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Damage Releases and Their Potential Impacts to Landowners

Damage Releases

We carefully review Damage Releases and explain the
potential impacts to our Landowners.

A "Damage Release" is an agreement between the oil & gas company and the Landowner/occupant to  ‘Release’ one party from a Claim(s) that the other party may assert against them. Typically, the oil & gas company provides financial compensation to the Landowner to release claims against the company.


​In oil & gas agreements, Landowners are commonly asked to sign a ‘Release’. The company uses a 'Release' to discharge any claims or potential claims (such as property damages or personal injury) that the Landowner may assert against them.


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 before paying the Landowner financial compensation for property damages incurred due to the company’s operations on the Landowner’s property.

The Landowner must fully understand the impact and breadth of any Release before signing this essential legal document.


Most Damage Releases presented to Landowners are extensive. However, they should be narrowly tailored to result in the Landowner only releasing limited and specific claims in exchange for the agreed-upon financial compensation.

Companies or their brokers draft the Damage Releases presented to the Landowner. They are generally designed to be as broad as possible to eliminate any future claims and company liability. 

Do not fall victim to a broad Damage Release or other Release documents.


Agri-Energy Partners Ltd. carefully reviews Damage Releases and other Release documents for Landowners. We will thoroughly explain the potential impact of any Release document to the Landowner and, when necessary, will negotiate acceptable Release language for the Landowner’s benefit. 

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