Environmental

Texas has significant oil and gas production activity. A 'surface use agreement' (SUA) protects a Texas landowner by:

APreventing all drilling on their property
BEstablishing the terms under which oil and gas operators can use the surface of the property, including compensation for damages✓ Correct
CTransferring surface rights to the mineral owner
DRequiring TCEQ approval for all drilling operations

Explanation

When mineral rights are severed from surface rights, a surface use agreement (SUA) negotiated between the surface owner and the mineral owner (or their lessee) establishes how the surface will be used for oil and gas operations, including placement of wells, roads, pipelines, compensation for surface damages, and restoration obligations.

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