ENERGY CONTRACT MANAGEMENT IN OIL AND GAS

DECEMBER 5, 2011

8:15

Registration and Continental Breakfast

9:00

Welcoming Remarks from the Chair

Barclay Nicholson 
Partner
Fulbright & Jaworski L.L.P.

9:15

Joint Operating Agreement Issues

Timothy Martin 
Adr Governance Inc. (Calgary, Alberta, Canada)

The joint operating agreement (JOA) is probably the most significant contract used in the upstream oil & gas (O&G) business. It sets out the fundamental and overarching relationship among joint venture parties from the initial exploration to the ultimate production of hydrocarbons. Oil companies that jointly own O&G rights are jointly and severally responsible for minimum work obligations and operations under the instrument granting those oil & gas rights.

10:00

Networking Coffee Break

10:15

Contractual Risk Management After Deepwater Horizon: Drilling Contracts, Master Service Agreements, and Joint Operating Agreements

Donald P. Butler 
Deputy General Counsel
Seneca Resources Corporation

• What is the responsibility of the operator and the non-operator following a catastrophic loss?
• Should there be a special indemnity structure for catastrophic losses?
• What should the reciprocal indemnity structure be for pollution events?
• For catastrophic losses, what are the proper limitations of liability clauses protecting contractor and operator?

11:15

Unitization Agreements for Operation of Oil and Gas Fields

Andrew B. Derman 
Partner
Thompson & Knight L.L.P.

As oil and gas basins mature, lease areas or blocks become smaller. With smaller blocks, oil and gas reservoirs are more likely to straddle one or more blocks. Unitization agreements facilitate the efficient operation of oil and gas fields that straddle one or more blocks.

The presentation will discuss the conception underpinnings of unitization and highlight aspects of the AIPN Model Form Unitization Agreement.

12:15

Networking Luncheon

1:45

Managing Upstream International Oil and Gas Exploration, Development & Production Contracts

Joseph G. Soliz 
Founder
The Soliz Law Firm, P.L.L.C.

• Understanding the key differences between production sharing contracts, concessions, service contracts and joint venture contracts
• Analyzing key contract terms and conditions
• Identifying and dealing with critical “non-financial” issues
• Managing the economics
• Current developments and future trends

2:45

Networking Refreshment Break

3:00

Translating Energy Demand and Operational Requirements into an Effective Contract

Daniel M. Levin 
President
Levin Energy Advisors, L.L.C.

• Managing energy data to fully understand your energy supply requirements
• Fundamentals of energy data (data types, key terms and components) – how to obtain data and how to use it
• Tools for assessing energy data
• Translating data, operational requirements and risk tolerance into a procurement strategy
• Translating a procurement strategy into an effecting and appropriate energy supply contract

4:00

Compliance Convergence: The New Normal

Tom Fox 
Principle
Tomfoxlaw.com

• FCPA Compliance, AML Compliance and Trade Compliance are all on the DOJ enforcement radar
• Are you ready for an industry sweep?
• If you self-disclose can you only do so to the DOJ?
• How do you settle an enforcement action with finality?

5:00

Conference Adjourns for the Day

DECEMBER 6, 2011

8:45

Continental Breakfast

9:00

Welcoming Remarks from the Chair

9:15

Special presentation from the Author of the book titled “Primer” Contracts Coverage’s Costs Claims

Robert L. Carson, Jr., CPCU, ARM
Energy Consultant
PRIMER/PRIMER Notes

The book “Primer” which is an acronym for Petroleum Risk and Insurance Manager’s Educational Reference covers the subjects of Contracts; Coverage’s, Costs and Claims. One of the central points that Mr. Carson tries to bring out is that the subject is actually CONTRACTSCOVERAGESCOSTCLAIMS. It is impossible to tell where one starts and the next begins.

10:00

Networking coffee Break

10:15

Implied Covenants Under Oil and Gas Leases: The Obligations and How to Manage Them

Keith B. Hall
Member
Stone Pigman Walther Wittmann L.L.C.

• What are the lessee’s obligations under implied covenants?
• How can the parties to a lease modify these obligations?
• What contractual clauses should exploration and production companies consider using to manage or minimize their obligations under implied covenants?
• How might implied covenants disputes arise in new ways in shale plays?
• What are the latest developments in implied covenants litigation?

11:15

Contractual Risk Allocation After Horizon

Fred Crowder
Senior Attorney
Global Projects Organisation and PSCM Global Wells Organisation

This presentation will examine how recent events in the GoM have impacted allocation of risk between operators and Contractors providing offshore services.

• Levels of risk assumed by each party
• Liability for damage to third party property resulting from pollution
• Liability for fines and penalties
• Insurance and other methods of risk shifting

12:00

Networking Luncheon

1:15

Ethics in Negotiations

Hon. Rick G. Strange
Counsel Cotton, Bledsoe, Tighe and Dawson, PC

The presentation covers the ethical rules that apply to attorneys when they are negotiating on behalf of their clients and a discussion of what can happen if a negotiated deal goes south. Specifically, the presentation covers what an attorney may disclose and withhold, when an attorney can spin, puff and bluff, potential conflict issues that may arise when representing multiple clients, and subsequent legal challenges to a negotiated agreement.

2:15

Onshore Drilling Contract Pitfalls

Harold J. Flanagan
Partner Flanagan Partners L.L.P.

• Risk allocation provisions and consistency with master service agreements
• Special insurance considerations to avoid uninsured exposure
• “Standard” provisions that can result in unexpected liability
• Additional protections not always found in form contracts

3:00

Networking Refreshment Break

3:15

Litigation Arising from Various Lease Contracts and Oil and Gas Related Contracts

Barclay Nicholson 
Partner
Fulbright & Jaworski L.L.P.

This session will offer a general review of an oil and gas leases with emphasis on factors that the landowner and the oil and gas lessee should carefully negotiate. These factors include:

• Letters of intent with escrow requirements
• Seismic rights agreements
• Royalty review data
• Pooling considerations
• Continuous drilling clauses
• Released and retained tracts of acreage
• Operations information
• Surface damages and water use
• Definitions of key terms
• Shut-in royal payments

The presentation will include a discussion of recent cases and disputes related to oil and gas contracts. This case review will emphasize recent litigation involving hydraulic fracturing.

4:15

The Nuts and Bolts of Risk Allocation in Oilfield Service Contracts

John Almy 
Associate
Liskow & Lewis

• Basic concepts behind regardless-of-fault risk allocation structures
• Discussion of the interplay between insurance and indemnity
• Various barriers to enforceability, including the Texas and Louisiana Oilfield Anti-Indemnity Acts

5:00

• In House Counsel
• Attorneys
• General Counsel
• Landmen
• Contract Negotiators
• Contract Managers
• CFO, CEO/Presidents
• VPs from exploration, production and drilling Companies

• Corporate Secretary’s
• Strategic Planners
• Operations Managers
• Industry Consultants
• Risk Managers
• Drilling and Pipeline Contractors
• Well Servicers

Dear Colleague:

Insight Information’s 13th Annual ENERGY CONTRACT MANAGEMENT in Oil and Gas Conference presents experienced representatives from the oil and gas industry, governmental agencies, and the legal profession who will provide information, insight, and guidance into the obligations and allocation of risk among the parties to an oil and gas contract.

With the fluctuating dynamics of oil and gas drilling, as exhibited by the controversy over hydraulic fracturing, it has never been more important for oil and gas organizations, their personnel, and others in the energy industry to understand the latest challenges arising from recent legislative, regulatory, and litigation developments. This conference offers you the opportunity to gain the necessary knowledge to structure oil and gas leases to address these issues and to put your client in the best possible position. Key topics to be discussed by our learned faculty include:

• Joint operating agreements
• Litigation arising from various lease provisions
• Contract issues after Deepwater Horizon
• Unitization contracts
• Upstream exploration, development, and production contracts
• Energy demand
• Recent litigation concerning oil and gas development
• Compliance convergence
• Financial and strategic planning

This conference cannot be missed. The perspectives and information from our “in the know” faculty will put you in the forefront to guide you, your organizations, and your clients through the rapidly changing world of oil and gas procurement and contracting. Please join your fellow colleagues for an interesting, comprehensive, and timely conference. Sincerely,

Barclay Nicholson 
Partner
Fulbright & Jaworski L.L.P.

MEDIA PARTNER

Register 3 delegates for the main conference at regular price at the same time and you’re entitled to register a fourth person from your organization at no charge. For other group discounts, please call 1-888-777-1707. All discounts must be redeemed when booking, discounts will not be valid or applied after this time.