Whether you have been involved in the oil and gas industry for decades or are relatively new to the scene, you have probably noticed that the process of finding, extracting and selling natural resources is highly competitive. You have probably been involved in your fair share of contract meetings where potential agreements are discussed and negotiated to create advantages for both parties. At Ehrlich, Pledger Law, LLP, we are familiar with the challenges of working in the oil and gas industry in California.
You own the mineral rights to your California real estate, and as neighboring areas discover oil beneath them, you have begun to think about whether you may want to explore the idea of a well on your property. However, according to InsideClimateNews.org, a recent report has raised a debate about continuing to allow new wells to be drilled. Could it affect your ability to get a permit?
When planning oil and gas transactions in California, many companies, government entities and individuals consider joint operating agreements. According to Chron.com, this type of operational partnership allows them to contribute manpower or other resources to an oil and gas project so it can be completed without the creation of a new entity.