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Wind
Energy Agreements in Oklahoma
Consider this scenario: it is shortly after the turn of the century, and Oklahoma
is buzzing about a new industry in the state that will take what were previously
thought to be marginal lands and extract a resource that will be used to power
the entire nation. However, the industry is new to many Oklahomans, and there
remain many issues, technological and legal, that are still to be resolved. Optimism
at the fortunes to be made overnight is tempered by uncertainty as to how the
industry will eventually impact the state. |
The
Oil and Gas Lease in Oklahoma: A Primer
Oklahoma has the second most crude oil wells of any state
in the United States, and the third most natural-gas wells.
Oklahoma is also the third-leading producer of natural gas
and the seventh-leading producer of crude oil among the United States and
federal offshore territories.Given these numbers, the likelihood that an
Oklahoma attorney will encounter an oil and gas lease in practice is high.
Yet, oil and gas leases present unique legal issues, and the law governing
their execution, duration and interpretation is distinct from ordinary principles
of property law or contract law. |
The
SemGroup Bankruptcy and the Ramifications for Oklahoma Producers
On July 22, 2008, SemGroup LP, the parent entity of the various SemGroup
subsidiaries, filed for Chapter 11 bankruptcy in the U.S. Bankruptcy Court
for the District of Delaware, even as the price of crude oil was in excess
of $140 per barrel.As a major purchaser of production from Oklahoma oil
and gas producers, SemGroup’s bankruptcy thrust a host of unresolved
legal issues into the limelight. Of those issues, perhaps none were more
relevant and pressing than 1) the level of priority given to the hundreds
of producers who sold to SemGroup prior to its bankruptcy; and 2) whether
Oklahoma’s Oil and Gas Owners’ Lien Act permits an operator
to file a lien on behalf of all interest owners. As such matters would
be implicated in any future bankruptcy filing by a purchaser of production
affecting Oklahoma producers, this article will address each of these important
topics in detail. |
The
Oklahoma Surface Damage Act
Oklahoma has been producing oil and gas since its territorial days
and has a rich body of oil and gas law in its statutes, regulations and
case law. However, record-high oil prices in recent years and recent discoveries
of new formations have unleashed a flurry of new oil and gas activity across
the state, even into areas that had seen little such activity in the past
(and even though these prices are well below those record levels as this
article goes to press, there is also wide speculation that increases in
global demand will place upward pressure on prices in the future). As a
result, many practitioners may be facing issues of oil and gas law for
the first time. Thus, this article will present a very basic overview of
one of the fundamental pieces of Oklahoma’s oil and gas law: the
Oklahoma Surface Damage Act. |
Don't
Give Away the Farm Negotiation Surface Damage Cases
On the wall of my college adviser’s office in Oklahoma State
University’s Ag Hall there was a printed piece of paper that read, “In
business you don’t get what you deserve — you get what you
negotiate.” This statement could be no more applicable than in the
world of a landowner protecting their surface rights when an oil company
comes to explore for minerals. |
Section Notes |
Well
Site Safety Zone Act
On March 26, 2009, the Oklahoma attorney general, in Opinion
09-5, interpreted the impact of the 2006 legislative recodification of a
2003 act (the “Well Site Safety Zone Act”). The A.G. opinion
declared that the 2006 recodification clarified and confirmed that there
was indeed a prohibition on the location of a habitable structure within
125 feet of an oil and gas wellbore, and within 50 feet of related surface
equipment, “regardless of whether the structure is located on the
surface land on which the oil and gas well is located or on adjacent lands.” |
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