Acreage Dedication Agreement

The most important thing at work with respect to these mineral ownership structures is that, since oil and gas leasing is a property right derived from the underlying minority interest rates, any form of agreement that can be entered into by an oil and gas leasing company can also be agreed upon by a mineral owner with respect to his or her greater interest in the underlying minerals; and that any duly burden on unleased minerals, which will then be leased, including a dedication to a midstream service agreement, will continue to weigh on the purchaser after the mineral lease (i.e. the lease will be concluded subject to the dedication or other agreement). A secondary principle that is relevant in this regard is that the mineral owner generally retains certain rights to minerals even after the lease, including the right to assume his share of the licence interest in in-kind production. Austin Lee is a member of the Business and Regulatory Group, where he focuses his practice on representing and advising clients on the acquisition and sale of oil and gas real estate, saltwater supply properties, storage facilities, platforms and other facilities, as well as all aspects of domestic and international oil and gas activities. , from production to sale, including negotiating and analyzing common enterprise agreements; Operating agreements for units and units; collective development agreements, farms and other joint enterprise agreements; Leases Collection and transportation arrangements; Processing, production management and similar and marketing agreements. “We appreciate the flexibility and creativity of the Sinclair team when we negotiated the terms of this agreement in an uncertain business climate with commodity prices in the river,” said Jim Summers, Chief Executive Officer of H2O Midstream. “We look forward to supporting Sinclair`s development plans in the Perm Basin for years to come.” Many midstream companies have long consoled themselves by signing surfaces into midstream contracts, known as “alliances with the country.” In the past, this has served as protection against the sale of assets without the new owners being subject to the contracts. However, lower oil and gas prices are fully testing the importance of these dedications in the event of bankruptcy. Midstream companies have traditionally required land use or a minimum volume obligation, or both, to ensure that midstream has a reasonable return on capital invested to build or acquire midstream assets. In some basins where competition for midstream services is strong, producers and operators with significant surface positions have successfully negotiated incentives from midstream firms in exchange for land use and the resulting long-term production obligation.