Property Ownership

In New Mexico, a 'surface use agreement' in oil and gas transactions establishes:

AThe price paid for mineral rights
BThe rights and obligations of the mineral rights owner when using the surface of the property✓ Correct
CZoning approval for drilling
DEnvironmental compliance requirements for the state

Explanation

A surface use agreement negotiates the terms under which oil and gas operations will use the surface of the property, protecting the surface owner by specifying compensation, access routes, and reclamation requirements.

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