California Conservation, Capture, Pooling and Unitization
Agenda
Registration: 8:00 – 8:30 am
Morning Session: 8:30 am – 12:00 pm
Lunch (On your own): 12:00 – 1:15 pm
Afternoon Session: 1:15 – 4:30 pm
Conservation Issues Created by Principles of Oil and Gas Law
J. Quirk
Rule of capture; doctrine of correlative rights
Limits on mineral-related use and improvement
Joint lease and community lease
Line well and commingling agreements
California Pooling of Oil/Gas Interests
J. Harris
Statutory pooling in California
Voluntary pooling
Lease provisions providing authority to pool
Lessor’s and lessee’s perspective and concerns
Pugh clause and good faith pooling
Implementation of pooling and redeterminations
Pooling for horizontal wells
Farmout and joint operating agreement issues
Unpooled interests
Termination of pooled drilling units
California Unitization of Oil/Gas Interests
D. Ossentjuk
Unitization: a solution to pooling issues
Unitization agreements
DOGGR potential action
Naming a unit operator
Development and production
Spacing and placement of wells
Lease values and unit shares
Termination of unit
A Survey of the AAPL’s 2015 JOA
M. Gibson
Article V – operator changes
• O must own an interest in the contract area
• Non-owner may operate if
• Removal of operator
• Reeder considerations
Amendments to Ex.A
Lease burdens
Title changes
AFE required
Horizontal provisions
Mission and Actions of the California DOGGR
Panel
Statutory mission and objectives
Administrative review
“Federalism” issues—E.g., DOGGR’s authority under the
SDWA, the 1980 MOA
Questions (and answers?)
Credits
Attorneys
6.0 California CLE Hours
California Engineers
6.0 Non-Mandatory CE Hours
Landmen
6.0 AAPL CEUs
Continuing Education Credit Information
This seminar is open to the public and offers 6.0 CLE hours to California attorneys. HalfMoon Education is an approved CLE provider in California (Provider No. 8370).
This course offers 6.0 non-mandatory continuing education hours to California professional engineers. It may qualify for mandated continuing education credit in other states. Refer to specific state rules to confirm eligibility, or contact HalfMoon Education for assistance.
The American Association of Professional Landmen has approved this event for 6.0 RL, RPL, or CPL recertification credits and no ethics credits.
Attendance will be monitored and reported, as required. Attendance certificates will be available after the seminar for most individuals who complete the entire event. Attendance certificates not available at the seminar will be mailed to participants within fifteen business days.
Speakers
H. Gibson
Locke Lord LLPOf Counsel at Locke Lord LLP, Austin, TXMr. Gibson practices energy law, with emphasis on exploration and production activities of independent oil and gas companies and individuals. He can, if pressed, advise on leases, JOAs, exploration and drilling agreements, farmouts and almost any other kind of agreement found in oil and gas. If you want to borrow, lend or secure interests, he can help and has done special deals like production payments, NPIs, carried interests and UBTI cognizant arrangements. He even speaks some oil and gas tax. Currently he is a member of the Texas Title Standards Board (which codifies real estate and minerals title matters in Texas) and is board certified in oil, gas and mineral law by the Texas Board of Legal Specialization.
John Harris
Locke Lord LLPPartner at Locke Lord LLP in Los Angeles, CAMr. Harris has more than 30 years of experience representing producers, working interest owners, land and mineral owners, financial institutions and public agencies on oil and gas, energy and environmental matters. Mr. Harris has extensive experience in all aspects of energy law, including the wide range of operational problems faced by energy producers doing business in California and in other states. He also has significant experience representing oil and gas, industrial and local government clients in environmental litigation, transactional and regulatory matters. With his broad transactional experience, Mr. Harris has helped energy industry clients in the purchase and sale of oil and gas producing properties and pipelines, and he has helped with operating agreements, financing transactions, production purchase and sales agreements, and oil and gas lease negotiations, as well as agreements with governmental agencies. He provides mineral title opinions and assists clients in resolving complex title issues.
David Ossentjuk
Ossentjuk & BottiPartner in Ossentjuk & Botti, Westlake Village, CAMr. Ossentjuk focuses his law practice on oil and gas transactions, including conveyances, leasing, operations, title issues, joint ventures and operating agreements, and compliance with federal, state and local oil and gas regulations. He is one of a limited number of attorneys in California with significant experience in the litigation of oil and gas disputes, including lease termination/preservation issues, unit and joint operations disputes, royalty and title matters, and post-operation environmental clean-up and abandonment issues. He also has significant experience in the purchase, sale and development of environmentally-impacted properties, including the negotiation and litigation of environmental aspects of purchase and sale agreements, leases, joint ventures and partnerships, oil field development and abandonment agreements, environmental insurance policies, land use entitlements, and prospective purchaser agreements. Mr. Ossentjuk also regularly handles general business, real estate and environmental litigation. He has successfully litigated and tried numerous business disputes involving claims for breach of contract, trespass, nuisance, fraud, breach of fiduciary duty, business interference, corporate and partnership governance issues and insurance coverage. Mr. Ossentjuk is a graduate of Claremont McKenna College (1983) and the UCLA Law School (1987).
John Quirk
Bright and BrownMember of Bright and Brown, Glendale, CAMr. Quirk represents both mineral owner/lessors and mineral lessee/operators in the negotiation and performance of oil and gas leases and other agreements unique to the exploration and production phases of the oil and gas industry, and is considered one of the state’s leading practitioners in the area of oil and gas title. He was presented a “Special Award—Education” at the American Association of Professional Landmen’s 2006 convention, in recognition of his involvement in education of the land professional community. In September 2012, at the 30th Annual West Coast Landmen’sInstitute, he presented remarks and a paper entitled: A “Study” In Cooperative Subsurface Oil & Gas Development Rights. In April 2013, he presented expanded discussion and written materials on the same subject at a HalfMoon LLC continuing legal education seminar in Santa Barbara, California. In October 2014, at the 32nd Annual West Coast Landmen’s Institute he joined Cecilia Rendon of Bright and Brown in presenting remarks and a paper entitled: To Protectand Inform—a Recording Grab Bag!