(a) The oil and gas developer is obligated to pay the surface owner compensation for:

1. (1) Lost income or expenses incurred as a result of being unable to dedicate land actually occupied by the driller's operation, or to which access is prevented by the drilling operation, to the uses to which it was dedicated prior to commencement of the activity for which a permit was obtained, measured from the date the operator enters upon the land and commences drilling operations until the date reclamation is completed;
2. (2) The market value of crops, including timber, destroyed, damaged or prevented from reaching market;
3. (3) Any damage to a water supply in use prior to the commencement of the permitted activity;
4. (4) The cost of repair of personal property up to the value of replacement by personal property of like age, wear and quality; and

5. (5) The diminution in value, if any, of the surface lands and other property after completion of the surface disturbance done pursuant to the activity for which the permit was issued determined according to the market value of the actual use made thereof by the surface owner immediately prior to the commencement of the permitted activity.

   The amount of damages may be determined by any formula mutually agreeable between the surface owner and the oil and gas developer.