How and why petroleum leases are held by production: Analysis of a compound option

JL Smith - Land Economics, 2018 - le.uwpress.org
Most oil and gas leases allow the operator to extend possession by establishing production
in paying quantities. We show how this option to “hold by production”(HBP) stimulates the …

The option to hold a petroleum lease by production: a user's guide to the shale gas drilling boom

JL Smith - Available at SSRN 2531997, 2014 - papers.ssrn.com
Most oil and gas leases allow the operator to extend possession for an indefinite period by
establishing production in paying quantities. We show how this option to “hold by …

Drilling Deadlines and Oil and Gas Development

E Herrnstadt, R Kellogg, E Lewis - Econometrica, 2024 - Wiley Online Library
Oil and gas leases between mineral owners and extraction firms typically specify a date by
which the firm must either drill a well or lose the lease. These deadlines are known as …

The economics of time-limited development options: The case of oil and gas leases

EM Herrnstadt, R Kellogg, E Lewis - 2020 - nber.org
Oil and gas leases between mineral owners and extraction firms ubiquitously include royalty
and primary term clauses. The royalty denotes the share of revenue that is paid to the …

When externalities are taxed: The effects and incidence of Pennsylvania's impact fee on shale gas wells

KJ Black, SJ McCoy, JG Weber - Journal of the Association …, 2018 - journals.uchicago.edu
To pay for environmental and public infrastructure costs associated with shale gas wells,
Pennsylvania introduced a per-well impact fee despite concerns that it would discourage …

[PDF][PDF] Forced cooperation vs. competitive holdouts: efficient land use policies in the oil and natural gas industry

A Vissing - 2017 - epic.uchicago.edu
Eminent domain policies are widely applied in many different settings, yet there is little
empirical evidence measuring the effects of these policies on economic outcomes. The …

Grand theft hydrocarbon? Post-production clauses and inequity in the US. shale gas industry

CJ Sachs, DE Bugden, RC Stedman - The Extractive Industries and Society, 2020 - Elsevier
We describe the presence of post-production cost clauses (PCCs) in shale gas leases in two
Northeastern Pennsylvania counties. Using a large, random sample of leases (N= 1031), we …

Applying Familiar Concepts to New Technology: Under the Traditional Oil and Gas Lease, a Lessee Does Not Need Pooling Authority to Drill a Horizontal Well That …

EE Smith - ONE J, 2017 - HeinOnline
A. Drilling a horizontal well that crosses lease lines is not pooling because the horizontal
well does not result in a cross-conveyance of royalty interests or change the allocation of …

Relinquishing riches: Auctions versus informal negotiations in texas oil and gas leasing

TR Covert, RL Sweeney - American Economic Review, 2023 - aeaweb.org
This paper compares outcomes from informally negotiated oil and gas leases to those
awarded via centralized auction. We focus on Texas, where legislative decisions in the early …

Drilling for dollars: the new and improved federal oil lease program

AE Haspel - Regulation, 1990 - HeinOnline
The story of the Federal Onshore Oil and Gas Leasing Reform Act of 1987 represents
modest victory for the marketplace and competition. It describes how the Department of the …