Opinion ID: 1819129
Heading Depth: 1
Heading Rank: 2

Heading: Liability For Damages

Text: Inevitably, oil and gas exploration and development will damage the surface of the land where the activities are conducted. Such activities may also affect resources below the surface, such as groundwater. When a lease is involved, the parties may include a provision covering surface damages. Williams & Meyers, supra, § 218.11. Even if there is no special clause in the lease, general oil and gas law provides that the lessor or surface owner may recover damages caused by activities not reasonably necessary to the object of the contract. See, Williams & Meyers, supra, § 218.7; 4 W. Summers, Oil and Gas, § 652 (1967). Moreover, apart from liability based on either a surface damage clause or the theory of unreasonable surface use, liability can also be based on theories of tort law or breach of statutory duties. See Williams & Meyers, supra, § 218.10; Summers, supra. In this case, Carvers are entitled to damages from the lessee under the surface damages clause of the lease and can recover for damage to growing crops, buildings, irrigation ditches and fences. Damages resulting to these four items are payable whether the activities of the lessee that caused these damages were reasonably necessary or not. Moreover, such damages caused by lessee operations are payable whether the activity is conducted on the leased land or on other land outside the ranch and whether the resulting damages occur on the leased land or on another part of the ranch. Principles of law govern the extent of lessee's liability to the surface owner for damages not covered by the lease. Except for the four items mentioned in the lease, damages that occur to the ranch from lessee's operations on the leased land are not actionable unless the use or activity was not reasonably necessary to effectuate the purposes of the lease. See Williams & Meyers, supra; Summers, supra. Except for the four items mentioned in the lease, recovery for damage to the ranch from operations conducted outside the ranch, would depend on general principles of tort law or statute. See Williams & Meyers, supra, at § 217. The lessee is not being sued in this action, but the effect of the lease and an understanding of oil and gas law principles is relevant to this action because the Heikkilas claim the Carvers are limited to damages that ultimately are payable by the lessee, i.e., only those damages covered by the lease and those other types of damages that result from an unreasonable use. The Carvers argue the contract for deed creates liability exclusive of the lease and general principles of mineral or tort law. Where the effects of the lease and general principles of mineral and tort law meet the provisions of the contract for deed is where the controversy lies in this case.