Test Your Knowledge of Landowner Liability

Quizzes

Test Your Knowledge of
   Water Rights and
   Water Leasing
Test Your Knowledge of
   Landowner Liability
What's Your Landlord-
   Tenant IQ?
How Energy Efficient
   Are You?
Mortgage Foreclosure
   Facts
Who Gets Title?
Private Property Rights
Coping with
   Condemnation
Accessing Property
Oil and Gas Leasing
Landlord-Tenant
   Controversies
Texas Wills
Licensing
   Requirements
Homestead Test

Market Reports

Texas Cities...

Quiz
Test Your Knowledge of Water Rights and Water Leasing
By Judon Fambrough

All water located on the surface belongs to the property (surface) owner.
True False

A watercourse is defined as a channel with a well-defined bed, visible banks and a permanent water source.
True False

In all likelihood, percolating water beneath the surface belongs to the surface owner, not the mineral owner.
True False

The rule of capture, which allows landowners unlimited pumping rights, applies both to groundwater and to oil and gas.
True False

Common carrier cross-country pipelines transporting oil and gas have the power of eminent domain in Texas. However, only municipalities (and possibly water supply districts) have the power to condemn property for water pipeline easements.
True False

Most, if not all, groundwater lease forms being used in Texas are patterned after Producers 88 Lease forms used to lease minerals.
True False

When negotiating a groundwater lease, the landowner receives better protection negotiating a covenant rather than a condition.
True False

As with mineral leases, the groundwater lessee (the company taking the lease) has the implied right to use as much of the surface as is reasonably needed to explore for and produce the groundwater. The lessee need not clean up nor pay for surface damages.
True False

The calculation of surface damages in an oil and gas lease is, to a large extent, based on the number of acres needed for the drill site. The same criteria applies to surface damages under a groundwater lease.
True False

A Memorandum of Lease should never be filed in the deed records in lieu of the actual lease.
True False

"Time is of the essence" means the lessee must perform on or before a specific date or be in breach of the lease. Time is of the essence is implied both in mineral and groundwater leases.
True False

Any limitation on the rule of capture as applied to the production of groundwater comes primarily through the creation of a local underground conservation district.
True False

The criteria for converting production into its monetary equivalent for purposes of paying royalty in groundwater leases is based on market price (or value).
True False

Unless the landowner limits the water production to a specific depth or to a specific aquifer in the lease, the groundwater lessee may produce from any depth or formation to the center of the earth.
True False

Unless the landowner specifies otherwise when negotiating the groundwater lease, he or she shares in all costs necessary to make the water marketable and to transport it to market. The landowner's percentage of these costs is based on the size of the royalty.
True False

For an explanation of all answers click here.

Solutions Through Research

News :: Publications :: Data :: Homebuying :: Software :: Education :: Cybersites