One of the most complex tasks that any oil company has to do is securing oil leases. These agreements come in a wide variety of forms, from agreements with individual land owners to agreements with the federal government. Often times oil companies are trying to secure mineral rights from a large landowner in a state like Oklahoma, and other times they’re bidding on a project to develop some federal land for oil exploration and development. Although the documents that get drawn up and the contracts that get signed are going to differ greatly in these two examples, what’s not going to change is that the entire process is quite complex and subject to a wide variety of laws and regulations.
This is why it’s so important for oil companies working to acquire oil leases to work with a third-party expert. The first thing they’ll hire this outside firm to do is to go over all of the paperwork with them to ensure that the documents are correct under current regulations and laws. Most oil companies simply don’t have the time or the staff to be constantly looking at new regulations and laws. While they have a cursory understanding of these laws and regulations, they aren’t experts in the area, which is precisely why they’ll hire an outside company. This third-party expert spends their time reviewing new regulations and laws and then helping oil companies interpret them in the best way. Thus, they’re the company that oil companies turn to when they want to secure an oil lease but need to make sure that everything is proper.
Another reason why it’s important for companies to hire third-party experts and outside firms when they’re trying to secure oil leases is because these companies are trained in the practice of creating agreements that benefit companies. They understand how to write up the documents to ensure that the oil or gas lease is beneficial to the company in the long term. These third-party companies have seen too many examples of oil companies signing onto lease agreements only to discover that they can’t access the oil or gas 10 years down the road because of stipulations in the agreement. Thus, part of their job is ensuring that the oil company will be able to access the oil and gas that’s a part of the lease agreement no matter how much time passes.
If you work for an oil company that’s in the business of securing oil leases, you need to have a third-party company in your corner that helps you craft and create this agreements. They need to have a strong understanding of all of the current laws, some insight into how the laws might change in the future, and some savviness to create agreements that are beneficial for the oil company in the long term. They should be looking for a company like MAJR Resources that has some expertise in this field and is able to create oil and gas agreements that benefit the oil company for years to come.