Lease Provisions Archives - Landman

Lease Provision Penalties: Hard vs Soft

Lease Provision Penalties: Hard vs Soft
In this episode I’d like to chat about a part of lease provisions that people landmen, lease analysts, and land managers may not typically keep track of.  I’ve written several articles in the past on lease provisions, but this will address them from a different perspective. As land professionals, we know that we need to keep track of the provisions that are applicable to agreements we own or manage.  However, it is not always obvious what types of information needs to be captured.  One bit of data that is important for a number of provisions is whether the provision contains a ...

Book Review: Landman’s Legal Handbook

Book Review: Landman's Legal Handbook
Over the past several weeks I’ve had the opportunity to read the Rocky Mountain Mineral Law Foundation’s newest edition of the Landman’s Legal Handbook. If there is one word to sum up this book, it is “encyclopedic”. I’ve had the opportunity to read and review several books that are targeted to landmen, title attorneys and other land professionals — and typically they all contain approximately the same information conveyed in different ways. I have to say that the Landman’s Legal Handbook contains information that I haven’t read in any other books, and the depth in which the material is reviewed ...

Be Careful With No Surface Usage Provisions

Be Careful With No Surface Usage Provisions
I was recently cleaning out some old files and came across a difficult situation I dealt with several years back.  Some of you may have dealt with similar issues in the past, but I’m certain many of you have not.  Evaluating no surface usage provisions in leases is an integral part of the E&P life-cycle.  It is important when you buy the lease from the Lessor, when you acquire a lease, during operations and later in the life of the asset when you have maintenance operations.  While many of us have experience with leases which outright ban any use of ...

Consent to Assign — A Scourge Upon Your Lease

Consent to Assign -- A Scourge Upon Your Lease
As landmen in the field, an often mentioned request by mineral owners is that the lease not be assignable without consent of the lessor.  On the surface this is a perfectly reasonable request, because Mr. Johnny just wants to make sure that he knows who holds his lease and that they are good folks.  Unfortunately this clause can cause all sorts of heart burn later down the road. Most legal departments draft this clause with a caveat, “such consent will not be unreasonably withheld.”  Unfortunately most leases don’t define the word ‘unreasonable’, and there are a multitude of perfectly reasonable-reasons ...

Book Review: Oil and Gas Title Examination

Book Review: Oil and Gas Title Examination
So I’ve spent the last several weeks digesting a book by George J. Morgenthaler, Oil and Gas Title Examination.  The book is designed for attorneys who prepare title opinions, but it will be very useful to the experienced title researcher.  When a title researcher understands what a title examiner is looking for, it will assuredly help them to deliver a higher quality product. When you purchase the book you will have the option of receiving an e-book version or a hard-bound copy.  I reviewed the hard-bound book, and I was particularly impressed with the quality of the printing and binding. ...

Continuous Drilling, Operations, and Development – What’s the Difference?

Continuous Drilling, Operations, and Development - What's the Difference?
There are so many lease provisions that can be thrown into an agreement that often times the meanings can become skewed.  More often than not, they can even mean different things to different people.  It’s important to communicate with the other party to determine the intent, and ensure that the language conveys the intent of both parties.  So, as the start of my series exploring various lease provisions I’m going to discuss continuous drilling, continuous operations, and continuous development. The truth is that all three of these clauses are savings clauses, and are therefore very similar in application.   Generally speaking, ...

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