Build a federal oil and gas lease due-diligence table
Key facts
- Human involvement
- YellowClose supervision
- How AI is used
- Build a table of lease serial number, acres, the lessor and any assignment the documents show, using only the records the lawyer supplies. Do not state that title is good.
- What the lawyer must review
- 30 U.S.C. § 226 is the Mineral Leasing Act provision for federal onshore oil and gas. Lands not leased under the paragraphs that section sets out for known producing structures are leased to the highest responsible qualified bidder. The BLM New Mexico page states that sales are held quarterly under the Mineral Leasing Act when eligible lands are available, and that an expression of interest is submitted through the National Fluid Lease Sale System. Under 43 C.F.R. § 3106, the Department does not recognize the transferee's rights until the authorized officer approves the transfer. State and private minerals are outside these sources. The lawyer opens the official serial-register record for each lease before the table is relied on.
Who does what
| Role | What they do |
|---|---|
| Assistance | Consider narrowly defined preparation support after confirming the tool’s capability and permitted scope. |
| Lawyer | Set the scope, supervise the work closely, verify every part relied on, resolve omissions and exceptions, and approve the exact output. |
Checklist
- Review operative clauses in the complete document, including definitions, cross-references, schedules and inconsistencies with the instructions.
- Obtain and inspect the relevant current official register or search result. Confirm identities, interests and the date and scope of the search.
- Confirm the output against the client’s instructions and the complete relevant source material, including omissions or contradictions.
- Resolve exceptions and record the responsible lawyer’s approval of the exact output and intended use.