Description:
Gain an understanding of the basic provisions of current lease forms used in the oil and gas industry.
This foundation level topic examines the meaning and intent of basic lease terms and concepts. This material will examine provisions traditionally found in an oil and gas lease and review how those provisions are evolving to meet the challenges of recent shale development. It will also help you correlate noteworthy events on a leased tract with applicable terms and provisions in the controlling lease and to reinforce essential lease-related skills.
The oil and gas lease is the most important contract in the energy industry. This material begins by exploring the nature of mineral ownership and the creation of oil and gas leasehold interests; and then presents an analysis of the basic clauses of the oil and gas lease and discussing the interaction of those clauses.
The material concludes with a discussion of current developments in oil and gas leasing. Gain a fundamental understanding of the nature, structure, and issues related to the modern oil and gas lease.
Areas Covered in the Session:
Ownership of Oil and Gas
• Nature of Fee Mineral Title
• Mineral vs. Royalty vs. Lease
• Split Estates
• Executive and Nonexecutive Rights
Nature of Oil and Gas Leasehold Interest
• Real Estate, Personalty or Hybrid
• Creation of Oil and Gas Leasehold Interest
• Transfers and Other Interests
Basic Lease Provisions
• Granting Clause
• Habendum Clause
• Drilling Clause
• Royalty Clause
• Shut-In Royalty Clause
• "Saving" Clauses
• Pooling Clause
• Special Clauses Increasing Lessee Rights
• Special Clauses Relating to Title
• Miscellaneous Special Clauses
Implied Covenants
• Implied Covenant of Development
• Implied Covenant to Protect |Against Drainage
• Implied Covenant to Market
• Implied Covenant of Further Exploration
Current Developments
• Surface Use and Development
• Hydraulic Fracturing
• Operational Restrictions
Credit Information (Sponsored by Lorman Education Services):
- CLE
- NALA
Only registered attendee will receive continuing education credit.
Faculty:
Kent Altsuler, Lewis Brisbois Bisgaard & Smith LLP
- Partner in the Houston office of Lewis Brisbois Bisgaard & Smith LLP
- Practice focuses in the areas of areas of energy, business, and partnership dispute litigation
- Represented local, national, and international companies – including drilling companies, gas marketers, and oil field service providers -- in connection with disputes, contracts, and bankruptcy issues
- J.D. degree, with honors, University of Texas; B.A. degree, magna cum laude, Duke University
Christopher S. Heroux, Lewis Brisbois Bisgaard & Smith Llp
- Partner in the Denver and Houston offices of Lewis Brisbois Bisgaard & Smith LLP and vice-chair of the firm’s National Corporate Practice Group
- Has a wide-ranging transactional law practice focused in the areas of oil and gas, energy and mining law, representing local, national and international companies in connection with mergers and acquisitions, joint ventures, participation and development projects
- Represents clients in merger, acquisition and sale agreements, participation, development and leasing transactions, title examination, drilling and operating agreements, gathering, transportation and pipeline easement agreements, appropriation, acquisition and transfer of water rights, as well agreements for fluid management and disposal services, and product purchase, sale and processing agreements
- Handled numerous mergers and acquisitions transactions in many of the major U.S. oil and gas basis, involving more than 1 million acres of oil and gas leasehold and more than three billion dollars of transaction value
- Began his career in litigation, and has extensive experience in financial and oil and gas disputes
- Lead counsel in the trial of jury and non-jury cases and was a member of the legal team representing Oklahoma’s largest independent oil and gas producers in litigation resulting in the current judicial construction of the cessation of production clause in Oklahoma oil and gas leases, Voiles v. Santa Fe Minerals, Inc., 1996 OK 13, 911 P.2d 1205
- Adjunct professor at The University of Tulsa, Collins College of Business, School of Energy Economics, Policy and Commerce, teaching courses in the Masters of Energy Business Program
- Licensed to practice in Oklahoma and Texas
- J.D. degree, with honors, The University of Tulsa College of Law; B.A. degree, Loyola University of Chicago
(Not available outside the US)