Termination of Oil & Gas Leases for Lack of Production: Evaluating Habendum Clauses and Protecting Lease Interests
Calculating Paying Quantities, Assessing Lease Duration, Leveraging Savings Clause
Recording of a 90-minute premium CLE webinar with Q&A
This CLE course will provide guidance to energy counsel on termination clauses in oil and gas leases. The panel will discuss what constitutes “production” necessary to perpetuate the lease beyond the primary term. The panel will also examine other provisions that should be considered when evaluating whether a lease is held past its primary term and offer best practices for handling potential termination of an oil and gas lease.
Outline
- Termination clauses in oil and gas transactions
- Production
- Calculating paying quantities
- Court treatment of termination clauses
- Assessing whether lease is held past primary term
- Savings clause
- Shut-in royalty clauses
- Force majeure clauses
- Continuous operations
- Cessation of production or operations
Benefits
The panel will review these and other key issues:
- How are paying quantities calculated? How are states defining “paying quantities” differently?
- How are courts treating termination clauses?
- What considerations should counsel keep in mind when evaluating if the lease is held past its primary term?
Faculty
David L. Ganje
Moderator
Ganje Law Offices
Mr. Ganje's practice focuses on environmental law, natural resources law, energy law, commercial... | Read More
Mr. Ganje's practice focuses on environmental law, natural resources law, energy law, commercial transactions and litigation in North Dakota, South Dakota and New York. He provides confidential legal analysis, representation and opinions in commercial and natural-resources acquisition and sale agreements, as well as due diligence representation as both lead counsel and co-counsel. He represents clients in the sale and purchase of business interests, banking law matters and related financing transactions.
CloseDavid R. Little
Shareholder
Bjork Lindley Little
Mr. Little focuses his practice on complex oil and gas and regulatory disputes involving, among other things,... | Read More
Mr. Little focuses his practice on complex oil and gas and regulatory disputes involving, among other things, contract disputes, state and local authority to regulate oil and gas operations, joint operating agreements, rights of surface owners, royalty payments, oil and gas leases, lease terms and termination, purchase and sale agreements, and drilling contract disputes. He also handles a wide variety of other matters including general commercial contracts, easements and rights to use property. He has spoken on oil and gas topics at bar programs.
CloseEric Huddleston
Elias Books Brown & Nelson
Mr. Huddleston's practice primarily involves handling oil and gas and property law litigation but also focuses on... | Read More
Mr. Huddleston's practice primarily involves handling oil and gas and property law litigation but also focuses on general business and commerical litigation. He handles lawsuits involving surface damages, lease cancellation, quite title disputes, oilfield pollution, and contract disputes involving oil and gas leases, the Model Form Joint Operating Agreement and master services agreements.He participates in the firm's conservation practice at the Oklahoma Corporation Commission.
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