You have recently discovered a promising opportunity to initiate a new oil exploration effort in California. This will require you to coordinate and implement a contractual agreement that will protect your rights, as well as the rights of the landowner and his or her property and assets. At Ehrlich Pledger Law, LLP, we have helped many people to secure beneficial contract agreements that provide protection and clarification.
While you may be influenced by the promise of making considerable money once your contract is in place and exploration begins, it is imperative that you remember that securing a good contract is about more than negotiating significant financial agreements. According to geology.com, other important parts of the contract that you should read thoroughly, and verify that all parties understand the language of, include the following:
- Property reservations where mining is not allowed.
- Guidelines and agreements related to the protection of the owner’s property, including buildings, livestock and roads.
When you have fully read and completely understand all of the terms and conditions of your contractual agreement, you can more confidently explore the area without compromising your success, the owner’s rights and the wellbeing of any third-parties who may be involved. Preventing disputes from happening is due in large part to your ability to respect the owner’s property and initiate work processes without disregarding the rights and desires of the owner. Additionally, you should be aware of the property’s assets and liabilities so you can coordinate your operations in a way that is mindful of these aspects.
When you are educated about basic contract law, pay close attention to the language in your contract and respectfully execute your responsibilities, you can enjoy the excitement of pursuing a new opportunity without running into preventable disagreements. For more information about oil and gas contracts, visit our web page.