Docstoc

Oil and Gas

Document Sample
Oil and Gas Powered By Docstoc
					Oil and Gas

  Class 19
         Federal Govt as Lessor
• Contrast practical effect, keeping leases alive
  rather than terminating like private lessee
• Statutory/regulatory constraints to
  negotiation and remedies on breach
• Difference in expectation of severed estate
  – Dominant/servient
• Mix of federal and local law upon federal
  acquiescence
                Public Lands
• Federal public domain lands
• Reservation in US of mineral estate in
  patented land
• Indian trust lands

• Agency oversight:
  – DOI (BLM, MMS, BIA)
  – Congressional/Exec order opening
         Mineral Leasing Act(s)
• Statutory authority for leasing OAG
• Royalty rate of 12.5% of the value of OAG
  production
• Competitive bidding came later
  – 1987 Federal On-shore OAG Leasing Reform Act
• Railroad lands
                BLM Process
• In prep for leasing decision, Resources
  Mangmt Plan
• Environmental Impact Statement pursuant to
  NEPA (federal actions)
• Note lands that cannot be leased
  – But see forest lands with Sec of Ag consent
  – But see Indian lands with Sec of Int consent
          Competitive Leasing
• Notice of sale/lease by BLM 45 day
  – Oral bids quarterly to highest bidder above
    threshold
• Payment
  – the bid, 1 yr delays, bonuses and fees
• Max 2560 acres with 10 yr primary term with
  2 yr extension upon delay payments
  – Reinstatement criteria
        Noncompetitive Leasing
• For failure in competitive process, 2 yr
  window
              Pre-Leasing NEPA
• The decision to lease and approvals of plans
  are federal action subject to NEPA
  – Environmental Impact Statement (major)
     • Upon finding of significant impact on environment
  – Environmental Assessment (minor)
• The Resource Management Plan by BLM
  encompasses these concerns
                   Off-shore
• Submerged lands to shelf, 200 miles
• Except Texas and Florida, state owns to 3 miles

  – Special marine leagues rules for those two states
• Outer Continental Shelf Lands Act controls
  leasing and development
  – Sec of Int may suspend lease/cancel lease when
    envlt harms outweigh benefits
               Off-Shore cont
• DOI prepares 5 yr plan
• Bid solicitation upon MMS identification of
  areas
• Draft EIS prepared
• Sealed bids with bond posting upon selection
  – Joint bids with prohibitions for antitrust concerns
  – Award to highest responsible bidder
                Tribal Lands
• Federal approval of leases on trust lands
• Administered IIM accounts
• Trust responsibility
                 State Lands
• Interest in state grant lands, FMV subject to
  fiduciary standards
• Look to state constitution and enabling act
  language in addition to state
  regulatory/statutory language

				
DOCUMENT INFO
Shared By:
Categories:
Tags:
Stats:
views:7
posted:10/9/2011
language:English
pages:12