Subordination Agreement Oil And Gas Lease Template for United States

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Key Requirements PROMPT example:

Subordination Agreement Oil And Gas Lease

"I need a Subordination Agreement Oil And Gas Lease for our Texas oil field operation where ABC Bank will subordinate their existing lien to XYZ Capital's new $10M financing arrangement, to be effective from March 1, 2025."

Document background
A Subordination Agreement Oil And Gas Lease is essential when multiple parties have security interests in the same oil and gas properties. This document becomes necessary when new financing is required or when restructuring existing debt arrangements. It clearly defines the order of priority among creditors, specifies the subordination terms, and ensures compliance with applicable U.S. federal and state regulations. The agreement is particularly important in protecting creditors' rights in case of default or bankruptcy and must be properly recorded to be effective against third parties.
Suggested Sections

1. Parties: Identification of all parties involved in the agreement, including the senior creditor, subordinate creditor, and borrower/lessee

2. Background/Recitals: Context of the agreement, including reference to existing oil and gas lease and security interests

3. Definitions: Key terms used throughout the agreement, including 'Senior Debt', 'Subordinate Debt', 'Collateral', 'Lease Rights'

4. Subordination Terms: Core provisions detailing the subordination arrangement and priority of interests

5. Property Description: Detailed legal description of the leased property and associated rights

6. Representations and Warranties: Statements of fact and guarantees by all parties

7. Term and Termination: Duration of the agreement and conditions for termination

Optional Sections

1. Environmental Compliance: Specific environmental obligations and compliance requirements when environmental concerns are significant or specifically required by state/federal law

2. Insurance Requirements: Specific insurance obligations of parties when additional insurance requirements are needed beyond the base lease

3. Assignment Rights: Terms governing the transfer of rights under the agreement when parties want to specifically address assignment capabilities

4. Dispute Resolution: Specific procedures for resolving disputes when parties want to specify arbitration or other alternative dispute resolution methods

Suggested Schedules

1. Schedule A - Property Description: Detailed legal description of the property including surveys and maps

2. Schedule B - Existing Liens: List of all existing liens and encumbrances on the property

3. Schedule C - Senior Debt Documents: List and copies of all senior debt documents

4. Schedule D - Subordinate Debt Documents: List and copies of all subordinate debt documents

5. Appendix 1 - Original Lease Agreement: Copy of the original oil and gas lease being subordinated

6. Appendix 2 - Required Notices: Forms of required notices under the agreement

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions
Clauses
Industries

Mineral Leasing Act 1920: Federal law governing mineral rights and leasing on public lands in the United States, establishing the framework for oil and gas leasing on federal lands.

National Environmental Policy Act (NEPA): Federal law requiring environmental impact assessments for projects affecting federal lands or receiving federal funding.

Clean Air Act: Federal legislation regulating air emissions and pollution standards that must be considered in oil and gas operations.

Clean Water Act: Federal law governing water pollution and quality standards that impact oil and gas operations.

Safe Drinking Water Act: Federal legislation protecting public drinking water supplies, particularly relevant for hydraulic fracturing operations.

Energy Policy Act: Federal legislation addressing energy production, including provisions affecting oil and gas development.

UCC Article 9: Uniform Commercial Code provisions governing secured transactions, crucial for subordination agreements.

U.S. Bankruptcy Code Section 510: Federal bankruptcy provisions specifically addressing subordination agreements and their enforcement in bankruptcy proceedings.

State Oil and Gas Regulations: State-specific laws governing oil and gas operations, including conservation statutes and environmental protection requirements.

State Property Laws: Local regulations governing property rights, recording requirements, and priority rules for interests in real property.

State Contract Laws: State-specific requirements for contract formation, enforcement, and Statute of Frauds provisions.

Securities Laws: Federal and state regulations governing securities transactions, relevant if public companies are involved.

BLM Regulations: Bureau of Land Management rules governing oil and gas operations on federal lands.

EPA Regulations: Environmental Protection Agency requirements for environmental compliance in oil and gas operations.

Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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