2011 Rapid City, SD

Transcript of Consideration of Easements In South...

Consideration of Easements In South Dakota

2011 New Horizons in

Oil and Gas Conference

South Dakota’s Commissioner Of School and Public Lands

Jarrod Johnson

October 6, 2011

Rapid City, SD

What is an Easement?

What Lawyers Say:

What is an Easement? “An interest which one person has in

the land of another. A primary

characteristic of an easement is that its

burden falls on upon the possessor of

the land from which it is issued and that

characteristic is expressed in the

statement that the land constitutes a

servient tenement and the easement a

dominant tenement.”

- Black’s Law Dictionary

What is an Easement?

What Normal People Say:

What is an Easement?

A legal right to use someone else’s land

for a specific purpose. Once that right

is established, it takes priority over

other uses of the land in the area where

the easement exists.

Key Point: Easements should

always be for a specific purpose.

Easement

An easement is the right to use

another person's land for a stated

purpose. It can involve a general or

specific portion of the property.

Right-of-Way

A right-of-way is a type of easement that gives

someone the right to travel across property

owned by another person.

Landowner Issues

Easements Granted (wind, access, transmission,

shadow, flicker, noise…) Crop Damage / Other damage Indemnification Liability Cap for Landowners

Insurance

Development Milestone

Decommissioning Bond Most Favored Nations Clause Confidentiality Provisions Development Covenant

Allocation of Payments Definition of Gross Revenues

Termination

Provisions that survive termination

Non-Interference Provision

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and solar)

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Audit Rights (in the case of a royalty)

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Easements can get nasty too!

If something can go wrong, it will!

Gates are the greatest issue on

easements in ranch country

I hear the train a coming!