Regulators Of Oil And Gas Production
The KCC, or Kansas Corporation Commission Oil and Gas Conservation Division is the main organization that regulates oil and gas discovery and production in Kansas. Its goal is to protect rights and environmental resources with consistent supervision of oil and gas discovery and production. The KCC was originally established in 1883 to monitor railroad activity. Over the years, the KCC’s jurisdiction was expanded to include oil and gas conservation.
The Kansas Independent Oil and Gas Association, or KIOGA, promotes the development of oil and gas resources through bipartisan and common-sense solutions facing the oil and gas industry today. KIOGA is a non-profit that was established in 1937 to represent oil and gas producers. They are the leading voice for the Kansas oil and gas industry.
What You Need To Know About Oil And Gas Leases?
Oil and gas leases are an agreement that will grant an oil and gas operator a license to investigate and obtain minerals from under the land of the acreage they have a lease with. An operator is a person or business that is licensed with the KCC to operate oil and gas wells, gathering systems, and underground storage facilities in Kansas.
The owner of the land does not have to be the owner of the minerals under the land. However, the oil and gas lease can only be granted by the owner of the minerals. To determine who owns the land and who owns the mineral rights, check with your local public records at the Register of Deeds Office in the county where the land you are looking at is located. Oil and gas leases usually last for one to three years.
There are provisions added to say that if drilling or discovery operations begin before the lease term ends, then the lease extends automatically to a second term that continues as long as the drilling or discovery operations generate a profit for the operator over what the costs are of working the lease.
The Difference In A Working Interest And An Overriding Royalty Interest
The main difference between a working interest and an overriding royalty interest is that only one pays in, while both earn a percentage of the profits. The working interest owner will share the costs of discovery and production from the land that is leased and will share the profits from the sale of the oil and gas.
An overriding royalty interest will earn a percentage of the profits from the sale of oil and gas, but they do not share in the costs. An overriding royalty interest will reduce the amount of the profits that working interest owners will get.
How The Titus Law Firm Can Help You?
The attorneys at The Titus Law Firm have an unyielding devotion to their clients. With their extensive knowledge in oil and gas law in Kansas, and oil and gas legal practices in Overland Park, Kansas, they can steer you in the direction you need to be. They are there to guide you through the oil and gas development and make this a stress-free process. If you are in the Overland Park, Kansas area, and are looking for an oil & gas Lawyer, oil and gas production lawyer, or petroleum lawyer, reach out to the attorneys at The Titus Law Firm.
