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
