Question Hello, can you please help me. I was trying to get some information on standard practice in negeogiting lease terms and partnership in developing oil fields. Is there a source I can go to to get Industry Standards or can you help me?
Thank you
Jon
Answer Dear Jon:
You have asked a pretty general question. The general answer is no, not really. A lease negotiation is a contract negotiation--that simple and that complex. There are "standard leases" used in various areas of the country, following the same general patterns. See Amer. Landmen website. The key elements are: what do you want, what do they want and what facts are important? So, the so-called standard contact form with terms covering price, location,use, length of time,obligations of the parties etc is the basis of the oil and gas lease.
Partnership agreements are a similar, but entirely different legal exercise.
hope that helps,
AHC
