The oil and gas industry continues to navigate the effects of the Russia-Saudi oil war and Covid-19. Throughout recent months, US oil prices continually hit new record lows, reaching numbers unseen since the Persian Gulf War. Consequently, US producers have scrambled to shield themselves from permanent damage during the downturn. Here are five considerations E&P companies can take to mitigate risks of curtailing production or shutting-in wells.
Whether you are a newcomer or well-versed in the oil and gas business, there is never a shortage of learning opportunities. In part one of our glossary, we compiled a list of some of the most popular terms, such as "Affidavit of Production" and "Non-Participating Royalty." In part 2 of our oil and gas glossary of terms, we highlight more commonly used words, along with their definitions.
1. Adverse Possession: Obtaining title to land by taking possession of the land and staying in possession for a certain number of years, as set by law. The adverse possession statutes vary by state, but share requirements that the rightful owner has had notice (actual or constructive), that the possession is open, and notorious (i.e., occupation in a manner that is open and obvious to the public)
We understand the importance of accurately securing mineral rights. A sound development plan, includes verified ownership of the leased minerals. Most companies decide to: (1) either acquire the minerals outright (owned in fee simple) and let other operators lease and pool their minerals into their development programs, or (2) lease the minerals from the various owners in the locations and formations of interest. In either strategy, correctly identifying the mineral owners is key to the development process.
Below we’ve compiled the most common questions about the oil and gas leasing process.
As veterans in the oil and gas industry, we know that learning the terminology is vital to navigating lease acquisitions and interpreting title research. Whether you are a newcomer or well-versed in the business, there is never a shortage of learning opportunities. At Cinco, we enjoy providing community and client education on the varied dimensions of land and title work. We’ve compiled a selection of terms and brief definitions to conveniently help you refresh your knowledge.
Many landmen, companies and operators mistakenly assume that the application of oil and gas law is the same throughout all of the United States but when buying leases or researching title, it is extremely important to understand that every state has its own idiosyncrasies. Pennsylvania is no exception, with relatively modern technical legislation and regulation, a backlog of pending litigation and existing precedent on many issues Pennsylvania is at odds with the law of most modern producing states. Pennsylvanian law is full of potential leasing and title pitfalls, this article will discuss three such oddities: the Dunham rule, the apportionment rule, and how seated vs. unseated land affects title washing.