Negotiating an Oil and Gas Lease (Creek County OK)

Recommended PDF: Lease clauses and forms, negotiation (RECOMMENDED)

http://www.montana.edu/softwaredownloads/energydownloads/MineralLeasingHandouts.pdf

Landmen.net - Clauses and Forms

Landmen.net – Clauses and Formshttp://www.landmen.net/clausesforms/clausesforms.htm  LEASE PROVISIONSOption to Extend Lease Surface Damages No Surface Operations Oil & Gas Only Royalty Increase Escalating Royalty Clause Minimum Royalty Clause Shut-In Royalty Clause Pugh…
Negotiating Your OIl & Gas Lease | Oil, Mineral & Gas Law

Negotiating Your OIl & Gas Lease | Oil, Mineral & Gas Lawhttp://www.kwgd.com/negotiating-oil-and-gas-leaseOne of the more difficult things landowners are called upon to do is negotiate an oil and gas lease.  Oil and gas leases contain many unique terms in the industry, making interpretation and…

Difficult lease provisions:
http://www.hapl.org/attachments/calendarevents/438/Difficult%20Lease%20Provisions_HAPL%20Technical%20Workshop%20Paper.pdf

Mineral lease considerations

Mineral lease considerationshttps://www.ndsu.edu/pubweb/~saxowsky/aglawtextbk/ref_topics/Mineralleaseconsiderations.htmAll parties to an oil and gas lease view development as the ultimate goal. To this end, provisions in a lease should permit the oil company freedom to carry out an efficient exploration, drilling,…
Mineral lease: royalty clause — ND Oil & Gas Lawhttp://www.ag.ndsu.edu/ndoilandgaslaw/mineralowners/royaltyclauseWhen the lease is signed, the company pays the mineral owner an initial cash bonus, perhaps as a lump sum or perhaps expressed in dollars per acre (e.g., see paragraph 1 of the State lease).…
Net vs. Gross proceeds for gas - Mineral Rights Forum

Net vs. Gross proceeds for gas – Mineral Rights Forumhttp://www.mineralrightsforum.com/group/caddo-county-ok-oil-gas/forum/topics/mineral-lease-net-vs-gross-proceeds-for-gasI am negotiating a mineral lease for oil and gas.  The lease form grants a 3/16 royalty on net proceeds realized by lessee, less certain costs for taxes, marketing, processing, etc.  Another lease I…

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10 things to do

Oil and Gas Leasing – Top 10 Things To Do

Oil and Gas Leasing – Top 10 Things To Dohttp://www.mineralweb.com/owners-guide/lease-proposals/oil-and-gas-leasing-top-10-things-to-do/Gather any and all supporting documents related to your ownership (both mineral and surface). This may include: deeds, deeds of trust, maps, wills, previous leases, mineral or royalty conveyances,…

10 common mistakes

Oil and Gas Leases – Tips on Mineral Lease Negotiating

Oil and Gas Leases – Tips on Mineral Lease Negotiatinghttp://www.mineralweb.com/owners-guide/lease-proposals/oil-and-gas-leases-10-common-mistakes-during-mineral-lease-negotiation/Don’t immediately pick up the phone to the leasing agent (landman), gushing with emotion that you’ve received a gas lease in the mail. If there’s ever a signal that says you’re an early signer…

Bonus vs. Royalty (cash now vs later)

Bonus vs royalty - Mineral Rights Forum

Bonus vs royalty – Mineral Rights Forumhttp://www.mineralrightsforum.com/group/creek-county-ok-oil-gas/forum/topics/bonus-vs-royaltyOver the past 15 years my interests in several counties have yielded over 30 leases with no production to speak of. Recently I’m seeing structured leases with a fairly high bonus per acre and a…

Pugh Clause

Pugh Clause – Understanding the Horizontal & Vertical Pugh Clausehttp://www.mineralweb.com/owners-guide/lease-proposals/pugh-clause/The Pugh Clause (sometimes misspelled “pew  clause”) is named after Lawrence Pugh, a Crowley Louisiana attorney who developed the clause in 1947, apparently in response to the Hunter v.…

http://harrison.agrilife.org/files/2011/06/pugh_5.pdf
Transcript:
VERTICAL SEVERANCE CLAUSES
PUGH CLAUSE (SOMETIMES REFERRED TO AS A FREESTONE RIDER):
“If a part of the leased premises is included in a pooled unit or units,then, at the end of
the primary term, only the land that is included in the pooled unit or units shall continue
to be held by the lease.”

(This language makes the creation of the pooled unit or units a condition for the
application of the Pugh Clause to the lease. If no pooled unit is created,there is no
vertical severance.)

An alternative on much smaller tracts is “All or Nothing.” “If any part of the leased
premises is included in a unit, then all the land much be included.”

USE THIS ON SMALLER TRACTS.

RUBBERBAND CLAUSE (A MODIFIED PUGH CLAUSE):
“If all or a part of the leased premises is included in a production unit or units (whether a
pooled or unpooled), then, at the end of the primary term, only the land in the production
unit or units shall continue to be held by the lease.In the event that the land is included in
more than one production unit, then each production unit shall be view for purposes of
the lease as individual and distinct leases and the lease provisions apply separately to
each.”

This language makes the creation of a production unit, whether it is pooled or not, the
condition for the applications of the vertical severance clause. It makes each production
unit a separate lease. Production or operation from one production unit cannot continue
the lease on a production unit where production or operations have ceased. Each
production unit will revert to the landowner as operations or production ceases.

This also means that during the lease term, the horizontal severance clause applies on a
unit-by-unit basis. Thus, a deep well drilled on one production unit will not hold any land
below a shallow well drilled on another unit.)
USE THIS ON LARGER TRACTS.
http://harrison.agrilife.org/files/2011/06/pugh_5.pdf

Volume/Production Verification, Well Data

Oklahoma Corporation Commission

Oklahoma Corporation Commissionhttp://www.occeweb.com/Orawebapps/OCCOraWebAppsone.htmlWell Browse Database Search for old and new well information in the “New Well Browse Database”. Well Browse Database Help
Oklahoma Corporation Commission - Electronic Well Data

Oklahoma Corporation Commission – Electronic Well Datahttp://www.occpermit.com/WellBrowse/Home.aspxWell Name/Number Well Name Well Number API Number API Number Ex: 35003; 3500300001; 35003000010000 Location County Section Township Range Meridian Quarters –Select County– ADAIR ALFALFA ATOKA…
Oil and Gas Volume Verification – How to Verify Your Production

Oil and Gas Volume Verification – How to Verify Your Productionhttp://www.mineralweb.com/owners-guide/leased-and-producing/oil-and-gas-production-volume-verification#verify-oil-and-gas-productionThe good news is that technology now makes it easy and affordable to validate exactly what production volumes oil and gas companies are reporting to the oil and gas regulatory agencies. You can do…

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