bb63f204f01c0ca7ffff8267ffffe417

bb63f204f01c0ca7ffff8267ffffe417 - CHAPTER 3 Legal Rights...

Info iconThis preview shows pages 1–7. Sign up to view the full content.

View Full Document Right Arrow Icon
CHAPTER 3
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Legal Rights to reservoirs are typically held by the country (the State or National Government) Most cases the host country retains controlling interest throughout exploration and production. Complex arrangements are made between the host country and petroleum companies.
Background image of page 2
Four Sources for securing the rights to explore, drill and produce come from: 1. Private Property Owner 2. State Government 3. Federal Government 4. Native American Tribes
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
All of the sources may hold title or established ownership to a given piece of land. Only the title holder may grant rights to develop the resources on the land. Instrument used to grant these rights: Oil, Gas, and Mineral Lease (Traditionally) Oil and Gas Lease (Typically) Ownership of the minerals must be established
Background image of page 4
Absolute Ownership: Oil and Gas are owned in place, underground. If a reservoir lies under adjacent property, the first to produce retains the ownership of the reservoir. Example: Texas Nonownership-in-place: No one owns the petroleum until it is captured. Title can be assumed upon production, and the oil and gas become personal property. Example: Louisiana and Pennsylvania
Background image of page 5

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Fee Simple: Preserved from the middle ages where as: The property owner has full ownership of the land and everything above or below it. Landowners can sell off just the land or just the mineral estate by what is called a Mineral Deed. Mineral Estate and Surface Owners When a mineral estate of oil and gas is sold it is typically regarded as a Possessory Estate . Other mineral types can be regarded as a
Background image of page 6
Image of page 7
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 10/12/2011 for the course PRTR 1301 taught by Professor Christopherpaulk during the Spring '11 term at Lone Star College System.

Page1 / 17

bb63f204f01c0ca7ffff8267ffffe417 - CHAPTER 3 Legal Rights...

This preview shows document pages 1 - 7. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online