§ 30-5-405 — Surface damage and disruption payments; penalty for late payment

(a) The oil and gas operator shall pay the surface owner
as follows:
(i) A sum of money or other compensation equal to the
amount of damages sustained by the surface owner for loss of
production and income, loss of land value and loss of value of
improvements caused by oil and gas operations;
(ii) The amount of damages and method of compensation
may be determined in any manner mutually agreeable to the
surface owner and the oil and gas operator. When determining
damages, consideration shall be given to the period of time
during which the loss occurs;
(iii) The payments contemplated by this subsection
shall only cover land directly affected by oil and gas
operations. Payments under this subsection are intended to
compensate the surface owner for damage and disruption. No
person shall sever from the land surface the right to receive
surface damage payments.
(b) An oil and gas operator who fails to timely pay an
installment under any annual damage agreement negotiated with a
surface owner is liable for payment to the surface owner of
twice the amount of the unpaid installment if the installment
payment is not paid within sixty (60) days of receipt of notice
of failure to pay from the surface owner.