Lease jeopardy in shales ppt
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The document discusses strategies for avoiding lease jeopardy in shale plays by leveraging information assets to minimize non-compliance risks. It outlines a case study of a company that implemented an enterprise lease compliance solution involving the integration of production, drilling, land, and other data systems to automate lease provision tracking and generate alerts. The results were improved monitoring of critical lease provisions like royalty escalation, cessation of production, and continuous drilling requirements.
![Land Administration employees protect the
Companys assets, including its oil and gas leases
and the wells which are drilled on those leases.
Typical job duties include assisting in the analysis
of provisions of various leases, deeds, rights of
way, and agreements involving Company assets in
order that a property record base can be created
or maintained.
-Anadarko [on its website]](https://image.slidesharecdn.com/leasejeopardyinshalesppt-130222104511-phpapp02/85/Lease-jeopardy-in-shales-ppt-12-320.jpg)
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Lease jeopardy in shales ppt
- 1. Avoiding Lease Jeopardy in Shale Plays Leveraging information assets to minimize risks of non-compliance
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- 3. Plaintiffs Attorneys are Taking Note engineering intelligence
- 4. Search Results: Oil and Gas Royalty Lawsuit engineering intelligence
- 5. Royalty Specialists Emerging There may be circumstances that provide an opportunity to break an existing oil or gas lease, freeing you to negotiate a new, more favorable lease at current market royalty rates. engineering intelligence
- 6. 8/31: HBJ, Chesapeake faces lawsuits increasingly besieged with landowner lawsuit claims of underpayment of gas royalties and related leasehold disputes. engineering intelligence
- 7. Lease Compliance: A Critical Issue Not a new concept Uniqueness in each play O&G Law Maturity E.g. AR, PA vs. TX Lease standardization extremes, for example: Barnett (many small tracts high degree of standardization) Eagle Ford (large ranches proprietary lease documents) Plaintiff lawyer quality and ability Risks: Lease jeopardy Fees Litigation Time engineering intelligence
- 8. Case History BB Energy, L.P. v. Devon Energy Production Company, L.P., 2008 (WL 2164583) Contract language held that Pugh clause not relevant since no pooling had taken place ANDERSON v. HESS CORPORATION No. 103116. http://scholar.google.com/scholar_case?case=4159234918805300864 Affirmed sensitivity date of Continuous Drilling to be date of cessation of general operations due to contract language Bledsoe vs. Forest Oil (decided in 2011) http://scholar.google.com/scholar_case?case=3498925303401075223 Found that continuous drilling savings provision was in effect after frac date upon appeal (vs. perforation or casing dates) Many, many more... Illustrates critical care needed in crafting and tracking these provisions engineering intelligence
- 9. You feel like youve got a gun to your head: youve got to drill a well or youre going to lose a lease. Gary Evans - CEO, Magnum Hunter
- 10. Business Drivers for Change Operations Legal Land IT Novelty Tort Reform Data Silos Lease Complexity Competition Deep Pockets Data Quality Issues Sophisticated Velocity Owners Lease Standardization Product Feature Consumer Value Lag Perception Land Administration Oversight engineering intelligence
- 11. Lease Compliance: Strategy Cross-departmental concern No single department has the whole story Conventional land software not enough Land Administration oversight not standardized Current state of the art Landman and a Spreadsheet College interns Paper / Manual process engineering intelligence
- 12. Land Administration employees protect the Companys assets, including its oil and gas leases and the wells which are drilled on those leases. Typical job duties include assisting in the analysis of provisions of various leases, deeds, rights of way, and agreements involving Company assets in order that a property record base can be created or maintained. -Anadarko [on its website]
- 13. Case Study: Background Information Operations Eagle Ford under active development Other Shale Plays Legal Land Administration responsibility Land Many complicated leases IT Multiple system vendors Success Requires a Focused Team Effort engineering intelligence
- 14. Case Study: The Process Enumerate Critical Provisions Step 1: Lease Review Define Input Parameters (Key Dates, Key Quantities) Locate Systems of Record Step 2: Data Mapping Map to Destination Systems Step 3: Data Cleansing Correct inconsistencies in existing data set Link Disparate Systems Step 4: Integration Synchronize copies to master Step 5: Lease Provision Capture initial lease provision inventory Tracking Establish go-forward workflow to maintain provision inventory Step 6: Alert Assign business owners Configuration Define sensitivity cases engineering intelligence
- 15. Case Study: The Whole Story Production Drilling Land Other Spud Dates Marketing: Sales Production Standard Lease Price Volumes Casing Dates Provisions Perforation Dates ERP: DOI Rig Release Dates Fracture Dates Custom Lease Well Status DrillingInfo.com: Provisions Offset Well P&A Dates Locations engineering intelligence
- 16. Case Study: The Solution Key Lease Source Data Provisions Entrance Solution Drilling Capture Production Reports Sync Send Lease Compliance Land Management Alerts Configure Other Enterprise Lease Compliance Solution engineering intelligence
- 17. Case Study: The Results Lease Provision Tracking Royalty Escalation Cessation of Production Pugh Clauses Continuous Drilling/Operations Well-based: including Banked Wells Time-based: including Deferment Days Other Custom Provisions Ongoing Iterative Process Master data management (new systems, etc.) Establishing permanent business data owners engineering intelligence
- 18. Questions? Learn more at www.EntranceSoftware.com/LeaseCompliance