Common Oklahoma Oil and Gas Law Questions
Q. Who regulates the exploration of Oil and Gas in Oklahoma?
A. Oklahoma Corporations Commission
Q. If a Landman gives me a lease form and tell me it is standard, should I still consult an attorney?
A. Yes. Oil and Gas leases have very tailored leases that are favorable for the company. An experienced oil and gas attorney should be able to potentially add provisions to the lease that look after your long-term interest instead of theirs. Additionally, an attorney seasoned in oil & gas should be able to explain each provision to you in a clear language, so you truly understand the companies obligations. Ask whatever attorneys you are considering hiring, specific questions about their industry experience to make sure they are truly familiar with the industry.
Q. How long does an oil and gas lease stay in effect?
A. Oil and Gas leases have a primary and secondary terms. The primary term is a fixed amount of time to commence drilling. Companies want longer periods, whereas mineral owners want a shorter-term because it forces the oil and gas company to commence drilling operations faster, which will give the mineral owner royalties from the extraction of oil and/or gas.
Q. Do I have to allow an oil and gas company to a surface location on my land if I want to lease?
A. No. This is an example of many things related to an oil and gas lease that are negotiable. An experienced oil and gas attorney can help you develop a strategy that is advantageous to your long-term plans for surface use.
Q. Can I have both oil and gas operations and wind turbines on my farm?
A. Yes, however, you need to be aware of the contracts that exist with each entity and make sure they do not have conflicting terms. It is highly recommended that you have an experienced energy attorney to help you navigate these agreements to help make sure they create value for your legacy, instead of headaches.
Q. Other than bonus payment and royalty, are other payments available for executing an Oil and Gas Lease?
A. Yes, you can be compensated for the right of way, location of a well pad on your property, water wells, and many other things. These are all things an oil and gas attorney can help you negotiate.