Oil and Gas Law

PART III. TAX & BUSINESS MATTERS
Chapter 13. Oil & Gas Taxation
A. Basic Principles
1. The Property Concept
2. Intangible Drilling Costs Deduction
3. Depletion
a. Cost Depletion
b. Percentage Depletion
(1) Economic Interest Concept
(2) Independent Producers' & Royalty Owners' Limitation
B. Taxation of Transfers of Mineral Rights
1. Lease Payments
a. Lease Bonus
b. Delay Rentals
c. Royalty Payments
2. Lease Transfers
a. The Sale/Sublease Distinction
b. Production Payments
c. Sharing Arrangements
C. Taxation of Oil & Gas Development
1. Forms of Ownership
a. Corporation
b. Partnership
c. Concurrent Ownership
2. Taxation of Search Costs: Geological & Geophysical Costs
3. Taxation of Development Costs
a. Intangible Drilling Costs
b. Equipment Costs
4. Taxation of Oil & Gas Production
a. Tax Treatment of the Owners of Production
b. The Crude Oil Windfall Profit Tax
Chapter 14. Oil & Gas Contracts
A. Support Agreements
B. Farmout Agreements
C. Operating Agreements
1. Purpose
2. Common Substantive Issues
a. Scope of the Operator's Authority
b. Initial Drilling
c. Additional Development
D. Drilling Contracts
1. Kinds of
2. Model Form
E. Gas Contracts
1. Term
2. Price
a. Price Escalation
b. Deregulation
c. Buyer Protection
E. Gas Contracts continued
3. Take Provisions
4. Commitment
5. Reservations
6. Conditions of Delivery
F. Gas Balancing Agreements
1. The Gas Balancing Problem
2. Common Substantive Provisions
G. Division Orders

notes. not for profit.

Bible search

Use the bible you would like! https://kay-mulan.dreamwidth.org/tag/bibles for help.

Heb 10:30
Jam 1:20
Eph 4:26-27
~
Psa 106: 7-8
1 Cor 13:5
1 Pet 5:8-10
Deu 5:8-10
~
Pro 15:1
Pro 15:4
Pro 25:15
~
Jos 24:15
Joh 20:23
Ecc 7:9

Oil and Gas Law

PART IV. OIL & GAS LEASING circa 1983
Chapter 8. Essential Clauses of Modern Oil & Gas Leases
A. Introductory Concepts
B. The Nature of the Lease
1. Both a Conveyance & a Contract
2. More a Deed Than a Lease
B. The Nature of the Lease continued
3. Legal Classification
4. Essential Provisions
C. Granting Clause
1. Size of the Interest Granted
2. Substances Covered by the Grant
3. Land Covered by the Lease: Mother Hubbard Problem
4. Uses Permitted by the Grant
a. General Principle: Lessee's Right to Use Burdens the Surface Interest
b. Limiting Factors
(1) Reasonable Use
(2) Accommodation Doctrine
(a) Rationale of
(b) Elements of
(3) For the Benefit of the Minerals Under the Surface
(a) Application of the Limitation
(b) Expanding the Implied Right
(4) In Accordance With Lease Terms
(5) In Accord With Statutes, Ordinances, Rules, or Regulations
D. Habendum Clause
1. The Primary Term
2. The Secondary term
a. Meaning of "Production"
b. How Much Production is Required: "Production in Paying Quantities"
(1) Litmus Test
(a) Operating Revenues
(b) Operating Costs
(c) The Time Factor
(2) The Legal Test
E. Drilling-Delay Rental Clause
1. "Unless" v. "Or" Leases
a. "Unless" Lease
b. "Or" Lease
c. Forfeiture of "Or" Leases
2. Drilling Option
a. Commencement v. Completion
b. In Good Faith
c. With Due Diligence
3. Payment of Delay Rentals
a. Protection of the Lessee by the Courts
(1) General Rule: Equity Not Applicable
(2) Revivor of the Lease
(3) Estoppel & Waiver
E. Drilling-Delay Clause continued
b. Protectoin of the Lessee by Lease Clauses
(1) Payment to an Agent
(2) Notice of Assignment Provisions
(3) Notice of Incorrect Payment Clauses
(a) Enforceability of Notice of Nonpayment Clauses
(b) Drafting Notice of Incorrect Payment Clauses
(4) Use of "Or" Leases
(5) Use of Paid-Up Leases
(6) Dry Hole Clause
(a) What is a
(b) When a Dry Hole is completed
(c) When Rental Payment is Due
F. Conclusion
Chapter 9. Defensive Clauses in Oil & Gas Leases
A. Clauses That Provide for Constructive Production
1. Operations Clauses
a. Well Completion v. Continuous Operations Clauses
b. Delay Between Completion of Operations & Production
2. Pooling & Unitization Provisions
a. Community Leases
b. Pooling Clauses
c. Unitization Clauses
d. Problems Under Pooling & Unitization Clauses
(1) Exercise in Good Faith
(2) Exercise in Accord With Lease Terms
(3) Duty to Exercise the Power
(4) Cross-Conveyance Theory
(5) The Right of a Non-Executive Owner to Ratify
(6) Conflict With the Rule Against Perpetuities
e. Pugh Clauses or Freestone Riders
4. Force Majeure Clauses
a. In General
b. Precise Terms Important
5. Shut-In Royalty Clauses
a. Effect of Failure to Pay
b. Scope of the Clause: Gas or Oil & Gas
c. Problems of Interpretation & Administration
(1) What Is a "Shut-In" Well
(2) When Is a Well "Shut-In"?
(3) Shut-In for Reasons Other Than Lack of Market
(4) How Long May Payments Be Made
6. Cessation of Production Clauses
a. Temporary Cessation of Production Doctrine
b. Lease Provisions
B. Administrative Clauses
1. Payment of Delay Rentals
2. Warranty Clauses
3. Lesser Interest Clause
4. Subrogation Clause
5. Equipment Removal Provisions
6. Notice of Assignment Clause
7. No Increase of Burden Provisions
8. Separate Ownership Clause
9. Surrender Clause
10. Notice Before Forfeiture & Judicial Ascertainment Clauses
Chapter 10. Lease Royalty Clause
A. Common Royalty Provisions
B. Nature of the Lessor's Royalty Interest
C. Deductions From Royalty
D. Market Value/Proceeds Problem
1. Basis of the Dispute
2. Division of Cases
3. When Market Value Royalty Is Due
4. How to Determine Market Value
5. Curing or Avoiding the Market Value Royalty Problem
a. Seeking a Compensating Higher Price
b. Specific Lease Language
c. Use of Division Orders
E. Failure to Pay Royalty
Chapter 11. Implied Covenants in Oil & Gas Leases
A. Basis of Implied Covenants
1. Implied in Fact or in Law?
2. Significance of the Distinction
B. Reasonable Prudent Operator Standard
1. Good Faith
2. Competence
3. With Due Regard for the Lessor's Interests
C. Common Implied Covenants
1. Implied Covenant to Test
2. Implied Covenant to Reasonably Develop
a. Elements of Proof of Breach
(1) Probability of Profit
(2) Imprudent Operator
b. Stumbling Blocks to Enforcement
(1) Notice to the Lessee
(2) Disclaimer or Limitation in the Lease
c. Remedies for Breach
(1) Cancellation
(2) Conditional Cancellation
(3) Damages
3. Implied Covenant for Further Exploration
a. Elements of Proof
b. Stumbling Blocks to Enforcement
(1) Notice to the Lessee
(2) Disclaimer or Limitation in the Lease
c. Remedies for Breach
4. Implied Covenant to Protect Against Drainage
a. Elements of Proof: In General
(1) Substantial Drainage
(2) Probability of Profit
b. Elements of Proof: Where There Is Drainage by the Lessee
c. Stumbling Blocks to Enforcement
(1) Notice to the Lessee
(2) Disclaimer or Limitation in the Lease
(3) Waiver or Estoppel
d. Remedies for Breach
(1) Damages
(2) Cancellation or Conditional Cancellation
5. Implied Covenant to Market
a. Within A Reasonable Time
b. At a Reasonable Price
C. Proof of Imprudence
d. Remedies for Breach
(1) Failure to Market Within a Reasonable Time
(2) Failure to Market at a Reasonable Price
e. Stumbling Blocks to Enforcement
(1) Notice to the Lessee
(2) Waiver or Estoppel
(3) Disclaimer or Limitation in the Lease
6. Implied Covenant of Diligent & Proper Operation
D. Future of Implied Covenants
Chapter 12. Lease Transfers
A. Lessee's Right to Transfer
B. Effect of Transfer on the Lessor
1. Further Rights Against the Lessee
a. Lease Covenants Run With the Land
b. The Assignment/Sublease Distinction
C. Rights & Duties of the Lessee & His Transferee
1. Protection of Non-operating Interests by Implied Covenants
2. Protection of Non-operating Interests Against "Wash Out"
3. Implied Covenants of Title From the Lessee
4. Performance or Failure of Performance by a Partial Assignee
5. Divisibility of Implied Covenants After a Partial Agreement

notes. not for profit.

RJ HELLER, US MARINE CORPS

IN THE END WE ARE BECAUSE THEY WERE.

Joyce Meyer

Let Emotions Subside and Then Decide.

transposition of, by Katrina Villanueva.

The foe is chased, the battle is done see is

The prison broken, the jewellries fleet and phlegmed;

The war is gone, confirmed is the peace,

The fetters lowst and the dungeon teemed,

The ransom made, the prisoners redeemed;

The field is won, overcomen is the foe,

Dispelled of the treasure that he emit:

Surrender to God the throne.