1. Ethical Issues Related to Natural Resource Management c 5 A:Lease Agreements, Land Ownership, and the Public Interest Taken From: http://homeguides.sfgate.com/mineral- rights-surface-rights-2682.htmlhttp://homeguides.sfgate.com/mineral- rights-surface-rights-2682.html

2. Imagine…. You come home one day and there is a crew putting up an oil well in front of your house. What issues might you have with this? Noise, safety, etc.? Today we will: – Compile examples of lease agreements used in natural resources – Identify relationships between landowners and leasing companies – Determine public interest in natural resources management – Analyze impacts of natural resource management on landowners

3. History of the Problem The United States is unlike many nations. We allow private ownership of underground mineral resources. In all other countries, the minerals under the ground belong to the King or country. The first dispute over mineral properties in Texas arose over salt; in early Texas caravans of wagon trains came to El Sal del Ray Lake in Hidalgo County and transported the salt to market in Mexico. In 1862, during the war between the states, a joint resolution of the legislature ordered the governor to take possession of the salt deposit. In 1866, the constitutional convention undertook to return the salt rights to the surface owners. There are many legal precedents that occurred over the years. For more history, visit: http://www.swiftenergy.com/PUBLICATIONS/PAPERS-AND-ARTICLES/1999/gruy081199.htm http://www.swiftenergy.com/PUBLICATIONS/PAPERS-AND-ARTICLES/1999/gruy081199.htm

4. Surface Rights Versus Mineral Rights? The land owner typically has rights to the “surface” of the property—the right to farm or build on the property The land owner may or may not own what is under the property, known as “mineral” rights Mineral rights can be sold or leased separately from surface rights This sometimes create problems for surface owners

5. "Mineral Rights" allow a person or company to explore and harvest the rocks, minerals, oil and gas found at or below the surface. The owner of mineral rights can sell, lease, gift or will them to others.

6. Public Interest and Natural Resource Management What is the role of public interest in natural resource management? Think about the differing goals of the public, landowners, and companies who wish to capture/sell our natural resources There are lots of issues to consider: – Biological and Ecological principles (what is best for the environment) – Personal Attitudes and Personal Gain (what is best for the landowner) – Public Perception and Good (what is best for the general public) There are no easy answers, just lots of perspectives to consider!

7. Case Study: Unfair Share: How Oil and Gas Drillers Avoid Paying Royalties Unfair Share: How Oil and Gas Drillers Avoid Paying Royalties Read the article linked above and think about the following: – What is the cause of the debate indicated in this article? – How can landowners protect themselves from these types of problems? – Do you believe this article may be biased? Why or why not? – What can we learn about the relationship between landowners and companies?

8. Lease Agreements: Find Examples Find Examples Using the link above as well as an internet search, analyze the lease agreements: – Who do the lease agreements typically protect? – What are common characteristics of lease agreements?

9. References Natural Resource Management and Leadership in Public Arena Decision Making: A Prescriptive Framework (1996). American Fisheries Society Symposium (16)54- 63. http://fishwild.vt.edu/faculty/mcmullin/naturalresourcemanage.pdfhttp://fishwild.vt.edu/faculty/mcmullin/naturalresourcemanage.pdf Unfair Share: How oil and gas drillers avoid paying royalties (2013). Pro Publica Journalism in the Public Interest http://www.propublica.org/article/unfair-share- how-oil-and-gas-drillers-avoid-paying-royaltieshttp://www.propublica.org/article/unfair-share- how-oil-and-gas-drillers-avoid-paying-royalties Mineral Rights: Basic information about mineral, surface, oil and gas rights. Geoscience News and Information, Geology.com http://geology.com/articles/mineral-rights.shtml http://geology.com/articles/mineral-rights.shtml Texas Oil and Gas Accountability, Sample oil and gas lease and surface use agreement, a project of Earthworks: http://www.earthworksaction.org/files/publications/Texas-Sample-Model-Gas- Lease_201106.pdf http://www.earthworksaction.org/files/publications/Texas-Sample-Model-Gas- Lease_201106.pdf History of the Ownership of Mineral Rights, Swift Energy Company, Publications and Papers: http://www.swiftenergy.com/PUBLICATIONS/PAPERS-AND- ARTICLES/1999/gruy081199.htmhttp://www.swiftenergy.com/PUBLICATIONS/PAPERS-AND- ARTICLES/1999/gruy081199.htm

10. College and Career Readiness Standards Social Studies I. C. 3 Social Studies I. E. 1, 4 Social Studies IV. A. 1, 3

11. Developed by the Department of Agricultural Leadership, Education & Communications, Texas A&M University for the Texas Education Agency, Educational Excellence Project for AFNR ©Texas Education Agency, 2014