LND 104 - Contract Law for Oil and Gas Industry
Credits: 3 credits
3 Lecture Hours
Prerequisites: CIT 155 , LND 101 , LND 102
This course is a study of the principles of basic contract law as it relates to issues in general business and specifically in the oil and natural gas industry. Emphasis on contract law for the oil and natural gas industry will include additional discussion topics and instruction on contracts utilized in the natural gas industry. The student will learn about various agreements such as farm-ins, farm-outs, communization, American Association of Petroleum Landmen (AAPL) Model Form Operating Agreement and Council of Petroleum Accountants Societies, Inc. (COPAS) Accounting Procedure, various forms of assignments, joint exploration agreements, gas purchase, gas sales, gas distribution, transportation and gathering agreements.
Upon successful completion of the course, the student will:
- Identify the classifications, basic components, defenses, damages and termination elements of a legal contract.
- Explain the basic concepts of The Uniform Commercial Code.
- Describe the basic elements and components of common natural gas exploration and development contracts.
- Apply the elements and concepts of the various types of industry-related contractual arrangements to the appropriate class of business relation or business opportunity.
- Identify the various types of interests found in oil and gas partnership agreements.
- Explain the concept of free gas and discounted gas rights granted to landowners under various legal instruments.
- Discuss how right-of-way easements impact the industry.
- Formation of a contract
- Types of contracts
- Type of agreements
- Transfer and termination of contract rights and duties
- Legal and equitable remedies available upon breach of contract
- Problems of interpretation
- Statute of frauds
- Parole evidence rule and illegality
- Concept of free gas
- Discounted gas rights granted to landowners under various legal instruments
- Right-of-way easements
- Overriding royalty interest
Instructor-approved textbook and materials.
Approved By: Bullock, Quintin Date Approved: 03/03/2015
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