Keeping the Lease Alive: Standard Savings, Terminations & Administrative Clauses
This class is a wonderful opportunity to better understand how best to keep the lease alive by understanding the relationship of the various termination, savings, and administrative clauses. It should be especially valuable to landmen, land techs, lease title analysts, division order analysts, attorneys, paralegals, legal assistants, members of management, lenders, investors and anyone who needs to understand the often confusing and surprising rights and duties of the parties.
Students will understand that the oil and gas lease includes termination clauses such as the "unless" delay rental and the shut in royalty clauses and the habendum clause requiring that the well be spudded by the end of the primary term unless the lease can be saved from termination through continuous operations, the dry hole clause, application of the force majeure clause, etc. Students will learn why the proportionate reduction and pooling clauses also can be viewed as savings clauses as they typically allow for smaller payments to the mineral owner without the risk of termination. Students will examine all of these clauses and consider the impact of, non-payment of delay rentals and royalties, the non-apportionment rule, entirety provisions, transfers and other actions by lessees, the effect of assignment and surrender provisions and the meaning of "producing in paying quantities and the impact of express or statutory requirements to do more. Students will also examine various defenses to lease termination including notice before forfeiture provisions, waiver and estoppel, production prevented by lessor's misconduct, suspended operations during lease challenges, acceptance of free gas by lessor, adverse possession and force majeure. Students will also understand the special advantages and disadvantages of owning federal leases with regard to savings and termination clauses. Students will negotiate some of the clauses in a role playing exercise.
Dr. Patrick Fitzgerald, Ph.D., Ed.D., J.D.
Dr. Patrick Fitzgerald is Senior Partner in the law firm Fitzgerald & Associates with offices in Dallas and Oklahoma City where his practice includes various areas of law related to the oil and gas industry. He is "of counsel" with a Denver law firm specializing in Oil and Gas Law. Concurrently, he is a Distinguished Visiting Industry Expert in Energy Management and Petroleum Land Practices in the Daniels College of Business at the University of Denver. He is also a Visiting Scholar in Finance in the Price College of Business at the University of Oklahoma and a Lecturer in Energy Finance with the University of Colorado Denver. At Texas Christian University, he is a Distinguished Scholar and Expert with the Energy Institute. He teaches various land management courses for the University of Texas at Austin and is an Affiliated Scholar in the Center for Global Energy, International Arbitration and Environmental Law at The University of Texas School of Law. He also teaches for the McGuire Energy Institute in the Cox School of Business of Southern Methodist University and for the American Association of Petroleum Landmen. Dr. Fitzgerald is the author of several soon to be published "must have" texts soon to be published by the American Association of Petroleum Landmen (AAPL) where Fitzgerald is a regular contributor to Landman.
|G060131Q||Nov 1||8:30 am - 4:30 pm|
|Registered: 1||7.0 Hours|