Summarise a federal oil and gas lease extract for due diligence
Key facts
- Human involvement
- YellowClose supervision
- How AI is used
- From the lease extract the lawyer supplies, copy the serial number, the record-title holder, the status, and the dates as they are printed. Note a transfer that the extract shows as filed and not yet approved. Do not calculate a lease term and do not say the Department has recognized a transferee.
- What the lawyer must review
- 30 U.S.C. 226 is the statute under which the Secretary of the Interior leases parcels of land known or believed to contain oil or gas. The summary copies the extract. It does not apply a rental amount or a primary term from that section. 43 C.F.R. 3106.10(f) provides that the rights of the transferee to a lease or an interest in it will not be recognized by the Department until the transfer has been approved by the authorized officer. Section 3106.71 provides that the BLM approves an assignment of record title or a transfer of operating rights for administrative purposes only, and that approval does not warrant or certify that either party holds legal or equitable title to a lease. The lawyer reads the extract against the lease file.
- Written for / version
- United States versionUS
Who does what
| Role | What they do |
|---|---|
| Assistance | Potential support includes extracting and organising information and assembling provisional schedules. Confirm 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.
- Verify the applicable jurisdiction and the version of each relevant law, rule or instrument in force at the material time.
- 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.