Compensation of Surface Owners for Drilling Operations

  1. Law
  2. Tennessee Code
  3. Oil and Gas
  4. Production of Oil and Gas
  5. Oil and Gas Surface Owners Compensation
  6. Compensation of Surface Owners for Drilling Operations

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The oil and gas developer shall be obligated to pay the surface owner for:

  1. Lost income or expenses incurred as a result of being unable to dedicate land actually occupied by the driller's operation or to which access is prevented by such drilling operation to the uses to which it was dedicated prior to commencement of the activity for which a permit was obtained, measured from the date the operator enters upon the land;
  2. The market value of crops destroyed, damaged or prevented from reaching market;
  3. Any damage to a water supply in use prior to the commencement of the permitted activity;
  4. The cost of repair of personal property up to the value of replacement by personal property of like age, wear and quality; and
  5. The diminution in value, if any, of the surface lands and other property after completion of the surface disturbance done pursuant to the activity for which the permit was issued, determined according to the actual use made thereof by the surface owner immediately prior to the commencement of the permitted activity.


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