Oil and Gas Leases: Structuring Key Provisions

Negotiating Scope of the Grant, Royalty Obligations, Implied Covenants, and More

Recording of a 90-minute premium CLE webinar with Q&A

Conducted on Thursday, March 28, 2013

Recorded event now available

or call 1-800-926-7926
Course Materials

This CLE course will provide counsel for land and mineral owners with a review of the essential terms in oil and gas land leases and offer guidance on provisions that can make or break important benefits and protections.


When land and mineral owners negotiate rights to set up operations with oil and gas companies, the lease agreement is a foundation of the deal, establishing the rights, privileges and obligations of the parties. When companies offer terms, counsel for the lessor must be prepared to scrutinize and negotiate.

The scope of the rights at stake is the first vital issue to address. Granting clauses are used to establish essential details, and the savvy practitioner will anticipate a variety of possible situations, such as when operations damage the environment or if unforeseen valuable substances are discovered.

Counsel to the mineral owner will also want to establish favorable royalty clauses and explain obligations the owner may face under implied covenants of the lease. Other important clauses will control the surface use, pooling rights, force majeure, assignments and warranties.

Listen as our panel of experienced practitioners examines the key areas of negotiation between land owners and lessees when creating leasing agreements for use in oil and gas operations, including clauses covering the scope of the lease grant, royalty obligations owed to the lessor, implied covenants and the duties they impose for the parties, force majeure, pooling, and more.



  1. Scope of the grant
  2. Royalty clauses
  3. Implied covenants
  4. Pooling agreements
    1. Voluntary versus statutory pooling
    2. Pugh clauses
  5. Implied covenants and express terms
    1. Surface damages
    2. Rights to use surface resources
    3. Duration
    4. Force majeure
    5. Assignment clauses
    6. Warranty clauses


The panel will review these and other key questions:

  • How should royalty clauses account for expenses incurred, and which costs are typically borne by the owner-lessor and the lease company?
  • What kind of surface activities conducted by company-lessees are typically covered by grants of oil and gas leases?
  • How can a Pugh clause affect pooling agreements?

Following the speaker presentations, you'll have an opportunity to get answers to your specific questions during the interactive Q&A.


Timothy C. Dowd
Timothy C. Dowd

Of Counsel
Elias Books Brown & Nelson

Mr. Dowd's primary area of practice is oil and gas law, including the rendering of title opinions, litigation and...  |  Read More

John B. McFarland
John B. McFarland

Graves Dougherty Hearon & Moody

He represents land and mineral owners in all aspects of oil, gas and mineral law: leasing of mineral interests, family...  |  Read More

David R. Little
David R. Little

Bjork Lindley Little

His practice focuses on complex oil and gas and regulatory disputes in Colorado and Wyoming involving, among other...  |  Read More

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