There’s a lot at stake when you take into account how complex energy project planning really is.
As an oil or gas business, you’ve got to cover legalities and negotiate several contracts which oversee key relationships between government officials, production crews, investors and corporate managers. All parties involved in energy projects have to determine which kind of land lease is the best fit based on the kind of mineral acquired, and on what parts of the property you’ll need to utilize. In most countries, mineral resources belong to the government. This includes all valuable rocks, oil, or gas found on or within the Earth. Individual organizations cannot legally extract and/or sell minerals without first obtaining formal government authorization – otherwise, you’re breaking the law.
There are several issues to consider with a land lease. What are the primary terms? A common problem is when oil and gas companies lease at a pace that exceeds their ability to produce within a standard two year term. The longer it takes to start production, the longer the wait is for money to be produced. Will there be a bonus draft? Who will fund it and ensure it gets to you? If a bonus draft is not funded or properly organized, there could be concerns about the security of the rest of your agreement.
Counting on reliable software that’s built to co-ordinate contracts and manage your data is where Tractfile comes in. Tractfile is a multi-contract management system that allows you to organize and operate complex leases in oil and gas businesses. It creates alerts for built-in deadlines, meaning you don’t need to worry about missing an important date. You can also enter data offline to sync later, which is great for on-site field personnel. Any number of designated departments can share and enter information on Tractfile, too.
The idea behind Tractfile is to make contract workflow more efficient and time-saving. PC formats are outdated and require resources to manage contracts. Data has to be referred to specific department to enter on hard drive data – and it’s not secure. With the horizon of the oil and gas industry rapidly evolving and becoming more demanding, your software should also be flexible, and yield to your business needs. Effective programming should always be customized to fit the kind of leases and workflows you’ve already got in place. And, it should always carry the support to amend software to keep retailoring to company requirements.
By having high-quality custom software that improves and quickens your workflow, you can maintain excellent relationships with your field managers and government contractors: everyone’s on the same page, using the same program. Make sure those primary terms are adhered to, and keep your lessors informed. Any successful business relies on communication. With a well-administered, harmonized workflow, you can make those integral systems seamless, and boost those crucial relationships.