Principles of the Oil & Gas Lease

This course will provide a solid understanding of the more common provisions and the legal significance of an oil and gas lease. This course will discuss: (1) the granting clause, which outlines the purpose of the lease and the substances that can be explored and produced; (2) limits and rights regarding surface operations; (3) the duration of the lease; (4) extension of the primary and secondary terms of the lease; (5) the royalty clause, which allocates to the landowner a certain portion of the substances produced; (6) surface damages; (7) "pooling," i.e., consolidating the leased premises with adjoining leased tracts; (8) the assignment clause, which permits both the lessor and the lessee the unrestricted privilege of assigning their rights under the lease; (9) the warranty clause, which binds the landowner to defend interest in, or title to, the leased premises; (10) the lessee's right to free water, oil, and gas; (11) the force majeure clause, which protects the oil companies from liability and loss of the lease whenever causes beyond their control suspend operations; and (12) other clauses the landowner may demand.

 Modified: 7/27/2008
 Designed By Creative Websiteings
Continuing Education Hours

AAPL, NALTA, NADOA and NARO offer continuing education hours for each of our classes.
AAPL and NALTA offer continuing education hours for each on-line class.

Contact us at info@petroleumeducation.com

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