Joseph B. C. Fitzsimons presented for the State Bar of Texas via a Webcast on “Leasing in the Eagle Ford Shale from the Land and Mineral Owner’s Perspective” on November 20, 2013. It is being replayed on March 13, 2014 from 12:30 pm to 1:30 and is available for one hour of MCLE Credit. To register for this rebroadcast, click here:
To view the presentation, click here:
Highlights of his presentation include:
- The past few years have seen a surge of interest in the Eagle Ford Shale in south and south central Texas.
- Over the past two decades, mineral owners have become more sophisticated in the drafting and negotiating of the ‘Lessor’s Lease Form,’ and most lessees in the Eagle Ford expect a modern lease form and are willing to negotiate from the lessor’s form rather than their own.
- The Eagle Ford Shale presents some unique opportunities and challenges for the land and mineral owner as the play progresses from the exploration to development phase.
- Lessors should expect modern terms for royalty valuation, horizontal severance, information sharing, liens to secure performance, pooling, and consent to assignment or sale.
- From the perspective of the surface owner, there are numerous issues unique to Eagle Ford Shale Development that warrant attention.
- Horizontal drilling and its attendant multistage fracs have been successful in drilling laterals ranging from 3,000 to 5,000 feet with between twelve and twenty multistage fracs.
- Land and mineral owners will have a full time job protecting their interests during the frantic days ahead.