OIL & GAS LAND REVIEW

Transcription

1 OIL & GAS LAND REVIEW AND CPL & RPL EXAM March 1-4, 2016 Dallas Marriott Suites Dallas, TX

2 Event Info: Event: Oil and Gas Land Review & CPL and RPL Exam Venue: Dallas Marriott Suites: 2493 North Stemmons Freeway, Dallas, TX Date: March 1-4, 2016 Cost: Early-registration for RPL exam - Member $300; after 2/16 the cost goes up $50 Cost: Early-registration for CPL course/exam Member $470; Non-Member $570; after 2/16 the cost goes up $50 Cost: Early-registration for RPL Exam only $100/CPL Exam only $125; after 2/16 the cost goes up $50 *Please note this option does not include review or study materials NOTE: AFTER 2/16/16, ADD $50 TO REGISTRATION COST Class Capacity: 120 Accreditation: (18) General credits and (1) Ethics if you are an RL/RPL/CPL taking the full review for credits. Exam only option is not qualified for credits. Dress Code: AAPL is a professional organization and is proud to be represented by its members. We ask that when attending our events the dress remain business casual, please no shorts or flip flops. Thank you for your cooperation. Disclaimer: This schedule is subject to changes and cancellation at the discretion of AAPL. If the class is cancelled AAPL will refund all seminar fees. AAPL is not responsible for any travel costs incurred and will not issue refunds for these expenses including, but not limited to: airfare, car rental, lodging fees.

3 TOPICS COVERED: Real Property Law The review begins with a thorough discussion of the types of property, various methods of acquiring title, the types of deeds and the attributes of warranty and special warranty deeds, the types of ownership and important differences, including life estates and remaindermen. This section also includes a review of the requirements to record documents and the various recording statutes. The section concludes with a brief discussion of the primary real property law differences between Louisiana and other states. Land Descriptions This section discusses the three primary types of US land descriptions: Rectangular Survey (Township-Range), Metes and Bounds (and how to plat), and the various Texas land descriptions. Contract Law The discussion on Contract Law will cover the basic elements of a contract, the types of contracts, requirements of a valid contract and the penalty for breach, offers and termination of offers, the legal capacity to enter into a contract, and the impact of fraud and misrepresentation in negotiating a contract (oil and gas lease). Conveyancing How do we know who has the authority to lease and who has the right to receive royalties from production? This section will cover determination of mineral and royalty ownership, and includes a discussion of the Duhig Rule used in interpreting conveyances. A number of handson problems help solidify the material presented. Interest Calculations Throughout the Review, we will discuss and illustrate through problems the calculation of mineral interest, net revenue interest, before and after pay-out interest, working and interest units. Oil and Gas Lease Starting with a review of the history of the oil and gas lease, and the implied covenants of under the lease, this section continues to a complete review of each major clause of a typical oil and gas lease. The section is concluded with a series of questions that address most lease maintenance questions. A fully marked-up lease is included for easy reading and interpretation.

4 Pooling A general overview of the various aspects of pooling and unitization are discussed. When we speak of pooling and unitization, we are talking about the processes of combining oil and gas leases and the merging of both royalty and working interests into units, there-by erasing the boundary lines that exist between the leases and interests. Numerous examples of problem situations are discussed. Joint Operating Agreement What is the purpose of the JOA? When is it used? What does it do? These questions and a review of the 1982 and 1989 AAPL Model Form JOA will be covered to prepare those sitting for the exam and give a good refresher for others. Well Trades Why do we do well trades? What is involved in making a deal? What are some of the more common types of trades? How can I calculate my working interest in a deal? These questions will be discussed in detail. Federal Onshore Leases and Federal Exploratory Units Approximately one-third of the mineral ownership of the US is owned by the federal government. These interests are managed by the Bureau of Land Management. While the majority of federal lands are in the western states, there are also federal lands in most of the other states. This discussion will cover how federal on-shore leases are granted, the leasing process, and the process for forming federal exploratory units. Environmental This section covers a brief overview of the US environmental legislation and how it impacts the oil and gas industry. Most of the focus is on federal laws regulating the disposal of hazardous waste and the cleanup of sites contaminated by hazardous substances. The discussion also covers the purpose and contents of an environmental site assessment. Offshore / Outer Continental Shelf The federal government owns approximately 1.75 billion acres in the outer continental shelf area of the United States. This area contains a large percentage of US oil and gas reserves. This section will review the basics of management of these minerals by the Minerals Management Service and how leases are issued and managed.

5 Mineral Landwork Most landmen may never become involved with mining and the US mining laws, but a general understanding of this area of landwork is important for the CPL. We present a brief overview of the Mining Law of 1872 and how to acquire mineral rights to US Public Domain lands. Federal Taxes on Oil and Gas Income This section takes a brief look at federal taxation of oil and gas income and includes a discussion on depletion, expensed items, capitalized items, and intangible drilling costs. The focus is on developing a broad understanding of this area. Ethics This section covers the AAPL Code of Ethics and Standards of Practice which are the basis of conduct, business principles, and ideals for all AAPL members. Since there are no licensing requirements for landmen and since membership in AAPL is voluntary, these ethical standards are a key element of AAPL membership and being a professional landman. GIS/Mapping This section covers a brief overview of Geographical Information Systems (GIS)/Mapping and how it impacts the oil and gas industry. Most of the focus is on general terminology and GIS concepts/theories in an effort to provide today s landmen with a fundamental understanding of GIS and mapping. Negotiations This section will cover the forms, styles and types of negotiations. It will also cover how to prepare for a negotiation, common negotiating mistakes along with Ethics and Negotiation.

6 Course Agenda Tuesday, March 1, :30 Registration/ Continental Breakfast 8:00 Welcoming Remarks & Course Overview 8:20 Real Property Law, Land Descriptions, Contract Law Curt Horne, CPL Noon Lunch (On your own) 1:00 Conveyancing, Interest Calculations, Oil & Gas Lease 4:15 AAPL and Ethics 4:45 RPL Exam Instructions (Exam takers only) 5:00 Adjourn Wednesday, March 2, :30 Continental Breakfast 8:00 Pooling, Joint Operating Agreement Dorsey Roach Noon Lunch (On your own) 1:00 JOA (continued), Well Trades 3:00 Negotiations 5:00 Adjourn Wednesday, March 2, 2016 (RPL EXAM) 8:45 Exam Prep AAPL 9:00 Exam Begins 11:00 Exam Ends

7 Thursday, March 3, :30 Continental Breakfast 8:00 Federal Onshore 10:15 Environmental 11:15 Offshore/OCS 12:00 Lunch 1:00 Mineral Landwork, 2:00 Federal Taxes on Oil and Gas and GIS David Terry, CPL 3:00 Adjourn Friday, March 4, 2016 (CPL EXAM DAY- RPL Optional Exam) 7:15am Exam Prep AAPL 7:30am 9:30am 11:00am 11:30am 3:00pm CPL Exam Book 1 Begins RPL Exam Begins RPL Exam Ends CPL Exam Book 1 Ends CPL Exam Book 2 Begins CPL Exam Book 2 Ends *Note: Schedule subject to change

8 Instructors Instructor: Curtis D. Horne, CPL Curtis D. Horne, CPL, is Vice President, Business Development Energy, for Percheron LLC, a nationwide land services firm, and is based in Houston, Texas. Curt began his career as an independent landman in 1981, and has experience in Texas, Oklahoma, Arkansas, Louisiana and Montana. A member of the American Association of Professional Landmen since 1997, Curt earned his Certified Professional Landman designation in He is Chairman of the 2013 AAPL Annual Meeting Committee, is a member of the Publications Committee, and is Past Chairman of the Ethics, Certification and Field Landman Committees. He served on the AAPL Executive Committee as Treasurer for Curt was named recipient of the 2008 AAPL Education Award, the 2007 AAPL Best Member Communication Award, and the 2002 AAPL Field/Independent Landman Award. On the local level, Curt is a member of the North Houston Association of Professional Landmen, where he serves as President for , and the Houston Association of Professional Landmen, where he served as Treasurer for Curt is an instructor for the AAPL Certified Professional Landman Exam Review and the AAPL Introduction to Field Land Practices Seminar, presenting topics which include Real Property Law, Contract Law, Land Descriptions, The Oil & Gas Lease, Title Opinions and Curative, Conveyancing, Interest Calculations, Negotiations and Ethics. He has also spoken on a variety of topics for the Energy Land Institute, NGL Institute, Canadian APL, HAPL, NHAPL, ALTAPL, SAAPL, NADOA, HADOA, NALTA, ALTA and at The Association of Desk and Derricks Clubs National Convention. Mr. Horne lives in the Houston suburb of Pearland with his wife Jamie and their daughter, age 15, and son, age 14. They are active parishioners at St. Helen Catholic Church, where Curt was the Chairman of the 2008 Parish Bazaar and Auction, and is an usher and Eucharistic minister. Curt enjoys cycling and running, and has successfully completed the BP MS150, the Hotter n Hell Hundred, and the Houston Marathon.

9 Instructor: Dorsey Roach Dorsey is a native Oklahoman. He attended the University of Oklahoma where in 1977 he received a B.B.A., majoring in Petroleum Land Management (PLM). Upon graduating, Dorsey began his career with Exxon Corporation where he was trained and specialized as a pooling and unitization landman. Assignments with Exxon included Los Angeles, Anchorage, Houston, Midland and Oklahoma City. Dorsey has also held various staff and management positions with Mesa, Inc., Crawley Petroleum Corporation, Union Pacific Resources Company, The Williams Cos. and Cheyenne Petroleum Company while located in Amarillo, Dallas/Fort Worth, Oklahoma City and Tulsa. Dorsey is currently owner/ general manager of UnitPro Land Consultants, LLC in Oklahoma City where he offers expert witness services for litigation involving land contracts. He also assists companies in structuring, preparing and negotiating the land contracts related to drilling ventures, and teaches seminars involving land-related contracts and agreements. In 1984, Dorsey joined the AAPL lecture circuit where he began speaking on pooling, unitization, well trades and operating agreements. He has given hundreds of presentations and seminars to such organizations as the American Association of Professional Landmen (AAPL), the Southwestern Legal Foundation, the Texas, Oklahoma, Kansas and Arkansas Bar Associations, the Oklahoma Marginal Well Commission, Desk & Derrick, COPAS and many local landmen s associations and other industry-related organizations. Dorsey has also authored a number of papers that have been published by various land and legal organizations. From , Dorsey served as Chairman of the AAPL Operating Agreement Revision Committee. This Committee was responsible for revising the AAPL Model Form Operating Agreement, resulting in the issuance of the AAPL Form Model Form Operating Agreement. The revisions included the removal of many problems, pitfalls and ambiguities known to exist with earlier AAPL operating agreement forms as well as the addition of many new provisions. He also served as a consultant to the AAPL Coalbed Methane JOA Task Force that drafted modifications for inclusion into the AAPL 1982 and 1989 operating agreement forms that are unique to CBM operations. He currently serves on AAPL's JOA Task Force that is once again revising the AAPL Model Form Operating Agreement. Dorsey has been a member of AAPL since 1977, and a Certified Professional Landman (CPL) since He is a past member of the Los Angeles, Permian Basin, Southern Oklahoma, Dallas and Fort Worth Landmen s Associations. He is currently a member of the Oklahoma City and Tulsa Associations of Professional Landmen. Dorsey has chaired various committees, or held Board positions with, the Los Angeles, Oklahoma City and Tulsa landmen's associations. He served as president of the Tulsa Association of Professional Landmen in In 2004, he also served as Chairman of the Regulatory Practices Committee for the Midcontinent Oil and Gas Association. From , Dorsey served as an Adjunct Professor for the University of Oklahoma where he lectured in the Business College s PLM and Energy Management programs. Topics included pooling, unitization, operating agreements, well trades, title opinions, title curative, regulatory agencies and land administration. From , he served as Chairman of the OU PLM Steering Committee that was responsible for the restructuring of the PLM Program into what is now the Energy Management (EM) program. Beginning in 2008, Dorsey also began serving as an Adjunct Professor in the Energy Management Program at the University of Tulsa.

10 Instructor: David Terry, CPL David T. Terry has been a lease broker based in Salt Lake City, Utah providing oil, gas and mineral land services throughout the United States. Mr. Terry began his career in 1977 working as a field landman learning oil, gas and uranium land titles and agreement negotiation in Utah, Colorado, Wyoming and North Dakota. From 1980 to 1985 Mr. Terry was a senior landman with Getty Mining Company, a wholly owned subsidiary of Getty Oil Company. In this position he administered joint venture exploration projects in Wisconsin, Minnesota, Maine, Missouri and Tennessee. Additionally, he participated in the exploration and development of the Mercur Gold Mine in Utah. He earned the Certified Professional Landman designation in 1983 by passing the exam (as opposed to grandfathering into the program). During a period of turmoil in the energy markets simultaneous with the corporate merger of Texaco, Inc. and Getty Oil Company, Mr. Terry worked in Pensacola, Florida as a field landman and real estate broker. In 1987 Mr. Terry returned to the gold industry as Land Manager for American Barrick Resources Corporation, predecessor to Barrick Gold Corporation. In 1992 Barrick Goldstrike Mines completed mineral surveys, patent applications and mineral reports for certain mining and mill site claims at the Goldstrike property - specifically, the Post-Betze open pit and Meikle underground mines. In 1993 Secretary of Interior Bruce Babbitt refused to sign the mineral patents. Barrick filed a petition for a Writ of Mandamus in Federal District Court in Reno, Nevada. In the spring of 1995 Secretary Babbitt signed the patents. In 1995 Mr. Terry left AAPL, letting his CPL designation lapse, to accept an appointment from Governor Michael O. Leavitt to be Director of Utah School & Institutional Trust Lands Administration, an appointed position equivalent to the elected Land Commissioners in other western states like Texas and New Mexico. From 1995 to 2001 the permanent school trust fund grew from $94 million to over $400 million, annual revenues grew from $15 million to $80 million and the state completed the largest land exchange in the U. S. A. outside of Alaska. Mr. Terry re-joined AAPL and passed the CPL exam in Since that time he has served the AAPL as a Director from Utah, as Chair of the Public Lands Committee and currently chairs the Publications Committee. He is also a past President of the Utah Association of Professional Landmen.

11 CPL/ RPL Exam Requirements Are you QUALIFIED to take the exam? Please refer to our website, under the Education / Certifications tab to ensure you are qualified to sit for the exam before registering. There is a worksheet attached to the application to help determine if you are qualified. Study Materials: When you register for the review with exam, a study guide will be mailed to you. Please note if you register for the Exam Only option a study guide is not included, but is available for purchase from our bookstore. Must Bring: Remember to bring your study guide to the class, a calculator with extra batteries if required and writing utensils. AAPL will provide scratch paper. Exam covers: The primary purpose of the Oil and Gas Land Review course is to prepare each landman for the CPL or RPL exam. The course covers many of the areas (although not all) that a landman might become involved with over a career. It is primarily a review, and those taking the exam should not rely solely upon the review in preparing for the exam. The course is also a great opportunity for anyone interested in a review of these materials. We receive many comments from attendees that they learned a lot from the course and remembered things long forgotten. The first six sections (refer to the Topics section of this flyer) plus ethics are part of the RPL Review. The entire course is part of the CPL Review. This is a two-and-a-half-day course, with approximately eighteen hours of class lecture. Attendees will be provided a bound workbook containing course materials

12 Tuition Assistance The AAPL Education Foundation has established a new tuition assistance program that will pay the registration fee for any AAPL member who desires to attend an AAPL operated educational event but cannot do so due to financial limitations. To receive assistance, an AAPL member must submit a written request for assistance along with the event registration form. The request must indicate the reason that assistance is needed, the years of AAPL membership (minimum two years), and list all other programs for which tuition assistance was approved (maximum of two events per year). The names of registrants requesting financial assistance will remain confidential. Tuition assistance is available for all AAPL operated education programs except the annual meeting. This includes all AAPL Institutes, Seminars, Workshops, and Oil and Gas Land Reviews (CPL/RPL) and exam. Assistance for these programs is limited to two per year. Assistance is also available for all AAPL on-line programs with no limit to the programs watched. You must request tuition assistance at least 2 weeks prior to the seminar date. If you are requesting assistance for the RPL/CPL exam, your RPL/CPL application must already be approved by the Certification Committee.

13 Transfers and Cancellations All requests for transfers and cancellations must be made in writing and all must be made before Tuesday, February 16, Individuals may transfer their registration to another individual for this event at no additional charge. Transfers to another AAPL event may be made for $25 if made prior to February 16, After that date, no transfers will be accepted. Registrations may be cancelled for a refund, less a $25 administration fee for Review Only and Exam Only options and a $50 administration fee for Review w/ Exam options, if made prior to February 16, After that date, no refunds will be granted. Registrants not entitled to a refund will receive a copy of the written materials. AAPL retains cancellation rights. In the unlikely event of cancellation, AAPL will attempt to notify all pre-registrants. THE DEADLINE FOR TRANSFERS AND CANCELLATIONS IS 3:00 p.m. on TUESDAY, FEBRUARY 16, After February 16, 2016, the RPL registration fees are $350 for AAPL members and the CPL fees are $520 for AAPL members and $620 for non-members. Taylor Rowland Meeting Coordinator - Education Phone: (817) trowland@landman.org Address: 800 Fournier Street Fort Worth, TX AAPL Contact

14 Oil and Gas Land Review and CPL/RPL Exams 301CPL16 Dallas, TX March 1-4, 2016 REGISTRATION FORM Name AAPL member # Company Address City, ST Zip Code Phone Fax MUST Indicate Exam Choice MUST Indicate Exam Choice CPL Review/Exam AAPL Member Non AAPL Member CPL Exam Only PLM/ERM Student Tuition Assistance (AAPL members only) (Request Attached) RPL Review and Exam Day 1 Review w/ Exam Day 4 RPL Exam ONLY (no review materials) No exam CPL Friday Registrations and Payment Received: Thru 2/16/2016 After 2/16/2016 $470 $570 $125 $0 $0 $300 $100 RPL Wednesday RPL Friday $520 $620 $175 $50 $50 $350 $150 RPL ONLY Friday CPL ONLY Friday REMIT CREDIT CARD : AAPL 800 Fournier Street Fort Worth, TX Fax: (817) AAPL Contact: Taylor Rowland at (817) or trowland@landman.org Payment Information Check # MasterCard Visa American Express Credit Card # Exp. Date Card Security Code (CSC): Name on Card Signature If you are taking the RPL or CPL Exam: Please sign here to verify that you have read and meet the qualifications to take the RPL/CPL Exam ( X