Leases Archives - Landman Insider.com

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 ...

Outsource Your Land Administration

Outsource Your Land Administration
Oftentimes we hear about ‘outsourcing’ and we think negative thoughts.  Some of you may even be expecting to hear about how some company now has lease analysts or division order analysts based in India — although that isn’t what I’m talking about today.  I’d like to discuss a trend I’m seeing in small to medium sized operators that I believe is gaining speed.  I’ve seen a few companies capitalize on this concept by being innovative and ‘ahead of the curve’.  This trend I’m talking about is the outsourcing of land administration duties to outside service companies.  Most of these companies ...

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, ...

Have You Gone to Work at 2 AM?

Have You Gone to Work at 2 AM?
If you are currently working in Tyler County, West Virginia you might be heading to work at 2 AM.  My friend Angela Perkins recently mentioned on LinkedIn the troubles with space in the records room in the county: A nightmare in Tyler County WV! So far, we have been threatened by those who are “standing in” for others, and then leave 10-15 minutes, exchanging places with those who were home sleeping, or staying in close buildings, sleeping on cots before the court house opens. The bulk of us, drive 1-2 hours to work, only to find that at 2 am, ...

Does Your Client Know What A Pugh Clause Is?

Now, I know you are all reading this because you said “of course everyone who isn’t a moron knows what a pugh clause is.”  However, after an interesting discussion on LinkedIn (see here) several months back I began specifically asking my clients how they defined a vertical and horizontal pugh clause.  I got more than one answer, and it opened my eyes to a way that one could easily make mistakes for their client. Why?  Because the ‘old’ way most companies (and many still do) defined a vertical pugh is as a depth severance after the primary term.  Likewise, they ...


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