Nov 4, 2019
Sending oil and gas lease proposal- Don’t forget about the gas title
The interested parties tend to submit suggestions to score oil and gas leases to the landowners. The landowner tends to revert if he is interested. Both the parties than undergoing the prescribed procedure to lock the deal. Amidst all the proceedings, lessee conducts an in-depth examination of the oil and gas field land and seeks permission to use it; this particular process is done to obtain GAS TITLE.
Basic points to be considered
The proposal is what matters a lot as it is the base of every deal. One cannot casually frame the entire proposal. Only after acquiring complete knowledge of the project, landowner, all the legal formalities, and other related aspects one should send the oil and gas lease proposal. The same goes for the acceptance part of the landowner. The landowner cannot accept it with a calm mind. Apart from the economic viability of the project, he must consider the background of the party sending proposal if the party was not involved in similar projects earlier or not, if not how they are planning to execute the project. But the question here is that who helps interested parties to find the landowner and vice-versa ( in rare cases)?To their rescue, individual professionals act as a connecting link between both the parties.
What is the role of professionals?
Professionals such as land manager, field landsman, title attorney, abstractor, and the leasing agent all are involved in the process of oil and gas lease. Field landsman negotiated the entire deal and helped lessee to secure the deal at the best possible price. The title attorney helps oil and gas companies to obtain the attorney who helps them in case of misconduct. Abstractor is the one who maintains the digital cards of necessary proceedings, transfers, etc. leasing agents are the communicator between oil and gas companies and the public. Above all, these are the head of the process, i.e., a land manager whose work is to keep all the pieces of information together. It can be said that without them, the process of obtaining lease and gas title is in a way not possible.
But what is the use of involving all of them if the documents are not complete? Materials are to be presented to show transparency on the part of both the buyer and the seller. Some of them are company profile, name of signatory, proof of product, partial evidence of product, etc. All these documents must be submitted in writing to avoid any problem at a later stage and can act as evidence in case of default on the part of either of the party. Either of the party should not hide anything or should not make any vague statement or should not agree on something on which they cannot stand out the cause; in this case, their credibility will be decreased.
Both the parties should have patience, landowner should not lay emphasis only on the price they should consider all the related thoughts before deciding anything, they should not unnecessarily add on their costs by hiring a lawyer long before a lawyer is actually required, everything must be writing, landowner should not spend before they have received the payment in hand.
So all these crucial aspects and procedures must be considered while obtaining the gas titles.
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