Negotiating an Oil and Gas Lease

The oil, gas, and energy sector is booming in jurisdictions such as Texas, Oklahoma, Louisiana, Ohio, Pennsylvania, and West Virginia. New technologies are allowing productive drilling to occur in places that were once inconceivable; as a result, more and more landowners are being approached by energy companies with offers of money in exchange for a simple signature. This course is designed to assist general practitioners answer the question, “Do you think I should sign this?”

Learning Objectives:

I.    Know the basic composition of an oil and gas lease and related terminology

II.   Find applicable laws concerning drilling in your state

III.  Answer basic questions about what kinds of rights and liabilities accompany an oil and gas lease

IV.  Identify potential areas of concern such as drilling location, minimum royalty payments, and surface use

V.   Negotiate for favorable clauses on behalf of your client, particularly if a substantial amount of acreage exists.

VI.  Grasp what circumstances your client’s lease may terminate

VII. Identify what circumstances your client is entitled to certain payments (bonus, royalty, shut-in)