A "Damage Release" is an agreement between oil & gas company and the landowner/occupant to ‘Release’ One Party from a Claim or Claims that the Other Party may Assert against Them. Typically the oil & gas company provide financial compensation to the landowner in exchange for releasing claims against the oil company.
In oil & gas, landowners are commonly asked to sign a ‘Release’ to discharge any claims or potential claims for property damages, personal injury, or other claims that the Landowner may assert against the oil & gas company or pipeline company. In exchange for the Landowner releasing claims against the company, the Landowner is provided financial compensation.
As a practice, oil & gas and pipeline companies present a document entitled “Damage Release” to Landowners prior to paying the Landowner financial compensation for property damages incurred as a result of the company’s operations on the Landowner’s property. The Landowner must fully understand the impact and breadth of any Release before signing this important legal document. Most Damage Releases presented to Landowners are extremely broad and should be narrowly tailored to result in the Landowner only releasing limited and specific claims in exchange for the agreed upon financial compensation.
Damage Releases are drafted by companies or their broker and are generally designed to be as broad as possible in order to eliminate any and all future claims and company liability.
Do not fall victim to an over broad Damage Release or other Release document. Section 25 Management Ltd., carefully reviews Damage Releases and other Release documents for Landowners. We will fully explain the potential impact of any Release document to the Landowner and when necessary will negotiate acceptable Release language for the Landowner’s benefit.