Is anyone using GROK, GPT, or other AI platforms to review and summarize lease terms? Curious if you have any good prompts that would work for pugh clause.
2 Likes
It’s the latest thing. I use meta ai and it catches a lot of mistakes and errors. Not everything has to be changed but it can be noted for review.
I find it helpful
1 Like
Just for fun, I had Copilot search a lease for a Pugh clause and it did an excellent job.
1 Like
Are you trying to build a OGL analyst or trying to develop a Pugh clause? You can build a custom Gem in Google Gemini for an analyst. This allows you to create a custom agent and ground it with up to 10 documents.
If you want to develop you own clauses, you can use Gemini to start writing some of the clauses and use NotebookLM for further grounding.
I am building Notebooks in NotebookLM to act as Expert Resources for our Family Office SOPs. Depending on your Google subscription you can base it with 50, 300, or 600 sources. A grounded LM can be a great knowledge resource for family members to be able to query. One example - if people are challenged by your spreadsheets, you can add them to NotebookLM. This will allow a family member to ask, what do we own in Oklahoma and what is the most recent activity.
Remember, AI is not an oil and gas attorney no matter how much you ground it. Pugh clauses have many different forms and various intents.
2 Likes
It has one intent. It’s as written. Not subject to interpretation.
Pugh clauses have many different forms as the term “Pugh” is used today. They can be: total depth, vertical, horizontal, and zone specific in the limitations. Technically these are adaptations of the original Pugh. Many people use the term Pugh without truly understanding the limitation they are seeking.
2 Likes
Yes, definitely understand that language can be different forms. Mainly asking if anyone has a good set of prompts that they would not mind sharing that would assist AI in reviewing a lease to identify 1) if there is Pugh Clause language present and 2) what that language is. I am not trying to draft my own. Just looking to leverage AI to help with lease review to summarize the terms and to confirm that there is Pugh clause language in there. Anyone willing to share their prompts? I used GROK and asked it to search for Pugh clause but it had trouble. Thank you all for the input!
3 Likes
Anything other than vertical wellbore is a clause. Forget about the Pugh part. For basic lease the operator gets one vertical wellbore to center of the earth. Anything other than vertical is a separate issue. That’s as simple as u can make it.
Vertical means anything outside 5 degrees is not vertical
Start by creating some clarity. I use Gemini, but this should help a bit. First give it this first prompt - You are an expert petroleum landman. your duties are to review documents submitted to your clients concerning their oil and gas mineral/royalty properties. Then add - Analyze this oil and gas lease for all terms and conditions. Cite specific clauses and how they may be changed more favorably for the client. Make sure to attach your OGL so it can be a part of the assessment.
This should get you started.
1 Like
Yep. ChatGPT helped me build a lease offer questionnaire covering major points that I now send back for completion when landmen come trolling. You still have to make sure all the i’s are dotted and t’s crossed. But I think it signals that their target is paying attention.
1 Like
What methods would you recommend a Lessor ask the Landman, broker or company (lesser) to send the offered leases and terms for your AI program to analyze?
It seems like word “well” is overused. Until it produces it’s a hole in the ground or “wellbore”. “Well” indicates that production is assured and that is far from certain. Basically you’re selling access to “potential” commercial quantities of hydrocarbons. U can replace “well” with hole in the ground.
So did I. I’m not convinced of its applicability.
Here’s the questionnaire I send back to anyone offering a lease. It helps clarify what you expect for terms and signals you’re not passive beneficiary who’s going to leap at the first deal that comes along. I’ll eagerly entertain any suggestions for improving it. TIA
3 Likes
Very nice. Thank u. This will help a lot of people
Looks complete. This is not part of the script. Some people are not going to like this.
Number 7 will cause some distress. Ouch.
Thank you. I wish I could claim all of it. ChatGPT is pretty good for a lot of things. You still have to know what questions to ask and stop short of treating it like a substitute for a real professional. That said, it can help make those conversations quickly productive.
1 Like
It’s not going to popular with some people. Expect some pushback.