What are some common contracts between joint owners of mineral rights?
Joint owners of the minerals or mineral leasehold in a tract of land who desire to develop and operate the land for oil and gas production typically enter into a joint operating agreement. The agreement usually appoints one owner to physically conduct the drilling and other operations, subject to various limitations, and provides for how the owners will share costs and income among each other. It is not unusual for joint owners to consolidate their rights by transfer to a single corporation, partnership, limited liability company, or other entity in order to centralize and simplify management, to shield assets from liability, or to accomplish other purposes.
